WHY CONSUMER BEHAVIOUR IMPORTANT

EARLIER - DEMAND > SUPPLY

PRODUCTION CONCEPT - PRODUCTION & DISTRIBUTION PLANNING
PRODUCT CONCEPT - R & D
SELLING CONCEPT - SALES PLANNING
NOW,
MARKETING CONCEPT - PLANNING AROUND CUSTOMER NEEDS.

CONSUMER BEHAVIOUR

MENTAL DECISION PROCESS & PHYSICAL ACTIVITY - THAT

CONSUMERS DISPLAY IN SEARCHING, EVALUATING, SELECTING,
ACQUIRING, USING OR DISPOSING OF GOODS & SERVICES

BEFORE, DURING AND AFTER PURCHASE EVALUATIONS AND

ACTIONS AND INFLUENCES GOVERNING THE SAME.

CONSUMER BEHAVIOUR - 7 OS FRAMEWORK

OCCUPANT - WHO BUYS (DEMOG,PSYCHO, GEO, MEDIA)

OBJECT - WHAT DO PEOPLE BUY (PRODUCT, BRANDS, FEATURES, SIZES,
VARIETY)
OBJECTIVE - WHY (BENEFITS, MOTIVES)
OCCASION - WHEN (WHEN BUY/USE, HOW OFTEN BUY/USE)
OUTLET - WHERE
OPERATIONS - HOW (INVOLVEMENT, STAGES, SOURCES OF
INFORMATION & EVALUATION PROCESS, RISK
PERCEIVED)
ORGANISATION - WHO ARE INVOLVED
3

BUYING ORGANISATION / BUYING ROLES

INITIATOR - RECOGNISES NEED

INFLUENCER - PURCHASE DECISION, BRAND, USE.
DECIDER - WHETHER TO BUY, WHEN, WHAT, HOW MUCH TO SPEND.
BUYER - MAKES PURCHASE
USER - CONSUMES OR USES
GATEKEEPER - CONTROLS FLOW OF INFORMATION/PRODUCTS
PREPARER - TRANSFORMS PRODUCT
MAINTAINER - SERVICES OR REPAIRS SO THAT PRODUCT GIVES
CONTINUOUS SATISFACTION
DISPOSER - WHO CARRIES OUT / INITIATES DISCONTINUATION
4

USE OF CONSUMER BEHAVIOUR

MICRO PERSPECTIVE
1.

PRODUCT MANAGERS
A) MARKETING OPPORTUNITIES
B) SEGMENTATION
C) POSITIONING
D) MARKETING MIX

2.

ADVERTISING & MEDIA PLANNERS

A) ADVERTISING THEMES
B) MEDIA

3.

MACRO PERSPECTIVE
A) GOVERNMENT WHAT PRODUCTS / SERVICES TO PROVIDE &
PROBLEMS
B) DEMARKETING

BLACK BOX
A diagram of the
Black-box approach
Observable stimuli
To inferences about
(inputs)
Intervening variables.

Black
Blackbox
box

Observable
Responses
(outputs)

Observed relationship between inputs and outputs

6
Inference results in identifying intervening variables and character zing their nature

RELATIONSHIP BETWEEN STIMULUS, RESPONSE &

INTERVENING VARIABLES

1. STIMULUS VARIABLES - EXIST IN EXTERNAL OR INTERNAL

ENVIRONMENT.
2. RESPONSE - OVERT (PURCHASE, RECOMMENDATION)-which can be
seen or heard by others
COVERT (ATTITUDE)-which cannot be seen by other people
3. INTERVENING - MAGNIFY, REDUCE OR MODIFY INFLUENCE OF
S.V. ON R.V.

PROBLEMS IN MEASURING CONSUMER BEHAVIOUR

Given stimulus produces different responses in different individuals and

different responses in same individual at different times because of different
intervening variables influence.

External environment influence individual determinants.

Many intervening variables and that too interacting.

Black box.

DECISION PROCESS FRAMEWORK FOR CB

External Environment
Sub
cul

nces
flue
n
i
l
tura
Cul

Information

deter
mina
nts

Feedback

ot

iv
a

tio

Ot
her

es
enc
flu
s in

ory
mem
nd

Information search and evaluation

la s
al c

an
d

Problem recognition

ga
nin

inf

in
vo

r
Lea

lv

processing

i
Soc

lue
nce
s

em
en
t

idual
Indiv

tur
al i
nfl
uen
ces

Decision process
Purchasing processes

ti
At
s
de
tu

l
na
rso
Pe

Postpurchase behavior

lue
Inf
es
nc

sel
y and
t
i
l
a
on
Pers

Family Influences

cept
f-con
So

up
ro
g
l
cia

es
nc
e
flu
in

PERSPECTIVES TO CONSUMER BEHAVIOUR

1. Decision-making perspective

2. Experiential perspective

3. Behavioral influence perspective

10

MEASURING CONSUMER CHARACTERISTICS

1.

DEMOGRAPHICS AGE, INCOME ETC. SECONDARY SOURCES.

2.

CONSUMER ACTIVITY DESCRIPTIVE WHATS & HOWS

SURVEYS & OBSERVATION.

3.

COGNITIVE MEASURES QUALITATIVE WHYS QUALITATIVE

TECHNIQUES LIKE FOCUS GROUP, DEPTH
INTERVIEW & PROJECTIVE TECHNIQUES.

11

CONSUMER ORIENTED RESEARCH

1.

EFFECT OF MACRO ENVIRONMENT FACTORS

2.

MARKET AND SEGMENT OPPORTUNITY

3.

PRODUCT RESEARCH PRODUCT, BRANDING, PACKAGING

4.

PRODUCT USAGE

5.

PRICING RESEARCH

6.

ADVERTISING

7.

MEDIA

8.

SALES PROMOTION

9.

DISTRIBUTION

10. EFFECT OF COMPETITIVE ACTIVITY ON CONSUMERS

11. POST-PURCHASE ANALYSIS

12

PRIMARY RESEARCH METHODS FOR SELECTED

CONSUMER BEHAVIOUR VARIABLES
EXPERIMENTATION

Motivation

OBSERVATION
AND
INFERENCE

SELF
REPORTS
(SURVEYS)

PROJECTIVE
TEST

FOCUS
GROUPS/
DEPTH
INTERVIEWS

Personality

Segmentation

Perception

Attitudes
Communication

X
X

Family
Decisions

Opinion
Leadership

Social Class
Culture and
Subculture

13

TYPES OF RESEARCH TOOLS USED IN CONSUMER

RESEARCH STUDIES

RESEARCH
METHODS

EXPERIMETATION

OBSERVATION
AND
INFERENCE

SELF REPORTS
(SURVEYS)

PROJECTIVE TEST

FOCUS GROUPS/
DEPTH
INTERVIEWS

RESEARCH
TOOLS

COPY PRETESTS
SPLIT CABLE
TACHISTSCOPES

CAMERAS
CAMCORDERS
RECORDERS
PRODUCT
SCANNERS
PEOPLE
METERS
CONTENT
ANALYSIS

ETHNOGRAPHY

QUESTIONNARES
INVENTORIES
ATTITUDE
SCALES
- LIKERT SCALES
- SEMANTIC
DIFFERENTIAL
SCALES
- RANK-ORDER
SCALES
- VALUE
INSTRUMENTS

WORD
ASSOCIATION
SENTENCE
COMPLETION
FIGURE DRAWINGS
PICTURE SORTING
INK BLOTS
CARTOONS (TAT)
OTHER PERSON
CHARACTERIZATION

SCREENER
QUESTIONNAIRE
DISCUSSION
GUIDES

14

CULTURE

CULTURE IS SUM TOTAL OF LEARNED BELIEFS, VALUES, CUSTOMS

THAT SERVE TO DIRECT THE BEHAVIOUR OF MEMBERS OF
PARTICULAR SOCIETY.

15

CULTURE

MATERIAL- physical

PRODUCTS &
SERVICES

NON-MATERIAL- nonphysical

MARKETING
TECHNO
INSTITUTIONS
SYSTEMS
(DISTRIBUTION,
ADVTG AGENCIES,
ADVERTISEMENTS

IDEOLOGICAL

ORGANISATIONAL
SYSTEMS

16

CHARACTERISTICS OF CULTURE

1. INVISIBLE
2. LEARNED - Enculturation & acculturation - family, mass media, society.
3. SOCIALLY SHARED - Through common values language & symbols
4. PRESCRIPTIVE- established
5. PERSISTENT BUT ADAPTIVE

17

SUB-CULTURE

1. URBAN - RURAL
2. REGION
3. AGE
4. GENDER
5. OCCUPATION
6. SOCIAL CLASS
7. RELIGION

18

MANIFESTATIONS OF CULTURE
NATIONAL CULTURE
SUBCULTURE
SYMBOLS VERBAL OR NON-VERBAL (SHAPES, SIGNS, COLOURS, M. MIX)
TABOOS
CUSTOMS
RITUALIZED ACTIVITIES
19

CULTURE / SUBCULTURE AFFECTS

1. VALUES
2. LIFESTYLE
3. PRODUCT CHOICE
4. PRICING V/S QUALITY ORIENTATION
5. SHOPPING BEHAVIOUR - FROM WHERE, HOW OFTEN, RATIONAL V/S
IMPULSIVE, COMPARATIVE
6. APPEALS & MEDIA
7. REFERENCE GROUPS IMPORTANT
8. PERSONALITY TRAITS
9. BRAND LOYALTY
20

MARKETING IMPLICATIONS

1. PRODUCT FIT WITH CORE VALUES & MATERIAL CULTURE

2. ADVERTISING FIT WITH CORE VALUES
3. OTHER MARKETING ELEMENTS FIT WITH MATERIAL CULTURE
4. USE OF LANGUAGE
5. USE OF SYMBOLS
6. USE OF CUSTOMS
7. USE OF RITUALS
8. CONTRIBUTING TO CHANGING THE MATERIAL CULTURE

21

SOME CULTURAL VALUE DIMENSIONS

1.

MATERIAL ACQUISITION V/S EXPERIENTIALISM

2.

PRESENT V/S FUTURE

3.

HEALTH & FITNESS

4.

APPEARANCE

5.

RECEPTIVITY TO TECHNOLOGY

6.

INDIVIDUALISM V/S COLLECTIVISM

7.

MATERIAL COMFORT

8.

ACHIEVEMENT ORIENTATION

22

MEASUREMENT OF CULTURE

1.

CONTENT ANALYSIS VERBAL, WRITTEN, PICTORIAL COMMUNICATIONS

2.

CONSUMER FIELDWORK DEPTH INTERVIEWS, FOCUS GROUPS AND

OBSERVATION

3.

VALUE MEASURMENT SURVEY INSTRUMENTS

(A) ROKEACH VALUE SURVEYS (RVS)
(B) LIST OF VALUES (LOV)
(C) SRI VALS 2

23

CULTURAL VALUES
TERMINAL VALUES

INSTRIMENTAL VALUES

(END-STATES OF EXISTENCE)

(MODES OF CONDUCT)

A comfortable life (a prosperous life)

Ambitious (hardworking, aspiring)

An exciting life (a stimulating, active life)

Broadminded (open-minded)

A sense of accomplishment (lasting

Capable (competent, effective)

contribution)

Cheerful (lighthearted, joyful)

A world at peace (free of war and conflict)

Clean (neat, tidy)

A world of beauty (nature and the arts)

Courageous (standing up for your beliefs)

Equality (brotherhood, equal opportunity)

Forgiving (willing to pardon others)

Family security (taking care of loved ones)

Helpful (working for others welfare)

Freedom (independence, free choice)

Honest (sincere, truthful)

Happiness (contendness)

Imaginative (daring, creative)

Inner harmony (freedom from inner conflict)

Independent (self-reliant, self-sufficient)

Mature love (sexual and spiritual intimacy)

Intellectual (intelligent, reflective)

National security (protection from attack)

Logical (consistent, rational)

Pleasure (an enjoyable, leisurely life)

Loving (affectionate, tender)

Salvation (saved, eternal life)

Obedient (dutiful, respectful)

Self-respect (self-esteem)

Polite (courteous, well mannered)

Social recognition (respect, admiration)

Responsible (dependable, reliable)

True friendship (close companionship)

Self-controlled (restrained, self-disciplined)

Wisdom (a mature understanding of life)

24

TERMINAL VALUES

TERMINAL
VALUES

PRODUCT CLASS

BELIEFS AND
ATTITUDES
ABOUT
PRODUCT CLASS
PRODUCT CLASS
SELECTION

BRAND
SELECTION

INSTRUMENTAL
VALUES

BRAND CHOICE
CRITERIA (I.E.,
CRITICAL BRAND
ATTRIBUTES

BELIEFS AND
ATTITUDES
ABOUT BRANDS
25

LOV SEGMENTS

1.

