I.

DIFFERENCE IN NEEDS AND BRAND CHOICES

In economics, the idea of survival is real, meaning someone would die without their needs being met.
This includes things like food, water, and shelter. A want, in economics, is one step up in the order from
needs and is simply something that people desire to have, that they may, or may not, be able to obtain

What are psychogenic needs?

Power, Affiliation, and Achievement. Three of Murray's Psychogenic Needs have been the focus of
considerable research: The Need for Power (nPow), Affiliation (nAff) and Achievement (nAch). The need
for Power refers to the desire or need to impact other people, to control or be in a position of influence.

PSYCHOGENIC NEEDS

Henry Murray’s history is anything but a prerequisite for a career in psychology. He earned his
bachelor’s degree in history in 1915, a medical degree from Columbia in 1919 and then completed a
doctorate in biochemistry from Cambridge nine years later.

His start in psychology occurred after reading Jung and eventually arranging a meeting with him. During
this meeting, Jung convinced Murray to study psychoanalysis, which he did at Harvard University. After
competing his training, Murray actually began teaching psychology and psychoanalytic theory at
Harvard, and he remained there for the rest of his professional career.

Although considered a trait theorist, Murray’s medical background, combined with his analytical training
give a unique flair to his research and writing. This is probably most evident in his development of the
Thematic Apperception Test (TAT), a personality test designed to determine personality themes as well
as unconscious motivation.

He was focused on basic needs in personality which he called psychogenic needs. He believed these
needs were largely at the unconscious level. After researching this area, he narrowed these needs down
to 27, although the list and names vary depending on the time frame and the author.

MURRAY’S PSYCHOGENIC NEEDS

Psychogenic Need

Description of Need

Abasement

To surrender and accept punishment

Achievement

To overcome obstacles and succeed

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Acquisition

(Conservance)

To obtain possessions

Affiliation

To make associations and friendships

Aggression

To injure others

Autonomy

To resist others and stand strong

Blameavoidance

To avoid blame and obey the rules

Construction

To build or create

Contrariance

To be unique

Counteraction

To defend honor

Defendance

To justify actions

Deference

To follow a superior, to serve

Dominance

(Power)

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To control and lead others

Exhibition

To attract attention

Exposition

To provide information, educate

Harmavoidance

To avoid pain

Infavoidance

To avoid failure, shame, or to conceal a weakness

Nurturance

To protect the helpless

Order

To arrange, organize, and be precise

Play

To relieve tension, have fun, or relax

Recognition

To gain approval and social status

Rejection

To exclude another

Sentience

To enjoy sensuous impressions

Murray contended that environmental forces played a significant role in the exhibition of the
psychogenic needs. He called the forces “press,” referring to the pressure they put on us that forces us
to act. He further argued for a difference between the real environmental forces, alpha press, and those
that are merely perceived, beta press.

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The 27 needs and the forces that press them have stood up to research. Three of these, especially, have
been the focus of study: the need for Power, Affiliation, and Achievement.

Power, Affiliation, and Achievement

Three of Murray’s Psychogenic Needs have been the focus of considerable research: The Need for
Power (nPow), Affiliation (nAff) and Achievement (nAch).

1. The need for Power refers to the desire or need to impact other people, to control or be in a position
of influence. Careers that involve these aspects are better suited for high nPow people, such as
teachers, psychologists, journalists, and supervisors. They don’t necessarily make the best leaders
though. Research has found that those with high nPow are more likely to rate an employee higher if
that employee has a tendency to schmooz or flatter the subject where those with low or moderate
nPow rate employees the same. In this sense, those with high nPow would do well if they also had traits
of self-control and objectivity.

2. The need for affiliation has a long history of research, and studies show that those with a high nAff
often have a larger social circle. They spend more time interacting with other such as talking on the
phone and writing letters, and they are more likely to be members of social groups or clubs. Those with
high nAff are also more likely to get lonely than those low in nAff, so their need for affiliation may be
related to their sense of self and their desire for external stimulation.

3. Those with a high need for achievement (nAch) demonstrate a consistent concern about meeting
obligations and accomplishing tasks. They are, however, more focused on internal motivation rather
than external rewards. For example, those high in nAch are more likely to value intelligence and
personal achievement over recognition and praise.

There are also cultural and gender differences among these three needs. For example, the United
States is higher on ratings of nAch than other countries whose focus is more on relationships and nAff.
Men and women also demonstrate their needs in different manners. Men with high nPow tend to be
more risk takers and act out more readily while women tend to be more active in volunteer activities.

Combined with other personality aspects of traits, such as introversion/extroversion, the needs may also
show themselves in very different manners. Introverts may demonstrate their high nAff through small
groups and intellectual pursuits, while extroverts evidence this same need through large gatherings and
louder parties. However they come out, these three needs have shown a consistent pattern in research,
perhaps even more so related to humanistic theory than in trait theory itself

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WHAT ARE HEDONIC NEEDS?

Hedonic goods are consumed for luxury purposes, which are desirable objects that allow the consumer
to feel pleasure, fun, and enjoyment from buying the product. This is the difference from Utilitarian
goods, which are purchased for their practical uses and are based on the consumer's needs.

WHAT DOES HEDONIC HAPPINESS MEAN?

Hedonic wellbeing is based on the notion that increased pleasure and decreased pain leads to
happiness. Hedonic concepts are based on the notion of subjective wellbeing. Subjective well-being is a
scientific term that is commonly used to denote the 'happy or good life'.Aug 30, 2010

WHAT ARE THE PRIMARY AND SECONDARY NEEDS?

