Consumer Behaviour

Consumer Behaviour is the study of consumers' actions during searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will satisfy their needs.

ADVENT OF CB

Marketing Concept and Consumer Behaviour

Marketing and consumer behaviour stems from marketing concept, which maintains that the
essence of marketing consists of satisfying consumer needs, creating value, and retaining
customers.

It maintains that the companies must produce only those goods that they are already
determined that consumers would buy.

Production Concept
The production concept, a business approach conceived by Henry Ford, maintains that
consumers are mostly interested in product availability at low prices.

Its implicit marketing objectives are cheap, efficient production, and intensive distribution.

This approach makes sense when consumers are more interested in obtaining the product than
they are in specific features, and will buy what's available rather than wait for what they really
want.

Product Concept
As more and more companies studied consumer customers' needs and offered products that
satisfied them well, companies began offering more and more versions, models, and features
often indiscriminately.

They were guided by the product concept, which assumes that consumers will buy the product
that offers them the highest quality, the best performance, and the most features.

A product orientation leads the company to strive continuously to improve the quality of its
product and add new features and make it technically feasible.
A product orientation approach but often leads to marketing myopia, that is a focus on the
product rather than on the needs it presumes to satisfy.

It is called as looking in the mirror rather than through the window.

Selling Concept
Evolving from the production concept and the product concept, the selling concept maintains
that the marketer's primary focus is selling the products that they have decided to produce.

The assumption of the selling concept is that the consumers are unlikely to buy the product
unless they are aggressively persuaded to do so, mostly through a hard sell approach.

This approach does not consider customer satisfaction because consumers who are
aggressively induced to buy products they do not want or need or products of low quality will not
buy them again.

STP

Bases for Segmentation

A segmentation strategy begins by dividing the market for a product into groups that are
different from other groups.

Generally, segmentation characteristics can be classified into two types: behavioral and
cognitive.

Behavioral data is evidence-based; it can be determined from direct questioning or observation

and categorized using specific, easily identifiable criteria, such as demographics and usage
rates.

1.​ Consumer-intrinsic factors, such as a person’s age, gender, marital status, income, and
education.
2.​ Consumption-based factors, such as the quantity of a product purchased, frequency of
leisure activities, or frequency of buying a given product.

Cognitive factors are abstract, reside in the consumer’s mind, can be determined only through
psychological and attitudinal questioning, and generally have no single, universal definitions,
and consist of:
 1.​ Consumer-intrinsic factors, such as personality traits, cultural values, and attitudes
towards politics and social issues.
2.​ Consumption-specific attitudes and preferences, such as the attitudes towards products
and attitudes regarding shopping.

Segmentation Types
Geographic Segmentation

Where a person lives determines some aspects of consumption behavior.

For example, climates determine the types of clothing most people own, and fashions and styles
in large cities are often very different from those in nonurban areas.

Local customers, as opposed to visiting tourists, are also a distinct segment.

Demographic Segmentation

Demographic segmentation divides consumers according to age, gender, ethnicity, income,

occupation, marital status, household type and size, and geographical location.

These variables are objective, empirical, and can be determined easily through questioning or
observation.

Psychological Segmentation

Cognitive factors are abstract, reside in the consumer’s mind, can be determined only through
psychological and attitudinal questioning, and generally have no single, universal definitions.

Psychographic Segmentation

In marketing, lifestyles are named psychographics, which include consumers’ activities,

interests, and opinions.

Sociocultural Segmentation
Marketers segment some populations on the basis of cultural heritage and ethnicity because
members of the same culture tend to share the same values, beliefs, and customs.

Social class is an important base for market segmentation in the form of a weighted index of
education, occupation, and income.

Use-Related Segmentation

Usage rate segmentation is reflects the differences among heavy, medium, and light users, and
nonusers of a specific product, service, or brand.

Marketers of many products, such as soup, laundry detergent, beer, and dog food, have found
that a relatively small group of heavy users accounts for a disproportionately large percentage
of the total product usage.

Usage Situation Segmentation

Vicco turmeric cream used the occasion of “marriage” as a segmentation base decades back.

Marie biscuits have been associated with tea time or family time by Indian brands.

Benefit Segmentation

Benefit segmentation is based on the benefits that consumers seek from products and services.

The benefits that consumers look for represent unfilled needs.

Hybrid Segmentation

The most popular use of geography in strategic targeting is geodemographics, a hybrid

segmentation scheme based on the premise that people who live close to one another are likely
to have similar financial means, tastes, preferences, lifestyles, and consumption habits.
VALS Framework (Values and Lifestyles)
VALS™ (an acronym for "values and lifestyles") is the most popular segmentation system
combining lifestyles and values.

Drawing on Maslow's need hierarchy and the concept of a person's "social character",
researchers at Strategic Business Insights developed a segmentation scheme of the American
population known as VALS.

It classifies America's adult population into eight distinctive subgroups (segments) based on
consumer responses to both attitudinal and demographic questions.

Examining the diagram from left to right, there are three primary motivations:

●​ the ideals motivated (these consumer segments are guided by knowledge and
principles)
●​ the achievement motivated (these consumer segments are looking for products and
services that demonstrate success to their peers)
●​ the self-expression motivated (these consumer segments desire social or physical
activity, variety, and risk)

Examining the diagram from top to bottom, the diagram reveals a continuum in resources and
innovation—that is, high resources–high innovation (on the top) to low resources–low
innovation.
 SEGMENT MOTIVATION AND VALUES AND CONSUMPTION PATTERNS
NAME RESOURCES

Innovators Abundant resources; Successful, sophisticated, and curious.

motivated by ideals, Receptive to new ideas and technologies, and
achievement, buy niche products and services. Cultivate tastes
self-expression, and for the finer things in life.
self-esteem.
Thinkers Motivated by ideals and Mature, satisfied, and comfortable; value order
have solid resources. and responsibility. Well educated and informed
about world, wish to broaden their horizons and
open to new ideas. Practical consumers, who
look for durability, functionality, and value in
products.

Believers Motivated by ideals and Conservative, conventional with traditional

have moderate beliefs, whose priorities are family, religion, and
resources. community. Follow routines focused on their
homes, families, and social or religious
organizations.

Achievers Motivated by desire for Goal-oriented and committed to career and

achievement and have family. Fa vor predictability and stability. As
solid resources. consumers, they favor products that demonstrate
success to their peers.

Strivers Motivated by Trendy and fun loving, and seek approval from
achievement and have others. Do not have enough resources to meet
moderate resources. their desires and impulsively buy stylish products
that emulate the purchases of people with
greater material wealth. Lack the skills needed to
move ahead.

Experiencer Motivated by Young, enthusiastic, and impulsive consumers

s self-expression and have who seek variety and excitement and savor the
solid resources. new, offbeat, and risky. Favor exercise, sports,
outdoor recreation, and social activities. Spend a
lot on fashion and entertaining and concerned
about appearing “cool.”
 Makers Motivated by Express themselves by building houses, raising
self-expression and have children, and fixing cars. Practical people, who
moderate resources. value self-sufficiency, live traditionally, and have
little interest in what lies beyond their family lives.
Prefer value products rather than luxury.

Survivors No strong primary Live narrowly focused lives and often believe that
motivation and low the world is changing too quickly. Comfortable
resources. with the familiar and concerned with safety and
security. Brand loyal and seek discounts. As a
group, they are a modest market for most
products and services.

Consumer Motivation and Personality

Motivation
Motivation is the driving force that impels people to act.

It represents the reasons one has for acting or behaving in a particular way.

The Dynamics of Motivation

Motivation drives consumers to buy and is triggered by psychological tension caused by
unfulfilled needs.
Individuals strive both consciously and subconsciously to reduce this tension through selecting
goals and subsequent behavior that they anticipate will fulfill their needs and thus relieve them
of the tension they feel.

Whether gratification is actually achieved depends on the course of action pursued.

The foundation of marketing is identifying and satisfying needs.

Marketers do not create needs, although in many instances they strive to make consumers
more keenly aware of unfelt or dormant needs.

Savvy companies define their business in terms of the consumer needs they satisfy rather than
the products they produce and sell.

The Motivation Process (Figure 3.3)

Unfulfilled Needs, Wants, and Desires → Tension → Drive → Behavior → Goal or Need
Fulfillment → Tension Reduction

Personality, perception, learning, and attitudes influence behavior.

Needs
There are two types of human needs:

Physiological needs

Physiological needs are innate (biogenic, primary) and fulfilling them sustains biological
existence.

They include the need for food, water, air, protection of the body from the outside environment
(i.e., clothing and shelter), and sex.

Psychological needs

Psychological needs are learned from our parents, social environment, and interactions with
others.

They include the needs for self-esteem, prestige, affection, power, and achievement.
Both types of needs affect our buying decisions.

Goals
Goals are the sought-after results of motivated behavior, and all human behavior is goal
oriented.

There are two types of goals:

Generic goals

Generic goals are outcomes that consumers seek in order to satisfy physiological and
psychological needs.

Product-specific goals

Product-specific goals are outcomes that consumers seek by using a given product or service.

Need Arousal
Most of an individual’s needs are dormant much of the time.

