Comsumer-Behaviour2

8/8/2019 Comsumer-Behaviour2

1/21

AZAD College

CONSUMER BEHAVIORHand Out By: Mohd Rafeeq

UNIT-I

INTRODUCTION & IMPORTANCE OF STUDYING CONSUMER BEHAVIOR

There never was in the world two opinions alike, no more than two hairs or two grains,the most universal quality is diversity.

You never really understand a person until you consider things from his point of view.

- Harper Lee.

I. Introduction: -

The customer is the business and the purpose of a business is to create a

customer. Consumer is described by two different kinds of consuming entities.

1. Personal Consumer : - (End users (or) Ultimate consumers)

Personal Consumers buys goods (or) Services.1. For his own use eg: - Shampoo, Shaving Cream.

2. For the use of household eg: - Television, Refrigerator.

3. As a gift for his friend eg: - Pen, Watch, book.2. Organizational Consumer : -

It includes profit & Non-profit businesses, Government Agencies and

institutions buy products, equipments & services to run their organizations.

Eg: - Purchasing Raw Material.The marketing of goods & services is:

1) To Individuals: Consumer Behavior (Unit 1 to 5)

2) To Organization: Buyer Behaviour (Unit 6 and 7)

II. What is Consumer Behaviour: -

Def: - Consumer Behaviour is a body of knowledge emphasizes on the study of bothphysical activities and decision-making processes that occur in the process of search,

acquiring, use and disposal of products.

Def: - The decision process and physical activity or individuals engage in whenevaluating, acquiring, using, or disposing of goods and services.

The term CB refers to the behavior that consumers display in searching forpurchasing, using, evaluating and disposing of products services and ideas that they

expect will satisfy their needs.

The study of CB is the study or how individuals make decisions to spend their

available resources (time, money, effort) on consumption-related items. It includes

the study of what they buy, why they buy it, when they buy it, where they buy it, howoften they buy it and how often they use it.

E.g.: - Toothpaste.

- What types of toothpaste do consumers buy (Gel, regular, striped, in a tube)?

1


2/21

AZAD College

- What brand (national brand, private brand, generic)?

- Why do they buy it (to prevent cavities, to remove stains, to brighten or whitenteeth, as a mouthwash, to attract romance)?

- Where do they buy it (supermarket, drugstore, convenience store)?

- How often do they use it (when they wake up, after each meal, when they go tobed, or any combination thereof)?

- How often do they buy it (weekly, biweekly, monthly)?

III. Inter relationship of Consumer Behavior with other discipline: -

It is said to be multidisciplinary in nature.

1. Psychology: - It is the study of individuals behavior and mental processes.

2. Sociology: - It is the study of the collective behavior of people in groups.3. Social Psychology: - It is the study of how individuals influence and are

influenced by the groups.

4. Economics: - It is the study of peoples production, exchange and consumptionof goods and services.

5. Anthropology: - It is the study of people in relation to their culture.

IV. Approaches to CB: -

Consumer research is the methodology used to study Consumer Behavior.

There are two approaches to study consumer and this dual approach to consumerresearch enables marketers to make better strategic decisions.

1. Positivism: - Consumer research designed to Predict Consumer Behavior is

called positivism and the persons undergoing this study are known as

Positivists.2. Interpretivism: - (Post modernism) (experientialism).

The consumer research designed to understand consumption behavior is

called interpretivism and the persons undergoing this study are known as

interpretivists.

V. Consumer Behaviour roles: -

A purchase happens when someone perceives a need, has the ability to buy and

finds a product that meets or exceeds their expectations. The 4 roles involved in

every purchase decision are:

1.Initiator: - The one who first says I want or In need2.Influencer: - The one who discovers ways to satisfy the want or need

i.e., person intentionally or unintentionally influences the purchase decision or

uses the product or service.3.Buyers: - The one who engages in the purchase transaction.

4.User: - The one who directly involved in consumption or uses the product.

VI. Why to Study Consumer Behavior: -

1. Significance in daily lives : -The goods we purchase and the manner in which we use them significantly

influence ho we like our daily lives.

Much of our time is spent directly in the marketing place, shopping or

engaging other activities. A large amount of additional time is spent thinking about

2


3/21

AZAD College

products and services, talking to friends about them, and seeing or hearing

advertisements about them.

