Personal Consumption Journal Report

Personal Consumption Journal
Consumer Behavior 0 | P a g e

Submitted To: Ms. Maryam Niazi
Consumer Behavior
Dated: 25
th
May, 2014
Personal Consumption
Journal
Muhammad Asad Bin Faruq
1300041

Personal Consumption Journal Report

Consumer Behavior
TABLE OF CONTENTS
Consumption Journals ...................................................................................................................................... 1
Consumer Profile ............................................................................................................................................... 5
PIE CHART ............................................................................................................................................................ 6
List of Variables .................................................................................................................................................. 7
Demographics............................................................................................................................................... 7
Psychographics ............................................................................................................................................. 7
Social Class ................................................................................................................................................ 7
VALS (Values, Attitudes And Lifestyles) ................................................................................................ 7
VALS Framework and Segment ............................................................................................................. 9
Consumer Motivation ................................................................................................................................ 10
Needs ............................................................................................................................................................ 10
Goals ............................................................................................................................................................. 11
Selection of goals ................................................................................................................................... 11
Maslows Hierarchy of Needs ................................................................................................................... 12
A Trio of needs ............................................................................................................................................. 13
Need for Power ...................................................................................................................................... 13
Need for Affiliation ................................................................................................................................. 14
Need for Achievement ......................................................................................................................... 14
Personality & Consumer Behavior ................................................................................................................ 14
Personality ................................................................................................................................................ 14
Consumer Innovativeness .................................................................................................................... 14
Consumer Dogmatism .......................................................................................................................... 14
Need for cognition ................................................................................................................................. 15

Consumer Behavior
Visualizers Vs Verbalizers ....................................................................................................................... 15
Consumer Perception ................................................................................................................................ 15
Perception ............................................................................................................................................... 15
Sensation .................................................................................................................................................. 15
The absolute threshold .......................................................................................................................... 15
The differential threshold ...................................................................................................................... 15
Consumer Learning......................................................................................................................................... 15
Learning theories ........................................................................................................................................ 15
Cognitive Theories ...................................................................................................................................... 16
Information Processing and Involvement Theory ................................................................................. 17
Central and Peripheral Routes to Persuasion ................................................................................... 17
Advertisement Analysis .................................................................................................................................. 17
Overview of Pakistani Beverage Industry ............................................................................................... 17
Print Ad.......................................................................................................................................................... 18
Ad Demographics ...................................................................................................................................... 20
AD Psychographics .................................................................................................................................... 20
Social Class and VALS ........................................................................................................................... 20
Needs And Goals........................................................................................................................................ 20
In reference to Maslows Heirarchy of Needs ....................................................................................... 21
In Reference with Trio of Needs ............................................................................................................... 21
In Reference with Personality and Consumer Behavior ...................................................................... 21
In Reference with Consumer Learning ................................................................................................... 21

CONSUMPTION JOURNALS
Consumption Journal 20
th
-26
th
April 2014
Date Place of
purchase
Item purchased Brand name Price Reason for
purchase
Feelings associate with the
purchase
20-4-14 Local Store Cigarettes
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
20-4-14 LSE Instant Coffee 3 in
1
Biryani
Nescafe
LSE
25
80
Addiction
Hunger
Happy
21-04-14 Jalalsons
Gulberg
Bread
Eggs
Jalalsons
Gulberg
60
120
Ok
22-4-14 Jalalsons Biscuits Jalasons 150 Tea/Snack Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
23-4-14 Office Big Mac Meal McDonalds 650 Lunch Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
24-4-14 Shell Johar
Town
Petrol Shell 1500 Refueling Car Ok
25-4-14 Al-Fatah Deodorant Axe 210 Hygiene Happy
25-4-14 Al-Fatah Candy Al-Fatah 150 Enjoyment Happy
th
April 3
rd
May 2014
Date Place of
purchase
purchase
purchase
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
27-4-14 Internet Mobile TopUp Telenor 250 Mobile Topup Ok
28-4-14 Jalalsons Instant Coffee 3
in 1
Nescafe 25 Addiction

