2. The sum total of learned beliefs,values,and customs that serve
to direct the consumer behavior of members of a particular
society.

3.  Culture is a learned response.
 Culture includes inculcated values.
 Culture is a social phenomenon.
 Culture is gratifying and continues for a long time.
 Cultures are similar and yet different.
 Culture prescribes the ideal standards of behavior.

4.  Enculturation: the learning of one’s own culture.
 Acculturation: The learning of a new or foreign culture.
 Language and symbols: Marketers must choose
appropriate symbols in advertising.
 Ritual: A ritual is a type of symbolic activity
consisting of a series of steps (multiple
behavior) occurring in a fixed sequence and
repeated over time.
 Rituals extend over the human life cycle
 Marketers realize that rituals often involve
products.

5. Influence of culture
1- ON cultural values systems.
- Ethics-good, moral, immoral.
- Aesthetics-beautiful, ugly, pleasant, unpleasant.
- Doctrine- political, social, ideological.

6. 2-Culture exist & reveals at different levels.
- Supranational level- Reflects different dimensions of
multiple cultures/ different society of nations
- National level- dimensions of culture of country and
national characters.
- Group level- Held with in a country with various sub-
divisions of the society like family, reference group, & other
closely held group.

8.  Culture satisfies needs:
-culture exists to satisfy the need of the people within society.
-Satisfy needs of people by guidance, suggestion, Standard
practices, physiological, personal, and social needs etc.
-Ex. food habits, dress code, worship, rituals about birth, death
& social occasions.
-culture is generally consistent & enduring & followed as long as
it satisfies needs of people.
-It changed/replaced as and when it does not solve its very
purpose.

9.  Culture is learned:
-Culture is learned at childhood itself from the social environment.
Often we are children play and enact the real life situation of social
& culture ritual.
 Three distinct forms of culture learning.
◦Formal learning: what the elder family member teach the
younger one how to behave.
◦Informal learning: what the child learns primarily by
imitating the behavior of selected others such as family, friend,
or TV heroes.
◦Technical learning: In which teacher instruct the child in
an educational environment about what should be done, how it
should be done, and why it should be done.

10.  Sharing of culture: Culture is transferred
through family, schools, houses of worship, and media
 Culture is dynamic
- Change occur due to Technology, Migration,
Population shift, Resource shortages, wars, Changing
values etc.
- Also known as ‘ TREND’ . ( Ex, Fashion, Automobile,
Foods, Entertainment, Lifestyles, women work outside
the home are few examples.

11. Diversity by Indian Railways Indian village by
Amul
Emerging Culture Ritual &
Tradition

12.  Measurement of culture:
The attitude measurement techniques used by social
psychologists and sociologists are relatively popular tools in
study of culture.
1-content analysis
2-consumer fieldwork
3-value measurement instruments.

13. Content analysis: A method for systematically analyzing the
content of verbal and or pictorial communication. The method is
frequently used to determine prevailing social values of a society.
Consumer field work : A culture measurement technique that
takes place within a natural environment that focuses on observing
behavior.(sometimes without the subjects awareness).
Value measurement survey instruments
A variety of value measurement instruments have been
used in consumer behavior studies.
Rokeach value survey: Two different list of 18 values
( Terminal & Instrumental) are studied.
 Terminal values: The first part consists of 18 terminal value item. Eg.
Personal goals, Freedom, Equality, social recognition.
 Instrument values: The second part consists of 18 instrumental value
item. EX. Ambition, responsibility, Intellect, etc.

14.  List of Values (LOV):
A value measurement instrument that asks consumers to
identify their two most important values from a nine-value
list that is based on the terminal values of the Rokeach
Value Survey
 Values and Lifestyles (VALS):
A value measurement based on two categories: self-
definition and resources

15.  Family orientation
 Saving orientation
 Festivities
 Shopping as a ritual
 Mythology
 Food Habits

16.  Achievement orientation
 Work Ethic
 Material Success
 Middle of the road approach to tradition
 Impulse Gratification
 Use of hi-tech products

17.  Sub-culture is defined as a distinct cultural
group that exists as an identifiable segment within
a larger, more complex society.
Ex. Nationality, social class, Religion, Language,
Age, Gender.

18. Nationality subculture: with in a particular country like in
India-
 Anglo Indians-A person of mixed English and Indian descent
 Parsees-The Parsis came to India sometime around the 10th
century A.D. to escape Arab persecution in Persia which began in
the 7th century.
 Mughals- Mogul Muslim empire in India, 1526–1857. The
dynasty was founded by Babur .who came from Farghana, now in
Uzbekistan.
 Pathans- Pathans came from Afghanistan As a vendor and
businessmen. They had living in community different area in
India.