2.Application to Decision Making: -

Consumers are often studied, because certain decisions are significantly affected

by their behavior or expected actions. For this reason, CB is said to be an applieddiscipline and can exist at two different levels of analysis.

a) Micro Perspective: -The micro perspective seeks application of this knowledge to problems

faced by the individual firm or organization

The Micro perspective involves in understanding consumers for the

purpose of helping a firm or organization to accomplish its objectives.

Advertising managers, product designers, and many others in profit-orientedbusinesses are interested in understanding consumers in order to be more effective

at their tasks.

Managers of various non-profit organizations have benefited from thesame knowledge. For e.g.: - Red Cross has been effective in applying an

understanding of consumer behavior concepts to their activities.

b) Societal Perspective: -The societal perspective applies knowledge of Consumers to aggregate-

level problems faced by large groups or by society as a whole.

In this consumers collectively influence economic and social conditionswith in an entire society. Market system is based on individual choice, consumers

strong influence what will be produced, for whom it will be produced, and what

resources will be used to produce it.

Vast amounts of resources have been used to produce cars, highwaysystems, and petroleum products used in their operation. It has also strongly

influenced where many of us live (e.g.: - rural, suburbs) and how we run our daily

lives (e.g.: - what we eat, where we shop, and how we are entertained).

VII. Under standing Consumer Behavior: -

There are 3 classes of variables involved in understanding Consumer Behavior.1. Stimulus variables.

2. Response variables.

3. Intervening variables.

1. Stimulus variables: -

These are sensory inputs to consumers Eg: - Advertisements, Products.

2. Response variables: -

These are the resulting mental and/or physical reactions of individuals whoare influenced by stimulus variables.

E.g.: - Purchasing a product, forming attitudes about the product.(Captain cook --- Free flowing salt)

3. Intervening variables: -

These variables intervene between the stimulus and response variables.

E.g.: - Using Celebrities in advertising.Coke Hirthik, Aishwarya

Pepsi Kajol, Sharukh.

3


4/21


5/21

AZAD College

2. Market Targeting Selecting one or more market segments to enter.

3. Market Positioning Establishing and communicating the productsdistinctive benefits in the market.

1. Market Segmentation: -

Market consists of different buyers having different needs and wants,purchasing power, geographical locations, buying attitudes and buying practices.

Using any of these variables market can be segmented.Def: - Market segmentation is the process of dividing a large market into smaller

subsets of consumer or organizations that are similar in characteristics, behavior,

wants or needs.

Heterogeneous Market: -

A market in which people or organization has differing characteristics.

Homogeneous Market: -

A market in which people or organization has similar characteristics.

Market segmentation, is the way marketers respond to the fact that different

groups of customers have different wants and needs. A large homogeneous market

is divided into segments that share certain characteristics.Steps:

1. Identify segmentation variables and segment the market.

2. Develop profiles of resulting segments.Market consists of buyers, and buyers differ in one or more respects. They

may differ in their wants, purchasing power, geographical locations, buying attitudes,

and buying practices.

Different Segmentations of a Market (General approach to segment a market):

fig:1 fig:2 fig:3 fig:4 fig:5

Fig:1 :- No Market Segmentation.

2: - Complete Segmentation.

3: - Market Segmentation by income classes 1,2, and 3.4: - Market Segmentation by age classes A and B.

5: - Market Segmentation by income-age class.

Patterns of Market Segmentation:

-Consider any two product attributes by asking buyers.For e.g.: - say sweetness and creaminess in the case of ice cream

-This is to identify different preference segments. Three different patterns can

emerge.

5


6/21

AZAD College

Sweetness Sweetness Sweetness

(a) Homogeneous (b) Diffused (c) Clustered

Preferences Preferences Preferences

Market Segmentation procedure:1.Survey stage: - Researcher conducts Exploratory Interviews i.e.. Formal

interview on attribute ratings, brand ratings, brand awareness, product usage

patterns, demographics & media graphics, etc,.

2.Analysis stage: - Researcher applies following analysis:

a) Factor analysis: To remove highly correlated variables.b) Cluster analysis: To create maximally different segments.

3.Profiling stage: - Now each cluster is distinguished according to attitudes,

behavior, demographic and consumption habits.This Market Segmentation procedure must be reapplied periodically, because

market segments change.

LEVELS OF MARKETING SEGMENTATION:

No segmentation Complete Segmentation

Fig: - Levels of marketing segmentation

1. Mass marketing : - Mass-producing, mass distributing and mass promoting

about the same product in about the same way to all consumers.

