MMPM-001

Consumer Behaviour

School of Management Studies

Indira Gandhi National Open University
New Delhi
COURSE DESIGN AND PREPARATION TEAM
Prof. K. Ravi Sankar Prof. Madhulika Kaushik
Director, School of Management Studies, Vice Chancellor,
IGNOU, New Delhi Usha Martin University, Ranchi, Jharkhand
Prof. Ravi Shankar Prof. Santosh Dhar
Indian Institute of Foreign Trade Dean, Faculty of Doctoral Studies and
New Delhi Research, Shri Vaishnav Vidyapeeth
Vishwavidyalaya, Indore
Prof. A Vidhyadhar Reddy
Institute of Public Enterprise Prof. Darshana R Dave
Hyderabad, Telangana Dean, Faculty of Management,
Sardar Patel University,
Prof. Ajit Upadhyaya Vallabh Vidyanagar, Gujarat
Director
Prestige Institute of Management Dr. Chetan Srivastava
Dewas, M.P. Associate Professor
SOMS, University of Hyderabad
Prof. Rajeev Sijariya
ABV School of Management and Prof. Rakesh Khurana*
Entrepreneurship, JNU, New Delhi Pro-Vice Chancellor
Indira Gandhi National Open University,
Prof. Abraham Koshy* New Delhi
Indian Institute of Management
Vastrapur, Ahmedabad Prof. Y.L. Grover*
Management Consultant, New Delhi
Prof. Deepak Chawla*
International Management Institute, Prof. Mukul Gupta*
New Delhi International Management Institute,
New Delhi
Mrs. Neerja Wable*
Indian Market Research Bureau, Shri Saurabh Khoshla*
New Delhi Managing Director
Tulika Advertising Agency, New Delhi
Prof. Sudas Roy*
Indian Institute of Management, Calcutta Mr. Darlie Koshy*
National Institute of Fashion Technology,
Dr. L.M. Johri* New Delhi
Faculty of Management Studies
University of Delhi Dr. N. Kinra*
Indian Institute of Management, Lucknow
Prof. A.P. Arora*
Indian Institute of Management, Mr. D. K. Bose*
Vastrapur, Ahmedabad Media Director, R.K. Swamy,
BBDO New Delhi
Prof. Mohan Aggarwal*
XLRI, Jamshedpur Mr. Saurabh Jain
School of Management Studies
Mr. T.V. Vijay Kumar, IGNOU, New Delhi
School of Management Studies,
IGNOU, New Delhi Course Coordinator
Prof. Rajeev Kumar Shukla,
Course Editor School of Management Studies
Prof. Madhulika Kaushik IGNOU, New Delhi

Acknowledgement : Parts of this course is adapted from the earlier MS-61: Consumer Behaviour
course and the persons marked with (*) were the original contributors and the profiles are as it was
on the date of initial print.

PRINT PRODUCTION
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Assistant Registrar,
MPDD, IGNOU, New Delhi-110 068

May, 2022
 Indira Gandhi National Open University, 2022
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 Course Contents
Pages

BLOCK INTRODUCTION 5
Block 1 CONSUMER BEHAVIOUR-ISSUES AND 7
CONCEPTS

Unit 1 Consumer Behaviour- Nature, Scope, Models and Applications 9

Unit 2 Consumer Behaviour and Life-style Marketing 33
Unit 3 Organisational Buying Behaviour 52

Block 2 INDIVIDUAL INFLUENCES ON BUYING 73

BEHAVIOUR

Unit 4 Perceptions 77
Unit 5 Learning and Memory 87
Unit 6 Attitude and Attitude Change 103
Unit 7 Personality and Self-concept 116
Unit 8 Consumer Motivation and Involvement 133

Block 3 GROUP INFLUENCES ON CONSUMER 151

BEHAVIOUR

Unit 9 Reference Group Influence and Group Dynamics 155

Unit10 Family Buying Influences, Family Life Cycle and Buying Roles 182
Unit 11 Culture and Sub-culture Influences 198

Block 4 THE BUYING PROCESS 213

Unit 12 Problem Recognition and Information Search Behaviour 217

Unit 13 Information Processing 230
Unit 14 Alternative Evaluation 244
Unit 15 Purchase Process and Post Purchase Behaviour 257
COURSE INTRODUCTION
Dear Learners,
Marketing as a function aimed at satisfying consumer needs and wants through the
exchange process is a key to achieving organisational goals. In order to be able to
satisfy consumer needs, you need to first define who your consumers are and what
benefits they seek, when and how they buy the products and services being offered by
you. Why do these consumers buy your brand and not that of the competitors? How
do your consumers perceive your product or service to suit their needs? Do they feel
satisfied or dissatisfied after having bought your product? And how are these feelings
reflected in their subsequent behaviour as consumers? Seeking answers to all these
questions and related issues forms the interesting field of Consumer Behaviour.
Each and every person is a consumer. Based on both psychological and sociological
perspectives, this course introduces the concepts of individual and organisational buyer
behaviour, models of consumer behaviour, and marketing applications. In the context
of the buying process, this course discusses both individual influences such as perception,
learning, attitude, personality, self-concept, lifestyle, motivation, and involvement as
well as group influences such as family, reference group, cultural, and sub-culture. The
course is divided into four blocks and has 15 units in all. Activities and project
assignments to aid application of the concepts of consumer behaviour have been specially
added to facilitate learning.
Learning Outcomes
After studying this course, you should be able to:
 Discuss the nature, scope, models, and applications of consumer behaviour
in marketing decisions.
 Describe the buying decision-making process and the related theoretical
models.
 Explain the individual influences on buying decisions, such as perception,
learning, attitude, personality, motivation, and involvement, and discuss their
practical implications.
 Analyse group influences such as family, reference group, culture, and
subculture on buying behaviour.
 Compare and contrast the consumer and organisational buying decision
processes.
 Appreciate the emergence of online buying behaviour and its implications.
 Create and assess marketing strategies based on an understanding of consumer
buying behaviour.
 Block-1
Consumer Behaviour-Issues
and Concepts
BLOCK 1 CONSUMER BEHAVIOUR-ISSUES
AND CONCEPTS
In this first block of our course on Consumer Behaviour we have focused on the
nature and scope of consumer behaviour, with special reference to some major issues.
This block initiates a discussion on the components of the field of consumer behaviour,
models of consumer behaviour including online buying behaviour, and the major
applications to which the study of consumer behaviour can be put. Psychographics,
the study of lifestyles has emerged as an important aspect of the field. The second
unit in the block deals with lifestyle marketing and its implications for markets today.
The final unit provides a comprehensive coverage of organisational buyer behaviour,
its determinants, and technological developments that have impacted organisational
buying behaviour.
Unit 1 CONSUMER BEHAVIOUR- NATURE, SCOPE, MODELS AND
APPLICATIONS
Unit 2 CONSUMER BEHAVIOUR AND LIFE-STYLE MARKETING
Unit 3 ORGANISATIONAL BUYING BEHAVIOUR
Consumer Behaviour-Issues
and Concepts

8
 Consumer Behaviour-
UNIT 1 CONSUMER BEHAVIOUR-NATURE, Nature, Scope, Models and
Application
SCOPE, MODELS AND APPLICATION
Learning outcomes
After studying this unit, you should be able to:
 define consumer behaviour
 describe the nature of consumer behaviour
 explain the scope of consumer behavior
 discuss the various models of Consumer Behaviour and explain their
applications
 discuss the emergence of online buying behaviour and its implications
 outline the broad areas of application of consumer behaviour in marketing
decisions
Structure
1.1 Introduction
1.2 Nature of Consumer Behaviour
1.3 Who is a Consumer?
1.4 What is a Consumer Decision?
1.5 Scope of Consumer Behaviour
1.6 Decision Process
1.7 Individual and Group Determinants of Consumer Decisions
1.8 Models of Consumer Behaviour including Online Buying Behaviour
1.9 Applications of Consumer Behaviour in Marketing
1.10 Summary
1.11 Key Words
1.12 Self-assessment Questions
1.13 Project Questions
1.14 Further Readings

1.1 INTRODUCTION
In your core course on Marketing Management MMPC-006, you have already
studied that Marketing as a function is aimed at satisfying consumer needs and wants
through the exchange process as a key to achieving organizational goals. In order
to be able to satisfy consumer needs, you need to first define who your consumers
are and what benefits do they seek,when and how they buy the products and services
being offered by you. Why do these consumers buy your brand and not that of the
competitors? How do your consumers perceive your product or service suit their
needs? After having bought your product do they feel satisfied or dissatisfied? And
how are these feelings reflected in their subsequent behavior as consumers? Seeking 9
Consumer Behaviour-Issues answers to all these questions and related issues forms the interesting field of Consumer
and Concepts
Behaviour
It is important to the survival and growth of your organization that you regularly
raise such questions and attempt to find answers to them. It is only through such
a process of questioning and seeking that you can be sure of keeping your firm
on the growth path. A thorough knowledge of your consumers and an understanding
of their behavior as consumers are essential if you wish to continue to remainin
business.
This and the following units in this course provide you insights into the complex but
extremely interesting field of consumer behaviour. After having read this unit, you
would be able to spell out who are consumers, why they behave in the manner
that they do, what influences their behaviour and how you as a marketer can utilize
your knowledge of the influencing factors in your favor. This is the most important
aspect of consumer behaviour which has practical implications for firm. Once you
have an understanding of the behaviour of consumers and know that their behaviour
can be influenced, you can initiate a number of steps to do so. This unit covers the
nature, scope and applications of Consumer behaviour.
In the digital age, internet access and use, the deep penetration of smartphones
and the ubiquitous social media have created major changes in the way people search
for goods, evaluate their alternatives and acquires products and services.
Digital age has allowed people to browse and buy items right from the palm of
their hands, without leaving their seats. The internet offers the information buyers
need to know about products via a simple search. In fact, over 56% of shoppers
in India turn to search engines before they make a purchase. Even referrals have
transitioned online in the form of reviews and testimonials. This marketing strategy
dramatically influences a prospective buyer in completing a purchase conveniently,
as more and more people believe online reviews as much as their peers.
In order for marketers to succeed in the digital age, marketers will need to develop
a clear understanding of the way people shop, and the shifting influences on consumer
decision making. We will be covering this aspect of emerging online behavior later
in this unit

1.2 NATURE OF CONSUMER BEHAVIOUR

Consumer behavior can be defined as:
“The decision process and physical activity engaged in when evaluating, acquiring,
using or disposing of goods and services.” So, whenever you feel the need for a
product or service, all the activities you engage in like looking for the various alternatives
that could satisfy your need, searching for information on these alternatives, seeking
advice from other users, carefully evaluating your alternatives, deciding on your
selection, then actually buying and using the product or service, are part of consumer
behaviour. Also, once you have started using the product/service, your evaluation
of the use experience, the opinion you form and your intention to act in a certain
way when faced with similar need, also forms part of consumer behaviour.
This definition raises a few queries in our minds-what or who are consumers? What
10 is the decision process that they engage in and what are the various influences on
that decision? Answers to these questions help define the broad nature of consumer Consumer Behaviour-
Nature, Scope, Models and
behaviour. Application

As a field of study, Consumer behavior is the study of consumers and the processes
they use to choose, use (consume), and dispose of products and services, including
consumers’ emotional, mental, and behavioral responses.

1.3 WHO IS A CONSUMER?

A “consumer” is anyone who typically engages in any one or all of the activities
described in our definition. Traditionally consumers have been defined very strictly
in terms of economic goods and services, i.e., goods and services purchase wherein
a monetary transaction is involved. However, over time this concept has been widened
to include goods and services where a monetary exchange is not involved. Thus,
the services of voluntary organizations have also been included in this definition,
and users of the services of these organizations are also viewed as consumers. To
put in very generic terms, a consumer is a person or a group who intends to order,
orders, or uses purchased goods, products, or services primarily for personal, social,
family, household and similar needs, not directly related to entrepreneurial or business
activities (Wikipedia). The logic behind this approach is that consumers of free service
also engage in the same kind of decision process and physical activity as consumers
of economic goods and services. A “customer” is one who actually purchases a
product or service from a particular shop or organization (offline/ online). A customer
is always defined in terms of a specific product or company.

However, the term consumer is a far wider term, encompassing not only the actual
buyer or customer but also all its users, i.e., consumers. There are two situations
when this distinction between consumers and customers may occur, i) when the
service or product is provided free, and ii) when the customer is not the actual
user of the product/service or is only one of the many users. The second situation
needs greater elaboration as it is of critical significance for us.

Very often, the actual customer making a purchase may not be doing so for himself
or herself. For instance, in case of a father buying a box or crayons for his four-
year old daughter, the customer is the father but the actual user or consumer is his
daughter. Another case may be where a father is buying a TV for the family members.
The father is the customer but all the family members are the consumers. The two
vital elements to remember in all consumer situations are- a) the influence on purchase
from other people and b) the roles taken on by different people in consumer behaviour
situations.

In the instance of the father buying crayons for his daughter, the latter may not
have had influence at all on the purchase; the father is the decision maker and
buyer and the daughter is the user. In case of the father buying a TV for his
family, it is quite likely that the wife and children may have exerted considerable
influence on the decision. The father is simply, the buyer, while other family
members may be influencers and all, including the father, are users. Table 1.1
presents one way of classifying the roles that people can take on in the context
of consumers behavior. 11
Consumer Behaviour-Issues Table1.1 Some Consumer Behaviour Roles and Role Description
and Concepts
Role Role Description
Initiator : The person who determines that some need or want is not
being met.
Influencer : The person who intentionally/unintentionally influences the
decision to buy the actual purchase and/or
use of product or service.
Buyer : The person who actually makes the purchase.
User : The person who actually uses or consumes the product or
service.

You will read more about the different buying roles and their influence on family
decision making in Unit10 of this course. These buying roles may vary in different
buying situations. While studying consumer behaviour we have to keep in mind all
the various consumer roles that can possibly be taken on. But in practical terms it
may be very difficult to study all these roles. Therefore, the emphasis of study is
on one role that of the buyer. The reason for this is that this is the only part of the
behavior which is overt and visible. It is only through the buyer, whom we can easily
identify, that we can attempt to study the influences exerted on the purchase by
other role players

Activity1
Name three recently bought products by you in which you are both the buyer
and user. Try and identify the influence, if any, exerted by another person in
your purchase decision

(1) Product Influencer/Influence

1.
2.
3.
(2) Name three products purchased by your family in which you played the
role of influencer. Can you specify the nature of influence?
(2) Product Influencer/Influence
1.
2.
3.

1.4 WHAT IS A CONSUMER DECISION?

We have defined consumer behaviour as the “decision process” and “physical activity”
engaged in by individuals. The physical activity which we focus upon in the course
of consumer behaviour is that of making the purchase, as explained in the previous
12
section. But there are a number of influences affecting the purchase and a number Consumer Behaviour-
Nature, Scope, Models and
of individuals may be involved in exerting these influences. So, the purchase action Application
that is visible to us may be the result of an interplay of a number of complex and
hidden variables which may have influenced the ultimate purchase activity. The final
purchase is just one activity in the entire series of physical and mental activities that
may have occurred in this whole process. Some of these activities may precede
the purchase while others may take place later. As, all these activities exert influence
on the purchase, they are considered a part of consumer behaviour, more specifically
a part of the decision process.

Let us go back to the example of a father, we call Mr. Bannerjee buying a TV for
his family. It is possible that the consumer behaviour involving mental processes
and activities may have taken place in the following sequence and manner.

Mr.Bannerjee’s teenage daughter, sees a smart TV at her friend’s house. She then
raises the issue of buying a smart TV to replace their existing colour TV. The family
discusses the issue and agrees that it is indeed time they bought a smart TV which
will enable them to enjoy both the cable-based channels and all digital platform-
based entertainments offered by providers like Netflix, Sony Max, Prime Video,
Hotstar and others. The next day Mr. Bannerjee discusses the matter with his friend
and colleague, Mr. Chandra. He visits Mr. Chandra’s home to see for himself the
quality of the Samsung Smart TV that he has. Mrs. Bannerjee also finds out more
about the various brands, prices and features of different brands, from her sister
who recently purchased a smart TV. Her sister has a Sony Bravia TV and
recommends the same. Meanwhile, Mr. Bannerjee’s daughter checks out the brands
of TVs that her various friends have at their respective homes and concludes that
Philips or Haier may be better choices. In the next few days, theentire Bannerjee
family makes it a point to carefully study any advertisements of Smart TVs that
appear in the newspaper, or on social media or TV. At all social occasions they
raise the question of which is the best Smart TV to buy amongst their friends and
relatives and mentally, mark the different positive and negative points of different
brands. Within two weeks, the Banerjees have collected enough information to take
a decision to buy the TV, but they need more specific information. They scour the
websites of the different manufacturers and also look at product ratings by
independent rating providers as well as customer ratings on social media. To get
the actual feel of the product they use a weekend to visit the nearby mall to see
the different TVs on display in the respective outlets.

On comparing features like price, quality of transmission, looks, features like warranty
and tech support, they finally decide to buy a Samsung Curve. The activity and
thought process which resulted in the final purchase of the TV started well before
the actual purchase and was spread over a period of two to three weeks. This
entire process forms part of consumer behaviour.

Depending on the nature of product or service in question, the mental decision

process accompanying the physical act of purchase may vary from very simple to
extremely complex, and from being instantaneous in nature to time consuming and
elaborate. But they all constitute consumer behaviour. Thus, not only the overt,
observable physical behaviour exhibited in the art of making a purchase, but all the
13
Consumer Behaviour-Issues accompanying, preceding and following mental processes and activities also are an
and Concepts
integral part of consumer behaviour.

In case of the stock of regular brands of toilet soap being depleted at home, its
purchase may need no elaborate decision process or activity of comparison and
evaluation. Rather the purchase decision is a replenishment decision and almost
an automatic one.

Activity2

Recall the purchase of the last consumer durable in your family. It could be a
refrigerator, a two-wheeler or an air conditioner. Describe the decision process
and physical activities, preceding the purchase undertaken by the various member
of the family.

....................................................................................................................

....................................................................................................................

1.5 SCOPE OF CONSUMER BEHAVIOUR

The scope of a subject refers to everything that is studied as part of that subject.When
we set out to explain the scope of consumer behaviour, we need to refer to all that
which forms part of consumer behaviour.

The scope of consumer behaviour has been briefly touched upon in the previous
section wherein it was explained that how consumer behaviour includes not only
the actual buyer and his act of buying but also the various roles played by different
individuals and the influence they exert on the final purchase decision. In this
section we shall define and explain the scope of study of consumer behaviour.

To define the scope of a subject it is important to set parameters or a framework

within which it shall be studied. Loudon and Della Bitta have presented one such
framework for studying consumer behaviour and understanding its scope, which
is shared in Figure 1.1. This framework is made up of three main sections-the
decision process as represented by the inner-most circle, the individual determinants
in the middle circle and the external environment which is represented by the outer
circle.The study of all these three sections constitutes the scope of consumer
behaviour.

Let us look at the constituents of the framework briefly as they are explained in
detail in the subsequent units.

1.6 DECISION PROCESS

The decision process as depicted in the Figure 1.1 comprises a series of sequential
steps. The first step is when the consumer becomes aware of the fact that he has a
problem. The problem may be that he has run out of tooth paste or that he needs
new sofa for the drawing room or that he needs to engage the services of an accountant
to help him with his tax planning.
14
 Consumer Behaviour-
Nature, Scope, Models and
Application

Figure1.1: A simplified framework for studying consumer behaviour, adapted from

Consumer Behaviour by Loudon and Della Bitta

Problem recognition thus occurs when the consumer recognizes that he has an
unfulfilled need. The desire to fulfil this need triggers off the other steps of information;
search and evaluation and finally results in the purchase.
However, not all situations of problem recognition automatically led to the next step
of information search and evaluation. A consumer may recognize the need for a
vehicle to cover the long distance from his home to office and back. But if he does
not have the means to buy a vehicle for himself, then his need would remain a need,
and despite his recognition of the problem, the ensuing steps will not take place.
The constraints can be lack of availability or lack of ability to buy or even lack of
time to go through the purchase process.
Only if there are no constraints preventing further behaviour, the consumer will set
out to search for information relevant to the problem. The information search can
take place without the consumer even being aware of it or it may take the form of
a deliberate, prolonged search. To replenish the stock of tooth paste, a regular
customer knows from memory and past experience the brand, the package size he
wishes to buy, and the place from where he would like to buy. Of course, if it is a
first-time customer for toothpaste then he, would search for information from the
external environment, such as his friends, shopkeepers, and advertisements. Having
gathered the relevant information, the consumer needs to evaluate it to arrive at
the decision regarding which tooth paste best fulfils his need. You may also recall
that sometimes being exposed to an ad or seeing a new product in use, may trigger
your awareness of the need.
15
Consumer Behaviour-Issues Having arrived at the decision, the consumer sets out to make the purchase. At
and Concepts
this point the consumer has to make a choice regarding which outlet to buy from
or whether to order the product online. After the purchase when the consumer uses
the product, he either feels satisfied with it and concludes that he has made the
right decision or he feels dissatisfied and decides that his decision was not correct.
This dissatis faction-set in motion a search for alternative choices and fresh evaluation.
It is thus a continuing cycle of decision process.
Activity3
Recall the last time you purchased toilet soap, a book for your leisure reading
and a dinner at a restaurant.Try and spell out the various physical and mental
activities which you indulged at each stage of the decision process, starting
from problem recognition. (For instance, the problem recognition in case of
toilet soap occurred when you had to go on an official tour and needed
necessary toiletries to carry along. So, you write “need to pack toiletries for
travel” in front on problem recognition and under the heading toilet soap, in
the matrix given below.) Similarly, you would fill in all the details in case of the
three purchase decisions.

(Hint: After dinner at a restaurant, wherein you are satisfied with the food
and service, you may tell the manager what an enjoyable evening you had
and make a mental note of the restaurant so that the next time you decide
to visit a restaurant, you consider this as one of the possibilities. On the
other hand, if you found the food to be of poor quality and the service
slow and inefficient, you may like to make a written complaint in the customer
book. And also, you strike off this restaurant from your mental list of
alternatives.)

1.7 INDIVIDUAL AND GROUP DETERMINANTS

Individual Determinants of Behaviour
Consider the case of two sisters brought up in one family environment with exactly
the same educational background living in one house and yet exhibiting very different
tastes and purchase decisions. While one is regular consumer of Dettol Soap, India
Today and buys ready-made garments the other sister uses only Lux International,
reads Stardust and buys hi-fashion clothes from boutiques. What is it that accounts
for the vast differences of consumer behaviour in the situation of these two sisters?
The answer to this can be found in the factors defined in the middle circle of Figure
1.1 i.e., personal motivation and involvement, attitudes, self-concept and personality,
learning, memory and information processing
16
Motivation and Involvement Consumer Behaviour-
Nature, Scope, Models and
Application
All of us are consumers, with in a given society all of us have the same alternatives
to choose from and yet not two consumers may exhibit identical consumer behaviour.
The reason for this is that each one of us is a unique individual with a unique set of
needs, desires and motivation. Motivation is that internal force which arouses or
activates some need and provides direction of behaviour towards fulfilment of the
need. A motivation may be physiological in nature directed towards fulfilment of
biological needs such as hunger and thirst, other motivations are psychological in
nature focusing on the satisfaction of psychological desires such as the need for
seeking status, job satisfaction, or achievement. Everyone has both physiological
and psychological motivations, but we each fulfil them in different ways. One consumer
satisfies his thirst by drinking water, the second quenches it by having a Thums Up,
the third drinks Bisleri Mineral Water while a fourth prefers soda. For one consumer,
buying the latest SUV is a way of seeking status, another satisfies his want for status
by becoming a member of the best club in town, while for a third having a luxury
watch a status symbol.
The reason why we adopt different methods of satisfaction of our motivations is
because of the differing level of personal involvement in various activities. Involvement
refers to the personal relevance or importance of a product or service that a consumer
perceives in a given situation. For a professional photographer the choice of a camera
is a consumer behaviour situation of high involvement because the camera is his
most important professional tool. The photographer would be motivated to buy the
best possible camera, irrespective of the price tag and would spend time in deliberating
upon his choice. For another consumer, a camera is just ameans of recording important
family events and with the camera features in mobile phones which is convenient
to handle would fulfill the need.
High involvement leads to a highly motivated state of mind as in case of the professional
photographer. High involvement and high motivation lead to a consumer behaviour
process which is distinctively different from that of a low involvement and low
motivation.
Attitudes
Attitudes are our learned predispositions towards objects, people and events. It is
our attitudes which influence how we respond to different products and services.
Attitudes are not inborn or innate inus. Rather they are an outcome of learning from
our social and cultural setting, forum and informal learning processes and experiences.
Till a few years ago most housewives had a negative attitude towards frozen,
dehydrated or instant food. But today, with more women joining the work force,
such products are viewed as a convenience and instant, quick to cook meals are
looked upon as a needed convenience. Similarly, our attitude towards saving is
undergoing radical changes. Instead of saving and leading a simple, frugal life, people
prefer to have a better lifestyle today rather than save for tomorrow.
Our attitudes influence our purchase decisions and consumption. An attitude which
is averse to risk taking will never make for a consumer investing his money in shares
and stocks, such a consumer would always prefer ‘safe’ investments even if though
rate of return may be comparatively lower.
17
Consumer Behaviour-Issues Personality and Self-concept
and Concepts
Personality is the sum total of the unique individual characteristics that make
each one of us what we are. You will be studying about this important variable
in Unit 7.

A related construct, Self-concept or self-image is the way we perceive ourselves

in a social framework. We always tend to buy only those products and services
which we think fit or match with our personality or are in conformity with our self-
concept.

Marketers also try to give a distinct image or personality to their products which is
as close as possible to that of the target consumers. Raymond’s uses the image of
a complete man in a variety of settings to convey exclusivity and class. It is intended
to match the aspirational self-concept and image that would match well with the
self-concept of their target consumers.

Learning and Memory

We today live in a world of information overload everywhere as the available

information on the various media all around us is simply overwhelming. How much
of the information that you are exposed to everyday, can you really recall?

We only remember that which is of relevanceand importance to us, or where we

have a motivation to remember. Consider a situation where a family is viewing world
cup final match programme and the accompanying advertisements. Out of the 15-
20 advertisements, the seven-year-old daughter may remember the advertisement
for an attractive school bag, the husband (who drives the car) may remember the
advertisement of a new type of anti-skid car tyres and the wife may remember the
advertisement for a new model of mixer-grinder. This is because each one of them
has a motivation for different products.

Our motives, attitudes and personality act as filters by letting in only relevant
information and keeping all other information out. Surely, we would see the product,
hear its jingle but chances are it will not register in our minds. We will remember it
only for a short while and then forget it.

This is known as selective retention. We retain in our memories only selective

information. You will learn more about these individual influences on consumer behavior
in Unit 5 of this course.

InformationProcessing

This refers to the process and activities which consumers engage in while gathering,
assimilating and evaluating information. As discussed in the previous paragraphs,
we only attend to selective information. The manner in which we assimilate and
evaluate this selective information is determined by our motives, attitudes and
personality and self-concept. Thus, the same information may be evaluated in a
different manner by two different individuals and the ensuing response may also be
very different. A half-filled glass elicits the response “a half-empty glass from, one
consumer while another reacts by saying it is”half-full”.
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 Consumer Behaviour-
Activity 4 Nature, Scope, Models and
Application
Suppose you have won Rs.50000 in a lucky draw. The following optional uses
of the money are available to you.
a. Buying a Microwave oven
b. Go on a holiday with your family/friends
c. Buy shares
d. Buy a personal computer for use in the house
e. Buy a membership to a club
f. Deposit it in a fixed deposit account.
Rank the above options in order of your preference. Try and analyze how your
personal motives, attitudes and personality affected your ranking. Now put
the same question to a colleague in your office/friend/spouse. Is their response
different fromyours?
Try and explain the response in terms of the determinants of individual behavior
explained in this section.

1.8 EXTERNAL ENVIRONMENT OR GROUP

INFLUENCES
As shown in Figure 1.1 the external environment is made up of six specific influences
and all other remaining influences are covered under the heading “other influences”.
Cultural Influences
The first of the influences is that of cultural variables. Culture is defined as the complex,
sum total of knowledge, belief, traditions, customs, art, morals, law and any other
habits acquired by people as members of a society. Culture of one society differs
from that of another. Many of our actions, and behaviour as consumers stem from
our cultural background for instance, the emphasis on saving schemes oriented towards
saving for higher education for children or the preferred attitude towards gold as a
form of saving are the result ofour unique cultural influence
Sub-cultural Influences
Within a given culture, there are many groups or segments of people with distinct
customs, tradition and behaviour, which setthemapart from other people. All Indians
share one common cultural heritage, but the Hindu Brahmins of Tamil Nadu are
very different from the Hindu Bengalis of Calcutta in the same way as Kashmiri
Hindus are different from the Hindus of Gujarat in the traditions, customs and food
habits they prefer. These subcultures as part of the same cultural mainstream on
account of their dress, food habits, religious traditions and rites; offer interesting
implication for the marketer.
A well-known brand of Sumeet Mixer and Grinder developed special heavy-duty
motor to with stand continuous running required for grinding rice for dosa, vada,
idli-staple food items of the South Indian cuisine. Similarly, marketers of spices need
19
Consumer Behaviour-Issues to modulate taste and formulation according to the consumers taste, which varies
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from state to state. Interestingly enough, these sub culturally determined food product
variations made available nationwide have made it possible for diversity of cuisines
from different regions to be enjoyed on a pan India basis and widened the appeal
of such packaged spice mixes nationwide.

Social Class Influences

Social class is a group consisting of a number of people who share more or less
equal position in a society. Within a social class people tend to share same values,
beliefs, and exhibit similar patterns of behaviour and consumption. Some social classes
are ranked as higher and lower. Social classes differ from one society to another,
and their standing in society may also change over time. Social classes may be defined
by parameters such as income and occupation. The belongingness to a social class
influences decisions such as choice of residence, type of holiday, means of entertainment
and leisure.

Social Group Influences

A social group is a collection of individuals who share some common attitudes and
a sense of relationship as a result of interaction with each other. Social groups may
be primary where face-to-face interaction take place frequently, such as families,
workgroups and study groups. Secondary groups are those where the relationship
is a more formalized and less personal in nature. Examples of primary groups are
associations of professionals, members of a political party, and social groups such
as Rotary, Lions, YCWA etc.

Family Influences

Family is a social group which can be defined as a primary group. It needs to be

studied in great detailas it is one of the strongest sources of influences on consumer
behaviour.

The first and strongest influence on a child is that of his family and he imbibes many
behavioural patterns from other family members sub consciously. These influences
tend to stay with him even after attaining adulthood. Further, within a family many
decisions are made jointly with various members exerting different degree of influence.
The changing structure of families as the joint family system gradually gives way to
single nucleus families also influence the consumer behaviour.

Personal Influences

Each individual is influenced by the family, social class, sub-cultural and cultural
group to which he belongs, and yet has his own distinct personality which influences
his decisions and behavior as a consumer. Each decision process is the outcome
of an interplay of personal and social variables. You must also remember as noted
in the preceding paragraphs that social groups like family, and reference groups
are part of the early influences that shape personal variables like personality, self-
concept and attitudes. The process of evaluation of different products and different
brands will vary from person to person. For one, price may be the most important
parameter in making the decision to buy a water geyser, for another it is convenience,
20 and for yet another it may be the status symbol value.
Other Influences Consumer Behaviour-
Nature, Scope, Models and
Application
All other influences not covered in any of the other specific influence headings
are covered here. These may be national or regional level events, situational factors
or any other external influences. The recent pandemic and its impact on the
consumption related behavior in terms of responsible consumption, safe food habits
and spend save decisions provides a good example of how events external to
the individual may impact consumer behavior during a given period. Cricket test
matches and other sports world competitions always lead consumers to opt for
sports channels and products like firesticks to facilitate uninterrupted watching
of their favorite sports events. The hosting of Asiad matches and Commonwealth
Games within the country, coupled with India’s performance at world events like
the Tokyo Olympics in 2021 brought in their wake tremendous awareness and
interest in sports. All such-events have both temporary and permanent influences
on consumer behaviour. During the period of the event, there is increased emphasis
on buying goods and services related to the event. After the event is over, as in
case of Asiad and Commonwealth games, because the infrastructure for sports
has been created, an interest amongst the people been kindled; sporting events
are now held regularly with more people participating. All this leads to greater
consumption of sports goods, and other facilitating services
Situational variables such as product display, price reduction offers, free gift offers,
also influence consumer behaviour. Seeing an attractive offer, a free mug with a new
brand of coffee, a regular user of arival brand may be tempted to try the new brand.
As you would observe in Fig 1.1 the various factors in individual determinants and
external environment are separated by broken lines, this is done to denote the fact
that each of these specific factors influence and in turn are influenced by each other.
Further, you would notice that there is an arrow starting from external environment
and passing through individual determinants up to the decision process. This indicates
that external environmental factors do not affect the decision process directly, but
filter through individual determinants to influencethe decision process.

