Introduction to Consumer Behaviour; Consumer Behaviour and Marketing Strategy; Consumer Involvement – Levels of involvement, and Decision Making. Consumer Decision Process – Stages in Decision Process, Information Search Process; Evaluative Criteria and Decision Rules, Consumer Motivation – Types of Consumer Needs, Ways of Motivating Consumers. Information Processing and Consumer Perception. Consumer Attitudes and Attitude Change; Influence of Personality and Self Concept on Buying Behaviour, Psychographics and Lifestyles, Impuse Buying. Diffusion of Innovation and Opinion Leadership, Family Decision Making, Influence of Reference Group Industrial Buying Behaviour– Process and factors, Models of Consumer Behaviour – Harward Seth, Nicosia, E& D, Economic Model; Introduction to Consumer Behaviour Audit; Consumer Behaviour Studies in India.

1. CB – UNIT 3
Unit 3
THE INDIVIDUAL CONSUMER
AND BUYING BEHAVIOUR
AND MARKETING IMPLICATIONS
CONSUMER BEHAVIOUR PRESENTATION
PRESENTED BY:
NIKITA SANGHVI
BHARAT MAHESHWARI
NIRMAL GAJJAR

2. CB – UNIT 3
CONTENT
1. Consumer Perception
2. Learning
3. Attitudes
4. Motivation
5. Personality
6. Psychographics, Values & Lifestyles
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Chapter 5
PERSONALITY
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DEFINITION
1. Those inner psychological characteristics that both
determine & reflect how a person responds to his or her
environment.
Source: Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th Edition.
2. Patterns of individual behaviour that are consistent &
enduring
Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.
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THE NATURE OF PERSONALITY
Personality reflects individual differences
Personality is consistent and enduring
Personality can change
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Personality reflects individual differences
An individual’s personality is a unique combination
of factors; no two individuals are exactly alike.
Personality is a useful concept because it enables
us to categorise consumers into different groups on
the basis of a single trait or a few traits.
Eg. Ethnocentrism (willingness to accept/reject the
foreign-made object)
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Personality is consistent and enduring
Marketers learn which personality characteristics
influence specific consumer responses and attempt
to appeal to relevant traits inherent in their target
group of consumers.
E.g. Sister taking care of brother.
Though personality may be consistent, consumption
behaviour often varies considerably due to
psychological, socio-cultural & envt. factors that
affect behaviour.
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Personality can change
Under certain circumstances, personalities change.
Personality change as a part of gradually maturing process.
 Personality stereotypes may also change over time
 Personality convergence is occurring between men &
women
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PERSONALITY PERSPECTIVE
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Biological
Psychoanalytic
Dispositional
Learning
Humanistic
Cognitive

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Biological Perspective on Personality
There are three general thrusts to the biological perspective:
Many personality characteristics are genetically
determined
Behavioural tendencies derive from our evolutionary
history
Human behaviour produced is by a complex biological
system (e.g. hormones, neurotransmitters)
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11. CB – UNIT 3
Psychoanalytic Perspective on Personality
Developed initially by Sigmund Freud
Much of the explanation for human behavior, which is
often bizarre and seemingly contradictory, lies largely
hidden in the unconscious, and is the result of how a
person negotiates conflicting, deep-rooted desires and
instincts.
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12. CB – UNIT 3
Dispositional Perspective on Personality
A dispositional approach to personality emphasizes:
“qualities that people carry around with them, that are
somehow part of them” (Carver & Scheier, 2000, p.54)
“a person’s inherent qualities of mind and character”
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13. CB – UNIT 3
Learning Perspective on Personality
 Personality is an accumulated set of learned tendencies over a
lifetime (Carver & Sheier, 2000).
 Personality is �susceptible to molding, grinding, and polishing by
the events that from the person’s unique and individual history�
(Carver & Scheier, 2000).
 Assumption: All behaviour is learned through experiences and by
interaction with the environment.
 The learning perspective views a person as entering the world as a
tabula rasa (blank slate), although it acknowledges that there are
instincts and pre-set responses to stimuli, as well as a preference for
pleasure and a desire to avoid pain.
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14. CB – UNIT 3
Humanistic Perspective on Personality
Humanism is a philosophical movement that emphasizes
the personal worth of the individual and the centrality of
human values.
The Humanistic approach rests on the complex
philosophical foundations of existentialism, and
emphasizes the creative, spontaneous and active nature
of human beings.
This approach is very optimistic and focuses on noble
human capacity to overcome hardship and despair.
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Cognitive Perspective on Personality
The cognitive perspective is that personality is a person's
mental organization.
People are who they are because of the way they think,
including how information is attended to, perceived,
analyzed, interpreted, encoded and retrieved.
People tend to have habitual thinking patterns which are
characterized as personality.
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16. CB – UNIT 3
REVIEW OF PERSONALITY PERSPECTIVES
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Perspective Strength Weakness
Biological
Testable theories with
increasing validity &
efficacy
Doesn�t grapple
with �personhood� &
sense of personal self
Psychoanalytic Attention to unconscious
Unverifiable?
Sexist?
Dispositional
Good individual
assessments techniques;
Trait vs. Type approach
May label people on basis
of scores; Overly-reliant
on self-report instruments
Learning
Scientific analysis &
practical application
Overlooks IDs present
from birth
Humanistic
Optimistic, growth-
oriented
Ignores scientific method
Cognitive
Captures active nature of
human thought
Ignores unconscious

