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Consumer As an
Individual
Prof. Aparna Kanchan
2
Characteristics Affecting …………..
…………….Consumer Behavior
Buyer
Psychological
Social
Cultural
Personal
2
3
Psychological
Factors
Motivation
Perception
Learning
Beliefs and
Attitudes
Factors Affecting Consumer Behavior:
Psychological
4
4
Motivation refers to an activated state within a person that
leads to goal-directed behavior.
It consists of the drives, urges, wishes, or desires that
initiate the sequence of events leading to a behavior.
e.g. A banner announcing “50% off” on Lewis Jeans –
leading to youth discussing plans to visit the store.
A combo pack of “Harpic & Odonil” - leading
housewives shifting their favorite store.
What is Motivation?
5
Model of the Motivation Process
6
Philosophies Concerned with
Arousal of Motives
• Behaviorist School
– Considers motivation to be a mechanical process
– Behavior is response to stimulus
– Elements of conscious thoughts are to be ignored
– Consumer does not act, but reacts
• Cognitive School
– Behavior is directed at goal achievement
– Needs and past experiences are reasoned,
categorized, and transformed into attitudes and
beliefs
7
7
 Motivation begins with a stimulus that leads to the
recognition of a need. E.g. the free Odonil with Harpic was a
stimulus for the housewife.
 Need recognition occurs when a perceived
discrepancy exists between an actual and a desired
state of being
 Needs can be either innate or learned.
 Needs are never fully satisfied.
 Feelings and emotions accompany needs
 Expressive needs involve desires by consumers to
fulfill social and/or aesthetic requirements. E.g. buying of
a M F Hussain Painting
 Utilitarian needs involve desires by consumers to
solve basic problems . E.g. filling a car’s gas tank.
8
Changing
Consumer
Needs
9
9
The Types of Emotions
 The Ten Emotions People Experience:
Disgust Interest
Joy Surprise
Sadness Anger
Fear Contempt
Shame Guilt
10
1
0
Some General Theories of Motivation
 Maslow’s Need Hierarchy
 McClelland’s Theory of Learned Needs
 Achievement motivation is seeking to get ahead, to strive for
success, and to take responsibility for solving problems.
 Need for affiliation motivates people to make friends, to become
members of groups, and to associate with others.
 Need for power refers to the desire to obtain and exercise
control over others.
 Need for uniqueness refers to desires to perceive ourselves as
original and different.
11
11
Maslow’s Hierarchy of Needs
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Self
Actualization
(Self-development)
12
This ad reflects
a need for
accomplishment
with a
toothpaste.
13
Appeal to Egoistic Needs
14
Appeal to
Self-
Actualization
15
Appeal to
Power
Needs
16
Appeal to
Affiliation
Needs
17
Appeal to
Achievement
Needs
18
1
8
Learning
Kotler’s Definition : Learning involves changes in an individual’s
behaviour arising out of experience. Most of the human behaviour
is learned over time out of experience.
Schiffman and Kanuk’s Definition : Learning is a process by
which individuals acquire the purchase and consumption knowledge
and experience that they apply to future related behaviour.
Loudon and Della Bitta’s Definition : Learning can be viewed as a
relatively permanent change in behaviour occurring as a result of
experience.
19
1
9
The salient features of Learning :
1. Consumer learning is a process, and thus it continuously
changes and evolves as a result of newly acquired knowledge.
2. This knowledge can be obtained from reading, discussing,
observing, thinking, etc. Or from actual experience.
3. Both the newly acquired knowledge and personal experience
serve as a feedback.
4. This also serve as a future behaviour in similar situations.
5. Not all learning is deliberate. Learning can be :
• Intentional : acquired as a result of careful search for information
with effort.
• Incidental : acquired as a result of accident or by the way, without
much effort.
6. The term “Learning” generally covers all ranges of learning from
simple reflexive responses to abstract concepts or complex
problem solving capability.
20
2
0
ELEMENTS OF LEARNING
1. Motives, motivation or drive is very important for learning. E.g.
showing ads for winter goods just before winter and summer
products just before summer.
