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Chapter-1
Consumer Behavior
Consumer
differs not only in the usual ways by age, gender, education etc but also in
their activities and interests, their preferences and opinions. The marketers
than make it their all-consuming business to understand, to predict and to
satisfy the needs and wants of the consumer.
Marketers
carry ‘Consumer Research ‘in order to recognize the high degree of diversity
among consumers.
The
human needs are divided into:
1.
Biological
needs (primary needs): -water, air, shelter etc.
2.
Acquired
needs (secondary needs): - These are the needs that arise due
to the increase in the level of income and education.
The
consumers can also be divided into:
1.
Personal
consumers: - They are the users that buy product and
services for their personal consumption.
2.
Organizational
consumers: - They are the users who buy products and
services for the organizational purpose.
Definition
of Consumer Behavior: -
The study of the decision process and physical,
activities that individuals engage in when evaluating, acquiring, using and disposing
of goods and services is called consumer behavior.
The consumer decision making process
involves give different stages from evaluating to disposing of goods and
services. The first stage arises when people realize the needs and wants for a
product or services. In order to satisfy the need it engages himself in
different search process. After the search in complete it comes to a derivation
of different product alternatives. After the evaluation of alternatives,
finally the purchase is made. After the use of the product, two different
possibilities are there;
A) Satisfaction
B) Dissatisfaction
A satisfied consumer will go for repeat
purchase of the product or service and the dissatisfied consumer will not buy
the product and go for selection of alternatives.
Relevance of
C.B.in marketing: -
Marketers
need to understand
i)
What
people buy?
ii)
When
people buy?
iii)
Where
people buy?
iv)
Why
people buy?
v)
How
often they buy?
Ultimate Consumers: -
Those individuals who purchase goods for
the purpose of individual or household consumption that means one member of the
family who purchase the product, goods and servicer either for their own use or
for the consumption of the whole family is considered as ultimate consumers.
The individual
buyer:-
The individual making a purchase with
title or no influence from others is considered as individual buyer. No advice
from friends, co- workers or peers is going to change their mind. The marketing
and advertising efforts also have minimal efforts on their influence.
Consumer
Behavior Roles: -
i)
Individual
ii)
Influencer
iii)
Buyer
iv)
User
Social Marketing:
-
The social and non- profit organization
have services or ideas that they attempt to market to a target group of
customers. These groups appeal to public for support in addition to attempting
to satisfy some want or need in society.
De-marketing:
-
It
refers to all such efforts to encourage consumers to reduce their consumption
of a particular product or service. The natural resources such as oil, natural
gas and even water are scarce. These scarcities have led to promotions striving
conservation rather than consumption.
Importance
of studying consumer behavior in marketing management:
1. Market opportunity analysis:
It
involves examining trends and condition in the market place to identify
consumer’s needs and wants that are not being fully satisfied. The analysis
covers general market trends such as consumer life styles and income levels.
2. Target-market selection:
The
process of reviewing market opportunities often results in identifying distinct
grouping of consumers who have unique wants and needs.
3. Marketing mix determination :
a. Product
b. Price
c. Place
d. Promotion
Model
of consumer Behavior:
The
model is divided into three distinct but interlocking stages:
a. Input
stage
b. Process
stage
c. Output
stage
The
input stage influences the consumer’s recognition of a product need and
consists of two major sources of information: the firm’s marketing efforts
The product, its price, its promotion
and where it is sold) the external sociological influences on the consumers
(family, friends, neighbors, culture, sub- culture). These factors together are
inputs that effect what consumers purchase, how they use and what they buy.
The process stage focuses on how
consumers make decisions. The psychological factors inherent in each individual
(motivation, perception, learning, personality, attitudes) effect how it
influences the consumers recognition of need, pre- purchase search for
information and evaluation of alternatives. The experience gained through
evaluation of alternatives in turn, affects the consumers existing
psychological attitudes.
The output stage of the consumer decision-making
model consists of two closely related post- decision activities:
·
Purchase
behavior
·
Post-
purchase evaluation.
Chapter -2 Market Segmentation
It can be defined as the process of
dividing a market into distinct subsets of consumer with common needs or
characteristics and selecting one or more segment to target with a distinct
marketing mix. The strategy of segmentation allows produce to avoid need or
competition in the marketplace by differentiating their offerings, not only on
the basis of rice, but also through styling, packaging, promoting effort,
method of distribution etc.
Market segmentation is the first step in
a three- phase marketing strategy. After segmentation the market into clusters,
the marketer then selects one or more segment to target. To accomplish this,
the marketer must decide on a specific marketing mix (4C’s) for each distinct
segment. The third step is positioning the product so that it is perceived by
the consumers in each target segment as satisfying his or her needs better than
other competitive offering.
Basis of
segmentation
1. Demographic Segmentation
a.
Age
c. Marital Status e.
Education
b.
Sex d.
Income f. Occupation
2. Geographic Segmentation
a.
Religion
c. Density of area
b.
City size d.
Climate
3. Psychological Segmentation
a.
Personality c. Learning
b.
Perception
d. Attitude
4. Psychographic Segmentation
a.
Lifestyle
segmentation
5. Socio- Cultural Segmentation
a.
Cultures
c. Subculture e. Family life cycle
b.
Religion
d. Social class
6. Use – related Segmentation
a.
Usage
rate b. Awareness
status c. Brand Loyalty
7. Sue – situation Segmentation
a.
Time b.
Objective c. Location
8. Benefit Segmentation
a.
Convenience
b. Social acceptance c. Long lasting
Demographic
Segmentation:-
Demographics help to locate a target
market. Demographic information is often the most accessible and cost-
effective way to identify a target market. Demographics are easier to measure
then other segmentation variables.
Psychographic
Segmentation
It measures activities (how the consumer
or family spends time (e.g. home, fashion), opinions (how the consumers feel
about a wide verity of events political issues, social issues, and the future
etc).
For effective
market segment
1. Identification: To divide the market into
separate segments on the basis of a series of common or shared needs or
characteristics that are relevant these characteristics.
2.
Sufficiency: Market segment
must consist of a sufficient number of people to target a product.
3.
Stability: Consumer
segment should be relatively stable in terms of demographic and psychological
factors.
4.
Accessibility: Marketer must
be able to reach the market segment that they want to target in a commercial
way.
Chapter -3 Culture
Characteristics
of culture
1.
Culture satisfies needs:
culture exists to satisfy the needs of people with in a society. It offers
order, direction, and guidance of satisfying physiological, personal and social
needs. Culture is also associated with what a society’s members consider a
necessity and what they view as a luxury.
Culture
also provides insights as to suitable dress for specific occasions.
2.
Culture is learned:
three different types of learning are;
a) Formal
learning: in which adults and elders member of the family teach young family
members on how to behave.
b) Informal
learning: in which a child learns
primarily by imitating the behavior of selected others such as friends, family,
TV actors.
c) Technical learning: in which teachers instruct the child in an
educational environment about what should be done, how it should be done and
why it should be done. The repetitions of advertising messages create and
reinforce cultural beliefs and values.
The
learning of one’s own culture is known as enculturation. The learning of a new
or foreign culture is known as acculturation
3.
Culture is shared:
To be considered a cultural characteristics a particular belief, value or
practiced must be shared by significant portion of the society. Language is a
cultural component that makes it possible to share values, experience and
customs. Family also serves as a basis or sharing culture. Educational
institutions and place of worship are also important institutions for cultural
sharing.
4.
Culture is dynamic:
Many factors are likely to bring cultural changes within a given society (new
technology, population shifts, resource, shortages etc. The changing nature of
culture means that marketers have to consistently reconsider why consumers are
now doing what they do, who are the purchasers and the users of their products
, when they do their shopping, how and where they can be reacted by the media,
what new product and service needs are emerging.
5.
