Consumer Behaviour

Faculty : Prof . Ashok Kumar

Syllabus

: As prescribed in the curriculum

Core text books : 1 Consumer behaqviour K.K Srivatsava & Sujata K. 2 Consumer behaqviour Leon G Schiffman & L.L Kanuk

3 Consumer Behaviour & market Research Suja R Nair

4 Consumer behaqviour Dr S.L Gupta & Sumitra Pal

Consumer Power & Shifting trend in business

Consumer to TRANSUMER, PROSUMER
Create MASSCLUSIVITY - Create exclusivity from the mass.

Ten Hard facts of Business : Consumers have more options in the market to choose. Market transformed from a sellers market to buyers market long ago. Premium & niche brands are fighting for their growth in the market Consumer loyalty has vanished in thin air. Business community likes to call Consumers , a transumer .
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The center of all business a Consumer has been transforming rapidly & have become more opaque . Consumer consistently demand value from the products & services . The marketer believes that brand is most important to a consumer . A consumer is exposed to 600 market communication a day approximately. ( Research results )

A consumer looks beyond the basic functionality of products & services which he does not articulate.

Why to study consumer behaviour by an organization Build / Create Dominating or self expressive brands.

Integrated Market Communication Plans & strategies

Consumer Behaviour & Research CP=BP = Ever lasting brands

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Customer Value & Purchase Involvement Value drives satisfaction

Satisfaction is a necessary condition for customer loyalty, but not a sufficient to create loyal customers, customer excellence & delight
Delivering value to the customers is a key to achieving organizational goals by being more effective than its competitors in creating , delivering & communicating customer value to the identified set of consumers in the market What is value? Value = Benefits ( Functional Benefit + Emotional Benefit) Cost ( Monetary +Time+ Energy+ Psychic Cost) What is customer delivered value ( CDV) ? It is a difference between Total Customer Value( TCV) & Customers Total Cost ( CTC)
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Determinants of CDV Monitory cost Product value Time Cost Energy Cost Psychic cost

CTC
CDV TCV

Service Emotional Value Value

Image Value

CDV builds customer delight It is a difference between the perceived performance ( Out come ) & expectation. If the performance falls short of expectation, it leads to dissatisfaction. On the other hand if it matches the expectation it leads to satisfaction. When it exceeds expectation, it becomes Customer delight .

Conclusion : Add value to your customer. Drive the customer up the value chain continuously Customer understands value for money better than any thing. Need of a consumer is never ending . Identify the unstated needs residing deep into the minds of the consumer , translate it in to a value proposition , communicate & deliver before your competition does it. In the media cluttered market , it is critical for every marketer to perform the mind set segmentation of their consumer to understand , how his brand is linked to his consumer. Media research Co.
Not for circulation : for internal use only 8

Consumer behavior study help to probe the deep recesses of the consumer mind where the needs are still not articulated. It helps to get deeper in to the minds to get more insight & angles. It subliminally make the consumer like the product & services & creates a desire to buy the same. . It helps to build a life time customer value for the organization, which is an intangible asset

Life time Customer =

Value

Profit X Frequency X Retention period

of Purchase

Consumer Types Personal consumer

Buys for individual Consumption. Buying decisions are influenced by Cognitive, Personal, cultural ,social Influence, Situational factors

Organizational Consumer

Buying for organizational consumption Buying decisions are influenced by Quality , service , attitude of the suppliers Financial considerations etc . Besides this , Environmental , organizational, interpersonal Factors influence the decisions. The buying decision involves four decision Makers. End User, Influencer, Decision makers ( management ) & commercial Buyer. Satisfaction of all our groups is essential

Not for circulation : for internal use only

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Consumer types according to loyalty

Personal consumer & Business Consumer

Solus Users

Dual users

Flirts

Degree of commitment towards product or service brands.

High Medium Low

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Influencing buying decision in a consumer

Cognitive factor Feedback

Individual factor
Personal characteristics

CONSUMER

Decision making

Response

Environmental factor

Culture

Social class Influence group

Situational variable
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Buyers characteristics are influenced by

Cognitive Personal factors factors cultural factor social factor Influence groups Situational variables point of purchase Market communication

Perception Demographics Values & Attitudes Life style Belief

Social Reference class groups & Structure Family

Motives & Need

Personality traits Self concept

Cross Societal Opinion leaders Display cultural belonging Innovation Store Influences & trend Patronage
Sub cultural influences setters Price

All above factors influence a consumers buying decision.

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Consumers behavior is studied from the point of view of : 1.Consumer as an individual :Consumer behavior study as in individual involves motivational drive ,its measurement , needs & wants & types of need . Self concept, attitude , perception, consumer imagery 2Consumer in his social & cultural setting : It involves cultural influence, sub culture , cross culture , ( nationality, religion , etc ) psychographic [ life style ] , Social group, reference group , geo demographic clustering etc.

