CHAPTER 1

INTRODUCTION

Introduction to Consumer Behaviour

Consumer behaviour is the study of individuals, groups and organizations and the processes they use to
select, secure and dispose of products, services, experience or ideas to satisfy needs of the consumer and
society. It blends elements from psychology, sociology, social anthropology and economics. It studies
attributes of individual consumer such as demographic and behavioural variables in an attempt to
understand people’s wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups and society in general. Consumer behaviour includes the acts of individuals
directly involved in obtaining and using economic goods and services including sequence of decision
process that precede and determine these acts. Actual purchase is only a part of the decision process. In
Consumer behaviour we consider not only why, how and what people buy but other factors such as where,
how often and in marketing planning and programmes.

Meaning of Consumer :
Consumer refers to an individual who buys products or services for personal use and not for manufacturer
or resale. The Consumer is the one who pays to consume the goods and services produced.
Meaning of Consumer Behaviour : Consumer behaviour refers to the psychological, social and physical
behaviour of potential consumer as they become aware of, evaluate, purchase, consume and tell others
about the products or services.
OR
Consumer behaviour refers to the behaviour that consumers display in searching for, purchasing, using,
evaluating and disposing of products and services that they expect will satisfy their needs.

Definition of Consumer Behaviour

According to Ostrow and Smith, “ Consumer behaviour is all about the study of action of the consumers
in the market place and the underlying motives of those actions”.
Characteristics / Nature of Consumer Behaviour :
1. Information search: The search for information is a general characteristics of consumer behaviour.
Consumers cannot purchase goods and services if they are unaware that a good or service exits.
Consumers gather information in many ways. Advertisement and word-of-mouth are common ways
consumers find information.
2. Brand loyalty: Brand loyalty is the tendency of a consumer to buy products or services from a certain
company that she/he likes or equates with having high quality goods and services. An information search
takes time and effort, brand loyalty is a way consumer avoid the time and effort involved in an information
search.
3. Price elasticity of Demand: It is an economic concept and an important characteristics of consumer
behaviour. The price elasticity of demand is the change in consumption that an individual makes due to a
change in the price of a certain product. Items with low elasticity of demand or inelastic goods, are those
that consumer tend to buy regardless of price.
4. Personal characteristics: Before buying any product, the individual usually takes time to evaluate the
product. The choice may be different from person to person. So, the process of market segmentation came
into existence. This is done mainly to give some benefits to those customers of particular segment.
5. Product characteristics: The choice for a particular product also differs from person to person. There
could be shift in the change of product category from the existing product category. The time needs to be
spent in order to make a purchase of a product category.
6. Consumption situation: The purchasing and the consumption depend on the situation for a particular
product. The consumption of a product may also reflect to the status of individual.
7. Marketing characteristics The marketing of a product also depends on individual psychology, social
psychology, sociology, cultural or social anthropology, economic, geographical, linguistics, political and
philosophy.

Managerial & Consumer perspective

1. Managerial Perspective
From a managerial point of view, consumer behaviour is studied to help businesses and marketers
understand how to:
• Identify needs and wants of target consumers
• Design better products and services that match consumer preferences
• Develop effective marketing strategies (4Ps: Product, Price, Place, Promotion)
• Segment and target markets more accurately
• Predict buying patterns and respond to changes in demand
• Build brand loyalty by creating value and satisfaction
• Enhance customer experience through personalization and communication

In essence, managers analyze consumer behaviour to make informed decisions that can maximize
profits, market share, and customer satisfaction.
2. Consumer Perspective
From the consumer’s point of view, studying consumer behaviour helps understand:
• Why and how they make purchasing decisions
• What influences their choices, such as culture, personality, motivation, perception, family, and
social class
• How they evaluate alternatives and perceive value
• Post-purchase behaviour, including satisfaction, complaints, or brand loyalty
This perspective focuses on the internal thought process and external influences that drive consumer
decisions, like:
• Needs vs. wants
• Rational vs. emotional buying
• Trust and experience with brands
• Peer and societal influence

Need to Study Consumer Behaviour

Studying consumer behaviour is essential for understanding how individuals and groups make decisions
to purchase products or services. The need to study consumer behaviour arises due to the following
reasons:
1. Understanding Consumer Needs: Businesses need to understand what consumers want and need
in order to develop products and services that satisfy those needs effectively.
2. Effective Marketing Strategy: Knowledge of consumer behaviour helps in designing better
marketing strategies related to product, price, place, and promotion (the 4Ps).
3. Market Segmentation and Targeting: It helps in identifying different segments of the market
based on consumer preferences and targeting them with suitable offerings.
4. Product Positioning: By studying consumer behaviour, firms can position their products in a way
that appeals to the target audience.
5. Forecasting Market Trends: It enables businesses to anticipate future buying trends and prepare
accordingly.
6. Customer Retention and Loyalty: Understanding consumer behaviour supports efforts to
increase customer satisfaction, leading to repeat purchases and brand loyalty.
7. Innovation and Product Development: Consumer insights lead to innovation by helping
businesses create new or improved products based on changing preferences.
8. Competitive Advantage: Firms that understand their customers better can gain an edge over
competitors.
 Application of Consumer Behaviour Knowledge
The knowledge of consumer behaviour has wide-ranging applications in marketing and business
decision-making. Understanding consumer behaviour is essential for both marketers and organizations
to succeed in a competitive environment. The key applications include:
1. Marketing Strategy Development: Consumer behaviour insights help businesses create effective
marketing strategies by understanding what consumers want, how they think, and how they make
decisions.
2. Market Segmentation and Targeting: It helps in dividing the market into distinct groups based
on demographics, lifestyle, or buying patterns and targeting them with tailored marketing
messages.
3. Product and Service Design: Knowledge of consumer preferences and expectations allows
businesses to design products and services that align with consumer needs.
4. Brand Positioning and Repositioning: It aids in placing a brand in the minds of consumers in a
way that differentiates it from competitors, or repositioning it when needed.
5. Pricing Decisions: Understanding consumer perception of value and price sensitivity helps in
setting optimal pricing strategies.
6. Promotion and Communication: Consumer behaviour knowledge is used to craft effective
promotional messages and choose the right communication channels.
7. Customer Relationship Management (CRM): It helps build long-term relationships with
customers by understanding their preferences and delivering personalized experiences.
8. New Product Development: Insights from consumer behaviour are crucial in developing
innovative products that meet emerging consumer needs.
The current trends in consumer behaviour
Understanding the current trends in consumer behaviour is essential for marketers to adapt to the rapidly
changing preferences and expectations of consumers. The following are some of the key emerging trends:
1. Digital and Online Shopping: With the rise of e-commerce and digital platforms, consumers now
prefer online shopping due to its convenience, variety, and ease of comparison. Mobile apps,
websites, and social media influence buying decisions significantly.
2. Personalization and Customization: Modern consumers expect personalized experiences and
products tailored to their preferences. Businesses are using data analytics to offer customized
recommendations and services.
3. Social Media Influence: Consumer decisions are increasingly influenced by social media
platforms. Reviews, influencer marketing, and user-generated content play a crucial role in
shaping opinions.
4. Sustainability and Ethical Consumption: Consumers are becoming more environmentally
conscious. There is a growing demand for eco-friendly, sustainable, and ethically sourced
products.
5. Health and Wellness Focus: Post-pandemic, there is a strong emphasis on health, hygiene, and
wellness-related products, influencing purchase behaviour.
6. Experience Over Ownership: Many consumers, especially younger generations, prioritize
experiences (like travel or entertainment) over owning physical goods.
7. Brand Loyalty and Switching: While brand loyalty still exists, consumers are more willing to
switch brands if they find better value, service, or innovation elsewhere.
Market segmentation
Market segmentation helps businesses identify specific groups within a market so that they can tailor
their products, services, and marketing strategies to meet the unique needs of each segment more
effectively.
OR
Market segmentation is a process of dividing a broad, heterogeneous market into smaller,
homogeneous groups of consumers who have similar needs, characteristics, or buying behaviours.