Cultures are similar but different:
All cultures exhibit certain similarities e.g. government, language, and
religion, low ritual is found in all societies. There is however great
variation from society to society in each of their elements, which may result
in important consumer behavior differences around the world.
Subculture:
It
is defined as distinct culture group that exist as an identifiable segment
within a larger, more complex society. Subculture possesses values, beliefs and
custom that set them apart from other member of the same society.
Cultural
Values:
Cultural
values are important to the organized and integrated nature of culture. A
cultural value is a widely held belief or sentiment that some activities,
relationship, feelings or goals are important to the community, identity or
well being. Value serves as standards or criteria that tell how to act, what to
want what attitudes to held and allow us to judge and compare ourselves with
them. Values focus on specific circumstances. Values are culturally determined,
they are learned from social interaction, largely from families, friends etc.
Characteristics
of Cultural Values:
1.
Individualism: This value is
complex and closely interrelated with such things as freedom, democracy,
nationalism and patriotism. People have freedom. They are independent from
outside constraint. The research has shown that patriotic appeals in U.S
advertising are very effective.
2.
Equality:
Americans believe in the intrinsic equality of people. All are equal before
god. Everyone has an equal right to life, liberty and an equal opportunity to
strive for social and economic rewards.
3.
Activity: culture
stresses activity especially work as a predominant value. Related to the value
of activity is the associated factor of time pressure. Time is a precious
commodity to Americans. Americans value leisure time as highly as they value
money. The lack of leisure time can add to the life style stresses. It makes
the people to compares their shopping time. Because time is a precious
commodity to Americans marketing approaches that save time and effort are
valued.
4.
Progress and achievement:
Americans believe in the progress for society and in achievement and success
for the individual. They are oriented towards the future rather than the past.
Americans stresses continuous style changes and try to order what is new. Thus
the marketer benefits from an environment which is so conductive to innovation
and in which consumers are eager to have the most up to date items.
5.
Efficiency and practicality:
Americans greatly appreciate technical excellence and constantly search for
better ways of doing things. It emphasizes mass production and mass consumption.
Americans are interested in the performance features such as speed, economy,
safety and durability.
6.
Mastery over the Environment:
Americans do not like to be controlled by their environment rather they seek to
control it. Americans prefer products that yield convenience and control. They
also desire to master their own bodies and the surrounding environment. They
thus spend tremendous amounts of money and deodorants, shampoos and other
cosmetics.
7.
Religious
and Moral Orientation: Over 90 percent
of Americans believe in God and over 60 percent believe in life after death.
The United States is found to be more religious than any other industrialized
country in the world.
8.
Humanitarianism: Americans have a strong sense of
personal concern for the rights and welfare of others. They provide aid in mass
disasters; give their time and money to organizations such as Red Cross, United
Fund, and CARE etc.
9.
Youthfulness:
Americans
want to look and act young. They consume great quantities of that product that
hold promise for achieving these ends.
Subculture
It is a distinct
cultural group that exists as an identifiable segment within a larger more
complex society. The members of a specific subculture possess beliefs, values
and customs that set them apart from other members of the same society. The
cultural profile of a society has two distinct elements:
a)
The unique beliefs, values and customs
subscribed to by members of specific subcultures.
b)
The central or core cultural values that are
shared by most of the population.
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Cultural traits of US citizens
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Sub cultural traits of Asian
Americans
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Sub cultural traits of this panic
Americans
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Chapter
4- Social Class
4.1.
Defining Social Class and Social Status
Social
Class can be defined as the division of members of society into a hierarchy of
distinct status, classes so that members of each class have relatively the same
status and members of all other classes have either more or less status. Often
the social class is measured in terms of social status. The three factors used
on estimating social class are:
1.
Wealth – amount of economic assets
2.
Power – the degree of influence over
others
3.
Prestige – the degree of recognition
received from others
In terms of consumer
behavior, status is often defined in terms of:
1.
Family income
2.
Occupational attainment
3.
Educational attainment
Social class categories
are usually ranked in a hierarchy ranging from low to high status. The
variations in the number and types of social class categories are:
1.
Two category social class schemas:
a. Blue
collar, white collar
b. Lower,
upper
c. Lower,
Middle
2.
Three category social class schemas:
a. Blue
collar, grey collar, white collar
b. Lower,
middle, upper
3.
Four category social class schemas:
a. Lower
b. Lower-middle
c. Upper-middle
d. Upper
4.
Five category social class schemas:
a. Lower
b. Working
class
c. Lower-middle
d. Upper-middle
e. Upper
5.
Six category social class schemas:
a. Lower-lower
b. Upper-lower
c. Lower-upper
d. Upper-middle
e. Lower-upper
f. Upper-upper
6.
Seven category social class schemas:
a. Real
lower- lower
b. A
lower group of people but not the lowest
c. Working
class
d. Middle-class
e. Upper-middle
f. Lower-upper
g. Upper-upper
7.
Nine category social class schemas:
a. Lower-lower
b. Middle-lower
c. Upper-lower
d. Lower-middle
e. Middle-middle
f. Upper-middle
g. Lower-upper
h. Middle-upper
i.
Upper-upper
Social class of U.K.:
a.
Higher middle class
b.
Middle class
c.
Lower class
d.
Skill working class
e.
Working class
Social class of U.S.A.:
a.
Upper-upper class: Social elite
classified by wealth
b.
Lower-upper class: Members have earned
higher wealth and position
c.
Upper-middle class: Comprises of
successful professionals, business persons. Members have a way of life centered
around career and education.
d.
Lower-middle class: Often called Typical
Americans. The home is very important and are the white collar job holder.
e.
Upper-lower class: The target segment
classified by collar occupations and lack of change in life.
f.
Lower-lower class: They are forgotten
Americans and are slum dwellers.
4.2.
Nature of Social Class
1.
Social classes are multidimensional
Social
classes are multidimensional, being based on numerous components. They are not
determined solely by occupation or income or any one criterion. However, they
may be related or indicated by anyone of these measures. Income is often
misleading indicator of social class position, though Americans associate money
as the criterion of social class measurement. Occupation also provides fairly
good clues to ones social class. Housing is another … Social-class ingredient.
The U.S. postal Zip-code is the basis.
2.
Social classes are hierarchical
Social
classes have a vertical order to them, ranging from high status to low status.
Individuals may be placed within a class on this hierarchy, based on status
criteria.
3.
Social classes restrict behaviors
Interaction
between the classes is limited. Members of the same class tend to associate
with each other and not to any large extent with members from another social
class because they share similar education backgrounds, occupation, income
levels or life styles. The factor of limited interaction impedes interpersonal
communication between different classes about products, advertising, etc.
4.
Social classes are homogenous
Social
classes are viewed as homogenous divisions of society in which people within a
class have similar attitudes, activities, interests and other behavior
patterns. For the marketer, this means that groups of people are exposed to
similar media, purchase similar products and services and shop in similar
stores. The homogeneity allows the marketer to effectively segment the market
by social class and develop appealing marketing mix.
5.
Social classes are dynamic
People
have opportunity for upward or downward movement and it is called open system.
People in closed systems have inherited or ascribed status i.e. they are born
into one social level and are unable to leave it. Thus the difference between
systems based on earned or achieved status versus one based on inherited status
is significant to social mobility. U.S. has moderate opportunity for social
mobility.
4.3.
Measurement of social class
1.
The Subjective Method
In
this approach, the individuals are asked to rank themselves in the social class
hierarchy. However, because most people are reluctant to categorize themselves
as either lower or Upper class, the middle class ends up with unrealistically
large share.
2.
The Reputational Method
This
approach asks members of a community to rank each other in the status system.
Because citizens must know each other in order to rank each other, this
approach is limited to small communities and therefore, cannot be widely used
by marketers.
3.
