Consumer Behavior Notes TYBMM-V

1
1 www.mynotebook.in
CONSUMER ATTITUDES
Nature Of Consumer Attitudes
Marketers need to know what are consumers likes and dislikes or we can say favorable or unfavorable
attitudes.
Attitudes help us understanding, why consumers do or do not buy a particular product or shop from a
certain store etc. They are used for judging the effectiveness of marketing activities, for evaluating
marketing actions even before they are implemented within the market place Consumer researchers
assess attitudes by asking questions or making inferences from behavior. For example, if a researcher
determines from questioning a consumer that she consistently buys Almay hypoallergenic skin care
products and even recommends them to friends, the researcher is likely to infer that the consumer
possesses a positive attitude toward Almay products. This example illustrates that attitudes are not
directly observable but must be inferred from what people say or what they do.
Moreover, the illustration suggests that a whole universe of consumer behaviors—consistency of
purchases, recommendations to others, top rankings, beliefs evaluations, and intentions are related to
attitudes. What then are attitudes? In a consumer behavior context, an attitude is a learned
predisposition to behave in a consistently favorable or unfavorable way with respect to a given object.
Each part of this definition describes an important property of an attitude and is critical to under
standing the role of attitudes in consumer behavior
Properties Of An Attitude
1. The Attitude "Object"
The word object in our consumer-oriented definition of attitude should be interpreted broadly to
include specific consumption- or marketing-related concepts, such as product, product category, brand,
service, possessions, product use, causes or issues, people, advertisement. Internet site, price, medium,
or retailer
In conducting attitude research, we tend to be object specific For example, if we were interested in
learning consumers' attitudes toward three major brands of DVD players, our “object” might include
Sony, Toshiba, and Panasonic, if we were examining consumer attitudes toward major brands of
cellular telephones, our “object” might include Nokia, Ericsson, Samsung, LG, Panasonic, and
Motorola
2. Attitudes Are A Learned Predisposition
There is general agreement that attitudes are learned This means that attitudes relevant to purchase
behavior are formed as a result of direct experience with that product, word-of-mouth information
acquired from others, or exposure to mass-media advertising, the Internet and various forms of direct
marketing (e.g. a retailer's catalog) It is important to remember that although attitudes may result from
behavior, they are not synonymous with behavior Instead, they reflect either a favorable or an
unfavorable evaluation of the attitude object. As learned predispositions, attitudes have a motivational
quality, that is, they might propel a consumer toward a particular behavior or repel the consumer away
from a particular behavior
3. Attitudes Have Consistency
Another characteristic of attitudes is that they are relatively consistent with the behavior they reflect.
However, despite their consistency, attitudes are not necessarily permanent, they do change.
It is important to illustrate what we mean by consistency Normally, we expect consumers' behavior to
correspond with their attitudes For example, if a French consumer reported preferring Japanese over
Korean electronics, we would expect that the individual would be more likely to buy a Japanese brand
when his current VCR needed to be replaced In other words, when consumers are free to act as they
wish we anticipate that their actions will be consistent with their attitudes However, circumstances
often preclude consistency between attitudes and behavior For example in the case of our French
consumer, the matter of affordability may intervene, and the consumer would find a particular Korean
VCR to be a more cost-effective choice than a Japanese VCR Therefore, we must consider possible
situational influences on consumer attitudes and behavior

2
2 www.mynotebook.in
4. Attitudes Occur Within A Situation
It is not immediately evident from our definition that attitudes occur within and are affected by the
situation By situation, we mean events or circumstances that at a particular point in time, influence the
relationship between an attitude and behavior A specific situation can cause consumers to behave in
ways seemingly inconsistent with their attitudes For instance, let us assume that Jayant purchases a
different brand of deodorant each time the brand he is using runs low Although his brand-switching
behavior may seem to reflect a negative attitude or dissatisfaction with the brand he tries, it actually
may be influenced by a specific situation, for example, his wish to economize Thus, he will buy
whatever is the least expensive brand
The opposite can also be true If Rajan stays at a Holiday Inn each time he goes out of town on
business, we may erroneously infer that he has a particularly favorable attitude toward Holiday Inn On
the contrary, Rajan may find Holiday Inn to be "just okay" However, because he owns his own
business and travels at his own expense, he may feel that Holiday Inn is "good enough," given that he
may be paying less than he would be paying if he stayed at a Marriott, Sheraton, or Hilton hotel
Indeed, individuals can have a variety of attitudes toward a particular behavior, each corresponding to
a particular situation Diana may feel it is alright to eat lunch at Taco Bell but does not consider it
appropriate for dinner In this case. Taco Bell has its "time and place," which functions as a boundary
delineating the situations when Diana considers Taco Bell acceptable However, if Diana is coming
home late from school one night, feels exhausted and hungry, and spots a Taco Bell, she may just
decide to have "dinner" there Why? Because it is late, she is tired and hungry, and Taco Bell is
convenient. Has she changed her attitude? Probably not
It is important to understand how consumer attitudes vary from situation to situation For instance, it is
useful to know whether consumer preferences for different burger chains (e.g. Burger King,
McDonald's, Wendy's) vary in terms of eating situations (i.e. lunch or snack, evening meal when
rushed for time, or evening meal with family when not rushed for time) Consumer preferences for the
various burger restaurants might depend on the anticipated eating situation Wendy's, for example,
might be favored by a segment of consumers as a good place to have dinner with their families This
suggests that its management might position Wendy’s restaurants is a nice place to take the family for
a leisurely (and inexpensive) dinner
Clearly, when measuring attitudes, it is important to consider the situation in which the behavior takes
place, or we can misinterpret the relationship between attitudes and behavior
How Situations Might Influence Attitudes
PRODUCT/SERVICE SITUATION ATTITUDE
Saridon Migraine headache I've got to get rid of this headache fast
because I've got a midterm in three hours
Life Insurance Financial planning If anything happens to me, my spouse
should have enough money to get the kids
through college
Hyundai Santro Shopping for a new car I want to drive the car Sharukh Khan
drives
Dove Soap Rough skin My skin gets dry in winter, so I want to use
a soap with moisturizer in it
Invisalign Braces Crooked teeth I need braces but don't want the world to
know I'm wearing them
Diet Pepsi Thirst Why bother to put lemon in the drink when
you can get it that way straight from the
bottle?
ODONIL Air Freshener Bathroom odors Since the bathroom has no exhaust fan, I'd
better keep a can of air freshener on the
sink counter
Structural Models of Attitudes
Motivated by a desire to understand the relationship between attitudes and behavior, psychologists
have sought to construct models that capture the underlying dimensions of an attitude To this end, the
focus has been on specifying the Composition of an attitude to better explain or predict behavior The
following are several important attitude models

3
3 www.mynotebook.in
 The tricomponent attitude model
 The multiattribute attitude models
 The trying-to-consume model
 The attitude-toward-the-ad models
Each of these models provides a somewhat different perspective on the number of component parts of
an attitude and how those parts are arranged or interrelated
1. Tricomponent Attitude Model
According to the tricomponent attitude model, attitudes consist of three major components a
cognitive component, an affective component and a conative component (see Figure)
A Simple Representation of the Tricomponent Attitude Model
a. The Cognitive Component
The first part of the tricomponent attitude model consists of a person's cognition that is, the
knowledge and perceptions that are acquired by a combination of direct experience with the
attitude object and related information from various sources This knowledge and resulting
perceptions commonly take the form of beliefs, that is, the consumer believes that the attitude
object possesses various attributes and that specific behavior will lead to specific outcomes
Although it captures only a part of Ralph's belief system about two types of broadband Internet
connections (e g, cable and DSL), Figure below illustrates the composition of a consumer's
belief system about these two alternatives Ralph’s belief system for both types of connections
consists of the same basic four attributes: speed, availability, reliability, and "other" features.
However, Ralph has somewhat different beliefs about the two broadband alternatives with
respect to these attributes. For instance, he knows from friends that the local cable company's
broad-band connection is much faster than DSL, but he does not like the fact that he will also
have to begin subscribing to cable TV if he does not want to pay an extra $20 a month for the
broadband Internet connection. Ralph is thinking of asking a few of his friends about the
differences between cable and DSL broadband Internet service and will also go online to a
number of Web sites that discuss this topic