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Socio -Cultural trend. A set of beliefs & standards followed by a group of people . It is a sum of conscious & un conscious values , ideas, attitudes & symbols that shape the human behavior which transits from one generation to the next. It is a common heritage & way of life. Cognitive ( beliefs, customs) Internal mental culture Socio culture External material ( Habits & Behavior) culture
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Normative ( Ethics, Moral values)

Buying Decision process Input Stimuli

Motivation
Attitudes, Personality, Perception

Need Information recognition search

Evaluation Of alternatives

Purchase Decision

Post purchase Behvaiour

Output Behaviour

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Behavior of a consumer is determined by his strong desire & need. Hierarchy of need : Abraham Maslow Sense of achievement & competence

Needs which are important to consumer

Self Actualization Esteem (Recognition)

Owning Power & Prestige Similar belief, status class etc Assurance , Protection

Social(Affiliation) Safety (Security) Physiological ( Basic)

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Manifestation of culture
Symbols represent the most superficial manifestation of the culture. It could be words in the language ,dressing style, hairstyle which can be easily copied .Eg A conservative middle class woman having moved to up-country , colors her hair using LOreal & echoing its tag line I am worth it.

Symbols Heroes
Rituals Value Practice

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Values : Values are formed at much early in age ,at home or school & are the deep rooted . While all values have its own negatives & positives, it can rarely be changed .

Ritual & heroes fall between the deepest & superficial manifestation . Heroes are people ,alive or dead or imaginary serving as a role models of the behavior.

Rituals are ways of socially greeting, social & religious ceremonies . A traditional marriage ceremony, being followed with out questioning it.

Culture strongly influence the decision making behavior of a consumer. Manifestation of culture for the following consumer segment 1 Middle class middle age consumer ( 30-39)

2 High net worth ( HNI) class middle age consumer ( 30-39)

3 DINK (25-32 age ) salaried class Objective : understand the buying behaviour while buying /investing in House properties .
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Influence of life style factor. Family plays an important role as a social group influencing consumers behaviour. The influence is either as face to face ( primary group or as reference group ( values, norms, living standard etc) Understanding of family Life cycle ( FLC) FLC: A composite variable created by systematically combining commonly used demographic variables like : size of the family, martial status age earning members , disposable income etc. FLC is studied from the view point of : Bachelor hood status Married couple Parent hood Post parent hood Dissolution Parent hood is further classified in to Full nest 1 , 2 & 3 stage . Post parent hood is classified in to Empty nest 1 & 2

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Cultural & societal variables establish the outer boundaries of life style specific to culture . The interaction of the group & individual expectations & values create a systematic pattern of behaviour. This life style pattern determines the purchase decision. Life style refers to the way in which people live & spend money . Consumer psychographic profiles are derived by measuring different aspects of the consumer such as : Activities , Interests & opinion referred as AIO inventory It helps to look at wide variety of variables & measures the major dimension as follows: Feldman & Theibar explains life style by the following characteristics: 1 Life style is a group phenomenon . It is influenced by his/her participation in social groups & individual personality ( attitude , emotional status driven by beliefs & values ) 2 Life style implies a central life interest . The central life implies interest factors like family, work , leisure , religion , politics , sexual exploits 3 The rate of social change in a society has a great influence on the life style. Age , gender , religion ethnicity & social class . E.g. Dual income class , nuclear family High earning potential in early age & late working hours .
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Psychographic Segmentation
Psychographic profiles are drawn by measuring different aspects of consumer behaviour such as activities , interest& opinion (AIO inventory) helps to link wide variety of variables & measures the major dimension on the life style of a consumer Activities Interests Opinion Demographics

Work Family Vacation Entertainment social

Themselves Age occupation

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VAL( Value & Life style Classification ) System . ( developed by

Arnold Mitchell) The system was developed to explain the dynamics of societal change in the buying behavior of a consumer . Accordingly consumer responses were collected for 35 attitudinal & 4 demographic questions. On the basis of these responses consumers were classified in eight distinctive sub groups. Each group signifies a behaviour response pattern ( life style ) & inner psychological needs ( Value ) It acts as a dynamic frame work of values & life styles which helps to explain why people have a explicit behavior Eight VAL segments are : Actulizer Experiencer

Fulfilled
Believer Achiever Striver

Maker
Struggler

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VAL Segments
Most resourceful
Enjoy the Inner thing, Receptive to new product Technologies

Actualizer
Principle oriented
Less interested in image & prestige

Status oriented
Attracted to premium products

Action oriented
Follow fashion & Fad

Fulfilled

Achievers

Expereincer

Slow to change , habits, look for bargains

Image conscious , limited income

Shop for comfort , willing try change.

