The document provides an overview of chapters in a book on consumer behavior, including introductions to consumer behavior, the consumer research process, market segmentation and targeting, consumer motivation, personality and consumer behavior, consumer perception, consumer learning, attitude formation and change, communication processes, factors influencing consumer behavior, opinion leadership, and the consumer decision-making process. It lists the chapter titles and page numbers for each of the 11 chapters covered in the book. The document serves as a table of contents that outlines the topics and structure of the consumer behavior book.

1. 1

2. CONTENT
Sr.no Chapter Pg no
1. Introduction to Consumer Behavior 4-10
2. Consumer Research Process 11-19
3. Market Segmentation & Targeting 20-46
4. Consumer Motivation 47-51
5. Personality & Consumer Behaviour 52-76
6. Consumer Perception 77-96
7. Consumer Learning 97-102
2

3. Sr no. Chapter
8. Attitude Formation & Change 103-135
9. Communication Process 136-153
10. Factor influencing Consumer Behavior 154-156
11. Opinion leadership 157-164
12. Consumer Decision Making Process 165-168
3

4. Introduction to Consumer
Behavior
4

5. ‹#›

6. Introduction to Consumer Behavior
 What is Consumer Behavior?
 Consumer Behavior refers to the actions and the
decision process of the people who purchase goods and
services for personal consumption
 Consumer Behaviour refers to the mental and emotional
process and the physical activities of the people who
purchase and use goods and services to satisfy
particular needs and wants.
 Consumer and Customer
6

7.  Importance of the study of Consumer Behavior
 Analysis Market Opportunity
 Selecting Target Market
 Marketing Mix Decisions (Product, Price,
Distribution, Promotion)
 Use in social and Non profit Marketing
 Development of Marketing Concept
 The Societal Marketing Concept
 Ethics in Marketing
7

8. Social Responsibility
Refers to the obligations of the business to make deliberate efforts to
maximize its positive contributions & minimize negative impact on the
society
8

9. Ethics in Marketing:
 Ethics are a collection of principles of right conduct that shape the
decisions people or organizations make.
 Practicing ethics in marketing means deliberately applying standards
of fairness, or moral rights and wrongs, to marketing decision making,
behavior, and practice in the organization.
 Not employing ethical marketing practices may lead to dissatisfied
customers, bad publicity, a lack of trust, lost business, or, sometimes,
legal action
9

10. Relationship between marketing
and ethics
 A reasonable practice leading to positive
relationships.
 That rules are not necessarily contractual.
 Allows buyers and sellers to work together.
 Disadvantage: requires time to develop a list of
expected conduct or “rules of behavior.”
10

11. Unit 2
The Consumer Research Process
11

12. ‹#›

13. Consumer research
13

14. Needs
 Wide market coverage
 Producing goods as per consumer needs
 Attracting consumers
 Better understanding of consumer
14

15. Consumer research process
 Defining the objectives of the research
 Collecting and evaluating secondary data
 Designing a primary research study
 Collecting primary data
 Analyzing the data
 Preparing a report on the findings
15

16. Quantitative research
 Quantitative research is used widely in social sciences such as
psychology, economics, sociology, and political science, and less
frequently in anthropology and history.
 Research in mathematical sciences such as physics is also
'quantitative' by definition, though this use of the term differs in
context.
 Quantitative Research
 Data Collection Methods (Observation, Experimentation, Survey)
 Data Collection Instruments
 Sample Design
 Collecting Primary Data
 Analysis Data
 Report Preparation
16

17. Qualitative research
 Focus groups
 Direct observation
 In-depth interviews
 Projective Techniques
 Role-play
 Case-study
17

18. Motivational research
 Why do consumers buy?
 Why consumer purchase a particular brand product?
 Why consumer like or dislike a particular product
/brand?
 MR is an attempt to get a better understanding of
motives that make people to buy ,to measure their
relative strength & secure quantitative information on
their importance.
18

19. How MR can be conducted?
 Objective method
 Projective method
- Word association test
- Sentence completion test
- Story completion test
 Observational technique
19

20. Unit 3
Marketing Segmentation
20

21. 21

22. Segmentation, Targeting
&
Positioning
22

23. STP
 Segmentation: dividing market into distinct group of buyers
- Customer in one group should:
Buy the product for the same purpose
Buy & use the product in the same way.
Purpose:
1. Target market selection
2. Tailored marketing mix
3. Differentiation
 Targeting: evaluating various segments & selecting how
many & which one to target.
 Positioning :it is the act of finding a place in the minds of
the consumers & locating the brand therein
23

24. Segmenting
 Breaking down a diverse market of people into smaller,
homogeneous groups
 Segments should be measurable, sizeable, and
reachable
 After segmenting → target a specific segment (focus
your campaign on that group) → positioning
24

25. 25

26. 26

27. Example:
Titan Watches
 Arrives in three broad Segments
 The Rich
 The Middle
 The Lower
Titan Brings out a Wide Range of Offer to Serve the Different Value
Segments
For the Gold lovers:
 Titan offered to this segment an all gold watch- the Aurum and Royal
lines.
For the More than One Segments:
 Titan made those who wanted more than one watches into a separate
segment ad tempted them by offering a wide range of models. It
offered them matched one’s dress and occasions.
For the youth /the outdoor lovers:
 Titan viewed them as a lifestyle segment and offered them the fast
track.
27