4
4 www.mynotebook.in
A Consumer's Belief System for Two Methods of Broadband Internet Access
b. The Affective Component
A consumer's emotions or feelings about a particular product or brand constitute the affective
component of an attitude. These emotions and feelings are frequently treated by consumer
researchers as primarily evaluative in nature i.e. they capture an individual's direct or global
assessment of the attitude object (i.e., the extent to which the individual rates the attitude
object as "favorable" or "unfavorable," "good" or "bad"). Table below shows a series of
evaluative (affective) scale items that might be used to assess consumers' attitudes toward
Lubriderm Skin Therapy Moisturizing Lotion.
Selected Evaluative Scale Used to Gauge Consumers' Attitudes Toward Lubriderm Skin
Therapy Moisturizing Lotion
Compared to other skin moisturizing lotions, Lubriderm Skin Therapy Moisturizing
Lotion is
Good [1] [2] [3] [4] [5] [6] [7] Bad
Positive [1] [2] [3] [4] [5] [6] [7] Negative
Pleasant [1] [2] [3] [4] [5] [6] [7] Unpleasant
Appealing [1] [2] [3] [4] [5] [6] [7] Unappealing
Affect-laden experiences also manifest themselves as emotionally charged states (e.g.,
happiness, sadness, shame, disgust, anger, distress, guilt, or surprise). Research indicates that
such emotional states may enhance or amplify positive or negative experiences and that later
recollections of such experiences may impact what comes to mind and how the individual
acts. For instance, a person visiting an outlet mall is likely to be influenced by his or her
emotional state at the time. If the outlet mall shopper is feeling particularly joyous at the
moment, a positive response to the outlet may be amplified. The emotionally enhanced
response to the outlet mall may lead the shopper to recall with great pleasure the time spent at
the outlet mall It also may influence the individual shopper to persuade friends and
acquaintances to visit the same outlet mall and to make the personal decision to revisit the
mall
In addition to using direct or global evaluative measures of an attitude object consumer
researchers can also use a battery of affective response scales (e g, that measure feelings and
emotions) to construct a picture of consumers' overall feelings about a product, service, or ad
Table below gives an example of a five-point scale that measures affective responses

5
5 www.mynotebook.in
Measuring Consumers' Feelings and Emotions with Regard to Using Lubriderm Skin Therapy
Moisturizing Lotion
For the past 30 days you have had a chance to try Lubriderm We would appreciate it if you
would identify how your skin felt after using the product during this 30-day trial period For
each of the words below, we would appreciate it if you would mark an "X" in the box
corresponding to how your skin felt after using Lubriderm during the past 30 days
VERY NOT AT
ALL
Relaxed
Beautiful
Tight
Smooth
Supple
Clean
Refreshed
Younger
Revived
Renewed
c. The Conative Component
Conation, the final component of the tricomponent attitude model, is concerned with the
likelihood or tendency that an individual will undertake a specific action or behave in a
particular way with regard to the attitude object According to some interpretations, the
conative component may include the actual behavior itself.
In marketing and consumer research, the conative component is frequently treated as an
expression of the consumer's intention to buy. Buyer intention scales are used to assess the
likelihood of a consumer purchasing a product or behaving in a certain way. Given below are
examples of common intention-to-buy scales. Interestingly, consumers who are asked to
respond to an intention-to-buy question appear to be more likely to actually make a brand
purchase for positively evaluated brands (e.g., "I will buy it"), as contrasted to consumers
who are not asked to respond to an intention question. This suggests that a positive brand
commitment in the form of a positive answer to an attitude intention question impacts in a
positive way on the actual brand purchase.
Two Examples of Intention-to-Buy Scales
Which of the following statements best describes the chance that you will buy Lubriderm
Lotion the next time you purchase a skin care product?
_____ I definitely will buy it.
_____ I probably will buy it.
_____ I am uncertain whether I will buy it.
_____ I probably will not buy it.
_____ I definitely will not buy it.
How likely are you to buy Lubriderm Lotion during the next three months?
_____ Very likely
_____ Likely
_____ Unlikely
_____ Very unlikely
2. Multiattribute Attitude Models
Multiattribute attitude models portray consumers' attitudes with regard to an attitude object (e.g., a
product, a service, a direct-mail catalog, or a cause or an issue) as a function of consumers’
perception and assessment of the key attributes or beliefs held with regard to the particular attitude
object. Although there are many variations of this type of attitude model, we have selected the
following three models to briefly consider here: the attitude-toward-object model, the attitude-
toward-behavior model, and the theory-of-reasoned-action model.

6
6 www.mynotebook.in
a. The Attitude-Toward-Object Model
The attitude-toward-object model is especially suitable for measuring attitudes toward a product
(or service) category or specific brands According to this model the consumer's attitude toward a
product or specific brands of a product is a function of the presence (or absence) and evaluation
of certain product-specific beliefs and / or attributes. In other words, consumers generally have
favorable attitudes toward those brands that they believe have an adequate level of attributes that
they evaluate as positive, and they have unfavorable attitudes toward those brands they feel do
not have an adequate level of desired attributes or have too many negative or undesired attributes.
As an illustration, we return to the broadband Internet connection example (see Figure above).
Each alternative has a different "mix" of features (a "feature set"). The defining features might
include speed, reliability, cost, availability of 24/7 technical assistance, maximum file size that
can he e-mailed, and so on. For instance, one of the two types of connections might be found to
excel on core features, whereas the other may be really good on a few of the core features but
offer more additional features. It is also possible that neither the cable nor the DSL carriers may
be more than "second rate." However, what consumers will purchase is likely to be a function
"how much they know," "what they feel are important features for them," and in the current
example, their "awareness as to which type of broadband service possesses (or lacks) the valued
attributes."
Conducting consumer attitude research with children, especially gauging their attitudes toward
products and brands, is an ongoing challenge. What are needed are new and effective
measurement approaches that allow children to express their attitudes toward brands. To this end,
researchers have labored to develop an especially simple and short attitude measurement
instrument for questioning children between 8 and 12 years of age. In the case of the example
presented in Table the questionnaire is set up to assess children's attitudes toward the Complan
brand
Scale Used to Measure Attitude Toward Brands for 8- to 12-Year-Olds
Definitely
Disagree
Disagree Neither
Agree nor
Disagree
Agree Definitely
Agree
Complan - I like it.
Complan - It is great
Complan – It is fun
Complan - It is useless
Complan - I like it very much
Complan - It is practical/handy
Complan - It is useful
Complan - It is tasty
b. The Attitude-Toward-Behavior Model
The attitude-toward-behavior model is the individual's attitude toward behaving or acting with
respect to an object rather than the attitude toward the object itself. The appeal of the attitude-
toward-behavior model is that it seems to correspond somewhat more closely to actual behavior
than does the attitude-to-object model. For instance, knowing Ketan's attitude about the act of
purchasing a top-of-the-line BMW (i.e., his attitude toward the behavior) reveals more about the
potential act of purchasing than does simply knowing his attitude toward expensive German cars
or specifically BMWs (i.e., the attitude toward the object). This seems logical, for a consumer
might have a positive attitude toward an expensive BMW but a negative attitude as to his
prospects for purchasing such an expensive vehicle.
c. Theory-of-Reasoned-Action Model
The theory of reasoned action represents a comprehensive integration of attitude components
into a structure that is designed to lead to both better explanation and better predictions of
behavior Like the basic tricomponent attitude model, the theory-of-reasoned-action model
incorporates a cognitive component, an affective component, and a conative component,
however, these are arranged in a pattern different from that of the tricomponent model (see
Figure below)

7
7 www.mynotebook.in
In accordance with this expanded model, to understand intention we also need to measure the
subjective norms that influence an individual's intention to act. A subjective norm can be
measured directly by assessing a consumer's feelings as to what relevant others (family,
friends, roommates, co-workers) would think of the action being contemplated, that is would
they look favorably or unfavorably on the anticipated actions For example, if a graduate
student was considering purchasing a new VW Beetle and stopped to ask himself what his
parents or girlfriend would think of such behavior (i.e. approve or disapprove), such a
reflection would constitute his subjective norm
Consumer researchers can get behind the subjective norm to the underlying factors that are
likely to produce it They accomplish this by assessing the normative beliefs that the individual
attributes to relevant others, as well as the individual’s motivation to comply with each of the
relevant others For instance, consider the graduate student contemplating the purchase of a
new VW Beetle. To understand his subjective norm about the desired purchase, we would
have to identify his relevant others (parents and girlfriend), his beliefs about how each would
respond to his purchase of the Beetle (e.g., "Dad would consider the car an unnecessary
luxury, but my girlfriend would love it"), and, finally, his motivation to comply with his
parents and/or his girlfriend
A Simplified Version of the Theory of Reasoned Action
3. Trying-To-Consume Model
There has been an effort underway to extend attitude models so that they might better accommodate
consumers' goals as expressed by their "trying" to consume. The theory of trying to consume is
designed to account for the many cases in which the action or outcome is not certain but instead
reflects the consumer's attempts to consume (i.e. purchase) A classic example of trying ("not") to
consume is attempting to diet and lose weight In trying to consume, there are often personal
impediments (a consumer is trying to find just the right necktie to go with a newly purchased suit
for under Rs. 500.00 or trying to lose weight but loves potato chips) and/or environmental
impediments (only the first 200 in line will be able to purchase a DVD player for the special
Saturday 8 00 A M to 9-00 A M price of Rs. 4000.00) that might prevent the desired action or
outcome from occurring Again, the key point is that in these cases of trying, the outcome (e g ,
purchase, possession, use, or action) is not and cannot be assumed to be certain Given below is a list