Believer

Striver

Maker

Need driven

Struggler
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VAL Segments

Actulaizer 1 Integrated : Balanced between inner & outer directed factors 2 Achiever : Want to be a Role models , 3 Societal conscious : High sense of social responsibility believes in changing the system & environment. Outer directed segment 4. Belonger 5. Emulator : Upwardly mobile people & status conscious .
Inner directed 6 I am Me : Young & self engrossed driven by whims 7 Experiential : Want to experience what life has to offer strong believer's in destiny Need Driven 8 Survivor
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Consumer segmentation process ( Homogeneous Group )

Concern of large organizations: : How to harness the potential of 2/3 rural population having highest degree of diversity in the rural India to the main stream of the business.

Bases of segmentation are : 1 Demographic segmentation

( factors like Age , family , gender , marital status religion language ) Cosmetic, food , insurance service etc. )

2. Economic Segmentation : Income levels

Middle class , upper/ premium, class , lower middle , lower class ( LIG , MIG , HIG )

3. Psychographic segmentation : combinations of Social group, sub group,

attitude, perception, opinion , interests life style . VAL basis ( Value & life style) Actualizer , fulfilled, Believer, Achiever , Striver, Experiencer, Maker Consumer classification on the basis of soico- Economic factors SEC A+++ SECA++ SECA+ SECB++ 26

Geographic segmentation Rural , Urban , Global , Semi rural , Semi Urban leading to life style, climate , population etc. Institutional segmentation : Large corporate segment ( Global & Domestic) , SME , SOHO , FTU Govt, PSU etc

Benefit Segmentation : Convenience , social acceptance. Long lasting Economy ( High, medium, low or heavy , regular Extra large small family pack etc.)

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Diversity of consumer behavior . Consumer segmentation & profiling

2. Changing trends: Children hold strong buying power in key segment. ( Indian kids rank 3rd worldwide in influencing the buying decision) Segment Children Decision maker. Soft drinks 33.6 % Health drinks 31.4% Tooth paste 30.5% restaurants 28.6%
Segmentation of Kid consumer : Consumer Segment: Infant, Growing kid , teenager, Youth [parameters : Age, intelligence( IQ) level , Family group belonging , societal influence , point of purchase , Personality , Self concept. There is a child in every human being which does not grow with time . Disney strategy
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Psychographic segmentation of Women , a potential decision maker. (Classification on the basis of the diversity in the behavior)
Miss Sophisticate Traditionalist Troubled home baby Ms up to date Ms nonsense Conservative Warm & hospitable Gregarious hedonist

Youth classification in to six segments Cultural misfit :

Style Bhai Middle class Manju Main Bhi NRI Rich Brat Nerdy Nandu
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Discovering new identity in Urban woman

The quint essentional self sacrificing Gharelu married Indian urban woman consumer is increasingly morphing in to independent minded assertive entrepreneurial class. ( Research study conducted by Lowe Asia Pacific ) Psycho graphically charted consumer segmentation
Modern ( willing to embrace new values)
Mrs Hasmukh 27% (Role model Didi ) Mrs Meri Awaz Suno (Attention seekers) 31% Mrs Gharelu 18% ( Home pride) Mrs Pataka Cool Mrs India

Stability seekers

Change seekers

Mrs Hey Bhagvan Moaner

Traditional ( Be contended /compromise with old system)
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Mrs Garelu is just 18% of the total sample size. Who are they ? Home pride . A perfect home maker .

Behaviour : Uses parachute oil for kids & self , Fair & lovely being a part of her make up kit. She is proud of her washing machine & water filter. She is likely to buy a microwave owen or expensive home appliances. But she prefer to use branded sanitary napkins. Her husband relies heavily on her. Social : She hate wasting money on outing , eating entertainment. Entertainment is all around Jassi & K series . Belief : Strong believer of good education to her kids. Choosing any unknown New career by the family member is not acceptable. Attitude : Family is more important & believes that star determine her fate. Value : Respect can never be compromised. High level of tolerence . Never address the husband by name .( Munne ke papa, Suno ji type ) . Do not question the roots of tradition, rituals. They are always for good. Just adapt it. She is Quintessentional sacrificing Maa
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Fast moving trend is seen from Mrs Gharelu to Mrs Has mukh Who is Mrs Hasmukh ? Attitude: A lively cheerful & positive personality. She treats her life like a must win contest . A friendly nature . Talking to a stranger of opposite sex & accepting him as a friend is normal . A perfect wife, mother , daughter in law , friend , independent minded , divides her time between husband , kids , family herself, & her friends. Not self sacrificing Belief : While she is religious , she does go to beauty parlour with equal vigour. Usage : She likes to buy things which make her household chore more convenient . Microwave Owen, Dishwasher, Vacuum cleaner , Oriflame conditioner, foot cream, Nourishing night cream products . Social gathering , party with friends , family etc. She encourages her kid to be more independent, explore & peruse their career where you can deliver your best result, like she herself would like to do. She likes to be seen as trendy .

