Individual determinants of Consumer Behaviour

Individual Determinants of Consumer
Behavior
 - Prof. Kiran S.Shinde
 - MBA (Mkt. & HR)
 Asst. Professor Sanjivani College of
 Engineering and MBA
 (An Autonomous Institute under SPPU, Pune)
 Kopargaon Dist. Ahmednagar MS
 -9890085649

Individual Determinants of
Consumer Behaviour
 Personality & Self Concept
 Motivation
 Learning, Memory& Recall
 Attitudes

Personality & Self Concept
 Personality is dynamic organization, inside the person
of psychological system that creates persons
characteristics pattern of behaviour, thought and
feeling.- G.W.Allport
 Unique dynamic particular characteristics of person
physical, psychological, which influences behaviour
and responses to social and physical environment.

Nature of Personality
 Individual difference
 Personality is consistence and Enduring
 Can Change

Components of Personality
/Personality traits
 1.Openness to Experience – (Willingness to learn).
 Openness to experience is one of the domains which are
used to describe human personality in the Five Factor
Model ,including active imagination (fantasy), aesthetic
sensitivity, attentiveness to inner feelings, preference for
variety, and intellectual curiosity.
 2.Conscientious ness (Diligent & Sincere)is the
personality trait of being careful, or vigilant.
 Conscientiousness implies a desire to do a task well, and
to take obligations to others seriously.
 Conscientious people tend to be efficient and organized
as opposed to easy-going and disorderly.

 3.Extroversion(Outgoing & Energetic)
Extroversion is defined as the quality of being
outgoing and directing attention to things other than
yourself. When a person likes going out all the time
and being the center of attention, this is an example
of extroversion.
 4. Agreeableness(friendly & passionate)
 Agreeableness is a personality trait manifesting itself
in individual behavioral characteristics that are
perceived as kind, sympathetic, cooperative, warm,
and considerate.

 5. Neuroticism (Sensitive & nervous)
Individuals who score high on neuroticism are more
likely than average to be moody and to experience such
feelings
as anxiety, worry, fear, anger, frustration, jealousy, guilt
, depressed mood, and loneliness.
6. External- person tend to place blame outside (I failed
because there was a problem with exam)
7. Internal- more analytical & place blame on self. (I
failed because I did not study)

Personality Theories
 Freudian or Psychodynamic Theory-
Sigmund Freud's psycho analytic theory of personality
argues that human behavior is the result of the
interactions among three component parts of the
mind: the id, ego, and superego.
This theory, known as Freud's structural theory of
personality, places great emphasis on the role of
unconscious psychological conflicts in shaping
behavior and personality. Dynamic interactions among
these fundamental parts of the mind are thought to
progress stages of development.

Freud's Structure of the Human Mind
According to Freud, our personality develops from the interactions among what he
proposed as the three fundamental structures of the human mind: the id, ego, and
superego.

The Id
The id, the most primitive of the three structures, is concerned with instant
gratification of basic physical needs and urges. It operates entirely
unconsciously (outside of conscious thought). For example, if your id walked
past a stranger eating ice cream, it would most likely take the ice cream for
itself. It doesn't know, or care, that it is rude to take something belonging to
someone else; it would care only that you wanted the ice cream
The Superego
The superego is concerned with social rules and morals—similar to what many
people call their "conscience" or their "moral compass." It develops as a child
learns what their culture considers right and wrong. If your superego walked past
the same stranger, it would not take their ice cream because it would know that
that would be rude. However, if both your id and your superego were involved,
and your id was strong enough to override your superego's concern,
you would still take the ice cream, but afterward you would most likely feel guilt
and shame over your actions.

The Ego
In contrast to the id and the superego, the ego is the rational, pragmatic part
of our personality. It's what Freud considered to be the "self," and its job is to
balance the demands of the id and superego in the practical context of reality.
So, if you walked past the stranger with ice cream one more time, your ego
would mediate the conflict between your id ("I want that ice cream right
now") and superego ("It's wrong to take someone else's ice cream") and decide
to go buy your own ice cream. While this may mean you have to wait 10 more
minutes, which would frustrate your id, your ego decides to make that
sacrifice as part of the compromise– satisfying your desire for ice cream while
also avoiding an unpleasant social situation and potential feelings of shame.