Primary needs are any biological need, such as food, water, and oxygen and secondary needs as needs
that are generally psychological- such as nurturing, achievement, and independence.

WHAT IS A BIOGENIC NEED?

Biogenic needs-food, water, air, shelter; Psychogenic needs-status, power, affiliation; psychogenic
reflect culture.

WHAT IS SYMBOLIC NEEDS?

The functional needs are related to specific and practical consumption problems, whereas symbolic
needs are related to self image and social identification. ( Subodh Bhat, 1998) Therefore they mentioned
that all brand should have a “brand concept”, which is an overall abstract meaning that identifies a
brand.

WHAT IS AN INNATE NEED?

Innate needs are food, water, air, clothing, shelter, and sex. Acquired needs are psychological or
psychogenic needs a person has that are driven by his or her culture, society, and peers; these are also
known as secondary needs
Needs are physical and psychology necessities a person must have to ensure survival or maintain mental
health. A person's needs can drive him or her pursue a particular career, prefer a certain lifestyle, and
affect a person's purchasing choices. These needs can be classified as innate needs and acquired needs.
Innate needs are biogenic needs that must be satisfied to ensure a person’s survival regardless of his or
her culture, disposition, or economic status; these are also known as primary needs. A person’s
subconscious and conscious drive to fulfill these needs compels him or her to pursue goals that provide
satisfaction to the degree their personalities, temperaments, and financial status will allow. Innate
needs are food, water, air, clothing, shelter, and sex.
Acquired needs are psychological or psychogenic needs a person has that are driven by his or her
culture, society, and peers; these are also known as secondary needs. A person’s drive to satisfy these
needs is based upon his or her own personal satisfaction and how his or her peers and onlookers think
of them. Acquired needs include self-esteem, prestige, affection, power, and learning.
Innate needs and acquired needs can often be satisfied by the same products, services, or activities. A
person needs a home for shelter. A simple apartment or a rental property can suffice, but the size, type,
and ownership of a home says more about a person’s financial status and level of success. Owning a
large home is a dream of many people and people often admire a person who can do it. Renting a luxury
apartment or owning a mansion provides shelter, but would probably make a person feel really good
about his or herself.

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HERE ARE 7 REASONS WHY PEOPLE BUY BRANDS:
1. Brands provide peace of mind.

Consumers want comfort, happiness, and satisfaction in their lives, and they get it in part through
the products they buy. If the brands they use consistently deliver a positive experience,
consumers form an opinion that the brand is trustworthy, which gives them peace of mind when
buying.

2. Brands save decision-making time.

So you are in the market for a new HDTV and decide to search Amazon. You type in “HDTV”
and get 101,685 results. How do you cull the list down to a manageable number of choices? You
choose a brand. Type in “Samsung HDTV,” and you reduce your choices to 1,319. Picking a
brand helps reduce the clutter, making it easier to find what you are looking for.

3. Brands create difference.

Any grocery store aisle has more product options than anyone can reasonably consider
purchasing. What allows us to select one peanut butter brand over another or over a generic
product? Branding helps define—in an instant, with a minimum of thought—what makes your
product different and more desirable than comparable products.

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4. Brands provide safety.

People, by nature, generally avoid risk and seek safety. Imagine you’re on a business trip in an
unfamiliar city, and you need to pick a restaurant for dinner. You’re most likely to pick a
national restaurant brand over a local one because you’re familiar with the national brand. It’s
the safe and predictable choice because you know what to expect. Brands offer safety and reduce
the risk of disappointment.

5. Brands add value.

Why do consumers pay higher prices for brands compared to unbranded or generic products? Is
it better quality, the look and feel, or is it the brand’s stature in society? It’s probably a
combination of each. Successfully branded products make more money for their companies by
commanding premium prices.

6. Brands express who we are.

What smartphone do you own? What car do you drive? What shoes do you wear? The brands we
use make a statement about who we are and who we want to be. People become emotionally
attached to the brands they use and view them as part of their self-image. Apple’s classic “I’m a
PC / I’m a Mac” campaign shows how brands can reflect the personalities and self-perceptions
of their users.

7. Brands give consumers a reason to share.

We all have opinions about the things we experience, and we like to share them with others.
Whether it’s a good book, a good movie, or a great meal, we become brand advocates when we
share positive brand experiences. In our increasingly social world, we have more opportunities
than ever to spread the benefit of our experiences. Strong brands give consumers a reason to
share their experiences.

Do You Need a Brand?

Whether you’re a large company or small business, crafting a brand-driven marketing strategy is
one of the most important things you can do for your business. Creating a strong, differentiated
brand is the key to turning prospects into customers.

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II.APPROACHES TO DEMOGRAPHICS AND PSYCHOGHRAPHIC SEGMENTATION

WHAT IS DEMOGRAPHIC AND PSYCHOGRAPHIC?

Psychographics are kind of like demographics. Psychographic information might be your
buyer's habits, hobbies, spending habits and values. Demographics explain “who” your buyer is,
while psychographics explain “why” they buy. Demographic information includes gender, age,
income, marital status

WHAT IS SEGMENTATION APPROACH?

Approaches to subdivision of a market or population into segments with defined similar
characteristics. Five major segmentation strategies are (1) behavior segmentation, (2) benefit
segmentation, (3) demographic segmentation, (4) geographic segmentation, and (5)
psychographic segmentation.