BASES OF SEGMENTATION
1. Demographic segmentation: the word demographic is derived from the word demography, meaning
the study of population. It divides market into segments taking into considerations demographic
factors such as gender, age, social class, gender, income, occupation, education, religion, race,
generation, nationality etc.
2. Behavioural segmentation: it is based on product consumption related behaviours and can include
frequency, volume and type of product usage. a) Benefit b) Occasion c) Product usage d) Brand loyalty
3. Psychographic Segmentation: effective marketing of a product requires a proper understanding of
customers psychology, along with needs, this will ensure product acceptance by the consumer. a)
Personality b) Opinions, interest and hobbies c) Lifestyle
4. Cross-Cultural Segmentation: development in information and technology has paved way for
globalization of economies and a new market place has developed.
5. Geographic Segmentation: geographic segmentation divides the target market according to
geographical units such as nations, states, regions, countries, cities or neighbourhoods.
6. Socio-Economic Segmentation: in socio-economic conditions relevant to well-being in socio-
economic the target market is divided into segments according to their incomes and social class, this
can also be done as part of occupation, educational background etc,.

Models of Consumer Behaviour

Traditional Models
1. Economic Model
In economics, the people evaluate all the alternatives in terms of cost and value received. Product and
service gives full satisfaction. Consumers follow the principle of maxtown atitzy based on the law of
diminishing marginal utility. Consumers will allocate his needs, tastes and experience according to the
purchasing of the consumers, also the consumer utilises his expenditure for different products in order
to maximise utility.
Usually economic model is un-dimensional. Here the buying decisions of a person as concerned with
utilisation of the resources. The consumers make the purpose in the hope of utilising his resources of
most. The economic model will be emphasized by buying behaviour.
They are:
i) Price effect: if the price of the product is reasonable, the quantity of the product purchased is more.
(ii) Product effect: Lesser the price of the substitute product the original product purchased be less.
(iii) Income effect: If the purchasing power of the consumer is more and sound, the purchase of the
product will be more. This model emphasizes the behaviour of the consumer about a certain product.
According to some of the scientists, economic model is incomplete. The market is homogeneous
according to the economics and the consumers behave according to the income level. Here the
perception, motivation, learning, attitude and personality are considered much important. But on the
contrary is very important to possess a multi-disciplinary approve to understand consumer behaviour.
Apart from all those factors, the consumer is also influenced by product, place, promotion etc. These
all factors helps the consumers in taking a decision.

Learning model :
The psychologists are very much interested and concerned about the formation and satisfaction of
needs and tastes. These psychologists always give attention one two aspects, the primary needs and
the learned needs. The primary needs are lounger; sex etc and the learned needs are fear and guilt. The
internal stimulus when directed towards a drive becomes a motive. The products and services will act
as stimuli in order to satisfy drives.
According to the cognitive theorists, the consumers not only learn to link stimulus with responses but
also in the formation of other cognitive aspects such as attitudes, values, beliefs, motivation etc.
Ultimately, the consumers behaviour/responses changes according to the needs and wants for a
particular product. Consumer can choose from the various alternatives available and therefore can take
the right decision in buying the right product which satisfies the needs and wants of the customers.

Contemporary Models
(Nicosia Model & The Howard Sheth Model)
Nicosia model :

