Consumer Behaviour Assignment

Consumer Behaviour
Introduction
Definition:
The field of Consumer Behaviour is the study

of Individuals, Groups, or Organisations and
the processes they use to select, secure, use
and dispose of products, services, experiences or
ideas to satisfy needs and the Impacts that
these processes have on the Consumer
and society.
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Consumer Behaviour
Introduction
Definition:
Consumer Behaviour can be defined as the decision
making process and physical activity involved in
acquiring, evaluating, using and disposing of Goods &
services.
Consumer Behaviour is a study of how individuals

make decisions to spend their available resources
(time, money and effort) or consumption related
aspects (What they buy, When they buy, How they
buy etc.)
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Consumer Behaviour
Contents
1. Consumer Behaviour & Marketing Strategy
2. External Influences
3. Internal Influences
4. Consumer Decision Process
5. Organisations as Consumers
6. Consumer Behaviour & Marketing Regulation
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Consumer Behaviour
1. Introduction-Changing world of Consumers
1.0
Consumer 1. Globalisation has led to International
Behaviour Competition.
& 2. Retailers face the challenges &

opportunities of Technology such as
Marketing Online Shopping.
Strategy
3. Marketers and Regulators face tough
ethical and Social aspects of
Marketing. E.g. Marketing to children.
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Consumer Behaviour
1.0
Consumer 4. Marketers are beginning to use the
Behaviour Internet and develop Mobile
applications for the convenience of
& customers.
Marketing
Strategy 5. Change in Demographics and behavior
has led to the emergence of Online
conveniences such as Ola, Meru Cabs,
Swiggy etc.
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Consumer Behaviour
1.0
Consumer
6. Consumers mostly make choices on the
Behaviour
way products are packaged or displayed;
they let go of their rational instincts when
&
they make purchase decisions.
Marketing
Strategy 7. Consumer Behaviour delves deep into
human psychology to device methods that
influence these decisions.
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Consumer Behaviour
1.0
Consumer
8. Through forceful offers and advertisements,
Behaviour
companies try to reach out to customers and
do not want to miss a single opportunity to
&
be able to communicate with them.
Marketing This has led to a consumer culture that
Strategy crosses geographic & political boundaries.
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Consumer Behaviour
1.0 9. The study of Consumer Behaviour involves

Consumer peering into the minds of people to discover
Behaviour what goes on there as they choose products
and services.
& 10. Would the product make a suitable
impression or would it match ones
Marketing personality & lifestyle ?
Strategy
11. These are but two of the many thought
processes that go on in the consumers
mind.
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Consumer Behaviour
1.0
Consumer 12. Consumer Behaviour is one of the most
Behaviour stimulating, complex and intellectually
challenging areas.
&
Marketing 13. We need to know how people make

Strategy decisions, what impresses them, what does
not, and how their mind works.
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Consumer Behaviour
1.0
Consumer 14. All marketing decisions & regulations are
Behaviour based on assumptions about Consumer
Behaviour.
& 15. Since buying is usually spontaneous and the
entire process happens in the mind, a deep
Marketing study of Psychology is needed.
Strategy
16. One needs to also study neuroscience,
which deals with scanning brains of
consumers with advanced machines.
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Consumer Behaviour
1. Introduction-Consumer Behaviour
1.0
Consumer Understanding Consumer Behaviour helps
Behaviour in :
&
Developing an effective Marketing
Strategy.
Marketing
Strategy
Regulate a marketing practice.
Cause socially desirable behaviour.
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Consumer Behaviour
1. Introduction-Consumer Behaviour
1.0 Consumer Behaviour draws from and welcomes
Consumer insights from several disciplines:
Behaviour
a) Economics
b) Culture
& c) Psychology
d) Communications
Marketing e) Mathematics
Strategy f) Anthropology
g) Social Sciences
h) Political sciences
i) Creative Arts
j) Modern Technology.
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Consumer Behaviour
1. Introduction-Key Aspects of Consumer Behaviour

1.0 Four key aspects regarding Consumer Behaviour:
Consumer
Behaviour 1. Consumer Behaviour is a complex, multi
dimensional process. Influenced by
Demographics, lifestyle & cultural values.
&
2. Successful Marketing decisions by firms, Non
Profit organisations & Regulatory agencies
Marketing require an understanding of the processes
Strategy underlying Consumer Behaviour.
Understanding theories about When & Why
consumers act in certain ways.
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Consumer Behaviour

1.0 Four key aspects regarding Consumer
Consumer Behaviour:
Behaviour 3. Successful Marketing Decisions require
organisations to collect information about
& the specific consumers involved in the
Marketing Decision at hand.
Marketing
Research is necessary to understand
Strategy
how specific consumers will behave in
a specific situation for a given Product
category.
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Consumer Behaviour

1.0 Four key aspects regarding Consumer
Consumer
Behaviour:
Behaviour
& 4. Marketing Practices designed to

influence Consumer Behaviour involve
Marketing Ethical issues that affect the firm, the
Strategy individual & society.
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Consumer Behaviour

1.0 Necessary to conduct Research on :
Consumer How they use our Products.
Behaviour
What they think about our products and that
& of our competitors.
Marketing What they think about possible

Strategy improvements.
What attitudes they have about our products

and about our advertising etc.
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Consumer Behaviour
1. Introduction-Emergence of Marketing Concept

1.0 Marketing & Selling have been going on
Consumer
since time immemorial.
Behaviour
People gave away what they had in
& excess, leading to the birth of the Barter
system.
Marketing It was simply fulfilling the need of others.
Strategy With the invention of money, exchange was
made easier.
The Industrial revolution of the 19th century
saw the birth of factories.
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Consumer Behaviour

1.0
Consumer The Production concept turned into the
Behaviour Selling concept with excess Production.
&
As customers turned away from aggressive
Marketing selling, the need to make things that people
Strategy wanted gained momentum.
Thisled to the birth of the study of Consumer

Needs.
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Consumer Behaviour

1.0 The Marketing concept, as this was called,
Consumer
led to a change in thinking that marketing
Behaviour
was not simply selling things, but
& fulfilling human needs and thereby
making a profit out of it.
Marketing
Strategy Coinciding with the marketing concept
was the spread of mass media and better
means of communication.
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Consumer Behaviour

1.0 The advent of newspapers, radio and
Consumer Television gave rise to Branding and
Behaviour companies like P&G & Coca Cola built huge
brands by linking their brands to lifestyles.
&
The mass media was also a means of social
Marketing change.
Strategy
Through advertising and public relations,
companies could change ideas about the lives
they lived.
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Consumer Behaviour

1.0
Consumer The tools of Marketing were used to change
Behaviour peoples ideas for long term betterment giving
birth to the concept of Societal marketing.
&
The principles of Consumer Behaviour are
Marketing
Strategy now being used to introduce ideas to help
society.
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Consumer Behaviour
1. Introduction-Applications of Consumer Behaviour

1.0 1. Marketing Strategy
Consumer
Behaviour All Marketing strategies and tactics are based
on explicit or implicit beliefs about Consumer
& Behaviour.
Marketing Decisions based on Explicit beliefs are more

Strategy likely to be successful.
Knowledge of Consumer Behaviour can be an

important competitive advantage.
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Consumer Behaviour

1.0 2. Regulatory Policies
Consumer Regulatory bodies develop, interpret, and/or
Behaviour implement policies designed to protect and
aid consumers.
&
E.g. Food and Drug Administration (FDA),
Food safety and Standards Authority of India
Marketing
(FSSAI) etc.
Strategy
Effective regulation of many Marketing
practices requires an extensive knowledge of
Consumer Behaviour.
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Consumer Behaviour

1.0 3. Social Marketing
Consumer
Behaviour Social Marketing is the application of
Marketing strategies & tactics to alter or
& create behaviours that have a positive effect
on the targeted individuals or society as a
Marketing whole.
Strategy
Successful Social Marketing strategy requires
a sound understanding of Consumer
Behaviour.
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Consumer Behaviour

1.0 4. Informed Individuals
Consumer
Behaviour Literally, thousands of firms are spending
millions of $ to influence you, your family &
your friends.
&
These influence attempts occur in Ads,
Marketing packages, product features, sales pitches and
Strategy store environments. TVs etc.
It is important that consumers accurately

understand the strategies & tactics being used
so they can be more effective consumers.
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Consumer Behaviour
1. Introduction
Marketing Strategy & Consumer Behaviour
1.0 Marketing Strategy & Consumer Behaviour
Consumer Customer Value
Behaviour Customer Value is the difference between all
the benefits derived from a total product and
& all the costs of acquiring those benefits.
It is critical that a firm considers value from
Marketing the customers perspective.
Strategy Providing superior customer value requires
the organization to do a better job of
anticipating & reacting to customer needs
than the competition does.
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Consumer Behaviour
1. Introduction
1.0
Consumer
Behaviour
&
Understanding of Consumer Behaviour is the
Marketing basis for Marketing Strategy formulation.
Strategy
(Refer word Doc.)
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Consumer Behaviour
1. Introduction-Market Analysis
1.0 Market Analysis Components
Consumer A thorough understanding of the consumption
Behaviour process of :
1. Customers
&
2. Organization's own capabilities
Marketing 3. Capabilities of current and future

Strategy competitors
4. The economic, physical and technological
environment in which these elements
interact are important.
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Consumer Behaviour
1.0 1. The Consumers
Consumer To anticipate & react to customers needs and
Behaviour desires, a complete understanding of
Consumer Behaviour is a must.
&
Discovering customers current needs is a
complex process and can be accomplished by
Marketing
Marketing Research.
Strategy
Knowing the consumer requires
understanding the behavioural principles that
guide consumption behaviours.
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Consumer Behaviour
1.0 2. The Company
Consumer A firm must fully understand its own ability to
Behaviour meet customer needs: Evaluation of :
Financial condition
&
Gen.Managerial skills
Production capabilities
Marketing New Product Development
Strategy Advertising abilities
Marketing Research abilities
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Consumer Behaviour
1.0 2. The Company
Consumer A firm must fully understand its own ability
Behaviour to meet customer needs: Evaluation of :
&
R & D Capabilities
Technological sophistication
Marketing
Marketing skills
Strategy
Channel strength
Service capabilities
Market & Consumer Knowledge
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Consumer Behaviour
1.0 3. The Competitors
Consumer
Behaviour
Thorough knowledge of competitors
capabilities & strategies is required along with
&
the same level of knowledge about your own
company.
Marketing
Strategy
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Consumer Behaviour
1.0 4. The Conditions
Consumer State of Economy
Behaviour The Physical Environment
Govt. Regulations
& Technological Developments
All the above affect consumer needs &

