Meaning and definition of consumer

Behaviour
• Consumer Behavior is the behaviour that the
consumers display in defining the product,
selecting the product, purchasing the product
and finally disposing the product.
• OR
• Consumer Behaviour is the action of the
people that they use in purchasing goods and
services
 Consumer Behaviour
• Consumer Behaviour studies individual, group
and organization. Consumer behaviour is
application oriented discipline of the study.
• Consumer behaviour is complex and
multidimensional process and it reflects
totality of decision with respect product
acquisition, consumption and disposal
activities
 Consumer Behaviour
• Consumer Behaviour has two parts , visible part
and invisible part.
• Purchase behaviour is end result of long process
of consumer decision making.
• Consumer Behaviour is subset of Human
behaviour and it is difficult to draw distinct line
between human behaviour and consumer
behaviour.
• The study of Consumer Behaviour is derived from
Psychology, Sociology, Cultural Anthropology and
economics.
 Consumer Behaviour
CONSUMER BEHAVIOUR IS DYNAMIC.
CB INVOLVES INTERACTIONS AMONG
PEOPLE’S THINKING , FEELING, ACTIONS.
 Why we Study Consumer Behaviour
• We study consumer behaviour because
• There is mismatch between what customer says and
what he does.
 Purchase behaviour is highly unpredictable as
customer may change his mind in the last minutes.
 Due to diversity in the market, consumer behaviour
emerged as a separate discipline of study.
 The other factors which contributed for the
development of consumer behaviour are shorter
product life cycle, growth of services, growing
environmental concern, information explosion,
opening up of international market etc.
 Consumer Behaviour
• Consumer do not always reacts as per the
theory of economics.
• Consumer preference is changing and market
is highly diversified.
• Research suggests that consumers dislike
identical product and they prefer
differentiated product.
 Consumer Vs Customer
• Customer is defined in the context of a
particular firm.
• Customer is defined as a person who regularly
purchase the product from a particular store.
• Customer might be initiator/ influencer/
decider/ purchaser.
 AIO Analysis
• AIO ( activities, interest and opinion ) analysis
is done to create psychographic profile of the
customers.
• AIO analysis is done to analyze need, motives,
attitude, perception , life style of the person.
• To conduct AIO analysis , a certain statements
are asked to customers.
• AIO analysis is also known as VALS ( Value and
life style analysis).
 VALS Model
• Stanford research institute ( SRI) developed a
popular approach for psychographic
segmentation called VALS model.
• This approach was used in USA to segment the
customers based on their value and life style.
• In the year 1978, researcher proposed VALS-2
model.
• VALS-2 model puts less emphasis on activities
and interest and more on psychological driver.
• VALS-2 model suggests that consumer's life style
is function of motivation and resources.
 VALS-2 Model
• VALS-2 model classified the customers into eight
segments.
• Innovators
• Thinkers.
• Believers
• Makers
• Strivers
• Survivors
• Experiencers
• Achievers
 Factors influencing Consumer
Behaviour
• Environment- Stimulus Model
 Environment- Stimulus Model
• Environment- stimulus model is like input- process –
output.
• Market stimuli, environment stimuli and buyer's
characteristics is input, need recognition to evaluation
of alternatives is process while purchase and post
purchase behaviour is output.
• The information search depends on various factors.
• “ Higher the past experience and knowledge, lesser
would be information search.”
• The post purchase dissonance depends on search
regret.
 Cognitive Dissonance
• Cognitive dissonance occurs when customers
feel dissatisfaction after purchasing the
product.
• Cognitive dissonance occurs because every
major purchase decision involves compromise
and there is opportunity cost of every
purchase decision.
 Family Buying Process
• Social class and family are two important
reference group which significantly influence
consumer behaviour.
• Every family is household but every household is
not family.
• Family can be classified into
• Married couple
• Nuclear Family
• Extended Family
 Roles of the Family
• Family works for economic well being of the
family members and it provides emotional
support to them.
• Parents significantly influence buying behaviour
of their children because parents provides
information about ritual/ tradition/ custom and
belief.
• Parental style also influence consumer behaviour.
• Permissive Vs Restrictive
• Authoritative Parental Style
 Roles of the Family
• Family works like a socialization agent. It develops
moral value/ ethics / integrity among the family
members.
• Mothers work like a very strong socialization
agent.
• There is close mother- daughter linkage. There is
intergenerational impact and this impact is
transferred from one generation to next
generation.
