Unit 2.ppt BVJHVJHVHVHJVJVKJKJGKJBKJHKJHJKH

· Consumer Needs & Motivation
· Consumer Personality and Self Concept:
Basic Concept
Personality influence and Consumer Behavior
Differential threshold – Weber’s Law
Self concept
· Consumer Perception:
Meaning and Definition
Factors affecting Perception
Perceptual process
Factors responsible for perceptual distortion
· Attitudes:
Concept and characteristics of Attitude
Relationship between attitude and Behavior
Factors involved in attitude formation
Attitude Change
· Learning:
Components of learning
Classical conditioning
Operant conditioning
Application of Classical Conditioning to Advertising
UNIT 3: CONSUMER AS AN INDIVIDUAL
1
UNIT 2 COMPILED BY DR. SHILPA
RAGHUWANSHI

CONSUMER NEEDS & MOTIVATION
• The term "consumer" refers to an individual who
buys goods and services for personal use.
• The consumer makes the decision on whether to
purchase a product or not; thus the consumer is
the target of marketing strategies.
• A need is a necessity such as food, water,
shelter and clothes and also includes a second
car, two pairs of shoes different colors, extra
clothes you want wear etc.
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MOTIVATION PROCESS
“Motivation is the process that cause people to behave as they do,
involving needs, goals and drives.”
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MOTIVATIONAL STRENGTH
• Biological vs. Learned Needs
(innate instinct vs. learned behavior)
• Drive Theory
(achieving homeostasis by gratifying tension caused by the arousal of unpleasant
states)
• Expectancy Theory
pulled by positive incentives (goals) rather than pushed from within
4
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MOTIVATIONAL DIRECTION
• MOTIVES tend to be directional
• Needs vs. Wants
• Need = unsatisfied requirement (hunger)
• Want = the way a person satisfies a need which ultimately is dependent
on “their historical reality” (cheeseburger vs. trail mix)
• Types of Needs
• Biogenic or psychogenic
• Motivational Conflicts
5
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MOTIVATIONAL DIRECTION
• Motivational Conflicts (cont’d)
“theory of cognitive dissonance”
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CONTD…
• Approach-Approach- A person must choose between 2 desirable alternatives.
• The theory of cognitive dissonace In 1956 the US psychologist Leon Festinger
introduced a new concept in social psychology: When two simultaneously held cognitions
are unpredictable, this will produce a state of cognitive dissonance. Because the
experience of dissonance is unpleasant, the person will strive to reduce it by changing
their beliefs.
Sewell (2006)
• Approach-Avoidance conflicts-When the product or services we desire have negative
consequences attached to them.
• Avoidance- Avoidance conflicts- A choice between 2 undesirable alternatives.
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CLASSIFYING NEEDS
• Biogenic vs. Psychogenic
• Needs and Buying Behavior
• Maslow
8
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CLASSIFYING NEEDS
BIO VS. PSYCHO
Biogenic
Vs.
Psychogenic
9
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CLASSIFYING NEEDS
NEEDS & BUYER BEHAVIOUR
• Needs and Buying Behavior
• AFFILIATION – I belong!!
• POWER – “MASTER of my DOMAIN!”
• UNIQUENESS – “I am different!!”
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CLASSIFYING NEEDS
MASLOW’S HIERARCHY OF NEEDS
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CONSUMER PERSONALITY AND SELF CONCEPT
• Surf the most well-known brand of detergent from the rich stable of Hindustan Lever Ltd.
(HLL), Bombay was posed one of major marketing challenges in the history of the HLL in
India, by Nirma, then largely an unknown brand from Ahmedabad, in the early eighties. To
a large extent, the complacency of the HLL itself was responsible for the outcome. Surf
was challenged basically on the price dimension but the Nirma attack was also supported
by the consumers as they too felt an absence of an alternative in the market.
• HLL took time in recovering but gained much ground by positioning a drastically different
personality and image for the Surf. HLL created a memorable character called Lalitaji, and
had her forceful endorsement for the surf when Lalitaji, a strong, independent woman-and
a value buyer, observed `Surf ki kharidari main hi samajhdari hai'.
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WHAT IS PERSONALITY?
• “Some theorists believe that personality differences can be explained primarily, if not
completely, by how individuals acquire their behavior patterns.” If, as stated,
personality is the result of a complex interaction of genetic and environmental inputs
then every person is, in certain respects:
1. like all other persons