The arousal of any need at a specific moment in time may be caused by biological stimuli,
emotional or cognitive processes, or stimuli in the outside environment.

A drop in blood sugar level or stomach contractions will trigger awareness of a hunger need.

A decrease of body temperature will induce shivering, which makes the individual aware of the
need for warmth.

Most of these physiological cues are involuntary.

In cognitive arousal, random thoughts can lead to awareness of a need to act.

Many promotional messages are cues designed to arouse consumer needs.

Selecting Goals
Goals are meant to fulfil needs

For any given need there are many diff goals. Also, Usually, consumers set purchase-related
goals that satisfy more than one need.

People with different needs may seek fulfillment by selecting the same goal, and people with the
same needs may seek fulfillment via different goals.

The goals that individuals select depend on those individuals’ personal experiences and
knowledge, physical capacity, prevailing cultural norms and values, and the goal’s accessibility
in the individuals’ physical and social environments.

The motivation to select goals can be either positive or negative.

Positive and Negative Motivation

Positive outcomes that we seek are called approach objects.

Negative outcomes that we want to prevent are called avoidance objects.

Types of Motivational Conflicts

Approach – Approach Conflict (+ / +)

(+) ← Approach – Approach → (+)

Want this & that

Approach – Avoidance Conflict (+ / -)

(+) ← Approach – Avoidance → (-)

(want chocolate but avoid calories)

Avoidance – Avoidance Conflict (- / -)

(-) ← Avoidance – Avoidance → (-)

(buying a new car & repairing the existing one)

“Theory of Cognitive Dissonance”

Dissonance between value & behaviour

Needs and Goals Are Interdependent

Needs and goals are interdependent; neither exists without the other.

However, people are often not as aware of their needs as they are of their goals.

Needs Are Never Fully Satisfied

Human needs are never fully or permanently satisfied.

As individuals attain their goals, they develop new ones.

New Needs Emerge as Old Ones Are

Satisfied
New, higher-order needs emerge as lower-order needs are fulfilled.
Success and Failure Influence Goals
Individuals who achieve their goals usually set new and higher goals.

Those who do not reach their goals sometimes lower their aspirations.

Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs consists of five levels of human needs, which rank in order of
importance from lower-level (biogenic) needs to higher-level (psychogenic) needs.

The lowest level of unsatisfied needs motivates a person’s behavior.

When that need is fairly well satisfied, the individual is motivated to fulfill a need in the next level
of the hierarchy.

Levels of Maslow’s Hierarchy

1.​ Physiological Needs
2.​ Safety and Security Needs
3.​ Social Needs
4.​ Ego Needs
5.​ Self-Actualization

Maslow’s hierarchy has been a highly useful framework for marketers.

It is adaptable to market segmentation and the development of advertising and other marketing
communications appeals.

A Trio of Needs
Another framework for organizing human needs is known as the trio of needs: the needs for
power, affiliation, and achievement.

Individually, each of the three needs can affect consumer motivation.

Power
The power need is an individual’s desire to control his or her environment.

It includes the need to control other persons and various objects.

This need appears to be closely related to the ego need, in that many individuals experience
increased self-esteem when they exercise power over objects or people.

Affiliation
Affiliation is a well-researched social motive that significantly influences consumer behavior.

The affiliation need is very similar to Maslow’s social need and suggests that behavior is
strongly influenced by the desire for friendship, acceptance, and belonging.

People with high affiliation needs tend to be socially dependent on others and often buy goods
that they feel will meet with the approval of friends.

Teenagers who hang out at malls or techies who congregate at computer shows often do so
more for the satisfaction of being with others than for the purpose of making a purchase.

Achievement
Individuals with a strong achievement need often regard personal accomplishment as an end in
itself.

They are self-confident, enjoy taking calculated risks, actively research their environments, and
value feedback, often in the form of monetary rewards.

People with high achievement prefer situations in which they can take personal responsibility for
finding solutions.

The Measurement of Motives

How are motives identified? How are they measured? How do researchers know which motives
are responsible for certain kinds of behavior?

These are difficult questions to answer because motives are hypothetical constructs; that is,
they cannot be seen or touched, handled, smelled, or otherwise tangibly observed.

For this reason, no single measurement method can be considered a reliable index of
motivation.

Instead, researchers usually rely on a combination of research techniques when trying to

establish the presence and/or the strength of various motives.

By combining several research methods—including responses to questionnaires or survey data

and insights from focus group sessions and depth interviews—consumer researchers achieve
more valid insights into consumer motivations than they would by using any single technique.

Self-Reporting
Self-reported measures of motives consist of written statements which ask respondents to
indicate how relevant each statement is to them.

The researchers administering these measures politely ask respondents not to think too much
before providing their answers because, if they do so, they might figure out what the statements
measure and not answer honestly.

If used correctly, self-reported measures assess people’s motives fairly accurately.

Qualitative Research
Frequently, respondents may be unaware of their motives, or may be unwilling to reveal them
when asked directly.

In such situations, researchers use qualitative research to delve into the consumer’s
unconscious or hidden motivations.

Many qualitative methods are also termed projective techniques because they require
respondents to interpret stimuli that do not have clear meanings, based on the assumption that
the subjects will “reveal” or “project” their subconscious, hidden motives onto the ambiguous
stimuli.
Motivational Research
The term motivational research refers to qualitative studies conducted to uncover consumers’
subconscious or hidden motivations.

Based on the premise that consumers are not always aware of the reasons for their actions,
motivational research attempted to discover underlying feelings, attitudes, and emotions
concerning product, service, or brand use.

PERSONALITY
1. Meaning of Personality
●​ Personality consists of the inner psychological characteristics that both determine
and reflect how we think and act.
●​ These characteristics include specific qualities, attributes, traits, factors, and
mannerisms that distinguish one individual from another.
●​ Personality influences consumer behavior, including how individuals respond to
marketing efforts and how they consume products or services.
●​ The identification of personality characteristics helps marketers in market segmentation
and promotional strategies.

2. The Facets of Personality

●​ Psychological research into personality has not been uniform, as different researchers
emphasize different factors.
●​ Some researchers focus on heredity and childhood experiences, while others
emphasize social and environmental influences.
●​ Some theorists view personality as a unified whole, whereas others focus on specific
traits.

Despite differences, researchers agree on three key points:

●​ Personality reflects individual differences.

●​ Personality is consistent and enduring.
 ●​ Personality can change under certain circumstances.

3. Personality Reflects Individual Differences

●​ The inner characteristics that constitute personality are a unique combination of
factors, so no two individuals are exactly alike.
●​ However, many individuals may share similar personality traits, although in different
degrees.
●​ For example, some consumers may be high in ethnocentrism (unwilling to buy foreign
products), while others may be low.
●​ Personality enables marketers to categorize consumers into segments based on
traits.
●​ Consumers in one segment may score high on a trait, while others may score low on
the same trait.

4. Personality is Consistent and Enduring

●​ Personality tends to be stable over time, showing both consistency and endurance.
●​ For example, a person who cared about appearance from childhood may continue this
trait into adulthood.
●​ This consistency helps marketers predict consumer behavior.
●​ However, marketers cannot change personalities, but they can target products to
match personality traits.
●​ For example, marketers can design campaigns that appeal specifically to innovative
consumers.

5. Personality May Change

●​ Although personality is generally enduring, it can change due to major life events.
●​ Events such as marriage, childbirth, death of a parent, or career changes can
influence personality.
●​ Personality may also change through a gradual maturation process.
●​ For example, individuals may become more mature and open to different viewpoints
over time.
6. Theories of Personality
●​ There are three major theories of personality:
1.​ Freudian Theory
2.​ Neo-Freudian Theory
3.​ Trait Theory

A. Freudian Theory
●​ Freudian theory states that unconscious needs and drives are at the heart of human
motivation and personality.
●​ These drives are largely biological and instinctual, including hunger, thirst, and sexual
drives.
●​ Freud developed this theory based on patients’ recollections of childhood
experiences and dreams.

Structure of Personality (Three Systems)

1. Id

●​ The id is the warehouse of primitive and impulsive drives.

●​ It operates on the pleasure principle, seeking immediate gratification.
●​ It includes basic needs such as hunger, thirst, and sex.
●​ The id is selfish, impulsive, and unconcerned with consequences.

2. Superego

●​ The superego represents internalized moral and ethical standards of society.

●​ It acts as a moral guide, determining what is right or wrong.
●​ It ensures that individuals satisfy needs in a socially acceptable manner.
●​ It acts as a brake on the impulsive id.

3. Ego

●​ The ego is the conscious control system of personality.

●​ It functions as a mediator between the id and superego.
●​ It balances impulsive desires and social constraints.
●​ It operates on the reality principle.

Marketing Implications (Freudian Theory)

●​ Advertisements often appeal to hidden desires and subconscious motives.

 ●​ Products may be positioned to satisfy deep emotional or symbolic needs.
●​ Example: Ads using sensuality, fantasy, or status appeal target the id.

