Chapter 1

Introduction
Introduction to
to
Consumer Behavior
Consumer Behavior
Customer and consumer

Customer:- a person or organisation that buys

goods/services.

Consumer:- a person or organisation that uses

goods or services.

Note:- one can become consumer only when

he/she/it uses or consumes product/service.
Behaviour

The way in which a person acts or behaves in

response to a particular situation or stimulus.
What is consumer behaviour

“Consumer behaviour may be defined as the

behaviour that consumers display in
searching for, purchasing, using, evaluating
and disposing of products , services and ideas
which they think will satisfy their needs.”
Definition of consumer
behaviour
“Consumer behaviour is the process whereby
individuals decide when, where, how and from
whom to purchase goods and services”.

Walters and Paul

From Companies point of
view
Consumer behaviour is the study of how consumers

 Select
 Purchase
 Use
 Dispose of

goods and services in the process of satisfying their

personal and household needs and wants.
Consumer behavior is an
Interdisciplinary Field

Psychology Anthropology
Consumer
Behavior
studies

Social
Psychology Economics

Other Fields
 Cont…
Psychology:- the subject that studies a persons or group of
persons’ mental processes, thoughts and behaviours.
Sociology:- subject that studies society.
Social Psychology:- the subject that studies the relationship
between the individual and society.
Anthropology:- multidisciplinary field that studies origin,
development and diversity of humenbeings and their societies.
Economics :-the study of how people allocate scarce
resources for production, distribution, and consumption, both
individually and collectively.
Consumer Decision-
Making Process
 Understanding the consumer decision-
making process is crucial for shaping your
marketing strategies.
 This process outlines the steps a customer
takes before, during, and after making a
purchase.
 By understanding each stage, you can better
influence their decisions and create a
smoother path to purchase.
Steps/Stages in Consumer
Decision Making Process
Five stages/steps in consumer decision
making process

1. Problem Recognition: This is where the

customer realises they have a need or problem
that requires a solution. It could be something
as simple as running out of a household item
or as complex as needing a new car.
Cont..

 2. Information Search:
Once the problem is recognized, the customer
starts searching for information. This could
involve looking online, asking friends, or
reading reviews to explore different options.
 3. Evaluation of Alternatives: At this stage,

the customer compares different products or

services. They weigh the pros and cons,
considering factors like price, quality, and
brand reputation.
con

 4. Purchase Decision: After evaluating their

options, the customer makes a decision and
proceeds to purchase the product or service
that best meets their needs.
 5. Post-Purchase Behaviour: The process
doesn’t end with the purchase. The customer
reflects on their decision, and their satisfaction
(or dissatisfaction) with the product influences
their future buying behaviour.
Role of Consumer Behavior in
Marketing
Consumer behaviourStrategy
plays a pivotal role in shaping your marketing
strategy. By understanding how your customers think and act, you
can tailor your approach to meet their needs more effectively. Here’s
how consumer behaviour influences key aspects of your marketing
strategy:
1. Market Segmentation
Market segmentation based on consumer behaviour and marketing

strategy ensures that your marketing efforts are targeted and

effective. This involves dividing your audience into groups with similar
needs, preferences, or buying behaviours. By understanding these
segments, you can target your marketing efforts more precisely,
ensuring that your messages resonate with the right people at the
right time.
 2. Product Development
 Aligning your products with consumer behaviour and
marketing strategy helps you meet customer demands
more effectively.
 Consumer behaviour insights allow you to align product
features and pricing with customer preferences, ensuring
that your offerings are both attractive and competitively
priced.
 You can streamline this process with in-app messages,
helping you gather feedback and refine your products
according to customer preferences.
Cont..
 3. Advertising and Promotion
 Advertising and promotion are most effective
when they speak directly to your customer’s
needs and desires.
 By understanding consumer behaviour, you
can craft messages that resonate with your
audience, making your campaigns more
impactful. Whether through emotional appeal
or highlighting key benefits, a deep
understanding of your customers helps you
create promotions that truly connect.
Cont..
 4. Brand Loyalty and Customer Retention
 A strong consumer behaviour and marketing
strategy helps maintain brand loyalty and improve
customer retention.
 Whether it’s through loyalty programs,
personalised experiences, or consistent quality,
knowing your customer’s behaviour helps you build
lasting relationships. Retaining customers is often
more cost-effective than acquiring new ones,
making this a crucial part of your strategy.
Cont…

 5. Pricing Strategies
 Your pricing strategy should reflect what your
customers are willing to pay, balanced against
your need to remain profitable. Consumer
behaviour insights help you understand price
sensitivity and the perceived value of your
products, allowing you to set prices that attract
customers while sustaining your business.
Four views of consumer
decision making
 Economic man/ economic
view
 Passive man/ passive view

 Cognitive man/ Cognitive view

 Emotional man/ Emotional

view
 1. Economic view
 Economic view suggests that consumers make
rational /logical buying decisions.
 Economic man knows about all available
products, has enough of information to rank
them correctly in terms of merits and
demerits, knows about their prices, makes
cost-benefit analysis and buys the best
product that benefits him the most.
 Economic model assumes that consumers have
limited purchasing power and as set of tastes
and needs. Being a rational one will make his
purchase decision with the intention of
maximizing the utility/ benefits.
Cont..

So, consumer decisions get influenced

by;-
Price, Substitute products and Income.
2. Passive view
 Quite opposite to rational economic view of
consumers is the passive view that depicts
the consumer as basically submissive to the
self serving interests and promotional efforts
of marketers.

 In the passive view, consumers are

perceived as impulsive(suddenly without
thinking carefully) and irrational buyers,
ready to yield to the aims and into the
strategies of marketers.
The principal limitations of the passive
model is that it fails to recognize that
consumers seek information about
product alternatives and select the
alternative/product that appears to offer
the greatest satisfaction.
3. Cognitive view
 Cognitive view assumes consumer as a
thinking problem solver.
 consumers are viewed as either receptive to
or actively searching for products and
services that fulfill their needs and enrich
their lives.
 This view falls in between economic and
passive view.
 Consumer gather information either through
searching or marketing efforts of companies.
 They process information which leads to
formation of preferences and ultimately
purchase decision.
 Cognitive view also recognises that
consumer is unlikely to attempt to obtain
all available information about a
product/service.
 They cease their information seeking
efforts when they think the product can
satisfy their need.
 They often use shortcut decision rules
4. Emotional view
 Every individual possesses some
feelings or emotions like Happiness,
sadness, fear, hope, disappointment.
 When these feelings get involved while
making a purchase decision, a
consumer is called emotional man. E.g
buying a specific branded toy for your
kid, because he likes it and demanded
for it.
 Here, the consumer gets emotionally
driven to make a purchase decision.
Models of Consumer Beviour

 1. Nicosia Model of consumer behaviour

 2. Howard Sheth Model of Consumer
Behaviour
 3. Engel-Balckwell Kollat Model
 Nicosia Model of Consumer
Behavior
Nicosia Model of Consumer Behavior was
developed in 1966, by Professor
 Francesco M. Nicosia, an expert in consumer
motivation and behavior.
 This mode lfocuses on the relationship between
the firm and its potential consumers.
 The model suggests that messages from the
firm (advertisements) first influences the
predisposition of the consumer towards the
product or service.
 Based on the situation,the consumer will
have a certain attitude towards the product.
This may result in a search for the product or
an evaluation of the product attributes by the
consumer.
 If the above step satisfies the consumer, it
may result in a positive response, with
 a decision to buy the product otherwise the
reverse may occur.
Looking to the model we will find that the firm
and the consumer are connected with each
other, the firm tries to influence the consumer
and the consumer is influencing the firm by his
decision.
Nicosia Model of Consumer
Behaviour
Components of Nicosia
Model
The Nicosia model of Consumer Behavior is
divided into four major fields:
Field 1: The firm’s attributes and the

consumer’s attributes. The first field is divided

into two subfields. The first subfield deals with
the firm’s marketing environment
and communication efforts that affect consumer
attitudes, the competitive environment, and
characteristics of target market.
Subfield two specifies the consumer
characteristics e.g., experience, personality,
and how he perceives the promotional idea
toward the product in this stage the consumer
forms his attitude toward the firm’s product
based on his interpretation of the message.
 Field 2: Search and evaluation. The
consumer will start to search for other firm’s
brand and evaluate the firm’s brand in
comparison with alternate brands. In this
case the firm motivates the consumer to
purchase its brands.
 Field 3: The act of the purchase. The result
of motivation will arise by convincing the
consumer to purchase the firm products from
a specific retailer.
 Field 4: Feed back of sales results. This
model analyses the feedback of both the firm
and the consumer after purchasing the
product. The firm will benefit from its sales
data as a feedback, and the consumer will
use his experience with the product affects
the individuals attitude and predisposition’s
concerning future messages from the firm.
 The Nicosia model of consumer behavior
offers no detail explanation of the internal
factors, which may affect the personality of
the consumer, and how the consumer
develops his attitude toward the product.
 For example, the consumer may find the
firm’s message very interesting, but virtually
he cannot buy the firm’s brand because it
contains something prohibited according to
his beliefs. Apparently it is very essential to
include such factors in the model, which give
more interpretation about the attributes
affecting the decision process.
 Howard Sheth Model
 John Howard and Jagadish Sheth introduced the Howard Sheth
Model in the year 1969. The concept was published in their book
‘The Theory of Buyer Behaviour’.
 The Howard Sheth Model is an approach for analyzing the
combined impact of the social, psychological and marketing factors
on the buying behaviour or preference of the consumers and the
industrial buyers into a logical order of information processing.
 t
Contents of Howard Sheth
Model
 Three Levels of Decision-Making

 Extensive Problem Solving

 Limited Problem Solving
 Routinized Response Behaviour
 Variables
 Input Variables
 Hypothetical Constructs
 Output Variables
 Exogenous Variable
Levels of Decision-Making
 The Howard Sheth model of consumer
behavior suggests three levels of decision
making:
 1. Extensive Problem Solving
This is the initial stage of decision-making,
where the buyer is new to the market. He/she
has no or little information about the brands
and has no preference for a particular product
or service.
 Thus, a consumer is an information seeker at this
level, who check out different brands available in
the market, before making a buying decision.
 2. Limited Problem Solving
 At this level, the buyer has inadequate or
incomplete information about the product,
market or the brands operating in it.
Sometimes the buyer is confused among the
various alternatives.
 Therefore, to make a buying decision, he/she
look for a comparative study of the different
brands and the products available in the
market.
3. Routinized Response Behavior
The habitual response behavior stage is where the

buyer is entirely aware of the products offered by

different brands and the features, pros and cons of
each product.
He/she is capable of evaluating and comparing the

multiple options available in the market.

