Preface

I often ask my students what they think consumer behaviour and what goes on in their minds when they buy products
and brands. It should not be a difficult question since they have been consumers from the time they were born. With
more than twenty years of consuming experience, they should be able to answer the question well enough.
However, more often than not, they struggle for an answer. ‘What do you mean what goes on in our minds
when we buy Coke or coffee? Nothing goes on in there—we just buy it when we feel like it’, they say. However
that’s not true; many thoughts come into consumers’ mind as they go about choosing and buying stuff. Very often
we are unaware of why we begin to desire objects, and we can barely answer the question what makes us visit a shop
and select one brand out of the many that are displayed on a retailer’s shelf. Indeed, that is what makes the study of
consumer behaviour so difficult yet exciting.
The study of consumer behaviour involves understanding the thinking of people to determine the thrill of
discovering new products or a discount coupon, the joy of going out and shopping with friends, the satisfaction of
owning and displaying new things. This path takes us to study not only psychology but also a variety of other subjects
such as economics, society, family, culture, communication theories, ethics, and even anthropology. Anthropology?
Yes, indeed. A case study in the book shows how a study of anthropology helped Intel design a school computer!
With such a vast canvas, consumer behaviour is like a widescreen movie in which many activities or events
are going on at the same time. This book is a result of observing people buying a variety of products for years and
questioning them about them.

ABOUT THE BOOK

Though there are a number of books available on the subject of consumer behaviour, this book has been written considering
the many new developments in this exciting field. The era of the connected consumer has brought in tremendous change
in human behaviour, and the data analysis provides unimagined tools to companies to analyse this behaviour with
remarkable accuracy. In every chapter, these find a mention through numerous examples or exhibits. While Chapter 3,
Consumer Decision-making models, for instance, covers the online model consisting of consumer decision journey (CDJ),
modern consumer behavior has been described in detail in Chapter 16 on Online Buying Behaviour.
This book is a leap forward from the existing books available on the subject in many ways. First, it takes into
account the latest research on the subject—topics such as online consumer behaviour and use of data analytics are
arguably the future of this subject. Secondly, theory can be taught better if supported with adequate exhibits and case
studies. In every chapter, a large number of examples have been used to help build readers’ interest.
Third, the book is written from an Indian perspective. A detailed discussion on Indian market segmentation and
Indian culture describes Indian traditions providing an insight into the mind of an Indian consumer as opposed to
other books that may have American and European cases and examples.

PEDAGOGICAL FEATURES
Several pedagogical innovations have been used in the book. It would be correct to assume that students like to discuss
cases and examples of brands that they know of as opposed to the ones with hypothetical situations. Therefore, real-
life brands have been used and the questions are designed on them to interest and engage students. The large number
of cases and examples will make the book invaluable for classroom teaching. The key features of this book are as
follows:
Readable, authoritative, and comprehensive text The book has a style that is authoritative and easy to read.
Concepts have been explained point-wise and they are supported with numerous examples, which makes it more
comprehensible for students to understand.
 iv Preface

Indian and global perspective Though the book is written in the Indian context, examples and case studies from
other countries have also been included in the right measure, which add a global perspective to the book.
Theory and practical applications Much of consumer behaviour is theory, but care has been taken to add practical
orientations through real-life case studies. Readers will therefore be able to relate to the theories with actual
happenings in the world.
References from the respected journals Large number of papers and books has been cited while explaining
concepts for drawing on references. This is for students to get inspired to read more text on consumer behaviour.
Case studies The book encompasses 36 opening and closing case studies, discussing real-life examples. The
applications have been developed for the specific purpose of illustrating concepts. Teachers are suggested to use them
to enhance the learning process of the students.
Situations from real life ‘CB in Action’ boxes included in all chapters are mini research situations from real
life with a ‘What would you do?’ question. Instructors can use these exercises in class and involve students in fun
learning activities. These will stimulate students to think of solutions to real-life problems.
Insight boxes Apart from these, chapters also encompass insight boxes, which provide global, research, and ethical
issues. These can be used as discussion points in the class while offering students ideas for undertaking research.
Chapter-end exercises Concept-review questions, critical thinking questions, and a suggestive list of projects and
assignments have been included to help in classroom teaching. These exercises would encourage students to discuss
and review concepts and, undertake projects that will help them understand various consumer behaviour situations.

