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SMM 05: CONSUMER BEHAVIOUR AND MARKETING RESEARCH UNIT 1

AN INTRODUCTION TO CONSUMER BEHAVIOUR AS MARKETING DISCIPLINE:
The term ‘Consumer Behaviour’ can be defined as the behaviour that consumers display in searching for,
purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their
needs. The study of consumer behaviour is the study of how individuals make decision to spend their
available resources (money, time, efforts) on consumption related items. It includes the study of what they
buy, why they buy it, how they buy it, when they buy it, where they buy it, and how often they buy it. The
answers to these questions can be found through consumer research and provide the manufacturer with
important input for product scheduling, design modification, and promotional strategy.
In addition to studying consumer use and post purchase evaluation of the product they buy,
consumer researchers are also interested in how individuals dispose of their once-new purchases. The
answer to this question is important to marketers because they must match their production to the
frequency with which consumers buy replacements. But it is also important to society as a whole, because
solid waste disposal has become a major environmental problem that marketers must address in their
development of products and packaging.
As students of human behaviour, it is important for us to understand the internal and external
influences that impel individuals to act in certain consumption-related ways. Consumer behaviour is
simply a subset of the larger field of human behaviour. As marketers and future marketers, it is important
for us to recognize why and how individuals make their consumptions decisions so that we can make
better strategic marketing decisions. Without doubt, marketers who understand consumer behaviour have a
great competitive advantage in the market place.
CONSUMER BEHAVIOUR PRINCIPLES IN STRATEGIC MARKETING
There are numbers of reasons why the study of consumer behaviour developed as a separate
marketing discipline. Marketing scientists had long noted that consumers did not always act or react, as
economic theory would suggest. The size of consumer market in this country is vast and constantly
expanding. Consumer preferences are changing and becoming highly diversified. As marketing
researchers began to study the buying behaviour of consumers, they soon realized that despite overriding
similarities, consumers were not alike. Despite a sometimes “Me too” approach to fads and fashions, many
consumers rebelled at using the identical products everyone else used. Instead, they prefer differentiated
products that they feel reflect their own special needs, personalities, and life-styles.
To better meet the needs of specific groups of consumers, “enlighten” marketers developed the
policy of market segmentation, which called for the division of their total potential markets into smaller,
homogeneous segments for which they could design a specific product and / or promotional campaign.
They also used promotional techniques to vary that image of their products so that they were perceived as
better fulfilling the specific needs of certain groups of consumers--a process now known as positioning
In addition to the fast pace of new product introduction, other factors that contributed to the
development of consumers behaviour as a marketing discipline include shorter product life cycles,
environmental concerns, increased interests in consumers protection and public policy registration, the
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growth of services marketing and non-profit marketing, the growth of international markets, and the
development of computers and sophisticated method of statistical analysis.
CONSUMER ORIENTED VIEW OF MARKETING STRATEGY:
THE MARKETING CONCEPT
The philosophy that marketing strategies rely on better knowledge of the concept is known as the
marketing concept. The marketing concept states that marketers must first define the benefits consumers
seek in the marketplace and gear, marketing strategies accordingly. Acceptance of this concept has
provided the impetus for studying consumers’ behaviour in a marketing context.
First formulated in the early 1950s, the marketing concepts seem so logical today that
we may wonder why marketers did not turn to it sooner. There are two reasons. First, marketing
institutions were not sufficiently developed before 1950 to accept the marketing concept. Consumer
behaviour research was in infancy. Moreover, advertised and distributive facilities were more suited to the
mass production and mass-marketing strategies of that time. The implementation of the marketing concept
requires a diversity of facilities for promoting and distributing products that meet the needs of smaller and
more diverse market segments. This diversity in marketing institutions did not exist before 1950. Instead,
the emphasis was on economies of scale of production and marketing.
The second reason the marketing concept was not accepted until 1950s is that
prior to that time there was no economic necessity to do so. During the Depressions, there was little
purchasing power to spur an interest in the consumer behaviour. During World War-II and immediately
after, scarcities were prevalent. There was no competitive pressure to discover consumers’ motives or to
adjust product offerings to consumers needs. Manufactures could sell whatever they made. During 1953
this orientations changed. Different marketers brought out similar lines of products but now they found
consumers reluctant to buy. Consumers had become more selective in their purchasing habits. The
economy experienced its first true buyers’ market. For the first time, supply exceeded demand, and
inventories built up in the face of consumer purchasing power.
Some marketers reacted by intensifying the old strategies: pushing the
existing line, heightening the selling efforts, repeating selling themes, and pushing excess inventories on
unwilling distributors and dealers. Others reacted with more foresight by recognizing the right
combination of product benefits would influence reluctant consumers to purchase. These manufacturers
researched the market to identify the consumers’ needs and to develop products to fit those needs. This
newer approach resulted in an expanding set of product offerings. It also caused advertising strategy to
shift from the repetitive campaigns designed to maintain brand awareness to more creative, diverse
campaigns designed to communicate product benefits. Marketers began talking in behavioural terms. In
this new context, a product must be positioned to deliver a set of benefits to a defined segment of
consumers. Advertisings’ goals are to communicate symbols and images that show how the brand delivers
these benefits, to create a favourable attitude toward the brand, and to induce trial. Advertising is also
intended to reinforce the consumers’ choices to influence them to re-purchase.
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There are two broad approaches to the study of consumer behaviour. A

managerial approach views consumers’ behaviour as an applied social science. It is studied as an adjunct
to a basis for developing marketing strategies, a holistic approach views consumer behaviour as a pure
rather than applied social science. In this view, consumer behaviour is a legitimate focus of inquiry in an
of itself without necessarily being applied to marketing although it may appear that the first view has the
most credence for marketers, in reality, a holistic approach also provides a useful perspective to strategy in
many cases.
The growing sophistication of consumers combined with such factors as changing
social mores and increasingly aggressive competition dictate that an ongoing effort at “knowing the
consumer” is no longer a casual matter. Even a local independent retailer often cannot adequately
characterize its key competitor. Everyone has expectations as to how people would act under various
circumstances, and most people even engage in predicting the behaviour of those in whom they have an
interest. Of course, these behavioural propositions are not used only for predicting behaviour; they also
can be used as an aid to the planning of actions.
The fact that an understanding of consumer behaviour must start with a fundamental
appreciation of consumer actions on a micro level. Therefore, in a very real sense, to expect even a limited
success in coming to understand consumer behaviour at this stage, each student must consciously decide to
be more observant of his or her own behavioural patterns as well as those of others. This must be done
while keeping in mind not to make broad generalizations. Consumers combined with such factors as
changing social mores and increasingly aggressive competition dictate that an ongoing effort at “knowing
the consumer” is no longer a casual matter. Even a local independent retailer often cannot adequately
characterize its key competitor. Everyone has expectations as to how people would act under various
circumstances, and most people even engage in predicting the behaviour of those in whom they have an
interest. Of course, these behavioural propositions are not used only for predicting behaviour; they also
can be used as an aid to the planning of actions.

Although consumer behaviour is complex, the identification of a few basic relationships that
capture the essence of modern social science theory can serve to introduce the subject. Further more, since
consumer behaviour is a part of all human behaviour, any theory of consumer behaviour must be
consistent with what is basic to human behaviour.
Lewin offers a conceptual view that summarizes the essence of contemporary
thinking and portrays human behaviour as the result of the interaction among components of what is
viewed as one’s life space. This can be represented as follows

B = f (life space)
Or stated another way,
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B = f (P, E).
The life space consists of the total “facts” that psychologically exist for an individual at a given moment.
The life space is really the totality of individuals’ world as he or she perceives it, and in such a context, a
thing exists only if it has demonsratable effects upon behaviour.
In the latter formula, (B) represents behaviour, (f) function, (P) person, and (E) environment. This
expression states that an individuals’ behaviour is the result of the interaction between the individual and
his or her environment. The behaviour that is being referred to is broad and involves all human actions,
including buying behaviours. The (P) person in the formula is composed of at least two distinct
dimensions. One is heredity; that is, to a large extent individuals are genetically determined entities. Some
physical characteristics that may set very real limits on one’s activities are inherited and cannot be altered.
However, at birth humans also begin to acquire information and, thus, learning is another major dimension
of the (P) person in the Lewin’s model. The (E) environment component recognizes the influence of both
the near physical and social settings on behaviour.
The life space has also been called a person’s psychological field. Lewinian
formula offers another means of conceptualising what it is that shapes human behaviour.

Environment

Man in the present

Past (Needs and Drives) Future

Fig 1.1: A Person’s Psychological Field

As figure 1.1 indicates, a person is moved by basic needs that are internal and exist largely apart from his
environment. In this sense, man is similar to many animals. However, as a human being he has a
considerable capacity to call upon past experiences and observations as well as to anticipate the future. In
addition, man as a social being is profoundly influenced by the other people and, of course, is affected by
the physical environment, as are other forms of life.
By perceiving a person as being subject to compound and sometimes-
conflicting motivational determinants, it is possible to recognize the complexity of the forces underlying
behaviour. Each individual must adapt to his unique psychological field, and to him, this field is reality.
He will establish forms of behaviour that permit a workable and meaningful pattern of adaptation to his
perception of the world. Despite individual weakness and the complexity of the forces that affect people,
and orderly study of human behaviour is possible.
CONSUMER ANALYSIS IN MARKETING:
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Marketing thought has undergone dramatic changes because of the post World War-II infusion of
behavioural science concepts, and many of the earliest views of buyer behaviour have had to yield to new
information. As a result, contemporary thought is a blend of old and the new. It is helpful to discuss both
the traditional viewpoint, because of its historical contributions, and the more recent modifications.
At an early date there were two separate and distinct groups interested in consumer
behaviour: (i) Marketing practitioners and (ii) Social scientists. Each group had dissimilar orientations to
the subject, used different means to study, and sought results that were consistent with their separate
perspectives. Figure-1.2 identifies the variation just described.
The early marketing practitioners were essentially pragmatic in their study. They
most often focused in variables that had a high degree of face validity in their predictive capacity. For
instance, there was generally little disagreement with the proposition that favourable attitudes and selected
demographic characteristics influenced buyer behaviour. Studies were initiated to demonstrate such
relationships and to use these results to predict behaviour as well as to aid in strategy development. These
studies were not ordinarily tied to any conceptual framework, but were more or less carried on in serial
fashion--one after another as a problem arouse.

Marketing
Practitioners Social Scientists

Human Behaviour

Consumer Behaviour

Focus of Analysis Focus of Analysis

- Attitudes - Diffusion on
- Personality Innovations
- Demography - Mass persuasion

Result Sought

- Facilitate the prediction - Further level of knowledge

of behaviour about this special case of
human behaviour
- Aid in strategy development
- Theory validation
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Fig-1.2: Early Orientation in Studying Consumer behaviour

The works of Engel, Kollat, and Blackwell; Howard and Seth; And Nicosia are the exemplary
contributions in the theory of consumer behaviour. These represent specific attempts at identifying all the
significant variables that shape consumer action and the inter relationships among these factors. These
works are truly unique accomplishments and have made several note-worthy contributions.
1. They have brought to light the limitations of the attempt to transplant various behavioural
theories developed in other disciplines such as Psychology and Sociology without appropriate
modification.
2. Through persistent efforts to formulate comprehensive theories, consumer analysts have gained
much self-confidence. Although considerable works remains, there is a feeling of having made
some progress.
3. This development process in an applied discipline such as consumer behaviour has also fostered a
demand for comprehensive theory that is grounded in reality-based upon realistic assumptions
and verifiable propositions.

CONSUMER (BUYING) DECISION PROCESS:

Prior to discussing the integrative—comprehensive models of consumer behaviour, it is

necessary to consider the evaluative processes of the behavioural sciences, focusing on the distributive
approach and the decision-process approach.

DISTRIBUTIVE APPROACH:
Empirical research on consumer behaviour historically has utilized the distributive approach.
Consequently, consumer behaviour has been conceptualised and studied as an act rather than a process or
series of interrelated acts. Researchers utilizing this approach attempt to determine the relationship
between the outcome of consumer decision-making and a variety of independent variables such as income,
social class, race, and marital status.
ADVANTAGES OF THE DISTRIBUTIVE APPROACH

The Distributive approach has been frequently used because it has many advantages.
The major advantage is that research utilizing this strategy is relatively simple and typically less expensive
than other alternatives. Further more, it has been very useful in those instances where the independent
variables under the study are highly correlated with the purchase of the product. The Distributive approach
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has proven to be somewhat useful in estimating marketing potential and in making media selection
decisions.
LIMITATIONS OF THE DISTRIBUTIVE APPROACH:
There are also a number of limitations inherent in the Distributive approach. The foremost difficulty is that
these approaches can, at best, provide only a partial or incomplete explanation of consumer behaviour.
Consumer analysts now agree that the act of buying a particular product is only a fraction of the relevant
consumption behaviour: that is, it is important to recognize that the decision to purchase a specific product
is preceded by some pattern of conscious and sub-conscious actions that are a part of decision making.
Unless purchase acts are related to theses broader processes—and they seldom are –both the decision and
the correlates of the decision may be misleading in the sense that they may be true only if certain mixture
of pre-decision process takes place. Further more, the Distributive approach does not provide the
marketing manager with any insight into why the relationship between an independent variable and
purchase decisions exists. Because this approach fails to provide information on the sequence of events
culminating ion a purchase act, it is of limited value in developing effective marketing strategies or in
evaluating existing business practices in terms of their relationship to consumer needs.

DECISION—PROCESS APPROACH:

The Decision-process approach to the study of consumer behaviour focuses on the

means by which consuming units reach a purchase decision. The configuration of this decision process
consist of five processes linked in a sequence (i) Problem Recognition, (ii) Alternative Evaluation-internal
search, (iii) Alternative Evaluation-external search, (iv) Purchase, and (v) Outcomes. This
conceptualisation describes the behavioural process that are operative from the time the consumer
recognizes that some decision is necessary to the point at which there is some post-purchase evaluation of
the particular purchase.

ADVANTAGE OF THE DECISION—PROCESS APPROACH:

The Decision—Process approach has some distinct advantages over the distributive
approach. This approach, as the name implies, views consumer behaviour as a process and is as concerned
how a decision is reached as it is with the decision itself. Furthermore, the decision approach involves a
sequence of processes, including the steps that generally precede the decision, the decision itself, and the
course of action that follows the decisions. This approach is a more extended and elaborate means of
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studying consumer behaviour than is the distributive approach; therefore, it can ordinarily provide the
marketing manager with more relevant information. The identification of various stages of consumer
decision making and the factors that influence at each stage can contribute to the development of more
effective marketing strategies and appropriate public policy for regulation of business practices.