She is a role model Didi for many women

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Mrs Pataka:
Characterised by the style quotient , acts cool & talks about doing what other women dont. Take pride in sending their kids to the best school in town. Style matters in terms of regular visit to palour, PTA , Social meet , week end party & dining , need varieties of perfume for different occasion. She expects her husband to consult her in all decisions & upholds her individualism. Attention seekers: Stifled by the various restrictions & norms imposed on her craves for attention, likes when others empathise with her .Her husband does not necessarily take her opinion in all home related issues. Saving is not her forte. Will use fairness cream , oil her hair on daily basis. She hopes high expectation on her son& daughter. She does not mind using unbranded or lesser known brands still feel good about herself. She feels miserable about her inability to send her kids to expensive schools, lavih spending .She believes that fate is determined by her stars. She wants to come out of middle class dudgery. More of self sacrificing type & wants to move away from joint family class.

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Perceptual constructs Stimulus ambiguity Perceptual bias Perception

Stimulus ambiguity : All information available is not crystal clear to the consumer in its meaning leading to a mental process to make decision based on the selective preference. Perceptual bias : Attending to the selective information as a result of ones own frame of reference.

Perception is a process of selecting, organizing & interpreting or attaining the meaning of what is happening in the environment.
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Individual behavior has a general tendency to get carried by the perception & not by the facts & reality while making decision. Perceptions are formed as a result of the surrounding knowledge as perceived by the consumer .The individual behavioral action ( buying process ) emotion , feeling etc are based on the perception. Perceived reality varies from person to person .

How is sensation different from perception ? 2 Is the consumer driven by sensation or perception ?

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Not for circulation : for internal use only

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How is sensation different from perception ? 2 Is the consumer driven by sensation or perception ?

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Sensation is an immediate response of a physical sensory organ due to internal or external stimuli .The response will vary depending up on the intensity of the stimuli or sensitivity of the person to the stimuli (ie the individuals sensory receptor. ) Sensation is related to basic physiological behavior . Perception co-relates , integrates & comprehends the various sensations & information received . It is formed by both physiological & psychological factors.

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Internal Factors

Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation Subliminal perception

P E R C E P T I O N

External Factors Intensity&Size

Position

Contrast

Novelty

Repetition
Movement
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Both internal & external factors influence the perception of the buyer
Blind test of Coke & Pepsi Pepsi preference population 51 % coke 44 % equal /cant say 5% Identity revealed test Pepsi coke equal/cant say 23% 65% 12%

Conclusion : Both internal & external factors influence the way in which an individual perceives a product or brand.
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Decision making frame work : Perception Cultural factors Social factors External factors

Internal factors Psychological factors Personal factors

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Internal factors 1.Selective attention : Tendency to see, hear & filter

. The stimuli which fall out or below the threshold limit are screened out. 2.Selective exposure. : Tendency to avoid or come in contact with message which are contradictory to the strongly held belief and attitude . (Referred as cognitive consistency ) Consumers look out or seek message that they feel are pleasant or sympathetic to their causes & action .( Referred as cognitive dissonance ) E.g. : Chewing Paan or tobacco consumption of excessive alcohol
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Internal factor (cont..) 3.Selective reception, comprehension & retention : Tendency to

accept the information which fits in to his or her existing mind set & support their preconceptions. They remember only those things which support s their belief & attitudes. 4.Perceptual vigilance or defense. Screening out or defending the information which create conflict or give rise to threatening situation. E.g. : Generation gap issues . Dating , live in relationship , Ads which might lead to embarrassing questions 5.Expectation : State of anticipation of a particular behavior of a person due to known or un known past experiences or preconditioned set.
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Subliminal perception : Influence the people for decision with out being aware of what they are doing . Addressing below the conscious awareness level.
The subliminal perception are : 1 Visual stimuli presented in brief . 2. Speech given fast in low volume auditory message 3. Embedded or hidden or imagery words given either in print ads or on product labels.

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External Factors are physical properties. Like :

Intensity & size : bright & vibrant Colors ,loud ,melodious , sound , size etc used for advertising leads to perception building . Position : PoP in the retail outlet , front page last cover, exclusive magazine ( Interior design- Inside out side ) Business world etc

Contrast : Media planners use contrast to build perception like : Voice contrast for superiority , confidence & doubt . Loud & soft color tones. Black & white . Contrast pictures . Eg Its your life . Novelty: Unusual shape , size , odor etc. Perfume bottles , Baby diapers Sanitary napkins , Toys , Greeting cards. Etc
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Repetition & movement : Multiple exposure in a limited time , to generate high recall or Dynamic billboards & hoarding or moving van carrying the products which rare demonstrated to create high usage & perception. Figure & ground: Figure is perceived to be more dominant & attention seeking , hence important stimuli to be placed as figure & other phenomenon in the back ground. Closure leading to build positive perception : Incomplete picture, broken line statements left to the audience to fill the gaps themselves to gain more meaningful information. Perceptual distortion on account of : Stereo typing , Hallo effect. Irrelevant clues. First impressions
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Consumer Attitude : Formation & change In consumer behavior context , attitude is a learned pre deposition to behave in a consistently favorable or unfavorable way with respect to a given stimuli. Stimuli refers to a product catogory, brand, people related to a brand or service .