• Daughter tend to follow the brand preferred by
her mother. ( Pears, surf excel, Dettol,Horlicks) .
 Roles of the Children
• Children use pressure tactics to influence their
parent.
• Children reacts more positively towards
advertisements while teens like the brand which
is disapproved by their parents.
• There are three market of children.
• Children as a influencer
• Children as primary market ( Toys/games/
sweet/snacks)
• Children as future market.
 Role of the wife
• 85% of the purchase decision related to car is
influenced by the wife. They also play very
important role in the purchase of home
appliances.
• Types of purchase decision
• Husband dominated decision
• Wife dominated decision
• Joint decision
 Model & its importance
• Model is simplified representation of reality. The
builder of the model simplifies only those aspects
which are relevant for consumers as well as
researcher.
• Each model is formulated based on assumption.
• Model helps the researchers to understand the
logical pattern of behaviour of customers.
• Model identifies those variables which influence
consumer behaviour.
• Model also establishes interrelation between
variables.
 Model of Consumer Behaviour
• Researcher proposed different kinds of model to
explain consumer behaviour.
• Economic Model
• Passive Model
• Cognitive Model
• Nicosia Model
• Engel Blackwell Model
• Psychoanalytic Model
• Black box model
• Howard Sheth Model
 Economic Model
• This model suggest that consumers are rational
decision maker.
• They evaluate the brand based on cost and value
received and select the brand which offers
maximum satisfaction.
• Law of equimarginal principle enables the
customer to derive maximum satisfaction from
the limited resources.
• According to equimarginal principle , customers
distribute his income between different goods to
derive maximum satisfaction.
 Economic Model
• This model suggest that all the customers are
same and price is only factor which influence
purchase decision.
• This model is influenced by the following factors.
• Income effect
• Price effect
• Substitution effect
• Limitation : Psychological factors and marketing
mix also influence purchase decision.
 Black Box Model
• Consumer head is like a black box.
• The consumer receive the stimuli in his mind
and then reacts . Here consumer decision
making is influenced by market stimuli/
environment stimuli and buyer's
characteristics.
Black Box Model
 Howard Sheth Model
• This is very comprehensive model and can be used to
understand industrial buying behaviour and consumer
buying behaviour.
• This model explains the brand choice based on learning
theory.
• The customer take three kinds of decision
• Extensive problem solving
• Limited Problem Solving
• Routinized Response behaviour
• The buyer moves from extensive problem solving to
Routinized response behaviour
 Assumption of the model
• Consumer have incomplete information about
the market
• Consumer take rational decision
• Non branded products are beyond the
purview of this model.
 Continue
• The four major components of this model are
• Input variables
• Output variables
• Hypothetical construct
• Exogenous variables
• The five output variables are
• Attention
• Comprehension ( Storage of information about the brand)
• Attitude
• Intention
• Purchase
 Continue
• Hypothetical Constructs- These are intervening
variables. It can be classified into two categories.
• Perceptual construct ( Information processing)
• Learning construct- deals with buyer formation of
concept.
• The three perceptual constructs of the model are
• Sensitivity to the information
• Perceptual bias
• Search for information
 Continue
• Learning constructs are
• Motive
• Ability of the brand to satisfy the need of the
customers
• Decision Mediators- The buyers mental rule for ranking
purchase alternatives.
• Predisposition- Preference towards the brands.
• Inhibitors- Environmental forces such as price and time
pressure which restrain the purchase of preferred
brand.
• Satisfaction
HOWARD SHETH MODEL
 HOWARD-SHETH MODEL
This model suggests three levels of decision making:
1. The first level describes the extensive problem solving. At this level the
consumer does not have any basic information or knowledge about the
brand and he does not have any preferences for any product. In this
situation, the consumer will seek information about all the different
brands in the market before purchasing.
2. The second level is limited problem solving. This situation exists for
consumers who have little knowledge about the market, or partial
knowledge about what they want to purchase. In order to arrive at a
brand preference some comparative brand information is sought.
3. The third level is a habitual response behavior. In this level the consumer
knows very well about the different brands and he can differentiate
between the different characteristics of each product, and he already
decides to purchase a particular product. According to the Howard-Sheth
model there are four major sets of variables; namely:
•
Input