8
8 www.mynotebook.in
of few examples of possible personal and environmental impediments that might negatively impact
the outcome for a consumer trying to consume
Selected Examples of Potential Impediments That Might Impact on Trying
POTENTIAL PERSONAL IMPEDIMENTS
 I wonder whether my fingernails will be longer by the time of my wedding
 I want to try to lose 15 pounds by next summer
 I’m going to try to get tickets for a Broadway show for your birthday
 I’m going to attempt to give up smoking by my birthday
 I am going to increase how often I go to the gym from two to four times a week
 Tonight I m not going to have dessert at the restaurant'
POTENTIAL ENVIRONMENTAL IMPEDIMENTS
 The first 10 people to call in will receive a free T-shirt
 Sorry, the shoes didn't come in this shipment from Italy
 There are only three bottles of champagne in our stockroom You better come in sometime
today
 I am sorry, we cannot serve you We are closing the restaurant because of a problem with the
oven
Researchers have recently extended this inquiry by examining those situations in which consumers
do not try to consume - that is fail to try to consume In this case, consumers appear to
(1) fail to see or are ignorant of their options
(2) make a conscious effort not to consume, that is, they might seek to self-sacrifice or defer
gratification to some future time
4. Attitude-Toward-The-Ad Models
In an effort to understand the impact of advertising or some other promotional vehicle (e.g. a
catalog) on consumer attitudes toward particular products or brands considerable attention has been
paid to developing what has been referred to as attitude-toward-the-ad models
Figure below presents a schematic of some of the basic relationships described by an attitude-
toward-the-ad model
A Conception of the Relationship Among Elements in an Attitude-Toward-the-Ad Model
As the model depicts, the consumer forms various feelings (affects) and judgments (cognitions) as
the result of exposure to an ad
These feelings and judgments in turn affect the consumer’s attitude toward the ad and beliefs about
the brand acquired from exposure to the ad. Finally, the consumer's attitude toward the ad and
beliefs about the brand influence his or her attitude toward the brand
Exposure to an
Ad
Feelings from
the Ad
(Affect)
Attitude
towards the Ad
Attitude
toward the
Brand
Beliefs about
the Brand
Judgments
about the Ad
(Cognition)

9
9 www.mynotebook.in
Research among Asian Indian U.S. immigrants have explored attitudes toward 12 advertisements
and purchase intention of six different products that the ads feature. The study found a positive
relationship between attitude toward the advertisement and purchase intention for each of the
advertised products: that is, if consumers "like" the ad, they are more likely to purchase the product.
Additional research reveals that for a novel product (e.g., contact lens for pets) consumers’ attitude
toward the ad has a stronger impact on brand attitude and purchase intention than for a familiar
product (e.g., pet food). This same research found that beliefs about a brand (brand cognition) that
result from ad exposure play a much stronger role in determining attitudes toward the brand for a
familiar product. Thus, it is important to consider the nature of the attitude object in assessing the
potential impact of advertising exposure.
Finally, consumer socialization has also shown itself to be an important determinant of a consumer's
attitudes toward advertising. One study, for example, found that parental communication, peer
communication, social utility of advertising, amount of television watched, gender, and race were
all associated with attitude toward advertising. African Americans and women were found to have
more positive attitudes toward advertising.
Attitude Formation
How do people, especially young people, form their initial general attitudes toward "things"? Consider
their attitudes toward clothing they wear, for example, casual wear, and business attire. On a more
specific level, how do they form attitudes toward Fruit of the Loom or Calvin Klein underwear, or
Levi's or Gap casual wear, or Anne Klein or Emporium Armani business clothing? Also, what about
where such clothing is purchased? Would they buy their underwear, casual wear, and business clothing
at Wal-Mart, Sears, JC Penney, or Macv's? How do family members and friends, admired celebrities,
mass-media advertisements, even cultural memberships influence the formation of their attitudes
concerning consuming or not consuming each of these types of apparel items? Why do some attitudes
seem to persist indefinitely while others change fairly often? The answers to such questions are of vital
importance to marketers, for without knowing how attitudes are formed they are unable to understand
or to influence consumer attitudes or behavior
Examination of attitude formation can be divided into three areas
1. How attitudes are learned
2. The sources of influence on attitude formation
3. The impact of personality on attitude formation
1. How Attitudes Are Learned
When we speak of the formation of an attitude, we refer to the shift from having no attitude toward
a given object (e.g. a digital camera) to having some attitude toward it (e g, having a digital camera
is great when you want to e-mail photos to friends) The shift from no attitude to an attitude (i.e. the
attitude formation) is a result of learning.
Consumers often purchase new products that are associated with a favorably viewed brand name
Their favorable attitude toward the brand name is frequently the result of repeated satisfaction with
other products produced by the same company In terms of classical conditioning, an established
brand name is an unconditioned stimulus that through past positive reinforcement resulted in a
favorable brand attitude A new product, yet to be linked to the established brand, would be the
conditioned stimulus To illustrate, by giving a new moisturizing body wash the benefit of its well-
known and respected family name. Oil of Olay is counting on an extension of the favorite attitude
already associated with this brand name to the new product They are counting on stimulus
generalization from the brand name to the new product Research suggests that the “fit” between a
parent brand (e.g. in this case Oil of Olay) and a brand extension (e.g. in this case Daily Renewal
Moisturizing Body Wash) is a function of two factors (1) the similarity between the preexisting
product categories already associated with the parent brand (i e , mostly products related to hair
care) and the-new extension and (2) the fit or match between the images of the parent brand and the
new extension.
Sometimes attitudes follow the purchase and consumption of a product For example, a consumer
may purchase a brand name product without having a prior attitude toward it because it is the only
product of its kind available (e g, the last bottle of aspirin in a gas station mini-mart) Consumers
also make trial purchases of new brands from product categories in which they have little personal
involvement If they find the purchased brand to be satisfactory, then they are likely to develop a
favorable attitude toward it

10
10 www.mynotebook.in
In situations in which consumers seek to solve a problem or satisfy a need, they are likely to form
attitudes (either positive or negative) about products on the basis of information exposure and their
own cognition (knowledge and beliefs) In general, the more information consumers have about a
product or service, the more likely they are to form attitudes about it, either positive or negative
However regardless of available information consumers are not always ready or willing to process
product-related information Furthermore, consumers often use only a limited amount of the
information available to them Research suggests that only two or three important beliefs about a
product dominate in the formation of attitudes and that less important beliefs provide little
additional input This important finding suggests that marketers should fight off the impulse to
include all the features of their products and services in their ads, rather, they should focus on the
few key points that are at the heart of what distinguishes their product from the competition
2. Sources Of Influence On Attitude Formation
The formation of consumer attitudes is strongly influenced by
♦ Personal experience
♦ The influence of family and friends
♦ Direct marketing
♦ Mass media
The primary means by which attitudes toward goods and services are formed is through the
consumer's direct experience in trying and evaluating them Recognizing the importance of direct
experience, marketers frequently attempt to stimulate trial of new products by offering price-off
coupons or even free samples In such cases, the marketer's objective is to get consumers to try the
product and then to evaluate it If a product proves to be to their liking, then it is probable that con-
sumers will form a positive attitude and be likely to repurchase the product In addition, from the
information on the coupon (e g name and address) the marketer is able to create a database of
interested consumers
As we come in contact with others, especially family, close friends and admired individuals (e g, a
respected teacher) we form attitudes that influence our lives The family is an extremely important
source of influence on the formation of attitudes, for it is the family that provides us with many of
our basic values and a wide range of less central beliefs For instance, young children who are
rewarded for good behavior with sweet foods and candy often retain a taste for (and positive attitude
toward) sweets as adults.
Marketers are increasingly using highly focused direct-marketing programs to target small
consumer niches with products and services that fit their interests and lift-styles (Niche marketing is
sometimes called micro-marketing Marketers very carefully target customers on the basis of their
demographic, psychographic or geodemographic profiles with highly personalized product offerings
(e.g. hunting rifles for left-handed people) and messages that show they understand their special
needs and desires Direct-marketing efforts have an excellent chance of favorably influencing target
consumers' attitudes, because the products and services offered and the promotional messages
conveyed are very carefully designed to address the individual segment's needs and concerns and,
thus, are able to achieve a higher "hit rate" than mass marketing
In countries where people have easy access to newspapers and a variety of general and special-
interest magazines and television channels, consumers are constantly exposed to new ideas,
products, opinions, and advertisements These mass-media communications provide an important
source of information that influences the formation of consumer attitudes Other research indicates
that for consumers who lack direct experience with a product, exposure to an emotionally appealing
advertising message is more likely to create an attitude toward the product than for consumers who
have beforehand secured direct experience with the product category ^The net implications of these
findings appear to be that emotional appeals are most effective with consumers who lack product
experience
Still another issue with regard to evaluating the impact of advertising messages on attitude
formation is the level of realism that is provided Research has shown that attitudes that develop
through direct experience (e.g. product usage) tend to be more confidently held, more enduring, and
more resistant to attack than those developed via indirect experience (e g reading a print ad) And
just as television provided the advertiser with more realism than is possible in a radio or print ad, the

11
Internet has an even greater ability to provide tele-presence, which is the simulated perception of
direct experience The World Wide Web also has the ability to provide the "flow experience," which
is a cognitive state occurring when the individual is so involved in an activity that nothing else
matters Research on tele-presence suggests that "perceptions of tele-presence grew stronger as
levels of interactivity and levels of vividness (i.e. the way an environment presents information to
the senses) of web sites increased
3. Impact of Personality
Personality also plays a critical role in attitude formation For example individuals with a high need
for cognition (i.e. those who crave information and enjoy thinking) are likely to form positive
attitudes in response to ads or direct mail that are rich in product-related information On the other
hand, consumers who are relatively low in need for cognition are more likely to form positive
attitudes in response to ads that feature an attractive model or well-known celebrity In a similar
fashion, attitudes toward new products and new consumption situations are strongly influenced by
specific personality characteristics of consumers