NEO-FREUDIAN PERSONALITY THEORY

(FULL – BOOK STYLE, NO
COMPRESSION)
●​ Neo-Freudian theory maintains that, in addition to Freud’s concepts, social
relationships play a crucial role in the development of personality.
●​ Several of Freud’s colleagues disagreed with his view that personality is primarily
instinctual and sexual in nature.
●​ These theorists believed that social relationships are fundamental to the formation
and development of personality.

Alfred Adler’s View

●​ Alfred Adler believed that human beings are motivated by a desire to overcome
feelings of inferiority.
●​ He suggested that individuals strive to achieve superiority and personal excellence.
●​ He emphasized that people work toward rational goals and attempt to improve
themselves continuously.

Harry Stack Sullivan’s View

●​ Harry Stack Sullivan emphasized that people continuously attempt to establish

significant and rewarding relationships with others.
●​ He believed that individuals try to reduce tensions such as anxiety through
interpersonal relationships.
●​ According to Sullivan, personality is shaped through social interactions and
relationships over time.

Karen Horney’s Contribution

●​ Karen Horney was interested in anxiety and the impact of child–parent relationships
on personality development.
 ●​ She proposed that individuals can be classified into three personality groups based on
how they cope with anxiety.

Horney’s Three Personality Types (CAD Model)

1. Compliant Individuals

●​ Compliant individuals are those who move toward others.

●​ They have a strong desire to be loved, wanted, and appreciated.
●​ They seek affection, approval, and acceptance from others.

2. Aggressive Individuals

●​ Aggressive individuals are those who move against others.

●​ They desire to excel, gain admiration, and achieve success.
●​ They often display competitiveness and a need for power.

3. Detached Individuals

●​ Detached individuals are those who move away from others.

●​ They seek independence, self-reliance, and self-sufficiency.
●​ They prefer to avoid social obligations and emotional involvement.

CAD Personality Test

●​ Researchers developed a personality test based on Horney’s theory called the CAD test
(Compliant, Aggressive, Detached).
●​ This test was used to study the relationship between personality types and consumer
behavior.

Consumer Behavior Applications

●​ Research found relationships between personality types and product preferences.

●​ For example:
○​ Highly compliant consumers preferred brands like Old Spice deodorant.
 ○​ Highly aggressive consumers preferred products with a masculine or
dominant appeal.
○​ Detached consumers showed preferences reflecting non-conformity and
independence.

●​ Marketers use neo-Freudian theory to position products in ways that align with
consumers’ social needs.
●​ Products and services can be marketed as providing:
○​ A sense of belonging (for compliant consumers)
○​ A sense of achievement or dominance (for aggressive consumers)
○​ A sense of independence (for detached consumers)

TRAIT THEORY (FULL – BOOK STYLE, NO

COMPRESSION)
●​ Trait theory represents a departure from the qualitative and non-empirical
approaches of Freudian and neo-Freudian theories.
●​ Trait theory focuses on empirical measurement of personality.
●​ It defines personality in terms of specific psychological characteristics called traits.

Meaning of Traits

●​ Traits are distinctive personal characteristics or features that set one individual apart
from another.
●​ These traits are measurable and quantifiable.
●​ Trait theorists are interested in identifying how individuals differ in terms of specific
traits.

Measurement of Traits

●​ Trait theorists use personality tests or inventories to measure traits.

●​ These tests classify individuals based on their scores on specific personality
characteristics.
 ●​ Individuals may score high or low on a particular trait, which helps in segmentation.

Single-Trait vs Multi-Trait Approaches

●​ Some personality tests focus on a single trait, such as innovativeness.

●​ Other tests measure multiple traits simultaneously to give a more complete
personality profile.
●​ Multi-trait approaches provide a broader understanding of consumer behavior.

Examples of Traits Measured in Consumer Behavior

●​ Innovativeness
●​ Materialism
●​ Ethnocentrism

Relevance of Trait Theory in Consumer Behavior

●​ Researchers have found that personality traits are related to consumption patterns of
broad product categories, rather than specific brands.
●​ For example:
○​ A trait may influence whether a person consumes a category (like peanut
butter),
○​ But may not determine which specific brand they choose.

●​ Marketers study personality traits because this knowledge helps them to:
○​ Segment consumers effectively
○​ Develop targeted advertising messages
○​ Design products that match consumer personalities

●​ Trait-based segmentation allows marketers to identify groups of consumers with

similar behavioral tendencies.
●​ This helps in creating more effective marketing strategies and improving product
positioning.
Transition to Consumer Traits

●​ Trait theory provides the foundation for studying specific consumer personality traits.
●​ These traits include:
○​ Consumer innovativeness
○​ Dogmatism
○​ Social character
○​ Materialism
○​ Ethnocentrism

Brand Personification
Brand personification occurs when consumers attribute human traits or characteristics to a
brand.

A “brand personality” provides an emotional identity for a brand, which produces sentiments and
views toward it among consumers.

Consumers often view certain brands as “exciting,” “sophisticated,” or “warm.”

Brand personification is a form of anthropomorphism, which refers to attributing human

characteristics to something that is not human.

CONSUMER PERSONALITY TRAITS

1. Consumer Innovativeness
●​ Consumer innovativeness refers to the degree to which consumers are receptive to
new products and services.
●​ Innovators are consumers who are among the first to try new products when they are
introduced in the market.
●​ These consumers play an important role because they influence the diffusion and
adoption of new products among other consumers.
●​ Consumer innovativeness is linked to the willingness to take risks and try unfamiliar
offerings.

2. Dogmatism
●​ Dogmatism is a personality trait that reflects the degree of rigidity or openness toward
new ideas and information.
 ●​ Highly dogmatic individuals tend to be closed-minded and resistant to change.
●​ Less dogmatic individuals tend to be open-minded and receptive to new experiences.

Characteristics of Highly Dogmatic Consumers

●​ They prefer familiar products and established brands.

●​ They respond well to authority figures and expert opinions in advertisements.
●​ They are less likely to experiment with new or unfamiliar products.

Characteristics of Low Dogmatic Consumers

●​ They are more willing to try new products and innovations.

●​ They respond better to informative and logical advertising messages.
●​ They are more open to change and new experiences.

3. Social Character
●​ Social character refers to the way individuals relate to others in society and how this
affects their consumption behavior.
●​ It classifies individuals into two types based on their orientation.

Inner-Directed Consumers

●​ Inner-directed consumers rely on their own values and internal standards when
making decisions.
●​ They prefer products that offer functional benefits and personal satisfaction.
●​ Their choices are influenced more by personal beliefs than social approval.

Other-Directed Consumers

●​ Other-directed consumers rely on the opinions and expectations of others.

●​ They prefer products that enhance social acceptance and group belonging.
●​ Their purchase decisions are influenced by trends, peers, and social norms.
5. Consumer Materialism
●​ Materialism is a personality trait that reflects the importance a consumer places on
possessions and material goods.
●​ Materialistic consumers believe that acquiring and owning products leads to
happiness and success.

Characteristics of Highly Materialistic Consumers

●​ They judge success based on the quantity and quality of possessions.

●​ They derive satisfaction from buying and owning products.
●​ They often use products to display status and achievement.
●​ They may experience lower levels of life satisfaction despite high consumption.

Characteristics of Less Materialistic Consumers

●​ They place less importance on material possessions.

●​ They focus more on experiences and relationships.
●​ They derive satisfaction from non-material aspects of life.

6. Consumer Ethnocentrism
●​ Consumer ethnocentrism refers to the belief that purchasing foreign-made products
is inappropriate or even immoral.
●​ Highly ethnocentric consumers prefer to buy domestic products because they believe
it supports the local economy.

Characteristics of Ethnocentric Consumers

●​ They view foreign products as harmful to domestic industries and employment.

●​ They feel a sense of patriotism and moral obligation toward buying local products.
●​ They are less likely to accept or trust foreign brands.
Marketing Implications

●​ Marketers can position domestic products by emphasizing national pride and

economic benefits.
●​ Foreign brands may need to adapt strategies to overcome ethnocentric resistance.

THE SELF AND SELF-IMAGE

●​ The concept of the self is based on the idea that consumers have a perception of
themselves, and this perception influences their attitudes and behavior.
●​ Self-image refers to the totality of an individual’s thoughts and feelings about
themselves as an object.
●​ Consumers tend to purchase products and brands that are consistent with their
self-image.
●​ The way consumers see themselves affects what they buy, how they use products,
and how they respond to marketing messages.

Types of Self-Image
1. Actual Self-Image

●​ Actual self-image refers to the way consumers actually see themselves.

●​ It reflects their real characteristics, abilities, and attributes.
●​ Consumers may choose products that match their current self-perception.

2. Ideal Self-Image

●​ Ideal self-image refers to the way consumers would like to see themselves.
●​ It represents their aspirations, goals, and desired identity.
●​ Consumers often purchase products that help them move closer to their ideal self.

3. Social Self-Image

●​ Social self-image refers to the way consumers believe others see them.
●​ It is influenced by social interactions and expectations.
 ●​ Consumers may choose products that help them create a favorable impression on
others.

EXTENDED SELF
●​ The extended self refers to the idea that consumers view their possessions as a part
of themselves.
●​ Products and brands become an extension of the consumer’s identity.
●​ Consumers use possessions to express who they are and how they want to be
perceived.