The Objective Method
Individuals
are ranked on the basis of certain objective factors and are positioned
accordingly in the social status hierarchy. The computerized status index (CSI)
was prepared and has been successfully used since 1960s. In this recent
version, occupation is weighted double when computing the total score. For
unmarried respondents, education as well as occupation would be given double
weight.
4.4.
Problems in Social Class Measurement
1.
The ranking of social class is based
simply upon an average of the person’s position on several status dimensions.
This ignores the inconsistencies which arise from an individual ranking high on
one dimension (such as Income) but low on another (such as education).
2.
A person’s social class is assumed to be
stable, and thus the effects of mobility are ignored.
3.
An individual identifies only with the
social class in which he or she is categorized, thus ignoring reference-group
effects from other classes.
4.
The social class of an entire family may
be measured by examination of characteristics of only the adult male wage
earner, thus ignoring characteristics of other family members particularly the
employment and education of the adult female in the family.
4.5.
Social Class Mobility
Social
class membership in the U.S. is not so hard and fixed as it is in some other
countries and cultures.
1)
Upward Mobility: Americans have thought
of upward mobility because of the availability of free education and opportunities
for self development and self advancement.
2)
Downward Mobility: Social commentators
have suggested that some young adults are not likely to find it difficult to do
better than their parents but may not even do as well as their parents.
Note
:( Refer page 307; Schiffman)
Chapter- 5 Social group
A
group may be defined as two or more people who interact to accomplish either
individuals or mutual goals. A group consists of people who have a sense of
relatedness a result interaction with other. Not every collection of individual
is a group. There are three individual collections of people: aggregation,
categories and groups .An aggregation is a number of people who are in close
proximity to one another at a given time. A category is any number of people
who have some particular attributes in common.
Types
of group
1. Membership group-
A group to which a person either belongs or would qualify for membership in it
is called a membership group.
2. Symbolic group-
The groups in which an individual is not likely to receive membership, despite
acting like a member by adopting the groups values, attitudes and behavior.
3. Reference group-
It is any person or group that serves as a point of comparison (or reference)
for an individuals in forming either general or specific values, attitudes or a
specific guide for behavior.
a.
Normative
reference group- Reference groups that influence
general or broadly defined values or behavior are called normative reference
group, e.g. family.
b.
Comparative
reference group- Reference groups that serve as
benchmarks for specific or narrowly defined attitude or behavior are called
comparative reference group, e.g. neighboring family.
Group properties
1. Status-
It reference to the achieved or ascribed position of an individual in a group
or in society and it consists of the rights and duties associated with that
position. Status also may refer to some grouping on the basis of age or sex,
family, occupation etc.
2. Norms-
Norms are the rules and standards of conduct by which group members are
expected to abide. For informal groups, norms are generally unwritten but are
usually quite well understood e.g. a sales persons of a large business machines
company might be expected to live in a
certain area of a town, a certain type of a car and dress conservatively.
Behavior deviation outside these latitudes might result is slower advancement
in the organization.
3. Role-
The behavior patterns associated with a particulars status. Role is dynamic
aspect of status and includes the attitudes, values and behavior ascribed by
the society to persons occupying this status. Each consumer enacts many roles,
which may charge over time; even during the course of a day.eg. Women may have
the role of wife, mother, employee, family financial officer etc. Her behavior
in each of these roles will differ as she keeps “switching hats” depending on
her roles at each moment.
4. Socialization-
It refers to the process by which a new member learns the system of values,
norms and expected behavior patterns of the group being entered. when a new student arrive on a college
campus, she or he soon learns from fellow students what is expected in the way
of dress, eating pattern, class attendance etc.
5. Power-
groups have power to influence their members’ behavior e.g. rewards. Marketers
also seek the use of power to influence consumers.
a.
Reward
power- This is based on the perception one have of another’s
ability to reward him. Reward might include money or gifts or intangible things
such as recognition, praise.
b.
Coercive
power- This is the power of influence behavior through
the use of punishment or the withholding of rewards. Marketers are the able to use
coercive power effectively in certain situations inducing fear is one approach
that may be taken by advertisers for some items such as life-insurance,
mouthwash, weight-reducing products.
c.
Legitimate
power- This power stems from member perception that the
group has a legitimate right to influence them, e.g. the family is one small
group in which legitimate power can be seen. Each member has a set of roles to
carry out which is legitimized by the other members. Members are able to
utilize these types of power in many situations by appealing to consumers
values.
d.
Expert
power- It results from the expertise of the individual or
group. Consumers regularly accept influence from those they perceive to have
superior experiences, knowledge or skill. People accept the recommendation of
another person for a purchase, if the person is more knowledgeable.
e.
Referent
power- This influence flows from the feeling of
identification an individuals has with the group. As a consequence of this
feeling of oneness or desire for such an identity, the individuals will have a
desire to become a member or gain a closer association with the group. The
individual’s identification with the group can be established or maintained if
he or she behaves believes or perceives as the group does. The stronger this
identification with the group, the greater its
referent power. Advertiser use referent power in promotions by encourage
consumer to be like or do the same liking as the individual advertising the
brand.
Classification of
Groups
Groups
may be classified according to number of dimensions’ like:
1. Content or function-
The content of groups can be viewed in terms of their functions. It can be
categorized as family, ethnic, age, sex, political, religious, residential,
occupational, educational etc.
2. Degree of personal involvement-
on the basis of this criterion, two types of groups can be identified primary
and secondary. The primary group has the interpersonal relationship taking
place on a face to face basis; with great frequency and on as intimate level.
These groups have shared norms and interlocking roles e.g. families, work
groups.
Secondary group are those in which the
relationship among members is relatively impersonal and formalized. There is
lack of intimacy of personal involvement. It includes political parties, union
etc.
3. Degree of organization-
Under this criterion the group range from relatively unorganized to highly
structure forms. It can be divided into formal and informal. Formal groups have
a definite structure (e.g. they may have a president, vice president,
secretary, treasurer etc) they are likely to be secondary groups designed to
accomplish specific goals, whether economic, social political etc.
Informal
groups are characterized by a loose structure, lack of clearly defined goals or
objectives, unstructured interaction and unwritten rules. Informal group are of
greater importance to understand consumer behavior.
Reference groups:-
Reference groups are those as
individual uses (i.e. refers to) in determining his judgments, beliefs and
behavior. The meaning of reference groups have changed over years. In the
beginning reference group were normally defined to include only those groups
with which a person interacted as a direct basis (like family, close friends).
Now the concept has broadened to include direct and indirect group. Indirect
reference group consist of individuals or groups with whom a person does not
have face to face contact such as movie stars, sports heroes, political
leaders, TV personalities etc referents a person might use in evaluating his or
her own general or specific attitudes or behavior vary from one individual to
several family members to a broader kinship or form a voluntary association to
a social class, profession or ethnic group, a community or age category or even
a nation or culture.
Types of consumer -Related
reference groups:-
1.
Friendship
groups- They are informal groups that are usually
unstructured. After an individual’s family, his or her friends are most likely
to influence the individuals purchase decisions seeking and maintaining
friendship is a basic drive of most people. Friendship fulfills a wide range of
needs like it provides companionship security and opportunities to discuss
problems that an individual may be reluctant to discuss with family members.
The opinions and preference of friends are an important influence in
determining the products or brands a consumer ultimately selects.
2.
Shopping
group- Two or more people who shop together whether for
food or clothing or simply to pass the time is called shopping group. Such
groups are often offshoots of family or friendship groups and they function as
purchase pals. The motivation for shopping with a purchase pal range from a
primarily social motive (to share time together and enjoy lunch after shopping)
to helping reduce the risk when making an important decision (have someone
along whose expertise will reduce the chance of making an incorrect purchases
3. Work group-
The share amount of time that people spend at their jobs, frequently more than
35 hours per week, provides ample opportunity for work groups to serve as a
major influence.