12
INTRODUCTION
All of us are consumers. We consume things of daily use. We also consume and buy these products
according to our needs, preferences and buying power. These can be consumable goods, durable
goods, speciality goods or, industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our
perception, self concept, social and cultural background and our age and family cycle, our attitudes,
beliefs values, motivation, personality, social class and many other factors that are both internal and
external to us. While buying, we also consider whether to buy or not to buy and, from which source or
seller to buy. In some societies there is a lot of affluence and, these societies can afford to buy in
greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest
needs.
To know the buyer, his buying motives and buying habits, to understand not only his needs and
desires, but also his fancies, foibles and eccentricities, has throughout been a fundamental necessity for
the marketing man. But there is no unified, well defined, tested and universally established theory of
buyer behavior established. All researches and studies have contributed to a vast assortment of
information on buyer behavior.
The marketers therefore try to understand the needs of different consumers and having understood his
different behaviors, which require an in-depth study of their internal and external environment, they
formulate their plans for marketing.
Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring, evaluating,
using and disposing of goods and services.
This definition clearly brings out that it is not just the buying of goods / services that receives attention
in consumer behavior, but the process starts much before the goods have been acquired or bought. A
process of buying starts in the minds of the consumer, which leads to the finding of alternatives
between products that can be acquired with their relative advantages and disadvantages. This leads to
internal and external research. Then follows a process of decision-making for purchase and using the
goods, and then the post purchase behavior which is also very important, because it gives a clue to the
marketers whether his product has been a success or not.
 What motivates the buyer?
 What induces him to buy?
 Why does he buy a specific brand from a particular shop?
 Why does he shift his preferences from one shop to another or from one brand to another?
 How does he react to a new product introduced in the market or a piece of information addressed to
him?
 What are the stages he travels through before he makes the decision to buy?
These are some of the questions that are of perennial interest to the marketing man. Though there are
no succinct and precise answers to these questions, or, rather around the answers to these questions that
the product strategies and promotion strategies of the marketing man ultimately revolve.
To understand the likes and dislikes of the consumer, extensive consumer research studies are being
conducted. These researches try to find out:
 What the consumer thinks of the company's products and those of its competitors?
 How can the product be improved in their opinion?
 How the customers use the product?
 What is the customer's attitude towards the product and it’s advertising?
 What is the role of the customer in his family?
Consumer behavior is a complex, dynamic, multidimensional process, and all marketing decisions are
based on assumptions about consumer behavior.
Marketing strategy is the game plan that the firms must adhere to, in order to outdo the competitor or
the plans to achieve the desired objective. In formulating the marketing strategy, to sell the product
effectively, cost-benefit analysis must be undertaken.

13
There can be many benefits of a product, for example, for owning a motorbike one can be looking for
ease of transportation, status, pleasure, comfort and feeling of ownership. The cost is the amount of
money paid for the bike, the cost of maintenance, gasoline, parking, risk of injury in case of an
accident, pollution and frustration such as traffic jams. The difference between this total benefit and
total cost constitutes the customer value. The idea is to provide superior customer value and this
requires the formulation of a marketing strategy. The entire process consists of market analysis, which
leads to target market selection, and then to the formulation of strategy by juggling the product, price,
promotion and distribution, so that a total product (a set of entire characteristics) is offered. The total
product creates an image in the mind of the consumer, who undergoes a decision process that leads to
the outcome in terms of satisfaction or dissatisfaction, which reflects on the sales and image of the
product or brand.
Figure below gives in detail the shaping of consumer behavior, which leads a consumer to react in
certain ways and he makes a decision, keeping the situations in mind. The process of decision-making
varies with the value of the product, the involvement of the buyer and the risk that is involved in
deciding the product / service.
The figure shows the consumer life style in the center of the circle. The consumer and his life style are
influenced by a number of factors shown all around the consumer. These are culture, subculture,
values, demographic factors, social status, reference groups, household and also the internal make up
of the consumer, which are a consumers' emotions, personality motives of buying, perception and
learning. Consumer is also influenced by the marketing activities and efforts of the marketer. All these
factors lead to the formation of attitudes and needs of the consumer. Then follows the process of
decision-making, (as shown in the rectangle) which consists of the problem recognition, information
search (which is both internal and external) then the evaluation and selection procedure, and finally the
purchase. After the purchase and use of the product the customer may be satisfied or dissatisfied with
the product. This is known as post-purchase behavior. The existing situations also play an important
role in the decision-making process. The dotted lines show the feedback.
Simplified Framework For Studying Consumer Behavior
Advantages of Studying Consumer Behavior
1. Saves From Disaster
The failure rate of new products is surprisingly high not only in highly competitive economies of
USA, Europe and Japan etc but even in India. For instance Roohafza of Hamdard succeeded well
but when other companies tried like Dabur to produce similar products they could not succeed.
Dabur had to stop production of Sharbat, because consumers did not like its taste. Maggi became
very popular with consumers but when other companies tried they failed, some of them have

14
become sick. There are many more such examples. If one tests the market before launching a new
product this type of disaster can be avoided or minimized.
2. Helps in Formulating The Right Marketing Strategy
If one studies well what factors will influence demand of a product accordingly production and
marketing strategies can be framed. Nirma in initial stages succedeed in its washing powder only on
account of its price. It gave tough competition to Hindustan Lever, Surf the market leader and today
Nirma has become a big producer.
In food items it is taste, which decides whether consumer will buy the product or not. Besides big
names even small producers have succeeded because of proper product. For instance, a small
producer of Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has become a
name in the region and now he provides franchise to others. From a small pan shop he has become a
well-known name in the area of Delhi-Modinagar and made huge profits.
3. Helps in Sales Promotion
If through the study of consumer behavior one is able to know correctly the factors which influence
buying decision of the consumer one can promote sales of existing or new product The scheme of
buying back old items has helped a lot LML in pushing sales. Akai TV and number of other
companies like Bajaj Auto followed this strategy. Manufacturers of diesel generator sets,
refrigerators, electric iron, pressure cookers etc also adopted the strategy and benefited.
Similarly introduction of small packs of shampoos, washing powder and pan masala etc has helped
the companies to expand their market. "When producers found that even a poor person does not
mind trying a new costly product if it is available in affordable price pack many companies
introduced such packaging and when the product was liked they became regular customers.
4. Aids in Segmentation of Market
The study of consumer behavior suggested that every one does not buy on price consideration or
utility consideration only. For high-income groups high priced cloth, cars, etc have been produced.
In certain cases the price of such cloth is three to eight times of normal suiting price but some
section still buy it for prestige or show. The producers of such items make heavy profits, which
would not have been possible without study of consumer behavior because it is against basic
economic theory. Even some producers to cater different segments produce varieties of products
such as soaps, creams, toothpastes etc.
5. Enables Development of New Products
Before launching a new product proper study of consumer tastes i.e. behavior avoids later failure
and loss. This is particularly true for food items and daily consumption products. It is equally true
for fashion goods like garments, cosmetics, cigarettes and new flavors of existing products. In
certain cases if a product is reintroduced after a long gap this type of study helps. For instance Coca-
Cola was banned in India in 1977 and consumers by and large forget its taste and liking. Thumps up
and other drinks took its place. When Coca-Cola was reintroduced in 90's it could as yet not reach
the same supremacy. Life Bouy re-oriented its product and produced different items like Life Bouy
Gold, Life Bouy Plus to meet demand of different consumers.
6. Helps in Product Orientation
The study of consumer behavior helps to find out why consumers are drifting away from a product
or why they do not like it. For instance some of Indian toothpastes are being produced for long like
Neem but it could not capture the market. There are many other instances when a new product has
been developed or reoriented to again capture its old glorious position. Those who do it
scientifically succeed and others who do not study consumer behavior properly or do not orient
loose the market, merely by pretty faces or fancy claims he wants to be assured that what is claimed
is really true. Therefore based on consumer research new technique are used Hindustan Lever and
Procter & Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and
Reliance to testify claims of producers of these washing powders. This is not an isolated case but
this type of study had paid good results to others also.
7. Aids in Reorientation of Packaging
A great deal of importance is being given to packaging for quite sometime by marketing department
and market research. But whether a particular packaging is liked by consumers or not is a recent
phenomenon. Consumer if likes a packing helps in pushing sales. Producers of Vanaspati
(hydrogenated oil), milk, drinks items, etc have developed utility packaging so that once container
becomes empty they can be used for refilling. In certain cases this fact is advertised also. But in