SELF-RESPECT

2.

SECURITY

3.

WARM RELATIONSHIPS WITH OTHERS

4.

SENSE OF ACCOMPLISHMENT

5.

SELF-FULFILLMENT

6.

BEING WELL RESPECTED

7.

SENSE OF BELONGING

8.

FUN AND ENJOYMENT IN LIFE

26

SRI VALS 2 SEGMENTS

Actualizers

Principle

Oriented

Fulfilled

Believers

Status

Oriented

Achievers

Strivers

Strugglers

Action

Oriented

Experiencers

Makers

27

SRI VALS 2 SEGMENTS

Actualizers
Enjoy the finer things
Receptive to to new products,
technologies, distribution Skeptical of
advertising Frequent readers of a wide
variety of publications Light TV
viewers.

Fulfilled
Little interest in image or prestige
Above-average consumers of
Products for the home
Like education and public
Affair programming
Read widely and
often

Believers
Buy American
Slow to change habits
Look for bargains
Watch TV more than average
Read retirement, home and
Garden, and general
Interest magazines

Achievers
Attracted to premium products
Prime target for variety of
Products
Average TV watchers
Read business, news, and
publications

Strivers
Image conscious
Limited discretionary
Income but carry
Credit balances
Spend on clothing and
Personal care products
Prefer TV to reading

Strugglers
Brand loyal Use coupons
And watch for sales Trust advertising
Watch TV often Read tabloids and
womens magazines

Experiencers
Follow fashion and fads
Spends much of disposable
Income on socializing
Buy on impulse
Attend to advertising
Listen to rock music

Makers
Shop comfort,
Durability, value
Unimpressed by luxuries
Buy the basics
Listen to radio
Read auto, home mechanics,
Fishing, outdoor
magazines

28

CROSS-CULTURAL ANALYSIS
Cross-cultural analysis helps to determine how people in two or more societies are
similar and how are they different by understanding unique psycholgical, social,
cultural/ environmental characteristics of each culture. Such an underastanding of the
similarities & differences that exists between nations is critical to the global marketer.
The greater the similarity between nations, the more feasible it is to use relatively
similar strategies in each nation.
Cultural adaption is necessary. Because of cultural nationalism (john naisbit)
Avoid self referencing criterion (j.A. Lee, cultural anthropologist)
Avoid ethnocentrism

29

FRAME WORK FOR CROSS-CULTURAL ANALYSIS

I.
1.
2.
3.
4.
5.

HOFSTEDES DIMENSIONS
INDIVIDUALISM V/S COLLECTIVISM
HIGH V/S LOW POWER DISTANCE
MASCULINE V/S FEMININE
UNCERTAINTY AVOIDANCE
CONFUCIANIST DYNAMICS

II.
1.
2.
3.
4.
5.

EDWARD HALL HIGH V/S LOW CONTEXT CULTURES

-SILENT LANGUAGE
SPACE
MATERIAL POSSESSIONS
FRIENDSHIP PATTERNS
CONTRACTUAL AGREEMENTS EXPLICIT OR IMPLICIT
PERCEPTION OF TIME POLYCRONIC V/S MONOCRONIC

III.

HOMOGENEITY V/S HOMOPHILOUS CULTURE

30

CROSS-CULTURAL ANALYSIS

IV.

GANNONS METAPHORS

V.

KLUCKHORNS DIMENSIONS
1. HUMAN NATURE
2. PEOPLE-NATURE RELATIONSHIP
3. TIME SENSE
4. ACTIVITY
5. SOCIAL RELATIONS

VI.

RELIGION & SOCIAL BEHAVIOUR

31

INDIVIDUALIST

INDIVISUALISM

COLLEECTIVIST

THE POSITION OF THE 40 COUNTRIES ON THE POWER

DISTANCE AND INDIVIDUALISM SCALES
12
14
16
8
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
53
55
57
59
61
63
65
67
69
71
73
75
77
79
81
83
85
87
89
91

SMALL

POWER DISTANCE

LARGE

PAK
COL VEN
TAI
PER
THA CHL SIN
POR HOK
GRE
TUR YUG
ARG JAP BRA MEX
IRA IND PHI
AUT
ISR
IRE
DEN

+
11

SPA

FIN
GER

NOR
SWI SWE

SAF
FRA

NZL CAN
NET GBR
AUL USA
+
28

BEL
ITA
32
+
44

+
61

+
77

+
94

STRONG

UNCERTAINTY AVOIDANCE

WEAK

THE POSITION OF THE 40 COUNTRIES ON THE UNCERTAINTY

AVOIDANCE AND MASCULINITY SCALES
8
11
13
16
19
21
24
27
29
32
35
37
40
43
45
48
51
53
56
59
61
64
67
69
72
75
77
80
83
85
88
91
93
96
99
101
104
107
109
112

FEMININE

MASCULINITY

MASCULINE

SIN

DEN
SWE

HOK

NOR
NET
FIN

CHL
YUG
POR
+

IRE

GBR
IND
CAN

PER
IRA
THA

SWI
GER

TAI PAK

BRA
ISR
SPA FRA
TUR
PER

USA PHI
SAF
NZL AUL

ITA
COL VEN
MEX
ARG BEL

JAP

GRE
+

AUT

33
+

VARIATIONS IN VALUE SYSTEMS

ORIENTATION
HUMAN NATURE

EVIL

RANGE
MIXTURE OF GOOD AND

GOOD

EVIL

PEOPLE-NATURE

SUBJUGATION TO NATURE

HARMONY WITH NATURE

RELATIONSHIP

TIME SENSE

MASTERY OVER
NATURE

PAST ORIENTED (TRADITION

PRESENT ORIENTED (SITUATIONAL)

BOUND)

FUTURE ORIENTED
(GOAL ORIENTED)

ACTIVITY

BEING

BEING-IN-BECOMING

LINEAL (AUTHORIAN)

COLLATERAL

INDIVIDUALISTIC

DOING

34

CROSS-CULTURAL ISSUES

INDIVIDUALISM V/S COLLECTIVISM

ACHIEVEMENT & SUCCESS

ROMANTIC ORIENTATION AND SEXISM

ROLE OF CHILD

MASCULINITY V/S FEMINITY

SPIRIT OF COMPETITION

AGE GROUP FOCUS YOUNG V/S OLD

MATERIALISTIC V/S NONMATERIALISTIC CULTURE

IMMEDIATE V/S POSTPONED GRATIFICATION

PERSONAL HYGEINE, GROOMING, HEALTH & FITNESS,

APPEARANCE

STATUS OR NEED ORIENTED

TRADITION V/S CHANGE

RISK TAKING V/S SECURITY

SELF V/S OTHERS

35

CROSS-CULTURAL ISSUES

CONTROL OVER NATURE AND ENVIRONMENT V/S SUBJUGATION

LIVING IN PRESENT V/S PLANNING FOR FUTURE

RESISTANCE V/S RECEPTIVITY TO NEW TECHNOLOGY

36

STRATEGIC IMPLICATIONS OF CROSS-CULTURAL ANALYSIS

1.

People buy with reason. Motives may be different & not obvious sometimes.

2.

Social-cultural context of buying different. E.G. Individual V/s group decisionmaking.

3.

Means-end relationship (functional v/s emotional)

37

BASIC RESEARCH ISSUES IN CROSS-CULTURAL ANALYSIS

1.

DIFFERENCES IN LANGUAGE & MEANING.

2.

DIFFERENCES IN MARKET SEGMENTATION OPPORTUNITIES

3.

DIFFERENCES IN CONSUMPTION PATTERNS

4.

DIFFERENCES IN THE PERCEIVED BENEFITS OF PRODUCTS & SERVICES.

5.

DIFFERENCES IN THE CRITERIA FOR EVALUATIONG PRODUCTS &

SERVICES.

6.

DIFFERENCES IN ECONOMIC & SOCIAL CONDITIONS & FAMILY

STRUCTURE.

7.

DIFFERENCES IN MARKET STRUCTURE & CONDITIONS

8.

DIFFERENCES IN MARKETING RESEARCH POSSIBILITIES

38

POSSIBLE MARKETING STRATEGIES

1.

STANDARDISED PRODUCT & COMMUNICATION

2.

STANDARDISED PRODUCT LOCAL COMMUNICATION STRATEGY

3.

LOCALISED PRODUCT AND STD COMMUNICATION STRATEGY

4.

LOCALISED PRODUCT & COMMUNICATION

39

GENERALLY

1.

Advertising standardization for foreign products in developing markets but

localised advertising in developed economics.

2.

For high involvement products i.E. High tech (computers) or high touch (perfumes)
global strategy

3.

For low involvement products in mid-range of tough/ tech-local strategy.

4.

CULTURE BOUND
CONSUMER PRODUCTS
ESTABLISHED PRODUCTS
SIMPLE TECHNOLOGY
KITCHEN PRODUCTS

NOT-CULTURE BOUND
INDUSTRIAL
NEW PRODUCTS
HIGH-TECH
YOUNG PEOPLE
WELL TRAVELLED EGODRIVEN UPPER

SEGMENT
40

SOCIAL CLASS

Division of members of a society into a hierarchy of distinct status classes so that

members of each class have relatively same status, respect, prestige & members of all
others classes have more or less status, respect, prestige.

41

SOCIO-ECONOMIC CLASSIFICATION
BASED ON THE EDUCATION & OCCUPATION OF CHIEF WAGE EARNER
Education
Occupation

Unskilled Workers

Illiterate

E2

School: upto 4
years
E2

School: 5 -9
years

SSC/ HSC

E1

Some College but

not graduate
D

Graduate /
Graduate/
Post-Graduate Post-Graduate
General
Professionals
D

Skilled Workers

E2

E1

B2

B2

Petty traders

E2

B2

B2

Shop owners

B2

B1

A2

A2

None
1- 9
10 *

D
C
B1

C
B2
B1

B2
B2
A2

B1
B1
A2

A2
A2
A1

A2
A1
A1

A1
A1
A1

Self-employed
Professionals

B2

B1

A2

A1

Clerical / Salesmen

B2

B1

B1

Supervisory level

B2

B1

A2

Officers /
Executives Junior

B2

B1

A2

A2
42

Businessmen
Industrialists with
No. on employees:

Officers / Executives

SOCIAL CLASS CHARACTERISTICS

1.

Hierarchical and exhibit status.

2.

Affect behaviour values, attitudes, lifestyles, consumer behaviour.

3.

Frame of reference higher (aspirational) same class (std).

4.

Natural basis of segmentation.

5.

Consumers buy symbols of status to enhance status within social class.

43

SOCIAL CLASS MEASUREMENT

OPEN SOCIETY HIGH SOCIAL MOBILITY AND EARNED SOCIAL STATUS.

CLOSED SOCIETY LOW SOCIAL MOBILITY AND DECIDED AT BIRTH.

44

SOCIAL CLASS & CONSUMER BEHAVIOUR

I. AFFECTS PRODUCT FORMS, BRANDS, & USAGE MORE THAN GENERIC

CATEGORIES.
II. LIFESTYLE & VALUES
III. STORE BEHAVIOUR
IV. MEDIA HABITS
V. PRICE - QUALITY ORIENTATION

45

SOCIAL CLASS (MILLION HOUSEHOLDS)

SOCIAL CLASS

INCOME

URBAN

RURAL

VERY RICH

> 2,15,000 p.a.

2.1

1.0

CONSUMING

45,000 - 2,15,000

27.5

25.9

CLIMBERS

22,000 - 45,000

17.0

54.2

ASPIRANTS

16,000 - 22,000

3.2

25.7

DESTITUTES

< 16,000

2.6

21.4

TOTAL

52.4

128.2

SOURCE: NCAER 2001 - 2002.

46

CONSUMING CLASS URBAN INDIA

MILLION HOUSEHOLDS
A1

1.8

A2

3.0

B1

4.5

B2

4.1

10.8

11.7

E1

5.5

E2

9.6

SOURCE : IRS 2001

A1 IS TOP CONSUMING CLASS
E2 IS LOWEST SEC, THE DESTITUTES

47

SPIRAL OF DEMAND
SOCIAL CLASS

VALUE ORIENTATION

DEMAND

VERY RICH

BENEFIT MAXIMIZERS

ANYWHERE IN WORLD
PRODUCT

CONSUMING CLASS

COST-BENEFIT
OPTIMISM

VALUE GROWTH
VIA UPGRADATION

CLIMBERS

CASH CONSTRAINED
BENEFIT SEEKERS

VOLUME GROWTH
VIA MORE
CONSUMPTION /
OCCASIONAL
CONSUMPTION

ASPIRANTS

DESTITUTES

NEW ENTRANTS INTO

VOLUME GROWTH VIA

CONSUMPTION

NEW CONSUMERS

HAND TO MOUTH

DEEP WELL

EXISTENCE
48

SOCIAL CLASS OR INCOME AS SEGMENTATION BASIS?