Marketing expectations as well as company & competitor
Strategy capabilities.
Other Factors
International Agreements
Trade Barriers
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Consumer Behaviour
1. Introduction-Market Segmentation
1.0
Consumer 1. A Market Segment is a portion of a larger
Behaviour market whose needs differ somewhat from
the larger market.
&
2. The smaller the segment, the closer the total
Marketing product can be to that segments desire.
Strategy
3. To be viable, a segment must be large enough
to be served profitably.
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Consumer Behaviour
1.0
Consumer 4. Technology advances (Flexible
manufacturing and customized Media) are
Behaviour helping firms target smaller segments and
even individuals profitably.
&
5. In Behavioural Targetting, consumers online
Marketing activity is tracked and specific banner ads are
delivered based on that activity.
Strategy
6. Thus technology is helping individualized
communication increasingly cost effective.
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Consumer Behaviour
1.0 Product-Related Need Sets
Consumer 1. The company is to first identify the Need-Sets
Behaviour that the organization is capable of meeting.
& 2. The term Need Set is used to reflect the fact

that most products in developed economies
satisfy more than one need.
Marketing
Strategy 3. Identifying the various need sets involves
Consumer Research.
4. Customer Needs: Not restricted to Product

Features.
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Consumer Behaviour
1.0 Product-Related Need Sets
5. Includes: Sources of info. about the product.
Consumer
Price, Services, Image,
Behaviour
Where produced
Type of labour used etc.
&
6. Need Sets : Associated with age, stage in the
Marketing household lifecycle, gender, social class,
Strategy ethnic group or lifestyle, etc.
7. Focussing first on needs and then on

consumer characteristics associated with
those needs helps in proper and easy
segmentation.
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Consumer Behaviour
1.0
Consumer
Behaviour
Consumer Insight
& Need sets of Mall customers.
Marketing
Strategy
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Consumer Behaviour
1.0 Customers with Similar Need Sets
Consumer 1. Grouping consumers with similar need sets.
Behaviour
2. Can however be done only after research
& through surveys.
3. To design an effective Marketing programme,

Marketing a complete understanding of the potential
Strategy customers is required.
4. We need to understand the context in which

the product is purchased and consumed.
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Consumer Behaviour
1.0 Target Market
Consumer
Behaviour 1. The segment of the larger market on which the
company has to focus its Marketing effort.
&
2. Each market segment requires its own
Marketing strategy and Marketing Mix.
Marketing
Strategy 3. Sometimes only the advertising message
or retail outlets may need to differ.
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Consumer Behaviour
1. Introduction-Marketing Strategy
1.0
Consumer
Behaviour 1. Providing superior Customer Value to the
target market is the main objective.
&
2. Positioning Strategy is the heart of
Marketing Strategy.
Marketing
Strategy 3. A consistent Marketing Mix is developed to
offer value proposition to the customer.
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Consumer Behaviour
1.0
Consumer 4. Customer Value identified as the winning
Behaviour proposition for consumers of targeted
segments should meet customer
requirements and be significantly greater
& than competing offers in the market-to win
customers choice.
Marketing
Strategy 5. Marketing Mix is : The Product, Price,
Communications, Distribution and services
provided to the Target Market.
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Consumer Behaviour
1.0 The Product
Consumer A Product is anything a consumer acquires or
Behaviour might acquire to meet a perceived need.
Product refers to physical products and

&
primary or core services.
Marketing Consumers generally buy need-satisfaction,
Strategy not physical attributes.
To be successful, a Product must meet the

needs of the Target market better than the
competitors product does.
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Consumer Behaviour
1.0 Marketing Communications
Consumer Marketing Communications include
Behaviour Advertising, the Sales Force, Public
Relations, Packaging, and any other signal
that the firm provides about itself and its
& products.
Marketing 1. With whom exactly, do we want to

Strategy communicate?
2. What effect do we want our communications
to have on the target audience?
3. What message will achieve the desired effect
on our audience?
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Consumer Behaviour
1.0 Marketing Communications
Consumer
Behaviour 4. What means & media should we use to reach
the target audience?
&
5. When should we communicate with the
target audience? Month, yearly- throughout
Marketing the year etc.
Strategy
Knowledge of decision process used by the
target market for the product.
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Consumer Behaviour
1.0 Price
Consumer
Behaviour 1. Price is the amount of money one must pay
to obtain the right to use the product.
& 2. Economists often assume that lower prices
for the same product will result in more sales
than higher prices.
Marketing 3. Price sometimes serves as a signal of
Strategy Quality.
4. A Product priced Too low might be
perceived as having low quality.
5. Owning expensive items also provides
information about the owner.
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Consumer Behaviour
1.0 Distribution
Consumer
Behaviour 1. Having the product available where target
customers can buy it.
& 2. Good channel decisions require a sound
knowledge of where target customers shop
for the product in question.
Marketing 3. Simultaneous maintenance of both online
Strategy and offline options are to be maintained.
4. More and more retailers have started making
their stores more interactive.
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Consumer Behaviour
1. Introduction-Consumer Decisions
1.0 Consumer Decisions
Consumer
Behaviour 1. The Consumer Decision process intervenes
between the Marketing Strategy and the
Outcomes.
&
2. The Outcomes of the firms marketing
Marketing strategy are determined by its interaction
Strategy with the Consumer Decision Process.
3. The firm can succeed only if consumers see

a need that its product can solve.
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Consumer Behaviour
1.0
Consumer Our total
product Consumer Superior
Behaviour decision value
Competitors process expected
& total product
Marketing
Strategy Perceived value Customer
Sales
delivered satisfaction
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Consumer Behaviour
1.0 Firm Outcomes
Consumer 1. Product Position
Behaviour 2. Sales & Profits
3. Customer Satisfaction
&
Individual Outcomes
1. Need Satisfaction
Marketing
2. Injurious consumption
Strategy
Society Outcomes
1. Economic Outcomes
2. Physical Environment Outcomes
3. Social Welfare
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Consumer Behaviour
1. Introduction-The Nature of Consumer Behaviour

1.0
Consumer 1. Individuals develop self-concepts and
Behaviour subsequent lifestyles based on a variety of
internal( mainly psychological & physical) and
external (mainly sociological &
& demographic)influences.
Marketing 2. These self concepts and lifestyles produce

Strategy needs and desires, many of which require
consumption decisions to satisfy.
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Consumer Behaviour
1. Introduction-The Nature of Consumer Behaviour

1.0
Consumer 3. The consumer decision process is activated.
Behaviour
4. This process and the experiences and
& acquisitions it produces in turn influence the
consumers self-concept and lifestyle by
affecting their internal and external
Marketing characteristics.
Strategy
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Consumer Behaviour
1. Introduction-Consumer Behaviour in the Future

1.0 The top six global trends identified by Barkworth
Consumer are as follows:
Behaviour
1. Multiplicity
Consumers expect products & services to
& involve all their senses & involve them in new
experiences through a range of touchpoints.
Marketing
Strategy 2. Hyper Efficiency
Consumers will look for smarter more efficient
ways to satisfy their needs. They will want
sleeker &quicker products.
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Consumer Behaviour

1.0 The top six global trends identified by
Consumer Barkworth are as follows:
Behaviour 3. The new industrial revolution
Digital & technological advances help people

& to new creative forms & a new appreciation
of the digital as a thing of beauty.e.g.Digital
Marketing printing.
Strategy 4. Escape
Consumers are exhibiting an increasing

desire to let go, to let loose, and indulge in
freedom or sheer hedonistic joy.
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Consumer Behaviour

1.0 The top six global trends identified by
Consumer Barkworth are as follows:
Behaviour
5. Mindfulness
Increasingly, people are making their leisure
& time more about self-development.
Marketing 6. Super-personalized
Strategy Communications,products,and experiences
can now be personalised., thanks to new
technologies.
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Consumer Behaviour
2.1 Cross Cultural Variations in Consumer Behaviour
2.0 Marketing across cultural boundaries is a

difficult and challenging task.
Culture may differ in :
External
Demographics
Influences
Language
Non Verbal communication &
Values.
Success of Global Marketers depends on how
well they understand and adapt to these
differences.
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Consumer Behaviour
2.0
Language
External Demographics
Influences
Consumer Marketing
Behaviour Strategy
Values
Nonverbal
communications
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Consumer Behaviour
2.0 Globalisation means more than Product

exports and Imports.
External
Globalisation can involve exporting and
Influences
importing values, lifestyles & attitudes.
Today- Globalisation means mutual influence

as products, brands, cultures and values move
back and forth across the world.
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Consumer Behaviour
2.0 Inthe same markets, cultures are not

homogenized.
External Younger generations appeal to be more

Influences similar, modern etc. Older consumers in the
same markets cling to traditional values that
must be respected.
Consumers across the globe often hold strong

pride in their local heritage & sometimes
mistrust or resent international Brands.
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Consumer Behaviour
2.1 Cross Cultural Variations in Consumer
Behaviour
2.0 The Concept of Culture.
External Culture is the complex whole that includes

Influences knowledge,belief,art,law,morals,customs,
and any other capabilities and habits
acquired by humans as members of society.
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Consumer Behaviour
Behaviour
2.0 Aspects of Culture.
1. Includes almost everything that influences
an individuals thought processes &
External behaviours. It influences not only our
Influences preferences but how we make decisions and
even how we perceive the world around us.
2. Culture is acquired. Does not include
inherited responses and pre-dispositions.
Since much of human behavior is learnt
rather than innate, culture does affect a
wide array of behaviours.
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Consumer Behaviour
Behaviour
2.0 Aspects of Culture.
3. Culture seldom provides detailed
prescriptions for appropriate behavior.
External Culture supplies boundaries within which
Influences most individuals think and act.
4. The nature of cultural influences is such that
we are seldom aware of them.
One behaves, thinks and feels in a manner
consistent with that of other members of the
same culture because it seems natural or
right to do so.
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Consumer Behaviour
Behaviour
2.0 Framework of Culture
1. Culture operates primarily by setting rather
loose boundaries for individual behavior &
External
by influencing the functioning of such
Influences
institutions as the family & mass media.
2. Thus Culture provides the framework within

which individual & household lifestyles
evolve.
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Consumer Behaviour
Behaviour
2.0
3. The boundaries that Culture sets on
Behaviour are called Norms.
External
4. Norms are simply rules that specify or
Influences prohibit certain behaviours in specific
situations.
5. Norms are derived from Cultural Values.
6. Violation of Cultural Norms results in