Happy
28-4-14 Jalalsons Bread
Eggs
Jalalsons
Gulberg
60
120
Breakfast Ok
29-4-14 Office Pizza Broadway 1500 Lunch Happy
29-4-14 Gulberg Soda Sprite 35 Lunch Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
1-5-14 Jalasons Instant Coffee 3
in 1
Nescafe 25 Addiction Happy
1-5-14 Gulberg Jalebi Garato 150 Snack Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
3-5-14 Shell Johar
Town
th
-10
th
May 2014
Date Place of
purchase
purchase
purchase
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
4-5-14 Hafeez Centre HDMI Cables Local 750 Practical Ok
5-5-14 Internet Mobile TopUp Telenor 250 Mobile Topup Ok
5-5-14 Office Instant Coffee 3 in
1
Nestle 25 Contract Ok
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
7-5-14 Office Soda Sprite 35 Thirst Ok
7-5-14 Shell Johar
Town
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
9-5-14 Johar Town Burger Howdy 540 Hunger happy
9-5-14 Jalalsons Brownies Jalasons 150 Snacks Very Happy

th
-17
th
May 2014
Date Place of
purchase
purchase
purchase
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
11-5-14 Local Store Yogurt Nestle 80 Hunger Happy
12-5-14 Internet Mobile TopUp Telenor 250 Bill Payment Ok
12-5-14 Office Sandwiches Jalasons 250 Hunger Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
14-5-14 Office Pizza Broadway 1500 Hunger Very Happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
16-5-14 Johar Town Instant Coffee 3 in
1
Nescafe 25 Hunger happy
Cold Coffee
Marlboro
Nescafe
115
30
Addiction
Enjoyment
Happy
17-5-14 Shell Johar
Town
CONSUMER PROFILE
Ten items consumed/bought frequently
1. Marlboro Cigarettes
2. Nescafe Cold Coffee
3. Nescafe Instant Coffee 3in1
4. Petrol
5. Mobile Topup
6. Jalalsons Sandwiches
7. Jalalsons Bread
8. Jalalsons Eggs
9. Jalalsons Biscuits
10. Axe Deodorant
The product I chose for my consumption journal project and for further analysis is
Nescafe Cold Coffee from Nestl and I have consumed this item 12 times in the
time period of 4 weeks.

PIE CHART

By looking at the pie chart, it can be deduced that my most consumed item is
Nescafe Cold Coffee, which is 25%, along with Marlboro Cigarettes which is
alsopurchased13 times during the course of consumption. Following these items
is Nescafe Instant Coffee which was bought 10% of times i.e. 5 times. These three
products are the most consumed products in the consumption journal.
Similarly Petrol, Mobile TopUp, Jalalsons Bread, and Jalalsons Eggs share the
same frequency of purchase which is 4 and represent 8 % of the total
purchasing individually.
Jalalsons Sandwiches and Biscuits also share the same frequency of 2 with
percentage representation of 4 % and the least consumed with frequency of 1
and percentage of 2 % is Axe Deodorant.