ONLINE RESOURCES
The following resources are available to support the faculty and students using this text:
For Faculty
• Instructor’s manual
• PowerPoint slides
For Students
• Flash cards

COVERAGE AND STRUCTURE

Though the book has been specifically developed from an Indian perspective, it also provides a global outlook of
consumer behaviour. Cases from India as well as other countries have been included to support the various concepts
in all the chapters. For instance, the chapter-end case study on Grameen Bank of Bangladesh in Chapter 12 on
Consumer Influence and Diffusion of Innovation provides a remarkable study on the way innovations spread through
social movements. Similarly, Celtel’s spread in Zambia; the chapter-end case study of Chapter 17 on Consumer
Engagement and Equity provides an idea to the reader about ways to create value in a competitive market through
loyalty and engagement.
The book has been divided into six parts.
Part I, Overview of Consumer Behaviour provides an outline of the subject including evolution of consumers,
consumer decision-making models, and how it is used in consumer analysis, segmentation, and strategy. A discussion
on study of the Indian population and market segments is a unique feature of this section.
This part explains in detail nature of business-to-business (B2B) buying behaviour and its difference with consumer
retail buying. This is supported with a case study on Rolls Royce highlighting B2B relationships and how sensors in
machines provide continuous data to manufacturers to help provide service before a fault is reported and another
showing the dark side of B2B selling behavior where pharmaceutical companies influence doctors to prescribe their
medicines, often unnecessary, just to increase their sales.
 Preface v

Part II, Consumer as an Individual is devoted to understanding the effect of personality, motivation, perception, and
attitude on the buying behaviour. It provides explanation on how brands impart personality to appeal to the target
audience and use a particular marketing approach to motivate consumers to purchase a certain product. This section
uses examples on the approach used by the liquor brands such as Absolut, Smirnoff, and Bacardi to give a personality
to their brands and match it with their target market to make it easier for students to understand the concepts. It
includes perception and neuroscience, which show that the human brain forms impressions even before a person is
aware of them. This section further explains how people learn to use products, efforts made by companies to teach
people to consume and understand their attitudes towards buying a product.
Part III, Influences on Consumer Behaviour offers insights into the influence of families, class, and culture on the consump-
tion behavior or purchase decisions of customers. It explains concepts using examples of Indian family, class, and culture.
Part IV, Modifying Consumer Behaviour, discusses innovations and innovative ideas/approaches companies
use in manufacturing, co-creation of new ideas and products by consumers and producers. It further discusses
strategies for designing marketing communications and messages to persuade consumers to try and purchase
products. The text supports these strategies with examples such as innovation strategy of P&G and creation of
brand Benetton with some of the most compelling images in advertising history.
Part V, Measuring and Analysing Consumer Behaviour elaborates discussion on the consumer research process and
approaches used by companies to build long-term loyalties with customers. It includes a case study on how Tommy
Hilfiger was able to improve its sales through market research.
Part VI, Modern Consumer explains online consumer behaviour and consumer engagement in times of exploding
social media usage in which the power of brands is shifting from companies to consumers. It covers in detail online
consumer behavior along with the future of shopping and omni-channel marketing. Though ethical insights form
parts of various chapters, a chapter on ethics and social responsibility looks at these issues in detail.
I hope the book engages readers in the same way that it engaged me while writing it. Like my earlier book,
Marketing Channels (OUP, 2012), I have kept the style readable and light. I hope you enjoy reading this book as well.
Any book can be improved through interaction with users. I therefore, eagerly look forward to receiving your
comments and suggestions at mmindchd@gmail.com for which I will be extremely grateful.

Dinesh Kumar
 Acknowledgements
Many people have helped me in writing this book and I would like to thank all of them.
I would like to thank Dr H. Chaturvedi, Director, Birla Institute of Management Technology (BIMTECH),
Greater Noida who encouraged and supported me when I started writing my books. It was at BIMTECH where I
worked as Associate Professor in 2009 that I started writing my first book, Marketing Channels (OUP, 2012). My
special thanks are due to Prof. N. N. Sharma, Associate Professor, India Centre for Public Policy (ICPP), BIMTECH
who encouraged me at every step. Since I had to shift to Chandigarh after a stint at BIMTECH, I miss the discussions
I had with him and my other colleagues.
I am grateful to all my colleagues who always had a word of encouragement for me. Special thanks are due to the
Dr Babita Dosajh, Associate Professor, Amity Global Business School, Chandigarh, a trusted friend and colleague,
who has always encouraged me in my work.
I would also like to thank to Mr Anmol Dar, Managing Director, Superbrands, for allowing us to reproduce ads
and visuals in our book.
I am extremely grateful to my family, Punam and Karan, who have been pillars of support in all my endeavours.