28. For Designer Segment:
 Titan also adopted the designer segment and offered them all
designer and hand assembled watches, the Euro collection,
designed by European designers.
For the Children
 Titan adopted children – those between 6 to 14 years as o
separate segment ( Dash for Kids)
 For Women Seeking Fashion within the Middle-income Group:
 Titan offered the Raga Range for this segment which was meant
exclusively for women.
28

29. Factors influencing MS
 Better marketing performance
 Better services to consumers
 Appropriate price fixation
 Designing the products
 Helps Identify Less Satisfied Segments and
Concentrate on Them
29

30. Basis for segmenting consumer markets
Geographical: Nations, states, regions or cities
E.g.: Southern are found of coffee and north Indians like Tea, . People down south use talc
excessively
Demographic: Age, gender, family size and life cycle, or income
Age: It is essentially a case of age based segmentation of a market.
Example:
 Amul has segmented his product in different age group
 For kids: Amul kool, chocolate milk, Nutramul energy drink.
 For Youth: Amul cool kafe.
 For women’s and older people: Amul calci+, Amul Shakti energy drink
Gender:
Example: Adidas targets women in India
 German shoe maker Adidas is trying to develop the women segment in India for its
products.
 Emami segmented its product in gender
 Women’s: Naturally fair
 Men: Fair and handsome
30

31. Psychographic: Social class, lifestyle or personality
Example: Café Coffee Day
They choose lifestyle oriented, urban consumers as target with youth.
Behavioral:
 Benefit sought: - Quality / economy / service / look etc of the product.
 Example: Nestle has found a separate segment atta noodles as distinct
from the maida noodles.
 Usage rate: - Heavy user / moderate user / light user of a product.
 User status: - Regular / potential / first time user / irregular
/occasional.
 Loyalty to brand: - Hard core loyal / split loyal / shifting / switches.
 Occasion: - Holidays and occasion stimulate customer to purchase
products.
 Attitude toward offering: - Enthusiastic / positive attitude / negative
attitude / indifferent / hostile.
 Example: Shampoos, soap and all FMCG products buying behavior
segmentation is used.
31

32.  Demographic-Psychographics(Hybrid approach)
 Geo-demographic (Hybrid Approach)
32

33. Evaluating Market Segment
 Segment size
 Price sensitivity
 Nature of competition
 New entrant
 Competitive differentiation
 Political issues
 Environmental issues
33

34. VALS
- ("Values, Attitudes and Lifestyles") is a proprietary
research methodology used for psychographic market
segmentation.
- Market segmentation is designed to guide companies
in tailoring their products and services to appeal to the
people most likely to purchase them.
34

35. VALS Framework and Segment
Innovator.
 These consumers are on the leading edge of change, have the highest
incomes, and such high self-esteem and abundant resources that they
can indulge in any or all self-orientations.
 They are located above the rectangle. Image is important to them as an
expression of taste, independence, and character.
 Their consumer choices are directed toward the "finer things in life."
Thinkers.
 These consumers are the high-resource group of those who are
motivated by ideals.
 They are mature, responsible, well-educated professionals.
 Their leisure activities center on their homes, but they are well
informed about what goes on in the world and are open to new ideas
and social change.
 They have high incomes but are practical consumers and rational
decision makers.
35

36. Believers.
 These consumers are the low-resource group of those who are
motivated by ideals.
 They are conservative and predictable consumers who favor
American products and established brands.
 Their lives are centered on family, mosque, community, and the
nation. They have modest incomes.
Achievers.
 These consumers are the high-resource group of those who are
motivated by achievement.
 They are successful work-oriented people who get their
satisfaction from their jobs and families.
 They are politically conservative and respect authority and the
status quo.
 They favor established products and services that show off their
success to their peers.
36

37. Strivers.
 These consumers are the low-resource group of those who are
motivated by achievements.
 They have values very similar to achievers but have fewer
economic, social, and psychological resources.
 Style is extremely important to them as they strive to emulate
people they admire.
Experiencers.
 These consumers are the high-resource group of those who are
motivated by self-expression.
 They are the youngest of all the segments, with a median age of
25.
 They have a lot of energy, which they pour into physical exercise
and social activities.
 They are avid consumers, spending heavily on clothing, fast-
foods, music, and other youthful favorites, with particular
emphasis on new products and services.
37

38. Makers.
 These consumers are the low-resource group of those who are
motivated by self-expression.
 They are practical people who value self-sufficiency. They are
focused on the familiar-family, work, and physical recreation-
and have little interest in the broader world.
 As consumers, they appreciate practical and functional products.
Survivors.
 These consumers have the lowest incomes.
 They have too few resources to be included in any consumer self-
orientation and are thus located below the rectangle.
 They are the oldest of all the segments, with a median age of 61.
Within their limited means, they tend to be brand-loyal
consumers.
38

