BUYER BEHAVIOUR AND CONSUMERISM

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BUYER BEHAVIOUR ANDCONSUMERISM
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CONSUMER BEHAVIOUR

• Consumer behaviour is the study of how people
  buy, what they buy, when they buy and why they
  buy. It is a subcategory of marketing that blends
  elements from psychology, sociology,
  sociopsychology, anthropology and economics. It
  attempts to understand the buyer decision making
  process, both individually and in groups. It
  studies characteristics of individual consumers
  such as demographics, psychographics, and
  behavioural variables in an attempt to understand
  people's wants. It also tries to assess
  influences on the consumer from groups such as
  family, friends, reference groups, and society in
  general.
• Consumer behaviour is the behaviour that
  consumers display in searching for, purchasing,
  using, evaluating and disposing of products and
  services that they expect will satisfy their
  needs. Consumer behaviour focus on how
  individuals make decisions to spend their
  available resources ( time, money, effort) on
  consumption related items.

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CONSUMER BEHAVIOUR

• We will have an in-depth analysis of the factors
  that influence consumer buying behaviour such as
• A) PSYCHOLOGICAL FACTORS
• Motivation
• Personality
• Perception
• Learning
• Attitude
• B) SOCIO-CULTURAL FACTORS
• Family
• Informal sources
• Other non commercial sources
• Social class
• Culture and subculture
• Reference groups
• C) MARKETING MIX FACTORS
• D)ENVIRONMENTAL FACTORS

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CONSUMER MOTIVATION

• Motivation is the driving force within
  individuals that impels them to action.
• This driving force is produced by a state of
  tension, which exists as the result of an
  unfulfilled need.
• Individuals strive both consciously and
  subconsciously to reduce this tension through
  behaviour that they anticipate will fulfil their
  need and thus relieve them of the stress they
  feel.
• The specific goals they select and the patterns
  of action they undertake to achieve their goals
  are the result of individual thinking and
  learning.

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Think of the following

• What makes you go to a restaurant?
• What makes you go to your GP?
• What makes you purchase a car?
• What makes you purchase a mobile phone?
• What makes you purchase an umbrella?
• What makes you go to school?
• Why do you go to the saloon?
• Why do you quit smoking?
• Why do you go to the gym?
• Why do you buy a TV set?
• Why do you go to Church?
• The above issues arise as a result of motivation
  which could be because of the following
• Hunger
• Sickness and urgent medical attention
• The need to travel to work
• The need to communicate
• To protect yourself during rainfall
• To be educated and to get a job in future.

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• Motivation is a state of need-induced tension
  that drives the individual to engage in
  behaviour that he or she believes will satisfy
  the need and thus reduce the tension.
• Whether gratification is actually achieved
  depends on the course of action pursued.
• The specific goals that consumers wish to achieve
  and the courses of action they take to attain
  these goals are selected on the basis of their
  thinking processes ( cognition) and previous
  learning.
• Therefore, marketers must view motivation as the
  force that induces consumption and, through
  consumption experiences, the process of consumer
  learning.

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NEEDS

• Every individuals has needs some are innate,
  others are acquired. Innate needs are
  physiological (i.e. biogenic) they include the
  needs of food, water, air, clothing, shelter.
• Because they are needed to sustain biological
  life, the biogenic needs are considered primary
  needs or motives.
• Acquired needs are the needs that we learn in
  response to our culture or environment. These may
  include needs for self-esteem, prestige,
  affection, power and learning.

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• Because acquired needs are generally
  psychological (i.e. psychogenic), they are
  considered secondary needs or motives.
• They result from the individuals subjective
  psychological state and from relationships with
  others. For example, all individuals need shelter
  from the elements thus, finding a place to live
  fulfils an important primary need for a newly
  transferred executive.
• However, the kind of home she rents or buys may
  be the result of secondary needs. She may seek a
  place in which she and her husband can entertain
  large groups of people ( and fulfil social
  needs) she may want to live in an exclusive
  community to impress her friends and family ( and
  fulfil ego needs).
• The place where an individual ultimately chooses
  to live thus may serve to fulfil both primary and
  secondary needs.

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GOALS

• Goals are aims that is something that somebody
  wants to achieve.
• There are two types of goals we will examine the
  generic goals and the product specific goals.
• Generic goals are the general classes or
  categories of goals that consumers see as a way
  to fulfill their needs. If a person tells his
  parents that he wants to get a graduate degree,
  he stated a generic goal. If he wants to get an
  M.B.A. degree in marketing from Oxford
  University, he has expressed a product-specific
  goal. Marketers are particularly concerned with
  product-specific goals, that is, the specifically
  branded products and services that consumers
  select for goal fulfillment.