19.  Religious sub-culture : Based on different faiths, Beliefs, &
Religion.
Like. Muslims
Sikhs
Christians
Hindus
Buddhists
 Geographic & Religious sub-culture;
Ex. South Indians, North Indians, North-east Indians.
 Racial sub-culture: In Caucasians, Africans, Asian, American
& American Indians.

20.  Age sub-culture :
Gender as subculture- All societies have assigned
different traits & roles for Males females, like breadwinners
for Males & Homemakers for females etc.
Generation
Y market
Generation
X market
Baby Boomer
market
Older
Customer

21.  Marketers focus on satisfying traditional tastes & preferences.
 Companies are now focusing more on Age sub-culture & gender
subculture.
 For Ex.
1) Lifestyle
2) Levies
3) Automobiles like TVS- Scotty & Bajaj-pulsar etc.

22. Demographics,
Psychographics, and
Personality

23. Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles

24. Analyzing and Predicting
Consumer Behavior
Demographics is the size, structure,
and distribution of a population
Marketers use demographic analysis
as market segment descriptors and in
trend analysis

25. Demographic Analysis to
Predict Consumer Behavior
Consumer analysts use demo-
graphic trends to predict changes
in demand for and consumption of
specific products and services
Demographic analysis provides
information for social policy

26. Demographic Analysis and
Social Policy
Demographics used in analyzing
policy questions related to the
aggregate performance of
marketing in society
(macromarketing)

27. Demographic Analysis to
Predict Consumer Behavior
Consumer analysts use demo-
graphic trends to predict changes
in demand for and consumption of
specific products and services
Demographic analysis provides
information for social policy
Industrial demand is ultimately
derived from consumer demand

28. Demographic and
Industrial Demand
Analysis of demographic trends is
important for industrial and
business-to-business marketing
In an industrial firm, you must
understand not only the
customers’ minds, but also the
minds of the customers’
customers

29. Demographic Analysis to
Predict Consumer Behavior
Demographics
Changing Structure of Markets
Geographic Factors
Economic Resources
Global Markets

30. Changing Structure of
Consumer Markets
Market analysis requires
information about
people with needs
ability to buy
willingness to buy
authority to buy

31. Changing Structure of
Consumer Markets
How many people will there be?
birthrate
natural increase
fertility rate
total fertility rate
population momentum

32. Changing Structure of
Consumer Markets
Birthrate: number of live births per
1,000 population in a given year
Natural increase: surplus of births
over death in a given period
Fertility rate: number of live births
per 1,000 women of childbearing
age (15 to 44 years)

33. Changing Structure of
Consumer Markets
Total fertility rate: average number
of children that would be born
alive to a woman during her
lifetime if she were to pass through
all of her childbearing years
conforming to age-specific fertility
rates of a given year

34. Changing Structure of
Consumer Markets
Population momentum: future
growth of any population will be
influenced by its present age
distribution

35. Changing Structure of
Consumer Markets
Factors affecting birthrates:
Age distribution of population
Family structure
Social attitudes toward family/children
Technology
Increasing life expectancy
Immigration represents about 30%
of annual growth in United States

36. Children As Consumers
Projected increase in number of
young children between 2000 and
2010
The importance of children as
consumers increases even more,
with the higher proportion of first-
order babies generating higher
demand for quality products and
services

37. Children As Consumers
Most parents do most of the buying
Children often involved in family
purchasing decisions
Children often have their own
ability to buy

38. Generation Y
Born in the 1980s and early 1990s
with 72 million members
Greater need for peer acceptance,
which often guides product and
brand choice
More likely to switch brands quicker
than other segments
Teens like the social aspects of
shopping with friends

39. Appealing to Generation Y

40. Generation X (Young Adults)
Segment of 25-to-34 year olds is
declining but will have a slight
increase with the inclusion of older
Gen Y consumers
Need to buy products to set up
households and for young children
With many needs and greater
financial restraints, they often shop
at value-oriented retailers

41. Baby Boomers or Muppies
This group (45 to 64 years) is
projected to grow by 19 million by
2010
Good market for luxury travel, spas,
health clubs, cosmetics, salons, diet
plans foods, and health foods
Group represents the greatest share
of the workforce, the greatest share
of income, and the greatest share of
voting power, and political influence

42. Young Again Market
Also referred to as mature market,
seniors, and elderly
These segments are expected to
grow substantially
Despite advanced chronologic age,
many in this segment feel, think,
and buy young

43. Young Again Market
Cognitive age: the age one
perceives one’s self to be
Cognitive age is measured in
terms of how people feel and act,
express interests, and perceive
their looks
Can be used with chronologic age
to better target segments, create
more effective content, and select
the most efficient media channels