E.g.: - Coca-Cola

2. Segment marketing : - adapting markets by recognizing buyer needs,perceptions and buying behaviors.

E.g.: - General motors designed cars for different income & agegroups

3. Niche marketing : - Marketers using a very narrow segment is niche (sub

segments) marketing. [A strategy in which goods and services are tailored to

meet the needs of small market segment).E.g.: - Sport vehicles, Minto after smoke, Vicco sugar free paste

4. Micro marketing : - The practice of tailoring products and marketing

programs to suit the tastes of specific individuals and locations includes localmarketing and individual marketing.

Bases for market segmentation: -

There are different variables to segment consumer markets and they fall into

two broad groups.a) Consumer characteristics (Geographic, Demographic, & psychographic).

b) Consumer responses (quality, price ---- differ in Geographic, demographic

and psychographic).

6

Mass

MarketingSegment

MarketingNiche

Marketing

Micro

Marketing


7/21

AZAD College

Eight major categories of consumer characteristics provide the most popular

bases for marketing. The major Segmentation variables are:

1. Geographic segmentation: -

Dividing market into several geographical units such as nations, regions,etc. The company pays attention to local variations in geographical needs &

preferences.The geographical variables are:

Country ------- India, China, Canada, etc.

Region ------- NEWS, Pacific, Atlantic, etc.

Size ----------- under 5,000; 10,000 to 20,000; ---- etc,.

Density ------- Urban, Suburban, RuralClimate ------- tropic, subtropics, temperate.

Description: -

Divided by location:People in same area have similar needs & wants, and that these needs &

wants differ from those of people living in other areas. E.g.: - Food Products.

Some can be accounted by climate. The Sunset regions of south and westprefer bathing suits and refrigerators, air coolers and in Snow Belt regions of the

North and East prefer more for room heaters.

Coffee is sold nationally but flavored regionally. Its coffee is flavoredstronger in the west than the east.

Maruthi Axile is made stronger in India, due bad condition of roads.

Geographic Segmentation can be easily reached through local media,

including newspapers, TV and Radio, and through regional editions of magazines.

2. Demographic segmentation:

This is the most popular bases for distinguishing customer groups, because

consumer wants, p It refers to vital and measurable statistics of a population.It helps to locate target marketing.

Demographic variables are easier to measure than other segmentationvariables. references, and usage rates.

It is the study of human population statistics.

It is often said Market = People x Purchasing power x willingness to buy.

The demographic variables are:Age ------------------ under1; 1-2; 2-5; --- >60.

Gender -------------- male, female.

Family size --------- 1-2; 2-3; so on.Family life cycle ---- young, single; -young, married, no children;

-young, married, youngest child under 6;- young, married, youngest child 6 or over;

-older, single; -older, married, no children; etc.

Income ------------- 3,000 - 5,000; 5,000 - 10,000; > 10,000.

Occupation -------- professional, technical, managers, studentsEducation --------- none, elementary education, primary education,

secondary education, under graduate, post graduate.

Description: -

7


8/21

AZAD College

Age: - Consumer wants and capacities change with age.

E.g.: - Toy manufacturers, for babies, stages from 3 months to 1 year. Thissegmentation strategy means that parents and gift buyers can more easily find the

appropriate toy by babys age.

Gender: - Applied in clothing, hairdressing, cosmetics and magazines. (Sex rolehave indistinct. E.g.: - Cigarette marketing by men and women alike.

Automobile Industry manufacturing are designing cars to appeal women,advertising explicitly as womens cars.

Marital Status: - Marketers are interacted in the number and kinds of households

that own and/or buy certain products. They are also interested in determining the

demographic and media profiles of household decision makers to develop

appropriate marketing strategies.

Income-Education-Occupation: - Determine purchasing power, but blue-collar

workers were among the first purchasers of color TV Sets.

Education, occupation, and income tend to be closely correlated in almosta cause-and-effect relationship. High-level occupations more that produce high

incomes-usually require advanced educational training.

Income is classified in to three types: -1) Personal Income: From wages, salaries, rent, interest, business, farming, etc.

2) Disposable Personal income: Amount available after deducting taxes, for

personal consumption expenditures and saving.3) Discretionary income: Income available for spending after deducting

expenditures for necessities such as food, clothing, shelter, transportation &

utilities.

The combination of geographic and demographic information is known asGeodemographics and is an important segmenting tool.