There are two types of work
groups:-
a. Formal work group-
It consists of individuals who work together as a part of team and thus have a
sustained opportunity to influence each other consumption-related attitude and
actions.
b. Informal – friendship
work group- It consist of people who have become a friends as a result of
working for the same firm, whether or not they work together as a team.
4.
Virtual group- This group is based
on internet and computer. The adult and children are turning on computer,
logging onto the web and visiting special websites. On the internet people are
free to express their thought to the emotional and intimate with those they do
not know and have never met. Internet users can say things to other that they
would not say in face to face interactions.
5.
Consumer- Action group- These group
are dedicated to providing consumer with assistance in their effort to make the
right purchase decisions consume productions and services in a healthy and
responsible manner and to add to the overall quality of their lives. The objective
of these consumer- action groups is to bring sufficient pressure to bear in
selected members of the business community to make them correct consumer
classes e.g. youth development, neighbor crime watch etc.
Factors that affect reference group
influence:-
1. Information and experience-
An individual who has firsthand experience with a product or service or can
easily obtain full information about it is less likely to be influenced by the
advice or example of other. On the other hand a person who has little or no
experience with a product or service and does not expect to have access to
objective information is more likely to seek out the advice and example of
others.
2. Credibility: Attractiveness and
power of the reference group- A reference group
that is perceived as credible attractive or powerful or induce consumer
attitude and behavior change .When consumers are consumed with obtaining
accurate information about the performance or quality of a product or service,
they are likely to be persuaded by those whom they consider trust worthy and
knowledgeable consumers are most likely to be persuaded by sources with high
credibility. When consumers are primarily concerned with the acceptance or
approval of others they like, with whom they identity, or who offer them states
or other benefits, they are likely to adopt their product, brand or other
behavioral characteristics. When consumer are primarily concerned with the
power that a person or group can exert over them they might chose product or
services that confirm to the norms of that person or group in order to avoid
punishment.
3. Conspicuousness of the product:
The political influence of a reference group on a purchase decision varies
according to how visually or verbally conspicuous the product is to others. A
visually conspicuous product is one that will stand out and be noticed. A
verbally conspicuous product may be highly interesting and may be easily
described to others. Product like new automobile, home furniture are highly
conspicuous and states revealing and are most likely to be purchased with an
eye to the reactions of relevant others. The products like laundry soap, conned
fruits are less likely to be purchased with a reference group.
Reference group and consumer conformity:
A
reference group must accomplish the following:
1. Inform, or make the individual aware of a
specific product or brand.
2.
Provide the individual with the opportunity to compare his or her own thinking
with the attitudes and behavior of the group.
3.
Influence the individuals to adopt attitudes and behavior that are consistent
with the norms of the group.
4.
Legitimize the decision to use the some products as the group.
Unit
6-Family
Defining
Family and Household
Family
is defined as two or more persons related by blood, marriage or adoption who
reside together. In a more dynamic sense, the individuals who constitute a
family might be described as members of the most basic social group who live
together and interact to satisfy their personal and mutual needs. The family is
the central or dominant institutions in providing for the welfare of its
members.
Although families
sometimes referred to as households, not all households are families. A
household might include individuals who are not related by blood, marriage or
adoption such as unmarried couples, family friend, roommates, etc. however in
the context of consumer behavior, households and families are usually treated
as synonymous.
There are basically
three types of families-the married couple, the nuclear family and the extended
family.
Married
couple: This is the simplest type of family; consisting of a
husband and a wife. As a household unit, the married couple is generally
representative of either new married couples who have not yet started a family
or older couples who have already raised their children.
Nuclear
Family: A husband and wife and one or more children
constitute a nuclear family.
Extended
Family: The nuclear family, together with at least one
grandparent living within the household.
Functions
of the Family
1)
Economic well-being
No longer are the traditional roles of husband as
economic provider and wife as homemaker and child rearer. It is now very common for married women with
children in US to be employed outside and share household responsibilities with
their household.
2) Emotional Support
The provision of emotional nourishment (love, affection
and intimacy) to its members is an important function of all the family. The
family provides support and encouragement and assists its members in coping
with decision making and with personal or social problems. E.g.:
3) Suitable Family life styles
The other function of the family in terms of consumer
behavior is the establishment of a suitable life style for the family,
upbringing, experience and the personal and jointly held goal of the spouses
determine the importance placed on education, career, reading, television
viewing, etc. There has been a shift in the nature of family togetherness.
Family
decision making and Roles
1) Influencer
Family
member(s) who provides information to other members about a product or service
is the Influencer.
2) Gatekeeper
Family
member(s) who controls the flow of information about a product or service in
the family is the Gatekeeper.
3) Decider
Family
member(s) with the power to determine unilaterally or jointly whether to shop
for, purchase, use, consume or dispose off a specific product or service is the
Decider.
4) Buyers
Family
member(s) who make the actual purchase of a particular product or service is
the buyer.
5) Preparers
Family
member(s) who transform the product into a form suitable for consumption by
other family members is the Preparer.
6) Users
Family
member(s) who use or consume a particular product or service is the User.
7) Maintainers
Family
member(s) who service or repair the product so that it will provide continued
satisfaction is the Maintainers.
8) Disposers
Family
member(s) who initiate or carry out the disposed or discontinuation of a
particular product or service is the Disposers.
Dynamics
of Husband-Wife Decision Making
The
husband-wife influence studies classify family consumption decisions as
husband-dominated, wife-dominated, joint and autonomic.
Family
Life Cycle:
The traditional family life cycle is a progression of
stages through which many families pass, starting with bachelorhood, moving on
to marriage, then to family growth to family contraction and ending with the
dissolution.
Stage I:
Bachelorhood-Young single adult
Stage II:
Honeymooners-Young married Couple
Stage III: Parenthood-
Married coupe with at least one child living a home
Stage IV: Post
parenthood- An older married couple with no children living at home
Stage V:
Dissolution-One surviving spouse.
Stage
I: Bachelorhood
The first Family Life Cycle stage consists of young
single man and woman who have established household apart from their parents.
Although most members of the Family Life cycle stage are fully employed, many
are college or graduate students who have left their parents homes. Young
single adults opt to spend their incomes in rent, basic home furnishings, the
purchase and maintenance of automobiles. The members of this stage frequently
have sufficient disposable income to indulge themselves. Marriage marks the
transition from the bachelorhood stage to the honeymooner stage.
Stage
II: Honeymooners
The honeymooner stage
starts immediately after the marriage vows are taken and generally continues
until the arrival of the couple’s first child. Because many young households
and wives both work, these couples have
available a combined income that often permits a lifestyle that provides them
with the opportunities of more indulgent purchasing of possessions or allows
them to save or invest their extra income. They have start up expenses like
major and minor appliances, bedroom, carpeting, utensils, etc. the advice and
opinions of other married couples is important.
Stage
III: Parenthood
When a couple has its
first child the honeymooners is considered over. This period usually extends
more than a 20-year period. Throughout the parenthood phases, the interrelationships
of family members and the structure of the family gradually change. They are an
important market for many investment and insurance services.
Stage
IV: Post parenthood
This is an empty-nest
stage. The children have left their home. They can now do whatever they could
not do while the children were at home. For parent now it is the time to
travel, to entertain, refurnish their home or sell it in for or of new home.
Empty nesters have more leisure time. They have higher disposable incomes. The
families in post parenthood stage are as important market for luxury goods, new
automobiles, expensive furniture and vacations. Hotels, airlines and
car-leasing companies have responded to this market. This segment tends to use
television as an important source of information.
Stage
V: Dissolution
This stage occurs with
the death of one spouse when the surviving spouse is in good health is working
or has adequate savings, has supportive family or friends, the adjustment is
easier.