44. Young Again Market
Important segmentation variables
for this group include health,
activity level, discretionary time,
engagement in society, and gender
Communicating with this segment
often requires alteration of
traditional messages and materials
- larger type and bright colors
- newspapers and AM radio
- sensitive to revealing their age

45. Macromarketing to an Aging
Population
The aging populations of the United
States, Japan, Canada, and Europe
will have enormous effects on
macromarketing and social policy
Younger consumers may have
considerably less financial
resources at their disposal due to
future contributions to Social
Security and Medicare

46. Who is India's Gen X?
In India, Gen X, Gen Y and Gen Z are terms used liberally,
interchangeably and well... incorrectly. In fact, all three are used as some
sort of an umbrella term to define the traits pertaining to today's youth -
irreverential, tech-savvy and modern. Compared to that, for the West,
Generation X would include a graying George Clooney or ex-President of
US, Bill Clinton, Generation Y would be Brad 'dad of 6 children' Pitt while
Lady Gaga would fall in the late Gen Y list, and Gen Z would be teeny-
bopper singer Justin Bieber. It's not surprising that Gen X, Y, Z are
incomprehensible to most Indians and are mere euphemisms for the
country's youth in general. According to some experts, we probably
don't even have a Gen X or Y or even Z, while others conclude that even
if we do use these terms to define our country's people, we might have
to Indian-ise them a little, restrict them to its small urban middle-class
population and even then, we won't reach a consensus on what really is
India's Gen X, Y, Z. Despite this, TOI tries to probe and figure out these
terms, and what they mean in the Indian context.
The Western definition Gen X: The term, though coined in the 1950s,
became synonymous with children of the 60s and the 70s after author
Douglas Coupland used it in his novel, "Generation X: Tales for an
Accelerated Culture" in 1991. It mainly pertained to those born in the
1960s-70. Including those born in the post WW2 era, this generation
include the rockers, the punk culture, hip hop, MTV, and the
presidencies of Reagan, Clinton and Bush, set against the backdrop of
financial insecurity. It was also the generation of 'home computers‘.

47.  Gen Y: This generation is a bit of a grey area even in the West and straddles both
Generation X and Z. This is the era when Internet was not just growing, but defining an
entire generation that included all those born from 1980s to 1990s. Often called the
Millenials, this generation was defined by its liberality in the policial arena, a certain
narcissism in general and a penchance towards neo-music forms like electronic,
dubstep and metal.
 Gen Z: From now to early 1990s, this is the generation that will never know what it was
like to be without an internet connection or a cell phone.
 The desi definition
 Adman Prahlad Kakkar agrees that the above definitions don't apply to Indians but says
that we do indeed have generations X, Y Z and maybe some more... And this is how
they define the different Indian demographics in the ad-world.
 Silvers: We call people in their 50s and 60s - the silvers. They are the oldies who have
figured out their retirement plans. Perhaps the most profitable of all generations, they
are the ones who have enough retirement cash and like to travel in 'tolies' to places like
Bangkok and Singapore.
 Gen Y: These are generally people in their 30s and 40s. They belong to the post-boom
era and are those who are reconciling and reconsolidating their jump forward. They are
the lalas who have inherited their father's businesses and are the direct reflectors of the
economy. They are most concerned with recession, obsessed with getting richer and
are also getting greedier by the day. Their lifestyle includes buying jazzier cars, bigger
fridges etc. Gen Z, on the other hand, is the 45-year-olds. They are the parents
behaving like 19-year-olds, gaining weight but sucking in their paunch in their T-
shirts, jeans and cargo pants, trying to get lucky with 19 and 20-year-olds...
 Gen X: This is the generation 'next', the 17-19-year-olds who are coming into their
own. The "X" is simply a short form of 'next'. These are the ones who are finishing
college, higher studies, the ones who are taking up jobs. They have huge choices - the
option to go for part-time jobs, exercise franchise etc.