39.  Targeting.
What is target?. This is the real goal/objective in market
that marketer want to reach.
What percent of the population uses the product at all?
What percent uses your brand?
How does that compare to competing brands?
Which media reach the users of this category?
39

40. Targeting
o Evaluation:
- Profitability of the segment
- Attractiveness
- Growth rate
- Company objective
- Limitations
o Selection: rating the alternatives
40

41. Market Targeting
Specifying segments to pursue
Organization
Differentiated Marketing
The organization pursues
several different market
segments simultaneously
Market
4-41

42. Market Targeting
Specifying segments to pursue
Organization
Concentrated Marketing
The organization focuses
on a single market
segment
Market
4-42

43.  Undifferentiated market- mass marketing
43

44. Positioning
 Positioning has come to mean the process by which marketers
try to create an image or identity in the minds of their target
market for its product, brand, or organization. And what adds
value to the customers.
 Identifying the differences of the offer with the competitors offer
 Selecting the differences that have greater competitive
advantage:
- Attractiveness
- Distinctiveness
- Affordability
 Communicating such advantages effectively to the target
audience.
44

45.  Successful positioning
- Clarity
- Consistency
- Credibility
- Competitiveness
45

46.  Developing a positioning Strategy
 by Corporate Identity
 by Brand Endorsement
 By Product Attributes and/or Benefits
 By use, occasion and time
 By price-quality
 By Product Category
 Positioning by Product User
 By Competitor
 Repositioning
46

47. Unit 4
Consumer Motivation
47

48. Consumer Motivation
 Needs, Goals and their Interdependence
 Classifying Motives
 Rational Vs Emotional Motives
 Dynamic Nature of Motivation
 Needs are never completely Satisfied or permanently
 New needs emerge
 Success and Failure influence goals
 Substitute goals are formed
 Hierarchy of Needs
 Evaluation of Maslow’s Need Hierarchy Theory
 Freud’s Theory of Motivation
 Motivation Research
48

49. What is Motivation?
 Motivation refers to an activated state within a person
that leads to goal-directed behavior.
 It consists of the drives, urges, wishes, or desires that
initiate the sequence of events leading to a behavior.
49

50. Maslow’s Need Hierarchy
Self-Actualization
Self-Esteem Needs
Social Needs
Safety Needs
Physiological Needs
50

51. ‹#›

52. Unit 5
Personality and Consumer
Behavior
52

53. What is Personality ?
 The specific qualities, attributes, traits, factors, and
mannerisms that distinguish one individual from
other individuals is known as personality.
 In other words, "those inner psychological
characteristics that both determine and reflect how a
person responds to his or he environment.
53

54. Personality and Consumer
Behavior
Nature of Personality
 Three distinct properties of central importance are as
follows:-
Personality reflects individual differences.
 For e.g.: high in venture, low in venture
Personality is consistent and enduring .
 For e.g.: newly available brands may cause change
Personality can change.
 For e.g.: marriage, birth of a child, change in job
54

55. 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
55

56. Freudian Theory
 Id
 Warehouse of primitive or instinctual needs for which
individual seeks immediate satisfaction
 Superego
 Individual’s internal expression of society’s moral and
ethical codes of conduct
 Ego
 Individual’s conscious control that balances the
demands of the id and superego
56

57.  Neo-Freudian /Social Cultural Theory
 Sensing-thinking
 Sensing Feeling
 Intuiting-thinking
 Intuiting-Feeling
57

58. 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
58

59.  Role of Personality in understanding Consumer
Diversity
 Optimal Stimulation Level
 Need for Cognition
 Dogmatism
 Susceptibility to the Influence
 Self-Monitoring Behavior
 Emotion
 Major Dimensions are PAD(Pleasure, Arousal and
Dominance)
59

60. Trait Theory
Consumer Innovators And Non innovators
 Innovativeness  The degree to which
 Dogmatism consumers are receptive
 Social character
to new products, new
services, or new
 Need for uniqueness
practices
 Optimum stimulation
level
 Variety-novelty seeking
60

61. Trait Theory
Consumer Innovators And Noninnovators
 Innovativeness  A personality trait that
 Dogmatism reflects the degree of
 Social character
rigidity a person displays
toward the unfamiliar and
 Need for uniqueness
toward information that is
 Optimum stimulation contrary to his or her own
level established beliefs
 Variety-novelty seeking
61

62. Trait Theory
Consumer Innovators And Noninnovators
 Innovativeness  Ranges on a continuum for
 Dogmatism inner-directedness to other-
 Social character
directedness
 Inner-directedness
 Need for uniqueness
 rely on own values when
 Optimum stimulation level evaluating products
 Variety-novelty seeking  Innovators
 Other-directedness
 look to others
 less likely to be innovators
62

63. Trait Theory
Consumer Innovators And Noninnovators
 Innovativeness  Consumers who avoid
 Dogmatism appearing to conform to
 Social character
expectations or
standards of others
 Need for uniqueness
 Optimum stimulation
level
 Variety-novelty seeking
63

