Consumer as individual

saurabh mishra
saurabh mishrastudent em CUHP
Consumer As Individual
Prepared By :
Saurabh Mishra
CUHP19MBA94
Contents:
• Types and System of Needs, Customer Motivation
• Consumer Personality, Brand Personality
• Consumer Perception, Dynamics and Elements of
Perception
• Learning, Behavioral and Cognitive Learning
• Consumer Attitude, Attitude formulation and
Change
Types and System of Needs
• Need can be defined as the things that satisfy the basic requirement.
• Every person have some needs . Some of these needs are basic to sustaining life & are born
with individual , these basic needs are also called physiological needs or biogenic needs and
include the needs for air, water, food, shelter, sleep, clothing, and sex. Physiological needs are
primary needs or motives because they are essential to survival.
• Acquired needs are learnt needs that we acquire as a result of being brought up in a culture and
society. For example, needs for self-esteem, prestige, affection, power and achievement are all
considered as learned needs.
• Needs may also be classified even more basically - utilitarian or hedonic. A consumer's
utilitarian needs focus on some practical benefits and are identified with product attributes that
define product performance such as economy or durability etc.
• Hedonic needs relate to achieving pleasure from the consumption of a product or service and
are often associated with emotions or fantasies. Hedonic needs are more experiential as they
are closely identified with the consumption process. For example, a hedonic need might be the
desire to be attractive to the opposite sex. The evaluative criteria for brands are usually
emotional rather than rational (utilitarian).
An evaluation of the need hierarchy and marketing applications :
Maslow’s hierarchy-of-needs theory postulates a five-level hierarchy of prepotent human needs . Higher-order needs
become the driving force behind human behaviour as lower-level needs are satisfied. The theory says that
dissatisfaction, not satisfaction, motivates behaviour. The major problem with the theory is that it cannot be tested
empirically; there is no way to measure precisely how satisfied one level of need must be before the next higher need
becomes operative. The need hierarchy also appears to be very closely bound to contemporary culture (i.e. it appears
to be both culture- and time-bound).
A trio of need:
 Power
The power need relates to an individual’s desire to control his or her environment. It includes the
need to control other persons and various object.
 Affiliation
Affiliation is a well-known and well-researched social motive that has far-reaching influence on
consumer behaviour. The affiliation need suggests that behaviour is strongly influenced by the
desire for friendship, for acceptance, for belonging. People with high affiliation needs tend to be
socially dependent on others.
 Achievement
A considerable number of research studies have focused on the achievement need. Individuals
with a strong need for achievement often regard personal accomplishment as an end in itself. The
achievement need is closely related to both the egoistic need and the self-actualization need.
People with a high need for achievement tend to be more self-confident, enjoy taking calculated
risks, actively research their environments and value feedback.
Differences Between Motives , Motivating and Motivation
 MOTIVE – give directions to human behaviour . A motive is an inner state that
energizes activates , or moves and directs or channels behaviour towards goal.
Motivating – implies an activity engaged into by an individual , by which he
or she will channelize the strong motives in a direction that is satisfactory.
Motivation – The study of motivation is concerned with why people choose
to behave in a certain way.
Needs – the most basic human requirements.
Drives –tells how these needs translate into behaviour.
Goals – what these behaviour’s aim to achieve.
Positive and negative motivation :
Motivation can be positive or negative . If an individual feels a driving force towards an object or
person or situation , it is called positive motivation . Whereas a driving force compelling the person to
move away from something or someone will be known as negative motivation . For instance VLCC
conveys an approach motivation to individuals who have positive goal of fitness . Castrol GTX Extra
Engine oil uses the avoidance motives , informing customers to avoid any other engine oil which
could spoil the car engine and only use Castrol GTX Extra.
Rational versus emotional motives :
In a marketing context, the term rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price or miles per gallon.
Emotional motives imply the selection of goals according to personal or subjective
criteria (e.g. pride, fear, affection or status ) .
THE DYNAMICS OF MOTIVATION
Motivation is a highly dynamic process . Under the dynamic constructs of motivation there are broadly three aspects
which will be discussed:
1. Role of needs & Goals to adapt to the change in an individual’s motivation.
 Needs are never fully satisfied.
 new needs emerge as old needs are satisfied.
 success and failure influence goals.
2. Frustration and Defense mechanism in the Needs .
Frustration is the feeling experienced by an individual when he fails to achieve goals . While some may go to adopt
defense mechanism to protect their self image or self esteem . The Defense mechanism may involve :
 Aggression.
 Rationalization .
 Regression .
 Withdrawal .
 Projection.
 Autism.
 Repression .
 Identification .
3. Arousal of motives .
 Physiological Arousal .
 Emotional Arousal .
 Cognitive Arousal .
 Environmental Arousal .
Consumer Personality
The most frequently quoted definition of personality is that of Gordon W. Allport. According to him,
"Personality is the dynamic organization within the individual of those psychological systems that
determine his unique adjustment to environment”
Nature of personality
1. personality reflects individual differences;
2. personality is consistent and enduring; and
3. personality can change
Theories of Personality
This section briefly reviews three major theories of personality:
1. Freudian theory.
2. Neo-Freudian theory
3. Trait theory.
Freudian Theory
Sigmund Freud’s psychoanalytic theory of personality is a cornerstone of modern psychology. Freud’s
psychoanalytic theory proposes that every individual’s personality is the result of childhood conflicts. These
conflicts are derived from three fundamental components of personality: Id, Ego and Superego. According
to the theory, the id (or libido) is the source of an individual’s strong basic drives and urges such as hunger,
sex, aggression and self-preservation. The id operates on what is called the ‘pleasure principle’, that is, to
seek immediate pleasure and avoid pain. The id is entirely unconscious and not fully capable of dealing with
objective reality. Many of its impulses are not acceptable to the values of organized society. A newborn baby’s
behaviour, for example, is governed totally by the id. The ego is the individual’s conscious control. It comes
into being because of the limitations of the id in dealing with the real world by developing individual’s
capabilities of realistic thinking and ability to deal suitably with her/his environment. Ego operates on what
is called the ‘reality principle’. It is capable of postponing the gratification until that time when it will be
suitably and effectively directed at attaining the goals of the id in a socially acceptable manner. The superego
constitutes the moral part of an individual’s personality. It represents the ideal rather than the real, defines
what is right and good and it influences the individual to strive for perfection. It operates in the unconscious
and often represses certain behaviour that would otherwise occur based on the id, which could disrupt the
social system. According to Freud, the ego manages the conflicting demands of the id and the superego.