1.9 MODELS OF CONSUMER BEHAVIOR

In your core course, marketing management, Unit 9, you have gone through several
models of consumer behavior(https://egyankosh.ac.in/bitstream/123456789/7262/
1/Unit-9.pdf)
These include the Howard Sheth model, the Engel-Kollat-Blackwell Model, the
model of family decision making and the industrial buyer behavior. While we will
be looking at the organizational buying behavior in detail in the Unit 3 of this course,
a brief recap of the consumer buying behavior models is done in this section in
order to recall what has already been covered by you.
The Howard Sheth Model and the Engel Kollat Blackwell models both present
comprehensive models of individual buying behavior while the family buying behavior
explains the decision process and influences that come into play when the buying
is being done for joint use by a given family.
The Howard Sheth Model-The Howard Sheth Model recognizes consumer decision
making under 3 different problem-solving levels. These are: 21
Consumer Behaviour-Issues The first level describes extensive problem-solving where the consumer does
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not have any basic information or knowledge about the brand or have any preferences
for any product. In this situation, the consumer will seek information about all the
different brands in the market before purchasing.
The second level, limited problem-solving, exists when consumers have little
knowledge about the market, or partial knowledge about what they want to purchase.
In order to arrive at a brand preference, some comparative brand information is sought
The third level is habitual or routinised response behavior exists when, the
consumer knows very well about the different brands, can differentiate between
the different characteristics of each product, and his repeat buying decision is usually
a brand replenishment decision in favour of his preferred brand.
This Howard Sheth model explains the buying decision process with the help of
four sets of variables that include (i) the inputs, (ii) the perceptual and learning
constructs (iii) the output and (iv) exogenous variables.
The input variables consist of the stimuli like price, quality, distinctiveness presented
by the marketers which have both significative and symbolic impact. Input variables
also include social variables like family, social class and reference groups.
The learning constructs comprise psychological variables such as motives, attitudes,
brand comprehension and choice criteria which enable the buying intention.These
are the same influences that have been discussed earlier in this unit as part of the
discussion on Figure 1.1.
The perceptual stimuli explain how the consumer receives and understands the
information from the input stimuli and other parts of the model. For example, stimulus
ambiguity results when the consumer does not understand the message from the
environment. Perceptual bias occurs if the consumer distorts the information received
so that it fits his or her established needs or experience. Learning constructs category,
consumers’ goals, information about brands, criteria for evaluation alternatives,
preferences, and buying intentions are all included. The proposed interaction in
between the different variables in the perceptual and learning constructs and other
sets give the Howard Sheth model its distinctive advantage.
The output variable is the purchase decision and the resultant post purchase evaluation
of either satisfaction or dissatisfaction. The former will result in strengthening of brand
comprehension and brand attitude, while the latter will trigger off a reaction of negative
attitude, low attention to the product stimuli, poor brand comprehension and negative
intention to purchase.
The Exogenous variables on the other hand are not shown as being part of the
decision process but may have an important bearing on the overall decision as such.
These include importance of the purchase, consumer personality traits, religion, and
time pressure
The Engel Kollat and Blackwell model: The original model developed in the
late sixties, was proposed as a comprehensive, cognitive processing model and went
through several revision. The revised model presented in 1990, is now known as
the Engel, Blackwell and Miniard Model (EBM). You have studied this model in
detail in the unit 9 of your marketing management course and can revisit it by following
22 the link https://egyankosh.ac.in/bitstream/123456789/7262/1/Unit-9.pdf
To briefly recap, the model explains the buying behavior process with the help of Consumer Behaviour-
Nature, Scope, Models and
five components, Application

1. Information input
2. Information processing
3. Decision process
4. Decision process variables
5. External influences
Let us take an example to understand consumer behavior as explained by this model
As somebody who is currently dissatisfied with the way his laptop is functioning,
you come across an advertisement by a computer dealer, announcing a sale on various
Brands of computers and laptops for which his company’s the authorized agent.
This is the component of information input. This component includes all kinds of
marketing stimuli like advertisements, product displays, a point of purchase stimulus
and non-marketing stimuli like information inputs shared by friends, family or
colleagues, who may suggest a brand be used by them as an alternative to you.
Once you are exposed to this information from a variety of sources you begin to
process this information by going through the stages of exposure, attention,
comprehension, acceptance and retention of this information. You also utilize your
stored memory relevant to this purchase in processing this information and before
retaining it as actionable input for your decision process The next component, the
decision-making process, in this model, suggests that you could enter the decision-
making process at any time during your information processing stage. You could
begin contemplating the decision immediately after seeing the advertisement regarding
the sale by the dealer, or collect more information and recall inputs about your earlier
experiences from your memory and so on. The decision process is shown to comprise
of the sequential stages of problem recognition search for alternatives, alternative
evaluation, choice, and outcomes (post-purchase evaluation and behavior). Once
you arrive at the decision based on your alternative evaluation, which in turn is
impacted by both individual differences and external influences, this decision will
lead to a purchase. The outcome of the purchase could be satisfaction if the laptop
bought by you meets your expectations, or result in post purchase dissatisfaction,
if your purchase does not fully meet your expectations.These outcomes will now
become feedback and be stored in your memory to be used as reference in your
next purchase or related decision-making situation
As discussed in the foregoing paragraph, individual variables like demographics,
motives, beliefs, attitude, personality, values, lifestyle and external influences like
culture, social class and reference groups are important influences that impact the
stages of both information processing and decision making. If any of your important
reference group members like a colleague in the IT department of your office has
expressed a strong negative opinion about the after sales service of a given laptop
brand, that brand will not be considered among the alternatives that you evaluate
during your decision process.
Understanding Online Consumer Behaviour
There is no denying the fact that the widespread use of Internet on the one hand
has given huge impetus to the e-commerce activity and on the other hand has facilitated 23
Consumer Behaviour-Issues online buying to a great extent. Reports show that generation of sales globally reached
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over USD 2,800 billion in 2018 (Digital Commerce360, 2019).
Certainly, the Covid 19 pandemic and the lockdown that disabled physical and face
to face economic activity, accelerated the adoption of online buying across the world
and India was no exception. The interesting thing to note however, is that once
the lockdown restrictions eased away, a large percentage of consumers report an
irreversible change in their buying habits as during this gap of over one year, a large
number of them got too used to the convenience of shopping from the convenience
of their homes or offices on an any time anyone basis. The vastly improved online
shopping platforms, stable and reliable payment options, and improve logistic
efficiencies have further added to the consumer convenience and improved experience,
A BCG research study on aspects of online buying behaviour in India has indeed
interesting trends among Indian buyers which are creating both challenges and
opportunities for the marketers. Let-us have a brief look at these trends that were
shared in October 2019. The study was conducted on over 4000 Indian consumers
in 2019, well before the impact of the pandemic on consumer buying really set in.
 85% consumers checked at least two data points across all categories before
they made a purchase
 62% consumers said that they main reason of buying a new product was
to keep up with the emerging trends
 57% consumers reported using pre packaged food or shopping online to
free their time for other activities
 50% consumers reported buying Indian Brands or over international Brands
in at least one category
 Signaling a rise in women’s decision-making roles, 54% female consumers
were found to have the final say in more than half of the product categories
bought
 In subsequent research on buying behavior in India across the different waves
of the pandemic, the agency reported the following trends in consumer
sentiment and behavior, on the basis of their study of the pandemic on
consumer sentiment and behavior released in June 2021
 Accelerated growth in the adoption and engagement with social commerce
and healthier Food choices
 Adoption of digital commerce, entertainment and education gaining new
heights
 While the frequency of use of online Medical Services and interest in online
hobby classes has tended to wane around May 2021, use of online retailers
or E commerce, use of digital wallets, free apps like Hot star and You Tube,
paid OTT platforms and online education has tended to sustain.
 a key takeaway from this research is that the COVID-19 crisis has
significantly altered the behavior of Indian consumers in several important
aspects, such as their heightened focus on health and their embrace of digital
tools and channels for making purchases.
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The almost ubiquitous adoption of internet usage either through but even more Consumer Behaviour-
Nature, Scope, Models and
increasingly through Mobile devices has created several challenges for marketers Application
including those of an increasingly globalized and competitive marketplace. Also
challenging to the marketers is understanding of complex consumer behavior, driving
online buying and the major influences that impact such buying behavior. It is important
to understand the psychology, decision process.
While systematic research has been going on in developing models of online buying
behavior for at least a decade, we as of now do not have a comprehensive and
universally accepted model of digital consumer behavior.
The Technology Acceptance Model
This model, developed by Fred Davis tries to explain consumer tendency towards
online buying behavior by linking perceived usefulness of the technology relating
to savings in time and efficiency in spending. The ease-of-use component traces
how easily and conveniently the online shopping system works. Both perceived
usefulness and perceived ease of use influence positive attitude and behavioral
intent towards online shopping and eventually lead to users using the productor
service. The model also shows impact on external and individual variables on such
behavior.
External factors include service quality, ease of payment options, easy accessibility
and user reviews. while the individual factors are the ones already studied by you
in earlier models-and comprise personal traits and attitudes, perceived ease of the
online option, time pressures and earlier experiences of online transactions.

Fig. 1.2 : Technology acceptance model of online consumer behaviour (adapted from
Maranguniæ, N. & Graniæ, A.., 2015. Technology acceptance model: a literature review
from 1986 to 2013. Universal Access in the Information Society, 14(1), pp.81-95,
doi: 10.1007/s10209-014-0348-1.

To take an example, consider the case of a young professional staying by himself

and finding the need to replace his geyser as his existingg equipment is giving him
frequent breakdown or trouble. He first thinks of his very busy day and then tries
to identify alternatives for a quick and easy way of resolving this problem and browses
through the Internet to look at his options. The perceived ease of accessing all this
information from the comfort of his home, without needing to go from shop to shop,
is seen as a great convenience, coupled with the opportunity of comparing different
options right from his own desk. Being quite familiar with the use of computers
and accessing the Internet he experiences a great ease of use. In about half an hour,
he has compared the leading modelslike Bajaj, Crompton, AO Smith, Orient, Havells
etc, in terms of price and other specifications like warranties and customer Care
Services and was able to decide on AO Smith as his choice.
25
Consumer Behaviour-Issues Comparing the supplier options, he found that Amazon India was offering great price
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discount while the company was offering free installation within the next 24 hours.
After checking his work schedule, he chose a suitable delivery time, use his digtal
wallet to make an online payment and had resolved the entire appliance replacement
problem, before he left for work at 9.30 am!
Other studies have also shared insights on the variables considered most valued
by customers in online buying. A study by Linnworks shows:
76% of online consumers surveyed reported convenience to be their most significant
priority influencing the decision to engage in online shopping and 78% were found
to value convenience more than they did before the pandemic restrictions.
45% of the consumers surveyed reported they valued convenience more then they
valued price, 85% of the consumers reported that the valued ease of access across
all their devices, 70% of the consumers prefer access to omnichannel buying. Most
of them reported attending to shopping in a multitasking way, for example, attending
to shopping while scrolling social media platforms or travelling to office. Consumes
therefore prefer to have their preferred brands to have a presence on the channels
they spend most of their time on.
As online consumers seek convenience ease and multiplicity of payment options
including cash on delivery emerges as a major driver of online buying preference.
Simplify of online payment options was found to influence 89% of consumers into
making faster buying decisions.
Fast and reliable delivery, coupled with an easy returns policy is another very impactful
factor driving traffic to a given shopping site. Flip cart, that now offers the option
of home collection of returns within a specific time periodwas able to score over
its competitors for some time before the competition responded with matching
conveniences.
You would have noticed that almost all marketers now use online marketing in addition
to their traditional channels in a bid to extend their market in response to the changing
consumer preference for online buying. Services like banking and insurance are a
very visible example of online service usage where a large part of financial service
activity is now transacted online.
Activity 7
Discuss the last five major online purchases of products, services by members
of your family or by your colleagues, fill in the following format to understand
aspects of their online buying
Main Time taken Payment Time Major Experience
Motivation in the options for influences of the
to shop activity used delivery transaction
online
Purchase 1
Purchase 2
Purchase 3
Purchase 4
Purchase 5

How, in your view, the online buying behavior seems to differ from the in store buying.
26
 Consumer Behaviour-
1.10 APPLICATIONS OF CONSUMER Nature, Scope, Models and
Application
BEHAVIOUR IN MARKETING
Marketing is defined as “humanactivity directed at satisfying needs and wants through
exchange processes”. Thus, the beginning of marketing lies in identifying un satisfied
human needs and wants and understanding the ensuing activity which people engage
in to fulfil these. And that, as we have described, is the realm of consumer behaviour.
Consumer behaviour and marketing practice go hand-in-hand. Trying to do the latter
without an understanding of the former is a kin to firing a shot in the dark.
Consumer behaviour has a number of applications in the area of marketing as
described in the following paragraphs.
1. Analyzing Market Opportunity: Study of consumer behaviour helps in identifying
needs and wants which are unfulfilled. This is done by examining trends in income,
consumer lifestyles and emerging influences. The trend towards increasing number
of working women, and greater emphasis on leisure and convenience have signalled
the emerging needs for household gadgets such as vacuum cleaners, washing machine
and mixer grinders. Air purifiers, smart phones and water purifiers were marketed
in response to a genuinely felt need of the people.The rapidly rising sales graph in
these categories is an indication of how well the product has satisfied the consumer’s
need.
2. Selecting the Target Market: The study of the consumer trends would reveal
distinct groups of consumers with very distinct needs and wants. Knowing who
these groups are, how they behave, how they decide to buy enables the marketer
to market products/services especially suited to their needs. All this is made possible
only by studying in depth the consumer and his purchase behaviour.
A study of potential consumers for shampoo revealed that there was a class of
consumers who can afford to use shampoo only on special occasions and who
otherwise use soap to wash their hair. Realizing the huge size of this market, companies
with leading brands launched their shampoos in small sachets containing enough
quantity for one wash and priced just at 3-5 Rupees.
3. Determining the Product Mix: Having identified the unfulfilled need slot and
having modified the product to suit differing consumer tastes, the marketer now
has to get down to the brass tacks of developing the right offer to market. He has
to determine the right mix of product, price promotion and advertising. Again,
consumer behaviour is extremely useful as it helps find answers to many perplexing
questions
Product: The marketer has the product that will satisfy hitherto unfulfilled consumer
need, but he must decide the size, shape and attributes of the product. He must
figure out whether it is better to have one single product or a number of models to
choose from. Does the product require any special kind of packaging? Does it need
any guarantee or after sales service? What associated products and services can
be offered alongside?
Maggi Noodles were first launched in the most common flavours such as masala
and capsicum. Having succeeded with these, other flavours such as garlic and 27
Consumer Behaviour-Issues sambhar were launched with the objective of appealing to specific regional tastes.
and Concepts
However, these flavours did not succeed. Recently, variants like Atta noodles and
Oats Noodles were launched. All these are attempts to modify the product by
adding special features, attributes which might enhance the product appeal to the
consumers.
The study of consumer behaviour also guides the marketer in making decisions
regarding packaging. Pan Parag was first introduced in tins. But study of consumer
behaviour revealed that people wanted smaller packing which they could conveniently
carry on their person and in response to this the individual pouches were introduced.
Further study of consumers revealed a problem with, these pouches. Once opened
and kept in the purse or pocket, the pan masala would spill out of the pouch into
the purse or pocket. To overcome this problem, Pan Parag launched a pouch with
a zip. You eat as much as you want, zip up the packet and put it in your pocket
without fear of spillage and wastage.
The study of consumer needs revealed the need for a water storage facility in the
kitchen and bathroom but which didn’t occupy floor space. In response to this need,
Sintex added the overhead indoor loft tank to their existing range of outdoor roof
top water storage tanks.
Price: What price should the marketer charge for the product? Should it be the
same as that of the competing product or lower or higher? Should the price be
marked on the product or left to the discretion of the retailer to charge what he
can from the customer? Should any price discounts be offered? What is the customer
perception of a lower or higher price? Would a lower price stimulate sales? Or is
a lower price associated with poor quality? These are the kinds of questions facing
a marketer when taking a decision regarding pricing. The marketer has to determine
the price level which makes the image of the product and which also maximizes
the sales revenue. For doing so he must understand the way his product is perceived
by consumers, the criticality of the price as a purchase decision variable and how
an increase or decrease in price would affect the sales. It is only through continuous
study of consumer behaviour in actual buying situations that the marketer can hope
to find answers to these issues.
Distribution: Having determined the product size, shape, packaging and price, the
next decision the marketer has to make is regarding the distribution channel. What.
type of outlets including the online ones should be used to sell the products? Should
it be sold through all the retail outlets or only through a selected few? Should a
mix of online and offlinebe used? Should it be sold through existing outlets which
also sell competing brands or should new outlets be selling exclusively your brand
of product be created? How critical is the location of the retail outlets from the
consumers’ viewpoint? Does the consumer look for the nearest convenient location
or is he only willing to shop from the convenience of his own home?
The answers to all these questions can only be found when the marketer has a good
understanding of the consumers’ needs which are being fulfilled by his product and
the manner in which consumers arrive at the decision to buy. Long ago, Eureka
Forbes introduced vacuum cleaners in the Indian market. It was not only launch of
a new brand, but rather a launch of a new product concept. No retail outlets were
selling vacuum cleaners, very few consumers knew much about the product and
fewer still were willing tobuy it. Under these circumstances, the company decided
28
to sell the product only through personal selling with the salesman calling on the Consumer Behaviour-
Nature, Scope, Models and
consumer at his home. Here the sales man had enough time to explain, demonstrate Application
and convince the prospective customer about the utility of the vacuum cleaner. In
a retail outlet situation, all this would just not have been possible. The retailer has
neither the time nor the detailed knowledge required to sell such a new product
concept. This distribution strategy of Eureka Forbes, based on a very fine
understanding of the consumer behaviour, has yielded good sales results. The product
concept is well accepted in the markets and today the vacuum cleaner, is also sold
through some selected retail outlets. You only have to look at the growing proliferation
of firms like Urban Company, who focus on making utility services like home cleaning,
personal grooming, furniture and carpet care services available to the consumer at
home at reasonable prices to appreciate how understanding of consumer behavior
enables new distribution opportunities.
Promotion: The marketer here is concerned with finding the most effective methods
of promotion which will make the product stand out amongst the clutter of so many
other brands, and products, which will help attain the sales objective and yet be
within the budget. This is possible only when the marketer knows who his target
consumers are,where are they located, what media do they have access to, what
is their preferred media and what role does advertising play in influencing the purchase
decision?
Today, Internet driven social, digital advertising and TV are among the most powerful
advertising media in the country. And many brands spend the greater part of their
promotion and advertising budget on these. Brands regularly advertised on these
media soon become well recognized names. But as a marketer you have to question
the suitability of any specific medium with respect to your specific product and budget.
Suppose your product is sold in only a few geographical markets you may decide
to avoid regional channels on TV, some regional print media and concentrate on
point of purchase promotion as well as hoardings.
In so many cases of industrial products, media advertising is very negligible, instead,
B-to-B digital Marketing, brochures or leaflets containing detailed product specification
and information are conveyed to the actual consumer, and sometimes followed up
by sales calls toclinch the deal. This is primarily because buyer behaviour and
informational needs of industrial buyers are very different from those of consumer
buying. You will study organizational buying behaviour in detail in Unit 3 of this block.
But you can make these decisions only when you know your consumer and understand
his behavior well.
Use in Non-profit and Social Marketing:
The knowledge of consumer behaviour is also useful in the marketing of non-profit
or social or governmental services of institutions such as hospitals, institutions, voluntary
agencies, law enforcement and tax collection agencies.
The income tax authorities have always been perceived in negative manner by the
common man who fears them and views them in a suspicious light. To overcome
this poor image, advertisements on TV, social media, and in newspapers and
magazines are regularly released,wherein a friendly, helpful image is sought to be
projected. Moreover, there is greater dissemination of information regarding the
rights and responsibilities of the tax payer.
29
Consumer Behaviour-Issues Similarly, the Covid Pandemic saw a massive effort at social marketing by
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governments, public health agencies and responsible corporate to address the issues
of consumer awareness, protective measures and safety promoting behaviours.
The active public health and individual protection campaigns run during the various
waves of the corona pandemic, the “Swatchh Bharat and Swasth Bharat” initiatives
and other such events organized on special occasions such as India completing 75
years of Independence (Azadi ka Amrit Mahotsav), used various types of appeals
in order to motivate the maximum participation. Organizations such as Red Cross,
Blood Banks, Heart Foundation, Indian Cancer Society, Sight savers, The Kailash
Satyarthi foundation, UNICEF, etc., all use an understanding of consumer behaviour
to promote their services, encourage public participation in their activities, sell their
products (greeting cards in case of UNICEF), and to motivate people to donate,
get regular health check-ups.
Activity 8
In your own work experience, or any other consumer product organization
that you are familiar with, study the pricing, promotion and distribution of
products. Clearly state the kind of applications of the knowledge of Consumer
Behavior that was applied in these decisions.
.....................................................................................................................
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1.11 SUMMARY
This Unit attempts to introduce you to the subject of consumer behaviour and all
that which is studied as part of this subject. Consumer behaviour comprises the
entire spectrum of activities and processes which individuals engage in when buying,
using, acquiring or disposing of goods andservices. The purchase is only one part,
the clearly observable part, of this range of activities. The focus of study in consumer
behaviour is the individual making the purchase, but sometimes he may be purchasing
on behalf of somebody else. To get a complete picture it is necessary to include
both the buyer and user in the realm of consumer behaviour. The study of consumer
behaviour is concerned with the decision process involved in a purchase. This process
may comprise physical and mental activities preceding and following the purchase
event.
During this decision process, the consumer is influenced, by a variety of factors.
These influencing variables can be broadly divided into two categories, namely,
individual determinants and external variables. These were briefly touched upon in
this Unit and shall be explained in greater detail in later units.
An understanding of consumer behaviour is of critical importance to all persons
engaged in any form of marketing activity, its importance stems from the fact that
i) behaviour of consumers can be understood, ii) the behaviour can be influenced,
and iii) the marketer can utilize these influencing variables to his advantage.
The unit also introduces you to various models of consumer behavior including those
related to online buying behavior to expose you to research based comprehensive
30 explanations of how consumers decide.
The applications of Consumer behavior to all aspects of marketing decision making Consumer Behaviour-
Nature, Scope, Models and
have been discussed. Consumer behaviour is also applicable in case of non- Application
commercial, non-profitmarketing.

1.11 KEYWORDS
Decision Process: The sequence of mental and physical activities and processes
preceding and following an actual purchase action.
Individual Determinants: The specific variables unique to each individual, which
influence his behavior as a consumer. These variables are psychological in nature
External Environment: All the variables emanating from the society within which
an individual lives and interacts and which bear a strong influence on his consumer
behaviour.

1.12 SELF-ASSESSMENTQUESTIONS
1. Given below is a list of products and services, some or all of which you would
have purchased or used in your capacity as a consumer:
i. Two-wheeler/car
ii. An expensive suit/saree/dress for a very important social occasion
iii. Printer for your home office
iv. Health insurance for your self and members of your family
v. Smartphone
vi. Members hip of a Society/Club/gym
Try to recall and identify the roles played by different people around you
ininfluencing the first-time purchase of these. Would the same roles be played
by the same people if you went in for a repeat purchase?
2. About 20 years ago, the ready-made clothes market in India was limited to
afew companies offering men’s shirts and trousers in a few instances. But today
a large of national and international brands have made available a huge range
of ready-made apparel for all age segments and socio-economic class segment.
Can you identify some key variables of individual determinants and external
environment responsible for this change?
3. What are the product and service categories where you and your family members
now do online buying more often than you do in store buying? What are the
major drivers of such behaviours?
4. What are the main benefits that consumers seek from non-store buying? Explain
by taking examples

1.13 PROJECT QUESTIONS

Interview individuals who sell the following items and try to find out their personal
models of consumer behavior.
a. Jewelry items 31
Consumer Behaviour-Issues b. Home fitness equipment
and Concepts
c. Health insurance
d. Cake/Pastry

1.14 FURTHER READINGS

Angeline G Close (2018). Online Consumer Behaviour; Taylor and Francis Limited
Belyaeva,O. (2015). Eight characteristics of consumer behavior in the digital economy.
http://www.online812.ru/2015/05/06/005/.
Bhattacharjee, J. and Chetty, P. (2019). An overview of online consumer behaviour
theory and model. [online] Project Guru. Available at: https://www.projectguru.in/
online-consumer-behaviour-theory-model/ [Accessed 09 Feb. 2022].
Consumer Behavior: https://nptel.ac.in/courses/110/105/110105029/ Open Textbook
Dave Walters (2019), Behavioural Marketing, Wiley
Durairaj Maheswaran (2017).Understanding Indian Consumers, Oxford University
Press
Engel James F, Kollat, DavidT. and Miniard, Paul W. (1986). “Consumer
Behaviour”, Hillsade, Dryden Press.
Micheal Solomon (2015). Consumer Behaviour:Buying, Having Being; Fourth Edition,
Pearson
Natalie Nahai (2017). Webs of Influence: The Psychology of Online
Persuasion,Second Edition, Pearson
Schifmann, Leon G. and Kanuk, Leslie Lazar (2018). Consumer Behaviour, Pearson,
Twelfth Edition.

32
 Consumer Behaviour-
UNIT 2 CONSUMER BEHAVIOUR AND Nature, Scope, Models and
Application
LIFESTYLE MARKETING
Learning outcomes
After reading this unit, you should be able to:
 define and illustrate the concept of lifestyle marketing
 describe the role of lifestyle analysis and how it fits into other approaches
to study of consumer behaviour.
 identify the characteristics of lifestyle
 discuss the components of AIO inventory and VALS classification used in
Lifestyle
 analyse the findings of lifestyle studies in India and apply them in your
marketing decisions
 discuss current applications and trends in lifestyle marketing.
Structure
2.1 Introduction
2.2 Demographics, Psychographics and Lifestyle
2.3 Characteristics of Lifestyle
2.4 Influences on Lifestyle
2.5 Approaches to Study Lifestyle
2.6 Application of AIO Studies
2.7 Lifestyle Profiles in Indian Context
2.8 VALS System of Classification
2.9 Applications of Lifestyle Marketing
2.10 Summary
2.11 Key Words
2.12 Self-Assessment Questions
2.13 Project Questions
2.14 Further Readings

2.1 INTRODUCTION
Lifestyle marketing is a process of establishing relationships between products offered
in the market and targeted lifestyle groups. It involves segmenting the market on
the basis of lifestyle dimensions, positioning the product in a way that appeals to
the activities, interests and opinions of the targeted market and undertaking specific
promotional campaigns which exploit lifestyle appeals to enhance the market
attractiveness of the offered product. The Marketing Dictionary of Rona Ostrow
and Sweetman R.Smith describes lifestyle as “a distinctive mode of behavior centered 33
Consumer Behaviour-Issues around activities, interests, opinions, attitudes and demographic characteristics
and Concepts
distinguishing one segment of a population from another. A consumer’s lifestyle is
seen as the sum of his interactions with his environment. Lifestyle studies are a
component of the broader behavioural concept called psychographics.”
Harold W. Berkman and Christopher Gilson define lifestyle as “unified” patterns
of behaviour that both determine and are determined by consumption. The term
“unified patterns of behaviour” refers to behaviour in its broadest sense. Attitude
formation and such internal subjective activities may not be observable, but they
shape behaviour nonetheless. Lifestyle is an integrated system of a person’s attitudes,
values, interests, opinions and his overt behaviour.

2.2 DEMOGRAPHICS, PSYCHOGRAPHICS AND

LIFESTYLE
Demographic variables help marketers “ locate” their target market and
psychographic variables provide the marketer with more insight about the segment.
Psychographics is, in common parlance, lifestyle analysis or AIO research. In its
most widely practiced form, a psychographic study consists of a long list of
statements designed to capture relevant aspects of a consumer, like personality,
hinting motives, interests, attitudes, beliefs and values.When the study becomes
oriented towards a particular product, the consumers are required to respond to
statements which are selected for the purpose i.e. on products, brands, services,
competitive situations etc.
The demographic and psychographic lifestyle approaches are highly complementary
and work best together. People hailing from the same sub-culture, social class and
even occupation follow quite different lifestyles. If we can create a fictitious Mrs.
Mathur to look at, possibly it may be like this: She may choose to live a “belonging”
lifestyle which will be reflected in her wearing conservative clothes, spending
considerable time with her family and participating in social activities. Or she can
be an “achiever” marked by an active personal life and playing hard when it comes
to travel and sports. It can be seen that lifestyle depicts the “whole person” in active
interaction with her environment.
The lifestyle analysis adds a great amount of understanding to a typical demographic
description. A person buying a new designer shirt may be 34 years old, married
and living in a three-bedroom house, having 2 children and valuing both independence
and flexibility that living in a metro with his nuclear family bring. The lifestyle analysis
would help marketers to paint a more human portrait to their target market.
For instance, the “young, upwardly mobile” lifestyle group cutting across sub-cultures,
social class, occupation etc. is being increasingly used by Indian marketers as their
market group. This finds its expression in advertising appeals “He loves the feel of
the city... The sky scrapers...The crowds...The pretty faces...And the heady feeling
of being successful... Above all the freedom of being himself”. So said the
advertisement for Pantaloon cotton trousers from Manz Wear. The behavioural
differences between prospects that do not show up in demographic figures come
alive in lifestyle patterns. Lifestyle, analysis leads to more comprehensive and
penetrating profiles of how consumers think and act than may be available from
other approaches.
34
 Consumer Behaviour and
Activity 1 Lifestyle Marketing

Collect 10 advertisements (ads) involving the promotion of cars and find out,
how many of these ads are “playing up” the lifestyle appeal of target customers.
Identify, what lifestyles have been projected through these ads
....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

2.3 CHARACTERISTICS OF LIFESTYLE

Feldman and Theilbar describe lifestyle by the following characteristics
1. Lifestyle is a group phenomenon
A person’s lifestyle bears the influence of his/her participation in social groups and
of his/her relationships with others. Two clerks in the same office may exhibit different
lifestyles.
2. Lifestyle pervades various aspects of life
An individual’s lifestyle may result in certain consistency of behaviour across different
aspects of his life and consumption. Knowinga person’s conduct in one aspect of
life may enable us to predict how he/she may behave in other areas.
3. Lifestyle implies a central life interest
For every individual there are many central life interests like family, work, leisure,
sexual exploits, religion, politics etc. that may shape his interaction with the
environment.
4. Lifestyles vary according to sociologically relevant variables
The rate of social change in a society has a great deal to do with variations in lifestyles.
So do age, sex, religion, ethnicity and social class. The increase in the number of
double income families , nuclear families, rising income and aspirations, large number
of women in the workforce have resulted in very different lifestyles of Indian families
compared to the last decade.

2.4 INFLUENCES ON LIFESTYLE

Cultural and societal variables establish the outer boundaries of lifestyle specific to
a given culture. The interaction of group and individual expectations and values creates
a systematic pattern of behaviour. This is the lifestyle pattern that determines purchase
decisions. When goods and services available in the market are in tune with lifestyle
patterns and values, consumer market reactions are favourable. Purchases that
reinforce these patterns further illuminate these lifestyles. Lazer’s lifestyle hierarchy
brings out these interactions.
35
Consumer Behaviour-Issues
and Concepts

Figure1: Hierarchy of Influenceson Lifestyles (adapted from Lazer, W. (1963) ‘Lifestyle

Concepts and Marketing’, in S. Greyser (ed.) Towards Scientific Marketing. Chicago:
American Marketing Association)

2.5 APPROACHES TO STUDY LIFESTYLE

The study of lifestyle is inter disciplinary. It draws on a variety of disciplines such
as anthropology, psychology, sociology and economics. Marketing uses this eclectic
approach for segmenting, targeting and positioning which forms the core of marketing
strategy. Because lifestyle refers to the way in which people live and spend money,
consumers psychographic profiles are derived by measuring different aspects of
consumer behaviour such as
1. Products and services consumed
2. Activities, interests and opinions
3. Value systems
4. Personality traits and self-concept
5. Attitude towards various product classes
Many approaches are available to the study of psychographic variables. One of
the ways is to study the lifestyle variables by an AIO inventory for use in segmenting,
targeting and positioning. Another lifestyle approach is by using VALS typology.
Two more recent approaches are the PRIZM approach and the Roper Starch global
lifestyle studies We will expand on these approaches now.
36
AIO Inventories Consumer Behaviour and
Lifestyle Marketing
This approach involves developing detailed lifestyle profiles on the basis of analysis
of activities, interests, opinions and demographics of very large samples of population
AIO studies envisage a wide variety of variables and measures the major dimensions
shown below:

Activities Interests Opinions Demographics

Work Family Themselves Age
Hobbies Home Social Education
Socialevents Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family size
Clubmember Fashion Education Geography
Community Food Products Citysize
Shopping Media Future Lifecycle
Sports Achievements Culture Dwelling

Source: Joseph T. Plummer—The Concept and Application of Lifestyle Dimensions, Journal

of Marketing.

Let us take a closer look at these variables:

What are activities? Activities indicate how a consumer/family spends his/her/their

time.
 What are interests? Interests are a family’s or consumer’s preferences or
priorities.
 What are opinions? Opinions are how a consumer feels about a wide variety
of events and things.

In order to explore an individual’s activities, interests and opinions, respondents

are given lengthy questionnaires in which they are asked how strongly they agree
or disagree with statements such as:
I would like to become an actor
I usually dress for fashion and not for comfort
A woman’s place is in the house
I often have drinks before dinner
I love the outdoors.

The statements can be general or product-specific. They can be pertaining to individual

or family/household. For instance, the classifications of different type of Psychographics
statements for credit card use are given below:
37
Consumer Behaviour-Issues
and Concepts Individual/personal Family/ Household

General I think that having to carry cash My family is always shopping when
when you travel is quite we travel
cumbersome

Product- Credit cards offer a great We really appreciate the convenience

specific alternative solution with and safety that credit cards offer in
convenience and flexibility Comparison to carrying large sums
of cash

In constructing an inventory of such lifestyle statements researchers first go through

market research studies that might be of help in isolating psychographic variables.
Motivation research studies which reveal consumer’s reflections on their experience
and needs are a good source. Based on such reviews psychographic statements
are prepared which bring out the range of activities, interests and opinions that the
researcher wishes to evaluate. In constructing a psychographic inventory, it has to
be thoroughly assessed whether consumers will understand the meaning of the each
of the statements as the marketer expected them to be interpreted. It is also important
to avoid statements that lead consumers to make a socially acceptable response
which really does not reflect their true feelings or likely ways of interaction with
environment. In responding to an inventory as explained above consumers are usually
asked to rate in a quantifiable rating scale as is used in marketing research studies,
the extent of their agreement or disagreement with each statement and results are
statistically evaluated.
Thus, psychographic research produces quantifiable insights that are usually presented
in tabular format. The measurement is similar to the measurement of personality
traits in that it requires the use of self-administered questionnaire.
Forexample

Some studies have used factor analysis for revealing grouping of behaviour styles
in purchasing which can reveal how differed segment will differ in their choice of
certain products and services
Activity 2
Construct a questionnaire with about 30 AIO statements with specific reference
to smart phone buyers and users.
........................................................................................................................
........................................................................................................................
........................................................................................................................
38
 Consumer Behaviour and
2.6 APPLICATION OF AIO STUDIES Lifestyle Marketing

Studying the lifestyle closely through the AIO inventory of heavy/medium/light usersof
a product has been found to be immensely useful for marketers. In the US studies
have been done regarding the heavy use of beer, eye make-up and bank credit
cards. When it was revealed that 23% of the people who drink beer consume 80%
of the beverage sold, the heavy beer user became the advertising target of the new
campaign. William Wells and Douglas Tigert used an AIO inventory to probe the
heavy user of eye cosmetics. Demographic data revealed that such women were
young, well-educated and metropolitan. But she also tended to be a heavy smoker
and more inclined than the average woman to make long distance telephone calls.
From the responses to statements, she emerged as one who fantasises about trips
around the world, and as one who wanted a very stylish home.
In a study Plummer applied to bank credit card users, males who used bank
chargecards heavily were described as urbane and active with high income level
and occupational and educational achievements. The heavy card user places high
value on personal appearance consistent with his career and lifestyle. He was found
to buy atleast three new suits a year, to belong to several organisations and revealed
contemporary attitudes and opinions.
Thus, a study of personality, lifestyle and social class gives a more comprehensive
consumer profile and not a mere physical description of demographics. Using the
AIO inventory, the Chicago based advertising agency of Needham, Harper and
Steers identified five female lifestyle groups and five male lifestyle groups. We have
Indian parallels of these types and you may try to recall the advertisements given
along side in brackets to identify the lifestyle portrayed through these characters
and decide whether they conform.
Female Lifestyle Types
1. Cathy the contented housewife (the multitasking housewife in MTR
advertisement displaying multiple breakfast options possible at the same time)
Cathy epitomises simplicity. She is devoted to her family and faithfully serves
them as mother housewife and cook. She enjoys a relaxed pace and avoids
anything which might disturb here quilibrium.
2. Candice-the chic suburbanite. (Kiara Addvani in the Myntra commercial?)
Candice is an urban Woman. She is well educated and genteel. Socializing is
an important part of her life. She is a doer, interested in sports and the outdoors,
politics and current affairs. Her life is hectic and lived at a fast clip. She is a
voracious reader and there are few magazines she does not read.
3. Eleanor-the elegant socialite. (Various models in the Lakme 9 to 5 range
campaigns?) Eleanor is a woman with style. She lives in the city because that
is where she wants to be. She likes the socio-economic aspects of the city in
terms of her career and leisure time activities. She is fashion conscious and
dresses well. She is financially secure and hence not a careful shopper. She
shops for status and style and not for price. She is a cosmopolitan woman
who has travelled abroad and wants to. 39
Consumer Behaviour-Issues 4. Mildred-the militant mother. (As an exercise, can you think of an example
and Concepts
so as to draw a comparison?)
Mildred is a woman who got married young and had children before she was
ready to raise a family. Now she is unhappy. She is frustrated and vents he
rfrustration by rebelling against the system. Television provides an ideal medium
for her to live out her fantasies.
5. Thelma-the old-fashioned traditionalist. (The elderly wife in the Swiggy ad?).
Thelma is a lady who has lived a good life. She has been a devoted wife, a
doting mother and a conscientious house wife. Even now, when most of her
children have left home, her life is centred around the kitchen. She lacks higher
education and has little appreciation for the arts or cultural activities. Her spare
time is spent watching TV.
To make these distilled profiles even more useful for segmenting markets for specific
products aimed at women, the researchers then portrayed these segments in terms
of an index of product usage. To illustrate, the following data on use of cosmetics
by the above female psychographic segment reveal very interesting information.