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The selection of Goals

• For any given need, there are many different and
  appropriate goals.
• The goals selected by individuals depend on their
  personal experiences, physical capacity,
  prevailing cultural norms and values, and the
  goals accessibility in the physical and social
  environment.
• The goal object has to be both socially
  acceptable and physically accessible.
• An individuals own perception of himself or
  herself also serves to influence the specific
  goals selected.

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Interdependence of Needs and Goals

• Needs and Goals are interdependent neither exist
  without the other. However, people are often not
  as aware of their needs as they are of their
  goals. For example, a teenager may not
  consciously be aware of his social needs but may
  join a photography club to meet new friends.
• A local politician may not consciously be aware
  of a power need but may regularly run for public
  office.
• A college student may not consciously recognise
  her need for achievement but may strive to attain
  a straight A grade point average.

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• Individuals are usually somewhat more aware of
  their physiological needs than they are of their
  psychological needs.
• Most people know when they are hungry, thirsty,
  or cold, and they take appropriate steps to
  satisfy these needs. The same people may not
  consciously be aware of their needs for
  acceptance, self-esteem, or status. They may,
  however, subconsciously engage in behaviour that
  satisfies their psychological ( acquired ) needs.

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POSITIVE AND NEGATIVE MOTIVATION

• Motivation can be positive or negative in
  direction.
• We may feel a driving force toward some object or
  condition or a driving force away from some
  object or condition. For example, a person may be
  impelled toward a restaurant to fulfil a hunger
  need, and away from motorcycle transportation to
  fulfil a safety need.
• Some psychologists refer to positive drives as
  needs, wants, or desires and to negative drives
  as fears or aversions.

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• However, although positive and negative
  motivational forces seem to differ dramatically
  in terms of physical ( and sometimes emotional)
  activity, they are basically similar in that both
  serve to initiate and sustain human behaviour.
  For this reason, researchers often refer to both
  kinds of drives or motives as needs, wants, and
  drives.
• Some theorists distinguish wants from needs by
  defining wants as product-specific needs.
• Others differentiate between desires, on the one
  hand, and needs and wants on the other.
• Thus, there is no uniformly accepted distinction
  among needs, wants and desires.

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• Needs, wants, or desires may create goals that
  can be positive or negative.
• A positive goal is one toward which behaviour is
  directed thus, it is often referred to as an
  approach object.
• Negative goal is one from which behaviour is
  directed away and is referred to as an avoidance
  object.
• Because both approach and avoidance goals are the
  results of motivated behaviour, most researchers
  refer to both simply as goals.
• Consider this example A middle-aged woman may
  have a positive goal of fitness and joints a
  health club to work out regularly.
• Her husband may view getting fat as a negative
  goal, and so he starts exercising as well.

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• In the former case, the wifes actions are
  designed to achieve the positive goal of health
  and fitness in the latter case, her husbands
  actions are designed to avoid negative goal--- a
  flabby physique.
• Sometimes people become motivationally aroused by
  a threat to or elimination of a behavioural
  freedom, such as the freedom to make a product
  choice. This motivational state is called
  psychological reactance.

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• A classic example occurred in 1985 when the
  Coca-Cola Company changed its traditional formula
  and introduced New Coke. Many people reacted
  negatively to the notion that their freedom to
  choose had been taken away, and they refuse to
  buy New Coke. Company management responded to
  this unexpected psychological reaction by
  reintroducing the original formula as Classic
  Coke and gradually developing additional versions
  of Coke.

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RATIONAL VERSUS EMOTIONAL MOTIVES

• Some consumer behaviourists distinguish between
  so-called rational motives and emotional motives.
• They use the term rationality in the traditional
  economic sense, which assumes that consumers
  behave rationally by carefully considering all
  alternatives and choosing those that give them
  the greatest utility.
• In a marketing context, the term rationality
  implies that consumers select goals based on
  totally objective criteria, such as size, weight,
  price, or miles per gallon. Emotional motives
  imply the selection of goals according to
  personal or subjective criteria (e.g. pride,
  fear, affection, or status).