2. Cues - Motives stimulate learning, whereas “Cues” are the stimuli
that give direction to these motives. E.g. in the market place, price,
styling, packaging, store display all serve as cues to help consumer
to decide a particular product from a group.
3. Response - Response is how the consumers react to the motives
or a cue, and how they behave. Response can be overt (open,
physical or visible) or covert (hidden or mental).
4. Reinforcement - Reinforcement is an important element which
increases the probability (tendency or likelihood) of a particular
response to occur in future as a result of a given set of motives and
cues.
21
22
23
24
25
26
27
2
7
Classical Conditioning
 E.g. ‘Zoo Zoo’ paired with Vodafone means mobile service
provider.
 E.g. whenever we see ‘Kingfisher’ we are reminded of the
airlines company
We can say……
 A neutral stimulus, such as a brand name, is
paired with a stimulus that elicits a response.
 Through a repetition of the pairing, the neutral
stimulus takes on the ability to elicit the
response.
28
2
8
Unconditioned/Secondary Stimulus Unconditioned Response
Pairing
Conditioned Stimulus Conditioned Response
Lotus
Emotions
BJP
candidate Emotions
Classical Conditioning Relations
29
2
9
Classical Conditioning: Applications
 Applications: communications--advertising, public
relations, personal selling.
 Goal: identify powerful positive stimulus and
associate brand with it.
 Examples of powerful, emotion causing stimuli:
 beautiful, sexy people
 patriotic themes, religious symbols
 Music, beautiful scenes
 Also, negative stimuli can be associated with competitors.
 Credit card insignia may elicit spending responses
30
3
0
Operant Conditioning :
The process in which the frequency of occurrence of
a bit of behavior is modified by the consequences of
the behavior.
 If positively reinforced, the likelihood of the
behavior being repeated increases. E.g. buy one shirt,
get another shirt at 50% discount. Buy two shirts, get the third
at 75% discount.
 If punished, the likelihood of the behavior being
repeated decreases. E.g. the more electricity you use,
the rate per unit increases.
31
3
1
Reinforcement & Influencing
Behavior
 A reinforcer is anything that occurs after a behavior
and changes the likelihood that it will be emitted
again.
 Positive reinforcers are positive rewards that follow
immediately after a behavior occurs.
 Negative reinforcers are the removal of an aversive
stimulus.
32
3
2
Secondary reinforcers . . .
. . . are a previously neutral stimulus that acquires
reinforcing properties through its association with a
primary reinforcer.
 Over a period of time, previously neutral stimuli can
become secondary reinforcers.
 In marketing, most reinforcers are secondary (e.g.
a product performing well, a reduction in price)
33
3
3
A Punisher . . .
. . . is any stimulus whose presence after a behavior
decreases the likelihood of the behavior reoccurring.
e.g. anti-smoking ads.
34
3
4
Extinction & Eliminating Behaviors
 Once an operant
response is conditioned,
it will persist as long as
it is periodically
reinforced.
 Extinction is the
disappearance of a
response due to lack of
reinforcement.
35
3
5
Perception
Selecting, organizing and interpreting information in a
way to produce a meaningful experience of the world is
called perception.
36
3
6
Selective
Exposure
Selective
Comprehension
Selective
Retention
Consumer pays attention to certain stimuli and
ignores others
Consumer interprets info so that is is
consistent with his beliefs
Average consumer only remembers
30% of information heard
Three different perceptual processes
37
3
7
Perceived risk
Perceived risk represents the anxieties felt because
the consumer cannot anticipate the outcomes of a
purchase but believes that there may be negative
consequences.
Perceived risk is a consumer’s perception of the
overall negativity of a course of action based upon as
assessment of the possible negative outcomes and of
the likelihood that these outcomes will occur.
Perceived risk consists of two major concepts - the
negative outcomes of a decision and the probability
these outcomes will occur.
38
3
8
7 Types of Consumer Risks.
 Financial/Economic
 Performance
 Physical/Personal
 Psychological
 Social
 Time
 Opportunity Loss
39
3
9
Factors Influencing Risk Perception
 Characteristics of the person—e.g., need for
stimulation
 Nature of the task
 Voluntary risks are perceived as less risky than involuntary
tasks.
