• The inner psychological characteristics (the specific
qualities, attributes, traits, factors, and mannerisms
that distinguish one individual from other
individuals) that both determine and reflect how we
think and act.
• Personal reflects individual differences ( No two
individuals are exactly alike)
• Personality is consistent and enduring-
• ( Personality is somewhat permanent and long term
• Personality may change
3. Theories of Personality
• Freudian theory suggests unconscious needs
or drives are at the heart of human
• Neo-Freudian theory suggests social
relationships are fundamental to the
formation and development of personality.
• Trait theory takes a quantitative approach to
personality as a set of psychological traits
4. • Freud's theory provides one conceptualization
of how personality is structured and how the
elements of personality function.
In Freud's view, a balance in the dynamic
interaction of the id, ego, and superego is
necessary for a healthy personality.
6. Implications for marketers:
• Consumers match their personality styles with
the product/brands they buy. Thus, marketers
should segment markets and position their
brands accordingly. For example, there are
variants of the same motorbike; some plain and
sleek, some trendy and some powerful, each of
which are meant for separate segments. Thus,
marketers could take a clue and segment
consumers on the basis of the personality traits
that determine their behavior.
7. • Second, with a majority of human drives being
unconscious, consumers themselves are often
unaware of the true reasons for buying a
particular product or brand. Many a times, a
consumer fails to provide an answer as to why
he bought a red shirt and not a yellow one.
8. • Third, much of the processes that come into
play while purchase decisions and
consumption patterns is unexplainable;
behavior is many a times instant and
spontaneous much against market forecast.
For example, Hrithik Roshan movies made by
Rakesh Roshan and team like Koi Mil Gaya,
Krish etc. have been huge hits, but Kites made
under the same banner was quite a disaster,
much against marketer expectations.
9. Neo-Freudian theory
• Individual develops a personality through
numerous attempts to deal with others in a
• Believed that
• Alfred Adler
• Harry Stack Sullivan
• Karen Horney
10. Horney Proposed that individuals can be classified
into three personality groups:
• Complaints: Are those who move towards others
and stress the need for love, approval and
affection. These people are unselfish and show
empathy and humility.
• Aggressive: Those who move against others. They
stress the need for power, strength and ability to
11. • Detached: Those who move away from others.
They stress the need for independence,
freedom in their dealings with others.
12. Application Of Neo Freudian Theory to
• The research study shows that some tentative
relationship between consumers and product
brand usage pattern.
• Complaint types prefer known brands
• Aggressive types prefer Old space after shave
lotion and Heusen Shirts because of their
• Detached – appear to have least awareness of
13. • Adlers theory : much emphasis on the
individuals efforts to overcome feelings of
• Ex: ad- campaign of ONIDA T.V- depicts that
owners of other T.V’s are envious of owners of
ONIDA T.V – Neighbors envy – owners Pride.
15. • On the play ground, 6 year old Sam pushes
little Samantha off her tricycle and rides away
on it. Why?
17. Three trait theory
1. Cardinal Traits: Traits that dominate an individual’s
whole life, often to the point
that the person becomes known specifically for these
traits. Freudian, Machiavellian, narcissism, Don Juan,
2. Central Traits: These are the general characteristics
that form the basic foundations of personality. Terms such
as intelligent, honest, shy and anxious are considered
3. Secondary Traits: These are the traits that are
sometimes related to attitudes or preferences and often
appear only in certain situations or under specific
circumstances. Some examples would be getting anxious
when speaking to a group or impatient while waiting in
18. Personality Traits and Consumer Behavior
• Market Segmentation: Marketers can use trait
variables in understanding the consumer
behaviour and segmenting the market
• Consumer Innovators: innovators can be
defined as the relatively small group of
consumers who are earliest purchasers of a
new product and non innovators are those
who are not keen in purchasing new products.
19. • Social Character: it is a personality trait that
ranges on a continuum from inner directedness
and other directedness.
• Inner Directed Consumers: consumers who rely
on their values and standards in evaluating the
new products .