Power
Structure
1)
Parallel
In this arrangement,
two or more members of the family unit work on the same decision simultaneously
and independently. Assignment is not an issue in this arrangement. No
communication occurs among family members.
Fig:
1. Parallel
2) Hierarchical
In
this arrangement, two or more members of the family unit are ranked in terms of
their decision making capabilities. The decision is assigned first to the
member of lowest rank. If that member is unable to make the assigned decision,
the partially made decision is passes on to the member ranked next highest. The
passing of the progressively more processed decision continues until the
decision is either made or the number of members in the family is exhausted.
Thus, the processing of the decision as well as the allocation of the decision
to members is sequential in this arrangement. Communication occurs only between
adjacent members in the hierarchy.
Fig:
2. Hierarchical
3) Ring
In
this arrangement, no ranking of family members occurs; the members that
comprise the ring are judged to have similar decision-making capabilities.
However, each member may be thought of as a ‘specialist”. Accordingly,
decisions or different aspects of the same decision are assigned to the most
appropriate member in the ring (i.e., on the basis of fit between decision to
be made and member specialization). In this arrangement, the decisions or
component decisions are made simultaneously and/or sequentially by different
members. Communication can occur among any members of the ring.
Fig:
3. Ring
4) Star
In
this arrangement, one member is assigned the task of co-coordinating the
efforts of all other members in the family unit. Decisions or components of
decisions are assigned to the coordinator and/or to one or more of the other
members on the basis of their decision-making capabilities. There can be direct
as well as indirect communication among members.
Fig:
4. Star
Chapter-
8 Personality
Personality
can be defined as those inner psychological characteristics that both determine
and reflect how a person responds to his/her environment. The inner
characteristics are those specific qualities, attributes, traits, factors and
mannerisms that distinguish one individual from other individuals. The
personalities are likely to influence the individual’s product choices. They
affect the way consumers respond to marketers promotional effects and when,
where and how they consume particular product or services. Therefore, it becomes
important for the marketers to identify the specific personality
characteristics associated with consumer behavior for firm’s market
segmentation strategies.
The
study of personality has been approached by theorists in a variety of ways.
Some have emphasized the dual influence of heredity and early childhood
experiences on personality development, others have starred brooder society and
environment influences.
Nature
of Personality
1)
Personality reflects individual
different: - No two individuals are exactly alike because the
inner characteristics that constitute an individual’s personality are a unique
combination of factors. Many individuals may be
similar in terms of a single personality characteristics but not in
terms of others e.g. some people can be described as ‘high’ in ventures owners
while others can be described as low in ventures
owners. Personality is a useful concept
because it enables to categorize consumers into different groups on the basis
of one or several traits
2)
Personality is consistent and
enduring:- An individual’s personality tends to be both
consistent and enduring when marketers
know which personality characteristics influence specific consumer
responses, they attempt to appeal to the relevant traits inherent in their target group of consumers.
The consumers personalities may be consistent but their consumption behavior
after varies considerably factors.
3)
Personality can change:-
Under certain circumstances personalities can change. An individual’s
personality may be altered by major life events such as birth of a child, the
death of a loved one, a divorce or a career promotion.
Measuring
Personality
1)
Rating Methods:-
It involves one or more evaluation assessing predetermined personality
characteristics of a subject on a number of standardized rating scales. In some
cases, that basis of the evaluation is a somewhat informal interview with the
subject. In other cases, the observation of the subject’s behavior is used in
place of an interview. This observation may be accomplished in a setting
designed for the purpose, or it may take place in a portion of the subject’s
everyday environment such as home or shopping setting.
2)
Situational tests:
- A situation is devised that closely resembles a typical real life situation
usually several people are allowed to interact with each other in a group
setting. A topic or scenario is provided to them as a focus of discussions and
the behaviors of the subjects are observed and measured. This may take the from
of tabulating the frequency of occurrence for specific activities (aggression)
or rating the intensity of certain behaviors on standard scale. A special form
of situation technique is the stress test which places an individual in a
pressure type situation. His methods of acting n the situation are assessed to
reveal aspects of his personality.
3)
Projective technique:-
The individual is basically presented with an ambiguous visual image and is
asked to explain it or relate any meaning it has to him. The assumption is that
because the stimulus itself is ambiguous the individual is actually projecting
his own interpretations onto it end in the process he reveals his own
personality e. g. Thematic Apperception Test (TAT) involves presentation of
twenty pictures showing different vague situations. The subject is asked to
develop a story that is based on each picture. The stories are assessed by a
trained evaluator for basic interpretations the individual appear to relate
about the pictures and therefore about himself.
4)
Inventory schemes:-
The limitations of rating methods situational tests, projective techniques is
subjective scoring. These methods require a considerable amount of time and
effort to set up, administer ad evaluate. The personality inventory is designed
to minimize those potential problems by expressing subjects to a large number
of standardized questions with pre-specified
answer options from which they can select usually the inventory is in
written form and a subject responds to the instrument much in the same way
Minnesota Multiphase Personality Inventory consists of 550 statements such as
“I like to try new things”. If the subject feels a statement describes her, she
will mark the “true” answer options “false” and “cannot say” options are also
available.
Self
Concept
Self concept has become
a popular approach in recent years to investigate possible relationships
between how individuals perceive themselves and what behavior they exhibit as
consumers. An advantage of studying consumer behavior or using the theory of
self-concept is that consumers provide descriptions mode by outside observers.
Each consumer describes his or her view of himself or herself; which is in
contrast to personality tests that fit consumer responses into predetermined
categories or traits.
Self- concept can be
viewed as a person’s perception of himself which include his physical being,
other characteristics such as honesty, strength and good humor in relation to
others and even extending to include certain possessions and his creations.
Development
of the self-concept
1)
Self-Appraisal
A
person fashions a self-concept by labeling his own dominant behavior patterns
according to what is socially acceptable and unacceptable behavior. E.g.
certain behaviors are classified as social and others are labeled as
anti-social. By observing his own behavior a person might develop on awareness
that his behavior falls into the general category “anti-social” with repeated
confirmation of this label, a portion of the person’s self-concept emerges.
2)
Reflected Appraisal
This
theory holds that appraisals a person receives from others mold the
self-concept. The extent of this influence depends upon characteristics of the
appraiser and his or her appraisal. Greater impact on the development of a
person’s self-concept occurs when:
a) The
appraiser is perceived as a highly credible source.
b) The
appraiser takes a very personal interest in the person being appraised.
3)
Social Comparison
It
states that how people see themselves in comparison to others. This view of how
people perceive themselves is dependent upon their perception of their relative
status as compared to social class, reference groups etc. By determining which
groups a person compares himself or herself to in the consumption of products
and services marketers can develop messages that communicate the group
referent’s use of particular products.
4)
Biased Scanning
This
theory views self-concept development in terms of identity aspirations and
biased scanning of the environment for information to confirm how well the
person is meeting his or her aspirations e. g. A person who aspires to be a
good buyer well seeks out information that helps to confirm these aspirations
and filter out information that contradicts it.
Unit 9- Motivation
Motive
is an inner state that mobilizes bodily energy and directs it in selective
fashion towards goals usually located in the external environment. Motives
involve two major components:
a)
A mechanism to arouse bodily energy
b)
A force that provides direction to that
bodily energy
The
arousal component activates general tension or restlessness but does not
provide direction for release of this energy, the directive aspect of motives
focuses such aroused energy toward some goal in the individual’s environment.
When our hunger is aroused, we are usually directed toward particular foods.
The
motives exert their directional influence on consumers. Earlier views hold that
inborn instincts beyond the individuals control provided the direction for
behavior. Later it was stressed that basic needs (hunger, thirst, etc,)
impelled (provoked) people towards actions.
Rational versus emotional motives
The
rationality implies that consumers select goals based on totally objective
criteria such as size, weight, price, etc. emotional motives imply the selection
of goals according to personal or subjective criteria such as pride, fear,
affection, status, etc.