2.7 LIFESTYLE PROFILES IN INDIAN CONTEXT

In India, one of the agencies, tried to create a psychographic profile of the Indian
child based on a sample of over 4463 in 8 metros and mini-metros. As an outcome
of these studies the emerging profiles of the Indian children that emerged are given
below:
1. 6-7 years: A fun seeker, heavily influenced by the family and by teachers.
2. 8-10 years: A roleplayer, influenced primarily by school and by friends.
3. 11-15 years: An emulator, influenced by the peer group. At this stage, gradual
non-acceptance of the family begins
4. 16-18 years: young adults, almost entirely conforming to the group.
Some of the interesting findings of this survey were
 Children love to see commercials on TV.
 They have their favorite actors and cricketers.
40
  Most of them are adventurous and like trying out new brands. Consumer Behaviour and
Lifestyle Marketing
 Children feel savings are necessary.
 A very large percentage of children visit religious places.
 reading figures across media are impressive-particularly for 16 to 19 years
age group.
Another major study using psychographic approach carried out by Path finders, a
marketing research agency in India in early 1990s covering 10303 working and
non-working women aged between 18-45 years with family income of more than
Rs. 350/- p.m. in 36 towns and cities across the country came up with 8 identifiable
types of Indian house wives.
The gregarious hedonist: Found predominantly in the east, she is most likely to
speak Bengali and is intensely extroverted and liberal. She does not believe in
sacrificing her life just to keep her family happy. Self-indulgent and willing to spend
money on new products, she is a marketing man’s dream.
The contemporary housewife: She is on the threshold of change. While she has
not given up many traditional values, she aspires for modernity and is least likely
to be living in north India.
Though she is happier than she was five years ago, she feels the need to do something
more meaningful besides housekeeping. She is fashion-conscious, but still uses fairness
skin creams and her idea of trendy clothes does not go beyond the sari.
The affluent sophisticate: She lives mainly in the west zone, and seems to live
by the motto: “Have money, will spend”. She is the highest user of all kinds of
consumer products and indulges in more activities-even simple ones like writing a
cheque or using a telephone-which are out of reach of most housewives. She is
comfortable talking to men outside her family circle, and would not mind if her children
marry outside the community. One out of three do some form of exercise and are
careful about their figures.
The tight-fisted traditionalist: Leading a sheltered life, she prefers to follow the
film stars in her dress habits but is particular about prices. She restricts her circle
of friends to within her community and believes that girls should be educated especially
to enable them to get good husbands. A majority live in north India.
The troubled home-body: Neither a leader nor an emulator, she is largely illiterate
and is least exposed to the media. Her three prized possessions are watches,
transistors and bicycles. Fashion takes a back seat and the fate, according to she,
is written in the stars.
The anxious rebel: Less likely to be found in the south, she would much rather
be working than staying at home. She is anxious, thrifty but discerning in her shopping,
though quite willing to try out new food recipes, and loves to spend on her children
and guests.
The contented conservative: She is extremely confident and probably the most
efficient householder of all. She is a great optimist, is very conscious of the family’s
health and is, by and large, the advertising man’s dream she believes that ads are a
great source of information.
41
Consumer Behaviour-Issues The above study confirms the view that the Indian housewife at that time saw her
and Concepts
self basically as a traditional provider. The survey also reveals that an increasing
number of urban women were beginning to see themselves in a more modern context.
AIO studies on online consumers
Studies from year 2000 onwards, using the AIO approaches have tried to segment
online consumers and analysed variables like attitude towards internet and online
shopping, related interests and opinions. Based on their study in 2011 Aljukhadar
et al identified three global lifestyle a type among online buyers
1. Basic communicators: consisting of older and highly educated people, these
consumers use the Internet mainly for emails to communicate
2. Lurking shoppers: consisting of highly educated men and women or families
with high incomes who use the Internet to navigate and identify shopping
alternatives and to heavily shop on the Internet
3. Social Thrivers: consisting of the youngest age group, mostly under 35 who
were heavy Internet users and employed it for social interaction, forming
relationships, blogging,video streaming and downloading content. They were
also the lowest income group segment among the population studied
A later study in 2015 classified the online shoppers into three segments based on
factors like Internet enjoyment and convenience, Internet distrust, online offers and
logistics concerns.The segments identified were
1. Mature traditionalists: relatively old married couples, who were attracted
by deals and offers made by brick-and-mortar stores but are also attracted
by the convenience and pleasure of buying online.
2. Offer enthusiasts: These are middle aged consumers who were attracted
by the wide selection quality and the variety of offers presented by online
shopping.
3. Technology mavericks: younger and very avid users of the Internet, are very
adept and self-sufficient in the use of the Internet, have little concerns about
the logistics but still have mistrust relating to security and privacy issues
Lifestyle segmentation based on AIO inventories are ongoing exercises, most attempts
at such segmentation have now shifted to VALS based studies
Activity 3
a. Select at least 10 consumer durable and non-durable products and identify
which of the above categories of Indian women will you target these
products to. Also identify the selling appeals and or propositions you would
use to market these products to these women types.
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................
42
 Consumer Behaviour and
b. Consider your own online shopping behavior and try to assess to which Lifestyle Marketing
lifestyle segment of online shoppers do you belong.
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............................................................................................................
............................................................................................................
............................................................................................................

2.8 VALS SYSTEM OF CLASSIFICATION

Another widely used lifestyle classification system is the Values and Lifestyle
classification developed by Arnold Mitchell. The VALS system of classification classifies
adults (18 +) in the US into distinctive lifestyle groups. Each group is based on
inner psychological needs (values) and behaviour response patterns (lifestyles) which
their values predict. The psychological theory used in VALS draws heavily on
Abraham Maslow’s Hierarchy, on Needs. The VALS theory and database were
first applied to markets in 1978. VALS provides a dynamic framework of values
and lifestyles; which helps to explain why people act as they do as social groups
and asconsumers.VALS, unlike someother approaches, weave stogether:
1. Demographics, 2. Attitudes, 3. Activities, 4. Consumption patterns,
5. Brand preferences, 6. Media graphics
The VALS 1 study led to the identification of four major groups i.e., the need driven
(the poor and uneducated), the outer directed (the middle- or upper-income class
consumer whose lifestyle is directed by external criteria) and the inner directed
(people who are motivated more by inner needs than by the expectations of others).
The fourth segment, called integrated represents individuals who have been able
to combine the best of both outer directed and inner-directed values.
Further sub-segments within these four classes were also identified.
Continued work by SRI on the VALS led the development of VALS2 classification
of lifestyle segments discussed below
VALS-2 Classification
In more recent developments on lifestyle and value system. SRI offers findings from
a very comprehensive study, termed the VALS 2. The VALS .2 typology also draws
heavily on Maslow’s need hierarchy and tries to explain the lifestyle orientation of
the various segments based on the values sought by each of them in their life.
VALS 2 typology classifies the American population into 3-major consumer groups-
the principle oriented, the status oriented, and the action oriented. These are
then further sub-divided in to eight distinctive lifesty lesegments. Figure 3 below
shows the VALS 2 classification segments. The three major segments as noted above
are defined in terms of self-orientations of people. The principles oriented represent
consumers whose choices are governed by their beliefs rather than their need for
other peoples’ approval. The choices of status-oriented consumers, on the other
hand, are directed by the action, approval and opinion of other people. The action- 43
Consumer Behaviour-Issues oriented consumers are those who are motivated by a need for social or physical
and Concepts
activity,variety and risk bearing. The eight sub-divisions that these major self-
orientations have been divided into also differ in terms of their resources. Resources
in this typology have been defined as physical, psychological, and demographical
factors that become enabling variables in consumer’s choice making behaviour. A
description of the lifestyles and brief socio-economic profile of all the eight sub-
segments of VALS2 is given below. *

Figure3: VALS-2 Classification (*Description ofthe Profiles have been quoted from
Schiffman and Kanuk Vth edition PP.83 PHI.)

The principle-oriented people have been divided into 2 classes, the fulfilleds and
the believers
Believers are conservative, conventional people with concrete beliefs and strong
attachments to traditional institutions: family, church, community, and the nation. Many
Believers possess moral codes that are deeply rooted and literally interpreted. They
follow established routines, organized in large part around their families and the
social or religious organizations to which they belong. As consumers, they are
conservative and predictable, favoring American products and established brands.
Their education, income, and energy are modest but sufficient to meet the irneeds.
Fulfilleds are mature, satisfied, comfortable, reflective people who value order,
knowledge, and responsibility. Most are well educated, and in (or recently retired
from) professional occupations. They are well-informed about world and national
events and are alert to opportunities to broaden their knowledge. Content with their
careers, families, and station in life, their leisure activities tend to center on their
homes. Fulfilleds have a moderate respect for the status quo, institutions of authority,
44 and social decorum, but are open-minded about new ideas and social change. Fulfilleds
tend to base their decisions on strongly held principles and consequently appear Consumer Behaviour and
Lifestyle Marketing
calm and self-assured. Although their incomes allow them many choices, Fulfilleds
are conservative, practical consumers: they are concerned about functionality, value,
and durability in the products they buy.
The status-oriented people have been further subdivided into 4 classes, the
actualizers, the achievers, the strivers and the strugglers.
Actualizers are successful, sophisticated, active, “take-charge” people with high
self-esteem and abundant resources. They are interested in growth and seek to
develop, explore, and express themselves in a variety of ways-sometimes guided
by principle, and sometimes by a desire to have an effect to make a change. Image
is important to Actualizers, not as evidence of status or power, but as an expression
of taste, independence, and character. Actualizers are among the established and
emerging leaders in business and government, and they continue to seek challenges.
They have a wide range of interests, are concerned with social issues, and are open
to change. Their lives are characterized by richness and diversity. Their possessions
and recreation reflect a cultivated taste for the finer things in life.
Achievers are successful career and work-oriented people who like to-and generally
do-noel in control of their lives. They value structure. predictability, and stability of
over risk, intimacy, and self-discovery. They are deeply committed to their work
and their families. Work provides them with a sense of duty, material rewards, and
prestige. Their social lives reflect this focus and are structured around family, church,
and business. Achievers live conventional lives, are politically conservative, and respect
authority and the status quo. Image is important to them. As consumers, they favour
established products and services that demonstrate their success to their peers.
Strivers seek motivation, self-definition, and approval from the world around
them.They are striving to find a secure place in life. Unsure of themselves and
low on economic, social, and psychological resources. Strivers are deeply
concerned about the opinions and approval of others. Money defines success
for them, who don’t have enough of it and often feel that life has given them a
raw deal. Strivers are easily bored and impulsive. Many of them seek to be stylish.
They emulate those who have more resources and possessions, but what they
wish to obtain is generally beyond theirreach.
Strugglers’ lives are constricted. Chronically poor, ill-educated, low-skilled, without
strong social bonds, aging, and concerned about their health they are often despairing
and passive. Because they are so limited, they show no evidence of a strong self-
orientation, but are focused on meeting the urgent needs of the present moment.
Their chief concerns are for security and safety. Strugglers are cautious consumers.
They represent a very modest market for most, products and services but are loyal
to favorite brands.
The action-oriented segment comprises of two sub segments of Experiencers and
Makers.
Experiences are young, vital, enthusiastic, impulsive, and rebellious. They seek
variety and excitement, savouring the new, the off beat, and the risky. Still in the
process of formulating life values and patterns of behavior, they quickly become 45
Consumer Behaviour-Issues enthusiastic about new possibilities but are equally quick to cool. At this stage intheir
and Concepts
lives, they are politically uncommitted, uninformed, and highly ambivalent about what
they believe. Experiences combine an abstract disdain for conformity and authority
with an outsider’s awe of others’ wealth, prestige, and power. Their energy finds
an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers
are avid consumers and spend much of their income on clothing, fastfood, music,
movies, and video.
Makers are practical people who have constructive skills and value self-sufficiency.
They live in a traditional context of family, practical work, and physical recreation,
and have little interest in what lies outside that context. Makers experience the work
by working on it-building a house, raising children, fixing a car, or canning vegetables-
and have sufficient skill, income, and energy to carry out their projects successfully.
Makers are politically conservative, suspicious of new ideas, respectfulof government
authority and organized labor. but resentful of government intrusion on individual
rights. They are unimpressed by material possessions other than those with a practical
or functional purpose (e.g., tools, pickup trucks, or fishing equipment).
Activity 4
How can the VALS 2 typology be used to develop promotional strategies for?
a. A full-service premium airline
b. A chain of health resorts
Which particular segments would you target for each of these and why?
....................................................................................................................
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....................................................................................................................
....................................................................................................................

Applications of VALS Classification

Marketers have put to good use this concept which is based on the idea that
individuals pass through a number of developmental stages with each stage affecting
the person’s attitudes, behaviour and psychological needs.
As the preceding portraits have revealed, VALS classification can be used to develop
a deeper understanding of the buying motivations and consumption values being
sought by the different lifestyles. The rapid adoption of consumer analytics, with
capabilities of accessing and studying very vast amounts of consumer data is expected
to bring clarity to segment profiles in times to come on consumption values being
sought by different segments with respect to given product and services.
Currently marketers are utilizing the insights developed through the VALS
classifications to:
1. Identify target market characteristics and usage.
2. Guide executional and strategic approaches.
3. Identify key media vehicles and appeals for target groups.
46
 4. Guide merchandising and logistics efforts. Consumer Behaviour and
Lifestyle Marketing
5. Develop deeper customer engagement and customer equity
6. Develop clearer insights for brand positioning and repositioning
Global Lifestyle Segments Identified by Roper Starch Worldwide
Based on a study conducted worldwide in 2001 by Roper Starch Worldwide, an
interesting model revealing relationship between personal values and consumer
behavior, proposed six global lifestyle types as shown below:

adapted from: http://www.worldcat.org/identities/nc-roper%20starch%20worldwide

2.9 APPLICATIONS OF LIFESTYLE MARKETING

The most striking uses of lifestyle concept and allied research have been made in
positioning of new products, repositioning of existing products, developing new
product concepts and creating new product opportunities in specific fields. In
congruence to the product concept chosen, lifestyle research is utilised for selecting
media, formulating media and promotion strategies and improving retail performance.
Lifestyle concept is also utilised as a framework for presenting research
recommendations, since it is capable of offering to the marketers, portraits of target
group expressed in an uncomplicated manner.
1. Positioning of New Products
Positioning comprises finding the most profitable niche for a new product in terms
of target market. Lifestyle research, forexample, an AIO portrait of heavy users
fora product like Wi-Fi music equipment not only tells us how old they are, where
they live and to what socio-economic group they belong, it also tells us what related
products are they likely to buy, what their interests and opinions are and what are
the consumption values that will drive their purchases. This provides an unusually
rich body of data for use in marketing decisions related to the positioning and will
add insights on decisions concerning the precise target group at which the product 47
Consumer Behaviour-Issues is to be aimed, the product image to be designed, the media vehicle and the type
and Concepts
of promotion strategy to be designed so that the complete product offer is in conformity
with a particular lifestyle type.
2. Repositioning an Old/Existing Product
Sometimes existing products may sell well below their forecasted potential or the
company may discover a new, more profitable niche, nearer to the core market
where it may now want to position the product. The company may also find that
the initially successful product is no longer in sync with the changing consumer
aspirations. Repositioning is often a contingency planned for in the new product
development process, primarily as a remedial measure. Generally, in markets where
the competitive activity is high, the need while positioning the product for the fixed
time is to get a foot hold in the market. After gaining market penetration, establishing
distribution and creating a certain degree of market acceptability, the manufacturer
may, through repositioning, or a series of repositionings move the product closer
to the core market. Lifestyle marketing strategies help considerably in reducing the
amount of ‘market groping’ that repositioning may entail moving the product closer,
to the psychographic profile of the core market segment, by altering its image or
some of its attributes to suit the lifestyle of the core segment

Figure 3 : Progressive Repositioning of an Existing Product

Recent examples of repositioning include the repositioning of Colgate tooth paste

to present the Colgate Vedshakti to relate to rising consumer preference for natural
or ayurveda based solutions to dental health.
Tata Motors’ development of the Electric vehicle variant show another effort to
reposition their automobile offers to increasing environmental consciousness by Indian
consumers.
3. Developing New Product Concepts
Study of existing market segments and analysis of their needs have typically been
used to conceptualise on new product opportunities. Traditionally, demographic
segmentation, or standard consumer classification of major groups like the educated
youth, the young collegiate, the urban housewife etc. have been used to define and
study the segments. Lifestyle studies on the other hand can be used to complement
the demographic studies in terms of market needs, customer and non-customer
attitudes, the opinions related to product usage and the interests of the target
customers, to be able to define the product attributes which may be congenial to
certain lifestyles. For example, users with sensitive teeth issues may have different
expectations from their toothpaste apart from the usual cleaning and gum protection
48 values. Some consumers may look exclusively for herbal solutions, others may look
for toothpastes specifically designed for nerve sensitivity and use it as a medicinal Consumer Behaviour and
Lifestyle Marketing
aid to oral hygiene; others consumers may feel toothpastes should give cosmetic
benefit. Even among these who use it as a medicine, there are two sets of expectations,
some believing that product claiming curative benefits ought to taste like amedicine
while others strongly feel that just because curative benefits are claimed, their toothpaste
should not taste like medicine. In developing the concept of a new toothpaste, you
will find that a complete inventory of Attitudes, Interests and opinions of the consumers
as well as consumption values sought help you in defining the attributes of the final
product, as you can define the requirement soft he different lifesty lesegment and then
concept ualize asto which segment you wish to aim the product at.
4. Creating Promotional Strategies
Lifestyle information is helpful in developing promotional strategies in a number of
ways. It gives the decision maker a much more complete profile of the type of consumer
who will be at the receiving end of the communication. Lifestyle data suggests the
style of language, the tone of voice and even the appeal that may be utilized to reach
that kind of consumer. Further, lifestyle information indicates how the product or service
fits into people’s lives, how they feel about it and how they may be using the product
or service to communicate with others. This informationcan be utilized by the marketer
to decide upon the kind of image he wants to imbue the product with.
The Indian marketing scenario, with rising incomes and aspirations, rapidly urbanizing
population and greater buying power in the rural sector coupled with the huge
proliferation of new products and services entering the market has evolved into a
very competitive one. Hence companies are realizing that merely highlighting the
attributes of their product or of the company in terms of demographic or geographic
dimensions is not enough to be successful in the market place. Marketers have come
to appreciate that buying behavior is influenced by the consumer’s lifestyle.
Companies dealing in cosmetics, apparel, packaged food, hospitality, travel and
leisure related services are seeking opportunities in lifestyle segmentation. Stores,
especially those dealing in apparel, makeup, shoes and appliances have started closely
attuning their inventory to the lifestyle profiles of their major customers.
The‘Surprisingly Bata’ campaign addressed at the young professional women, who
also seeks active fun and sports activities is an example of this approach. The growing
and diversifying activity range of youth in our country and the resulting change in
lifestyle is responsible for the ever-increasing demand for athleticwear in the country
transcending demographic segmentsis another illustration

2.10 SUMMARY
Consumer behaviour is still a young discipline but an extremely dynamic one.
Developments in technology leading to data analytics and artificial intelligence have
enabled huge strides in our understanding of evolving consumer behavior. Lifestyle
analyses have helped marketers develop insights into how different groups of
consumers develop patterns of living in accordance with their interests, opinions,
values and demographics. Studies on lifestyles are still ongoing and facilitate the
segmentation of consumers across societies and even globally. These evolving lifestyle
profiles will keep on enhancing the use of psychographics and enable informed insights
into the behaviour of consumers to add to applications discussed in this unit, 49
Consumer Behaviour-Issues
and Concepts 2.11 KEY WORDS
Belief : a descriptive thought that a person holds abouts omething.
Attitude : an attitude describes a persons’ enduring favourable or
unfavorable cognitive evaluations, emotional feelings and action
tendencies toward some object or idea.
Lifestyle : it refers to the person’s pattern of living in the world as
expressed in his activities, interests and opinions.

2.12 SELF-ASSESSMENTQUESTIONS
1. Think about one of your female relatives (Mother, Aunt, Sister etc.) and then
examine the psychographic segments of female population described in the unit.
Into which psychographic segment does this relative belong? What lifestyle
characteristics served to select the category? Then list out how marketing appeals
for purchase of formal wear to each of the segments identified by you will vary.
2. Examine the recent television and online advertisement for ready to cook foods
and apparel to determine if the product is being positioned to a specific lifestyle
segment. Justify your inference.
3. Analyse which VALS type best describes you and then find an advertisement
in your most frequently used media that appeals to this VALS type?
4. Imagine yourself as a retailer for classy home décor. How you would use lifestyle
approach to succeed in your venture?
5. How in your view is the understanding of global lifestyles useful to an Indian
multinational with a global reach? Explain with the help of examples.

2.13 PROJECT QUESTIONS

1. Develop a marketing strategy based on VALS for
a. Shoe
b. A Spa
c. Clothing

2.14 FURTHER READINGS

Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
Berkman, Harold W. & Gilson, Christopher: Consumer Behaviour,
ConceptsandStrategies.
Aaron Ahuvia, Barbara Carroll, Yi Yang,Innovative Marketing, Volume 2, Issue 4,
200633 Consumer Culture Theory and Lifestyle Segmentation.
50
Pandey, S., Chawla, D., & Venkatesh, U. (Jan-Mar 2015). Online shopper Consumer Behaviour and
Lifestyle Marketing
segmentation based on lifestyles: An exploratory study in India. Journal of Internet
Commerce, 14 (1), 21-41.
Aljukhdar, Muhammad, & Sylvain. (2011). Segmenting the online consumer market.
Marketing Intelligence & Planning, 29(4), 421-435
Allred, C. R., Smith, S. M., &Swinyard, W. R. (2006). E-shopping lovers and
fearful conservatives: a market segmentation analysis. International Journal of Retail
& Distribution Management, 34(4/5), 308-333.
https://www.hakuhodo-global.com/wp_admin/wp-content/uploads/2017/09/2011.pdf-
Seven Global Clusters: Asian Perspectives

51
Consumer Behaviour-Issues
and Concepts UNIT 3 ORGANISATIONAL BUYING
BEHAVIOUR
Learning outcomes
After studying this unit, you should be able to:
 define organisational buying and differentiate it from individual buying
 identify and distinguish between different types of organisational customers
 explain the process of organisation buying
 describe and differentiate between different buying situations
 analyse and utilise the influences on organisational buying behaviour
 discuss the organisational structures and administrative arrangements in
relation to organisational buying
 describe the models of organisational buying
Structure
3.1 Introduction
3.2 What is Organisational Buying Behaviour?
3.3 Organisational Buying Behaviour: Important Features and Typical Characteristics
3.4 Who are the Organisational Customers?
3.5 What Influences Organisational Buying?
3.6 The Organisational Buying Situations
3.7 Organisational Buying Behaviour: Some Models
3.8 The Selection of a Supplier
3.9 Recent Developments that have Impacted Organisational Buying
3.10 Summary
3.11 Key Words
3.12 Self-assessment Questions
3.13 Project Questions
3.14 Further Readings

3.1 INTRODUCTION
Mr. Kumar is purchase manager in Khyati Builders, a large construction company
located in Gurugram Haryana. In late March,The MD of the company asked Mr
Kumar to develop theproposal for buying a total of 50 desktops computers and
ten laptops to replace someold equipment and to provide the marketing staff with
modern laptops and improve organisational efficiency. His alternatives were:
a) To contact the various vendors of computer systems each unit costing
Rs. 25,000/- or

52 b) Directly deal with the companies as the order size was substantial.
In order to decide between the two alternatives, he sought the managing director’s Organisational Buying
Behaviour
permission to formulate a purchase committee comprising of the Director Technical,
Director Finance, the HR manager and himself, with the suggestion that the
recommendations of the purchase committee will be placed before the MD for his
approval before the purchase order is issued.
Based on pure economical considerations, the committee decided look for some
brands assembled in China and also looked at reasonably priced multinational brands
like HP, Dell, Acer, Lenovo etc. Apple and Microsoft were not considered on cost
considerations. The Director technical provided the technical details regarding
configuration of the proposed systems. Leading vendors and Manufacturers were
contacted to get the quotations for the items specified. Issue of an inquiry brought
in quotations from 10 vendors/ manufacturers. The screening and evaluation of
quotations took one week. The final short list included two suppliers. The criteria
used to short list were:
i) Past reputation of the manufacturer
ii) Conformance to the company specifications
iii) Delivery period
iv) After sales service and warranties
v) Systems equipped with requisite licensed software
vi) Performance guarantee
vii) Price and corporate discount being offered
Brand X was Rs. 1000 less per unit as compared to Brand Y. Brand X was an
established brand and had approximately 22% market share among business sector
in the state. Its parts manufacturing facilities were within the state and service centres
facilities were located in a nearby commercial industrial area; some 8 km away.
Brand Y, a late entrant, was being assembled in a nearby area only 2 km away.
The promoter of Brand Ywas an ex-employee of Brand X. He offered two-year
guarantee against one year warranty offered by brand X. Mr. Kumar discussed
the purchase committee recommendation with the Managing Director. The outcome
was the decision to place order on the Brand X. This news, somehow leaked. The
promoter of ‘brand Y was able to arrange a meeting with the MD of Khyati Builders
by using the social connection with a common friend and was able to convince him
on promise of excellent service support and product training, if given a chance.
This meeting led to the reversal of the decision in favour of brand Y. The entire
exercise of placing a formal order took 27 days and the new systems were installed
by early May.
While this was happening at the office. Mr. Kumar’s young son raised the demand
for replacing his old laptop, which he said was getting very slow and did not have
the capacity to install some of the new software that he needed. Based on the
experience of the son’s own friends with some of the leading brands, his own online
search that he shared with his father, the attractive deals being offered for students
by these brands and of course the comparative price positions of the different brands,
the Kumar family shortlisted some options. They then visited the city’s best Mall,
to look at the models shortlisted by them. 53
Consumer Behaviour-Issues Mr Kumar’s son was very excited about the different options but finally decided
and Concepts
to opt forbrand K that offered the best memory, speed and the preloaded original
software combination along with attractive price discounts. The entire activity from
the purchase request to the final acquisition took a total of 3 days.
What you have read just now is not fiction but a reality. You must be wondering as
to why the same person, buying the same product displayed very different buying
behaviour.
Well, if you think a little; you would recognise that in the earlier situation (Khyati
Builders), the ‘buying was on behalf. Whereas, in the latter, it was ‘buying for self
for Mr. Kumar. This ‘buying on behalf is the domain of Industrial or Organisational
Marketing. Similarly, the ‘buying for self is the domain of household or what is popularly
known as consumer marketing.
You must have also recognised that ‘buying on behalf’changes the entire complexion
of the buying exercise. And this is precisely the reason of studying organisational
buying behaviour (OBB) separately than the consumer buying behaviour (CBB).
The example of buying the computer systems by Khyati Builders, though comparatively
a simpler example amongst the vast multitude of highly complex, buying situations
of organizational buying, has many messages, and we will keep on coming back to
these. Let us now begin our learning of some important issues and concepts in the
area of organisational buying behaviour.

3.2 WHAT IS ORGANISATIONAL BUYING

BEHAVIOUR?
Webster and Wind, who have done some pioneering work in this area, define
organisational buying as a complex process of decision making and communication,
which takes place over time, involving several organisational members and relationships
with other firms and institutions. According to them, it is much more than a simple
act of placing an order with the suppliers. In this sense, they define organisational
buying behaviour as the decision-making process by which formal organisations
establish the need for purchased products and services and identify, evaluate and
choose among alternative brands and suppliers
It is important here to recognise the emphasis on the decision process rather than
on a single act of placing an order. The case of the computer system buying clearly
brings out the process which began with identification of the need to finally placing
of an order. Based on several observations of buying situation, Robinson, Faris and
Wind have identified this process as comprising eight steps of this decision process
are shown in Figure 1

54 Figure 1: The Phases of the Buying Decision Process

If you recall the exercise of buying computers for Khyati Builders, it would be easy Organisational Buying
Behaviour
for you to comprehend the various’ phases of the process. You would also begin
to appreciate as to why Mr.Kumar took more than 21 days when he bought a similar
product within 3 days for his son.

3.3 ORGANISATIONAL BUYING BEHAVIOUR:

SOME TYPICAL CHARACTERISTICS
With the help of earlier discussions, we are now ready to identify some typical
characteristics of organisational buying behaviour. To begin with, we will use the
case of Khyati Builder to identify and finally conceptualise some of these typical
characteristics.
1. Organisational buying is a multi-person buying activity: A large number of
buying situations in organisations (manufacturing, government, hospitals, educational
institutions) would involve many persons. These persons may be from different
functions (production, purchase, design, maintenance), may have different
backgrounds (engineers, MBA, graduates etc.) may have different hierarchical
levels within the organisation (Managing Director, General Manager, Material
Manager). Further, persons in a buying situation, may appear to play different
roles over the entire buying decision exercise. A useful conceptualisation of various
roles of the different members is the concept of the Buying Centre. The various
members of the buying centre may appear to play any of the following roles:
 Users like production department person
 Influencers like Managing Director, Design Engineers or Consultants
 Deciders like the committee appointed by Khyati Builders.
 Buyers like the people from the purchase or materials department
 Gatekeepers like those who can control the flow of information within an
organisation
 Specifiers like consultants or design or production people who may develop
the specifications of the product or services needed.
The concept of Buying Centre is a very useful conceptualisation and it can
help immensely in developing effective marketing strategies.
2. It is a formal activity which follows the procedures laid down in an
organisation: Irrespective of the rupee value of technical complexities of products
and services, buying activities have to conform to the formal process and
procedures of an organisation. Even for emergencies, a typical organisation would
have a set of policies, and it is imperative for the suppliers to be aware of these.
Further, all buying decisions are finally converted into formal contracts between
buyers and suppliers.
3. Longer time lag between efforts and results: On account of being a
multiperson and formal activity, the organisation buying decisions take typically
longer time. This leads togreater time lags between the application of the market
effort and obtaining of the buying response. A marketer may develop unrealistic
plans if he is unaware of the response time of his customer for various buying
situations. 55
Consumer Behaviour-Issues 4. Rational but also emotional activity: In spite of a formal activity following
and Concepts
a rational criterion of evaluation, organisational buying cannot be devoid of the
emotional (or irrational) aspects. This is because it involves human beings in
the buying decisions, The case of Khyati Builders has hints in it (common friend)
where after following a very rational and formal process, the decision appears
to have been influenced by some human or emotional considerations. These
human considerations are likely to play a vital role in situations of almost similar
alternatives or similar ethics like buying of commodities, raw materials, standard
products and components,
5. The uniqueness of organisations: In spite of the above common characteristics,
no two organisations would be similar in their buying behaviour and decisions,
these differences would be due to the nature of buying problems, objectives,
resources, capabilities as well as the human factors involved and so on. It is therefore
important to consider each organisation as a separate segment at the selling level.
Above characteristics are indicative enough to showcase that organisational buying
behaviour is more complex than consumer buying behaviour. It is not only more
complex than consumer buying behaviour, but also more complex than any other
types of decisions within the organisation. The added complexity, as claimed by
Webster and Wind, is primarily due to four factors:
1) Purchasing work flow is almost entirely cross-wise in the organizations.
2) Formal authority over buyers (purchase department executives) can be in
the hands of either a purchase manager or any other functional manager
like production manager.
3) A major work of the ‘purchase function’ is with people outside the
organisation.
4) Purchasing is a service function and this may have the perception of a lower
status within the buying organisation.
The idea of sharing some generalisable characteristics of organisational behaviour
was not only to highlight the complexities and differences; but it was also to encourage
a thinking process in your mind to relate some of your own experiences with these
characteristics. With the help of some known experiences, you may either like to
corroborate with the generalisations or maylike to disapprove of some of the
generalisations. You may consider this as your first exercise for this lesson.
Activity 1
Visit an organisation that you are familiar with, or study your own organisation
and try to analyse any two of its recent organisational purchases. With respect
to the characteristics studied just now, list out the factors which characterise
these buying situations.
Purchase 1
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....................................................................................................................
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56
 Organisational Buying
Purchase 2 Behaviour

....................................................................................................................
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3.4 WHO ARE THE ORGANISATIONAL

CUSTOMERS?
By now, you must be wondering about this ‘ghost’:organizational customer. Perhaps
we need to become more clear about the constituents of the ‘organizational’ markets.
Conceptually, anyone besides the ‘household’ customer, i.e., those customers who
are buying for self, can be valid cases of organizational customers. However, a useful
and comprehensive way to identify the organizational customers is to visualize the
entire chain of the participants who may be involved in the production and marketing
of goods and services. Thus, for a desert cooler, the manufacturer may need
galvanized‘ iron sheets for body, angle iron for frames, wood shavings for water
pads, exhaust fan for air and so on. Similarly, each supplier of the needed items
would also need the downstream products in form of raw material, components
and parts. Thus, an exhaust fan manufacturer would need cold rolled strips for fan
blades, silicon iron laminations for rotor of the motor, wires for coils, and so on.
The chain, as you would begin to see, is long. Similarly, in order to market, there
would be a need of distributors and retailers. Figure 2 is a graphical representation
of this chain.

Figure 2 : The Chain Indicative of the scope of the Organisational Customer

With the help of Figure 2, it will be easy for you to appreciate that this ‘ghost
organisational customer’ can have several types and forms. These could be:
Mining and Extractive Industries: Coal India Limited, ONGC, Hindustan Copper
Limited are some examples.
Material Processing Industries: Tata Steel, Steel Authority of India Limited (SAIL),
Bharat Aluminium Corporation (BALCO) are some examples.
Manufacturing of Parts and Assembly: Bharat Forge, MICO, Sundaram Clayton,
GEC, Larsen & Toubro are some amongst a very large number of part and assembly
manufacturers catering to a variety of needs.
Final Assembly: Desert Cooler Manufacturer (there are several local brands), T.V.
and computer manufacturers (Sony,Samsung,HP, Dell, HCL), Truck manufacturers
(TELCO, Ashok Leyland, Mahindra) and the like are some examples. Like
57
Consumer Behaviour-Issues components and parts manufacturers, there could be many assembly units for numerous
and Concepts
end products.
Distributors: These could be several for each product like bearings, tubes, steel,
electrical appliances and so on. The entire range on internet-based consumer
transaction has added a new domain of organisational buying activity.You can easily
imagine the mammoth range of buying that online distribution aggregators like Amazon,
Flipkart, Myntra, Meeshow would be engaging in.
Perhaps, it is now easy for you to recognise that the area of operation of what we
call as “organisational marketing” is very vast and heterogenous. In such a scenario,
a legitimate question would be the validity of generalisations in form of typical
characteristics. Thus, from the viewpoint of practice, it is imperative to study the
organisational buying behaviour for the specific product-market situation.
A second way to identify the organisational customers is to classify them into three
categories. Industrial (all manufacturing organisations), Institutional (service organisations
like universities, hospitals, hotels, distribution firms) and government (CPWD,
DGS&D, Defence and so on). Besides the ownership pattern (public, private,
government) and type of business (manufacturing, service) it is important to remember
that it is neither the size (big, medium or small) nor the products, which separates
organisational customers from household customers.
Activity 2
With respect to the purchases that you studied for Activity 1, analyse how
these organisational purchases are different from individual purchases.
Purchase I
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....................................................................................................................
....................................................................................................................
....................................................................................................................

Purchase II
....................................................................................................................
....................................................................................................................
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3.5 WHAT INFLUENCES ORGANISATIONAL

BUYING?
So far, we have discussed the meaning, characteristics of the organisational buying
behaviour and the constituents of the organisational markets. We will now discuss
the factors which may directly or indirectly influence the organisational buying behaviour.
58 A segment of economists. and marketers believe that the dominant influences are
essentially economic. Lowest price or lowest cost are thus considered as the only Organisational Buying
Behaviour
criteria to select suppliers. On the other hand. a few take another extreme view of
declaring all organisational buying as an emotional or non-rational act as it involves
human beings making it difficult to maintain rationality or objectivity.
Accordingly, some suppliers feel that with strong personal relationships or with the
ability to win over the purchases through lures and. personal attractions, they may
get preference overothers. Both the viewpoints are the two extremes and reflect
only a limited view of the reality. What perhaps is needed is a balanced viewpoint
recognising that organisational customers respond to both economicand personal
factors. Where there is a close similarity in supplier offers; organisational customers
have little basis for only economic criterion. Remember our Khyati Builders case,
while many different brands of computer systems could meet the organisational
objective, personal factors did play an important role. On the other hand, where
competing products/brands differ substantially, organisationalcustomers may paymore
attention to the economic considerations.
A comprehensive view of influences has been provided by Webster and Wind. They
have grouped the various influences into four areas: environmental, organisational,
inter personal and individual. These groups are shown in Figure 3.