1- Significative stimuli
2- Symbolic stimuli
3- Social stimuli.
(b). Perceptual and Learning Constructs:
The central part of the model deals with the psychological variables which
influence consumer decision. Some of the variables are perceptual in
nature, and are concerned with how the consumer receives and
understands the information from the input stimuli and other parts of the
model. In perceptual construct it is described that how consumers process
and receive the information received from the input.
Perceptual bias occurs if the consumer distorts the information received so
that it fits his or her established needs or experience. Learning constructs
are responsible for concept formation.
(c). Outputs:
The outputs are the results of the perceptual and learning variables and
how the consumers will response to these variables (attention, brand
comprehension, attitudes, and intention).
(d). Exogenous(External) variables:
Exogenous variables are not directly part of the decision-making process.
However, some relevant exogenous variables include the importance of
the purchase, consumer personality traits, religion.
 Motivation
• The term motivation is derived from the term motive.
• Motivation is will to do. From consumer behaviour
perspective, motivation is the process of inspiring
customers to purchase particular goods and services.
• The strength of motivation depends on strength of
motive.
• Motive is driving force within the individual.
• Motive can be primary motive and secondary motive.
Primary motive is biological in nature while secondary
motive is social in nature.
• Felt need ( Unfulfilled need ) is first point in object
oriented behaviour.
 Object –oriented Behaviour

Object
Driving
Felt Need oriented
Force
Behaviour

Object oriented behaviour leads to customer

satisfaction
 Object –Oriented Behaviour
• Following generalizations are made to
understand object –oriented behaviour .
• Similar action may be due to different want.(
MBA Education) .
• Similar want may generate different action. In
order to attain higher status in the society,
different person adopt different profession.
 Classical Concept of Motivation
• Classical concept of motivation is associated with the
following motives.
• The concept of Unconscious motive: According to
psychoanalytic theory, human behaviour is influenced by
unconscious motivation about which person do not have
the idea.
• The concept of power Motive: According to this concept,
every person has tendency to exercise power over the
others. Every person wish to influence others and seek
acknowledgement and recognition. Application – Loyalty
card program, Rajanigandha .
• The concept of affiliation Motive: Emotional support,
affection.
 Theory of Motivation
• Maslow's Need Hierarchy Theory
• Two Factor Theory
• Achievement Motivation Theory
Maslow's Need Hierarchy
Two Factor Theory
 Achievement Motivation Theory
• This theory was given by David C. McClelland.
• According to this theory, every person has
achievement motive up to certain extent but
some person are more consistently oriented
towards achievement motive.
• The person having higher achievement motive
are more self confident.
 Achievement Motivation Theory
• Following behavioral attributes are found among the person having
high achievement motive.
• They formulate concrete goal.
• They set moderate risk goal.
• They derive maximum satisfaction from their outcome rather than
from monetary incentive or recognition.
• They take personal responsibility for the outcome.
• They are effective learner. They learn from the feedback and
experience.
• They would like to take help from the expert rather than from the
friends .
• They explore the environment and create the opportunity for
themselves.
Perception
 Perception
• Perception means how we see the world around
us.
• Customers act and react not on the basis of their
knowledge but based on their perception.
• Perception is the process by which an individual
select, organize and interpret specific stimuli into
meaningful and coherent picture of the world.
• Perception is all about customer's subjective
understanding and not objective realities.
 Perception
• Experiment was conducted in New York to
understand the impact of perception.
• Several brands of mineral water were offered to
customers and benefits of these brands were
explained.
• Customers found Leau Du Robient brand tasty
and crispier.
• The study showed that customers liked tap water
over the mineral water. The brand Leau Du
Robient contains tap water. In French language,
the meaning of the brand name is tap water.
 Process of Perception
• Perceiving
• Selecting