 Characteristics of the product—price
 Salience of negative outcomes
40
4
0
Six risk-reduction strategies
 Be brand loyal and
consistently purchase the
same brand.
 Buy through brand image
and purchase a quality
national brand.
 Buy through store image
from a retailer that you
trust.
 Seek out information in
order to make a well
informed decision.
 Buy the most expensive
brand, which is likely to
have high quality.
 Buy the least expensive
brand in order to
reduce financial risk.
THANK- YOU
42
https://forms.gle/f6kPs1guQxosKgA2A

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Session 4-Consumer as an Individual.ppt

  • 2. 2 Characteristics Affecting ………….. …………….Consumer Behavior Buyer Psychological Social Cultural Personal 2
  • 4. 4 4 Motivation refers to an activated state within a person that leads to goal-directed behavior. It consists of the drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior. e.g. A banner announcing “50% off” on Lewis Jeans – leading to youth discussing plans to visit the store. A combo pack of “Harpic & Odonil” - leading housewives shifting their favorite store. What is Motivation?
  • 5. 5 Model of the Motivation Process
  • 6. 6 Philosophies Concerned with Arousal of Motives • Behaviorist School – Considers motivation to be a mechanical process – Behavior is response to stimulus – Elements of conscious thoughts are to be ignored – Consumer does not act, but reacts • Cognitive School – Behavior is directed at goal achievement – Needs and past experiences are reasoned, categorized, and transformed into attitudes and beliefs
  • 7. 7 7  Motivation begins with a stimulus that leads to the recognition of a need. E.g. the free Odonil with Harpic was a stimulus for the housewife.  Need recognition occurs when a perceived discrepancy exists between an actual and a desired state of being  Needs can be either innate or learned.  Needs are never fully satisfied.  Feelings and emotions accompany needs  Expressive needs involve desires by consumers to fulfill social and/or aesthetic requirements. E.g. buying of a M F Hussain Painting  Utilitarian needs involve desires by consumers to solve basic problems . E.g. filling a car’s gas tank.
  • 9. 9 9 The Types of Emotions  The Ten Emotions People Experience: Disgust Interest Joy Surprise Sadness Anger Fear Contempt Shame Guilt
  • 10. 10 1 0 Some General Theories of Motivation  Maslow’s Need Hierarchy  McClelland’s Theory of Learned Needs  Achievement motivation is seeking to get ahead, to strive for success, and to take responsibility for solving problems.  Need for affiliation motivates people to make friends, to become members of groups, and to associate with others.  Need for power refers to the desire to obtain and exercise control over others.  Need for uniqueness refers to desires to perceive ourselves as original and different.
  • 11. 11 11 Maslow’s Hierarchy of Needs Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development)
  • 12. 12 This ad reflects a need for accomplishment with a toothpaste.
  • 18. 18 1 8 Learning Kotler’s Definition : Learning involves changes in an individual’s behaviour arising out of experience. Most of the human behaviour is learned over time out of experience. Schiffman and Kanuk’s Definition : Learning is a process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Loudon and Della Bitta’s Definition : Learning can be viewed as a relatively permanent change in behaviour occurring as a result of experience.
  • 19. 19 1 9 The salient features of Learning : 1. Consumer learning is a process, and thus it continuously changes and evolves as a result of newly acquired knowledge. 2. This knowledge can be obtained from reading, discussing, observing, thinking, etc. Or from actual experience. 3. Both the newly acquired knowledge and personal experience serve as a feedback. 4. This also serve as a future behaviour in similar situations. 5. Not all learning is deliberate. Learning can be : • Intentional : acquired as a result of careful search for information with effort. • Incidental : acquired as a result of accident or by the way, without much effort. 6. The term “Learning” generally covers all ranges of learning from simple reflexive responses to abstract concepts or complex problem solving capability.