Figure 3 : Major Influences on Organizational Buying Behaviour

Environmental Factors: These factors include economical, political, technical, legal

or regulatory, technological, infrastructural and cultural factors. Environmental factors
interact with each other to produce information, values, norms and general business
conditions. The influence of environmental factors can be pervasive. A handy Indian
example is that of the current Atmnirbhar Bharat policy which requires public
organizations to give preference to products of comparable quality made in India.
This single policy will therefore have a significant effect on buying considerations
within government and public sector organisations.
Similarly, the persistent push towards green energy alternatives and the support of
given such initiatives through recognition and accreditation processes has encouraged
many education institutions to install solar energy-based power generation in the
institutions. Power shortages in some states in India have prevented the use of
‘sophisticated automatic elevators in the office and residential buildings and inspite
of the availability, the preference is still for manually operated elevators with shutter
type of doors.
59
Consumer Behaviour-Issues An industrial marketer should be aware of the environmental factors which may
and Concepts
affect the buyer behaviour and correspondingly fine tune its marketing strategy. Failure
to recognise the influences may lead to lost opportunities
Organisational Factors: While discussing the characteristics of organisational buying
behaviour, it was mentioned that organisations may differ from each other due to
objectives, procedures, organisational structure, systems and technology. It is important
to recognise the influence of such organisational factors on the buying behaviour. A
study by Sarin on four very large industrial organisations in India revealed major
changes in the buying structures and systems of the Indian firms.
Some of these were:
i) Innovativeness in Organisational Buying
ii) Emergence of “Buyer” as an Important Member of the Buying Centre
iii) Decentralization and Centralization of materials
iv) Computerization of Organizational Buying
v) Separate Buying for Specialized Jobs
vi) Concern to Prevent Unhealthy Transactions between buyers and marketers
vii) Recognition at the top level.
The Interpersonal Factors: Organisational buying is a multi-person activity. The
concept of buying centre highlights the roles which different members of the buying
organisation may play in the entire buying decision making exercise. The situation
becomes more complex due to different statuses, authority, empathy and
persuasiveness of the members of the buying centre. These may lead to conflicts.
Though difficult, an organisational marketer may make attempts to become familiar
with the internal dynamics of the buying process within a customer organisation.
Sheth has identified four ways which organisations use for conflict resolutions:
i) Problem Solving Approach: It involves information acquisition and
deliberation for more time.
ii) Persuasion: Attempt is made to influence the opinions of dissenting members
by asking them to reduce the importance of the criteria they are using in
favour of better overall achievements of organisational objectives.
iii) Bargaining: A more typical situation in which a conflict arises is due to
fundamental differences in buying goals and objectives. This is usually true
for new buying situations. In such a situation, conflict is resolved not by
changing the differences in relative importance of the buying goals or
objectives of the individuals involved, but by the process of bargaining.
For instance,in this a single party may be allowed to decide autonomously
in the specific situation in return for some favour or promise of reciprocity
in future decisions.
iv) Politicking: When the earlier three fail, the parties may resort to tactics
which may be unhealthy and lead to casting of aspersions on the dissenting
members.
60
According to Sheth, both ‘problem solving’ and ‘persuasion’ are rational methods. Organisational Buying
Behaviour
Politicking and bargaining are considered as non-rational methods.
The Individual Factors: In spite of the environmental, organisational and interpersonal
factors, it must be recognised that ultimately individuals, and not organisations, take
buying decisions. Each member of the buying centre has a unique personality, a
particular set of learned experience, a specified organisational function to perform,
and perceptions of how best to achieve both personal and organisational goals.
An industrial marketer should be aware of the differing buying perceptions and their
influences on the ultimate buying decision. Perhaps, an understanding of the ‘perceived
risk and its management’ at the individual level holds the key to identifying the
individual influences on organisational buying behaviour in specificsituations
The Perceived Risk: Newall defines decision making as a risk-taking activity and
in this sense organisational buyer behaviour is seen as a risk handling behaviour.
According to Newall, the factors, which affect the risk behaviour are:
a) Characteristics of the Purchase Problem: Some factors related to purchase
problems are:
 size (rupee value) of the expenditure
 degree of novelty contained in the type of buying task
 degree of product essentiality
 factors provoking purchase.
b) Characteristics of the Buyers: This ncludes
 Buyer’s level of general self-confidence
 Buyer’s level of specific self-confidence in a given buying situation.
 Buyer’s experience in playing the purchase role
 Buyer’s purchase history i.e., of buying within a particular product area
 Buyer’s degree of technical and professional affiliations.
c) Organisational Environment: Some factors affecting the risks at the level of
the company are:
 The size and financial standing of the organisational customer
 The degree of decision centralisation
 The degree of decision routinisation.
d) The Management of Perceived Risk: Basically, an individual visualises two
types of risk.
 Performance risk-product may failt ocomeup to the performance standards
 Psychological risk-fear of being held responsible or accountable for the
decision by other members.
Both performance and psychological risk can be associated with the uncertainty
concerning the outcome and the magnitude of the consequences associated with
61
Consumer Behaviour-Issues the wrong choice. Individual decision makers are motivated by a strong desire to
and Concepts
reduce the level of risk in purchase decision. Research suggests the following categories
of action to minimise the risk:
1. external uncertainty reduction (e.g., visit supplier’s plant)
2. internal uncertainty reduction (e.g., consult with other buyers)
3. external consequence reduction (e.g., multiple sourcing)
4. internal consequences reduction (e.g., consult with company’s top
management)
Organisational buyers can also reduce the level of risk in purchasing situation by
relying on familiar suppliers. This source loyalty provides a convenient method of
risk minimisation. Similar to this, is a situation of placing orders on‘high’ credibility
image suppliers in new buying situation.
An industrial marketer must make an attempt to understand and anticipate the areas
of perceived risk and its minimisation by different members of the buying centre in
specific buying situations. The knowledge may help them in developing effective
selling strategies.
Activity3
a) Talk to a supplier who supplies material/equipment/machinery etc. to
organisational buyers: With reference to his last major order, try to find
out what in his view, influenced the purchase decision in his favour.
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................

b) Discuss a major organizational purchase within your own organization or

any organization/institution that you are familiar with. Try to analyses the
main influences-environmental, organizational, interpersonal or personal which
influenced this purchase.
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................

c) Do you find any difference in this viewpoint of the supplier and the
organizational buyer? Comment on it.
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................
62
 Organisational Buying
3.6 THE ORGANISATIONAL BUYING SITUATIONS Behaviour

An organisation needs to buy a variety of products and services to achieve its

objectives. The ‘buying basket’ for a typical industrial customer may include products
from any of the following categories:
1. Raw material-Steel, aluminium, iron ore
2. Major capital items - Blast Furnace, CNC machine tools, refrigeration systems
for a cold storage unit
3. Minor Capital Items-Industrial motors, pumps, valves, ERP solutions
4. Fabricated components and -Castings, sheet metal components, forgings
parts and sub-assemblies
5. Processed Chemicals-Foundry chemicals, basic pharmaceuticalformulations
6. Consumables-Lubricating oil, welding electrodes, batteries
7. Office Equipment-Plain paper copiers, computer and UPS sets.
8. Services-Travel arrangement, transporters, security, housing etc.
It should be easy for you to recognise that some products may be just one-time
purchases (major capital equipment), and others may be purchased frequently. The
buying effort, in this sense, would be a function of the experience which the organisation
may have for the different buying situations. Robinson, Faris and Wind have classified
the various buying situations into three categories
1. Straight-Re-buy Situations: This situation is similar to repeat buying situations
of consumer/household buying. In this the buyer keeps on placing the order
on routine basis without changing any product specifications (stationery items,
chemicals, lubricants, abrasives, paints are some examples). Some typical
characteristics of the routine buying situations are:
a) Routine purchasing procedures exist,
b) The buying alternatives are known, and a formal or informal list of ‘approved’
suppliers is available.
c) A supplier, not on list, is not considered.
d) Decision on each separate transaction is made by the purchasing department.
e) Buyers have relevant buying experience and require little new information
2. Modified Re-buy: In a modified re-buy situation, a buyer may change the
product specifications or may even change to a substitute product for economic
and performance considerations. Thus, using aluminium instead of copper wires,
nylon bushes instead of brass and using hydraulic excavators instead of mechanical
ones, are some examples. In this situation, some familiarity with either product or
its performance expectations does exist. Some characteristics of the modified re-
buy situations are:
a) A regular requirement for the type of product exists.
b) The buying alternatives are known, but sufficient change has occurred to
require some alteration to the normal supply procedure. 63
Consumer Behaviour-Issues c) Change may be stimulated by external events, e.g., a policy change regarding
and Concepts
a raw material, inputs from supplying companies or an improved model
becoming available.
d) Change may be stimulated by internal events, e.g., new buying influences,
value analysis, reorganisation.
3. New Task Situation: New Task is a situation where the organisational customer
buys the product for the first time without having any previous experiences
(personal computers, networking solutions, solar power solutions, CNC machine
tools, multimedia labs are some products for which little experience exist amongst
a large number of organisations). Some of the characteristics, for ‘new task’
situations are:
a) Need for the product has not arisen previously.
b) Little or no past buying experience is available to assist in the purchasing
decision.
c) Members of the buying unit require a great deal of information.
d) Alternative ways of meeting the need are likely to be under review.
e) The situation occurs infrequently, but the decisions taken may set a pattern
for more routine purchases subsequently.
f) Opportunities exist at an early stage in the decision process for external
(marketing) inputs to have an influence on the final decision made.
Activity 4
Study the purchases made by your organisation/institution in the last 3 months.
How would you classify them in terms of buying situations?
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
b) What were the characteristic features of
i) Straight Re-buy situations
ii) New Task situation
in your organisation /institution.
i) Straight Re-buy situations
............................................................................................................
............................................................................................................
ii) New Task situation
............................................................................................................
............................................................................................................
64
 Organisational Buying
3.7 ORGANISATIONAL BUYING BEHAVIOUR: Behaviour

SOME MODELS
The central idea of knowing and understanding the buyer behavior is to anticipate
the response of a buyer for different marketing stimuli surrounded by various
environmental factors. Figure 4 is a simplified conceptual model highlighting this
relationship.

Figure 4 : A Simple Model of Organizational Buying Behavior

The conceptual model is indicative of the relationships and possible outcomes.

However, a marketer’s desire is to have a functional model with high degree of
predictive reliability. In simple terms, he wants to have an answer as to “how” and
“when” will he get the results. Desire to answer this question with high degree of
consistency on predictive reliability has led to the development of a large number
of models on organizational buying behavior. However, some of the important
indicative models are being analyzed here.
The Buy Grid Model: Robinson, Faris and Wind, developed a matrix with
rows for various buying decision steps (called as Buy Phases) and the columns
as the type of the buying situation (called as Buy Classes). This model is shown
in Figure 5.

Figure 5: The Buy Grid Model of Organizational Buying Behavior 65

Consumer Behaviour-Issues The interaction of 8 rows with 3 columns has resulted into 24 cells. This model, as
and Concepts
you would observe, provides a very comprehensive view of the buying exercise. It
would be easy for you to recognize that the buying exercise may be a very complex
and time consuming for the ‘new task’. This is because a buyer in this situation will
have a large buying centre, and will require sufficient amount of effort and time for
each phase before moving to the second phase. On the other hand, the task would
be simple and routinised for straight re-buy situations. A marketer, depending upon
thebuy class for his product can formulate the marketing strategies. The payoffs of
the ‘buy grid’ models are:

 Its ability to convey the degree of complexity or simplicity for an organizational

customer for a given product or service.

 Its ability to help the marketers to anticipate the marketing effort needed
for the different buying stages in the decision making.

 A framework to identify the composition of the buying centers and the

dominant influences for each stage.

In spite of the above payoffs, the buy grid model is completely devoid of any predictive
ability. It addresses itself only to the ‘non-human’ factors and thus fails to bring out
the dynamics and the influences of human related or emotional factors. But in spite
of the limitations, the Buy Grid Model is a very useful conceptual framework to
comprehend the complexities of organizational buying behavior.

Activity 5

With the help of the ‘Buy Grid Model’ framework, study the buying decision
exercises in a company for the three types of buying situations. Try to identify
the composition of buying’ centers for different buy phases and try to map the
total buying center for each buying situation.

...................................................................................................................

...................................................................................................................

...................................................................................................................

...................................................................................................................

...................................................................................................................

...................................................................................................................

...................................................................................................................

...................................................................................................................

The Fisher's Model: Figure 6 illustrates this model. This has been named after its
author.
66
 Organisational Buying
Behaviour

Figure 6: Fisher’s Organizational Buying Behavior Model

As you would observe, the model attempts to identify the dominant influences along
two main dimensions of any buying decision. These are product complexity and
commercial uncertainty. Consider the case of Khyati Builders. For this, the product
complexity as well as the commercial uncertainties were low, the purchase department
(Buyer Emphasis Cell 1) played the dominant role in the buying decision. It was
only after the short listing of the two options, that the top management was involved.
Fisher’s conceptualization is an outstanding example of a simple representation of
a very complex situation. In fact, it is a true representation of administrative
arrangements and provisions which a large number of organizations have made to
buy a vast heterogeneous array of products and services. The limitation, however,
is absence of predictive ability.It also fails to highlight the time dimension and the
various steps in the buying decision exercise. Similar to the buy grid model, it facilitates
in providing good insights of buying situations.

3.8 THE SELECTION OF A SUPPLIER

Up to this point of time we have been discussing the ideas, issues and concepts
related to organizational buying behaviour. Through these, we have covered the buying
decision process, buying situations, buying influences, typical organisational buying 67
Consumer Behaviour-Issues characteristics and finally two models of the organisational buying behaviour. Khyati
and Concepts
Builders case, also gave us the idea of the total buying task. In this section, we will
concentrate on the evaluation and selection criteria which organisations may adopt
while selecting suppliers for the specific products or services. For instance, the
purchase manager of Khyati Builders had received 10 quotations from different
manufacturers/vendors of computer systems. He had then, based on a check list
of attributes, and on the basis of committee discussions short listed the two brands.
Generally, these attributes cover product quality, reliability of the supplier, price and
delivery. However, the attributes and their relative importance may vary for different
product categories. Thus, in case of computers, the importance ranking of vendor
evaluation attributes by theKhyati Builders could be:
Ranking Order Attribute
1. Reliability of delivery dates promised
2. Price
3. Supplier’s flexibility
4. Consistency in dealings of the supplier
5. Complaint rates and resolution
6. Kind of assembly/production facilities
7. Efficient follow-up of the order
8. Persistent efforts to improve the quality of services
9. Prompt attention to enquiries
10. Supplier’s overall reputation
Using the important attributes, members of the buying center may then rate the suppliers
against these attributes to identify the most attractive suppliers for computers. After
the ratings of the suppliers on these attributes, the members of the buying center
may like to negotiate with the preferred suppliers for better terms of prices and
delivery schedules before making the final selection. Depending upon the situation,
they may select one or many suppliers. Telco’s price panels, to finalise the annual
contracts for a large number of ‘boughtouts’, is a classic example of selecting vendors.
Before inviting the suppliers for meeting with the ‘price panel’, Telco evaluates the
suppliers on relevant attributes. After ensuring quality and reliability, it begins its
negotiations on the commercial aspects covering price, delivery schedules and payment
terms to arrive at mutually beneficial agreements for both the suppliers and Telco.

3.9 SOME RECENT DEVELOPMENTS THAT HAVE

IMPACTED ORGANISATIONAL BUYING
BEHAVIOUR
 Technology enabled search and access to suppliers/manufacturers-
The rapid proliferation of technology and applications of the Internet have made
vast changes to the way we live and work. Organizational buying processes
have been impacted in many ways particularly in terms of widening access to
suppliers and manufacturers, technology supported interactions including meetings,
68 live demonstrations and synchronous video-based meetings across distances
 and even countries. The range of sourcing options has indeed widened and in Organisational Buying
Behaviour
the view of some large multinationals, has facilitated the pursuit of strategic cost
advantage.
Communications have become faster; Data Processing and analytics have enabled
alternative evaluation more realistic and efficient. One has only to look at the
accelerated growth of e commerce in the B2B segment to appreciate the extent
of ICT usage in one organizational buying.
A Forrester survey found that 74% of B2B business executives conduct more
than half of their research online before making an offline purchase. (https://
www.forrester.com/blogs/15-05-25-myth_busting_101_insights_)
Another recent survey showed that more than half of all B2B buyers (51%) now
depend on content to support their buying decisions. Almost all the buyers surveyed
(96%) wanted more inputs from industry thought leaders, and 47% buyers interacted
with three to five pieces of content before calling a sales representative. An interesting
fallout was that interaction following online information acquisition and with follow
up meetings resulted in forming strong relationship networks that are a vital link in
organisational (https://www.demandgenreport.com/resources/research/2016-content-
preferences-survey-b2b)
The role of an in-person sales representative is likely to come under some rethinking,
as the cost and efficiency of long-distance demonstrations followed by in depth
technical discussions with potential suppliers get adopted as a mainstream practice.
Within the Buying Centre, with access to information becoming more ubiquitous,
the role of the gatekeeper is likely to come under some reset as all members of the
Buying Centre are now in a position to access verifiable information about buying
alternatives.
Trends emanating from developments in IoT
An ongoing research study based on case studies of organizations on buying
professional services has explored the development of IoT based applications in
organizations and came to the conclusion that in times to come the straight re-buy
situations are likely to be strongly dependent on IoT applications in terms of the
restocking point and the reorder quantity. AI applications may begin to facilitate
information-based inputs on supplier choice for straight re-buy situations.

3.10 SUMMARY
Organisational buying behaviour is a complex process of decision making. A variety
of influences and factors add to this complexity. The buying behaviour of a firm
would vary for ‘new buy’ situations to ‘repeat buy’ situations. In order to comprehend
various dimensions, it may help industrial marketers to seek answers to some basic
questions like:
 How does an organisation buy?
 Who takes the buying decisions in an organisation?
 What factors influence the buying behaviour of an organisation?
 Who constitutes the organisational markets?
 What evaluation criteria is used to select the vendors? 69
Consumer Behaviour-Issues The area is vast as it encompasses thousands and thousands of product market
and Concepts
situations, which in some sense may appear as unique and distinct from each other.
It is therefore suggested to relate some specific situations with the general views
discussed in this unit. This will facilitate in your comprehension of this complex diversity.

3.11 KEY WORDS

Buying Centre : It comprises of members, who are directly or
indirectly connected with the organizational
buying decisions. The different roles are:
Influencers : These are individual who can influence the buying
decision at any stage. Top management, external
experts, consultants, financial institutions and
government policy makers are usually grouped
into this category.
Users : Individuals who actually use the product-service
package. They are sometimes also defined as
‘indentors’ or ‘specifiers’.
Deciders : Individuals who are entrusted with the
responsibility of making the buying decision. This
category can include ad hoc purchase
committees.
Specifiers : Those individuals who develop and finalize the
product’s technical specifications.
Buyers : Individuals who are entrusted with theact of
formalizing the final order and the commercial
terms and conditions. They are normally
executives of the purchase department.
Gatekeepers : Individuals who control the flow of information
within a buying organization. These can be top
management personnel, information analysts such
as computer personnel and at times even mail
receiving and sorting personnel
Buy Phases : The different stages of the buying decision
process like problem recognition, evaluation
(refer to the rows of the Buy Grid Model).
Buy Classes : The three types of the buying situations like
straight re-buy, modified re-buy and ‘new
task’.
Evaluation Criteria : The criteria like price, delivery, quality used by
the customers to evaluate the suppliers.
Organisational Customer : The term includes industrial customers,
institutional customers and the government
customers.
70
Buying Influences : These include infrastructural, political, Organisational Buying
Behaviour
organisational, economic, social and individual
factors.

3.12 SELF-ASSESSMENT QUESTIONS

1. How would you differentiate between organisational buying and individual buying.
Taking the example of purchase of CCTV camera, stationery for your home
use and for organisational purposes, explain the differences across the different
stages of the buying decision.
2. Discuss the major influences on organizational buying.What opportunities does
the knowledge of these influences create for theindustial marketer.
3. Explain the Fischer model of organisational buying behaviour.
4. Discuss the criteria affecting the selection of suppliers by an organisation. Try
to find out the process and factors influencing the supplier selection for your
organisation and compare it with what you have studied.
5. How does the organizational buying of IT solutions for the organization create
atypical issues of complexity in the context of rapidly changing technologies,
multiple options with slightly differing features and the long commitment period.
What are the risk reduction strategies that organizations can use in such situations?
6. Try to identify three or four purchase situations which enable you to use the
issues and concepts discussed in the section of buying influences and perceived
risk in these, situations.

3.13 PROJECT QUESTIONS

Meet a person responsible for purchasing in industry/ organization/ or government
agency and discuss the role of supplier relationship management.

3.14 FURTHER READINGS

Aggarwal, M., Burger, J.K., Philip, C.; and David R.A. (1986). “Readings in Industrial
Marketing,”’ Prentice-Hall, Inc., Englewood Cliffs, New Jersey.
Ames, C. B., and Hlavaack, J. D (1984). “Managerial Marketing for Industrial
Firms”, New York. Random House Business Division, pp. 247-265.
Arch, G. W., andKathleen R. F. (2005). Advancing OrganisationalBuying Behaviour
Theory andResearch: 1956-2056,Journal of Customer Behaviour 5(2):121-140
Choffray, J.M., and Lilien, G. L. (1980). “Market Planning for New Industrial
Products”, John Wiley & Sons, New York.
Corey, R.E. “Industrial Marketing, Cases and Concepts”, 3rd ed., Englewood Cliffs,
New Jersey: Prentice Hall, Inc.
Ghosh, P.K.(2005). Industrial Marketing Oxford University Press.
Hutt and Speh (1981).”Industrial Marketing Management”, Chicago: Dryden Press,
1981.
71
Consumer Behaviour-Issues Kevin, S. An Exploration of Organizational Buying Behavior In The Public Sector,
and Concepts
Digital Object Identifier: https://doi.org/10.13023/ETD.2018.119
Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
Talai, O.,Wesley, J.J.(2018).”The adoption of the Internet of things technologies in
business procurement: impact on organizational buying behavior, Journal of Business
& Industrial Marketing 33(10)DOI:10.1108/JBIM-10-2015-0190
Tilley, A. (2015) “Qualcomm: The Internet of Things is already a billion-dollar
business,” Forbes.com accessed on May 15, 2015.
Webster, F. E (1984). “Industrial Management”, 2nd Ed., Wiley, New York.
Zablah, A., Brian, B., and Naveen D. (2010) “The relative importance of brands
in modified rebuy situations,” International Journal of Research in Marketing,
27-3, pp. 248-260.

72
 Block-2
Individual Influences on
Buying Behaviour
BLOCK 2 INDIVIDUAL INFLUENCES ON
BUYING BEHAVIOUR
This block addresses the individual variables affecting the behaviour of people while
assessing, acquiring, consuming, and evaluating goods and services. The block consists
of five units on perception, learning and memory, attitude and attitude change,
personality and self-concept; and consumer motivation and involvement. It builds
up on the general background developed in Unit 1 of the course and deals in depth
with each of the aforementioned individual variables. Project assignments to aid
application of the concepts have been specially added to facilitate learning.
Unit 4 PERCEPTIONS
Unit 5 LEARNING AND MEMORY
Unit 6 ATTITUDE AND ATTITUDE CHANGE
Unit 7 PERSONALITY AND SELF-CONCEPT
Unit 8 CONSUMER MOTIVATION AND INVOLVEMENT
Individual Influences on
Buying Behaviour

76
 Perceptions
UNIT 4 PERCEPTIONS
Learning outcomes
After having gone through this unit, you should be able to:
 explain the concept of perception
 describe the stages in the perceptual process
 apply the understanding of sensory, absolute and differential threshold
 describe the way subliminal perception works.
Structure
4.1 Introduction
4.2 The Concept of Perception
4.3 Stages in the Perceptual Process
4.4 Sensory System
4.5 Sensory Thresholds
4.6 Perceptual Selection
4.7 Summary
4.8 Key Words
4.9 Self-assessment Questions
4.10 Project Questions
4.11 Further Readings
Every new product faces a certain amount of reluctance, indifference, and
resistance in the market. When the gearless scooter was introduced in the Indian
market, faced, however, an unusually high share of such problems. The scooter,
being gearless, was convenient to drive; better designed and more enjoyable
to ride. Yet the acceptance in Indian riders was not as uniform as the company
had anticipated. A certain segment of consumers and a geographical part just
could not accept it. Worse, a few customers enjoyed telling their negative
evaluation to the others. Their perception was that the scooter is suited for
female riders, and that it might not stand the rough and tumble of Indian roads.
However, with passage of time the gearless scooters are well accepted in the
2-wheeler market.

4.1 INTRODUCTION
Often, we find ourselves arguing with our friends or colleagues or family members
on one issue or the other. It could be a particular advertisement or a product image
or a social and political issue. The argument occurs because each one of us have
point of view and we wish to hold on to it. The process of developing a viewpoint
is known as perception. The study of consumer perceptions is important for marketers
as buying decisions are not made on the basis of objective reality but on the basis
of the perception of that reality that consumers hold in their mind. 77
Individual Influences on As will be later explained (Block 4 unit 13), we are in some way like computers,
Buying Behaviour
when we receive inputs, process the same and then produce output. However, unlike
computers, we do not passively process whatever information happens to be present.
In the first place, only a very small number of the stimuli in our environment are
ever noticed, of these, an even smaller amount is attended to. And the stimuli that
do enter consciousness might not be processed objectively. The meaning of a stimulus
is interpreted by the individual, who is influenced by his or her unique biases, needs,
and experiences. All this leads to the formation of a perception. A schematic
representation of the perceptual process is illustrated in Figure 4.1.

Figure 4.1 : The Perceptual Process

Activity 1
Do you see any flaws in the process of perception as portrayed in the
Figure 4.1?
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

4.2 THE CONCEPT OF PERCEPTION

In order to appreciate the formation of perception, it is necessary to understand
sensation. Sensation is the immediate response of our sensory receptors (e.g., eyes,
ears, nose, mouth, fingers) to such basic stimuli as light, color, and sound.
Perception, on the other hand, is the process by which these stimuli are selected,
organized, and interpreted. Like a computer, we process raw data (sensation).
However, the study of perception focusses on what we add to or take away from
these sensations as we assign meaning to them. That perception is subjective is
illustrated by reaction to the Kamsutra Condoms ad campaign. It was quite a
78
controversial advertisement in India for the suggestive imagery and text for the message. Perceptions
However, some of us also saw the creative representation of what we had for traditions
in India.
Activity 2
List two more features of the term perception.
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

4.3 STAGES IN THE PERCEPTUAL PROCESS

No consumer forms perception in a single step. Rather, perception is an outcome
of a process consisting of the following parts:
a) Primitive Categorization
Here, the basic characteristics of a stimulus are isolated by the person to form his
perception. Thus, anything shining, may be seen with an amount of suspicion by
the consumers. This is what is known as primitive categorization. A slight error of
judgement on the part of the marketer in not appreciating this, may lead to a marketing
pitfall. For instance, sample bottles of Sunlight, a dishwashing liquid in the US market,
were mailed to consumers. The liquid contained 10 per cent lemon juice. Almost
80 people were treated at poison-centres after drinking some of the detergent. These
individuals apparently assumed that the product was actually lemon juice, since many
of the packaging cues resembled Minute Maid - a popular brand of frozen lemon
juice.
b) Cue Check
Here, the cue characteristics are analyzed by the person in preparation for the selection
of a schema. In the context of the sunlight liquid example quoted above, the cue
check stage in the perceptual process was the pairing the yellow bottle with a
prominent picture of a lemon.
c) Confirmation Check
Here, once the schema is selected, a confirmation check is run by the person to
see the validity of the schema chosen. In the context of the continuing example of
the Sunlight liquid detergent, a juice schema was selected instead of a dishwashing
liquid schema. The confirmatory check was the picture of the lemon juice as found
on the leading brand of a reveal lemon juice.
d) Confirmation Completion
The last and the final stage is confirmation completion where a perception is formed
by the consumer or any person for that matter and decision is made. The act of
drinking the-detergent illustrates it. Unfortunately, the consumers found out their mistake
the hard way.
79
Individual Influences on
Buying Behaviour Activity 3
Give one Indian example similar to the one illustrated in the text and explain
the stages of the perception making.
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4.4 SENSORY SYSTEM

External stimuli, or sensory inputs, can be received from a number of sources. We
may see a billboard, hear a jingle, feel the softness of a cashmere sweater, taste a
new flavour of ice cream, or smell a leather jacket. The inputs picket up by our
five senses constitute the raw data or sensation that generates many types of responses.
For example, sensory data emanating from the external environment (e.g., hearing
a song on the FM radio) can generate internal sensory experiences when the song
on the FM radio triggers a young man’s memory of his childhood dance and brings
to mind the soft feelings of the mothers’ touch. Sensory inputs evoke historic imagery,
in which events that actually occurred are recalled. Fantasy imagery is the result
when an entirely new, imaginary experience is evoked by sensory data. These responses
are an important part of hedonic consumption, or the multisensory, fantasy, and
emotional aspects of consumers’ interactions with products. The data that we receive
from our sensory systems determine how we respond to products.

4.4.1 Vision
Marketers rely heavily on visual elements in advertising, store design, and packaging.
Meanings are communicated on the visual channel through a product’s size, styling,
brightness, and distinctiveness from competitors. Colour is one of the most potent
aspects of visual communication. Colours are rich in symbolic value and cultural
meanings. For example, the display of green, white, and orange evokes feelings of
patriotism for us. Such powerful cultural meanings make colour a central aspect of
many marketing strategies.

4.4.2 Smell
Odours can stir emotions or create a calming feeling. They can invoke memories
or relieve stress. Some of our responses to scents result from early associations
with other experiences. Consumers’ love of fragrances has contributed to a very
large industry. The domestic flavours and fragrance market is valued at $500 million
(around 3,600 crore), a small slice of the $24 billion global industry. Lovers of
incense, loban and attars, Indians are now turning to more niche fragrances. The
rise of artisanal houses such as Scentido and Maison des Parfums is a testament
to the new hunger for unique perfumes. The other players include Bombay Perfumery,
All Good Scents, Litrahb Perfumery, and Naso. In addition, sensory inputs like
the smell of authentic leather, aroma of coffee and bakery are powerful associations
with your favourite club or coffee house that may get invoked by similar aromas.
80
4.4.3 Sound Perceptions

Music and sound are also important to marketers. For example, in case of App
based mobile payment system, once transaction is officially complete, consumers
hear a unique sound. When customers hear this sound, they know their purchase
was finalized successfully and securely. Many aspects of sound may affect people’s
feelings and behaviours. Two areas of research that have widespread applications
in consumer contexts are the effects of back-ground music on mood and the influence
of speaking rate on attitude change and message comprehension.

4.4.4 Touch
Although relatively little research has been down on the effects of tactile stimulation
on consumer behaviour, common observation tells us that this sensory channel is
important. Moods are stimulated or relaxed on the basis of sensations of the skin,
whether from a luxurious message or the bite of a winter wind. Sense of touch plays
an important role in consumer perception, evaluation, and decision making of a
product. Because of this role, many companies offer hands-on tests for their products.
For example, Apple provide in-store access to its technology. This approach allowed
users to touch and interact with the technology before buying. Furniture sellers,
allowing customers to sit on and feel the furniture before buying, Clothes retailers
provide setup to let people experience to look and feel of a garment before buying.

4.4.5 Taste
Our taste receptors obviously contribute to our experience of many products.
Specialized companies called “flavour houses” keep busy trying to develop new
tastes to please the changing palates of consumers. Snack brand Frito-Lay offers
multiple taste variations of Cheetos, including Flamin’ Hot, Puffs, White Cheddar,
Chipotle Ranch, and more.Their work has been especially important as consumers
continue to demand good-tasting foods that are also low in calories and fat.
Activity 4
Give one example each to illustrate these five sensory channels as described
above and suggest how marketers utilise this understanding.
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4.5 SENSORY THRESHOLDS

Have you ever blown a dog whistle and watched pets respond to a sound you
cannot hear? You are simply amazed by their power of sensation. The fact is that
there are some stimuli that people simply are not capable of perceiving. And, of
course, some people are better able to pick up sensory information than are others.
The science that focuses on how the physical environment is integrated into our
personal, subjective world is known as ‘psychophysics’. By understanding some
81
Individual Influences on of the physical laws that govern ‘what we are capable of responding to, this knowledge
Buying Behaviour
can be translated into marketing strategies. Thresholds work at the following levels.

4.5.1 The Absolute Threshold

When we define the lowest intensity of a stimulus that can be registered on a sensory
channel, we speak of a threshold for that receptor. The absolute threshold refers
to the minimum amount of stimulation that can be detected on a sensory channel.
The sound emitted by a dog whistle is too high to be detected by human ears, so
this stimulus is beyond our auditory absolute threshold. The absolute threshold is
an important consideration in designing marketing stimuli. A billboard might have
the most entertaining copy ever written, but this genius is wasted if the print is too
small for passing motorists to see it from the highway.

4.5.2 The Differential Threshold

The differential threshold refers to the ability of a sensory system to detect changes
or difference between two stimuli. A television commercial that is intentionally produced
in black-and-white, might be noticed on a colour television because this decrease
in the intensity of colour differs from the program that preceded it. The same
commercial being watched on a black-and-white television would not be seen as
different and might be ignored altogether. A consumer’s ability to detect a difference
between two stimuli is relative. A whispered conversation that might be unintelligible
on a noisy street can suddenly become public and embarrassing knowledge in a
quiet library. It is the relative difference between the decibel level of the conversation
and its surroundings, rather than the loudness of the conversation itself, that determines
whether the stimulus will register.

4.5.3 The JND and Weber’s Law

The minimum change in a stimulus that can be detected is also known as the JND,
which stands for just noticeable difference. In the nineteenth century, a psychophysicist
named Ernest Weber found that the amount of change in stimulus that is necessary
to be noticed is systematically related to the original intensity of the stimulus. The
stronger the initial stimulus, the greater the change must be for it to be noticed. For
example, if the price of 10 Rupee gel pen is increased by Rupees 5, it will be perceived
as a significant increase. Whereas, if the price of Rupees 75, 00, 000 apartment is
reduced by 5, 000 Rupees, the decrease may not be perceived. This relationship
is known as Weber’s Law. Many companies choose to update their packages
periodically, making small changes that will not necessarily be noticed at the time.
When a product icon is updated, the manufacturer does not want people to lose
their identification with a familiar symbol. On the other hand, whenever product
improvements are made marketers would like them to be above the level of JND
so that they are noticed and responded to.
Activity 5
Illustrate the sensory threshold concept with an example of advertisement for
Two-wheelers or Four-wheelers
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82
 Perceptions
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4.6 PERCEPTUAL SELECTION

Although we live in an “information society,” we can have too much of a good thing.
Consumers are often in a state of sensory overload, exposed to far more information
than they are capable of or willing to process. People who have been in the middle
of a noisy, crowded bar or party for several hours might feel the need to step outside
periodically to take a break. A consumer can experience a similar overwhelmed
feeling after being forced to sift through the claims made by hundreds of competing
brands. Further the competition for our attention is increasing steadily. As explained
in the Block 4, Unit 13, because the brain’s capacity to process information is limited,
consumers are very selective about what they pay attention to.