Sanctions or Penalties.
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Consumer Behaviour
Behaviour
2.0 Values, Norms, Sanctions and Consumption
Patterns. Norms
Specify ranges
External Of appropriate
Influences Cultural Behaviour
Consumption
Cultural
Values Consumption
Patterns
Values Patterns
Sanctions
Sanctions
Penalties
Penaltiesfor
for
violating
Violating
Norms
Norms
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Consumer Behaviour
Behaviour
2.0 7. Cultural Values give rise to Norms and
associated Sanctions, which in turn
influence consumption patterns.
External
Influences 8. Norms are adopted by individuals during
socialization, as they grow up into
independent adults.
9. Behaviours-Learnt from family members,

school, community organisations and peer
groups early in life.
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Consumer Behaviour
Behaviour
2.0
10. Cultures, typically evolve and change
slowly over time.
External
Influences
11. Marketing Managers must understand
existing cultural values, and emerging
cultural values of the societies they serve.
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Consumer Behaviour
2.0 Variations in Cultural Values.
External There are three forms of Cultural Values:

Influences
1. Other Oriented Values
2. Environment-oriented Values
3. Self Oriented Values
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Consumer Behaviour

Reflect a societys view of the appropriate
External relationships between individuals and groups
Influences within that society.
These relationships have a major influence on
marketing practice.
Here consumers look toward others for
guidance in purchase decisions and will not
respond favourably to promotional appeals to
be an individual.
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Consumer Behaviour

External
Influences Individual / Collective
Individualism : Americas, Australia, UK, Canada,

New Zealand & Sweden.
Collectivist : Taiwan, Korea, Hong Kong,

Mexico, Japan, India & Russia.
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Consumer Behaviour

a) Individual / Collective
External Collectivist
Influences
Respect & concern after a service failure.
Tend to be imitative and not innovative.
Accept celebrity appeals.
Luxury items are less important.
Concern for appearance is 40 % higher for those
in collectivist countries.
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Consumer Behaviour

b) Youth / Age
External
1. American society is clearly youth oriented.
Influences
However, many Asian cultures have
traditionally valued the wisdom that comes
with age.
2. Youth trend is catching on in Taiwan & Arab
countries.
3. Children do play a role in Family decisions.
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Consumer Behaviour

External
Influences b) Youth / Age
4. Children demand in the US while they request in

Fiji countries.
5. In most places, traditional segments & values still

remain. Marketers must adapt not only across but
within cultures.
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Consumer Behaviour

c) Extended / Limited Family
External
1. Our families have a lifelong impact on us,
Influences
both genetically & through our early
socialization, no matter what culture we come
from.
2. In the US, the family is defined fairly
narrowly & is less important than many other
cultures.
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c) Extended / Limited Family Role of Family in
External India
Influences
1. Extended Families.
2. Families still function on the basis of sharing
lively hoods & sustenance.
3. Parents have collectivist tendencies and
support to extended families continues.
4. Priority of family over self.
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Consumer Behaviour

c) Extended / Limited Family Role of Family in
External India
Influences
5. Focus remains on the child-education &
Career.
6. Pooling of resources across family.
7. Role of elders in family is still significant in
large no. of households.
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d) Masculine / Feminine
External 1. Basically we live in a masculine-oriented world.
Influences 2. This value dimension influences both obvious &
subtle aspects of Marketing.
3. Roles of women are changing & expanding
throughout much of the world.
4. Women taking to work has led to increased
demand for time saving products.
5. Traditional segments & values do still remain.
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d) Masculine / Feminine
6. Marketers must adapt not only across but within
External cultures.
Influences 7. Women in traditional Chinese and western culture
are at crossroads of modernization &
traditionalism.
8. They have increasing mount of financial &
decision power within the family and in the
society.
9. They however continue to be under the pressure
of traditional expectations on females as being a
good wife and mother.
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d) Masculine / Feminine In India
1. Increased education, awareness, work oriented life
External styles, changing social norms & a society more
Influences open to change, have led to an enhancement in the
role of women in the family consumption decision
making process.
2. They now play a significant role in the
mainstream of the economy and in the domestic
labour sector.
3. They decide what items are to be spent as well as
the actual purchasing of products & Brand
choices.
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Consumer Behaviour
External
Influences
Prescribe a societys relationship to its
economic & technical as well as its
physical environment.
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Consumer Behaviour

a) Cleanliness
External
Influences
US : High value is placed on cleanliness.
India & China : Lack of basic hygiene still
causes significant health problems.
McDonald has been credited with introducing

more hygienic food preparation.
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Consumer Behaviour

b) Performance / Status
External 1. A status-oriented society is more likely to prefer
Influences Quality or established & prestigious brand
names & high priced items to functionally
equivalent items with unknown brand names.
2. Advertising in China, India and Japan tends to
involve more appeals to status or wealth.
3. These countries are seeing status-seekers in the
rapidly emerging middle class.
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Consumer Behaviour

c) Tradition / Change
External 1. Certain countries like Britain and Korea
Influences continue to be traditional and therefore have a
resistance to change.
2. For the mainstream audience : Traditional
appeals are used thro Television.
For the younger generation, modern appeals
thro magazines, focusing on technology,
fashion and leisure are used.
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Consumer Behaviour

d) Risk taking / Security
External
1. A society that does not admire risk taking in
Influences
unlikely to develop enough entrepreneurs to
achieve economic change & growth.
2. New Product introductions, new channels of

distribution, advertising themes, and reliance on
Brand name are affected by this value.
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Consumer Behaviour

e) Problem Solving / Fatalistic
External
1. Are people Fatalistic or optimistic ?
Influences
2. Fatalists tend to feel they dont have control over
the outcome of events.
3. This reduces consumer expectations on quality.
Reduces the likelihood that consumers would
resort to making formal complaints when faced
with an unsatisfactory purchase.
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Consumer Behaviour

f) Nature
External
1. Some countries place a high value on environment.
Influences
Packaging & other environmental regulations are
stronger in these countries.
2. These differences in attitudes are reflected in

consumers purchase decisions, consumption
practices, and recycling efforts.
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Consumer Behaviour

External
Reflect the objectives & approaches to life that
Influences
the individual members of society find
desirable.
These values have strong implications for

Marketing Management.
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Consumer Behaviour

a) Active / Passive
External Physical skills and feats are valued differently in

Influences different places.
Advertising themes and formats should take this into
consideration when they are designed.
b) Sensual Gratification / Abstinence
Muslim cultures are extremely conservative on this

value as are many Asian cultures.
Ads in Hong Kong and India contain fewer sex appeals.
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Consumer Behaviour

c) Material / Non Material
External
Influences Instrumental Materialism is the acquisition of
things to enable one to do something.
E.g. Ski
Terminal Materialism is the acquisition of items
for the sake of owning the item itself.
E.G Art.
Cultures differ markedly in their relative
emphasis on these two types of Materialism.
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Consumer Behaviour

d) Hard Work / Leisure
External Do people work for the value of Work or only
Influences for Rewards ?
Will people continue to work hard even after
their economic needs are met or will they look
upto Leisure ?
Hours worked per week are highest in Hong
Kong & Mexico and lowest in France &
Canada.
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Consumer Behaviour

e) Postponed / Immediate Gratification.
External
Save for the rainy day or
Influences
Live for Today ?
Is it better to secure immediate benefits and
pleasures or to suffer in the short run for
benefits in the future ?
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Consumer Behaviour

f) Religious / Secular.
External
Influences
Some countries are relatively secular.
Understanding the extent and type of religious

influences operating in a culture is essential for
effectively designing all elements of the
marketing mix.
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Consumer Behaviour
2.0 Cultural Variations in Non Verbal

Communications.
Differences in verbal communication systems
External
(Languages)are immediately obvious to anyone
Influences
entering a foreign culture.
Differences in pronunciation, timing, and meaning
still occur.
Symbolic meanings associated with words, the
absence of some words from various languages, and
the difficulty of pronouncing certain words.
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Consumer Behaviour

Communications.
Non verbal communication systems are the
External arbitrary meanings a culture assigns actions, events,
Influences and things other than words.
There are seven variables which influence non-
verbal communications:
1. Time 5. Agreements
2. Space 6. Things
3. Symbols 7. Etiquette
4. Relationships
94
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Consumer Behaviour

Communications.
Time
External
Influences Space
Etiquette
Nonverbal
Communications Symbols
Things
Relationships
Agreements
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Consumer Behaviour

Communications.
1. Time
External
Influences 2. Space
3. Symbols
4. Relationships
5. Agreements
6. Things
7. Etiquette
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Consumer Behaviour

Communications.
1. Time
External Time Perspective:
Influences Viewed as linear & fixed by American, Canadians,
Etc. Monochronic Time Perspective
Latin Americans, Asians & Indians view time as
being less discrete & less subject to scheduling.
Such culture have an orientation towards the
present & the past. This is known as Polychronic
Time perspective.
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Consumer Behaviour

Communications.
1. Time
External
Influences Monochronic Polychronic
1 Do one thing at a time Do many things at once
2 Concentrate on the job Highly distractable &
subject to interruptions
3 Take deadlines & Consider deadlines &

schedules seriously schedules secondary
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Consumer Behaviour

Communications.
1. Time
External
Influences Monochronic Polychronic
4 Committed to the job or task Committed to people &
relationships
5 Accustomed to short-term Prefer long term
relationships relationships
6 Convenience foods Fail in Polychronic
positioned in terms of time Culture
saving
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Consumer Behaviour

Communications.
1.Time
External
Influences How do Marketing activities vary ?
Personal Selling & negotiation Styles & Strategies

would need to differ
Contests & sales with deadlines would generally be
more effective in Monochronic cultures
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Consumer Behaviour