15
many cases this has been done without study of consumer behavior and his attraction or disliking of
a particular packaging. The fact however remains that proper study can help in pushing sales.
8. Helps Consumers to Study their Behavior
The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behavior whether it is scientific or not. The science however can help them
to study cost benefit of their buying decisions. The study can reveal to them whether buying an
expensive item is rational or not. Whether they should buy Rs. 2 ball pen or fancy pen costing Rs.
100 or more. Whether they should decide in favor of expensive cloth, car, consumer durables and
other fashion goods or should they buy on utility consideration. If there are competitive goods it can
help them to make consumer preference chart and then decide what to buy immediately and what to
postpone and what should be rejected.
Disadvantages of Studying Consumer Behavior
1. The marketers study the behavior of consumer to mould it in favor of their product and some times
make fancy claims and use objectionable techniques.
2. They also take the help to produce and market such products that have no utility. In many cases
consumers are exploited by sexy or otherwise attractive advertisements through the media. They
take full advantage of weaknesses of consumers to mould it in their favor whether it is scheme of
exchange, gifts, lotteries or otherwise. All over the world consumers have been exploited by sales
promotion schemes and campaigns. For instance producers certain producers claim that use of their
toothpaste will guard against germs and cavity. Producers of medicines claim cure of certain
diseases. Producers of hair oils claim that it will stop falling of hairs and/or new hairs will start
growing. Slim centers claim to reduce weight in magic speedy manner. Some one claims that
baldness can be cured by replanting of new hairs in short period. Some one claims regeneration of
vitality even in old person. Any number of examples can be given but such claims sometimes even
by big companies are only partially true.
3. Higher priced products are introduced to take advantage of consumers’ weakness just by changing
shape, packing etc.
4. Customers are as attracted by gifts, lotteries, exchange schemes, etc. In such cases often claims are
exaggerated and benefits in the form of sales promotion scheme is only to seller and not to buyer.
The governments in most of the countries have found that though consumer is the king he is exploited.
Hence most of countries have framed and enacted many acts and regulations to safe guard the interest
of consumers In India also there are a large number of laws in this direction like Monopoly and
Restrictive Trade Practices Act (MRTP), Essential Commodities Act, Consumer Protection Act,
compulsory printing of maximum retail price on each packing, weights and Measures Act and Code of
Advertising For specific commodities there are special Union and state government laws like for drugs
and regulations of telephone rates. In addition there are public forums to protect consumers
Factors Influencing Consumer Behavior
The factors that influence consumer behavior can be classified into internal factors or (individual
determinants) and, external environmental factors. External factors do not affect the decision process
directly, but percolate or filter through the individual determinants, to influence the decision process as
shown in Figure below. The arrow shows how the external influences are filtered towards the
individual determinants to affect the decision process
The individual determinants that effect consumer behavior are:
 Motivation and involvement
 Attitudes
 Personality and self concept
 Learning and memory
 Information processing
The external influences or factors are:
 Cultural influences
 Sub-cultural influences
 Social class influences
 Group influences
 Family influences
 Personal influences

16
 Other influences
A. Individual Determinants
1. Motivation and Involvement
In a society, different consumers exhibit different consumer behavior because they are unique and
have unique sets of needs. Motivation is that internal force that activates some needs and provides
direction of behavior towards fulfillment of these needs.
Involvement refers to the personal relevance or importance of a product or a service that a consumer
perceives in a given situation. Depending on the value and personal interest, a consumer can have a
high or low involvement. For a professional tennis player, the choice of a tennis racket is made with
great car. He sees the weight, size, grip and tension of the strings, etc. The racket is his most
important professional tool. Similarly, a professional photographer has to buy a camera with the
right specifications and attributes. For another person, a tennis racket may only be a means of
entertainment or in the case of a camera, the recording of family and other events by a camera,
which is convenient and handy.
2. Attitudes
These are our learned predispositions towards people, objects and events. Attitudes are responsible
for our responses and are not inborn but are learnt from people around us. They influence our
purchase decisions and consumer behavior. A person having a carefree attitude will buy an object
without much involvement. People, who want to play safe and avoid risk taking, will go for a safe
investment. People who want convenience and are short of domestic help, will have positive
attitudes towards canned and frozen foods.

17
3. Personality and Self Concept
It is the sum total of our mental, physical and moral qualities and characteristics that makes us what
we are. Consumers try to buy the products that match their personality. People wanting to look-
manly will buy products with a macho appeal, which would enhance their image and personality.
People, who give emphasis on comfort and care, will purchase comfort products and so on. If one
wants to emulate a film star his choice will be different from others.
4. Learning and Memory
Every day we are exposed to a wide range of information, but retain only a small portion of it. We
tend to remember the information that we are interested in or, that is important to us. Different
members of the family are interested in different types of information, which they individually
retain. Mothers retain information regarding household items. Father retains information regarding
his interest in cars, motorcycles and other objects. Children are interested in objects of their interest
like amusement parks, joy rides, Barbie dolls, etc.
Our motives, attitudes, personality filters the information. Keeping only relevant information in our
minds and, keeping the others out. This is known as selective retention. We retain in our memory
only selective information that is of interest to us.
5. Information Processing
All consumers analyze and process the information they receive. These are activities that a
consumer engages in, while gathering, assimilating and evaluating information. Consumers
assimilate and evaluate selective information and this reflects on their motives, attitudes and
personality and self-concept. Different individuals can evaluate same information in a different
manner. The most common example is a glass half filled with a liquid. It can be interpreted as "half
empty" or half full. The first is a pessimistic view and the other is an optimistic view of processing
the information.
B. External Environmental
1. Cultural Influences
It is defined as a complex sum total of knowledge, belief, traditions, customs, art, moral law or any
other habit acquired by people as members of a society. Our consumer behavior, that is the things
we buy are influenced by our background or culture. Different emphasis is given by different
cultures for the buying, use, and disposing of products. People in South India have a certain style of
consumption of food, clothing, savings, etc. This differs from the people in the North of India.
Different cultures and habits are predominant in different parts of the world. Japanese have a
different culture from that of USA, England or Arabian countries. Therefore, in consumer behavior
culture plays a very important part.
2. Sub-Cultural Influences
Within a culture, there are many groups or segments of people with distinct customs, traditions and
behavior. In the Indian culture itself, we have many subcultures, the culture of the South, the North,
East and the West. Hindu culture, Muslim culture. Hindus of the South differ in culture from the
Hindus of the North and so on. Products are designed to suit a target group of customers that have
similar cultural backgrounds and are homogeneous in many respects.
3. Social Class
By social class we refer to the group of people who share equal positions in a society. Social class is
defined by parameters like income, education, occupation, etc. Within a social class, people share
the same values and beliefs and tend to purchase similar kinds of products. Their choice of
residence, type of holiday, entertainment, leisure all seem to be alike. The knowledge of social class
and their consumer behavior is of great value to a marketer.
4. Group Influences
A group is a collection of individuals who share some consumer relationship, attitudes and have the
same interest. Such groups are prevalent in societies. These groups could be primary where
interaction takes place frequently and, consists of family groups. These groups have a lot of
interaction amongst themselves and are well knit. Secondary groups are a collection of individuals
where relationship is more formal and less personal in nature. These could be political groups, work
group and study groups, service organizations like the Lions, Rotary, etc. Other member of the
group influences the behavior of a group. An individual can be a member of various groups and can
have varied influences by different members of groups in his consumption behavior. An individual
can be an executive in a company and a member of a political party; he may be a member of a

18
service organization and of entertainment clubs and study circles. These exert different influences
on his consumption.
5. Family Influence
As has already been said, the family is the most important of the primary group and is the strongest
source of influence on consumer behavior. Children learn the family tradition and customs, and they
imbibe many behavioral patterns from their family members, both consciously and unconsciously.
These behavior patterns become a part of children's lives. In a joint family, many decision are
jointly made which also leave an impression on the members of the family.
These days the structure of the family is changing and people are going in more for nucleus
families, which consists of parent and dependent children. The other type of family is the joint
family where mother, father, grandparents and relatives are also living together.
6. Personal Influences
Each individual processes the information received in different ways and evaluates the products in
his own personal way. This is irrespective of the influence of the family, social class, cultural
heritage, etc. His own personality ultimately influences his decision. He can have his personal
reasons for likes, dislikes, price, convenience or status. Some individuals may lay greater emphasis
on price, others on quality, still others on status, symbol, convenience of the product, etc. Personal
influences go a long way in the purchase of a product.
7. Other Influences
Consumers are also influenced by national or regional events, which could be like the Asiad, the
Olympics, cricket test matches, World Cup, the war or a calamity. These leave permanent or
temporary impressions on the mind of the consumer and affect his behavior. In these events,
products are advertised and sometimes the use of a product like drugs, etc. is discouraged. People
are urged to adopt family planning methods. Situation variables such as product display, price
reduction, free gifts and attractive offers also influence consumer behavior.
External factors cannot affect the decision process directly but these are also instrumental and exert an
influence on consumer behavior.
Factors affecting consumers can also be studied by dividing the factors into four groups as shown
below. This can be done under four broad headings, which can have sub headings as shown
Factors influencing consumer behavior (Classification in four broad categories)