This is also called as systems model, because here the human being is been a system, where the stimuli
is regarded as a input to the system and the human behaviours as an output of the system. This model
is developed by Francesco Nicosia in 1966, who was an expert in consumer motivation and behaviour.
Here he tries to explain buying behaviour through 4 link between the organisation and the consumer,
The model concentrates on the messages which are coming out from the firm which again is focused
on the product or service, Based on the sanction, the consumer will have a certain attitude towards the
product. The consumer always looks fox features _ in a product, is emphasizes on four baste areas;
{a] The consumer attributes and the firm’s attributes. The advertising message is aimed to reach to the
mass to Jarge. The consumer will react depending on the intensity of the message received,
{b] The search and evaluation results received by the consumer on the advertised product is being
compared on the available alternatives. This factors is related with product/service.
(c) The third one explains how the consumer buys the product,
(d) The items purchased is emphasised by the utilisation of the items.
Howard Sheth model
The Howard Sheth model usually serves two purpose:
a) It reflects how complex the whole question of consumer behaviour really is.
b) It provides the framework for including various concepts like learning, perception and attitudes etc.
which play a role in influencing consumer behaviours. In this theory, the most significant stimulus
affecting the buying behaviour are the information cues about the characteristics of the product. These
cues can play a very important part when the buyer is involved in shopping activity and therefore
referred to as significative.
Other cues can be useful for information sources which are depicted through symbols. Both the
significant and symbolic cues are very useful tools from marketing prospective. The product
emphasises by way of quality, price, distinctiveness, service and availability. The media
communication and advertising "sources are very important which the firm has no control.
The marketing efforts of the firm are controlled by sales and service personnel. Another sources/factor
which influences the buying behaviour include, family, friends, colleagues etc. This is a social source
is personnel where the company has no control over it.
Perceptual constructs: This is a complex states or psychological processes and how the individual
deals with the information cues received from various sources. Sometimes the information is not
attested properly. Therefore ends up incomplete outcome on results. The individual receives a lot of
information but the individual interprets only the information which is useful to him and therefore
neglects the unwanted information.
Learning constructs: Here, the theory is much more complex and numerous. The buying behaviour of
an individual is reflected by the motives. The buyers intention is always towards the products brand,
whether the buyer form a positive attitude or not. Though the attitude does not change, it can be
changed by the factors influencing the product/brand. The way includes ‘brand comprehension’ i.e.
knowledge/ awareness about the brand characteristic features which forms the basis for the buyers.
This buying behaviour is characterized by set of alternatives, choice criteria etc.
 CHAPTER – 2
INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOUR

INDIVIDUAL DETERMINANTS
1. Consumer needs and Motivation: In a society, different consumers exhibit different consumer
behaviour because they are unique and have unique sets of needs. Motivation is that internal force that
activates some needs and provides direction of behaviour towards fulfilment of these needs. While
talking of motivation, cannot afford to forget the Maslow’s Hierarchy of needs which tells us about
the primary and secondary needs. First the biological needs of hunger, thirst, shelter are satisfied then
the safety needs and then the psychological desires of being accepted in society, seeking status, esteem,
etc. are satisfied. People adopt different methods to fulfil their needs. The need of transport can be met
by car, rail, bus or aeroplane. People choose different modes of transport because of their level of
involvement in different activities.
2. Personality and Self-concept: It is the sum total of our mental, physical and moral qualities and
characteristics that are present in us and that make us what we are. Consumers try to buy the products
that match their personality. People wanting to look manly will buy products with a macho appeal,
which would enhance their image and personality. People who give emphasis on comfort and care,
will purchase comfort products and so on. If one wants to emulate a film star his choice will be
different from others.
3. Consumer 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. Perception differs
from individual to individual. It is the way a person sees the world around him. It is a personal
phenomenon, Perception is that process, which involves seeing, receiving, selecting organizing,
interpreting and gives meaning to the things around him. It is basically a mental process and
fundamentally a cognitive on thinking process.
4. Learning and Memory: Every day we are exposed to a wide range of information, but retain only
a small portion of it. We tend to remember the information that we are interested in or, that is important
to us. In a family different members of the family are interested in different types of information which
they individually retain. Mothers retain information regarding household items. Father retains
information regarding his interest in cars, motor cycles and other objects. Children are interested in
objects of their interest like amusement parks, joy rides, Barbie dolls, etc. Our motives, attitudes,
personality filters the information. Keeping only relevant information in our minds and, keeping the
others out. This is known as selective retention. We retain in our memory only selective information
that is of interest to us.
5. Attitudes: These are learned predispositions towards people, objects and events. Attitudes are
responsible for our responses and are not inborn but are learnt from people around us. Our attitudes
influence our purchase decisions and consumer behaviour. A person having a carefree attitude will
buy an object without much involvement.; People who want to play safe and avoid risk talking, will
go for a safe investment. People who want convenience and are short of domestic help, will have a
positive attitudes towards canned and frozen foods.
Father retains information regarding his interest in cars, motor cycles and other objects. Children are
interested in objects of their interest like amusement parks, joy rides, Barbie dolls, etc. Our motives,
attitudes, personality filters the information. Keeping only relevant information in our minds and,
keeping the others out. This is known as selective retention. We retain in our memory only selective
information that is of interest to us.
CONSUMER NEEDS
Consumer wants and needs should drive marketing decisions and no strategy should be pursued until
it passes the test of consumer research. Today's consumer is empowered, demanding and a deep well
of innovation. Improving their experience with the organization is the next frontier of competitive
advantage. They want a role in helping to both create and champion the entire consumer experience.
They are often vocal in making their needs and preferences known. They embrace transparency, are
digitally plugged into powerful social networks and have come to expect unique, high-touch
experiences that keep pace with their constantly evolving needs.
THE SIX BASIC NEEDS OF CUSTOMERS
The Six Basic Needs of Customers are as follows :
[Link]: is the most basic of all customers needs, usually associated with being greeted
graciously and with warmth. We all want to be acknowledged and welcomed by someone who
sincerely is glad to see us. A customer shouldn’t feel they are an intrusion on the service provider’s
work day.
2. Understanding and empathy: Customers need to feel that the service person understands and
appreciates their circumstances and feelings without criticism or judgment. Customers have simple
expectations that we who serve them can put ourselves in their shoes, understanding what it is they
came to us for in the first place.
3. Fairness: Customers get very annoyed and defensive when they feel they are subject to any class
distinctions. No one wants to be treated as if they fall into a certain category, left wondering if “‘the
grass is greener on the other side” and if they only received second best.
4. Control: represents the customers’ need to feel they have an impact on the way things turn out. Our
ability to meet this need for them comes from our own willingness to say “yes” much more than we
say “no.” Customers don’t care about policies and rules; they want to deal with us in all our
reasonableness.
5. Options and alternatives: Customers need to feel that other avenues are available to getting what
they want accomplished. They realize that they may be charting virgin territory and they depend on
us to be in the know” and provide them with the “inside scoop.” They get pretty upset when they feel
they ‘have spun their wheels getting something done and we knew all along a better way but never
made the suggestion.
6. Information: “Tell me, show me-everything.” Customers need to be educated and informed about
our products and services and they don’t want us leaving anything out. They don’t want to waste
“precious time doing homework on their own they look to us to be their walking, talking and
information central.
MASLOW’S NEED HIERARCHY:
This theory was developed by Abraham Maslow, an eminent. psychologist and has recerved pore
attention from managers than any other’ theory of motivation, has classified human needs in logical
convenient way that has an important Motivation implication for mangers. In this theory he has
pointed out and explained that how needs influence human behaviour. Maslow viewed.
Self Actualisation Needs
Esteem Needs
Social Needs
Safety and Security Needs
Physiological Needs
a) Physiological Needs: Those are most basic needs including food, shelter and clothing. These needs
are most powerful motivators as individual cannot survive without them, Physiological needs must be
satisfied to some level or these should be partially satisfied, before the individual moves to satisfy
other higher category needs. Maslow observed that “man lives by bread alone, when there is no bread”.
b) Safety Needs: After the satisfaction of physical needs. to a relative extent, one feels concerned a ‘
about safety from future uncertainty, enemies and other threats. These are essentially needs of self-
preservation. At this stage an individual begins to think for future and makes efforts to provide for
rainy days. It is concluded by Maslow that, employees needs sufficient wage ty feed, to take shelter
to protect them and their families’ and a safe working environment before attempting to satisfy other
needs of the higher order.
c) Social Needs: After having secured satisfaction for physical needs and protection for future one
focus next on satisfying needs of love and affection which are known as social needs. Social needs
include the need to love and be loved and the need to belong and be identified with a group. Though
this need is strongly felt but an individual is respect of family, it also affects work environment. As
with the first two levels of needs, relative satisfaction of social needs gives rise to next higher level
need.
d) Esteem Needs: Employees in the organization who perceive themselves as worthwhile are said to
have esteem needs. Self respect is a key to. such needs. Much of our self- respect comes from being
accepted and respected by others but esteem needs will emerge only when other lower category of
needs are satisfied to a relative extent. Esteem needs include need for self-respect and appreciation
from others, status and prestige in the society.
e) Self actualization: At the top of Maslow’s hierarchy of needs, there lies the need of self-
actualization. It is an open-ended need, because it relates to the need to become more and more what
one is to become everything that one is capable of becoming. It includes need for realization of one’s
full potentials of development, maturity and autonomy. On the relative of this need an individual
becomes growth-oriented, self directed, detached and creative. But an organization he hardly achieves
self-realization. However the creativity of an individual in producing new and practical ideas, in
bringing about productivity and innovation and in reducing cost that might satisfy some of the needs
of self-actualization.
Assumptions of Maslow’s need theory
1. Man is a wanting animal motivated by needs.
2. Only dissatisfied needs motivate an individual.
3. Once needs satisfied, it ceases to be a motivator.
4. Needs are arranged a particular order or hierarchy.
 Meaning of Motivation
Motivation refers to the internal and external factors that stimulate desire and energy in people to be
continually interested and committed to a job, role or subject or to make an effort to attain a goal.
Definitions of Motivation "According to Koontz and ‘0’ Donnell, “Motivation i is a general term
applying to the entire class of drives, needs, wishes and similar forces”
‘According to Dale Breachus, “Motivation is the willingness to expand energy to achieve goals and
rewards. "
According to Stephen, PB Robbins, “Motivation is the process “that starts with physiological or
Psychological deficiency or need that activities ‘behaviour or a drive t that is aimed at a goal or
incentive".