64. Trait Theory
Consumer Innovators And Noninnovators
 Innovativeness  A personality trait that
 Dogmatism measures the level or amount
 Social character
of novelty or complexity that
individuals seek in their
 Need for uniqueness
personal experiences
 Optimum stimulation level
 High OSL consumers tend to
 Variety-novelty seeking accept risky and novel
products more readily than
low OSL consumers.
64

65. Trait Theory
Consumer Innovators And Noninnovators
 Innovativeness  Measures a consumer’s
 Dogmatism degree of variety seeking
 Social character  Examples include:
 Need for uniqueness  Exploratory Purchase
Behavior
 Optimum stimulation
 Use Innovativeness
level
 Vicarious Exploration
 Variety-novelty seeking
65

66. Personality and Consumer
Behavior
 The Product Personality and Brand Personification
― Product Personality
― Value and Characteristic of Brand Personality
― Creating Brand Personality
 Self Image, vanity and Consumer Behaviour
 Actual Self
 Ideal Self
 Consumptions and Extended Self
66

67.  Unlike product-personality, consumers also subscribe
to the notion of brand personality; i.e. they attribute
various descriptive personality-like traits or
characteristics to different brands in a wide variety of
product categories.
 For e.g. Nike as athlete in all of us BMW as
performance driven Levi’s 501 jeans as dependable and
rugged
67

68. A Brand Personality Framework
68

69. Self & self-image
 One or multiple selves
 Make up of self image:-
 Actual self-image (how consumers in fact see them-selves)
 Ideal self-image (how consumers would like to see themselves)
 Social self-image (how consumers feel others see them)
 Ideal self-image (how consumers would like others to see them)
 Expected self-image (how consumers expect to see themselves at
some specified future time)
 Ought-to self image (consists of traits or characteristics that an
individual believes it is his or her duty to posses)
69

70. The extended self
 Possessions are considered extensions of the self. It has been
proposed that possessions can extend the self in a no. of ways:
 Actually, e.g. problem solving by computers
 Symbolically, e.g. receiving employee award for excellence
 Conferring status or rank, e.g. ownership of mastership
 Bestowing feelings of immortality, e.g. leaving valued possession
to young family members
 Endowing with magical powers, e.g. luck by chance.
70

71. Self and Self-Image
 Consumers have a variety of enduring images of
themselves
 These images are associated with personality in that
individuals consumption relates to self-image
71

72. This product
appeals to a
man’s self-
image.

73. The Marketing Concept
Issues Related to
Self and Self-Image
 One or multiple  A single consumer will act
selves differently in different
 Makeup of the self- situations or with different
image people
 We have a variety of social
 Extended self
roles
 Altering the self-  Marketers can target
image products to a particular
“self”
73

74. The Marketing Concept
Issues Related to
Self and Self-Image
 One or multiple selves  Contains traits, skills, habits,
 Makeup of the self -
possessions, relationships and
image way of behavior
 Developed through background,
 Extended self experience,and interaction with
 Altering the self- others
image  Consumers select products
congruent with this image
74

75. Different Self-Images
Actual Self-
Ideal Self-Image
Image
Ideal Social
Social Self-Image
Self-Image
Expected
Self-Image
75

76. The Marketing Concept
Issues Related to
Self and Self-Image
 One or multiple  Possessions can extend self in
selves a number of ways:
 Actually
 Makeup of the self-
 Symbolically
image  Conferring status or rank
 Extended self  Bestowing feelings of
 Altering the self- immortality
image  Endowing with magical
powers
76

77. Unit 6
Consumer Perception
77

78. Consumer Perception
 Absolute Threshold
 Differential Threshold
 Subliminal Perception
 Perceptual Selection
 Stimulus Factor
 Expectations
 Motives
 Selective Exposure
 Selective Attentions
 Adaptations
 Perceptual Vigilance and Defense
 Perceptual Blocking
78

79. ‹#›

80. Perception???
 It is the process by which we attach meaning to the
world around us.
 Our world consist of people, experiences & objects that
influence us
 It is unique in each person
 Process
- Selection
- Organising
- Interpretation
80

81.  We become aware of the world around us through our
senses:
- Sight
- Smell
- Sound
- Taste
- touch
81

82.  Selection
- It is a first stage in process
- In this stage we select stimuli to which we attend
- We select stimuli through our senses
82

83.  Organizing
- 2nd Stage
- We mentally arrange the stimuli so we can understand &
make sense out of it.
 Interpretation
- 3rd stage
- We attach meaning to the stimuli
- Interpretations are based on our values, needs, beliefs,
experiences, expectations, involvement & other personal
factors.
83

84. Absolute and differential threshold,
subliminal perception.
 Absolute threshold is the smallest detectable level of
a stimulus
 The person can detect Difference between something
and nothing is that persons AT
 Sensatory adaption is a concern of many advertisers.
84

85. 85

86. Differential Threshold
 The Minimal difference that can be detected between
two similar stimuli is called Differential Threshold or
JND
 Examples in Video
86