19
Problems in Buyer Behaviour
1) The buyer-a riddle- Buyer is a highly complex entity. His needs and desires are innumerable and
they vary from security needs to aesthetic needs. The buyer has his own ways and means of meeting
these needs.
2) The buyer is exposed to a great deal of information -The buyer is exposed today to a world of
information-about new products, new services, new uses for existing products, new ideas and new
styles. Generally he accepts that information and retains it only what he would normally like to
perceive and retain.
3) The buyer is not bound by rigid rules while taking the buying decisions. -Sometimes the decisions
are taken on the spot while sometime he may decide after a long search, after evaluating the various
alternatives available and reassuring himself with the experience of those who have already purchased
the product. Buyer behaviour is a specific aspect of general human behaviour and it is only natural that
it is as complex as general human behaviour.
Uses of Consumer Behavior
Knowledge of consumer behaviour is useful for helping both to set and to implement marketing
strategies. For setting strategies, it helps in:
 Selecting and segmenting markets
 Planning marketing strategies.
 Evaluating strategies.
 Assessing consumer trends that will affect strategies in the future.
 Understanding fully the sources of any market-response problems.
 Gauging response to prospective product, price, promotion and distribution changes.
 Planning the marketing program.
 Evaluating the marketing program.
Consumer Behavior As An Interdisciplinary Science
Since the behavior of the consumer is dependent upon physiological, psychological, cultural, social,
economic, language, regional, religious, political and other factors, it is an interdisciplinary science. If
one wants to study properly and scientifically the behavior of consumers one is required to study
various facts of life about thinking of consumer, his decisions, perceptions and all factors which
influence his thinking and decision like his education, culture, income, climate, social status, society,
physiology, psychology, region to which he belongs, his religion, and the like. To under take research
one has to use research tools specially sampling, drafting of questionnaire, tabulation and arriving at
results and then interpret it properly and accurately so that the results may be utilized for strategic
policy decisions All this require use of statistics and econometrics, and proper understanding of
economics, and other factors so that one may reach at correct, meaningful, fruitful and useful results.
1. Psychology
Study of consumer psychology is most important part of consumer behavior research, because it helps
to know the attitude of consumers, his level of learning, knowledge, perceptions, personality, his
motivation of buying a particular product or service. It helps to understand psychology of different
types of consumers based on their age, sex, income level, education, their rural or urban buyace. For
instance a person living in Mumbai or Delhi thinks differently than person living in remote rural area
of Orissa, Bihar, Jharkhand, or Chatisgarh, their psychology is different, their thinking about product
and services are different and their needs and perceptions are different than urban elite. The study of
their psychology helps marketer to segment the market and produce goods according to their
requirement rather than thrusting same product on all. For instance psychology, of rural population of
older generation is to wear only dhoti, they will not buy trousers whatever efforts are made. Similarly
large percentage of them does not wear shoes or chappals.
Similarly they do not use toothpaste for cleaning their teeth. Many of them do not clean their teeth at
all while others depend largely on Neem or Babul stick (datun) for cleaning teeth and some use tooth
powder Why they have thinking and practice as they have can be understood only by studying their
psychology and there after draw a sales promotion or marketing strategy accordingly. If this is not
done marketing efforts will go waste and will not give results expected from advertisement and other
sales promotion efforts
The study of consumer psychology will make us to understand "how do we make the market place
work better so that consumers can make better decisions about what to buy" If for social purpose of
India has to reduce consumption of liquor one has to find out through research why people drink When
in our country number of states prohibited drinking from time to time it was utter failure because

20
prohibition was imposed without studying the psychology of drinkers. However, in case of cigarettes
when it was told that smoking is injurious to health and can cause cancer, it had some impact and the
absolute consumption of cigarettes has started declining. If prohibition was implemented after studying
how often and what problems are faced by discontinuing drinking alcohol and what have been their
responses to their problems and their solutions might have been found, the result would have been
more encouraging.
Children arc psychologically vulnerable to specific advertisements but before making such
advertisements, their psychology will have to be studied first to market products and service needed by
them and secondly by the state to protect them against misuse of their psychology. Keeping the
vulnerability of children they are prohibited under the Factories Act to work in night hours In order to
protect them against the use of smoking and drinking sale of some of these products is prohibited to
minors
The psychology is formed through combination of region, religion, sex, education, culture, social
structure, beliefs, faiths etc. The study of psychology of consumers has become most important part of
study of consumer behavior and at one go one even study the needs, perceptions of consumers
Therefore it is most important tool for researcher and if one does not have resources to go in depth
research, study of consumer psychology can help to a great extent in arriving at fairly accurate
conclusions about marketing strategy For example the, psychology of rural masses in India is to like
bright colors specially red, black and yellow Therefore one will have to supply fabrics of these colors
and use labels of these colors on their products In rural India psychology is to like strong tea, hence in
these areas strong tea will have to be marketed
But at the same time psychology is to try a product which is advertised because TV has reached to
every corner of the country in remote villages too It seems that villagers are as much concerned for
commercials as urban dwellers Therefore in Northern India many milk vendors have purchased motor
bike for vending milk Farmers have adopted tractors for cultivation but as yet by and large they have
not adopted to life insurance Why not is a psychological question to be studied by researchers and
insurance marketers
2. Psychographics
Psychographics is another discipline which has to be used for study of consumer behavior
Psychographics research-studies life style of consumers to find out market for certain products like
items of personal health care, cosmetics, items of family consumption like TV, car, drawing room
furniture In psychographics research consumers are requested to tell their and their household reaction
about a particular product or service Since there is full separate chapter on the subject, the matter is
discussed very briefly below The psychographics research studies the life style of an individual or
family to find out how he spreads his time in working, recreation, games, vacations It also studies the
preferences of individual or household, his priorities and preferences on food, home, fashion, outing,
recreation, games and his opinions regarding various economic, social, political, cultural, educational
and other issues
In order to arrive conclusions through psychographics research individuals are asked their reactions
and questions are put to them and their family members They are given statements which they are
asked to evaluate as strongly agree, strongly disagree, agree, don't agree They may also be asked
degree of importance about a product or service like very important, unimportant, important, product
Specific questions are also asked whether he likes a product or service or not Sometimes opinion are
sought on political and social issues like whether after Tehelka revelation this government should
continue or not Opinions are also asked to find out which party they would like to vote which is the
basis of opinion poll and projection of election results
3. Physiological Factors
Physiological factors relate to the service of the properties and functions of living of being in normal
conditions Thus a physiologist studies the state of human being in its various phases like babies, child,
adults and elderly people, men and women There are special needs of pregnant women for
nourishment and after birth for self and newly born There are also handicap persons with deficiency in
hearing, eyesight, hands, legs, rib or other part of bodies The requirement of human being at different
stages of life and in different conditions have great impact on consumer behavior Therefore, they have
to be researched separately The requirement of small babies for body and health care are different than
for adults Therefore some companies like, Johnson have introduced baby soap, baby powder, baby oil
There are also many companies who are producing baby food though doctors advocate breast feeding
The manufacturers have produced many products for this class of population There are also separate
medical practitioners for them who specialize in treatment of tender children

21
There are special products for handicapped like hearing aids for persons hard of hearing spectacles for
persons with weak eyesight Special aids for persons with handicapped legs or hands are made to meet
their requirements to help them to live less handicapped life
School going children require different products like school bags, school dress, books, note books,
pencils, socks and lot of other products This is separate segment of consumer, one has to study their
numbers and their consumption needs which again have to be divided according to age group and
market has to be developed and products have to be produced
The consumption requirement of adults differ widely from babies and school going children,
depending upon nature of their occupation, physical development, social status, consumer researcher
has to study this segment of the population separately to assess their needs and accordingly produce
goods and services Further, each class has to be again subdivided into various segments depending
upon their culture, level of income etc In countries like India where there are vast differences in
culture, income status, habits etc the number of sub-segment will be larger than in Europe. USA,
Canada, Japan or Australia
Then there are elderly persons who have special demand They have to be protected from danger of
adverse age They have to be protected from themselves and from predations according to various
studies in USA by Wodell, Phillips and Stermithal, Schiffman and many more The findings are that
they use lesser information, spend more time watching television, have decreased perpetual dis-
crimination and are likely to complain less about consumer problem However so far in India very little
research has been conducted by marketers or others on physiological aspects of consumer behavior In
developed countries special attention is paid to protect children, elderly and women consumers but in
India as yet there is no such separate legislation expect in case of labor laws for child and women labor
and in income tax, railway tickets for senior citizens They are being given concession in income tax
and railway fare
4. Demography
Demography "refers to the vital and measurable statistics of a population" It relates to total population
of a country, state, region, town or villages The distribution of population is done by age group, sex,
mental status, education, level of income, occupation Most of the countries collect information in their
census In India census is conducted every ten years, the latest of which relates to information as on 1st
March 2001 Indian census has collected information on all above aspects, the full data of which will be
available after quite sometime. The data is available on all aspects upto village level. It is an important,
very useful, effective and cheap source to get information from published records and from the office
of Census Commission. So far it is known that Indian population on 1st March 2001 was 102.7 crores
which is over 16% of world population. This was 181 million more than population of March 1991.
But the rate of growth declined by 2.5%. It is possible to project macro demand from this data. The
structure data of population is also available according to which size of market in various states can be
gauged and strategy for marketing can be made.
The sex ratio is in favor of males i.e. there are 933 females for every 1000 males, which is some
improvement over last one decade. With long series of data one can project long-term male female
ratio and can estimate demand and consumption of various products for males and females. As this
data is available not only statewise but also town and village wise it is possible to segment the
population according to sex at every level not only to estimate the demand but also to formulate
marketing strategy.
In consumer behavior the literacy and level of education plays an important role; it is very useful for
consumer researchers. This information is also available upto village level. During last decade the
percentage of literate population has increased and for the first time since independence the absolute
number of illiterates have shown a significant decline. This information is available age group wise at
the lowest level and is an important tool for consumer researcher to find out demand of products by
different segments of literate population. The data is also available about the level of education below
high school, higher secondary, graduate, post graduate, technical etc. All this is very important data for
consumer behavior study and research. The one who is interested to undertake research must consult
all this data. The demographic information is also available on marital status, level of income, housing,
occupation.
5. Geographic Segmentation
In a big country like India, China, USA etc. the location is very important factor in determining the
consumption. In countries like India or USA where climate differs widely from location to location this
factor becomes extremely important in deciding the consumer needs, motivation and behavior. For
instance, in India there are hilly areas of Jammu and Kashmir, Himachal Pradesh, North Eastern States,