Neo – Freudian Theory
Neo Freudian theorist felt that social relationships plays a vital role in the formation and development of
personality . Alfred Adler viewed human beings as seeking to attain various rational goals, which he
called style of life. He also placed much emphasis on the individual’s efforts to overcome feelings of
inferiority (i.e. by striving for superiority). Harry Stack Sullivan, another Neo-Freudian, stressed that
people continuously attempt to establish significant and rewarding relationships with others. He was
particularly concerned with the individual’s efforts to reduce tensions, such as anxiety. Like Sullivan,
Karen Horney was also interested in anxiety. She focused on the impact of child–parent relationships
and the individual’s desire to conquer feelings of anxiety. Horney proposed that individuals be classified
into three personality groups: compliant, aggressive and detached (CAD) .
1. Compliant individuals are those who move toward people and stress the need for love, affection,
approval and modesty. Such individuals exhibit empathy, humility and are unselfish.
2. Aggressive individuals are those who move against people and emphasize the need for power,
admiration, strength and the ability to manipulate others.
3. Detached individuals are those who move away from others and desire independence, freedom from
obligations and self-reliance. They do not develop strong emotional ties with others.
Trait Theory
Trait theory states that human personality is composed of a set of traits that describe general response
patterns. These theories are relatively recent in origin and use very popular personality concepts to explain
consumer behaviour. The orientation, unlike previously discussed theories, is quantitative or empirical. J P
Guilford describes a trait as any distinguishing and relatively enduring way in which one individual differs
from another .
Selected single-trait personality tests (which measure just one trait, such as self-confidence) are often
developed specifically for use in consumer behaviour studies. These tailor-made personality tests measure
such traits as consumer innovativeness (how receptive a person is to new experiences), consumer
materialism (the degree of the consumer’s attachment to ‘worldly possessions’) and consumer
ethnocentrism (the consumer’s likelihood to accept or reject foreign made products).
Personality and Understanding Consumer Diversity
Marketers are interested in understanding how personality influences consumption behaviour because such
knowledge enables them to understand consumers better and to segment and target those consumers who
are likely to respond positively to their product or service communications. Several specific personality traits
that provide insights about consumer behaviour are examined next.
 Consumer Innovativeness
 Dogmatism ( Dogmatism is a personality trait that measures the degree of rigidity (versus openness) that
individuals display towards the unfamiliar and towards information that is contrary to their own established
beliefs)
 Social Character
 Need for Uniqueness
 Optimum Stimulation Level (Research in this area indicates that high optimum stimulation levels
are associated with more willingness to take risks; to be innovative, try new products and actively seek
purchase related information )
 Variety or Novelty Seeking
Cognitive personality factors
Need for Cognition
Need for cognition refers to the degree of an individual’s desire to think and enjoy getting engaged in
information processing. Such individuals tend to seek information that requires thinking. Opposite to this would
be those who shy away from such information and focus on peripheral information (ELM model). For instance, a
consumer high in need for cognition (NC) and looking at an ad for Apple computer is more likely to study and
concentrate on the information contained in the ad. On the other hand, a consumer low in need for cognition
would be more inclined to look at the beautiful picture of iMac, ignoring the detailed information about the
computer model.
Visualizers versus Verbalizers
cognitive personality research classifies consumers into two groups: visualizers (consumers who prefer visual
information and products that stress the visual, such as membership in a video club) or verbalizers (consumers
who prefer written or verbal information and products, such as membership in book clubs). Some marketers
stress strong visual dimensions in order to attract visualizers; others raise a question and provide the answer, or
feature a detailed description or point-by-point explanation to attract verbalizers .
Brand Personality
We can divide or study the personality of a brand in five dimensions:
1 Sincerity of the brand: The image of the brand as being down to earth, very honest and cheerful. Brands that are
sincere always fulfill their promises. Consumers do get the desired benefits out of them. Some brands like Raymond and
Hero Honda Passion are viewed as sincere brand as people trust these brands and they never disappoint the consumers.
2 Excitement: There are some brands that show their image as being daring, imaginative and spirited. These brands target
adventurous people, people with hedonic motives and people who want to experiment. Brands like Mountain Dew and
Bajaj Pulsar
3 Competence : These are the types that are reliable, intelligent and successful. These brands are most trusted and they
have an association with the consumers.
4 Sophisticated: These brands have an upper class feeling attached to them. They are charming and every one dreams of
owning such brands. These brands have an image which is classy and glamorous. Brands such as Mercedes and Tommy
Hilfiger
5 Rugged: These are the brand which have very western and masculine image. They are considered to be tough and
outdoorsy. They are connected with men or in some cases women, with strong personality. Brands like Harley Davidson
have rugged personality.
Consumer Perception
Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a
meaningful and coherent picture of the world. It can be described as “how we see the world around us”
ELEMENTS OF PERCEPTION
Sensation
Sensation is the immediate and direct response of sense organs to simple stimuli such as an advertisement, a
brand name, or a package etc. Sensitivity to stimuli varies among individuals and depends on the quality of
sensory receptors.
Absolute Threshold
Absolute threshold refers to the lowest level at which an individual can experience a sensation. At this point an
individual can detect a difference between “something” and “nothing” and this point would be that individual’s
absolute threshold for that stimulus.
Differential Threshold
Differential threshold is the smallest detectable difference between two values of the same stimulus. This is
also referred as JND (Just Noticeable Difference).