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• The assumption underlying this distinction is
  that subjective or emotional criteria do not
  maximize utility or satisfaction. However, it is
  reasonable to assume that consumers always
  attempt to select alternatives that, in their
  view, serve to maximize their satisfaction.
• Obviously, the assessment of satisfaction is a
  very personal process, based on the individuals
  own need structure, as well as on past
  behavioural and social ( or learned )
  experiences. What may appear irrational to an
  outside observer may be perfectly rational in the
  context of the consumers own psychological
  field. For example, a person who pursues
  extensive plastic facial surgery in order

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• to appear younger is using significant economic
  resources, such as the surgical fees, time lost
  in recovery, inconvenience, and the risk that
  something may go wrong.
• To that person, the pursuit of the goal of
  looking younger and utilization of the resources
  involved are perfectly rational choices. However,
  to many other persons within the same culture who
  are less concerned with aging, and certainly to
  persons from other cultures that are not as
  preoccupied with personal appearance as
  Westerners are, these choices appear completely
  irrational.

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• Consumer researchers who subscribe to the
  positive research perspective tend to view all
  consumer behaviour as rationally motivated, and
  they try to isolate the causes of such behaviour
  so that they can predict and, thus, influence
  future behaviour.
• Experimentalists are often interested in studying
  the hedonistic pleasures that certain consumption
  behaviours provide, such as fun, or fantasy, or
  sensuality. They study display in various unique
  circumstances.

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THE DYNAMICS OF MOTIVATION

• Motivation is a highly dynamic construct that is
  constantly changing in reaction to life
  experiences.
• Needs and goals change and grow in response to an
  individuals physical conditions, environment,
  interactions with others, and experiences. As
  individuals attain their goals, they develop new
  ones. If they do not attain their goals, they
  continue to strive for old goals or they develop
  substitute goals. Some of the reasons why
  need-driven human activity never ceases include
  the following (1) Many needs are never fully
  satisfied they continually impel actions
  designed to attain or maintain satisfactions. (2)
  As needs become satisfied, new and higher-order
  needs emerge that cause tension and induce
  activity. (3) People who achieve their goals set
  new and higher goals for themselves.

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• THE DYNAMICS OF MOTIVATION
• NEEDS ARE NEVER FULLY SATISFIED
• NEW NEEDS EMERGE AS OLD NEEDS ARE SATISFIED.
• SUCCESS AND FAILURE INFLUENCE GOALS
• SUBSTITUE GOALS
• FRUSTRATION failure to achieve a goal often
  results in feelings of frustration. The barrier
  that prevents attainment of a goal may be
  personal to the individual ( e.g. limited
  physical or financial resources) or an obstacle
  in the physical or social environment (e.g. a
  storm that causes the postponement of a
  long-awaited vacation). Regardless of the cause,
  individuals react differently to frustrating
  situations. Some people manage to cope by finding
  their way around the obstacle or, if that fails,
  by selecting a substitute goal. Others are less
  adaptive and may regard their inability to
  achieve a goal as a personal failure. Such people
  are likely to adopt a defence mechanism to
  protect their egos from feelings of inadequacy.

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• MULTIPLICITY OF NEEDS
• Needs and goals vary among individuals.
• AROUSAL OF MOTIVES ( What stimulates customers?)

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• Physiological Arousal
• Bodily needs at any specific moment in time are
  based
• on the individuals physiological conditions at
• moment. A drop in blood sugar level or stomach
• contractions will trigger awareness of a hunger
  need.
• A decrease in body temperature will induce
  shivering,
• which makes the individual aware of the need for
• warmth. Most of these physiological cues are
• involuntary however, they arouse related needs
  that
• cause uncomfortable tensions until they are
  satisfied.
• For example, a person who is cold may turn up the
• heat in his bedroom and also make a mental note
  to
• buy a warm cardigan sweater to wear around the
• house.

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• Emotional Arousal
• Sometimes daydreaming results in the arousal or
  Stimulation of latent needs.
• People who are bored or who are frustrated in
  trying to achieve their goals often
• engage in day dreaming (autistic thinking), in
  which they image themselves in
• all sorts of desirable situations. These thoughts
  tend to arouse dormant needs,
• which may produce uncomfortable tensions that
  drive them into goal oriented
• behaviour. A young man who dreams of being a
  famous novelist may enrol in a
• writing workshop.