NATURE OF MOTIVATION
The nature of motivation can be summarized as follows:
i) It is an inner feeling which energizes a person to work more.
ii) The emotions are desires of person prompt him for doing a particular work.
iii)There are unsatisfied needs of a person which disturb his equilibrium.
iv)A person moves to fulfill his unsatisfied needs by conditioning his energies.
v)There are dormant energies in a person which are activates by channelizing them into actions.
TYPES OF MOTIVATION
Motivation can be classified into two categories such as;
1. Positive Motivation
2. Negative Motivation

Positive Motivation : Positive motivation is a response that takes place when an individual’s performance
is driven by previous reinforcing behaviours. That is to say, the athlete performs because they have
received rewards for similar actions in the past and they realize that continuing to perform as required will
result in additional rewards.
It is also called as incentive motivation which is based on reward, Here the workers are offered incentives
for achieving the desired goals, The incentives may be in the shape of more pay 4 promotion, recognition
of work. The employees are offered the incentives and try to improve their performance willingly. The
real positive motivators are responsible for placement, high standard of f performance information
adequate for self control and the participation of the worker as a responsible citizen in the community.
The following are a number of positive techniques:
i) Communicate Effectively.
ii) Reward athletes with praise and encouragement.
iii) Dwell on strengths not weaknesses. .
iv) Appear organized and in control.
v)Include certain times for fun and humour.
vi) Develop a relationship of mutual respect between a coach and an athlete.
vii)Know when to take a break and when to give an athlete a day off. vi)
viii) Develop leadership skills. Supporting the athletes after errors: and losses as well as after playing and
winning. Setting fair and consistent rules for inappropriate behaviour.
xi) Developing personal progress charts.
xii) Providing incentives.

2. Negative Motivation:
Negative motivation is the type of feeling a person gets when he expects punishment. It is also called as
fear motivation which is based on force or fear. It causes fear for employees to act in a certain way. In
case as push mechanism, the employees do not willingly co-operate, rather they want to avoid the
punishment. Though employees work up to a level where punishment is avoided but this type of
Motivation causes anger and frustration. This type generally becomes a cause of industrial unrest.

IMPORTANCE OF MOTIVATION
Importance of Motivation can be summarized as follows:
i) Motivation puts human resources into action Every concern requires physical, financial and human
resources to accomplish the goals. It is through motivation that the human resources can be utilized by
making full use of it. This can be done by building willingness in employees to work. This will help the
enterprise in securing best possible utilization of resources.
ii) Improves level of efficiency of employees The level of a subordinate or a employee does not only
depend upon his qualifications and abilities. For getting best of his work performance, the gap between
ability and willingness has to be filled which helps in improving the level of performance of subordinates.
This will result into: a) Increase in productivity, b) Reducing cost of operations and ¢) Improving overall
efficiency, d) Leads to achievement of organizational goals
iii) Builds friendly relationship Motivation is an important factor which brings employees satisfaction.
This can be done by keeping into mind and framing an incentive plan for the benefit of the employees.
This could initiate the following things: a) Monetary and non-monetary incentives, b) Promotion
opportunities for employees, ¢} Disincentives for inefficient employees.
iv} Leads to stability of work force Stability of workforce is very important from the point of view of
reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they
have a feeling of participation m the management. The skills and efficiency of employees will always be
of advantage % employees as well as employees. This will lead to a good public image in the market
which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices
with the role of motivation here, the older the people, more the experience and their adjustment into &
concern which can be of benefit to the enterprise.
CONSUMER MOTIVATION
Consumer motivation is an internal state that drives people to identify and buy products of services that
fulfil conscious and unconscious needs or desires, The fulfilment of those needs can then motivate them
to make repeat purchase or to find different goods and services to better fulfil those needs.