48.  The mash-up of the Western concept with the Indian context
 Dr Ravinder Kaur, director, Centre of Global South Asian Studies, does not stray far
from the Western definition (which is what Kakkar did) when trying to define the
generations as they pertain to India, but says, "Rather than look for exact parallels for
Gen X and Gen Y in India in terms of time period, we need to look at the qualities
associated with them.“
 Gen X and Gen Y: In the West, Gen X was termed so to indicate the unknown future that
lay ahead for a generation born after the war - it was faced with plenty of potential but
also uncertain future that accompanied the war and its aftermath. Gen Y was associated
with the economic boom years as well as digital revolution that brought in new modes
of communication, financial opportunities as well as neoliberal policies of governance
and the internet boom. In India, probably it makes more sense to think in terms of the
economic reforms that made critical transformations within the society - particularly
within the middle classes. Gen X and Gen Y in the urban middle class in India are not
separated by decades, rather they collapse onto each other, where potential as well as
its realisation is experienced in a short gap.
 Gen Z: It is probably the kids growing up now, with a range of digital possibilities
which were unimaginable a decade ago that have become possible.
 Rejecting the concept altogether Professor Surinder S Jodhka, Department of Sociology,
JNU, does not agree that such generations exist in India. He says, "This is entirely a
Western concept, especially pertaining to the US - where this classification applies to
the entire country. In India, however, it applies only to the urban middle class, which is
not even 25% of Indians. This would apply to those who are part of the global economic
system or global cultural consumption. People who would use this language and who
situate themselves in globalised India. In the West, the middle class is predominant.
Only about 5% of the population is rich, and 20% are at the bottom. One needs to
contextualize this historically. No such categories can exist in India - it's very different,
very complex, very diverse. The youth in Lucknow would have different anxieties and
dilemmas as compared to the youth in Delhi. Same in the case of Dalits. Also, here the
divide in man and woman is more pertinent than between old and young. For eg - in
the interiors of Rajasthan a woman would already be married at 20.

49. Macromarketing to an Aging
Population
One solution to this problem
includes increasing the age at which
benefits begin, thus changing the
age at which people and
organizations expect to retire
Quasi-retirement is another option
where more experienced workers fill
in for younger workers during
vacations, sabbaticals, training, or
maternity leaves

50. Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

51. Changing Geography of Demand
Geodemography, refers to where
people live, how they earn and
spend their money, and other
socioeconomic factors
The study of demand related to
geographic areas assumes that people
who live in proximity to one another also
share similar consumption patterns and
preferences
Cities are the most important unit of
analysis in most marketing plans

52. Changing Geography of Demand
Metropolitan statistical area (MSA): a
free-standing metropolitan area
surrounded by non-metropolitan
counties and not closely related to other
metropolitan areas
Primary MSA (PMSA): metropolitan area
closely related to another city
Consolidated MSA (CMSA): a grouping
of closely related PMSAs

53. Changing Geography of Demand
The greatest gains in population are
expected in California, Texas and Florida
These states are considered prime
candidates for new stores compared to
other states where populations may be
declining
Growth rate may be deceptive unless the
size of the population is also taken into
account
Geographic variables affect many
components of a firm’s marketing strategy

54. Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

55. Economic Resources
The ability to buy, typically measured
by income and wealth
Income: money from wages and
salaries as well as interest and
welfare payments

56. Economic Resources
What consumers think will happen in
the future (consumer confidence)
heavily influences consumption
Influences whether consumers will
increase their debt or defer spending
to pay off debt
Measures of consumer confidence
are important in making decisions
about inventory levels, staffing, or
promotional budgets

57. Economic Resources
Income: money from wages and
salaries as well as interest and
welfare payments
Wealth: a measure of a family’s net
worth or assets in things such as
bank accounts, stocks, and a home,
minus its liabilities such as home
mortgage and credit card balances

58. Economic Resources
Net worth influences willingness to
spend but not necessarily ability to
spend, because much wealth is not
liquid and cannot be spent easily
How much people accumulate over
the years is more a function of how
much they save rather than how
much they earn

59. Targeting the Up Market
The superaffluent represent the top
quintile of consumers in terms of
income
Households often consists of two
income earners who place a high
value on time
They value extra services provided
by some retailers
Saving money is as important as
spending it for many individuals in
this group

60. Targeting the Up Market
Shop discount stores, use coupons,
and wait for sales
More print oriented in communications
Simple ads that promote image
Credibility of source selling product
Product reviews influence this group

61. Targeting the Down Market
Throughout the world, the majority
of consumers are low income
Retailers such as Wal*Mart have
found success by providing good
products at reasonable prices
Closeout stores offer brand name
products at deep discounts to at all
income-level consumers
Dollar stores are one of the fastest
growing retail categories

62. Targeting the Down Market
Provide good products at reasonable
prices
Maintaining attractive stores
Offering stylish and up-to-date products
Have friendly employees that treat
customers with respect

63. Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

64. Global Market Analysis
The most attractive markets are
countries that are growing both in
population and in economic
resources
Which countries will grow the most
in the future?
Which countries
have the highest
per capita income?