• Other Directed Consumers: who tend to look to
others on what is right or wrong.
• Dogmatism: A highly dogmatic consumer will be
willing to accept new or unfamiliar product if the
promotional appeal is authoritative, ( e.g by an
admired celebrity or by a well known expert)
20. • Low Dogmatic Consumer: shall be more
respective to the messages that stress factual
difference and product benefits.
• For this reason, the marketer should be wise
enough to emphasize in his appeal why and
how his product is superior to other exiting
products in the market.
21. Self – Concept ( Self- Image)
• Self-concept is how a consumer sees and feels
about him / herself, both the actual self and the
ideal self he or she would like to become. Self-
concept also relates to how consumers want
others to see them.
31. Modern Trends in Life style of
consumer- Indian Scenario
• Information-Centered Shopping. People in
Indian cities now treat information gathering
as an integral part of the shopping experience.
Eighty-five percent of consumers check at
least two data points (beyond prices and
discounts) when they’re buying something,
32. • Shopping to Stay Trendy: More than 60% of
respondents said that in the past year, in at
least one category, they had purchased
something because it was trendy.
• Adoption of Time-Saving Products and
Services. A young family in Bhubaneshwar
contracted out the refurbishment and painting
of their house to an end-to-end provider to
avoid the hassle of dealing with multiple
33. • A Full-On Embrace of Health and
Wellness. Health consciousness has seeped
into the national conversation in recent years.
• Growing Interest in Customized
Products. Mass-produced offerings have long
dominated the Indian market.
• The Rise of the Female Decision Maker.
• The total accumulation of past experiences are
known as memory.
• Short-term memory: It is the memory which can
be recalled immediately and, is activated and in
use. Short-term memory can give continued
repetition of a piece of information that can be
used for problem solving.
37. • Long-term memory: It is a permanent storage
in the minds of the consumer. It is active and
can store a variety of information consisting of
concepts, decisions, rules, processes, affective
• This is important to the marketer because an
image of a brand and the concepts that a
consumer had heard about a brand, are made
up of various elements and the consumer can
have a lot of meanings attached to the brand,
when the particular brand is mentioned.
38. The various factors that come to a consumer’s mind when he thinks of Coca Cola or Bata
Shoes are shown in the figure.
39. • Positioning:
• Marketers try to position their brands in the
minds of the consumer. It relates to the memory
of brand in relation to competing products. By
this, the marketer tries to enhance the image of
his brand which suits the consumer, promotes
the image of the products and the stores as
well. Product position evolves over time, as the
marketer gets to know more about the
preference of the consumers
41. What is learning?
• Learning refers to more or less permanent
change in behaviour which occurs as a result of
• Consumer learning is the process by which
individuals acquire the purchase and
consumption knowledge and experience they
apply to future related behaviour.
SCHIFFMAN AND KANUK.
42. The process by which individuals acquire the
purchase and consumption knowledge and
experience that they apply to future related
(In Terms of Consumer Behaviour/
44. • Cues : viewed as a weak stimulus not strong
enough to arouse consumers but is capable of
providing direction to already motivated activity.
• For example: when we are hungry, we are
guided by certain cues such as restaurant signs
and the aroma of food cooking, because we
have learned that these stimuli are associated
with food preparation and consumption.
45. Implication in CONSUMER BEHAVIOUR
• In the market place, price styling, packaging ,
advertising, displays, colour , all serve as cues to
help consumers to fulfill their needs in product in
• For example, sellers of food add artificial colour to
provide the expected cue. Similarly, consumers
expect that a high fashion stores should carry
good designers clothes at high prices.
• Response appropriate to a particular situation are
learned through experience over time, in facing that
• Learning can occur even when response are not
• The automobile Manufacturer that provides
consistent cues to a consumer may not always
succeed in stimulating a purchase. However, if the
manufacturer succeeds in forming a favorable
image of a particular model in the consumer’s mind,
when the consumer is ready to buy the product.