3. Psychographic segmentation: -

People within same demographic group can exhibit differentpsychographic profiles.

The psychographic variables are:Needs-motivations - Shelter, safety, security, affection, sense of self worth

Personality ---------------- aggressive, gregarious, ambitious.

Perception ------- Low risk, Moderate risk, High risk

Learning involvement---------- Low involvement, High involvement.Attitudes---------- Positive, Negative attitude.

Social class ---------------- Lower lowers, Upper lowers, Middle class,

Upper middles, Lower uppers, Upper uppers.E.g.: car, clothing, furnishing

Life style ------------------ Achievers, strivers, strugglers

Description: -

Psychological characteristics: - It refers to the inner or intrinsic qualities of the

individual consumer. Consumer Segmentation strategies are often based onspecific psychological variables.

Personality: - Endow their products with brand personalities that correspond to

consumer personalities like, is using personality of certain athletes.

8


9/21

AZAD College

E.g.: Adidas --------------- Personality of Tendulkar

Coca-Cola------------- Hirthik Roshan

Psycho graphic (Life style analysis): - Psycho graphic studies employ a battery

of statements designed to identify relevant aspects of a consumers personality,

buying motives, interests, attitudes, beliefs and values. It also focuses on theamount of time spent by an individual (or family) on various activities and

interests.The Pattern of living (lifestyle) is expressed in:

4. Socio

cultural

segmentation: -

The

psychographic

variables are:

Culture -------------------- American, Italian, Chinese, Mexican

SubcultureReligion ------------ Catholic, Hindu, Muslim etc.

Race/Ethnicity ----- African American

Social class --------------- Lower lowers, Upper lowers, Working class, Middleclass, Upper middles, Lower uppers, upper uppers

Family lifestyle ----------- Bachelors, Young married, Empty nesters.

Description: -

Culture: - Members of same culture tend to share the same values, beliefs and

customs. The cultural segmentation is particularly successful in international

marketing.

Subculture: - With in large culture, distinct sub groups often are united by certainexperiences, values or beliefs that make effective market segments based on race,

religion, ethnicityE.g.: - Advertisement in different Languages.

Social Class: -The concept of social class implies a hierarchy in which

individuals in the same class generally have the same degree of status, while

members of other classes have either higher or lower status/different socialclasses vary in terms of values, product preferences and buying habits.

Family Life cycle: - It passes through similar phrases in their formation, growth

and final dissolution. At each phase, the family unit needs different products andproduct styles.

5. Use-related segmentation: -The use-related segment variables are:Usage rate ------------- Heavy users, Medium users, Light users, Non users

Awareness status ----- Unaware, aware, interested, enthusiastic

Brand loyalty ------- -- None, same, strong

Description: -

Activities Interest Opinions

Shopping

Sports

Entertainment

Media

Fashion

JobAchievements

Politics

Business

Products

9


10/21

AZAD College

Usage Rate: - Segmentation to light, medium, heavy user groups of the product.

Heavy users are often a small % of the marketing but account for a high % oftotal consumption.

(Product %Users) Heavy half Light half

Soaps (94%) 75% 25%Cola (67%) 83% 17%

Beer (41%) 87% 13%Shampoo (94%) 79% 21%Fig: - Heavy and light users of common consumers products.

Awareness Stage: - The readiness to buy a product the some un ware, some

aware, same all informed, some are interested some desire, some intend to buy.E.g.: - Medical tests, products, etc

Brand Loyalty: - A market can be segmented by consumer loyalty patterns.

Consumers can be loyal to brands (Coca-cola).For e.g.: - Assume that there are five brands: A, B, C, D & E. Buyers can

be divided into four groups:

1.Hard-core Loyals: Consumers who buy same brand all the time.A, A, A, A, A, A, A.

2.Split Loyals: consumers who are loyal to 2 or 3 brands.

A, A, B, B, A, B.3.Shifting Loyals: Consumers shifting from one brand to another.

A, A, A, B, B, B.

4.Switchers: Consumers who show no loyalty to any brand.

A, C, E, B, D, B

6. Use situational segment:

The Use situational segment variables are: -

Time ----------- Leisure, work, rush, morning, nightObjective ----- Personal use, gift, snack, fun, achievement

Location ------ Home, work, friends home, in-storePerson -------- Self, friends, boss, peer

Description: -

Marketers recognize that the occasions or situations often determine what

consumers will purchase or consume.