CONSUMER PERCEPTION
Meaning of Perception

●​ Perception is the process by which individuals select, organize, and interpret stimuli
into a meaningful and coherent picture of the world.
●​ Perception can be described as how consumers see and understand the world
around them.
●​ Two individuals exposed to the same stimulus may interpret it differently based on
their personal factors.
●​ Perception is a highly individual process because it depends on a person’s needs,
values, expectations, and experiences.
●​ Consumers act based on their perceptions and not objective reality.
●​ Reality for each consumer is subjective and personal.
●​ From a marketing perspective, what consumers perceive is more important than
what is actually true.
●​ Consumer decisions and buying behavior are influenced by their perceived reality.

ELEMENTS OF PERCEPTION
●​ Perception is based on subjective understanding rather than objective facts.
 ●​ Changing consumers’ perceptions is difficult because they rely on existing beliefs and
experiences.
●​ Even if a product improves, consumers may still perceive it based on past impressions.

ABSOLUTE THRESHOLD
●​ The absolute threshold is the minimum level of stimulus intensity required for a
person to detect a sensation.
●​ It represents the difference between “something” and “nothing.”
●​ Different individuals have different absolute thresholds.
●​ Continuous exposure to a stimulus increases the threshold because the senses become
less sensitive over time.

SENSORY ADAPTATION
●​ Sensory adaptation refers to getting used to a stimulus after continuous exposure.
●​ As exposure increases, consumers become less responsive and may stop noticing
the stimulus.
●​ Repetitive advertisements often lead to reduced attention and effectiveness.

Exam Question: Strategies to Overcome Sensory Adaptation (VERY

IMPORTANT)

General Strategies

●​ Marketers should change advertisements frequently to avoid boredom.

●​ Marketers should introduce variety in visuals, messages, and formats.
●​ Marketers should use multi-sensory inputs such as sound, visuals, and interactivity.
●​ Marketers should use unexpected or surprising elements to regain attention.

Strategies in E-commerce / E-marketplaces

●​ Platforms can use dynamic banners that change frequently instead of static ads.
 ●​ Platforms can personalize content using AI-based recommendations to keep it
relevant.
●​ Websites can use interactive elements such as hover effects, videos, and animations.
●​ Push notifications should be timely and varied instead of repetitive.
●​ Brands can use limited-time offers or flash sales to create urgency.
●​ Platforms can rotate product displays to avoid visual fatigue.

AMBUSH MARKETING
●​ Ambush marketing places ads in locations where consumers do not expect them.
●​ These ads are difficult to ignore and capture attention effectively.

EXPERIENTIAL MARKETING
●​ Experiential marketing allows consumers to interact with products directly.
●​ It creates sensory and emotional engagement.
●​ It helps in building strong brand relationships.

DIFFERENTIAL THRESHOLD (JND)

●​ The differential threshold is the minimum difference between two stimuli that
consumers can detect.
●​ It is also called the Just Noticeable Difference (JND).

WEBER’S LAW
●​ Weber’s Law states that the greater the initial stimulus, the greater the change
needed for the difference to be noticed.
●​ This means perception of change is relative, not absolute.
●​ Weber’s Law explains the relationship between the change in stimulus and the
original intensity of the stimulus.
●​ It states that the size of the least detectable change in intensity is a constant
proportion of the original stimulus.
●​ This means that the stronger the initial stimulus, the greater the change required
for the difference to be noticed.

Formula of Weber’s Law

●​ I represents the original stimulus intensity.
●​ ΔI\Delta IΔI represents the minimum change required (JND).
●​ k represents a constant (Weber fraction).

Understanding the Logic

●​ If the original stimulus is small, even a small change will be noticeable.
●​ If the original stimulus is large, a larger change is required to be noticed.
●​ Therefore, perception of change is relative, not absolute.

NUMERICAL EXAMPLE (YOUR CLASS TYPE)

●​ Given: Original stimulus I=70gI = 70gI=70g
●​ Weber constant k=0.2k = 0.2k=0.2
●​ Using the formula:

k=ΔIIk = \frac{\Delta I}{I}k=IΔI​

●​ Substituting values:

0.2=ΔI700.2 = \frac{\Delta I}{70}0.2=70ΔI​

●​ Therefore:

ΔI=0.2×70=14g\Delta I = 0.2 \times 70 = 14gΔI=0.2×70=14g

INTERPRETATION (VERY IMPORTANT FOR EXAM)

●​ The minimum detectable change is 14g.
 ●​ This means any change less than 14g will not be noticed by consumers.
●​ Therefore, to make a noticeable difference, the change must be at least 14g or
more.

APPLICATIONS OF JND (VERY

IMPORTANT FOR EXA MS)
Pricing Strategy

●​ Price increases should be kept below the JND so consumers do not notice them easily.
●​ Price reductions should be above the JND so consumers clearly notice savings.

Product Strategy

●​ Negative changes such as reducing quantity or quality should be below the JND.
●​ Positive changes such as improvements in features should exceed the JND.

Branding Strategy

●​ Logo and packaging changes should be gradual and below the JND to maintain
recognition.
●​ Sudden drastic changes may lead to consumer rejection.

SUBLIMINAL PERCEPTION
●​ Subliminal perception occurs when stimuli are below conscious awareness but still
processed by the brain.
●​ These stimuli are too weak or brief to be consciously noticed.
●​ Research shows subliminal messages do not significantly influence behavior.
PERCEPTUAL SELECTION
●​ Consumers are exposed to many stimuli but perceive only a limited number.
●​ Perception is selective based on needs, expectations, and past experiences.
●​ The probability of noticing a stimulus depends on:
○​ Consumer’s motives
○​ Consumer’s experience
○​ Nature of the stimulus

THE STIMULUS (ATTENTION FACTORS)

●​ Stimuli that have contrast, size, color, or movement attract attention.
●​ Unexpected or shocking stimuli are more noticeable.
●​ Advertisers use contrast to break through the perceptual clutter.

EXPECTATIONS
●​ Consumers tend to perceive things based on what they expect to see.
●​ Expectations are formed through past experiences and beliefs.

DYNAMICS OF PERCEPTION
Perception is not a single-step process.​
It is a continuous process consisting of three stages: Selection → Organization →
Interpretation.

1. PERCEPTUAL SELECTION
●​ Perceptual selection refers to the process by which consumers choose certain stimuli
to pay attention to while ignoring others.
●​ Consumers are exposed to a large number of stimuli, but they select only a few based
on relevance.
●​ The selection of stimuli is influenced by several factors.

Factors Influencing Selection

●​ Previous experience influences what consumers notice because they tend to focus on
familiar stimuli.
●​ Motives influence perception because consumers are more likely to notice stimuli that
are relevant to their needs and desires.
●​ Nature of stimulus affects attention because size, color, contrast, and movement
attract attention.
●​ Expectations influence perception because consumers tend to see what they expect to
see.

2. PERCEPTUAL ORGANIZATION (GESTALT

PRINCIPLES)
●​ After selecting stimuli, consumers organize them into meaningful patterns.
●​ This organization helps simplify complex information into easily understandable forms.
●​ Gestalt psychology explains how consumers organize perceptions.

A. Figure and Ground

●​ Consumers tend to separate a stimulus into figure (main focus) and ground
(background).
●​ The figure represents what marketers want consumers to focus on.
●​ The ground represents the background elements that support the figure.
●​ Example: In an advertisement, the product is the figure, while the background visuals
act as the ground.
●​ Misinterpretation can occur if the ground becomes more dominant than the figure.

B. Grouping

●​ Grouping refers to the tendency to organize similar stimuli together.

●​ Consumers perceive items as a group based on similarity, proximity, or continuity.
●​ Marketers use grouping to associate products with certain lifestyles or categories.
●​ Example: Products placed together in a store create a perception that they are related
or complementary.

C. Closure

●​ Closure refers to the tendency of consumers to fill in missing information to complete

a picture.
●​ Consumers mentally complete incomplete images to make them meaningful.
●​ Marketers use closure to create curiosity and higher involvement.
●​ Example: Incomplete logos or ads encourage consumers to think and engage more
deeply.

3. PERCEPTUAL INTERPRETATION
●​ Interpretation refers to the process by which consumers assign meaning to stimuli.
●​ Interpretation is highly subjective and varies from person to person.

Factors Influencing Interpretation

●​ Clarity of stimulus affects interpretation because clear and simple messages are
understood easily.
●​ Physical appearance influences perception because consumers often judge based on
looks, packaging, or presentation.
●​ Stereotypes influence interpretation because consumers form perceptions based on
pre-existing beliefs or assumptions.

Example (as per your notes)

●​ Physical appearance plays a major role in interpretation.

●​ For example, a product endorsed by a “girl next door” type personality may be perceived
as trustworthy and relatable, especially for products like acne solutions.
vCONSUMER ATTITUDE – COMPLETE
NOTES (EXAM FORMAT, FULL
STATEMENTS)

1. MEANING OF ATTITUDE
Attitude is defined as a learned predisposition to behave in a consistently favorable or
unfavorable manner toward a given object.