• Organizing
• Interpreting

• Reacting
 Linkage Between Perception and
Action
Perception

Conception

Attitude

Belief

Value

Action
 Factors Influencing Perception
• Two inputs impact perception .
• External environment
• Need, want, expectation, motive, previous experience,
nature of stimuli.
• Mainly three factors influence perception.
• Perceiver
• Target
• Situation
• The impact of these inputs are different on different
customers. As each person is unique so perception is
also unique.
 Nature of Stimulus
• Shocking adds draw the attention of
customers.
Nature of Stimulus
 Expectation
• People usually see, what they expect to see
and whatever they see, it is based on product
familiarity and exposure.
 Absolute Threshold
• Absolute threshold is the lowest level of stimuli
which can be perceived by an individual. It is the
point at which person can detect difference
between something and nothing.
• Differential Threshold : Differential threshold is
minimal difference between two specific stimuli
which can be perceived by Individual . It is also
known as JND.
• Ernst Weber discovered the JND between two
stimuli.
 Implication of JND
• While improving the product, company should
not offer the benefit below the JND.
• Apple introduced sharper display but it
disappointed the customers because the
benefit was below the JND.
• When the company offered Retina display, it
attracted the customers because customers
perceived significant difference in the quality
of product.
 Implication of JND

Sharper display

Retina Display
Implication of JND
Tropicana, changed its
packaging . Earlier it used
orange and straw in it,
later on brand used a glass
of orange juice.
Customer complained that
this kind of packaging is
also used by various local
brands.
 JND and Logo design
• Company did not make significant changes in
the logo so that loyal customers could
associate themselves with the brand.
 Perceptual Selection
• Perceptual selection depends on
• Selective Exposure
• Selecting attention
• Perceptual defense
• Perceptual Blocking
 Perceptual Selection
• Selective Exposure: Selective exposure occurs
when customers consume only those
message which is pleasant to him and ignore
the message which is painful or threatening.
• The supporter of BJP would like to see positive
news about the governance.
• Selective Attention: consumers see only those
adds which satisfy their need and want.
 Perceptual Selection
• Perceptual Defense : Consumer have tendency to
protect their ego and self respect.
• Consumer distort the information which is not
consistent with his belief and value system.
• Eg: consumer having low paying capacity enjoy his
vacation in India. He does not perceive European
tourist destination attractive and worthy.
• Perceptual Blocking : It is subconscious “ screening out
“ of the stimuli which is inconsistent with belief,
attitude , need of the person.
 Subliminal Perception
• The concept of subliminal perception suggest
that customers can be also motivated below
the conscious awareness level.
• The subliminal message is not audible enough.
• The subliminal advertisement was first
reported in the year 1957, when a drink coca
cola message was flashed for very short time.
• During the six week time period , 18%
increase in the sales was reported.
 Perceptual Mapping
• Perceptual Mapping is graphical presentation of
perception of customers with relation to product
attributes.
• The perception of customers can be analyzed for two
or more than two brands on the basis of product
attributes.
• Perceptual mapping help to understand where the
brand stands as compared to competing brands.
• Perceptual mapping involves two steps.
• Data Collection
• Analysis and presentation of the data.
Perceptual Mapping
Perceptual Mapping
 Method of Perceptual Mapping.
• Two methods are used for perceptual
mapping.
• Attribute Based Method.( Factor Analysis)
• Similarity Based Method ( Multi Dimensional
Scaling) .
• In similarity based method, respondents are
asked to indicate their degree of agreement or
disagreement on 1 to 6 point scale where 1 is
exactly same and 6 is exactly opposite.
 Learning
• Learning is relatively change in behaviour.
• We learn by doing. Whenever we act, we
learn.
• Learning is never ending process.
• Learning is the process of acquiring
knowledge related to purchase and
consumption. Customer apply his experience/
knowledge in future purchase.
 • Learning and Brand
DOVE
Association
Dove is associated with
Moisturization.It
motivates the people to be
confident.
Due to this brand
association , brand was
extended to body lotion,
face wash, hair oil and
deodorant.
Consumer use the range of
the product due to
learning.
 Elements of Learning
• There are four elements of Learning .
• Motive
• Cues
• Response
• Reinforcement.
 Elements of Learning
• Motive: Marketer must uncover motive of a
customer. Eg: Weight loss. Customers concerned
for weight loss, look forward to weighing
machine and different kinds of equipments.
• Cues: Only those cues motivate the person which
match with expectation of the customer.
• Eg: Expectation – Premium designer shirt
• Response: Response is individual's reaction to
drive or cue.
 Reinforcement
• Psychologist has identified three reinforcement
schedule.
• Continuous Reinforcement: Reward is provided after
each transaction . Eg: Fruit juice after the Lunch.
• Fixed Ratio Reinforcement: Fixed ratio reinforcement is
provided after every nth transaction.
• Variable Ratio Reinforcement: Variable ratio
reinforcement reward the customer on random basis.
Eg: up gradation of the seat in railway/airlines. ,
lotteries/ contest.
 Reinforcement
• Reinforcement: Reinforcement is reward,
benefits, enjoyment , pleasure that consumer
receives after buying the product.
• When consumer likes the product, he goes for
repeat purchase.
• The challenge for marketer is to provide
positive experience regularly. Due to absence
of reinforcement, customer change the brand.
 Theory of the Learning