I. LIFESTYLE / VALUES / HOME MAKER DIFFERENCES WHERE

EXPENDITURE IS LOW E.g.. CULTURAL ACTIVITIES, SOCIAL
INTERACTION ITEMS, MEDIA HABITS, STORE BEHAVIOUR.
SOCIAL CLASS

II. SUBSTANTIAL EXPENDITURE BUT NOT STATUS SYMBOL /

CONSPICUOUS
- INCOME
III. STATUS SYMBOL / CONSPICUOUS PRODUCTS WITH MODERATE OR
SUBSTANTIAL EXPENDITURE
- INCOME + SOCIAL CLASS

49

SOCIAL CLASS MEASUREMENT

DEPENDS ON RESEARCHERS STUDY
I.

SUBJECTIVE METHOD (SELF PERCEPTION)

II.

REPUTATIONAL METHOD (OTHERS PERCEPTION)

III.

OBJECTIVE METHOD

SINGLE VARIABLE INDEX

COMPOSITE VARIABLE INDEX

INDICES OCCUPATION (BEST)

EDUCATION
INCOME (AMOUNT OR SOURCE)
QUALITY OF NEIGHBOURHOOD)
RE VALUE OF RESIDENCE

POSSESSIONS

USED TO VERIFY
50

SOCIAL GROUP

SOCIAL GROUP - CONSISTS OF PEOPLE WHO HAVE A SENSE OF

RELATEDNESS AS A RESULT OF INTERACTION WITH EACH OTHER.

AGGREGATION - PEOPLE IN CLOSE PROXIMITY TO ONE ANOTHER AT

A GIVEN TIME.

CATEGORY - NO. OF PEOPLE WHO HAVE COMMON ATTRIBUTES.

MARKETER IS INTERESTED IN NOT JUST SOCIAL GROUPS (REFERENCE
POWER) BUT ALSO AGGREGATION (EVENT MARKETING, HOARDINGS)
& CATEGORIES (SEGMENTATION, TARGETING & POSITIONING).

51

SOCIAL GROUP PROPERTIES

1.

NORMS LEARNT THROUGH SOCIALISATION

2.

TYPES PRIMARY V/S SECONDARY

FORMAL V/S INFORMAL

3.

POWER

A) REWARD
B)

COERCIVE

C)

LEGITIMATE

D) EXPERT
E)

INFORMATION REASONING, LOGIC

F)

REFERENCE

52

HOW MARKETERS USE SOCIAL GROUP POWER

1. REWARD POWER - ADS SHOWING SATISFIED CUSTOMER GETTING
GROUP ACCEPTANCE; SALESMEN GIVEN REWARDS, AMWAY VIDEO ON
FRUITS OF LABOUR.
2. COERCIVE POWER - MARKETERS USE FEAR APPEAL OR RIDICULE,
EMBARRASEMENT, SHAME TUPPERWARE - GROUP PRESSURE TO BUY.
3. LEGITIMATE POWER - SCHOOLS USE IN COLLECTING DONATIONS,
MARKETERS USE THIS - BRAND PASSED ON FROM GENERATIONS OR
APPEALS FROM CHARITABLE ORGANISATIONS.
4. EXPERT POWER - SALESMAN TO CUSTOMER, DOCTORS, EXPERT
OPINION IN ADS.
5. INFORMATION POWER - SCIENTIFIC EVIDENCE.
6. REFERENT POWER - CELEBRITIES (ASPIRATION) SLICE OF LIFE
COMMERCIALS OR TESTIMONIALS

53

REFERENCE GROUP
IS ANY GROUP / PERSON THAT SERVES AS A POINT OF REFERENCE OR
COMPARISION IN DETERMINING GENERAL OR SPECIFIC VALUES,
ATTITUDES & BEHAVIOUR.
TABLE
TYPES OF REFERENCE GROUPS

MEMBERSHIP
GROUP

NONMEMBERSHIP
GROUP

POSITIVE

CONTACTUAL GROUP

ASPIRATIONAL GROUP

INFLUENCE

(DIRECT) AUTOMATIC

(INDIRECT) SYMBOLIC

NEGATIVE

DISCLAIMANT GROUP

AVOIDANCE GROUP

INFLUENCE

(DISSASSOCIATIVE) 54

REASONS FOR ACCEPTING REFERENCE GROUP INFLUENCE

1. INFORMATIONAL BENEFITS
ENHANCE KNOWLEDGE / COPING ABILITY
OBSERVATION OR EXPERT RATINGS
EXPERT OPINION ADS OR SLICE OF LIFE
2. UTILITARIAN BENEFITS
PRESSURE TO CONFORM BECAUSE OF REWARDS / SANCTIONS
VISIBILITY IMPORTANT
ADS IN SOCIAL SETTING
3. VALUE EXPRESSIVE
TO ENHANCE SELF-IMAGE BY ASSOCIATING WITH POSITIVE
REFERENCE GROUPS
CELEBRITY ADS

55

VARIABILITY OF REFERENCE GROUP INFLUENCE

I. PRODUCT
NECESSITY

LUXURY

PRODUCT

PRODUCT

BRAND

BRAND

NON

PRODUCT

PRODUCT

CONSPICUOUS

BRAND

BRAND

CONSPICUOUS

PRODUCT MAY SHIFT FROM WEAK TO STRONG BRAND INFLUENCE &

VICE VERSA
DIFFERENT STRATEGIES FOR THE QUADRANTS

II. WHICH GROUP ACTS AS REFERENCE

56

VARIABILITY OF REFERENCE GROUP INFLUENCE

III. EXTENT OF REFERENCE

PROXIMITY
STUDENTS (HEDONISM)
PERSONALITY OF INDIVIDUAL, GENDER, AGE.
IV. TYPE OF INFLUENCE
E.g.. COMPLEX PRODUCT - INFORMATIONAL INFLUENCE
V. LIFE CYCLE SITUATION
INTRODUCTION

PRODUCT

BRAND

GROWTH

PRODUCT

BRAND

MATURITY

PRODUCT

BRAND

DECLINE

PRODUCT

BRAND
57

FAMILY

1. CONSUMER SOCIALISATION PROCESS

2. USES PRODUCTS AS REWARDS
3. FAMILY DECISION MAKING
JOINT OR H/D OR W/D OR AUTONOMOUS
4. INFLUENCE OF CHILD
5. INFLUENCE OF TEENAGER
6. FAMILY LIFE CYCLE & PRIORITY OF PRODUCTS

58

CHANGING ROLES IN THE FAMILY

THEN

FATHER

NOW

STRICT UNEMOTIONAL

CARING CONCERNED

AUTHORITARIAN

SENSITIVE

EMOTIONAL CARING

INFORMED INDEPENDENT

NURTURING

ENTERPRISING

SELF-INDULGENT

RESPONSIBLE DISCIPLINED

IRRESPONSIBLE REBELLIOUS

CAREER MINDED

STRICTLY HIERACHICAL RIGID

EGALITARIAN FLEXIBLE

PARENTAL

CONTROLLING HIERARCHICAL

DEMOCRATIC

ROLES

DISTANT

COMPANIONABLE

MOTHER

CHILDREN

SPOUSAL
ROLES

59

VARIABILITY OF INFLUENCE OF HUSBAND / WIFE / CHILD

1. PRODUCT

2. DECISION STAGES INITIATION, SEARCH & EVALUATION, FINAL

DECISION

3. DECISION AREAS WHEN TO BUY, WHAT BRAND, COLOUR,

WHERE TO BUY, HOW MUCH MONEY TO SPEND

60

FAMILY SPECIFIC CHARACTERISTICS INFLUENCE TYPE OF

DECISION MAKING

I.

CULTURE INDIAN V/S AMERICAN

II.

SUB-CULTURE URBAN V/S RURAL RELIGION

III.

SOCIAL CLASS HIGH V/S MIDDLE V/S LOW CLASSES

IV.

REFERENCE GROUPS - > SOCIAL TIES,

< JOINT DECISION-MAKING

V.

STAGE IN LIFE CYCLE JOINT DECISION-MAKING DECLINES

OVER LIFE CYCLE

VI.

MOBILITY - > MOBILITY, JOINT DECISION

VII. CHILDREN IN FAMILY IN FAMILIES, HUSBAND-DOMINATED IN

COUPLES, JOINT

61

OPINION LEADERSHIP

Opinion leadership is the process by which one individual (the opinion leader)
informally exerts influence & affects change in attitudes / behaviour of others
(o. Seekers or o. Recipients)

62

OPINION LEADERSHIP CHARACTERISTICS

INFORMAL & INTERPERSONAL (BETWEEN 2 OR MORE PEOPLE)

ESSENTIALLY VERBAL
INFORMATION & ADVICE ABOUT PRODUCT CATEGORY, BRAND,
STORE, SERVICE, HOW TO USE.
NOT COMMERCIAL SELLING SOURCE, DIRECT BRAND
EXPERIENCE HENCE PERSUASIVE

63

MULTISTEP FLOW OF COMMUNICATION THEORY

Step 2

Mass
Mass Media
Media

Step 1a

Opinion
Opinion Leaders
Leaders

Step 3

Opinion
Opinion
Receivers
Receivers //
Seekers
Seekers

Step 1b

Information
Information
Receivers
Receivers

64

OPINION LEADERSHIP CHARACTERISTICS

1. OLS ARE CATEGORY SPECIFIC

2. OVERLAP IN RELATED AREAS
3. SOME PRODUCTS MORE PRONE
Eg. PERCEIVED RISK OR INTEREST
4. MARKET MAVENS - NO PRODUCT EXPERIENCE

65

OPINION LEADERSHIP & FIRMS PROMOTIONAL STRATEGY

IDENTIFY -

A) THROUGH 4 METHODS
B) THROUGH PUR RECORDS Eg. WHO FIRST BOUGHT PUSH BUTTON
PHONES ARE LIKELY TO BUY VIDEOPHONES.
C) EARLY PRODUCT TRIERS = HEAVY USERS
D) SPONSORSHIP OF CONSUMER CONTESTS
E) SPECIAL INTEREST MAG SUBSCRIBERS

CREATE OLS - Eg. AVON

SIMULATE OLS -

A) ADS PORTRAYING PEOPLE IN INFORMAL CONVERSATIONS &

RECOMMENDATION.
B) OBSERVATION
C) TESTIMONIAL THROUGH HIDDEN CAMERA

STIMULATE OLS - TEASER, EMOTIONAL OR ENTERTAINING

CAMPAIGN, ASK A FRIEND, CONTESTS ETC.

66

MOTIVATIONS
O.L

O.R.

I.

PRODUCT INVOLVEMENT

A)

SHARE KNOWLEDGE & OPINION

A) DOES NOT KNOW & WANTS

TO LEARN ABOUT PRODUCT
OR USE

II.

SELF INVOLVEMENT

A)

REDUCE POST PURCHASE

A) REDUCE RISK

DISSONANCE

B) REDUCE SEARCH TIME

B)

GAIN ATTENTION

C)

EXPERIENCE POWER

III.

OTHER INVOLVEMENT

A)

EXPRESSIVE FRIENDSHIP ON
NEIGHBOURLINESS

A) MEANS OF SOCIAL
COMMUNICATION
B) ENSURE SOCIAL ACCEPTANCE67
BY BUYING APPROVED PRODUCTS

CHARACTERISTICS OF O. Ls
1.

SAME SOCIAL CLASS AS NON-LEADER BUT MORE STATUS.

2.

GREATER KNOWLEDGE, INTEREST & INVOLVEMENT WITH PRODUCTCATEGORY

3.

SPECIAL INTEREST MEDIA EXPOSURE

4.

SOCIABLE EXPOSURE OUTSIDE GROUP

5.

CLOSE PHYSICAL PROXIMITY

6.

INNOVATIVENESS NOT INNOVATORS BUT EARLY ADOPTERS.

7.

INDIVIDUALISM & SELF CONFIDENCE

8.

INNER DIRECTEDNESS

9.

AGE NO BARRIER
MEDICINE V/S FASHION

10. CULTURE VARIATIONS

AMERICANS V/S INDIANS

68

MEASURING OPINION LEADERSHIP

1.

SELF-DESIGNATING METHOD

2.

SOCIOMETRIC METHOD

3.

KEY INFORMANT METHOD

4.

OBJECTIVE METHOD

69

INNOVATION DEFINITION

I.

FIRM ORIENTED NOT EFFECTIVE METHOD

II.

PRODUCT ORIENTED EFFECT ON BEHAVIOUR PATTERNS

CONTINUOUS, DYNAMICALLY CONTINUOUS, DISCONTINUOS

MARKET ORIENTED SUBJECTIVE DEFINITION. DEGREE OF

EXPOSURE IN TERMS OF

A)

PERCENTAGE OF POTENTIAL MARKET WHO HAVE BOUGHT

B)

PERIOD OF TIME

III.