65. Global Market Analysis
Low income countries offer an
advantage to firms looking to buy
products from the lowest-cost
source
There are pockets of
consumers who are
able to buy products,
even in the poorest
countries

66. Emerging Markets
Marketing programs should focus
on creating brand awareness
(because competitors will follow)
and stimulating product trial
Marketers may have to teach
consumers about products taken for
granted (deodorant)
Products may have to be adapted to
local values

67. Consumer Behavior in
the Pacific Rim
South Asia
India
China
Australia
Japan

68. Consumer Behavior in
Latin America
Some of the most attractive markets
include Brazil, Venezuela, Colombia,
Argentina, and Chile
Most countries have high
population growth rates, moderately
high incomes close proximity
Intermarket segmentation provides
a basis to identify segments that
can afford certain items

69. Consumer Behavior in
Eastern Europe
The attractiveness of Eastern
European markets lies in their
similar preferences to Western
consumers
Hungary and Poland have received
much attention from global
marketers
Marketers have launched a myriad
of successful brands

70. Consumer Behavior in The EU
The EU is a market larger than the
United States
Extremely low population growth
makes customer retention
extremely important for marketers
Products and people move across
borders easily
Efficiencies include logistics,
financial arrangements, and
marketing economies of scale

71. Consumer Behavior in The EU
Efficiencies include logistics,
financial arrangements, and
marketing economies of scale
Marketers can approach Europe as
a single market, but national identity
still exists among consumers

72. Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles

73. Personality
consistent responses to
environmental stimuli
an individual’s unique psychological
makeup, which consistently
influences how the person responds
to his or her environment
Personality:

74. Personality
How does personality influence
consumer behavior?
Personality:
Psychoanalytic Theory
Sociopsychological Theory
Trait-Factor Theory

75. Personality
Human personality system consists of
the id, ego, and superego
The dynamic interaction of these
results in unconscious motivations
that are manifested in observed
human behavior
Personality is derived from conflict
between the desire to satisfy physical
needs and the needs to be a
contributing member of society
Psychoanalytic theory

76. Personality
Personality is a result of more than
just subconscious drives
Some advertising is influenced by
psychoanalytic approach
Psychoanalytic theory

77. Personality
Recognizes interdependence of the
individual and society—individual
strives to meet needs of society and
society helps individual attain
personal goals
Social variables (rather than
biological instinct) are most important
in shaping personality
Behavioral motivation is directed to
meet those needs
Sociopsychological Theory

78. Personality
Person may buy a product that
symbolizes an unattainable or
unacceptable goal—the acquisition
fulfills some subconscious “forbidden
desire”
Sociopsychological Theory

79. Personality
Quantitative approach to personality
Personality made up of traits: any
distinguishable, relatively enduring
way in which one individual differs
from another
Understanding consumer traits can be
useful in marketing planning
Trait-Factor Theory

80. Personality
Assumes that traits are common to
many individuals and vary in absolute
amounts among individuals
Traits are relatively stable and exert
fairly universal effects on behavior
regardless of the environmental
situation
Traits can be inferred from the
measurement of behavioral indicators
Trait-Factor Theory

81. Personality
Trait theory is most useful to
marketing strategists in developing
brand personality—the personality
consumers interpret from a specific
brand
Brands may be characterized as old-
fashioned, modern, fun, provocative,
masculine, or glamorous
Trait-Factor Theory

82. Predicting Buyer Behavior
Research typically attempts to find
relationships between personality
variables and consumer behaviors
Research tried to predict brand
and store preference based on
personality but with poor results
Personality is just one variable in
the consumer decision making
process

83. Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles

84. Personal Values
Represent consumer beliefs about life and acceptable
behavior
Unlike attitudes, values transcend situations or events
and are more enduring because they are more central
in the personality structure
Represent three universal requirements:
biological needs, requisites of coordinated social
interaction, and demands for group survival and
functioning
Values express the goals that motivate people and the
appropriate ways to attain those goals
Values:

85. Personal Values
Social values define “normal”
behavior for a society or group
Personal values define “normal”
behavior for an individual
Personal values reflect the choices
an individual makes from the
variety of social values or social
systems to which they are exposed
Individuals pick and choose which
social values to emphasize

86. Values and Consumer Decision
Process
Personal values help explain how we answer the
question, “Is this product for me?”
While important in the need recognition stage, values
also affect consumers in determining evaluative
criteria
Values influence the effectiveness of
communications programs and are enduring
motivations
Identifying which product attribute appeals to which
value-based segment can guide alternative
advertising and marketing strategies

87. Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles

88. Lifestyle Concepts
Lifestyle: patterns in which people
live and spend time and money
Reflects a person’s activities,
interests, and opinions (AIO) as
well as demographic variables
Since lifestyles change readily,
marketers must keep research
methods and marketing strategies
current