13
13
5
4
4
2
4
4
2
1
Frequency
Marlboro Cigarettes Nescafe Cold Coffee Nescafe Instant Coffee 3in1
Petrol Mobile Topup Jalalsons Sandwiches
Jalalsons Bread Jalalsons Eggs Jalalsons Biscuits
Axe Deodorant
LIST OF VARIABLES
DEMOGRAPHI CS
Demographics are the measureable statistics of a certain target segment, such
as Age, Gender, Marital Status, Education, Income, Occupation etc.
Demographic segmentation of this certain product, as per the analysis of it ads
and marketing campaigns is as follows:
PSYCHOGRAPHI CS
Psychographics can be defined as activities, interests and opinions (AIOS). It is
also consists of attitudes and preferences. Often these are buried within usand
were all consumers. Psychographic variables could be political leanings,
attitudes toward global warming, religious affiliations or non-affiliations,
enthusiasms etc.
The interests and opinions parts are cognitive concepts and can be measured
through surveys. A psychographic study includes a series of questions that are
often responded via a Likert scale, through which we can assess the consumers
level of agreement. The factors included under examination in a psychographic
study are personality traits, buying motives, interests, attitudes, beliefs and
values. Versatility of all these psychographic factors allows it to be a part of a
wide range of mixed segmentation frameworks.
SOCI AL CLASS
A division of society based on social and economic status.
Three main categories under the social class are
1- Upper 2- Middle 3- Lower
VALS (VALUES, ATTI TUDES AND LI FESTYLES)
VALS is a proprietary research methodology used for psychographic market
segmentation. This market segmentation is designed to guide companies in
tailoring their products and services in order to appeal to the people most likely
to purchase them.
VALS was developed in 1978 by social scientist and consumer futurist Arnold
Mitchell and his colleagues at SRI International. It was immediately embraced
by advertising agencies, and is currently offered as a product of SRI's consulting
services division. VALS draws heavily on the work of Harvard sociologist David
Riesman and psychologist Abraham Maslow.

The main dimensions of the VALS framework are Primary Motivation (the
horizontal dimension) and Resources (the vertical dimension). The vertical
dimension segments people based on the degree to which they are innovative
and have resources such as income, education, self-confidence, intelligence,
leadership skills, and energy. The horizontal dimension represents primary
motivations and includes three distinct types:
1. Consumers driven by knowledge and principles are motivated primarily by
Ideals. These consumers include groups called Thinkers and Believers.
2. Consumers driven by demonstrating success to their peers are motivated
primarily by Achievement. These consumers include groups referred to as
Achievers and Strivers.
3. Consumers driven by a desire for social or physical activity, variety, and
risk taking are motivated primarily by Self-expression. These consumers
include the groups known as Experiencers and Makers.
VALS FRAMEWORK AND SEGMENT
Innovators. These consumers are on the leading edge of change, have
the highest incomes, and such high self-esteem and abundant resources
that they can indulge in any or all self-orientations. They are located
above the rectangle. Image is important to them as an expression of
taste, independence, and character. Their consumer choices are
directed toward the "finer things in life."
Thinkers. These consumers are the high-resource group of those who are
motivated by ideals. They are mature, responsible, well-educated
professionals. Their leisure activities center on their homes, but they are
well informed about what goes on in the world and are open to new
ideas and social change. They have high incomes but are practical
consumers and rational decision makers.
Believers. These consumers are the low-resource group of those who are
motivated by ideals. They are conservative and predictable consumers
who favor American products and established brands. Their lives are
centered on family, community, and the nation. They have modest
incomes.
Achievers. These consumers are the high-resource group of those who are
motivated by achievement. They are successful work-oriented people
who get their satisfaction from their jobs and families. They are politically
conservative and respect authority and the status quo. They favor
established products and services that show off their success to their
peers.
Strivers. These consumers are the low-resource group of those who are
motivated by achievements. They have values very similar to achievers
but have fewer economic, social, and psychological resources. Style is
extremely important to them as they strive to emulate people they
admire.
Experiencers. These consumers are the high-resource group of those who
are motivated by self-expression. They are the youngest of all the
segments, with a median age of 25. They have a lot of energy, which they
pour into physical exercise and social activities. They are avid consumers,
spending heavily on clothing, fast-foods, music, and other youthful
favorites, with particular emphasis on new products and services.
Makers. These consumers are the low-resource group of those who are
motivated by self-expression. They are practical people who value self-
sufficiency. They are focused on the familiar-family, work, and physical
recreation-and have little interest in the broader world. As consumers,
they appreciate practical and functional products.
Survivors. These consumers have the lowest incomes. They have too few
resources to be included in any consumer self-orientation and are thus
located below the rectangle. They are the oldest of all the segments, with
a median age of 61. Within their limited means, they tend to be brand-
loyal consumers.
CONSUMER MOTI VATI ON
Motivation is the driving force within individuals that impels them to action. This
driving force is produced by a state of tension, which exists due to unfulfilled
needs. Individuals strive both consciously and subconsciously to reduce this
tension through selecting goals and subsequent behavior that they anticipate
will fulfil their needs and thus relieve them of the tension they feel.
NEEDS
Needs are the essence of the marketing concept. Marketers do not create
needs but can make consumers aware of their needs. Every individual has
needs; some are Innate, others are acquired.
Innate needs are physiological (i.e. biogenic); they include the needs for food,
water, air and clothing. They are considered as primary needs.
Acquired needs are generally psychological (or psychogenic) needs that are
considered secondary needs or motives. They are also known as secondary
needs.
From the viewpoint of application of practical context, needs can also be
classified as Extrinsic and Intrinsic.
Extrinsic needs motivates an individual to achieve the end result e.g. buying a
product that symbolizes status to impress others is associated with extrinsic
needs.
On the other if an individual buys a car for his own personal comfort and
enjoyment, such need can be classifies as Intrinsic Needs.