Communications.
2. Space
External
Influences Personal Space:
In the US : Normal Business Conversations

occur at distance of 3 to 5 feet
Northern Europe : Longer
Latin America : Shorter
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Consumer Behaviour

Communications.
2. Space
External
Influences
North American considers the Latin American to be
pushy & aggressive
Latin American considers the North American to be

cold, aloof & snobbish
102
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Consumer Behaviour

Communications.
3. Symbols
External
Influences
Colours, animals, shapes, numbers & music have
varying meanings across cultures
Failure to recognize the meaning assigned to the

symbol can cause serious problems
103
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Consumer Behaviour

Communications.
3. Symbols
External
Influences Meanings of Numbers, Colours & other Symbols
1.White: Purity in USA
Mourning or death in far East
2. Purple: Associated with death in many
Latin American countries
3. Blue : Feminity in Holland
Masculinity in Sweden & USA
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Consumer Behaviour

Communications.
3.Symbols
External Meanings of Numbers, Colours & other Symbols
Influences
4. Red: Unlucky in Germany
Positive in Denmark
5.Yellow flowers : Sign of death in Mexico
Infidelity in France
6. The Number 7: Unlucky in Singapore
Lucky in India, USA
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Consumer Behaviour

Communications.
3.Symbols
External
Influences Meanings of Numbers, Colours & other Symbols
7. Owl: Wisdom in USA

Bad luck in India
8. Deer : Speed, grace in USA
Homosexuality in Brazil
106
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Consumer Behaviour

Communications.
4. Relationships
External The Rights & obligations imposed by relationships
Influences & friendship are another non - verbal cultural
variable
Americans form relationships & make friends
quickly & easily & drop them easily also
Other parts of the world : Relationships &
Friendships are formed slowly & carefully because
they imply deep & lasting obligations
107
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Consumer Behaviour

Communications.
5. Agreements
External
Influences Americans rely on an extensive & generally highly
efficient legal system for ensuring that business
obligations are honoured & for resolving
disagreements
Other cultures rely instead on relationships,
friendship & kinship; local moral principles to
guide business conduct
108
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Consumer Behaviour

Communications.
5. Agreements
External
Influences Chinese tend to pay more attention to relationships
than contracts
The Chinese want to know & understand you before
they buy from you
For Americans: Prices are uniform
Latin American , Asian & Middle East : All Prices
are negotiated prior to sale
109
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Consumer Behaviour

Communications.
6. Things
External
Influences Cultural meaning of things leads to purchase
patterns that one would not otherwise predict.
The differing meanings that cultures attach to
things, including products, make gift giving a
particularly difficult task
In China, the word for clock is similar to the word
for funeral, making clocks inappropriate gifts
110
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Consumer Behaviour

Communications.
6. Things
External
Influences Gift of cutlery: Inappropriate in Russia, Japan,
Taiwan & Germany
In China: Gifts should be presented privately
Arab countries: They should be given in front of

others
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Consumer Behaviour

Communications.
7. Etiquette
External
Influences Etiquette represents generally accepted ways of
behaving in social situations
Behaviours considered rude or obnoxious in one
culture may be quite acceptable in another
Normal voice tone, pitch & speed of speech differ
among cultures & languages, as does the use of
gestures
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Consumer Behaviour

Communications.
7. Etiquette
External Westerners often mistake the seemingly loud, volatile
Influences speech of some Asian cultures as signifying anger or
emotional distress when it is normal speech for the
occasion
Many Japanese find the American tendency to look
straight into anothers eyes when talking, to be
aggressive and rude
The importance of proper, culture-specific etiquette is
obvious
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Consumer Behaviour
2.0 Global Cultures:

Global consumer cultures or segments are
External emerging
Influences Shared set of consumption-related
symbols with common meaning &
desirability among members
Cosmopolitan, knowledgeable & modern
& share many values with similar
individuals across a range of national
cultures
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Consumer Behaviour
2.0 Global Cultures:

Created by the globalisation of mass
External media, work, education & travel
Influences Eg: A combined shampoo & conditioner
could be positioned as a time saver for the
time-pressured modern career woman
Philips Electronic is one firm that has
developed a global positioning strategy
based on such a global culture
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Consumer Behaviour
2.0 Global Youth Culture (14-29):

A recent survey of global youth across six
countries found that 86% believe that
External
products help to define & communicate their
Influences
personality
Compelling similarities in the top three
spending categories :
Music
Sports
Fashion
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Consumer Behaviour
2.0 Global Youth Culture (14-29):

Marketers are using similarities among youth
across cultures to launch global brands or to
External
reposition current brands to appeal to this
Influences
large market
Wired & creative teens order of the day
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Consumer Behaviour
2.0 Global Demographics.

1. Economies such as India & China have
External seen rapid growth, which has led to
Influences increased personal disposable income &
strong & growing middle classes.
2. Disposable income is one aspect of
demographics.
3. Demographics describe a population in
terms of its size, structure and
distribution.
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Consumer Behaviour

4. Size refers to the number of individuals in
External the society.
Influences 5. Structure describes the society in terms
of age, income, education, and
occupation.
6. Distribution refers to the physical
location of individuals in terms of
geographic region and rural, suburban,
and urban location.
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Consumer Behaviour

7. Demographics are both a result and a
External cause of cultural values.
Influences 8. Densely populated societies are likely to
have more of a collective orientation than
an individualistic one.
9. Cultures that value Hard work and the
acquisition of material wealth are likely to
advance economically.
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Consumer Behaviour

10. A critical aspect of demographics for
marketers is income, particularly the
External distribution of income.
11. Marketers increasingly use purchasing
Influences power parity (PPP) rather than average or
median income to evaluate markets. PPP is
based on the cost of a standard market basket
of products bought in each country.
12. The estimated age distributions of the USA,
Phillippines, Japan, Canada and India show
an aging Japan & Canada & a youthful
Phillippines and India.
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Consumer Behaviour
2.0 Cross-Cultural Marketing Strategy.

1. Cross cultural variations in values and
demographics make it necessary for
External companies to adapt products & services to
Influences local considerations.
2. The term for this adaption is Glocalisation-

Global Localisation.
3. Standardised strategies can result in

substantial cost savings.
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Consumer Behaviour
2.0 Cross-Cultural Marketing Strategy.
4. Companies must often adapt to cultural

External differences.
Influences
5. Most companies blend standardization and
customization and a critical success factor for
achieving the right balance.
123
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Consumer Behaviour
2.2 The Changing Society-Values and Consumption Patterns
2.0
External
Influences Values
&
Consumption Patterns
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Consumer Behaviour
2.0 1. Changes in Cultural Values: A Global

Phenomenon.
External
2. Changes in Self, Environment & Other
Influences
Oriented Values.
3. Marketing Strategy & Values

a. Green Marketing
b. Cause Related Marketing
c. Gender Based Marketing
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Consumer Behaviour

Phenomenon.
Understand Core Values in Society & their
External effect on Consumption
Influences
1. In both developed and developing nations, more
women are taking on traditionally male-oriented
tasks & more men are taking on female oriented
tasks.
2. Men-more involved in grocery-shopping.
3. Younger women are now more educated than their
male counterparts.
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Consumer Behaviour

Phenomenon.
Influences
4. With more men losing jobs, share of household
jobs getting changed.
5. More balanced masculine / feminine value as a
result of which role differentiation between men
and women is reduced.
6. The US is taken as an example of Changing
Values.
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Consumer Behaviour

Phenomenon.
Influences 7. Women are becoming more prominent in
various sports:
Racing.
Basket Ball
8. Women are also active in amateur sports.
9. Two thirds engage in some general fitness
activity.
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Consumer Behaviour

Phenomenon.
Understand Core Values in Society & their effect
External on Consumption
Influences
10. Men more likely to stick to brand names they
recognize, less likely to shop with a list & less
likely to look for in-store bargains.
11. Women are more likely to change brands for the
sake of variety, more likely to make unplanned
purchases & more likely to shop every aisle.
129
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Consumer Behaviour

Phenomenon.
Influences
12. Cultural values of Indians were originally:
a. Thrift
b. Saving for the rainy day.
c. Being debt free.
13. Late 1990s: Credit played a major role in
financing the consumption of durables.
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Consumer Behaviour

Phenomenon.
Influences
14. Indians became :
a. More materialistic. Worked very hard.
b. Consumerism was increasing; Savings
goals for Electronics etc.
c. Attitudes towards foreign brands was
being replaced with Indian Brands.
131
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Consumer Behaviour

Phenomenon.
Influences
15. In the US :
Shift to organic food.
Therefore, it is necessary to understand the
underlying value shifts to understand
current & future consumer behavior.
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Consumer Behaviour

Phenomenon.
Understand Core Values in Society & their effect
External on Consumption
Influences
16. Values are seen as Cognitive representations of
three universal requirements which cover :
a. Biological Needs
b. Interpersonal interactional requirements &
c. Normative societal demands for group
welfare & survival.
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Consumer Behaviour

Phenomenon.
Understand Core Values in Society & their effect on
Consumption
External 17. The requirements present eight motivational
Influences dimensions:
a. Enjoyment b. Security
c.Social Power d. Achievement
e. Self-Direction f. Pro social
g. Restrictive conformity h. Maturity
Each one of these may then influence the
choices that consumers make.
134
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Consumer Behaviour
2.0 2. Changes in Self, Environment and Other

Oriented Values
Self Oriented Values
External
India has globally been viewed as a deeply
Influences
spiritual, non-materialistic, collectivist
society.
The cultural diversity of India has made it
necessary to have a large number of
segments based on the different cultural
values.
135
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Consumer Behaviour

Oriented Values
External
Influences 1. Religious / Secular
2. Sensual Gratification / Abstinence
3. Postponed / Immediate Gratification
4. Material / Non Material
5. Hard Work / Leisure
6. Active / Passive
136
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Consumer Behaviour

Oriented Values
External Self Oriented Values

Influences 1. Religious / Secular
India may need to be segmented on the basis of its

religious / secular characteristics.
Food & clothing both have to be strategically reviewed

for its religious implications when they are retailed in a
locality or served in a certain way.
137
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Consumer Behaviour