• Learning theory can be classified into two
categories.
• Behavioral Theory
• Cognitive Theory.
• Behavioral Learning Theory: It is also referred as
stimulus- response learning. Customer observe
the stimulus, learn and then respond.
• Behavioral learning theory can be classified into
classical conditioning theory and instrumental
conditioning theory.
Behavioral Learning Theory
 Classical Conditioning Theory
• Classical Conditioning Theory : According to
this theory, learning occurs due to repetitive
association between stimulus and response.
• This theory is proposed by Russian
psychologist Ivan Pavlov.
• There are two kinds of response,
Unconditioned response and conditioned
response.
Classical Conditioning Theory
Classical Conditioning Theory
 Stimulus Generalization and
discrimination.
• According to classical conditioning theory ,
learning does not depends only on repetition but
it also depends on individual ability to generalize.
• Stimulus Generalization: Responding in the same
manner to slightly different stimuli is known as
stimulus generalization.
• Imitators copy the well established brand hoping
that customer will respond in the same manner.
• Due to stimulus generalization, imitator succeed
in the market place.
 Colgate Sensitive Vs Sensodyne
• Colgate introduced sensitive in the year 2000.
• In the add, the sensitivity of teeth and impact
of toothpaste was highlighted.
• Sensodyne was new brand. In the add, it was
highlighted that product is endorsed by the
doctor.
• Sensodyne captured significant market share
within two years of its launch.
Stimulus Generalization
 Stimulus- Discrimination
• Stimulus discrimination is opposite to stimulus
generalization.
• It is selection of specific stimulus from the
similar stimulus.
• Company position the brand based on the
product attributes which is meaningful,
valuable and relevant.
• Apart from the product attributes, company
position the brand based on various factors.
 Instrument Learning Theory
• Instrument Learning Theory: It is also known
as operant conditioning.
• According to this theory, learning occurs
through trial and error process. Few purchase
behaviour results into favorable outcome.
• American psychologist B.F.Skinner stated that
leaning occurs in the environment where
individuals are rewarded. Customer revisit
that store which offers greater satisfaction.
 Cognitive Learning Theory
• Cognitive learning is systematic evaluation of
alternative brands to solve the unsolved
problem.
• Unlike the behavioral learning which consist of
instinctive response to stimuli, cognitive
learning involves deliberative processing of
the information.
• Customer work like a thinking problem solver.
He analyze pros and cons of decision.
 Hemispheric Lateralization
• Hemispheric lateralization ( Split Brain theory ) came
into the force in the year 1960 .
• The brain is divided into two distinct hemispheres.
• The left hemisphere of the brain is linear part of the
brain, it is centre of human language and responsible
for reading, speaking and reasoning.
• The right hemisphere of the brain is non linear and
responsible for imagination and pleasure.
• The left part of the brain is rational , active, realistic
while right part of the brain is emotional, metaphoric,
impulsive and intuitive.
Attitude
 Attitude
• “ Attitude is expression of inner felling that
reflects that whether person is favorable or
unfavorable for a particular object”
• “ Attitude is learned predisposition to behave
consistently in a favorable or unfavorable
manner with respect to given object.”
• The object might be product/ services/ brand/
promotional campaign, package etc.
 Attitude
• Attitude is learned
• Attitude have consistency
• Attitude occurs within the situation.
 Models of Attitude
• Tri component Model of Attitude
• Multi attributes model
• Attitude towards Ad- Model
Tri component Model of Attitude
Tri Component Model
 Multi attributes Model
• Multi attributes model include attitude
towards object model, attitude towards
behaviour model and theory of reasoned
action.
• These models examine attitude of a customer
for product attributes.
 Attitude Towards object Model
• Customer holds positive attitude towards
those brands which contains desired
attributes.
• On the other hands customer holds negative
attitude towards those brands which does not
contain desired attributes.
Attitude Towards object Model
Attitude Towards Behaviour Model
• Here focus is given on attitude towards
behaviour rather than attitude towards object.
• Theory of reasoned action : It represents
integration of different components for better
explanation of behaviour .
• It also contains cognitive, affective and
conative components but these are presented
in a different manner.
 Attitude Model
• Attitude Towards Ad Model : Advertisement
also influence attitude of a person. It play very
important role in attitude formation.
 • Attitude Formation
Attitude Formation
Attitude formation is
concerned with shift
from no attitude to
attitude towards
particular object.
Attitude is formed due
to direct experience,
family, friends ,
personality factors.
 Strategy for attitude Change
• Changing attitude of a customer is difficult because
customers resist to change. Following strategies are
used to change the attitude of a customer.
• Changing basic motivational factors: According to this
approach , there are four function of attitude.
• Utilitarian function
• Ego- Defensive function
• Knowledge Function
• Value expression function.
Utilitarian Function
Ego- Defensive Function
 Strategy for attitude change
• Combining different function.
• Associating brand with special group/ event/
cause. Eg- MRF Sports car, Wills – Indian
Cricket team.
• Resolving two conflicting attitude.
• Eg- Sugar free chocolate.
• Changing brand belief- using distinctive
feature ( Apple I phone)
 Strategy for Attitude Change
• Changing belief about competing brand.
• Eg. Shot
 Strategy for attitude change
• Changing overall Brand Rating .
 Personality