4.6.1 Subliminal Perception

People can perceive stimuli without being consciously aware of many things, including
the breath, most of the time. This process is called subliminal perception, as the
stimulus is below the absolute threshold level (ATL) of our conscious awareness.
The word “subliminal” literally means “below threshold.”
Subliminal perception is a topic that has captivated the public for many years, despite
the fact that there is virtually no proof that this process has any effect on consumer
behaviour. A survey of American consumers found that almost two- thirds believe
in the existence of subliminal advertising, and over one-half are convinced that this
technique can get them to buy things they do not really want. In fact, most examples
of subliminal perception that have been “discovered” are not subliminal at all; they
are quite visible. For example, Pepsi ran a Halloween campaign by featuring a Pepsi
can in a red cape, which had Coke’s brand colours without actual logo and message
as ‘We wish you a scary Halloween!’. In response to this, Coca-Cola released
advertisement with the same picture that was advertised by Pepsi by adding Coke
logo and mocked Pepsi by saying that ‘Everybody wants to be a hero!’. Remember,
if you can see it or hear it, it is not subliminal because the stimulus, by definition
has to be above the level of conscious awareness! Nonetheless, the continuing
controversy about subliminal persuasion has been important in shaping the public’s
beliefs about advertising and marketers’ ability to manipulate consumers against their
will. The public’s fear of unconscious manipulation, began with a widely popularized
experiment that was performed in a New Jersey drive - in movie theatre in September
1957. During a showing of the movie Picnic, a firm called the Subliminal Projection
Company inserted messages that said “Drink Coco-Cola” and “Eat Popcorn” for
1/3000 second every five seconds.’ This rate was too fast for viewers to be aware
that they had seen the images. Supposedly, sales of popcorn increased by almost
58 per cent and consumption of Coke grew by almost 18 per cent. The design of
the study was flawed in that other possible effects on consumption, such as the
movie itself, the weather during the showing, and so on, could not be ruled out.
Indeed, the executive responsible for the test later admitted that he had made up
results to revive his failing research firm. Despite the many studies of subliminal 83
Individual Influences on persuasion, there is no evidence that subliminal advertising persuades people to buy
Buying Behaviour
goods or services, and that most of its effects were researched in highly artificial
situations. However, there is tangential indication that subliminal advertising may
reduce anti-social behavior, such as that subliminal antishoplifting messages
broadcasted in malls may lower shoplifting rates.
Activity 6
Give one example of the subliminal perception concept application that may
be used by Indian marketers
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4.6.2 Subliminal Techniques

Subliminal perceptions can be formed through several routes. The following are some
techniques:
a) Embeds
Embeds are tiny figures that are often inserted into print advertising by use of high-
speed photography or airbrushing. These hidden figures, usually of a sexual nature,
supposedly exert strong but unconscious influences on innocent readers. Ice cubes
are a prime culprit for accusations of this type of subliminal persuasion. Critics often
focus on ambiguous shapes in drinks as evidence for the use of this technique. For
instance, one ad of the Gilbey’s Gin contains letters S E X are spelled out in the
ice cubes.The other example of embeds is a hidden dollar in the KFC sandwich
that links it to power and wealth
b) Auditory Messages
In addition to subliminal visual messages, many consumers and marketers seem to
be fascinated by the possible effects of messages hidden on sound recordings. An
attempt to capitalize on subliminal auditory perception techniques is found in the
growing market for self-help audiobooks. These audiobooks, which typically feature
the sound of waves crashing or some other natural setting, supposedly contain subliminal
messages to help the listener stop smoking, lose weight, gain confidence, and so
on. There are two types of auditory subliminal messages are further classified as
sub audible and backmasking messages. Sub audible messages are low-volume
messages inserted into louder audio files so that they cannot be heard. Whereas,
Backmasking is a video message recorded backwards so that the original message
is disguised when playing it forward. Despite the rapid growth of this market, there
is little evidence that subliminal stimuli transmitted on the auditory channel can bring
about desired changes in behaviour.
c) Consumer Folklore
Along with the interest in hidden self-help messages on recordings, some consumers
84 have become concerned about marketing rumours, also called as the consumer
folklore, of satanic messages recorded backward on rock records. The popular Perceptions
press has devoted much attention to such stories, and state legislatures have considered
bills requiring warning labels about these messages. These backward messages do
indeed appear on some albums, including Led Zeppelin’s classic son “Stairway to
Heaven,” which contains the lyric “...there’s still time to change.” When played in
reverse, this phrase sounds like “so here’s to my sweet Satan.” The novelty of such
reversals might help to sell records, but the “evil” messages within have no effect.
Humans do not have a speech perception mechanism operating at an unconscious
level that is capable of decoding a reversed signal.
d) Low Level Auditory Stimulation
One technique, known as ‘psycho-acoustic persuasion’, does appear to work. Subtle
acoustical messages such as “I am honest. I won’t steal. Stealing is dishonest” are
broadcast in more than 1000 stores in the United States to prevent shoplifting. Unlike
subliminal perception, though, these messages are played at a (barely) audible level,
using a technique known as threshold messaging. After a nine-month test period,
theft losses in one six-store chain declined almost 40 per cent, saving the company
$600,000. To conclude, some evidence indicates, however, that these messages
are effective only on individuals whose value systems make them predisposed to
suggestion. For example, someone who might be thinking about taking something
on a dare but who feels guilty about it might be susceptible to these messages, but
they will not sway, a professional thief or a kleptomaniac.
Activity 7
Give one example of the techniques used in India for creating subliminal
perception.
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4.7 SUMMARY
The unit is the initial unit of the block on individual influences on consumer behaviour
and focuses attention on the perception process. It defines perception as the process
of selecting, organizing and interpreting the stimuli to make a picture or a viewpoint.
Perception is a subjective view of the world. It is heavily dependent upon the process
of information processing and learning as explained in the unit 5 and unit 13 on
information processing. A detailed analysis is made of the stages in perception and
the subliminal perception, a controversial issue in consumer behaviour.

4.8 KEY WORDS

Differential threshold : The minimum amount of stimulation that can indicate
if there is a change in the input in a sensory channel.
Embeds : Tiny Figures that are inserted into the messages by
use of high-speed photography or airbrushing, with
an objective to influence sub-consciously. 85
Individual Influences on JND : The minimum change between two stimuli that can be
Buying Behaviour
detected by a receiver.

4.9 SELF-ASSESSMENT QUESTIONS

1. What is meant by consumer perception? How do you justify the relevance of
studying perceptions when they may not accurately reflect reality? Give an example
to illustrate your answer.
2. Illustrate the stages of perception with a real or imaginary example.
3. How does the sense of touch influence consumers’ reactions to products?
4. Discuss the differences between the absolute threshold and the differential
threshold. Which one is more important to marketers and why? Explain.
5. Why consumers process only a small amount of the information they receive?
Explain
6. What is meant by subliminal persuasion? What strategies are available to us in
this regard?
7. Does subliminal perception work? Why or why not?

4.10 PROJECT QUESTIONS

1) Select three ads that you like most and have understood them well. Now, show
these to your friend and ask what they think of them. Report if their perception
meets yours or not. Try to explain the variance or agreement in this respect.
2) Choose one of your favourite products that you have been buying for some
years. How has it changed over the years?

4.11 FURTHER READINGS

1. Engel, J.E., R.D. Blackwell & P.W. Miniard (1994): “Consumer Behaviour”
5th ed., The Dryden Press.
2. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
3. Mower, J.C. (1987): ‘“Consumer Behaviour”, McMillan Publishing Co.
4. Runyon, K.E. & D.E. Steward. (1987): “Consumer Behaviour” 3rd ed., Merill
Publishing Co.
5. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
6. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
https://lifestyle.livemint.com/news/big-story/can-india-s-500-million-fragrance-market-
survive-the-pandemic-111603335690742.html
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 Perceptions
UNIT 5 LEARNING AND MEMORY
Learning outcomes
After going through this unit, you should be able to
 explain how learning differs from other forms of communication
 describe what shapes the learning styles.
 discuss how consumers retrieve or recall information or how the memory
work
 apply the knowledge of key principles that can be remembered and used
by us in your marketing decisions.
Structure
5.1 Introduction
5.2 Concept of Learning
5.3 Theories of Learning
5.4 The Two Complex Issues of Learning
5.5 Memory: Structure and Functioning
5.6 Retrieving Information
5.7 Measuring Memory for Advertising
5.8 Marketing Applications
5.9 Summary
5.10 Key Words
5.11 Self-Assessment Questions
5.12 Project Questions
5.13 Further Readings
The use of the term avatar for the on-screen representation of the user was
coined by Richard Garriott for the computer game Ultima IV: Quest of the
Avatar. Now a days, avatars are common in web forums. Users of online
discussion forums are usually required to register and provide information about
themselves. For example, in online communities, such as Second Life and The
Sims Online. Once a user has created an avatar, he or she becomes part of
an online community filled with other users’ avatars. Players can interact with
other avatars and talk to them using text or voice chat. So, what exactly does
this imply for marketers? many things. Avatars interact with real brands in
these virtual worlds. They can purchase products such as t shirt for their avatars,
and they can attend events such as conferences or shows. Marketers have
realised that how the people’s virtual behaviour influences the way they learn
about brands. Avatars are used in many corporate websites to interact with
visitors, to greet and guide them. According to research, these avatars may
improve user satisfaction and influence purchases. All such presentations show
the application of learning theories and constructs in an imagined reality that
is strongly influenced by what we know of learning behaviour.
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Individual Influences on
Buying Behaviour 5.1 INTRODUCTION
The key difference between a human being and an animal is the ability of the former
to make a systematic and applied learnt response. Thus, most of our behaviour is
consistent as well as cognitive even though the stimuli or the circumstances differ.
We can vary our responses even to the same situations or same response to different
situations. All this happens because the human beings acquire new experiences as
well inputs and tend to replace the instinctive behaviour - a characteristic of animal
behaviour, with these inputs.Thus, even though there is a new advertisement or a
new product, of which we may have no prior exposure, we know how to deal
with it. We can also recall our own experience or happenings though the use of the
memory to shape our behaviour.
Learning and memory are very powerful tools for seeking behaviour modification.

5.2 CONCEPT OF LEARNING

Learning refers to a relatively permanent change in behaviour that is caused by
experience. A more detailed definition of learning is when it is viewed “as a process
in which behavioural capabilities are changed as result of experience provided the
change cannot be accounted for by native response tendencies, maturation or any
temporary states of the organism due to fatigue, drugs, or any other temporary factors”
The key words of the definition are: process; behavioural capabilities; and an enduring
change. Thus, learning is not an act, it is not the behaviour but the capability to
behave and the permanency of the change through the experience.
This experience does not have to acquired directly by the learner. He can learn
vicariously too - by observing events that affect others. He also learns even when
he is not trying. Consumers recognize many brand names and can hum many product
jingles, for example, even for those product categories they themselves do not use.
This casual, unintentional acquisition of knowledge is known as incidental learning.
Like the concepts of perception discussed in the last unit, learning is a process.
Our knowledge about the world, is constantly being revised as we are exposed to
new stimuli and receive ongoing feedback that allows us to modify behaviour in
other similar situations.
Another interesting fact about the learning is that it covers a lot of ground, ranging
from a consumer’s simple association between a stimulus such as a product logo
(e.g., Amul) and a response (e.g., “Taste of India”) to a complex series of cognitive
activities (e.g., using the washing machine).
Activity 1
Define learning of new skills like driving in your own words. Which of the types
of learning it conforms to?
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 Learning and Memory
5.3 THEORIES OF LEARNING
Psychologists offer several theories to explain the learning process. These theories
range from those focusing on simple stimulus-response connections to perspectives
that regard consumers as complex problem solvers who learn abstract rules
and concepts by observing others or observing phenomena that unfold before
them.

5.3.1 Classical Conditioning

Classical conditioning occurs when a stimulus that elicits a response, is paired with
another stimulus that initially does not elicit a response on its own. Over time, this
second stimulus causes a similar response because it is associated with the first
stimulus. This phenomenon was first demonstrated in dogs by Ivan Pavlov, a Russian
physiologist doing research on digestion in animals. Pavlov conducted a number of
conditioning trials by pairing a neutral stimulus (a bell) with a stimulus known to
cause a salivation response in dogs (he squirted dried meat powder into their mouths).
The powder was an unconditioned stimulus (UCS) because it was naturally capable
of causing the response. Overtime, the bell became a conditioned stimulus (CS). It
did not initially cause salivation, but the dogs learned to associate the bell with the
meat powder and began to salivate at the sound of the bell only. The drooling of
these canine consumers over a bell sound, now linked to feeding time, was a
conditioned response (CR).
Classical conditioning can have similar effects for more complex reactions, too. Even
a credit card becomes a conditioned cue that triggers greater spending, especially
since it is a stimulus that is present only in situations where consumers are spending
money. People learn they can make larger purchases when using credit cards, and
they also have been found to leave larger tips than when using cash.

Activity 2
Describe an ad that is based on learning through classical conditioning.
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The following are some very important principles of classical conditioning of great
use to a marketer.
a) Repetition: Conditioning effects are more likely to occur after the
conditioned stimuli have been paired a number of times. Repeated exposures
increase the strength of stimulus-response associations and prevent the decay
of these associations in memory.
Many classic advertising campaigns consist of product slogans that have been repeated
so many times that they are etched in consumers’ minds (remember the “two minutes
Noodles”!) Conditioning will not occur or will take longer if the conditioned stimulus
is only occasionally presented with the unconditioned stimulus. One result of this 89
Individual Influences on lack of association may be extinction, which occurs when the effects of prior
Buying Behaviour
conditioning are reduced and finally disappear.
b) Stimulus Generalization: Stimulus generalization refers to the tendency
of stimuli to a CS to evoke similar, conditioned responses. For example,
Pavlov noticed in subsequent studies that his dogs would sometimes salivate
when they heard noises that only resembled a bell (e.g., keys jangling).
People react to other, similar stimuli in much the same way they responded
to the original stimulus. Marketers use this concept to create and sell “me
too” type of products with similar sounding names or package colouring,
very close to the market leader.
c) Stimulus Discrimination: Stimulus discrimination occurs when a stimulus
similar to a CS is not followed by a UCS. When this happens, reactions
are weakened and will soon disappear. Part of the learning process involves
making a response to some stimuli but not to other, similar stimuli.
Manufacturers of well-established brands commonly urge consumers not
to buy “cheap imitations”, because the results will not be what they expect
even seeking to provide cues to distinguish the original brand from cheap
copies.

5.3.2 Operant Conditioning

Operant conditioning, also known as instrumental conditioning, occurs as the individual
learns to perform behaviours that produce positive outcomes and to avoid those
that yield negative outcomes. This learning process is most closely associated with
the psychologist B.F. Skinner, who demonstrated the effects of instrumental
conditioning by teaching animals to dance, play ping-pong, and so on by systematically
rewarding them for desired behaviours.
While responses in classical conditioning are involuntary and fairly simple, those in
instrumental conditioning are made deliberately to obtain a goal and may be more
complex. The desired behaviour may be learned over a period of time, as intermediate
actions are rewarded in a process called shaping. For example, the owner of a
new store may award prizes to shoppers just for coming in, hoping that over time
they will continue to drop in and eventually buy something. A good way to remember
the difference is to keep in mind that in instrumental learning, the response is performed
because it is instrumental to gaining a reward or avoiding a punishment. Consumers
over time come to associate with people that reward them and to choose products
that make them feel good or satisfy some need.
Instrumental learning occurs in one of the following ways. When the environment
provides positive reinforcement in the form of a reward, the response is strengthened,
and appropriate behaviour is learned. For example, a woman who gets compliments
after wearing a particular brand of perfume, will learn that using this product has
the desired effect, and she will be more likely to keep buying the product. Negative
reinforcement also strengthens responses so that appropriate behaviour is learned.
A foot-wear manufacturer ran an ad showing a woman in embarrassment as her
slipper broke off in the middle of the market. The message is that she could have
avoided this negative outcome if only she had used the manufactures brand of
footwear.
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 Learning and Memory
Activity 3
Describe an ad that is based on instrumental type of learning. Also explain the
way in which learning is shown to occur
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The instrumental learning is based on several outcomes. Figure 5.1 exhibits the four
types of learning outcomes. An important factor in operant conditioning is the issue
of appropriate reinforcements. The answer to the question-what is the most effective
reinforcement schedule, is important to marketers because it relates to the amount
of effort and resources, they must devote to rewarding consumers in order to condition
desired behaviours. The following reinforcement schedules normally are suggested
in the literature:
a) Fixed-interval reinforcement: After a specified time period has passed,
the first response that is made brings the reward. Under such conditions,
people tend to respond slowly right after being reinforced, but their responses
speed up as the time for the next reinforcement looms.

Figure 5.1 : Four Types of Learning Outcomes

b) Variable-interval reinforcement: Here the time that must pass before

reinforcement is delivered is allowed to vary. The attempt is expected to
bring an element of surprise as well as an air of expectancy.
91
Individual Influences on c) Fixed-ratio reinforcement: As against the above, here the reinforcement
Buying Behaviour
occurs in a fixed ratio.
d) Variable-ratio reinforcement: The behaviour is reinforced after a certain
number of responses, but the consumer does not know how many responses
are required. People in such situations tend to respond at very high and
steady rates, and this type of behaviour is very difficult to extinguish.

Activity 4
Suggest which of the two schedules - the fixed ratio or the variable ratio
reinforcement schedule will be suitable for advertising opening of a new
departmental store. State your assumptions also.
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5.3.3 Cognitive Learning Theory

Cognitive learning explains learning as a result of mental processes. In contrast to
behavioural theories of learning, cognitive learning theory stresses the importance
of internal mental processes. This perspective views people as problem solvers who
actively use information from the world around them to master their environment.
Supporters of this viewpoint also stress the role of creativity and insight during the
learning process. The cognitive theory explanations of learning are strongly based
on memory, memory processes as described later:

Activity 5
Describe one of your own learning experiences that is based on cognitive
learning.
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5.4 THE TWO COMPLEX ISSUES OF LEARNING

5.4.1 The Issue of Consciousness
A lot of controversy surrounds the issue of whether or when people are aware of
their learning processes. While behavioural learning theorists emphasize the routine,
automatic nature of conditioning, proponents of cognitive learning argue that even
these simple effects are based on cognitive factors. On the other hand, there is
some evidence for the existence of non-conscious procedural knowledge. People
92 apparently do process at least some information in an automatic, passive way, which
is a condition that has been termed mindlessness. When we meet someone new or Learning and Memory
encounter a new product, for example, we have a tendency to respond to the stimulus
in terms of existing categories, rather than taking the trouble to formulate different
ones. Our reactions are activated by a trigger feature, some stimulus that cues us
toward a particular pattern. For example, the presence of a doctor in a message
about the tooth paste, prompted the consumers to rate the product superior although
none of them ever consulted a dentist before they bought their tooth paste.
Nonetheless, many modem theorists are beginning to regard some instances of
conditioning as cognitive processes, especially where expectations are formed about
the linkages between stimuli and responses. Indeed, studies using masking effects,
where it is difficult for subjects to learn CS/ UCS associations; show substantial
reductions in conditioning. For example, an adolescent girl may observe that women
on television and in real life seem to be rewarded with compliments and attention
when they smell nice and wear alluring clothing. She figures out that the probability
of these rewards occurring is greater when she wears perfume, and deliberately
wears a popular scent to obtain the payoff of social acceptance.

5.4.2 Observational Learning

Observational learning occurs when people watch the actions of others and note
the reinforcements they receive for their behaviours. This type of learning is a complex
process. People store these observations in memory as they accumulate knowledge,
perhaps using this information at a later point to guide their own behaviour. This
process of imitating the behaviour of others is called modelling. For example, a
‘woman shopping for a new kind of perfume may remember the reaction her friend
received upon wearing a certain brand several months earlier, and she will base
her, behaviour on her friend’s actions.
In order for observational learning in the form of modelling to occur, four conditions
must be met. These factors are summarized in Figure 5.2.

Figure 5.2 Components of Observational Learning

a) The consumer’s attention must be directed to the appropriate model, who

for reasons of attractiveness, competence, status, or similarity is desirable
to emulate.
b) The consumer must remember what is said or done by the model.
c) The consumer must convert this information into actions.
d) The consumer must be motivated to perform these actions. 93
Individual Influences on
Buying Behaviour Activity 6
Explain in your words the operation and the value of the Figure 5.2. in explaining
observational learning.Also, narrate your own example of recent observational
learning.
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5.5 MEMORY: STRUCTURE AND FUNCTIONING

Memory involves a process of acquiring information and storing it over time so that
it will be available when needed. Contemporary approaches to the study of memory
employ an information-processing approach. They assume that the mind is in some
ways like a computer, data are input, processed, and output for later use in revised
form. In the encoding stage, information is entered in a way the system will recognize.
In the storage stage, this knowledge is integrated with what is already in memory
and “warehoused” until needed. During retrieval, the person accesses the desired
information. The memory process is summarized in Figure 5.3.

Figure 5.3 The Memory Process

According to the information-processing approach, there are three distinct memory

systems: sensory memory, short-term memory (STM), and long-term memory (LTM).
Each plays a role in processing brand-related information. The interrelationships of
these memory systems are summarized in Figure 5.4.
a) The Sensory memory permits storage of the information we receive from
our senses. This storage is very temporary; it lasts a couple of seconds at
most. For example, a person might be walking past a pastry shop and get
a quick, enticing whiff of something baking inside. While this sensation would
only last for a few seconds, it would be sufficient to allow the person to
determine if he or she should investigate further. If the information is retained
for further processing, it passes through an attentional gate and is transferred
to short-term memory.
b) Short-term memory also stores information for a limited period of time,
and its capacity is limited. Similar to a computer, this system can be regarded
as working memory; it holds the information we are currently processing.
Verbal input may be stored acoustically (in terms of how it sounds) or
semantically (in terms of its meaning). The information is stored by combining
small pieces into larger ones in a process known as “chunking.” A chunk
94
 is a configuration that is familiar to the person and can be manipulated as Learning and Memory
a unit. For example, a brand name can be a chunk that summarizes a great
deal of detailed information about the brand.
c) Long-term memory is the system that allows us to retain information for
a long period of time. In order for information to enter into long-term memory
from short-term memory, elaborate rehearsal is required. This process
involves thinking about the meaning of a stimulus and relating it to other
information already in memory. Marketers sometimes assist in the process
by devising catchy slogans or jingles that consumer repeat on their own.
Remember the catchy tune of Amul Doodh Peeta hai India, or the long
uses slogan of tandarusti ki raksha karta hai Lifebuoy and you will be able
to appreciate the role of repetition in reinforcing consumer memory.

Figure 5.4 : Relationships among Memory Systems

Activity 7
Explain in your words the operation and the value of the Figure 5.4.
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5.6 RETRIEVING INFORMATION

Retrieval is the process whereby information is accessed or retrieved from long-
term memory. People have a vast quantity of information stored in their heads that
is not necessarily available on demand. Although most of the information entered
in long-term memory does not go away, it may be hard or impossible to retrieve
unless the appropriate cues are present.
a) Factors Influencing Retrieval. Some differences in retrieval ability are
physiological. Older adults consistently display inferior recall ability for current
95
Individual Influences on items such as prescription information, though events that happened to them
Buying Behaviour
why they were younger may be recalled with great clarity. Other factors
are situational, relating to the environment in which the message is delivered.
Not surprisingly recall is enhanced when the consumer pays more attention
to the message in the first place. Some evidence indicates that information
about a pioneering brand (the first brand to enter a market) is more easily
retrieved from memory than follower brands because the product’s
introduction is likely to be distinctive and, for the time being, no competitors
divert the consumer’s attention. In addition, descriptive brand names are
more likely to be recalled than are those that do not provide adequate cues
as to what the product is.
b) State-Dependent Retrieval. In a process termed state-dependent
retrieval, people are better able to access information if their internal state
is the same at the time of recall as when the information was learned. This
phenomenon is called the mood congruence effect. The fact underscores
the desirability of matching a consumer’s mood at the time of purchase
when planning exposure to marketing communications. A consumer is more
likely to recall an ad, for example, if his or her mood or level of arousal at
the time of exposure is similar to that in the purchase environment. By
recreating the cues that were present when the information was first
presented, recall can be enhanced. For example, Parle G uses a picture
of a cute little girl on its packaging as well as the advertisement. It intends
to facilitate recall of brand claims and favourable brand evaluations.
c) Familiarity. As a general rule, prior familiarity with an item enhances its
recall. Indeed, this is one of the basic goals of marketers who are trying
to create and maintain awareness of their products. The more experience
a consumer has with a product, the better use he or she is able to make
of product information. However, there is a possible exception to the rule.
Evidence indicates that extreme familiarity can result in inferior learning and/
or recall. When consumers are highly familiar with a brand or an
advertisement, they may attend to fewer attributes because they do not
believe that any additional effort will yield a gain in knowledge. For example,
when consumers are exposed to the technique of radio replay, where the
audio track from a television ad is replayed on the radio, they do very
little critical, evaluative processing and instead mentally replay the video
portion of the ad.
d) Salience. The salience of a brand refers to its prominence or level of
activation in memory. Stimuli that stand out in contrast to their environment
are more likely to command attention, which in turn, increases the likelihood
they will be recalled. Almost any technique that increases the novelty of a
stimulus also improves recall (a result known as the von Restorff effect).
This effect explains why unusual advertising or distinctive packaging tend
to facilitate brand recall.
e) Pictorial versus Verbal Cues. There is some evidence for the superiority
of visual memory over verbal memory, but this advantage is unclear because
it is more difficult to measure recall of pictures. However, the available
data indicate that information presented in picture form is more likely to
96 be recognized later. Certainly, visual aspects of an ad are more likely to
 grab a consumer’s attention. In fact, eye-movement studies indicate that Learning and Memory
about 90 per cent of viewers look at the dominant picture in an ad before
they bother to view the copy. One study found that television news items
presented with illustration (still pictures) as a backdrop result in improved
recall for details of the new story, even though understanding of the story’s
content does not improve.
Activity 8
Can you think of any more factors that in your view, assist the retrieval of
information from the memory? Use your experience of trying to recall information
that you are sure you have read or heard about and are trying to retrieve now.
Think about what factors played a role when the recall was easily made.
Comment upon them if your experience suggests factors other than those shared
above.
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5.7 MEASURING MEMORY FOR ADVERTISING

Because advertisers pay so much money to place their messages in front of consumers,
they are naturally concerned that people will actually remember these messages at
a later point. It seems that they have good reason to be concerned. In one study,
less than 40 per cent of television viewers made positive links between commercial
messages and the corresponding products, only 65 per cent noticed the brand name
in a commercial, and only 38 per cent recognized a connection to an important
point. Even more sadly, only 7 per cent of television viewers can recall the product
or company featured in the most recent television commercial they watched. This
figure represents less than half the recall rate recorded in 1965, and may be attributed
to such factors as the increase of 30- and 15-second commercials and the practice
of airing television commercials in clusters rather than in single-sponsor programs.
However, in case of online marketing messages, research done by Google found
that recall improves when spots reappear before YouTube videos. Similar results
were also reported by Apple for “iAds,” mobile ads that pop up on iPhones and
iPods.

5.7.1 Recognition versus Recall

One indicator of good advertising is, of course, the impression it makes on consumers.
But how can this impact be defined and measured? Two basic measures of impact
are recognition and recall. In the typical recognition test, subjects are shown ads
one at a time and asked if they have seen them before. In contrast, free recall tests
ask consumers to independently produce previously acquired information and then
perform a recognition check on it. Under some conditions, these two memory measures
tend to yield the same results, especially when the researchers try to keep the viewers’
interest in the ads constant. Generally, though, recognition scores tend to be more
reliable and do not decay over time the way recall scores do. Recognition scores 97
Individual Influences on are almost always better than recall scores because recognition is a simpler process
Buying Behaviour
and more retrieval cues are available to the consumer.
Both types of retrieval play important roles in purchase decisions. Recall tests tend
to be more important in situations where consumers do not have product data at
their disposal, and so they must rely upon memory to generate this information.
On the other hand, recognition is more likely to be an important factor in a store,
where consumers are confronted with thousands of product options and information
(i.e., external memory is abundantly available) and the task may simply be to recognize
a familiar package. For example, the Maharajah of the Air India icon was quickly
recognized by the consumers. However, recent research shows that technology aided
instant information retrieval or checking through internet search has weakened the
consumer tendency to rely on memory recall. A simple example is also recall of
telephone numbers- our dependence and ease of using contact lists on our phones
has eroded the tendency to recall familiar phone numbers

5.7.2 Problems with Memory Measures

While the measurement of an ad’s memorability is important, the ability of existing
measures to accurately assess these dimensions has been criticized for several reasons.
a) Response Biases. Results obtained from a measuring instrument are not
necessarily due to what is being measured, but rather to something else
about the instrument or the respondent. This form of contamination is called
a response bias. For example, people tend to give yes responses to questions,
regardless of what is asked. In addition, consumers often have an eagerness
to be “good subjects” by pleasing the experimenter. They will try to give
the responses they think he or she is looking for. In some studies, the claimed
recognition of bogus ads (ads that have not been seen before) is almost
as high as the recognition rate of real ads.
b) Memory Lapses. Typical problems include omitting (leaving facts out),
averaging (the tendency to “normalize” things and not report extreme cases),
and telescoping (inaccurate recall of time). These distortions call into question
the accuracy of various product usage data bases that rely upon consumers
to recall their purchase and consumption of food and household items. In
one study, for example, people were asked to describe what portion of
various foods-small, medium, or large they ate in a normal meal. However,
different definitions of “medium” were used (e.g., 3/4 cup versus 1'/s cup).
Regardless of the measurement used, about the same number of people
claimed they normally ate medium portions.
c) Memory versus Feeling. Although techniques are being developed to
increase theaccuracy of memory scores, these improvements do not address
the more fundamental issue of whether recall is necessary for advertising
to have an effect. In particular, some critics argue that these measures do
not adequately, tap the impact of “feeling” ads where the objective is to
arouse strong emotions rather than to convey concrete product benefits.
Many ad campaigns, including those for Hallmark cards, Chevrolet, and
Pepsi use this approach. An effective strategy relies on a long-term build-
up of feeling rather than on a one-shot attempt to convince consumers to
buy the product.
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 Learning and Memory
Activity 9
Can you think of any more factors that in your view, assist the measuring the
memory for advertising?
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5.8 MARKETING APPLICATIONS

Understanding how consumers learn is very important to marketers. After all, many
strategic decisions are based on the assumption that consumers are continually
accumulating information about products and that people can be “taught” to prefer
some alternative over others. Also, that consumers use ads to reinforce their positive
product experiences and even use new information about an added ingredient or
improved safety feature to “edit” memory of earlier product experience.

5.8.1 Repetition
One advertising researcher argues that more than three exposures are wasted. The
first creates awareness of the product, the second demonstrates its relevance to
the consumer, and the third serves as a reminder of the product’s benefits. However,
even this bare-bones approach implies that repetition is needed to ensure that the
consumer is actually exposed to (and processes) the ad at least three times. Marketers
attempting to condition an association must ensure that the consumers they have
targeted will be exposed to the stimulus a sufficient number of times.
On the other hand, it is possible to have too much of a good thing: Consumers can
become so used to hearing or seeing a marketing stimulus that they no longer pay
attention to it. This problem, known as advertising wear out, can be alleviated by
varying the way in which the basic message is presented.

5.8.2 Conditioning Product Associations

Advertisements often pair a product with a positive stimulus to create a desirable
association. Various aspects of a marketing message, such as music, humour, or
imagery, can affect conditioning. In one study, for example, subjects who viewed a
slide of pens paired with either pleasant or unpleasant music were more likely to
later select the pen that appeared with pleasant music. The order in which the
conditioned stimulus and the unconditioned stimulus is presented can affect the
likelihood that learning will occur. Generally speaking, the conditioned stimulus should
be presented prior to the unconditioned stimulus. The technique of conditioning,
such showing a soft drink (the UCS) and then playing a jingle (the CS) is generally
not effective.
Because sequential presentation is desirable for conditioning to occur, classical
conditioning is not very effective in static situations, such as in magazine ads, where
99
Individual Influences on (in contrast to TV, radio, or digital media) the marketer cannot control the order in
Buying Behaviour
which the CS and the UCS are perceived.
Just as product associations can be formed, they can extinguish. Because of the
danger of extinction, a classical conditioning strategy may not be as effective for
products that are frequently encountered, since there is no guarantee, they will be
accompanied by the CS. A bottle of soft drink paired with the refreshing sound of
a carbonated beverage being poured over ice may seem like a good example of
conditioning. Unfortunately, the product would also be seen in many other contexts
where this sound was absent, reducing the effectiveness of the conditioning.
By the same reasoning, a novel tune should be chosen over a popular one to pair
with a product, since the popular song might also be heard in many situations where
the product is not present. Music videos in particular may serve as effective UCSs
because they often have an emotional impact on viewers, and this effect may transfer
to ads accompanying the video.

5.8.3 Stimulus Generalization

The process of stimulus generalization is often central to branding and packaging
decisions that attempt to capitalize on consumers’ positive associations with an
existing brand or company name. In one twenty-month period, Proctor & Gamble
introduced almost ninety new products. Not a single one carried a new brand
name. In fact, roughly 80 per cent of all new products are actually extensions of
existing brands or product lines. Strategies based on stimulus generalization include
the following.
a) Family branding, where a variety of products capitalize on the reputation
of a company name. Companies such as Tata rely on their positive corporate
images to sell different product lines.
b) Product line extensions, where related products are added to an
established brand. Tata salt, Tata Black Salt, Tata Rock salt, Tata Sampanna
spices etc. under the same brand name.
c) Licensing, where well-known names are “rented” by others. This strategy
isincreasing in popularity as marketers try to link their products and
services with well- established figures. The Disney Characters and the
companies as diverse as McDonald’s have authorized the use of their
names on products.
d) Look-alike packaging, where distinctive packaging designs create strong
associations with a particular brand. This linkage often is exploited by makers
of generic or private-label brands who wish to communicate a quality image
by putting their products in very similar packages.
e) Reinforcement of Consumption. Marketers have many ways to reinforce
consumers, ranging from a simple thank you after a purchase to substantial
rebates and follow-up phone calls or email messages. For example, a life
insurance company obtained a much higher rate of policy renewal among
a group of new customers who received a thank you letter after each payment
compared to a control group that did not receive any reinforcement.

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 Learning and Memory
5.9 SUMMARY
Learning is a relatively permanent change in behaviour that is caused by experience.
Learning can occur through simple associations between a stimulus and a response,
or via a complex series of cognitive activities. Behavioural learning theories assume
that learning occurs as a result of responses to external events. Classical conditioning
occurs when a stimulus that naturally elicits a response (an unconditioned stimulus)
is paired with another stimulus that does not initially elicit this response. Over time,
the second stimulus (the conditioned stimulus) comes to elicit the response as well.
Operant or instrumental conditioning occurs as the person learns to perform behaviours
that produce positive outcomes and avoid those that result in negative outcomes.
While classical conditioning involves the pairing of two stimuli, instrumental learning
occurs when reinforcement is delivered following a response to a stimulus. Cognitive
learning occurs as the result of mental processes. Observational learning takes place
when the consumer performs behaviour as a result of seeing someone else performing
it and being rewarded for it. Memory refers to the storage of learned information.
The way information is encoded when it is perceived determines how it will be stored
in memory. The memory systems comprising of sensory memory, short-term memory,
and long-term memory each play a role in retaining and processing information from
the outside world.

5.10 KEY WORDS

Classical conditioning : The learning that occurs when stimulus eliciting
a response is paired with another stimulus that
initially does not elicit as response on its own, but
will cause a response over time since it is
associated with the first stimulus.
Cognitive learning : The learning that occurs as a result of internal
mental processes.
Extinction : The process whereby a learned connection
between a stimulus and response is eroded.
Long-term memory : The system that allows us to retain information
for a longer time.
Operant conditioning : The process by which consumer learn to use the
behaviour that produces positive outcomes.

5.11 SELF-ASSESSMENT QUESTIONS

1) Define learning from the marketing point of view? What are the essential features
of classical learning approach?
2) Distinguish between the instrumental learning and the classical learningapproaches.
Which of the two is more complete and why? Under what marketing situations
would you seek to apply each and why?

101
Individual Influences on 3) Would you call the cognitive theory of learning as the information processing
Buying Behaviour
approach for human learning? Why, in spite of its merit, the theory loses out
to the other theories in advertising world?
4) What factors are the most important in terms of retrieving information? How
would you as a marketer apply your knowledge of such factors?
5) Should marketers work at theaddressing short-term memory or the long-term
memory? How are the two are related?
6) How do different types of reinforcement enhance learning? How does the strategy
of frequency marketing relate to conditioning?
7) Describe in learning terms the conditions under which family branding is a good
policy and those under which it is not.

5.12 PROJECT QUESTIONS

1. Create an ad copy on any hypothetical product. Show the copy to a group of
five friends thrice in a week. While to another group of friends, show the copy
thrice in one day. After the week is over, ask them about the copy you had
shown. Report what is the difference in terms of recalling the information from
the advertisement.
2. Recall jingles and tunes used by brands in commercials? Is there something
specific that triggers recall? Are they original jingles or tunes or are they
“borrowed”?

5.13 FURTHER READINGS

1. Engel, J.E., R.D. Blackwell & P.W. Miniard (1994): “Consumer Behaviour”
5th ed. The Dryden Press.
2. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
3. Mower, J.C. (1987): “Consumer Behaviour” MacMillan Publishing Co.
4. Runyon, K.E. & D.E. Steward. (1987): “Consumer Behaviour” 3rd ed., Merill
Publishing Co.
5. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
6. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.