APPROACHES TO MARKET-SEGMENTATION (WITH DIAGRAM)

Market segmentation being the key input in firm’s marketing planning process, the crucial issue
is to how to identify these market segments. Unfortunately, there is no one best way of
segmenting the markets. That is why; marketing managers are expected to examine a variety of
segmentation criterion so as to identify those that will be most effective in defining their markets.

There are two basic approaches to identify market segments. These are “Consumer
characteristics” approach and “consumer response” approach as given in the following chart.

A. Consumer Characteristic Approach:

Consumer characteristic or personal segment bases measure in terms of geographic, demographic

and psychographic features of consumers. These characteristics portray the consumer in terms of
“Where they live?” “Who are they?” “How they behave?”

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Following is the brief explanation of each such consumer characteristic and its variables:

1. Geographic characteristics:

Historically the first and probably the most obvious basis for segmentation of markets have been
geographic characteristics of people. Regional difference in consumer tastes for products as a
whole are well-known.

The sellers distinguish carefully among the regions in which they operate and select where they
have comparative advantage. Thus, small retailer may distinguish between nearby or surrounding
customers and distant customers or far-off one.

A fertilizer dealer may have grouping as-urban and rural. A regional manufacturing company
may have segments as in terms of zones say-North-South-East and West. A national
manufacturer might have different sales territories in terms of States-Divisions- Districts-
Talukas-Cities and Towns.

Though geographic segmentation helps the marketers to concentrate their efforts to the exact
places, organisational, promotional and distributional efforts can be fruitfully utilized.
Consumers do not stick to a particular locality or a region. The geographic mobility changes
consumer habits thus, cancelling the organisational set-up.

2. Demographic and socio-economic characteristics:

By far the most common approach to market segmentation has been the identification of buyer
groups according to a selected demographic and socio-economic characteristic. Demography is
the study of human population in terms of its size, density and distribution.

These demographic and social-economic characteristic are-age group,-sex- family size, income,
occupation level of education religion, ethnic status, Social class and the like.

For instance, a marketing manager of a carpet manufacturing company might decide the market
segmentation on such characteristics such as family income, size of the family and home
ownership. Ideally, the manager would like to cross these tabulated variables to have clear
twenty four possibilities if he has four income groups, three family sizes and two types of
ownerships.

Each family belongs to one of these twenty four segments. After weighing the profit potentiality,
the manager can select the best one from his angle to his advantage.

Although demographic and socio-economic segmentation tells the firm as to who is the most
likely customer to buy the product or a service, it does not disclose about the brand he or she
likes.

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3. Psychographic characteristics:

Psychographics is a recent approach to market segmentation which has emerged as a major

alternative to the traditional approaches. In a fundamental sense, it is not a different approach.

It has been coined by Professor E. Denby who says that psychographics seeks to describe the
human characters of consumers that have bearings on their responses to product’s packaging,
advertising and public relations efforts of the unit. Psychographic characteristics include
variables like personality attitudes and life- styles.

ADVERTISEMENTS:

Personality is the Individual’s consistent reactions to the world that surrounds him or her. The
personality variables are-dominance, aggressiveness, objectivity, achievement, motivation and
the like. These influence the buyer behaviour.

The renowned example of this kind is the famous personality study conducted by American
automobile industrialist in case of Ford versus Chevrolet cars.

According to the study, Ford cars attracted the personalities with variables like “independent,
impulsive, masculine, alert to change and self-confident”.

Chevrolet cars, on the other hand, “conservative, thrifty, prestige conscious, less masculine and
seeking to avoid extremes”. This applies to other consumer durable and non-durable items.

Coming to life-style, it stands for the people’s activities, opinions and the sum-total of their
interests and values. Thus, the customers can be grouped as Swingers who seek up-to-date
goods-they are past posed-hedonistic style; Status Seekers who try to buy goods that will reflect
a high status in the society and the Plain Joes who seek ordinary, unfilled goods that do their job.

B. Consumer Response Approach:

Unlike consumer characteristic approach, the consumer response approach believes in why a
consumer buys a product than asking as to who is the consumer. Consumer response to the
market offerings is much more important which can be made as the bases for segmentation.

These responses are benefit, usage, loyalty and the occasion:

1. Benefit response:

Under this, the consumers are sub- divided into specific groups in relation to the various benefits
that the buyer is seeking from a product in particular. These benefits sought differ from product
to product.

These benefits are-the aspects of efficiency, prestige, durability, economy or resale value and the
like. The following exhibit clears this point in case of tooth pastes in India.

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For instance, in case of tooth-paste, the benefits sought may be bright teeth, taste and low price.
In case of an automobile the benefits sought may be the fuel efficiency, quality, and status and
resale value.

Segmentation based on benefits is usually most practical approach from a marketing stand point
of view because of its close connection, product planning and publicity.

Thus, a company can choose the benefit it wants to emphasize, create a product and deliver it by
a direct message to the group seeking that benefit or set of benefits.

However, choosing in benefit to emphasize is not an easy task. The firm must be damn sure that
the stated benefit or set of benefits that the buyers seek are real ones.

2. Usage response:

The first departure from pure demographic segmentation is usage or volume response as a base
for segmentation. Thus, the amount of usage of a particular product has its say among different
consumer segments.