Personality is aggregate form of biological and

psychological characteristics.
 Personality
• “ Personality is defined by those
inner psychological characteristics
which determines and reflect that
how a person respond to his /her
environment”.
 Nature of the Personality
• Personality reflects individual difference.
• Personality is consistent and enduring.
• Personality can change.
 Theory of Personality
• Followings are important theory of
personality.
• Freudian Theory
• Neo Freudian Theory
• Traits theory
 Freudian Theory
• Unconscious forces influence personality of a
person.
• Personality consist of three interacting system
namely ID, Ego and Super ego.
 Neo-Freudian Theory
• Social environment/ atmosphere shape the personality
of the person.
• Individuals can be classified into followings personality
groups.
• Compliant Individuals : These types of people move
towards others. They wish to be loved and appreciated
by the others.
• Aggressive Individuals : Such types of people oppose
others and they wish to excel in their life.
• Detached Individuals : Such types of people wish to live
alone. They want self sufficiency and freedom from the
obligation.
 Traits Theory
• Personality traits are characteristics of individuals which
differentiate one person from the another person.
• Followings are important personality traits.
• Sociability
• Emotional stability
• Adaptability
• Defensiveness
• Aggressiveness
• Zoe
• Introvert
• Extrovert
• “ The differences in the behaviour of individual occurs due to
variation of personality traits among the people”.
 Consumer Behaviour and Personality
• Diversity in consumer behaviour is found due to diversity in
the personality.
• Few specific personality traits influence the consumer
behaviour. These are
• Innovativeness : Few customers show eagerness to buy new
products. The diffusion of innovation theory suggests that
innovative product spreads ( diffuses ) over the period of
time.
Diffusion of Innovation
 Consumer Behaviour and Personality