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 Learning and Memory
UNIT 6 ATTITUDE AND ATTITUDE CHANGE
Learning outcomes

After going through this unit, you should be able to:

 explain the conceptualization and formation of consumer attitude

 describe the linkage among the Consumer Beliefs, Attitude and purchase
intentions

 identify the problems and the value of measuring Attitude and their managerial
implications

 apply the knowledge of Attitude and attitude change in your marketing

decisions

 distinguish between the various models of attitudes and their application

Structure

6.1 Introduction
6.2 Attitude and Consumer Decision-Making
6.3 The Constituents of Consumer Attitude
6.4 The Functions of Consumer Attitude
6.5 Consumer Attitude: The Models
6.6 The Marketing Response to the Consumer Attitude
6.7 Summary
6.8 Key Words
6.9 Self-Assessment Questions
6.10 Project Questions
6.11 Further Readings
Internet and technology innovations have transformed many business models.
E-commerce is one of such innovations that have revolutionised the business
operations and facilitated the online marketing. Technology adoption and
change in lifestyle of consumers have paved the way for online shopping.
Certainly, the Covid 19 pandemic and the lockdown that disabled physical
and face to face economic activity, accelerated the adoption of online buying
across the world and India was no exception. The interesting thing to note
however, is that once the lockdown restrictions eased away, a large percentage
of consumers report an irreversible change in their buying habits as during
this gap of over one year, a large number of them got used to the convenience
of shopping from the convenience of their homes or offices on an anytime anyone
basis. The vastly improved online shopping platforms, stable and reliable
payment options, and improve logistic efficiencies have further added to the
consumer convenience and improved experience.
What does it involve by way of attitude and attitude change? 103
Individual Influences on
Buying Behaviour 6.1 INTRODUCTION
To a lay person, consumer attitude should represent as the summary statement of
his assessment about anything. Thus, a consumer may have a negative attitude for
the products made in Korea. What it means is, that the consumer has assessed the
products of the country and found them to be of not very high quality. This is what
a consumer attitude represents.
Theoretically speaking, attitude is “learned predisposition to respond in a consistently
favourable and unfavourable manner with respect to a given stimuli”
Another way of describing attitude is that it is a “relatively enduring organization of
inter-related beliefs that describe, evaluate, and advocate action with respect to an
object or a situation.”
Several characteristics of attitude are evident from these two descriptions. The first
is that attitude is ‘not a transient feeling’ but represents an enduring feeling or enduring
evaluation. Secondly, it derives its genesis and strength from a variety of sources
of information including perception and experience. Thirdly, it signals about the likely
course of action by the consumer and fourth that an attitude is the product of learning
and is not something inherited or inborn
Attitude is also used as a replacement term for describing ‘belief system’ of a person.
Activity 1
Define attitude in your own words. What characteristics appear to be most
important while dealing with the attitude towards say, Smartphones in India.
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6.2 ATTITUDE AND CONSUMER DECISION

MAKING
In everyday life, consumers receive a variety of marketing communications about
what they should buy and they should not. They come to know about different claims
and standing of the brands. On the basis of inputs received from various sources,
consumers develop their assessment of the brands, better known as the brand-image.
The brand image helps consumers in believing which brand is more likely to have
a particular benefit or a feature (technically known as the product attribute). It should
be noted here that since these brand beliefs are based on consumer perception,
they may sometimes be at variance with reality. Thus, a potential car buyer may
believe that the brand A of car has style but it may not be actually true about the
brand A. In a similar vein, a potential lipstick buyer may believe that the brand B
of the lipstick has the attribute of social prestige. In reality, it may not be so. Thus,
consumer attitudes are based on the what they know or believe about a given object
whether this knowledge is true or otherwise. But they provide a very important
104 clue as to whether the consumers will take a particular course of action or not.
Thus, a person after having been bombarded by a string of digital media ads on Attitude and Attitude
Change
various Smart TV brands available in India, may suddenly observe: “Oh, the TV
ads! I can’t stand them anymore!”
Similarly, a typical housewife may have this to say to her husband, after having viewed
the Sunday morning transmission: “You know something, the TV ads are so fascinating
that they have taught a lot to our children in making brand choices for grocery”.
These two statements express a summary evaluation of a marketing stimulus i.e.,
promotional methods, and indicate how these will play out in case of consumers
who were asked to respond. Thus, the first consumer will probably zap the TV
commercials or skip them. The housewife may regulate the viewing hours of the
television for the children.
Activity 2
In view of the above discussion explain the following consumer behaviour:
a) Some consumers shop in a wide variety of stores while others restrict
themselves to a few known stores.
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...........................................................................................................

b) Some products are purchased after extensive searching. Others are bought
at a moment’s notice.
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c) Two people are exposed to the same ad - one notices and processes the
ad; and forms a favourable impression of the product while the other is
unaware of its existence.
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6.3 THE CONSTITUENTS OF CONSUMER

ATTITUDE
In the subsequent block 3, we will deal with the major variables that a buyer would
face during information search for the purpose of evaluating and reaching a choice.
One of the variables that would guide the customer in the process, is the consumer
attitude. Since an attitude provides a series of cues to marketers with reference to
evaluation procedure, an understanding of consumer attitude can help marketers
predict future purchases; and gauge the strength or otherwise of their its present
sales. Even they redesign their marketing mix efforts. 105
Individual Influences on Attitude, as a concept, however, is far from simple. An attitude consists of three
Buying Behaviour
constituents. These are affective; cognitive and conative. Affective part of the attitude
refers to the feelings that a consumer has about a given object. The cognitive part
refers to the information and knowledge basis of these consumers about that object.
The third and final part of the attitude - the conative, refers to the intention of the
customer in relation to the object.
A schematic conception of attitudes is attempted in Figure 6.1.

Figure 6.1 : Schematic Conception of Attitudes

The Figure 6.1 can be amplified by a hypothetical example of the attitude formation
in respect of an individual as well as an institutional buyer. For instance, assume
that a research study reveals that Indian females have a favourable attitude towards
Samsung brand of Smartphones. Similarly, assume that TATA Steel too has indicated
its favourable attitude towards HCL desktop computers. In operational terms, these
findings summarize the knowledge of these buyers as to what Samsung Smartphone
and HCL desktop computers may possess. Secondly, they indicate how the female
buyers and the TATA Steel feel about these brands. Thirdly, they indicate the likely
action if these buyers are asked to go for these respective products, i.e., Samsung
Smartphone and HCL desktop computers.
To sum up, attitude indicates knowledge, feelings and likely action for the given
stimulus.
Activity 3
Elaborate the following statements in terms of the constituents of attitudes you
just studied.
a) “I hate fast food”
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106
 Attitude and Attitude
b) “I love fuel efficient cars” Change

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6.4 THE FUNCTIONS OF CONSUMER ATTITUDE

Notwithstanding the importance of consumer attitude, two serious criticisms have
been levelled against it. The foremost criticism is that it makes a rather naive
assumption that attitudes influence the specific and overt behaviour of consumer.
The real facts don’t support it so clearly. Yet, the functions of attitude are too important
to be left un-described. Consumer attitudes in their most rudimentary form, render
the following function as explained in figure 6.2.

Figure 6.2 : Functions of Attitude

6.4.1 The Utilitarian Function

Consumer attitudes fulfil a utilitarian function as they guide consumers in achieving
their desired needs. Thus, if the Smart TV buyers consider technology and after-
sales service support as the two most important criteria in Smart TV selection, the
buyers will be most attracted by the messages of those brand alternatives that claim
to possess the two attributes. Such attitudes towards these brands will help the
consumer achieve what he wants. Also, it will assist them in avoiding failure and
disappointment in brand evaluation.

6.4.2 The Ego Defensive Function

This function protects consumers against internal and external anxieties and
environment. Herein, the marketing stimuli and more particularly, product
characteristics become an instrument of the protection process. Many consumer
psychologists have led marketers to believe that a positiveconsumer attitude towards
expensive jeweller wrist watches and other visible prestige products serve as
mechanism of ego defence for these consumers. It should be cautioned here, however,
that expensive items alone do not constitute a mechanism of defence for consumers.
The low-priced products like mouthwash, deodorants too can serve the same
protection function from anxiety etc. as they secure the consumer against the
consequences of embarrassing oral or body odour. 107
Individual Influences on 6.4.3 The Value-Expressive Function
Buying Behaviour
Often consumer use their attitudes as an expression of their values and self-concept.
Value expressive function of attitudes enables consumers to maintain self-identity
and leads them to value expression and determination. The projection is often strong,
evident and extreme because consumers openly express opinions that reflect their
strong beliefs and self- concept. The application of this function is all too evident
in consumer selection and evaluation of products, their price, promotional items
and the distribution outlets, their spend save decisions and activities like home decor.
Thus, a consumer, in order to express his simple and Gandhian values in life, will
always prefer and wear handloom and Khadi, support products of the small-scale
industries and may have a negative attitude against conspicuous consumption and
their public endorsement by the commercial houses. Normally, there is a tendency
on the part of consumers to flaunt this kind of attitude through their consumption.
Activity 4
a) Evaluate the attitude of your friends regarding the use of the vacuum
cleaners. Categorize them in terms of the functions of attitudes just
described.
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...........................................................................................................
b) Suggest at least three ways in which the marketers can modify these attitudes.
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6.5 CONSUMER ATTITUDE MODELS

Model-making in attitudes have been attempted in a variety of ways. Most prominent
among them are the different multi-attribute attitude models. Given below is an account
of the same.

6.5.1 Multi-attribute Attitude Models

Multi-attribute attitude models explain how consumers may combine their beliefs
about product attributes to form their attitudes about various brand alternatives.
These models assume that the brand which receives the best attitude, will be chosen.
They further assume that consumers will go through the standard Hierarchy of Effects
sequence (i.e., Awareness - Interest - Desire - Action).
A careful scrutiny of all multi-attribute attitude models establishes two general categories
of these models. Category I comprises the models that emphasize the Attitude- Toward
— Objects. Hence, they are termed as ATO models. Category II consists of those
models that focus on predicting the behavioural intentions (BI) of consumers to perform
certain action. This action could be purchase or non-purchase. For brevity’s sake, it
108 is termed as BI Model. Figure 6.3 illustrates the point.
 Choice Models Attitude and Attitude
Change

The Attitude Toward Objects (ATO) Behavioural

models Intentions (BI)
Model

Figure 6.3 : Multi-attributes of Choice Models

A) The Attitude-Toward-Objects (ATO) Models

Although a variety of ATO models are found in consumer research; most of these
models seek information on the importance of brand attributes; beliefs about the
presence or absence of those attributes in the brand alternatives and information
on their combined effect in alternative evaluation. Fishbein’s model (1972) represents
this genre of models. Algebraically, the model is expressed as:

Table 6.1 explains a hypothetical multi-attitude evaluation of three brands of family

cars in India.
Table 6.1 Multi-attribute Evaluation
Attribute Weight Brand A Brand B (4) Brand C (5)
(1) (2) (3)

3.1 3.2 4.1 4.2 5.1 5.2

a B axB B aXB B aXB

Design 3 3 9 2 6 5 15

Low 2 3 6 2 4 2 4
Maintenance
Cost

Fuel Efficiency 1 3 3 3 3 5 5

18 13 24

Column 2 states the hypothetical ratings of importance of three attributes. The three
rows show the attributes that are important criteria of evaluation.The consumers’
belief on these attributes is shared under each brand column. The product of the
weightage and the beliefs (b) have been rated in columns 3.2, 4.2 and 5.2. The
minimum 1 and maximum 5 indicate the unlikelihood or likelihood of that attributes
to be possessed by the given brand alternatives of the cars, respectively. 109
Individual Influences on A further examination the table will reveal that Brand A has been rated as an
Buying Behaviour
average car. In contrast Brand C is rated higher on attributes like low maintenance
cost and styling. Finally, Brand B car emerges as the worst car of the lot.
Following this, a consumer will have formed the most positive attitude toward
Brand C.

Activity 5
Visit a leading refrigerator shop of your town and interview one or two buyers
about their attitude towards these major brands of 165 litre refrigerator. Use
an ATO model for analyzing their information.
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....................................................................................................................

Criticisms: The ATO models, however, suffer from a major weakness. They fail
to consider that quite often, consumer attitude does not fully equate with behaviour.
Thus, a potential car buyer in spite of having the most positive attitude towards
‘Maruti’, may never engage in the behaviour of buying it. This could because of
the adverse opinion of otherimportant people or due to temptation of investing the
funds more profitably elsewhere. Situational influences may prevent him from engaging
in the act of buying. The Behaviour Intentions (BI) model attempts to rectify this
weaknessof the ATO.

Activity 6
Prepare a similar table for the Smart televisions, using three brands as the
alternative and four attributes as the criteria. You can choose the weights as
per your own understanding of the attributes affecting evaluation of this
product.
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....................................................................................................................

B) The Behaviour Intentions (BI) Model

The BI model is in effect, an extension of Fishbein’s ATO model. The model does
not attempt to predict behaviour per se but intentions to behave algebraically, the
model is as follows:
B=BI = W1 (AB) + W2 (SN)
Where
B = behaviour; BI = Behaviour Intention
AB = attitude toward performing the behaviour, SN = the subjective norm
W1 and W2, are empirically determined weights, through regression analysis.
110
AB and SN are obtained directly from consumers via questionnaires. Thus, AB is Attitude and Attitude
Change
obtained from the following equation:

The above equation has one major difference over the earlier Fishbein’s ATO Model.
It is that the BI Model assesses the person’s belief that performing a particular
behaviour will result in a particular consequence. This model therefore moves forward
from the belief regarding an attribute of an object to the intention of behaving towards
that object. They are termed as Subjective Norms (SN). The equation for obtaining
the subjective norms is as follows:

Where,
SN = subjective norm;
NBj= the normative belief that a reference group of persons j thinks that the consumer
should or should not perform the behaviour;
MCj = the motivation to comply with the influence of the referent j and
n = number of relevant reference groups of individuals.
This model therefore moves forward from the belief regarding an attribute of an
object to the intention of behavingtowards that object Various research studies have
found the BI model to be superior to the standard multi-attribute choice models,
though eye-brows have been raised concerning the calculation of the subjective norms
(SN). In practice, this exercise is never so simple.
Activity 7
Illustrate the above model of attitude by taking hypothetical values of the model
in buying Microwave oven. What difficulties do you encounter?
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6.6 THE MARKETING RESPONSE TO THE

CONSUMER ATTITUDE
After having made an analysis of attitude and its formation, and the models, the
questions that arise for marketers to consider are as follows: what are their
111
Individual Influences on marketing implications of understandingattitudes and what actions are useful in
Buying Behaviour
managing them?
A very significant implication arises from that attitudes are learned predispositions and
marketers understand that one of the major components of all attitudes is the cognitive
component formed on the basis of what the consumer ‘knows’ about the object .
Marketers therefore can appreciate that by changing the consumer learning about the
given object, attitudes can be changed. This is a very powerful proposition and can
create opportunities for marketers to contributes to the development of attitudes for
their new products and modify existing negative attitudes over a period of time by
correcting misinformation and developing credible new beliefs through learning. Table
6.2 outlines the areas in which such inferences and actions can be contemplated.

Specifically, marketers may choose one or a combination of steps to move consumers’

evaluation of brand alternatives in their favour. Marketers may, for the beginning,
modify their brand alternation in case they find the consumers ratings to be true
and genuine. Further, marketers may attempt to modify consumer ratings to be true
and genuine. Also, marketers may attempt to modify consumer beliefs about the
brand alternative through sharper communication along with other marketing efforts.
However, in case of competitive evaluation, marketer also attempt to alter consumer
beliefs about competitive brand alternatives vis-à-vis about theirs. It is done either
by running down the high-importance product attributes, on which competitive products
112
are better rated; or by deprecating their performance. A more positive route, open Attitude and Attitude
Change
to marketers, however, is by creating fresh brand attributes or by giving a new focus
on the neglected brand attributes. The same could be done even by manipulating
the ideal-product to bring it closer to the marketers’ own brand alternative.
To sum up, marketers have an unenviable task on their hands while consumers are
at the stage of brand evaluation. The acid test of marketing effectiveness in this
regard is whether consumers are led to the actual purchase action or not. The answer
in either way will pronounce judgment on the adequacy of marketing response.
Activity 8
Identify one example of each of the suggestions described above for influencing
consumer attitude. Also state how far have the marketers succeeded in their
attempts?
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6.7 SUMMARY
The unit began by picking up the threads of continuity from Unit 4 whereby consumer
perceptions were described and by building upon the concept of learning as we
describe attitudes in terms of learned predispositions. Consumer attitudes perform
a vital function in consumer choice as they affect consumer evaluation of alternatives.
The unit goes on to describe the various functions and components of attitudes.
The various models of attitudes have been discussed it enable you to get a clear
understanding of how attitudes are formed and how do they function in the consumer
decision-making process.
Based on all these inputs, the unit then discusses the implications of using the
knowledge of consumer attitudes in marketing decision making.

6.8 KEY WORDS

Product-Attribute Association : The relationship between the brands held
in consumers’ memory and the qualities or
attributes of a product.

Belief : The cognitive knowledge people have of the

relation among attributes, benefits and
objects.

Attribute-Object Belief : The consumer’s evaluation of the extent to

which a particular, object possesses a
particular attribute.

Attribute-Benefit Belief : The consumer’s evaluation of the extent to

which a particular attribute will result in a
particular benefit.
113
Individual Influences on Object-Benefit Belief : A belief that a product has certain
Buying Behaviour
attributes.

Hierarchy of Effect : Various models that explain the order in

which beliefs, feelings and behaviour affect
consumers.

Multi-attribute Models : The Models that identify how consumers

combine their beliefs about product attributes
and make choices among various brand
alternatives.

6.9 SELF-ASSESSMENT QUESTIONS

1. What is meant by consumer attitude? How do you justify the relevance of studying
attitudes when they may not accurately predict action? Give an example to
illustrate your answer.
2. Identify the kinds of information that a consumer may collect to form his or
her attitude. How can it help his brand evaluation later?
3. What is meant by multi-attribute attitude models? How do they get applied in
practice?
4. ABC company-a manufacturer of a simple, low priced and easy to handle Mobile
handset, wishes to market it in rural areas. What will you suggest by way of
modification of rural consumers’ attitude toward Mobile handsetsand their brand
evaluation?
5. We sometimes enhance our attitude toward a product after we buy it. How
does the theory of cognitive dissonance explain this change?

6.10 PROJECT QUESTIONS

1. Devise an attitude questionnaire to find out the consumer attitude toward any
of the following: (a) Mutual funds, (b) Designer home furniture,(c) Health foods,
(d) Electric cars

2. List as many attributes as you can in a Laptopcomputer for an executive that

you would like to see in a laptop.

3. Construct a multi-attribute model for a set of local restaurants in your city. Based
on your findings, suggest how restaurant owners could improve their
establishment’s image via the strategies described in this chapter.

6.11 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.

2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
114 Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth Attitude and Attitude
Change
edition, Pearson Education.
4. https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/
understanding-and-shaping-consumer-behavior-in-the-next-normal
“Understanding and shaping consumer behavior in the next normal “July 24,
2020.
5. https://www.researchgate.net/publication/264000611_Consumer_attitudes_and_
behaviorIcek Ajzen, Consumer attitudes and behaviour,

115
Individual Influences on
Buying Behaviour UNIT 7 PERSONALITY AND SELF -CONCEPT
Learning Outcomes
After going through this unit, you should be able to:
 explain how personality and self-concept affect consumer behaviour

 describe the various theories of personality and distinguish between them

 explain the various terms associated with self-concept

 explain how marketers respond to the significance of the personality and

self-concept
 discuss the marketing applications of both personality and self-concept.
Structure
7.1 Introduction
7.2 An overview of Personality: Its Nature & Their Application to Consumer
Behaviour
7.3 The Concept of Personality
7.4 Theories of Personality
7.5 The Psychoanalytic Theory of Freud
7.6 Social-Psychological or Neo-Freudian Theory
7.7 Trait Theory of Personality
7.8 The Theory of Self-concept
7.9 The Related Concepts
7.10 Consumption and Self-concept
7.11 Summary
7.12 Key Words
7.13 Self-Assessment Questions
7.14 Project Questions
7.15 Further Readings
Smart phones have revolutionized the mode of communication and became
our irreplaceable technology partner. It is all in one tool that has integrated
many devices and applications such as digital camera, music and video
players, a calendar, a calculator, a game console, online banking and
transactions etc. The Indian smartphone market revenue crossed $38 billion
in 2021, registering a growth of 27 per cent YoY. The major brands with
significant market share include Xiaomi, Samsung, Realme, Apple, Vivo,
Oppo, OnePlus, and others. However, establishing a brand personality is not
just about putting sales-driven content, it’s about innovating and educating
your audience as well as exhibiting your personality to stand out in the minds
of your customers. Brands, like people, develop real-life personas over time.
116 For example, the Apple brand personality is about lifestyle, imagination,
reclaimed liberty, innovation, passion, hopes, ambitions, and aspirations, and Personality and
Self-Concept
giving power to the people through technology.

7.1 INTRODUCTION
Take a good look around yourself, at the market, and at your own purchases of
the products and services there from. Chances are good that you will notice something
important - an invisible connection between these important symbols of our
consumption system. Either these products are projecting a personality and an image
that has an appeal to their customers or they are remodelling their personality and
image to suit those images that their target customers have. Thus, Brand Tata promises
trust and dependability, and Titan stands for lifestyle.
Why such a trend is developing? The subsequent sections will attempt to answer why.

7.2 AN OVERVIEW OF PERSONALITY:

ITS NATURE AND THEIR APPLICATION TO
CONSUMER BEHAVIOUR
All of us, at some time or another, have described friends or acquaintances in terms
of their personalities. We may have described someone as having a ‘friendly
personality’, someone else as having an ‘aggressive personality’. Sometimes we go
to the extent of saying that someone has a ‘personality problem’. The term personality
is used, in other words, to describe individuals in terms of their exhibited traits.
When we talk of personality, however, we do not just mean that a person is charming,
has a positive attitude towards life, or a smiling face. Personality is a much more
dynamic concept which describes the growth and development of an individual’s
whole psychological system. The fundamental question of concern to marketers has
been that, given that consumers differ on readily identifiable characteristics such as
personality, how do these factors influence their consumption behaviour and how
do marketers utilise their understanding of such individualistic variables?
As you know the personality is the composite sum total of an individual’s psychological
traits, characteristics, motives, habits, attitudes, beliefs and outlooks. Over the years
many different definitions have been proposed. One of the most widely used is that
by Allport according to which personality is defined as an ‘internal system’ which
includes all those aspects of a person that are inherited as well as those that are
learned. These two internal aspects are interdependent and cannot be isolated’.
You will see this illustrated in Figure 7.1 which highlights the origin of personality
traits.
Some theorists believe that personality differences can be explained primarily, if
not completely, by how individuals acquire their behaviour patterns. If, as stated,
personality is the result of a complex interaction of genetic and environmental inputs
then every person is, in certain respects:
1. like all other persons
2. like some other persons
3. like no other persons 117
Individual Influences on Figure 7.1 Origin of Personality Traits
Buying Behaviour

In other words, each person has some attributes in common with all other human
beings and other, totally unique qualities. Thus, we share certain characteristics with
others because of our biological make-up. For instance, you will find that some
personality characteristics are dictated by heredity. Thus, you may be ‘relaxed and
easy going’ because your parents were similarly so. A second important factor that
impinges on our personality formation is the culture in which we were raised, and
our early conditioning, along with the groups and institutions from which that culture
is acquired. Thus, our families and peers, i.e., friends and associates; are important
reference groups that influence our own personality characteristics.
Furthermore, it is necessary for you to note that, since learning contributes to
personality formation, the personality is not fixed because, learning itself is a continuous
process and may differ between individuals and for the same individual at different
stages of his life. This does not mean, however, that personality is unstable or is
subject to abrupt changes. On the contrary, basic personality change is exceedingly
difficult and, also, slow to occur.
For your purpose you should think of personality as the sum total of ways in which
an individual reacts and interacts.
As a concept applied to marketing, personality can be viewed as having following
distinct characteristics:
1) Personality is used to account for differences between individuals rather than
show how people are alike. Here again, refer to Figure 7.1. This enables us to
categorize people into groups on the basis of a single or a few traits. The difficulty
inherent in trying to understand uniqueness has led to an emphasis on such
measurable characteristics as intelligence, aggressiveness, and sociability. Unique
combinations of individual characteristics result in variations in thought and
behaviour and these tend to differentiate one person from another.
2) Personality is a set of response tendencies that are consistent and endure over
time. Consistency means that the characteristics contributing to an individual’s
personality tend to carry over to a variety of situations. Consistency is essential
if marketers are to predict consumer behaviour in terms of personalities. The
stable nature of the underlying personality characteristics also suggests that it
is unreasonable for marketing practitioners to attempt to change consumers
personalities. At best they can attempt to appeal to the relevant personality
118 traits inherent in target groups of consumers.
3) Personality is, however, subject to change over time, in response to situations Personality and
Self-Concept
and events in life and, also, as part of a gradual maturing process.
4) Finally, it is not possible to predict an individual’s purchase behaviour from
single measures of personality, we cannot expect to predict the type of
furniture a person will own, merely by looking at specific personality,
characteristics.

Activity 1
1) Make a list below, of six of your personality characteristics that you would
say are inherited from your parents.
2) Next, list six personality characteristics where you are like some of your
friends.
3) Finally, list down six personality characteristics of yours which no person
around you appears to possess.

7.3 THE CONCEPT OF PERSONALITY

We all have in our mind different interpretations of the term personality. The concept
in behavioural sciences however is quite clear and well explained. But first a few
definitions. Let us begin with the one on the personality. Personality refers to ‘a
person’s unique psychological makeup and how it consistently influences the way
a person responds to his or her environment’.

In recent years, the nature of the personality construct has been hotly debated. Many
studies have found that people tend not to behave consistently across different
situations and that, they do not seem to exhibit stable personalities. In fact, some
researchers feel that personality does not really exist at all. According to them, it is
merely a convenient way to describe the behaviour of other people.

This argument is a bit hard to accept intuitively, possibly because we tend to see
others in a limited range of situations, and so to us, people do act consistently. On
the other hand, we each know that we are not all that consistent, we may be wild
and crazy at times and the model of respectability at others. While certainly not all
psychologists have abandoned the idea of personality, many now recognize that a
person’s underlying characteristics are but one part of the puzzle and that situational
factors behaviour. This realization underscores the potential importance of segmenting
119
Individual Influences on according to situations. Be that as it may, there are several theories that have been
Buying Behaviour
advanced to explain the concept of personality.

Activity 2
Do you agree that concept of personality is real, at least in the context of
marketing? Illustrate your answer.
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7.4 THEORIES OF PERSONALITY

There are several theories that have been proposed on personality. While there is
no agreement on exactly how personality influences behaviour, there are at least
four distinct approaches that are known to have implications for developing the
marketing mix and for segmentation.
Each of these theories has played a prominent role in studying the relationship between
consumer personalities and their behaviour. These theories are:
1) The Psychoanalytic Theory of Freud
2) Social-Psychological Neo-Freudian Theory
3) Trait Theory
4) Self-Concept Theory

7.5 THE PSYCHOANALYTIC THEORY OF FREUD

Freud proposed that every individual’s personality is the product of a struggle among
three interacting forces: the id, the ego and the superego. Have a look at Figure
7.2. According to this theory, these three systems are fully developed and are in a
state of balance in a normal healthy person. However, when one or more of these
systems is underdeveloped then the internal balance is disturbed. This disturbance
leads to maladjustment and dissatisfaction with the self and the world in general.
According to Freud, the id is the source of strong, inborn, basic, instinctive drives
and urges which are at the heart of a consumer’s motivation and personality. The
function of the id is discharge tension and it frequently does this by demanding instant
gratification, even at the cost of violating the norms of society. The id therefore
operates on what is called the pleasure principle. Psychologically, the id is the
source of all desires and wishes that exist in the form of unconscious images and
fantasies. Since all tensions are not immediately satisfied, the human being encounters
frustration. For example, when an individual is hot and thirsty, the id will urge him
or her to grab something cold to drink
120
Since it operates on a very subjective level, the id is not capable of dealing with Personality and
Self-Concept
objective reality. The ego comes into being because of the limitations of the id in
dealing with reality and operates, therefore, on what is called the reality principle.
It seeks to achieve the pleasurable demands of the id in as realistic a way as possible.
Since many of the id’s demands may be unrealistic, the ego develops ways to
postpone, deflect or substitute feasible alternatives to satisfy the id. To take a simple
example, let us assume that an individual sees an attractive object in a shop window
and wants it immediately. The ego recognises the consequences such as the financial
constraints, a need for the product, and accordingly restrains activity. It thus helps
to develop cognition and controls impulsive behaviour. Thus, while the id engages
in daydreams and fantasy, which exist as pleasurable imaginations, the ego can
distinguish between these and reality.

The superego strives for perfection. It develops through the reinforcement of approved
behaviour patterns and results from the internalisation of societal and parental standards
of what is good and bad. The superego is, therefore, the individual’s moral code and
helps in striving for perfection. Its primary purpose is, accordingly, to restrain aggressive
impulses of the id rather than seek to postpone them, as does the ego.
Figure 7.2 Freud’s View of the Personality

It is believed that the id and superego operate to create to unconscious motives

for purchasing certain products. Although these motives would be extremely hard
to determine, they might be central to explaining certain purchasing behaviours. Now
try the following.

Activity 3

List down four products that you presently possess (consumer durables or non-
durables), that you felt anxious about, before the purchase was made. Explain
the reason for the anxiety. Also explain the reason by which you justified the
purchase.
121
Individual Influences on
Buying Behaviour

Applications of Psychoanalytic Theory.

Psychoanalytic theory has been used occasionally by marketers as a basis for
influencing consumers. According to psychoanalytic theory, consumers are seen
as having conflicting desires as they are confronted with products to gratify wants.
And according to Freudian theory, anxiety is a key concept emerging out of
this conflict system. One application, therefore, is for consumers to minimise
the anxiety arising out of this conflict system by appealing to their tendencies
of fantasizing, wish fulfilment, aggressive impulses and the need to escape from
life’s pressures.
Marketers therefore use flights of fantasy to propel people to buy products. Thus,
hedonism is an appeal to the pleasure principle and, this approach underlies many
of the products designed for an affluent society.
Psychoanalytic theory has, however, caused marketers to realise that, while it is
possible to appeal subconsciously to buyers’ dreams, hopes and fears, there are
other occasions when it is necessary to provide buyers with socially acceptable
rational for making purchases.

7.6 SOCIAL-PSYCHOLOGICAL OR
NEO-FREUDIAN THEORY
Some social-psychologists have forwarded the view that, social relationships are
fundamental to the formations and development of personality. On the basis of their
orientations in relating to others, individual consumers tend to develop methods to
cope with their anxieties, Consumers have consequently been classified into three
personality groups using what is called the ‘CAD model’ where CAD is an acronym
that stands for compliance, aggression and detachment. The CAD model was
developed by using the concept of ‘interpersonal man’ and considers all consumers
as having one of three basic orientations so that they may be described as belonging
to one of the following categories of individuals:
i) Compliant Individuals: These individuals tend to move toward others.
Compliant people have a need for love, affection, approval and the desire to
be appreciated. They are essentially conformists.
ii) Aggressive Individuals: They tend to move against others. Their interpersonal
orientations display the ability to manipulate others. Such individuals also appear
to have a need to achieve success, to excel, to gain admiration and to be in a
power position.
122
iii) Detached Individuals: This category of persons tends to move away from Personality and
Self-Concept
others. Their relationships emphasize the need for self-reliance, independence,
and freedom.
Application of Social-psychological Theory
It has been found that individuals having different personality types tend to use different
products and brands. The CAD model was, in fact, developed for the specific
purpose of studying buying behaviour and it emphasises the effect of social influences
on the personality. Thus, studies have shown that compliant types have been found
to prefer known products and brands while aggressive types have been found to
prefer specific brands out of a desire to be noticed, and also to use more of aftershave
lotions and colognes. In contrast, detached types appear to have the least awareness
of brands.
The CAD approach is used by marketers to predict which consumers may be more
or less prone to group influence.
The most important application of social-psychological theory is its emphasis on
the social nature of consumption. In fact, you will see this in advertising copy in
which social interaction is stressed more than the products themselves. The entire
series of Cadbury chocolate ads with the byline ‘Kuch Meetha ho jaye” display a
variety of social relationship situations being strengthened through this consumption.
Advertising for personal care products, for instance, emphasises the fear of offending
others. Social interaction is also highlighted in the case of products advertised for
occasions for being together.

Activity 4
Mention the three key words of psychoanalytic and the social theories of
personality and compare them together.
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7.7 TRAIT THEORY OF PERSONALITY

Trait theory of personality is one of the recent and slightly implementable theory of
personality. The approach here is to focus on the quantitative measurement of traits,
or identifiable characteristics that define a person. For example, people can be
distinguished by the degree to which they are socially outgoing (the trait of
extroversion). Some specific traits that are relevant to consumer behaviour include
innovativeness (the degree to which a person likes to try new things), materialism
(amount of emphasis placed on acquiring and owning products), self-consciousness
(the degree to which a person deliberately monitors and controls the image of the
self that is projected to others), and, need for cognition (the degree to which a
person likes to think about things and by extension expend the necessary effort to
process brand information). Thus, the approach tries to identify the dimensions and
make up the personality of the consumer. This way, comparisons can be made over
123
Individual Influences on the segments as well cultures. Marketers have used the approach quite often. For
Buying Behaviour
this purpose, a variety of personality scales have developed and employed.
Trait theory attempts to describe people in terms of their predispositions on a series
of adjectives. Table 7.1 gives a list of sixteen traits on which a person can be described.
Many such lists have been developed. Researchers then use these trait inventories
to investigate the personality profiles of groups of consumers of competing brands.
Table 7.1 Sixteen Personality Traits Identified by Cattell

Trait theory is based on certain assumptions namely that:

1) Traits are relatively stable characteristics.
2) There are a limited number of traits common to most people. People differ in
the extent to which they possess these common traits.
3) The degrees to which individuals possess certain traits can be measured by
using a questionnaire. For example, a consumer may be viewed as possessing
some degree of each trait along a continuum such as:
Trusting Versus Suspicious
Self-assured Versus Insecure
a) Trusting………………… Suspicious
b) Self-assured …………….. Insecure
A rating toward the suspicious end of the continuum would indicate a much tougher
customer than one toward the ‘trusting’ end. Similarly, a self-assured person would
be more likely to try new products than an insecure customer. Again, dogmatic people
are found to be less receptive to unfamiliar stimuli and to new styles and products.
Factor theories involve the application of Trait theory by subjecting large numbers
of individuals to personality tests the results of which are subsequently analysed by
a statistical technique called factor analysis. This enables common factors or traits
to be identified in groups of people who constitute market segments.
This approach is however not without its limitations as given below:
a) The theory requires a scale to measure these traits. Many of the scales are not
sufficiently valid or reliable, they do not adequately measure what they are
supposed to measure, and their results may not be stable over time.
b) Personality tests are often developed for specific populations (e.g., mentally ill
124
 people), these tests are then “borrowed” and applied to the general population Personality and
Self-Concept
where their relevance is questionable.
c) The tests often are not administered under the appropriate conditions. Instance
have been reported in the literature that often these tests have been given in a
classroom or over a kitchen table by people who are not properly trained.
d) The researchers often make changes in the instruments to adapt them to their
own situations, in the process deleting or adding items and renaming variables.
These ad hoc changes dilute the validity of the measures and also reduce
researchers’ ability to compare results across consumer samples.
e) Many trait scales are intended to measure gross, overall tendencies (e.g., emotional
stability or introversion), these results are then used to make predictions about
purchases of specific brands. Such attempts may be termed at best, ambitious.
f) In many cases, a number of scales are given with no advance thought about
how these measures should be related to consumer behaviour. The researchers
then use a shotgun approach— following up on anything that happens to look
interesting.