7. Benefit Segmentation: -

Benefits --------------------- Quality, speed, economy, service, convenience,prestige, value-for-the money

Description: -

- Changing life styles plays an important role in determining the product benefits.

- Benefit segmentation can be used to position various brands with in the same

product category.E.g.: - Close-up, with a social appeal that stresses bright teeth, targeted to

young, good-lasting encourage children to brush longer, remove tartar

(Cosmetic benefit) and plaque (health benefit).

10


11/21

AZAD College

- Benefit Segmentation is used not only to find a niche for new products, but also

to reposition established products.

8. Hybrid segmentation:

The Hybrid segmentation variables are:Demographic/Psychographic profiles -------- Combination of demographic and

psychographic characteristicsGeodemographics -------------------------------- Young suburbanVALS (values and Life style) ----------- Actualizer, fulfilled, believer, achiever,

striver, experiencer, struggler.

Description: -

Combining several segmentation variables rather than relying on a single

segmentation base.

Benefits and cost of Market segmentation: -

Segmentation leads to greater sales, but at higher costs.

Examples of Market Segmentation:

1. Cigarettes

2. Refrigerators

3. Washing machine

Performing Market Segmentation: -

1. Define the problem or determine the use to be made of research.

2. Select a segment basis:a) General consumer characteristics -- Demographic, Geographic,

Socioeconomic and Life style.

b) Situation specific consumer characteristic Product usage, usage patternsand benefits sought in a product.

3. Choose a set of descriptors (i.e., gender, social class, etc.) that defines, characterizesor relates to the segmentation basis.

E.g.: - Persons respond to price differs according----- to age, income & location.

4. Select a sample of consumers that is representative of the larger population of

interest5. Collect data on segmentation descriptors from the sample of consumers.

- Primary data collection

6. Form segments based on chosen consumer description

11

Types of cigarettes ----- Filter, Plain

Price ------- High-priced, Medium-priced & Low-priced

Geographical ----- North India, South India, East India and

West India

Size ------ 65, 90, 165, 286, 300, 800LitresNature of consumers ----- Households, Industrial, Business

Density ---- Urban, Suburban

Economy --- Middle, Upper income groupBenefits ----- Automatic, Semi-automatic


12/21

AZAD College

Heavy-use, light-users

7. Establish profiles of segmentsLow income, High education, etc.

8. Translate the results into Marketing strategy

Product Positioning: -Positioning is essentially a battle for capturing place in the mind of the

consumers.

A product cant be every thing to every one. It has to do some thing to some one.

Hence, there is a need for positioning. So, positioning is the outcome of some unique

feature of the product, market and competition. This uniqueness is used as plank.1. Positioning on Health plank. E.g.: - Complain as Health drink.

2. Positioning on Luxury plank. E.g.: - Oberoi hotel chain.

3. Positioning on Economy plank. E.g.: - Bajaj, Nirma.4. Positioning on Fashion plank. E.g.: - Vimal.

5. Positioning on Efficiency plank. E.g.: - Hero Honda is positioned on fuel

efficiency.6. Positioning on Energy plank. E.g.: - Boost.

Market Positioning: -

It is the act of establishing and communicating the products key distinctive

benefits in the market. (Product positioning)

Market positioning consists of setting the competitive positioning for the

product and creating a detailed marketing plan.

E.g.: - Sony is positioned on Quality.

Tide is positioned as a powerful, all-purpose family detergent.

Toyota is positioned on economy.Mercedes is positioned on Economy.

Volvo is positioned on Safety.

A Products position is a set of perceptions, impressions and feelings that

consumers hold for the product compared with competing products.

Steps for Positioning strategy: -

1. Identify the tools for competitive differentiation.

2. Select the right competitive differentiation3. Communicate the companys positioning.

1. Identify the tools for competitive differentiation : -

12

Product Services Personnel Image

Features Delivery Competence Symbol

Quality Installation CourtesyMedia

Durability Customer training Credibility Atmosphere

Reliability Consulting service Reliability Events

Reparability Repair ResponsivenessStyle Miscellaneous Communication


13/21

AZAD College

2. Select the right competitive differentiation : -After identifying several potential competitive differences it is to build a

positioning strategy by choosing one competitive difference.a). Differences to Promote: -

1. Importance - High valued benefit

2. Distinctive - Added value

3. Superior - Superior to obtain the benefit

4. Communicable - Difference in communicable & visible to buyers.5. Preemptive - Cannot be easily copied by competitors.

6. Affordable - Buyers afford to pay for the difference.

7. Profitable - Company find profitable to introduce the difference.

b). Different ways to Promote: -

A company should develop a unique selling proposition (USP) to promote

benefit to the target market.E.g.: - Volvo promotes safety

Colgate promotes anticavity protection.