• Inner- directed Vs other customers : Inner directed

customers rely on their own inner value and standard
for evaluating the products. On the other hand, other
directed customers look forward to others for the
suggestion for purchasing the products.
• To influence inner directed customers , company must
highlight the benefits/ feature of the product. Other
directed customers can be influenced by highlighting
social acceptance of the product.
 Consumer Behaviour and Personality
• Dogmatism : Dogmatism is personality traits
that measure the degree of rigidity towards
unfamiliar products/information that
contradicts with well established belief.
• Highly dogmatic customers do not prefer the
innovative products.
 Consumer Behaviour and Personality
• Optimum stimulation Level : Optimum
stimulation level reflects desired life style of a
person.
• If actual life style of a person = osl score, then
person would be satisfied.
• If actual life style of the person is greater than
osl score then person would be in relief.
• If actual life style of the person is less than osl
score then person would be unhappy.
 Consumer Behaviour and Personality
• Variety and novelty Seeking : It is personality
traits similar to osl. High variety seeking
consumers prefer to purchase new product.
• Variety and novelty seeking consist of
• Exploratory purchase behaviour- consumer
change the brand to experience new brand.
• Vicarious exploration- Vicarious exploration
consist of gathering information about product
information/ competing brands.
• Use innovativeness- use washing machine for
making lassi.
 Personality and self Concept
• Personality represents overall characteristics
of the person.
• Self concept- self concept can be classified
into three category.
• Actual self- what a person think about himself
• Other self- what others think about a person
• Ideal self-how the person would like to view
himself
 Consumer – Ethnocentrism
• Ethnocentrism : Highly ethnocentric
customers do not prefer to buy foreign made
products.
• Such customers analyze adverse impact of
their purchase on economy and domestic
players.
• Due to 9/11 attack in America, ethnocentrism
in American society significantly increased.
• Ethnocentrism varies by country and product.
 Consumer – Ethnocentrism
• Maxican customers are more ethnocentric than
French and American customers.
• In India, ethnocentrism is promoted by Swami
Ramdev through SWADESI Movement.
 Consumer – Ethnocentrism
• Marketer target ethnocentric customers by stressing
on nationalistic theme in their promotional
campaign. Eg. Made in USA, Made in India . Hamara
Bajaj.
 Consumer- Ethnocentrism
• Due to globalization , it has become difficult
for customers to know that whether the
product is domestic or imported.
• Some of the models of Tyota are
manufactured in USA and some models are
produced in Japan.
• Hona Accord wagon- Exported from America
• Honda company highlight this to influence
ethnocentric American customers.
 Targeting Ethnocentric Customer
• Case- Ruf and Tuf Jeans
• Customers use variety of the foreign made jeans
.It was found that aspirational level of semi
urban customers are high but their paying
capacity is limited. They can afford only cheap
jeans or duplicate of the foreign brand.
• Arvind Mills offered Ruf and Tuf brand ; good
fabric was used in the product.
• The brand became highly successful and this
removed the perception that only foreign brand
can offer good quality jeans.
 Compulsive Consumption
• Compulsive consumption is addictive or out of
the control buying.
• Compulsive shopping produces negative
consequences for shoppers.
• Customer buys the product that he do not
requires.
• On line buying and availability of credit card
increased the compulsive consumption.
• Companies must ensure that their promotional
campaign is not promoting compulsive
consumption.
 Consumer- Materialism
• Highly materialistic consumers define themselves
by possession of the product.
• They believe in showing off their products; such
customers are impressed by what they have.
• Highly materialistic customers are selfish and self
centered.
• On the other hand less materialistic customers
give value to how they enjoy their life rather that
what they have.
 Social Class
• We join that society whose VIB ( value,
interest and belief) match with us
• Social class can be classified into upper class,
middle class and lower class.
• Social class is indicated by income, profession,
area of residence etc.
• Lower social class have aspiration to join
middle class/upper class.
 Reference Group
• Various social factors shape the consumer behavior and these social
influences are
• Reference group- “ Reference group consist of all the group which
directly or indirectly influence the attitude and behaviour of the
person.
• Primary Reference Group : Primary reference group is the group in
which informal relationship exists. In primary reference group, the
frequency of interaction is very high.
• Secondary group- secondary group is the group in which the
members interact with each other infrequently. In such group
formal relationship exists. Eg- trade union, professional group
• Aspiration group- The person wish to join such groups
• Dissociative group- this is the group whose value system is rejected
by individuals. Taliban, Naxali
Culture is adopted , No one is bourn with particular
culture. Culture differentiate one society from
another society .Cultural values are deeply rooted.
Culture is sum of tradition, custom, ritual, value
and belief.
 Impact of Culture on Business
• Consumption of Non veg and Hindu and
Christian Society.
• RAHU KAL and purchase of new goods.
• Dhantares and purchase of Gold/ Silver.
• Colour preference.