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• Cognitive Arousal Sometimes random thoughts can
  lead to a cognitive
• awareness of needs. An advertisement that
  provides reminders of home might
• trigger instant yearning to speak with ones
  parents.
• Environmental Arousal The set of needs an
  individual experiences at a
• particular time are often activated by specific
  cues in the environment. Without these
• cues, the needs might remain dormant. For
  example, the 6oclock news, the sight or
• smell of bakery goods, fast food commercials on
  television, the end of the school day-
• all of these may arouse the need for food. In
  such cases, modification of the
• environment may be necessary to reduce the
  arousal of hunger. A most potent form of
• situational cue is the goal object itself. A
  woman may experience an overwhelming need
• For a new television set when she sees her
  neighbour's new high-definition home
• theatre a man may suddenly experience a need
  for a new car when passing a dealers
• display window. Sometimes an advertisement or
  other environmental cue produces a
• psychological imbalance in the viewers mind. For
  example, a young college student
• who constantly uses his cell phone may see a new,
  slick looking cell phone model with
• more features displayed in a store window. The
  exposure may make him unhappy with
• his old cell phone and cause him to experience
  tension that will be reduced
• only when he buys himself the new cell phone
  model.

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• When people live in a complex and highly varied
  environment, they
• experience many Opportunities for need arousal.
  Conversely, when their
• environment is poor or deprived, fewer needs are
  activated. This explains why
• television has had such a mixed effect on the
  lives of people in underdeveloped
• countries. It exposes them to various lifestyles
  and expensive products that
• they would not otherwise see, and it awakens
  wants and desires that they have
• Little opportunity or even hope of satisfying.
  Thus while, television enriches
• many lives, it also serves to frustrate people
  with little money or education or
• hope, and may result in the adoption of such
  aggressive defense mechanisms
• as robbery, boycotts, or even revolts.

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• There are two opposing philosophies concerned
  with the arousal of human motives. The
  behaviourist school considers motivation to be a
  mechanism process behaviour is seen as the
  response to a stimulus, and elements of conscious
  thought are ignored. An extreme example of the
  stimulus-response theory of motivation is the
  impulse buyer who reacts largely to external
  stimuli in the buying situation. According to
  this theory, the consumers cognitive control is
  limited he or she does not act but reacts to
  stimuli in the marketplace. The cognitive school
  believes that all behaviour is directed at goal
  achievement. Needs and past experiences are
  reasoned, categorized, and transformed into
  attitudes and beliefs that act as predispositions
  to behaviour. These predispositions are focused
  on helping the individual satisfy needs, and they
  determine the actions that he or she takes to
  achieve this satisfaction.

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Model of the motivation process
Learning
Unfulfilled needs, wants and desires
Drive
Behaviour
Goal or Need fulfilment
Tension
Cognitive processes
Tension reduction
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TYPES AND SYSTEMS OF NEEDSMurrays List of
Psychogenic Needs

• NEEDS ASSOCIATED WITH INANIMATE OBJECTS
• Acquisition
• Conservancy
• Order
• Retention
• Construction

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• NEEDS THAT REFLECT AMBITION, POWER,
• ACCOMPLISHMENT, AND PRESTIGE.
• Superiority
• Achievement
• Recognition
• Exhibition
• Inviolacy (inviolate attitude)unaltered not
  subject to change, damage, or destruction
• 2. kept pure kept pure, untouched, or
  unblemished
• Infavoidance (to avoid shame, failure,
  humiliation,
• ridicule).
• Defendance (defensive attitude)
• Counteraction ( counteractive attitude)

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• NEEDS CONCERNED WITH HUMAN POWER
• Dominance
• Deference postpone to put something off until a
  later time
• Similance ( suggestible attitude)alike sharing
  some qualities, but not exactly identical
• Autonomy
• Contrariance ( to act differently from
  others)somebody disposed to taking opposite
  position somebody who is prone to opposing
  policies, opinions, or accepted wisdom
• SADOMASOCHISTIC NEEDS
• Aggressionattack hostile action, especially a
  physical or military attack, directed against
  another person or country, often without
  provocation
• 2. hostile attitude or behavior threatening
  behavior or actions
• Abasement belittle somebody to make somebody
  feel belittled or degraded (literary)

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• NEEDS CONCERNED WITH AFFECTION BETWEEN PEOPLE
• Affiliation To associate with a group or a
  person, to belong together as one.
• Rejection Not accepting something.
• Nurturance (to nourish, aid, or protect the
  helpless)
• Succorance (to seek aid, protection, or
  sympathy)help for somebody or something help or
  relief for somebody or something
• 2. somebody or something giving help somebody
  or something that provides help or relief
• Play.

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• NEEDS CONCERNED WITH SOCIAL INTERCOUSE (THE NEEDS
  TO ASK AND TELL)
• Cognizance ( inquiring attitude)knowledge
  knowledge or awareness of something (formal)
• 2. somebodys scope of knowledge the extent or
  range of what somebody can know and understand
  (formal)
• Exposition ( expositive attitude) Exhibition,
  display or show.