Here, the buyer decides in advance, which product

is to be purchased.
Variables of Howard Sheth
Model
 Beginning with the stage of extensive problem

solving, the buyer slowly converts into a regular

customer of the organization, at the routinized
response behavior level.
 This whole process of buyer’s decision-making
functions on four pillars of this model or the four
essential elements of this model. These variables
are
 Input Variables
 Hypothetical Constructs
 Output Variables
 Exogenous Variable
 Input Variables
 The stimulus inputs refer to the idea or information
clue about the brand and its product in terms of
product quality, distinctiveness, price, service offered
and availability.
 These can be further classified as follows:
 Significant Stimuli: The significant stimuli are the
physical traits of the product and the brand. It includes
the product’s price, quality, availability, distinctive
characteristics and service.
 Symbolic Stimuli: The marketing
strategies like advertisement and publicity creates
a psychological impact on the buyer’s perception
of a product’s visible features.
 Social Stimuli: The social stimuli comprises of
the various environmental factors which are
considered as a source of information for the
buyers. It includes family, social class and
reference groups.
Hypothetical Constructs

 The hypothetical constructs depict the central

part of the model. It includes all those
psychological variables which play a vital role
in the buyer’s decision-making process.
 It can be further bifurcated into the following
two categories:
 Perceptual Constructs
 Learning constructs
Perceptual constructs

 These components define the consumer’s

procurement and perception of the
information provided at the input stage.
 It is an essential element since it drives the
buyer’s brand selection and purchases,
which includes:
 Attention/Sensitivity to Information: The
buyer’s level of understanding or openness
towards the information received by him/her.
 Stimulus Ambiguity:- occurs when the
consumer does not understand the message
from the environment.
 Perceptual Bias: On the grounds of
individual perception of each brand, the
buyer is partial towards a particular brand.
 Search for Information: The buyer also
seeks for more information to ensure the right
decision-making.
Learning Constructs
 The learning constructs define the buyer’s
knowledge, opinion, attitude and end decision on
product or brand selection.
 Following are the various learning constructs of a
buyer:
 Motive: The specific goal or purpose for which
the product purchase is carried out.
 Choice Criteria: The set of principles or
benchmarks defined for product selection.
 Brand Comprehension:
 Brand comprehension:- The information about the product
or brand pertained by the buyer.
 Attitude: The buyer’s perspective and willingness to
purchase a product of a particular brand defines his/her
attitude.
 Confidence: The trust or faith of the buyer in a specific
brand and its products builds his/her confidence.
 Intention: The buyer’s purchase motive, preference criteria,
brand comprehension, consumer attitude and confidence,
results in the selection of a particular brand.
 Satisfaction: After-purchase, the buyer evaluates his/her
level of contentment, to find out whether the product has
fulfilled the expectations or not.
 Output Variables
 The output or as we say, the result of the buyer’s decision-
making can be seen in the form of his/her response towards
the input variables.
 It consists of five major components which are arranged
systematically below:
 Attention: The buyer’s level of concentration and alertness
with which he/she understands the information provided, is
termed as attention.
 Brand Comprehension: The awareness of the buyer
regarding a particular brand and its products is known as
brand comprehension.
 Attitude: The buyer’s evaluation of a brand in
terms of individual likes and dislikes,
determines his/her behavior, interest and
awareness towards it.
 Intention: The aim or objective of the buyer
for purchasing a product can be seen as the
buying intention.
 Purchase Behavior: All the above elements
result in the actual purchase of a product by
the buyer.
 Exogenous Variables
 There are certain other external factors which influence
the buying behavior of an individual or a firm by
hampering the product purchase of a preferred brand.
 The exogenous variables are the environmental forces
or components of this model. Some of them are:-
 Importance of Purchase: If the buyer perceives the
product to be less crucial, involving a low cost, then
there is a little brand preference.
 Social Class: A buyer’s social group, including the
family, friends and other reference groups impact the
selection or rejection of a particular brand.
 Culture: The buyer’s values, beliefs and ideas frame
his/her purchase motive and inhibitors.
 Time Pressure: The buyer, at times, is under the
pressure of taking a timely decision, which makes
him/her look for alternatives if the product of the
preferred brand is unavailable at the moment.
 Financial Status: The buyer’s inability to purchase a
product or affordability restricts him/her from buying it.
Engel, Kollat and Blackwell
Model
This model was proposed by Engel, Kollat and
Blackwell in 1968. Later this model went
through several revisions, updates, and
improvements to become the Engel, Blackwell,
and Miniard Model (EBM) in the 1990s.
The Engel Kollat Blackwell model describes
consumer behavior as a 6-step decision-
making process involving problem recognition,
information search, alternative
evaluation,choice,purchase decision and
outcome,
 The model also considers how external
factors like culture, social class, and
reference groups as well as internal factors
like motivation, personality, and knowledge
influence the consumer’s decision journey. A
key feature is distinguishing between high
and low involvement purchases based on
perceived risk.
 The Engel Kollat Blackwell Model of
Consumer Behavior consists of four distinct
components/elements/stages:-
 Information Input Stage
 Information Processing Stage
 Decision Process Stage
 Variables Influencing the Decision
Process
1. Information Input Stage:
The input includes all kinds of stimuli that a

person is exposed to- Internal stimuli and

external stimuli.
Internal stimuli, normally physiological or

emotional needs, such as hunger, thirst,

sickness, sleepiness, sadness, jealousy, etc.
External stimuli, like an advertisement, the

smell of yummy food, etc.

 They trigger specific behavior patterns in
people. The consumer is exposed to a
number of things in the outside world, both
marketing, and non-marketing items, to make
decisions about his or her life. It may include
the price or value of a product, the brand, and
identity of a company, etc.
 2. Information Processing Stage: This
stage consists of the consumer’s exposure,
attention,comprehension, acceptance, and
retention of incoming information. The
consumer must first be exposed to the
message, allocate space for this information,
interpret the stimuli, and retain the message
by transferring the input to long-term
memory.
 Exposure :- The consumer comes into contact with the
message. Factors like ad placement can influence
exposure.
 Attention:- The consumer becomes aware of the
message. Attention is selective, limited, and can be
divided.
 Comprehension:- The consumer interprets or
understands the message. Clear and compelling
communication is crucial here.
 Acceptance:- the stimulus influences the person’s
knowledge and attitude.
 Retention:- The consumer retains the
information. Effective messages are memorable and
influence the consumer's future decisions or actions. E.g
mountain due dhar ke aage jeet hai .
 3. Decision Process Stage: The central
focus of the EKB model is on five basic
decision-process stages: Problem
recognition, search for alternatives, alternate
evaluation (during which beliefs may lead to
the formation of attitudes, which in turn may
result in a purchase intention), choice,
purchase, and outcomes. But it is not
necessary for every consumer to go through
all these stages; it depends on whether it is
an extended or a routine problem-solving
behavior.
fti

 4. Variables Influencing the Decision

Process: This stage consists of individual
and environmental influences that affect all 6
stages of the decision process. Individual
characteristics include motives, belief,
attitude, lifestyle, and personality; the social
influences are culture, reference groups, and
family. Situational influences, such as a
consumer’s financial condition, also influence
the decision process.
Decision variables
 Belief:- mental evaluations that consumers
have about products, brands, services etc.
 Attitude:- responding positively or negatively
on the basis of belief, experience with the
product/service, feelings, etc.
 Motive:- reason to buy a product. It can be
emotional motive like making someone
happy, feeling confident or it can be rational
motive like needing a product e.g mobile
phone, car for convenience.
 Lifestyle:- refers to the way consumers live
and spend their time and money. It is
influenced by needs, wants, family, social
class, culture etc.
 Normative compliance:- compliance means
abiding and normative compliance means
abiding to the norms/values of the society.
Consumer Research

 Consumer research, also known as market

research or consumer insights research,
 is defined as the process of collecting and
analyzing information about consumers’
preferences, behaviors, and attitudes toward
products, services, brands, or market trends.
 This type of research is essential for
businesses to make informed decisions
about their marketing strategies, product
development, and overall business planning.
 Consumer research helps companies
understand their target audience, identify
market opportunities, and stay competitive in
the marketplace.
 It helps in:-
 Understanding the consumer behaviour
 Market Segmentation: identifying the suitable
segment to serve(to offer goods/services)
 Product Development: bringing innovations in
existing products and introducing new
products/services
 Competitive Analysis: understanding the
strengths and weaknesses of competitors
 Customer Satisfaction: understanding the
satisfaction level of customers
 Trend Analysis: monitor market trends,
consumer sentiment, and emerging
technologies to help businesses stay ahead
 Types of Consumer Research
Consumer research can be conducted in two ways:-
Primary research is research you conduct yourself. In other

words, in primary research, you collect the data yourself.

Some examples of primary research are face-to-face
interviews, surveys, and social media interactions.
Secondary research (or desk research) is done by someone

else. In secondary research, you make use of data that’s

been collected by other people. A few examples of
secondary research are forums or communities, industry
reports, journals, magazines and online databases.
 On the basis of data
 Primary and secondary research can be further broken
down into two kinds of data: qualitative and quantitative.
 Qualitative data is descriptive and conceptual. And the
nature of the data makes it subjective and interpretive.
Examples of qualitative data include descriptions of certain
attributes, such as blue eyes or chocolate-flavored ice
cream. Do you like chocolate ice cream? Yes or NO.
 Quantitative data can be expressed using numbers, which
means it can be counted or measured. As opposed to
qualitative data, it’s objective and conclusive. Examples of
quantitative data include numerical values such
as measurements, length, cost, or weight.
METHODS OF CONSUMER
RESEARCH

Consumer Research Methods

Consumer research methods encompass a
variety of techniques and approaches to gather
information about consumers’ preferences,
behaviors, and attitudes. The choice of method
depends on the research objectives, available
resources, and the nature of the information
being sought. Here are some common consumer
research methods:
 1. Surveys: Surveys are structured
questionnaires administered to a sample of
respondents. They can be conducted in
person, over the phone, via email, or online.
Surveys are versatile and can gather
quantitative data on a wide range of topics.
 2. Focus Groups: Focus groups involve a
small group of participants (typically 6-12)
who discuss a specific product, service, or
topic under the guidance of a moderator.
These discussions provide qualitative
research insights into consumer opinions and
perceptions.

 3. In-Depth Interviews: In-depth interviews
encompass individual, one-on-one dialogues
between a researcher and a participant.
These interviews can be highly structured or
more open-ended, allowing for detailed
exploration of consumer perspectives.