87. Subliminal Perception
 People can perceive stimuli without being conscious
aware that they are doing so.
 Stimuli that are too weak or too brief to be consciously
seen or heard may nevertheless be strong enough to be
perceived by one or more receptor cells this process is
called subliminal perception.
87

88. Product positioning
 Umbrella positioning
 Positioning against competition
 Based on specific benefits
 Finding an unowned position
88

89. Consumer Perception
 Perceptual Organization
 Figures and Ground
 Grouping
 Closures
 Interpretations of Stimuli
 Images are Important to Consumer
 Perceived Price
 Quality & Risk
 Consumer Risk Perceptions
 How Consumers Deal with Risk
 Manufacture’s Image
89

90. Perceived price, quality and risk
 Consumer perceives price as-high, low, fair
 Price has strong influences on both purchase intention
& satisfaction.
 Reference price
 Acquisition-transaction utility
 Tensile price
 Objective price claims
90

91. Quality
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibility
 Satisfaction
91

92. Risk
 Functional risk
 Physical risk
 Financial risk
 Social risk
 Time risk
92

93. How to handle risk
 Consumer seek information
 Consumer are brand loyal
 Consumer select a brand image
 Consumer rely on store image
 Consumers seek reassurance.
93

94. Shortcuts in judging others/barriers to perception
 Selective Perception :
People selectively interpret what they see on the basis of their
interests, background, experience and attitudes.
 Halo Effect :
Drawing a general impressions about an individual on the basis of a
single characteristics.
94

95.  Contrast Effect :
Evaluation of a person’s characteristics that are effected by comparisons
with other people recently encountered who rank higher or lower on the
same characteristics.
 First-impression error
 Projection :
Attributing one's own characteristics to other people.
 Stereotyping :
Judging someone on the basis of one’s perception of the group to which that
persons belongs.
95

96. Unit 7
Consumer Learning
96

97.  Elements of consumer learning
- Motivation
- Cues (price, ad, styling, packaging , store displays)
- Response
- Reinforcement
97

98. ‹#›

99. Consumer Learning
 Behavioral Learning Theories
 Classical Conditioning
 Repetition
 Stimulus Generalization
 Stimulus Discrimination
 Instrumental Conditioning
 Reinforcement
 Cognitive Learning Theory
 Recognition and Recall
 Attitudinal & Behavioral Measures of Brand Loyalty
99

100. Behavioral learning theories/stimulus response
theories.
 Classical conditioning
- Repetition-advertising wear out & substantive variations
- Stimulus generalization-same response for different stimuli, me-
too product succeeded in the market.
- Product line extension, product form extension,
- Stimulus discrimination-positioning, product differentiation
 Operant/instrumental conditioning
- Reinforcement of behaviour (negative & positive).
- Forgetting
 Modeling/vicarious
100

101. ‹#›

102. Cognitive learning theories
Information processing
 Structure of memory
- Sensory store
- Short-term store(working memory)
- Long-term store
 Retention
 Retrieval
 Interference
102

103. Unit 8
Attitude Formation & Change
103

104. Attitude Formation & Change
 Meaning and Definitions of attitudes
 Characteristics of Attitudes
 Functions of Attitudes
 Utilitarian
 Value Expressive
 Ego-Defensive
 Knowledge
 Components of Attitudes
 Cognitive Components
 Affective Components
 Conative Components
104

105. Attitude Formation & Change
 Attitude Formation
 Cognitive Dissonance Theory
 Attribution Theory
105

106. What Are Attitudes?
A learned predisposition to behave in a
consistently favorable or unfavorable manner
with respect to a given object.
Attitude is function of evaluation of product-
specific beliefs.
106

107. This attempts to
change the
attitude toward
calcium in a soft
drink situation.

108. The attitude “object”
It include specific consumption-or marketing related
concepts such as product, product category ,brand, service,
possessions, product use, price, package… etc.
Examples:
Consumer attitude towards online shopping
Consumer attitude towards mobile services
108

109. Attitudes characteristics
Attitudes are a learned predisposition
(tendency)
That means attitudes are formed as a result of prior
direct experience with the object, word-of-mouth,
information acquired from others, or from
advertising.
109

110. Attitudes characteristics
Attitudes have consistency
Attitudes are relatively consistent with the
behavior they reflect.
110

111. Attitudes characteristics
Attitudes occur within a situation
Events or circumstances that, at a particular
point in time, influence the relationship
between an attitude and behavior.
111

112. Structural Models of Attitudes
 Tricomponent Attitude Model
 Multiattribute Attitude Models
 The Trying-to-Consume Model
 Attitude-Toward-the-Ad Model
112

113. A Simple Representation of the
Tricomponent Attitude Model
Affect : A consumer’s
emotions or feelings about
a particular product or
brand
Conation(Action): The
likelihood or tendency that
an individual will
undertake a specific action
or behave in a particular
way with regard to the
attitude object
113

114. Cognition(belief):
 Cognition or thoughts about brands are also called as
beliefs (expectations of what something is or is not, or
what something will do or will not do). Statements of
belief connect an object ( person, brand) to an
attribute or a benefit.
114