CONSUMER ORIENTED DEFINITION CONSUMER PERCEPTIONS

70

DIFFUSION OF INNOVATIONS

Diffusion is a macroprocess by which acceptance of an innovation (product, service,

idea, practice) is spread through communication (mass media, salespersons, informal
conversations) to members of social system (physical, social cultural environment of
target market) over a period of time

71

DIFFUSION OF INNOVATION
Exposure to Innovation
Innovation Characteristics

Consumer Characteristics

Consumer- Dependent
Relative Advantage
Compatibility
Perceived Risk
Complexity
Effect on Adoption of
Other Innovations
Consumer -Independent
Trialability
Divisibility
Reversibility
Realization
Communicability
Form of Innovation

psychological Variables
Perception
Motivation
Personality
Value Orientation
Beliefs
Attitudes
Previous Innovative
Experience
Demographics
Age
Education
Income

No

Propagation Mechanisms
Types
Marketer- Controlled vs.
Nonmarketer controlled
Personal Vs. Impersonal
Characteristics
Credibility
Clarity
Source Similarity
Informativeness

Innovation
Resistance
No

Adoption

Exposure to Innovation

Rejection

Yes
Is Innovation Amenable
to Modification ?

Yes

Modification
72

A CLASSIFICATION OF MARKETING STRATEGIES TO

OVERCOME CONSUMER RESISTANCE TO INNOVATION
SOURCE OF
RESISTANCE
(BARRIER)

MARKETING STRATEGY
PRODUCT STRATEGY

COMMUNICATION STRATEGY

PRICING STRATEGY

FUNCTIONAL BARRIERS
USAGE BARRIER
DEVELOP A SYSTEMS
PERSPECTIVE (E.G.
INTEGRATE INNOVATION
WITH PRECEDING ACTIVITY
(PACKAGING)
IMPROVE PRODUCT
PERFORMACE (MODIFICATION
AND DEVELOPMENT)
IMPROVE PRODUCT
POSITIONING

REDUCE PRICE BY
LOWERING COSTS

RISK BARRIER

USE A WELL-KNOWN
BRAND NAME

ELICIT ENDORSEMENTS
AND TESTIMONIALS

IMAGE BARRIER

BORROW A GOOD
IMAGE (BRAND NAME)

EDUCATE CUSTOMERS,
USE CHAGE AGENTS.

COPING STRATEGY

MANDATE USAGE
(MARKET DEVELOPMENT)

VALUE BARRIER

PSYCHOLOGICAL BARRIERS
TRADITION BARRIER

MARKET STRATEGY

FACILITATE TRIAL
(INCREASE MARKET
EXPOSURE)

UNDERSTAND AND RESPECT

TRADITIONS

MAKE FUN OF NEGATIVE

IMAGE. CREATE A UNIQUE
IMAGE.

73

ADOPTION

INDIVIDUAL PROCESS THAT FOCUSES ON STAGES THROUGH WHICH

INDIVIDUAL CONSUMER PASSES WHEN DECIDING TO ACCEPT OR
REJECT A NEW PRODUCT.
INVOLVES ANALYSIS OF
1. PURCHASE TIME - AFFECTS DIFFUSION
2. ADOPTER CATEGORIES DIFFERENT STRATEGIES FOR EACH
3. EXTENT OF ADOPTION - FULL OR LTD
4. STAGES IN ADOPTION PROCESS - AIETA

74

Innovators

2.5%

Early
Adopters
13.5%

Early
Majority
34%

Late
Majority
34%

Laggards
16%

Percentage of Adopters by Category Sequence

75

ADOPTER CATEGORIES
ADOPTER CATEGORY

INNOVATORS

DESCRIPTION

RELATIVE PERCENTAGE WITHIN THE

POPULATION THAT EVENTUALLY
ADOPTS

venturesome very eager to try new ideas;

2.5%

acceptable if risk is daring; more cosmopolite

social relationships; communicate with other
innovators
EARLY ADOPTERS

Respectable more integrated into the local

13.5

social system; the persons to check with before

adopting a new idea; category contains g reatest
number of opinion leaders; are role models
EARLY MAJORITY

deliberate adopt new ideas just prior to the

34.0

average time; seldom hold leadership positions;

deliberate for some time before adopting
LATE MAJORITY

skeptical- adopt new ideas just after the average time;

34.0

adopting may be both an economic necessity and a

reaction to peer pressures; innovations approached
cautiously.
LAGGARDS

traditional the last people to adopt an innovation;

16.0
76

most localite in outlook; oriented to the past;

suspicious of the new.

100.0%

COMPARATIVE PROFILE OF THE CONSUMER INNVATOR

AND THE NONINNOVATOR OR LATER ADOPTER
CHARACTERISTIC

INNOVATOR

NONINNOVATOR
(OR LATER ADOPTER)

PRODUCT INTEREST

MORE

LESS

OPINION LEADERSHIP

MORE

LESS

DOGMATISM

OPEN-MINDED

CLOSED-MINDED

SOCIAL CHARACTER

INNER-DIRECTED

OTHER-DIRECTED

OPTIMUM STIMULATION LEVEL

HIGHER

LOWER

VENTURESOMENESS

MORE

LESS

PERCEIVED RISK

LESS

MORE

BRAND LOYALTY

LESS

MORE

DEAL PRONESS

MORE

LESS

USAGE

MORE

LESS

TOTAL MAGAZINE EXPOSURE

MORE

LESS

SPECIAL- INTEREST MAGAZINE

MORE

LESS

TELEVISION

LESS

MORE

SOCIAL INTEGRATION

MORE

LESS

SOCIAL STRIVING (E.G. SOCIAL

MORE

LESS

MORE

LESS

AGE

YOUNGER

OLDER

INCOME

HIGHER

LOWER

EDUCATION

MORE

LESS

PERSONALITY

PURCHASE AND CONSUMPTION TRAITS

MEDIA HABITS

SOCIAL CHARACTERISTICS

PHYSICAL, OCCUPATIONAL MOBILITY)

GROUP MEMBERSHIPS
DEMOGRAPHIC CHARACTERISTICS

77

HOW PROMOTION VARIES BY STAGE IN THE DIFFUSION PROCESS

ADOPTER CATEGORY

SUCCESSFUL PROMOTIONAL APPROACHES

INNOVATOR AND EARLY

stress excitement of ownership.

ADOPTERS

explain how product is new and revolutionary.

use sophisticated or technical messages and cosmopolitan
appeals.
use publicity for new product announcements.
use highly credible spokespersons.
employ narrowly targeted special-interest and prestige
publications.
appeal to enthusiasts those highly involved in product
category.
Use pioneering advertising in specialized mass media.
use personal selling for high-learning products.
distribute trial size of product to homes.
use event marketing to introduce new products to
media and trade.

EARLY MAJORITY

use mass advertising to built brand preference.

stress benefits and compare brands in ads.
use demonstration-oriented advertising and house party personal selling.
rely on peer pressure to overcome deliberateness.
use price-oriented ads to gain market share.
employ sales promotion tools such as coupons and trial sizes sold in stores.
run dealer promotions to get them to stock and display the product.

78

HOW PROMOTION VARIES BY STAGE IN THE DIFFUSION PROCESS

ADOPTER CATEGORY

SUCCESSFUL PROMOTIONAL APPROACHES

LATE MAJORITY

overcome skepticism by using guarantees and seals of

approval such as Good Housekeeping, Underwriters
Laboratory, etc.
demonstrate product in store.
use on-package coupons.
stress extended warranty protection and service/ repair
centers.
use value-marketing approach in advertising stressing
high quality for a low price.
employ straightforward appeals.
use mass advertising to support dealers of the brand.

LAGGARDS

spend little on promotion because interest in product is

disappearing.

79

POTENTIAL CAUSES OF INCOMPLETED ADOPTION PROCESS

ACCEPTANCE PROCESS STAGE

MARKETING ORGANISATION CONSUMER CAUSES OF

CAUSES OF INCOMPLETED

INCOMPLETED PROCESSES

PROCESSES
AWARENESS

COMPREHENSION

POORLY USED OR TOO LITTLE

SELECTIVE EXPLOSURE

COMMUNICATION

SELECTIVE PERCEPTION

COMMUNICATION HARD TO

SELECTIVE RETENTION

UNDERSTAND
ATTITUDE

LEGITIMATION

COMMUNICATION NOT

COMPLACENCY, SUSPENDED

PERSUASIVE

JUDGMENT

POOR SOURCE EFFECT OF

PEER-GROUP PRESSURE

COMMUNICATIONS

AGAINST ADOPTION.
LAWS REGULATING USE OF
INNOVATION

TRIAL

BEHAVIORAL RESPONSE NOT

ALTERNATIVE EQUALLY GOOD

SPECIFIED IN COMMUNICATIONS INNOVATION NOT AVAILABLE

POOR DISTRIBUTION SYSTEM
ADOPTION

FAILURE TO DEVELOP NEW

PRODUCTS AND IMPROVE
OLD PRODUCTS

REPLACED BY ANOTH

INNOVATION

80

MARKETING IMPACT ON DIFFUSION

DIFFUSION CONCEPT
THE INNOVATION

MARKETING IMPACT
MARKETING ACTIONS IN PRODUCT DESIGN AND POSITIONING ARE CRITICAL IN THE
CONSUMER PERCEPTION OF THE INNOVATION AND ITS CHARACTERISTICS.

THE DIFFUSION PROCESS

MARKETING ACTIONS CAN INFLUENCE THE PATTERN AND SPEED OF DIFFUSION FOR
THE TOTAL MARKET AND BY SEGMENT BASED ON PRICING, PROMOTIONAL
EXPENDITURES, AND DISTRIBUTION INTENSITY. COMPETITIVE MARKETING
ACTIONS HAVE A SIMILAR EFFECT.

THE ADOPTION PROCESS

MARKETING ACTIONS CAN MODIFY THE SPEED OF ADOPTION AND THE FORM OF
THE ADOPTION PROCESS; FOR EXAMPLE, VIA SAMPLING PROGRAMS WHICH TAKE
CONSUMERS FROM AWARENESS TO TRIAL.

THE COMMUNICATION

MARKETING CHANGE AGENTS BEAR DISTINGUISHING

PROCESS

CHARACTERISTICS FROM THOSE IN FARMING: THEY ARE

INHERENTLY SELF-SERVING AND BIASED. ADVERTISING,
PERSONAL SELLING, AND SALES PROMOTION ARE THE
DOMINANT COMMUNICATION SOURCES AND CAN LEAD TO PURCHASE
WITHOUT OBJECTIVE, SCIENTIFIC AUTHORITY.

OPINION LEADERSHIP AND

MARKETING ACTIONS CAN BOTH PRECLUDE THE IMPORTANCE OF PERSONAL

PERSONAL INFLUENCE

INFLUENCE AND INFLUENCE THE OCCURRENCE OF PERSINAL INFLUENCE

DEPENDING ON OBJECTIVES.

ADOPTER CATEGORIES

MARKETING ACTIONS CAN BE INSTRUMENTAL IN DETERMINING WHO

THE INNOVATOR WILL BE BASED ON MARKET SEGMENTATION DECISIONS.81

MOTIVATION

Motivation is the driving force within individuals that impels them to action. This
driving force is produced by a state of tension as a result of unfulfilled need.

82

MODEL OF MOTIVATION PROCESS

LEARNING
UNFULFILLED
NEED, WANTS, TENSION
DESIRES

DRIVE

BEHAVIOUR

GOAL OR NEED
FULFILLMENT

COGNITIVE
PROCESS
TENSION
REDUCTION
NEEDS PRIMARY NEEDS / PHYSIOLOGICAL / INNATE / BIOGENIC
SECONDARY NEEDS / PSYCHOGENIC / ACQUIRED

GOALS GENERIC GOALS Eg. NEED TO SAVE

PRODUCT SPECIFC GOALS Eg. INVESTING IN FIXED DEPOSITS

83

CLASSIFICATION OF MOTIVES

1.

PHYSIOLOGICAL V/S PSYCHOGENIC

(MAY BE SIMULTANEOUSLY SATISFIED)
PSYCHOGENIC OR LEARNED OR SECONDARY MOTIVES

2.

CONSCIOUS V/S UNCONSCIOUS

3.

POSITIVE V/S NEGATIVE MOTIVES

84

CONCEPTS

1.

POSITIVE MOTIVATION

2.

NEGATIVE MOTIVATION

3.

POSITIVE GOALS / APPROACH OBJECTS

4.

NEGATIVE GOAL / AVOIDACE OBJECTS

85

NATURE OF MOTIVES

1.

For any given need, there may be many goals goals selected depend on cultural
norms/ values, goal accessibility, physical capacity, past learning, individuals self
image, reference group effect.

2.

Goal may object may satisfy different needs for different people.

