Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making.
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India.
2. Levels of Consumer Decision Making
Extensive Problem Solving
Limited Problem Solving
Routine Response
Behavior
3. Extensive
Problem
Solving
A search by the consumer to
establish the necessary
product criteria to evaluate
knowledgeably the most
suitable product to fulfill a
need.
5. Models of Consumers: Four Views of
Consumer Decision Making
• An Economic View
• A Passive View
• A Cognitive View
• An Emotional View
6. The Economic view
Rational Customers Have To …
• Be aware of all available
product alternatives
• Be capable of correctly
ranking each alternative in
terms of its benefits and
disadvantages
7. Why is the Classical Economic Model
Considered Unrealistic?
• People are limited by
their existing skills,
habits, and reflexes
• People are limited by
their existing values and
goals
8. Models of Consumers: Four Views of
Consumer Decision Making
• A Passive View
• A Cognitive View
• An Emotional View - mood
9. Figure 16.2 A Simple Model of Consumer Decision Making
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Need Recognition
Prepurchase Search
Evaluation of Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation
Output
Process
Input
External Influences
Consumer Decision Making
Postdecision Behavior
11. Compensatory
Decision Rules
A type of decision
rule in which a
consumer evaluates
each brand in terms
of each relevant
attribute and then
selects the brand
with the highest
weighted score.
12. Non-
compensatory
Decision
Rules
A type of consumer
decision rule by which
positive evaluation of
a brand attribute
does not compensate
for a negative
evaluation of the
same brand on some
other attribute.
13. Conjunctive
Decision
Rule
A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
attribute evaluated.
Brands that fall below
the cutoff point on any
one attribute are
eliminated from
further consideration.
16. Affect
Referral
Decision
Rule
A simplified decision rule
by which consumers
make a product choice
on the basis of their
previously established
overall ratings of the
brands considered,
rather than on specific
attributes.
17. Table : Hypothetical Use of Popular Decision Rules in
Making a Decision to Purchase a Laptop
DECISION RULE MENTAL STATEMENT
Compensatory rule “I selected the computer that came out best when I
balanced the good ratings against the bad ratings.”
Conjunctive rule “I selected the computer that had no bad features.”
Disjunctive rule “I picked the computer that excelled in at least one
attribute.”
Lexicographic rule “I looked at the feature that was most important to me
and chose the computer that ranked highest on that
attribute.”
Affect referral rule “I bought the brand with the highest overall rating.”
22. What Is Personality ?
The inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment
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The Nature of Personality
• Personality reflects individual
differences
• Personality is consistent and
enduring
• Personality can change
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Discussion Questions
• How would you describe your personality?
• How does it influence products that you
purchase?
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Theories of Personality
• Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
• Neo-Freudian personality theory
– Social relationships are fundamental to the
formation and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits
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Trait Theory
• Personality theory with a focus on
psychological characteristics
• Trait - any distinguishing, relatively enduring
way in which one individual differs from
another
• Personality is linked to how consumers make
their choices or to consumption of a broad
product category - not a specific brand
27. Copyright 2007 by Prentice Hall
Trait Theory
• Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Variety-novelty seeking
• The degree to which
consumers are
receptive to new
products, new services,
or new practices
Consumer Innovators
And Noninnovators
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Trait Theory
• Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Variety-novelty seeking
• A personality trait that
reflects the degree of
rigidity a person displays
toward the unfamiliar and
toward information that is
contrary to his or her own
established beliefs
Consumer Innovators
And Noninnovators
29. Copyright 2007 by Prentice Hall
Trait Theory
• Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Variety-novelty seeking
• Ranges on a continuum for
inner-directedness to other-
directedness
• Inner-directedness
– rely on own values when
evaluating products
– Innovators
• Other-directedness
– look to others
– less likely to be innovators
Consumer Innovators
And Noninnovators
30. Copyright 2007 by Prentice Hall
Trait Theory
• Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Variety-novelty seeking
• Consumers who avoid
appearing to conform to
expectations or
standards of others
Consumer Innovators
And Noninnovators
31. Copyright 2007 by Prentice Hall
Brand Personality
• Personality-like traits associated with brands
• Examples
– Nike and athlete
– BMW is performance driven
– Levi’s jeans are dependable and rugged
• Brand personality which is strong and favorable will
strengthen a brand but not necessarily demand a
price premium
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Discussion Questions
• Pick three of your favorite brands.
• Describe their personality. Do they have a
gender? What personality traits do they
have?
33. Commands respect, authority
Caution, novelty, temporary, warmth
Secure, natural, relaxed or easy- going,
living things
BLUE
YELLOW
GREEN
Table : The Personality-like Associations of Colors
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Human, exciting, hot, passionate, strong
Powerful, affordable, informal
Informal and relaxed, masculine, nature
Goodness, purity, chastity, cleanliness,
delicacy, refinement, formality
Sophistication, power, authority, mystery
Regal, wealthy, stately
RED
ORANGE
BROWN
WHITE
BLACK
SILVER, GOLD
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Perception
• The process by which an individual selects,
organizes, and interprets stimuli into a
meaningful and coherent picture of the world
• How we see the world around us
Sketchers
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Aspects of Perception
Selection
Organization
Interpretation
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Perceptual Selection
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Consumers seek out
messages which:
– Are pleasant
– They can sympathize
– Reassure them of good
purchases
Concepts
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Perceptual Selection
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Heightened awareness
when stimuli meet their
needs
• Consumers prefer
different messages and
medium
Concepts
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Perceptual Selection
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Screening out of stimuli
which are threatening
Concepts
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Perceptual Selection
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Consumers avoid being
bombarded by:
– Tuning out
Concepts
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Organization
• Grouping
• Closure
• People group stimuli to
form a unified
impression or concept.
• Grouping helps memory
and recall.
Principles
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Organization
• Grouping
• Closure
• People have a need for
closure and organize
perceptions to form a
complete picture.
• Will often fill in missing
pieces
• Incomplete messages
remembered more than
complete
Principles
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Interpretation
• Physical
Appearances
• First Impressions
• Jumping to
Conclusions
• Halo Effect
• Positive attributes of
people they know to
those who resemble
them
• Important for model
selection
• Attractive models are
more persuasive for
some products
Perceptual Distortion
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Interpretation
• Physical
Appearances
• First Impressions
• Jumping to
Conclusions
• Halo Effect
• First impressions are
lasting
• The perceiver is trying
to determine which
stimuli are relevant,
important, or predictive
Perceptual Distortion
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Interpretation
• Physical
Appearances
• First Impressions
• Jumping to
Conclusions
• Halo Effect
• People tend not to listen
to all the information
before making
conclusion
• Important to put
persuasive arguments
first in advertising
Perceptual Distortion
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Interpretation
• Physical
Appearances
• First Impressions
• Jumping to
Conclusions
• Halo Effect
• Consumers perceive and
evaluate multiple objects
based on just one
dimension
• Used in licensing of names
Perceptual Distortion
48. Copyright 2007 by Prentice Hall
The halo effect
helps Adidas
break into new
product
categories.