LIMITATIONS TO THE DECISION—PROCESS APPROACH:

There are numbers of limitations associated with these approaches to studying consumer
behaviour. In particular, the fact that the decision process approach is a relatively recent development
means that less empirical research has been conducted using this perspective than researchers would like.
Furthermore, the research that has been done from the Decision-process approach has revealed a
considerable amount of variation among consumers in their decision-making behaviour. Another difficulty
is that very little research has included more than a one phase of decision process, and therefore, little is
known about the relationship among the phases or the influence of one phase on another. Despite the fact
that there are number of problems involved in conceptualisation and study of consumer behaviour from
the decision-process approach, it is increasingly recognized that the advantages outweigh the limitations.
INTEGRATIVE–COMPREHENSIVE MODELS OF CONSUMER BEHAVIOUR:
With the emergence of consumer behaviour as a subject for intensive studying in its own right, researchers
and practitioners realized the need for an integrative-comprehensive model. Each of these models attempts
to represent the essential qualities of consumer behaviour.
HOWARD-SHETH MODEL:
John Howard proposed the first truly integrative model of buyer behaviour in 1963. Howard’s model was
based on a systematic and thorough utilization of learning theory. Perhaps the most important contribution
of Howard’s model was the distinction drawn between extensive problem solving, limited problem
solving, and automatic response behaviour. This model drew attention to the need for an inter-disciplinary
approach to clarification of the conceptual basis for such a model and to the need for extensive
development of practical implications of buyer behaviour models.
The Howard –Sheth model consists of four sets of constructs of variables (i) input variables, (ii)
output variables,(iii)hypothetical constructs, and (iv)exogenous variables. Each of the variables includes in
the model and the hypothesized linkage is described in Howard and Sheth’s book The Theory Of Buyer
Behaviour. Howard and Sheth contend that when a buyer is interested in purchasing something, he
actively seeks information from his commercial and social environment. The buyer’s perceptual processes
limit the information received and modify it so that it is consistent with his own frame of reference. In
addition to the process of searching for information, the buyer draws from his learning constructs, such as
attitudes and motives. The choice criteria the buyer has developed enable him to choose a brand that has
the greatest potential for satisfying his motives. When a buyer’s experiences with a brand are satisfactory,
the evaluation of it increases and the likelihood of his purchasing that brand of product increases. If the
buyer repeats the decision a number of times, routinised purchase behaviour develops. Whether or not a
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person actually buys a given alternative brand, however, is a function of the comprehension of brand
attributes, attitude toward the brand, confidence in the purchase, and individual intention. Furthermore, the
exogenous variables help explain individual differences to such factors as financial status, time pressure,
and social class.
The great strength of this model lies in the fact that a multiplicity of variables are linked in a precise way.
The relationships hypothesized in the model at times approach the rigour of fully developed theory. The
work of Howard and Sheth has stimulated and enriched the thinking and research of nearly every student
of consumer behaviour.
Despite its many contributions, a number of weaknesses are evident in the model. First, the distinction
drawn between hypothetical and measurable variables introduces unnecessary complexity. The empirical
research undertaken for the purposes of validation has indicated the need for modifications and extensions
of the model. In addition, some variables that were originally included were found not to be related as
hypothesized, while others not specified should have been included. In conclusion, it is fair to say that the
empirical research seems to provide considerable support for the model generally, but it has demonstrated
the need for extensive revision.
ENGEL, BLACKWELL, AND KOLLAT’S CONSUMER DECISION PROCESS MODEL :
The Consumer Decision Process model which serves an integrative and organizational function is the third
version of a model developed by Engel, Blackwell, and Kollat. This Consumer decision process model is
not an end in itself; rather is a means to facilitate understanding of a very complex phenomenon. The
model has the following criteria.
(i) The model conforms well to the rules of logic.
(ii) The model is internally consistent.
(iii) The model encompasses relevant theories.
(iv) The model can be empirically operationalised.
(v) The model serves as a basis to derive new models.
(vi) The model is consistent with existing model.
(vii) The model suggests new directions for research.
Following figure 1.3 summarizes the situatio

Problem recognition

Search

Alternative evaluation

Choice
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Outcomes

Fig: 1.3 The Stages in the Consumer Decision Process

The consumer decision process model is organized around five interrelated decision-process stages: (i)
Problem Recognition, (ii) Search, (iii) Alternative Evaluation, (iv) Choice, (v) Outcomes.
These phases are affected by internalised environmental influences, general motivating
influences, product/brand evaluation and information processing.
PROBLEM RECOGNITION
Problem recognition occurs when an individual perceives a difference between an ideal state of
affairs and the actual state of any given moment. The simplified depiction of problem recognition in figure
1.4 indicates that there are two basic sources of problem recognition: (i) Motive activation, (ii) External
stimuli.
Problem recognition can be activated by a number of factors, which tend to fall into one of these
categories. Problem recognition can be activated solely by motive activation without any type of external
stimulation. Motives are enduring predisposition to strive to attain specific goals, and they contain both an
arousing and a directing dimension. Motive activation causes the individual to become alert, responsive,
and vigilant because of the feelings of discomfort produced. The result is the formation of a consciously
felt drive that energizes motive satisfying behaviour.

Problem
recognition

External Motives
Information & experience
Stimuli

Fig 1.4 Problem Recognition

Problem recognition can also be activated by external stimuli. Technically, external stimuli
affects new information and experience that trigger motive and, in turn, motive activates problem
recognition. Fig1.4 demonstrates this.
However, not every perceived discrepancy between actual and ideal will result in problem
recognition. There is a minimum level of perceived difference that must be surpassed before recognition
occurs. The level of perceived difference that is necessary for problem recognition to result will vary
among consumers and circumstances
SEARCH
Once a problem is recognized and no constraints intervene to halt the decision
Problem
STIMULI recognition

- Mass
- Personal
- General Information & Search
- Marketer Experience
dominated
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Fig1.5 The Search Process

process, the consumer must then assess the alternatives for action. Initially the consumer will search
internally to determine whether or not sufficient information is available to make a purchase decision. If
the internal search and the alternative evaluation process reveals that alternatives have been well defined
and a satisfactory one can be identified, the remaining stages of the decision process will be circumvented,
and a purchase decision will be made. This type of response to problem recognition is referred to as
routinized behaviour. If the internal search does not prove to be sufficient, external search is activated. The
process is illustrated in the figure 1.5. While only stored information and experience are depicted in this
simplified diagram, several other variables such as attitudes, beliefs, and personality also have impact on
consumer.
Internal search for information occurs instanteously and largely
unconsciously. In many instances, this search is insufficient to permit the consumer to make a decision.
Consumers differ significantly in their willingness and desire to search for purchase related information.
These differences exist because some people are cautious and unwilling to act even after careful
evaluation of alternatives because of the perceived implications of a wrong decision, whereas others are
willing act largely on hunch and intuition. While there are numerous factors affecting an individual’s
willingness to search for information, researchers generally maintain that consumers search for
information as long as the benefit of search exceeds the cost of the search.
INFORMATION PROCESSING:
Information processing refers to the process by which sensory inputs are transformed, reduced, elaborated,
store, recovered, and used by the consumer. Research has established unequivocally that consumers are
highly selective in the way they process information. In fact, the information loss and distortion can be so
substantial that there is very little similarity between the actual content of the message and the content as
perceived and retained by the consumer. Information loss and distortion occur as new information is
passed through active memory. Active memory refers to that portion of consumer’s memory, which is
used in processing and interpretation incoming information. That is, active memory as depicted in the
following figure 1.6, is a type of filter that controls the flow of information.

Stimuli Exposure A
C
T
Mass I
Personal V Information & experience
General Attention E
Marketer- M
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Dominated E
Reception M
O
R
Y
Fig 1.6 Information Processing

Information processing begins with exposure, at which time the individual is in physical
proximity to an informational stimulus such that there is opportunity for one or more senses to be
activated. This makes the obvious point that the marketer’s first task is to get the intended message to the
right person at the right point of time.
Attention is defined as the active processing of an exposed stimulus such that a
conscious impression is made within the active memory. Attention is highly selective, however, and many
stimuli are completely filtered out. The key fact is whether or not the stimulus has pertinence for that
individual. Attention is a necessary but not a sufficient precondition for message reception—the accurate
comprehension of the meaning of the stimulus and storage of that information in long-term memory. The
filtering effect of active memory can distort meaning in such a way that some things are amplified whereas
others are diminished or ignored. Not every correctly comprehended message enters into permanent
memory, because there also is a tendency to retain only those, which are compatible with our present
beliefs. The final stage of information processing as shown in fig1.6 is new information or experience,
which enters into permanent storage. Obviously, it can affect all other things stored within memory and
bring about changes. In the context of consumer behaviour, however, the greatest changes will be in
product beliefs and attitudes, intention to purchase, and in actual purchase behaviour. The marketer’s real
difficulty is to design messages that do not activate the filter in such a way that it prevents further
processing or distorts the inputs.

ALTERNATIVE EVALUATION:

The information that the consumer processes can exert an influence on four key variables within
the central processing unit: (i) Evaluating criteria, (ii) Beliefs, (iii) Attitudes, and (iv) Intentions
Evaluative criteria are the internalise specifications and standards used by consumers to assess
and compare alternative products. They are the desired outcomes from choice and use expressed in the
form of specifications used to evaluate alternatives. Evaluative criteria are concrete, product specific
manifestations of underlying personal goals, typically applied across several products within a product
type. Several factors must be kept in mind when considering these evaluative criteria, which are shaped by
an individuals personality, stored information, social influence, and marketing efforts of firms. These
criteria change over time and consequently the evaluative criteria related to any product must be carefully
monitored.
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Beliefs represent information that links a product or brand to evaluative criteria. Whereas
evaluative criteria are highly individualized and, therefore, rather resistant to marketer influence, beliefs
can normally be influenced by the marketer with little difficulty.

Attitude can be defined as a learned predisposition to respond consistently in a favourable or

unfavourable manner with respect to a given alternative. The alternative choice with the highest rating
summed across the evaluative criteria has the greatest probability of being purchased and consumed when
a corresponding need exist. Attitudes stand as one of the most analysed phenomena in general human
behaviour.

Intention refers to subjective probability that a specified action will be undertaken in a particular
instance. Thus, it has been concluded that a change in attitude is necessary, but not sufficient, condition for
change in intention. The change in intention than leads to a change in behaviour, unless it is inhibited by
an environmental factor. Two environmental influences that have a particularly pronounced effect on
intentions are normative compliance and anticipated circumstances. Normative compliance refers to the
existence of perceived social influence on choice plus the motivation to comply with that influence. The
sensitivity to comply with social influence is determined by the individual’s personality make-up.
Personality is normally considered to be the consistent pattern of responses to environmental stimuli. The
term life-style, frequently used interchangbly with personality, refers to the pattern of enduring traits,
activities, interests, and opinions which determines general behaviour and thereby makes one individual
distinctive in comparison with another.
CHOICE AND ITS OUTCOMES:
The complete model of consumer behaviour integrates the portions of the model previously
discussed. Furthermore, it depicts choice and outcomes, the last two stages of decision-making process.
Choice generally follows the formation of a purchase intention but perceived unanticipated circumstances
can serve as a barrier to such intention. Examples of unanticipated circumstances are: changes in income,
changes in family circumstances, and non-availability of alternatives. In the event that an intended
behaviour is thwarted, the intention either remains in existence until a later time or the decision-making
process begins anew. The choice process includes the selection of the particular retail outlet at which
product is purchased as well as those activities associated with determining the conditions of sales.
The decision to purchase a product or service can result in two types of outcomes:
satisfaction and dissonance. If the customer’s post-purchase evaluation indicates that the chosen
alternative is consistent with prior beliefs and attitudes, the resultant outcome is satisfaction. .
A purchase decision can also produce post-decision dissonance. Post-decision dissonance is a
state of doubt motivated by awareness that although one alternative was chosen, the alternatives not
chosen also have desirable attributes. Dissonance is especially likely to occur if the purchase is financially
burdensome and several attractive alternatives were rejected. The purchaser now might be sensitive to the
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information that confirms the choice and thereby relives doubt. Therefore, post decision search for
information is not unusual in such circumstances.

VARIATIONS IN CONSUMER DECISION PROCESSES: The consumer decision process describe in

the preceding pages is the most comprehensive type of decision-making. However, most consumer
decision-making is not this complex. Indeed, the most common type of consumer decision making—the
habitual or routine decision process—is at the opposite extreme. Consumers tend to rationalize their
decision making as much as possible to reduce the complexity in their lives. In the case of routinised
decision process behaviour, problem recognition will lead directly to a purchase intention and then to a
purchase. The consumers’ beliefs and attitudes are fixed in the form of brand loyalty, thus simplifying
substantially the decision process. In a sense, extended problem solving and routine behaviour lie at
opposite ends of a continuum. In between is limited decision process behaviour, which occurs when there
is good information about the domain of feasible alternatives but insufficient information about each to
permit a sound decision.
POST- PURCHASE BEHAVIOUR
The managerial implications of the outcomes of consumer choice are apparent. The marketing analyst
must regularly monitor consumer’s evaluation of the product to be certain that the product continues to
receive favourable evaluation on evaluative criteria, beliefs, and attitudes.
If the evaluation of choice results in complete dissatisfaction being transmitted to
long-term memory, two types of outcomes can result. First, the consumer can discontinue this type of
purchase behaviour. Discontinuance of purchase behaviour can result when the current solution is
unsatisfactory and no other acceptable solution is available. The second type of out come that can result is
a change in purchase behaviour. The consumer might continue his or her search for a satisfactory solution
in other locations, re-evaluate the alternative solutions, or redefine the problem to increase the likelihood
of locating satisfactory solution.
If the feedback to the consumer’s long-term memory is partial satisfaction, the outcome might be
(1) discontinuance of purchase behaviour; (2) continuance of purchase behaviour but with some
reservations; or (3) modification of purchase behaviour. If partial satisfaction was experienced with
respect to the solution of a one-time problem, the purchase behaviour will, of course, be discontinued. A
consumer might be only partially satisfied and yet continue the same purchase behaviour because the
product is an inconsequential one or because the best available alternative is presently being used. A post-
purchase evaluation that results in partial satisfaction for the consumer may cause a modification in
purchase behaviour. The modification can result from a change in the consumer’s problem recognition or
from the alternatives available to the consumer. Post-purchase evaluation that result in partial satisfaction
or dissatisfaction present particularly appealing opportunities to marketing analysts.
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Questions for Discussion

“The distinction drawn between the distributive approach and the decision approach is interesting to the
academician but is unimportant to the marketing strategists”. Comment.
1. Discuss the stages of the decision process, the variations that occur in the decision process, and
the underlying determinants of these variations.
2. Comment on the following quotation: “The decision-process model can explain deliberate, well-
thought out consumer decision making but cannot explain impulse purchases.”
3. Most successful small business owners have never taken a course in consumer behaviour nor
formally studied the subject. How can this be true?
4. How might the decision-process approach help the manufacturer of high quality stereo equipment
understand how and why consumers purchase his or her product?

UNIT-2

CULTURAL AND SOCIAL FACTORS OF CONSUMER BEHAVIOUR:

Environmental influences—culture, social class, groups, family--substantially affect consumer behaviour.

These environmental variables not only influence specific consumer choice but also determine the nature
of an individual in ways that influence all decision of that individual.
CULTURAL INFLUENCES
The shared values of large groups of people influence the means used to satisfy human needs. These
values vary substantially among some cultural groupings whereas only inconsequential differences exist
among others. The values and influence of smaller groups within the large culture have been less apparent
and less well understood. Nevertheless, these groups, frequently called subcultures, affect consumer
decision-making.
The Nature Of culture:
In simplest terms, culture serves an adaptive function; that is, it is a means of helping an individual adapt
or cope with the world. A significant part of the importance of culture stems from the influence it has on
people’s perceptions, attitudes, and values. This leads to the realization that human decision making is
greatly affected by the culture in which it operates.
The term “culture” is used to mean the complex set of variables, ideas, attitudes, and
other meaningful symbols created by humans to shape behaviour and the artifacts of the behaviour that are
transmitted from one generation to the next. Three things should be noted about this definition. First,
culture does not refer to instinctive human responses, such as eating when you are hungry. Nor does it
include the inventiveness that takes form as one time solution to problems. Second, this definition reflects
a contemporary view of culture that emphasizes the integrative and learning function of culture. This
definition also stresses the communicative aspect of culture through time, that is, the process of passing on
values, beliefs, and artefacts from one generation to the next. Thus, culture can be viewed as the means
and methods of coping with environment that are shared by a large group of people and that are passed
 16

from one generation to another. This sharing and then passing on is the result of finding effective means of
dealing with common problems and circumstances.

Culture includes both abstract and material elements. Abstract elements are the values, attitudes,
ideas, and personality types, as well as the various combinations of these, such as religion, that can be used
to characterize a large group of people. These abstract characteristics are learned overtime and are
transmitted to succeeding generations. Material elements refer to those objects that are employed by a
large group of people in meeting their various needs. As a result, in an advanced society, these take on
many different forms.

The word society refers to a collection of individuals who share a particular set of symbols and
conduct their inter-personal and collective behaviour according to the prescriptions of that group of
people. “A culture is a way of life while a society is made up of people who live by its dictates”.

The process of absorbing or learning the culture in which one is raised is called enculturation or
socialization. Acculturation refers specifically to the learning of another of another culture or sub-culture
different from the one in which the person was raised. The social units with which an individual has most
regular and intimate contact include the family, the prayer institution, and educational institutions; these
social units have the greatest influences on culture values absorbed throughout life. The influence of all
other social units is “filtered” by members of the family in the early years of the typical individual. Other
human groups, particularly reference groups are also important transmitters of culture. These groups filter
and modify the values of the broader culture to make them consistent with their group values.

Basic Characteristics of Culture

Some people believe that the essence of marketing focuses on culture and society because they
perceive marketing as the delivery of a standard of living. Certainly those who characterize marketing in
this way must be very interested in consumer behaviour. Only through studying the consumer’s interests
and decision-making processes can appropriate goods and services be delivered.

The notion that culture is an important determinant of behaviour has caused consumer analysts to
examine the fundamental characteristics of culture in order to discover more about its dynamics. Five
distinct characteristics, or dimensions, can be identified and described to facilitate understanding culture
and its effect on consumer behaviour: (1) culture is learned; (2) culture is inculcated; (3) culture is a social
phenomenon; (4) culture is gratifying; and (5) culture is adaptive.