3.

Goal object may satisfy many needs at sametime for a person but one prepotent need
e.G. Soft drink.

4.

People not aware of their needs, unlike goals especially psychogenic.

5.

New needs emerge as old are satisfied.

6.

Need & goals constantly changing due to constant interaction.

7.

Success & failure influence goals.

86

MOTIVES & MARKETING

HELPS MARKETERS TO

IDENTIFY BASIC STRIVINGS

DRAW ATTENTION TO GOAL OBJECTS

DRAW ATTENTION TO CHOICE CRITERIA FOR EVALUATING PRODUCTS

87

MOTIVE AROUSAL

1.

PHYSIOLOGICAL

2.

EMOTIONAL

3.

COGNITIVE

4.

ENVIRONMENTAL

88

THEORIES

1.

MCGUIRES CLASSIFICATION

2.

DANIEL STARCHS HUMAN MOTIVES USED AS COPY APPEAL

3.

MURRAYS LIST OF PSYCHOGENIC NEEDS

4.

MASLOWS NEED HIERARCHY THEORY

5.

TRIO OF NEEDS POWER, ACHIEVEMENT & AFFILIATION.

89

A COMPREHENSIVE CLASSIFICATION OF MAJOR MOTIVE INFLUENCES

ACTIVE

COGNITIVE PRESERVATIONS
GROWTH
AFFECTIVE PRESERVATION
GROWTH

PASSIVE

INTERNAL

EXTERNAL

1. CONSISTENCY

2. ATTRIBUTION

5. AUTONOMY

6. EXPLORATION

9. TENSION REDUCTION 10. EXPRESSIVE

13. ASSERTION
14. AFFILIATION

INTERNAL
3. CATEGIRIZATION
7. MATCHING
11. EGO-DEFENSIVE
15. IDENTIFICATION

EXTERNAL
4. OJECTIFICATION
8. UTILITARIAN
12. REINFORCEMENT
16. MODELING

90

MOTIVES IN ADULTS
APPETITE - HUNGER

RESPECT FOR DEITY

LOVE OF OFFSPRING

SYMPATHY FOR OTHERS

HEALTH

PROTECTION OF OTHERS

SEX ATTRACTION

DOMESTICITY

PARENTAL AFFECTION

SOCIAL DISTINCTION

AMBITION

DEVOTION TO OTHERS

PLEASURE

HOSPITALITY

BODILY COMFORT

WARMTH

POSSESSION

IMITATION

APPROVAL OF OTHERS

COURTESY

GREGARIOUSNESS

PLAY- SPORT

TASTE

MANAGING OTHERS

PERSONAL APPEARANCE

COOLNESS

SAFETY

FEAR- CAUTION

CLEANLINESS

PHYSICAL ACTIVITY

REST SLEEP

MANIPULATION

HOME COMFORT

CONSTRUCTION

ECONOMY

STYLE

CURIOSITY

HUMOR

EFFICIENCY

AMUSEMENT

COMPETITION

SHYNESS

COOPERATION

TEASING

91

MURRAYS LIST OF PSYCHOGENIC NEEDS

NEEDS ASSOCIATED WITH INANIMATE OBJECTS
ACQUISITION
CONSERVANCY
ORDER
RETENTION
CONSTRUCTION
NEEDS THAT REFLECT AMBITION, POWER, ACCOMPLISHMENT, AND PRESTIGE
SUPERIORITY
ACHIEVEMENT
RECOGNITION
EXHIBITION
INVIOLACY (INVIOLATE ATTITUDE)
INFAVOIDANCE (TO AVOID SHAME, FAILURE, HUMILIATION, RIDICULE)
NEEDS CONCERNED WITH HUMAN POWER
DOMINANCE
DEFERENCE
SIMILANCE (SUGGESTIBLE ATTITUDE)
AUTONOMY
CONTRARIENCE (TO ACT DIFFERENTLY FROM OTHERS)

92

MURRAYS LIST OF PSYCHOGENIC NEEDS (CONTD)

SADO-MASOCHISTIC NEEDS
AGGESSION
ABASEMENT
NEEDS CONCERNED WITH AFFECTION BETWEEN PEOPLE
AFFILIATION
REJECTION
NURTURANCE (TO NOURISH, AID, OR PROTECT THE HELPLESS)
SUCCORANCE (TO SEEK AID, PROTECTION, OR SYMPATHY)
PLAY
NEEDS CONCERNED WITH SOCIAL INTERCOURSE ( THE NEEDS TO ASK AND TELL)
COGNIZANANCE (INQUIRING ATTITUDE)
EXPOSITION (EXPOSITIVE ATTITUDE)

93

MEANS - END
A MEANS END
LINKING FOR
A BIKE-LOCK
PURCHASE.

SAFETY

PROTECTION

STRENGTH

SECURITY

DEPENDABILITY

DURABILITY
94

MOTIVE COMBINATIONS

1.

MOTIVE LINKING

2.

MOTIVE BUNDLING

3.

MOTIVE CONFLICT BY KURT LEWIN

95

MOTIVE CONFLICTS

A) APPROACH APPROACH CONFLICT

B) AVOIDANCE AVOIDANCE CONFLICT

C) APPROACH AVOIDANCE CONFLICT

96

MEASUREMENT OF MOTIVES

1.

OBSERVATION

2.

DEPTH INTERVIEWS

3.

FOCUS GROUPS

4.

PROJECTIVE TECHNIQUE

97

INVOLVEMENT

INVOLVEMENT THEORY BY HERBERT KRUGMAN CHARACTERISES THE

INTENSITY OF INTEREST WITH WHICH CONSUMERS APPROACH THEIR
DEALINGS IN MARKETPLACE.

98

HIGH INVOLVEMENT V/S LOW INVOLVEMENT

1.

INCREASED ATTENTION TO ADVERTISEMENT

2.

ACTIVE SEARCH FOR INFORMATION OF ALTERNATIVE BRANDS

3.

HIGH LEVEL OR BRANDS AWARENESS

4.

CRITICALLY EVALUATES S/W OF BRANDS

5.

INTERESTED IN DIFFERENCES BETWEEN BRANDS

6.

CONSIDERABLE TIME & ENERGY IN DECISION-MAKING

99

DIAGRAM OF THE MAJOR DIMENSIONS OF INVOLVEMENT

MODERATING FACTORS

OPPORTUNITY TO PROCESS
ABILITY TO PROCESS

TS
N
DE
E
EC
T
AN
T
EC
J
B
ON U S / O L
S
R
A
L
PE IMU TION
ST TUA
SI

INVOLVEMENT
PROPERTIES

INTENSITY
DIRECTION
PERSISTENCE

RESPONSE FACTORS

SEARCH
INFORMATION
PROCESSING
DECISION / PERSUASION

100

HIERARCHY OF EFFECTS UNDER HIGH-AND LOWINVOLVEMENT CONDITIONS

HIGH-INVOLVEMENT HIERARCHY

LOW-INVOLVEMENT HIERARCHY

COGNITION

COGNITION

ATTITUDE

BEHAVIOR

BEHAVIOR

ATTITUDE

101

BUYING BEHAVIOUR

High Involvement

Significant
perceived
differences
between brands

COMPLEX

VARIETY
SEEKING

DISSONANCE
No significant
perceived
differences
between brands

Low Involvement

HABITUAL

REDUCING

102

MARKETING IMPLICATIONS OF INVOLVEMENT

1.

HIGH INVOLVEMENT LOW INVOLVEMENT PRODUCTS

2.

CONVERT LOW INVOLVEMENT TO HIGH INVOLVEMENT

3.

SEGMENT HIGH & LOW INVOLVEMENT CONSUMERS

103

INVOLVEMENT THEORY
I.

CENTRAL & PERIPHERAL ROUTE TO PERSUASION THEORY

HIGH INVOLVEMENT
CENTRAL ROUTE

DEVOTE LOT OF COGNITIVE EFFORT

USE

LOW INVOLVEMENT
SEEKS SYMBOLIC & PERIPHERAL CUES
USE PERIPHERAL ROUTE
II.

HEMISPHERAL LATERALIZATION OR SPLIT BRAIN THEORY

LEFT BRAIN = COGNITIVE VERBAL PROCESSING
PROCESING
PRINT.
RIGHT BRAIN = NONVERBAL, PICTORIAL PROCESSING
PROCESSING

ACTIVE
PASSIVE

TV.

III.

ALTERNATE THEORY - BOTH SIDES OF BRAIN ARE CAPABLE OF

HIGH/LOW INVOLVEMENT.

IV.

SOCIAL JUDGEMENT THEORY - INDIVIDUALS PROCESSING OF

INFORMATION DEPENDS ON HIS INVOLVEMENT.

104

CATEGORY INVOLVEMENT

CATEGORY OF

CONDITIONS THAT OPERATE

INVOLVEMENT OR CORRESPOND TO THE

ASPECTS OF THEEXTENT OF
STIMULI THAT

NATURE OF
MENTAL ACTIVITY

CATEGORY OF INVOLVEMENT

ARE PEOCESSED

HIGH

PRODUCTS PERFORMANCE

OBJECTIVE INFROMATION

COGNITIVE

DIMENSIONS IMPORTANT

HIGH

PRODUCTS IMAGE

SYMBOLIC QUALITY, IMAGE

AFFECTIVE

DIMENSIONS IMPORTANT

DIMENSIONS

RELATIVE ENGAGEMENT OF
MENTAL

LEFT/ RIGHT BRAIN

ACTIVITY

HIGH

HIGH

BRAND BELIEF

LEFT: INTENSE

FROMATION

RIGHT: MODEST

RICH IMAGERY;

LEFT: MODEST

SENSORY, HOSISTIC ,

RIGHT: INTENSE

GLOBAL ENCODING

LOW NEITHER VERY IMPORTANT MOST READILY ACCESSIBLE

INVOLVEMENT

LOW

SHALLOW, SPARE

LEFT: MARGINAL

PRODUCT FEATURE

BELIEF FORMATION

SHALLOW IMAGE

AND SURFACE-LEVEL,

RIGHT: MARGINAL

GENERAL IMAGE

105

BRAND LOYALTY

1. DEFINED IN TERMS OF ATTITUDE & NOT BEHAVIOUR

2. BRAND LOYALTY NOT LINKED TO PERCEIVED DIFFERENCES

106

BRAND LOYALTY AND BRAND DISCRIMINATION

HIGH

HIGH

BRAND LOYALTY

I.
MENS COLOGNE
COLA DRINKS

II.

BRAND DISCRIMINATION

LOW

FAST FOOD RESTAURANTS

GASOLINE

COFFEEE
POWER TOOLS

MOTOR OIL
COLOR TV
III.

IV.

LIGHT BULBS
DISPOSABLE RAZORS

HEADACHE REMEDIES

LOW

SHAVING CREAM
COUGH REMEDIES

107

GENERAL INCONGRUITY ADAPTATION LEVEL(GIAL) OR

OPTIMUM STIMULATION LEVEL(OSL)
By streufert & driver
A person derives stimulation from environment
Extent of stimulation depends on amount of incongruity or disparity between
stored knowledge & new information.
Each consumer desires different levels of incongruity / stimulation called gial / osl.
> Or < gial / osl will be uncomfortable & behaviour designed to return to optimum
(not minimum)
Type of behaviour influenced by magnitude & direction of difference between present
levels of environmental stimulation & gial / osl.

108

DIAGRAM
A DIAGRAM BASED ON STREUFERT
AND DRIVERS THEORY OF THE
RELATIONSHIP BETWEEN OPTIMUM
STUMULATION AND AFFECT.

AFFECT (LIKING)

POSITIVE
LEVELS

ZERO

NEGATIVE
LEVELS

ZONE 1

ZONE 2

ZONE 3

GIAL (OPTIMUM)
ENVIRONMENTAL STIMULATION (INCONGRUITY)

109

PERSONALITY

Personality is inner psychological traits / characteristics that both determine & reflect
how a person responds to his or her environment. Although behaviour may change due
to circumstances, there is tendency to behave in consistent fashion.

110

PERSONALITY TRAITS

1. INNOVATIVENESS
2. DOGMATISM
3. SUSCEPTIBILITY TO INTERPERSONAL INFLUENCE
4. ETHNOCENTRISM
5. MATERIALISM
6. INNER DIRECTED
7. OSL
8. VARIETY SEEKING
9. VISUALIZERS V/S VERBALIZERS

111

MEASURING PERSONALITY

1.

RATING METHOD

2.

SITUATIONAL TEST

3.

PROJECTIVE TECHNIQUE

4.

INVENTORY SCHEMES USED BY MARKETERS INCLUDE EDWARD,

PERSONAL PREFERENCES SCHEDULE, GORDON PERSONAL PROFILE,
CALIFORNIA PERSONALITY INVENTORY, MINNESOTA MULTIPHASIC
PERSONALITY INVENTORY.
112

PERSONALITY THEORIES

1.