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HIERARCHY OF NEEDS

• Dr. Abraham Maslow, a clinical psychologist,
  formulated a widely accepted theory of human
  motivation based on the notion of a universal
  hierarchy of human needs. Maslows theory
  identifies five basic needs of human needs, which
  ranked in order of importance from lower-level
  (biogenic) needs to higher level ( psychogenic)
  needs.
• The theory postulates that individuals seek to
  satisfy lower-level needs before higher-level
  needs emerge.
• The lowest level of chronically need that an
  individual experiences serves to motivate his or
  her behaviour.
• When the need is fairly well satisfied, a new (
  and higher) need emerges that the individual is
  motivated to fulfill. When this need is
  satisfied, a new ( and still higher) need
  emerges, and so on. Of course, if a lower-level
  need experiences some renewed deprivation (e.g.
  thirst), it may temporarily become dominant
  again.

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ABRAHAM MASLOWS HIERARCHY OF NEEDS
Self-Actualization (Self-fulfilment)
Ego needs (prestige, status, self-esteem)
Social Needs ( Affection, friendship, belonging
Safety and Security Needs ( Protection, order,
stability)
Physiological Needs (Food, water, air, shelter)
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• PHYSIOLOGICAL NEEDS Basic human needs like food,
  water, clothing, shelter, etc.
• SAFETY AND SECURITY NEEDS This has to do with
  protection, order and stability.
• SOCIAL NEEDS people seek warm and satisfying
  human relationships with other people and are
  motivated by love for their families. Because of
  the importance of social motives in our society,
  advertisers of many product categories emphasize
  this appeal in their advertisements.
• EGO NEEDS
• These are egoistic needs Of the individuals
• which Can take an inward or Outward
• orientation.
• Examples self-Acceptance, Self-esteem,
• Success, independence, and Personal
• satisfaction with a Job well done.
• SELF-ACTUALISATION
• This need refers to an individuals Desire to
  fulfill
• his Or her potential.

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• SEGMENTATION AND PROMOTIONAL APPLICATIONS
• POSITIONING APPLICATIONS
• A TRIO OF NEEDS Power, Affiliation, Achievement.

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THE MEASUREMENT OF MOTIVES

• How are motives identified? How do researchers
  know which motives are responsible for certain
  kinds of behaviour? These are difficult questions
  to answer because motives are hypothetical
  constructs- that is, they cannot be seen or
  touched, handled, smelled, or otherwise tangibly
  observed. For this reason, no single measurement
  method can be considered a reliable index.
  Instead, researchers usually rely on a
  combination of various qualitative research
  techniques to try to establish the presence
  and/or the strength of various motives.
• Some psychologists are concerned that many
  measurement techniques do not meet the crucial
  test criteria of validity and reliability. (
  Remember, validity ensures that the test measures
  what it purports to measure reliability refers
  to the consistency with which the test measures
  what it does measure.)
• Constructing a scale that measures a specific
  need, while meeting both criteria, can be
  complex. For example, a recent research project
  employed six different studies to develop and
  validate a seemingly simply five-item scale to
  measure status consumption (defined as the
  tendency to purchase goods and services for the
  prestige that owing them bestows.)

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• Respondents are asked to indicate their level of
  agreement or disagreement ( a Likert scale) on
  the following five items
• I would buy a product just because it has status.
• I am interested in new products with status
• I would pay more for a product if it had status
• The status of the product is irrelevant to me
• A product is more valuable to me if it has some
  snob appeal.

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MOTIVATIONAL RESEARCH

• The term motivational research, which should
  logically include all types of research into
  human motives, has become a term of art used to
  refer to qualitative research designed to uncover
  the consumers subconscious or hidden
  motivations. Based on the premise that consumers
  are not always aware of the reasons for their
  actions, motivational research attempts to
  discover underlying feelings, attitudes, and
  emotions concerning product, service, or brand
  use.

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The development of Motivational Research
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EVALUATION OF MOTIVATIONAL RESEARCH
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Defense Mechanisms

• People who cannot cope with frustration often
  mentally redefine their frustrating situations in
  order to protect their self-images and defend
  their self-esteem. For example, a young woman may
  yearn for European vacation she cannot afford.
  The coping individual may select a less expensive
  vacation trip to Disneyland or to a national
  park. The person who cannot cope may react with
  anger toward her boss for not paying her enough
  money to afford the vacation she prefers, or she
  may persuade herself that Europe is unseasonably
  warm this year.