4. Observational Research: Researchers
directly observe consumer behavior in real-life
settings. This can involve watching shoppers in
stores, tracking website interactions, or
recording how consumers use a product in their
homes. Observational research is valuable for
understanding actual behavior.
5. Online Analytics: Analyzing website and
social media metrics can provide insights into
consumer behavior online. This includes
tracking website traffic, click-through rates,
conversion rates, and social media
engagement.
 6. Online Surveys: Conducting surveys
online is cost-effective and can reach a large
audience. Online survey platforms make it
easy to design, distribute, and analyze
surveys, and they often allow for targeting
specific demographics.
 Secondary Data Analysis: Researchers
analyze existing data sources, such as
government reports, industry publications, or
academic studies, to gather insights about
consumer trends, demographics, or market
conditions.
METHODS OF CONSUMER
RESEARCH
Unit II Motivation
 Motivation
 In motivation process, three terms are related:
 1. Drive (Motive):- An unobservable inner force
that stimulates a behaviour(e.g. hunger, to be
employed)
 [Link]:- to be fulfilled/drive that you are ready to
fulfill (e.g a need for food, hard work).
 3. Goal:- the result or achievement towards
which behaviour is directed(e.g eating something
e.g sandwich to fulfill the need for food; to
become a doctor)
Motivation
 The word Motivation is derived from the word
motive means an urge (inner force) to do something
or not to do something.
 Motive is derived from the Latin word, move’re-
meaning to move.
 Motivation is the act or process by which the needs
and desires of a person move him towards some
action. E.g to achieve excellence in education we
study hard.
 Motives are often classified as primary or
basic which are unlearned and common to
both animals and humans; and, Secondary or
leaned motives which can differ from animal
to animal and person to person.
 Primary motives include hunger, thirst,
avoidance of pain, aggression, fear etc.
secondary motives in human include
achievement, power motivation, status etc.
 Types of needs/motives
 Innate needs: These are the needs which are present in an
individual from the time he is born and remain throughout
his lifetime. Such needs are physiological (biogenic) in
nature. Those factors that are necessary for sustaining life,
shelter, food, clothing and water are called innate needs.
 Acquired needs: These are the needs which develop after
birth and are usually psychological. They are also referred
to as psychogenic, i.e., generated in one’s psyche.
Affection , acceptance, esteem and self-fulfilment are
examples of acquired needs. For every need, there are
numerous different goals.
 Dynamic nature of
Motivation is highly dynamic and is constantly changing in
motivation
reaction to life experience. This can be best understood with
the help of following points:-
[Link] are never completely satisfied. Most human needs are
not fully or permanently satisfied. E.g Everyday in the
morning we experience the need to have a cup of tea.
[Link] needs emerge as old needs are satisfied:- As needs are
satisfied they are replaced by new ones. Some motivational
theorists are of the opinion that a hierarchy of needs exist,
which imply that fulfilment of lower-order needs leads to
new, higher-order needs. Marketers should be tuned to
changing needs.
3. Success and failures influence goals:-
Researchers have concluded that individuals who
successfully achieve their goals usually set new and
higher goals for themselves, that is, there is the level
of aspiration. This may be due the fact that there
success in reaching lower goals makes them more
confident of the ability to reach higher goals. E.g A
family that manages money for a trip worth Rs 5
lakh, may manage 6 lakh next year for another trip.
Or a person who easily gets a job in a small company,
beomes confident to get the same in a big company
On the other hand who do not reach their goal
sometimes lower their level of aspiration.
4. Substitute goal Researchers consider that the behaviour of
an individual will be directed to a substitute goal when he
fails in attaining a certain goal which he considers will fulfil
a specific need. The goal that substitutes the main one may
not be as satisfactory as the latter, but it will help in
relieving the need-induced tension to some extent, thereby
reducing the feeling of frustration. E.g those who cannot
afford an android smart phone, buy non android phone to
get basic communication benefit. E.g a student who fails to
get admission in CA may get admission in BBA/[Link].
 5. Frustration and defense mechanism
 Failure to achieve a goal often results in feeling of
frustration and each individual’s reaction to a
frustrating situation is different.
 Adaptive people try to derive fulfilment by choosing
an alternate goal. Those who are not very adaptive
feel that the fact that they are unable to derive
personal fulfilment is a personal failure and hence,
they face anxiety.
 Those who cannot cope with frustration, they
mentally redefine the frustrating situation in order to
protect their self image and self esteem.e.g if you
have a craving for a pizza, or a burger but you are
unable to get it right now, you start saying that it is
unhealthy.
 Also, e.g., if you are unable to become an IAS
officer, you can discuss about extra pressure of
resposibilities and lack of quality time for your social
life to make your mind relax on failure.
Perception
It is an intellectual process though which a
person selects the data from the environment,
organises it and obtains meaning from it.
Perception is defined as the cognitive process

by which people attend to incoming stimuli,

organize and interpret such stimuli into
behaviour.
Perception can also be defined as a process

by which individuals organize and interpret their

sensory impressions to give meaning to their
environment. (Stephen Robbins)
 In other words, Perception is the process of
interpreting, organizing, and selecting
information from our senses to understand
the world around us.
 The five senses of perception are sight,
hearing, smell, taste and touch.
 E.g looking towards the glass of water with
vapours we perceive that the water is hot.
 Also, by listening to the siren of fire brigade
we peceive that somewhere the fire is set on.
 Different people have different thinking styles,
beliefs, feelings, objectives etc. and almost
every individual behaves accordingly.
Because of these factors, different people
take different meanings for the same thing.
 Customer perception is the opinions,
feelings, and beliefs customers have about
your brand. It plays an important role in
building customer loyalty and retention as
well as brand reputation and awareness.
 Perception process:-
elements
[Link] inputs :
 This is the first stage in the perception process
where the perceiver comes across various
information in the form of object, events, people
etc., all these factors exist in the environment
itself. These factors provide stimuli to the
perceiver.
 2. Perceptual Mechanism
 This involves 3 elements:
 Selection of stimuli
 Organisation of stimuli
 Interpretation of stimuli
 Selection of Stimuli
 The perceptual act of attending to some
stimuli in the environment and ignoring
others.

It involves focusing attention on certain

sights,
sounds, tastes, touches, or smells from our
environment.
 Organisation of Stimuli
 The perceptual process of organizing stimuli
into patterns.

This step occurs after we have selected

information from our environment and we
must mentally arrange it in some meaningful
way to make sense of the world.
 3. Interpretation of Stimuli
 The perceptual process of attaching meaning
to stimuli that have previously been selected
and organized.

 This is done by making an assumption about

people, by using past experiences etc.
Perceptual output
i) These outputs may be in the form of covert
action like development of belief(faith),
attitude, opinions, impressions etc. about
the stimuli.
ii) It may also result in overt action e.g.,
 See an ad-stimuli (input)
 Perceive the product as good (Mechanism)
 Buy the product (overt output)
Learning :-Concept and
principles
 Learning is defined as the process of
acquiring knowledge or skills through
experience.
 It is characterized by relatively(comparatively)
permanent changes in behaviour, knowledge,
attitudes, or skills.
 A key feature of learning is permanence.
Changes can not be counted as learning if
they are temporary.
Consumer learning
 Consumer Learning refers to the process by
which consumers change their behaviour
after they gain information or experience.
 It can affect what consumers buy, how they
shop, and their attitudes, preferences, values,
feelings and symbolic meanings.
 People with no experience about a product or
brand generally seek out more information
than people who have used a product before.
Consumer Learning cont..

 Companies try to get consumers to learn

about their products in different ways.
 For example:- Car dealers offer test drives.
Pharmaceutical representatives leave
samples and brochures at doctor’s offices.
 To promote its new line of coffees,
McDonald’s offered customers free samples
to try.
 Elements of learning
 1. Motivation :-
Motivation is important for learning because it is
based on needs and goals e.g., losing weight (is
the aim).
2. Cues:-
Are the stimuli that give direction to these motives.
E.g An advertisement showing weight losing tea.
3. Response:-
How individuals react to a cue constitute their
response e.g buying weight losing tea.
 4. Reinforcement:-
 The reward- the pleasure, enjoyment and
benefits – that the consumer receives after
buying and using a product or service is
called reinforcement.
 Reinforcement is critical to the learning
process and can significantly impact future
purchases.
 Principles/Laws of Learning
There are seven general principles of learning:-
[Link] of Readiness implies a degree of
willingness and eagerness of an individual to learn
something new. Individuals learn best when they are
physically, mentally and emotionally ready to learn-
and they do not learn well if they see no reason for
learning. when consumers are motivated to buy
something, they listen/watch relevant information with
concentration.
2. Principle of Exercise states that those things which

are most often repeated are best remembered.

Companies repeatedly show ads to make consumers
remember their brand.
 [Link] of Effect implies that learning is
strengthened when accompanied by a pleasant or
satisfying feeling and that learning is weakened
when associated with an unpleasant feeling that is
why companies use songs, music, celebreties in the
commercials (ads).
 [Link] of Primacy the things you learn first often
create a strong impression which can be very
difficult to change. E.g when mobile communication
was started for the first time in J&K, the handsets
used by most of the subscribers were Nokia and the
service was provided by BSNL.
 5. Principle of Recency states that things most
recently learned are best remembered.
e.g yesterday u had a lunch in a restaurant which
was of best quality will be most remembered for
a month or long.
 6. Principle of Intensity implies that a learner will

learn more from the real thing than from a

substitute. A sharp, clear, dramatic or excited
learning experience teaches more than a routine
or boring experience. E.g various historical
events/topics are presented in the form of movies
nowadays.
7. principle of freedom states that things freely
learned are learned best. Conversely, if the
audience is forced to learn something, the more
difficult it is for them to learn.
Theories of learning

 Cognitive theory of learning

 Behavioural theory of learning
 Social theory of learning
 1. Cognitive theory of
 learning
Is given by Jean Piaget in 1930s.
 The word cognitive is derived from cognition
which describes the ability to think, perceive,
remember and solve problems
 It focuses on attention, memory and information
processing contributing knowledge acquisition.
 This theory explores that thinking process affect
learning through internal and external factors.
Cont..

 Internal factors influencing thinking and

learning include concentration, distraction,
emotions (fear, sadness, joy) etc.
 External factors that can impact how we
think include our physical surroundings
(family, friends, society, environment) and our
society’s value of the information itself (e.g
society values doctors and most of the
students prefer MBBS)
 2. Behavioural theory of
learning
 developed by J.B. Watson in 1913.

 Behavioral learning theory, also known as

behaviorism, explains that people learn through
their interactions with the environment.
 The theory states all behaviours are learned
through conditioning - a process of
reinforcement (reward )and punishment.
 People learn by associating a stimulus with a
reward or punishment. For example, if someone
receives praise for completing a task, they are
more likely to repeat that behavior in the future.
 Cont..

 The theory focuses on how people respond to

environmental stimuli and are less concerned
with internal mental process.
a. Classical conditioning
theory
 Given by Ivan Pavlov in 1897.

 Conducted an experiment on dogs.

 Pavlov had identified a fundamental associative
learning process called classicconditioning.
 Classical conditioning refers to learning that
occurs when a neutral stimulus (e.g., a tone)
becomes associated with a stimulus (e.g., food) that
naturally produces a behaviour.
 After the association is learned, the previously neutral
stimulus is sufficient to produce the behaviour.
Terms used to identify the stimuli and
the responses in classical
conditioning.
 The unconditioned stimulus (US) is something (such

as food) that triggers a naturally occurring response, and

the unconditioned response (UR) is the naturally
occurring response (such as salivation) that follows the
unconditioned stimulus.
 The conditioned stimulus (CS) is a neutral stimulus
that, after being repeatedly presented prior to the
unconditioned stimulus, evokes a similar response as
the unconditioned stimulus. In Pavlov’s experiment, the
sound of the tone served as the conditioned stimulus
that, after learning, produced the conditioned response
(CR), which is the acquired response to the formerly
neutral stimulus. Note that the UR and the CR are the
same behaviour — in this case salivation — but they are
given different names because they are produced by
Cont..
 b. Operant conditioning
 theory
B. F. Skinner proposed the theory of operant conditioning
in 1937.
 also known as instrumental conditioning or Skinnerian

conditioning.
 is a learning method that uses rewards and punishments to

modify behavior.
Instrumental learning theorists believe that learning occurs
through a trial-and-error process, with habits formed as a
result of rewards received for certain responses or behaviors.
 Behaviors that are rewarded are more likely to be

repeated. For example, if you get a bonus at work for

exceptional performance, you're likely to continue performing
at a high level to get another bonus.
Cont…
 Behaviors that are punished are less likely
to happen. E.g if you get deductions in
your salary for late arrival, you will try to
reach on time.
 Behavior that is reinforced (rewarded) tends
to be repeated (i.e., strengthened); behavior
that is not reinforced tends to die out or be
extinguished (i.e., weakened).
 Skinner studied operant conditioning by
conducting experiments using animals, which
he placed in a “Skinner Box,”
Cont..
Cont..