SIGMUND FREUDS PSYCHOANALYTICAL PERSONALITY THEORY ID,

EGO, SUPEREGO.

2.

JUNGIAN PERSONALITY TYPES MARKETERS USE MYERS BRIGGS TYPE

INDICATORS.

3.

SOCIAL THEORIES KAREN HORNEYS CAD THEORY & INSTRUMENT.

4.

TRAIT THEORY & INSTRUMENTS

113

PSYCHOANALYTICAL PERSONALITY THEORY

Every individuals personality is a product of struggle among 3 interacting forces id,
ego, superego.
Id strong inborn drives sex & agrression & operates on pleasure principle & at
unconscions level.
Ego operates on reality principle & helps cope with external environment.
Super ego consists of moral part of individuals psychoanalytic structure through
internalizing values of society.

Defense mechanisms like repression, projection & identification

To deal with unresolved conflict between the 3 components of
Personality.
114

JUNGIAN PERSONALITY TYPES

Sensing thinking (st)

Rational in decision making

Logical and empirical in viewpoint

Makes decisions following an objective orientation.

Heavily weighs economic considerations most price sensitive.

Will extend considerable effort to search for decision-making information.

Risk avoider

Materialism reflects personal or private motives (i.E. Identifies with material objects or things)

Short- time horizon in making decisions

Sensing feeling (sf)

Emprical viewpoint

Propelled by personal values rather than logic

Makes decisions following a subjective orientation

Likely to consider others when making a decision

Shares risk with others

Materialism reflects how objects will impact on others (i,.E. Status conscious)

Short time horizon in making decisions.

115

JUNGIAN PERSONALITY TYPES (CONTD)

INTUITING THINKING (NT)

TAKES A BROAD VIEW OF PERSONAL SITUATION OR WORLD

RELIES HEAVILY ON IMAGINATION YET USES LOGIC IN APPROACHING DECISIONS.

IMAGINES WIDER RANGE OF OPTIONS IN MAKING A DECISION.

WEIGHS OPTIONS MENTALLY.

LONG-TIME HORIZON IN MAKING DECISIONS.

INTUITING FEELING (NF)

TAKES A BROAD VIEW OF PERSONAL SITUATION OR WORLD.

IMAGINES A WIDE RANGE OF OPTIONS IN MAKING A DECISION.

HIGHLY PEOPLE ORIENTED LIKELY TO CONSIDER OTHERS VIEWS.

MAKES DECISIONS FOLLOWING A SUBJECTIVE ORIENTATION.

LEAST PRICE SENSITIVE

RISK SEEKING (VENTURESOME AND NEVELTY SEEKING)

INDEFINITE TIME HORIZONE IN MAKING DECISIONS.

116

KAREN HORNEYS 3 PERSONALITY GROUPS

A) COMPLIANT INDIVIDUALS (DESIRE TO BELONG, LOVED)

B) AGGRESSIVE INDIVIDUALS (DESIRE TO EXCEL)

C) DETACHED INDIVIDUALS (INDEPENDENT)

117

USE OF PERSONALITY

A) BRAND PERSONIFICATION

B)

PRODUCTS / SERVICES HAVE GENDERS

C)

COLOURS & PERSONALITY TRAITS

118

SELF CONCEPT (SELF IMAGE)

1. ACTUAL SELF

2. IDEAL SELF

3. SOCIAL SELF

4. IDEAL SOCIAL SELF

119

SELF CONCEPT AND MARKETING

1. PRODUCTS SERVE AS SOCIAL SYMBOLS TO MAINTAIN / ENHANCE SELF

CONCEPT

2. SELF IMAGE IMPORTANT PREDICTOR OF BRAND PREFERENCES

3. THERE HAS TO BE RELATION BETWEEN SELF CONCEPT & BRAND IMAGE

4. DIFFERENT SELFS FOR DIFFERENT PRODUCTS

120

PERCEPTION

Perception is an individualsed process by which an individual gets selectively exposed,

recognizes, selects, organises & interprets stimuli into a meaningful & coherent picture.
Perception is subjective individualized process based on own needs, values & expectation
different from objective reality.

121

INFORMATION PROCESSING FRAMEWORK

CONSUMER
CHARACTERISTICS

SITUATIONAL
CHARACTERISTICS

EXECUTIVE
SYSTEM

INTERNAL PROCESS
STIMULI
1.
3.

E
SUR ON
O
P
EX ENTI
ATT

ACQUISITION

SENSATIONS

INFORMATION

PERCEPTUAL
ENCODING

INTEGRATION

OUTCOMES

RY
SO ES
N
S
E
2. S OCES
PR

MEMORY

122

KEY TERMS

I.

STIMULI - EXTERNAL OR INTERNAL

II.

PERCEPTUAL SELECTION
a) SELECTIVE EXPOSURE
b) SELECTIVE ATTENTION

III. PERCEPTUAL ENCODING / ORGANIZING

IV. PERCEPTUAL INTERPRETATION

123

SELECTIVE EXPOSURE
A) absolute threshold i)

lowest level at which individual experiences sensation

ii)

absolute threshold increases due to bland environment

& Adaptation.

B) differentiation threshold or j.N.D. - Ernst weber

The minimal difference that can be detected between 2
Stimuli, is relative to intensity of 1st stimulus.
S = k

ie.

S = k . s

S
Applicable to any stimuli
Marketers use for both (-)ve & (+)ve changes

124

SUBLIMINAL PERCEPTION

People are stimulated because level of conscious awareness. This is called subliminal
perception.
Thus,

awareness threshold

Subliminal perception

Absolute threshold
125

SELECTIVE ATTENTION

1. THROUGH ACTIVE SEARCH OR PASSIVE RECEPTION

2. VOLUNTARY OR INVOLUNTARY ATTENTION
3. ATTENTION SPAN LTD.
4. HAPPENS DUE TO
I.

STIMULUS FACTORS - SIZE, INTENSITY, NATURE, MOTION, CONTRAST,

NOVELTY, FAMILIARITY, POSITION.

II. INDIVIDUAL FACTORS - NEEDS, PREVIOUS EXPERIENCE, VALUES,

INTEREST, PRECONDITIONED MINDSET, EXPECTATIONS
SOMETIMES MARKETERS USE LACK OF CONTRAST TO AVOID SELECTIVE
EXPOSURE.

126

PERCEPTION ORGANISATION / ENCODING

Is a highly individual process of assigning mental symbols (words, images) so as to

assign meaning to sensations. This is based on individuals ability, learning, motives,
situation, opportunity to process, attitudes.
FEATURE ANALYSIS (GESTALT PSYCHOLOGY)
A) FIGURE & GROUND
B) GROUPING & CATEGORIZATION
C) CLOSURE (ZEIGERNIK EFFECT)
D) PROXIMITY IN TIME & SPACE

127

PERCEPTUAL INTERPRETATION
Is the synthesis stage
1.Selective distortion - higher for ambiguous stimuli
(A tendency to interpret information in ways which reinforce existing attitudes or beliefs. In
communication research, the preferred term is selective exposure)
A) stereotyping
B) irrelevant cues - price

quality

C) first impression
D) halo effect
2. Selective retention a) repetition
B) simple
C) pictorial
D) interesting
3. Perceptual defence strong reasoning, source credibility
4. Perceptual blocking avoid intense fear

128

PERCEPTIONS & MARKETING IMPLICATIONS

PRODUCT
1.

INFORMATION PROCESSING DEPENDS ON COGNITIVE ABILITY &

COMPLEXITY OF INFORMATION.

2.

PAST EXPERIENCE WITH PRODUCT CATEGORY INCREASES COGNITIVE

ABILITY.

3.

INFORMATION OVERLOAD LEARNING TO USE SIMPLE RULE OF

THUMB.

4.

IRRELEVANT CUES EXTRINSIC / SURROGATE

5.

INFERENTIAL BELIEFS E.G. PRESERVATIVES IN MILK BECAUSE ALL

PACKAGED GOODS = PRESERVATIVES.
129

PERCEPTIONS & MARKETING IMPLICATIONS

PRICE
1.

REFERENCE PRICING

2.

PSYCHOLOGICAL PRICE BARRIER

3.

PRICE = QUALITY WHEN UNKNOWN BRAND & NO EXPERIENCE

STORE IMAGE BRAND IMAGE COMPATIBILITY

ADVERTISEMENTS
1.

SUBLIMINAL ADVERTISING

2.

SEX IN ADVERTISING PERCEIVED LOW QUALITY PRODUCT

3.

USE OF MODELS SIMILAR TO PERSON

130

LEARNING

LEARNING IS A PROCESS OF ACQUIRING PURCHASE AND CONSUMPTION

KNOWLEDGE, EXPERIENCE & BELIEFS THAT AN INDIVIDUAL CAN APPLY TO
FUTURE RELATED BEHAVIOUR.
LEARNING IS A CONTINUOUSLY EVOLVING PROCESS DUE TO NEWLY
ACQUIRED KNOWLEDGE OR ACTUAL EXPERIENCE.
LEARNING HAPPENS INTENTIONALLY OR INCIDENTALLY.

131

TYPES OF LEARNING

1. PHYSICAL BEHAVIOUR - Eg. EXPIRY DATE

2. SYMBOLIC LEARNING - SIGNS, BRAND NAMES, SLOGANS, COLOURS
3. COGNITIVE LEARNING - Eg. SMALL CARS GOOD
4. AFFECTIVE LEARNING - LIKING / DISLIKING DUE TO PRODUCT / BRAND
MEETING WANTS / GOALS.

132

BASIC ELEMENTS FOR LEARNING TO HAPPEN

1.

MOTIVE - CREATES DRIVE

2.

CUE PROVIDES DIRECTION TO MOTIVATED ACTIVITY

3.

RESPONSE DEPENDS ON COGNITION & PREVIOUS LEARNING

4.

REINFORCEMENT INCREASES LIKELIHOOD OF SPECIFIC RESPONSE

OCCURING AGAIN.

133

LEARNING THEORIES CLASSIFICATION

LEARNING THEORIES

CONNECTIONIST

CLASSICAL
CONDITIONING

COGNITIVE

INSTRUMENTAL
CONDITIONING

134

LEARNING THEORIES
I.

Behavioural learning

A) Classical conditioning (respondent conditioning) by ivan pavlov, russian

psychologist [ (s-r) theory believe that observable response to specific stimuli signal
learning has taken place ].

B) Instrumental conditioning (operant conditioning) - by b.F. Skinner (american

psychologist) [ (r-s) reinforcement to response decides on stimulus that will be
selected.

Ii. Cognitive learning theory - use of mental process without repetition or reinforcement.

135

LEARNING THEORIES

III.

BEHAVIOUR MODIFICATION PERSPECTIVE SET OF INTERVENTION

TECHNIQUES DESIGNED TO INFLUENCE BEHAVIOUR OF INDIVIDUALS.
INCLUDES C.C. & I.C.

A)

SHAPING REINFORCING SUCCESSIVELY CLOSER APPROXIMATION

TO DESIRED BEHAVIOUR. CONTINUOUS V/S PARTIAL

B)

MODELING

C)

STIMULUS GENERALIZATION-me too products succeed

D)

DISCRIMINATION LEARNING

E)

ECOLOGICAL MODIFICATION
136

CLASSICAL CONDITIONING CONCEPTS

US

UR

CS

I. REPETITION
II. STIMULUS GENERALISATION - PRODUCT LINE EXTENSIONS, BRAND
EXTENSIONS, ME-TOOS, LICENSING
III. STIMULUS DISCRIMINATION
137

LEARNING CURVE

AMOUNT
LEARNED

NO. OF PRACTICE TRIALS

1.

RATE OF LEARNING VERY RAPID IN INITIAL STAGES. BUT AS AMOUNT

LEARNED ACCUMALATES, RATE OF ADDITIONAL LEARNING PER TRIAL
DECREASES.

2.

ADVERTISEMENT REPETITIONS LEAD TO BOREDOM & IN ATTENTION

BUT IF NOT REPEATED, FORGETTING.

3.

DISTRIBUTED PRACTICE BETTER THAN MASSED PRACTICE.

4.

EXTINCTION RESTISTANCE TO EXTINCTION

138

REPRESENTATION OF MEMORY SYSTEM

MAINTENANCE REHEARSAL

SENSORY
MEMORY

SHORT-TERM
MEMORY

LONG-TERM
MEMORY

ELABORATIVE
REHEARSAL

FORGOTTEN MATERIAL

139

CHARACTERISTICS OF MEMORY SYSTEMS

MEMORY SYSTEM

DURATIONCAPACITY TYPE OF CODING

TYPE OF
CODING

MAJOR
FORGETTING
MECHANISM

SENSORY MEMORY

FRACTION OF A

ALL THAT PERCEPTUAL

QUITE DIRECT

SECOND

SENSORS CAN DELIVER

REPRESENTATION

DECAY

OF REALITY

SHORT TERM

LESS THAN ONE

APPROXIMATELY SEVEN

INDIRECT -

DECAY

MEMORY

MINUTE

ITEMS

CHUNKING

LONG-TERM

UP TO MANY

ALMOST UNLIMITED

INDIRECT - INTEREFERENCE

MEMORY

YEARS

CLUSTERING VIA
MEANINGFULNESS

140

INFORMATION PROCESSING & MEMORY

I.