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• These last two possibilities are examples,
  respectively, of aggression and rationalization,
  defense mechanisms that people sometimes adopt to
  protect their egos from feelings of failure when
  they do not attain their goals. Other defense
  mechanisms include regression, withdrawal,
  projection, autism, identification, and
  repressions. Marketers often consider this fact
  in their selection of advertising appeals and
  construct advertisements that portray a person
  resolving a particular frustration through the
  use of the advertised product.

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DEFENSE MECHANISAMS
DEFENSE MECHANISM DESCRIPTION AND ILLUSTRATIONS
Aggression In response to frustration, individuals may resort to aggressive behaviour in attempting to protect their self-esteem. The tennis pro who slams his tennis racket to the ground when disappointed with his game or the baseball player who physically intimidates an empire for his call are examples of such conduct. So are consumer boycotts of companies or stores.
Rationalisation People sometimes resolve frustration by inventing plausible reasons for being unable to attain their goals ( e.g. not having enough time to practice) or deciding that the goal is not really worth pursuing.
Regression An individual may react to a frustrating situation with childish or immature behaviour. A shopper attending a bargain sale, for example, may fight over merchandise and even rip a garment that another shopper will not relinquish rather than allow the other person to have it.
Withdrawal Frustration may be resolved by simply withdrawing from the situation.
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Defense Mechanism
Descriptions and illustrations

• Projection An individual may redefine a
  frustrating situation by projecting blame for his
  or her own failures and inabilities on other
  objects or persons. Thus, the golfer who misses a
  stroke may blame his golf clubs or his caddy.
• Autism Autistic thinking is thinking dominated by
  needs and emotions, with little effort made to
  reality. Such daydreaming, or fantasizing,
  enables the individual to attain imaginary
  gratification of unfulfilled needs.
• Identification People resolve feelings of
  frustration by subconsciously identifying with
  other persons or situations that they consider
  relevant.
• Repression Another way that individuals avoid
  the tension arising from frustration is by
  repressing the unsatisfied need. Thus,
  individuals may force the need out of their
  conscious awareness. Sometimes repressed needs
  manifest themselves indirectly. The manifestation
  of repressed needs in a socially acceptable form
  is called sublimation, another type of defense
  mechanism.

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EVALUATION OF MOTIVATIONAL RESEARCH
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• PERSONALITY AND
• CONSUMER
• BEHAVIOUR

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WHAT IS PERSONALITY

• Personality can be defined as those inner
  psychological characteristics that both determine
  and reflect how a person responds to his or her
  environment
• Personality is about somebodys set of
  characteristics the totality of somebodys
  attitudes, interests, behavioral patterns,
  emotional responses, social roles, and other
  individual traits that endure over long periods
  of time
• Personality can also refer to the characteristics
  making somebody appealing the distinctive or
  very noticeable characteristics that make
  somebody socially appealing a partner with real
  personality

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THE NATURE OF PERSONALITY

• Personality reflects individual differences
• Personality is consistent and endurance
• Personality can change.

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PERSONALITY

• Consumers are different in terms of age,
• gender, marital status, income, occupation, race,
• status, etc. These differences, gives rise to
• differences in personality.
• Some can afford to buy very expensive cars,
• rent expensive hotels because of their
• personality. The can afford these products
• because of their position, power, money, status
• and occupation.

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THEORIES OF PERSONALITY

• FREUDIAN THEORY
• NEO-FREUDIAN PERSONALITY THEORY
• TRAIT THEORY

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FREUDIAN THEORY

• Sigmund Freuds psychoanalytic theory of
  personality is a cornerstone of modern
  psychology.
• This theory was built on the premise that
  unconscious needs or drives, especially sexual
  and other biological drives, are at the heart of
  human motivation and personality.
• He said that personality is primarily instinctual
  and sexual in nature.
• He came out with three aspects He said the human
  personality consists to there interacting
  systems
• Id physiological needs e.g. food, water, shelter
  etc
• Superego Individuals internal expression of
  societys
• moral and ethical codes of conduct. The
  superegos role is to see that individuals
  satisfies needs in a socially acceptable fashion.
• Ego Freud emphased that an individuals
  personality is formed as he or she passes through
  a number of distinct stages of infant and
  childhood development. These are the oral, anal,
  phallic, latent, and genital stages.
• According to Freudian theory, an adults
  personality is determined by how well he or she
  deals with the crisis that are experienced while
  passing through each of these stages.