Under this approach, the seller distinguishes the users as the Heavy, Medium, Light and Non-
user of his product. Then he attempts to determine whether these groups differ in demographic
and psychographic factors.

Thus, the classification is into primary groups as Users and Non- users and Potential Users.
Actual users are separated as to Heavy and Light Users where an attempt is made to determine
the difference that exists between them. Naturally, he concentrates on Heavy User as they
consume four to ten times the Light Users.

Non-user group is consisting of two types of people. One, those who generally do not use this
product (Non-potential Users) and those who might use (Potential Users). Much caution should
be exercised before writing off the people as Non-potential Users because, every rule has an
exception. In fact, the seller should give thought to all the volume groups because, they present
different opportunities.

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Here, Potential Users are those who do not use the product but who are not barred from its use
for any functional, cultural or economic reason. Many a times, it may be the ignorance of the
product or inertia or even a psychological resistance.

However, these can be removed effectively. Thus, extensive information feed will kill ignorance;
inertia will be eased by repetitive ads and psychological resistances by thematic ads.

3. Loyalty responses:

Loyalty response or product-space response is the latest base used for segmentation. It works on
the fact that the consumers can differentiate between the products. That is, they create a product
preference scale. That is, the buyers are asked to compare the existing brands of product and rate
them as they perceive them based on their liking.

Such attempt helps the seller in developing an ideal brand to which a sizeable group of customers
is clustering. Later, these consumers can be sub-divided on the demographic or psychographic
features.

However, it is really very difficult to pin down correctly the loyalty. That way, every seller has
consumers who are most loyal, moderately loyal and fickle-minded. There is no guarantee that
the most loyal consumers are the heaviest users. Further, brand loyalty is very hard to measure
because, it depends on the availability of competing products.

Again, the reasons for faith in a particular product are too often too personal to take as the basis
for effective segmentation.

4. Occasion response:

The earlier noted responses of loyalty, benefit and usage are one that varies according to the
immediate situation. For this reason, the shrewd marketers use occasion response to determine
which situations produce optimal consumption patterns for a given product. This sense of
occasion is of top significance when it comes to the question of designing the marketing-mix.

For instance, inexpensive local broiler chicken for daily dinner is fine but inappropriate for
entertaining guests where costly ‘Venky’ chicken works wonders. For daily use most of them use
common brand toilet soap cakes but for special occasions specific brands of toilet soap cakes are
used.

The experience has proved beyond doubt that it is possible to broaden the occasion response to
product and, therefore, its demand. Thus, a traditional break-fast drink can be converted into a
refreshing drink for any time of the day. Much depends on marketing creativity.

In conclusion, it can be said that the marketer may proceed to segment his market in many ways.
His goal is to delimit and determine the most decisive mode of segmentation. That is, the
differences among the buyers that may be the most consequential in choosing among them or
marketing to them.

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The marketing segment strategy chosen is the key input to the marketing manager’s most vital
decisions. Once, the manager has the sound understanding of markets to be approached,
intelligent decisions about product, price promotion and place can be made.

List of advantages and limitations of the main segmentation bases

The following table summarizes the major advantages and limitations of each approach:

Segmentation Advantage/s Limitation/s

Base
Geographic This is quite a valuable approach for a
large company that operates across
many countries, as geographic
segmentation would allow them to
consider cultural differences
It is also quite an effective approach
for small firms, with limited resources
that often need to operate in a defined
geographic area for efficiency
purposes.
This segmentation base is quite
limited as it assumes that all
consumers in a geographic area are
similar in needs
Therefore, geographic segmentation
typically needs to be used in
conjunction with another
segmentation base

Also tends to work well in

cities/countries where there are
significant differences in socio-
economic status in different
geographic areas, or where there is
significant changes in lifestyle across
regions
Demographic Demographic segmentation is very Just like the limitation with
simple to apply and use, as geographic segmentation, this
government statistical data is readily approach is also based on an
available in most countries assumption that consumers in the
same demographic group would have
Suitable data can be obtained quite similar needs
quickly and cheaply
This is unlikely, as not all 30 year old
As segmenting by demographics is consumers have the same needs
also easy for everybody to
understand, from management, to Therefore, the biggest limitation with
sales and customer service staff, it can this segmentation approach is that
be more easily built into an internal there is very little understanding of
marketing plan the consumer themselves
Psychographic Psychographic segmentation gives a Unfortunately this approach requires

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 much better insight into the consumer the organization have detailed
as a person, which more likely lead to data/research on the consumer. Hence
the identification of underlying needs it is far more suitable for a larger
and motives organization and is probably beyond
the scope of a small business
As a result, psychographic
segmentation should deliver a much there are also some concerns
better understanding of the consumer, regarding data and interpretation, and
which in turn which should create perhaps the creation of segments that
more valid and responsive segments cannot be easily accessed or practical
and subsequent marketing programs in real life (For more information,
please refer to the section on the
criteria for effective segmentation)
Benefits sought This is very effective segmentation Firms too reliant on benefit
method for companies that offer segmentation may end up being
products that have unique features, as lacking in innovation, as they could
this will allow them to identify which end up focusing on existing
products/design they should offer and needs/benefits rather than look at
which benefits they should promote other opportunities and other ways of
meeting customer needs
It is also an effective tool for large
companies who want to fragment the
market and create multiple market
segments, in order to reduce the threat
from competitive rivalry
Behavioral This style of segmentation is often However, this approach does not
used in mature markets, where the really consider why consumers buy
firm is looking to understand: how to the product, their needs or their
activate a non-user, target switchers, lifestyles – so the level of market
convert a medium user to a heavy understanding may not be as high
user and so on
It also heavily relies upon obtaining
detailed market intelligence, and
probably the use of a marketing
models and databases for market
testing and experimentation