2. like some other persons
3. like no other persons
“Personality refers to `a person's unique psychological makeup and how it consistently
influences the way a person responds to his of her environment'. ”
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Genetic
determinants
Prenatal
determinants
Experiential
determinants
Determinants such as
culture, social class,
race, religion,etc..
Developing stable
personality characteristics
such as emotional reactions,
attitudes etc…
Individual
differences in
behavior
associated with
trait difference
Origin of personality traits
Personality development
Personality traits
Behaviors that are
influenced by personality
trait
14
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MOTIVATION AND SELF CONCEPT
• A number of researchers have explored the
connections between motivation and self-
concept because the combination of the
two constructs seems to provide a more
comprehensive account of individual
behaviour (Ford, 1992, Pintrich, 1988).
Ames (1992) suggests that the motivation
to achieve desired goals (effort put into)
influences self-concept perceptions. 15
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• Comparison between Indian company
Nirula’s and MNC Mc. Donald’s.
• Impact of hygiene and nutritional
values as well as other attributes like
service, delivery, quality dimension
etc..
• Mc. Donald’s was the winner of the
competition.
CONSUMER PERCEPTION
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COLOR
• Red logos- warm, sensual and not threatening
• Blue- Comforting
• Pink and off-white- sophisticated
• Purple and grey- In China and Japan, expensive and inexpensive respectively.
• White- Graceful
17
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TASTE
• Pringles of P&G.
• Coke, Pepsi, ThumpsUp etc.
• Blind taste test
• Chocolates, cakes, pastries etc.
18
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SMELL
• Elegant and expensive products i.e. cosmetics, car
sprays, perfumes, facial tissues, cologne, talcum
powders etc…
• Kitchen product i.e. dairy products, packed food,
eatables, spices etc…
• Smell is a cross-cultural dimension : Western culture
has got cologne sprays as their habit, but Japanese
consumers value cleanliness and never felt the need
of perfumes as a means of avoiding body odor.
19
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SOUND
• Traditionally, advertisers use English
accent voice overs to attract people.
• Music, jingles, background theme create
positive associations with brands.
• Pens with background music attract
consumers.
20
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FEEL
• Softness is the main attribute.
• Paper products, textile fabrics, cloths, carpets
and furniture like sofas, chairs etc…
• Leather products like belts, jackets, handbags
etc…
• Softness indicates quality.
21
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CONSUMER CHARACTERISTICS AFFECTING
PERCEPTION
• Stimulus discrimination
1. Threshold level
2. Just Noticeable Difference
3. Weber,s law
4. Subliminal perception
5. Adaptation level -advertising wearout, forgetting all smell, taste etc.
• Stimulus generalization -one out of 2 stimuli
1. Brand leveraging
22
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STIMULUS DISCRIMINATION
• Smell, taste, feel etc.
• Discriminate one product according to their belief.
23
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BETTY CROCKER CHANGES FALL
BELOW THE J.N.D.
24
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DIFFERENTIAL THRESHOLDS AND WEBER’S
LAW
• Weber’s Law states that the stronger the stimulus, the
greater the change required for the stimulus to be seen as
different.; thus,
jnd = K×I
where jnd is the just noticeable difference, I is the intensity of
the stimulus, and k is a constant that differs for different
sensory modalities;
25
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APPLICATIONS OF WEBER’S LAW
• Predictions of consumer response regarding marketing variables or changes made
in the market.
• Eg. If cost of candies fluctuate widely there is a constant search of stable price products.
• Taste can’t be distinguished : one is made with oil and other is of butter.
• Thus, attention of consumer is important. People can at that extent can detect real
chocolate and its substitute.
• Holding prices- to change size or amount slightly.
• Eg. Maggi masala, pichkoo, dairy milk i.e. nestle products use the strategy.
• 23 yrs. One product is in market but varied its weight 14 times.
• Price reductions can also attract consumers
• Reducing price 15% can attract customers.
The most important application of this law is in price. One critical implication
is that the higher the original price of an item, the greater the markdown
required to increase sales
26
RAGHUWANSHI