Learned deposition refers to source information including perception , experience , exposure to media etc which helps to build an attitude & gives momentum to the behavior . The momentum can be negative or positive.
Consistency refers to the voluntary decision which makes the consumer to purchase the product/ service / brand till such time there are no intervening factors which force the consumer to change the attitude.kj
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Tri component Attitude model: This model comprises of three components . 1 Cognition component 2 Affective Cognition 3 Conation

Affect

Conation

1.The knowledge & perception acquired by the people which takes the form of belief about the attributes of the product.
2.The consumers feeling & emotions associated with the product. 3.The consumers intention or the probability to take a definite action with respect to the brand. (this is referred as an actual behavior )
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Consumer s retention process depends on how they perceive the product /Brand differentiation & their involvement with the product/brand. Involvement = f ( Personal , situational , Object )

High Product Involvement Low

High Learning Model Cognitive Affective Conative Low involvement model Cognitive Conative Affective

Perceived product/brand differentiation

Dissonance Model Conative Affective Cognitive

Low
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FCB Grid ( Foote, Cone, Belding )

Analysis & Processing through Right & Left Brain :
Rt Brain : Emotional & Visual : ( Feeling ) Lt Brain : Analytical & Rational : ( Thinking ) consumer type Thinking Feeling High Search for functional benefit Economic Value ? THINKER search for Life style emotional attachment Psychological value FEELER

Involvement NON Responsive Self Satisfied

Low

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Attitude towards the AD model.

Relationship of attitude with communication

Exposure of an Ad

Judgement about the Ad

Feeling from the Ad

Belief about the brand Attitude towards the brand

Attitude towards the Ad

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Attitude formation : Attitude formation happens from 5 sources: 1 Information 2 Exposure 3 Group membership 4 Environment 5 Want satisfaction.

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Attitude Measurement tools : Likert Scale : In a questionnaire designed for customer response Customer responses are gathered which best describes to an extent they agree / disagree satisfied/ unsatisfied , Extremely important, un important etc
Strongly agree , partially agree , neither agree or disagree , partially disagree, strongly disagree

Semantic differential scale : For each of the features identify one alternative which express the consumers feeling ,preferences, liking etc the best. It consists of a series of bipolar adjectives eg best & worst, Hot & cold , expensive & in expensive etc anchored at the end of the odd numbered( 5or 7) continuum.
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Behavior Intention scale : To test the behaviors of the consumer that how likely he/she is to consume your service in next 3, 6 months . Definitely , probably , Not sure, Probably not Definitely not.

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Consumer behavior models having relevance on decision making process.

1. Learning Model , 2. Psychoanalytic model 3. Sociological model ,

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Classical conditioning process of learning : Behavior becomes dependent on certain stimuli or events in the environment. A consumer is said to have learned , when he or she responds in a predictable manner to a known stimulus. [ Also known as Stimulus Response ( S -R) theory of association )] Unconditioned stimulus Unconditioned Response

Conditioned stimulus
Conditioned stimulus Conditioned response

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Consumer Learning : A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his future behavior . . Components of learning process are : Drive Clue Response Reinforcement

Retention.

Drive : strong stimuli which impels action. Clue: An object in the stimuli which elicit a specific response. Response : Behavioral response in the from of physical terms , Attitudes, Perception etc. Reinforcement :Environmental events which increases the psychological process of motivation, increasing the likelihood of specific response. Retention : Stability of learned behavior over a period of time.
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Eg : Desirable association for Liril soap Ad Waterfall naturally & purity Young girl Natural beauty , purity imposed on Liril

Water fall natural & Pure

Young Girl Natural beauty & purity

LIRIL SOAP Symbolic of natural & purity

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Brand Recall Brand Awareness Brand personality Brand Image

Brand recognition

Benefits
Types of association

Functional Experimental Symbolic Attribute

Attitudes Product related Non product related

Price, package ,user imagery 60 usage imagery

Hofstede structure for building BRAND Identity( Onion ring model )

Symbols Role models Rituals Social

Core value of the brand

Emotional

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Core Value : Central idea or essence that the brand stands for.
Rituals:Traits, habit process & , internal mental culture, external material culture . Role models. : People & places the consumer group look up to or follows , get driven by . Symbols: Places objects, process or people associated with the individuals.