Subliminal perception
When the stimulus is below the threshold of awareness and is perceived, the process is called subliminal
perception
DYNAMICS OF PERCEPTION
The perceptual process involves three components :
Perceptual Selection
Perception is a selective process . An individual may look at some things, ignore others, and turn away from
still others. In actuality, people receive (i.e. perceive) only a small fraction of the stimuli to which they are
exposed. The selectivity of stimuli depends on consumer’s previous experience and motives, besides the
nature of stimulus itself. One or more factors related to experience and motives affect consumer’s ‘selective
exposure’ and ‘selective attention’ at a given time and can increase or decrease the probability that a certain
stimulus will be perceived.
1) Nature of the stimuli
2) Expectations
3) Motives
4) Selective perception
i. Selective Exposure
ii. Selective Attention
iii. Perceptual defense
iv. Perceptual Blocking
Perceptual organization
All the selected stimuli from the environment are not experienced as separate and discrete sensations.
Individuals tend to organise these sensations into a coherent pattern and perceive them as unified wholes.
The specific principles underlying perceptual organisation are sometimes referred as Gestalt psychology.
Gestalt is a German word and means “pattern” or “configuration.” Three most basic principles of
perceptual organisation focus on ‘figure and ground’ relationships, ‘grouping’ and ‘closure’
Perceptual Interpretation
Individuals, in their own unique manner, interpret the stimuli . People exercise selectivity as to which
stimuli they perceive, and they organise these stimuli on the basis of certain psychological principles. The
interpretation of stimuli is also uniquely individual, because it is based on what individuals expect to see in
the light of their previous experience, on the number of plausible explanations they can envision, and on
their motives and interests at the time of perception.
A number of factors influence individuals that may distort their perceptions, such as physical
appearances, stereotyping stimuli, irrelevant stimuli, first impressions, jumping to conclusions and halo
effect etc.
Learning
Schiffman and Kanuk have defined learning, from a marketing perspective, as 'the process by which
individuals acquire the purchase and consumption knowledge and experience that they apply to future
related behaviour'. Behaviour has two aspects, observable behaviour as well as non-observable cognitive
activity .
Elements of Learning
 Motivation - Motivation is the driving force that impels individuals to action and is the result of
unfulfilled need (s). If an individual has strong motivation to learn something, there is increased likelihood
that learning will take place
 Cues: Cues are relatively weak stimuli, not strong enough to arouse consumers but have the potential of
providing direction to motivated activity
 Response: The way an individual reacts to a cue or stimulus is the response and could be physical or
mental in nature, leading to learning
 Reinforcement: Most scholars agree that reinforcement of a specific response increases the likelihood
for the response to reoccur. Reinforcement can be anything that both increases the strength of response
and tends to induce repetitions of the behaviour that preceded the reinforcement.
Behavioural Learning Theories
Behavioural learning theories are sometimes referred to as stimulus-response theories because they are based on the
premise that observable responses to specific external stimuli signal that learning has taken place . When a person acts
(responds) in a predictable way to a known stimulus, he or she is said to have ‘learned’. Two behavioural theories with
great relevance to marketing are classical conditioning and instrumental (or operant) conditioning.
Classical Conditioning
Ivan Pavlov, a Russian physiologist, was the first to describe conditioning and to propose it as a general
model of how learning occurs. According to Pavlovian theory, conditioned learning results when a stimulus
that is paired with another stimulus that elicits a known response serves to produce the same response
when used alone.
Strategic Applications of Classical Conditioning
Three basic concepts derive from classical conditioning: repetition , stimulus generalisation and
stimulus discrimination . Each of these concepts is important to the strategic applications of consumer behaviour .
Repetition - Repetition increases the strength of the association between a conditioned stimulus and an
unconditioned stimulus and slows the process of forgetting. However, research suggests that there is a limit to the
amount of repetition that will aid retention . For example, different Pepsi commercials continue showing different
settings and endorsers but the punch line “yeh dil mange more” continues. The commercials of FeviQuick continue with
the theme “chutki mein chipkae” in different humorous settings.
Stimulus Generalisation
In his experiments, Pavlov also demonstrated that the dogs could learn to salivate on hearing somewhat similar sound
produced by jingling keys. This was the case of stimulus generalisation in dogs. Stimulus generalisation occurs when two
stimuli are seen as similar and the effects of one, therefore, can be substituted for the effects of the other. This principle
states that a new but similar stimulus or stimulus situation will produce a response that is the same or similar as that
produced by the original stimulus.
Stimulus Discrimination
Stimulus discrimination is just opposite to stimulus generalisation. Unlike reaction to similarity of stimuli, discrimination
is a reaction to differences among similar stimuli. The ability to discriminate among stimuli is learned. For example,
frequent users of a brand are better able to notice relatively small differences among brands in the same product
category. Not taking any chances, marketers use advertising to communicate brand differences that physical
characteristics alone would not convey. The concept of “product or brand positioning” is based on stimulus
discrimination which strives to create a brand’s unique image in the consumers’ minds
Instrumental conditioning
Instrumental conditioning also involves developing association between stimulus and response but requires
the subject to discover a correct response that will be reinforced. Any response elicited is within the
conscious control of the subject. The foremost proponent of instrumental conditioning was B F Skinner. In his
experiments, the subjects were free to respond in several ways. Skinner worked with small animals in his
experiments, such as rats and pigeons. He developed a box, called after his name as “Skinner box,” in which
he placed experimental animals.
Cognitive Learning Theory
Cognitive learning approach has dominated the field of consumer behaviour in recent years. Learning that
takes place as a result of mental activity is termed as ‘cognitive learning’. Cognitive theorists do not endorse
the view that learning is based on repetitive trials leading to the development of links between stimuli and
responses because consumer behaviour typically involves choices and decision-making. According to their
view, learning is an intellectual activity based on complex mental processes involving motivation,
perception, formation of brand beliefs, attitude development and change, problem solving and insight.
Even sudden learning may also result when someone is faced with a problem. Typically, though, we are
most likely to look for reliable information, indulge in analysis, evaluate what we learn and try to make a
balanced decision. As we acquire more experience and familiarity with different products and services, our
cognitive ability and learning increases to compare various product attributes improves.