Dinesh Kumar
 Brief Contents
Preface iii
Detailed Contents ix
List of Exhibits and Case Studies xv
Features of the Book xviii

PART I: OVERVIEW OF CONSUMER BEHAVIOUR 1

1. Introduction to Consumer Behaviour 3
2. Consumer Analysis, Segmentation, and Strategy 27
3. Consumer Decision-making Models 63
4. Business-to-business Buying Behaviour 95

PART II: CONSUMER AS AN INDIVIDUAL 133

5. Personality and the Consumer 135
6. Consumer Motivation 178
7. Consumer Perception 211
8. Consumer Learning 261
9. Consumer Attitudes and Change 300

PART III: INFLUENCES ON CONSUMER BEHAVIOUR 339

10. Family and Social Class 341
11. Culture and Consumer Behaviour 375

PART IV: MODIFYING CONSUMER BEHAVIOUR 419

12. Consumer Influence and Diffusion of Innovation 421
13. Communications and Consumer Behaviour 465

PART V: MEASURING AND ANALYSING CONSUMER BEHAVIOUR 513

14. Consumer Research Process 515
15. Consumption and Post-purchase Behaviour 560

PART VI: MODERN CONSUMER 599

16. Online Buying Behaviour 601
17. Consumer Engagement and Equity 643
18. Ethics and Social Responsibility 674

Index 703
About the author 707
 Detailed Contents
Preface iii
Brief Contents vii
List of Exhibits and Case Studies xv
Features of the Book xviii

PART I: OVERVIEW OF CONSUMER BEHAVIOUR 1

1. Introduction to Consumer Behaviour 3 Microtargeting 55
Introduction 5 Mass Customization 55
Ubiquitous Consumer Culture 5 Towards a New Era 56
Consumer Behaviour 6
Emergence of Marketing Concept 8 3. Consumer Decision-making Models 63
Consumers and Society 10 Introduction 65
McDonaldization of Society 10 Levels of Consumer Decision-making 65
Aesthetic Attitude 11 Human Mind—A Black Box 66
Individualization and Self-expression 12 Economic Man 68
Enjoyable and Pleasurable 14 Consumer Decision-making Process 68
Customer Value and Satisfaction 15 Critique of the Economic Man 72
Consumption as a Basis of Existence 16 Analytical Models of Consumer Behaviour 72
Study of Irrational Behaviour 16 Nicosia Model 73
Limitations of Consumer Psychology 17 Howard–Sheth Model 76
Consumer Behaviour in Economic Engel–Blackwell–Miniard Model 79
Uncertainty 18 Evaluation of Models 82
Consumer Behaviour in the Future 21 Consumer Decision Journey 84
Prescriptive Cognitive Models 85
2. Consumer Analysis, Segmentation, and Theory of Reasoned Action 85
Strategy 27 Theory of Planned Behaviour 86
Introduction 29 Humanistic Models 87
De-massifying Markets 30 Theory of Trying 88
Market Segmentation 30 Goal-directed Behaviour 89
Need for Segmentation 33
Bases of Segmentation 34 4. Business-to-business Buying Behaviour 95
Geographic Segmentation 35 Introduction 97
Demographic Segmentation 36 Players in Business Market 98
Sociocultural Segmentation 37 Supply Chain Market 98
Psychographic or Lifestyle Segmentation 38 Business User Markets 98
Benefit Segmentation 40 Characteristics of B2B Markets 99
Psychological Segmentation 41 Differences Between B2B and B2C 101
Use-related Segmentation 42 Understanding B2B Transactions 103
Hybrid Segmentation 42 B2B Buying Drivers 103
Clustering Techniques 44 Types of B2B Products 105
Indian Market Segmentation 48 B2B Services 107
Criticism of Segmentation 51 B2B Purchase Process 107
Counter-segmentation 52 B2B Segments 108
Using Segmentation Effectively 53 Demographics 109
 x Detailed Contents