 A Skinner box, also known as an operant

conditioning chamber, is a device used to
objectively record an animal’s behavior in a
compressed time frame. An animal can be
rewarded or punished for engaging in certain
behaviors, such as lever pressing (for rats) or
key pecking (for pigeons).
Cont..

 For example, when rats press a lever when a

green light is on, they receive a food pellet as
a reward. When they press the lever when a
red light is on, they receive a mild electric
shock. As a result, they learn to press the
lever when the green light is on and avoid
lever pressing when the red light is on.
Principles of Operant
Conditioning
The five principles of operant conditioning are
positive reinforcement,

negative reinforcement,

positive punishment,

negative punishment, and

extinction.
 Cont..
 In operant conditioning, the words "positive" and "negative"
don't mean good and bad, but rather adding or taking away
something. Reinforcement increases the likelihood of a
behavior, while punishment decreases it.
1. Positive Reinforcement In positive reinforcement, a
response or behavior is strengthened by rewards, leading to
the repetition of the desired behavior. For example, if a
customer is given a free chocolate each time for dinner in a
restaurant (i.e., a reward), he will be more likely to repeat this
behavior in the future, thus strengthening the behavior of
coming again to our restaurant.
2. Negative Reinforcement In negative reinforcement , a
response is strengthened by the removal of something
considered unpleasant. e.g regular customers will be served
on priority basis and need not to wait for food for more than
5 minutes (as waiting for food is undesirable)
 Cont..
3. Positive punishment:- Positive punishment involves adding
an aversive stimulus or something unpleasant immediately
following a behavior to decrease the likelihood of that behavior
happening in the future. It aims to weaken the target behavior
by associating it with an undesirable consequence.
Example 1:- A child receives a scolding (an aversive stimulus)
from their parent immediately after hitting his sibling. This is
intended to decrease the likelihood of the child hitting his
sibling again.
Example 2:- adding a harmful chemicals/ingredients in
products will result in loss of future sales.

 Cont..
 4. Negative punishment:-
 Negative punishment involves removing a desirable stimulus
or something rewarding immediately following a behavior to
decrease the likelihood of that behavior happening in the
future.
 It aims to weaken the target behavior by taking away
something the individual values or enjoys.
 Example1: A teenager loses his video game privileges (a
desirable stimulus) for not completing his homework. This is
intended to decrease the likelihood of the teenager neglecting
his homework in the future.
 Example 2:- lack of fruit pulp in a fruit juice or lack of dry fruits
in a fruit cake results in decreased sales and profitability.
 3. Social learning theory
 Albert Bandura is credited with developing the social learning
theory, which he outlined in his book in 1977.
 Albert Bandura developed the SLT in response to the
limitations of behavioral theories of learning. While
behaviorists focused on how the environment and
reinforcement affect behavior, Bandura recognized that
people learn by observing how others behave, including the
rewards and punishment they receive.
 The theory combines many of the ideas behind the
traditional learning theory or behaviorism and cognitive
learning approaches. It aimed to study socialization and how
it affects human behavior and ultimately, enables individuals
to acquire knowledge, skills and beliefs through
observational learning.
Bobo Doll Experiment
 He is most widely known for his 1961 Bobo Doll experiment, a
pioneering study on aggression, in which he had different
groups of preschool-age children watch adults indulge in
aggressive and nonaggressive behaviors toward an inflatable
clown-faced toy.
 Some children were assigned to the aggressive group, where
they were made to watch the adults violently beating the doll,
assaulting it with various objects and even verbally abusing it.
Then, Bandura and his co-researchers gave these children
hammers, mallets, dart guns and other "toys" and asked them
to interact with the doll. Some of the other children were
assigned to the nonaggressive group, where they witnessed
adults indulging in positive behaviors toward the doll.
Bobo doll
 Cont…
 The children in the first group who witnessed the adults' aggressive
behavior toward the doll mimicked these behaviors and acted violently
toward it. Similarly, most of the children in the other group also mimicked
the nonaggressive adults' behaviors to display positive behaviors toward
the doll.
 Bandura later repeated the experiment, this time exposing the children to
adults behaving violently toward the bobo doll on videotape. He found
that many children who were assigned to the aggressive behavior group
in the first experiment continued to model the adults' behavior even while
they were not watching the behaviors in real time during the second
experiment. Ultimately, Bandura concluded that children, and indeed, all
humans, tend to learn social behaviors through interactions with and
observations of other humans -- a conclusion that formed the basis for his
social learning theory.
Personality

 The term personality is derived from the Latin

word ‘persona’ which means a mask.
 It is the sum total of all attributes/qualities-
physical, mental, moral, social etc. that
diffentiates a person from others.
 It is the totality of behaviour of an individual.
 Personality is defined as: the enduring or
lasting patterns of behaviour and
thought(across time and situations).
personality in consumer
behaviour
 Personality describes the unique patterns of
thoughts, feelings, and behaviours that
distinguish a person from others.
 The identification of specific personality
characteristics associated with consumer
behaviour has proven to be highly useful in
the development of firms’ market
segmentation strategies.
 Nature of Personality
 1. personality is relatively stable but
dynamic(changing) in nature.. Like an aggressive
person remains always aggressive but some
events may bring change e.g marriage, good
friend, better job etc.
 2. personality helps in adjusting the individual with
the environment. E.g extroverts are social and
make more friends than introverts.
 [Link] is consistent.
 [Link] is unique.
Thoeries of personality

 Psycho analytical theory of personality

 Trait theory of personality
Psycho analytical theory of
personality
 This theory is given by Sigmund Freud in
1896.
 Freud believed that human behaviour is
motivated by the elements of Id, Ego and
Super Ego.
 The theory assumes that much of mental set
up belongs to unconscious part(about which
you are unaware)i.e Id component.
 And past experiences, especially in early
childhood, shape how a person feels and
behaves throughout life.
Freud’s Theory:- 3 Levels of
Human Mind
1. The conscious mind:
It includes everything like thoughts, feelings and
actions of which people are currently aware of.
For example: while having your breakfast, your
mind might be thinking about the recipe or taste
of the dish. These thoughts occur in the
conscious mind.
Or Presently you are receiving knowledge on
Freud’s theory
 When we receive information from our senses, analyse
it, and then make decisions based on that information,
we are utilising our conscious mind.
 For instance, you may be conscious of the information
you’re reading, the sound of the music you’re listening
to, or the content of a conversation you’re having at the
moment. All of the thoughts that pass through your mind,
all of the sensations and perceptions from the outside
world, are all a part of that conscious experience.
2. The Preconscious/Subconscious mind:-
Preconscious mind includes all mental activities
which are not presently active but stored
somewhere in our memory. It can be easily
accessed when required. For example: if you are
asked about your father’s name, you would pull it
from your memory and can tell.
Preconscious awareness can be brought to
conscious whenever you want.
 Every experience, thought, and impression
you’ve ever had is stored in your subconscious
mind and has a far greater influence on our
thought and behaviour patterns.
 The subconscious stores information just
beneath the level of conscious awareness.
Individuals can retrieve such information
relatively easily, and these are commonly
referred to as memories.
3. The unconscious mind :-
It includes mental activity that people are unaware
of. According to Freud, some of the feelings ,
thoughts, urges and emotions that our conscious
mind wants to hide, buried into unconscious mind,
influence some of our unexplained behavior.
we are unable to readily access the information

stored in the unconscious mind.

 Throughout our childhood, we accumulated a
variety of memories and experiences that
shaped our current beliefs, fears, and
insecurities. However, we are unable to recall
the majority of these memories. They are
unseen forces that influence our behaviour.
 These three levels of mind often represented as
an iceberg. Everything above the water
represents conscious awareness, while
everything below the water represents
the preconscious and unconsciousness. Only
10% of an iceberg is visible (conscious) whereas
the other 90% is under the water (preconscious
and unconscious).The Preconscious mind covers
10% -15% whereas the Unconscious is allotted to
75%-80%.
Freud’s Ice berg Morphology
Components of Psycho-Analytical
Theory
 Id:-
 The Id is the only component of personality that
is present from birth.
 Id is driven by the Pleasure Principle, which
strives for immediate gratification of all desires,
wants and needs. If these needs are not
satisfied immediately, the result is a state of
tension or anxiety.
 It is irrational and does not take care of moral
values and norms.
 For example:- an increase in hunger or thirst
should produce an immediate attempt to eat or
drink.
Ego:-
Ego is based on reality principal.

It is the decision making part of mind.

It is patient, rational and reasonable part of

human personality.
It seeks to satisfy individual’s needs in

accordance with reality.

It acts as a mediator between Id and Super

ego and tries to maintain balance between

them.
 E.g if a person is hungry and he does not
have money to buy food, id says get food
immediately whether to steal food from
anybody or to steal money.
 Ego on the other hand says, let me ask for a
help from restaurant owner to provide me
free little bit food to eat.
Super Ego:-
It is aspect of personality which is acquired and learnt from

others.
It tells the Id and Ego that whether the gratification/satisfaction

in a particular instance is ethical or not.

It works on the morality principle and give emphasis to

societal values and norms.

It tells us about what is right and what is wrong, what is good

and what is bad, what should be done and what should not be
done.
 E.g In the previous example, Id says steal
either food or money to satisfy need
(hunger) immediately. Super Ego says no
that is wrong and immoral practice.
 Ego says let us arrange food some other
way.
Freud’s theory and consumer
behaviour
 The researchers using Frued’s theory in knowing
the influence of personality in consumers
behaviour see that most of the human drives are
largely unconscious i,e arised due to Id
component of personality and that consumers
are primarily unaware of their true reasons for
purchasing what they buy.
 E.g drive for having BMW car. Why to buy
expensive car if the relative benefit is provided
by an ordinary car.
 Trait Theory of Personality
 Trait theorists are primarily interested in the measurement
of traits, which can be defined as habitual patterns of
behavior, thought, and emotion. According to this perspective,
traits are aspects of personality that are relatively stable over
time, differ across individuals (e.g. some people are outgoing
whereas others are not), are relatively consistent over
situations, and influence behaviour.
 The trait theory of personality suggests that people have
certain basic traits, and it is the strength and intensity of those
traits that account for personality differences.
 The first trait theory was proposed by
psychologist Gordon Allport in 1936.
 Allport found that one English-language dictionary
contained more than 4,000 words
describing different personality traits. He
categorized these traits into three levels: cardinal,
central, and secondary.
 1. Cardinal Traits
 Allport suggested that cardinal traits are rare and dominating, usually
developing later in life. They tend to define a person to such an extent
that their names become synonymous with their personality.
 Like other personality traits, cardinal traits are caused by genetic and
environmental factors.
 Most people do not have a cardinal trait, but a combination of several
central traits. However, famous or infamous historical figures are often
thought of in terms of their cardinal traits. Some examples include:

 Mother Teresa: Good, charitable

 Adolf Hitler: Evil, depraved
 Albert Einstein: Brilliant, intelligent
 2. Central TraitsAllport believed that central
traits are much more common than cardinal
traits and serve as the basic building blocks
of most people’s personality. If you think of
the major terms you might use to describe
your overall character, such as honest,
friendly, generous, or anxious, those are
probably your central traits.
 Allport suggested that most people have about five
to ten central traits. He also theorized that most
people have many of these traits to a certain
degree.
 These general characteristics form basic
personality foundations. While central traits are not
as dominating as cardinal traits, they describe the
major characteristics you might use to describe
another person. Descriptions such as "intelligent,"
"honest," "shy," and "anxious" refer to central
traits.
 [Link] Traits
 Secondary traits are sometimes related to
attitudes or preferences. They often appear
only in certain situations or under specific
circumstances.
 Some examples include public speaking
anxiety or impatience while waiting in line.
 Self Concept
 Self concept is a general term used to refer to
how someone thinks about, evaluates or
perceives themselves.
 Self concept can be positive and negative.
 Example1:- a person thinks of themselves as an
intelligent individual.
 Example 2:- a person thinks of themselves as a
competent employee.
 Example 3:- a person thinks of themselves as
cold and unapproachable.
 Example:- a person thinks of themselves as
lethargic and inefficient employee.