Consumer Attitude
In a consumer behaviour context, an attitude is a learned predisposition to behave in a consistently
favourable or unfavourable way with respect to a given object. Each part of this definition describes an
important property of an attitude and is critical to understanding the role of attitudes in consumer
behaviour.
Characteristics of Attitude
1. Difficult to measure
2. May create inflexibility and stereotypes
3. Formed largely from continuous process of socialization
4. Once formed not easy to change
Structural Models & Theories of Attitude
 Tri-component Attitude Model
According to this model, attitudes are consist of three main components:
1. Cognitive component (knowledge, beliefs)
2. Affective component (emotions, feelings)
3. Conative component (behavioural aspect)
 Multi-attribute Attitude Models
According to these models, consumers’ attitudes about an attitude “object” is a function of consumers’
perception and assessment of important attributes or beliefs held about a certain attitude “object.” The
attitude ‘object’ may be a product, service, or issue etc. In other words, many beliefs about attributes are
evaluative in nature .
 Attitude-toward-object Model
This is the simplest model and is particularly appropriate for measuring attitudes towards product/service
category, or specific brands. A product has many attributes (size, features, style and so on) and an individual
will process information and develop beliefs about many of these attributes. Consumers generally have
favourable attitudes towards those products or brands that they believe have an acceptable level of positive
attributes. Conversely, they have unfavourable attitudes toward those brands that they believe do not have an
acceptable level of desired attributes, or have too many negative attributes .
 The Attitude Towards Behaviour Model
The attitude towards behaviour model is the individual’s attitude towards behaving or acting with respect to
an object rather than the attitude towards the object itself . The appeal of the attitude towards behaviour
model is that it seems to correspond somewhat more closely to actual behaviour than does the attitude
towards object model.
 Attitude towards the ad models
In an effort to understand the impact of advertising or some other promotional vehicle (e.g. a catalogue) on
consumer attitudes towards particular products or brands, considerable attention has been paid to
developing what has been referred to as attitude towards the ad models .
Attitude Formation
Attitude formation can be divided into three areas :
i. How attitudes are learned
ii. Sources of influence on attitude formation
iii. Impact of personality on attitude
How attitudes are learned
When we speak of the formation of an attitude, we refer to the shift from having no attitude towards a given object
(e.g. an MP3 player) to having some attitude towards it (e.g. having an MP3 player is great when you want to listen to
music while on a treadmill at the gym). The shift from no attitude to an attitude (i.e. the attitude formation) is a result
of learning .
Sources of influence on attitude formation
The formation of consumer attitudes is strongly influenced by personal experience, the influence of family and friends,
direct marketing and mass media .
Personality Factor
Personality also plays a critical role in attitude formation. For example, individuals with a high need for cognition (i.e.
those who crave information and enjoy thinking) are likely to form positive attitudes in response to advertisements or
direct mail that are rich in product-related information. On the other hand, consumers who are relatively low in need
for cognition are more likely to form positive attitudes in response to advertisements that feature an attractive model or
well-known celebrity .
STRATEGIES OF ATTITUDE CHANGE
1. changing the consumer’s basic motivational function,
2. associating the product with a special group, event or cause,
3. resolving two conflicting attitudes,
4. altering components of the multi-attribute model, and
5. changing consumer beliefs about competitors’ brands
 changing the consumer’s basic motivational function
According to this approach, attitudes can be classified in terms of four functions:
the utilitarian function , the ego-defensive function , the value-expressive function and the knowledge function
The Utilitarian Function
We hold certain brand attitudes partly because of a brand’s utility. When a product has been useful or helped us in the past,
our attitude towards it tends to be favourable. One way of changing attitudes in favour of a product is by showing people that
it can serve a utilitarian purpose that they may not have considered.
The Ego-Defensive Function
Most people want to protect their self-images from inner feelings of doubt – they want to replace their uncertainty with a
sense of security and personal confidence. Advertisements for cosmetics and personal care products, by acknowledging this
need, increase both their relevance to the consumer and the likelihood of a favourable attitude change by offering
reassurance to the consumer’s self-concept .
The Value-Expressive Function
Attitudes are an expression or reflection of the consumer’s general values, lifestyle and outlook. If a consumer segment
generally holds a positive attitude towards owning the latest designer jeans, then its members’ attitudes towards new
brands of designer jeans are likely to reflect that orientation .
The Knowledge Function
Individuals generally have a strong need to know and understand the people and things they encounter. The
consumer’s ‘need to know’, a cognitive need, is important to marketers concerned with product positioning .
Associating the product with a special group, event or cause
Attitudes are related, at least in part, to certain groups, social events or causes. It is possible to alter attitudes towards
products, services and brands by pointing out their relationships to particular social groups, events or causes.
Companies regularly include mention in their advertising of the civic and public acts that they sponsor to let the public
know about the good that they are trying to do.
 Resolving two conflicting attitudes
Attitude-change strategies can sometimes resolve actual or potential conflict between two attitudes. Specifically, if
consumers can be made to see that their negative attitude towards a product, a specific brand or its attributes is really
not in conflict with another attitude, they may be induced to change their evaluation of the brand (i.e. moving from
negative to positive).
 Altering components of the multi-attribute model
Earlier in this chapter we discussed a number of multi-attribute attitude models. These models have implications for
attitude-change strategies; specifically, they provide us with additional insights as to how to bring about attitude change:
1. changing the relative evaluation of attributes,
2. changing brand beliefs,
3. adding an attribute, and
4. changing the overall brand rating.
 Changing beliefs about competitors’ brands
Another approach to attitude-change strategy involves changing consumer beliefs about the attributes of competitive
brands or product categories. However, comparative advertising can boomerang by giving visibility to competing brands
and claims .
Conclusion
The key to a company's survival, profitability, and growth in a highly
competitive marketing environment is its ability to identify and satisfy
unfulfilled consumer needs better and sooner than the competitors .