Oriented Values
External 2. Sensual Gratification / Abstinence
Influences There are consumers in India who are termed as
liberated modern, particularly the youth,
Sensual Gratification in say, movies, music and
other art may be acceptable and popular.
There are also sizeable numbers of those who
traditionally stick to codes of conduct, product
usage etc.
138
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Consumer Behaviour

Oriented Values
External 2. Sensual Gratification / Abstinence
Influences Use of advertisements based on sensual
gratification has increased. E.g Axe deodorant.
Ads have used sensual themes, but within Indian
sensibilities.
Axe body spray is the No.1 brand in its category
and relies heavily on sex appeals targeting young
men.
139
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Consumer Behaviour

Oriented Values
External
Influences 2. Sensual Gratification / Abstinence
Food industry relies on consumer desires for
sensual gratification by selling the pleasure,
happiness, and thrills that various foods can
deliver.
E.g. Premium cookies: offer a small indulgence
anytime, anywhere.
140
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Consumer Behaviour

Oriented Values
External
Influences 3. Postponed / Immediate Gratification
Todays youth support the growth of a large no. of
categories that are viewed as hedonistic, such as
entertainment and communication: movies,
gaming, videos, sports, electronic durables used
for entertainment, food, etc.
They want the gratification of needs immediately.
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Consumer Behaviour

Oriented Values
External 3. Postponed / Immediate Gratification
Influences The boom in consumer finance- housing, automobiles,
electronic goods, mobiles, personal computing- higher
incomes & finance options.
Immediate Gratification- buying goods now with loans
is seen as a better choice.
There has been a closing of the rural-urban gap in the
spend-to-save ratio across various income levels.
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Consumer Behaviour

Oriented Values
External 4. Material / Non Material
Influences Clear trends of greater popular materialism
Increase in materialistic values
Consumption era Post 1990 Material values
& lifestyles.
Rural India Earlier tradition bound and frugal
& cost conscious today consumes more
lipstick, talcum powder & cosmetics than urban
India.
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Consumer Behaviour

Oriented Values
External 4. Material / Non Material
Influences Children & the youth have led this emergent
material culture. Have become both initiators
& influencers.
Tendency towards more lifestyle oriented or
hedonistic choices
Online sale of various products increasing
steadily
144
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Consumer Behaviour

Oriented Values
External 5. Hard Work / Leisure
Influences Indians work long hours. Clearly because of
material orientation
Work competes with other important aspects of
ones life
This opens up opportunities for marketers who can
deliver convenience, giving rise to convenience
products
145
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Consumer Behaviour

Oriented Values
External
Influences 6. Active / Passive
Youth moving away from TV faster than any other
group
Alternative activities, including surfing the net,
sports, cooking & gardening are popular
146
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Consumer Behaviour

Oriented Values
External
Environment Oriented Values
Influences 1. Cleanliness
2. Tradition / Change
3. Risk Taking /Security
4. Problem Solving / Fatalistic
5. Admire / Overcome Nature
6. Performance / Status
J.Parthasarathy 147
Consumer Behaviour

Oriented Values
External
Influences 1. Cleanliness
Emergence of products for maintaining hygiene-

Napkins, hand washes, swipes etc.
Luxuries becoming necessities.
148
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Consumer Behaviour

Oriented Values
External 2. Tradition / Change
Influences India - transitional culture at present
Sharp divide across veg & non veg meals determined
more by religious following than by medical or health
issues
Use of dining tables, kitchen sinks & internationally
popular foods such as instant noodles, ketchup &
sauces. Packaged cooking spices, etc.
149
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Consumer Behaviour

Oriented Values
External
Influences 2. Tradition / Change
Consumerism & higher spending is gaining more
currency now a days.
People have started consuming refrigerated rather
than freshly cooked food in many sections of rural
society.
150
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Consumer Behaviour

Oriented Values
External
Influences 3. Risk Taking /Security
Risk taking seems higher now in the youth

population.
Food types have changed. Still large number

follow traditional meal options.
151
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Consumer Behaviour

Oriented Values
External
Influences 4. Problem Solving / Fatalistic
Today, Indians are innovative and problem

solving.
Have a high degree of reliance on locally

developed products and solutions.
152
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Consumer Behaviour

Oriented Values
External
Influences 5. Admire / Overcome Nature
Indians have a tradition of production &
consumption closely tied with natural products,
preserving nature.
Firms that convince environmentally concerned
consumers that their products are environmentally
sound can reap huge rewards.
153
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Consumer Behaviour

Oriented Values
External
Such an approach has been termed
Enviropreneurial Marketing.
Enviropreneurial Marketing is environmentally
friendly marketing practices, strategies and tactics
initiated by a firm to achieve a competitive
differentiation.
154
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Consumer Behaviour

Oriented Values
External
Research shows that such a marketing approach

can lead to increased new product success &
increased market share.
155
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Consumer Behaviour

Oriented Values
External
Influences 6. Performance / Status
With Americans shifting back to a focus on

performance than status, developing countries are
also likely to follow suit.
156
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Consumer Behaviour

Oriented Values
External
Other Oriented Values
Influences 1. Individual / Collective
2. Diversity / Uniformity
3. Limited / Extended Family
4. Youth / Age
5. Competition / Cooperation
6. Masculine / Feminine
157
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Consumer Behaviour

Oriented Values
External
India has a participative culture, collective in
orientation.
Most communications still use a family settling.
New realities of transitional culture & increasing
value orientation around the self.
158
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Consumer Behaviour

Oriented Values
External
Brand Positioning & Marketing communications
around this theme is common to most categories
of visible consumption products.
Greater use of aspirational positioning where the
identification of the self, with aspirational social
strata.
159
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Consumer Behaviour

Oriented Values
External
Influences 2. Diversity / Uniformity
India is a country of Unity in Diversity.
Gender diversity is another area that is emerging
from uniformity of gender roles & codes of
behavior to diversify in roles & diversity in
corporate hiring.
160
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Consumer Behaviour

Oriented Values
External
Influences 2. Diversity / Uniformity
Indians have a fascination for foreign goods
global lifestyle deep rooted urge to explore
diversity.
161
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Consumer Behaviour

Oriented Values
External 3. Limited / Extended Family
Influences The role of youth in the family represents the typical
Indian transitional culture: there is less interaction
amongst family members for more and more items of
personal consumption.
Youth is seen as playing a leading role as initiators as
well as Influencers in an increasing range of electronic
and hi tech products, appliances & white goods.
162
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Consumer Behaviour

Oriented Values
External
Influences 4. Youth / Age
163
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Consumer Behaviour

Oriented Values
External
Influences 5. Competition / Cooperation
164
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Consumer Behaviour

Oriented Values
External
Influences 6. Masculine / Feminine
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Consumer Behaviour
2.2 The Changing Society-Values and Consumption
Patterns
2.0 Marketing Strategy & Values
1. Green Marketing
External 2. Cause Related Marketing
Influences 3. Gender Based Marketing
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Consumer Behaviour
Patterns
1. Green Marketing
Marketers have responded to consumers
External increasing concern for the environment for
Influences the environment with an approach called
Green Marketing
Green Marketing generally involves :
1. Developing products whose production
use, or disposal is less harmful to the
environment than the traditional versions
of the product.
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Consumer Behaviour
Patterns
1. Green Marketing
External 2. Developing products that have a positive
Influences impact on the environment
3. Tying the purchase of a product to an
environmental organisation or event
Eg: Levis Organic cotton jeans
Liva: VSF
Recycled paper / cover, etc.
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Consumer Behaviour
Patterns
1. Green Marketing
External In India:
Influences A great focus on renewable energy sources
Govt. subsidies for solar water heaters &
cookers.
Real Estate Industry LEED ( Leadership in
Energy & Environmental Design)
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Consumer Behaviour
Patterns
1. Green Marketing
External In India:
Influences Mandatory energy efficient ratings on
consumer durables adoption of BEE star
ratings
Apart from Green, performance must be
otherwise good for a Brand to be chosen.
The growth of organic foods has been steady
but slow in India.
170
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Consumer Behaviour
Patterns
2. Cause Related Marketing
External The term Cause marketing is sometimes
Influences used interchangeably with Social
Marketing
Social Marketing- Done to enhance the
welfare of individuals or society without
direct benefit to the firm.
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Consumer Behaviour
Patterns
External Cause related Marketing (CRM)
Influences Marketing that ties a company & its
Products to an issue or cause with the goal
of improving sales or corporate image while
providing benefits to the cause.
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Consumer Behaviour
Patterns
Companies associate with causes to create
External
long term relationships with their customers,
Influences
building corporate & brand equity that should
eventually lead to increased sales
In India, Social Marketing has been in
evidence for many decades
Cry
Help Age India, etc.
173
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Consumer Behaviour
Patterns
External Khadi Movement
Influences Cottage Emporium, Co-optex, Fab India
Many consumers travel out of their way
to find stores & Brands that support the
causes they care about & also pay more
for those products.
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Consumer Behaviour
Patterns
3. Gender Based Marketing
Shift both ways
External More women taking on traditionally male:
Influences oriented tasks &
More men taking on traditionally female-
oriented tasks
Marketers of products & services ranging
from Automobiles, sports wear, Financial
services clearly understand the importance of
women as a market segment.
175
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Consumer Behaviour
Patterns
External
Two Wheelers:
Influences
Originally Luna For women, then Scooty
Now Loreal, Garnier, etc.
Indian women turning from traditional to