CULTURE IS LEARNED:
 17

Consumer behaviour is learned; it is not instinctive. Culture provides the consumer with a
framework to recognize a set of stimuli and a set of responses appropriate to those stimuli. For example,
consumers are not born with the idea that a particular type of food product will satisfy their hunger; they
learn it from their culture. Cultural values learned early in life tend to resist change more strongly than
those learned late in life. Fundamental values refer to the ultimate reasons people have for acting as they
do; these are intangible and deal with basic aims, aspirations, and ideals. For example, self-oriented values
include the right to life and the pursuit of happiness, physical and mental well-being, self-sufficiency, and
the right to endeavour to shape one’s own life. Once learned and accepted, these values resist change. The
appropriate strategy for deeply ingrained, culturally determined preferences. It is commonly recognized
that, although family and other social groups contribute most to the socialization process, marketing also
can have significant impact on this process.

CULTURE IS INCULCATED.
To say that culture is inculcated is simply to say that culture is transmitted from generation to
generation. This process is performed mainly by the immediate family, but other groups and institutions
also contribute to it. Ethnic, educational, and religious institutions all participate in the passing on the
values, customs, and artefacts from one generation to next. For example some religions prohibit the
consumption of certain products and these prohibitions have a direct impact on the marketing of these
products. The values, norms, and behavioural patterns transmitted are generally idealised. There is ,
however, considerable disparity between the idealised norm and the norm that is observed in practice.
Thus, parents as a rule instil the importance of adhering to laws (idealised norm), yet the same parents may
jaywalk, exceed the speed limit, or do some thing wrong. Minor violations of cultural values are permitted,
expected, and, occasionally, encouraged, whereas major violations are perceived negatively and are
subject to punishment, such as imprisonment.
In a consumer behaviour context, such deviations may be less dramatic but,
nevertheless, are important to analysts. Consider the example of a parent who stresses the importance of
the performance features of a product, like a stereo, a then obviously buys one because it has a good-
looking cabinet. The emphasis on performance characteristics (the idealised norm) is generally more
acceptable to society, but this is often not the basis for making a particular purchase decision.

CULTURE IS A SOCIAL PHENOMENON

Cultural values, habits, and patterns of behaviour are shared by the people living in a particular
society. The values consumers have and the consumption behaviour they express are group properties;
they are not distinctive to individual consumer. Culture has an effect on all values and behavioural patterns
but particularly on those that are basic to social life, such as how to get along with others, the type of food
to eat, how to dress, and how to earn a living. The systematic study of culture requires that the marketing
 18

strategists focus on groups or segments. Indeed, marketing strategy must be based on assumptions about
large numbers of consumers representing sizable market segments. Thus, planning and directing of
marketing operations must be based on similarities of behaviour that often result from culturally
determined variables.

CULTURE IS GRATTIFYING

The basic function of culture is to satisfy the needs of the people adhering to its dictates. Only
those values, habits, and behavioural patterns that satisfy human needs will be continued through time.
Elements within a culture that cease to gratify needs usually become extinguished, at least in the long run.
The notion that culture reinforces some responses serves as the basis for marketing decision-making.
Strategist must recognise that the advertising used and the products offered for sale must focus on
satisfying needs that society approves.

CULTURE IS ADAPTIVE

As indicated previously, culture is passed from generation to generation; yet this does not imply
that culture is static or endowed with eternal life. Rather, culture adapts to the environment in which it
operates and with which it has contact. In the past, culture change was unbelievably slow. More recently,
however, vastly accelerated technological changes and the amazing capabilities of communication are
reflected in comparatively rapid cultural adaptation, particularly among the developed nations.

SUB-CULTURE

A culture represents a loose agreement on the values, behaviour patterns, and symbols it upholds.
There are, however, smaller groups within the larger society that have modified these ways of dealing with
the environment and with persons enough to be at variants with the general living patterns. These smaller
groups are referred to as Sub culture. More specifically, sub-culture influences refer to the norms and
values of sub groups within the larger or national culture. Individual consumers may be influenced only
slightly by membership in specific sub-groups or the sub-groups may be the dominant force on the
personality and life style of the consumer.

Some products may be favoured specifically by the persons in a particular sub-culture. However,
because sufficient similarities exist among various sub cultures, many products are commonly accepted.
The appeals of fast food counters demonstrates this kind of general acceptance. Among sub cultures there
are a number of points of commonness that permit grouping of identifiable characteristics. Four types of
sub cultures are described below: Nationality, Religious, Geography, and Ethnic.
 19

NATIONALITY SUB CULTURES

Nearly every metropolitan area has within its boundaries groups that are relatively homogeneous
and often distinctive products and/or consumption patterns become associated with the residents. Many
times the media, primarily the newspapers, develop programmes for the markets.

RELIGIOUS SUB CULTURES

Religious sub cultures may exert considerable influence on those members who choose to
conform closely to group norms. It is obvious from some examples that certain sub cultural beliefs and
values actually restrict the market for a number of products. Many conditions can cause the influence of
the sub culture to decline. Increased mobility, education, and income provide challenges to traditional
activities and affect behaviour. However, the basic values of a sub culture may continue to have an
influence on decision making for some time.

GEOGRAPHIC SUB CULTURES

Sub cultures develop within different geographic areas of a nation. The climate and religious and
nationality influences may be highly interrogated with geographic influences. The proper understanding of
the geographic characteristics may help the marketers to understand the consumer behaviour of different
geographic areas.

ETHNIC SUB CULTURES

The four type of sub culture is based on ethnic or racial differences and is given a more extended
analysis because of its importance in modern times. Ethnic sub cultures have been the focus of numerous
research efforts in recent years. The understanding of the differences among different ethnic groups will
help in more effective market segmentation and formulation of advertising policy. Different ethnic groups
reacts differently to a common object. In India, politicians are taking advantage of this type of
segmentations.

SOCIAL CLASS AND GROUP INFLUENCE

People generally tend to associate with those whom they consider to be like themselves.
Frequently, they have similar occupation and levels of formal education and likely to live in comparable
circumstances. Under such arrangements, fundamental values and viewpoints about life are shared. There
 20

is a particular social consciousness associated with these shared characteristics and a social status attached
to them. A hierarchy among status groups has developed because some are regarded as having more social
prestige and are, therefore, superior to the others.

Historically, sociologists have been particularly interested in the phenomenon of social structure
for its own sake. Consumer analysts, on the other hand, have become attentive to social stratification
because it can significantly influence consumer behaviour.
Social classes are relatively permanent and homogenous division in a society into which
individuals or families sharing similar values, life-styles, interests, and behaviour can be categorised. Of
course, it is much easier to provide such a definition than it is to operationalize it. There are no absolute
boundaries separating social classes; consequently, there has been considerable disagreement as to where
one class ends and another begins. Social classes are multidimensional, hierarchical structures that tend to
restrict the behaviour of members of a particular social class. There is, a number of variables—power,
prestige, influence, wealth, and income—combine to create a social class. Social class is not the same as
income, although it is often treated as such. Furthermore, people tend to rank, frequently on an intuitive
basis without reference to specific people, the various strata or social groupings. This ranking into
relatively homogenous groupings tend to restrict the behaviour of the individuals within each social class.

SOCIAL CLASS DETERMINANTS

Social classes take shape through what have been called determinants—those characteristics that
differentiate the members of one social class from another. Although there are a number of ways that can
be used to determine a person’s social class, there is considerable similarity among the various
approaches. One of the more helpful approaches follows. It concentrates on five dimensions of social
class. These five include occupation, personal performance, personal interactions, possessions, and value
orientation
 21

Occupation: Many believe that an individual’s occupation is the best single clue to his or her social
class membership. This appears to be true because a person’s life’s work has a substantial
influence on the way he or she lives.

Personal Performance: An individual achievement is also related to social class status. Ordinarily that is
concerned with occupational accomplishments, but it may involve non-job performance as well.
These latter accomplishments include service to various community groups or even superior
family role performance. Some social and community organisations demand a great deal of
time and usually pay no salary to their members, but each position offers considerable public
visibility and attention. Consequently, people active in community service develop the
behavioural pattern expected to them by the public. These influences are of interest to the
consumer analysts because they may affect purchasing patterns—first, among the individuals
who hold these positions and then, more important, among those who use public figures as
reference.

Possession: Personal possessions are often used as indicators of social status. Veblen’s theory of
conspicuous consumption draws specific attention to the practice of some people who engage in buying to
verify their newly acquired wealth. However, while possessions are necessary conditions for class
membership, they are not sufficient. Further, the importance of possessions relates not only to amount of
possessions that an individual has but also the nature of his or her choice.

Value Orientation: Fundamental values are interpreted and applied differently; consequently the value
orientations of individuals are important determinants of social class. The members of a social class tend
to share a common set of abstract convictions that organise and relate many specific values, and therefore,
it is intuitively appealing that social class should substantially affect consumption behaviour. For example,
identifiable differences in beliefs among members of different social classes about family formation, child
rearing, the home, and work affect market behaviour and may even provide a basis for market
segmentation. Several of these differences have their impact on marketing strategy development.

MEASUREMENT OF SOCIAL CLASS

Several methods have been developed for measuring social class. The three principal methods are
(1) Reputational, (2) Subjective, and (3) Objective. In considering these methods, it is important to
remember that the marketer’s primary reason for measuring social class is to identify market segments that
manifest similar consumption behaviour.

The reputational method basically considers a social class as a social group characterised by
common modes of thinking and member interaction. People are ranked into social classes by having
 22

individuals within a particular community group the people they know into various classes. While this
method is useful in predicting social interaction in small and moderate sized communities, the variability
in people’s perception of different social classes limits its usefulness, particularly in large cities.

Subjective methods of determining social classes ask respondents to rate themselves on social
class. Such methods have been used on occasions but are of limited use for consumer analysts for two
reasons: ( 1 ) respondents tend to overrate their own class position and ( 2 ) respondents avoid the
connotative terms ‘upper” and “lower” classes and thus exaggerate the size of the middle classes. The
value of subjective methods to date appears to be minimal due primarily to the absence of a simple, self-
administered rating scale to identify social classes without simply asking the respondents his or her social
class.

Objective methods of determining social classes rely on the assigning of classes (or status) on the
basis of respondents’ possession of some value of a stratified variable. The most often used variables are
occupation, income, education, size and type of residence, ownership of possessions, and organisational
affiliations. Most consumer research uses some objective methods for classifying because they yield
quantitative results and obviate subjective interpretation. Objective methods can be divided into those that
involve single indexes and those that use multiple indexes.
REFERENCE GROUPS

With the exception of those very few people who can be classified as hermits, most individuals
tend to be involved with other people on a continuing basis. Like almost all-human behaviour, an
individual’s social behaviour and social relationships are often motivated by the expectation that they will
help satisfy specific needs. For example, a person might become a volunteer ambulance driver to satisfy a
need for community recognition. Another person might visit a health spa in the hopes of meeting
compatible people to satisfy social needs. A third person might join a food cooperative to obtain the
benefits of group buying power. These are just a few of the almost infinite number of reasons why people
involve themselves with others.

GROUP

A group may be defined as two or more people who interact to accomplish either individual or
mutual goals. The broad scope of this definition includes an intimate “group” of two neighbours who shop
together and a larger, more formal group, such as a neighbourhood watch association, whose members are
mutually concerned with reducing crime in their neighbourhood. Included in this definition, too, are more
remote, one-sided, social relationships where an individual consumer looks to others for direction as to
which products or services to buy, even though these others are largely unaware that they are serving as
consumption-related models.
TYPES OF GROUPS
 23

There are many ways to classify to groups, such as by regularity of contact, by structure and
hierarchy, by membership, even by size. For example, it is often desirable to distinguish between groups in
terms of their size or complexity. However, it is difficult to offer a precise point as to when a group is
considered large or small. A large group might be thought of as one in which a single member is not likely
to know more than a few of the group’s members personally or be fully aware of the specific roles or
activities of more than a limited number of other group members. In contrast, members of a small group
are likely to know each member personally and to be aware of every member’s specific role or activities in
the group. For example, each staff member of a college newspaper is likely to know all other members and
be aware of their duties and interests within the group.
In the realm of consumer behaviour, we are principally concerned with the study of small groups
since such groups are more likely to influence the consumption behaviour of group members.

PRIMARY VERSUS SECONDARY GROUPS

If a person interacts on a regular basis with other individuals (with members of his or her family,
with neighbours, or with co-workers whose opinions are valued), then these individuals can be considered
as primary group for that person. On the other hand, if a person interacts only occasionally with such
others, or does not consider their opinion to be particularly important, then these others constitute a
secondary group for that person. Thus from this definition, it can be seen that the critical distinctions
between primary and secondary groups are the perceived importance of the groups to the individual and
the frequency or consistency with which the individual interacts with them.

FORMAL VERSUS INFORMAL GROUPS

Another useful way to classify groups is by their formality; that is, the extent to which the group
structure, the member’s roles, and the group’s purposes are clearly defined. If a group has a highly defined
structure (for example, a formal membership list), specific roles and authority levels (a president,
treasurer, and secretary), and specific goals (to support a political candidate, assist the homeless, increase
the knowledge or skills of members), then it would be classified as a formal group. The Executive
Council of the Gauhati University, with elected officers and members who meet regularly to discuss topics
relating to the University, would be classified as formal group. On the other hand, if a group is more
loosely defined—if it consists, say, of four members who were in the same college sorority and who met
for dinner once a month, or three co-workers who, with their spouses, see each other frequently then it is
considered an informal group.
From the standpoint of consumer behaviour, informal social or friendship groups are generally
more important to the marketer, since their less clearly defined structure provide a more conducive
environment for the exchange of information and influence about consumption related topics.
 24

MEMBERSHIP VERSUS SYMBOLIC GROUPS

Sometimes groups are classified by memberships status. A group to which a person either
belongs or would qualify for membership is called a membership group. The Pensioners Association of
Assam (PAA) is an example of membership groups. Older adults are an important special market, and the
PAA is a very large membership group that enjoys their trust.

In contrast, a group in which an individual is not likely to receive membership, despite acting like
a member by adopting the group’s values, attitudes, and behaviour, is considered a symbolic group. For
example, professional cricket players may constitute a symbolic group for an amateur cricket player who
identifies with certain players by imitating their behaviour whenever possible (e.g., in the purchase of a
specific brand of cricket glove or bat). The amateur does not, however,(and probably never will) qualify
for membership as a professional cricket player because he has neither the skills or opportunity to compete
professionally. Clearly, actual membership groups offer a more direct, and thus a more compelling,
influence on consumer behaviour.

In summary, we can say that small, informal, primary membership groups are of the greatest
interest to marketers because they exert the greatest potential influence on consumer purchase decisions.

CONSUMER-RELEVANT GROUPS

To more fully comprehend the kind of impact that specific groups have on individuals, it is
essential to examine six basic consumer-relevant groups: the family, friendship groups, formal social
groups, shopping groups, consumer action groups, and working groups.

THE FAMILY IN CONSUMER BEHAVIOUR

The family as an institution has been receiving increasing attention from a broad spectrum of
researchers and policymakers. Some of them question whether the family is in transition, in trouble, or
even able to survive, while others convey an optimistic assessment of its future. However the changes in
values and the traditional familial responsibilities, stability, composition, and roles are approached, it is
evident that government, business, and the academic community have become more committed to
studying the approximately 57 million living units defined as families.

In focussing on the family as it relates to consumer behaviour, at least two perspectives may be
used. First, the family may be viewed as an agent that influences the behaviour of its individual members.
This involves an awareness of the effect that various beliefs, life-styles, socio-economic status, and
patterns of interaction among members have an individual member’s market behaviour. The family is,
 25

therefore, seen as a reference group. The second perspective focuses on the family as a unique entity. The
family is viewed as a unit that has specific identifiable characteristics and an existence beyond a simple
summation of the behaviour or outlook of its individual members. The uniqueness of the consumption
patterns of the family entity is often a product of the intimacy of shared concerns and priorities, and these
results in behavioural patterns worthy of special study.

Before these perspectives can be elaborated, it is well to consider several circumstances that are
very likely to affect these influencing and consuming functions of the family.