SELECTIVE EXPOSURE

II.

ROLE OF REHEARSAL
SCHEMA IS TOTAL PACKAGE OF ASSOCIATIONS BROUGHT TO MIND
WHEN CUE IS ACTIVATED.

A)

MAINTENANCE REHEARSAL

SHORT TERM MEMORY

B)

ELABORATE REHEARSAL THROUGH SYNTHESIS (SCHEMA)

III.

INFORMATION STORED SENMANTICALLY (CONCEPTS) &

EPISODICALLY, PROCEDURALLY (E.G. CHECK PRICE BEFORE BUYING)
& VISUALLY.

IV.

RETRIEVAL DEPENDS ON THOROUGHNOUS OF LEARNING & CONTEXT

OF SITUATION.
141

INFORMATION PROCESSING & MEMORY (CONTD)

V.

RETRIEVAL DIFFICULT WHEN SIMILAR DUE TO

RETROACTIVE INHIBITION

PROACTIVE INHIBITION

NEW LEARNING

OLD LEARNING

INTERFERES WITH

INTERFERES WITH

REMEMBERING OLD

REMEMBERING NEW

MATERIAL

MATERIAL
142

ATTITUDES

An attitude is how (+)ve or (-)ve, favourable or unfavourable or pro or con a person

feels towards an object.
Attitudes are learned predispositions to respond to an object or class of objects in a
consistently favourable or unfavourable way.
Attitudes are not directly observable but must be inferred from what people say or
what they do.

143

CHARACTERISTICS OF ATTITUDES

1. Attitude have object - product, brand, etc.

2. Attitudes are learned predisposition - direct experience or information or
cognitive process.
3. Generally - attitudes behaviour consistency - with exceptions
4. ATTITUDES OCCUR WITHIN SITUATION - mcdonalds SNACK V/S
DINNER
5. Attitudes have direction, intensity & conviction (confidence of expression) affects attitude change.
6. Attitudes have structure - internal consistency & inter attitudinal centrality.
Centre - values & self-concept.
7. Attitudes being learned, become stronger, longer they are held.
8. Attitudes are generalizable - (-)ve attitudes towards all extensions of brand.
9. Only 2-3 important beliefs about product dominate in formation of attitude.
144

FUNCTIONS OF ATTITUDE

A)

ADJUSTMENT OR UTILITARIAN FUNCTION POSITIVE ATTITUDE

TORWARDS NEED SATISFYING OBJECT.

B)

EGO-DEFENSIVE FUNCTION TO PROJECT SELF-IMAGE

C)

VALUE-EXPRESSIVE FUNCTION SELF-EXPRESSION

D)

KNOWLEDGE FUNCTION NEED TO KNOW

145

SOURCES OF ATTITUDE DEVELOPMENT

A)

PERSONAL EXPERIENCE

B)

GROUP ASSOCIATIONS

C)

INFLUENTIAL OTHERS

146

SIMPLE DIAGRAM INTERRELATIONSHIP

SOURCES OF
IFORMATION AND
INFLUENCE
1.

PERSONALITY / SELF-CONCEPT

OTHER BELIEFS
AND ATTITUDES

DIRECT EXP.

2.
GROUPS (SOCIAL
WORK, FAMILY, CULTURE,
ETC.
3. MASS MEDIA

PERCEPTION
OF
INFORMATION
ABOUT
PRODUCT OR
BRAND

BELIEFS ABOUT
PRODUCT OR BRAND
IMPORTANCE OF
BELIEFS ABOUT
PRODUCT ATTRIBUTES

GENERAL
ATTITUDE
TOWARD
PRODUCT OR
BRAND

4. CONTACT WITH
INFLUENTIAL OTHERS

NEED STRUCTURE

VALUE SYSTEM

147

ATTITUDE THEORIES & MODELS

HUMAN MIND STRIVES TO MAINTAIN HARMONY OR CONSISTENCY AMONG

CURRENTLY PERCEIVED ATTITUDES. IF INCONSISTENCY PERCEIVED,
MENTAL TENSION DEVELOPS TO RETURN STRUCTURE TO CONSISTENT
STATE.

A)

CONGRUITY THEORY

B)

BALANCE THEORY FRITZ HEIDER

C)

COGNITIVE DISSONANCE THEORY

148

CONGRUITY THEORY
+3

U2 GROUP

+2

U2 GROUP

+2

+1

POSITIVE
STATEMENT

0
-1

+3

ELECTRIC GUITAR

+1

ELECTRIC GUITAR

0
-1

-2

-2

-3

-3
(a)

RESOLUTION

(b)

STRONG ATTITUDE EXERTS GREATER PULL ON WEAKER ATTITUDE.

149

BALANCE THEORY

DONT LIKE ( - )

LIKE (+)

LARGE, LUXURIOUS CARS

ENERGY-WASTING PRODUCTS
ARE ( + )

RESOLUTION THROUGH RATIONALISATION

150

COGNITIVE DISSONANCE THEORY LEON FESTINGER

A)

LOGICAL INCONSISTENCY BETWEEN 2 THOUGHTS

B)

LOGICAL INCONSISTENCY BETWEEN ATTITIDE & BEHAVIOUR

C)

LOGICAL INCONSISTENCY BETWEEN 2 BEHAVIOURS.

D)

STRONGLY HELD EXPECTATION IS DISCONFIRMED

E)

PRE-PURCHASE, BRAND HAS BOTH (+) & (-) CHARACTERISTICS

F)

POST-PURCHASE DISSONANCE

COGNITIVE DISSONANCE ARISES ONLY IF IT IS PERCEIVED.

STRATEGICS TO REDUCE COGNITIVE DISSONANCE E.G. ANY T.V.

BREAKDOWN.
A)

RATIONALISATION

B)

SEEKING INFORMATION

C)

CHANGING OPINION

151

MULTIATTRIBUTE MODELS

A.

TRICOMPONENT ATTITUDE MODEL

N
IO
T
NA
CO

AFFECT

I
COGNIT

ON

152

FISHBEINS ATTITUDE TOWARDS OBJECT MODEL

n
A0 = biei
i =1
A0 = persons overall attitude towards object
bi = strength of belief that the object has attribute i
ei = evaluation or intensity of feelings (liking or disliking) towards attribute for that person.
Salient attributes - < 9
Limitation attitude towards object (brand) may vary depending on situation
-

attitude towards object & attitude towards behaviour is different

Others perceptions not considered

153

FISHBEINS ATTITUDE TOWARD BEHAVIOUR

n

ATTITUDE (BEHAVIOUR) = A0 =

biei
i =1

Ab = OVERALL ATTITUDE OF INDIVIDUAL TOWARDS PERFORMING SPECIFIC

BEHAVIOUR
n = NUMBER OF RELEVANT BEHAVIOURAL BELIEFS
bi = PERSONS BELIEF THAT PERFORMING THAT BEHAVIOUR RESULTS IN
CONSEQUENCE
ei = PERSONS EVALUATION OF CONSEQUENCE i

154

ATTITUDE MODEL
FISHBEINS THEORY OF REASONED ACTION MODEL
Beliefs that the
Behavior leads to
Certain outcomes
Attitude toward
the behavior
Evaluation of
the outcomes

Intention

Behavior

Beliefs that specific

Referents think I
Should or should not
Perform the behavior

Motivation to
comply with the
Specific referents

Subjective
norm
155

FISHBEINS THE REASONED ACTION MODEL

B BI = W1(AB) + W2 (SN)
WHERE B = THE PERSONS ACTUAL BEHAVIOUR, WHICH IS APPROXIMATELY
EQUAL TO BI
BI = HIS INTENTION TO BEHAVE IN A SPECIFIC MANNER
AB = HIS ATTITUDE TOWARD PERFORMING THAT BEHAVIOR
SN = THE SUBJECTIVE NORM REGARDING THIS BEHAVIOR
W1 , W2 = WEIGHTS REPRESENTING THE RELATIVE INFLUENCE

156

FISHBEINS THE REASONED ACTION MODEL (CONTD)

THE SUBJECTIVE NORM COMPONENT OF THE BEHAVIORAL INTENTIONS
MODEL CAN BE EXPRESSED AS FOLLOWS:
K

SN = bi m i
i=1

WHERE SN = THE INDIVIDUALS SUBJECTIVE NORM REGARDING THE SPECIFIC

BEHAVIOR
bi = HIS NORMATIVE BELIEF THAT REFERENCE GROUP OR PERSON i THINKS
HE SHOULD OR SHOULD NOT PERFORM THE BEHAVIOR
m i = HIS MOTIVATION TO COMPLY WITH THE THOUGHTS OF REFERENT i
k = THE NUMBER OF RELEVANT REFERENTS

157

ATTITUDE CHANGE - STRATEGIES

Varies for high involvement and low involvement product.

Elaboration likelihood model states when consumers motivation or ability to
assess attitude object is high, he will use central route to processing. Then
marketers should use central route to forming & changing attitudes. If not,
peripheral route (background, celebrity, drama, humour).

158

NOTE

It is much easier to change intensity of attitude than direction.

Attitude strength depends on strength of beliefs & degree of involvement.

Strong beliefs thru personal experience & information over period of

time.

High involvement consumers have low latitude of acceptance.

It is easier to change beliefs than evaluations because latter is based on

consumers values, self-concept.

159

ATTITUDE CHANGE - STRATEGIES

For low involvement product

Peripheral cues (background, celebrity, drama, humour)
Link product to involving issue childrens concentration- bourvita
LINK PRODUCT TO INVOLVING PERSONAL SITUATION - eg.
Embarrasment itch guard/ yellow teeth?
Develop high involvement ads
ASSOCIATE PRODUCT WITH IMPORTANT CAUSE e.G. P&g
sanitary napkins

160

ATTITUDE CHANGE STRATEGIES

FOR HIGH INVOLVEMENT PRODUCT
ALTERATING COMPONENTS OF BEHAVIOUR INTENTIONS
MODEL (REASONED ACTION).
a) CHANGE BELIEFS ABOUT CONSEQUENCES OF BEHAVIOUR (bi)
E.g. BENEFITS.
b) CHANGE EVALUATIONS ABOUT CONSEQUENCES OF
BEHAVIOUR (ei).
c) ADD EXTRA BENEFIT / ATTRIBUTE (bici).
d) CHANGE OVERALL RATING OF BRAND (Ao) - E.g. LARGEST
SELLING BRAND.
e) CHANGE EXISTING NORMATIVE BELIEFS - E.g. SHOWING
PRODUCT BEING APPROVED BY OTHERS.
161

ATTITUDE CHANGE STRATEGIES

FOR HIGH INVOLVEMENT PRODUCT

f) CHANGE MOTIVATION TO COMPLY WITH OTHERS - E.g. ADS
STRESSING INDIVIDUALITY.
g) INTRODUCE NEW NORMATIVE COMPONENTS - E.g. SHOWING
SOMEONE ELSE AS IMPORTANT.
h) CHANGING BELIEFS ABOUT COMPETITORS BRANDS.

162

COMMUNICATION AS A TOOL TO ATTITUDE CHANGE

I.

SOURCE FACTORS -

A)

PERCEIVED CREDIBILITY OF SOURCE( TRUSTWORTHY,

KNOWLEDGEABLE, LIKEABLE, STATUS/ PRESTIGE, PHYSICAL TRAITS).

B)

ATTITUDE OF COMMUNICATOR

C)

SIMILARITY WITH AUDIENCE ATTITUDE.

HIGHLY CREDIBLE SOURCE GENERATES CHANGE AS IT BLOCKS

COUNTERARGUMENTS. ESPECIALLY IN HIGHLY DISCREPANT
MESSAGES

163

COMMUNICATION

II.

Messages factors

A)

Message sidedness two sided messages prevent strong counterargument

generation. More persuasive for better educated audiences.

B)

Message order most important message (climax, anticlimax or pyramidal) also

pro-con or con-pro? Recency or primacy effect (no conclusive research)

C)

Conclusion drawing especially in low involvement products.

D)

Repetition increases positive feelings provided soft-sell. But beyond point of

time, message wearout.

164

COMMUNICATION (CONTD)

E)

Message appeals
i) moderate fear, use of celebrity, fear of social disapproval,
practical steps effective.

Ii) participation

iii) humour- effective only if consumer has positive attitudes.