• Reinforcement means likelihood of repeating the
same response in future as a result of a
particular cues or stimuli or in a similar situation,
because reinforced behaviour tends to be
• EX: If a student finds that he is able to ward off
the beginning of a cold by taking vitamin C
Tablets , he is more likely to take vitamin C
tablets at the next sign of a cold. Through
reinforcement, learning takes place since he
experienced in the past that vitamin C lived up
to his expectation in the past.
49. Classical Conditioning by Ivan Pavlov(
• According to Pavolvian theory, conditioned
learning results when a stimulus that is paired
with another stimulus that elicits a known
response serves to produce the same
response by itself.
• Pavlov demonstrated his theory( what he
meant by conditioned learning) in his studies
with dogs. The dogs were hungry and highly
motivated in his experiment, Pavlov sounded
a tone and immediately followed by applying
50. • a meat paste to the dogs tongues, which caused
salivation . This practice repeated sufficient
number of times. Learning occurred when after
sufficient number of repetition of the tone,
followed almost immediately by food, the tone
alone caused salivation. The tone had been
learned to be an indicator of the reward of meat
54. Principles of Conditioned learning:
• Stimulus Generalization
• Stimulus discrimination
• Each of these concepts is important in
understanding the behaviour of consumers.
• Repetition: which may learn a message which
marketers want to impart by repeated exposure of
the same message through advertising on T.V OR
print media . A repeated exposure of a message in a
magazine, news paper or television advertisements
will familiarize the brand name and the product
name to the consumers.
55. • Stimulus Generalization: Pavlov noted that
dogs could learn to salivate not only to the
tone of bell but also to the similar sound of
• Stimulus generalization explains why imitative
me-too products crowd into the market
immediately after the introduction of a new
innovative product in the market.
• Another marketing strategy that works on the
principle of stimulus generalization is the
product line extension- adding related products
to an already established brand.
56. • ex: Philips which specialized in the beginning in
electric bulbs now extended its line to all types of
electrical and electronics goods.
• Stimulus Discrimination: Stimulus Discrimination
is opposite to stimulus generalization and results
in the selection of a specific stimulus from
among similar stimulus. Discrimination is
obviously an important concept in marketing.
Marketers want to distinguish their products
from the products of their competitors to win
the consumer’s minds.
57. • Imitators want consumers to generalize their
experience where as market leaders want
their products discriminate to retain their
position in the market.
59. Instrumental Conditioning
• The instrumental condition theory is
associated with the American Psychologist,
named B.F. Skinner.
• Instrumental learning theorists believe that
learning occurs through a trail and error
process, with habits formed as result of
rewards received for certain responses or
60. • For example, consumers learn which stores
carry the type of clothing they prefer at prices
they can afford to pay by shopping in a
number of stores. Once they find a store that
carries clothing that meets their needs, they
are likely to patronize that store to the
exclusion of others.
• Skinner used a box for the type of learning
known as Skinner Box. He placed pigeons in
that skinner box. On one wall of the box there
are buttons or levers which when pressed or
pecked will deliver food to the pigeons
61. • In this case, button is the conditioned stimulus.
When placed in the box, pigeons can respond in
a variety of ways. Eventually, it will push a
particular button and get food and eat with
• Here the food which represents a positive
reinforce, is the unconditioned stimulus. Most
likely, pigeon will not immediate learn pushing
the right button for food receiving. Other
responses will also occur, but pushing only a
right button will lead to reinforcement.
62. • Therefore, over a number of reinforced trials the
pigeon will learn the connection between the
stimulus and the response.
• In the context of marketing, consumer tries a
number of brands of a particular product and
continues trying different brands until he finds a
suitable brand that satisfies him in fulfilling his
needs. The brand that gives him maximum
satisfaction, will continue to be used.
64. POSITIVE AND NEGATIVE REINFORCEMENT
• Are favorable events that are presented after
• Ex: A student answered all the items correctly
in the internal examination test. The teacher
said you are exempted in the periodic test.