GOALS
Goals are sought after results of motivated behavior.
Generic Goals: the general categories of goals that consumers see as a way to
fulfill their needs.
Product-Specific Goals: the specifically branded products or services that
consumers select as their goals
Goals can be positive or negative. Positive goals are one toward which
behavior is directed and a negative goal is one from which behavior is directed
away. This concept is useful when USP (Unique Selling Proposition) is being
explored.
SELECTI ON OF GOALS
For any given need, there are many different and appropriate goals. The goals
selected by individual depend on their personal experiences, physical capacity,
prevailing cultural norms and values, and the goals accessibility in the physical
and social environment.
Like needs, goal can be positive or negative as mentioned earlier. A positive
goal is one toward which behavior is directed; thus it is often referred to as an
approach object.
A negative goal is one from which behavior is directed away and is referred to
as an avoidance object. Because both approach and avoidance goals are the
results of motivated behavior, most researchers refer to them simply as goals.
INTERDEPENDENCE OF GOALS
Needs and goals are interdependent; neither exists without the other. However,
people are often not as aware of their needs as they are aware of their goals.
Individuals are usually more aware of their physiological needs. Most people
know when they are hungry, thirsty or cold and they take appropriate steps to
satisfy these needs. The same people may not be consciously be aware of their
needs for acceptance, self-esteem, or status. They may, however
subconsciously engage in behavior that satisfies their psychological needs.
MASLOWS HI ERARCHY OF NEEDS

Maslow stated that people are motivated to achieve certain needs. When one
need is fulfilled a person seeks to fulfil the next one, and so on. This five stage
model can be divided into basic needs (e.g. physiological, safety, love, and
esteem) and growth needs (self-actualization).
The first four levels are considered deficiency or deprivation needs in that their
lack of satisfaction causes a deficiency that motivates people to meet these
needs.
Physiological needs, the lowest level on the hierarchy, include necessities such
as air, food, and water. These tend to be satisfied for most people, but they
become predominant when unmet. During emergencies, safety needs such as
health and security rise to the forefront. Once these two levels are met,
belongingness needs, such as obtaining love and intimate relationships or close
friendships, become important. The next level, esteem needs, include the need
for recognition from others, confidence, achievement, and self-esteem.
The highest level is self-actualization, or the self-fulfillment. Behavior in this case is
not driven or motivated by deficiencies but rather ones desire for personal
growth and the need to become all the things that a person is capable of
becoming.
A TRI O OF NEEDS