 Positive self concept provides you confidence

while as negative self concept may lead you
to anxiety or depression
Reasons behind positive and
negative self concept
Bruce. A .Bracken (1992) has given Six
domains/reasons related to self concept
1. social:- ability to interact others affects his
self concept (makes it positive or negative).
[Link]:- Ability to meet basic needs.
3. Affective:- awareness of emotional states –
your feelings and thoughts. Are you
Emotionally strong/weak. To what you are most
attached.
 [Link] :- your opinion relating to your
outlook, your health, your beauty, appearance.
 5. Academic:- how you have placed your self in

studies.
 6. family :- how an individual function in family,

what is your role in family. Are you youngest of

all or eldest. What sort of family responsibilities
you are having.
All the above six factors are responsible to make
one’s self concept positive or negative
 Different Self-images
 Actual self image:- how consumer’s see
themselves.
 Ideal self image:- how consumer’s would like to
see themselves.
 Social self image:- how consumer’s feel others
see them.
 Ideal social Self:- how consumers’ would like
others to see them.
Self concept and consumer
behaviour
 Self concept affect the consumer choice of
products/ services:-
 Self concept and product choice:-

Consumers tend to choose products that match

their self image. For example, consumers
may be more likely to buy a product that
matches their ideal self or social concept.
Self concept and brand attachment
Consumers may become more emotionally
attached to brands that enable their self
concept. For example, a brand that helps a
consumer achieve their ideal self may lead
to a higher level of attachment.
Self concept and conspicuous consumption
Self concept affect conspicuous consumption
and vice versa. Conspicuous consumption is
the practice of buying and displaying goods
or services to indicate one’s wealth, social
status or prestige.
 Life Style

 refers to the way consumers live and spend

their time and money.
 It is determined by one`s past experiences,
innate characteristics and life situations.
 Lifestyle of a person is typically influenced by
his/her needs, wants and motivations and also
by external factors such as culture, family,
reference group and social class.

 Lifestyle of a person involves his
consumption pattern, his behavior in the
market place, practices, habits, conventional
ways of doing things, allocation of income
and reasoned actions.
 It reflects an individual`s attitudes, values,
interests and his view towards the society.
 Characteristics of life Style
 t is a group phenomenon i.e. It influences others in
a social group.
 ♦ It influences all areas of one’s activities and
determines the buying behavior of a person.
 ♦ It implies a central life interest – A person`s main
interest or profession is influenced by his core
interests e.g. Food, Fashion, Music etc.
 ♦ It is affected by the social changes in the society
– A person`s standard of living and quality of
lifestyle increases with the increase in the
standards and quality of the society he/she lives
in.
 Lifestyle of a consumer depends upon various factors and any
change in one of these factors leads to a change in the
behavior of the consumer. These factors are as following:-
 ♦ Age
 ♦ Income
 ♦ Occupation
 ♦ Culture
 ♦ Education
 ♦ Social Group
 ♦ Buying Power
 Life Style and Consumer
 Behaviour
The products we consume are a part of our lifestyle.
Therefore, our lifestyle can be determined on the
basis of our consumption pattern. Lifestyle
segmentation is based on activities, interests and
opinions of a group. Marketers use the Activities,
Interests and Opinions (AIO) Model to find out about
the lifestyle of the consumers.
 Activities – How one spends his/her time
 Interests – A person’s priorities and preferences
make up their interest
 Opinions – One`s Feeling towards different events in
life
,

 Life style plays a crucial role in shaping

consumer behaviour. Life style choices affect
what products and services consumers
choose to buy. E.g environmentally
conscious individual may prefer eco-friendly
and sustainable products,while as health
conscious person may opt for organic and
healthy food options.
 A person’s lifestyle encompasses their
values, attitudes, interests, activities, and
opinions which in turn influence buying
decisions. It also influences brand
preferences. Consumers may align
themselves with brands that reflect their
values and aspirations.e.g individuals who
are fitness conscious may prefer sports and
outdoor brands.
 Life style is often used as a basis for
segmenting the market. Consumers may
adopt certain consumption behaviours to fit in
with their social group or seek social approval
e.g social media influence.
Attitude
 Consumer attitudes are the belief, feelings and intentions
that shape how people interact with your products and
services. These attitudes, formed from past experiences
and iteractions, influence their decisions and
perceptions.
 It refers to overall evaluations, feelings and
predispositions(inclination) individuals hold toward
products, brands, services, advertisements, and other
objects or entities in the market place.
 Attitudes are shaped by individuals beliefs(knowlege),
perceptions, experiences and social influences and they
influence their preferences, intentions, and behaviours.
 Attitudes can range from positive to negative
and can vary in strength and stability over
time.
 They guide consumer’s decision making
processes, influencing what they buy, how
much they are willing to pay, and how loyal
they are to certain brands or products.
 Understanding consumer attitudes is crucial
to marketers, as it allows them to tailor their
markting strategies to align with consumer
preferences and perceptions, ultimately
driving engagement and fostering brand
loyalty.
 self-experiences" are particularly influential
direct encounters with a product or service
that shape a consumer's perception. These
positive and negative experiences leave a
lasting impression and are crucial in shaping
consumer attitudes. As customers continue to
engage with your business, these self-
experiences evolve, impacting their overall
perception and future behaviors.
Components of Attitude

 Consumer attitudes consist of three

components:
 The cognitive component involves a
consumer's beliefs or knowledge about a
product or service. For example, a person
might believe that a specific brand of shoes is
durable and comfortable.
 The affective component includes a
consumer's feelings or emotional responses
towards a product or service. For example, a
customer may feel excited or satisfied after
using a new smartphone.
 The behavioral component refers to how a
consumer intends to act or behave towards a
product or service. An example would be a
customer who regularly purchases organic
food due to their commitment to healthy
living.
 Favorable consumer attitudes can be a
significant asset, leading to repeat purchases
and positive word-of-mouth
marketing. Conversely, unfavorable attitudes
pose a risk, potentially deterring others from
engaging with your brand.
 Changing consumer attitudes can be
challenging, often requiring a deep
understanding of existing perceptions and
behaviors. However, addressing these insights
can influence and shift these attitudes through
new information or experiences.
 Strategies of
Attitude
A tendency to respond Change
positively or negatively towards a certain
idea, object, person or situation is called Attitude.
Our attitudes are formed by the influence of the personal
experience, social media, and even from the environment.
Therefore, the key strategy for the marketers is to alter the
attitudes of the consumers.
The aim of the marketers is to create a positive attitude in
consumer minds to attract the product comparison to competitor’s.
Generally, it is very difficult to change the attitude of the
consumers when they suspect that the marketer has a self-
serving agenda in bringing about this change.
Attitude change of
Consumers
[Link] the Motivational Function
Making new needs visible might help to change a

consumer's negative attitude about a product or brand into

positive one.
To that end, the product's utility, value, and understanding

may be emphasized while safeguarding the buyer's ego

and social position while presenting the new product or
brand. Customers often believe that any new product or
brand is superior to the prior one. Sellers also take
advantage of the consumer's willingness to accept obvious
cost benefits, higher efficacy, and value for money.

 Examples:-
 Offering products that replace uncertainty
with a sense of security and confidence
(Paraben and alcohol free cosmetics).
 Fuel efficient and environment friendly cars.
 Hormone free meat and poultry.
 BPA (bisphenol A- chemical used in
production of plastic items) free containers.
2. Associating the Product with a Specific Group or Event
Customers are ready to accept if a product is believed to be

used by a celebrity or a person of high status or if it is

associated with a national or international event. The more
worldwide the relationship, the more enthused the customer is
about it.
Also, regardless of the product's quality, if its relationship is

with an individual, group, or event that the buyer does not find
significant or fascinating, he or she is often put off (lose interest)
by the prospect of acquiring it.
3. Resolving two conflict attitudes
Customers often establish logical attitudes before
acting in a market context. Hence, attitudes
typically precede behavior, but a product may
cause competing(contrary) attitudes to interact
when consumers make purchasing decisions.
A consumer possess positive and negative attitude
of the same product/brand.
 E.g I like fruit juice and have a positive
attitude but at the same time I know
that it leads to weight gain, so I don’t
consume it, now companies can alter
the product in such a way that I believe
that It will not lead to weight gain. E.g
adding Honey in place of Sugar
 Atttitude change strategies sometimes resolve
actual or potential conflict between two
attitudes.
if consumers can be made to see that their
negative attitude toward a product is not in
conflict with another attitude, they may be
induced to change their evaluation.
Example, usually detergent powders clean
clothes but at the same time cause harm to the
skin and also to the environment. By providing
detergents that are skin friendly can change the
 By providing detergents that are made in
natural way, are skin friendly and also
environment friendly may be preferred by the
customers.
 E.g electronic vehicles in place of petrol or
diesel vehicles will be preferred .
 Two well-documented theories describe
the type of attitude change that may occur
in these situations: Cognitive Dissonance
Theory and Attribution Theory.
A. Cognitive Dissonance Theory
According to the Cognitive Dissonance Theory, a consumer feels

uneasy when obtaining new knowledge regarding a belief or

attitude that contradicts his or her previous sentiments or
conceptions. Nevertheless, customers are concerned about their
previous ideas and deeds. Such sensations are essential agents
of attitudinal shifts in consumers, who modify their attitudes to
restore harmony with natural buying behavior. An example will
demonstrate how this occurs. If you frequently use a brand of
toothpaste and think that "all fluoride toothpaste is unpleasant,";
one day you notice a fluoride toothpaste of your brand in the
store, a schism forms inside your mind since you prefer the
toothpaste you are used to. In many circumstances, this condition
may emerge to overthrow earlier attitudes.
B Attribution Theory
Attribution Theory seeks to explain how

individuals assign reasons or causes to events

and actions.
Consumers may attribute outcomes to internal

factors like their own preferences and decisions

or external factors such as influence of
advertising or recommendations. This
perception of causality shapes their views on
products and services.
 For instance, if a consumer believes their
satisfaction with a product is due to the
products’ high quality (an internal attribution),
they are more likely to repurchase and
recommend it.
 Conversely, if they think their satisfaction is
due to an external factor, such as sales
promotion, this may not foster long term
loyalty
4. Altering the Components of the Brand
Creating new models of the product with new features, benefits, uses
etc.
E.G creating Mobile Phone with USB Compatibility.
E.G, creating Refrigerator with Oven included in it.
Marketers typically leverage customer post-buy dissonance to

promote new items and brands, knowing that the consumer might be
driven to make efforts to resolve the conflict that has emerged in their
heads over the purchase. They do this by minimally altering the brand's
components, making the product seem incredibly similar to the original,
and then emphasizing the good characteristics that entice the client to
purchase it.
Marketers attempt to transmit signals that support customer decisions

while relieving consumers of cognitive dissonance created by

contradictory information about products and services.
5. Changing the consumer beliefs about competitors brands
It is the strategy of changing consumer’s beliefs by comparing with the

competitors [Link] e.g.- Nike Vs Adidas

Here, Marketers can make the consumers attitude negative towards

competitors brand (but indirectly) to get attention towards their own

brand.
Marketers leverage the potential of reference groups to modify customer attitudes
and behavior and drive conformity to sell new products and services, despite
consumers' previous views about rival companies. A reference group is any person
or group that acts as a point of comparison for an individual in order to create
general or specific beliefs, attitudes, or behavioral patterns. Family members,
friends, social and cultural groups, sports heroes, music stars, and wealthy or
prominent community members are all reference groups that customers may want to
follow.
They become powerful reference points due to their legitimacy in terms of expertise

and experience, beauty, and authority. Consequently, group-guided decisions

demonstrate the effect of others on an individual's consumption beliefs, attitudes,
and behavior while offering some insight into the ways that may be utilized to modify
consumer behavior and attitudes.
Structural Models of Attitude