1. The Women’s Liberation Movement. Not only have the efforts for equal opportunity in
employment and legal matters made an impact on family life in general, so has the magnitude of
the number of women in the labour force bringing the demands of their new life-styles to the
marketplace
2. The “New” freedom in Sexual Conduct. Persons who identify with this trend may have greater
expectations and fewer inhibitions in seeking self-fulfilment generally. This pattern has fostered
strong interest in personal hobbies, self-expression in clothing selection, and participation in
sports such as racket ball and tennis.
3. New and Emerging forms of the Family with Different Perceptions of the Bearing and Rearing of
Children. A declining birth rate, an increasing divorce rate, postponement of marriage, alternative
living arrangements and a growing scepticism toward having children are among the issues
surrounding the family. These also can have a measurable impact on consumer behaviour. For
example, having children later in the life of family typically means bringing a child into a more
affluent environment. The household will be better established and can commit greater resources
to child-oriented spending.

There are many ramifications of these conditions and trends. The shifts in household composition
and size could have a substantial impact on the level of demand for a vast array of products and services
including housing, education, and health care. The increase in the frequency with which families pay for
services to carry out routine household tasks also means other changes in the marketplace. Several
examples are more varied meal patterns and the use of professional house cleaners and lawn-care services.
Much more could be said, but at this point it is sufficient to remember that these conditions do have some
effect on the manner in which the family serves as an influencing agent and a unique consuming unit.

In approaching the study of the family, it is also useful to identify and define several alternative
configurations of the family. These include the nuclear family, extended family, family of orientation,
family of procreation, and the household. This brief review draws attention to the nature and roots of
family behavioural patterns that can arise from different interpersonal relationships. For instances, recent
 26

study of banking practices in a medium-sized community showed that the experiences of specific members
of the extended family had a substantial influence on adults’ selection of their primary bank.

FAMILY FORMS:

There are important variations in what have been called families or family groups that
must be differentiated for increased clarity and understood as offering overlapping circles of influence.

First, the term family generally refers to a group of people who are related by blood, marriage, or
legal adoption. Individuals who simply live together in an apartment or dormitory, as roommates are not
considered a family in the customary use of the term. This general definition does not delineate the family
entity sufficiently to permit identification of the influences and interactions that are important to the
consumer analyst. Considerable clarification can be achieved by distinguishing among the following: the
nuclear family, the extended family, the family of orientation, and the family of procreation. It will also be
helpful to differentiate between a family and a household.

Nuclear family refers to the immediate kinship group of father and/or mother and their offspring
or adopted children who ordinarily live together. A temporary separation of a member does not dissolve
this kinship. For example, a son or daughter away at college is still part of the nuclear family. The
members of a nuclear family have considerable face-to-face contact on a regular basis. This living together
and the intimate sharing that takes place over time are major characteristics of the nuclear family. It is also
the family grouping that has been studied the most.

The extended family includes the nuclear family plus other relatives, such as grandparents, uncles,
aunts, cousins, and in-laws. As a focus of attention in terms of their possible influence on the family
member’s behaviours or the behaviour of the family unit, there is a practical limit as to who is included for
study. The extent to which a relative is considered a part of the extended family is essentially determined
by the regularity and intimacy of the interaction with the family members.

The family that one is born into or adopted into is called the family of orientation. This family
group typically initiates the enculturation process that continues throughout life. The interpretation of
family roles, various help patterns (exchange of money, advice, gifts, and services), and fundamental
values are identified and passed on to off spring by this family. The family of orientation essentially
begins with the nuclear family but ordinarily is expanded over time and becomes the extended family.

The family of procreation is established when one marries; that is, this represents the formation of
a new family unit capable of existence as a separate entity.
 27

All families are households; however, not all households are families. The term household refers
to a living unit or entity for consumption purposes. A person living alone represents a separate, fully
functioning living unit and is also considered a household. Nevertheless, a single person does not
constitute a family because the term family is used to refer to at least two related people. Nor would two
single men or women living together in an apartment be referred to as a family, although they do
constitute a household.

Generally, they are more permanent, demonstrate greater interdependency among members, and
have historically assumed more significant roles in society than have non-family households. Furthermore,
the nuclear family in particular is the optimum unit of study because of the following reasons.

(1) The family is the accumulating unit, the inventory of acquisitions over time being a nuclear
family inventory. The items accumulated include various possessions such as cooking utensils,
furniture, books, an automobile, and some form of real estate.
(2) The nuclear family is typically the decision-making unit in asset accumulation and consumption.
(3) The nuclear family is more accessible for study than arte its competitors and more easily
definable for purposes of study than is the household, for example, which may include lodgers
who have little part in family acquisition.

Although these points essentially draw attention to the family as a consuming unit, it is also important
to recognize the impact of the family as a socializing influence on its members. Even though these
two dimensions of the family are interrelated, it is helpful to separate them for discussion. Therefore,
the next section will give specific attention to family influences on its members.

FAMILY INFLUENCES ON INDIVIDUAL MEMBERS:

Because of the nature of humans, a young person must be cared for and nurtured both physically
and psychologically; most often this is handled in a family environment. Parsons and Bales contend that
no society has found an effective substitute arrangement for the family. That is, the family continues to
exist as a distinct unit. Because the socialization process begins at birth, the family’s influence on the
behaviour of the individual member can be significant.

The family shapes its member’s personality characteristics, attitudes, and evaluative criteria, that
is, the way its members look at the world and how they relate to it. To a large extent, this influence is
informal and exerted on the individual over an extended period of time. Part of these influences includes
the acquiring of a consumer outlook. As Boyd and Levy have contended, “…people are born with
 28

apparently insatiable needs and desires. From their first moments they are learning what specific things to
consume and the ways to consume them, and, quite as important, what not to consume.”

In describing similar circumstances, Riesman and Roseborough stated that what children learn
from their parents is a kind of basic set of domestic arrangements, for instance, a view of furniture as
specific functional items to acquire rather than as a stylistic concept and, consequently, the need for home
furnishings such as ranges, refrigerators, and television sets. The same individuals are likely to learn styles
and modes of consumption from their peers.

The amount of influence the family has will vary at different periods of its member’s lives. For
example, a very young child may have relatively little contact outside his or her immediately family
environment until the age of four or five years. Typically, the number of socialising agents increases
substantially upon entering school with the regular non-family contact with teachers and schoolmates.

It can be noted that the nuclear family plays two important roles. First, the interaction among
family members helps shape individual personalities, evaluate criteria, and attitudes. Second, the nuclear
family often performs a mediating or interpretation function in exchanges among members, particularly as
these relate to resolving differences concerning the needs of the family as a whole. These two functions
are stimuli or inputs into the individuals central control unit are subject to the complex processes of
exposure, attention, comprehension, and retention, as such; they have varying degrees of influences on an
individual’s psychological makeup.

One example of these family influences in action is the impact that a family’s social class can
have on its life-style and, subsequently, on its members’ buying behaviours. The differences that arise
from social class membership basically are reflected in variation in values, interpersonal attitudes, self-
perceptions and daily life routines. A brief reference to each of these four factors will illustrate their
possible effect on individual family member behaviour and some marketing implications.

VALUES

Values are deeply internalised personal feelings that generally affect one’s behaviour and
judgements. The family plays an important role in the development of personal values, which can vary
across social classes. For example, some research suggests that people from low socio-economic classes
value personal advancement and self-sufficiency less than do middle class people. This difference can
have a significant impact on an individual family member’s personal desire for education, his or her
motivation while in an educational environment, and even his or her attitude toward providing financial
support for education as a taxpayer. Furthermore, any such influence on educational attainment may have
 29

a life-long effect on an individual’s market behaviour. For example, better-educated people are generally
more astute shoppers. They are also more likely to show an interest in the arts, the public park system, and
sports..

The value placed on time as a scare resource also varies from one social class to another. The
middle class has generally placed the most value on the careful planning and budgeting of time. This is
consistent either the high achievement orientation of middle class people. The high valuation of time also
affects consumer behaviour. For instance, the willingness to engage in pre-purchase search for
information, the specific sources used, as well as one’s interest in labour-saving products are influenced by
the perceived value of a person’s time.

The role of values in the market behaviour of consumers has not received much attention. Adding
the knowledge of consumer value orientations, especially in the family framework, to the already used
demographic and psychographic (life-style) variables could help marketing managements operations
become more effective. Some of the most promising avenues for research and application of the
knowledge of values include market analysis and segmentation, product planning, promotional strategy
development, and public policy formulation.

For example, market identification might include a segment made up of consumers who highly
regard imaginativeness, an exciting life-style, and independence. Such a grouping could be defined as a
market segment of consumers concerned with individuality and self-expression. These consumers may be
more receptive to products that can be tailored to their individual desires though the use of added
accessories and styling options. Certainly, automobile producers have provided such product flexibility, as
have some clothing manufacturers.

INTERPERSONAL ATTITUDES

Interpersonal attitudes refer to the predisposition of family members to interactions among

themselves as well with those outside the family. Differences in interpersonal attitudes exist across social
classes and shape individual family member behaviour. For instance, middle class husbands and wives are
more likely to jointly pursue various family functions—such as decision making in chid rearing, family
budgeting, and expenditures for major purchases—than those in lower class families, As a result, a middle
class woman may be more likely to postpone decision until she has obtained her husband’s views than is a
woman from a lower socio-economic class.

Also, middle class families generally relate socially to more people than do lower class families.
This includes having more non-family members into the home for meals, entertainment, and socializing.
 30

This kind of interpersonal interaction has a long-term effect on children and a more immediate impact on
other member’s market activities. Middle class individuals are more likely to seek information from others
when making a major purchase decision than are individuals from lower social classes. This latter
behavioural pattern may substantially alter the information base from which one operates in his or her pre
purchase deliberation.

SELF PERCEPTION
Levy found that the way one thinks of or perceives him or herself also varies by social class. For
instances, lower class women understand their own bodies less well and have more taboos about them than
do middle class women. Lower class women were also found to have more traditional views of
interpersonal relations. Masculinity and physical strength were found to be of more concern to lower class
men than they were to middle class men.

Lower class people generally have less self-confidence and feel less in control of their own
destiny. Consequently, they are more likely to believe that if they get ahead, it is the result of chance or
luck rather than the result of personal effort. These views are shared among family members and are
passed on from one generation to the next. Their influence on family member’s market behaviour can take
on many forms. For example, such a prevailing family view may lead to a discouragement of a member’s
efforts for self-improvement through technical training or enrolment in a self-development course such as
that offered through adult education programs. It may also encourage a greater interest in gambling such
as that, which is available through state-sponsored lotteries.

DAILY LIFE ROUTINE

Each family develops its own routine to cope with the daily demands placed upon it. In fact, an
interesting exercise for each of us is to attempt to set down in some detail the way our family handles the
responsibilities of a typical day.

In most families, this routine varies between weekdays and the weekend and, to some extent, by
season. The record of such a routine would at least include the time when family members arise; how
meals are prepared and eaten (e.g., in some families the meals prepared jointly while more typically this
responsibility falls upon one member-the wife); when members leave for work, school, other regular
activities; how much time is spent apart, together, and in what activities; and how the family closes the
day.
The word “routine” is used to imply a regular pattern. The awareness of this regular pattern
continues over time and, coupled with what is known about learning theory, strongly suggests that the
daily family life routine can have an important impact on the individual family member’s behaviour. The
 31

strong interest of other family members in certain sports, for example, may shape one’s interests also.
Furthermore, what food is served at home and how it is served affects younger member’s eating patterns
outside the home and their meal preparation and entertainment style when they establish their own
families later in life.

CONCLUDING COMMENT

As an individual interacts with other family members, he or she simultaneously influences these
individuals as he or she is being influenced by them. Furthermore, no other single group or individual
ordinarily has as many opportunities for shaping a person’s behaviour as does his or her family. As
mentioned earlier, the nuclear family is a primary group with frequent face-to-face contact among its
members. It also shares a common pool of financial resources as well as consumption needs. Therefore,
family members tend to be more alike in their thinking and behavioural patterns than they would be if they
were not in the same family.

FAMILY AS A BUYING AND CONSUMING ENTITY

The family, particularly the nuclear family, is a very significant economic and social unit in most
societies. Personal goals and expectations are brought together, shared, and shaped by family members in
such a way that the family itself takes on a set of characteristics that reflect those of its members but
which, nevertheless, are unique to it. Decisions regarding the purchase and use of goods and services are
made by a family through the interaction of its members. Consequently, it can be said that family decision
making, similar to that of individuals who act in their own behalf, can be characterized by decision-
process model.

Families and family behaviour have studied extensively by social scientists in many disciplines
including sociology, social psychology, anthropology, home economics, consumer psychology,
economics, and marketing. However, as Ferber has

pointed out, relatively little attention has been given to bringing together the various dimensions of
consumer behaviour within the framework of the family to provide a more realistic explanation of
economic behaviour.
Alternative Models

Ferber has developed what he calls a simplified decision-making framework with specific
attention given to family saving and spending. This is shown in figure-3.3 showing Interrelation of Saving
and Spending Decisions. The basis for the framework is the division of family economic decisions into
 32

two types—financial and non-financial. Those decisions in the financial grouping include decisions
dealing with money management, savings, spending, and asset management. Because this framework was
used to discuss financial decisions, all other decisions that a family may make are grouped together under
what is called non-financial.
One can quickly note in Ferber’s framework that both financial and non-financial decisions are
affected by the available financial resources of the family, by the objectives or goals of the family, and by
the attitudes of the family members. The family’s objectives and attitudes relate to wide variety of topics
and, therefore, encompass both the material and non-material goals of the family in both short and long
run.

Attributes include expectations and outlooks of the different family members on economic and
related issues as well as their system of preferences and value judgements concerning alternative type of
economic behaviour.

Family Developments Economic and Political Events

Objectives Attitudes Resources

Non-financial Decisions Financial Decisions

Family Work Vs Other Money Spending Saving Asset

Size Leisure Management Behaviour Behaviour Management

Fig3.1: Interrelation of Saving and Spending Decisions

This framework takes note of the fact that family decisions in some instances are dominated by
influences that are external and not under family’s control. In particular, these include economic and
political events in the community in which the family lives and personal experiences of the individual
family members such as births, deaths, marriages, and accidents.

Other, more detailed models of family decision-making have been developed. One of the recent
contributions has been made by Sheth. He offers a comprehensive model of family decision making in
consumer behaviour. The model is a representation of his attempt to specify the nature of family decision
 33

making in consumer behaviour and to bring together the findings of various social scientists in a
comprehensive representation.

In Sheth’s model the consumption of a family is classified as that of (1) the individual members,
(2) the family as a whole, (3) the household unit. Examples of individual member’s consumption include
their use of shaving cream, which may just be used by the father (husband), nail polish by the mother
(wife), and comic books or toys by the children. However, various food items and hand soap, for example,
are consumed by everyone in the family. Furthermore, certain goods and services (e.g., utilities such as
water, electricity, and natural gas) as well as such items as paints, wallpaper, and the living room furniture
are used by the family indirectly in the process of living together in the same residence. The latter fit into
Sheth’s third category of consumption. This approach to classifying family consumption points out that
the demand for goods and services may be collective and direct, collective and indirect, or individual.
In Sheth’s theory, family consumption is considered to follow family buying decisions. This indicates that
gifts, rentals, and acquisitions by means other than buying are not explicitly taken into account. This
seems appropriate because these latter forms represent a small proportion of goods and services consumed
by most of the families.
Family buying decisions are identified as either autonomous—made by a single member—or
joint—made by at least two members of the family. The theory as a whole has four major subsections that
can be observed in the model:

1. Individual members of the family, their predispositions, and the underlying buying motives and
evaluative beliefs about products and brands.
2. Determinants of the motives and beliefs of the individual members that are both external and
internal.
3. Determinants of autonomous versus joint family decision-making.
4. The process of joint decision making, with consequent inter-member conflict and its resolution.
5. Although the Ferber and Sheth models differ substantially, each draws attention to the importance
of focusing on family as a unique consuming unit.
The Family as a Dynamic Entity

For many reasons, family composition changes over time, and this may substantially alter the
family needs, its decision-making process, and its market behaviour (where to shop and what to buy). One
way of viewing these changes that has proven helpful is through what has been called the family life cycle.
A common representation of this follows below. It should be noted, however, that in this categorisation
there are three listings included here as a representation of the usual format, although they are not families
but non-family households. Furthermore, these three non-family households represent pre-and post-family
entities.
 34

(1) Bachelor State: young single people not living at home (non-family household)
(2) Newly Married Couples: young with no children
(3) Full Nest I: young married couples with youngest child under six
(4) Full Nest II: young married couples with youngest child six or over
(5) Full Nest III: older married couples with dependent children
(6) Empty Nest I: older married couples, no children living with them, household head in labour
force.
(7) Empty Nest II: older married couples, no children living at home, household head retired
(8) Solitary survivor in labour force (non-family household)
(9) Solitary survivor, retired (non-family household)

This scheme takes note of the fact that changes in family composition are likely to be more
important in terms of market behaviour than age or simply the aging process of the family members. To
illustrate the importance of family composition to consumer behaviour, a brief summary is presented of
the major dimensions of four of the above listed stages in the life cycle and some of their marketing
implications.
BACHELOR STAGE

Although earnings are low in relation to what they will be later in one’s career, this income is
subject to few rigid demands; so consumers in this stage have substantial discretion over how they spend
their money. Part of this income is typically used to purchase a car and basic household equipment. People
at this stage also tend to be more
fashion-and recreation-oriented, spending a substantial proportion of their income on clothing,
entertainment, food away from home, vacations, leisure-time pursuits, and other products and services
involved in the mating game.

