CBMC UNIT 2
Individual determinants of consumer behavior
 Motivation,
 Personality and Self Concept,
 Consumer Perception,
 Consumer Learning,
 Consumer Attitude
Motivation
 Driving force within individuals that impels them to action.
 Innate needs: we are born with these, also called physiological needs. Ex.
Food, water, shelter, clothes.
 Acquired needs: we develop after birth, also called psychological needs. Ex.
Love, acceptance, esteem.
Goals
 Behavior is always goal oriented. It’s the outcome of motivation.
 Goal selection is either based on cognition or previous learning/experience.
 Generic or product specific
 Positive or negative
Failure to achieve a goal
 Frustration
 Fight (substitute) or flight (defense)
Personality
Psychological characteristics that determine how a person responds to his or her
environment.
The 3 theories
 Psychoanalytic theory: human drives are largely unconscious in nature and
serve to motivate many consumer actions.
 Neo-Freudian theory: talks about the fundamental role of social relationships
in the formation and development of personality.
 Trait theory: individuals possess innate psychological traits and these traits
can be measured.
Brands also have personalities
 Individuals buy brands that are extension of their personality.
 Social media
Perception
Process by which individuals select, organize, and interpret stimuli into a
meaningful and coherent picture of the world
Organization of perceptions by Consumers
According to Getstalt psychology: figure and ground, grouping and closure.
Stereotypes
Halo effect

The perceived image of a brand is more important than the actual physical
characteristics of product.
Perception of risk
1. Functional risk
2. Physical risk
3. Financial risk
4. Social risk
5. Psychological risk
6. Time risk
How risk is handled?
1. Seek information
2. They are brand loyal
3. Select the product on the basis of brand
4. Image of the POS
5. Buy most expensive model
6. Seek reassurance
Learning
Process by which individuals acquire the purchase and consumption knowledge and
experience they apply to future related behavior.
Most of the learning is incidental.
Process:
Motivation, cues, response and reinforcement.
How consumers learn?
 Behavioral theories: observable responses
 Cognitive theories: mental processing
Attitude
Behavior in a consistently favorable or unfavorable way with respect to a given
object. Ex. A product category, a brand, a service, an advertisement, a web site or a
retail establishment.
Models to understand and measure consumer attitude
 Tricomponent attitude model
 Multiattribute attitude model
 Trying to consume attitude model
 Attitude toward the ad model
Tricomponent attitude model
Consists of three parts: cognitive, affective and conative component
Cognitive component : captures consumer’s knowledge and perceptions about
product and services
Affective component : focuses on consumer’s emotions or feelings with respect to a
particular product or service
Conative component: an expression of the consumer’s intention to buy
Multiattribute attitude model
1. Attitude toward object
2. Attitude toward behavior

3. Theory of reasoned action
Trying to consume attitude model
Designed to account for the many cases in which action or outcome is not certain
Attitude towards the ad model
Examines the influence of advertisements on the consumer’s attitudes toward the
brand
Attitude formation
Strategies of attitude change
1. Changing the basic motivational function
2. Associating the attitude object with a specific group or event
3. Relating the attitude object to conflicting attitudes
4. Changing beliefs about competitors brands
5. The elaboration model
Consumer Decision Process
Process by which a person is required to make a choice from various alternative
options is referred as consumer decision making
Decision making process
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase experience
Factors influencing decision making
Marketing Mix Influences Socio-cultural influences
Product Personal Influence
Price Reference Group
Promotion Family
Place Social Class
Culture & sub culture
Psychological Influence Situational Influences
Motivation Purchase task
Personality Social surroundings
Perception Other surroundings
Learning Temporal effect
Attitudes
Lifestyle
Consumer Behavior Models
Relevance
1. The Nicosia Model
 Message exposure causes consumer’s attitude formation

 Consumer’s information search and evaluation of alternatives
 Act of purchase
 Feedback of the consumer
Howard Sheth Model
Three possible kind of consumer problem solving:
 Extensive Problem Solving
 Limited problem solving
 Routinized response behavior
Extensive Problem Solving
 Consumer’s knowledge about brand in limited
 Seeks information and alternatives
 Ads need to be informative
Limited problem solving
 Knowledge only of a few brands
 Not able to assess brand difference
 Ads here play a role
Routinized response behavior
 Knowledge and beliefs about certain brands are well established
 Choice is confined and made by habit
The Engel-Kollat-Blackwell model
 Information input
 Information processing
 Decision making process
 External variables operating in the background
Organizational buying behavior
 Consumable and non consumable items
 Price, quality and performance
Characteristics
 Group Based decision making
 Technical Knowledge base
 Few buyers
 Ticket size is huge
 Close supplier-buyer relationship
 Fluctuating demand
 Direct purchasing
 Leasing
Organizational buying process
1. Problem recognition
2. Product specification
3. Product-vendor search
4. Product & vendor evaluation
5. Product and vendor selection

6. Performance evaluation
Random notes
 Government organizations purchase through tenders
 No. of individuals involved
 Its secondary buying most of the times
 Group buying
 Negotiations
 Its need based
 A proper process exists
Factors influencing organizational
 Organizational Culture: decisions, risk handling, innovation & change
 Environmental influences: Physical, technology, economic, political, legal
 Interpersonal factors
 Individual factors: motivation, perception, Learning