 Tri Component Model/ABC Model

 Multi Attribute Models
 Attitude towards the ad model
 Trying to consume Model
 1. Tri component Model/ABC Model
Consumer attitude contains three components:-
 Cognitive:- knowledge, rational thinking,

beliefs
 Affective;- feelings, emotions

 Conative/Behavioural:- action/intention to buy

2. Multi-attribute models say that we form
attitudes about a product based on
several attributes (the individual product features,
functions and perceived benefits) of that product,
our beliefs about those attributes, and the
relative importance we assign to those attributes.
There are many variations of the attitude
model, three to consider are: attitude-toward-
object model, attitude-toward-behavior model, and
the theory-of-reasoned-action model.
 Attitude-towards-object Model
 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.
 Consumers generally have a favorable attitude toward those
brands they believe have an adequate level of attributes that
they evaluate as positive, and they have unfavorable attitudes
toward those brands they feel do not have an adequate level of
desired attributes or have too many negative or undesired
attributes.
 This can be explained in the car purchase example, where an
individual is evaluating features of petrol and diesel cars..
 The features can be evaluated into two categories as
favourable and unfavourable.
 The Attitude-Toward-Behavior Model
 This model is designed to capture the
individual’s attitude toward behaving or acting
with respect to an object, rather than the attitude
toward the object itself.
 For example, an individual has a positive
attitude towards BMW, but may not purchase a
BMW because of financial constraints.
 Another example:- a person likes the food in a
particular restaurant but does not like to go to
that restaurant due to poor service.
 Theory-of-Reasoned-Action Model
 This model represents a comprehensive integration of attitude
components into a structure that is designed to help knowing what
and why of behaviour. It gives better explanation and predictions
of behavior. The theory-of-reasoned-action aims at analyzing
intentions vis-a-vis motivations for a purchase behaviour.


Like the basic tri-component model, theory of reasoned action is

also based on cognitive, affective and behavioural components,
however, they are arranged in a different pattern as:

 Beliefs that the behaviour leads to certain outcomes
 Customer faith that the purchase will solve some of his
problem e.g. buying a laptop for making e-lectures
 Evaluation of the outcome:-how much important it is for
me to make e-lectures.
 Beliefs regarding specific referels:- what the people who
are close to you say about whether you should buy or
not to buy a laptop.
 Motivation to comply with specific referals:- how
important the person is for you and how important it is to
comply to him or her.
 In accordance with this extended model, to understand
intention we also need to measure the subjective norms that
influence an individual’s intention to act. This can be
assessed measuring a consumer’s feelings as to what means
to the others (family, relatives, friends, co-workers). Here, the
learning will basically measure emotional functions that may
be accomplished through purchase.


The individual’s motivation to comply with this normative

belief is measured on the degree to which he is attributing his
purchase to the others (family, relatives, friends, co-workers).
This attribution different from person to person. The individual
may feel more for the objects that has more value to the
person most important for him for a particular purchase.
 3. Attitude towards the ad Model
 The Attitude-toward-the-Ad Model lays emphasis on the
impact of an advertisement, either in print or in audio-visual
on the formation of consumer attitudes towards product
and service offerings and or brands. The theory behind the
model states that consumers form judgments and feelings
as a result of exposure to an advertisement. Not only does
a consumer form attitudes towards the advertisement, he
or she also forms an opinion towards the brand. The gist of
this model can be explained by the following:
 Normally, if you like an ad, you are more likely to purchase
the advertised brand.
 For a new product/brand, an ad has a stronger impact on
brand attitude and purchase intention.
 [Link] theory of trying to consume
 Studies the consumers attitude who want to try but you stop
due to some reasons.
 has been designed to account for the many cases where the
action or outcome is not certain, but instead reflects the
consumer’s attempts to consume or purchase. In such cases
there are often personal impediments and/or environmental
impediments that might prevent the desired action or
outcome from occurring. Here again, the key point is that in
these cases of trying, the outcome is not, and cannot be
assumed to be certain. The focus here is the “trying” or
seeking part, rather than the outcome (consumption).
Consumer imagery and
perceived risk
 Consumer imagery and perceived risk
are both concepts that influence how
consumers make purchasing decisions
 Consumer Imagery

 An image is a total perception of something that

individuals form by processing all the
information they are exposed to over time.
Research indicate that consumers develop
enduring perceptions or images about brands,
prices, stores and companies. These inferences
are consumers’ beliefs about products or
services.
 Individuals develop a self-image of themselves
and certain brands/products seem to match this
self-image of an individual while others do not.
Consumer imagery
When consumers buy products that they
believe align with their self-image, or avoid
products that don't, it is called consumer
imagery.
Consumers may also shop in stores that have
images that match their own self-image
 Imagery is the associations consumers
develop with brands over time, and consumer
imagery refers to how consumers attempt to
preserve or enhance their self-image through
the brands and products they choose. Brand
imagery and positioning play an important
role in shaping consumer perceptions.
 According to Russell W Belk, consumers
attempt to enhance or preserve their self-
images by purchasing products that they
believe correspond to or agree with their self-
images and avoid buying products that do not
fit their self-images.
Consumer Imagery
components
[Link] Positioning

 Refers to the image that a product has in the

minds’ of the consumer.
 It conveys the concept of the product or

service in terms of how it fulfills a consumer

need.
E.G., Pears – Glycerin based soap
Dove- Moisturising
Complan – Growing tall
Colgate – Anti tooth decay toothpaste
Product Repositioning
The product/service offering require a change

with changes in customer preferences,

competition etc. and needs repositioning in the
market .
E.g Dettol soap, after establishing itself on the

protection from bacteria proposition, introduced

a variant with moisturiser and employed a
different kind of imagery
[Link] Price

 What is the image as far as pricing is

concerned (high, low or fair).
 Perceptions of price unfairness can affect
consumers perceptions of that product or
service and also will be a hindrance in
patronizing that store or service
3. Perceived quality

 consumers judge the quality of a product/

service offering on the basis of internal and
external cues.
 Internal cues:- physical characteristic internal
to the product/service (features, benefits,
size, color, flavor, aroma etc.)
 External cues:- which are external to the
product/service like price, packing,
advertising, brand image, retail store image,
country of origin etc.
4. Price quality relationship

 Consumers form perceptions and images on

about the quality on the basis of price also.
 The higher the price, the better the quality is
perceived. E.g Apple, Puma, Adidas.
 Marketers relate the increased price to the
product/services attributes, features and the
overall benefits that the offering provides.
5. Perceived Risk
 Refers to the degree of uncertainty perceived
by the consumer as to consequences of
purchase decision.
 Perception of risk varies depending on the
person, product, situation and the culture.
Types of Risk

 Functional risk
 Physical Risk
 Financial Risk
 Social Risk
 Time Risk
 Functional Risk:- associated with uncertainty
about whether the product or service works as
promised and satisfy your need.
 Physical Risk:- relates to the possible harm
that a product brings about to the health or
safety of the consumer.
 Financial Risk:- related to the possibility of
financial/monetary loss brought on by the
purchase if a product does not satisfy your
need.
 Social Risk:- relates to the possible social
repercussions connected to a purchasing
decision. Consumers feel social risk when they
are worried about how their purchase will be seen
by others or if it would affect their social standing.
 Time Risk:- pertains to probable time commitment
necessary for a good or service to ensure its
proper functioning. Consumers perceive time risk
when they are worried about the time and effort
needed to maintain or utilize a product or service.
 e.g car maintenance
 Reference group
 In consumer behaviour, it refers to a group that
individuals refer to (seek information) or identify with
when making purchasing decisions.
 It includes people significantly influencing an
individual’s evaluations, aspirations, or behavior.
 Reference groups provide points of comparison and
sources of information, impacting how consumers
perceive products or brands.
 Examples include family, friends, professional
associations, or social clubs.
 Through observing reference group preferences and
behaviors, consumers often shape their own
purchasing decisions accordingly.
 A reference group, in other words, in consumer
behavior, is a group of individuals or social entities
that influence an individual’s beliefs, attitudes, and
behavior. These groups serve as a benchmark for
individuals when forming their opinions, evaluating
their self-worth, and making purchase decisions.
 People often seek validation and acceptance from
their reference groups, leading them to conform to
group norms and adopt similar behaviors and
consumption patterns.
 You were thinking of buying an Amazfit smartwatch, but
then you saw a friend with an Apple smartwatch. Your friend
talks about how good the Apple watch is in tracking health
and working with other gadgets. You trust your friend as he
knows a lot about tech, and many in your circle look up to
him for advice. After the chat, you start thinking of getting an
Apple smartwatch instead and purchasing an Amazefit
watch. This shows how friends or groups (Reference
groups) can change what products individuals prefer or
buy.
 Reference group in consumer
behavior influences purchasing decisions and plays a crucial
role in effective marketing strategies.
Types of Reference Groups
 There are various types of reference groups that
individuals may belong to or aspire to be a part
of.
 1. Direct Reference Groups: These are close-
knit groups that an individual has regular face-to-
face interactions with. Examples include family
members, friends, colleagues, and classmates.
Direct reference groups have a strong influence
on an individual’s opinions and behavior due to
the close relationships and shared experiences.

 2. Indirect Reference Groups: Indirect
reference groups consist of individuals or
entities that an individual does not have direct
interactions with but still considers as a point
of reference. Celebrities, social media
influencers, and public figures often serve as
indirect reference groups. People might
admire and emulate their behaviors, lifestyles,
and consumption choices.

 3. Aspirational Reference Groups:
Aspirational reference groups are those that
individuals aspire to be a part of but currently
do not belong to.
 These groups often represent a desired social
status, achievements, or a particular lifestyle.
 Aspirational reference groups can vary from
cultural or professional circles to exclusive
clubs or organizations.