Operating Variables 109 Buying Situations and Buying Behaviour 116

Purchasing Approaches 110 Buying Situations 116
Situational Factors 110 Buying Centre 117
Buyers’ Personal Characteristics 111 Role of B2B Brands 118
Understanding B2B Buying Behaviour 112 Customer Satisfaction in B2B Markets 121
Individual Determinants 112 B2B E-Marketplace 122
Organizational Determinants 113 B2B Relationships 122
Institutional Buying 115 Managing B2B Relationships 124

PART II: CONSUMER AS AN INDIVIDUAL 133

5. Personality and the Consumer 135 Nature and Function of Goals 184
Introduction 136 Characteristics of Needs 184
Nature of Personality 137 Success and Failure Influence Goals 185
Theories of Personality 137 Maslow’s Hierarchy of Needs 185
Freudian Theory of Personality 138 Marketing Applications of
Neo-Freudian Theory 140 Need Hierarchy 186
Trait Theory 143 Product Design and Need Hierarchy 188
Personality and Consumer Behaviour 145 Self-Determination Theory 191
Consumer Personality and Brand Motives 192
Personality 146 Arousal of Motives 193
Consumer Innovativeness 146 Components of Motivation 194
Consumer Dogmatism 147 Discovering Motives 196
Social Character 148 Motivational Dimensions 196
Cognitive Personality Factors 150 Motivation Research 196
Materialism 150 Analytic Hierarchy Process 198
Fixation, Impulsive, and Compulsive Zaltman Metaphor Elicitation Technique 199
Consumption 151 Avatar-based Marketing 200
Consumer Ethnocentrism 152 Maximum Difference Scaling 203
Cosmopolitanism 153
Brand Personality 154 7. Consumer Perception 211
Brand Personification 154 Introduction 213
Advertising Elements 157 Perception 214
Anthropomorphism 158 Perception and Marketing 215
Product Personality and Gender 159 Advertising and Perception 215
Product Personality and Geography 162 Hedonic Consumption 216
Personality and Colour 163 Imagery in Marketing 217
Colour Differentiation 163 Sensory Marketing 220
Self and Self-Image 164 Vision 220
One or Multiple Selves 166 Smell 221
Extended Self 167 Touch 222
Altering the Self 167 Taste 222
Virtual Personality 169 Sound 223
Stages of Perception 224
6. Consumer Motivation 178 Exposure 224
Introduction 180 Methods to Increase Exposure 226
Consumer Motivation 181 Attention 227
Needs, Goals, and Motives 182 Perceptual Interpretation 228
 Detailed Contents xi

Perceptual Inference 230 Memory Stages 281

Semiotics 230 Sensory Store 281
Perceptual Distortion 231 Storage, Retention, and Retrieval 282
Perceptual Categorization 232 Cognitive Processes 283
Retention 234 Marketing Implications of Behavioural
Perception Levels 236 Learning 285
Weber’s Law 236 Shaping 285
Subliminal Perception 236 Habits 285
Brain Scanning 237 Repetition 286
Measuring Brain Activity 237 Dangers of Repetition 286
Mirror Neurons 240 Stimulus Generalization 288
How Customers Think 240 Stimulus Discrimination 291
Perceptual Organization 241 Measuring Learning 292
Gestalt Psychology 241 Brand Loyalty 293
Experiential Marketing 244
Individual Characteristics 244 9. Consumer Attitudes and Change 300
Situational Characteristics 245 Introduction 302
Altering Perceptions 245 Defining Attitude 302
Customer-perceived Value 246 Nature of Attitude 304
Customer Perception and Product Strategy 247 Functions of Attitudes 304
Perceptual Mapping 249 Applications in Marketing 305
Benefits of Perceptual Mapping 249 Models of Consumer Attitudes 305
Perceptual Mapping Methods 251 Tri-component Model of Attitudes 307
Measuring Brand Image 251 Multi-attribute Attitude Model 308
Theory of Reasoned Action 309
8. Consumer Learning 261 Attitude towards the Ad 310
Introduction 263 Attitude towards the Store 312
Consumer Learning 264 Theory of Trying to Consume 314
Nature of Learning 264 Theory of Planned Behaviour 314
Learning Process 265 Attitude Formation 314
Elements of Consumer Learning 266 Role of Experience 315
Getting Consumers Involved 267 Role of Personality 315
From Passive to Active Learning 268 Role of Society 315
Central and Peripheral Routes 270 Attitude and Behaviour 316
Behavioural Learning 272 Changing Attitudes 317
Classical Conditioning 272 Resolving Conflicting Attitudes 326
Instrumental or Operant Conditioning 274 Altering Attitude Components 327
Observational or Vicarious Learning 276 Changing Consumer Beliefs about
Cognitive Learning—Information Processing 278 Competitors 328