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NON-FREUDIAN PERSONALITY THEORY

• They believe social relationship is vital to the
  development of personality

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PERSONALITY AND UNDERSTANDING CONSUMER DIVERSITY
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CONSUMER INNOVATIONS AND RELATED PERSONALITY
TRAITS

• CONSUMER INNOVATIVENESS
• DOGMATISM
• SOCIAL CHARACTER
• NEED FOR UNIQUENESS
• OPTIMUM STIMULATION LEVEL
• SENSATION SEEKING
• VARIETY-NOVELTY SEEKING

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COGNITIVE PERSONALITY FACTORS

• NEED RECOGNITION
• VISUALIZERS VERSUS VERBALISERS

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FROM CONSUMER MATERIALISM TO COMPULSIVE
CONSUMPTION

• CONSUMER MATERIALISM
• FIXATED CONSUMPTION BEHAVIOUR
• COMPULSIVE CONSUMPTION BEHAVIOUR

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CONSUMER ETHNOCENTRISM RESPONSES TO FOREIGN-MADE
PRODUCTS

• Brand Personality

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• BRAND PERSONIFICATION
• PRODUCT PERSONALITY AND GEOGRAPHY
• PERSONALITY AND COLOUR
• Self and Self-image.

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• ONE OR MULTIPLE SELVES
• THE MAKEUP OF TH ESELF-IMAGE
• THE EXTENDED SELF
• ALTERING THE SELF
• Virtual Personality or Self.

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CONSUMER PERCEPTION

• Perception is defined as the process by which an
  individual selects, organizes, and interprets
  stimuli into a meaningful and coherent picture of
  the world.
• It can be described as how we see the world
  around us.

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SENSATION

• Sensation is the immediate and direct response of
  the sensory organs to stimuli. A stimuli is any
  unit of input to any of the senses. Examples of
  stimuli (i.e. sensory input) include products,
  packages, brand names, advertisements, and
  commercials.
• Sensory receptors are the human organs ( the
  eyes, ears, nose, mouth and skin) that receive
  sensory inputs. These sensory functions are to
  see, hear, smell, taste and feel.
• All of these functions are called into play,
  either singly or in combination, in the
  evaluation and use of most consumer products.
• Human sensitivity refers to the experience of
  sensation. Sensitivity to stimuli varies with the
  quality of an individuals sensory receptors
  (e.g. eyesight or hearing) and the amount (or
  intensity) of the stimuli to which he or she is
  exposed. For example, a blind person may have a
  more highly developed sense of hearing than the
  average sighted person and may be able to hear
  sounds that the average person cannot.
• Sensation itself depends on energy change within
  the environment where the perception occurs (
  i.e. on differentiation of input).

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• A perfectly bland or unchanging environment,
  regardless of the strength of the sensory input,
  provides little or no sensation at all.
• Thus a person who lives on a busy street in
  midtown Manhattan would probably receive little
  or no sensation from the inputs of such noisy
  stimuli as horns honking, tires screeching, and
  fire engines clanging, because such sounds are so
  commonplace in New York City.

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THE ABSOLUTE THRESHOLD

• The lowest level at which an individual can
  experience a sensation is called the absolute
  threshold.
• The point at which a person can detect a
  difference between something and nothing is
  that persons absolute threshold for that
  stimulus.
• To illustrate, the distance at which a driver can
  note a specific billboard on a highway is that
  individuals absolute threshold.
• Sensory adaptation is a problem that concerns
  many national advertisers which is why they try
  to change their advertising campaigns regularly.
  They are concerned that consumers will get so
  used to their current print ads and TV
  commercials that they will no longer see them
  that is, the ads will no longer provide
  sufficient sensory input to be noted.

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THE DIFFERENTIAL THRESHOLD

• The minimal difference that can be detected
  between two similar stimuli is called the
  differential threshold, or the just noticeable
  difference ( the j.n.d.).

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MARKETING APPLICATIONS OF THE Just Noticeable
Difference (J.N.D.)
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SUBLIMAL PERCEPTION

• Evaluating the effectiveness of Subliminal
  Persuasion

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DYNAMICS OF PERCEPTION
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PERCEPTUAL SELECTION

• Nature of the Stimulus
• Expectations
• Motives
• Selective Perception Selective exposure,
  Selective attention, Perceptual defense,
  Perceptual Blocking.

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PERCEPTUAL ORGANISATION

• Figure and Ground
• Grouping
• Closure

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PERCEPTUAL INTERPRETATION

• Perceptual distortion
• Physical appearances
• Stereotypes
• First impressions
• Jumping to conclusions
• Halo Effect

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Consumer Imagery
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PRODUCT POSITIONING

• Umbrella positioning
• Positioning against the competition
• Positioning based on a specific benefit
• Finding an Unowned position
• Filling several positions

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PRODUCT REPOSTIONING

• Perceptual mapping

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POSITIONING OF SERVICES
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PERCEIVED PRICE

• Reference prices
• Tensile and Objective price claims.