22
and Ladakh where temperature is much lower than states of Southern India like Kerala, Karnataka,
Tamil Nadu and Andhra Pradesh. While in northern states heavy woolens are needed in winter and
light woolens in rest part of the year in Southern states only light cotton clothes are needed through out
the year. There are areas of very heavy rains in places like Cheerapunji, the highest in the world and
very low rain in desert of Rajasthan. These climatic changes have made big regional differences in
consumption pattern. The vegetation crops also depend upon climate and so eating habits also differ. In
states like West Bengal, Orissa and Southern states where rice is major crop, population is basically
rice eater as against Northern States of Punjab, Haryana, Rajasthan, Madhya Pradesh, Uttar Pradesh
where wheat is main item of staple food. In states like Gujrat, Maharastra and Rajasthan where
groundnut is produced in substantial quantity the main oil used is groundnut oil. In Kerala, Tamil Nadu
and Karnataka and Andhra Pradesh where coconuts are produced in plenty coconut oil is main media
of cooking. In U.P, Punjab, Haryana and West Bengal mustard oil is preferred because of availability.
The differences in consumption are not only due to climate but also due to wide differences in
languages. Though as per Article 343 of Indian constitution the official language of India is Hindi in
Devnagari Script. But besides Hindi and English there are other 17 languages in Eighth Schedule that
are spoken in one or more states. Besides official languages there are local dialect. All these language
differences have impact on producers and advertisers. For instance the market of books has been
restricted according to the language used in schools, colleges, government offices and courts. Because
of language books of Bengali or Marathi or other language has market in the state where that language
is spoken and the behavior of consumers is not uniform for many things and this aspect has to be kept
in mind by marketers. The advertisement and labeling of packing has to be adjusted according to the
language of the region. The selection of words also require great care because sometimes the word in
one language has quite different meaning in the other language and in case of certain words the
meaning is so different that it can create disaster, this has happened in many cases and because of use
of wrong word from one language it is quite different sometime offensive in an other language. As a
result one can loose the entire market
6. Culture
The culture of different regions is different Bengali culture is quite different than that of Punjabi or
South Indian culture. There are difference not only in speech but also in dress, fashions, thinking,
expectations and behavior based on the region Many Bengali wear dhotis, on the festival of Durga,
Kali or Saraswati and the ladies prefer to wear cotton sarees and are conservative in their attitude
towards their daughters. The liking of music is also much different than in South or North. The festival
of Kerala, Tamil Nadu and other states are not same, nor their food preferences are similar Because of
language differences films are required to be produced and exhibited in local language. The taste of
people also differ widely from region to region Punjabis like gaudy, bright color clothes, milk and
lassi, maize bread and sarso ka sag and paratha South prefers tea and coffee, idli, dosa and bara.
Actually in India there are so many cultures, habits, preferences that without indepth study of them one
cannot optimize sales Therefore indepth study of regional differences is essential for research of
consumer behavior, within the state also a many times it is required to describe upon differences in
their behaviors
7. Religion
In a country of the size of India with different religions behavior differs according to his faith and
religion In India major religions are Hindus, Muslims, Christians, Sikhs, Buddhists and Jains besides
sub religions in many castes If Hindus do not eat cows meat Muslims do not eat pig meat. Mostly the
male Sikhs wear turban but it is not compulsory in any other religion In Jainism non vegetarian food is
strictly prohibited but Christians and Muslims have no inhibition In Hindus there are both veg and non-
veg population. Jains especially elderly people do not eat many vegetables specially those produced
underground. The dress for worship and articles used for worship have been prescribed in Jainism and
Hinduism, but Christians and Sikhs have not prescribed dresses for worship, but in most of the
religions head should be covered while worshiping by turban, dhoti, cap or handkerchief, dupatta.
Worship on festival occasions also have difference at the time of festival affecting consumption and
creating demand of certain products in festival times. For example during certain festivals demand of
fruits and vegetables goes up because during this period many devotees do not take food grains.
Similarly at the time of most festivals demand of sweets go up All these factors have impact on
consumer behavior and so on the demand of various products
8. Sociology
Social classes in India are based on two different criteria and there are two types of social class. First
based on level of income and the other on castes, religion and region etc
In India on the basis of income there are four classes First below the poverty line (BPL) who are not
able to consume minimum requirement and therefore they are not able to buy most of the things

23
Second is low income group who are above the poverty line but are able to meet their minimum needs
Third is middle income group who besides basic needs can also consume certain other products like
television, coolers, refrigerators and ordinary furniture The last one is high income group In this group
there is further division of very high income group who account for nearly ten percent of country's
population and are able to consume anything they want The company who produces or provides
services must understand their needs, aspirations and expectations and should segment the market.
The second social class is based on community, castes, religion etc These groupings are not only in
places of their origin but also in places where they move A South Indian or Bengali in metropolitan
cities of Kolkatta, Delhi or Mumbai like to consume some food items for which they are accustomed
Even when they go abroad and become NRI they want food of their liking As a result there are exports
of Gujarati, Punjabi and South Indian food products to places of their concentration abroad The food
habits die very rarely and therefore these classes will have to be catered wherever they settle or cluster
Certain classes are also based on community basis and they like certain products or services The food
habits of Sikhs, Muslims, Jains, Hindus are well settled and for this purpose they are social class Not
only food habits but type of garments required differs specially on the occasion of marriages, festivals,
religious functions. Some social classes are also based on rural - urban base People of rural area even
in the same region and of same religion have different demands than their urban brothers Unless these
aspects are studied, the research on consumer behavior is incomplete and one cannot take full
advantage of market
9. Economics
Before the modern concept of consumer behavior was developed by marketer it was part of economics
Principle demand / price theory is based on consumer behavior that is as more quantity will be offered
the price will come down, the utility of additional unit will be less than the previous one and therefore
rate of increase in demand will fall with the satisfaction of demand The economic theory further states
that with the fall in price, demand should rise and with rise in prices demand should fall However,
marketer feels that with change in consumer behavior this is not always true If a product is for show,
prestige many people will buy high priced goods If a product is cheap it is considered to be of poor
quality and may not be in demand Even in country like India the demand of motor bikes which are
double the price of scooters, is rising faster than that of scooters because of change in consumer
preferences
According to economic theory with the rise in income the quantity demanded should go up but
marketers may change the preferences in favor of higher priced items and overall demand may not go
up. The consumer behavior studies by altering the consumer preferences can modify economic theories
but basic principles of economics of want, demand, prices, supplies, will have to be studied by a
marketer because it has important bearing on consumer behavior and thus they are inter dependent
upon each other. As economics has great bearing on consumer attitude, behavior, perceptions study of
economics is a must for researcher of consumer behavior.
10. Statistics / Econometrics
In order to study consumer behavior in various facets use of statistics and econometrics for drawing a
sample, carrying out surveys, processing the data and its interpretation. High-level statistics and
econometrics is required to be used for arriving at conclusions, making models for projections etc.
Thus for study of consumer behavior one is required to use many services which have to be
interdependent to arrive at any meaningful conclusions. If they are studied in isolation from each other
one may arrive at misleading conclusions. It is because human behavior is not independent, it is hybrid
of various factors described above and therefore all services are equally important and essential for the
study. Thus they are interdependent and the real research requires a team with knowledge of all facets
of life.

24
CONSUMER DECISION MAKING
What Is a Decision?
Every day, each of us makes numerous decisions concerning every aspect of our daily lives. However,
we generally make these decisions without stopping to think about how we make them and what is
involved in the particular decision-making process itself. In the most general terms, a decision is the
selection of an option from two or more alternative choices. In other words, for a person to make a
decision, a choice of alternatives must be available. When a person has a choice between making a
purchase and not making a purchase, a choice between brand X and brand Y, or a choice of spending
time doing A or B, that person is in a position to make a decision. On the other hand, if the consumer
has no alternatives from which to choose and is literally forced to make a particular purchase or take a
particular action (e.g., use a prescribed medication), then this single "no-choice" instance does not
constitute a decision; such a no-choice decision is commonly referred to-as a "Hobson's choice."
In actuality, no-choice purchase or consumption situations are fairly rare. For consumers, freedom
often is expressed in terms of a wide range of product choices. Thus, if there is almost always a choice,
then there is almost always an opportunity for consumers to make decisions. Moreover, experimental
research reveals that providing consumers with a choice when there was originally none can be a very
good business strategy, one that can substantially increase sales. For instance, when a direct-mail
electrical appliance catalog displayed two coffeemakers instead of just one (the original coffeemaker at
$149 and a "new" only slightly larger one at $229), the addition of the second comparison coffeemaker
seemed to stimulate consumer evaluation that significantly increased the sales of the original
coffeemaker.
Types of Purchase or Consumption Decisions
DECISION CATEGORY ALTERNATIVE A ALTERNATIVE B
Basic Purchase or Consumption
Decision
 To purchase or consume a
product (or service)
♦ Not to purchase or consume a
product (or service)
Brand Purchase or Consumption
Decision
specific brand
 To purchase or consume one's
usual brand
basic model
new brand
standard quantity
 To purchase or consume an
on-sale brand
national brand
♦ To purchase or consume
another brand
♦ To purchase or consume
another established brand
(possibly with special
features)
♦ To purchase or consume a
luxury or status model
♦ To purchase or consume one's
usual brand or some other
established brand
♦ To purchase or consume more
or less than a standard
quantity
♦ To purchase or consume a
non-sale brand To purchase
or consume a store brand
Channel Purchase Decisions  To purchase from a specific
type of store (e.g., a
department store)
 To purchase from one's usual
store
 To purchase in-home (by
phone or catalog or Internet)
 To purchase from a local
store
♦ To purchase from some other
type of store (e.g., a discount
store)
♦ To purchase from some other
store
♦ To purchase in-store
merchandise
♦ To purchase from a store
requiring some travel (out-
shopping)
Payment Purchase Decisions  To pay for the purchase with
cash
 To pay the bill in full when it
arrives
♦ To pay for the purchase with
a credit card
♦ To pay for the purchase in
installments