trendy.
176
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Consumer Behaviour
Patterns
Market Segmentation :
External
Influences Four significant female market segments exist:
1. Traditional house wife
2. Trapped house wife
3. Trapped working woman
4. Career working woman
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Consumer Behaviour
2.3 The Changing Society-Demographics and Social
Stratification
2.0
External
Influences The Changing Society
Demographics and Social
Stratification
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Consumer Behaviour
2.3 The Changing Society-Demographics and Social
Stratification
2.0 Introduction
1. Demographics
2. Understanding American Generations
External
Influences 3. Social Stratification.
4. Social Structure in the USA.
5. The measurement of Social Class.
6. Social Stratification & Marketing Strategy.
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Consumer Behaviour
2.3 The Changing Society-Demographics & Social
Stratification.
2.0 Critical role played by Demographics
Introduction
External Digital Savvy
Influences 1. Digital savvy customers are leading-edge
digital users who are early adopters and
diffusers of information related to
technology in terms of:
a) Technology ownership
b) Internet usage &
c) Cell phone feature usage.
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Consumer Behaviour
Stratification.
2.0 Critical role played by Demographics
Digital Savvy
2. They have a very distinct demographic
External profile found across all age categories.
3. Characterised by luxury purchases, travel to
Influences
exotic destinations.
4. Heavy online spenders who are also active
and athletic (Yoga, gym etc.) and are sports
fans.
5. Heavy users of digital media.
6. Marketers must segment and understand
their markets.
181
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Consumer Behaviour
Stratification.
2.0 1. Demographics
a) Demographics describe a population in
terms of its size, distribution and structure.
External b) Demographics influence consumption
behaviours both directly & by affecting
Influences other attributes of individuals, such as their
personal values & decision styles.
I. Population
II. Occupation
III. Education
IV. Income
V. Age
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Consumer Behaviour
Stratification.
2.0 1. Demographics
I. Population
a) The population on India, as per the census
External of India 2011, is over 1.21 billion people,
with over 260 million households.
Influences
b) Accounts for one sixth of the world
population.
c) It is projected that the Indian population
would overtake China by 2030.
d) Given the consumer diversity across states,
state-wise analysis is used as a means of
devising consumer-specific regional
marketing strategies.
183
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Consumer Behaviour
Stratification.
2.0 1. Demographics
II. Occupation
1. Occupation is strongly associated with
education & Income.
External 2. The type of work one does & the types of
Influences individuals one works with over time also
directly influences ones values, lifestyle,
and all aspects of the consumption process.
3. Media preferences, hobbies,& shopping
patterns are also influenced by
occupational class.
4. India-primarily an agricultural nation.
Now- shift towards services.
184
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Consumer Behaviour
Stratification.
2.0 1. Demographics
II. Occupation
5. Family traditions, caste, region &
External
development status of the residential area
Influences
have played a strong role in an
individuals choice of occupation : Caste
norms. Normative influences remain
stronger in rural areas than urban.
6. Occupations earlier ran in the family-in
terms of caste, hereditary etc.
185
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Consumer Behaviour
Stratification.
2.0 1. Demographics
II. Occupation
7. With greater income assurance and levels of
External income, smaller families and better health,
Influences education has also spread to a significant extent.
This has led to a change in the occupational
profile of the population significantly.
8. Occupations do influence consumption in India

for various products like bicycle, mixie,
motorcycle, TV etc.
186
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Consumer Behaviour
Stratification.
2.0 1. Demographics
III. Education
1. India is increasingly seen as a country with a
future in the knowledge-based economy.
External 2. Education level usually determine
Influences occupational chances & thereby Income.
3. Education may also affect skills & expertise
& thereby Income.
4. Education and literacy levels in India are
growing.
5. More females added to population-educated
mothers lead to greater propensity to educate
the child.
187
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Consumer Behaviour
Stratification.
2.0 1. Demographics
III. Education
6. It also corresponds to higher family
External Incomes.
Influences 7. Education clearly drives income in
todays economy.
8. Education influences what one can
purchase by partially determining
ones income & occupation.
9. Has a strong influence on ones tastes
& preferences.
188
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Consumer Behaviour
Stratification.
2.0 1. Demographics
IV. Income
1. A households income level combined with
its accumulated wealth determines its
External purchasing power.
Influences 2. Economic expansion results in higher
incomes & spending power.
3. As a developing economy, India has seen a
rising income amongst a growing number of
households across both urban and rural
markets.
4. The differences in income across the
population is said to be even more
pronounced than earlier.
189
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Consumer Behaviour
Stratification.
2.0 1. Demographics
IV. Income
5. Marketers will have to differentiate their mix
across segments to an even greater extent A
External households income level combined with its
Influences accumulated wealth determines its
purchasing power.
6. The growth of penetration in the rural areas
also permits the use of the mobile phone as a
marketing access tool.
7. Together with mobile banking, these are
trends that marketers would have to monitor
& leverage for their own growth in India.
190
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Consumer Behaviour
Stratification.
2.0 1. Demographics
V. Age
External 1. Proper age positioning is critical for
many products.
Influences
2. Age influences the consumption of
products.
3. Our age shapes the media we use,
where we shop, how we use products,
and how we think & feel about
marketing activities.
4. Age distribution is to be studied.
191
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Consumer Behaviour
Stratification.
2.0 1. Demographics
V. Age
5. Some of the marketing implications
include:
External Demand for childrens products.
Influences Teen market.
Products consumed by the age group
30 to 39
40 to 49
Over 60 : Largest growth area.
6. Marketers to study the demographic
dividend. Ratio of those who earn to the
rest of the population.
192
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Consumer Behaviour
Stratification.
2.0 1. Demographics
V. Age
External 7. More earning members: more

Influences consumption.
8. Demographic dividend usually lasts

for a period of one generation.
9. India- A competitive market- growing

sophistication& maturity as a
consuming group.
193
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Consumer Behaviour
Stratification.
2.0 2. Understanding American Generations.
External 1. A generation, or age cohort, is a group of

Influences persons who have experienced a common
social, political, historical, & economic
environment.
2. Age cohorts, because their shared histories

produce unique shared values & behaviours,
often function as unique market segments.
194
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Consumer Behaviour
Stratification.
3. Cohort analysis is the process of describing

External & explaining attitudes, values, and
Influences behaviours of an age group as well as
predicting its future attitudes, values &
behaviours.
4. Each generation behaves differently from

other generations as it passes through
various age categories.
195
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Consumer Behaviour
Stratification.
External I. Pre Depression : Prior to 1930

Influences II. Depression : 1930 to 1945
III. Baby Boom : 1946 to 1964
IV. Generation X : 1965 to 1976
V. Generation Y : 1977 to 1994
VI. Generation Z : 1995 to 2009
196
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Consumer Behaviour
Stratification.
Study of these segments
External Products
Influences Status
Ethnic Diversity
Technology
Communication Strategies, etc.
197
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Consumer Behaviour
Stratification.
2.0 3. Social Stratification.
External 1. The words social class and social standing

Influences are used interchangeably to mean societal
rank-ones position relative to others on one
or more dimensions valued by society.
2. Your social standing is a result of

characteristics you possess that others in
society desire & hold in high esteem.
198
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Consumer Behaviour
Stratification.
Education
External
Influences Occupation
Ownership of property
Income level
Heritage etc.
Influence your social standing.
Individuals with different social standings tend
to have different needs & consumption patterns.
199
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Consumer Behaviour
Stratification.
A social class system can be defined as a
hierarchical division of a society into relatively
External distinct & homogeneous groups with respect to
Influences attitudes, values and lifestyles.
Socio Economic Unique
Social
factors Behaviours
Standing
Occupation
Education Preferences
Upper class
Ownership Purchases
Middle class
Income Consumption
Working class
Heritage Communication
Lower class
200
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Consumer Behaviour
Stratification.
2.0 4. Social Structure in the USA.
External 1. The Upper Upper Class

Influences 2. The Lower Upper Class
3. The Upper Middle Class
4. The Middle Class
5. The Working Class
6. The Upper Lower Class
7. The Lower Lower Class
201
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Consumer Behaviour
Stratification.
2.0 5. The Measurement of Social Class.
1. In India, social class can be viewed in many
ways.
External 2. The traditional view was determined by
Influences social structure of castes based classes.
3. Many companies have developed their own
measures for classifying households on
socio-economic criterion, and often lifestyle
criterion, such as Hindustan Unilevers
Living Standard Measurement(LSM).
4. Divides households into 18 segments.
202
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Consumer Behaviour
Stratification.
2.0 6. Social Stratification & Marketing
Strategy.
a. Positioning is used as a strategy by
External coming out with different products for
Influences the various social class segments.
b. Levis has different products for the
various classes.
c. Samsonite has launched its American
Tourister Brand to meet the
requirements of Tier 2 and Tier 3
segments.
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Consumer Behaviour
Stratification.
Strategy.
External d. CK Prahalads bottom of the pyramid
Influences approach can also be used to target
different classes.
e. Companies resort to distributed
manufacturing to cut down costs of
transport. E.g. HUL
204
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Consumer Behaviour
Stratification.
Strategy.
f. New strategies need to be formulated to
External
Influences meet the needs of the different classes,
taking into consideration :
Demography
Cultural changes
Education
Buyer behaviour etc.
205
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Consumer Behaviour
2.4 The Changing Society-SubCultures.
2.0
External
Influences Subcultures.
206
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Consumer Behaviour
2.0 1. The Nature of Subcultures.

2. Regional Sub cultures
External 3. Rural-Urban divide in India
Influences 4. Ethnic subcultures in the USA.
5. African Americans.
6. Hispanics
7. Asian Americans
8. Native Americans
9. Religious subcultures
207
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Consumer Behaviour
2.0 Introduction:
The National Capital Region around Delhi
accounts for a third of auto sales in the
External country as well as eating out, and other
lifestyle related goods & services
Influences The southern region follows Dravidian
cultural norms
The eastern region is wet, rainy, with a large
part being mountainous also accounts for a
large part of tribal population in India
India has seen the co-existence of all major
religions of the world over many centuries.
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Consumer Behaviour
2.0 Introduction:
With immense diversity, making sense of
cultural scenario in India requires micro-
External segmenting homogenous sub groups of
Influences people with similar norms, unique from
others, yet a part of the Indian holistic
culture.
The American society has numerous sub
cultures-an array of racial, ethnic,
nationality, religious & regional groups or
sub cultures
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Consumer Behaviour

A subculture is a segment of a larger
External culture whose members share
Influences distinguishing values & patterns of
behaviour.
The degree to which an individual
behaves in a manner unique to a sub
culture depends on the extent to which the
individual identifies with that subculture
210
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Consumer Behaviour

Identification with a Sub culture produces
External unique Market Behaviour:
Influences Identification Core culture Mass market
with core values & behaviours
culture norms
Individuals
Identification Subculture
Unique market
with a values &
behaviours
subculture norms
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Consumer Behaviour
India got divided:

External
Ancestral North Indians
Influences
Ancestral South Indians
In terms of ethnic groupings, India represents

diversity far greater than most continents.
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Consumer Behaviour
2.4 The Changing Society-Sub Cultures.
2.0 1.The Nature of Subcultures.