RULES OF CONSUMER MOTIVATION

The various rules of Consumer Motivation are:
Rule-1: Set a major goal but follows a path: The path has mini goals that go in many directions. When
you learn to succeed at mini goals, you will be motivated to challenge grand goals.
Rule-2: Finish what you start: A half finished project is of no use to anyone. Quitting is a habit. Develop
the habit of finishing self-motivated projects.
Rule-3: Socialize with others of similar interest: Mutual support is motivating. We will develop the
attitudes of our five best friends. If they are losers, we will be a loser. If they are winners, we will be a
winner. To be a cowboy we must associate with cowboys.
Rule-4: Learn how to learn: Dependency on others for knowledge supports the habit of procrastination.
Man has the ability to learn without instructors. In fact, when we learn the art of self-education we will
find, if not create, opportunity to find success beyond our wildest dreams.
Rule-5: Harmonize natural talents with interest that motivates: Natural talent creates motivation,
motivation creates persistence and persistence gets the job done.
Rule-6: Increase knowledge of subjects that inspires: The more we know about a subject, the more we
want to learn about it. A self-propelled upward spiral develops.
Rule-7: Take risk: Failure and bouncing back are elements of motivation. Failure is a learning tool. No
one has ever succeeded at anything worthwhile without a string of failures.

PERSONALITY –
The term ‘personality’ is derived from the Latin word ‘persona’ which means a mask or “to speak
through.” Personality is the combination of features or qualities that forms a person’s unique identity, It
indicates the role which a person plays in public and society. Every individual has a unique, personal and
major determinant of his behaviour that defines his/her personality which is different from that of others.

DEFINITIONS OF PERSONALITY
According to Warren & Carmichael, "Personality is the entire mental organization of a human being at
any stage of his development. It embraces every phase of human character: intellect, temperament, skill,
morality and every attitude that has been built up in the course of one's life. "
According to Mayer, "An individual's pattern of psychological processes arising from motives, feelings,
thoughts and other major areas of psychological function. ‘Personality is expressed through its influences
on the body, in conscious mental life and through the individual's social behaviour."
CHARACTERISTICS. OF PERSONALITY *
There are two main features of an individual.
They include:
1. Inherited characteristics
2. Learned characteristics
[Link] ‘Characteristics The facial appearance an individual acquires from their parents or
forefathers, in other words the gifted features an individual possesses by birth is considered as
inherited characteristics. It consists of the following features – Color of a person's eye, Religion/Race
of a person, Shape and size of the nose, Shape of earlobes etc
2. Learned ‘Characteristics No person learns everything by his birth. School is considered to be our
home, then our society, followed by educational institutes. The uniqueness an individual acquires by
observing, working and gaining knowledge from others and the surroundings is known as learned
characteristics. .
Learned characteristics includes the following features:
(i) Perception - Result of different senses like feeling, hearing etc. (ii) Values - Influences perception
of a situation, decision making Process. (iii) Personality - Patterns of thinking, feeling, understanding
and behaving. (iv) Attitude - Positive or negative attitude like expressing one’s thought.
TYPES OF PERSONALITY :
1. Locus of Control
Locus of control refers to an individual's generalized expectations concerning where control over
subsequent events resides. In other words, who or what is responsible for what happens. It is analogous
to, but distinct from, attributions.
2. Authoritarianism:
It refers to a belief that there should be status and power differences among people in organizations.
An individual with authoritarian personality believes in the legitimacy of formal authority, view
obedience to authority as necessary, holds negative views about people and is intellectually rigid.
Authoritarians tend to place high moral. value on their beliefs and are strongly Oriented towards
conformity to rules and regulations. They naturally preferable stable .
3. Bureaucratic Personality
The personality of Bureaucratic person is based upon respect for organizational rules and regulations.
A person who is Bureaucratic in nature values subordination, conformity to rules, impersonal and
formal relationships. These people become better supervisor when the type of work is routine,
repetive, proceduralized because these people are not innovative. They do not like taking risks and
feel more at ease in following established directions
4. Machiavellianism It represents the degree to which an individual is pragmatic, maintains emotional
distance and believes that ends can justify means. The term Machiavellianism or Mach is named after
Nicole Machiavelli who wrote in the 16th century on how people gain and manipulative power. People
with high Machiavellianism manipulate more, win more are persuaded less persuade others more than
do people with low Machiavellianism. However high-Mach outcomes are moderated by situational
factors. Generally high-Mach flourishes:
(i) When they interact face to face with others than indirectly ii) When the situation is not structured
or has a minimum of rules and regulations thus allowing latitude for improvisation (iii) Where
emotional involvement with details irrelevant to winning distracts low-Mach.
5. Introversion and Extroversion
These terms are generally associated with an individual’s sociability and interpersonal orientation.
Extroverts are gregarious and sociable individual while introverts are shy, quiet and retiring. It has
been observed that introverts and extraverts have significantly different career orientations and require
different organizational environments to maximize performance. Extroverts are more suitable for
positions that require considerable interaction with others, whereas introverts are more inclined to
excel at task that requires thought and analytical skills. Not surprisingly, managerial positions are
dominated by extroverts thus suggesting that this managerial trait is a factor in managerial success.
6. Type “A” and Type “B" People who are impatient, aggressive and highly competitive and are termed
as Type “A” personality. But those who are easy going, laid-back and non-competitive are termed as
Type “A” people tend to be very productive as they work very hard. They negative side of them is that
they are impatient, not good team players, more irritable and have poor judgment. Type “B” people
do better on complex tasks involving judgment and accuracy rather than speed and hard work. Type
A individual as ambitious, aggressive, business-like, controlling, highly competitive, impatient,
preoccupied with his or her status, time-conscious and tightly-wound.
People with Type A personalities are often high-achieving "workaholics" who multi-task, push
themselves with deadlines and hate both delays and ambivalence. Type B individuals as perfect
contrast to those with Type A personalities.
People with Type B personalities are generally patient, relaxed, easy-going and at times lacking an
overriding sense of urgency. Because of these characteristics, Type B individuals are often described
as apathetic and disengaged by individuals with Type A or other personality types.