115. THREE COMPONENT MODEL OF ATTITUDE
 An Illustration
DHL for shipping Small Package
 Attitude Component – Cognition (Beliefs)
 DHL is very reliable in its service
 DHL is more economical than other package-carrier services
 DHL is not able to customize to customer needs
 Attitude Component - Affect (Feelings)
 When I ship by DHL I feel secure
 I am very happy to be using DHL for my services
 I don’t care if DHL goes out of business
 Attitude Component – Conations (Actions)
 I use DHL for my shipping needs than others
 I often recommend DHL to my business associates
 I am looking for alternative carriers.
115

116. Shopping For Airline Tickets On The Internet.
Attitude Component – Cognition (Beliefs)
Shopping on Net is very convenient for my airline tickets
You can get the cheapest airline fares by shopping in internet
Internet based travel agents provide only very limited travel options
Attitude Component - Affect (Feelings)
Shopping on the internet is considered to be------- (Tick whatever you
feel appropriate).(a) Cool (b) Boring (c)Enjoyable (d) Confusing (e)
Terrible (f) Trendy
Attitude Component – Conations (Actions)
I have used the internet for my travel airline tickets recently
I often search the internet for planning my travel itinerary
I will not recommend internet to my friends for booking airline tickets.
116

117. Tri-component Attitude Model
The Cognitive component:
Knowledge and perceptions that area acquired by combinations of
direct experience with the object or through related information
from various sources.
Evaluative scale used to attitude towards Dove moisturizing lotion
- Compared to other moisturizing lotions, Dove is
Moisturizing effect Good ____ ____ _____ ______ Bad
Cleansing effect Positive ____ ____ ____ _____ Negative
Fragrance Pleasant _____ ____ _____ _____ Unpleasant
Packaging /product Appealing _____ _______ ______Unappealing
117

118. The Affective Component
 The consumers emotions or feelings towards the object.
 Measuring consumers feelings and emotions with regard to Dove Moist.
Lotion –
How your skin felt after using Dove for 30 days.
 I feel Relaxed (Very) ____ ____ ____ Not atall
 I feel Refreshed ____ ____ ___ ____ Not at all
 I feel Younger ____ ___ ____ ____ Not at all
118

119. The Conative component
 It is about the likelihood or tendency that an individual will undertake
a specific action or behave in a particular way to the particular object.
 According to some interpretations, the conative component may
include the actual behavior.
 In marketing and consumer research conative component is frequently
treated as an expression of consumers intent to purchase
119

120.  Intention To Buy Scales (Examples)
Which of the following best describes the chance that you willbuy Dove
Lotion the next time you buy a skin care product.
 ___I will definitely buy it.
 ___ I Probably will buy it
 ___ I am uncertain whether I will buy it.
 ___I probably will not buy it
 ___ I certainly will not buy
How likely are you to buy Dove Lotion in next three months
 __ Very Likely
 ___ Likely
 __ Unlikely
 ___ Very unlikely
120

121. Multiattribute Attitude Models
Attitude models that examine the composition of
consumer attitudes in terms of selected product attributes
or beliefs
 Attitude-towards-object model
 Attitude-towards-behaviour model
 Theory of reasoned action model
 Theory of trying to consume model
 Attitude towards the ad-model
121

122. ‹#›

123. Multiattribute Attitude Models
 Multi attribute models portray consumers attitude with regard to an
attitude(product / service 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.
The Attitude Toward Object Model
 Especially suitable for measuring attitudes toward a product category
or specific brands.
 Consumer attitude toward a product (or specific brands of the
category) is a function of the presence (/ absence) and evaluation
of certain product specific beliefs and / or attributes
 Consumers generally have favorable attitude toward those brands that
they believe to have an adequate level of attributes that they consider
as positive
 And they have an unfavourable attitude toward those brands which
they consider not to have required level of desired attributes or have
too many negative attributes.
123

124. The attitude-toward-behavior model
 Is the attitude toward behaving or acting with respect to an
object, rather than the attitude toward the object
 Rahul’s attitude toward the act of purchasing a
BMW(attitude toward the behaviour)reveals more about
the potential act of purchasing than just simply knowing
his attitude toward expensive German cars or specifically
BMW.
 The consumer might have a positive attitude toward BMW
but is negative about his prospects for purchasing such an
expensive model
124

125. The Trying-to-Consume Model
 An attitude theory designed to account for
the many cases where the action or outcome
is not certain but instead reflects the
consumer’s attempt to consume (or
purchase).
125

126. Attitude-toward-the-Ad Model
 Very specific to understanding the impact of
advertising on consumer attitudes about a particular
product or brand.
 Exposure to advertising directly affects beliefs about
the ad and brand, and feelings about the ad.
 Exposure to advertising indirectly affects attitude
toward the brand and attitude toward the ad.
126

127. Attitude-Toward-the-Ad Model
Source: Consumer Behavior, tenth ed., SCHIFFMAN & KANUK
127

128. Theory-of-reasoned-action model
• Includes cognitive,
affective, and
conative
components
• Includes subjective
norms in addition to
attitude
128