  • 20. 20 2 0 ELEMENTS OF LEARNING 1. Motives, motivation or drive is very important for learning. E.g. showing ads for winter goods just before winter and summer products just before summer. 2. Cues - Motives stimulate learning, whereas “Cues” are the stimuli that give direction to these motives. E.g. in the market place, price, styling, packaging, store display all serve as cues to help consumer to decide a particular product from a group. 3. Response - Response is how the consumers react to the motives or a cue, and how they behave. Response can be overt (open, physical or visible) or covert (hidden or mental). 4. Reinforcement - Reinforcement is an important element which increases the probability (tendency or likelihood) of a particular response to occur in future as a result of a given set of motives and cues.
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  • 27. 27 2 7 Classical Conditioning  E.g. ‘Zoo Zoo’ paired with Vodafone means mobile service provider.  E.g. whenever we see ‘Kingfisher’ we are reminded of the airlines company We can say……  A neutral stimulus, such as a brand name, is paired with a stimulus that elicits a response.  Through a repetition of the pairing, the neutral stimulus takes on the ability to elicit the response.
  • 28. 28 2 8 Unconditioned/Secondary Stimulus Unconditioned Response Pairing Conditioned Stimulus Conditioned Response Lotus Emotions BJP candidate Emotions Classical Conditioning Relations
  • 29. 29 2 9 Classical Conditioning: Applications  Applications: communications--advertising, public relations, personal selling.  Goal: identify powerful positive stimulus and associate brand with it.  Examples of powerful, emotion causing stimuli:  beautiful, sexy people  patriotic themes, religious symbols  Music, beautiful scenes  Also, negative stimuli can be associated with competitors.  Credit card insignia may elicit spending responses
  • 30. 30 3 0 Operant Conditioning : The process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior.  If positively reinforced, the likelihood of the behavior being repeated increases. E.g. buy one shirt, get another shirt at 50% discount. Buy two shirts, get the third at 75% discount.  If punished, the likelihood of the behavior being repeated decreases. E.g. the more electricity you use, the rate per unit increases.
  • 31. 31 3 1 Reinforcement & Influencing Behavior  A reinforcer is anything that occurs after a behavior and changes the likelihood that it will be emitted again.  Positive reinforcers are positive rewards that follow immediately after a behavior occurs.  Negative reinforcers are the removal of an aversive stimulus.
  • 32. 32 3 2 Secondary reinforcers . . . . . . are a previously neutral stimulus that acquires reinforcing properties through its association with a primary reinforcer.  Over a period of time, previously neutral stimuli can become secondary reinforcers.  In marketing, most reinforcers are secondary (e.g. a product performing well, a reduction in price)
  • 33. 33 3 3 A Punisher . . . . . . is any stimulus whose presence after a behavior decreases the likelihood of the behavior reoccurring. e.g. anti-smoking ads.
  • 34. 34 3 4 Extinction & Eliminating Behaviors  Once an operant response is conditioned, it will persist as long as it is periodically reinforced.  Extinction is the disappearance of a response due to lack of reinforcement.
  • 35. 35 3 5 Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception.
  • 36. 36 3 6 Selective Exposure Selective Comprehension Selective Retention Consumer pays attention to certain stimuli and ignores others Consumer interprets info so that is is consistent with his beliefs Average consumer only remembers 30% of information heard Three different perceptual processes
  • 37. 37 3 7 Perceived risk Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. Perceived risk is a consumer’s perception of the overall negativity of a course of action based upon as assessment of the possible negative outcomes and of the likelihood that these outcomes will occur. Perceived risk consists of two major concepts - the negative outcomes of a decision and the probability these outcomes will occur.
  • 38. 38 3 8 7 Types of Consumer Risks.  Financial/Economic  Performance  Physical/Personal  Psychological  Social  Time  Opportunity Loss
  • 39. 39 3 9 Factors Influencing Risk Perception  Characteristics of the person—e.g., need for stimulation  Nature of the task  Voluntary risks are perceived as less risky than involuntary tasks.  Characteristics of the product—price  Salience of negative outcomes
  • 40. 40 4 0 Six risk-reduction strategies  Be brand loyal and consistently purchase the same brand.  Buy through brand image and purchase a quality national brand.  Buy through store image from a retailer that you trust.  Seek out information in order to make a well informed decision.  Buy the most expensive brand, which is likely to have high quality.  Buy the least expensive brand in order to reduce financial risk.