NEED FOR POWER
A person's need for power can be one of two types - personal and institutional.
Those who need personal power want to direct others, and this need often is
perceived as undesirable. Persons who need institutional power (also known as
social power) want to organize the efforts of others to further the goals of the
organization. Managers with a high need for institutional power tend to be more
effective than those with a high need for personal power.
NEED FOR AFFI LI ATI ON
Those with a high need for affiliation need harmonious relationships with other
people and need to feel accepted by other people. They tend to conform to
the norms of their work group. High individuals prefer work that provides
significant personal interaction. They perform well in customer service and client
interaction situations.
NEED FOR ACHI EVEMENT
People with a high need for achievement seek to excel and thus tend to avoid
both low-risk and high-risk situations. Achievers avoid low-risk situations because
the easily attained success is not a genuine achievement. In high-risk projects,
achievers see the outcome as one of chance rather than one's own effort.
Achievers need regular feedback in order to monitor the progress of their
achievements. They prefer either to work alone or with other high achievers.
PERSONALITY & CONSUMER BEHAVIOR
PERSONALI TY
Personality comprises of the inner psychological characteristics that both
determines and reflects how a person responds to his or her environment.
CONSUMER I NNOVATI VENESS
The degree to which consumers are receptive to new products, new services or
new practices is called consumer innovativeness.
CONSUMER DOGMATI SM
Dogmatism is personality trait that measures the degree of rigidity (versus
openness) that individuals display toward the unfamiliar information. Highly
dogmatic (closed-minded): choose established, rather than innovative product
alternatives. Less dogmatic (open-minded) prefer innovative products to
traditional alternatives.
NEED FOR COGNI TI ON
A persons craving for enjoyment of thinking.
VI SUALI ZERS VS VERBALI ZERS
A persons preference for information presented visually or verbally. Visualizers
require strong visual elements in ads. Verbalizers prefer written information, print
ads, and question-answer format
CONSUMER PERCEPTI ON
PERCEPTI ON
The process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world.
SENSATI ON
The immediate and direct response of the sensory organs to stimuli is known as
sensation.
THE ABSOLUTE THRESHOLD
The lowest level at which an individual can experience a sensation. The point, at
which a person can detect a difference between something and nothing, is
called the absolute threshold.
THE DI FFERENTI AL THRESHOLD
The minimal difference that can be detected between two similar stimuli is
called the differential threshold or the just noticeable difference (JND).
CONSUMER LEARNING
A process by which individuals acquire the purchase and consumption
knowledge and experience that they apply to future related behavior.
LEARNI NG THEORI ES
BEHAVIORAL THEORIES
Theories based on the premise that learning takes place as the result of
observable responses to external stimuli. It is also known as stimulus response
theory.
CLASSICAL CONDITIONING:
Pairing a stimulus with another stimulus that elicits a known response to produce
the same response when used alone.
INSTRUMENTAL CONDITIONING
Consumers learn by means of trial and error process in which some purchase
behaviors result in more favorable outcomes (rewards) than other purchase
behaviors. A favorable experience is instrumental in teaching the individual to
repeat a specific behavior.
OBSERVATIONAL LEARNING
Individuals learn by observing the behavior of others, and consequences of such
behavior. It is also known as modeling.
COGNI TI VE THEORI ES
A theory of learning based on mental information processing, often in response
to problem solving.
COGNITIVE LEARNING THEORY
Learning through consumer thinking and problem solving, this enables
individuals to gain some control over their environment.
CONSUMER INVOLVEMENT
Focuses on the degree of personal relevance that the product holds for the
consumer
a. High- involvement: Important in terms of perceived risk.
b. Low involvement: Hold little relevance.
I NFORMATI ON PROCESSI NG AND I NVOLVEMENT THEORY
CENTRAL AND PERI PHERAL ROUTES TO PERSUASI ON
Highly involved consumers are best reached through ads that focus on the
specific attributes of the product (the central route)
Uninvolved consumers can be attracted through peripheral advertising cues
such as the model or the setting (the peripheral route).