Captain cook promotes free flowing salt.The different ways to promote are: Best quality, Best price, Best

value Most advanced technology and Lowest price.

Positioning errors: -

1). Under positioning Buyers having only a vague idea of the brand. Buyersmake no sense anything special about it.

2). Over positioning Buyers having too narrow image of the brand.

E.g.: - TV -------- 10,000 ---- Consumer thinking

TV -------- 4,0000 ---- Company offers3). Confused positioning Buyers having confused image of the brand resulting

from changing too many brands positioning too frequently.4). Doubtful positioning Buyers find hard to believe the brand claims in view

of the products features, price or manufacturer.

Once positioning-problem is solved it will be easier for the company to

solve the marketing-mix problem. The 4Ps are essential tactical details ofpositioning strategy.

Positioning strategies: -

1. Product attribute positioning - Biggest soap, smallest car.2. Benefit positioning - Toothpaste, antidandruff.

3. Use/application positioning - Winter, shampoo (Mon, Wed, Fri, Sat)4. User positioning - kids tooth paste (Pepsodent), Baby shampoo5. Competitor positioning - ATMs, Computerized.

6. Product category positioning - Sprite, Limca, Lemoneez

7. Quality/Price positioning - Highest quality/Highest priceLowest quality/Lowest Price

3. Communicate the companys positioning : -

13


14/21

AZAD College

After developing a clear positioning strategy, it is must to communicate it

effectively to the target customers.E.g.: - Captain cook-free flowing salt

Quality is communicated through physical signs, price, packaging,

distribution, advertising and promotions, which should support the brands image.

Positioning Analysis: -The technique used for determining the appropriate positioning for a brand is

perceptual mapping.

Perceptual mapping is usually represented on two-dimensional scales, so that

the marketing manager can readily see where his own brand is positioned in the

mind of his prospect consumers and in relation to other brands.Perceptual mapping technique identifies the two dimensions that differentiate

consumer perceptions of products and the positions of existing products on these

dimensions.

VIII. Individual Determinants of Consumer Behavior:People behave differently in different situations

Personality and Self Concept: -These are two psychological notions that have been used by those

studying consumer behavior to account for the organized totality of the

consumers makeup.

Purpose: These variables are used to describe and differentiate among individuals

PERSONALITY:

Personality of a consumer guides and directs the behavior chosen to accomplish

goals in different situationDef: - The inner psychological characteristics that determines and reflects, how a

person responds to his/her environment.-The Nature of Personality:-

1. Personality reflects individual differences :-

Every individuals personality has unique combination of factors

i.e., no two individuals are exactly alike, but are similar in terms of asingle personality characteristic, which is useful to categorize consumers

into different groups on the basis of a single trait or a few traits. (Trait

distinguishing quality).If each person has different aspects it is difficult to develop

standardized products and promotional campaigns.

2. Personality is Consistent and Enduring :-

The two qualities consistent and enduring are essential for

marketer to explain or predict consumer behavior. Individuals personality will be consistent, but consumption behavior often varies,

because of psychological, socio-cultural and economic factors that effect

the behavior.

14


15/21

AZAD College

3. Personality can change:-Personality changes under certain circumstances even though it tends to be

consistent and enduring.

Personality can be altered by major life events i.e., as the birth of achild, the death of a loved one, a divorce, a major career promotion.

Personality is a part of a gradual maturing process.

-Determinants of Personality :-

1. Biological Factors a) Heredity-Genetic i.e., from parents to younger.

b) Brain - Human personality and behavior

c) Physical features External appearance of aperson i.e, tall, short etc.

2. Cultural Factors - It depends on how a person behave and what a

person learn.Ex: Caste, Believes, Value System, etc.

3. Situational Factors - How a person behaves in a particular environmentor situation.

4. Family & Social Processes - Socialization Process.

Identification Process.

It starts at the time of birth, from family members, relations.Eg:- Relation between parent and child.