25
Although not exhaustive, this list does serve to demonstrate that the scope of consumer decision-
making is far broader than the mere selection of one brand from a number of brands.
Levels of Consumer Decision Making
Not all consumer decision-making situations receive (or require) the same degree of information
search. If all purchase decisions required extensive effort, then consumer decision-making would be an
exhausting process that left little time for anything else. On the other hand, if all purchases were
routine, then they would tend to be monotonous and would provide little pleasure or novelty. On a
continuum of effort ranging from very high to very low, we can distinguish three specific levels of
consumer decision-making:
a. Extensive Problem Solving
When consumers have no established criteria for evaluating a product category or specific brands in
that category or have not narrowed the number of brands they will consider to a small, manageable
subset, their decision-making efforts can be classified as extensive problem solving. At this level,
the consumer needs a great deal of information to establish a set of criteria on which to judge
specific brands and a correspondingly large amount of information concerning each of the brands to
be considered.
b. Limited Problem Solving
At this level of problem solving, consumers already have established the basic criteria for evaluating
the product category and the various brands in the category. However, they have not fully
established preferences concerning a select group of brands. Their search for additional information
is more like "fine-tuning"; they must gather additional brand information to discriminate among the
various brands.
c. Routinized Response Behavior
At this level, consumers have experience with the product category and a well-established set of
criteria with which to evaluate the brands they are considering. In some situations, they may search
for a small amount of additional information; in others, they simply review what they already know.
Just how extensive a consumer's problem-solving task is depends on how well established his or her
criteria for selection are, how much information he or she has about each brand being considered, and
how narrow the set of brands is from which the choice will be made. Clearly, extensive problem
solving implies that the consumer must seek more information to make a choice, whereas routinized
response behavior implies little need for additional information.
All decisions in our lives cannot be complex and require extensive search and consideration—we just
cannot exert the level of effort required. Some decisions have to be "easy ones."
Models of Consumers
There are several schools of thought that depict consumer decision-making in distinctly different ways.
The term models of consumers, refers to a general view or perspective as to how (and why) individuals
behave as they do. We will examine models of consumers in terms of the following four views
1. An Economic View
In the field of theoretical economics, which portrays a world of perfect competition the consumer
has often been characterized as making rational decisions. This model, called the economic man
theory, has been criticized by consumer researchers for a number of reasons. To behave rationally in
the economic sense, a consumer would have to be
a. Aware of all available product alternatives
b. Capable of correctly ranking each alternative in terms of its benefits and disadvantages
c. Able to identify the one best alternative.
Realistically, however, consumers rarely have all of the information or sufficiently accurate
information or even an adequate degree of involvement or motivation to make the so-called
"perfect" decision.
It has been argued that the classical economic model of an all-rational consumer is unrealistic for
the following reasons:
(a) People are limited by their existing skills, habits, and reflexes
(b) People are limited by their existing values and goals
(c) People are limited by the extent of their knowledge.

26
Consumers operate in an imperfect world in which they do not maximize their decisions in terms of
economic considerations, such as price-quantity relationships, marginal utility, or indifference
curves. Indeed, the consumer generally is unwilling to engage in extensive decision-making
activities and will settle, instead, for a "satisfactory" decision, one that is "good enough." For this
reason, the economic model is often rejected as too idealistic and simplistic. As an example, recent
research has found that consumers' primary motivation for price haggling, which was long thought
to be the desire to obtain a better price (i.e., better dollar value for the purchase), may instead be
related to the need for achievement, affiliation, and dominance.
2. A Passive View
Quite opposite to the rational economic view of consumers is the passive view that depicts the
consumer as basically submissive to the self-serving interests and promotional efforts of marketers.
In the passive view, consumers are perceived as impulsive and irrational purchasers, ready to yield
to the aims and into the arms of marketers. At least to some degree, the hard-driving super-sales
people subscribed to the passive model of the consumer of old, who were trained to regard the
consumer as an object to be manipulated.
The principal limitation of the passive model is that it fails to recognize that the consumer plays an
equal, if not dominant, role in many buying situations - sometimes by seeking information about
product alternatives and selecting the product that appears to offer the greatest satisfaction and at
other times by impulsively selecting a product that satisfies the mood or emotion of the moment.
Therefore, this simple and single-minded view should also be rejected as unrealistic.
3. A Cognitive View
The third model portrays the consumer as a thinking problem solver. Within this framework,
consumers frequently are pictured as either receptive to or actively searching for products and
services that fulfill their needs and enrich their lives. The cognitive model focuses on the processes
by which consumers seek and evaluate information about selected brands and retail outlets.
Within the context of the cognitive model, consumers are viewed as information processors.
Information processing, leads to the formation of preferences and ultimately, to purchase intentions.
The cognitive view also recognizes that the consumer is unlikely to even attempt to obtain all
available information about every choice. Instead, consumers are likely to cease their information-
seeking efforts when they perceive that they have sufficient information about some of the
alternatives to make a "satisfactory" decision. As this information-processing viewpoint suggests,
consumers often develop shortcut decision rules (called heuristics) to facilitate their decision-
making process. They also use decision rules to cope with exposure to too much information (i.e.,
information overload).
The cognitive, or problem-solving, view describes a consumer who falls somewhere between the
extremes of the economic and passive views, who does not (or cannot) have total knowledge about
available product alternatives and, therefore, cannot make perfect decisions, but who nonetheless
actively seeks information and attempts to make satisfactory decisions.
Consistent with the problem-solving view is the notion that a great deal of consumer behavior is
goal directed. For example, a consumer might purchase a computer in order to manage finances or
look for a laundry detergent that will be gentle on fabrics. Goal setting is especially important when
it comes to the adoption of new products because the greater the degree of "newness," the more
difficult it would be for the consumer to evaluate the product and relate it to his or her need
(because of a lack of experience with the product). The following figure illustrates goal setting and
goal pursuit in consumer behavior.

27
Goal Setting and Goal Pursuit in Consumer Behavior
d. An Emotional View
Although long aware of the emotional or impulsive model of consumer decision making, marketers
frequently prefer to think of consumers in terms of either economic or passive models. In reality,
however, each of us is likely to associate deep feelings or emotions, such as joy, fear, love, hope,
sexuality, fantasy, and even a little "magic," with certain purchases or possessions. These feelings or
emotions are likely to be highly involving. For instance, a person who misplaces a favorite fountain
pen might go to great lengths to look for it, despite the fact that he or she has six others at hand.
Possessions also may serve to preserve a sense of the past and act as familiar transitional objects
when one is confronted with an uncertain future. For example, members of the armed forces
invariably carry photographs of "the girl (or guy) back home," their families, and their lives in
earlier times. These memorabilia frequently serve as hopeful reminders that normal activities will
someday resume.
If we were to reflect on the nature of our recent purchases, we might be surprised to realize just how
impulsive some of them were. Rather than carefully searching, deliberating, and evaluating
alternatives before buying, we are just as likely to have made many of these purchases on impulse,
on a whim, or because we were emotionally driven.
When a consumer makes what is basically an emotional purchase decision, less emphasis is placed
on the search for pre-purchase information. Instead, more emphasis is placed on current mood and
feelings ("Go for it!"). This is not to say that emotional decisions are not rational - buying products
that afford emotional satisfaction is a perfectly rational consumer decision. Some emotional
decisions are expressions that "you deserve it" or "treat yourself". For instance, many consumers
Feedback reactions
"How do I feel about
achieving/not achieving my
goal?"
Goal
setting
Formation
of a goal
intention
Action
planning
Action
initiation
and control
Goal
attainment
or failure
"What are
the goals I
can pursue,
and why do
I want to
pursue
them?"
"To what
degree
have I
achieved/
failed to
achieve my
goal?"
'What is it
for which I
strive?"
"How can I
achieve my
goal?"
"When,
where,
how, and
how long
should I
act?"
"How well
have f
enacted my
plans?"
"Can I
making
progress
toward my
goal?"
"Are there
adjustments
that need to
be made?" Is
the goal still
important to
me?"

Consumer Behavior Notes TYBMM-V

Consumer Behavior Notes TYBMM-V

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Consumer Behavior Notes TYBMM-V

Similar a Consumer Behavior Notes TYBMM-V (20)

Último

Último (20)

Consumer Behavior Notes TYBMM-V