PART III: INFLUENCES ON CONSUMER BEHAVIOUR 339

10. Family and Social Class
Introduction 342
Role of Family 343
Functions of Family 344
Indian Family Structures 344
Changing Indian Family 345
Family Buying Behaviour in India
341 Decision-makers in the Family 346
Consumer Socialization 348
Reverse Socialization 349
Children as Consumers 350
Marketing to Youth 351
Marketing to Couples and Adults 352
346 Seniors Market 355
 xii Detailed Contents
Family Life Cycle 356
Family Decision-making 357
Social Class
Indian Social Class Segments 361
Status Consumption 363
Brand Awareness 363
Value Orientation 364
Measuring Social Class 364
Subjective Method 365
Reputational Method 365
Objective Method 365
Social Class Profiles
Geodemographic Clustering of
Markets 367
Benefits of Geodemographic Clusters
11. Culture and Consumer Behaviour
Introduction
Meaning of Culture
Characteristics of Culture 378
Interaction of Culture and Consumer
Behaviour 379
Hofstede’s Cultural Dimensions
Individualism 381
Power Distance 383
Masculinity 385
Uncertainty Avoidance 385
Long-term Orientation 385
Values
Terminal and Instrumental Values 386
Schwartz’s Model of Universal Human
Values 387
PART IV: MODIFYING CONSUMER BEHAVIOUR
12. Consumer Influence and Diffusion of
Innovation
Introduction
Innovation and its Sources 423
Need for Innovation 424
Importance of New Products 427
Types of Innovation
Firm-oriented Innovation 429
Market-oriented Innovation 429
Product-oriented Innovation 430
Service Innovation 431
Process Innovation 432
Disruptive Innovation 432
Innovation Value Chain
Indian Core Values 388
Indian Cultural and Value Dimensions 389
360 Individual and Family 390
Modernity Through Conformity 391
Success and Growth 391
Age and Youthfulness 392
Happiness and Adaptability 393
Religion and Spirituality 393
Rituals and Customs 394
Traditions 394
Languages 396
366 Symbols and Signs 397
Measuring Culture 398
Contradictions in Indian Culture 399
367 Demographics 399
Modernity vs Traditionalism 399
375 Bling vs Spirituality 400
377 Decency vs Obscenity 400
377 Violence vs Compassion 400
Cross-cultural Consumer Behaviour 402
Strategic Decisions 402
Products 403
380 Global Influences on Indian Consumers 404
Subcultural Influences 405
Country of Origin Effects 406
Age Subcultures 407
Geographic Subcultures 408
Religious Subcultures 408
386 Multinational Strategies 408
Global Strategy 409
Local Strategy 411
Glocal Strategy 411
419
Diffusion Process 434
421 Spread of Innovations 435
423 Product Characteristics 435
Social Characteristics 436
Characteristics of People 437
Adopter Categories 438
429 Importance of Critical Mass 440
Models of Innovation Diffusion 440
Reference Groups 442
Brand Communities 444
Social Movements 444
Tribes and Tribal Marketing 445
Making Brands ‘Cool’ 445
433 Kitty Parties 447
 Detailed Contents xiii

Aspiration Groups 448 Aida Model 471

Negative Reference Groups 448 Fogg’s Behaviour Model for Persuasive
Consumer Activism on the Internet 449 Design 472
Diffusion through Word of Mouth 449 Communications Strategy 473
Importance of Buzz 449 Understanding Customers 475
Social Networking 450 Customers are People 476
Guerrilla Marketing 451 Understanding Customer Scenarios 476
Viral Marketing 451 Integrating Customer Experience 479
Role of Opinion Leaders 451 Consumer Processing and Evaluation 480
Hurdles in Diffusion 452 Message Strategy 482
Crossing the Chasm 453 Elaboration Likelihood Model 483
Consumer Influence 455 Types of Messages 484
Four Gears Model 455 Message Appeals 487
Consumers as Innovators 456 Message as Art Form 491
Media Strategy 491
13. Communications and Consumer Types of Media 491
Behaviour 465 Fragmentation of Media 492
Introduction 467 Above- and Below-the-line
Marketing Communication 468 Campaigns 495
Semiotic System 468 WOM Techniques 498
Communication Models 469 Consumer Imagery and Brand Personality 500
Shannon–Weaver Model of Communications and Brand Srategy 500
Communication 469 Dealing with Negative Publicity 501