Neo Freudian Theory
 Emphasis on Social approach and childhood
experience to develop personality.

Influence of personality on
purchase decision
 Aggressiveness – Prefers products associated with high
status and success image.
 Detachment – Products appeal to independence .
 Generalized self confidence – more likely to choose
products of lesser known companies.
 Self conscious – prefers products which convey
appropriate self image
Rigidity- Prefers rigid or rough and tough products.

Marketing Implications of
Personality
 Helps marketer to group people on the basis of
common traits.
 Marketers attempt to influence by appealing to
relevant personality traits.
 Helps in brand building.
 Helps in promotion & product positioning.

Self Image
 Self image is once attitude, feelings, perception and
evaluation of oneself.
 Different self Images-
 1.Actual Self – how consumer see themselves.
 2.Social self – how consumer feel others see them.
 3.Ideal Self- How consumer would like others see them
 4.Expected self- how consumer expected to see
themselves at some specified future time.

Use of self Image in Marketing
 Discrepancy – Discrepancy between actual and ideal self
Image.
High discrepancy – fairness creams, obesity
 Congruence – (agreement or harmony; compatibility)
Consumer choose store to purchase products choose stores
that extends own self concept.
BMW car, Oval soap,Pink Colour femininity , softness,
Marketers use congruence concept to design product size,
shape, colour. Usage, packaging, design etc.
 Ensuring satisfaction
 Creative Strategy and Positioning
 Select Advertising Media

Motivation
 Behind every action there is motivation
 Motivation is a process of inducing a persons
experience the need for something or a goal and
behaviour towards achieving it .
 So motivation includes
 1. need perception
2.the drive to fulfill it, which guides behaviour
3.the goal

 Motive can be define as drive or urge for which
individual seeks satisfaction. It becomes buying
motive when individual seek satisfaction through the
purchase something.
 Consumer buying Motives
 1. Economic factors-
 2.Psychological factors- Maslows triangle of needs.

Types of Buying Motives
 1.Inherent Motives ,Learned diving Motives- , -
Inherent Motives arises from basic needs of
consumers, comfort and safety.
 Learned diving Motives- acquires from environment in
which he lives, or society.
Examples- social status, social appearance, economic
political achievements,

 2. Emotional and rational motives –
 Emotional arises from feelings and affection.
Love and affection etc., hearts overtakes mind
 Rational arises from logic and justification. Mind
dominates over heart. Examples- quality, price,
durability, service, future expectations.

 3. Psychological and Social Motives-
 Psychological arises from internal psychological
process learning, perception, attitudes
 Social arises from society for recognition .

General Theories of Motivation
 1. Instinct Theory - typically fixed pattern of behaviour in
animals in response to certain stimuli. Arises from basic needs of
survival.
 2. Drive reduction Theory –
 According to this theory people try to reduce internal drives by
fulfilling needs for internal calmness, it happen when tension of
unfulfilled needs reduced.
 Example- Internal feeling of hunger or thirst motive to eat or
drink.
 Homeostasis-
 the tendency of a system, especially the physiological system of
higher animals, to maintain internal stability, owing to the
coordinated response of its parts to any situation or stimulus tha
t would tend to disturb its normal condition or function.

 3. Arousal Theory- (excitement)Arousal theory
proposes that motivation is strongly linked to
biological factors that control reward sensitivity and
goal-driven behavior.
 4 Psychoanalytic Theory- According to this theory
every individual has two goals behind single activity.
 Eg. people persue education not just for being
educated but because it opens avenue of better
employment.

 5. Humanistic Theory-
 Humans are driven to achieve their maximum
potential and will always do so unless they come across
obstacles that divert their attention and focus . These
obstacles may be physical like hunger, thrust or
financial constraints or emotional like fear, anger etc.
Based on Maslows theory of hierarchy . Maslow
expanded the field of humanistic psychology to
include an explanation of how human needs change
throughout an individual's lifespan, and how these
needs influence the development of personality.