Activity 5
Do you agree with the above criticism of the trait theory of personality? What
are the difficulties you are likely to encounter if you use the trait measures of
personality to measure the personality of your consumers?
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7.8 THE THEORY OF SELF-CONCEPT

Self-concept is a concept related to personality as it draws much of its strength
from the latter. Self-concept refers to ‘the attitude a person holds toward him—or
herself’. Just as a consumer has an attitude toward a particular brand of soft drink
or democracy, the self is also a subject of an attitude therefore, of evaluation. An
overall self-attitude is frequently positive, but not always. There are certainly parts
of the self that are evaluated more positively than others. For example, a consumer
may consider himself more effective or articulate than the others.
Self-Concept Theory
This theory holds that individuals have a concept of self, based on who they think
they are (the actual self) and a concept of who they think they would like to be
(the ideal self). Self-concept theory is related to psychoanalytic theory since the
actual self is similar to the ego and the ideal self is similar to the superego. Self-
concept theory is governed by the desire to attain self-consistency and the desire
to enhance one’s self esteem. Generally, consumers buy products that confirm to
their actual self-image. But if they are low in self-esteem, they are more likely to
buy based on what they would like to be rather than what they are.
125
Individual Influences on Buying to achieve an unrealizable self-image can lead to compulsive purchasing
Buying Behaviour
behaviour. Frequent purchasing is a means to overcome the discrepancy between
the real and ideal selves and to relieve a sense of low self-esteem.
Another dimension of self-concept theory is the extended self. Certain products
have symbolic value and are considered an extension of our personality (eg, a car).
This extension of self-concept theory in fact has been called symbolic interactionism
because it emphasizes the interaction between individuals and the symbols in their
environment.
Advertisers have understood the symbolic role of products in influencing self-image.
Advertising for jewellery, cosmetics, automobiles and clothing frequently
communicates an image of the user.
Compared to other attitudes, the self-concept is a very complex structure. It is
composed of many attributes, some of which are given greater emphasis in determining
overall self-attitude. Attributes of self-concept can be described along such dimensions
as their content (e.g., facial attractiveness versus mental aptitude), positivity or
negativity (i.e., self-esteem), intensity, stability over time, and accuracy (i.e., the
degree to which one’s self-assessment corresponds to reality). As will be seen later
in the unit, consumers’ self-assessments can be quite distorted, especially with regard
to their physical appearance.

Activity 6
Talk to a group of your friends in terms of their brand selection of their watches,
cars and formal shirts.When asked about why they chose that particular brand,
assess how many of them attribute their selection to the brand being an
expression of what they think they are.
In all such cases probe further to explore how their chosen brands reinforce
their self concept.
Put down the results of your discussion here:
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7.9 THE RELATED CONCEPTS

Though personality and self-concept are now the essential terms in the marketing
lexicon of today, they are not the only words that marketers use and manage in the
process of relating their products to the image of the consumers and the products.
The two words especially mentioned in the context are the self-consciousness and
the self-esteem.

7.9.1 Self-consciousness
Unlike the feeling in self-concept, self-consciousness is more deliberate and easily
126 felt or told. Thus, there are times when people seem to be painfully aware of
themselves. If you have ever walked into a class in the middle of lecture and noticed Personality and
Self-Concept
that all eyes were on you, you can understand this feeling of self-consciousness. In
contrast, consumers sometimes behave with little self-consciousness. For example,
people may do things in a stadium, a riot, or a fraternity party that they would never
do if they were highly conscious of their behaviour.
In the marketing consumption context, some products do bring out self-consciousness
in the customers while they are buying or considering them. Thus, ‘esteem’ products
or the ‘unmentionable products’ make the customers very self-conscious of them.
The rule of the thumb in this regard is that if a person is doing what he or she is
not supposed to do in the normal course, it makes them conscious of themselves:
It is both a marketing opportunity and a challenge.

7.9.2 Self-esteem
Self-esteem refers to the ‘positivity of one’s attitude toward oneself’. People with
low self-esteem do not expect that they will perform very well. They thus, constantly
endeavour to avoid embarrassment, failure, or rejection. In developing a new line
of snack cakes, for example, a manufacturer found that consumers low in self-esteem,
preferred portion-controlled (healthy amount) snack items because they felt they
lacked self-control. In contrast, people with high self-esteem expect to be successful,
will take more risks, spend more money on themselves, and are more willing to be
the center of attention.
Self-esteem often is related to acceptance by others. For example, young persons
who move in high-status “crowds in the disco bars” have higher self-esteem than
their counterparts. Like the situation in the self-consciousness, the self-esteem too
poses an opportunity to the marketers. For example, Dove’s “Self-Esteem” campaign,
which promotes realistic pictures of women, was developed in response to idealised
and unrealistic depictions of women in advertising, which have been shown to reduce
self-esteem.

Activity 7
Mention two campaigns in the consumer product category which are based
on the self-consciousness and the self-confidence. Write your analysis in 15
to 25 words each.
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7.9.3 Multiple Selves

In a way, each consumer is really a number of different people. We have as many
selves as we do different social roles. Depending upon the situation, we act differently,
use different products and services, and even vary in terms of how much we like
ourselves. A person may require a different set of products to play a desired role.
She may choose a sedate, understated perfume when she is being her professional
self, but splash on something more provocative on Saturday night as she becomes
her ‘femme fatale’ self. Similarly, all Indians, how soever stern and proper they are 127
Individual Influences on in dressing themselves in everyday life, have known to let their hair down on festival
Buying Behaviour
occasions.
The ‘dramaturgical perspective’ on consumer behaviour views people much like
actors who play different roles. We each play many roles, and each has its own
script, props, and costumes.
Depending on the characteristics of a situation and the other people with whom
one is interacting, different roles are played. The self can be thought of as having
different components or role identities, and only some of these are active at any
given time.
Some identities (e.g., husband, boss, student are more central to the self than others,
but other identities (e.g., stamp collector, dancer, or advocate for the homeless)
may be dominant in specific situations. For example, executives in a survey done
in the United States, the United Kingdom, and some Pacific Rim countries said
that different aspects of their personalities come into play depending on whether
they are making purchase decisions at home or at work. Not surprisingly, they report
being less time-conscious, more emotional, and less disciplined in their home roles.

7.9.4 Symbolic Interactionism

If each person potentially has many social selves, how does each develop and how
do we decide which self to “activate” at any point in time? The sociological tradition
of symbolic Interactionism stresses that relationships with other people play a part
informing the self. This perspective maintains that people exist in a symbolic
environment and the meaning attached to any situation or object is determined by
the interpretation of these symbols. As members of society, we learn to agree on
shared meanings. Thus, we know that a red light means stop, the golden arches of
McDonaldmean fast food etc.
Like other social objects, the meanings of consumers themselves are defined by
social consensus. The consumer interprets his or her own identity, and this assessment
is continually evolving as he or she encounters new situations and people. In symbolic
interactionist terms, we negotiate these meanings over time. Essentially the consumer
poses the question: “Who am I in this situation?” The answer to this question is
greatly influenced by those around us: “Who do other people think I am?” We tend
to pattern our behaviour on the perceived expectations of others in a form of self-
fulfilling prophecy. By acting the way, we assume others expect us to act, we wind
up confirming this perception.

Activity 8
Explain the concept of symbolic interactionism in your own words and illustrate
the concept with right example.
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7.9.5 The Looking-Glass Self

This process of imagining the reactions of others toward us is known as “taking
128 the role of the other,” or the “looking-glass self.” According to this view, a process
of reflexive evaluation occurs when the individual attempts to define the self, and it Personality and
Self-Concept
operates as a sort of psychological sonar: We take readings of our own identity by
“bouncing” signals off of others. The looking-glass image we receive will differ
depending upon whose views we are considering. Like the distorted mirrors in a
fun- house, our appraisal of who we are can vary, depending upon whose perspective
we are taking. A confident career woman may sit morosely at a night club , imagining
that others see her as an unattractive woman with little sex appeal (whether these
perceptions are true or not).

7.10 CONSUMPTION AND SELF-CONCEPT

By extending the dramaturgical perspective a bit further, it is easy to see how the
consumption of products and services contributes to the definition of the self. For
an actor to play a role convincingly, he or she needs the correct props, stage setting,
and so on. Consumers learn that different roles are accompanied by constellations
of products and activities that help to define these roles. Some “props” are so
important to the roles we play that they can be viewed as a part of the extended
self, a concept to be discussed shortly.
The use of consumption information to define the self is especially important when
an identity is yet to be adequately formed, as occurs when a consumer plays a
new or unfamiliar role. Symbolic self-completion theory predicts that people who
have an incomplete self-definition tend to complete this identity by displaying symbols
associated with it. For example, the clothing ad may emphasize the perspective
that the confidence one gains by wearing the right fashions. Adolescent boys may
use “macho” products like sports bike and cars to bolster their developing masculinity;
here, products are a sort of “social crutch” to be leaned upon during a period of
uncertainty.

7.10.1 Self Image-Product Image Congruence

Because many consumption activities are related to self-definition, it is not surprising
to learn that consumers demonstrate consistency between their values and attitudes
and the things they buy. Self-image congruence models predict that products will
be chosen when their attributes match some aspect of the self. These models assume
a process of cognitive matching between these attributes and the consumer’s self-
image. While results are somewhat mixed, the ideal self appears to be more relevant
as a comparison standard for highly expressive social products such as perfume.
In contrast, actual self is more relevant for every day, functional products. These
standards are also likely to vary by usage situation. For example, a consumer might
want a functional, reliable car to commute to work everyday, but a flashier model
with more “zing” when going out on a social date in the evening.

Activity 9
Explain the concept of self image – brand image congruence in your own words
and illustrate the concept with right example.
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129
Individual Influences on 7.10.2 The Extended Self
Buying Behaviour
As noted earlier, many of the props and settings consumers use to define their social
roles u sense become a part, of their selves. Those external objects that we consider
a part of us comprise the extended self. In some cultures, people literally incorporate
objects into the self: they lick new possessions, take the names of conquered enemies
(or in some cases eat them), or bury the dead with their possessions. Four levels
of the extended self are used by consumers to define themselves. These range from
very personal objects to places and things, that allow people to feel like they are
rooted in their environments.
a) Individual level: Consumers include many of their personal possessions in self-
definition. These products can include jewellery, cars, clothing, perfume and
so on. The saying “You are what you wear” reflects the belief that one’s things
are a part of what one is.
b) Family level: This part of the extended self includes a consumer’s residence
and the furnishings in it. The house can be thought of as a symbolic body of
the family and is often a central aspect of identity.
c) Community level: It is common for consumers to describe themselves in terms
of the neighbourhood or town from which they come. For farm families or
residents with close ties to a community, this sense of belonging is particularly
important.
d) Group level: Our attachments to certain social groups also can be considered
a part of self. A consumer may feel that marks, landmarks, monuments, or sports
teams are a part of the extended self.

Activity 10
Explain the concept of self-extension in your own words and illustrate the concept
with right example.
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7.10.3 Digital Self

Mobile based applications allow virtually anyone to modify his or her digital self.
We can modify our profile photos or description that we post or share on social
networking sites. In addition, someone can create additional identities in virtual worlds
like Second Life and massive multiplayer online games (MMOGs) such as World
of Warcraft. The digital environment is changing the established concept of “you
are what you wear” to “you are what you post.”. One study revealed that respondents
have given more value to digital items that reflect their physical identities, such as
digital photos and written communications. It also has been reported that the digital
self may actually be a projection of one’s fanatasy about himself or herself. It is as
if a person had the freedom to create a persona and goes ahead to exercise that
freedom. Like the concept of multiple self studied above, avid users of digital media
130 have been known to create multiple identities.
 Personality and
Activity 11 Self-Concept

How might the “digital self” differ from a consumer’s self-concept in the real
world, and why is this difference potentially important to marketers?
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7.11 SUMMARY
The unit makes an attempt to answer how and why marketers have to address
themselves to the issues of personality and self-image and the influence these variable
have on consumption. The main reason is that consumers seek a congruence in
what they are and what the products may mean to them. Three theories of personality
are explained in the unit. They are psychoanalytic theory of personality, social theory
and the trait theory. Trait theory has been advocated to be the most implementable.
Then the unit moves to the issue of self-image and self-conceptand explains variations
across which these concepts get applied. The unit also describes how a level of
‘Interactionism’ occurs among the various types of self.

7.12 KEY WORDS

Congruity theory : a consistency theory that specifically allows a linkage between
a self-concept and the product concept.
Personality : “a person’s unique psychological make up that allows him
to respond in a consistent manner”.
Self-concept : The attitude that a person holds towards himself or herself.
Self-image theory : a theory based on the congruence between the attributes
of one self and that of the product.
Trait : The identifiable characteristics that define a person.
Symbolic : a sociological perspective that holds that relationships with
Interactionism other people play a large part in forming the self.

7.13 SELF-ASSESSMENT QUESTIONS

1) Define personality. What are the differences of the trait and the psychoanalytic
theory of personality? How do marketers apply their understanding of these
theories

2) Elucidate the concept of symbolic INTERACTIONISM. How does it help the

marketers?

3) Do the theories of personality and self-concept have a global relevance? if not,

make a list of the products and services to which they readily apply? 131
Individual Influences on 4) What are the marketing implications of the ‘extended self’ concept? Prepare a
Buying Behaviour
framework for its application.

5) Compare and contrast the real versus the ideal self. List three products for
which a person is likely to use each type of self as a reference point when he
or she considers a purchase.

7.14 PROJECT QUESTIONS

1. Select the advertisement of the Passenger Car brands in India and try to glean
out the personality they seem to project. Make a chart of these personalities
identifying the key features of each personality. Then make a sample of owners
of these brands. Compare the two and write your assessment as to what extent
these two agree.
2. Construct a “consumption biography” of a friend or family member. Make a
list of or photograph his or her favourite possessions, and see if you or others
can describe this person’s personality just from the information provided by
this catalogue.

7.15 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
4. The Personality Continuum and Consumer Behavior PAUL J.
ALBANESE Praeger; Illustrated edition (November 2002, 2002)
5. Calvin Springer Hall Gardner Lindzey John B. Campbell , Theories of Personality
Wiley India Pvt. Ltd,2008
6. Michele Machado, John Nezlec, Herber Rodrigues “Personality traits and food
consumption: an overview of recent research”https://www.sciencedirect.com/
science/article/abs/pii/S2214799320300163

132
 Personality and
UNIT 8 CONSUMER MOTIVATION AND Self-Concept

INVOLVEMENT
Learning Outcomes
After having gone through this unit, you should be able to:
 explain the concept of consumer motivation

 discuss the linkage among the consumer motivation, involvement and

consumer decision-making
 identify the problems as well as solution for measuring consumer motivation
and involvement, and
 discuss the marketing approaches and strategies to influence consumer
motivation and involvement.
 apply your knowledge of consumer motivation and involvement in your
marketing decisions
Structure
8.1 Introduction
8.2 The Concept and Typology of Needs
8.3 Theories of Consumer Needs
8.4 Motives: The Basis of Motivation
8.5 The Concept of Motivation
8.6 Motivational Conflicts
8.7 Consumer Involvement
8.8 The Facets of Involvement
8.9 Summary
8.10 Key Words
8.11 Self-assessment Questions
8.12 Project Questions
8.13 Further Readings
Advent of internet technology has transformed the business operations. It has
made the consumers’ life more convenient and easier by proving online
marketing opportunities. Consumers can compare the various features of
competitive products online and may order for online purchase from the comfort
of his/her home. Online payments can be done with the help of internet banking,
Credit/ Debit card, UPI, e-wallets (digital wallets or mobile wallets). In India
demonetization and pandemic covid-19 has expedited the use of digital payment
and accelerated the adoption of e Commerce. Moreover, discount on payments
made through digital mode are offered for many transactions. For example,
the 0.75 per cent discount on payment made by digital mode is offered for
petrol and diesel; discount of Rs 50 per gram from the issue price of sovereign 133
Individual Influences on gold bond was offered to those investors who applied online and the payment
Buying Behaviour
was made through digital mode.These are almost fundamental changes to how
consumers decide and buy and influence many variables affecting buying
decisions, including consumer motivation and involvement, the subject matter
of this unit.

8.1 INTRODUCTION
Why do we buy one product or brand rather than the other? Why do we buy from
one shop than the other or use online browsing to identify our choices? Why do
we buy at all?
The questions may sound as the platitudes to some of us, axiomatic to the others.
But the real reason is to underscore a basic point of human behaviour. You would
recall that in the first unit of this course we had defined human behaviour as motivated
or goal-oriented. Some of us may not have realized it this way but it still is true.
The chief characteristic of the human actions is that each and every part of it is
guided by motives: conscious or otherwise. A successful marketer understands the
motives and “shapes them”.
However, the strength of the motive may not be very strong for the comfort or the
discomfort of the marketer. This may be either because consumers are not aware
of the importance of the buying decision or that, there was no need or occasion
for the marketer to address the consumers on the importance of the decision that
the consumers make for themselves. A time comes for the marketer when they have
to add some of their own strength to these motivations to facilitate consumer action
to reach the desired goal. This is known as the process of creating consumer
involvement.

8.2 THE CONCEPT AND TYPOLOGY OF NEEDS

Consumer motivation and involvement are based primarily on the notions of consumer
needs and wants. The section aims to discuss the concept of need and extend your
understanding of what you have already covered in your core course MMPC-006.

8.2.1 Concept of Need

The concept of need and its typology have a long history and the meaning is far
from clear. Several terms like need, want and demand are used in the similar context.
Thus, the particular form of consumption used to satisfy a need is termed a want.
The specific way a need is satisfied depends upon the individual’s unique history,
learning experiences, and his or her cultural environment. For example, two course
mates in a training programme, one Indian and the other French, may feel their stomachs
rumbling during a lunchtime lecture. If neither person has eaten since the night before,
the strength of their respective needs (hunger) would be about the same.
However, the way each person goes about satisfying this need might be quite different.
The first person may be aroused by prospect of a Parantha and pakauris, the second
person may be a satisfied with cottage cheese, bread and milk. The distinction between
needs and wants is important because it relates to the issue of whether marketers
are actually capable of creating needs.
134
A need in consumer behaviour context is defined as a state of felt deprivation that Consumer Motivation
and Involvement
impels action to rectify that state. So in the above example, owing to the gap between
their last meal and now, both classmates experience a state of food deprivation or
are in need of food. The physiological discomfort of this hunger will activate them
to look for and consume food. However while both ‘need ‘food, they ‘want’
significantly different satisfiers. The marketers are very aware that the same need
for different target segments may translate into very different wants which they can
then apply to theirmarketing mix decisions.

Activity 1

Give one example from your own consumption that bring out the difference
between the need and want.

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....................................................................................................................

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8.2.2 Types of Needs

People are born with a need for certain elements necessary to maintain life, such a
food, water, air and shelter. These are called biogenic needs. People have many
other needs, however, that are not innate. Psychogenic needs are, acquired in the
process of becoming a member of a culture. These include the need for status, power,
affiliation, and so on. For example, that an Indian consumer may be driven to devote
a good chunk of his income to products that permit him to satisfy his concern for
the family, shows an example of psychogenic needs. Consumers can also be motivated
to satisfy either utilitarian or hedonic needs. The satisfaction of utilitarian needs implies
that consumers will emphasize the objective, tangible attributes of products, such
as durability in a home appliance, fuel economy in a car etc. Hedonic needs are
subjective and experiential. Consumers may rely on a product to meet their needs
for excitement, self-confidence, fantasy, and so on. Of course, consumers may be
motivated to purchase a product because it provides both types of benefits. For
example, X brand of car may be bought because it feels well styled, and luxurious
and also because it keeps the cost of running the car low.

8.3 THEORIES OF CONSUMER NEEDS

Much research has been done on classifying human needs. On the one hand, some
psychologists have tried to define a universal inventory of needs that could be traced
systematically to explain virtually all behaviour. One such effort, developed by Henry
Murray, delineates a set of twenty needs that (sometimes in combination) result in
specific behaviours. These needs include such dimensions as autonomy (being
independent), defendance (defending the self against criticism), and even play
(engaging in pleasurable activities). Others have focused on specific needs (which
often are included in general models like Murray’s) and their ramifications for
135
Individual Influences on behaviour. For example, individuals with a high need for achievement strongly value
Buying Behaviour
personal accomplishment. They place a premium on products and services that signify
success because these consumption items provide feedback about the realization
of their goals. These consumers are good prospects for products that provide evidence
of their achievement. One study of working women found that those who were
high in achievement motivation, were more likely to choose clothing they considered
business like, and less likely to be interested in apparel or accessories that accentuated
their femininity. Some other important needs that are relevant to consumer behaviour
include the following.
a) Need for affiliation (to be in the company of other people): This need is relevant
to products and services that are consumed in groups and alleviate loneliness,
such as team sports, bars, and shopping and social clubs.
b) Need for power (to control one’s environment): Many products and services
allow consumers to feel that they have mastery over their surroundings. The
use of the i-phones or apple smart watches, powerful all terrain SUVs, high
end laptops, and enabling softwareis the example of products targeted at such
needs.
c) Need for uniqueness (to assert one’s individual identity): This need is satisfied
by products that promise to accentuate a consumer’s distinctive qualities. For
example, fashion clothing, athletic shoes, perfumes and books.

Activity 2
Give one example each from consumption seen around you that bring out the
difference between various needs as mentioned above.
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d) Maslow’s Hierarchy of Needs: One widely accepted approach to motivation

was proposed by the psychologist Abraham Maslow. Maslow’s approach is a
general one originally developed to understand personal growth and the attainment
of “peak experiences.” Maslow formulated a hierarchy of needs, in which levels
of motives are specified. A hierarchical approach implies that the order of
development is fixed-that is, a certain level must be attained before the next,
higher one is activate. This universal approach to motivation has been adapted
by marketers because it (indirectly) specifies certain types of product benefits
people might be looking for, depending upon the different stages in their
development and/or their environmental conditions. These levels are summarized
in Figure 8.1. At each level, different priorities exist in terms of theproduct benefits
a consumer is looking for. Ideally, an individual progresses up the hierarchy
until his or her dominant motivation is a focus on “ultimate” goals, such as justice
and beauty. Unfortunately, this state is difficult to achieve (at least on a regular
basis, most of us have to be satisfied with occasional glimpses, or peak
experiences.
136
 Figure 8.1 Consumer Motivation
and Involvement

(https://commons.wikimedia.org/wiki/File:Maslows-Hierarchy-of-Needs-1.png)

Examples of product appeals tailored to each level are provided in Table 8.1.
Table 8.1
Level of Hierarchy Relevant Products Example
Self-actualization Hobbies, travel, New Education Policy 2020
education,contribution “Educate Encourage Enlighten”
for a greater good
Self-esteem needs Car, furniture Toyota – Corolla “A car to be
proud of”
Social needs Clothing, grooming Facebook “Connect with the
products, social friends and the world around
community you”
Safety needs Insurance, investment, Life Insurance Corporation of
alarm system India “Zindagi Ke Saath Bhi
Zindagi Ke Baad Bhi”
Physiological needs Food, medicines, Online food ordering and delivery
staple items, generics platform Zomato “Never have a
bad meal”, Maggie; appeal –fast
to cook, good to eat

Activity 3
Give one example from your own consumption that illustrate the meaning of
the five levels of Maslow’s hierarchy of needs.
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137
Individual Influences on
Buying Behaviour ....................................................................................................................
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e) The implication of Maslow’s hierarchy is that one must first satisfy basic
needs before progressing up the ladder (i.e., a starving man is not interested in
status symbols, friendship, or self-fulfilment). This hierarchy should however
not be seen as inflexible. Its use in marketing has been somewhat simplistic,
especially since the same product or activity can satisfy a number of different
needs. Sex, for example, is characterized as a basic biological drive. While
this observation is true throughout most of the animal kingdom, it is obviously
a more complicated phenomenon for humans. Indeed, this activity could
conceivably fit into every level of Maslow’s hierarchy. Another problem with
taking Maslow’s hierarchy too literally is that it is culture-bound. The assumptions
of the hierarchy may be restricted to Western culture. People in other cultures
(or, for that matter, in eastern culture) may question the order of the levels as
specified. A religious person who has taken a vow of celibacy, would not
necessarily agree that physiological needs must be satisfied for self-fulfilment
to occur. Similarly, may eastern cultures operate on the premise that the welfare
of the group (social or belongingness needs) is more highly valued than needs
of the individual (esteem needs). The point is that this hierarchy, while widely
applied in marketing, should be valued because it reminds us that consumers
may have different need priorities at different time (i.e., you have to walk before
you can run) rather than because it exactly specifies a consumer’s progression
up the ladder of needs.

Activity 4

Do you think needs always operate in a hierarchical fashion? List any limitations
of the Maslow’s hierarchy of needs when seen in the Indian context.

....................................................................................................................

....................................................................................................................

....................................................................................................................

8.4 MOTIVES: THE BASIS OF MOTIVATION

A motive is an underlying reason for behaviour and not something researchers can
see or easily measure. Furthermore, the same behaviour can be caused by a number
of different motives. To compound the problem of identifying motives, the consumer
may be unaware of the actual need he or she is attempting to satisfy, or alternatively
he or she may not be willing to admit that this need exists. Because of these difficulties,
motives usually must be inferred by the analyst. Although some consumer needs
undoubtedly are utilitarian and fairly straightforward, some researchers feel that a
great many purchase decisions are not the result of deliberate, logical decisions.
138
To the contrary, people may do things to satisfy motives of which they are not even Consumer Motivation
and Involvement
aware.

8.5 THE CONCEPT OF MOTIVATION

Motivation refers to ‘the processes that cause people to behave as they do’. It
occurs when a need is aroused that the consumer wishes to satisfy. Once a need
has been activated, a state of tension exists that drives the consumer to attempt to
reduce or eliminate the tension. Marketers try to create products and services that
will provide the desired benefits and permit the consumer to reduce this tension,
by going in for consumption or acquisition of the products/services.

Figure 8.2 gives an overview of the motivation process. The sections to follow will
elaborate on the components in this model, but in general the process works the
way as described below.

Figure 8.2: An Overview of the Motivation Process

Alternatively, motivation has been defined as the inner drive in individuals which
impels them to action

8.5.1 Goal
A need is recognized by the consumer. This need may be utilitarian (i.e., a desire
to achieve some functional or practical benefit, as when a person requires a pair of
durable sneakers) or it may be hedonic (i.e., an experiential need, involving emotional
responses or fantasies). The desired state as am expected outcome of the buying
action is the consumer’s goal.

8.5.2 Drive
In either case, a discrepancy exists between the consumer’s present state and some
ideal state. This gulf creates a state of tension. The magnitude of this tension determines
the urgency the consumer feels to reduce the tension. This degree of arousal is called
a drive.

8.5.3 Want
As mentioned earlier, a basic need can be satisfied any number of ways, and the
specific path a person chooses is influenced by his or her unique set of experiences,
cultural upbringing, and so on. These factors combine to create a want, which is
one, the specific manifestation of a need.
139
Individual Influences on
Buying Behaviour Activity 5
Give one example from your own consumption experience that brings out the
components of consumer motivation process.
....................................................................................................................
....................................................................................................................
....................................................................................................................

8.5.4 Theories of Motivation

There are several principles on which the motivation theory is based. Some of them
are explained below:
a) Instinct Theory of Motivation
Early work on motivation ascribed behaviour to instinct-the innate patterns of
behaviour that are universal in species. This view is now largely discredited.
For one thing, the existence of an instinct is difficult to prove or disprove. It is
like saying that a consumer buys status symbols because he or she is motivated
to attain status, which is hardly a satisfying explanation.
b) Drive Theory
Drive theory focuses on biological needs that produce unpleasant states of arousal
(e.g., your stomach grumbles during a morning class). We are motivated to
reduce the tension caused by this arousal. Tension reduction has been proposed
as a basic mechanism governing human behaviour. In marketing, tension refers
to the unpleasant state that exists if a person’s needs are not fulfilled. A person
maybe irritable if he hasn’t eaten, or he may be dejected or angry if he cannot
afford that new car he wants. This state activates goal-oriented behaviour, which
attempts to reduce or eliminate this unpleasant state and return to a balanced
one, is termed homeostasis.
Drive theory, however, runs into difficulties when it tries to explain some facets
of human behaviour that run counter to its predictions. People often do things
that increase a drive state rather thandecrease it. For example, people may
delay gratification. If you know you are going out for a lavish dinner, you might
decide to forego a snack earlier in the day even though you are hungry at that
time. In other cases, people deliberately watch erotic movies, even though these
stimuli often increase sexual arousal rather than diminish it.
c) Expectancy Theory
Expectancy theory of motivation focus on cognitive factors rather than biological
ones to understand what drives behaviour. Expectancy theory suggests that
behaviour is largely pulled by expectations of achieving desirable outcomes -
positive incentives, rather than pushed from within. We choose one product
over another because we expect this choice to have more positive consequences
for us. Thus, the term drive is used here more loosely to refer to both physical
140 and cognitive processes.
 Consumer Motivation
Activity 6 and Involvement

Write three key words for each of the theories of motivation:

a) Instinct Theory of Motivation
....................................................................................................................
b) Drive Theory
....................................................................................................................
c) Expectancy Theory
....................................................................................................................

8.5.5 Motivational Strength

Once the goal is attained, tension is reduced and the motivation recedes (for the
time being). Motivation can be described in terms of its strength, or the pull it exerts
on the consumer, and its direction, or the particular way the consumer attempts to
reduce motivational tension. Motivational strength is “the degree to which a person
is willing to expend energy to reach one goal as opposed to another”. It reflects
his or her underlying motivation to attain that goal. Many theories have been advanced
to explain why people behave the way they do. Most share the basic idea that
people have some finite amount of energy that must be directed toward certain goals.

8.5.6 Motivational Direction

Motives have direction as well as strength. They are goal-oriented in that specific
objectives are desired to satisfy a need. Most goals can be reached by a number
of routes, and the objective of marketers is to convince consumers that the alternative
they offer provides the best chance to attain the goal. For example, a consumer
who decides that he needs a pair of jeans to help him reach his goal of being accepted
by others or projecting an appropriate image can choose among Levi’s, Wranglers,
Flying Machine, or the like, each of which promises to deliver certain comfort or
style or social benefits.
Valence, popularly known as the direction, of the goal or the purpose can be positive
or negative, which will in turn make the consumer goals as the negative or positive
goals. A positivevalence goal is one toward which consumers direct their behaviour,
they are motivated to approach the goal and will seek out product that will be
instrumental in attaining it. For example, a consumer may use the exercise equipment
called, Allegro, to help him achieve the positive goal of improving his physique and
social appearance.
However, not all behaviour is motivated by the desire to approach a goal. In other
cases, consumers are instead motivated to avoid a negative outcome. They will
structure their purchases or consumption activities to reduce the chances of attaining
this end result. For example, many consumers work hard to avoid rejection, a negative
goal. They will stay away from products that they associate with social disapproval.
Products such as a deodorants and mouthwash frequently rely upon consumers’
negative motivation by depicting the onerous social consequences of underarm odour
or bad breath. 141
Individual Influences on
Buying Behaviour 8.6 MOTIVATIONAL CONFLICT’S
A purchase decision may involve more than one source of motivation. Consumers
often find themselves in situations where different motives, both positive and negative,
conflict with one another, since marketers are attempting to satisfy consumers’ needs,
they can also be helpful by providing possible solutions to these dilemmas. As shown
in Figure 8.3, three general types of conflicts can occur: approach-approach,
approach- avoidance, and avoidance-avoidance.
Figure 8.3 Three Types of Motivational Conflicts

8.6.1 Approach-Approach Conflict

Here, a person must choose between two desirable alternatives. A student might
be torn between going home for the holidays or going on with friends for a sightseeing
trip. Or, he or she might have to choose between two equally desired books but
only one can be bought with the limited funds that they have.

8.6.2 Approach-Avoidance Conflict

Many of the product and services we desire have negative consequences attached
to them as well. We may feel guilty or ostentatious when buying ice creams or expensive
perfume. Some solutions to these conflicts include the proliferation of low-fat ice
creams, which eliminate guilt about unhealthy but pleasurable food choices, and the
success of diet foods, such as Weight Watchers, that promise good food without
the calories. Many marketers try to overcome guilt by convincing consumers that
they are deserving of luxuries, as in case of Loreal personal care for women “because
you are worth it”.
The conflict of this kind gives rise to another consumer behaviour concept, called
cognitivedissonance. The theory of cognitive dissonance is based on the premise
that people have a need for order and consistency in their lives and that a state of
tension is created when beliefs or behaviours conflict with one another. A state of
dissonance occurs when there is a logical inconsistency between two or more beliefs
or behaviours. It often occurs when a consumer must make a choice between two
products, where both alternatives usually possess both good and bad qualities. By
choosing one product and not the other, the person gets the bad qualities of the
chosen product and loses out on the good qualities of the unchosen one. This loss
creates an unpleasant, dissonant state that the person is motivated to reduce.The
conflict that arises when choosing between two alternatives may be resolved through
a process of cognitive dissonance reduction, in which people are motivated to reduce
this inconsistency (or dissonance) and thus, eliminate unpleasant tension. People
tend to convince themselves after the fact that the choice they made was the smart
142 one by finding additional reasons to support the decision on alternative they chose,
or perhaps by “discovering” flaws with the option they did not choose. A marketer Consumer Motivation
and Involvement
can resolve an approach-avoidance conflict by bundling several benefits together.
For example, a person may have to accept an attractive job offer with handsome
salary,but at the same time he perceives thatthe job is very risky.
Activity 7
Give one example how you will meet the threat of cognitive dissonance in respect
of buying trousers, candies, potato chips, etc.
....................................................................................................................
....................................................................................................................
....................................................................................................................

8.6.3 Avoidance-Avoidance Conflict

Sometimes consumers find themselves caught “between a rock and hard place.”
They may face a choice with two undesirable alternatives. A person may be faced
with the option of either throwing more money into an old car or buying a new car.
Marketers frequently address this conflict by message that stress the unforeseen
benefits of choosing one option (e.g., by emphasizing lease finance or easy payment
plans to ease the pain of new-car payments). Similarly, the problem of remaining
unemployed or taking up a job which is either life threatening or socially low esteem.
Medicine buying is another example of this type of conflict wherein the relief sought
may be counterbalanced either by the exorbitant price of possible side effects.

8.7 CONSUMER INVOLVEMENT

Along with the concept of motivation, involvement is another concept central to
activating consumer motives. Involvement refers to “the level of perceived personal
importance and/or interest evoked by a stimulus (or stimuli) within a specific situation”.
This definition implies that aspects of the person, the product, and the situation all
combine to determine the consumer’s motivation to process product related information
at a given point in time. When consumers are intent on doing what they can to satisfy
a need, they will be motivated to pay attention and process any information felt to
be relevant to achieving their goals. On the other hand, a person may not bother
to pay any attention to the same information it is not seen as relevant to satisfying
some need. One person who prides himself on his knowledge of exercise equipment
may read anything he can find about the subject, spend his spare time in athletics
stores, and so on, while another (lazier) person may skip over this information without
giving it a second thought.
Involvement can also be linked to the motivation to process information. To the
degree that there is a perceived linkage between a consumer’s needs, goals, or
values, and product knowledge, the consumer will be motivated to pay attention
to product information. When relevant knowledge is activated in memory, a
motivational state is created that drives behaviour (e.g., shopping}. This subjective
feeling of personal relevance is termed felt involvement. As felt involvement with a
product increases people devote more attention to ads related to the product, exert
more cognitive effort to understand these ads, and focus their attention on the product- 143
Individual Influences on related information in them.They may also become more cognitively engaged in
Buying Behaviour
evaluating alternatives, carefully processing all available information and seeking
references from existing users
Degree of involvement can be conceived as a continuum, ranging from absolute
lack of interest in a marketing stimulus at one end to obsession at the other.
Consumption of the low end of involvement is characterized by inertia, where
decisions are made out of habit because the consumer lacks the motivation to consider
alternatives. At the high end of involvement, we can expect to find the type of
passionate intensity reserved for people and objects that carry great meaning to
the individual. Involvement thus affects the information processing and activation.
Thus, type of information processing depends upon the consumer’s level of
involvement. It can range from simple processing, where only the basic features of
a message are considered to the one all the way to elaboration, where the incoming
information is linked to one’s pre-existing knowledge systems.

Activity 8
Define in your way the term of involvement. Indicate whether in general, level
of involvement will be higher or lower in the following products?
1) Newspaper
2) Mixer and grinder
3) Salt
4) Toothpaste
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

8.8 THE FACETS OF INVOLVEMENT

As previously defined, involvement can take many forms. A consumer could certainly
be said to be involved with a pair of running shoes if they help to define and bolster
his self-concept. This involvement seems to increase at certain times, as when he
must prove himself in a competition. Alternatively, the act of buying the shoes may
be very involving for people who are passionately devoted to shopping. To complicate
matters further, advertisements, such as those produced for Nike or Adidas, may
themselves be become involving for some reason (e.g.; because they make us laugh,
cry, or inspire us to work harder or use our favourite sports icon saying something
very relevant to our related need).