By studying consumer individual characteristics helps marketer to set
bases for market segmentation and also have better understanding of
consumer behaviour.
Thank you
Refrences
• Suja R. Nair (2010), Consumer Behavior in Indian Perspective: Text
and cases, 2nd Edition, Himalya Publishing House.
• Schiffman, Leon G; Leslie Lazar Kanuk & S. Ramesh Kumar (2013).
Consumer Behavior, 10/e, Pearson Education, New Delhi.
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Consumer as individual

  • 1. Consumer As Individual Prepared By : Saurabh Mishra CUHP19MBA94 Contents: • Types and System of Needs, Customer Motivation • Consumer Personality, Brand Personality • Consumer Perception, Dynamics and Elements of Perception • Learning, Behavioral and Cognitive Learning • Consumer Attitude, Attitude formulation and Change
  • 2. Types and System of Needs • Need can be defined as the things that satisfy the basic requirement. • Every person have some needs . Some of these needs are basic to sustaining life & are born with individual , these basic needs are also called physiological needs or biogenic needs and include the needs for air, water, food, shelter, sleep, clothing, and sex. Physiological needs are primary needs or motives because they are essential to survival. • Acquired needs are learnt needs that we acquire as a result of being brought up in a culture and society. For example, needs for self-esteem, prestige, affection, power and achievement are all considered as learned needs. • Needs may also be classified even more basically - utilitarian or hedonic. A consumer's utilitarian needs focus on some practical benefits and are identified with product attributes that define product performance such as economy or durability etc. • Hedonic needs relate to achieving pleasure from the consumption of a product or service and are often associated with emotions or fantasies. Hedonic needs are more experiential as they are closely identified with the consumption process. For example, a hedonic need might be the desire to be attractive to the opposite sex. The evaluative criteria for brands are usually emotional rather than rational (utilitarian).
  • 3. An evaluation of the need hierarchy and marketing applications : Maslow’s hierarchy-of-needs theory postulates a five-level hierarchy of prepotent human needs . Higher-order needs become the driving force behind human behaviour as lower-level needs are satisfied. The theory says that dissatisfaction, not satisfaction, motivates behaviour. The major problem with the theory is that it cannot be tested empirically; there is no way to measure precisely how satisfied one level of need must be before the next higher need becomes operative. The need hierarchy also appears to be very closely bound to contemporary culture (i.e. it appears to be both culture- and time-bound).
  • 4. A trio of need:  Power The power need relates to an individual’s desire to control his or her environment. It includes the need to control other persons and various object.  Affiliation Affiliation is a well-known and well-researched social motive that has far-reaching influence on consumer behaviour. The affiliation need suggests that behaviour is strongly influenced by the desire for friendship, for acceptance, for belonging. People with high affiliation needs tend to be socially dependent on others.  Achievement A considerable number of research studies have focused on the achievement need. Individuals with a strong need for achievement often regard personal accomplishment as an end in itself. The achievement need is closely related to both the egoistic need and the self-actualization need. People with a high need for achievement tend to be more self-confident, enjoy taking calculated risks, actively research their environments and value feedback.
  • 5. Differences Between Motives , Motivating and Motivation  MOTIVE – give directions to human behaviour . A motive is an inner state that energizes activates , or moves and directs or channels behaviour towards goal. Motivating – implies an activity engaged into by an individual , by which he or she will channelize the strong motives in a direction that is satisfactory. Motivation – The study of motivation is concerned with why people choose to behave in a certain way. Needs – the most basic human requirements. Drives –tells how these needs translate into behaviour. Goals – what these behaviour’s aim to achieve.
  • 6. Positive and negative motivation : Motivation can be positive or negative . If an individual feels a driving force towards an object or person or situation , it is called positive motivation . Whereas a driving force compelling the person to move away from something or someone will be known as negative motivation . For instance VLCC conveys an approach motivation to individuals who have positive goal of fitness . Castrol GTX Extra Engine oil uses the avoidance motives , informing customers to avoid any other engine oil which could spoil the car engine and only use Castrol GTX Extra. Rational versus emotional motives : In a marketing context, the term rationality implies that consumers select goals based on totally objective criteria, such as size, weight, price or miles per gallon. Emotional motives imply the selection of goals according to personal or subjective criteria (e.g. pride, fear, affection or status ) .
  • 7. THE DYNAMICS OF MOTIVATION Motivation is a highly dynamic process . Under the dynamic constructs of motivation there are broadly three aspects which will be discussed: 1. Role of needs & Goals to adapt to the change in an individual’s motivation.  Needs are never fully satisfied.  new needs emerge as old needs are satisfied.  success and failure influence goals. 2. Frustration and Defense mechanism in the Needs . Frustration is the feeling experienced by an individual when he fails to achieve goals . While some may go to adopt defense mechanism to protect their self image or self esteem . The Defense mechanism may involve :  Aggression.  Rationalization .  Regression .  Withdrawal .  Projection.  Autism.  Repression .  Identification . 3. Arousal of motives .  Physiological Arousal .  Emotional Arousal .  Cognitive Arousal .  Environmental Arousal .
  • 8. Consumer Personality The most frequently quoted definition of personality is that of Gordon W. Allport. According to him, "Personality is the dynamic organization within the individual of those psychological systems that determine his unique adjustment to environment” Nature of personality 1. personality reflects individual differences; 2. personality is consistent and enduring; and 3. personality can change Theories of Personality This section briefly reviews three major theories of personality: 1. Freudian theory. 2. Neo-Freudian theory 3. Trait theory.