ADVERTISEMENT ANALYSIS
OVERVI EW OF PAKI STANI BEVERAGE I NDUSTRY
The beverage industry in Pakistan has emerged as a progressive sector over the
years. As per the latest report by AAJ TV, about 170 units are operating across
the country in this particular sector, which is contributing towards growth in
upstream and downstream industries. A comprehensive categorization of the
beverage industry would include divisions like; aerated drinks, juices, milk based
drinks, energy and sports drinks, tea, and coffee and also, bottled and bulk
water as well. In Pakistan different players dominate in different categories,
based upon their specialization and target audience.
In order to gain fresh insight and valuable information, a recent survey was
conducted in October 2013 and the research data was shared by Pakistan
Online Research Panel introduced by Dynamic Research Consultants which is a
full scale technology oriented market research agency operating in Pakistan.
The survey results yielded a comparative analysis between genders and two
primary age groups; young adults (aged 16-22 years) and mature adults (aged
22 years above). The key findings of the survey are discussed below:

The survey results demonstrated the differences in the consumption pattern that
exists across genders and the two different age groups. Overall, the results
suggest that females are more likely to consume multiple beverages than males.
Tea emerges as the most preferred drink, with comparatively higher
consumption among mature adults. However, energy drinks are ranked as the
least consumed by both the categories but young adults reportedly consume
comparatively more of it than mature adults. Drinks which are generally
considered as healthy like juices and milk based liquids are more popular
among mature adults, particularly in females. As far as soft drinks are
concerned, they are more popular among men belonging to both the age
categories.
As far as coffee in concerned, it is considered to be more popular among the
urban population and its consumption is attributed with the changing
preferences among the masses, based upon the escalated social values
placed upon coffee. The most prominent coffee brand in Pakistan is Nescafe,
which is the oldest coffee brand in the country. No major innovations have been
introduced in this particular market.
PRI NT AD

AD DEMOGRAPHI CS
Demographic Segmentation
Age 20-34, 35-49
Gender Male, Female
Marital Status Doesnt Matter
Income (PKR) 25,000 and above
Education College or University going students and young
professionals
Occupation Student and Working (Professional)
Family life Cycle Bachelors, Recently Married
AD PSYCHOGRAPHI CS
SOCI AL CLASS AND VALS
This print ad targets upper, upper middle and middle class consumers who have
moderate to high level income, and are educated.
From VALs segments this ad is targeted towards Ideals and Self expressionists
with high motivation and resources known as Thinkers and Experiencers as
the ad displays young college or university going individuals.
NEEDS AND GOALS
The ad is making the consumer realize their Acquired Needs of spending the
summers with a cold drink. Also the ad may hint towards Extrinsic Needs as ad
displays a group of four relaxing in the company of Nescafe Cold Coffee.
The Ad by making the consumer aware of its needs is making the consumer
work towards a Product Specific Goal.
I N REFERENCE TO MASLOWS HEI RARCHY OF NEEDS
In reference to Maslows theory the ad evokes psychological needs, which are
social needs (belongingness and love) and self-esteem needs.
I N REFERENCE WI TH TRI O OF NEEDS
As per trio of needs the ad evokes the need for affiliations and achievement by
encouraging social gathering and accomplishing chilling out in the summer.
I N REFERENCE WI TH PERSONALI TY AND CONSUMER BEHAVI OR
The ad is targeted towards innovative and less dogmatic consumers. Also, it is
meant for visualizers since there is very little written information about the
product.
I N REFERENCE WI TH CONSUMER LEARNI NG
The Ad is in accordance of the Behavioral theory because the ice falling in
the mug full of coffee and young individuals laying their relaxing, are the
external stimuli to which the consumer will be attracted towards and would
want buy the product.
Consumer Involvement is also being used here the targeted marketed of
young individuals is clearly shown in the ad.

End

Personal Consumption Journal Report

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