Recent trends suggest that this stage is extending over a longer period of time. Furthermore, older
singles are increasingly purchasing items formerly bought almost exclusively by married couples, such as
single-family houses and all the household items necessary to furnish them.

NEWLY MARRIED COUPLES

Newly Married Couples without children are usually better off financially than they have been in
the past or will be in the near future because frequently both husband and wife are employed. To illustrate
the economic importance of changes in the family life cycle, attention may be given to the results of
 35

establishing this new family, that is, the movement from stage one, Bachelorhood, to stage two, Newly
Married-no children.

FULL NEST II

At this stage, the youngest child is six or older and in school; the husband’s income has ordinarily
improved; and if the wife has not been employed, she often returns to work outside the home. As a result,
the family’s financial position improves. Consumption patterns during this time continue to be heavily
influenced by the children’s needs. Consequently, a number of different products and services are
purchased in relatively large quantities, including doctor’s services and medicines, tennis shoes, laundry
detergent, snack foods, bicycles, music lessons, and school supplies.
EMPTY NEST II

By this time the family head has retired and so the couple usually suffers a substantial reduction
in income. Although it is increasingly popular for a retired person to take on some part-time work, it
ordinarily does not make up the differences between pre retirement income and retirement income.
Expenditures on the home and related items are scaled down, and apartment living may begin.
Unfortunately, a sizable number of the couples in this group will be forced to live at a level approaching
subsistence. Furthermore, health concerns receive more attention, and some even move to more agreeable
climates or retirement centres in their area.

CONCLUDING COMMENT AND MARKETING IMPLICATIONS:

The words “typically” and “ordinarily” have been used throughout this last section on the family
life cycle. This does not mean that all families fit neatly into one of these developmental stages. In fact,
everyone knows of other configurations of family life; we may even have grown up in one. One of these
other family groupings is the single-parent family with young children. To a large extent these families’
needs and behavioural patterns follow those in the Full Nest I stage. However, to meet these needs the
remaining parent will likely be employed and probably make more extensive use of day care facilities and
babysitters than would be the case if both parents were in the family. Also, in many such families the
expenditures for childcare are substantial and, therefore, force the family to live at a somewhat lower level
than would be necessary if it had two adults present.

The special needs and desires of families at each stage of the family life cycle offer unique
market opportunities; that is, these needs and desires offer opportunities for governmental agencies, non-
profit organisations, and business to be of service. Specifically, the life cycle concept can be used to:
 36

1. Identify Target Markets. Studies of consumer expenditures reveal that the consumption of many
products and services varies significantly by stage in the family life cycle. This provides a means
of identifying specific groups of consumers within the broader consumer market that have the
greatest interest in certain products or services. As a result, marketing efforts to provide for these
needs and desires can be more effective and efficient. For instance, with a target market clearly
identified, products can be tailored to the consumers’ requirements, distribution provided in
convenient outlets, and advertising undertaken in media that reach the target market with a
minimum of wasted coverage.

2. Forecast Demand. It is possible to obtain consumption rates of products and services broken
down by life cycle, age, and other demographic data. By identifying the consumption patterns of
the family segments that are predicted to expand significantly, it is possible to single out product
and service groupings that are likely to enjoy above-average growth rates in the future.

3. Family Roles Structure. Family role structure refers to the behaviour of nuclear family members
at each stage in the decision making process. One means of gaining an understanding of family
role structure is by studying the various forms of role specialisation that occur in families. Role
specialisation within the family can affect both the decision making process and the decision
made. This specialisation takes a number of forms: two are used here to illustrate the importance
of role specialisation and the nature of its influence. First, role dominance will be discussed,
followed by the gatekeeper concept.

Role Dominance. Role dominance refers to the extent to which one member of a family has greater
influence in the family decision making process than do other members. Typically, husband-dominant
or wife-dominant decision-making has been the focus of attention. These are decisions involving both
spouses but where the ideas of one have greater impact. There have been a number of studies
conducted to identify patterns of dominance and the circumstances that foster such dominance.
Marketing and advertising managers are particularly in determining which spouse has the most
influence in various types of decisions so that promotional strategy can be oriented accordingly.

A person’s background can contribute to role dominance. There is evidence to indicate that the
degree of dominance by one member can vary among groups with differing cultural backgrounds.
Also, several researchers have found evidence to suggest that husband’s dominance appears to be
more likely when the husband is successful in his occupation. The wife’s influence increases with age
and is generally greater if she is employed. It is important to note that existing evidence also shows
that dominance by one family members depends upon the particular type of decision being made; that
is, a family cannot ordinarily be classified as being wife dominant or husband dominant, because
 37

when confronted with certain decisions the wife will have greater influence, and in other situations the
husband will be dominant.

Gatekeeper Concept: Another form of role specialisation is what a number of consumer analysts have
called the gatekeeper concept. The “gatekeeper” refers to an individual who acts as a valve and filter
affecting the flow of information coming into the family. In a number of families the homemaker still
illustrates this concept at work. The fact that she is at home more than other members, as well as her
concern for the general well-being of the family, puts her in a position to receive, screen, and sort
incoming messages. Salespeople who call during the day are also subjected to her gate keeping action.
In business setting, a manger’s secretary may function in a similar capacity.

To the consumer analyst, such role specialisation must be identified and understood because it
can have a substantial impact on consumer behaviour

Questions for discussion

1. Culture is something over which marketers have no control: therefore, the marketing manager’s
task is to identify basic cultural values and consumption patterns in light of the products his or
her firm distributes. Evaluate the statement.
2. Distinguish between beliefs, values, and customs. Illustrate their importance in the study of
consumer behaviour.
3. What do you understand by the term “culture”? What are the different sub-groups of culture?
4. Prepare a list of formal and informal groups to which you belong and give examples of any
purchases for which each may have served as a reference group.
5. How does the family influence the consumer socialisation of children? What role does television
advertising play in consumer socialisation?

UNIT-3.

PERSONAL AND PSYCHOLOGICAL FACTORS IN CONSUMER BEHAVIOUR.

PERSONALITY:

Personality is a frequently used and reasonably familiar term. Most people have at various times
characterized someone as having a pleasant personality or, perhaps, an obnoxious personality. Marketing
strategists’ fascination with personality stems from the belief that this consistent mode of behaving will
enable marketers to understand consumer behaviour. The assumption is that if they really understand a
 38

consumer’s personality, they will understand why a person consumes the way he or she does and then,
perhaps, they can effectively influence that consumption behaviour. Actually, there is little agreement on
what the components of personality are and how these components of personality are and how these
components become organized into a meaningful whole. Thus, an examination of the major personality
theories is essential to acquiring an appreciation of the potential contribution of this concept.

PSYCHOANALYTIC THEORY:

Psychoanalytic, or Freudian, theory posits that personality is composed of three systems of

interdependent psychological forces or constructs: the id, the ego, the super ego. The interaction of these
three systems determines the person’s behaviour. The id, the original source of all psychic energy, seeks to
achieve immediate gratification of all biological or instinctual needs. Thus, a consumer’s instinctive
cravings, needs, and desires originate in the id. If all the pleasure seeking impulses emanating from the id
were openly expressed, the consumer would quickly violate society’s norms, rules and regulations. Indeed
proponents of the psychoanalytic theory would content that uncontrolled behaviour that directly satisfies
all instinctive needs and desires is inherently bad. The ego functions to control and direct the id’s impulses
so that gratification can be achieved in socially acceptable manner. The ego controls behaviour by
selecting the instincts that will be satisfied as well as the manner in which they will be satisfied. This is
accomplished by integrating the often-conflicting demands of the id and the superego. The superego, the
internal representative of the society’s norms and values, acts to inhibit the impulse emanating from the id
that would be contrary to society’s norms and values. Thus, superego can be thought of as the consumer’s
conscience or moral arm that serves to direct behaviour. According to the psychoanalytic theory, the id is
entirely unconscious and the ego and superego partially unconscious, resulting in an unconscious
determination of behaviour.

Psychoanalytic theory has thus provided the conceptual basis for motivational research.
Consumer behaviour, according to the motivational researchers, is the result of unconscious consumer
motives that can only be determined through the use of indirect assessment methods that include a wide
assortment of projective technique. The individual focus characterizing psychoanalytic theory is frequently
inappropriate to the marketing analyst whose interest is in groups or segments of consumers. Indeed, even
if individual information could be obtained, its application by the marketing strategist is not readily
apparent. While psychoanalytic theory has been extensively and justly criticized, few would deny that it
had a tremendous impact on marketing in the 1950s and 1960s and, to a lesser extent, in the 1970s.

SOCIAL PSYCHOLOGICAL THEORY:

 39

Social psychological theory developed as a reaction to the psychoanalytical theory’s rigid

adherence to the biological determinants of personality. Social psychological theorists contend that social
variables, not biological ones, are the most important determinants of personality. Humans are conscious
of their needs and wants; consequently, their behaviour is directed towards satisfying them. The following
are the representative needs considered to be basic determinants of personality by the proponents of the
Social psychological theory: the striving for superiority, freedom from loneliness, security, satisfying
human relationships, and coping with anxiety.
One example reflecting this orientation suggests that consumer behaviour results from three
predominant interpersonal orientations ---- Compliant, Aggressive and Detached. A psychological
instrument-- the CAD scale has been developed to measure these three basic orientations. The compliant
person wants to be appreciated, wanted, loved, and included in the activities of others. The compliant
person is so other-oriented that he or she becomes overgenerous, over grateful, and over considerate. For
example, the compliant person seeking reassurance of acceptance by others is likely to seek the security
afforded by personal grooming products. The aggressive person seeks success, prestige and admiration of
others. The aggressive person values other people only if they are useful to achieving a goal. He or she
considers everyone to be motivated by self-interest and shows concern for others only to cover up his or
her goals. For example, the aggressive person seeking a separate identity will be more concerned with
distinctive brands of personal grooming products. The detached person seeks freedom from obligations,
independence and self-sufficiency. The detached person does not want to be influenced or to share
experiences with others; rather he or she seeks to maintain or establish an emotional distance from others.
For example, the detached person will probably not be concerned with products (such as personal
grooming products) or brands that ensure acceptance by others.

TRAIT-FACTOR THEORY:

According to trait-factor theory, an individual’s personality is composed of a set of traits or

factors. The relatively enduring and distinctive ways in which consumers differ from one another are
referred to as traits. Therefore, traits can be considered consumer difference variables. Proponents of trait
theory contend that consumer have relatively stable traits that produce similar effects on behaviour,
regardless of the situation. Furthermore, although a trait is common to many individuals, there is
considerable variation in the degree to which one consumer expresses that particular trait. Three critical
assumptions serve as the basis for the use of trait-factor theory. They are:
(1) Traits are common to many individuals and vary in absolute amounts among individuals.
(2) Traits are relatively stable and exert fairly universal effects on behaviour regardless of the
environmental situation.
(3) A consistent functioning of personality variables is predictive if a wide variety of behaviour.
 40

PERSONALITY AND PRODUCT CHOICE:

The consumer analyst’s fascination with personality stems from the belief that a consumer’s
personality significantly influences consumer behaviour. Many consumer analysts would contend that
consumption patterns are an expression of a consumer’s personality and, consequently, knowledge of a
consumer’s personality is strategic to the marketing decision maker. Consumer analysts have made
numerous attempts to demonstrate the relationship between personality and product or brand choice. For
example, an attempt to demonstrate the relationship between personality and brand of automobile
purchased proved unsuccessful. There is, however, some indication that personality is related to the type
of automobile owned; that is the owner of a convertible appeared to be more aggressive, impulsive,
sociable, and somewhat less stable and reflective than the owner of a standard or compact car. A number
of marketing analysts also have found a relationship between personality and product use. For example,
there appears to be a tendency for women who are enthusiastic, sensitive, and submissive to be more prone
to purchase private brands than women who do not have these traits. In general, marketing analysts by
employing sophisticated analytical techniques have found that a relationship exists between personality
and certain types of products (for instance, convenience products). Thus, even though the unsuccessful
attempts to relate personality and consumer behaviour outnumber the successful ones, the consumer
analyst’s interest in personality continues to be strong.

IMPLICATIONS OF PERSONALITY FOR MARKAETING STRATEGY:

In order to make a product effective, the marketing manager must frequently segment the market;
that is, the marketing manager must adapt his or her marketing effort to the demands of relatively
homogeneous groups that make up the market. Traditionally, marketers used such demographic
dimensions as age, income, occupation, and social class to identify consumer groups. Many marketing
managers, however, contend that demographic variables lack the richness needed to accurately focus
marketing efforts. The speculation is that personality captures much of the richness not present in
demographic variables.

Most attempts to base marketing strategy on personality have not been unequivocally successful.
In order for personality information to aid the marketing strategist, a few basic conditions must prevail.
First, consumers with common personality dimensions must be homogeneous with respect to such
demographic factors as age, income, and locations so that they can be communicated with economically
through the mass market.

Age and Life Cycle Stage

 41

Demographics generally refer to various, relatively apparent, descriptive characteristics of a

group of persons such as their age, sex, ethnic origin, education, and income. These data are ordinarily
more readily available than information on personality traits or level of intelligence. Age pattern and life
cycle stage of society determine the future demand and buying behaviour pattern. The recent slow aging
process of the society will most certainly be reflected in aggregate consumption patterns as well as in
expressed interests and attitudes. Knowledge of the life cycle stage of a society and age provide a great
opportunity to predict buying behaviour of that society. Despite all these opportunities to anticipate future
changes in consumption patterns resulting from the aggregate population aging process, the logical and
readily apparent trends may never happen. Great care must be taken to continue to monitor the impact of
such changes on consumer market behaviour. It could be very costly to rely strictly on historical
consumption patterns related to age.

Occupation and Economic Circumstances:

The other major factors to be studied in the field of consumer behaviour are the occupation of the
individuals and the economic circumstances in the society. Many believe that an individual’s occupation is
the best single clue to his or her social class membership. This appears to be true because a person’s life’s
work has a substantial influence on their purchase decisions and the way he or she lives. Occupation may
also be ranked according to the prestige, honour, and respect associated with them by the members of the
society. Because of all these factors and for maintenance of the social position they enjoy, consumers
adopt a certain type of buying behaviour. However, all these things are determine by the economic
circumstance. Different levels of economic condition will have a substantial effect on the consumer’s
buying decisions. Only in some exceptional cases, some individual might refuse to adapt themselves to the
changing economic circumstances.

The classical economists of the nineteenth century postulated a view of consumer behaviour that
is still present in contemporary theory, although it has been modified. The basic assumptions are that an
individual has complete knowledge of his or her wants as well as all available means of satisfying these
wants. In addition, personal preferences are assumed to be independent of the environment at the time in
which choice is made as well as unlimited, insatiable, and consistent. The buying decision, then, is simply
one of the careful allocations of resources to maximize utility or satisfaction. Some of the most
comprehensive models of consumer behaviour yet developed rely upon concepts used earlier by
economists. Mundell, in his book Man and Economics states, “ The act of choice is the act of making
decision. A chooser is a decision maker. He confronts aspirations with limitations, preferences with
opportunities, intentions with resources.”

Life-style Concept:
 42

During the 1960s, a new concept called “Life-style” began to take shape. The concept of life-
style resulted from a merging of the objectivity of the personality inventory (trait-factor theory) with the
rich, consumer oriented, descriptive detail of the qualitative motivation research investigation
(psychoanalytic theory). Although there are numerous definitions of life-style, there is general agreement
that life-style refers to the patterns in which people live and spend money and time. Life-style embraces a
wide range of content including activities, interests, opinions, needs, values, attitudes, and personality
traits.
Life-style influences on Consumer Decisions:

Life-styles are learned by individuals as the result of many influences such as culture, social
class, reference groups, and the family. More specifically, however, life-styles are derivatives of
consumer’s personal value system and personalities. Thus, there is great overlap in meaning among the
terms values, personality, and life-style. Life-style can be considered a derivative concept combining the
influence of personality and social values that have been internalised by an individual.