Roles of motives
1)
Defining
basic strivings
Motives
influence consumers to develop and identify their basic strivings. The basic
strivings are the general goods like safety, affiliation, achievement, etc.
They guide behavior in a general way.
2)
Identifying
goal objects
People
often view products or services as a means by which they can satisfy their
motives. In fact, consumers often go one step further and think of products as
their actual foals, without realizing that they actually represent ways of
satisfying motives. This motivational push that influences consumers to
identify products as goal objects is of great interest to marketers. Much
effort is spent on developing promotions that persuade consumers to consider
products as objects useful for achieving such motive.
3)
Influencing
choice criteria
Motives
also guide consumers in developing criteria for evaluating products. E.g. A car
buyer strongly influenced by the convenience motive, features such as
electronic, speed, control and automatic driver-seat adjustments would become
more important choice criteria than would style or mileage.
The
marketers are also capable of influencing consumers’ choice criteria. In some cases, this occurs because consumers
are not consciously aware of their own motives. E.g. salesperson for air
conditioners may remark that one model is more efficient than others, making
the consumers realize that operation economy is important to his choice.
Simplified schemes to classify
motives
1)
Physiological
versus psychogenic
Physiological
motives are oriented towards directly satisfying biological needs of the
individual such as hunger, thirst, pain avoidance, etc. Psychogenic motives
focus on the satisfaction of the Psychological desires. It includes the seeking
of achievements affiliation ore status. Consumers often can satisfy
psychological needs at the same time they are satisfying psychogenic motives.
E.g. sharing favorite drink with friends after a touch football game satisfies
affiliation needs as well as ones thirst.
2)
Conscious
versus unconscious
Motives
also differ in the degree to which they reach consumers awareness. Conscious
motives are those of which consumers are quite aware, whereas a motive is said
to be unconscious when the consumer is not aware of being influenced by it.
People
are not conscious of some motives because they do not want to confront the true
reason for their purchase. E.g. Purchases of extensive clothes are frequently
justifies in terms of the clothes ‘fit’ or durability rather than the status it
displays.
3)
Positive
versus negative
Motives
can exert either positive or negative influence on consumers. Positive
influences attract consumers toward desired goods while negative ones direct
them away from undesirable consequences. Example of a negative force is fear
which can play an important role in purchase of toothpaste to prevent decay.
Motive arousal
Most
of an individual’s specific needs are dormant much of the time. The arousal of
any particular set of needs at a specific moment in time may be caused by
internal stimuli found in the individual’s physiological condition, by
emotional or cognitive processes or by stimuli in the outside environment.
1)
Physiological
arousal
Bodily
needs at any one specific moment in time are based on the individual’s
physiological condition at that moment. The stomach contractions will trigger
awareness of hunger need. Secretion of sex hormones will awaken the sex need. These
psychological cues are involuntary; they arouse related needs that cause
uncomfortable tensions until they are satisfied. E.g. a shivering man may turn
up the heat in his home to relieve his discomfort. Research suggests that
television programs often generate physiological arousal to viewers (e.g.
hunger) that affects the impact of ensuing commercials.
2)
Emotional arousal
Sometimes
day dreaming results in the arousal or stimulation of latest needs. People who
are bored or frustrated in trying to achieve their goals often engage in day
dreaming, in which they imagine themselves in all sorts of desirable
situations. These thoughts tend to arouse dormant need, which may produce
uncomfortable tensions that drive them into goal-oriented behavior, e.g. a
young man who daydreams of being a captain of industry may enroll in graduate
business school.
3)
Cognitive arousal
Sometimes
random thought can lead to a cognitive awareness of needs. An advertisement
that provides reminders of home might trigger instant yearning to speak with
one’s parents. This is the basis for many long distance telephone company
campaigns that stress the low cost of international long distance rates.
4)
Environmental
arousal
The
set of needs on individual experiences at a particular time are often activated
by specific uses in the environment without these cues, the needs might remain
dormant. E.g. The 6 o’clock news, the sight or smell of bakery goods, the end
of the school day – all these arouse the need for food.
When
people live in a complex and highly varied environment they experience many
opportunities for need aroused. When the environment is poor or deprived, fewer
needs are activated. The television has had such a mixed effect on lives of
people in under-developed countries. It express them to various lifestyles and
expensive products that they would not otherwise see and it awakens the wants
and desires that they have little opportunity or even hope of satisfying.
Effects of Arousal
The
degree to which attention mechanism are sensitized to receive information from
the environment. Higher amounts of
arousal result in greater attention to stimuli that may have been previously
ignored. This increases the chances that the consumer will become aware of
information useful in dealing with the motivational situation. The other effect
of arousal can expand the consumer’s available information by energizing on
active search process.
Arousal
also influences the cognitive activity (thinking and evaluating) devoted to
decision making about alternative goods and services.
Unit
10-Learning
Defining
Learning; Types of Learned behavior; Principal elements of learning; Behavioral
Theories; Classical and instrumental conditioning; Cognitive learning theory
Defining
Learning
From a marketing perspective,
consumer learning is a process by which individuals acquire the purchase and
consumption knowledge and experience that they apply to future-related
behavior. Consumer learning is a process, that is, it continually evolves and
changes as a result of newly acquired knowledge or from actual experience. The
newly acquired knowledge and experience serves as feedback to the individual
and provide the basis for future behavior in similar situation.
Learning can be
incidental or intention, learning is said to be intentional when it is acquired
as the result of a careful search for information, and learning is incidental
when it is acquired by accident or without much effort.
Types
of learned behavior
1) Physical
behavior
All healthy human learn to walk,
talk and interact with others. The consumers also learn methods of responding
to various purchase situations. Consumers may also learn certain physical
activity through the process of modeling in which they mimic the behavior of
other individuals such as celebrities.
2) Symbolic
learning and problem solving
People learn symbolic meanings
that enable highly efficient communication through the development of
languages. Symbols allow marketers to communicate with consumers through such
vehicles as brand names.
One an also get engaged in
problem-solving learning by employing the processes of thinking and insight.
Thinking involves the mental manipulation of symbols, representing the real
world to form various combinations of meaning. This leads to insight which us a
new understanding of relationships involved in the problem. The consumer’s
efforts can be viewed as problem solving behavior. The thinking and problem
solving enable consumers to evaluate mentally a wide variety of products
without having to purchase them.
3) Affective
learning
Humans learn to value certain
elements of their environment and dislike others. Consumers learn many of their
wants, goals and motives as well as what products satisfy these needs. Learning
also influences consumer’s development of favorable or unfavorable attitudes
towards a company and its products. These attitudes will affect the tendency to
purchase various brands.
Principal
elements of learning
1) Motivation
The concept of motivation is
important to learning theory. Motivation is based on needs and goals. It acts
as input to leaning. E.g. man and woman who want to become good tennis players
are motivated to learn all they can about tennis and to practice whenever they
can. They may seek information concerning the prices, quality and characteristics
of tennis racquets if they “learn” that a good racquet is instrumental to
playing a good game. Conversely, individuals who are not interested in tennis
are likely to ignore all information related to the game, the degree of
relevance or involvement determines the consumer’s level of motivation to
search for knowledge or information about a product or service.
2) Cues
Cues are the stimuli that give
direction to these motives. An advertisement for a tennis camp may serve as cue
for tennis players who may recognize that attending tennis camp is a
concentrated way to improve their game. The ad is the cue that suggests a
specific way to satisfy a salient motive. In the market place, price, styling,
packaging, advertising, store displays serve as cues to help consumers fulfill
their needs.
3) Response
The way individuals react to a
drive or cue constitutes their response. The automobiles manufacturer who
provides consistent cues to a consumer may not always success on stimulating
purchase. If the manufacturer succeeds in forming a favorable image of a
particular automobile model in the consumers’ mind, when the consumer is ready
to buy, it is likely that he or she will consider that model.