129. How Can Marketers
Change Attitudes?
 Alter components of multiattribute model
 Increase belief ratings for the brand
 Increase the importance of a key attribute
 Decrease the importance of a weak attribute
 Add an entirely new attribute
 Decrease belief ratings for competitive brands
129

130. Issues in Attitude Formation
 How attitudes are learned
 Conditioning and experience
 Knowledge and beliefs
 Sources of influence on attitude formation
 Personal experience
 Influence of family
 Direct marketing and mass media
 Personality factors
130

131. Strategies of Attitude Changes
1. Changing the Basic Motivational Function
2. Associating the Product with an special
Group or Event
3. Resolving Two Conflicting Attitudes
4. Altering Components of the Multiattribute
Model(change the evaluation of
attributes), changing brand beliefs, adding
an attribute)
5. Changing Beliefs about Competitors’
Brands
131

132. Changing the Basic Motivational Function
 Utilitarian
 Value-expressive
 Ego-defensive
 Knowledge
132

133. Cognitive Dissonance Theory
 Holds that discomfort or dissonance occurs when a
consumer holds conflicting thoughts about a belief
or an attitude object.
 Post-purchase Dissonance
 Cognitive dissonance that occurs after a consumer has
made a purchase commitment
133

134. Attribution Theory
 Examines how people assign casualty to events and
form or alter their attitudes as an outcome of
assessing their own or other people’s behavior.
 Examples
 Self-perception Theory
 Attribution toward others
134

135. Self-Perception Theory
 Consumers are likely to accept credit for successful
outcomes (internal attribution) and to blame
other persons or products for failure (external
attribution).
 Foot-In-The-Door Technique:Foot-in-the-door
technique (FITD) is a compliance tactic that
involves getting a person to agree to a large request
by first setting them up by having that person
agree to a modest request.
135

136. Unit 9
Communication Process
136

137. ‹#›

138. Communication Process
 Communication Process
 Barriers to Communication
 Types of Communications Systems
 Interpersonal Communication
 Impersonal Communication
 Persuasive Communication
 Communication Feedback
138

139. Communication
139

140. Communication
 Sender / Encoder –
 Sender / Encoder is a person who sends the message. A
sender makes use of symbols (words or graphic or
visual aids) to convey the message and produce the
required response.
 Can be formal /informal
 Word of mouth.
140

141.  Recipient / Decoder - Recipient / Decoder is a person for
whom the message is intended / aimed / targeted. The
degree to which the decoder understands the message is
dependent upon various factors such as knowledge of
recipient, their responsiveness to the message, and the
reliance of encoder on decoder.
 Receiver of formal communication is likely to be a
customer.
 Marketers communication are intermediaries are
wholesalers, distributors, & retailers.
 Unintended audiences are not targeted but important are
shareholders, creditors, suppliers, employees
141

142.  Medium/communication channel - Medium is a
means used to exchange / transmit the message.
 The sender must choose an appropriate medium for
transmitting the message else the message might not
be conveyed to the desired recipients.
 The choice of appropriate medium of communication
is essential for making the message effective and
correctly interpreted by the recipient.
142

143.  Message - Message is a key idea that the sender wants
to communicate.
 It is a sign that elicits the response of recipient.
Communication process begins with deciding about
the message to be conveyed. It must be ensured that
the main objective of the message is clear.
 Can be verbal(spoken/written) /non-verbal(photo or
symbol)
143

144.  Feedback - Feedback is the main component of
communication process as it permits the sender to
analyze the efficacy of the message.
 It helps the sender in confirming the correct
interpretation of message by the decoder.
 Feedback may be verbal (through words) or non-
verbal (in form of smiles, sighs, etc.). It may take
written form also in form of memos, reports, etc.
 Prompt feedback permits sender to change
144

145. Basic Communication Model
145

146. Integrated communication strategy
 To make an assessment of the relative importance that
member of audience place on certain categories of
information.
 To select appropriate communication vehicle
 To assess the marketer’s position in relation to
competing sources.
 To determine communication technique & allocate
resources.
146

147. Barriers to communication
 Selective attention
 Selective distortion
 Selective recall
 Barriers at source
 In encoding
 Transmission
 Decoding
- In evaluation of consumer needs
- Have communication objective set to reflect consumer
needs?
- Has there been proper encoding of product needs?
147

148. Types of communication systems
 Interpersonal communication
 Impersonal communication
 Persuasive communication
148

149. The Message Initiator (source)
Issues with Credibility
 Credibility of Informal  Includes word of mouth
Sources  IS such as friends,
 Credibility of Formal neighbors & relatives.
Sources  These sources also
 Credibility of
called opinion leaders
 Psychological profit
Spokespersons and
 Informal sources may
Endorsers
not always be credible
 Message Credibility
149

150. The Message Initiator (source)
Issues with Credibility
 Credibility of Informal  Neutral sources have the
Sources greatest credibility
 Credibility of Formal  Such as consumer reports or
Sources newspaper
 Commercial sources:
 Credibility of
Spokespersons and manufacturers, service
Endorsers companies, FI’s, retailers.
 Source credibility judged on
 Message Credibility past performance,
reputation, service, quality,
spokesperson image,
retailers, social responsibility
 Institutional advertising used
150
to promote favorable