EXAMPLES OF JND
• HUL (Hindustan Unilever Limited) has raised the price of its soaps, skin creams and detergents
as costs of raw materials like palm oil, an ingredient used in the manufacture of soaps, and
linear alkyl benzene, a key input for detergents, have increased. Hindustan Lever raised the
price for a 1.5-kilogram, package of its Surf Excel Blue detergent pack to 120 rupees from 117
rupees. The price of a 45-gram pack of Lux soap was raised to 6 rupees from 5 rupees. A 9-
gram pack of Fair & Lovely cream was raised to 6 rupees from 5 rupees. The consumer
perception has changed but brand positioning of HUL (Hindustan Unilever Limited) is excellent
which has improved the market share in India.
• If price of a Mercedes Benz S class is reduced by 25000/-, it will not have any impact on sales
because the basic price is in several Lakhs that a difference of Rs25000/- may not be
noticeable for consumers. On the other hand a price reduction of even Rs5000/- for a Maruti
800 is seen to push sales substantially because of its low original price. Another example, if the
price of a car is increased by Rs.1000/-/- it would probably not be noticed i.e., the increment
would fall below the J.N.D. it may take an increase of Rs.5000/-/- or more before a differential in
price would be noticed. However even an one rupee increase in oil price would be noticed very
quickly because it is a significant percentage of the initial amount So an additional level of
stimuli equivalent to the J.N.D. must be added for the majority of people to perceive a difference
between resulting stimulus and the initial stimulus.
27
RAGHUWANSHI

• If an unbranded detergent cost 5 percent less that consumer is regular brand, the
consumer ma not notice the difference. However, if the same unbranded product costs
less than 30 percent less than he is definitely going to notice the difference.
28
RAGHUWANSHI

SUBLIMINAL PERCEPTION
• Retailers have also taken advantage of the ability to encode messages into music
by playing subliminal tapes to secretly persuade shoppers. Some web sites offer
tapes of upbeat jazz or Latino music, "under" which are recorded messages geared
to push consumers to spend or prevent them from stealing.
•
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• In between scenes , images of popcorn and cold drinks on the screen reportedly
increased sales of both items during the movie.
• "The most effective way to unleash the hidden power of the human mind is to
provide it with....subliminal messages."
•
30
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IS SUBLIMINAL PERSUASION EFFECTIVE?
• Extensive research has shown no evidence that subliminal advertising can cause behavior
changes
• Some evidence that subliminal stimuli may influence affective reactions
31
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ASPECTS OF PERCEPTION
Selection
Organization
Interpretation
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Selection
Organization
Interpretation
33
RAGHUWANSHI

PERCEPTUAL SELECTION
• Consumers subconsciously are selective as to what they
perceive.
• Stimuli selected depends on two major factors
• Consumers’ previous experience
• Consumers’ motives
• Selection depends on the
• Nature of the stimulus
• Expectations
• Motives
34
RAGHUWANSHI

• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Consumers seek out messages which:
• Are pleasant
• They can sympathize
• Reassure them of good purchases
Concepts
35
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• Heightened awareness when stimuli meet
their needs
• Consumers prefer different messages and
medium
Concepts
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• Screening out of stimuli which are
threatening
Concepts
37
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• Consumers avoid being bombarded by:
• Tuning out
• TiVo
Concepts
38
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Selection
Organization
Interpretation
39
RAGHUWANSHI

ORGANIZATION
• Figure and ground
• Grouping
• Closure
• People tend to organize perceptions into figure-
and-ground relationships.
• The ground is usually out-of-focus.
• Marketers usually design so the figure is the
noticed stimuli.
Principles
40
RAGHUWANSHI

Lacoste’s campaign uses a very plain
ground so the symbol really shows. weblink

ORGANIZATION
• Grouping
• Closure
• People group stimuli to form a unified
impression or concept.
• Grouping helps memory and recall.
Principles
42
RAGHUWANSHI

ORGANIZATION
• Grouping
• Closure
• People have a need for closure and organize
perceptions to form a complete picture.
• Will often fill in missing pieces
• Incomplete messages remembered more than
complete
Principles
43
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Selection
Organization
Interpretation
44
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INTERPRETATION
• Physical Appearances
• Stereotypes
• First Impressions
• Jumping to Conclusions
• Halo Effect
• Positive attributes of people they know to
those who resemble them
• Important for model selection
• Attractive models are more persuasive for
some products
Perceptual Distortion
45
RAGHUWANSHI

Dove’s campaign
stresses the
everyday
woman.
weblink

INTERPRETATION
• Stereotypes
• Halo Effect
• Stereotypes are generalizations, or
assumptions, that people make about the
characteristics of all members of a group,
based on an image (often wrong) about
what people in that group are like.
• Bengalies, maharashtrians etc….
• People hold meanings related to stimuli
• Stereotypes influence how stimuli are
perceived
47
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PUTTING A “FACE” ON CUSTOMER
SERVICE
weblink
48
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INTERPRETATION
• Stereotypes
• Halo Effect
• First impressions are lasting
• The perceiver is trying to determine which
stimuli are relevant, important, or predictive
49
RAGHUWANSHI