PART V: MEASURING AND ANALYSING CONSUMER BEHAVIOUR 513

14. Consumer Research Process 515 Quantitative Research 540
Introduction 518 Quantitative Data Collection
Importance of Consumer Research 518 Methods 540
Types of Consumer Research 520 Measurement Scales 541
Overview of the Consumer Research Process 523 Observation 545
Defining the Research Problem and Objectives of Surveys 546
Research 523 Experimentation 547
Developing a Research Plan 523 Modern Research 548
Searching for and Evaluating Secondary Data Mining 548
Data 524 Data Analytics 548
Designing a Primary Research Study 525 Real-time Experience Tracking 549
Sampling Methods 525 Advertising Analytics 550
Collecting Primary Data 527 Social Media Analysis 550
Analysing Data 528 Uses of Big Data 552
Presenting Findings 529 Limitations of Consumer Research 552
Qualitative Research 530
Discovering Hidden Needs 531 15. Consumption and Post-Purchase
Depth Interviews 535 Behaviour 560
Laddering 535 Introduction 562
Focus Groups 536 Types of Purchase Decisions 562
Projective Techniques 536 Purchase Continuum 563
Metaphor Analysis 539 Consumer Satisfaction 565
Mystery Shopping 540 Theories of Customer Satisfaction 566
 xiv Detailed Contents
Measuring Satisfaction 567
Satisfaction in Services—Servqual Model 567
Kano Model 568
Customer Satisfaction Index Models 569
Strategies for Satisfaction 570
Unhappy Customers and Decreasing
Satisfaction 571
Customer Loyalty
Integrated Experience across Touchpoints 573
PART VI: MODERN CONSUMER
16. Online Buying Behaviour
Introduction
Online Shopping in India 604
Composition of India’s E-Commerce 606
Understanding the Online Shopper
Age and Online Buying 607
Online Segmentation 607
Profile of the Online Shopper 608
Reasons for Buying Online 608
Reasons for Not Buying Online 609
Expectations of Online Shoppers 610
Media Consumption
Media Usage—Interactions During the
Purchase Process 612
Consumer Decision Journey 613
Framework for Online Consumer Behaviour 615
Consumer and Environmental
Characteristics 615
Product or Service Characteristics 616
Medium Characteristics 619
Online Merchants 620
Digital Value Creation—Infinite Possibility 621
Web Equity 623
Using Social Media 626
Social Behaviour of Consumers 626
Omnichannel Marketing 629
Building Customer Loyalty 629
Online Communities 630
Data Mining and Analytics 631
Transforming the Business
Future of Online Consumer Behaviour 633
17. Consumer Engagement and Equity
Introduction
Index 703
About the author 707
Enhancing Customer Experience 575
Benefits of Consumer Loyalty 575
Types of Loyalty 577
Measuring Loyalty 578
Loyalty Strategy 583
Reducing Customer Effort 584
Loyalty Programmes 586
573 Consumer Loyalty and Profits 588
E-loyalty 590
599
601 Evolving Consumer Behaviour 647
603 Era of Consumer Engagement 647
Rethinking the 4Ps 649
Customer Engagement 649
607 Enhancing Customer Experience 652
Brands Squeezed Dry 655
Becoming Customer-centric 655
Customer Engagement Value 657
Brand Engagement 658
Customer Equity Management 658
Customer Value 660
611
Customer Lifetime Value 661
Customer Referral Value 662
Building Customer Equity 664
Dialogue Marketing 665
18. Ethics and Social Responsibility 674
Introduction 676
Ethics 677
Pursuit of Low Prices and Ethical
Considerations 679
Ethical Issues in Marketing 680
Intended Consequences 682
Unintended Consequences 683
Ethical Consumption 686
Factors Impeding Ethical Consumption 687
Sins of Greenwashing 689
Globalization and Ethics 691
633 Consumer Protection 692
Corporate Social Responsibility—The Basis 693
Definition and Scope 694
643 Legal Provisions Relating to CSR in
645 India 695
 List of Exhibits and Case Studies
Chapter 1 Chapter 6
Case Study: Importance of Observing Consumers 3 Case Study: Handwashing—Motivating New
Case Study: Advertising and Behaviour 25 Habit Formation 178
Exhibit 6.1: Fulfilling Needs 182
Chapter 2 Exhibit 6.2: Creating an Image 189
Case Study: L’Oréal—Serving Many Segments 27 Exhibit 6.3: Using Emotions 199
Exhibit 2.1: Superbrands—Bata 32 Case Study: Repositioning Brands to Match Real
Exhibit 2.2: Geographic Segmentation by Dainik Motives 208
Bhaskar 36
Exhibit 2.3: Targeting Children 38 Chapter 7
Exhibit 2.4 : Status Bathroom 41 Case Study: Selling a Mean Machine 211
Exhibit 2.5: Modifying Products for Different Exhibit 7.1: Barbie—Changing Perceptions 214
Segments 56 Exhibit 7.2: Taj Hotels: More than a Luxury
Case Study: Putting Segmentation to Use 60 Brand 223
Exhibit 7.3: Umbrella Brands 233
Chapter 3 Case Study: Dilemma of Luxury Brands 257
Case Study: Nudging Consumers Towards
Choices 63 Chapter 8
Exhibit 3.1: Tanishq and the Consumer Decision- Case Study: Marketing a Stone 261
making Process 69 Exhibit 8.1: Educating Customers 267
Exhibit 3.2: Creating Need in the Market: Archies Exhibit 8.2: Good Knight’s Line Extensions 289
and Acquaguard 70 Case Study: Private Labels—The Growing Trend 298
Exhibit 3.3: Building Brand Loyalty 74
Chapter 9
Exhibit 3.4: Apollo Hospitals 78
Case Study: Creating Brandtopias 300
Case Study: Why Customers Hire Milkshakes 93
Exhibit 9.1: Blue Star: The Expert 303
Chapter 4 Exhibit 9.2: Measuring Attitudes towards Film
Case Study: Rolls-Royce: The Long Arm of B2B Stars 309
Relationships 95 Exhibit 9.3: Companies with a Cause 321
Exhibit 4.1: Steel Superbrands 119 Case Study: Wearing Your Attitude 333
Exhibit 4.2: Amadeus: Building a B2B Brand 121 Chapter 10
Case Study: Dark Side of B2B Selling Case Study: Tomorrow’s Customers Today 341
Behaviour 130 Exhibit 10.1: LIC for Senior Citizens 355
Case Study: Elusive Middle Class 371
Chapter 5
Case Study: Woodland: Creating an Outdoors Chapter 11
Personality 135 Case Study: Creating Madeleine Objects 375
Exhibit 5.1: Monte Carlo: Projecting a Young Exhibit 11.1: Time out 392
Brand 141 Exhibit 11.2: Star Network’s Strategy 403
Exhibit 5.2: Eurochamp: A Higher Calling 148 Case Study: Satisfying Needs or Encouraging
Exhibit 5.3: Superbrands—Brands and Racial Bias? 416
Personality 155
Exhibit 5.4: How Brands Try to Extend Gender Chapter 12
Usage 161 Case Study: P&G—Creativity of Edison and
Case Study: Getting High 175 Speed of Ford 421
 xvi List of Exhibits and Case Studies