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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian Personality Theory
Trait Theory
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Freudian Theory
Sigmund Freud’s Psychoanalytic Theory of
Personality
Base: Unconscious needs or drives
(biological drives) are at the heart of human
motivation & personality
Id, Superego & Ego are the three interlacing
system.
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THEORIES OF
PERSONALITY
Freudian
Theory
Neo-Freudian
Personality
Theory
Trait Theory

19. CB – UNIT 3
Freudian Theory
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THEORIES OF
PERSONALITY
Freudian
Theory
Neo-Freudian
Personality
Theory
Trait Theory
Ego
Id
Superego
Id
• Warehouse of primitive & impulsive drives
• No concern for the specific means of satisfaction
Superego
• Individual’s internal expression of society’s moral &
ethical codes of conduct
• Restrains the impulsive forces of the id
Ego
• Individual’s conscious control
• Balance between id & superego

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Freud’s View of the Mind: The Mental Iceberg
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ID
SUPEREGO
EGO

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Neo-Freudian Personality Theory
Social relationships are fundamental to the
formation & development of personality
1. Alfred Adler:
Human beings as seek to attain various rational
goals
Much emphasis on the individual's efforts to
overcome feelings of inferiority
2. Harry Stack Sullivan:
People continuously attempt to establish
significant and rewarding relationships with
others.
Concerned with the individual's efforts to reduce
tensions, such as anxiety.
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THEORIES OF
PERSONALITY
Freudian
Theory
Neo-Freudian
Personality
Theory
Trait Theory

22. CB – UNIT 3
3. Horney’s theory : the CAD
Compliant: move towards others
Aggressive: move against others
Detached: move away from others
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Neo-Freudian Personality Theory
THEORIES OF
PERSONALITY
Freudian
Theory
Neo-Freudian
Personality
Theory
Trait Theory

23. CB – UNIT 3
Trait Theory
Orientation: primarily quantitative or
empirical
Measurement of personality in terms of
specific psychological characteristics called
trait
Consumer Innovativeness
Consumer Materialism
Consumer Ethnocentrism
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THEORIES OF
PERSONALITY
Freudian
Theory
Neo-Freudian
Personality
Theory
Trait Theory

24. CB – UNIT 3
PERSONALITY & CONSUMER DIVERSITY
Marketers Implication:
Understand how personality influences consumption
behaviour because such knowledge enables to better
understand consumer & to segment and target consumers
who are likely to respond positively to their product or
service.
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25. CB – UNIT 3
CONSUMER INNOVATIVENESS & RELATED PERSONALITY TRAITS
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Personality
Traits
Consumer
Innovati-
veness
Dogmatism
Social
Character
Need for
Uniqueness
Optimum
Stimulation
level
Variety or
Novelty
Seeking

26. CB – UNIT 3
Consumer Innovativeness
Linked to the need for stimulation, novelty seeking
& the need for uniqueness
Global Innovativeness: Exist independent of any
context
Domain Specific Innovativeness: More narrowly
defined activity within a specific domain or product
category
Innovative Behaviour: Pattern of actions or
responses that indicate early acceptance of change
& adoption of innovations.
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27. CB – UNIT 3
Dogmatism
Measurement of the degree of rigidity that
Individuals display toward the unfamiliar & toward
information that is contrary to their own established
beliefs
Eg. Mc Donald’s ad campaign: Be open to new
Possibilities (appeal to low-dogmatic people)
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Social Character
Trait that ranges on a continuum from inner-
directedness to other-directedness
Inner- directedness: tend to rely on their own inner values
or standards in evaluating new products
Other-directedness: tend to look to others for
guidance
Eg.: Apparels
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Need for Uniqueness
High NFU –
more receptive to make unique choice
not concerned about being criticized by others
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Optimum Stimulation Levels
Some prefer simple, uncluttered, calm envt.
Others prefer novel, complex & unusual experience.
High OSLs –
Engage in exploratory behaviours
Greater willingness to take risks
To try new products
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31. CB – UNIT 3
Variety or Novelty Seeking
Types of consumer variety seeking
 Exploratory purchase behaviour
Switching brands to experiment
Eg. Soaps, Shampoos
 Vicarious exploration
Securing information about a new or an alternative
Eg. Kinetic Honda-emphasized on durability
 Use innovativeness
Using an already adopted product in a new way
Eg. Using washing machine for making lassi
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COGNITIVE PERSONALITY FACTOR
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Consumer
behaviour
Need for
Cognition
Visualizers
versus
Verbalizers
• Measures a person’s craving for or
enjoyment of thinking
• High NFC interested in rich-in product
related information or description
• Low NFC are likely to be attracted to
the background or peripheral aspect of
an ad.
Need for
Cognition
• Visualizer: prefer visual information &
products that stress the visual
• Verbalizer: prefer written or verbal
information or product
Visualizers
versus
Verbalizers