4) Reinforcement
Reinforcement increases the
likelihood that a specific response will occur in the future as the result of
particular cues or stimuli. If a college student finds that an advertised brand
of pain remedy has enabled him to run in a marathon despite a knee injury, he
is more likely to buy the advertised brand should he suffer another injury. On
the other hand, if the pain remedy had not alleviated his pain when he first
used it, the student would have no reason to associate the brand with pain
relief in the future. Because of the absence of reinforcement, it is unlikely
that he would buy that brand again, despite extensive advertising or store
displays cues for the products.
Behavioral
learning theories
1) Classical condition
Essentially,
classical conditioning (sometimes called respondent conditioning) pairs one
stimulus with another that already elicits a given response. Over repeated
trials, the new stimulus will also begin to elicit the same or every similar
response.
The experiment conducted by
Pavlov, appreciates the process. Pavlov reasoned that because already caused
his dog to salivate, it might be possible to link a previously neutral stimulus
to the food so that it too could be able to make the dog salivate. This
demonstrates that dog had learned to associate the neutral stimulus with the
food. Pavlov used a bell as the neutral stimulus.
Conditioned stimulus
The term
unconditioned stimulus is used for the food because conditioning is not
required for it to cause the dog to salivate. Because the salivating response
also does not require learning, it is termed as unconditioned response. The
bell is referred to as the conditioned stimulus because conditioning is
required to learn a connection between it and the food. Pavlov accomplished
this by ringing the bell every time he presented the dog with food. After a
significant number of conditioning trials, the dog learned a connection between
the bell and the food. In fact, the association was strong enough for the bell
alone to then become capable of causing the dog to salivate.
The
classical conditioning however does not require use of reflexive stimuli, and
the dog now could be conditioned to a new stimulus by using the bell as the
unconditioned stimulus. Learning new associations between stimuli in this
manner is termed as second order conditioning,
Higher order conditioning can be
useful for understanding how consumers acquire secondary motives. E.g. the
achievement motive may be acquired by a child because rewarding praise was
given to him or her for accomplishing certain tasks. Later, this achievement
motive can influence the purchase of various products.
(Instrumental conditioning and cognitive theory-Refer
the Book)
Chapter-11 Attitudes
Attitude
is a learned predisposition to behave in a consistently favorable or
unfavorably with respect to a given object. The object can be product, brand,
services etc. If a consumer consistently buys and recommends others then he has
developed position attitudes towards the object.
Characteristics of attitudes
1)
Attitudes are a learned predisposition:
- Attitudes are generally considered to
be learned. Attitudes relevant to purchase behavior are formed as a result of
direct experience with the product, word of mouth, exposure to mass media
advertising internet etc. As learned predisposition, attitudes have a
motivational quality i.e. they might propel a consumer towards a particular
behavior or repel the consumer away from a particular behavior.
2)
Attitudes have consistency: - Attitudes
are relatively consistent with the behavior they reflect. However, despite
their consistency, attitudes are not necessarily permanent, they do change.
E.g. if a Dutch consumer repeated preferring German over Japanese automobiles
that individual would be expected to more likely to buy a German car when next
in the market for a new car. When consumers are free to act as they wish, it is
anticipated that. Their actions will be consistent with their attitudes. These
can be circumstances which preclude consistency between attitudes and matter of
affordability may interval and the consumer would find a particular Japanese
car to be more realistic choice than a German car. Thus there can be also some
situational influences on consumer attitudes and behavior.
3)
Attitudes occur within a situation: -
while measuring attitude it is important to consider the situations in which
the behavior take place. Situation is the event or circumstances at a
particular point in time; that influence the relationship between an attitude
and behavior. A specific situation can cause consumers to behave in ways that
are seemingly inconsistent with their attitudes.
Functions of attitudes
1)
The utilization function: - The brand
attitudes are partly held because of the brand’s utility. When a product has
been useful or helped in the past, attitude towards it tends to be favorable.
The attitudes can be changed in favor of the product by showing people that in
car serve a utilization purpose that they may not have considered.
2)
The Ego- defensive function: - People
want to protect their self- image from inner feelings. They want to replace
their uncertainty with a sense of security and personal confidence. The ads for
cosmetics and personal care products increases that their relevance to consumer
and the likelihood of a favorable attitude change.
3)
The value expressive function: -
Attitudes are as expression or reflection of the consumers general values
lifestyle and outlook. If a segment of consumers has a positive attitudes
towards being in fashion than their attitude towards high fashion clothing are
likely to reflect this view. Thus by knowing the
target consumers attitudes marketers can better anticipate the values,
lifestyle or outlook.
4)
The knowledge function: - Individuals
generally have a strong need to know and understand the people and things with
whom they come in contact many product and brand positioning attempts to
satisfy the need to know and to improve the consumers attitudes towards the
brand by emphasizing the advantages over competitive brands e. g. tooth pest.
Models of Attitudes
1)
The Tri-component Attitude model: -
According to the Tri-component attitude model, attitudes consists of three
major components: a cognitive component an effective component and a cognitive
component.
a)
The cognitive component- The first
component of the Tri-component attitude model consists of a person’s cognitions
i.e. the knowledge and perceptions that are acquired by a combination of direct
experience with the attitude object and related information from various
sources. This knowledge and resulting perceptions commonly take the form of
beliefs.
b)
The Affective component: - A consumer’s
emotions or feelings about a particular product or brand constitute the
effective component of an attitude. These emotions and feelings are frequently
treated by consumer researchers as primarily evaluative in nature frequently
treat these emotions and feelings .i.e. they capture an individual’s direct or
global assessment of the attitude- object Individuals rate he attitude object
as favorable, unfavorable, good or bad.
c)
The conative component: - This component
is concerned with the likelihood or tendency that or individual will undertake
a specific action or behave in a particular way with regard to attitude object.
In marketing, the conative component is frequently treated as an expression of
the consumer’s intension to buy.
2)
Multi-attribute attitude model: - It
portrays consumers attitudes with regard to an attitude object as a function of
consumer’s perception and assessment of the key attitudes or beliefs held with
regard to the particular attitude ‘object’.
a)
The Attitude- towards-object model:- It
is suitable for measuring attitudes toward a product or specific trends
according to this model, the consumer attitude towards a product or specific
brands of a product is a function of the presence sevelut of certain product-
specific beliefs or attitudes consumers generally have favorable attitudes
towards those brands that they behave have or adequate level of attitudes that
they evaluate as pritive and has unfavorable attitudes towards those brands
they feel do not have two many negative or undesired attributes.
b)
The attitude towards behavior
model:- This model is the individual’s
attitude towards behaving or acting with respect to an object, rather than the
attitude toward the object itself e. g. A person’s attitude about the act of
purchasing a top-of-the-line BMW (his attitude towards the behavior) reveals
more about the potential act of purchasing than does simply knowing his
attitude towards expensive German cars. Thus a consumer might have a positive
attitude towards an expensive BMW, but a negative attitude for purchasing such
an expensive vehicle
c)
Theory of Reasoned action model: - It
represents a comprehensive integration of attitude components into a structure
that is designed to lead better explanations and predictions of behavior. Like
.the Tri-component model, this model incorporates a cognitive effective and
conative component. These however are arranged in a different pattern.
To
understand intention we also need to measure the subjective norms that
influence an individual’s intention to act. A subjective norms can be measured
directly by assessing a consumers feelings as to what relevant others (family,
friends, roommates, co- workers).
Researchers
can get behind the subjective norm to the underlying factors that are likely to
produce it.
Unit 12-Perception
Defining Perception
Perception
is defined as the process by which an individual selects, organizes and
interprets stimuli into a meaningful and coherent picture of the world. It is
described as “how we see the world around us”. Two individuals may be exposed
to the same stimuli under the same apparent conditions but how each person
recognizes, selects, organizes and interprets them is a highly individual
process based on each person’s own need, values and expectations.