DETERMINANTS OF PERSONALITY OR FACTORS INLFUENCING PERSONALITY:

1. Biological Factors :
a) Heredity: refers to those factors that were determined at conception. Physical stature, facial
attractiveness, Sex, temperament, muscle composition and reflexes, energy level and biological
rhythms are characteristics that are generally considered to be either completely or substantially
influenced by who your parents were; that is, by their biological, physiological and inherent
psychological makeup. The contribution of heredity to personality development is vividly clear for
developing external appearance, behavior, social stimuli, self inner awareness organizing traits, etc.
b) Brain : Brain has a great impact on personality. The psychologists are unable to prove empirically
the contribution of human brain in influencing personality. Father and children generally adopt the
same type of brain stimulation.
c) Physical features : Perhaps the most outstanding factor that contributes to personality is the physical
stature of an individual. An individual's external appearance is proved to be having a tremendous effect
on personality. For example, the fact that a person is short or tall, fat or thin, handsome or ugly, black
or whitish will undoubtedly influence the person's effect on others and in turn will affect the
selfconcept.

2. Family and Social Factors:

The development of individual’s personality is also influenced by the family and other social groups.
The infant acquires those behavior patterns that are customary and acceptable to the standards of the
family and the community where the family lives. The status o1 the family in the society influences
individuals perception about self, others, work, money etc.
a) Family Factors: Family factors are also major factors which influence to determine individual
personality. Family consists of husband and wife and their children’s. Family role is very important
for nurturing and personality development of their children.
b) Social Factors Social factors are also major factors which influence to determine individual
personality. It involves the reorganization of individual's in an organization or society. It refers to
acquiring of wide range of personality by acquiring and absorbed by themselves in the society or an
organization.

3. Cultural Culture:
every individual has a very great and intense effect on the personality of an individual. According to
some people, personality is the subjective in nature and an aspect of culture. Usually personality and
culture are regarded as two sides of the same coin.
4. Situational Factors:
An individual’s personality may change in different situations. The demands of different Situations
may call for different aspects of one’s personality. Therefore we should not look at the personality;
there exist significant individual differences which are further influenced by the Relationship of the
above affects the formation and development of personality.
The Interaction of Personality and Situational Factors are outlined:
• Strong situational pressures.
• Personality may not predict behavior.
• Weak Situational pressures.
• Personality may predict behavior.
• A strong situation can overwhelm the effects of individual personalities by providing strong cues for
appropriate behavior.

5. Other Factors
• Temperament
• Interest
• Character
• Motives

SELF CONCEPT
Self concept is defined as the way, in which we think, our preferences, our beliefs, our attitudes, our
opinions arranged in a systematic manner and also how we should behave and react in various roles
of life. Self concept is a complex subject as we know the understanding of someone’s psychology,
traits, abilities sometimes are really difficult. Consumers buy and use products and services and
patronize retailers whose personalities or images relate in some way or other to their own self-images.
Self-concept can be described simply as how one perceives himself and his behavior in the market
place. It is the attitude one holds towards himself .......Ideal social self: How a person would like others
to perceive him.
The below are the major aspects of Self-concept:

1. Self-Concept is Organized : We all may think we are kind, calm, patient, selfish, rude and what not.
It doesn’t matter what perception you have about yourself, but the one perception that facilitates all
these insights is organized self concept. When a person believes in something that matches his self
concept he ' sticks to his view and does not agree to change the same and even if does, it takes a lot of
time.
2. Self Concept is Learned : It is believed that self concept is learned and no person is born with a self
concept. It develops as and when we grow old. Our self concept is built when we meet people socially
and interact with them. We are the ones who shape or alter our self concept and its quite natural that
we may have a self concept different for ourselves as compared to what people think about us.
3. Self Concept is Dynamic : Our self concept in life is not constant and it may change with instances
that take place in our lives. When we face different situations and new challenges in life, our insight
towards things may change. We see and behave according to the things and situations. Thus, it is
observed that self concept is a continuous development where we let go things that don’t match our
self concept and hold on those things that we think are helpful in building our favourable perception.

CHARACTERISTICS OF SELF-CONCEPT
Self-concept has a unique self-concept, different from the self-concept of others and from their concept
of us. However, the characteristics that all of our self-concepts have in common.
• Displays uniquely with each person
• Vary from very positive to very negative.
• Carries emotional, intellectual, and functional dimensions.
• Changes with the context
• Changes over time.
• Influence the individual’s life.

PERCEPTION
The word "perception" comes from the Latin words perceptio, percipio, which means "receiving,
collecting, action of taking possession, apprehension with the mind or senses. “Perception is the
process of attaining awareness or understanding of sensory information”.
Perception is one of the oldest fields in psychology. The oldest quantitative law in psychology 3g the
Weber-Fechner law, which quantifies the relationship between the intensity of physical stimuli and
their perceptual effects. The study of perception gave rise to the Gestalt school of psychology, with
its emphasis on holistic approach.

DEFINITION OF PERCEPTION
“According to professors Schiffman and Kanuk; “Perception is the ‘process by which an -
individual s selects organizes and interprets stimuli into > meaningful and coherent Picture of the
world”.
NATURE OF PERCEPTION
1. Perception is the intellectual process.
2. Perception is the basic cognitive or psychological process.
3. Perception becomes a subjective process and different people may perceive the same event
differently.
4, Perception can be defined as a process which involves seeing, receiving, selecting, organising
interpreting and giving meaning to the environment.
5. Perception is determined by both physiological and psychological characteristics, of the organism.