33. CB – UNIT 3
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CONSUMPTION & POSSESSION TRAITS
CONSUMER
MATERIALISM
• Distinguishes
between individuals
who regard
possession as
essential to their
identities & their lives
and those for whom
possessions are
secondary
FIXATED
CONSUMPTION
BEHAVIOUR
• Realm of normal &
social acceptable
behaviour
• Do not keep
purchase of interest a
secret
COMPULSIVE
CONSUMPTION
BEHAVIOUR
• Realm of abnormal
behaviour
• Addictive
consumption

34. CB – UNIT 3
BRAND PERSONALITY
 Consumers attribute personality-like characteristics to
different brands
 Provides emotional identity for brand
 Functional: Dependable or rugged
 Symbolic: The complete man
 Brand Personality Strong & Favourable Brand
Strength
Eg.: Limca = Freshness
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35. CB – UNIT 3
BRAND PERSONALITY FRAMEWORK
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Sincerity
• Down to-
earth
• Honest
• Wholesome
• Cheerful
Excitement
• Daring
• Spirited
• Imaginative
• Up-to-date
Competence
• Reliable
• Intelligent
• Successful
Sophistication
• Upper Class
• Charming
Ruggedness
• Ourdoorsy
• Tough

36. CB – UNIT 3
BRAND PERSONIFICATION
Recast consumers’ perception of the attributes of a product
or service into a human-like character
Eg. Scotch Brite: a helping hand.
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37. CB – UNIT 3
PRODUCT PERSONALITY ISSUES
GENDER
 Often used for brand personalities
 Some product perceived as masculine (coffee & toothpaste) while
others as feminine (bath soap & shampoo)
GEOGRAPHY
 Azctual locations like banarasi saree and Arizona iced tea
 Fictitious names also used such as Hidden Valley and Bear Creek
COLOR
 Color combinations in packaging and products denote personality
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38. CB – UNIT 3
PERSONALITY & COLOUR
Personality factors associated with specific colours
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COLOUR PERSONALITY TRAIT
Blue Commands respect, authority
Yellow Caution, novelty, warmth
Green Secure, natural,
Red Exciting, passionate, strong
Orange Powerful, affordable, informal
Brown Masculine, Informal & relaxed
White Goodness, purity, delicacy
Black Sophistication, power, authority
Silver, Gold, Platinum Regal, Wealthy

39. CB – UNIT 3
SELF & SELF-IMAGE
Self-image of perceptions of self related with purchasing
behaviour of an individual
Consumer tend to approach products with images that
could enhance their self-concept
ONE OR MULTIPLE SELVES:
A consumer who acts differently in different situations or
with different people
E.g.: A person is likely to behave in different ways at
home, at work or with friends.
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40. CB – UNIT 3
The Make-up of the Self-Image
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• How consumers in fact see
themselvesActual Self-Image
• How consumers would like to see
themselvesIdeal Self-Image
• How consumers feel others see them
Social Self-Image
• How consumers would like others to
see them
Ideal Social Self-Image
• How consumers expect to see
themselves at some specified future
time
Expected Self-Image

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The Extended Self
Interrelationship between consumers’ self-images & their
Possessions
Human emotions can be connected to valued possessions.
Possessions can extend the self in a number of ways:
1. Actually, by allowing the person to do things that
otherwise would be very difficult to accomplish
2. Symbollically, by making the person feel better or
‘bigger’
3. By conferring status or rank
4. By bestowing feelings of immortality
5. By endowing with magical powers
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Chapter 6
PSYCHOGRAPHICS, VALUES & LIFESTYLES
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LIFESTYLE DEFINITION
Lifestyle (Also known as psychographics):
Consumers’ modes of living reflected in their activities,
interests & opinions
Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.
Activities: How people spend their time
Interests: What people consider important in their
environment
Opinions: What people think of themselves & the world
around them
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LIFESTYLE DEFINITION
Constellation of individual characteristics that reflect
certain behaviour – participation in group activities,
hobbies
Source: CB, Pondicherry University
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Activities
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ACTIVITIES
Work
Hobbies
Social events
Shopping
Sports
Entertainment
Vacation
Club
Membership