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The layers of the model correspond to the layers that constitute consumers personality . The corresponding layers are : Core value Rituals Role models Symbols While developing a brand identity , the core value proposition( Central idea ) of the brand is identified on the basis of the need of the consumer. The core value is mapped with the elements which comprise rituals, symbols , role models of the core value .
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Consumer Personality
An eagles egg was placed in the nest of a prairie chicken. The egg got hatched & the little eagle grew up in the surrounding of a chicken. It scratched in the dirt for seeds , clucked & cackled. It never flew more than a few feet. One day an environmentalist saw the eagle with the chicken & persuaded the owner to let it free . The eagle is not meant to be on the ground, it the is it world. He said that it is doing what it has learnt from its friend. You try , if it can fly & go up in the sky to never return again . The environmentalist tried , took it high on a mountain , held up & said the sky is your world go . The eagle flew a few meters & came back on the ground. In spite of repeated attempts the eagle could not fly. He brought it back & put it back with the chicken. It flapped its wings & got back to the dirt's to find the seeds to feed itself.

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Origin of personality

Personality development

Behavior

Genetic Determinants
Parental Determinants Experimental Determinants External Determinants based on social, cultural Race, religion etc.
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Development of Stable personality Characteristics.

Individual differences in behavior

Consumer personality

Motivation Temperament

Self image

Perception

Learning Behavior

Attitude
How is consumer personality related to brand personality ?

Consumer personality =Brand personality = Successful brand

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Consumer Personality can be studies through :

1Type theory

2Trait theory
3Psycho analytic theory

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Consumer behavior models having relevance on decision making process.

1. Learning Model , 2. Psychoanalytic model 3. Sociological model ,

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Consumer Learning : A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his future behavior . . Components of learning process are : Drive Clue Response Reinforcement

Retention.

Drive : strong stimuli which impels action. Clue: An object in the stimuli which elicit a specific response. Response : Behavioral response in the from of physical terms , Attitudes, Perception etc. Reinforcement :Environmental events which increases the psychological process of motivation, increasing the likelihood of specific response. Retention : Stability of learned behavior over a period of time.
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Eg : Desirable association for Liril soap Ad Waterfall naturally & purity Young girl Natural beauty , purity imposed on Liril

Water fall natural & Pure

Young Girl Natural beauty & purity

LIRIL SOAP Symbolic of natural & purity

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Repetition enhances the association of Stimuli to response. Effectively used in creating subliminal approach.

Technology posing threats to subliminal approach.

Zipping ( FF) Zapping( CC) & Filtering

REALITY : More than 60% TVC are zapped.

Preventing zipping , zapping & filtering

1. Mc Erikson study: Made AD more entertaining 2. Ad creating which catch attention of people for active search. 3. Leave information of practical value (Domestic appliances ) 4. Make short copy
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FCB grid helps to make advertising planing process based on the consumer - product relationship & develop appropriate promotional strategies. An effective creative options like rational versus emotional appeals are the strategies , creative AD maker can develop using FCB grid. High envelopment & Thinking Consumer is Informative thinker , Search for economic value Strategy used : Specific / to the point information demonstration , dissemination . Build high recall .

High involvement & feeling . Consumer is driven by psychological ( feel-learn-do) emotional drives. Eg: Fashion & fad products. Strategy used: Emotional arousal , bring Attitude change
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Low envelopment & Thinking Consumer is non responsive to market communication Strategy : Inculcate do-learn-feel habit ,Sales Promotion tactics to induce buying habit. Small space ads, More Point of Sales POS materials are used . Frequent reminder Low involvement & feeling . Consumer has strong emotional bonding addition to a brand , product . Unwillingness to change. Eg : Alcohol ( liquor) Tobacco etc. Strategy : Build do-feel-learn habit . Creative strategies like consumer Mentoring , strategic sales promotion etc.
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Stimulus Generalization : The stimuli similar to a conditioned stimulus will elicit a similar response without prior learning. Umbrella branding ( Family Branding ) Ariel green, Micro shine Super soaker etc Or Godrej No1 soap , Godrej refrigerator etc Product line extension : Lux beauty soap, Lux beauty liquid soap, face wash etc.

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Cognitive factors which affect the classical conditioning process are: Consumer characteristics. Impact of visual stimuli depends on the the consumers ability to visualize the creative message. Over creative ads loose its impact when not understood by the consumer. Further non visual stimuli ( jingle) has different experience with different consumer . Hence it can result in negative and positive learning experience . Stimulus characteristics. : Known stimuli is avoided as pre exposure of stimulus reduces the impact on the consumer. Eg Sales promotion techniques like discounts , gold coin , lottery etc Blocking association : A brand ambassador (stimuli ) having connection with a particular brand or product when used with another , consumer gets mentally blocked from making an association. 75

Operant or instrumental conditioning .( Skinner theory) A learning in which the consequences of behavior lead to changes in the behavior pattern conventional blade Partner Criticized ( punishment) Weakening of Behavior ( Negative action) Strengthening of behavior Positive action Neutral . No Change

Gillete Sensor

partner Admired ( Reward ) Smooth shave

Mach -3

No comment ( No reward)

Behavior shaping : Rewarding the consumer in consequence to the desired behavior.