Types of Motivation
 1. Intrinsic and extrinsic Motivation-
 Intrinsic when engage in activity without external
incentive.
 Extrinsic comes from outside of performer.
Eg. In sports money, trophy, cheering crowds
2. Positive and negative Motivations-
Positive drive takes towards goal.
Negative associated with emotions like anger , disgust
etc.

 3. Latent , Manifest and Obvious motivation-
 Latent motives are unknown to person or reluctant to
admit.
Manifest motives are known to the person and freely
admitted.
4. Physiological arousal-
This is mostly involuntary, Individual feel uncomfortable
and tense until need is satisfied. Ex. Soft drink adds
in Summer.

 5. Emotional Arousal- Dreaming situation
Individual goes through various emotional states and may
fantasies and enter into a dream like state heaven while
awake.
Eg. Girls use fairness creams to fulfill the dream of becoming
attractive.
6. Cognitive Arousal- Individuals motivation may aroused by
some random thoughts or event linking of the thoughts.
Eg. A person sees florists shop while going and remember
wife's birthday and purchased flower, chocolate, cake and
gift.
Or attractive hoardings, hoarding of popular fast food
restaurant stimulates hunger.

 7. Environmental Arousal-
Individual takes cues from environment around them
and he provides his stimulus for action directed
behaviour.
beautiful atmosphere, attractive hoardings, hoarding of
popular fast food

Involvement
 One of the determinants of consumer purchases is
involvement of consumer himself in selection of the
products .
 Depends on extent to which consumer perceives the
products
 High involvement – expensive products. Cars, a home
etc. or highly significant products cosmetics, beauty
products, dress etc. High involvement reflects high
risk
 1. Personal Risk 2. Social Risk- enhance or drag social
image 3.Economic risk- expenses incurred to purchase

 Low involvement products – little personal interest, no
of alternatives available, no risk attached, spending is
less , frequently bought.
 Eg. Soaps, detergents, shampoo, pen,

Buying Situations
 1. Routinised response – personal experience, no time
for evaluating alternatives, spending is less, good
brand loyalty.
 Eg. Toothpaste, biscuits, shaving cream, fairness
products.
 2. Limited problem solving- new product Claim better
performance, spends some time consideration of
alternatives, rebuy or continue with previous products.
 Eg. Dish wash , detergent

 3. Extensive problem solving-Each purchase becomes
new task. Carry high risk, consumer is unaware about
alternatives, has to collect information.
 Eg. Purchasing new software or new version of laptop.
 4. Variety Seekers- seek to try new brands, expected
better, they prefers change.
 5. Impulse Purchases- unplanned buys, attracted by
discounts and offers, eg. Vegetables

Learning Memory and Recall
 Learning- It can be defined as any relatively
permanent change in behaviour that occurs as a
result of experience.
 Learning is the process of acquiring new knowledge
modifying existing base of behaviour, skills, values or
preferences.

Learning Theories and Styles
 A. Behaviorism- Focuses on observable aspects of
learning. Based on fact that learning occurs through
the connection between external stimuli and response.
 There are two approaches
 1.Classical Conditioning-Ivan Pavlov
 In the process of classical conditioning a natural
stimulus when paired with unconditional stimulus

Application of classical
conditioning
 Repetition
 Stimulus generation –
 Stimulus Discrimination
-Product line extension
- Product form extension
- Product category extension
- Family branding

 Operant Conditioning or Instrumental –
K.F.Sniker
 conditioning- It believes that learning depends on
change in overt(not hidden) behaviour.
 Initial Behaviour(Use of product or services)-Positive
or negative consequences(reward or punishment)-
Increase or decrease probability of repeat behaviour
purchasing

Application of Instrumental
conditioning
 Reinforcement –
 Reinforcement is anything that increases strength of
similar response in similar situation.
 Positive and negative reinforcement

B. Cognitive learning theory
 Cognitive- concerned with the act or process of knowing,
perceiving, etc.
 According to psychologist cognitive learning viewed as a
problem solving procedure and equated to process of
complex problem solving.
 According to this theory learning is not result of stimulus ,
response or reinforcement but learning is result of thought
process or insight.
 Considerable learning takes place because consumer
thinking and problem solving.
 Goal-Purchase behavior-Insight-Goal achievement

C. Observational Learning or
Modeling or Social learning
 This is proposed by Bandura in 1977.
 It based on social aspects and imitation of others
behavior as a model.
 This means that model person serves as ideal and
their behavior pattern will served as goal for others to
follow.