India may also be described in terms of the
cultural groups, with distinct sub groups
External based religions & faith, social background,
Influences their residence in urban or rural areas, their
linguistic traditions & linkages & their social
customs.
America traditionally been viewed as a
melting pot or a soup bowl.
Inflow of immigrants from various countries
213
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Consumer Behaviour
The base American culture was vast enough

External
that new immigrants did not change the flavor
Influences
of the mixture to any noticeable extent.
America better described as a salad-each
sub-culture retaining its own unique identity.
Each sub culture may influence different
aspects of lifestyle.
214
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Consumer Behaviour
Attitudes towards new & imported products

External
are strongly influenced by the regional sub
Influences
culture.
Marketers adapt different aspects of the

marketing mix depending on the sub cultures
& their resultant behaviours.
215
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Consumer Behaviour
2.0 2. Regional Sub-cultures:

1. Distinct regional sub-cultures arise as a
result of climatic conditions, the natural
External environment & resources, the characteristics
Influences of the various immigrant groups that have
settled in each region & significant social &
political events.
2. They present numerous opportunities &
challenges for marketers.
216
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Consumer Behaviour
3. Social codes governed the lives of people.

External
Influences
4. Influence of religious thought and practices.
5. Influence of art and religion in parallel,

probably contributed to the complex society
of the day.
217
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Consumer Behaviour

6. People developed unique cultural
characteristics.
External
7. All the above played a role in building a
Influences
complex set of behaviours exhibiting both
differences and similarities in individual and
household consumption across regions.
8. Each state has developed economically,
around its historical and political evolution,
its trade, commerce, natural resources,
urbanization and industralisation.
218
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Consumer Behaviour
2.0 3. The Urban-Rural divide in India

In India over two thirds of the population
lives in the rural areas.
External Consumption patterns differs between urban
Influences and rural households depending on :
Occupation
Education
Beliefs & Values
Income
Family structure & size
Materialism etc.
21
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Consumer Behaviour

Rapid changes in literacy rates especially
makes it necessary to make informed
External strategy choices about offerings.
Influences Growth in sales of motorcycles & white
goods more in the rural areas than in
urban.
The norms and code imposed by religion,
caste, occupation, income etc. are
followed much more elaborately & rigidly
in the Rural.
22
0
J.Parthasarathy
Consumer Behaviour

More traditional, conformist &
External
conservative in their value orientation.
Influences Availability of electricity in rural
households-not available everywhere
Mobile service providers
Mosquito-fast card sales instead of
liquidators.
22
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Consumer Behaviour

Religious Subcultures
India is a secular country as per its constitution.
Cultural differences emerge from religious
External differences.
Influences Due to their strong influence on consumption in
India, social norms and traditions are a matter of
study for Marketing strategy.
Most sales in India happen during the festival
season which is usually the second half of the
financial year. i.e. Oct-March.
This includes clothing & apparel, durables,
furnishing, precious metals etc.
22
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Consumer Behaviour

Conclusion
External Religious sub-cultures have an effect on
Influences consumption patterns and it is therefore
important to study the behaviour and
consumption patterns of the different sub-
cultures and then formulate a Marketing
strategy.
22
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Consumer Behaviour
2.5 Families & Households as part of Society.
2.0
External Families
Influences &
Households as
Part of Society
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Consumer Behaviour
2.0
1. The Nature and Influence of
External Households on Consumption.
Influences 2. The Household Life Cycle.
3. Family Decision Making.
4. Consumer Socialisation
5. Marketing to Children.
225
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Consumer Behaviour
2.0 Introduction
External 1. The Kids market is large and growing,

Influences and taking some amazing turns when it
comes to high-end luxury.
Spending crosses numerous categories,
including food, apparel, toys & video
games.
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Consumer Behaviour
2.0 Introduction
External 2. Top spending categories are apparel &

Influences entertainment products such as toys,
video games, books, etc.
3. Childrens influence on purchases is

strong for 60% of mothers, strongest for
video games & weakest for apparel.
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2.0 Introduction
External 4. Gender does not influence amount spent

Influences except in two cases apparel for girls &
video games for boys
5. Brands are important in some

categories, but style & look were
important in all categories
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Consumer Behaviour
2.0 Introduction
6. Marketers look at three benefits :
a) Revenues earned
External
Influences b) Building loyalty that can be leveraged in
the future
c) Added revenue from moms who come
into the stores with their children & end
up shopping for themselves as well
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Consumer Behaviour
2.0 The Nature and Influence of Households

on Consumption.
The Influence of Households
External 1. The household is the basic consumption
Influences unit for most consumer goods.
2. Major items such as housing,
automobiles & appliances are consumed
more by household units than by
individuals.
3. Often it is a joint decision of several
members.
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on Consumption.
The Influence of Households
External
Influences
4. It is essential that marketers understand the
household as a consumption unit.
5. Households are important not only for their

direct role in the consumption process but
also for the critical role they perform in
socializing children.
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on Consumption.
External The Influence of Households.
Influences 6. The family household is the primary
mechanism whereby cultural &
subcultural values & behavior patterns
are passed on to the next generation.
7. Purchasing & consumption patterns are
among those attitudes & skills strongly
influenced by the family household unit.
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Consumer Behaviour
2.0 The Household influences most

consumption decisions
External Structure of
Influences household unit
Stage of Household
household life purchase & Marketing
cycle consumption strategy
behaviour
Household
decision process
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Consumer Behaviour

on Consumption.
External Types of Households:
Influences In India, households are defined as those
individuals who share a census house &
eat from a common kitchen
Three types of families:
1. Joint
2. Nuclear
3. Single member families
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Consumer Behaviour
2.0 The Nature and Influence of Households on

Consumption.
Types of Households:
External The average Indian household size is five
Influences members
The rural household is larger than the average
urban household
Rural : 6 to 8 members
Urban: 4 members
Micro household : One or two members is
growing
235
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Consumer Behaviour
2.0 Family Decision Making
External
Influences
236
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Consumer Behaviour
2.0 2. The Household Life Cycle.

A. Single
B. Young Couples: No children
C. Full Nest: Young Married with children
External D. Young Single Parents
Influences E. Middle Aged-Single
F. Middle Aged-Married with no children
G. Older Married with young children
H. Middle aged married with children at home.
I. Middle aged single with children at home
J. Older married couples
K. Empty Nest-Older Married couples
L. Older Single.
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Consumer Behaviour
2.0 3. Family Decision Making.

1. Family decision making is the process by which
decisions that directly or indirectly involve two
External or more family members are made.
Influences 2. Decision making by a family group differs in
many ways from decisions made by an
individual. E,g Decision on BF cereals,
3. A parent typically makes the actual purchase-but
the decision is taken by whom?
Children, other parent or a combination?
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Consumer Behaviour

4. Many family purchases are inherently
emotional and affect the relationships
External
between the family members.E.g Buying a
Influences
toy, new school clothes-symbol of love &
commitment.
5. The decision to take the family to a
restaurant for a meal or to purchase a new
Television has emotional meaning to the
other family members.
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Consumer Behaviour

Individuals play various roles for different
decisions:
External 1. Initiator
Influences 2. Information gatherer
3. Influencer
4. Decision Maker
5. Purchaser
6. User
Marketers must determine who in the family
plays which role.
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Consumer Behaviour

Family decision making has been
External categorized as :
Influences Husband Dominant
Wife Dominant
Joint or
Individualised
241
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Consumer Behaviour
2.0 4. Consumer Socialisation
Consumer Socialisation is the process by which

External young people acquire skills, knowledge, and
Influences attitudes relevant to their functioning as
consumers in the marketplace.
The Content of Consumer Socialisation

Consumer Skills.
Consumption Related Preferences.
Consumption Related Attitudes.
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Consumer Behaviour

Consumer Skills.
External
Influences Consumer skills are those capabilities necessary
for purchases to occur such as
understanding money, budgeting, product
evaluation, and so forth.
A child has to learn how to shop, how to
compare similar brands, how to budget
available income, etc.
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Consumer Behaviour

External
Influences Consumption Related Preferences.
Consumer Related Preferences are the
knowledge, attitudes and values that cause
people to attach differential evaluations to
products, brands, and retail outlets.
e.g. Parents teach their children on the choice of
brands.
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Consumer Behaviour

Consumption Related Attitudes.
External Consumption Related attitudes are cognitive and
Influences affective orientations toward marketplace stimuli
such as advertisements,salespeople,warranties etc.
E.g. Children may learn from their parents or
other family members that
You get what you pay for". A strong
price-quality relationship
Sales people are not trustworthy
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The Process of Consumer Socialisation
Family is a primary source of Consumer
External Socialisation.
Influences Children cite parents as the most important
influence regarding the kinds of foods they eat.
Parents teach their children consumer skills,
consumption related preferences, and consumption
related attitudes.
Done casually or deliberately through Instrumental
Training, Modeling and Mediation.
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External Instrumental Training
Influences Occurs when a parent or sibling specifically
and directly attempts to bring about certain
responses through reasoning or reinforcement.
E.g Parent may try directly to teach a child
which snack foods should be consumed by
explicitly discussing nutrition, establish rules
etc.
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Modeling
Occurs when a child learns appropriate, or
External inappropriate consumption behaviours by observing
Influences others.
Occurs without direct instruction from the role
model and frequently without conscious thought or
effort on the part of the child.
Modeling is an extremely important way for
children to learn relevant skills, knowledge and
attitudes.
Children learn both positive and negative
consumption patterns through Modeling.
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Mediation
External
Influences Occurs when a parent alters a childs initial
interpretation of, or response to, a Marketing or
other stimulus.
E.g. An advertisement and the communication

intended by the advertiser.
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2.0 5. Marketing to Children.
External Children are a large and growing market.