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Observational learning : Positive Behavior result only when the optimal use of the product is demonstrated . The Ad makers have to communicate through creative usage of the brand /product for the consumer to imitate the person doing it. Selection of Brand ambassador :Eg Sanjeev Kapoor for masala , Personal care products. House wives for consume durable products. Advantage : High imitation , Observational learning helps to build : High attention positive learning Desired behavior Reward( learning)

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Consumer personality

Motivation Temperament

Self image

Perception

Learning Behavior

Attitude
To build the brand personality , which appeal the consumer ,Consumer personality needs to be understood by the brand manager. How is consumer personality related to brand personality ? Consumer personality Emotional relationship Brand personality
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A brand can have high equity , value or tradable asset if it has high awareness &, reputation, association , acceptance by the consumer. What determines brands equity ? How does brand communication ( advertising ) help to build brand equity? What is brand personality ? Brand Equity Brand Personality Brand Image Brand personality is important to consumer & marketer both because consumer preferNot to withusevisible brands leading to for associate circulation : for internal 79 only personality association

BRAND AWARENESS BRAND PERCEPTION

BRAND EQUITY

BRAND ASSOCIATION BRAND IMAGE

VALUE to customer _ satisfaction _ confidence in _ purchase action _ pride of owning the brand

VALUE to marketer long term customer ( CLV) High brand value( BE) Competitive advantage Superior margin

Not for circulation : for internal use only

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Brand Recall Brand Awareness Brand personality Brand Image

Brand recognition Benefits Types of association Attitudes Product related Non product related Functional Experimental Symbolic Attribute

Not for circulation : for internal use only

81 Price, package ,user imagery usage imagery

Consumer Personality
Consumer personality change with the life of an individual , describing the development of the human psychological setup.
Personality is formed due to the internal system inherited & all those factors the consumers learn from the surrounding. Personalities like aggressive, docile, friendly reclusive, arrogant ,charming etc are the reflection of the inherited & learned factors in a consumer. Origin of personality Traits
Genetic Parental Experimental Cultural Social Race Religion

Influence Personality Development Of consumer

Individual Differences in the Form of behavior

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Type theory
Psychological theory shows that differences in consumer result due to different type they belong to .

1. Where they prefer to focus their attention. ( Extraversion, Introversion)

2. The way they prefer to take the information (Sensing or intuition ) 3. The way they prefer to make decisions (Thinking or feeling ) 4. How they orient themselves to the external world .Do they use the judging process or perceiving process. (Judging or perceiving 83

Characteristics : extraversions. Prefer communicate by talking Breath of interests Tend to speak first , reflect later Take initiative in work & relationship Learn best through doing or discussion.
Introversion. Drawn to their inner world. Learn best by reflection , mental practice . Prefer communicate by writing Depth of interest Private & contained

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Sensing . Focus on what is real & actual Value practical application Observe & remember ,Present oriented Want information step by step Trust & experience Intuition Focus on big picture , possibilities Value imaginative insight Abstract & creative ,See pattern & meaning in facts . Future oriented ,Trust inspiration
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Thinking .
Analytical , logical problem solver Use cause & effect reasoning Tough minded ,Reasonable Fair

Feeling
Sympathetic ,Assess impact on people Guided by personal values , Tender hearted Strive for harmony & individual validation Compassionate , Accepting
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Judging .
Scheduled , Organized , Systematic , methodical Plan , Like closure to have things decided Avoid last minute stress.

Perceiving
Spontaneous, Open ended , Casual, Flexible, Adapt Like things loose & open to change Feel energized by last minute pressure.
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Consumer type is decided based on these factors. The types are : ISTJ Introverted sensing with extraverted thinking ISFJ Introverted sensing with extraverted feeling ESTP Extraverted sensing with introverted thinking ESFP extraverted sensing with introverted feeling INTJ Introverted intuition with extraverted thinking INFJ Introverted intuition with extraverted feeling ENTP Extraverted intuition with introverted thinking ENFP Extraverted intuition with introverted feeling ISTP Introverted thinking with extraverted sensing INTP Introverted thinking with extraverted intuition ESTJ Extraverted thinking with introverted sensing ENTJ Extraverted thinking with introverted intuition ISFP Introverted feeling with extraverted sensing INFP Introverted feeling with extraverted intuition. ESFJ Extraverted feeling with introverted sensing ENFJ extraverted feeling with introverted intuition

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Type theory
Psychological theory shows that differences in consumer result due to different type they belong to .

1. Where they prefer to focus their attention. ( Extraversion, Introversion)

2. The way they prefer to take the information (Sensing or intuition ) 3. The way they prefer to make decisions (Thinking or feeling ) 4. How they orient themselves to the external world .Do they use the judging process or perceiving process. (Judging or perceiving ) 89

. 2. ISFJ Loyal , considerable , concerned with how others feel Emotion oriented. 3. INFJ Highly principle oriented. Driven by their vision . 4. INTJ Driven their by their own ideas. Skeptical , critical & independent 5. ISTP Cool onlooker , detached curiosity , interested in cause & effect , logical principles . Drive to the core of the problem before taking decision. 6. INFP Quite observer. Balance between outer life & inner values. 7. ISFP Retiring , sensitive & emotional, not planing for long term 90 .