 4. Membership Reference Groups:
Membership reference groups are formal
organizations or associations that individuals
are part of.
 These groups often have a specific purpose,
shared values, and standards.
 Examples include professional associations,
hobby clubs, and religious organizations.
Membership reference groups influence
individuals through the sense of belonging
and shared identity.
 The Impact of Reference Groups on
Consumer Behavior
 Reference groups have a significant impact on consumer
behavior, shaping individuals’ preferences, purchase
decisions, and consumption patterns. Let’s understand how
reference groups influence consumer behavior:

 1. Social Proof: People tend to seek social proof to validate

their choices and actions.
 When individuals observe their reference groups endorsing
or using specific products or services, they perceive it as a
positive signal. This social proof can sway their purchasing
decisions and motivate them to align with their reference
group’s choices.

 2. Normative Influence: Reference groups
establish norms and standards that individuals
strive to conform to.
 They create a sense of social pressure,
encouraging individuals to adopt behaviors and
consumption patterns that align with the group’s
values and expectations. Non-compliance with the
group norms might lead to social exclusion or
disapproval.

 3. Informational Influence: Reference groups also serve
as a source of information and knowledge. Individuals
often seek advice and recommendations from their
reference groups when making purchase decisions. The
opinions and experiences shared within the group
shape individuals’ perceptions and influence their
choices.
 4. Identification and Aspiration: Individuals often
identify with their reference groups and aspire to be like
the members. They associate certain products or
brands with the group’s identity and values.
Consequently, individuals are motivated to purchase
these products to enhance their self-image and
affiliation with the reference group.
Family and its influence on
consumer Behaviour
 It is the smallest and most basic social unit,
which is also the most important primary
group found in any society.
 Family is the biological social unit composed
of husband, wife and children.’
 Eliot and Merrill
 Family is a group of persons united by ties of
marriage, blood or adoption constitut­ing a
single household interacting and inter-
communicating with each other in their
respective social roles of husband and wife,
father and mother, son and daughter, brother
and sister, creating a common culture.’
Burgess and Locke
Types of Family
 Nuclear Family:
 A nuclear family is a small group consisting of a
husband, a wife and children, natural or adopted. It
consists of two generations only. In all modern societies,
nuclear family is the most common type of family
 Joint Family:
 A joint family consists of three generation, living together
under the same roof, sharing the same kitchen and
economic expenses. It is a family consisting of three
nuclear families living together. It consists of married
couples, their parents, their children and their relatives.
Functions of Family
The major functions of a family can be
summarized as follows:
1. Socialization
Family helps in the socialization of its

members, especially children.

It teaches them important values, norms, and

behaviors that are accepted in society.

Children learn how to communicate, behave,

and interact with others through their family.

2. Emotional security
Family offers emotional support and a sense

of belonging to its members.

It provides a safe and secure environment

where individuals can express their feelings

and seek comfort.
Family members can rely on each other during

times of stress and difficulties.

3. Economic support
Family members often share economic

resources and contribute to each other's

financial well-being.
They provide financial support. This includes

sharing expenses, pooling resources, and

helping during tough times.
The family can act as a safety net, ensuring

economic stability for its members.

4. Social identity
Family plays a significant role in shaping an

individual's social identity.

It transmits cultural, ethnic, religious, and

social values from one generation to another.

Family members often share a common social

status, such as caste, religion, or social class.

5. Education and socialization
Family is responsible for providing basic

education and socialization to children.

Parents or guardians teach children essential

skills, knowledge, and values needed for their

development.
Children learn about their culture, traditions,

and societal expectations through their family.

6. Health and well-being
Family members care for each other's

physical and emotional well-being.

They provide support during illness, promote

healthy habits, and encourage a balanced

lifestyle.
Families play a role in maintaining the overall

health and quality of life of their members.

7. Division of labor
Family members often divide tasks and

responsibilities based on their abilities and

preferences.
Each member contributes to the functioning of

the family unit and shares the workload.

Division of labor within the family helps in the

smooth operation of daily activities.

 Family Decision Making
 Family decision making is a concept in marketing &
consumer behavior where an individual decides to buy a
certain product or service after deciding it along with his
or her family. Family decision making is a collective
decision by the family, even if the individual is going to
buy the product or service entirely with his/her own
money.
 An example can be of a car. If there is a family, a person
might want to buy a car after consulting with everyone
and based on the needs like space required, features,
mileage and other preferences within the group.

 Importance of Family Decision Making in
marketing
 Every individual has his/her own taste of buying and
consumption. This pattern is largely inherited by the
family or the people surrounding the individual.
 The buying behavior of the individual depends a lot on
age, gender, location, income and willingness to
spend.
 The family members which comprise of parents,
siblings, grandparents and relatives play a very
important role in deciding what to buy and what not to
 The person generally discuss with the family
members before buying any product which
largely influence his/her decision. For a
company it is very important to analyze if their
product or service comes under the family
decision making.
 Home appliances, cars, computers are some of
the categories where an individual might not be
using the product but the entire family may be
interacting with it hence becomes very
important.
 Family Influence on Consumer
Behaviour
 A family is a social group and all members of
family influence and get influenced by each other.
 Family bonds are stronger than bonds in any
other group and all members of the family form a
single decision unit in case of purchase of
products and services for common consumption.
 Each member influences and gets influenced by a
family member depending upon his/her role, life
cycle stage, and relationship dynamics in the
family.
 Therefore, family influence on consumer
behavior can be understood by studying the
buying roles, family dynamics, and life cycle
stage of a family member.
 Buying Roles of a Family
 The various roles played by members of a family
while making a purchase decision are:
Influencer – The family member or family members
who provide information about a product or service to
other family members. This they get from various
sources like advertisements in print form or audio
visual form, from friends and peer groups etc.
 GateKeeper – Family members who control the flow
and direction of the contents of the information to
other family members. For example, parents don’t
want that their children come to know about new
video games, husband doesn’t let her wife to know
about the discount on certain garments.
 Decision maker – decision maker has the
power to decide whether to buy or not, what
to buy, when to buy, where to buy, etc.
 These family members would discuss and
listen to all the members but may have the
final or an important say in the decision.

 Buyer – The one who makes the actual purchase.
This can be any person in the family
Preparer – The family member or family members
who prepare the product for family consumption. E.g
mother prepares food for family after utilizing various
products
User – The consumers of the product or service.
Maintainer – The members who maintain the
product for continued use and satisfaction. e.g if a
girl uses a car, her father or brother keeps its
maitenance.
Disposer – The member who disposes of the
product. After consumption or use, how the remains
of the product are thrown
Family Life Cycle (FLC)

 Family Life Cycle (FLC) acknowledges that

individuals and families undergo various life
stages, each with distinct needs and
priorities.
Stages of the Family Life
Cycle
 1. Bachelor Stage
 Characteristics: Young adults living
independently or with roommates.
 Consumer Behavior: Emphasis on personal
needs, such as technology, entertainment,
and social activities.
 2. Newlywed Stage
 Characteristics: Couples who have recently
married or entered into a committed
partnership.
 Consumer Behavior: Purchases related to
setting up a household, furniture, appliances,
and perhaps planning for a family.
 3. Full Nest I (Young Children)
 Characteristics: Couples with young
children.
 Consumer Behavior: Focus on baby and
child-related products, family-oriented
activities, and home improvements.
 4. Full Nest II (Teenagers)
 Characteristics: Couples with teenagers.
 Consumer Behavior: Spending on
education, extracurricular activities, and
teenage-specific products. Family vacations
become significant.
 5. Full Nest III (Launching Children)
 Characteristics: Couples with adult children
who are leaving the home for education or
work.
 Consumer Behavior: Downsizing, investing
in personal interests, and perhaps preparing
for retirement.
 6. Empty Nest I (Post-Parental)
 Characteristics: Couples whose children
have left home, but they are still in the
workforce.
 Consumer Behavior: Travel, leisure, and
exploring personal hobbies and interests.
 7. Empty Nest II (Retirement)
 Characteristics: Couples who are retired or
close to retirement.
 Consumer Behavior: Focus on health,
leisure, and retirement planning.
 Conclusion
 The Family Life Cycle concept is a valuable tool
for marketers seeking to understand consumer
behavior.
 By recognizing the unique characteristics and
needs of individuals and families at different life
stages, businesses can create targeted strategies
that resonate with their target audience.
 Whether you’re marketing to newlyweds, parents
with young children, or retirees, understanding the
FLC concept can help you connect more
effectively with your customers.
Family Life Cycle
 The family life cycle can be defined as the series
of stages typically through which most of the
family progresses, with different characteristics
of the stages .These characteristics are related
to their demographics such as:
 marital status
 size of the family
 age of the family members
 employment status of the head of the family
 income level
 disposable income.
 Family life cycle stages
 The family life cycle can be conceptualized
as the progression that involves various
stages. Different authors have segregated
it into different stages. The most
comprehensive one has been chosen
which is as follows.
 Stage 1: Bachelor stage
 At this stage of the life cycle, people are young and their
earnings are relatively low since most of the bachelors
are just beginning their careers.
 They have few financial responsibilities and thus tend to
have relatively high discretionary incomes. People in this
stage are characterized as being more interested in
appearance.
 Therefore they tend to spend more on fashionable items
such as clothing and electronic gadgets. Impulsive and
premium buying (when consumer spends more on
products, even when prices are high) is a common
characteristic of this group. This group also tends to
spend more on food, entertainment and vacations.
 Stage 2: Newly married
 couple
With marriage comes responsibilities, therefore the
requirement for resources changes. This group can be
considered to be in a better financial position due to
the absence of children.
 One of the major characteristics of this stage is that
people in this stage tend to have the highest purchase
rate, particularly for consumer durables.
 Their purchases tend to include refrigerators,
television, sensible and durable furniture, and
vacations. Furthermore, they may also start investing
to build reserves for their future. Thus the marketers of
such goods and financial services tend to target them
 Stage 3: Full nest 1 (Young married,
with child)
 When the first child is born, the full nest 1 stage begins.
 The arrival of a child brings major changes in a family’s
consumption pattern.
 At this stage, money is majorly directed towards buying
baby furniture, toys, medicines, vitamins, baby food,
and baby clothing.
 Furthermore, the increased family size may necessitate
more space which requires the family to move into a
bigger home.
 New parents explore baby products extensively before
purchasing, therefore advertising helps them.
 Stage 4: Full nest 2 (older, married,
 with
In thischildren)
stage of the family life cycle, the family’s
financial position tends to start improving,
possibly due to advancement in careers.
 With this improved financial positioning, families
still tend to remain new product-oriented but are
now less influenced by advertisements since
they have more buying experience.
 In this stage, the families tend to buy more food
items, children’s clothing, bicycles for the
children, sports equipment for them, and so on.
 Furthermore, at this stage, the children start
going to school so expenses in terms of their
school fees, books, and stationary increase.
The families also start saving for the future
education of their children
 Stage 5: Full nest 3 (older,
married with dependent children)
 In this stage, the family income continues to grow
and their financial position becomes more stable.
 This type of family has a high expenditure on
consumer durables, mainly because there is a need
to replace older items.
 However, they are more resistant to advertisements
since they have become more experienced buyers
now and are harder to entice.
 This group tends to buy items such as furniture,
automobiles, non-necessary appliances, magazines,
dental services, and luxury items.
 Stage 6: Empty nest (older, married, with
no dependent children)
 At this stage of the family cycle, children are no longer
living with their parents.
 Thus with no burden of child-related expenses, the
family’s financial position stabilizes and their savings
tend to accumulate.
 The couple is now free to purpose their wants and
desires and thus hobbies become an important source
of satisfaction for them.
 More is now spent on luxury, self-improvement items,
medical care, and health products. Furthermore,
expenses are done on homeownership and home
improvement.
Stage 7: Solitary survivor