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III. INDIAN VS WESTERN CONSUMER PERSONALITY

10 Consumer Behavior Differences between Developed and

Developing Countries

1. Consumers in developing countries tend to be more ethnocentric than those in

developed ones. Products from the western hemisphere are seen by developing cultures,
as carrying western values that might harm their society as well as the local workforce. In
developed countries, price, quality, durability and other product-related aspects are the
major factors that influence buying decisions.
Hello
2. Consumers in developing countries discount the impact of the price-quality relationship
(which holds true for developed countries), as the higher inflation rate in most of those
countries tends to make the majority of products’ prices relatively high. Consequently,
they resort to other ways to determine the quality of products.
Hello
3. Consumers in developing countries tend to be less individualistic than in developed
ones. They care more for a larger local community, and like to be identified as part of it.
Hello
4. Cultures of developing countries are high context cultures (mainly western); whilst the
developed countries contain low context cultures. Although there is no empirically
proved relationship between economic prosperity and the degree of explicitness, it is
worth mentioning the relationship as it has a direct impact on advertising strategies.
Hello
5. Promotion of consumer products tends to have a greater impact on sales in developing
countries than on their developed counterparts. This price-elasticity factor is mainly
driven by the limited PPP of consumers from developing nations.
Hello
6. Consumers in developing countries tend to exhibit higher levels of brand loyalty than
developed countries. This is due to higher levels of consumer risk-aversion arising from
the spotty quality of products and lack of sufficient information about existing
alternatives.
Hello
7. Western values are finding their way to new generations in developing countries, even
within the cultures that carry immense contempt for western countries. This relation is
one-way. Cultures of developed countries show no sign of adopting values from more
inferior societies.
Hello
8. Consumers in developing countries are generally less educated. Therefore, they often
show no care as to how products are disposed. Hence, the environmental conditions are
much worse in those countries than in developed ones.
Hello
9. Consumers in developed countries are more health conscious than in the developing
countries. Thus, food packaging is extremely important in developed countries because

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 lack of sufficient data about the product can lead to loss of sales.
Hello
10. Advertising which exhibits local values and traditions has a greater impact on consumers
from developing countries. Whereas the more individualistic consumers from developed
countries are more influences by advertising where the product differentiates itself
specifically from other products in the market.

HOW DOES THE BEHAVIOR OF CONSUMERS IN INDIA DIFFER FROM THAT OF CONSUMERS IN
THE US OR EUROPE?
Low brand-consciousness, much higher price sensitivity and much more likely to do a lot of DIY repair
and maintenance and keep things working with a lot of patched-up repair.

That's the traditional middle class. There's also an emerging globalized middle class that acts like
Western consumers.

The "inexperienced buying" perception is highly mistaken. Mostly I'd say they are more sophisticated,
not less, with a keen eye for real value, strong bullshit detectors and far more savvy than you'd think
even around products/services that are new to the country. What you may see as "inexperienced" is
actually just "difference" and the fact that unlike Americans, they haven't been domesticated and told
how to think by Mad Men. They actually tend to think for themselves, which American consumers
haven't done on a large scale since 1930 or so. This tendency is reinforced by the high degree of cultural
fragmentation and the relatively low ability of national pop culture (Bollywood and cricket) to influence
the market. This is also what makes branding harder and brand awareness harder to create. Positioning
requires influential extant narratives to work with, and these are far more local and numerous in India
than in America. This is why the few that exist (like cricket) get overloaded.

The difference is in two cultural attitudes. First, it's a culture where consumption is not about status or
ostentation outside of a few narrow categories like silk saris, cars, jewelry, houses and so forth.
Americans by contrast turn every purchase into a status signal. So American marketers trying to position
and differentiate based on social status can be in for a surprise when even rich people act like poor
people in many purchase categories.

The second behavior is related: a very high tolerance for poor quality. It's known as the "chalta hai" ("it
will do") attitude, and extends beyond buying to basically everything. There is a very poor culture of
quality consciousness (except in a few areas like food, where people will yell for sub-par food). As a
result, the market is a huge flood of third rate stuff. There is a corresponding unwillingness to pay for
high quality.

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IV. IMPACT OF CONSUMER MOTIVATION,EMOTIONS & INVOLVEMENT ON DIVERSE CONSUMERS

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Consumer Involvement and buying behavior

Like motivation, involvement too is an internal state of mind which a consumer experiences. It
makes one analyze and rationalize his/her choice. Involvement of consumers can be induced by
external sources and agencies. Involvement is the embodiment of time, effort, consideration
given and the enjoyment that is derived by consumer while choosing a product or service.

The involvement theory holds that there are low and high involvement purchases. Consumers’
involvement depends on the degree of involvement of purchase to a consumer. For example,
while buying a loaf of bread, the consumer does not feel very much involved. It is because the
life of the product is very short. Once it is consumed, it gets exhausted. If the consumer is not
satisfied with the particular bread brand, he will purchase some other brand next time.