• It is an unpleasant or negative outcome that
serves to encourage a specific behaviour.
65. • Marketers generally use both positive and
negative reinforcement to encourage customers
to buy their products.
• Ex: Conference sponsors distributes notebooks or
paper files to remind them of the conference .
• Marketers, some times use negative
• Ex. Insurance advertisement:
• Fear appeals in advertisement messages are
examples of negative reinforcement.
66. Cognitive Theory of Learning
• According to Cognitive theorists, a considerable
amount of learning takes place as the result of
consumer thinking and problem solving.
• The view point contends that much learning
occurs not as a result of trail and error or
Practice but through mental activity discovering
meaning patterns that enable us to solve
Learning Based on mental activity is known as
67. • Cognitive theory holds that most learning is
based on the main characteristic of human
being i.e problem solving, which enables
individuals to gain some control over their
environment. Consumer learns much from the
environment . He collects information about a
problem, applies information to solve the
problem, and make a decision in order to solve
the problem in the best way possible.
• Kohler’s work with apes provides an interesting
example to understand this type of learning. In
an experiment, a chimpanzee was placed in a
cage with a bos, and bananas were hung from
the top of the cage beyond the reach of the
chimpanzee even if he jumped. After failing to
reach the bananas, the problem was solved
when he placed the box under the bananas and
jumped from it to reach the food.
This suggested that the ape learned not from
trail and error but from insight into a problem
69. • Information processing: The human mind is
engaged in the processing of information. Of central
importance to the processing of information gets
stored in the human memory.
Short term store and Long term store :
Short term : it is a position of memory activated to
temporarily store and process information in order
to interpret it.
Long Term: The capacity of this store is to store an
almost unlimited amount information for a long
( ex: We can remember the name of our most
favored teacher for years)
70. Implications of Marketers
• Research studies have found that previous
experience and stored beliefs about the
market place significantly influence the
consumer’s external search for information.
They have found that information stored in
memory is brand based, and that consumers
interpret new information in a manner
consistent with the existing organization
• An event occurred in the presence of four
persons, it will be narrated by these four persons
in a quite different ways. They view the same
event at the same time, and each reports it in
the total honesty a story different from all
• The consumers perception what consumers
think about the product or producer or brand
etc. The consumer’s perception is much more
important to the marketers than their
knowledge of objective reality.
• “Perception is a process of receiving, electing,
organizing, interpreting, checking and reacting
to sensory stimuli or data so as to form a
meaningful and coherent picture of the world”.
• Sensation is the immediate and direct response
of the sensory organs to simple stimuli( an
advertisement, a package, a brand name etc.)
• Sensitivity to stimulus varies from person to
person depending upon the quality of his
sensory receptors (Sensory receptors – Eyes,
Ears, Nose, Mouth and Skin) and the amount or
intensity to stimuli to which he or she is
77. ABSOLUTE THRESHOLD
• The lowest level at which an individual can
experience a sensation. [ Detecting difference
between “something and nothing”]
Ex: A person who is driving through a road will
experience sensation when he enters the
The minimal difference that can be detected
between the two stimuli is called as the
differential threshold or the J.N.D.
78. • A nineteenth century German scientist Ernst
Weber discovered that the just noticeable
difference between two stimuli was not an
absolute amount, but an amount relative to the
intensity of the first stimulus.
• For Example, if the price of refrigerator increases
by Rs. 25, it would probably remain unnoticed by
the consumers, because proportionate to the
initial stimulus ( value), the increase is negligible ,
but if increase is by Rs 500 or more, it will be
perceived as noticeable.
80. SUBLIMINAL PERCEPTION
• Perception of very weak or rapid stimuli received
below the level of conscious awareness
Subliminal perception occurs whenever stimuli
presented below the threshold
The term subliminal perception was originally
used to describe situations in which weak stimuli
Were perceived without awareness
People carrying biased pictures in their
minds of the meanings of various stimuli.