89. Lifestyle Concepts
Psychographics: an operational
technique to measure lifestyles; it
provides quantitative measures and can
be used with the large samples needed
for definition of market segments
Can also be used in qualitative research
techniques such as focus groups or in-
depth interviews
Demographics profile who buys
products whereas psychographics
focus on why they buy

90. Values and Lifestyle System
VALS™ suggests that consumer buy
products and services and seek experiences
that fulfill their characteristic preference and
give shape, substance, and satisfaction to
their lives
An individual’s primary motivation
determines what in particular about the self
or the world governs his or her activities
Consumers primarily motivated by
achievement look for products or services to
demonstrate their success to their peers

91. VALSTM Lifestyle Segments

92. VALSTM Types
Innovators: successful, sophisticated, take-
charge consumers with many resources and
high self-esteem. Image is important
Thinkers: satisfied, mature, comfortable,
practical people who look for durability,
value, and functionality in products
Achievers: motivated by the desire for
achievement, career-oriented, and prefer
prestige brands that signal success. Social
lives revolve around family, place of worship,
and work

93. Experiencers: young, enthusiastic, impulsive,
and like risk taking, variety, and excitement.
Like new and off-beat products and activities
Like Thinkers: conservative, conventional,
and motivated by ideals, with beliefs based
on codes of church, community, family, and
nation. Buy proven brands from home
country and are generally loyal consumers
Strivers: concerned about approval and
opinions of others and seek self-definition,
security, and image of success. Emulate
those they want to be like, but lack resources
VALSTM Types

94. Like Experiencers: express themselves and
experience the world by working on it.
Practical people who are self-sufficient, live
within a traditional context, and prefer value
to luxury
Survivors: live narrowly focused lives with
few resources and represent a modest
market for most products. They are cautious
consumers and seek safety and security
VALSTM Types

96.  A Group may be defined as two or more people who
interact to accomplish either individual or mutual
goals.
Classification of Groups by membership status
 Membership Group: A group to which a person either
belongs or would qualify for membership in.
 Symbolic Group: A group in which an individual is not likely
to receive membership, despite acting like a member by
adopting the group’s values, attitudes and behavior.

97.  A Reference Group is any person or group that serves as point of
comparison (or reference) for an individual in forming either general or
specific values, attitudes, or a specific guide for behavior.
 From a marketing perspective, reference groups are groups that serve as
frames of reference for individuals in their purchase or consumption
decisions.
 These groups place no restriction on group size or membership nor does it
require that consumers identify with a tangible group.
 Reference groups that influence general or broadly defined values or
behavior are called Normative Reference Groups (e.g. A child’s
Normative Reference Group is the immediate family) .
 Reference Groups that serve as benchmarks for specific or narrowly
defined attitudes or behavior are called Comparative Reference Groups
(A Comparative Reference Groups might be neighboring family whose
lifestyle appears to be admirable and worthy of imitation).

98.  Classified by:
◦ Membership
 Symbolic
◦ Extent of Interaction
 Direct versus Indirect
◦ Nature of Attraction
 Aspirational versus Dissociative
◦ Degree of Formality
 Formal versus informal

99.  Informational Influence
◦ When a member of reference group provides information used
to make purchase decisions
 Normative Influence
◦ When we conform to group norms in order to belong to that
group
 Identification Influence
◦ When we identify with, and internalize, a group’s values and
behaviours

100.  Inform or make the individual aware of a specific product
or brand.
 Provide the individual with the opportunity to compare
his or her own thinking with the attitudes and behavior of
the group.
 Influence the individual to adopt attitudes and behavior
that are consistent with the norms of the group.
 Legitimize the decision to use the same products as the
group

101.  Friendship Groups
 Shopping Groups
 Work Groups
 Virtual Groups or Communities
 Brand Communities
 Consumer-action Groups
 Celebrities

102.  Friendship groups are typically classified as informal groups because they
are usually unstructured and lack specific authority levels.
 In terms of relative influence, after an individual’s family, his or her friends
are most likely to influence the individual’s purchase decisions.
 Seeking and maintaining friendships is a basic drive of most people.
 Friends fill a wide range of needs: They provide companionship, security,
and opportunities to discuss problems that an individual may be reluctant to
discuss with family members.
 Marketers of products such as brand-name clothing, fine jewelry,
snack foods, and alcoholic beverages recognize the power of peer
group influence and frequently depict friendship situations in their
advertisements.