The theory of life-style is based on a theory of human behaviour proposed by George

Kelly, which states that people try to predict and control their lives. To do this, people form constructs, or
patterns, to construe the events happening around them and use such constructs to interpret, conceptualise,
and predict events. Some persons have constructs or patterns for interpreting their universe that are
different from other individuals’—accounting for differences in life-styles. Kelly noted that this construct
system not only is personal but also is continually changing in response to a person’s need to
conceptualise cues from the changing environment to be consistent with his or her personality.

The life-style concept includes variables such as income, life cycle, education and other
demographics. That is, the measurement of life-style includes “measures” of people’s activities in terms of
( 1 ) how they spend their time; ( 2 ) their interests, what they place importance on in their immediate
surroundings; ( 3 ) their opinions in terms of their view of themselves ( Self Concept ) and the world
around them; and ( 4 ) some basic characteristics such as their stage in life cycle, income, education, and
where they live.

Self-concept:

The way individuals perceive themselves has great relevance for marketing managers. People
will attempt to purchase items that fit the interpretation they have of themselves or that will improve their
self-concept.
 43

This notion of self-concept involves the attitudes and perceptions one uses to define his or her
personhood. The self is considered to have five components: The first component is an organized set of
motivations. The second component of the self is a series of social roles to which the person is committed,
along with the knowledge of how to play them. Social roles are clusters of norms that are related to
particular positions that a person occupies. The third component of the self is a more general set of
commitments to social norms and their underlying values. The fourth component of the self is a set of
cognitive abilities, including ability to create and understand symbols, which guide response to the
intended meanings of others in social interaction and provide a “map” of the physical and social setting in
which the person finds himself. The fifth and final component of the self is a set of ideas about one’s
qualities, capabilities, commitments, and motives--a self-image—that is developed by the individual in the
course of his socialization.
Reference Group:

Although the impact of the group has long been recognized, confidence in the ability of group
theory to explain consumer attitudes and behaviour has been shaken by the reporting of contradictory
evidence. Confidence in the basic force, however, has been renewed by the development of reference
group theory. Reference group theory was developed as a result of the recognition that not all groups to
which an individual belongs exert the same influence or hold the same relevance for him or her. In fact,
some groups of which the person is not even member may be of considerable influence.
Psychological Factors:
Psychologists and marketing people alike have tried their hands at classification of factors
affecting consumer behaviour and have devised lists, some of which are exceedingly long. Abraham
Maslow, whose thinking is based more on an intuitive than on an empirical foundation, has significantly
contributed in this field.
MOTIVATION:

Maslow hypothesizes that motives are organized to establish priorities and hierarchies of
importance. Through this means, internal conflict is avoided by one motive taking precedence over
another. The following classification of different motivational forces was suggested, proceeding from the
lowest order to the highest:
1. Physiological: the fundamentals of survival, including hunger and thirst.
2. Safety: concern over physical survival, ordinary prudence which might be overlooked in striving
to satisfy hunger and thirst.
3. Belongingness and love: striving to be accepted by intimate members of one’s family and to be an
important person to them. This also includes non-family members.
4. Esteem and status: striving to achieve a high standing relative to others, including desires for
mastery, reputation, and prestige.
 44

5. Self-actualisation: a desire to know, understand, systematize, organize, and construct a system of

values.

Three essentially different categories are comprehended in this classification: ( 1 ) motives related to
survival needs, ( 2 ) motives related to human interaction and involvement, and ( 3 ) motives related
to competency and self. Each higher order of motive will not function until lower levels are satisfied,
at least to some degree. The hungry person will care little about understanding nuclear physics.
Undoubtedly, some motives in each category are never fully satisfied and thus remain continued
sources of problem recognition. The ordered relationship of motive strength (prepotency) is of
conceptual value. It has been verified that prepotency is reflected in consumer buying to the extent
that previously ignored desires often exert themselves only after a purchase has satisfied a
predominant motive. A consumer’s motives are integrated by his or her self-concept into a purposeful
pattern that is reflected in purchasing behaviour. To understand the significance of motivation, it
should be stressed that purposeful behaviour is motive-satisfying behaviour. The implication of this
premise is that motive patterns are not likely to be changed through persuasive activity of any type,
especially that undertaken by the commercial marketers. One essential task for marketing research,
therefore, is to uncover dominant motives and thereby provide clues for the development of products
and sales appeals that will be regarded as motive satisfying by the consumer.

PERCEPTION:

Perception can be described as “how we see the world around us”. Two individuals may
be subject to the same stimuli under apparently the same conditions, but how they recognize them,
select them, organize them, and interpret them is a highly individual process based on each person’s
own needs, values, expectations, and the like. The influence that each of these variables has on the
perceptual process, and its relevance to marketing, should properly be examined.

Perception is defined as the process by which an individual selects, organizes, and

interprets stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input
to any of the senses. Example of stimuli (i.e., sensory inputs) includes products, packages, brand
names, advertisements, and commercials etc. Sensory receptors are the human organs (the eyes, ears,
nose, mouth, and skin) that receive sensory inputs. These sensory functions are to see, hear, smell,
taste, and feel. All of these functions are called into play—either singly or in combination—in the
evaluation and use of most consumer products. The study of perception is largely the study of what
we subconsciously add to or subtract from raw sensory inputs to produce a private picture of the
world.
 45

SUBLIMINAL PERCEPTION:

People are also stimulated below their level of conscious awareness; that is, they can
perceive stimuli without being consciously aware of the stimuli in question. The threshold for
conscious awareness or conscious recognition appears to be higher than the absolute threshold for
effective perception. Stimuli that are too weak or too brief to be consciously seen or heard may
nevertheless be strong enough to be perceived by one or more receptor cells. This process is called
subliminal perception because the stimulus is beneath the threshold, or “limen” of awareness,
though obviously not beneath the absolute threshold of the receptors involved. (Perception of
stimuli that are above the level of conscious awareness is called supraliminal perception)

DYNAMICS OF PERCEPTION:

Human beings are constantly bombarded with stimuli during every minute and every
hour of every day. The sensory world is made up of an almost infinite number of discrete sensations,
which are constantly and minutely changing. According to the principles of sensation, such heavy
intensity of stimulation should serve to “turn off” most individuals, as the body protects itself from the
heavy bombardment to which it is subjected. Otherwise, the billions of different stimuli to which they
are constantly exposed might serve to confuse them totally and keep them perpetually disoriented in
constantly changing environment. However, neither of these consequences tends to occur, because
perception is not a function of sensory input alone; rather, it is the result of two different kinds of
inputs that interact to form the personal pictures—the perceptions—that each individual experiences.
One type of input is physical stimuli from outside environment; the other type of input is provided by
individual themselves in the form of certain predispositions, such as expectations, motives, and learning
based on previous experience. The combination of these two very different kinds of inputs produces for
each individual a very private, very personal picture of the world. Because each person is a unique
individual, with unique experiences, wants, needs, wishes, and expectations, it follows that each
individual’s perceptions are also unique. This explains why no two people see the world in precisely the
same way.

LEARNING
The learning process is fundamental to most aspects of consumer behaviour; consequently, it is an
extremely important topic to understand. Historically, much of the research that focused on learning as a
formal process concentrated on simple, mechanical learning. This typically included what have been
called classical conditioning and instrumental conditioning. Classical conditioning theory had its origin in
the work of Pavlov and is often exemplified by referring to the salivation of a dog at the sound of dinner
bell. In a learning situation such as this, the relevant action follows some triggering event. In instrumental
 46

conditioning the reverse is true. The sought response or action precedes what is called the conditioning
stimulus.
In a consumer behaviour context, instrumental conditioning has been called trial-and-error learning; that
is, a consumer recognises a personal desire for a particular product or service and proceeds to determine
the most preferred one by trying in turn what appear to be reasonable alternatives. It is not unusual to find
consumers using this method of selection when buying such products as lotions, toilet soap etc.
Most of the work in both classical conditioning and instrumental conditioning has involved
experimental psychologists using various animals, particularly rats. The assumption made by these
researchers is that the learning process in its simplest form occurs in all species, including human. Stated
more simply, it is basically the same wherever it is found. However, the more complex process of
symbolic learning—the involvement of what has been called thinking or ideation—is unique to human.

THE LEARNING PROCESS:

There are many definitions of learning, but one in particular is most appropriate to the subject of
consumer behaviour. Learning is defined as those changes in responses and response tendencies that
result from the effects of experience. This definition acknowledges that learned behaviour must
include changes in attitudes, emotions, evaluative criteria, and personality as well as the more easily
observed variations in physical behaviour that have taken place over time due to individual
experience. Some of these changes are often difficult to detect. It should be noted that the definition of
learning that is being used excludes changes in behaviour and response tendencies resulting from
physiological factors such as natural growth, deterioration due to the aging process, fatigue, or drugs.
Of course, it is quite appropriate to take these physiological factors into consideration when one is
attempting to affect the learning process.
Cognitive development theory assumes that children are active participants in their own development as
mature adult consumers. This means that through natural maturation and interactions with his or her
environment, the child moves through a series of stages in being able to organise market information and
experiences along with his or her thoughts about these. The stages and their content are the result of
interaction of personal factors, such as one’s rate of maturing, and environmental factors, such as child’s
personal, family experiences. It is important to note that research does show that cognitive skills are
related to age and generally increase with child’s age. Therefore, the learning process for children at
varying ages, as well as what is learned, may be quite different.

THE COMPONENTS OF THE LEARNING PROCESS:

The learning process can be broken down into several key components. These include drive, cue,
response, reinforcement, and retention. The natures of these are as follows: -
 47

Drive: Drive refers to any strong internal stimulus that impels action. It is a force that arouses an
individual and keeps him or her ready to respond and, thus, is the basis of motivation. A motive is
also an internal stimulus. However, it is directed toward a specific goal, whereas a drive is more
general state of being aroused. Traditionally, drives have been classified as either Primary or
Secondary. Primary drives are essentially based on innate physiological needs such as thirst, hunger,
pain avoidance, and sex. However, more recently these drives have been recognised to reflect also the
need for curiosity, exploration, or novelty. Secondary drives are learned; that is, they are acquired
over time through experience. An individual is subject to many drives of both types, the intensity of
which will vary from time to time. In some cases, this changing intensity is easy to explain, while in
others it is not.
Cue: Cues, as the term is used here, are stimuli that occur externally to the individual and can emanate
from any environmental sources. To be relevant in consumer behaviour, they must affect individual
market actions or response tendencies. This affect can arise through visual perception or through any other
human senses. It is frequently the marketing manager’s desire to create cue stimuli that trigger a move to
action that culminates in buying some specific goods or services as well as in visiting a particular store.
Although it is necessary to focus attention on the cue in consumer behaviour, it should not be forgotten
that in most situations the object of primary concern to the manager is the desired response. Most firms
make use of a concept called generalisation in their use of cue stimuli. Generalisation refers to the process
that enables the individual to respond to a new stimulus as he or she has learned to respond to a similar but
somewhat different one in the past. The use of variety of ads with a common theme in a promotional
campaign has been an attempt by advertisers to employ the generalisation concept and to reduce consumer
boredom. In some cases, for example, this can be facilitated by simply shortening 60-second television
commercials to 30-seconds. The appeal of this approach is enhanced because of its economy.
Response
Response refers to the outcome or what occurs as the result of the interaction among drive, cue, the
variables of the internal decision-making process, and environmental forces. The definition of
learning referred to earlier state that the outcome can take several forms of interest to the consumer
analysts. These include consumer attitude change. This objective may be illustrated by an example
from the public sector. A school board that has experienced a series of defeats of its request for
additional operating funds may believe that public attitudes toward the local school need to be altered.
Such an evaluation of situation by the board could lead them to initiate an informational campaign.
This effort may be directed toward supplying influential citizen groups with critical data on the
current state of the school and programme plans for coming year. In this situation, the desired
outcome of the action undertaken—the informational effort—is positive attitude change, the
assumption being that more favourable public attitudes will lead to subsequent success in passage of
the operating levy.
 48

Ina scientific sense, it is easier to study simple response such as eye movement or change in an
individual’s pulse rate following some stimulus than it is to focus on more complex market situations.
Reinforcement
Reinforcement involves the matching of the consequences or outcomes of a response with
anticipated benefits; that is, it is the extent to which the actual benefits of a response coincide with
what is considered acceptable, given the reason for action. Generally, the better the match between
expectation and outcome, the greater the probability that the same response will be made under
similar circumstances in the future. Bayton states, “When consumption or utilisation of the goal-
object leads to gratification of the initiating needs there is reinforcement.” It is necessary to keep in
mind that that the phrase “under similar circumstances” was used above. Sufficient variation can
occur to cause the consumer to deviate from what was learned previously. This variation can be
brought about by any number of variables. For instance, the consumer may simply feel differently,
once his or her drive state has been modified, or it may be that the cue was different. Still another
source of variation in the circumstances is the response alternatives open to the consumer.
Retention
The remembering of learned material and experiences over time is called retention. That which is
not retained is considered forgotten. The human ability to remember is of considerable importance to
those interested in consumer behaviour. Although there is substantial disagreement about the nature of
the forgetting process, most analysts agree that some forgetting does take place and, all other things
being equal, the more time that has passed since learning something, the less likely it is going to be
remembered. A number of other factors can also affect retention. Some of these include the clarity of
the message, the similarity of competing messages, the individual’s interest in the subject, and the
extent to which what was learned was consistent with one’s values and previous experience.

Despite the multiplicity of influences on retention, once some thing is learned, it appears that it is
never completely forgotten. Therefore, to say that a response tendency has been extinguished merely
means that the response in question has been repressed (generally through non-reinforcement), or it
may have been essentially been displaced by the learning of an alternative that is incompatible with
the original response.
ATTITUDE

The concept of attitude is one of the most prevalent and important concepts in consumer
behaviour. Indeed, in the social sciences generally. Interest in attitudes emanates from the belief that
knowledge of attitudes permits accurate prediction of consumer behaviour. Generally a consumer’s
attitudes can be thought of as his or her basic orientation for or against various alternative products,
services, retail outlets, and the like. Because attitudes form a coherent system of evaluative orientations,
they are important components in any model of consumer decision-making.
 49

The Meaning of Attitudes

Everyone has, on occasion, been asked to express his or her assessment of something. For
example, “ How do you like your new Santro car?” “How do you feel about your teacher?” etc. Thus,
although can provide a precise definition of “attitudes”, most have clear intuitive understanding of what
they are. Interestingly enough, even though there is a general agreement on the meaning of “attitudes” at
the intuitive level, there is a little agreement at the theoretical level. An attitude is an abstract concept in
that its structure or makeup cannot be directly observed. Thus, the nature of attitude fosters alternative
views regarding the underlying structure of attitude and, consequently, alternative definition.
The Classical Psychological Model
The classical definition is that an attitude is a mental and neutral state or readiness to respond
which is organized through experience and which exerts a directive and/or dynamic influence on
behaviour. It soon became popular to adopt the classical psychological model, which theorizes those
attitudes are made up of three basic components: (1) cognitive, (2) affective, and (3) behavioural. In terms
of consumer behaviour, the consumer behaviour, the cognitive component refers to the manner in which a
consumer perceives information about a product, service, advertisement, or retail outlet. This component
includes beliefs a consumer has about the support services a retailer offers as well as beliefs about the
relative merits of the product. In other words, this attitude component includes considerations such as
whether Coke or Pepsi tastes better, which has more carbonation, which has a better aftertaste, and which
is a better thirst quencher.
The affective component is the consumer’s overall feeling of like or dislike for an attitude object
(that is, a product, service, advertisement, retail outlet). Generally, marketing analysts use verbal
statements to measure the affective component. The affective and cognitive components are considered to
be highly correlated: that is, consumer analysts have observed that a consumer’s beliefs and feelings
toward a particular product are typically consistent.

The behavioural component is the consumer’s action tendency or expected behaviour, that is, his
or her intention. This “likelihood-of-buying” component is relevant to the product’s normal purchase
cycle. Thus, if a consumer indicates an intention to buy a Yamaha motorcycle, it is only reasonable to
expect her to buy that brand the next time she buys a motorcycle. Marketing strategists have been
particularly concerned about developing accurate and timely measures of the behavioural component
because of the relationship between a consumer’s action tendency and his or her actual purchase
behaviour.