  • 9. Freudian Theory Sigmund Freud’s psychoanalytic theory of personality is a cornerstone of modern psychology. Freud’s psychoanalytic theory proposes that every individual’s personality is the result of childhood conflicts. These conflicts are derived from three fundamental components of personality: Id, Ego and Superego. According to the theory, the id (or libido) is the source of an individual’s strong basic drives and urges such as hunger, sex, aggression and self-preservation. The id operates on what is called the ‘pleasure principle’, that is, to seek immediate pleasure and avoid pain. The id is entirely unconscious and not fully capable of dealing with objective reality. Many of its impulses are not acceptable to the values of organized society. A newborn baby’s behaviour, for example, is governed totally by the id. The ego is the individual’s conscious control. It comes into being because of the limitations of the id in dealing with the real world by developing individual’s capabilities of realistic thinking and ability to deal suitably with her/his environment. Ego operates on what is called the ‘reality principle’. It is capable of postponing the gratification until that time when it will be suitably and effectively directed at attaining the goals of the id in a socially acceptable manner. The superego constitutes the moral part of an individual’s personality. It represents the ideal rather than the real, defines what is right and good and it influences the individual to strive for perfection. It operates in the unconscious and often represses certain behaviour that would otherwise occur based on the id, which could disrupt the social system. According to Freud, the ego manages the conflicting demands of the id and the superego.
  • 10. Neo – Freudian Theory Neo Freudian theorist felt that social relationships plays a vital role in the formation and development of personality . Alfred Adler viewed human beings as seeking to attain various rational goals, which he called style of life. He also placed much emphasis on the individual’s efforts to overcome feelings of inferiority (i.e. by striving for superiority). Harry Stack Sullivan, another Neo-Freudian, stressed that people continuously attempt to establish significant and rewarding relationships with others. He was particularly concerned with the individual’s efforts to reduce tensions, such as anxiety. Like Sullivan, Karen Horney was also interested in anxiety. She focused on the impact of child–parent relationships and the individual’s desire to conquer feelings of anxiety. Horney proposed that individuals be classified into three personality groups: compliant, aggressive and detached (CAD) . 1. Compliant individuals are those who move toward people and stress the need for love, affection, approval and modesty. Such individuals exhibit empathy, humility and are unselfish. 2. Aggressive individuals are those who move against people and emphasize the need for power, admiration, strength and the ability to manipulate others. 3. Detached individuals are those who move away from others and desire independence, freedom from obligations and self-reliance. They do not develop strong emotional ties with others.
  • 11. Trait Theory Trait theory states that human personality is composed of a set of traits that describe general response patterns. These theories are relatively recent in origin and use very popular personality concepts to explain consumer behaviour. The orientation, unlike previously discussed theories, is quantitative or empirical. J P Guilford describes a trait as any distinguishing and relatively enduring way in which one individual differs from another . Selected single-trait personality tests (which measure just one trait, such as self-confidence) are often developed specifically for use in consumer behaviour studies. These tailor-made personality tests measure such traits as consumer innovativeness (how receptive a person is to new experiences), consumer materialism (the degree of the consumer’s attachment to ‘worldly possessions’) and consumer ethnocentrism (the consumer’s likelihood to accept or reject foreign made products).
  • 12. Personality and Understanding Consumer Diversity Marketers are interested in understanding how personality influences consumption behaviour because such knowledge enables them to understand consumers better and to segment and target those consumers who are likely to respond positively to their product or service communications. Several specific personality traits that provide insights about consumer behaviour are examined next.  Consumer Innovativeness  Dogmatism ( Dogmatism is a personality trait that measures the degree of rigidity (versus openness) that individuals display towards the unfamiliar and towards information that is contrary to their own established beliefs)  Social Character  Need for Uniqueness  Optimum Stimulation Level (Research in this area indicates that high optimum stimulation levels are associated with more willingness to take risks; to be innovative, try new products and actively seek purchase related information )  Variety or Novelty Seeking
  • 13. Cognitive personality factors Need for Cognition Need for cognition refers to the degree of an individual’s desire to think and enjoy getting engaged in information processing. Such individuals tend to seek information that requires thinking. Opposite to this would be those who shy away from such information and focus on peripheral information (ELM model). For instance, a consumer high in need for cognition (NC) and looking at an ad for Apple computer is more likely to study and concentrate on the information contained in the ad. On the other hand, a consumer low in need for cognition would be more inclined to look at the beautiful picture of iMac, ignoring the detailed information about the computer model. Visualizers versus Verbalizers cognitive personality research classifies consumers into two groups: visualizers (consumers who prefer visual information and products that stress the visual, such as membership in a video club) or verbalizers (consumers who prefer written or verbal information and products, such as membership in book clubs). Some marketers stress strong visual dimensions in order to attract visualizers; others raise a question and provide the answer, or feature a detailed description or point-by-point explanation to attract verbalizers .
  • 14. Brand Personality We can divide or study the personality of a brand in five dimensions: 1 Sincerity of the brand: The image of the brand as being down to earth, very honest and cheerful. Brands that are sincere always fulfill their promises. Consumers do get the desired benefits out of them. Some brands like Raymond and Hero Honda Passion are viewed as sincere brand as people trust these brands and they never disappoint the consumers. 2 Excitement: There are some brands that show their image as being daring, imaginative and spirited. These brands target adventurous people, people with hedonic motives and people who want to experiment. Brands like Mountain Dew and Bajaj Pulsar 3 Competence : These are the types that are reliable, intelligent and successful. These brands are most trusted and they have an association with the consumers. 4 Sophisticated: These brands have an upper class feeling attached to them. They are charming and every one dreams of owning such brands. These brands have an image which is classy and glamorous. Brands such as Mercedes and Tommy Hilfiger 5 Rugged: These are the brand which have very western and masculine image. They are considered to be tough and outdoorsy. They are connected with men or in some cases women, with strong personality. Brands like Harley Davidson have rugged personality.