IMPORTANCE OF PERCEPTION
1. Each and every individual sees and approaches the world and handles different problems in the
world and even reacts to them in a different manner. No two people think in the same manner.
2. If a group of people behave in the same way we can predict their behavior in different
circumstances by understanding their present perception of the environment. Two viewers generally
view the same fact in different ways.
3. Perception helps in determining the needs of different individuals. This is mainly because each
individual’s perception is influenced by their needs. No two people will have similar kinds of needs.
4. Perception is considered to be very important to all the managers who are working in an
organization this is because this helps them in avoiding any kinds of errors when they deal with
people or different events at their workplace. This problem becomes more complicated because
different people view the same situation in different manners. In order to deal with their superiors
and subordinates in the right manner, managers should understand their perceptions properly.
5. Perception is very important in an organization as well as it helps in understanding the tasks to be
performed by an individual, understanding associated importance of tasks allotted, understanding
preferred behaviour to complete respective tasks and clarifying role perceptions.

TYPES OF PERCEPTION
1. Perception of sound: It is considered to be the ability to receive sound by identifying different
vibrations.
2. Perception of speech: It is the competence of interpreting and understanding the sounds of
language which is heard.
3. Perception of Touch: It includes identifying objects and things through patterns of its surface by
touching it and feeling them.
4. Perception of Taste: It is the ability to receive flavour of substances by tasting it through sensory
organs known as taste buds.
5. Perception of other senses: They help in approving the perception through body, which includes
balance, acceleration, pain, time, sensation felt in throat and lungs etc.
6. Perception of the social world: It permits people to understand other individuals and. groups of
their social world.
“ELEMENTS OF PERCEPTION
The elements of perception are as follows:
1. Sensation : Sensation refers to the immediate response to received stimuli. Stimulus is any unit of
input to any of the senses. A stimulus generally includes products, packages, brand names,
advertisement and commercials. The sensory receptions are the human organ which includes eyes,
nose, ears, mouth and skin which receive sensory inputs and the sensory functions are to see, hear,
smell, taste and feel.
2. The Absolute Threshold: The lowest level where sensation can be attained is called the absolute
threshold. If a Person is being able to detect any difference between something and nothing is called
the absolute threshold for their particular stimulus. The adaptation indicates on refers to specially
getting used to some sensation which in turn being accommodated to a certain level of stimulation.
3. The Differential Threshold: The minimal difference which can be detected or can be found out
between two similar Stimuli is called differential threshold. This is also as j.n.d. Just noticeable
difference. According to Ernst Weber, between two stimuli was not an absolute amount but an
amount relative to the intensity of the first stimulus.
4. Subliminal Perception: The stimulus which are too weak or too brief to be consciously seen or
heard 1s not so strong enough which may be perceived by one or more receptor cells. This is known
as subliminal perception because the stimulus is below the threshold though not obviously below the
absolute threshold of the receptors involved.

FACTORS INFLUENCING PERCEPTION :

Perceiver When an individual looks at the object and attempts to interpret the same, what he or she
sees it is Jargely influenced by the personal characteristics. Perception is a matter of attitude that can
be positive of negative. Some workers would feel and perceive that the prevailing working
conditions in the organizations are congenial for work and it contributes positively while for others,
it would be inadequate and demand improvement.

b) Moods: Moods can have a strong influence on the way perceive someone. We think differently
when we are happy than we do when we are depressed. In addition, we remember information that is
consistent with our mood state better than information that is inconsistent with our mood state.
When in a positive mood, we form more positive impressions of other. When in a negative mood, we
tend to evaluate others unfavourably.
c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence on
their perceptions. For example, in an organizational context, a boss who is insecure perceives a sub
ordinates efforts to do an outstanding job as a threat to his or her own position.
d) Self-Concept: Another factor that can affect social perception is the perceiver’s self-concept An
individual with a positive self-concept tends to notice positive attributes in another person.
e) Interest: The focus of our attention appears to be influenced by our interests. Because oy,
individual interests differ considerably, what one person notices in a situation can differ from, what
other perceive.
f) Expectations: Finally, expectations can distort your perceptions in that you will see what you
expect to see.
Some specific characteristics of the perceiver reveal (i) Knowing oneself makes it easier to see
others accurately. (ii) One's own characteristics affect the characteristics one is likely to see in other.
2. Situation: Change in situation leads to incorrect perception about a person. Time is one factor,
which influences the perception. Time is related to work setting and social setting. A person decked
up for party may not be noticeable but the same dress in office would be noticed distinctly, though
the person has not changed. What is important to remember is the perception should be done in a
correct manner not to be led due to work setting or social setting and that the situation is not allowed
to perceive wrongly. An object can be identified by its size, shade, shape, sound it makes and
background, It can be distinguished based on its movement.
3. Objective / Target: Verbal Communication from targets also affects our perception of them.
Nonverbal ‘communications conveys a great deal of information about the target. The perceiver
deciphers eye contact, facial expressions, body movements and posture all in an attempt to form an
impression of the target.
Learning
Meaning of ‘Learning
Learning can be defined as a process that brings together cognitive, emotional and environmental
influences and experiences for acquiring, enhancing or making changes in one's knowledge, skills,
values and world views.

NATURE AND CHARACTERISTICS OF LEARNING

1. Learning is a fundamental process of life.
2. It is a continuous process it affects all modes of behaviour.
3. Learning is change in response or behaviour, may be favourable or unfavourable.
[Link] is a process of change not a product in the form of changed behaviour.
[Link] takes place when an Organism reacts in a situation.
6. earning is universal
7. Learning is total reaction of the individual to the total situation.
8. Learning is transferable.
9. Leaning is a process and not a product.
10. The process of learning is determined by conscious as well as unconscious experiences,
PRINCIPLES OF LEARNING
(i) Learning is active: Active learning goes beyond providing opportunities for hands-on
experiential learning. It involves engaging the learner’s mind as well as they are encouraged to
question and evaluate information critically. The emphasis on enquiry, processes and skills promotes
transference.
(ii) Learning is holistic: Learning is discipline-based but interconnectedness of knowledge is
promoted. Learning is also made more coherent with regular opportunities to see the connection of
learning to real life.
(iii) Learning requires met cognition: All learners are capable of being proactive, self-reflecting and
self-regulating. Met cognitive processes should be taught explicitly and opportunities must be made
available for learners to self-regulate.
(iv) Learning is social: Learning is influenced by social interactions, interpersonal relations and
communication with others
(v) Learning is contextual: Learning is facilitated by conducive environmental factors.
 ATTITUDE
MEANING OF ATTITUDE
Attitude refers to the predisposition or a tendency to respond positively or negatively towards a
Certain idea, object, person or situation. Attitude influences an individual's choice of action and
responses to challenges, incentives and rewards together called stimuli.
Definition of Attitude
According to Professors David krech and Richard crutchifield, “An attitude is an enduring -
organization of motivational, emotional, perceptual and cognitive processes with respect to some
aspect of the individual’s world.”