151. The Message Initiator (source)
Issues with Credibility
 Credibility of Informal  Effectiveness related to:
Sources  The message
 Synergy between endorser
 Credibility of Formal and type of product
Sources  Demographic
 Credibility of characteristics of endorser
Spokespersons and  Endorsement wording
Endorsers
 Message Credibility
151

152. This ad has
strong synergy
between the
endorser and the
type of product.
152

153. The Message Initiator (source)
Issues with Credibility
 Credibility of Informal  Credibility of retailers
Sources  Reputation of the
 Credibility of Formal medium that carries the
Sources ad
 Consumer’s previous
 Credibility of
Spokespersons and experience with product
Endorsers
 Message Credibility
153

154. Unit 10
Factors Influencing Consumer
Behavior
154

155. Factors Influencing Consumer Behavior
 Reference Group Influences on Consumer
 Informational Influence
 Comparative Influence
 Normative Influence
 Celebrities
 Family
 Friends
 Impact of Social Class
 Nature of Social Class
 Symbol of Status
155

156.  Culture Subculture and Cross Cultural Factors on the
Consumer Behavior
 Cross-cultural Influence
 Aspect of Sub-culture
 Religious Sub-Culture
 Regional Sub Culture
 Age Sub-Culture
156

157. Unit 11
Opinion Leadership
157

158. Opinion Leadership
 Characteristics
 Process of Opinion Leadership
 Multi Step Communication flow
 Motivation Behind Opinion Leadership
 Diffusion and Adoption Process of Innovations
 Types Of Innovations
 Dynamically Continuous Innovation
 Discontinuous innovation
 Functional innovation
158

159. Opinion Leadership
 Diffusion Process
 Adoption decision
 Stages in Adoption Process( Awareness- Knowledge-
Evaluation- Trial-Adoption)
 Barriers to the Adoption of Innovation
 Value Barrier
 Usage Barrier
 Risk Barrier
159

160. Opinion Leadership
 Factors affection the Diffusion of Innovation
 Types of Target Group
 Number of people involved in the Decision Making
 Extent of Marketing Efforts Involved
 Need Fulfillment
 Compatibility
 Relative Advantage
 Complexity
 Observability
 Triability
 Perceived Risk
160

161. Opinion Leadership
 Profile of Consumer Innovators
 Time of Adoptions
 Innovators
 Early Adopters
 The Early Majority
 The Late Majority
 Laggards
 Adopters and Non-Adopters
 Rate of Diffusion
 Role of communication In the Diffusion Process
 Word-of –mouth Influence across Groups
 Culture Context and Diffusion of Innovation
161

162. Adopter category Definition
Innovators are the first individuals to adopt an innovation.
Innovators are willing to take risks, youngest in age, have the highest
social class, have great financial lucidity, very social and have closest
Innovators
contact to scientific sources and interaction with other innovators.
Risk tolerance has them adopting technologies which may ultimately
fail. Financial resources help absorb these failures
This is the second fastest category of individuals who adopt an
innovation.
These individuals have the highest degree of opinion leadership
among the other adopter categories.
Early adopters are typically younger in age, have a higher social status,
Early Adopters
have more financial lucidity, advanced education, and are more
socially forward than late adopters. More discrete in adoption choices
than innovators.
Realize judicious choice of adoption will help them maintain central
communication position
162

163. Individuals in this category adopt an innovation after a varying
degree of time.
This time of adoption is significantly longer than the innovators
Early Majority and early adopters.
Early Majority tend to be slower in the adoption process, have
above average social status, contact with early adopters, and
seldom hold positions of opinion leadership in a system
Individuals in this category will adopt an innovation after the
average member of the society.
These individuals approach an innovation with a high degree of
skepticism and after the majority of society has adopted the
Late Majority innovation.
Late Majority are typically skeptical about an innovation, have
below average social status, very little financial lucidity, in
contact with others in late majority and early majority, very little
opinion leadership.
163

164. Individuals in this category are the last to adopt an innovation.
Unlike some of the previous categories, individuals in this
Laggards category show little to no opinion leadership.
Be oldest of all other adopters, in contact with only family and
close friends, very little to no opinion leadership.
164

165. Unit 12
Consumer Decision Making
Process
165

166. ‹#›

167. Consumer Decision Making Process
 Types of Decision Making
 Routinised Response
 Limited Decision Making
 Extended Decision Making
 Models of Consumer Decision Making
 Howard-Sheth Model
 Engel-Kollat-Blackwell Model (Decision Process)
 Need or Problem Recognition- Information Search-Evaluation of
Alternatives – Choice –Outcome
 Nicosia Model
 Consumer Gifting Behavior
 Relationship Marketing
167

168. Relationship marketing
Definition
 Marketing activities that are aimed at developing and
managing trusting and long-term relationships with
larger customers.
 In relationship marketing, customer profile, buying
patterns, and history of contacts are maintained in a
sales database, and an account executive is assigned to
one or more major customers to fulfill their needs and
maintain the relationship.
168

169. 169