Case Study: Spread of Social Movements— Chapter 15

Grameen Bank and BRAC 462 Case Study: Loyalty Beyond Reason 560
Exhibit 15.1: LIC Offers Integrated Experiences 574
Chapter 13 Case Study: Loyalty or Profits? 595
Case Study: Nokia’s Communication Strategy 465
Exhibit 13.1: Communication Strategy of Axe 477 Chapter 16
Exhibit 13.2: Message Appeals According to Case Study: Is Traditional Marketing Dead? 601
Ogilvy 487 Exhibit 16.1: Adding Tangibility to Online Trades 618
Exhibit 13.3: Cadbury’s—Handling Negative Case Study: How Online Behaviour Changes
Publicity 502 Everything 639
Case Study: Making of Brand Benetton 508 Chapter 17
Case Study: Future of Shopping 643
Chapter 14
Case Study: Optimizing Customer Equity at
Case Study: Tommy Hilfiger—Using Market
Celtel 670
Research for Higher Margins 515
Exhibit14.1: Using Ethnographic Research— Chapter 18
A PC for Students and Teachers 534 Case Study: Hunger Games 674
Case Study: Future of Market Research 557 Case Study: Rana Plaza Disaster 700
 Features of the Book
GLOBAL INSIGHT
Design, Aesthetics, and Products
Many companies have built their reputation and rev- Apple Steve Jobs hired
enues based on better design and have captured the set up the Apple industri
hearts of consumers
consumers. Some of these are described notoriously obsess
obsessed with

Boxed Exhibits here.