People hold meaning related to stimuli
Stereotypes influence how stimuli are
83. Physical Appearances:
• People associate quality with people in the
• Attractive models have positive influence
• Colors of juices.
• Shape of the package
84. Descriptive Terms
• KFC – Spicy Chicken
• – McDonald – Happy price (targeting Indians
who are price conscious).
HALO EFFECT: (The tendency for positive
impressions of a person, company, brand or
• Consumers perceive and evaluate product or
• service or even product line based on just one
86. WHAT IS ATTITUDE
• It is a learned predisposition to respond in a
consistently favorable or unfavorable manner
with respect to a given object.
• Thus, an attitude is the way one thinks, feels,
and acts toward some aspect of his or her
environment such as a retail store, television
prog, or product.
87. • Attitudes are not directly observable but must be
inferred from what people say or what they do.
• For example, if a researcher determines from
questioning a consumer that he consistently buys
philips products and even recommends them to
friends, the researcher is likely to infer that the
consumer possesses a positive attitude toward
88. Four key functions of Attitude
• Knowledge function: Some attitudes swerve
primarily as a means of organizing beliefs
about objects or activities such as brands and
• For example, a consumer’s attitude toward
cola drinks may be ‘they all taste the same.’
This consumer would be likely to purchase the
least expensive or most convenient brand.
89. • Value-expressive function: consumers who
value nature and the environment are likely to
develop attitudes about products and
activities that are consistent with that value.
These consumers are likely to
express support for environment protection
initiatives, to recycle, and to purchase and use
90. Utilitarian function: People tend to form favorable
attitudes toward objectives and activities that are
rewarding and negative attitudes toward those
that are not.
• Marketers frequently promise rewards in
advertising and conduct extensive product testing
to be sure the products are indeed rewarding.
• Ego-defensive function: People form and use
attitudes to defend their egos and self-images
against threats and shortcomings. Products
promoted as very macho may be viewed favorably
by men who are insecure in their masculinity.
92. • Belief plays a vital role for consumers because,
it can be either positive or negative towards
• For example, some may say tea is good and
relieves tension, others may say too much of
tea is not good for health. Human beliefs are
not accurate and can change according to
• Typically these come to light in generalities or
stereotypes, such as ‘all babies are cute’,
‘smoking is harmful to health’ etc
93. Affective Component
Affective component is the emotional or
feeling segment of an attitude
It deals with feelings or emotions that are
brought to the surface about something, such
as fear or hate.
Example, they hate smoking because it is
harmful to health.
94. Conative Component
• It 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.
• Ex: “I will avoid spiders and scream if I see one”
• In consumer behaviour, the conative component
is frequently treated as an expression of the
consumers intention to buy.
• The word motivation is derived from the Latin
word ‘ Movere’, which means to move. It is a
psychological concept that mobilizes bodily
Types of Motives:
• Positive and Negative
Motives may be either positive or negative. If
they have positive influence on consumers, they
are positive otherwise they are negative.
99. • When we buy some product to satisfy our
need is positive drive but when we are forced
to purchase certain products due to some fear
(for example, tooth paste for decay
Conscious and Unconscious .
• Conscious motives are those motives of which
consumers are quite aware . They know that
they are influenced by certain motives. But
there are certain other motives about which
consumers are not aware that they are being
influenced by them.
100. • (Ex . We really do not know why we prefer
certain colors over others).
Rational and Emotional
Rationality implies that consumers select goals
based on totally objective criteria, such as size,
Emotional motives imply the selection of goals
according to personal or subjective criteria such
as pride, affection, fear and status.
102. Maslow’s hierarchy
• Some needs take precedence over other
needs—physiological needs take top priority
• Differences in the importance attached to
various needs affects how consumers evaluate
110. Role of Motivation In Consumer
• Premiums, free products, contests, and
sweepstakes are designed to motivate
consumers to purchase.
• Motivate repeat buying by providing rewards to
customers based on how much business they do
with the company ( implement the loyalty
• Curiosity often leads to an enhanced need for
information ( Provoke Consumers curiosity)