In the case of purchase of consumer durable (Laptop, refrigerator, household furniture, two
wheeler etc), the involvement of the consumer in making the purchase decision is high.
Consumers take a decision after much deliberations. These products have long-term
consequences. Consumers make lot of inquiries before they purchase the products which have a
high degree of involvement. The following table shows various degrees of involvement
depending upon the nature of the product or service.

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 Degree Productor Service Examples

Low involvement Short life Fast moving consumer goods.

Furniture, crockery, ordinary

Medium involvement Medium
medical treatment

Automobiles, surgery, purchase

High involvement Long of immovable assets, insurance
policy etc.

Categories of Consumer involvement

Types of consumer involvement in buying

Certain factors affect the degree of involvement of buyers in making purchase decisions. These
include their level of knowledge, information, psychology, culture, lifestyle, social system, etc.
Even for the same product or service the degree of involvement of an individual may vary
depending upon the circumstances. There are five types of involvement.

1. Ego involvement: Ego involvement is intended to satisfy one’s ego. For example, all the
members of the family involve themselves in purchasing a product for a single member
belonging to that family. Wife involves herself in the purchase of garments for her husband and
husband involves himself in the purchase of cosmetics for his wife. Sons and daughters of the
family significantly influence the purchase of laptop, TV, car, household furniture, etc. The ego
of each family member is satisfied by consulting him/her before the purchase.

2. Commitment: Commitment is another important form of involvement. When a member of the

family falls sick, the other family members are committed to arrange medical treatment for the
suffering members. Similarly, functions like marriages entail the commitment of the entire
family.

3. Communication in involvement: Communication involvement signifies sharing the available

information with others in the family or organization. If one member has some information on
the subject matter of decision, he should communicate it with the other members before arriving
at a decision.

4. Purchase importance: Involvement of individuals depends upon the degree of importance of

purchase. Suppose e flat costing lakhs of rupees is purchased, then the purchase decision
assumes a great deal of importance in respect of location and area of the flat. The title deeds
should be free from encumbrance.

5. Extent of information: Once the consumer recognizes the need, he then engages in a search
process. Search means acquisition of information from the environment. The extent of

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information search is part of purchase importance. When the purchase is important, information
is sought from all possible sources. But in the case of routine purchase of products and services,
information search will be rather minimum.

Ques 1 Define consumer involvement. Discuss the nature of Consumer Involvement.

Ans 1 Consumer involvement is defined as a state of mind that motivates consumers to identify with
product/service offerings, their consumption patterns and consumption behavior. Involvement creates
within consumers an urge to look for and think about the product/service category and the varying options
before making decisions on brand preferences and the final act of purchase. It creates within a person a
level of relevance to the product/service offering and this leads to an urge within the former to collect and
interpret information for present/future decision making and use. Involvement affects the consumer
decision process and the sub processes of information search, information processing, and information
transmission. As Schiffman has put it “Involvement is a heightened state of awareness that motivates
consumers to seek out, attend to, and think about product information prior to purchase”.
Herbert Krugman, a researcher is credited with his contribution to the concept of consumer involvement.
According to him, consumers approach the marketplace and the corresponding product/service offerings
with varying levels and intensity of interest. This is referred to as consumer involvement.

Nature of Consumer Involvement:

1. It is an inner urge that creates within an individual an interest/desire to hold certain product/service
offerings in greater relevance/importance.
2. Involvement possesses certain properties:
d) It has a level of strength and intensity that determines the degree of involvement that a consumer
possesses. This could be high or low.
e) The length of time that the consumer remains in this heightened state determines the level of
persistence. It could be short term and situational interest in the product/service category; or it could be
long term and enduring.
f) It is directed towards any or all of the elements of the marketing mix. A person may show involvement
towards the product (its features/attributes and benefits), the price, the store or the dealer or even the
promotional effort (advertisement/sales promotion etc).

3. A mechanism underlies the very process of involvement. As a process, involvement is impacted by

certain “antecedents” that get restrained by “moderating factors,” and finally affect its degree of intensity
and level of persistence.
Antecedent factors are certain factors that precede and lead to involvement; these include the person
himself and the individual determinants; the object, stimuli or the product/service offering; and, the
purchase situation.
Moderating factors are factors that can restrain the impact of antecedents so as to impact the level of
involvement include the opportunity available to the person to collect and collate facts and information,
the cognitive ability to process information and draw conclusions, and the time available in hand.
4. The antecedents, moderators and the properties of involvement finally converge to a response in terms
of information search, information processing, information transmission, the purchase decision and post
purchase behavior. Consumer involvement affects the ways in which consumers seek, process, and
transmit information, make purchase decisions and make post purchase evaluation.

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Ques 2 What are the two types of consumer involvement? Discuss with an example.
Ans 2 Depending on whether the involvement is short term or long term, consumer involvement could
be of two types, viz., situational and enduring.
1. Situational involvement: This is a state of arousal directed towards attaching relevance to a
person/object/situation for a short term. As an affective state, it creates a level of involvement when a
person thinks about a particular person/object/situation. It is specific to a situation and is thus
temporary in nature.
For example, a middle aged lady suddenly decides to gift a laptop to her son on his birthday. She
is not techno savvy and has little interest with the product category. She goes to the electronics mall and
visits the various stores that sell computers and laptops. She collects information on the product
features, prices, etc and finally takes the help of her middle aged neighbor to reach a final decision. Her
involvement with the purchase activity would be regarded as a situational involvement.
2. Enduring involvement: When the level of involvement towards the product/service category extends
over a period of time across situations, it is referred to as enduring involvement. The person shows a
high-level of interest in the product category and spends time collecting and processing information and
integrating it within his memory.
For example, a person desires to buy a laptop for his son to be gifted to him when he goes to college,
which would be three years later. The father plans well in advance, tries to collect information through
advertisements, brochures, trade journals, visits to dealers, and word of mouth from peers and
colleagues. Within this period he gets involved with the product category and after three years is in a
position to take a decision based on the facts that he has collected. This is referred to as enduring
involvement.