The idea of attitudes being comprised of three major components has had considerable impact on
the thinking of consumer analysts and an especially pronounced impact in the area of advertising. The
 50

classical psychological model provided the basis for a conception of advertising effectiveness called the
“hierarchy of effects” hypothesis.
This model became widely accepted because it provided a concise and lucid,
although not completely valid, explanation of how attitudes were changed through advertising. The
relationship between the three-attitudinal components and the consumer’s movement from unawareness to
purchase is illustrated in the Hierarchy of Effects Model. Essentially, this model suggests that not only are
attitudes made up of three components, but also these components are arranged in a particular order; that
is, a consumer must have awareness and knowledge of a product (cognitive component) before a liking
and preference (affective component) for it occur. The validity of this model has been the subject of
extensive research and debate. There is, for example, some indication that an alternative hierarchy of
effects may exist under certain consumption situations. The fact remains that the hierarchy of effects,
model is conceptually founded on well-established psychological theory.
Furthermore, this model, highly regarded by practitioners, has provided considerable
direction for the development of promotional strategy. For example cigarette manufacturers, who are
under intense pressure from the FTC to reduce the tar and nicotine contents of their cigarettes, need to
aggressively promote their low tar brands to consumers who enjoy the “full-flavour” brands such as
Marlboro, Winston, and Kool. In order to facilitate acceptance of the brands (ignoring the obvious ethical
issues), the companies must first create awareness of the cigarettes and knowledge about their relative
“health” attributes. Next, the companies must create a liking and preference for the brands until consumers
are convinced of the advantage of smoking milder cigarettes. Finally, the company can seek trial and
repurchase of the brands.

Related Behavioural Movement toward

Dimensions Purchase

Purchase
Behavioural
Conviction

Preference
Affective
Liking

Knowledge

Awareness
Cognitive
Unawareness

Fig. 3.1: Hierarchy of Effects Model

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THE MULTI -ATTRIBUTE MODELS

The past decade has been characterised by the emergence of multi-attribute models of attitudes.
Although several models have been developed, the work of Fishbein has perhaps had the greatest impact.
Fishbein introduced beliefs as the cognitive foundation on which attitudes are built. Attitudes are
functionally related to intentions, according to Fishbein, which, in turn predict behaviour.

(1). Evaluative criteria: desired outcomes from choice or use of an alternative expressed in the form of the
attributes or specifications used to compare various alternatives.
(2). Beliefs: information, which links a given alternative to a specified evaluative criterion, specifying the
extent to which the alternative possesses the desired attribute.
(3) Attitude: a learned predisposition to respond consistently in a favourable manner with respect to a
given alternative.
(4) Intention: the subjective probability that beliefs and attitudes will be acted upon.

Evaluative criteria

Beliefs

Attitudes

Intentions

Fig 3.2: The Relationship of Evaluative Criteria, Beliefs, Attitudes, and Intentions

The multi-attribute models that have been developed to explain the process by which consumers
form beliefs and attitudes fall into two major categories, compensatory and non-compensatory.
Compensatory models--such as the expectancy value model and the attribute adequacy model--are models
in which a weakness of one attribute may be compensated for by strengths of another attribute. Non-
compensatory models--such as the conjunctive model, disjunctive model, and lexiographic model--are
those models in which a weakness of one attribute is not compensated for by strength of another attribute.
A brief explanation of the major compensatory and non-compensatory models are presented below.

COMPENSATORY MODELS
 52

Expectancy-Value Model: This model assumes that each alternative will be evaluated on more than
one attribute. Judgements are based on beliefs about whether or not an object actually possess an attribute
and the evaluation of the “goodness or badness” of those beliefs. Each brand is evaluated individually on
all attributes and the total evaluation is the sum of the ratings of each attributes. The consumer selects the
brand with the highest overall evaluation.

Attribute Adequacy Model: In the attribute adequacy model, an evaluation is arrived at in a manner
similar to that discussed above, with the exception that an explicit assessment is made of the differences
between “ideal and actual” of each attribute possessed by the object under consideration.

NON-COMPENSATORY MODELS

Conjunctive Model: In the case of this model, the consumer establishes a minimum acceptable level
for each product attribute. A brand is determined to be acceptable only if each attribute equals or exceeds
that minimum level. A lower than acceptable rating of one attribute will lead to a negative evaluation and
rejection of the product. For example, a stereo component system may be evaluated as completely
satisfactory in terms of sound reproduction and appearance but be rejected because it is not compact
enough in size.

Disjunctive Model: The disjunctive model suggests that consumers establish one or more attributes as
being dominant. A brand will be evaluated as acceptable only if it exceeds the minimum specified level of
these key attributes. To continue with the example of the stereo component set, assume that sound
reproduction and mechanical characteristics are the dominant considerations. Any set measuring up to
expectations on these attributes will be regarded as acceptable no matter what its size, colour, and so on.

Lexiographic Model: According to the lexiographic model, the consumer ranks product attributes
from most important to least important. The brand that dominates on the most important criterion receives
the highest evaluation. If two or more brands tie, the second attribute is examined and so on until the tie is
broken.

While there is a distinct possibility that consumers use each of these models in certain
circumstances, there is growing evidence that the expectancy-value model holds the greatest promise. The
next section contains a detailed description of the two dominant expectancy-value models.

ATTITUDES TOWARDS ALTERNATIVES

EXPECTANCY- VALUE MODELS

 53

The dominant focus of consumer researchers in explaining attitudes toward alternatives has been
the expectancy-value mode, particularly the Rosenberg Model and the Fishbein Model.
The Rosenberg Model

The Rosenberg Model considers attitudes to contain two variables: (1) values (approximately
equivalent to “evaluative criteria”) and their importance in arriving at an attitude and (2) perceived
instrumentality (the degree to which the taking of a point of view or following an action will either
enhance or block the attainment of a value).
For example, if “low price” is an important value (evaluative criterion) and the consumer has come to
believe that brand A offers a low price, then the perceived instrumentality of brand A would be high.
Rosenberg’s model is expressed as follows:

A0 = ∑ (Vied) (PIi)
i=1

where:
A0 = the overall evaluation of the attractiveness of alternative 0;
VIi = the importance of the ith value;
PIi = the perceived instrumentality of alternative 0 with respect to the value;
N = the number of pertinent or salient values.

In its pure form, the Rosenberg Model calls for the measurement of value importance on a scale
of 21 categories ranging from “gives me maximum satisfaction” (+10) to “gives me maximum
dissatisfaction” (-10). From the earlier example, the “low price” might receive a rating of +10. Perceived
instrumentality is assessed using 11 categories ranging from “the condition is completely attained through
a given action” (+5) to “the condition is completely blocked through undertaking the given action” (-5).
Perhaps brand A in the above example would be given a score of +5 on this variable.

The Fishbein Model

The Fishbein Model is similar in many ways to Rosenberg’s formulation, but there are subtle
differences. His first component is belief, defined as the probability that an object does or does not have a
particular attribute. The second component is an “affective term,” normally stated in terms of “good or
bad”. It specifies whether or not the possession or lack of possession of the attribute in question is positive
or negative. Fishbein’s model is expressed as follows.
 54

A0 = ∑ Bi, ai
i=1
where:
A0 = attitude toward the object;
Bi = the ith belief about the object;
ai = the evaluation of the object;
N = the total number of beliefs.

That is, the formula calls for belief (Bi) and evaluation (ai) scores to be multiplied for each belief.
Then these scores are summed to arrive at a single attitude ranking.

This initial formulation by Fishbein was later revised to reflect the results of major research
efforts. The revised Fishbein Model stated below has had a dramatic impact on the research and
application of attitudes in consumer behaviour.

Aact = ∑ Bi ai
i =1

where:
Aact = attitude toward the act under consideration;
Bi = the ith belief toward the act;
ai = the evaluation of the object;
N = the total number of beliefs.

The differences between A0 and Aact are not in the formulation but in the questions utilized to assess B
and a components. The questions here focus on one specific purchase-and-use situation and attempt to
evaluate the consequences. Belief may now be interpreted as the probability that a product attribute will
exist or that the act of purchase will give certain consequences. The ai component evaluates that belief
along a “good-bad” dimension.

An Application of the Expectancy-Value Model

 55

Most of the marketing applications have not strictly followed either the Rosenberg Model or the
Fishbein Model. Rather, the applications have used some modification of them. Consider, for example, the
following application.

n
A0 = ∑ Wi Bib
i=1
where:

A0 = attitude toward a particular alternative 0;

Wi= weight or importance of evaluation criterion i;
Bib= evaluative aspect or belief with respect to utility of alternative b to satisfy evaluative
criterion i;
n = number of evaluative criteria important in selection of an alternative in category under
consideration.

In this formula, Wi is the weight or importance of the evaluative criterion, and Bib is the
evaluation of the alternative along criterion. This rating is performed for each evaluative
criterion, and the summed score is attitude toward the alternative.

Questions for Discussion.

1. What are the basic differences among the three major personality theories? How might the
marketing strategies developed by proponents of each of these theories differ from one another?
2. For what types of products is life-style research most appropriate? In what ways would a
marketing manager make the most productive use of information received from life-style
research?
3. Because learning is basic to human existence, is it an appropriate area for marketing managers to
attempt to manipulate? Explain your answer.
4. Is it possible to “unlearn” something? Does this affect consumer behaviour? Explain.
5. Distinguish between the classical psychological model and the multi-attribute model. Which
model holds the greatest promise for marketing strategists?
 56

UNIT-4

DIFUSION OF INNOVATIONS

This unit examines a major aspect of consumer behaviour—the acceptance of new products and
services. The introduction of new product is vital to both consumer and marketers. For the consumer, new
products represent an increased opportunity for better satisfaction of personal. Social, and environmental
needs. For the marketers, new products provide an important mechanism for keeping the firm competitive
and profitable.

The framework for exploring consumer acceptance of new product is drawn from the area of
research known as the Diffusion of Innovations. Consumer researchers who specialize in diffusion of
innovations are primarily interested in understanding (a) how the acceptance of new product spreads
within a market, and (b) the decision making process that led the consumer to accepting or rejecting the
new product. This discussion of the diffusion of innovations concentrates on two closely related processes:
the Diffusion process and the Adoption process. In broadest sense, diffusion is a macro process
concerned with spread of new product (an innovation) from its source to the consuming public. In contrast,
adoption is a micro process that focuses on stages through which an individual consumer passes in making
the decision to accept or reject a new product. In addition to an examination of these two interrelated
processes, a profile of the of consumer innovator is presented here—those who are the first to purchase a
new product. The ability of marketers to identify and reach this important group of consumers plays a
major role in the success or failure of new product introduction.

THE DIFFUSION PROCESS

The diffusion process is concerned with how innovations spread—how they are assimilated—
within a market. More precisely, diffusion is a process by which the acceptance of an innovation (a new
product, a new service, new idea, new practice, new market) is spread by communication (mass media,
salespeople, informal conversation) to members of a social system (a target market) over a period of time.
This definition includes the four basic elements of diffusion process: (1) the innovation, (2) the channel of
communication, (3) the social system, and (4) time.

The Innovation

There is no universally accepted definition of the term “ product innovation” or “new product”.
Indeed, the various approaches that have been taken to define a new product can be classified as firm-
oriented, product-oriented, market-oriented, and consumer-oriented.
 57

Firm-oriented definitions: A firm-oriented approach treats the newness of a product from the perspective
of the company producing and marketing it; that is, if the product is “new” to the company, it is
considered new. This definition ignores whether or not the product is actually new to the marketplace (i.e.,
to the competitors or consumers). Consistent with this view, copies or modifications of a competitors
product would qualify as new. While this definition has considerable merit if the objective is to examine
the impact that a “new” product has on the firm, it is not very useful if the goal is to understand consumer
acceptance of a new product.

Product-oriented definitions: In contrast to firm-oriented definitions, a product-oriented approach

focuses on the features inherent in the product itself. And the effects these features are likely to have on
consumer’s established usage patterns. One product-oriented framework considers the extent to which a
new product is likely to disrupt established behaviour patterns. It defines three types of product
innovations: continuous, dynamically continuous and discontinuous.

A continuous innovation has the least disruptive influence on established pattern. It involves the
introduction of a modified product, rather that a totally new product. Examples include Gel toothpaste,
new model of old car etc.

A dynamically continuous innovation is somewhat more disruptive than a continuous innovation,

but still does not alter established behaviour patterns. It may involve the creation of new product or the
modification of an existing product. Examples include CD player, erasable-ink pen etc.

A discontinuous innovation requires consumers to adopt new behaviour patterns. Examples

include home computer, videocassette recorder etc.

Another product-oriented definition suggests that the extent of product “newness” can be
measured in terms of how much impact its physical features or attributes are likely to have on user
satisfaction. Thus, the more satisfaction a consumer derives from a new product, the higher it ranks on the
scale of “newness.” The concept leads to the classification of products as artificially new, marginally new,
or genuinely new. A genuinely new product has features that satisfy the user in a manner that differ
significantly from that of an older product. New product that have been judged as having enough
“newness” to qualify as genuinely new include frozen breakfast, in-home medical test kit etc.

Market-oriented Definitions. A market-oriented approach judges the newness of a product in terms of

how much exposure consumers have to the new product. Two market-oriented definitions of product
innovation have been used extensively in consumer studies:
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1. A product is considered new if it has been purchased by only a relatively small (fixed) percentage
of the potential market.
2. A product is considered new if it has been on the market for relatively short (specific) period of
time.

Both of these market-oriented definitions are basically subjective because they leave to the researchers the
task for establishing the degree of sales penetration within which the product can be called an innovation
(e.g., the first five percent to use the new product) or how long a product can be on the market and still be
considered “new” (e.g., the first three months the product is available)
Consumer-oriented Diffusions. While each of the three approaches described above have been useful to
consumer researchers in their attempt to study the diffusion of innovations, some researchers have
suggested that a consumer-oriented approach is the most appropriate way to define an innovation. In this
context, a “new” product is any product that a potential consumer judges to be new. In other words,
newness is based on consumer’s perception of the product, rather than on physical features or market
realities. Although the consumer-oriented approach has been endorsed by some advertising practitioners
and marketing strategists, it has received little sympathetic attention from consumer researchers.
Product Characteristics that Influence Diffusion All products that are “new” do not have equal
potential for consumer acceptance. Some product seems to catch on almost overnight while others take a
very long time to gain acceptance. Some new products never seem to achieve widespread consumer
acceptance.
It would reduce the uncertainties of product marketing if marketers could anticipate how consumers will
react to their product. For example, if the marketer new that a product contained feature that were likely to
inhibit its acceptance, the marketer could develop a promotional strategy that would compensate for these
features, or decide not to market the product at all. Although there are no precise formulas by which the
marketers can evaluate a new product’s likely acceptance, diffusion researchers have identified five
product characteristics that seem to influence consumer acceptance of new products: (1) relative
advantage, (2) compatibility, (3) complexity, (4) trialability, and (5) observability.

Relative advantage is the degree to which potential customers perceive a new product as
superior to existing substitutes. An outstanding example of an innovation that offers users a relative
advantage in their ability to communicate is the facsimile machine (or Fax).

Compatibility is the degree to which potential consumers feel a new product is consistent with
their present needs, values, and practices. For example, it is not too difficult to imagine men making the
transition from permanent razors—involving disposal of only the blade—to fully disposable razors that are
completely thrown away after the blade becomes dull.
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Complexity is the degree to which a new product is difficult to understand or use. Clearly, the
easier it is to understand and use a new product, the more likely it is to be accepted. For example, the
acceptance of instant coffee packet is due to its ease of preparation and use.

Trialability is the degree to which a new product is capable of being tried on a limited basis. The
greater the opportunity to try a new product, the easier it is for consumers to evaluate it. In general, it
would seem that frequently purchased household products tend to have qualities that make trial relatively
easy. For instance, for many supermarket products it is possible for consumers to make a trial purchase of
a new brand in a smaller quantity than they might usually purchase. Marketers of such products recognise
that smaller-than-average sizes tend to stimulate new-product trial.

Observability (or communicability) is the ease with which a product’s benefits or attributes can
be observed, imagined, or described to potential customers. Products that have a high degree of social
visibility, such as fashion items, are more easily diffused than products that are used in private, such as
brand of toothpaste. Similarly, a tangible product is promoted more easily than an intangible product (i.e.,
service).

It is important to recognise that each of these product attributes—relative advantage,

compatibility, complexity, trialability, and observability—is dependent on consumer perception. A product
that is perceived as having a strong relative advantage, as fulfilling present needs and values, as easy to try
on a limited basis, and as simple to understand and to examine, is more likely to be purchased than a
product that is not so perceived. Moreover, a particular innovation may diffuse differently in different
culture.