Perceptual selection
Consumers
subconsciously exercise a great deal of selectivity as to which aspects of the
environment (which stimuli) they perceive. An individual may look at some
things, ignore others and turn away from still others. In actuality people
receive or perceive only a small fraction of the stimuli to which they are
exposed.
Which
stimuli get selected depends on two major factors in addition to the nature of
the stimulus itself:
1) The consumer’s previous experience as it
affects their expectations
2) Their motives at the time.
a) Nature of the stimulus
Marketing
stimuli include an enormous number of variables that affect the consumer’s
perception such as the nature of the product, its physical attributes, the
package design, brand name, etc.
Contrast
is one of the mist attention-compelling attributes of a stimulus. The use of
lots of white space on a print advertisement, the absence of sound in a
commercial opening scene offers sufficient contrast from their environment to
achieve differentiation.
The
packaging focuses on the name, shape, color, label and provide sufficient
sensory stimulation to be noted.
Advertisers
are producing 30- minute commercials (infomercials) that appear as documentation
and command more attentive viewing than commercials would receive.
b) Expectation
People
usually see what they expect to see and what they expect to see is usually
based on familiarity, previous experience or preconditioned set. In marketing,
people tend to perceive products and product attributes according to their own
expectations stimuli that conflict sharply with expectations often receive more
attention than those that conform to the expectations. Certain advertisers have
used blatant Sexuality in advertisements for products to which sex was not
relevant in the belief that such advertisements would attract a high degree of
attention. However, ads with irrelevant sexuality often defeat the marketer’s
objectives, because readers tend to remember the sexual aspects of the ad not
the product or brand advertised.
c) Motives
People
tend to perceive the things they need or want; the stronger the need, the
greater the tendency to ignore unrelated stimuli in the environment. E.g. A
woman interested in a portable computer is more likely to notice and read
carefully ads for computer laptops than her neighbor who uses a desktop
computer.
Marketing
managers recognize the efficiency of targeting their products to the perceived
needs of consumers. A marketer can determine through marketing research what
consumers consider to be the ideal attributes of the product category or what
consumers perceive their needs to be in relation to the product category. The marketer can then segment the market on
the basis of those needs and vary the product advertising so that consumers in
each segment will perceive the product as meeting their own specific needs,
wants and interest.
Important concepts of selective
perception
1)
Selective
exposure
Consumers
actively seek out messages that they find pleasant or with which they are
sympathetic and they actively avoid painful or threatening ones. They also
selectively expose themselves to advertisements that reassure them of the
wisdom of their purchase decision.
2)
Selective
attention
Consumers
exercise a great deal of selectivity in terms of the attention they give to
commercial stimuli. Consumers are likely to note ads for products that would
satisfy their needs and disregard those in which they have no interest.
3)
Perceptual
defense
Consumers
sub consciously screen out stimuli that they find psychologically threatening,
even though exposure has already taken place.
4)
Perceptual
blocking
Consumers
protect themselves from being bombarded with stimuli by simply blocking such
stimuli from conscious awareness. It also includes zapping of TV commercials
with remote controls.
Perceptual organization
People
do not experience the numerous stimuli they select from the environment as
separate, rather they tend to organize them into groups and perceive them as
unified wholes. Thus the perceived characteristics of even the simplest
stimulus are viewed as a function of the whole to which the stimulus appears to
belong.
The three principles of perceptual
organization are:
1)
Figure
and ground
Stimuli
that contrast with their environment are more likely to be noticed. The
simplest visual illustration consists of a figure on a ground. The figure is
perceived more clearly because in contrast to its ground, it appears to be
well- defined. The ground is usually perceived as indefinite, hazy and
continuous. The common line that separates the figure and the ground is
attributed to the figure, rather than to the ground, which helps to give the
figure greater definition.
Advertisers
have to plan their advertisements carefully to make sure that the stimulus they
want noted is seen as figure and not a ground. The background of an
advertisement must not detract from the product.
2)
Grouping
Individuals
tend to group stimuli so that they form a unified picture or impression. The
perception of stimuli as groups or chunks of information facilitates their
memory and recall grouping can be used advantageously by marketers to imply
certain desired meanings in connection with their products. E.g. an
advertisement for tea may show a young man and woman sipping tea in a
beautifully appointed room. The overall mood implied by the groping of stimuli
leads the consumer to associate the drinking of tea with romance, fine living
and winter warmth.
3)
Closure
Individuals
have a need for closure. They express this need by organizing their perceptions
so that they form a complete picture. If the pattern of stimuli to which they
are exposed is incomplete, they tend to perceive it nevertheless as complete
i.e. they consciously or subconsciously fill in the missing pieces. The study
found that incomplete tasks are better remembered than complete tasks. The
person who begins a task develops a need to complete it. If he or she is
prevented from doing so a state of tension is created that manifest itself in
improved memory for the incomplete task. This is called Zeigernik effect.
The
need for closure has interesting implications for marketers. The presentation
of an incomplete advertising message “begs” for the completion by consumers;
and the vey act of completion serves to involve them more deeply in the
message.
Perceptual
Organization
Perception
is a personal phenomenon. People exercise selectivity as to which stimuli they
perceive and they organize these stimuli on the basis of certain psychological
principles. The interpretation of stimuli is also uniquely individual, because
it is based on what individuals expect to see in light of their experience on
their motives and interests at the time of perception.
Stimuli
are often highly ambiguous. Some stimuli are weak because of poor visibility,
brief exposure, high noise level or constant fluctuation. Even stimuli that are
stronger tend to fluctuate dramatically because of different angles of viewing
varying distances and changing levels of illuminations. When stimuli are highly
ambiguous an individual well usually interpret them in such a way that they
serve to fulfill personal needs, wishes, and interests and so on. This how
close a person’s interpretations are to reality depends on the clarity of the
stimulus, the past experience of the perceiver, his or her motives and
interests at the time of perception.
Distorting Influences
Individuals
are subject to a number of influences that distort their perceptions:
1)
Physical
appearances
People
tend to attribute the qualities they associate with certain people to others
who may resemble them whether or not they consciously recognize the similarity.
For this reason, the selections of models for print advertisements and for TV
commercials are key elements in their ultimate persuasiveness. It is found that
attractive models are more persuasive and have a more positive influence on
consumer attitudes and behavior than average looking models.
2)
Stereotypes
Individuals
tend to carry pictures in their minds of the meanings of various kinds of
stimuli. These stereotypes serve as expectations of what specific situations,
people or events will be like and they are important determinants of how such
stimuli are subsequently perceived.
3)
Irrelevant
When
required to form difficult perceptual judgment, consumers often respond to
irrelevant stimuli. E.g. many high priced automobiles are purchased because of
their color, style or luxury options rather than on the basis of mechanical ore
technical superiority.
4)
First
impressions
First
impressions tend to be lasting, yet in forming such impressions; the perceiver
does not yet know which stimuli are relevant, important or predictive of later
behavior. A shampoo commercial effectively used the line –“you will never have
a second chance to make a first impression. Since first impressions are often
lasting, introducing a new product before it has been perfected may prove fetal
to its ultimate success.
5)
Jumping
to conclusions
People
tend to jump to conclusions before examining all the relevant evidence. The
consumer may hear just the beginning of a commercial message and draw conclusions
regarding the product or service being advertised.
6)
Halo
effect
The
halo effect has been used to describe situations in which the evaluations of a
single object or person on a multitude of dimensions are based on the
evaluation of just one or a few dimension. Consumer behaviorists broaden the
notion of the halo effect to include the evaluation of multiple objects (e.g.
product line) on the basis of the evaluation of just one dimension (a brand
name or a spokes person).
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