6.1.9.2 The Learn-Feel-Do Hierarchy Model:

With implications for marketing communication, the learn-feel-do-hierarchy model, was
proposed by Vaughn and his colleagues in the 1980’s at Foote, Cone and Belding; thus, it also acme
to be known as the FCB Matrix,. Consumer decision making varies across the nature of
product/service offerings. According to the model, some purchases are backed by a lot of cognition
and thinking, while others are based on feelings and emotions. The combination of these reference
points produces a strategy matrix. The marketer has to choose appropriate strategies for different
kinds of product/service offerings. He needs to analyze the nature of his product, and design his
promotion strategy accordingly; the advertising medium should relate to the product category.
The learn-feel-do model is a simple matrix that links consumer decision making and
consumer choices to three components which are information (learn), attitude (feel), and behavior
(do). The matrix classifies consumer decision-making along two dimensions, high/low involvement
and thinking/feeling. Involvement as a dimension is represented on a continuum as high and low;
over time one moves from high to low involvement. Thinking and feeling represent the other axis
again as two ends of a continuum; with time, there is a movement from thinking toward feeling (See
Figure 1).
As illustrated in the matrix, based on cross combinations, there are four cells, viz., High
Involvement/High Thinking, High Involvement/High Feeling, Low Involvement/Low Thinking and
Low Involvement/Low Feeling. Put together they Each of these quadrants holds relevance to
designing of marketing communication and can be explained as follows:
Joint

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a) High Involvement/High Thinking: This quadrant of the matrix consists of high involvement
and thinking, typically signifying higher level of rationality. Products that fall into this quadrant are
high involvement products, where decision making involves a lot of thinking. Because of the nature
of product/service offerings that fall in this category, consumers have a high need for information.
Also, consumer decision making is driven by economic motives. Examples of products that would
fall into this quadrant include cars, laptops, real estate etc as well as innovative products. The
strategy model is learn → feel → do.
b) High Involvement/High Feeling: This quadrant is representative of situations which are high
involvement and high feeling; while there is a level of involvement, information and thinking is less
important than the feeling factor; this is because such purchases are related to the persons self-
esteem. The affect component is stronger than the information factor. The person is drawn by the
feeling, emotional and psychological motives; and, they become a "feeler" about the product.
Examples include sports cars and motorcycles, fashion apparel and jewellery, perfumes etc. The
strategy model is feel → learn → do.
c) Low Involvement/Low Thinking: The third cell requires minimal effort on the part of the
consumer, both in terms of involvement and thinking. It actually results from habit forming within
the consumer (or the doer), as a result of habitual buying and purchase. He becomes a reactor in the
sense that whenever he has a need, he reacts and immediately purchases whatever brand he has been
purchasing. Over a period of time, almost all products would fall into this quadrant. Examples of
products that would involve the low involvement/thinking dimensions include staples, bread,
stationery, soap etc. The strategy model is feel → learn → do.
d) Low Involvement/Low Feeling: The products that fall in this quadrant signify low
involvement and low feeling; yet, they promote self satisfaction. Consumers buy such products to
satisfy personal tastes, many a times influenced by peer influence and social pressures. Examples
include cigarettes, liquor, movies etc. The strategy model is do→ feel → learn.

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Implications for a marketer:
1. For high involvement/high thinking products, the marketer should provide such information about
the product/service and the brand offering that helps build a favorable attitude for his brand, so that it
could lead to a purchase. The focus of the advertisement should be on factual relevance.
2. For products that fall in the high involvement/high feeling quadrant, a marketer should devise a
promotional strategy that arouses an affective state that is positive and favorable. A good
psychological emotional and mood state would create an urge within the consumer to learn more
about the offering, and finally buy the product/service. The advertisement should focus on both facts
and entertainment.
3. For low involvement and low thinking products, the marketer needs to create and maintain brand
loyalty; promotional strategies should focus on creation of brand recall. The advertisement should
focus on both facts and entertainment.
4. This proves to be challenging for marketers as consumers are driven by social pressures and brand
loyalty is short lived. The promotional strategy should include social appeals with an entertainment
orientation.

6.1.9.3 The Level of Message Processing Model:

The level of involvement has an impact on the information gathering and processing. Based on this
premise, the level of message processing model states that a consumer’s attention to advertising is
influenced by varying levels of involvement, and runs across preattention, focal attention,
comprehension, and elaboration. Each of these levels is indicative of different level of message
processing, and is explained as follows:
a) Preattention: This level of involvement requires only a limited processing and, thus the desire is
just to gain some amount of familiarity;
b) Focal attention: A degree greater than the first stage, here the consumer concentrates on the
message source and context, and becomes receptive to basic information like product/brand name
and usage.
c) Comprehension: At this level, the consumer focuses on the message content and tries to
understand it in terms of features, attributes, benefits, price, availability etc.
d) Elaboration: During this highest stage of involvement, the consumer integrates the message into
his memory, forms beliefs and either adds to or modifies the information that already exists in his
memory.