Components/Principals of learning
 Motivation- It is driving force that implies individuals to
action. Ex- Student seek to learn computer course.
 Cues- Signals- Cues are relatively weak stimuli not strong
enough to arouse consumer but can provide direction. Ex-
Advertisement of computer course.
 Response- way an individual react to cue or stimuli
 Reinforcement- can be anything increases strength of
response. Ex- Remedy provided by medicine.

Memory
 It is information that individual retains and stores and
can recall for future use.
 Experiments shows that whatever consumers obtain
they are unable to retrieve readily.
 Consumers have large memory storage, at any given
point of time only portion of memory can be activated
for use.
 There are 3 storehouses for memory

 1. Sensory Memory- it holds information for few
seconds. Senses do not rely on complete information,
each sense organ receives small portion of
information.
 Examples- flowers shape,colour,smell feel etc.
 2. Short term memory- Short term memory allows to
recall for few minutes. It is real working memory have
short capacity.
 Ex. Telephone numbers displayed in TV commercials
remembers till dialing.

 3. Long Term Memory- relatively permanent, having
long term duration, unlimited capacity, individual able
to recall for long period or life time.
 Examples- events, birthday parties, persons etc.

 Long-term memory is often divided into two
further main types: explicit (or declarative)
memory and implicit (or procedural) memory.
 Explicit memory (“knowing what”) is memory of
facts and events, and refers to those memories that
can be consciously recalled (or "declared"). it
consists of information that is explicitly stored and
retrieved, although it is more properly a subset of
explicit memory. Explict memory can be further
sub-divided into episodic memory and semantic
memory

 Episodic memory represents our memory
of experiences and specific events in time in a serial
form, from which we can reconstruct the actual events
that took place at any given point in our lives. It is the
memory of autobiographical events (times, places,
associated emotions and other contextual knowledge)
that can be explicitly stated. Individuals tend to see
themselves as actors in these events, and
the emotional charge and the entire context
surrounding an event is usually part of the memory,
not just the bare facts of the event itself.

 Semantic memory, on the other hand, is a more
structured record
of facts, meanings, concepts and knowledge about the
external world that we have acquired. It refers to general
factual knowledge, shared with others and independent
of personal experience and of the spatial/temporal
context in which it was acquired. Semantic memories may
once have had a personal context, but now stand alone as
simple knowledge. It therefore includes such things as
types of food, capital cities, social customs, functions of
objects, vocabulary, understanding of mathematics, etc.
Much of semantic memory is abstract and relational and is
associated with the meaning of verbal symbols.

 Implicit (“knowing how”) is the unconscious memory of
skills and how to do things, particularly the use of objects
or movements of the body, such as tying a shoelace, playing
a guitar or riding a bike. These memories are typically
acquired through repetition and practice, and are
composed of automatic sensorimotor behaviors that are so
deeply embedded that we are no longer aware of them.
Once learned, these "body memories" allow us to carry out
ordinary motor actions more or less automatically.
Procedural memory is sometimes referred to as implicit
memory, because previous experiences aid in the
performance of a task without explicit and conscious
awareness of these previous experiences, although it is
more properly a subset of implicit memory.