This means that attitudes are not inborn; rather, they are developed over time through
experiences, exposure to information, and interaction with the environment. The term
“predisposition” indicates that attitude reflects a tendency to behave in a certain way, although
actual behavior may vary depending on circumstances.

In consumer behavior, the “object” of attitude can be a product, brand, service, advertisement,
retailer, or even a price or packaging element.

2. CHARACTERISTICS OF ATTITUDE
Attitudes have several defining characteristics that make them important in understanding
consumer behavior.

1. Attitudes are learned

Attitudes are formed through direct experience with a product, word-of-mouth communication,
exposure to media, and other informational sources. For example, a consumer who has had a
positive experience with a skincare brand is likely to develop a favorable attitude toward it.

2. Attitudes are object-specific

An attitude is always directed toward a specific object. A consumer may have a positive attitude
toward one brand and a negative attitude toward another within the same category.

3. Attitudes are relatively consistent

Attitudes tend to be stable over time and guide behavior. A consumer who consistently prefers a
particular brand is likely to continue purchasing it unless influenced by strong external factors.

4. Attitudes are situation-dependent

Although attitudes are consistent, actual behavior may change depending on the situation. For
instance, a consumer may prefer a premium brand but purchase a cheaper alternative due to
budget constraints.

THE TRI-COMPONENT ATTITUDE MODEL

The tri-component attitude model maintains that attitudes consist of three components:
cognitive, affective, and conative.

1. The Cognitive Component

The cognitive component 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.

This knowledge and resulting perceptions commonly take the form of beliefs, and these beliefs
link the attitude object with certain attributes.

Cognitive beliefs about a product or brand are an important factor in determining attitudes
toward that product or brand.

2. The Affective Component

The affective component represents the consumer’s emotions and feelings regarding the
attitude object.
These emotions and feelings are frequently treated by researchers as evaluations, because
they capture the individual’s overall assessment of the attitude object as favorable or
unfavorable.

Affect-laden experiences can create emotionally charged states such as happiness, sadness,
anger, or excitement, which may enhance or amplify the experience and influence attitudes.

3. The Conative Component

The conative component reflects the likelihood that an individual will undertake a specific
action or behave in a particular way with regard to the attitude object.

In consumer behavior, the conative component is often treated as an expression of the

consumer’s intention to buy.

Measures of purchase intention are commonly used to assess the likelihood of a consumer
purchasing a product or behaving in a certain way.

ALTERING CONSUMERS’ ATTITUDES (TRI

COMPONENT)
Altering consumers’ attitudes is an important marketing strategy. The goal of leading brands is
to strengthen and maintain the existing positive attitudes of customers, so that they do not
succumb to competitors’ special offers and other inducements designed to win them over.

In contrast, in product categories such as detergents or athletic shoes—where strong brands

dominate—competitors often try to change the strong and positive attitudes that consumers
have toward the market leaders, in an attempt to get consumers to switch brands.

Changing consumers’ attitudes about products and brands is difficult because consumers
frequently resist evidence that challenges their strongly held attitudes or beliefs. They also
tend to interpret any ambiguous information in ways that reinforce their preexisting attitudes.

There are two primary strategies for changing consumers’ attitudes:

1. Changing Beliefs about Products

This strategy focuses on changing consumers’ beliefs or perceptions about the brand
itself.

This is the most common form of advertising appeal. Advertisers constantly attempt to convince
consumers that their product has more, better, or superior attributes compared to competing
products.

For example, advertisements may claim that a product has better taste, more effectiveness, or
superior performance on certain important attributes.

Information aimed at changing beliefs must be compelling and repeated frequently, in order
to overcome consumers’ natural resistance to abandoning their existing attitudes.

2. Changing Brand Image

This strategy attempts to alter consumers’ overall evaluation of the brand, rather than
focusing on specific attributes.

Marketers use broad, inclusive promotional messages designed to differentiate the brand
from competitors without necessarily referring to specific product features.

Examples include statements such as:

●​ “This is the largest-selling brand”

●​ “The brand others try to imitate”

Such campaigns aim to create a favorable overall impression and strengthen the brand’s
position in the consumer’s mind.

3. Changing Beliefs about Competing Brands

Another strategy involves changing consumers’ beliefs about competitors’ brands or
product categories.

This is often done through comparative advertising, where the brand highlights its superiority
over competing products.

For example, an advertisement may claim that:

●​ Competing products are less effective

●​ Or that they have certain disadvantages
By doing so, marketers attempt to create unfavorable attitudes toward competing brands,
thereby shifting preference toward their own brand.

MULTI-ATTRIBUTE ATTITUDE MODELS

Multi-attribute attitude models portray consumers’ attitudes as a function of their assessments
of the object’s prominent attributes. In simple terms, a consumer does not evaluate a product
as a whole, but rather evaluates it based on multiple attributes, and the overall attitude is
formed by combining these evaluations.

These models are used by marketers to understand:

●​ How consumers evaluate products

●​ Which attributes matter the most
●​ How attitudes can be changed

ATTITUDE-TOWARD-OBJECT MODEL
The attitude-toward-object model states that a consumer’s evaluation of a product is a function
of two main factors:

1.​ The extent to which the product possesses (or lacks) specific attributes
2.​ The importance of each of these attributes to the consumer

This means consumers form favorable attitudes toward brands that they believe perform well on
attributes that are important to them, and unfavorable attitudes toward brands that fail to meet
those expectations.

Key Insight

Even if a product is objectively better, what matters is consumer perception, not reality.

APPLICATION OF THE MODEL

In the smartphone example (iPhone, Blackberry, Android):

●​ Consumers rated brands on attributes like battery life, screen quality, etc.
 ●​ Each attribute had an importance weight
●​ The final attitude score = belief (performance) × importance

This shows:

●​ iPhone scored highest because it performed well on highly important attributes

●​ Blackberry scored low due to lower importance weight of its strong feature (keyboard)

Important Conclusion

Marketers must focus not just on features, but on features that consumers actually care
about.

●​ Comparing actual product vs ideal product

●​ Modifying product to match consumer expectations

Example (Tropicana):

●​ Consumers rated ideal juice on pulp, sweetness, flavor, color

●​ Company adjusted product to match those preferences

THEORY OF TRYING-TO-CONSUME
This theory focuses on situations where:

●​ Consumers intend to act but may not succeed

Two types of impediments:

1. Personal Impediments
●​ Lack of ability, discipline, or internal constraints​
Example: trying to lose weight but loving sweets

2. Environmental Impediments
 ●​ External barriers​
Example: product not available, too expensive

Key Insight

Intention does not always lead to behavior because of obstacles.

ATTITUDE-TOWARD-THE-AD MODEL
This model states that:

●​ Consumers’ feelings toward an advertisement influence their attitudes toward the brand

If consumers like the ad:​

→ They are more likely to like the brand​
→ And more likely to purchase

FISHBEIN MODEL

IDEAL POINT MODEL

COGNITIVE DISSONANCE

STRATEGIES OF ATTITUDE CHANGE

A.​ CHANGE BASIC MOTIVATIONSAL FUNCTION

1. Utilitarian Function
Thus, attitudes formed under the utilitarian function are practical and benefit-oriented, and
they are influenced by the product’s performance and usefulness.

From a marketing perspective, attitudes can be changed by:

●​ Highlighting product benefits

●​ Demonstrating superior performance
●​ Offering incentives or rewards

2. Ego-Defensive Function
The ego-defensive function serves to protect the individual’s self-image and self-esteem.

Consumers may hold certain attitudes in order to:

●​ Defend themselves against internal conflicts

●​ Avoid feelings of insecurity or inadequacy
●​ Justify their behavior or beliefs

For example, a consumer who engages in unhealthy habits may develop attitudes that justify
those behaviors in order to reduce internal tension.

Marketers can address this function by:

●​ Reassuring consumers
●​ Reducing fear or anxiety
●​ Avoiding messages that threaten self-image

Thus, ego-defensive attitudes are closely related to emotions, self-protection, and

psychological defense mechanisms.

3. Value-Expressive Function
The value-expressive function allows consumers to express their personal values, beliefs,
and identity.

Consumers form attitudes toward brands that reflect:

●​ Their lifestyle
●​ Their personality
●​ Their social identity
 ●​ Their values and beliefs

For example:

●​ A consumer may prefer eco-friendly brands to express environmental concern

●​ A young consumer may prefer trendy brands to express individuality and modernity

B.​ ASSOCIATING WITH SPECIAL GROUP OR CAUSE

C.​ ALTER COMPONENTS OF MULTI ATTRIBUTE

Change evaluation of attributes

Change brand beliefs

Add attribute

D.​ CHANGE BELIEF OF COMPETITOR BRAND

CONSUMER LEARNING (FROM YOUR

BOOK – FULL NOTES)

1. MEANING OF LEARNING
Learning is defined as the process by which individuals acquire the purchase and consumption
knowledge and experience that they apply to future related behavior.

It is also described as applying past knowledge and experience to present circumstances and
behavior. Consumer learning is not static; it evolves as consumers acquire knowledge from
experience, observation, and interactions with others.

Newly acquired knowledge affects future behavior. Learning can range from simple responses
to marketing stimuli such as packaging, colors, and promotional messages, to more complex
processes such as understanding abstract concepts and making decisions about expensive
products.