  • 15. Consumer Perception Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. It can be described as “how we see the world around us” ELEMENTS OF PERCEPTION Sensation Sensation is the immediate and direct response of sense organs to simple stimuli such as an advertisement, a brand name, or a package etc. Sensitivity to stimuli varies among individuals and depends on the quality of sensory receptors. Absolute Threshold Absolute threshold refers to the lowest level at which an individual can experience a sensation. At this point an individual can detect a difference between “something” and “nothing” and this point would be that individual’s absolute threshold for that stimulus. Differential Threshold Differential threshold is the smallest detectable difference between two values of the same stimulus. This is also referred as JND (Just Noticeable Difference). Subliminal perception When the stimulus is below the threshold of awareness and is perceived, the process is called subliminal perception
  • 16. DYNAMICS OF PERCEPTION The perceptual process involves three components : Perceptual Selection Perception is a selective process . An individual may look at some things, ignore others, and turn away from still others. In actuality, people receive (i.e. perceive) only a small fraction of the stimuli to which they are exposed. The selectivity of stimuli depends on consumer’s previous experience and motives, besides the nature of stimulus itself. One or more factors related to experience and motives affect consumer’s ‘selective exposure’ and ‘selective attention’ at a given time and can increase or decrease the probability that a certain stimulus will be perceived. 1) Nature of the stimuli 2) Expectations 3) Motives 4) Selective perception i. Selective Exposure ii. Selective Attention iii. Perceptual defense iv. Perceptual Blocking
  • 17. Perceptual organization All the selected stimuli from the environment are not experienced as separate and discrete sensations. Individuals tend to organise these sensations into a coherent pattern and perceive them as unified wholes. The specific principles underlying perceptual organisation are sometimes referred as Gestalt psychology. Gestalt is a German word and means “pattern” or “configuration.” Three most basic principles of perceptual organisation focus on ‘figure and ground’ relationships, ‘grouping’ and ‘closure’ Perceptual Interpretation Individuals, in their own unique manner, interpret the stimuli . People exercise selectivity as to which stimuli they perceive, and they organise these stimuli on the basis of certain psychological principles. The interpretation of stimuli is also uniquely individual, because it is based on what individuals expect to see in the light of their previous experience, on the number of plausible explanations they can envision, and on their motives and interests at the time of perception. A number of factors influence individuals that may distort their perceptions, such as physical appearances, stereotyping stimuli, irrelevant stimuli, first impressions, jumping to conclusions and halo effect etc.
  • 18. Learning Schiffman and Kanuk have defined learning, from a marketing perspective, as 'the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour'. Behaviour has two aspects, observable behaviour as well as non-observable cognitive activity . Elements of Learning  Motivation - Motivation is the driving force that impels individuals to action and is the result of unfulfilled need (s). If an individual has strong motivation to learn something, there is increased likelihood that learning will take place  Cues: Cues are relatively weak stimuli, not strong enough to arouse consumers but have the potential of providing direction to motivated activity  Response: The way an individual reacts to a cue or stimulus is the response and could be physical or mental in nature, leading to learning  Reinforcement: Most scholars agree that reinforcement of a specific response increases the likelihood for the response to reoccur. Reinforcement can be anything that both increases the strength of response and tends to induce repetitions of the behaviour that preceded the reinforcement.
  • 19. Behavioural Learning Theories Behavioural learning theories are sometimes referred to as stimulus-response theories because they are based on the premise that observable responses to specific external stimuli signal that learning has taken place . When a person acts (responds) in a predictable way to a known stimulus, he or she is said to have ‘learned’. Two behavioural theories with great relevance to marketing are classical conditioning and instrumental (or operant) conditioning. Classical Conditioning Ivan Pavlov, a Russian physiologist, was the first to describe conditioning and to propose it as a general model of how learning occurs. According to Pavlovian theory, conditioned learning results when a stimulus that is paired with another stimulus that elicits a known response serves to produce the same response when used alone.
  • 20. Strategic Applications of Classical Conditioning Three basic concepts derive from classical conditioning: repetition , stimulus generalisation and stimulus discrimination . Each of these concepts is important to the strategic applications of consumer behaviour . Repetition - Repetition increases the strength of the association between a conditioned stimulus and an unconditioned stimulus and slows the process of forgetting. However, research suggests that there is a limit to the amount of repetition that will aid retention . For example, different Pepsi commercials continue showing different settings and endorsers but the punch line “yeh dil mange more” continues. The commercials of FeviQuick continue with the theme “chutki mein chipkae” in different humorous settings. Stimulus Generalisation In his experiments, Pavlov also demonstrated that the dogs could learn to salivate on hearing somewhat similar sound produced by jingling keys. This was the case of stimulus generalisation in dogs. Stimulus generalisation occurs when two stimuli are seen as similar and the effects of one, therefore, can be substituted for the effects of the other. This principle states that a new but similar stimulus or stimulus situation will produce a response that is the same or similar as that produced by the original stimulus. Stimulus Discrimination Stimulus discrimination is just opposite to stimulus generalisation. Unlike reaction to similarity of stimuli, discrimination is a reaction to differences among similar stimuli. The ability to discriminate among stimuli is learned. For example, frequent users of a brand are better able to notice relatively small differences among brands in the same product category. Not taking any chances, marketers use advertising to communicate brand differences that physical characteristics alone would not convey. The concept of “product or brand positioning” is based on stimulus discrimination which strives to create a brand’s unique image in the consumers’ minds
  • 21. Instrumental conditioning Instrumental conditioning also involves developing association between stimulus and response but requires the subject to discover a correct response that will be reinforced. Any response elicited is within the conscious control of the subject. The foremost proponent of instrumental conditioning was B F Skinner. In his experiments, the subjects were free to respond in several ways. Skinner worked with small animals in his experiments, such as rats and pigeons. He developed a box, called after his name as “Skinner box,” in which he placed experimental animals.
  • 22. Cognitive Learning Theory Cognitive learning approach has dominated the field of consumer behaviour in recent years. Learning that takes place as a result of mental activity is termed as ‘cognitive learning’. Cognitive theorists do not endorse the view that learning is based on repetitive trials leading to the development of links between stimuli and responses because consumer behaviour typically involves choices and decision-making. According to their view, learning is an intellectual activity based on complex mental processes involving motivation, perception, formation of brand beliefs, attitude development and change, problem solving and insight. Even sudden learning may also result when someone is faced with a problem. Typically, though, we are most likely to look for reliable information, indulge in analysis, evaluate what we learn and try to make a balanced decision. As we acquire more experience and familiarity with different products and services, our cognitive ability and learning increases to compare various product attributes improves.