-Theories of Personality :-1. Freudian Theory :-

This theory was developed by Sigmund Freuds, Psychoanalytictheory of personality. He has divided the human brain into 3 elements.

a) The Preconscious mind that can be recognized.

b) Conscious through feeling, believes & desire.

c) The Unconscious without the knowledge.Freud proposed that the human personality consists of three

interacting systems the Id, the superego & ego.

The following figure represents the inter relationships among thethree interacting systems.

Gratification

15

ID

System 1EGOSystem 3

SuperEgo

System 2


16/21

AZAD College

1. The Id :- It was conceptualized as a Warehouse of basic physiological

needs i.e., thirst, hunger and sex for which the individual seek, immediate

satisfaction.2. The Superego :- It is internal expression of societys moral and ethical

codes of conduct. The individual satisfies his needs in a sociallyacceptable fashion. Thus superego is a kind of brake which stops theimpulsive forces of the id.

3. The Ego :- It is the individuals conscious control, which functions as

internal monitor that attempts to balance the impulsive demands of the id

and the socio-cultural constraints of the superego.Stages of Personality Development :-

1. Oral Stage :- The infants first stage, experiences the social contact

with outside world through the mouth.Ex: eating, drinking, sucking.

A crisis develops at the end of this stage when the child is weaned

from the mothers breast.2. Anal Stage :- The Childs primary source of pleasure is the process

of elimination.

A second crisis develops at the end of this stage, when parents tryto toilet train the child.

3. Phallic Stage :- The child experiences self-oriented sexual pleasure during

this phase, with the discovery of sex organs.

A third crisis occurs when the child experiences sexual desire forthe parent of the opposite sex.

4. Latency Stage :- In this stage no important personality changes occur

during this time.

5. Genital Stage :- At adolescence, the individual develops a sexualinterest in persons of the opposite sex, beyond self-oriented love and love

for parents.

2. Sheldons Physiognomy Theory :-a) Endomorph - Never get angry, stout

b) Mesomorph - Strong, smile brighter.

c) Ectomorph - thin, long,absentminded, brilliant.3. Jungian Theory :-

Carl Jung personality types that measures the following pairs of Jungian inspired psychological dimensions.a) Feeling - Interpretation of a thing or event or a subject as a

whole.

Eg:- Emotional. b) Thinking - Logical reasoning/analytical/rational

c) Extrovert - Optimistic outgoing and sociable.

Eg:- Communications capacity at all levels.

16


17/21

AZAD College

d) Introvert - They are less sociable, with drawn and absorbed in inner

life.Ex: Negative attitude, Negative Opinions.

4. Trait Theory - The orientation of trait theory is primarily

quantitative/empirical, which focuses on the measurement of personality in termsof specific psychological characteristics, called traits.

A trait is defined as any thing distinguishing, relatively enduring way inwhich an individual differs from another.

The trait measures of personality are:

1. Consumer Innovativeness :-

This is to know the consumer willingness or acceptance towards

the new products, new services. This measurement is important to bothconsumers and marketers, because both are beneficiable from right

innovation.

2. Dogmatism :-Dogmatism is a personality trait that measures the degree of rigidity, where

individuals display towards the unfamiliar and toward information that is

contrary to their own established beliefs.

a) Consumers, who are low in dogmatism (open-minded) are

more likely to prefer innovative products.b) Consumers who are high in dog matism (closed-minded) are

more likely to choose established rather than innovative

product alternatives.

3. Social Character : -It focuses on the identification and classification of individuals into

Distinct socio-cultural types, which ranges from inner-directedness to

other directedness.

a) Inner-directed consumers rely on their own inner values orstandards in evaluating new products and are likely to be consumer

innovators.b) Other directed consumers tend to look to others for direction on

what is right/wrong, thus they are less likely to be consumer

innovators.

Inner and other directed consumers are attracted to differenttypes of promotional message, i.e., Inner-directed people prefer ads

that feature a social environment or social acceptance.

4. Optimum stimulation level (OSL) :-OSL reflects persons desired level of lifestyle stimulation. If life

styles are equal to OSL, then use say they are quite satisfied. If lifestyles

are underestimated, they we say they are likely to be bored if lifestyle areover-estimated, they are likely to seek rest or relief.

Measuring Personality :-

17


18/21

AZAD College

There are four general approaches for measuring personality,

which are multi-dimensional in nature, because personality is a singleconcept and it interacts with many elements.

1. Rating Methods 2. Situational Tests 3. Projective Techniques

4. Inventory Schemes.

Subjective scoring & dependendent upon evaluator.