Not all learning is deliberately sought. While some learning is intentional, much of it is
incidental, meaning it occurs without conscious effort.
2. ELEMENTS OF CONSUMER LEARNING
Learning consists of four elements: motives, cues, responses, and reinforcement.

2.1 Motives
Motives are the primary drivers of consumer behavior. Marketers aim to uncover consumer
motives because they want to teach consumers how their needs can be fulfilled through specific
products and brands.

Unfulfilled needs create motivation, which leads to learning. For example, individuals interested
in fitness may actively seek information about bicycles, including prices, quality, and features,
and may also search for related activities such as biking or hiking.

The degree of relevance or involvement determines how motivated a consumer is to search for
information and engage in learning.

2.2 Cues
Cues are stimuli that direct motivated behavior. They suggest specific ways in which consumers
can satisfy their needs.

For example, an advertisement for an exotic vacation that includes bike riding may act as a cue
for consumers to recognize their need for a vacation.

In marketing, cues include price, styling, packaging, advertising, and store displays. These
cues are designed to persuade consumers to fulfill their needs by purchasing specific products.

However, cues are effective only when they are consistent with consumer expectations. Each
element of the marketing mix must reinforce the others so that cues can guide consumer
behavior in the desired direction.

2.3 Responses
A response is an individual’s reaction to a cue. Learning can occur even when responses do not
immediately result in a purchase.

For example, consistent exposure to cues may create a favorable image of a product in the
consumer’s mind. When the consumer is ready to buy, this learned preference influences the
choice.

Responses are not always directly linked to a single need. A need may generate multiple
responses, and the response chosen depends on previous learning and reinforcement.

2.4 Reinforcement
Reinforcement is the reward—the pleasure, enjoyment, or benefits—that a consumer receives
after purchasing and using a product or service.

For marketers, the challenge is to provide ongoing positive experiences so that consumers
continue to purchase the product.

If a consumer is satisfied with a product, reinforcement occurs and increases the likelihood of
repeat purchase. If the experience is negative, reinforcement does not occur, and the consumer
is unlikely to repeat the behavior.

3. BEHAVIORAL LEARNING THEORY

Behavioral learning is sometimes referred to as stimulus–response learning because it is
based on the premise that observable responses to specific external stimuli indicate that
learning has taken place.

This approach focuses on the inputs and outcomes of learning rather than the internal
processes. It emphasizes observable behavior resulting from exposure to stimuli.

There are three forms of behavioral learning relevant to marketing:

●​ Classical conditioning
●​ Instrumental conditioning
●​ Observational learning
3.1 CLASSICAL CONDITIONING
Classical conditioning is viewed as a reflexive or automatic response that builds through
repeated exposure and reinforcement.

It occurs when a stimulus that naturally produces a response is paired with another stimulus,
leading the second stimulus to produce the same response.

Pavlov demonstrated this concept through experiments with dogs, where the sound of a bell
was paired with food. Eventually, the bell alone caused the dogs to salivate.

In consumer behavior, classical conditioning is used to associate brands with positive feelings,
experiences, or symbols through repeated exposure.

Applications of Classical Conditioning

Repetition

Repetition increases the strength of associations between stimuli and responses. Repeated
exposure helps in learning and improves recall.

However, repetition must be balanced, as too much repetition can lead to boredom and reduced
effectiveness.

Stimulus Generalization

Stimulus generalization refers to the tendency of stimuli similar to the conditioned stimulus to
evoke similar responses.

Marketers use this concept to extend brands into new product categories, create product line
extensions, and maintain consistent brand identity.

Stimulus Discrimination

Stimulus discrimination is the ability of consumers to distinguish between similar stimuli.

Marketers use this concept to differentiate their products from competitors and create distinct
brand positioning.

3A2. INSTRUMENTAL (OPERANT) CONDITIONING

Instrumental conditioning, also referred to as operant conditioning, is a form of learning in which
individuals learn to perform behaviors that produce satisfying outcomes and avoid behaviors
that lead to unsatisfactory outcomes.

Unlike classical conditioning, which involves automatic and reflexive responses, instrumental
conditioning involves conscious and deliberate actions, where consumers actively try
different behaviors and evaluate their consequences.

This theory is based on the principle that learning occurs through a trial-and-error process,
where consumers experiment with different responses in order to satisfy their needs.

When a particular behavior results in a positive outcome, it is reinforced and becomes more
likely to be repeated. Conversely, when a behavior leads to dissatisfaction or negative
outcomes, it is less likely to be repeated.

Thus, instrumental conditioning explains that consumer behavior is shaped by the

consequences of past actions and experiences.

Trial-and-Error Learning

In instrumental conditioning, learning occurs through trial and error, where consumers test
different alternatives and evaluate their effectiveness.

For example, a consumer may try different brands of a product and gradually learn which brand
provides the best value, quality, or satisfaction. Over time, the consumer develops a preference
for the brand that consistently delivers positive outcomes.

Role of Reinforcement

Reinforcement is central to instrumental conditioning, as it determines whether a behavior will

be repeated.

Reinforcement refers to any outcome that strengthens the likelihood of a particular response.
Positive Reinforcement

Positive reinforcement occurs when a behavior is followed by a rewarding or satisfying outcome.

For example, receiving a high-quality product, a discount, or a pleasant service experience

encourages the consumer to repeat the behavior.

Negative Reinforcement

Negative reinforcement occurs when an unpleasant condition is removed as a result of a

behavior.

For example, a product that relieves discomfort or solves a problem reinforces the behavior by
eliminating a negative state.

Punishment

Punishment occurs when a behavior results in a negative outcome, reducing the likelihood of
repetition.

For example, a poor product experience discourages the consumer from purchasing the brand
again.

Shaping

Shaping refers to the process of gradually guiding consumer behavior by reinforcing successive
steps toward a desired behavior.

Marketers use techniques such as free samples, introductory offers, and incentives to
encourage initial trial, which can eventually lead to habitual purchasing behavior.

Reinforcement Schedules

Reinforcement can be provided according to different schedules.

In continuous reinforcement, every correct response is rewarded, which is effective in the early
stages of learning.
In intermittent reinforcement, rewards are provided occasionally, which results in stronger and
more persistent behavior, as consumers continue the behavior in anticipation of future rewards.

Extinction in Instrumental Conditioning

Extinction occurs when reinforcement is no longer provided for a learned behavior.

When consumers stop receiving expected benefits or satisfaction, the behavior gradually
weakens and may eventually disappear.

Forgetting in Instrumental Conditioning

Forgetting occurs when learned behavior is not reinforced over time.

If reinforcement is absent for a prolonged period, consumers may forget their previous
experiences and switch to alternative products.

3B. COGNITIVE LEARNING THEORY

Cognitive learning theory focuses on the mental processes involved in learning, such as
thinking, problem-solving, and decision-making.

Unlike behavioral learning, which is based on automatic responses, cognitive learning involves
deliberate and conscious processing of information.

Consumers engage in cognitive learning when they recognize a need, search for information,
evaluate alternatives, and make decisions.

3B1. Information Processing

Information processing refers to how consumers receive, interpret, store, and retrieve
information.

Consumers process information based on product attributes, brand comparisons, and available
alternatives.
The extent of information processing depends on the complexity of the information and the
consumer’s ability to understand it.

Information Processing Model

Information processing occurs through a sequence of stages:

Sensory Input → Sensory Store → Short-Term Store → Long-Term Store → Retrieval

Information enters through the senses, is briefly stored, processed, and then transferred to
long-term memory if it is rehearsed.

Forgetting can occur at any stage if information is not properly processed.

Sensory Store

The sensory store is the initial stage where sensory input is held for a very brief period.

If information is not attended to, it is lost quickly. Consumers are exposed to numerous stimuli,
and only a small portion is processed further.

Short-Term Store

The short-term store holds information temporarily for processing.

It has limited capacity and duration. Information must be rehearsed to be transferred to

long-term memory. Without rehearsal, it is lost quickly.

Long-Term Store

The long-term store retains information for extended periods.

Information stored here can be retrieved when needed and plays a crucial role in
decision-making.

3B2. Involvement Theory

Involvement theory is based on the concept that the level of personal relevance that a product
or purchase holds for a consumer determines how much effort the consumer will put into
processing information and making a decision.

It suggests that consumers do not process all marketing messages in the same way. Instead,
the degree of involvement influences whether consumers engage in extensive information
processing or minimal cognitive effort.

Thus, involvement theory explains the relationship between the consumer’s level of interest
and the depth of learning and decision-making.

NATURE OF INVOLVEMENT
Involvement is not constant. It varies depending on:

●​ the consumer
●​ the product
●​ the situation

The same consumer may show different levels of involvement for different products or even for
the same product in different situations.

For example, a consumer may be highly involved when purchasing an expensive product but
show low involvement when purchasing routine, low-cost items.

LEVELS OF INVOLVEMENT
Involvement exists along a continuum and is generally categorized into high involvement and
low involvement.

High Involvement

High involvement occurs when the product or purchase is important to the consumer and
involves a higher level of perceived risk.