Resistance to Innovation

What makes some new products almost instant success, while others struggle to achieve
consumer acceptance? To help answer such questions, a model of innovation resistance has been
developed in an attempt to provide further insights into the adoption and diffusion processes. The product
characteristics of an innovation help to determine the extent of resistance, which increases with:
1. Low perceived relative advantage;
2. Low perceived compatibility;
3. Low trialability;
4. Low communicability; and
5. High complexity.

The Channels of Communication

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How quickly an innovation spreads through a market depends to a great extent on

communications between the marketers and consumers, and communication among consumers.
Researchers interested in diffusion pay particular attention to the product related information through
various communication channels, and to the impact of both the messages and the channels on adoption or
rejection of new products. Central concern has been the relative influence of impersonal sources (e.g.,
advertising and editorial matter) and interpersonal sources (salespeople and informal opinion leaders). One
major stream of research has focused on the relative importance of certain types of information sources on
early versus later adoption of new products. Specifically, the following generalisations gleaned from
diffusion research indicate that, relative to later adopters, the early adopters:

1. have more change-agent contact (e.g., with salespeople)

2. have greater exposure to mass-media communication channels
3. seek information about innovations more frequently
4. have greater knowledge of innovations
5. have a higher degree of opinion leadership.
In recent years, a variety of new channels of communication have been developed
to inform consumers of innovative products and services. In the process of the growth of interactive
advertising, the consumers become an important part of communication, rather than just the message
recipient.

The Social System

The diffusion of a new product usually takes place in a social setting—frequently

referred to as a social system. In the context of consumer behaviour, the terms Market Segment and Target
Market are synonymous with the term Social System used in diffusion research. A social system is a
physical, social, or cultural environment to which people belong and within which they function. The
orientation of a social system, with its own special values or norms, is likely to influence the acceptance or
rejection of new products. If the social system is modern in orientation, the acceptance of innovation is
likely to be high. In contrast, if a social system is traditional in orientation, innovations that are perceived
as radical or as infringements on established custom are likely to be avoided. The following characteristics
typify a modern social system:

• A positive attitude toward change.

• An advanced technology and skilled labour force.
• A general respect for education and science.
• An emphasis on rational and ordered social relationship rather than on emotional ones.
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• An outreach perspective, in which members of the system frequently interact with outsiders, thus
facilitating the entrance of new ideas into the social system.
• The members of the system can readily see themselves in quite different roles.

The orientations of a social system (either modern or traditional) may be national in scope and
influence members of an entire society, or may exist at the local level and influence only those who live in
a specific community. The key point is that a social system’s orientation is the climate in which the
marketers must operate in attempting to gain acceptance for their new products.

Time
Time is the backbone of the diffusion process. It pervades the study of diffusion in three distinct
but interrelated ways: (1) purchase time, (2) the identification of adopter categories, and (3) the rate of
adoption.

Purchase Time: Purchase time concerns the amount of time that elapses between the consumer’s initial
awareness of a new product and the point at which he or she purchases or rejects it. Purchase time is an
important concept because the average time a consumer takes to adopt a new product is a predictor of the
overall length of time it will take for new product to achieve widespread adoption. For example, when the
individual purchase time is short, a marketer has reason to expect that the overall rate of diffusion will be
faster than when the individual purchase time is long, as in the purchase of a personal computer. Another
aspect of the impact of time on the adoption and diffusion process is how an innovation, over time, moves
toward becoming a necessity in the minds of adopter within a particular society.

Adopter Categories: The concept of adopter categories involves the determination of a classification
scheme that indicates where a consumer stands relative to other consumers in term of when he or she
adopts a new product. Five adopter categories are frequently cited in the diffusion literature: innovators,
early adopters, early majority, late majority, and laggards. Instead of using the classic five-category
adopter scheme, many consumer researchers have used other classification schemes, most of which consist
of two or three categories that compare innovators or early triers with later triers or non-triers.

Rate of Adoption: The rate of adoption is concerned with how long it takes for a new product to be
adopted by members of a social system; that is, how quickly a new product is accepted by those who will
ultimately adopt it. Recent research has shown that the rate of adoption for new product generally has been
increasing (i.e., getting shorter). In the marketing of new products, the objective is usually to gain wide
acceptance of the product as quickly as possible. Marketers desire a rapid rate of product adoption in order
to penetrate the market and establish market leadership before competition takes hold. A penetration
policy is usually accompanied by a relatively low introductory price designed to discourage competition
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from entering the market. Rapid product adoption also demonstrates to marketing intermediaries
(wholesalers and retailers) that the product is worthy of their full and continued support. Under certain
circumstances, marketers might prefer to avoid a rapid rate of adoption for a new product. For example,
marketers who wish to employ a pricing strategy that will enable them to recoup their development costs
quickly might follow a skimming policy—they first make the product available at a very high price to
consumers and then gradually lower the price in a stepwise fashion in order to attract additional market
segments at each price reduction. In addition to how long it takes from introduction to the point of
adoption (e.g., when the purchase actually occurs) it is useful to track the extent of adoption (i.e., the
diffusion rate).
THE ADOPTION PROCESS
The second major process in the diffusion of innovation is adoption. The focus of this process is the stages
through which an individual consumer passes in arriving at a decision to try or not to try, to continue
using or to discontinue using a new product. (The adoption process should not be confused with adopter
categories.)
Stages in the Adoption Process
It is often assumed that the consumer moves through five stages in arriving at a decision to purchase or
reject a new product: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (4) adoption (or rejection).
The assumption underlying the adoption process is that consumers engage in extensive information search,
while consumer involvement theory suggests that for some products limited information search is likely.
The stages in the adoption process have been described as follows:

1. Awareness: During the first stage of adoption process, consumers are exposed to the product
innovation. This exposure is somewhat neutral, since they are not yet sufficiently interested to
search for additional product information.
2. Interest: When consumers develop an interest in the product or product category, they search for
information about how the innovation can benefit them.
3. Evaluation: Based on their stock of information, consumers draw conclusions about the
innovation or determine whether further information is necessary. The evaluation stage thus
represents a kind of “mental trial” of the product innovation. If the evaluation is satisfactory, the
consumers will actually try the product innovation; if the mental trial unsatisfactory, the product
will be rejected.
4. Trial: At this stage, consumers actually use the product on a limited basis. Their experience with
the product provides them with critical information they need to adopt or reject.
5. Adoption: Based on their trials and /or favourable evaluation, consumers decide to use the
product on a full rather than limited basis or they decide to reject it.
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A recent study of the consumer decision process suggests that it may be appropriate to add two
additional stages between trial and adoption—direct product experience (consequence) and product
evaluation (confirmation). The adoption of some products and services may have minimal consequences,
while the adoption of other innovations may lead to major behavioural and life style changes. Examples of
innovations with such major impact on society include the automobile, the television, and the electric
refrigerator.

Limitations of Adoption Process

Although the traditional adoption process model has been instructive for consumer researchers, it
has been criticised for having following limitations:
• It does not adequately acknowledge that a need or problem recognition stage may precede the
awareness stage.
• It does not adequately provide for the rejection of a product after its trial (i.e., a consumer may
reject the product after trial or never use the product on a continuous basis).
• It does not adequately recognise that evaluation occurs throughout the decision-making process
and not solely at the evaluation stage.
• It does not adequately account for the possibility that the five stages may not always occur in the
specific order suggested, nor does it consider that some of the stages may in fact be skipped.
• Finally, it does not explicitly include post-purchase evaluation, which can lead to a strengthened
commitments, or to a decision to discontinue use.

To overcome the limitations discussed above, the traditional adoption process model has been updated
into a more general decision-making model—the innovation decision process model. The five
stages of the revised adoption process model are:

1. Knowledge: Consumers are exposed to the innovation’s existence and gain some understanding
of how it functions.
2. Persuasion (attitude formation): Consumers form favourable or unfavourable attitudes toward the
innovation.
3. Decision: Consumers engage in activities that lead to a choice to adopt or reject the innovation.
4. Implementation: Consumers put an innovation into use.
5. Confirmation: Consumers seek reinforcement for their innovation decision, but may reverse this
decision if exposed to conflicting messages about the product.
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The innovation decision process model is more comprehensive than the earlier adoption process
model and overcomes many of its basic limitations. It is much more attuned to the realities faced by the
marketers launching a new product.

A PROFILE OF THE CONSUMER INNOVATOR

Consumer innovators can be defined as the relatively small group of consumers who are the
earliest purchasers of a new product. The problem with the definition, however, concerns the concept
“earliest”, which is, after all, a relative term. Sociologists have treated this issue by sometimes defining
innovators as the first 2.5 percent of the social system to adopt an innovation. In a good number of
marketing diffusion studies, however, consumer researchers have derived the definition of consumer
innovator from the status of new product under investigation. For example, if the researcher assesses the
new product as an innovation for the first three months of its availability, then he or she defines the
consumers who purchase it during this period as innovators.

Other researchers have defined innovators in terms of their innovativeness—that is, their
purchase of some minimum number of new products from a selected group of new products. For instance,
in the adoption of new fashion items, innovator could be defined as those consumers who purchased more
than one fashion products from a group of ten new fashion products. Non-innovators could be defined as
those who purchased none or only one of the new fashion products.

The Innovator is an Opinion Leader

In discussing the characteristics of the opinion leader, it has been indicated that a strong tendency
for consumer opinion leader to be innovators. In the present context, it is worthwhile to note that an
impressive number of studies on the diffusion of innovations have found that consumer innovators are
likely to provide other consumers with information and advice about new products, and that those who
receive such advice frequently follow it. Thus, in the role of opinion leader, the consumer innovator often
influences the acceptance or rejection of new products. If innovators are enthusiastic about a new product
and encourage others to try it, the product is likely to receive broader and quicker acceptance. If the
consumer innovators are dissatisfied with a new product and discourage others from trying it, its
acceptance will be severely limited and it may die a quick death. For products that do not generate much
excitement (either positive or negative), consumer innovators may not be sufficiently motivated to provide
advice. In such cases, the marketer not only must rely almost entirely on mass media and personal selling
to influence future purchasers, but the absence of informal influence is also likely to result in a somewhat
slower rate of acceptance (or rejection) for the new product. Since motivated consumer innovators can
speed up acceptance or rejection of a new product, they influence its eventual success or failure.
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Personality Traits

This section will briefly highlight what researchers have learned about the personality of the
consumer motivator. First, consumer motivators have been found to be less dogmatic than non-innovators.
They tend to approach new or unfamiliar products with considerable openness and little anxiety. In
contrast, non-innovators seem to find new products threatening, to the point where they prefer to delay
purchase until the product’s success has been clearly established.

Consistent with their open-mindedness, consumer innovators are also inner-directed; that is.
They rely on their own values or standards in making a decision about a new product. In contrast, non-
innovators are other-directed, tending to rely on others for guidance on how to respond, rather than
trusting their own personal values or standards.

Researchers have isolated a link between variety seeking and certain personality traits and
purchase behaviours that give insights into consumer innovators. Variety-
seeking consumers have been found to be brand switchers and purchasers of innovative products and
services. They have also been found to possess the following innovator-related personality traits; open-
mindedness (i.e., low dogmatism), to be extroverts, to be liberal, low in authoritarianism, able to deal with
complex or ambiguous stimuli, and to be creative.

To sum up, consumer innovators seem to be more receptive to the unfamiliar; they are more
willing to rely on their own values or standards than on the judgement of others. They are also willing to
run the risk of a poor product choice in order to increase their exposure to new product that will be
satisfying. For the marketer, the personality traits that distinguish innovators from non-innovators suggest
that need for separate promotional campaigns for innovators and later adopters.

Consumer innovators are more likely to react favourably to informative or fact-oriented

advertising that appeal to their strong interest in the product category, and to readily evaluate the merits of
a new product on the basis of their own personal standards. To reach non-innovators, it would seem
appropriate to feature reference group settings and to use a recognised and trusted expert or celebrity to
appeal to their other-directed responsiveness to authority figure. In terms of category width, which
purports to measure an individual’s risk-handling orientation, the consumer innovator has been found to be
a broad categorizer, whereas the non-innovator tends to be a narrow categorizer. Broad categorizer tends
to try many new products, even though by doing so they subject themselves to the risk of acquiring
unsatisfactory products. On the other hand, narrow categorizers are so afraid of making poor product
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choice that they limit their trial of new products, even though they may forgo the benefits of desirable new
products.

Perceived Risk

Perceived risk is another measure of a consumer’s tendency to try new brands or products.
Perceived risk can be thought of as the degree of uncertainty or fear about the consequences of a purchase
that a consumer feels when considering the purchase of a new product. For example, consumers
experience uncertainty when they are concerned that a new product will not work properly or be as good
as other alternatives. Research on perceived risk and trial of new products overwhelmingly indicates that
the consumer innovator is a low-risk perceiver. Consumers who perceive little or no risk associated with
the purchase of a new product are much more likely to purchase it than consumers who perceive a great
deal of risk. In other words, high-risk perception limits innovativeness.

Venturesomeness

Venturesomeness—a personality-like variable—is a broad based measure of a consumer’s

willingness to accept the risk of purchasing new products. Measures of venturesomeness have been used to
evaluate a person’s general values or attitudes towards trying new product. Research that has examined
venturesomeness has generally found that consumer who indicate a willingness to try new products tend to
be consumer innovators (as measured by their actual purchase of new products). On the other hand,
consumers who express a reluctance to try new products are in fact less likely to purchase new products.
Therefore, venturesomeness seems to be an effective barometer of actual innovative behaviour. Consistent
with their venturesomeness and lowered risk perception, consumer innovators are also likely to learn about
innovations earlier than others. They also tend to be more intrigued with the prospect of “newness” than
are non-innovators. Consumer innovators are also more likely to be deal-prone (to take advantage of
special promotional offers such as free samples etc.). Consumer innovators are also likely to be heavy
users of the product category in which they innovate. Specifically, they would purchase larger quantities
of the product and consume more than non-innovators.
Media Habits

Comparisons of the media habits of innovators and non-innovators across such widely diverse
areas of consumption of fashion clothing and new automotive services suggest that innovators have
somewhat greater exposure to magazines than non-innovators—particularly to special interest magazines
devoted to product category in which they innovate. Special-interest magazines frequently point to the fact
that they reach innovative consumers in their own ads aimed at prospective advertisers. It appears that
consumer innovators are likely to have less exposure to television than non-innovators. Studies concerning
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the relationship between innovative behaviour and exposure to other mass media, such as radio and news
papers, have been too few and the results too varied to draw any useful conclusions.

Social Characteristics

Consumer innovators are more socially accepted and socially involved than non-innovators. For
example, innovators are more socially integrated into the community, better accepted by others, and more
socially involved—that is, they are likely to belong to more social groups and organisations—than non-
innovators. This greater social acceptance and involvement of consumer innovators may in part explain
why they function as effective opinion leaders.

Demographic Characteristics

It is reasonable to assume that the age of consumer innovator is related to specific product
category in which he or she innovates; however, research suggests that consumer innovators tend to be
younger than either late adopters or non-innovators. This is no doubt due to the fact that many of the
products selected for research attention are particularly attractive to or are targeted by marketers to
younger customers.
Consumer innovators have more formal education, higher personal or family
incomes, and more likely to have higher occupational status than later adopters or non-innovators. In other
words, innovators tend to be more upscale than other consumer segments.

Do consumer innovators in one product category tend to be consumer innovators in other product
categories? The answer to this strategically important question is a guarded “NO”. The overlap of
innovativeness across product categories seems to be limited to product categories that are closely related
to the same basic interest area. Consumers who are innovators one new food product or one new appliance
are more likely to be innovators of the other new products in the same general product category. In other
words, no single or generalised consumer-innovativeness trait seems to operate across broadly different
product categories, evidence suggests that consumers who innovate within a specific product category,
will innovate again within the same product category.

While there is little evidence to support the notion of a “universal” consumer innovator, there is
evidence to support the existence of a relatively small number of consumers who respond to new offerings
across the variety of loosely related product and service categories. These consumers, who have been
labelled, super innovators, were among the first to purchase a new product or service in three or more
areas.
Questions for discussion
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1. What are the essential differences between “products”, “market”, and “consumer”--oriented
definition of a new product? Which definition do you feel is most suitable for marketers?
2. Compare and contrast the adoption and diffusion processes. Discuss each process in terms of the
market acceptance of fax machines.
3. Explain the characteristics of consumer innovators with their implication on marketing strategy
development.
4. Explain the concepts of continuous innovation, dynamically continuous innovation, and
discontinuous innovation?
5. Outline the different product characteristics that influence diffusion.
6. What are the major resistances to innovation?