Consumer Attitude
Consumers are individuals with likes and dislikes. When the preponderance of people in a particular
group feel one way or another about a product, service, entity, person, place or thing, it is said to be
a generalized consumer attitude that could affect the marketing of that person, product or entity in
positive or negative ways. Marketers strive to influence consumer attitudes and understanding the
prevailing attitude is the first step to changing it if needed.
STRUCTURAL MODELS OF-ATTITUDES
1. The tri-component attitude model
2. The multi-attribute attitude model
3. The trying-to-consume model
4. The attitude-toward-the-ad model .

1. Tri-component Attitude Model :

According to the tri-component attitude mode, attitudes consist of three major components: a
cognitive component, an affective component and a co-native component.
a) The Cognitive Component "The knowledge and perceptions that are acquired by a combination of
direct experience with the attitude object and related information from various sources". The first
part of the tri-component attitude model consists of a person's cognitions, that is, the knowledge and
perceptions that are acquired by a combination of direct experience with the attitude object and
related information from various sources.
b) The Affective Component "A consumer's emotions or feelings about a particular product or
brand" A consumer's emotions or feelings about a particular product or brand constitute the affective
component of an attitude. These emotions and feelings are frequently treated by consumer
researchers as primarily evaluative in nature; that is, they capture an individual's direct or global
assessment of the attitude object (i.e., the extent to which the individual rates the attitude (object as
"favourable" or "unfavourable," "good" or "bad").
2. Multi-attribute Attitude Model
Multi-attribute attitude models portray consumers’ attitudes with regard to an attitude object (e.g., a
product, a service, a direct-mail Catalog or a cause or an issue) as a function of consumers’
perception and assessment of the key attributes or beliefs held with regard to the particular attitude
object.
a) The Attitude-Toward-Object: The attitude-toward-object model is especially suitable for measuring
attitudes toward a product (or service) category or specific brands. According to this model, the
consumer's attitude toward a product or specific brands of a product is a function of the presence (or
absence) and evaluation of certain product-specific beliefs and/or attributes.
b) The Attitude-Toward-Behaviour: The attitude-toward-behaviour model is the individual's attitude
toward behaving or acting with respect to an object rather than the attitude toward the object itself.
The appeal of the attitude-toward-behaviour model is that it seems to correspond somewhat more
closely to actual behaviour than does the attitude-toward-object model.

3, Theory of Trying-To-Consume Model

"An attitude theory designed to account for the many cases where the action or outcome is not
certain but instead reflects the consumer's attempt to consume (or purchase)".
There has been an effort underway to extend attitude models so that they might better accommodate
consumers’ goals as expressed by their "trying" to consume. The theory of trying to consume is
designed to account for the many cases in which the action or outcome is not certain put instead
reflects the consumer's attempts to consume (i.e., purchase). A classic example of trying ("got") to
consume is attempting to diet and lose weight.
4, Attitude-Toward-The-Ad Models
"A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions)
as the result of exposure to an advertisement, which, in turn, affect the consumer's attitude toward
the ad and attitude toward the brand”.

Nature of Consumer Attitudes

Consumer attitude refers to a learned tendency of an individual to evaluate products, services,
brands, or ideas in a consistently favorable or unfavorable way. According to the BCU syllabus, the
nature of consumer attitudes can be described through the following key points:
1. Learned Behaviour:
Attitudes are not innate; they are developed through experience, learning, and interaction with
the environment, including advertising, word of mouth, and personal experiences.
2. Consistent but Not Permanent:
While attitudes tend to be stable over time, they can change due to new information, persuasive
communication, or personal experiences.
3. Influence on Buying Behaviour:
Attitudes play a crucial role in shaping consumer behaviour, as they influence how a consumer
feels, thinks, and acts toward a product or brand.
4. Attitude Has Three Components (ABC Model):
Affective (Feelings) – Emotional response toward a product.
Behavioural (Actions) – The intention or actual behaviour towards purchasing.
Cognitive (Beliefs) – Knowledge and beliefs about a product or brand.
5. Directional and Intensity-Based: Attitudes can be positive or negative (directional), and they
can vary in strength (intensity), affecting how strongly a consumer supports or rejects a product.
Theories of Attitude Change
1. Consistency Theory
Consistency theory says people like their thoughts, beliefs, and actions to match. If there’s a mismatch
(inconsistency), they feel uncomfortable and try to change their attitude or behavior to restore balance.
For example, if someone thinks healthy eating is good but eats junk food, they might change their eating
habits or justify their choice to reduce the discomfort (called cognitive dissonance).

2. Learning Theory
Learning theory explains attitude change through experience. It includes classical conditioning
(associating a product with something positive), operant conditioning (rewards or punishments), and
observational learning (copying others). For example, if someone gets compliments after using a
perfume, they form a positive attitude toward it. Over time, repeated positive experiences help shape or
change consumer attitudes toward products or brands.

3. Social Judgment Theory

This theory says people compare new information to what they already believe. If the message is close
to their belief, they may accept it (latitude of acceptance). If it’s too different, they reject it (latitude of
rejection). There’s also a “neutral zone” (latitude of non-commitment). Marketers need to present
messages that aren’t too far from what people already think, to encourage attitude change.

4. Functional Theory
Functional theory says people hold attitudes because they serve a purpose. There are four main
functions:
• Utilitarian (rewards/punishments),
• Ego-defensive (protects self-image),
• Value-expressive (reflects beliefs), and
• Knowledge (organizes understanding).
For example, someone supports eco-friendly products (value-expressive) or prefers a brand
because it’s reliable (utilitarian). Changing the function behind the attitude can lead to attitude
change.