Recall
 Retrieve information or events from past.
 Information search
 Search of Information-Recognition of information-
Recall
Types of recall
1. Free recall 2. Cued Recall 3.Serial recall

Factors affecting recall
 1. List length effect
 2.Word length
 3.Priority
 4.Attension
 5. Focus
 6. Context – Environment
 7. State or Condition of Individual
 8.Gender- females perform more better on episodic
memory task.
 9.Effect of time
 10.Stress

Use of recall for marketers
 Prototype- Xerox, Parle, Nirma
 Congruence – linkage eg. Cadbury for festivals
 Redundancies- showing stimulus several times
 Eg. Mosquito add shows missing significant
opportunities.
 Priming- associate products with events eg. paithani
for wedding
 Positioning – implementing targeting strategy .

Attitude
 Attitudes are usually associated with notion of liking
or disliking someone or thing. Attitudes are said to be
resulting from a combination of beliefs, values and
opinions.
 Attitudes are learned predispositions to respond
to an object or class of objects in a consistently
favorable or unfavorable way. –Gorden Allport
 Attitudes are learned- gets formed on basis of
experience
 predispositions- resides in mind of individual
 Consistent response – precedes and produce behavior.

Attitude Opinion and Belief
 Value involve an individuals judgment on what is right,
good desirable and worthwhile. While beliefs are ideas
to which we aspire and may be expressed.
 Marketers are trying to understand attitude, modify
them and tries to turn them into positive towards
product, resulting in purchase.

Characteristics of Attitude
 Attitudes are learned- experience,advt,mouth publicity
 Consistency -
 Dynamic can change depending upon situation –
Eg. One may not like rise dishes bust has to eat when he is
south.
 Controversy- one may not purchase a product of company
employs child labour, in reality doing for cheaper product.
 Situation can influence attitude –
 Moov – back pain –need to get immediate relief.
 Pantene- hair fall-need to use shampoo controls hair fall

Nature of consumer
attitude/Component
 Nature can be understood by Cognitive components
(Brand belief) Affective component (Brand evolution)
and Conative component (Intension to buy)
 1.Cognitive components (Brand belief)- belief and
characteristics they ascribe to it.
 Example- general belief-train is always late, personal
belief-service is specific store is poor, ethical beliefs- to
show smoking being enjoyable.

 2.Affective Component(Brand Evaluation)- evaluation
can be measured by rating from poor to excellent or from
prefer least to prefer most. Tendency to evaluate brands in
favorable or unfavorable way.
 3.Conative component -Intension to buy(Behavioural
component)-
Measuring intension helps to formulate marketing strategy.
Marketers tries to influence intension by ad, brand names
,offers , discounts etc.

Factors involved in Attitude
formation
 Group factors- family, reference group, Social factors
 Personality factors-
 Experiences – eg. Sachets availability of products
 Marketing – Direct marketing eg. Eureca Forbes, Amway
products
 Exposure to media

Models for Measuring Attitude
 1. Tri component Attitude Model-
 A. The cognitive Component(belief)- First
component is individuals cognitions. Knowledge and
perception that are acquired either due to direct
exposure to the attitude object. This may give rise to
beliefs .
 B. The Affective Component-(brand evaluation)
 Refers to consumers feeling or emotions towards
particular brand or product. Consumers rate attitude
objects as good, bad,and favourable or unfavorable.

 C. Conative Component(intension)
To understand likelihood of consumer to undertaking
specific action.
2. Multi component model-
Developed by Martin Fishbein
According to Fishbein attitude towards object depends
on
Strength of belief that object has certain attribute
The desirability of these attributes
The number of attributes

Attitude towards an object =
i=1 to n ∑(bi ei).
Where n= no of attributes
bi= strength of belief that object contains i attribute
ei= evaluation of desirability of attribute I
This attitude towards object can be described as sum of
multiplications of belief and evaluation for all
attributes

 Usually b is rated on scale of 1-3
 1=strong belief of presence of attribute to 3= uncertainty of
presence
 e is rated on scale 1-7
 1=highly desirable to 7= undesirable
 Attitude= ∑ (bi*ei)
 The higher the figure less favorable attitude towards the
product or object.
 E.g. Newly Purchased car is having good mileage strong
belief b=1 and and it is highly desirable e=1
 Attitude= ∑ (bi*ei) = 1*1=1 (favorable attitude towards
product)

Individual determinants of Consumer Behaviour

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