  • 23. Consumer Attitude In a consumer behaviour context, an attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object. Each part of this definition describes an important property of an attitude and is critical to understanding the role of attitudes in consumer behaviour. Characteristics of Attitude 1. Difficult to measure 2. May create inflexibility and stereotypes 3. Formed largely from continuous process of socialization 4. Once formed not easy to change Structural Models & Theories of Attitude  Tri-component Attitude Model According to this model, attitudes are consist of three main components: 1. Cognitive component (knowledge, beliefs) 2. Affective component (emotions, feelings) 3. Conative component (behavioural aspect)
  • 24.  Multi-attribute Attitude Models According to these models, consumers’ attitudes about an attitude “object” is a function of consumers’ perception and assessment of important attributes or beliefs held about a certain attitude “object.” The attitude ‘object’ may be a product, service, or issue etc. In other words, many beliefs about attributes are evaluative in nature .  Attitude-toward-object Model This is the simplest model and is particularly appropriate for measuring attitudes towards product/service category, or specific brands. A product has many attributes (size, features, style and so on) and an individual will process information and develop beliefs about many of these attributes. Consumers generally have favourable attitudes towards those products or brands that they believe have an acceptable level of positive attributes. Conversely, they have unfavourable attitudes toward those brands that they believe do not have an acceptable level of desired attributes, or have too many negative attributes .  The Attitude Towards Behaviour Model The attitude towards behaviour model is the individual’s attitude towards behaving or acting with respect to an object rather than the attitude towards the object itself . The appeal of the attitude towards behaviour model is that it seems to correspond somewhat more closely to actual behaviour than does the attitude towards object model.
  • 25.  Attitude towards the ad models In an effort to understand the impact of advertising or some other promotional vehicle (e.g. a catalogue) on consumer attitudes towards particular products or brands, considerable attention has been paid to developing what has been referred to as attitude towards the ad models .
  • 26. Attitude Formation Attitude formation can be divided into three areas : i. How attitudes are learned ii. Sources of influence on attitude formation iii. Impact of personality on attitude How attitudes are learned When we speak of the formation of an attitude, we refer to the shift from having no attitude towards a given object (e.g. an MP3 player) to having some attitude towards it (e.g. having an MP3 player is great when you want to listen to music while on a treadmill at the gym). The shift from no attitude to an attitude (i.e. the attitude formation) is a result of learning . Sources of influence on attitude formation The formation of consumer attitudes is strongly influenced by personal experience, the influence of family and friends, direct marketing and mass media . Personality Factor Personality also plays a critical role in attitude formation. For example, individuals with a high need for cognition (i.e. those who crave information and enjoy thinking) are likely to form positive attitudes in response to advertisements or direct mail that are rich in product-related information. On the other hand, consumers who are relatively low in need for cognition are more likely to form positive attitudes in response to advertisements that feature an attractive model or well-known celebrity .
  • 27. STRATEGIES OF ATTITUDE CHANGE 1. changing the consumer’s basic motivational function, 2. associating the product with a special group, event or cause, 3. resolving two conflicting attitudes, 4. altering components of the multi-attribute model, and 5. changing consumer beliefs about competitors’ brands  changing the consumer’s basic motivational function According to this approach, attitudes can be classified in terms of four functions: the utilitarian function , the ego-defensive function , the value-expressive function and the knowledge function The Utilitarian Function We hold certain brand attitudes partly because of a brand’s utility. When a product has been useful or helped us in the past, our attitude towards it tends to be favourable. One way of changing attitudes in favour of a product is by showing people that it can serve a utilitarian purpose that they may not have considered. The Ego-Defensive Function Most people want to protect their self-images from inner feelings of doubt – they want to replace their uncertainty with a sense of security and personal confidence. Advertisements for cosmetics and personal care products, by acknowledging this need, increase both their relevance to the consumer and the likelihood of a favourable attitude change by offering reassurance to the consumer’s self-concept .
  • 28. The Value-Expressive Function Attitudes are an expression or reflection of the consumer’s general values, lifestyle and outlook. If a consumer segment generally holds a positive attitude towards owning the latest designer jeans, then its members’ attitudes towards new brands of designer jeans are likely to reflect that orientation . The Knowledge Function Individuals generally have a strong need to know and understand the people and things they encounter. The consumer’s ‘need to know’, a cognitive need, is important to marketers concerned with product positioning . Associating the product with a special group, event or cause Attitudes are related, at least in part, to certain groups, social events or causes. It is possible to alter attitudes towards products, services and brands by pointing out their relationships to particular social groups, events or causes. Companies regularly include mention in their advertising of the civic and public acts that they sponsor to let the public know about the good that they are trying to do.  Resolving two conflicting attitudes Attitude-change strategies can sometimes resolve actual or potential conflict between two attitudes. Specifically, if consumers can be made to see that their negative attitude towards a product, a specific brand or its attributes is really not in conflict with another attitude, they may be induced to change their evaluation of the brand (i.e. moving from negative to positive).
  • 29.  Altering components of the multi-attribute model Earlier in this chapter we discussed a number of multi-attribute attitude models. These models have implications for attitude-change strategies; specifically, they provide us with additional insights as to how to bring about attitude change: 1. changing the relative evaluation of attributes, 2. changing brand beliefs, 3. adding an attribute, and 4. changing the overall brand rating.  Changing beliefs about competitors’ brands Another approach to attitude-change strategy involves changing consumer beliefs about the attributes of competitive brands or product categories. However, comparative advertising can boomerang by giving visibility to competing brands and claims .
  • 30. Conclusion The key to a company's survival, profitability, and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitors . By studying consumer individual characteristics helps marketer to set bases for market segmentation and also have better understanding of consumer behaviour.
  • 32. Refrences • Suja R. Nair (2010), Consumer Behavior in Indian Perspective: Text and cases, 2nd Edition, Himalya Publishing House. • Schiffman, Leon G; Leslie Lazar Kanuk & S. Ramesh Kumar (2013). Consumer Behavior, 10/e, Pearson Education, New Delhi.