INTERPRETATION
• Stereotypes
• Halo Effect
• People tend not to listen to all the
information before making conclusion
• Important to put persuasive arguments first
in advertising
50
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INTERPRETATION
• Stereotypes
• Halo Effect
• When we consider a person good (or bad) in
one category, we are likely to make a similar
evaluation in other categories.
• Consumers perceive and evaluate multiple
objects based on just one dimension
• Used in licensing of names
• Important with spokesperson choice
51
RAGHUWANSHI

The halo effect
helps Adidas
break into new
product
categories.

PERCEPTUAL PROCESS

ATTITUDES
54
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9-55
ATTITUDES
At the end of this session, you should understand:
• The nature and characteristics of attitudes and their influence over
consumer behaviour
• The ways in which consumer attitudes are formed
• The application of attitude theories to consumer behaviour
• The functions of attitudes
• How consumer attitudes can be measured
• The processes and methods used to change consumer attitudes
RAGHUWANSHI

9-56
ATTITUDES - DEFINED
• An attitude may be defined as a learned predisposition to
respond in a consistently favourable or unfavourable manner with
respect
to a given object

9-57
THE NATURE OF ATTITUDES
• Attitudes vary in their strength
• Attitudes reflect a consumer’s values
• Attitudes are learned: culture, WOM, through ads.
• Different situations influence attitudes
• Attitudes can change.
RAGHUWANSHI

9-58
CONSUMER ATTITUDE TRENDS
• Vicks vaporub
• Polio
• Dove
• Tide
• SBI
• Sanjeev Kapoor
• Javed Habib
RAGHUWANSHI

EXAMPLES
• Mc Donald’s, Pizza Hut, Nirula’s, CCD(young and IT people will prefer these.)
• Indian Coffee House(Middle age, price conscious customers )
• Situational Examples
• Moov(Severe backpain)
• LIC(Financial planning)
• Sanifresh(Germ killing)
• Pantene Pro V(Hair fall)
9-59
RAGHUWANSHI

COMPONENTS OF ATTITUDE
• Cognition(Belief):Brand belief
• Affective (Feelings):Overall brand evaluation
• Conative(Actions):Intention to buy
• Behavior
9-60
RAGHUWANSHI

9-61
HOW ARE ATTITUDES FORMED?
• Conditioning
• Learning can occur from repeated exposure to stimuli
• We are more likely to develop a positive attitude towards behaviour that
continually brings rewards
• Modelling
• Develop attitudes by watching others that we trust or respect
• Cognitive Learning
• Involves problem solving or reaching logical conclusions based on information
RAGHUWANSHI

9-62
ATTITUDE MODELS
• Two main attitude models:
• Tri-component model
• Fishbein’s multi-attribute model
RAGHUWANSHI

9-63
THE TRI-COMPONENT MODEL OF ATTITUDES
• Attitudes are generally considered to be made up of three elements:
• Affective component
• Feelings
• Based on physiological nervous reactions to an object
• Cognitive component
• Beliefs
• What a person believes to be true about an idea, event, person, activity or
object
• Behavioural intentions
• An observable reaction
• e.g. to purchase a particular brand
RAGHUWANSHI

9-64
THE TRI-COMPONENT MODEL OF ATTITUDES
RAGHUWANSHI

9-65
FISHBEIN’S MULTI-ATTRIBUTE MODEL OF
ATTITUDES
• Assumes that attitudes often have many attributes that influence them
• (The tri-component model assesses a person’s attitude to only one attribute of the
attitude)
• Differs from tri-component model in 4 main areas:
• Focuses mainly on the affect component
• Considers the strength of multiple attributes
• Suggests that attitude affects intentions and this leads
to behaviour
• Measures strength of attributes
RAGHUWANSHI

9-66
FISHBEIN’S MULTI-ATTRIBUTE MODEL OF
ATTITUDES
Attitude identification involves:
1. Identifying the attitude
2. Determining consumer intention, based on their attitudes
3. Predicting behaviour based on intentions
RAGHUWANSHI