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Interests
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INTERESTS
Job
Family
Community
Fashion
Media
Achievement
Home
Food

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Opinions
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OPINIONS
Personal
Relations
Social
issues
Business
Economics
Products
Education
Politics
Future

48. CB – UNIT 3
LIFESTYLE IMPACTS
• What type of buying behaviour is preferred?
• Foundation of time use & time preferences
• Patterns of consumption are based on lifestyle
• People sort themselves into groups based on what they
like to do – sports, reading, fishing, music enthusiasts
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Value & Lifestyle Survey - VALS
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Principle
oriented
Status
oriented
Action
oriented

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VALS
• Innovators: Successful, sophisticated
• Thinkers: Mature, Satisfied, Comfortable &
Reflective
• Believers: Strong Principles, Proven Brand
• Achievers: Career Oriented, Practical, Premium
Products
• Strivers: Trendy, Funny Material Wealth
• Experiencers: Impulsive, Young, Active, Seek Risk
• Makers: Constructive, Self-sufficient
• Survivors: Narrow-focussed Life, Concern about
Safety & Security
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Ideals
Motivated
Achievement
Motivated
Self-
expression
Motivated

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SOCIAL CLASS
Factors Showing Social Class Differences
Authority
Income
Occupations & Achievement
Education
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52. CB – UNIT 3
CHARACTERISTICS OF SOCIAL CLASS
• Persons within a given social tend to behave more alike.
• Social class is hierarchical.
• Social class is not measured by a single variable but is
measured as a weighted function of one’s occupation,
income, wealth, education, status, prestige, etc.
• Social class is continuous rather than concrete, with
individuals able to move into a higher social class or
drop into a lower class.
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PROMINENT SOCIAL CLASS
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Upper-Uppers
Lower Uppers
Upper Middles
Middle Class
Working Class
Upper Lowers
Lower Lowers

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CHARACTERISTICS OF SOCIAL CLASS
SOCIAL CLASS CHARACTERISTICS
Upper – Uppers •Inherited wealth, have well known families
•Seek to buy jewellery, antiques, homes & foreign trips
•Eg. Mr. Anil Ambani
Lower-Uppers •Earned high income or wealth through exceptional ability in their profession or
business
•Usually come from middle-class
•Tend to be active in social & civic affair
•Seek to buy the symbol of social status, expensive cars, homes & schooling
•Eg. Late Shri Dhirubhai Ambani
Upper Middles •Possess neither family status nor unusual wealth
•Concerned with career
•Attend positions as professional, independent businessmen & corporate
managers
•Civic minded, quality market for good clothes, homes, furniture & appliance
Middle Class •Average paid white & blue-collar workers
•Buy products ‘to keep up with the trends’
•Spend money on ‘worth-while experiences’ for their kids
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CHARACTERISTICS OF SOCIAL CLASS
SOCIAL CLASS CHARACTERISTICS
Working Class •Pay blue collar workers, lead working class lifestyle
•Depends heavily on relatives for economic & emotional support, advice
on purchase, for assistance in times of trouble
•Larger families, stereotype, sharp gender-role division
Upper Lowers •Working, living standard just above the poverty line
•Perform unskilled work, standard of living: just APL
•Perform unskilled work & are poorly paid
•Educationally deficient
•Maintain some level of cleanliness
Lower Lowers •Visibly poverty-stricken
•Usually out of work
•Not interested in finding permanent jobs
•Dependent in charity for income
•Homes & possessions are dirty, ragged & broken down
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IMPACT OF SOCIAL CLASS
• Provides a sense of identity
• Imposes a set of normative behaviour
• Classes share values, possessions, customs & activities
• Marketing response to customers of different economic
means
• Marketing to the low-income consumer
• Some marketers ambivalent as not perceived as long-
term customers
• Constitutes a substantial group
• Target with value-oriented strategies
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57. CB – UNIT 3
REFERENCES
1. Loudon & Della Bitta: CONSUMER BEHAVIOUR: CONCEPTS AND
APPLICATIONS, Tata McGraw Hill.
2. Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent
Publishing Co.
3. Berkman & Gilson: CONSUMER BEHAVIOUR: CONCEPTS AND STRATEGIES,
Kent Publishing Co.
4. Bennet and Kassarjian: CONSUMER BEHAVIOUR, Prentice Hall of India.
5. Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th
Edition.
6. Hawkins, Best & Concy: CONSUMER BEHAVIOUR, Tata McGraw Hill.
7. Efraim Turban, Jae Lce, David King & ---- Michael Chung: Electronic Commerce:
Managerial Perspective, Pearson Education Inc. 2000.
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THANK YOU