Influences Brand loyalties developed at this age may
produce returns for many years.
However, marketing to children is fraught

with ethical concerns.
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Consumer Behaviour
2.0 5. Marketing to Children.
External Marketing activities like advertising may

Influences produce undesirable values in children, result
in inappropriate diets, and cause unhealthy
levels of family conflict.
Many firms target children or families with

young children by forming Kids clubs.
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2.6 Group Influences on Consumer Behaviour
2.0
External Group Influences

Influences On
Consumer Behaviour
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Consumer Behaviour
2.0 1. Introduction
2. Types of Groups.
3. Consumption Sub Cultures.
External
4. Reference Group Influences on the
Influences
consumption process.
5. Communications within Groups and
Opinion Leadership.
6. Situations in which WOM and Opinion
Leadership Occur.
7. Diffusion of Innovations.
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Consumer Behaviour
2.0 1.0 Introduction

1. For various purchases, consumers buy
membership into a Group as well. E,g. Jeep,
Enfield etc.
External
Influences 2. The Jeep brand has a long tradition of
fostering a community spirit.
3. Jeep creates events for enthusiasts and venues

where members contribute, thereby fostering a
sense of Community.
4. Group memberships and identity are very
important. They conform to Group expectations
most of the time.
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2.0 2.0 Types of Groups

A Group is defined as two or more
individuals who share a set of norms,
External values or beliefs and have certain
Influences implicitly or explicitly defined
relationships to one another such that their
behaviours are interdependent.
A Reference Group is a Group whose
presumed perspectives or values are being
used by an individual as the basis for his
or her current behaviour.
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Most of us belong to a no. of different groups.
We generally use one group as our primary
External point of reference in any given situation.
Influences Groups may be classified according to a no.
of variables.
Four criteria:
Membership
Strength of social tie.
Type of contact.
Attraction.
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Membership
Each member decides on their
External membership.
Influences Strength of social tie.
Primary Groups, such as family &
friends, involve strong ties & frequent
interaction-wield considerable influence.
Secondary Groups, such as professional
& neighbourhood associations, involve
weaker ties & less frequent interaction.
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External Type of contact.

Influences Direct or Indirect. E.g. Internet
Attraction.
Individuals frequently purchase products
thought to be used by a desired group in
order to achieve actual or symbolic
membership in the group.
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2.0 3.0 Consumption Sub Cultures

Consumption sub culture is a distinctive sub
group of society that self selects on the basis of
External
a shared commitment to a particular product
Influences
class, Brand, or consumption activity.
These groups have :
An identifiable, hierarchial social structure.
A set of shared beliefs or values.
Unique jargon, rituals & modes of symbolic
expression.
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They are Reference Groups for their members as
well as those who aspire to join or avoid them. E.g .
External Star Trek.
Influences Sneakers.
Golfers.
Cycling etc.
Marketers can and should attempt to use the most
respected members of a consumption sub culture as
a means for identifying trends & influencing
consumers in the mass market.
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Brand Communities
Brand community is a non geographically bound
External community, based on a structured set of social
Influences relationships among owners of a Brand and the
psychological relationship they have with the Brand
itself, the product in use, and the Firm.
Marketing & Brand Communities.
Brand Communities can add value to the ownership
of the product & build intense loyalty.
E.G Jeep
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Online Communities & Social Networks.
An Online community is a community that
External interacts over time around a topic of interest
Influences on the internet.
Patterns of communication indicate a group
structure.
More experienced members serve as experts
and leaders and newer members seek advice
& information.
E.g. Social Network sites
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Online communities and social networks are
External
Influences attractive for a no. of reasons :
Consumer use is high & rising.
Consumers share information including
information about Brands & Products.
Customer acquisition potential seems
high-thro Twitter & Facebook.
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A few general guiding principles have emerged in
External the utilization of Social media by Marketers:
Influences 1. The first guiding principle is to be
transparent.
2. The second principle is to be a part of the
community.
3. The third principle is to take advantage of
the unique capabilities of each venue.
E.g You tube channel, Like on Facebook etc.
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2.0 4.0 Reference Group Influences on the

Consumption Process.
The Nature of Reference Group Influence
External Reference Group influence can take three
Influences forms:
1. Informational
2. Normative &
3. Identification.
It is important to distinguish these types since
Marketing Strategies depend on the type of
influence involved.
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External
Influences Reference Group influence can take three
forms:
1. Informational
Informational Influence occurs when an
individual uses the behaviours & opinions of
Reference Group members as potentially useful
bits of information.
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External Reference Group influence can take three forms:
Influences 2. Normative
Also referred to as Utilitarian influence, occurs
when an individual fulfils group expectations to
gain a direct reward or to avoid a sanction.
3. Identification.
Also called Value-expressive influence, occurs when
individuals have internalized the groups values &
Norms.
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The Degree of Group Influence
External Depends on :
Influences 1. Visibility of Product or Brand.
2. Necessity of an item.
3. Commitment an individual feels to a group.
4. Activity of the group.
5. The individuals confidence in the purchase
situation.
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2.0 4.0 Reference Group Influences on the Consumption

Process.
Marketing strategies based on Reference Group
Influences
External Marketers must first determine the degree &
Influences nature of the reference group influence that
exists, or can be created, for the product in
question.
Personal Sales strategies.
Personal Sales is used to influence a group. This
is done by first influencing one group member
and then using this person as a model, and by
social group pressure on the last person, the
sales person gets all or most of the people in the
group to agree.
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2.0 5.0 Communications within Groups and

Opinion Leadership.
Word of Mouth ( WOM)
External Involves individuals sharing information with
Influences other individuals in a verbal form, including
face to face, phone & the internet.
Consumers generally trust the opinions of
people (Family, friends, acquaintances) more
than Marketing communications, because
unlike Marketing Comm, these personal
sources have no reason not to express their
true opinions & feelings.
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2.0 5.0 Communications within Groups and Opinion

Leadership.
WOM can have a critical influence on Consumer
External decisions and Business success.
Influences It is estimated that two thirds of all consumer
product decisions are influenced by WOM.
Dissatisfied consumers tell twice as many people
about their experience than do satisfied consumers.
Companies may consider strategies for Delighting
consumers or otherwise creating positive emotional
experiences that consumers are motivated to pass
along in the form of positive WOM.
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2.0 6.0 Situations in which WOM and Opinion

Leadership Occur.
External
Opinion leaders have higher levels of exposure to
Influences relevant media than do non-opinion leaders.
Opinion Leaders filter information and pass on to
the other members of the group.
Opinion leadership functions primarily through
interpersonal communications & observations.
Identifying and targeting Opinion Leaders is
important.
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2.0 6.0 Situations in which WOM and

Opinion Leadership Occur.
External
Influences
Market Mavens are individuals who
are market influencers and who have
information about many different kinds
of products, places to shop & other
aspects of the market.
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2.0 7.0 Diffusion of Innovations.
An Innovation is an idea, practice or product

External perceived to be new by the relevant individual
or group.
Influences
The manner by which a new product is
accepted or spreads through a market is
basically a group phenomenon.
Individuals go through the Adoption process
when purchasing an innovation.
1. Awareness 2. Interest
3. Evaluation 4. Trial
5. Adoption
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Diffusion Process
The Diffusion process is the manner in which
External Innovations spread throughout a market.
Influences
Factors affecting the spread of Innovations:
1. Type of Group 2. Type of Decision

3. Marketing effort 4. Fulfilment of Felt Need.
5. Compatibility 6. Relative advantage
7. Complexity 8. Observability
9. Trialability 10. Perceived Risk
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Marketing Strategies and the Diffusion Process
Firms should consider a Moving Target market
External approach.
They should focus on individuals likely to be
Influences
innovators & early adoptors.
Messages to this group to emphasise the newness
and innovative characteristics of the product.
Marketing communications to focus on this
knowledgeable group.
After the new product has gained acceptance, the
message themes to focus on proven performance
record.
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Thank you!
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Consumer Behaviour Assignment

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Consumer Behaviour

The field of Consumer Behaviour is the study

Consumer Behaviour is a study of how individuals

1. Consumer Behaviour & Marketing Strategy

4. Consumer Decision Process

6. Consumer Behaviour & Marketing Regulation

1. Introduction-Changing world of Consumers

& 2. Retailers face the challenges &

1. Introduction-Changing world of Consumers

1. Introduction-Changing world of Consumers

1. Introduction-Changing world of Consumers

1. Introduction-Changing world of Consumers

1.0 9. The study of Consumer Behaviour involves

1. Introduction-Changing world of Consumers

Marketing 13. We need to know how people make

1. Introduction-Changing world of Consumers

Cause socially desirable behaviour.

1. Introduction-Key Aspects of Consumer Behaviour

1. Introduction-Key Aspects of Consumer Behaviour

1. Introduction-Key Aspects of Consumer Behaviour

& 4. Marketing Practices designed to

1. Introduction-Key Aspects of Consumer Behaviour

Marketing What they think about possible

What attitudes they have about our products

1. Introduction-Emergence of Marketing Concept

1. Introduction-Emergence of Marketing Concept

Thisled to the birth of the study of Consumer

1. Introduction-Emergence of Marketing Concept

1. Introduction-Emergence of Marketing Concept

1. Introduction-Emergence of Marketing Concept

1. Introduction-Applications of Consumer Behaviour

Marketing Decisions based on Explicit beliefs are more

Knowledge of Consumer Behaviour can be an

1. Introduction-Applications of Consumer Behaviour

1. Introduction-Applications of Consumer Behaviour

1. Introduction-Applications of Consumer Behaviour

It is important that consumers accurately

Marketing 3. Capabilities of current and future

All the above affect consumer needs &

& 2. The term Need Set is used to reflect the fact

4. Customer Needs: Not restricted to Product

7. Focussing first on needs and then on

3. To design an effective Marketing programme,

4. We need to understand the context in which

Product refers to physical products and

To be successful, a Product must meet the

Marketing 1. With whom exactly, do we want to

3. The firm can succeed only if consumers see

1. Introduction-The Nature of Consumer Behaviour

Marketing 2. These self concepts and lifestyles produce

1. Introduction-The Nature of Consumer Behaviour

1. Introduction-Consumer Behaviour in the Future

1. Introduction-Consumer Behaviour in the Future

Digital & technological advances help people

Consumers are exhibiting an increasing

1. Introduction-Consumer Behaviour in the Future

2.0 Marketing across cultural boundaries is a

2.0 Globalisation means more than Product

Today- Globalisation means mutual influence

2.0 Inthe same markets, cultures are not

External Younger generations appeal to be more

Consumers across the globe often hold strong

External Culture is the complex whole that includes

2. Thus Culture provides the framework within