9-67
FUNCTIONS OF ATTITUDES
Attitudes have 4 main functions:
1. Adjustment function
– Attitudes help consumers adjust to situations
– People seek out group acceptance in order to gain praise or rewards and
avoid punishment
2. Ego defensive function
– Attitudes are formed to protect the ‘ego’
3. Value expressive function
– A consumer’s attitudes are often a reflection of their values
4. Knowledge function
– Attitudes help consumers make decisions and process and filter
information
RAGHUWANSHI

9-68
ATTITUDE MEASUREMENT
• Identify consumer’s salient (most important) beliefs about the object in
question

9-69
ATTITUDE MEASUREMENT TOOLS
• Likert scales
• Used to measure attitudes by offering respondents a list of attitude statements,
for example:
Colgate is a brand I can trust.
1. Strongly Disagree
2. Disagree
3. Neither Agree nor Disagree
4. Agree
5. Strongly Agree
RAGHUWANSHI

9-70
• Semantic differential scales
• Uses a 7-point rating scale with bipolar labels at the end points
• Tends to measure a person’s beliefs about a product, for example:
Pleasant taste
Low priced
Unpleasant taste
High priced
RAGHUWANSHI

9-71
• Measuring purchase intention
• Used to measure whether a consumer is likely to purchase a particular product,
for example
1. How often do you usually purchase Colgate toothpaste?
 Weekly
 Once a month
 Once every few months
 Very occasionally
2. How likely are you to buy Colgate toothpaste in the next 3 months?
 Highly likely to buy
 Probably will buy
 Might buy
 Probably will not buy
 Definitely will not buy
RAGHUWANSHI

9-72
ATTITUDE CHANGE
• Two conditions must exist to allow for attitude change:
• The object of the attitude must no longer provide the satisfaction that it once
did
• Attitudes can change when the consumer’s aspirations change
• Attitude change occurs when one of the three elements of attitude (affect, cognition,
behaviour) undergoes a change
RAGHUWANSHI

9-73
ATTITUDE CHANGE VIA AFFECT (INFLUENCING
FEELINGS)
• Conditioning
• Build up positive feelings through rewards, positive music or emotive symbols
• Feelings towards advertisement/communication
• If you like the advertisement, there is a greater chance you’ll like the product
• Using well-liked celebrities
• Mere exposure
• Just showing an advertisement or communication to consumers can lead to a
positive attitude
RAGHUWANSHI

9-74
ATTITUDE CHANGE VIA COGNITIONS
(INFLUENCING BELIEFS)
• Changing consumer’s beliefs about the
attributes of a brand
• Providing information about the brand
See EXHIBIT 9.6 Dairy Australia and The
Wiggles work together to reinforce the
need for children to have three serves of
dairy every day, page 266.
PowerPoint slides supplied on the
Instructor Resource CD to accompany
Consumer Behaviour include
advertisement images.

9-75
• Influencing consumers to change the
importance of beliefs about the product
• Communicate the importance of other
attributes
See EXHIBIT 9.7 Nutella is positioned
as an ‘energy’ food rather than just a
tasty spread, page 266.

9-76
• Changing consumer beliefs about the
‘ideal’ brand
• Specify what should be most
important about the brand
See EXHIBIT 9.8 Blackmores is the ‘ideal’
brand, according to this advertisement, page
267.
PowerPoint slides supplied on the Instructor
Resource CD to accompany Consumer
Behaviour include advertisement images.

9-77
• Adding new beliefs about the brand
• ‘Did you know that….?’
See EXHIBIT 9.9 Most front loaders are
small, but LG front loaders have a very
large capacity, page 267.

9-78
CHANGING ATTITUDES BY ENCOURAGING A
CHANGE IN BEHAVIOUR
• Attitudes can change as a result of behaviour
• Encourage consumers to try your product. For example, with samples or tastings
RAGHUWANSHI

9-79
CHANGING ATTITUDES BY CHANGING WHAT IS
‘NORMAL’
• Changing what is viewed as normal in a situation
• For example, attitudes to red meat have changed as a result of campaigns
emphasising the benefits of eating red meat
RAGHUWANSHI

9-80
INFLUENCES ON ATTITUDE FORMATION AND
CHANGE
• Source credibility
• Attractiveness
• Expertise
• Trustworthiness
• Message characteristics
• Media characteristics
• Receiver characteristics
RAGHUWANSHI

Unit 2.ppt BVJHVJHVHVHJVJVKJKJGKJBKJHKJHJKH

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Unit 2.ppt BVJHVJHVHVHJVJVKJKJGKJBKJHKJHJKH