165

COMMUNICATION (CONTD)

IV)

EMOTIONAL V/S RATIONAL APPEALS

DEPENDS ON UNDERLYING MOTIVES, INVOLVEMENT & TYPE OF
PROCESSING (CENTRAL V/S PERIPHERAL)

V)

COMPARATIVE APPEALS CAN BE PERCEIVED AS OFFENSIVE, LEAD

TO MORE COUNTERARGUMENTS (BOOMERING EFFECT). NO
EVIDENCE OF EFFECTIVENESS IN BRAND AWARENESS INCREASE.
EFFECTIVE IF NOT BY BRAND LEADER.

F)

MESSAGE CODES
VERBAL CODES (USE WORDS HIGHER IN EMOTION). NON-VERBAL
CODES (FACIAL EXPESSIONS, GESTURES, POSTURE, DRESS).
PARALINGUISTIC CODES VOICE QUALITY, VOCALIZATIONS.

166

COMMUNICATION (CONTD)

III) RECEIVER FACTORS :

1)

PERSONALITY TRAITS SELF-ESTEEM, RICH IMAGERY (FANTASY) ARE

MORE PERSUABLE.

2)

MOOD

3)

BELIEF TYPES CENTRAL BELIEF (FREEDOM) DERIVED BELIEFS,

CENTRAL FREE BELIEFS.
CENTRAL FREE BELIEFS ARE EASIEST TO CHANGE.

167

CONSUMER DECISION-MAKING MODELS

1. ECONOMIC MAN - RATIONAL DECISIONS. BUT RARELY

ENOUGH INFORMATION INVOLVEMENT OR MOTIVATION OR
ABILITY. SATISFYCING DECISION RATHER THAN
MAXIMIZING.
2. PASSIVE MAN - REFLEXIVE TO MARKETERS ACTIONS.
MARKETERS USE AIDA.
3. COGNITIVE MAN - PROBLEM SOLVER & THINKER,
INFORMATION PROCESSING, SUFFICIENT INFORMATION TO
ENABLE ADEQUATE DECISION. SHORT CUT DECISION RULES
(HEURISTICS) TO PREVENT INFORMATION OVERLOAD.
4. EMOTIONAL MAN - EMOTIONALLY DRIVEN PURCHASES OR
IMPULSE. EMOTIONAL OR FEELING ORIENTED AD.
168

STAGES IN DECISION-MAKING

NEED RECOGNITION STIMULI CAN BE INTERNAL OR EXTERNAL

PREPURCHASE INFORMATION SEARCH FOR CRITERIA AND

BRANDS (DEPENDS ON LEVEL OF INVOLVEMENT).

EVALUATION OF ALTERNATIVES

PURCHASE DECISION (TRIAL & ADOPTION)

POST-PURCHASE BEHAVIOUR

169

CHARACTERISTICS
E)

CHARACTERISTICS
CHARACTERISTICS OF CONSUMER PROBLEM SOLVING APPROACHES
ROUTINE PROBLEM SOLVING

LIMITED PROBLEM SOLVING

EXTENSIVE PROBLEM SOLVING

PURCHASE
INVOLVEMENT
LEVEL

LOW

MEDIUM

HIGH

PROBLEM
RECOGNITION

AUTOMATIC

SEMIAUTOMATIC

COMPLEX

INFORMATION
SEARCH AND
EVALUATION

MINIMAL

LIMITED

EXTENSIVE

PURCHASING
ORIENTATION

CONVENIENCE

MIXED

SHOPPING

POSTPURCHASE
PROCESSES

VERY LIMITED

LIMITED

COMPLEX

HABIT
BRAND LOYALTY

INERTIA TO REPURCHASE
BRAND SWITCHING IF
DISSATISFIED

LOYALTY IF SATISFIED
COMPLAINT IF
DISSATISFIED

NOTE: SOME PURCHASES OCCUR AS A RESULT OF APPROACHES OTHER THAN A DECISION PROCESS.
E.G. GROUP CONFORMITY, SUPERFICIAL BASIS, IMPULSE, INTERLOCKED PURCHASES ETC.
170

PROBLEM RECOGNITION

1)

CAN BE DUE TO INTERNAL OR EXTERNAL STIMULI.

2)

MOTIVATION TO RESOLVE PROBLEM DEPENDS ON 2 FACTORS

MAGNITUDE OF DISCREPANY BETWEEN DESIRED (DS) & ACTUAL
STATES (AS) & IMPORTANCE OF PROBLEM.

3)

SOME CONSUMERS & PRODUCTS ARE AS OR DS TYPES. E.G. BULBS V/S

MUSIC SYSTEM.

171

THE CONSUMER PROBLEM RECOGNITION PROCESS

FACTORS AFFECTING
THE DESIRED STATEFFA

REFERENCE GROUPS
NOVELTY
THINKING

FACTORS AFFECTING EITHER

THE DESIRED OR ACTUAL STATE

FINANCIAL CONSIDERATIONS
PREVIOUS DECISIONS
FAMILY CHARACTERISTICS

FACTORS USUALLY AFFECTING

THE ACTUAL STATE

ASSORTMENT DEFICIENCY
AROUSAL OF NEEDS
POSTPURCHASE EVALUATION

CULTURE / SOCIAL CLASS

INDIVIDUAL DEVELOPMENT
CURRENT SITUATION
MARKETING EFFORTS

172

TYPES OF PROBLEM RECOGNITION

TYPES OF PROBLEM RECOGNITION

IMMEDIACY OF SOLUTION
EXPECTANCY
OF PROBLEM
OCCURRENCE OF PROBLEM EXPECTED
OCCURRENCE OF PROBLEM UNEXPECTED

IMMEDIATE SOLUTION
REQUIRED

IMMEDIATE SOLUTION
NOT REQUIRED

ROUTINE

PLANNING
EMERGENCY

EVOLVING

173

MARKETING IMPLICATIONS OF PROBLEM RECOGNITION

ACTIVATING PROBLEM RECOGNITIONTHROUGH INFLUENCING DESIRED

STATE, PERCEPTIONS OF ACTUAL STATE, INFLUENCING TIMING OF
PROBLEM RECOGNITION.

174

INFORMATION SEARCH PROCESS

THE TERM SEARCH REFERS TO MENTAL AS WELL AS PHYSICAL INFORMATION

SEEKING AND PROCESSING ACTIVITIES WHICH ONE ENGAGES IN TO FACILITATE
DECISION MAKING REGARDING SOME GOAL OBJECT IN THE MARKETPLACE.
CONSEQUENTLY, SEARCH MAY BE UNDERTAKEN IN ORDER TO FIND OUT ABOUT
PRODUCTS, PRICES, STORES, AND SO ON, RELATED TO THE PRODUCT. SEARCH
MAY BE CATEGORIZED AS PREPURCHASE OR ONGOING (BASED ON THE PURPOSE
OF SEARCH) AND AS INTERNAL OR EXTERNAL (BASED ON ITS SOURCE).

THE AMOUNT OF EXTERNAL SEARCH VARIES ACROSS INDIVIDUALS &

DIFFERENT SITUATIONS & DEPENDS ALSO ON COST/ BENEFIT.

175

DETERMINANTS OF EXTENTOF EXTERNAL INFORMAL SEARCH

1)

MARKET ENVIRONMENT

2)

SITUATIONAL VARIABLES

3)

POTENTIAL PAYOFF / PRODUCT IMPORTANCE

4)

KNOWLEDGE & EXPERIENCE

5)

RETAIL VARIABLES

6)

INDIVIDUAL DIFFERENCES
176

INFORMATION SEARCH SOURCES

PERSONAL SOURCES FAMILY, FRIENDS, NEIGHBOURS,

ACQUAINTANCES
COMMERCIAL ADVERTISING, SALESPERSONS, DEALERS,
PACKAGING, DISPLAYS.
PUBLIC SOURCES PUBLICITY, CONSUMER RATING
ORGANISATIONS, REVIEWS.
EXPERIENTIAL SOURCES HANDLING, EXAMING, USING PRODUCT.

COMMERCIAL SOURCE INFORMATION FUNCTION

PERSONAL SOURCE LEGITIMITING AND / OR EVALUATION
FUNCTION.

177

PERCEIVED RISK

1.

FUNCTIONAL

2.

PHYSICAL

3.

FINANCIAL

4.

SOCIAL

5.

PSYCHOLOGICAL

6.

TIME

178

HOW CONSUMERS HANDLE RISK

1.

INFORMATION SEARCH

2.

BRAND LOYALTY

3.

WELL-KNOWN BRAND

4.

ENDORSED BRAND

5.

EXTRINSIC CUES EXPENSIVE

6.

SEEKING ASSURANCE THROUGH WARRANTIES / GUARANTEES

179

RESULT OF SEARCH & EVALUATION

TOTAL SET

AWARENESS SET

CONSIDERATION SET

CHOICE SET

DECISION

180

EVALUATION OF ALTERNATIVES

TWO BROAD APPROACHES BRAND PROCESSING & ATTRIBUTE

PROCESSING.
GENERALLY CHOICE BY PROCESSING ATTRIBUTES(CPA) STRATEGY IN
EARLY STAGES OF DECISION PROCESS & CPB IN LATER STAGES.

181

EVALUATION OF ALTERNATIVES

1.

CONSUMER CONSIDERS VARIOUS PRODUCT ATTRIBUTES

2.

ASSIGNS IMPORTANCE WEIGHTS TO ATTRIBUTES

3.

HAS A SET OF BRAND BELIEFS ABOUT WHERE EACH

BRAND STANDS ON EACH ATTRIBUTE (BRAND IMAGE)

4.

CONSUMER ARRIVES AT ATTITUDES (JUDGEMENT,

PREFERENCES) TOWARDS BRAND ALTERNATIVES
THROUGH SOME EVALUATION PROCEDURE.

182

SOME ALTERNATIVE DECISION PROCESSES USED BY

CONSUMERS TO EVALUATE BRANDS

COMPENSATORY MODELS

A. EXPECTANCY VALUE MODEL

B. IDEAL BRAND MODEL

NON- COMPENSATORY MODELS

A. CONJUNCTIVE MODEL
B. DISJUNCTIVE MODEL
C. LEXICOGRAPHIC MODEL
D. DETERMINANCE MODEL

183

MARKETING IMPLICATIONS

1.

DETERMINING SOURCES OF INFORMATION

2.

DETERMINING SOURCE INFLUENCE

3.

INFLUENCING CONSUMERS EVOKED SET

4.

DETERMINING INFLUENCING EVALUATIVE CRITERIA

5.

DETERMINING CONSUMER EVALUATIONS OF BRAND

6.

DETERMINING CONSUMERS CUE USAGE& ALTERING CUE

CHARACTERISTICS.E.G. BANK SECRECY ON BASIS OF PHYSICAL
APPEARANCE OF BUILDING

184

SITUATIONAL NATURE OF CONSUMER DECISIONS

1.

PHYSICAL SURROUNDINGS

2.

SOCIAL SURROUNDINGS

3.

TEMPORAL PERSPECTIVE(TIME)

4.

TASK DEFINITION

5.

ANTECEDENT STATES MOMENTARY MOODS, CONDITIONS

STRONG BRAND LOYALTY & HIGH PRODUCT INVOLVEMENT
CONSUMER RESULTS IN WEAKER SITUATIONAL INFLUENCE.
185

PURCHASE DECISION

AFFECTED BY

PERCEIVED RISK

ATTITUDE OF OTHERS

UNANTICIPATED SITUATIONAL FACTORS

186

THE VULNERABILITY MATRIX

ATTITUDE TOWARD THIS BRAND

BUY IT
REGULARLY

LIKE IT

INDIFFEENT TO
IT AND OTHERS

LOYAL
TO IT

CUSTOMERS OF
THIS BRAND WHO
ARE VULNERABLE TO COMPETITORS
1

PURCHASE PATTERN
WITH RESPECT TO
THIS BRAND

BUY IT
OCCASIONALLY

CUSTOMERS OF THIS BRAND WHO ARE

VULNERABLE TO COMPETITORS
4

DO NOT
BUY IT

DISLIKE IT

CUSTOMERS OF THIS BRAND WHO ARE

VULNERABLE TO COMPETITORS
7

UNLIKELY
TARGET FOR
THIS BRAND
9

187

PURCHASE

1.

PROVIDING INFORMATION & ASSISTANCE E.G. DEMONSTRATION

2.

UNDERSTANDING USERS CONSUMPTION SYSTEM

3.

WARRANTIES POWERFUL MARKETING TOOL

4.

RELATED PRODUCTS & SERVICES BROCHURE

POST-PURCHASE BEHAVIOUR
POST- PURCHASE SATISFACTION HIGHER AMONG ELDER, LESS
EDUCATED, MEN, MORE CONFIDENT & COMPETENT DECISION
MAKERS.

188