 This stage of the family life cycle involves

retired people living alone after the death of
their partner.
 Thus, their life tends to become lonely and
their income reduces significantly due to
retirement.
 This tends to bring drastic changes in their
consumption pattern and living style.
 Healthcare services become an important
factor in their life.
Use of Family life cycle for
marketers
 The stages at which families are tends to
have a strong impact on the type of goods
and services they want and what is their
consumption pattern along with the volume of
consumption of the specific product.
 As shown in the above section each stage
has its own specific and unique needs, and
have a different pattern in which they
accumulate their objects and demands that
are placed due to different family size.
 Thus family life cycle can be indicated as the
better predictor of the consumption pattern.
 Identifying the family life cycle stage correctly
helps marketers develop appropriate
products and services that can meet specific
needs at each family stage.
 It also helps them design specific promotional
strategies that meet the needs of the specific
target audience.
Social Class
 A social class is a group of people within a
society who possess the same socio-
economic status.
 social class refers to people with a similar
status in society. This status is determined by
various factors, such as wealth, work,
income, education, family, race (such as
black people and white people, tall human
and short), and ethnicity (social identification
based on culture, language, religion).
 A social class comprises individuals who
share similar social status and perceive
themselves as socially at par.
Characteristics of Social
Class
 Class system is based on
occupation,wealth,education, etc.
 Hierarchy of status group. In general there are 3
classes–upper class, middle class & Lower
[Link],prestige & role is [Link]
class are less in number in comparison to the
other two. Whereas their status & prestige is
most. This is like a pyramid.
 Feeling of superiority & inferiority. In these 3 classes there
are such feelings the upper class
People feel they are superior to the other two whereas the lower
class feels it is inferior to the upper class.
Class consciousness–wherever a class is formed the feeling of
consciousness is a must. There should be a feeling of in-
group. Class consciousness if the awareness that members
of a social class have of their shared interests and their
position in society. Whenever lower class feel that upper
class exploits them , their they unite for revolt. The behaviour
action is determined by class conciousness.
Examples include civil rights movement, womens’ movement,
workers strike in business etc.
 Sub classes:- Class is divided into
different groups. Similart o caste
system,the class system is divided.
 Class system is an open system. Any body
and shift from lower class to upper class and
vice-versa in the hierarchy if they improve or
drop on the factors of class.
 Class system if closed too:- some factors of
social class are ascribed by birth like caste,
race, religion etc. which cannot be changed.
 Culture and its characterisits
 Culture can be defined as the shared (common)
beliefs, values, customs, arts, and ways of life of a
group of people that are passed down from
generations to generations.

 culture is the characteristics and knowledge of a

particular group encompassing language, religion,
cuisine, social habits, music, what we wear, how
we wear it, marriage, what we believe is right or
wrong, how we sit at the table, how we greet
visitors and million other things (christina De
Rossi).
Characteristics of culture
 [Link] is learned and acquired
 Culture is acquired in the sense that there are
certain behaviours that are acquired through
heredity. Individuals inherit certain qualities
from their parents but socio-cultural patterns
are not inherited.
 These are learned from family members, from the
group and society in which they live.
 2. culture is shared by a group of people
 A thought or action may be called culture if it is
shared and believed or practiced by a group of
people.
 [Link] is cumulative:- different knowledge
embodied in culture can be passed from one
generation to another generation. More and more
knowledge is added in the particular culture as the
time passes by. Each may work out solutions to
problems in life that passes from one generation to
another. This cycle remains as the particular culture
goes with time.
 4. culture is dynamic (it changes)
There is knowledge, thoughts or traditions that are lost as new
cultural traits are added. There are possibilities of cultural
changes within the particular culture as the time passes.
5. Culture is symbolic
Cultural symbols are physical manifestations that represent a
cultural ideology, beliefs, traditions. They can be historic,
religious or spiritual. Language, money and art all are
symbols.
e.g statue of Liberty, religious symbols like cross, crescent
etc.
 6. culture is integrated:-
 It is known as holism (whole). There are
various aspects of culture and all are related
to one another and to truly understand a
culture, one must learn about all of its parts,
not only a few
 7. varies from society to society:
 Every society/country has a culture of its own
that differs from other societies/countries.
 8. Transmits among members
 The cultural ways are learned by people from
other people. It passes on from generations
to generations by elders, parents, teachers
and others.
 Culture in consumer
Behaviour
 Culture, in the context of consumer behavior, refers to the
shared beliefs, values, norms, customs, and practices that
characterize a particular group of people. It encompasses
everything from language, religion, and social structure to food
preferences, fashion, and leisure activities.
 Culture is a learned behavior, acquired through socialization
and interaction within a specific society or community. Culture
shapes an individual’s perception of the world, influencing their
attitudes, opinions, and behaviors. It acts as a lens through
which people interpret and make sense of their environment,
including products, services, and brands.
 Understanding cultural influences is crucial for businesses
aiming to connect with their target consumers effectively.
 How Does Culture Influence
 [Link] Behavior?
Perception and Interpretation
Culture shapes the way individuals perceive and interpret information. It
influences their cognitive processes, including attention, memory, and
comprehension. For example, cultural norms and values can affect how
consumers perceive advertisements, products, and pricing.
Understanding these cultural nuances helps marketers develop
targeted and culturally sensitive campaigns.
 2. Attitudes and Preferences

Culture plays a pivotal role in shaping consumers’ attitudes and

preferences. It influences their likes, dislikes, and overall evaluation of
products and brands. Cultural values, social norms, and traditions often
dictate what is considered acceptable or desirable within a particular
society.
 Marketers who align their offerings with these cultural preferences are

more likely to resonate with their target audience.

 3. Buying Behavior and Decision-Making
 Culture significantly influences consumers’ buying behavior and decision-
making processes. Factors such as individualism versus collectivism, risk
aversion, and the importance of social validation vary across cultures and
impact consumer choices. Understanding these cultural differences helps
marketers tailor their marketing strategies to appeal to specific cultural
segments effectively.
 4. Consumer Identity and Self-Expression
 Culture shapes individuals’ sense of identity and self-expression.
Consumers often seek products and brands that align with their cultural
identity or allow them to express certain values or affiliations.
 By understanding the cultural significance attached to certain products,
marketers can create meaningful connections with their target consumers.
 Sub-culture and consumer
Behaviour
 Subculture is a part of culture or a subset of
culture containing the important features of main
culture.
 It is a group of people within a larger culture
such as a country, who have something in
common. They might share religious or political
beliefs, values or interests. For example, in
Indian culture we have the subculture of Ladakh,
subculture of Kashmir, subculture of Karela etc.
 Subculture is defined as a distinct cultural
group, that exists as an identifiable segment
within a larger, more complex society.
 Example, Nationality, social class, Religion
etc.
Divisions of Sub-culture

 Nationality Sub-culture:- within a particular

country like in India:-
 Anglo Indians:- a person of mixed English
and Indian Descent.
 Parsis:- The Parsis came to India sometimes
around the 10th century A.D. to escape Arab
persecution in Persia which began in the 7th
century.
 Mughals:- Mughal Muslim empire in India,
1526-1857. the Dynasty was founded by
Babur who came from Uzbekistan.
 Pathans:- Pathans came from Afghanistan as
vendor and businessmen. They had living in
different areas in India.
Religious sub-culture:-
Based on different faiths, and religion like:-
Muslims

Sikhs

Christians

Hindus

Bhuddists

Social Class Sub-Culture:-

Upper, Middle, Lower Class
Geographic Sub-Culture:-
South Indians

North Indians

North- East indians

Age Sub-culture:-
Babies, children, Teens, Adults, Elderly
Gender Sub-culture:-
Male, Female
The Influence of
Subcultures on Consumer
Behavior
 1. Distinct Consumer Preferences

 Subcultures often have unique preferences

and tastes that differ from the mainstream
culture. For example, a subculture of fitness
enthusiasts may prioritize health-conscious
products and services.
2. Behavioral Patterns
Subcultures can exhibit distinct behavioral

patterns, such as purchasing habits, brand

loyalty, and communication styles. For
example, Kashmiri food habits, food habits of
karela etc.
Marketers must understand and adapt to

these patterns.
 3. Identity and Belonging
 Membership in a subculture provides
individuals with a sense of identity and
belonging. They may seek products and
brands that align with their subcultural identity.
 E.g clothing style of Ladakh , kashmiri
language etc.
 4. Influence on Trends
 Subcultures often play a role in shaping trends
and popular culture. What is embraced by a
subculture can eventually become mainstream
culture.
 Whatever additions are made to the culture are
initially adopted by a subculture group.
 5. Communication Channels
 Subcultures may have their own preferred
communication channels and media.
 E.g in far flung and rural areas there is still
the habit of listening radio mostly the old age.
 Effective marketing requires targeting the
channels that resonate with the subculture.
Cross culture in consumer
Behaviour
 Cross cultural consumer behavior is the study of
how people from various cultural backgrounds
respond to marketing stimuli, products, services,
and brands.
 It is about understanding cultural differences that
influence how consumers perceive, interact with
and respond to marketing efforts.
 Cross cultural consumer analyis is defined as
the effort to determine to what extent the
consumers of two or more nations are similar or
different.
 A major objective of cross-cultural consumer
analysis is to determine how consumers in
two more societies are similar and how they
are different. Such as understanding of the
similarities and differences that exist
between nations is critical to the multinational
marketer, who must devise appropriate
strategies to reach consumers in specific
foreign markets.
 The greater the similarities between
cultures/nations, the more feasible it is to use
relatively similar strategies in each nation.
 If they differ in many aspects, then a highly
individualized marketing strategy is indicated.
 Factors affecting cross cultural
consumer Behaviour and Marketing
Strategies
 Values:- values are the principles that guide your action.
values vary across cultures and can affect how consumers
perceive and evaluate products and brands. E.g, some
cultures value tradition, some value innovation.
 Demographic differences:- such as age, religion, gender,
social class, family status, occupation and income also vary
across different cultures.
 Language:- Different languages are spoken by people
belonging to different cultures.
 Non verbal communications:- such as symbols represent
meanings. Different symbols mean different things to
different people. E.g christian community respect cross
symbol etc.
Opinion Leadership in
consumer Behaviour
 The process by which one person (the opinio
leader) informally influences the consumption
actions or attitudes of others who may be
opinion seekers or opinion recepients.
 It is a concept in consumer behaviour that
refers to the influence that certain individuals
or groups have on the attitudes , opinions,
and purchasing decisions of others.
 They influence consumer buying behaviour by
sharing their insights and informal advices about
products or services.
 They act as an intermediary between marketers
and their target audiences.
 They obtain information about a certain product,
summarize its pros and cons, and convey it to
consumers in a simple way.
 They also update consumers on product news
and give advice on how to use it.
Characteristics of opinion
leaders
 Gregarious (sociable) people with lot of
experience.
 Sources of information and advice.
 Tend to be consumer innovators
 Greater exposure to the media
Personal factors influencing
consumer Behaviours
 Personal factors they influence consumer
behaviour include:-age, life cycle stage,
occupation, economic situation, lifestyle,
personality and self concept.