RESEARCH INSIGHT
company’s products
duc stan

Learning to Consume Green Products

Interesting exhibits as well as Marketing
Concerns about environment destruction are on the impulses. Consumers ar
Insights, Global Insights, Ethical rise all over the world, including India. All types of ing green products—attem
o ga at o s are
organizations a e co duct g ggreen
conducting ee ca pa g s Sc
campaigns. oo
School have
a e been
bee qu
quite
te meaning
Insights, and CB in Action have children are taught to be environmentally aware.
ETHICAL
Consumers areINSIGHT
exhorted to turn greener. It is hardly
Negative perceptions
erce C
perceptions abo
about green
been included in the chapters to help surprising then that people are becoming more aware
Advertisements and the Self-perception of products
Womensuch
ch as Toyota

students understand various marketing Advertising loves women. They are used in ads to the pressures implied
not only to catch the viewer’s attention but also to images become implica
strategies used by companies. personify brands by beautiful women. These ads, anorexia and bbulimia; a
called self-identity image ads, portray an image alcohol increas
increases among

CASE STUDY
Marketing a Stone
Marketing companies rely on techniques of consum- would fall because of th
er learning to sell a variety of products. Consumers tors in the diamond mine Case Studies
are taught
g to buyy and use new and innovative prod-
p control production
p and
cts through conditioning and to change attitudes
ucts scarcity of diamonds. In 36 case studies have been provided in the
CASE STUDY book to consolidate one’s understanding of
Dilemma of Luxury Brands the concepts discussed in the chapter.
, Rather, status was obt
originally published in 1899, sheds light on how wealth on display. Although
people use wealth and goods to bolster their social ue, Veblen recognized many
position in society. People strive for status and to because they were ‘a mark of

Then

Awareness

Familiarity

Consideration

Purchase

Figures/Images Loyalty

Numerous marketing communications FIG. 3.11 Consumer decision funnel

along with their explanations are

interspersed in the text to illustrate
approaches used by marketers.

FIG. 13.4 Are customers creatures

meant for stucking on magnets?

FIG. 10.1 Children use pester power to

■■■ ❘ KEY TERMS
16 personality factors model (16PF) Measures Consumer ethnocent
personality on 16 factors and captures individual and a resultant desire Key Terms
products and brands Key terms are provided at the end of every
description of personality Consumer fixation chapter to serve as a quick review guide of
Anthropomorphism becomes obsessed or
important topics covered in the chapter.
characteristics to non-human objects Consumer innovativen
Brand personality ed by new products
associated with a brand

■■■ ❘ Concept-review Questions

1. What is consumer motivation? Why is it important 7. Critically exami
in the study of consumer behaviour? will sell philosop
2. Distinguish between needs, goals, motives, and
desires. Show how these lead to drives that ultimatelyy themselves’. How

Chapter-end Exercises ❘ result in action.

■ ■ Critical
3 E l iThinking
M l ’ hiQuestions
h f d d h i
8. Explain ZMET
b d ii i
ZM a
Z

Each chapter provides concept-review Implementing systems for satisfying needs of B2B 2. Companies have to
buyers is hugely expensive, as in the case of Rolls-
questions, critical thinking questions, and Royce discussed in this chapter. Given the high cost underhand dealings. D
project assignments for classroom discussion of capital,
a ital, can companies really implement such
cap

❘ Projects
business in a corrupt
c
to enhance learning. ■ ■ ■ needs if theyand
do notAssignments
wish to take risks? limits?

1. Conduct a survey of your classmates. Ask them to list whether there is a

and consumption o
3. Study the awareness
India among your cl
targeted ads such a
personal choices.

C H A P T E R S I X T E E N

Online Buying Behaviour

Section on Modern Consumer

C H A P T E R S E V E N T E E N

Consumer Engagement Online consumer behavior, consumer

and Equity engagement, and future of shopping in
times of exploding social media usage
have been covered in detail.
C H A P T E R E I G H T E E N

Ethics and Social

Responsibility
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