Implications for a marketer:

1. The marketer should design his promotion message according to the level of involvement that
exists for the majority of the segment for that product/service category.
2. For high involvement products, the marketer needs to move the consumers from a state of
preattention to elaboration. This becomes all the more necessary for consumers who are typically low
on involvement because of their basic personal traits.

6.1.9.4 The Product versus Brand Involvement Model:

This model assesses consumer involvement at two levels, product and brand. A consumer may be
involved with a product/service category but may not be necessarily involved with the brand. The
converse may also be true, where he may be involved with the brand and not with the product/service
category.
According to the model, consumers can be classified into four types according to their involvement with
the product/service category and with the brand. These categories are as follows: Brand loyalists,

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Information seekers, Routine brand buyers and, Brand switchers. The model could hold relevance when
involvement is used as a segmentation criteria (See Figure 2).

a) Brand loyalists: Brand loyalists are consumers that are highly involved with the product
category as well as the brand. As both product and brand are of high involvement, the marketer
should provide information about the product category as well as the brand. As the consumers are
involved with the brand as well, they exhibit brand loyalty.
b) Information seekers: This is a consumer category that is highly involved with the product
category but shows low involvement with the brand. The consumers here do not think much about
the brand, show less preference towards the brands and would not have established a preferred brand;
brand loyalty is absent in most cases, and maybe very low in a few cases. Such consumer put in
efforts to search out collect information about the product category and the various brands. After they
have processed such information and compared the various options, they make a decision on which
brand is best.
c) Routine brand buyers: Routine brand buyers are not highly involved with the product
category but shows involvement with a particular brand within that category. They tend to show a
level of loyalty towards the brand, although they are not particularly interested in the product
category. If and when they need to use a product, they patronize a particular preferred brand only.
d) Brand switchers: Consumers who fall in this category are neither involved neither with the
product category nor with the brand. They buy anything they can get hold off and not particular
about the product or the brand. As the term suggest, they keep on switching their brands. They do not
have an emotional bond with any brand. Generally, such consumers are price sensitive and respond
to price.

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Social stratification
Social stratification is a kind of social differentiation whereby a society groups people
into socioeconomic strata, based upon their occupation and income, wealth and social
status, or derived power (social and political). As such, stratification is the relative social
position of persons within a social group, category, geographic region, or social unit. In
modern Western societies, social stratification typically is distinguished as three social
classes: (i) the upper class, (ii) the middle class, and (iii) the lower class; in turn, each
class can be subdivided into strata, e.g. the upper-stratum, the middle-stratum, and the
lower stratum.[1] Moreover, a social stratum can be formed upon the bases of kinship,
clan, tribe or caste, or all four.

Types of Social Classes of People

Social class refers to a group of people with similar levels of wealth, influence, and status.
Sociologists typically use three methods to determine social class:

 The objective method measures and analyzes “hard” facts.

 The subjective method asks people what they think of themselves.

 The reputational method asks what people think of others.

Results from these three research methods suggests that in the United States today approximately
15 to 20 percent are in the poor, lower class; 30 to 40 percent are in the working class; 40 to 50
percent are in the middle class; and 1 to 3 percent are in the rich, upper class.

The lower class

The lower class is typified by poverty, homelessness, and unemployment. People of this class, few of
whom have finished high school, suffer from lack of medical care, adequate housing and food, decent
clothing, safety, and vocational training. The media often stigmatize the lower class as “the underclass,”
inaccurately characterizing poor people as welfare mothers who abuse the system by having more and
more babies, welfare fathers who are able to work but do not, drug abusers, criminals, and societal
“trash.”

The working class

The working class are those minimally educated people who engage in “manual labor” with little or no
prestige. Unskilled workers in the class—dishwashers, cashiers, maids, and waitresses—usually are
underpaid and have no opportunity for career advancement. They are often called the working poor.
Skilled workers in this class—carpenters, plumbers, and electricians—are often called blue collar
workers. They may make more money than workers in the middle class—secretaries, teachers, and
computer technicians; however, their jobs are usually more physically taxing, and in some cases quite
dangerous.

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The middle class

The middle class are the “sandwich” class. These white collar workers have more money than those
below them on the “social ladder,” but less than those above them. They divide into two levels
according to wealth, education, and prestige. The lower middle class is often made up of less educated
people with lower incomes, such as managers, small business owners, teachers, and secretaries. The
upper middle class is often made up of highly educated business and professional people with high
incomes, such as doctors, lawyers, stockbrokers, and CEOs.

The upper class

Comprising only 1 to 3 percent of the United States population, the upper class holds more than 25
percent of the nation's wealth. This class divides into two groups: lower‐upper and upper‐upper. The
lower‐upper class includes those with “new money,” or money made from investments, business
ventures, and so forth. The upper‐upper class includes those aristocratic and “high‐society” families
with “old money” who have been rich for generations. These extremely wealthy people live off the
income from their inherited riches. The upper‐upper class is more prestigious than the lower‐upper
class.

Wherever their money comes from, both segments of the upper class are exceptionally rich. Both
groups have more money than they could possibly spend, which leaves them with much leisure
time for cultivating a variety of interests. They live in exclusive neighborhoods, gather at
expensive social clubs, and send their children to the finest schools. As might be expected, they
also exercise a great deal of influence and power both nationally and globally.

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