103.  Two or more people who shop together, whether for food, for clothing, or
simply to pass the time, can be called a shopping group.
 Such groups are often offshoots of family or friendship groups and
therefore, they function as what has been referred to as purchase pal.
 The motivation for shopping with a purchase pal range from a primarily
social motive to helping reduce the risk when making an important
decision.
 A special type of shopping group is the in-home shopping party, which
typically consists of a group that gathers together in the same home of a
friend to attend a “party” devoted to demonstrating and evaluating a
specific line of products.

104.  The sheer amount of time people spend at their jobs, frequently more than
35 hours per week, provide ample opportunity for work groups to serve as
a major influence on the consumption behavior of the members.
 Formal Work Group: it consists of individuals who work together as part
of a team, and thus have a sustained opportunity to influence each other’s
consumption related attitudes and actions.
 Informal Work Group: it consists of people who have become friends as
a result of working for the same firm, whether or not they work together as
a team, and they can influence the consumption behavior of other members
during coffee or lunch breaks or at after-work meetings.

105.  A virtual team (also known as a geographically dispersed
team or distributed team) is a group of individuals who work across time,
space and organizational boundaries with links strengthened by webs
of communication technology.
 Members of virtual teams communicate electronically and may never
meet face-to-face.
 Virtual teams are made possible by a proliferation of fiber
optic technology that has significantly increased the scope of off-
site communication.
 Virtual teams allow companies to procure the best talent without
geographical restrictions.

106.  A brand community is a community formed on the basis of attachment to
a product or marquee.
 Recent developments in marketing and in research in consumer
behavior result in stressing the connection between brand,
individual identity and culture. Among the concepts developed to explain
the behavior of consumers, the concept of a brand community focuses on the
connections between consumers.
 A brand community can be defined as an enduring self-selected group of
actors sharing a system of values, standards and representations (a culture)
and recognizing bonds of membership with each other and with the whole.
 Brand communities are characterized in shared consciousness, rituals and
traditions, and a sense of moral responsibility.

107.  The term "brand community" was first presented by Albert Muniz Jr. and
Thomas C. O'Guinn in a 1995 paper for the Association for Consumer
Research Annual Conference in Minneapolis, Minnesota.
 In a 2001 article titled "Brand community", published in the Journal of
Consumer Research (SSCI), they defined the concept as "a specialized, non-
geographically bound community, based on a structured set of social relations
among admirers of a brand." This 2001 paper has been acknowledged
by Thomson Scientific & Healthcare to be one of the most cited papers in the
field of economics and business.
 Many brands provide examples of brand communities. In computers and
electronics: Apple Inc. (Macintosh, iPod, iPhone), Holga and LOMO cameras,
and Palm and Pocket PC Ultra-Mobile PCs.
 In vehicles: Ford Bronco, Jeep, automobiles, and
 Royal Enfield and Harley-Davidson motorcycles.
 In toys: Barbie and Lego.

108.  A particular kind of consumer group-A Consumer Action Group-has emerged
in response to the consumerist movement. Today there are a large number of
such groups that are dedicated to providing consumer products in a healthy and
responsible manner, and to generally add to the overall quality.
 For example, a diverse range of consumer concerns being addressed by private
and public consumer-action groups: neighborhood crime watch, youth
development, forest and wildlife concerns, children and advertising, race and
ethnicity, community volunteerism, legal assistance, public health, disaster
relief, energy conservation, education, smoking, the environment, access to
telecommunications, science in the public interest, credit counseling, privacy
issues, and children and internet.
Two broad categories of Consumer Action Groups:
 Those that organize to correct a specific consumer abuse and then disband
(Agitation against liquor shop in a community) .
 Those that organize to address broader, more persuasive problem areas and
operate over an extended or indefinite period of time (Group against drunk
driving).

109.  A celebrity is a person who has a prominent profile and commands a great
degree of public fascination and influence in day-to-day media. The term is
often synonymous with wealth (commonly denoted as a person with fame and
fortune), implied with great popular appeal, prominence in a particular field,
and is easily recognized by the general public.

110.  A second type of reference group appeals used by
marketers is the expert, a person who, because of his or
her occupation, special training, or experience, is in a
unique position to help the prospective consumer
evaluate the product that the advertisement promotes.
 e.g. An ad for a quality frying pan may feature the
endorsement of a chef.

111.  A reference group appeal that uses the testimonials of satisfied
customers is known as the common-man approach.
 The advantage is that it demonstrates to prospective customers
that someone just like them uses and is satisfied with the good
or service being advertised.
 The common man appeal is especially effective in public
health announcement (such as antismoking or high B.P.
messages), for most people seem to identify with people like
themselves when it comes to such messages.

112.  The popularity of this type of advt. probably is due to the
success and publicity received by a number of executive
spokespersons.
 Like celebrity spokespersons, executive spokespersons seem
to be admired by the general population because of their
achievements and the status implicitly conferred on business
leaders.
 e.g. Ratan Tata, K. Birla, Mukesh Ambani etc.