I. 1. Rating Methods :-

It involves one or more evaluators., which determines the

predetermined personality characteristics on a standardized scale, by using

a informal interview evaluation. The type of scale employed forevaluation can be 5 point or 6 point.

2. Situational Tests :-

This techniques develops a situation, which closely resembles to real-lifesituation. A topic for discussion will be given to a group of people and the

behavior of the subjects are observed and measured.

3. Projective Techniques :-In this technique the individual is presented with an visual image

and is asked to explain it.

a) Rorschach Test :- It consists of ten inkblots, which varies in color,shape and shading.

b) Thematic Apperception Test (TAT):- It involves in presenting 20

pictures showing various situations, and asked to a develop a story

based on pictures, which is assessed by a trained evaluator.4. Inventory Schemes :-

This method is in written form. The popular inventory method is,

Minnesota Multiphase Personality Inventory (MMPI), consists of 550

statements.Eg:- I like to try new things True/false.

B) SELF CONCEPT:- [ Self Image]

18


19/21

AZAD College

Individuals describe his or her own view of himself or herself i.e., develop

their self-images through interaction with other people i.e., initially their parentsand then other individuals/groups.

-How self concept develops :-

Products and Brands will have symbolic value for individuals, whoevaluate them on the basis of their consistency with their personal pictures or

images of themselves.Behaviorists have formed various theories of how people develop their

self concepts, which is based on social interaction. There are 4 views of self

concept.

1. Self-appraisal - A person develops a self-concept by naming his

own dominant behavior patterns according to what is socially acceptableand unacceptable behavior.

2. Reflected Appraisal - It is also termed as looking glass well. In this

theory a person receives from others (i.e., Parents, friends) mold the self-concept, which depends on the characteristics of the appraiser and his/her

appraisal.

3. Social Comparison:- It states that peoples self-concepts depends on, howthey see themselves in relation to others.

5. Biased Scanning :- It views in terms of identifying aspirations and

biased scanning of the environment for information to confirmhow ell the person is meeting his/her aspirations, i.e., collect

information and remove unnecessary/not required information.

-Self Concept and Consumer Behavior :

Consumers self-concept have a strong influence on their behavior in themarket place. Consumers perceives various products/services and are reflected by

his/her own-image. Based on the possible influences consumer researchers and

marketers have developed the following concerns.

1. Alternative Views of the Self :-The self concept is generally divided into 2 groups.

a) Single Component perspectiveb) Multiple Component perspective

The single component focuses on single component or dimensions

i.e., the actual self. The multiple component focuses on 2 or more

components or dimensions.

Diagram

Components (Or) Dimensions:

1. Actual Self - How consumers in fact see themselves.

19


20/21

AZAD College

2. Ideal Self - How consumers would like to see themselves.

3. Social self - How consumers feel others see them.4. Ideal social self How consumers would like others to see them.

5. Expected self How consumers expect to see themselves at some

specified future time.2. Major Areas of Investigation :-

The self concept has 5 major types of reseach investigationsrelating to consumer behavior.1. To determine the types of self concepts, that are related to socio-

economic or psychological factors.

2. Study related to degree of congruity between their self-concepts

and their perception of product and brand images.3. The degree to which consumers behavior is consistent with their

perceptions of themselves.

4. Studies related to self-images of products5. Study on product images, whether they are consistent with the

consumers self-concept influence his/her self-image.

3. Consumer Behavior and Self Concept/Product Image Congruence :-Consumer develop and hold images of various products and these

images are viewed as symbols that communicate meaning about those who

purchase them.The summary of this behavior is as follows:

1. Consumers form self concepts through psychological

development and social interaction.

2. Products and Brands perceived by consumers have image orsymbolic meaning.

3. Because of their symbolic role, selective possession, displays

influence individual in defining and enhancing his self concept for

himself or for others.4. The behavior of individuals will be motivated toward furthering

and enhancing their self concept through the consumption ofgoods as symbols.

5. The brands preferred by consumer are perceived with having

images, which are most consistent with his self-concept.

-Diagram-

Fig: A model of the brand choice process as a function of self-image and brand image.

The above shows the consumers preferred brands are

identified through a matching between self-image and brandimage. According to congruity theory the greater the self/brand

image, the more a brand will be preferred.

20


21/21

AZAD College

21

Comsumer-Behaviour2

Documents

Transcript of Comsumer-Behaviour2