8. INTP :Logical & analytical Have a very clearly defined preferences Not willing to change easily. 9. ESTP Spot decision makers . Enjoys as it comes in the way. Not long term planers or thinker. 10. ESFP : Practical & situational decision makers 11.ENFP Warm , imaginative , takes decision which interest them. Finds reason for that ever they want. 12. ENTP Quick & alert . Develop logical reasons for what they want to buy 13. ESTJ : Realistic fact driven , rational approach. 14. ESFJ : warm hearted, emotional .driven by life style status. 15. ENFJ Responsive, sympathetic , regard for others feeling, Emotional driven decision. 16. ENTJ Frank , Out spoken, rational , straight forward. 91 Application & value oriented.

Consumer segment & type is decided using a structured focused questionnaire, The questionnaire is based on : 1 Product related / non related attributes features functions . 2. Functional experiential & symbolic benefits 3. Psycho factors . Where they prefer to focus their attention. The way they prefer to take the information The way they prefer to make decisions How they orient themselves to the external world . The information is collected for a large sample differently on the above three categories & analyzed together.
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Characteristics : extraversions. Prefer communicate by talking Breath of interests Tend to speak first , reflect later Take initiative in work & relationship Learn best through doing or discussion.
Introversion. Drawn to their inner world. Learn best by reflection , mental practice . Prefer communicate by writing Depth of interest Private & contained

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Sensing . Focus on what is real & actual Value practical application Observe & remember ,Present oriented Want information step by step Trust & experience Intuition Focus on big picture , possibilities Value imaginative insight Abstract & creative ,See pattern & meaning in facts . Future oriented ,Trust inspiration
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Thinking .
Analytical , logical problem solver Use cause & effect reasoning Tough minded ,Reasonable Fair

Feeling
Sympathetic ,Assess impact on people Guided by personal values , Tender hearted Strive for harmony & individual validation Compassionate , Accepting
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Judging .
Scheduled , Organized , Systematic , methodical Plan , Like closure to have things decided Avoid last minute stress.

Perceiving
Spontaneous, Open ended , Casual, Flexible, Adapt Like things loose & open to change Feel energized by last minute pressure.
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Consumer type is decided based on these factors. The types are : ISTJ Introverted sensing with extraverted thinking ISFJ Introverted sensing with extraverted feeling ESTP Extraverted sensing with introverted thinking ESFP extraverted sensing with introverted feeling INTJ Introverted intuition with extraverted thinking INFJ Introverted intuition with extraverted feeling ENTP Extraverted intuition with introverted thinking ENFP Extraverted intuition with introverted feeling ISTP Introverted thinking with extraverted sensing INTP Introverted thinking with extraverted intuition ESTJ Extraverted thinking with introverted sensing ENTJ Extraverted thinking with introverted intuition ISFP Introverted feeling with extraverted sensing INFP Introverted feeling with extraverted intuition. ESFJ Extraverted feeling with introverted sensing ENFJ extraverted feeling with introverted intuition

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1. ISTJ : Serious , quiet, practical, orderly , logical , make up their mind , as what they want to do , regardless of the external message .
2. ISFJ Loyal , considerable , concerned with how others feel Emotion oriented.

3. INFJ Highly principle oriented.Driven by their vision .

4. INTJ Driven their by their own ideas. Skeptical , critical & independent 5. ISTP Cool onlooker , detached curiosity , interested in cause & effect , logical principles . Drive to the core of the problem before taking decision. 6. INFP Quite observer. Balance between outer life & inner values. 7. ISFP Retiring , sensitive & emotional, not planing for long term .

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8. INTP :Logical & analytical Have a very clearly defined preferences Not willing to change easily.
9. ESTP Spot decision makers . Enjoys as it comes in the way. Not long term planers or thinker. 10. ESFP : Practical & situational decision makers 11.ENFP Warm , imaginative , takes decision which interest them. Finds reason for that ever they want.

12. ENTP Quick & alert . Develop logical reasons for what they want to buy . 13. ESTJ : Realistic fact driven , rational approach.
14. ESFJ : warm hearted, emotional .driven by life style status. 15. ENFJ Responsive, sympathetic , regard for others feeling, Emotional driven decision. 16. ENTJ Frank , Out spoken, rational , straight forward. Application & value oriented.

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Consumer segment & type is decided using a structured focused questionnaire, The questionnaire is based on : 1 Product related / non related attributes features functions . 2. Functional experiential & symbolic benefits 3. Psycho factors . Where they prefer to focus their attention. The way they prefer to take the information The way they prefer to make decisions How they orient themselves to the external world . The information is collected for a large sample differently on the above three categories & analyzed together.
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