113.  These are often employed as attention grabbers, acting
as spokespersons to promote children’ products.
 Trade characters are intended to bond a child to a brand
so that the child’s brand awareness might form the
basis of brand preference either immediately or later in
life.
 e.g. Animated characters used by marketers in
advertisements for children products

114.  A variety of other promotional strategies can function
creatively as frames of reference for consumers.
 Respected retailers and the editorial content of selected
special interest magazines can also function as frames
of reference that influence consumer attitudes and
behavior.
 e.g. Indian Dental Association’s seal of approval for
toothpaste.

118.  Celebrities are people who enjoy public
recognition by a large share of a certain
group of people

119.  Actors (ex Shahrukh khan, Amitabh Bachhan ),
 Models (ex. Vaneeza Ahmed, Iman Ali)
 Sports athletes (ex. Shahid Afridi, Sachin Tendulkar, Roger
Federer )
 Entertainers (ex. Anwar Maqsood, Umer Shareef)
 Pop Stars (ex. Jal, Atif Aslam,Call)
 Businessmen (ex. Dirubhai Ambani)
 Politicians
 Fictional celebrities (Ronald McDonald, Fido dido, Amul Girl,
Dentonic guy)

120.  They appear in public when
fulfilling their profession
 They appear in public by
attending special celebrity
events
 They are present in News,
Fashion magazines and
tabloids
 They act as spokes people in
advertising to promote
products and services

121.  Testimonial
 Endorsement
 Actor
 Spokesperson

123.  celebrity endorsements are more typical for
nationally marketed products then for local
or niche market products
 Because the celebrity is recognizable
globally, it is a low cost way to achieve cross
group coordination

124.  celebrity endorsement have recall of the product
 celebrities have credibility on expertise that makes the
product more desirable or enhances perceptions of quality
 the celebrity endorsers image is transferred to the product so
that those who use the product are associated with the
image.

125.  celebrity endorsements enhance brain recall.
 subject tended to like the product more when it was endorsed
by the famous athlete than by an average citizen
 Success of fictional Celebrity endorsement

127.  The endorser has to be trustworthy enough to modify people’s attitude
towards the brand
 Source attractiveness refers to the endorsers physical approach, personality,
likeability, and similarity to the receiver, thus to the perceived social values
of the source
 The model basically focuses on the belief that persons who perform well on
one dimension are assumed to excel on others as well.

128.  effectiveness depends on the existence of a “fit” between the
celebrity spokesperson and endorsed brand
 It says that celebrity endorsement will only effect buying
behavior if the characteristics of the product “match-up” with
the image conveyed by the celebrity.

129.  First: meanings attributed to the celebrity become
associated with the brand in the consumers.
 Second: customer acquires the brands meaning.
 Third: the importance of the consumer’s role in the
process of endorsing brands.

130.  some celebrities are endorsing
several brands
 or a specific brand is endorsed
by different spokesperson

131.  Celebrity overshadows the
brand
 Necessary Evil
 Celebrity creditability a
question mark for the
competent customer
 Conflicting Image
 Multiple Endorsement
 Influence of Celebrity scandals
and moral violation on brands

132.  Build Awareness
 Connects Emotionally
 Quick Connect:
 Means of Brand differention
 Source of Imitation and
hence inducing increased
product usage
 Better Brand Image

136. • FIT
• HEALTHY
• PERFECT BODY
• SPORTS PERSON
• FOR FITNESS
• FOR HEALTH
CONSCIOUS
• SPORTS SHOE

138. • BEAUTIFUL
• SLIM
• LIGHT WEIGHT
• STYLISH
• SLIM
• LIGHT WEIGHT
• STYLISH
• SLEAK

140. • YOUNG
• STYLISH
• ENERGETIC
• CHOICE OF YOUTH
• FOR YOUNG PEOPLE
• ENERGETIC

142. • FAIR
• SOFT SKIN
• BEAUTIFUL
• BEAUTY ICON
• FAIRNESS SOAP
• FEMALE PRODUCT

143. Dearth of salesmanAmitabh Bacchan is one man brand industry. Nobody has that 6-to-60 universal appeal
who can sell anything to India, and to Bharat.
.

144. Revolutionized the psychological
trend of using Cadbury from 5-55
age group.
‘A gift that helps foster
relationships’.

145.  Before choosing the celebrity the marketer
has to decide how far the benefits outweigh
the risks associated.
 Because celebrity endorsement can create a
buzz and make a consumer feel better about
the product but it can not itself guarantee
sales.