In such situations, consumers:

●​ actively search for information

●​ carefully evaluate alternatives
 ●​ engage in extensive cognitive processing

This type of involvement leads to more deliberate and rational decision-making.

Low Involvement

Low involvement occurs when the product is of less importance and involves minimal perceived
risk.

In such cases, consumers:

●​ engage in limited information search

●​ rely on routine or habitual behavior
●​ make quick decisions with minimal cognitive effort

Learning in low-involvement situations is often passive and occurs through repeated exposure.

MEASUREMENT OF INVOLVEMENT
There is no single standard method for measuring involvement.

Involvement is generally measured through self-administered surveys, where consumers

indicate their level of interest or relevance toward a product.

It is measured along a continuum, rather than being strictly classified into high or low.

Researchers often use scales such as semantic differential scales with dimensions like:

●​ Important versus unimportant

●​ Relevant versus irrelevant
●​ Interesting versus boring
●​ Exciting versus unexciting

These measures help determine the degree to which a product or purchase is personally
relevant to the consumer.

STRATEGIC IMPLICATIONS OF INVOLVEMENT THEORY

Involvement theory has important implications for marketing strategy.
Consumers with high involvement are more likely to:

●​ process information deeply

●​ pay attention to advertising
●​ form strong attitudes
●​ develop brand loyalty

Consumers with low involvement are more likely to:

●​ rely on repetition and familiarity

●​ be influenced by simple cues
●​ exhibit habitual purchasing behavior

The effectiveness of advertising also depends on involvement. Highly involved consumers are
more likely to:

●​ notice advertisements
●​ understand and remember the message

However, the context in which the advertisement is viewed also affects its effectiveness.

Experience also influences involvement. Consumers who are new to a product category tend to
have higher involvement because they need to learn more. As they gain experience,
involvement may decrease.

Marketers can increase involvement by:

●​ emphasizing the personal relevance of the product

●​ highlighting meaningful benefits
●​ creating engaging and interactive experiences

CONSUMER DECISION MAKING (FULL –

BOOK STYLE)
1. Meaning of Consumer Decision Making
Consumer decision making refers to the process by which individuals s elect, purchase, use,
and dispose of goods and services to satisfy their needs and wants. It involves choosing from
two or more alternatives and reflects the consumer’s role as a problem solver.
A consumer is considered a problem solver because every purchase decision begins with the
recognition of a problem or need. The consumer then actively seeks solutions through products
or services available in the marketplace.

In some situations, there may appear to be only one option available. This is referred to as a
Hobson’s choice, where there is technically a choice, but no real alternative exists.

On the other hand, modern markets often present consumers with an overwhelming number of
alternatives. This leads to consumer hyperchoice, where the abundance of options forces
consumers to make repeated decisions, draining their psychological energy and reducing their
ability to make optimal choices.

Because of hyperchoice, consumers often rely on:

●​ mental shortcuts
●​ simplification strategies
●​ recommendations and referrals
●​ customization tools
●​ empathy-driven brand communication

2. Levels of Consumer Decision Making

Consumer decision making varies based on the level of involvement and prior experience.

2.1 Extensive Problem Solving

Extensive problem solving occurs when the consumer has little or no prior knowledge about the
product category and no established criteria for evaluation. In such cases, the consumer
actively seeks information and carefully evaluates multiple alternatives before making a
decision.

This type of decision making is characterized by:

●​ high involvement
●​ high perceived risk
●​ extensive information search
●​ complex evaluation

Example: Purchasing an electric car.

2.2 Limited Problem Solving

Limited problem solving occurs when the consumer has some prior knowledge but not enough
to make an automatic decision. The consumer uses basic criteria but still engages in some level
of information search and evaluation.

This type involves:

●​ moderate involvement
●​ limited information search
●​ simplified decision rules

Example: Buying a new smartphone when switching from Android to iOS.

2.3 Routinized Response Behaviour

Routinized response behaviour occurs when consumers have prior experience and
well-established criteria. Decisions are made quickly with minimal cognitive effort.

Characteristics include:

●​ low involvement
●​ habitual buying
●​ minimal evaluation

Example: Purchasing FMCG products like soap or toothpaste.

3. Models of Consumer Decision Making

3.1 Economic View

The economic view assumes that consumers are rational decision makers who aim to maximize
utility. It assumes:

●​ perfect information
●​ logical evaluation
●​ rational choice

However, this model is unrealistic because consumers rarely have complete information and are
often influenced by psychological and social factors.
3.2 Passive View

The passive view portrays consumers as submissive to marketing efforts. It assumes that:

●​ consumers are easily influenced

●​ advertising shapes decisions entirely
●​ consumers play a minimal active role

This view is also unrealistic because consumers actively process information rather than blindly
accepting it.

3.3 Cognitive View

The cognitive view presents consumers as thinking problem solvers who actively process
information. It emphasizes:

●​ information processing
●​ evaluation of alternatives
●​ role of memory and learning

It also recognizes that due to information overload, consumers use heuristics (mental
shortcuts) to simplify decision making.

3.4 Emotional View

The emotional view recognizes that consumers are not always rational and may make decisions
based on feelings, moods, and emotions.

This includes:

●​ impulse buying
●​ mood-based decisions
●​ symbolic consumption

This view highlights that emotions play a significant role alongside cognition.

CUSTOMER INVOLVEMENT
FIVE TYPES OF PERCEIVED RISK
1. Financial (Monetary) Risk
Financial risk refers to the possibility that the product may not be worth the money spent or
may lead to monetary loss.

This risk is especially high when:

●​ the product is expensive

●​ the consumer has limited financial resources

Example: Buying a costly smartphone or luxury watch.

👉 If the product fails, the consumer feels the money is wasted.

2. Functional (Performance) Risk

Functional risk is the possibility that the product may not perform as expected or may not
deliver promised benefits.

This is high when:

●​ product performance is uncertain

●​ technology is new

Example: Buying a new electric vehicle that may not perform reliably.

👉 Consumers fear that the product won’t solve their problem.

3. Physical Risk
Physical risk refers to the potential harm to the consumer’s health or safety due to product
usage.

This is important in:

●​ medicines
●​ food products
 ●​ automobiles

Example: Side effects from a skincare product or medicine.

👉 The consumer fears injury or health damage.

4. Social Risk
Social risk is the possibility that the purchase may lead to disapproval or negative judgment
from others.

This is high when:

●​ the product is publicly visible

●​ social image matters

Example: Wearing a brand that peers may consider “uncool.”

👉 The consumer fears embarrassment or loss of status.

5. Psychological Risk
Psychological risk refers to the possibility that the purchase may affect the consumer’s
self-image or self-esteem negatively.

It is internally driven.

Example: Buying something that does not align with one’s personality or identity.

👉 The consumer may feel regret, guilt, or dissatisfaction.

4. Consumer Decision-Making Process (Stages)

4.1 Problem Recognition

Problem recognition occurs when a consumer perceives a difference between the current
(actual) state and the desired state.
This gap creates a need that triggers the decision-making process.

There are two types:

●​ Need Recognition → when actual state falls below desired

●​ Opportunity Recognition → when desired state rises above actual

Marketers often stimulate problem recognition through advertising.

4.2 Information Search

Once the need is recognized, the consumer searches for information.

Sources include:

●​ internal search (memory)

●​ external search (ads, friends, internet)

The relationship between product knowledge and search is inverted U-shaped:

●​ low knowledge → low search

●​ moderate knowledge → high search
●​ high knowledge → low search

4.3 Evaluation of Alternatives

Consumers evaluate brands based on criteria.

Brands are divided into:

●​ Evoked Set (Consideration Set) → brands seriously considered

●​ Inept Set → brands rejected
●​ Inert Set → brands towards which consumer is indifferent

The final choice is made from the evoked set.

4.4 Purchase Decision

At this stage, the consumer selects a product.

However, the decision may still be influenced by:

 ●​ situational factors
●​ availability
●​ peer influence

4.5 Post-Purchase Evaluation

After purchase, consumers evaluate their decision.

This may lead to:

●​ satisfaction → repeat purchase

●​ dissatisfaction → cognitive dissonance

Marketers try to reduce dissonance through reassurance and after-sales service.

5. Decoy Effect
The decoy effect occurs when a third option is introduced to make another option appear more
attractive.

Example:

●​ ₹21,000 for 28L

●​ ₹28,000 for 32L​
→ The higher-priced option appears better value

Marketers use this to guide consumer choices.

6. Priming, Nudging, and Sludging

6.1 Priming

Priming refers to environmental cues that influence behavior subconsciously.

Consumers react in certain ways without being aware of the influence.

6.2 Nudging
Nudging involves subtle changes in the environment to influence behavior without restricting
choices.

Example:

●​ automatic enrollment in pension plans

6.3 Sludge

Sludge refers to barriers that make certain actions difficult.

Example:

●​ complex unsubscribe processes

7. Behavioural Concepts
7.1 Bystander Effect

Consumers are less likely to act when others are present, assuming someone else will take
responsibility.

7.2 Social Proof

Consumers tend to follow what others are doing. Popular brands become more popular
because people perceive them as correct choices.

7.3 Negative Social Proof

Occurs when communication highlights undesirable behavior, leading people to follow it.