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PERCEIVED QUALITY

• Perceived quality of product
• Perceived quality of services

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PRICE/QUALITY RELATIONSHIPS
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RETAIL STORE IMAGE
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MANUFACTURERS IMAGE
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PERCEIVED RISK

• Perception of risk varies
• How consumers handle risk Consumers seek
  information, Consumers are brand loyal, Consumers
  select by brand image, Consumers rely on store
  image, Consumers buy the most expensive model,
  Consumers seek reassurance.

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CONSUMER LEARNING
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THE ELEMENTS OF CONSUMER LEARNING

• Consumer Learning is the process by which
  individuals acquire the purchase and consumption
  knowledge and experience that they apply to
  future related behaviour.
• Consumer learning is a process which means it
  continually evolves and changes as a result of
  newly acquired knowledge. ( which may be gained
  from reading, discussions, observation and from
  thinking) or from actual experience.
• Both newly acquired knowledge and personal
  experience serve as feedback to the individual
  and provide the basis for future behaviour in
  similar situations.

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MOTIVATION

• The concept of motivation is important in
  learning.
• Motivation is based on needs and goals.
• Motivation acts as a spur to learning. For
  example men and women who want to become good
  tennis players are motivated to learn all they
  can about tennis and to practice whenever they
  can.
• They may seek information concerning the prices,
  quality, and characteristics of tennis racquets
  if they learn that a good racquet is
  instrumental to playing a good game. Conversely,
  individuals who are not interested in tennis are
  likely to ignore all information related to the
  game. The degree of relevance, or involvement,
  determines the consumers level of motivation to
  search for knowledge or information about a
  product or service.
• Uncovering consumer motives is one of the prime
  tasks of marketers, who then try to teach
  motivated consumer segments why and how their
  products will fulfill the consumers needs.

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CUES

• If motives are to stimulate learning, cues are
  the stimuli that give direction to those motives.
• An advertisement for a tennis camp may serve as a
  cue for tennis buffs, who may suddenly
  recognise that attending tennis camp is a
  concentrated way to improve their game while
  taking a vacation.
• The ad is the cu, or stimulus, that suggests a
  specific way to satisfy a salient motive. In the
  market place, price, styling, packaging,
  advertisement, and store displays all serve as
  cues to help consumers fulfill their needs in
  product-specific ways.
• Cues serve to direct consumer drives when they
  are consistent with consumer expectations.
• Marketers must be careful to provide cues that do
  not upset those expectations. For example,
  consumers expect designer clothes to be expensive
  and to be sold in upscale retail stores. Thus a
  high-fashion designer should sell his or her
  clothes only through exclusive stores and
  advertise only in upscale fashion magazines.
• Each aspect of the marketing mix must reinforce
  the others if cues are to serve as the stimuli
  that guide consumer actions in the direction
  desired by the marketer.

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RESPONSE

• How individuals react to drive or cue- how they
  behave-constitutes their response.
• Learning can occur even when responses are not
  overt.
• The automobile manufacturer that provides
  consistent cues to a consumer may not always
  succeed in stimulating a purchase.

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REINFORCEMENT

• It increases a likelihood that a specific
  response will occur in the future as the result
  of particular cues or stimuli.

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Behavioural Learning Theories

• CLASSICAL CONDITIONING
• Conditioned learning
• Unconditioned stimulus
• Conditioned stimuli
• Cognitive Associative Learning
• Strategic Application of Classical conditioning

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INSTRUMENTAL CONDITIONING

• Reinforcement of behaviour
• Strategic Applications of Instrumental
  Conditioning

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MODELLING OR OBSERVATIONAL LEARNING
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COGNITIVE LEARNING THEORY

• INFORMATION PROCESSING
• Structure of memory
• Sensory store
• Short-term store
• Long-term store
• Rehearsal and Encoding
• Information overload
• Retention
• Retrieval

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Models of cognitive learning
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INVOLVEMENT THEORY

• Involvement theory and media strategy
• Involvement theory and Consumer Relevance
• Central and Peripheral Routes to Persuasion
• Measures of involvement
• Marketing Applications of involvement

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MEASURES OF CONSUMER LEARNING

• Cognitive Responses to Advertising
• Attitudinal and Behavioural measures of Brand
  loyalty
• Brand Equity

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CONSUMER ATTITUTUDE FORMATION AND CHANGE