7.4 Distinctiveness (Isolation Effect)

Consumers remember items that stand out more easily.

7.5 Habit

Repeated behavior becomes automatic over time.

7.6 Pain of Payment

Consumers feel psychological discomfort when paying, especially with cash. Digital payments
reduce this pain.

7.7 Pratfall Effect

Small mistakes can make a person or brand more relatable and appealing.

7.8 Scarcity Effect

Limited availability increases perceived value.

7.9 Placebo Effect

Consumers perceive benefits because they expect them, not necessarily because of actual
product performance.

REFERENCE GROUPS AND THEIR

INFLUENCE ON CONSUMER BEHAVIOUR
1. Meaning of Reference Groups
A reference group is any person or group that serves as a point of comparison or reference for
an individual in forming general or specific values, attitudes, or guiding behaviour.
Reference groups act as frames of reference that influence consumers’ purchase and
consumption decisions. They help individuals evaluate their own beliefs, attitudes, and
behaviours by comparing themselves with others.

Consumers may be influenced by reference groups even if they are not members of those
groups.

2. Types of Reference Group Influence

2.1 Normative Influence

Normative influence occurs when individuals conform to the expectations of a group in order to
gain approval or avoid rejection.

This type of influence affects:

●​ behaviour
●​ values
●​ group norms

Example: Dressing in a certain way to fit into a peer group.

2.2 Comparative Influence

Comparative influence occurs when individuals use a group as a benchmark to evaluate

themselves.

It helps in:

●​ self-evaluation
●​ aspiration
●​ identity formation

Example: Comparing lifestyle with celebrities or influencers.

2.3 Indirect Reference Groups

These are groups to which a consumer does not belong but still gets influenced by.
They include:

●​ aspirational groups
●​ symbolic groups

Consumers often try to emulate these groups.

3. Major Reference Groups

Reference groups can be broadly classified into:

1.​ Individual (self-reference)

2.​ Family
3.​ Friends (peer groups)
4.​ Social class
5.​ Subculture
6.​ Culture

Each of these groups influences consumer decisions at different levels.

FACTORS AFFECTING CONFORMITY

Conformity refers to the tendency of individuals to align their attitudes, beliefs, and behaviours
with those of a group.

1. Task and Situational Factors

Conformity increases when:

●​ the task is difficult or complex

●​ the situation is ambiguous
●​ there is subjectivity in judgment

In such cases, individuals rely more on others for guidance.

2. Brand-Related Factors
Conformity is higher when:

●​ consumers have no prior information

●​ there are limited choices
●​ previous conformity has occurred
●​ there is a crisis or emergency situation

Consumers depend more on group opinions under uncertainty.

3. Group Factors
Group characteristics that influence conformity include:

●​ attractiveness of the group

●​ expertise of members
●​ credibility
●​ clarity of group goals
●​ past success of the group

Stronger and more credible groups exert greater influence.

4. Personal Factors
Individual characteristics affecting conformity include:

●​ tendency to conform
●​ need for affiliation
●​ desire to be liked
●​ desire for control
●​ fear of negative evaluation

People with high social needs conform more.

FACTORS AFFECTING REFERENCE
GROUP INFLUENCE
1.​ Information and Experience​
Consumers with less knowledge rely more on reference groups.
2.​ Credibility and Attractiveness​
More credible and attractive groups have stronger influence.
3.​ Product Conspicuousness​
Publicly consumed products are more influenced by reference groups.

REFERENCE GROUP APPEALS IN

MARKETING
Marketers use reference groups to influence consumer behaviour.

1. Conformity Appeal

Encourages consumers to follow group norms.​

Example: Popular cola brands.

2. Non-Conformity Appeal

Encourages uniqueness and individuality.​

Example: “Uncola” positioning.

3. Types of Endorsers

●​ Celebrity appeal
●​ Common man appeal
●​ Executive/employee spokesperson

These create relatability and trust.

FAMILY AND CONSUMER DECISION
MAKING
1. Role of Family
The family is the basic consumer decision-making unit. It plays a central role in shaping:

●​ attitudes
●​ values
●​ purchasing habits

Modern families show changing roles, especially with increased participation of both partners in
decision making.

2. Husband–Wife Decision Making

Decision roles may be:

●​ husband-dominant
●​ wife-dominant
●​ joint decisions

The trend is towards joint decision making.

3. Eight Roles in Family Decision Making

1.​ Influencers – Provide information and suggestions
2.​ Gatekeepers – Control flow of information
3.​ Deciders – Make the final decision
4.​ Buyers – Execute the purchase
5.​ Preparers – Prepare the product for use
6.​ Users – Consume the product
7.​ Maintainers – Maintain or service the product
8.​ Disposers – Dispose of the product

Each member of the family can perform multiple roles.

SOCIAL CLASS AND CONSUMER
BEHAVIOUR
1. Meaning of Social Class
Social class is a division of society based on factors such as income, occupation, education,
and lifestyle.

It reflects a person’s position in society and influences consumption patterns.

2. Components of Social Class

1.​ Income
2.​ Occupational Prestige

Both together determine purchasing power and status.

3. Social Class vs Income

Income alone is not a perfect predictor of consumer behaviour. Social class is a better predictor
because it includes:

●​ lifestyle
●​ values
●​ social status

4. Impact on Consumption
1. Symbolic Purchases

Products like cosmetics reflect identity and status.

2. Major Purchases

Expensive goods like appliances reflect economic capability.

TARGETING HIGH-INCOME CONSUMERS
Consumers with high income perceive luxury differently:

●​ as functionality
●​ as a reward
●​ as indulgence

Marketing strategies must align with these perceptions.

DYNAMICS OF STATUS CONSUMPTION

1. Status Consumption
Refers to purchasing products for status signaling, not necessarily for display.

2. Conspicuous Consumption
Refers to visible display of expensive products to signal wealth.

INFLUENCE OF CULTURE
Culture shapes consumer behaviour through:

●​ language
●​ symbols
●​ values
●​ norms

It determines what is acceptable, desirable, and meaningful.

(a) Distinguish among Beliefs, Values and
Customs (with examples)
Introduction
Beliefs, values, and customs are key elements of culture that influence consumer behaviour.
While they are interrelated, each plays a distinct role in shaping attitudes, preferences, and
purchasing decisions.

1. Beliefs
Beliefs are descriptive thoughts or perceptions that a person holds about something. They
are based on knowledge, opinions, or faith and may or may not be factually correct.

Beliefs influence how consumers perceive products and brands.

Example:​
A consumer may believe that herbal products are safer than chemical-based products.

2. Values
Values are enduring beliefs about what is desirable or important in life. They represent a
person’s core principles and guide behaviour over the long term.

Values are more deeply rooted than beliefs and are harder to change.

Example:​
A consumer who values sustainability may prefer eco-friendly brands and avoid plastic
products.

3. Customs
Customs are traditional, socially accepted ways of behaving that are passed down from
generation to generation.
They reflect cultural practices and influence consumption patterns.

Example:​
Buying sweets and new clothes during Diwali is a cultural custom in India.

Key Differences
●​ Beliefs are specific perceptions, whereas values are broader guiding principles.
●​ Customs are observable behaviours rooted in culture.
●​ Beliefs can change relatively easily, while values are stable and long-lasting.
●​ Customs are socially enforced, whereas beliefs and values are more individual.

Conclusion
Understanding the distinction between beliefs, values, and customs helps marketers design
culturally relevant strategies and position products effectively in different markets.

(c) Define Brand Personality and Give Two

Examples
Introduction
Brand personality refers to the set of human characteristics or traits associated with a
brand. It allows consumers to relate to brands as if they were people.

Definition
Brand personality is the attribution of human traits such as sincerity, excitement,
competence, sophistication, or ruggedness to a brand.
Importance
●​ Helps in brand differentiation
●​ Builds emotional connection
●​ Enhances brand loyalty
●​ Influences consumer preference

Examples
1. Nike

Nike’s brand personality is energetic, bold, and performance-driven. It appeals to consumers

who value achievement and motivation.

2. Apple

Apple’s brand personality is innovative, creative, and premium. It attracts consumers who
seek uniqueness and sophistication.

Conclusion
A strong brand personality helps brands stand out in competitive markets and creates a lasting
impression in consumers’ minds.

(d) Importance of Understanding Culture

Introduction
Culture is a set of learned values, beliefs, customs, and behaviours shared by members of a
society. It plays a crucial role in shaping consumer behaviour.
Importance
1. Influences Consumer Behaviour

Culture determines what people buy, how they buy, and when they buy.

2. Helps in Market Segmentation

Different cultures have different preferences, enabling marketers to segment markets effectively.

3. Guides Product Development

Products must align with cultural norms and values to be accepted.

Example: Vegetarian products in India.

4. Affects Communication and Advertising

Language, symbols, and messages must be culturally appropriate.

5. Builds Brand Acceptance

Culturally relevant brands are more likely to gain trust and acceptance.

6. Avoids Cultural Blunders

Lack of cultural understanding can lead to failed marketing campaigns.

Conclusion
Understanding culture is essential for designing effective marketing strategies and ensuring
long-term success in diverse markets.