8.8.1 Types of Involvement

It seems that involvement is a fuzzy concept, because it overlaps with other things
and means different things to different people. Indeed, the consensus is that there
are actually several broad types of involvement.
a) Purchase Involvement. Purchase involvement is related to a consumer’s level
of interest in the buying process that is triggered by the need to consider a
144 particular purchase. Many sales promotions are designed to increase purchase
 involvement. For instance, in a contest sponsored by a perfume company, women Consumer Motivation
and Involvement
submitted details of their most intimate trysts to talk shows. The winning stories
were edited into a romance novel published by the manufacturer. These books,
in turn, were given away as a gift with the purchase of the perfume. Sales were
reported to have shot up as a result.
b) Message-Response Involvement. Message-response involvement refers to
the processing of marketing communication. Television is considered a low
involvement medium, because it requires a passive viewer who exerts relatively
little control (remote control “zipping” notwithstanding) over content. In contrast,
print is high-involvement medium. The reader is actively involved in processing
the information and is able to pause and reflect on what he or she has read
before moving on.
c) Ego Involvement. Ego involvement, sometimes termed enduring involvement,
refers to the importance of a product to a consumer’s self-concept. This concept
implies a high level of social risk, the prospect of the product not performing
its desired function may result in embarrassment or damage to the consumer’s
self- concept. For example, the consumer’s formal jacket is clearly an important
part of his self-identity as it enables him to project a desired persona. This
type of involvement is independent of particular purchase situations.

Activity 9
Can you add to the typology of consumer involvement? If yes, in what they
are important for the study of Consumers.
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

8.8.2 Measuring Involvement

The measurement of involvement is important for many marketing applications. For
example, research evidence indicates that a viewer who is more involved with a
television show, will also respond more positively to commercials contained in that
show, and that these spots will have a greater chance of influencing his or her purchase
intentions. The many conceptualizations of involvement have led to some confusion
about the best way to measure the concept. The scale shown in Table 8.2 is one
widely used method.
Table 8.2: A Scale to Measure Product Involvement
(Insert name of object to be judged)
important _ : _ : _ : _: _: _: _: unimportant*

of no concern _ : _ : _ : _: _: _: _: of concern to me

irrelevant _ : _ : _ : _: _: _: _: relevant

means a lot to me _ : _ : _ : _: _: _: _: means nothing to me*

145
Individual Influences on
Buying Behaviour useless _ : _ : _ : _: _: _: _: useful

valuable _ : _ : _ : _: _: _: _: worthless*

trivial _ : _ : _ : _: _: _: _: fundamental

beneficial _ : _ : _ : _: _: _: _: not beneficial*

matters to me _ : _ : _ : _: _: _: _: doesn’t matter*

uninterested _ : _ : _ : _: _: _: _: interested

significant _ : _ : _ : _: _: _: _: insignificant*

vital _ : _ : _ : _: _: _: _: superfluous

boring _ : _ : _ : _: _: _: _: interesting

unexciting _ : _ : _ : _: _: _: _: exciting

appealing _ : _ : _ : _: _: _: _: unappealing*

mundane _ : _ : _ : _: _: _: _: fascinating

essential _ : _ : _ : _: _: _: _: not essential*

undesirable _ : _ : _ : _: _: _: _: desirable

wanted _ : _ : _ : _: _: _: _: unwanted*

not needed _ : _ : _ : _: _: _: _: needed

Activity 10
Review the above methodology and write your impression as follows:
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

8.8.3 Development of Involvement Profile

A pair of French researchers have argued that no single component of involvement
is predominant. Recognizing that consumers can be involved with a product because
it is a risky purchase and/or its use reflects upon or affects the self, they advocate
the development of an involvement profile containing four components.
a) Importance and risk (the perceived importance of the product and the
consequences of bad purchase)
b) Probability of making a bad purchase
c) Pleasure value of the product category
146 d) Sign value of the product category
 Consumer Motivation
Activity 11 and Involvement

Do you agree with the argument for the development of an involvement profile?
Explain your answer.

....................................................................................................................

....................................................................................................................

....................................................................................................................

8.8.4 Segmenting by Involvement Levels

A measurement approach of this nature allows consumer researchers to capture
the diversity of the involvement construct, and it also provides the potential to use
involvement as a basis for market segmentation. For example, a tooth brush
manufacturer might find that even though its product is low in sign value for one
group of consumers, it might be highly related to the self-concept of another market
segment, such as health enthusiasts or avid socializers. The company could adapt
its strategy to account for the motivation of different segments to process information
about the product. Note also that involvement with a product class may vary across
cultures. While a sample of French consumers rated champagne high in both sign
value and personal value, the ability of champagne to provide pleasure or be central
to self-definition might not transfer to other countries (e.g. Islamic cultures).

8.8.5 Strategies to Increase Involvement

Although consumers differ in their level of involvement with respect to a product
message, marketers do not have to just sit back and hope for the best. By being
aware of some basic factors that increase or decrease attention, they can take steps
to increase the likelihood that product information will get through and the resulting
evaluation will favour their own brand. A consumer’s motivation to process relevant
information can be enhanced fairly easily by the marketer who uses one or more
of the techniques as mentioned in this section, when designing persuasive
communications. To take a common example, common salt which is typically a low
involvement product has been often converted by marketers into a high-involvement
buying one situation, by introducing variants like Iodised (Tata salt), free flowing
(Catch), containing 20 plus minerals (Himalayan)

Activity 12
Mention four strategies for increasing the purchase involvement of the product
“ Air Conditioner”: -
Strategy 1…………………………..………………………………………
....................................................................................................................
Strategy 2…………………………..………………………………………
....................................................................................................................
147
Individual Influences on
Buying Behaviour Strategy 3…………………………..………………………………………
....................................................................................................................
Strategy 4…………………………..………………………………………
………………….………………………………………………………………

8.9 SUMMARY
The unit raises two very important constructs in consumer behaviour. The first relates
to the very basis of buying i.e., motive. The unit defines the motive as the goal or
purpose of doing what the consumer does. It is the role of the marketer to find out
what could possibly be the motive or provide one if the consumer does not seem
to have one. The process of motivation is guided by a variety of principles ranging
from instinctive theory to the cognitive or the balance theory of motivation. The
second issue is that of involvement in buying. The term refers to the energy level
felt or perceived by the consumer in buying that forces the consumer to participate
in the process of decision making. The involvement too, again could be of several
types and the marketer can exploit them or activate them with persuasive message.
The unit also describes a process of measuring involvement.

8.10 KEY WORDS

Cognitive Dissonance: A state of tension created when the beliefs or behaviour
conflict with one another.
Drive: The desire to satisfy a biological need.
Ego Involvement: The importance of the purchase to the self-concept of the
consumer
Expectancy Theory: “The perspective that the behaviour is largely pulled by the
expectations of achieving the desirable outcomes.
Involvement: The perceived personal importance of a given stimulus for a buyer
in a given situation.
Inertia: The process by which the decisions are made out of habit without engaging
in information search or alternative evaluation.
Motivation: An internal state that activates the goal related behaviour.
Perceived risk: The belief that the use of a product has potentially negative
consequences.

8.11 SELF-ASSESSMENT QUESTIONS

1) Define the term consumer motive. Do the psychogenic motives have superiority
over the physiological ones? Use examples to justify your answer
2) Critically analyse the Maslow’s hierarchy of needs theory. What are its major
148 limitations?
3) What is motivation and why is this idea so important to marketers? Consumer Motivation
and Involvement
4) Describe three types of motivational conflicts with example of each from a
contemporary marketing campaign of your choice.
5) Why involvement is so essential for the consumer behaviourist and marketers?
Can it have a bearing over the brand preferences?
6) What are some strategies marketers can use to increase consumers’ involvement
with their products?

8.12 PROJECT QUESTIONS

1. Our online behaviours also can satisfy needs at different levels of Maslow’s
Hierarchy of Needs, when we participate in social networks such as YouTube,
Facebook.
(a) What needs do these sites appear to satisfy? Enlist in view of Maslow’s
hierarchy of needs
(b) Identify new product ideas for social media
2. Identify five advertisement that in your opinion seek to
(a) activate the reasons for purchase and
(b) raise the level of involvement in the purchase. Now compare these attempts
with what has been mentioned in the unit as the strategies.

8.13 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.

149
 Block-3
Group Influences on
Consumer Behaviour
BLOCK 3 GROUP INFLUENCES ON
CONSUMER BEHAVIOUR
Building upon the group variables, introduced in Unit 1 of the course, this block
discusses the influences on consumer behaviour, that emanate from his membership
or identification with various groups, be they reference groups, primary groups like
family or composite groups like culture and subculture. The influences have been
dealt with as both affecting brand and product choice and as determinants of some
individual variables like attitudes, perceptions, and learning.

Unit 9 REFERENCE GROUP INFLUENCE AND GROUP DYNAMICS

UNIT 10 FAMILY BUYING INFLUENCES, FAMILY LIFE CYCLE AND
BUYING ROLES
UNIT 11 CULTURE AND SUBCULTURAL INFLVENCES
Group Influences on
Consumer Behaviour

154
 Reference Group Influence
UNIT 9 REFERENCE GROUP INFLUENCE and Group Dynamics

AND GROUP DYNAMICS

Learning Outcomes

After going through this unit, you should be able to:

 explain the role of reference groups in group dynamics, and their effect on
buyer behaviour

 describe the opinion leadership process

 explain the motivations and personalities of those who influence the consumer,
i.e., the opinion leaders, and also of those who are influenced, i.e., the
opinion receivers.

 examine the influence of social class and social stratification on consumers’

lifestyle characteristics and buyer behaviour

 apply your knowledge of Reference group influence in your marketing

decisions

Structure

9.1 Introduction
9.2 The influence of Reference Groups
9.3 Types of Reference Groups
9.4 Reference Group Influence on Products and Brands
9.5 The Role of Opinion Leadership in the Transmission of Information
9.6 The Dynamics of the Opinion Leadership Process
9.7 The Personalities and Motivations of Opinion Leaders
9.8 The Concept of Social Class: Its Nature and Meaning
9.9 Social Class and Social Stratification
9.10 Social Class and Social Influences
9.11 Social Class Categorisation
9.12 Relationship of Social Class to Lifestyles
9.13 Social Class and Buying Behaviour
9.14 Social Class and Market Segmentation
9.15 Summary
9.16 Key Words
9.17 Self-Assessment Questions
9.18 Project Questions
9.19 Further Readings
155
Group Influences on According to Counterpoint Research’s Market Lens consumer study, over half
Consumer Behaviour
of all smartphones sold in India in 2021 were purchased online, up to more
than one-third last year. The COVOD-19-induced social isolation and work-
from-home circumstances attributed to this alteration in purchase behaviour.
Surprisingly, the source of information on smartphones has shifted as well.
When it came to making a smartphone purchase choice, consumers relied more
on YouTuber videos and the opinions of technology influencers than on word
of mouth and friends/family. When it came to making smartphone purchasing
decisions, internet reviews and articles were also overlooked in favour of
comparison on websites and TV commercials.

9.1 INTRODUCTION
‘There are a number of factors that give rise to consumer desires and wants. In
the Unit 10 you will learn how families create significant effect on buying behaviour.
In this unit, the discussion is limited to the social and environmental variables that
influence the decision-making process namely, reference groups, opinion leadership
and social class.

9.2 THE INFLUENCE OF REFERENCE GROUPS

What do we mean by a Reference Group?
In simplistic terms, reference groups include all those that we refer toconsciously
or unconsciously or are influenced by, either through interaction or indirect impact,
This section deals with various aspects of the dynamics of reference group influence.
You would know from your personal experience that, influential people in your life
have helped to shape your buying decisions. You will find that this holds true for
items like clothing, for instance, that must be acceptable by your peer group. A
major reason for studying groups is that interaction among people modifies behaviour.
Reference groups influence consumer behaviour in two ways:
1) They set levels of aspiration for the individual, i.e., they offer cues as to what
lifestyle should be led
2) They define items appropriate for a member of the group to lead that lifestyle.
You had learnt earlier on, that, reference groups are defined as groups that a
person refers to, and identifies with, to the extent that the group becomes a norm,
standard or point of reference. A reference group is, in other words, a group to
which a person will compare himself or herself, to determine his or her own relative
standing. Consumers also look to reference groups for guidance and advice.
Reference groups are usually small groups, and are not as broad as an entire social
class. The reference group concept was, in fact, originally developed in connection
with small groups. These include the family, close friends, neighbours, religious groups,
work groups and also, athletic groups. The family is recognised as an important
reference group. In addition, various family members may play different roles in
the purchase consumption process. Like the family, there are several other social
groups that have an enormous influence on our lives. They regulate our lives through
establishing standards of dress and conduct, and the accomplishment of tasks on a
156 face-to-face basis.
Issues of importance to marketing concerning reference group influence include: Reference Group Influence
and Group Dynamics
 What influence do reference groups exert on individuals?
 How does reference group influence vary across products and brands? These
two issues will be discussed in the following sections.
How Reference Groups Influence Consumption
Reference groups affect consumers through a variety of means: through norms, through
information, and through influencing the value expressive needs of consumers. They
influence consumers through bringing about attitude changes, by encouraging the
expression of certain values and attitudes expressed through the group. Because
an individual wants to be a part of a group, he or she will be influenced by the
values and attitudes of the group. Furthermore, groups whose members exhibit similar
social characteristics are more susceptible to attitude change on account of the group
interaction, than groups whose members are less homogeneous. Thus, people
frequently buy products that others in their group buy. You must remember, of course,
that individuals who feel a strong sense of identification with a group do so
because they derive strong psychological or material benefit from being
associated with the group.
Reference groups also influence consumption through norms and conformity
pressures. All members of a group must adhere to the norms established for that
group. To enforce normative systems, groups tend to exert conformity pressure,
direct or indirect, on their members. For example, teenager peer groups exert pressure
on members’ choice of clothing. Conformity pressure is common in everyone’s
personal experience. Of course, it is possible that the pressure to conform can
produce the opposite effect and may not uniformly accepted.
Levels of Group Involvement: In addition, there are three processes or levels
of group involvement. These have been termed as compliance, identification and
internalisation.
Compliance involves only overt behaviour on the part of the individual and makes
no demands on personal beliefs and attitudes.
Identification represents a closer, more dependent relationship than that implied
by compliance. In identification, the individual complies to maintain a social relationship.
Identification also reinforces the self-perceptions of individuals.
Internalising the values of the group occurs at the third stage. In internalisation,
consumers enforce the values of the group even in its absence.

Activity 1
Have you been affected by reference group Influence in any of the following
choices?
A) Formal attire
B) Membership of a Gym
C) Restaurants
D) Passenger Cars/ Two-wheelers
157
Group Influences on
Consumer Behaviour If yes, identify the different reference groups which influence you and briefly
describe how did they influence you.
A) ……………………………………………………………………………
……………………………………………………………………………………
B) ……………………………………………………………………………
……………………………………………………………………………………
C) ……………………………………………………………………………
……………………………………………………………………………………
D) ……………………………………………………………………………
……………………………………………………………………………………

9.3 TYPES OF REFERENCE GROUPS

There are many different types of reference groups, and they do not need to be in
physical contact in order to be effective. Often, individuals called referent others
will serve in a reference group role. Figure 9.1 shows the existence of four types
of reference groups that you should be familiar with. The groups are:
1) Membership or Non-membership groups: Membership groups are those
to which an individual belongs. In contrast, non-membership groups are those
that an individual may aspire to belong to.
2) Formal or Informal Groups: This depends on whether reference group tend
to take on a formal or informal structure, as you see in Figure 9.2.
3) Primary or Secondary Groups: A group may be primary or secondary
depending on the frequency of contact. Primary groups can be either formal
or informal groups. If a person is in regular contact with certain individuals such
as families, friends, peers and business associates, then these can be referred
to as primary informal groups. Secondary formal groups meet infrequently; are
well structured and not so closely knit. Thus, shopping groups and club
membership groups constitute secondary groups because of their less frequent
contact.
4) Aspiration groups are classified into two types: Anticipatory aspiration groups,
or those that a person anticipates joining at some future time. The appeal of
the group is in the anticipation of eventually arriving at the top. Symbolic
aspiration groups are those that an individual is not likely to belong to, such
as professional sports groups, even though the person may be attracted to them.
Marketers appeal to symbolic aspirations by using celebrities to advertise certain
products.
Each type of reference group has importance in marketing, depending on the type
of influence exerted. The common factor among these various types of reference
groups is that, each is used by consumers as a point of reference at different times,
158 to evaluate actions, beliefs and attitudes.
Primary groups are more important to the consumer in developing product beliefs, Reference Group Influence
and Group Dynamics
tastes and preferences and have a more direct influence on purchasing behaviour.
As a result, advertisers frequently portray consumption among friends or, within a
family context, such as a family eating breakfast or, in some other group setting.
Figure 9.1 Types of Reference Groups

Figure 9.2 Distinctions between Types of Reference Groups

Reference Group Functions and Types of Influence Exerted

It is possible to further classify reference groups into four types, depending on the
function they perform and the kind of influence they exert.
By now it will be clear to you that, reference groups operate by establishing certain
norms, roles and status within the group for members to follow. As explained earlier,
159
Group Influences on norms are unwritten codes or, standards of conduct that are assigned to individuals
Consumer Behaviour
within the group. In addition, specific roles have been identified in group purchasing
behaviour in the attempt to select the best among alternative brands or makes of a
product. These are described as those of the influencer, the gatekeeper (i.e.,
the individual who has the maximum control over the flow of information), the
decision- maker, the purchaser and, the final user.
Status positions have also been designated within a group. High status of members
within a group implies greater power and influence. Products are sometimes purchased
to demonstrate status, for example an elegant dress or, an expensive car.
The influence exerted by the group depends on the type of reference group it is.
There are four general types of groups namely, normative, comparative, status
and dissociative groups.
Normative Reference Groups
These are group whose values, norms and perspective an individual uses in defining
a personal social situation. Norms represent shared value judgements about how
things should be done by members of the group. For example, dress codes indicate
the impact of normative influence on clothing. Similarly, norms influence how much
a person eats or drinks at a party.
Normative influence refers to the influence exerted by a group to conform to its
norms and behaviour. A group can exert normative influence in the purchase of clothes,
furniture and appliances because these items are visible. Normative influence may
also occur for itemslike mouthwash, even though such items are not visible, because
of fear of punishment of non-acceptance by the group. However, normative influence
is not likely to occur for products like vegetables,or dishwash liquid though
informational influence could occur in such cases. Since normative influence is based
on the desire of an individual to receive the rewards of the group, the influence
exerted by the group in such is also termed as utilitarian influence.
Comparative Reference Groups
Consumers constantly compare their attitudes to those of members of their important
groups. In doing this, they seek to support their own attitudes and behaviour. As a
result, the basis for comparative influence is the process of comparing oneself to
other members of the group and judging whether it will be supportive. You will find
that new residents in a neighbourhood are attracted to neighbours who are similar
to themselves because they reinforce existing attitudes and behaviour. You will also
find this in advertising that uses spokespersons whom consumers perceive as being
similar to themselves.
The function of comparative reference groups is to provide a basis for validating
beliefs, values and attitudes. Furthermore, in terms of reference group theory, it is
not necessary for consumers to be in direct social contact with a reference group
in order to be influenced by it.
In the case of comparative reference groups, value-expressive influence occurs
when the group is used to express certain values. For example, smoking cigarettes
in reference groups where it is okay to smoke, is a type of value expressive influence.
In fact, expressing the values of the group is a good way to become accepted by
160 the group and form a close association with it.
Dissociative Reference Groups Reference Group Influence
and Group Dynamics
These are negative reference groups. They are negative to the extent that an individual
does not wish to be identified with them and, therefore, tries not to behave or dress
like members of the dissociative group.
Such dissociation from a group may occur when individuals are striving to move
into the higher social classes. They may attempt to avoid buying the products and
services used by the dissociative group, i.e., the social class that the consumer is
attempting to leave.
Status Reference Groups
These are groups in which an individual seeks acceptance. An individual need not
be a member of such a group in order to be influenced by it. In fact, when a person
is not a member of the group, it is referred to, in such cases as an aspiration group.

Activity 2
Evaluate any two of your recent purchases, one a consumer durable and the
other, a non-durable, where you feel that you have been influenced by reference
group. Try to analyse what was the type of influence, whether normative,
comparative or dissociative that you felt, was exercised by the reference groups.
Product 1
....................................................................................................................
....................................................................................................................
Product 2
....................................................................................................................
....................................................................................................................

Reference Groups, Social Influence and Social Power

The influence of social class as well as of reference groups on consumer behaviour
is felt through the influence of social power. The nature of the social power of these
groups on consumer behaviour can best be understood by examining the various
bases of power. These are five bases of social power. These are:
1) Reward Power
This is the ability to give rewards. Rewards may take several forms: money,
gifts, psychological rewards such as recognition and praise. The magnitude of
the reward also increased with the amount of power. In some situations, the
use of products offers the rewards of group acceptance, for example clothing.
2) Coercive Power
This is the ability to give threats, or withhold rewards. An individual can thus
be threatened or coerced to behave in a particular manner, for example in
purchasing accepted clothing. Deodorants, mouthwash, life insurance, are also
sold frequently by using coercive power.
161
Group Influences on 3) Legitimate Power
Consumer Behaviour
Legitimate power is closely linked to cultural or group values and involves the
sanction of what ought or should be done, because the group has a legitimate
right to influence persons just because they belong to it.
4) Referent Power
The basis of referent power is the identification and feeling of oneness of the
person with the group. It arises because a person admires or would like to be
associated with the group. Referent power is often used to buy status-oriented
products. Consumers are urged to obtain a similar status by purchasing the
item recommended.
5) Expert Power
Consumers accept information from members within a group whom they perceive
to be experts.
Marketing applications can be seen in the use of sports stars in the ads for
sports shoes, pain killers and even casual apparel.
From these various bases of power, it appears that a person may be attracted to
and conform to group norms either, in order to gain praise or recognition or in
response to coercive power.
Factors Affecting the Influence of Reference Groups
Reference groups influence is accepted and sought by individuals because of the
perceived benefits that it provides. Thus, the interaction may result in rewards of
friendship, information and satisfaction. However, the degree of influence that
areference group exerts on an individual’s behaviour depends on several factors.
1) How Informed and Experienced the Individual is: A person who has little or
no first-hand experience with a product or service, and also little or no information,
will tend to rely on reference groups. Where there is insufficient experience or
information, a consumer is more susceptible to the influence of others.
2) Reference Group Credibility: The higher a reference group is rated on
credibility, the more powerful it will be perceived to be, and the more it will
tend to change the beliefs, attitudes and behaviour of consumers. Also, the more
it will be used for information on product quality.

9.4 REFERENCE GROUP INFLUENCE ON

PRODUCTS AND BRANDS
Individual often buy particular brands because they observe others buying them,
and not necessarily in order to comply with group behaviour. At social gatherings
too, people discuss at lengths, products they like and dislike, recounting personal
experiences with products they have used. The use of social media has added a
new dynamic to this situation, as consumers are quite vocal about their product
experiences and brand ratings on social media and user endorsements have become
another important source of reference influence. It is necessary to consider carefully,
therefore, how much influence reference groups are likely to have for a product or
162
service. Those products or services that have strong group usage or connotation Reference Group Influence
and Group Dynamics
should then be presented in a group context in advertising situations.
It has been suggested that reference group influence on both, product and brand
decisions is a function of its conspicuousness. Conspicuousness affects the marketing
of goods depending on how products and brands fit into different categories of
conspicuousness. There are two dimensions or elements by which conspicuousness
is assessed. These are the exclusivity and the visibility of a product. The exclusivity
dimension refers to exclusivity in ownership of the product. This means that, if everyone
already owns a product, it is less conspicuous than if only a few people own it.
For example, when a maker of designer shirts asserts only 11 men in this world
will wear this shirt, he by deliberately restricting his output per pattern in imparting
exclusivity to the product. You see, in Figure 9.3. The exclusivity dimension of
conspicuousness is represented in terms of necessity goods to the left versus luxury
goods at the right. This means that products that are necessities will be owned by
most consumers and will not be very conspicuous. Products that are luxuries will
be owned by the fewer consumers and will be more conspicuous.
The other is the visibility dimension. This refers to the product and brand being
seen and identified by other people. This has its effect primarily on brand decision.
Figure 9.3 Reference Group Influence on Product and Brand

The visibility dimension of conspicuousness is built into the diagram as a public-

private dimension. This means that products consumed in public are more
conspicuous, while products consumed in private are less conspicuous. If you apply
both these dimension, you will get four categories of products. For public luxuries,
the potential for reference group influence is high. This occurs because few people
own these products in the first place. In addition, since such products have high
visibility, the brand or model will also be noticed.
For private luxuries, fewer people own these, so that, having the product will by
itself provide exclusivity benefits. However, since such products are not easily
seen by others, the brand or style will be less influenced by others. 163
Group Influences on For public necessities, reference group influence will not be very strong on the
Consumer Behaviour
product. However, because of product visibility, reference group influenceon
the brand will be strong.

Consider wrist watches, which are labelled public necessities. Because they are
owned by most people, there is likely to be little reference group influence on whether
to wear a watch. However, because they are easily visible and everyone can see
whether a person is wearing a wristwatch, the brand may be susceptible to reference
group influence.

For private necessities, products that are required by almost everyone, reference
group influence will be weak on both the product and the brand because such items
are not very visible.

Reference group influence will therefore vary depending on whether the products
and brands are public necessities, private necessities, public luxuries or private luxuries.
According to reference group theory, group influence is greatest for luxury goods
that are consumed publicly, and least for necessities that are consumed privately.
Using the typology shown in the matrix; the following conclusions about reference
group influence can be drawn:

1) Influence on Product and Brand (Public Luxuries)

Certain groups are more likely to allow smoking, than others. If smoking is the
norm, the group is likely to express a preference for a certain brand. Reference
group influence is therefore likely to be strong for both the product and the
brand.

2) Influence on Product only (Private Luxuries)

Some product categories are so distinctive that owing them is sufficiently

representative of group standards, for example, air conditioners, and home
security systems. Once a family buys a home security system, for instance, friends
and neighbours will come into contact with the recently acquired product and
the pattern of ownership will spread within the group.

3) Influence on Brand only (Public Necessities)

There are some products that are used by almost everyone. For example,
clothing, furniture, toilet soaps. In such cases, the product is not subject to group
influence. The brand becomes an important factor subject to group influence.
Thus, one group may emphasise designer clothes as a distinguishing feature.
Another may emphasise leisure wear.

4) No Group Influence (Private Necessities)

Some products have low social visibility for both the product and the brand.
In such cases reference group influence is weak or absent. Such products are
then bought on the basis of product attributes suitable to the consumer. Products
low in visibility, complexity and perceived risk such as bread, are not likely to
be susceptible to personal influence.

Now, see if you can do the following exercise

164
 Reference Group Influence
Activity 3 and Group Dynamics

In the space below, write down the names of groups of which you are a member,
for example, your family. For what products does each group influence your
behaviour as a consumer? Write down also, the type of group you believe it
to be.

Reference Group Applications in Marketing

The reference group concept is used by advertisers to persuade consumers to purchase
products and brands by portraying products being consumed in socially pleasant
situations, or else, using prominent and attractive people to endorse products and,
often, by using stereotype group members as spokespersons in advertising.
Where reference group influence is operative, it is necessary that the advertising
should stress the kinds of people who buy the product and, therefore, what specific
reference groups enter into the product purchase decision. The first objective for
an advertiser is to identify the lifestyle characteristics of a reference group. It will
then be possible for marketers to design effective advertising strategies.
There are three broad applications of reference group influence on buyer behaviour,
as expressed through the medium of advertising:
1) Use of celebrities for product endorsements
Advertisers spend enormous amounts of money on celebrities in the expectation
that their audiences will react positively to a celebrity’s association with their
product. Celebrities represent, to some extent, the idealisation of life for the
consumer.
2) Use of experts for product endorsements
A second type of reference group appeal used in advertising is to use persons
who are experts in the field. Experts help prospective consumers to evaluate
an advertised product.
3) Use of spokespersons for product endorsements
A third type of reference group appeal is that of the spokesperson. This is the
common man’ appeal. It demonstrates to the consumer that someone just like 165
Group Influences on him or her uses and, is satisfied with the product. The common man appeal is
Consumer Behaviour
especially effective in public health announcements because, most people seem
to identify with people like themselves, when it comes to such messages.
These reference group appeals have two benefits to advertising. They provide frames
of reference for consumers. Moreover, their use results in increased brand awareness
because they draw attention to the product through their own popularity.

9.5 THE ROLE OF OPINION LEADERSHIP IN

THE TRANSMISSION OF INFORMATION
Having identified the reference groups, marketing strategies need to focus on identifying
and communicating with key persons in the groups, namely, the influential or opinion
leaders and, the innovators or early buyers.
Every group has a leader, or more, specifically, an opinion leader: Opinion leadership
has been defined as the process by which one person, the opinion leader, informally
influences the actions or attitudes of others who may be opinion seekers or opinion
recipients who pass on information are known as opinion leaders. They exert a
personal influence on others because they know more about the product or service
either from advertising, or from conversations with people who have had some
experiences, or else, from their own personal experiences with the product. The
phenomenon of opinion leadership is interesting to marketers if we accept the
assumption that there are opinion leaders or influential who act as sources of
communication and, other consumers who behave as receivers.
Opinion leadership is not rare. At least fifty to seventy per cent people are opinion
leaders and also opinion receivers. Since existing friendships provide the opportunities
for product-related informal conversations, opinion leaders are often friends,
neighbours or work associates.
Because of the effect that opinion leaders are known to have on the behaviour of
other individuals, it is believed that directing persuasive communications to this segment
is more fruitful.

9.6 THE DYNAMICS OF THE OPINION

LEADERSHIP PROCESS
How does communication flow from person to person? How does this information
flow from the mass media to the general population? Are there opinion leaders who
mediate this transmission of information?
The process of opinion leadership has been described in simple terms as the two-
step flow of communication. According to this, ideas flow from the media to opinion
leaders and, from there to the general public. This two-step flow of communication
portrays opinion leaders as direct receivers of information from impersonal marketing
sources and, they therefore, serve as a vital link in the transmission of information.
The two-step flow theory has subsequently been modified into the more complex
model of multi-step flow. This takes into account the fact that, social interaction
between people serves as the principal means by which information is transmitted.
In other words, the mass media alone, are not responsible.
166
According to the multi-step flow model, information is transmitted by the mass media Reference Group Influence
and Group Dynamics
to three distinct sets of people namely, the pinion leaders, the gate keepers and the
opinion receivers or followers. Communications can be transmitted back and forth
between these three groups.
Figure 9.4 The Opinion Leadership Process

As the multi-step flow model suggests, opinion leaders do not influence a passive
group of followers.
This influence is, moreover, informal and interpersonal. In this process one party,
the opinion leader usually passes on information and advice. The kind of product-
related information that opinion leaders are likely to transmit are:
1) How to use a specific product
2) Which of several brands is best
3) Which is the best place to shop.
4) What are the new products/brands introduced
Opinion Leadership and Product Specificity
Opinion leadership is, however, product specific. Thus, an opinion receiver for one
product category may become an opinion leader for another. He. However, opinion
leadership for related product categories does show a tendency to overlap. For
example, people who are opinion leaders for small appliances may also be opinion
leaders for large appliances.
Opinion leaders do not, however, seem to exert their influence across a range of
unrelated product categories. This tends to happen because, since opinion leadership
is a two-way process, an opinion leader who is knowledgeable about a particular
product can very well become an opinion receiver for some other product.
Opinion leaders has been found to be a function of interest and personal expertise
in a particular area. Opinion leaders tend to specialise in certain product categories
about which they offer information and advice. Thus, for instance, you would find
that, opinion leadership in fashion is not necessarily associated with opinion leadership
in another area such as kitchen appliances. Again, opinion leaders for dental products
are not necessarily influential in other areas. 167
Group Influences on
Consumer Behaviour 9.7 THE PERSONALITIES AND MOTIVATIONS
OF OPINION LEADERS
Personality Profiles of Opinion Leaders
Can opinion leaders be profiled on the basis of any distinctive characteristics?
This is important for marketers because, if they are able to identify and
target the opinion leaders for their product, they can influence the
consumption behaviour of others.
It has been found that opinion leaders tend to be more involved with the product
category. They have a keener level of interest, read more special interest magazines
and are consequently more knowledgeable about the product category. They also
tend to be more innovative about their purchases than their followers. They have
local friendships and social interaction and, are therefore more active in disseminating
information. In addition, opinion leaders are higher on credibility because they are
perceived as neutral sources. They base their advice frequently on first hand exposure.
Opinion leaders are also more non-conforming, more self- confident, more sociable
and cosmopolitan and, also socially higher on perceived risk.
What Motivates Opinion Leaders?
Three reasons have been suggested as the forces motivating opinion leaders. One
is that, they may use conversations as a dissonance reducing process for products
they have bought. Or they may want to influence a friend or neighbour. Another
reason can be self-involvement, when they may want to confirm their own judgement.
Demographic Characteristics of Opinion Leaders
Some studies have shown that opinion leaders tend to be younger, often with more
education, higher incomes and higher occupational status. Opinion leaders for movies
tend to be young and single. Those for food purchases have been found to be
predominantly married. In contrast, those for giving information and advice on medical
services are predominantly unmarried.
Media Exposure
Can opinion leaders be reached through any specific media? Yes. Some studies
indicate that opinion leaders possess a keener level of interest for particular product
categories and, specific media, than opinion receivers in general. Opinion leaders
are more exposed to the media. This is particularly true of media reflecting their
areas of interest. Opinion leaders go to more movies and watch more television,
more avid users of social networking sites. They also read more magazines. There
is more exposure relevant to their areas of interest. They also have greater readership
of special and technical publications or sites devoted to the product category. Such
special interest magazinesand media sites place them in a better position to make
recommendations to relatives, friends and neighbours. It is not necessary, however,
that opinion leaders have more exposure to the mass media in general.
Digital Opinion Leaders
Digital media technologies have made the content creation easier and information
sharing faster. Moreover, comments or retweets are measurable and identifiable on
168
social networking sites. Social media analytics app Klout claims to precisely measure Reference Group Influence
and Group Dynamics
just how influential each of us is in cyberspace. “Klout Score”, the numerical value
between 1 and 100 can be assigned to anyone who is online. Higher Klout score
indicates the high level of influence of the users in online social networks. Digital
opinion leaders are sometimes also called as power users. They have a strong
communications network that gives them the ability to affect purchase decisions for
a number of other consumers, directly and indirectly.

Activity 4

Talk to some opinion leaders in your own circle for different product or service
categories like electronic gadgets, entertainment, restaurants and holiday
destinations to find out what are the reasons that motivate them to act as opinion
leaders. Do the reasons vary across product categories?

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9.8 THE CONCEPT OF SOCIAL CLASS:

ITS NATURE AND MEANING
Nearly everyone has some impression of a system of social class and of their own
position within that system. This is because, occupationally as well as by education,
some people are better off than others and have more prestigious, higher status
occupations. You will find this in the case of doctors, lawyers and civil servants,
for instance.

When social class is mentioned, however, some people at least, feel uncomfortable
about the realities of life that it reflects. Within a marketing context, social class is
worth thinking about because of the insights it offers on the market behaviour of
consumers, and on the existence of market segments. Social class influences affect
various aspects of products that we aspire to own such as colour, styling, what
preferences we might have for product sizes, what type of stores we will shop at,
and how we go about the shopping process.

169
Group Influences on What is Social Class?
Consumer Behaviour
Social class refers to the social position that an individual occupies in society. Thus,
your social standing is a result of characteristics you possess such as education,
occupation, ownership of property and source of income, as you see illustrated in
Figure 9.5. This leads to the division of society into a hierarchy of social classes
ranging from high status to low status so that, members within each of the social
classes have relatively the same status as each other.
Figure 9.5 Social Standing: How it is Derived and How it Influences Behaviour

This hierarchical aspect of social classes is important to marketing because consumers

in a particular social class develop preferences and consumption patterns that are
unique to them. As a result, they tend to purchase certain products because they
are favoured by members of their own social class or a higher social class. They
might also be found avoiding some products because they are perceived to have
associations as lower-class products. Consistent with this behaviour, social class
has been defined as the relatively permanent and homogeneous divisions or
strata in society, which differ in their status, wealth, education, possessions,
values, beliefs and attitudes, friendships and manner of speaking.
Status differences also exist between the social classes in terms of diverging amounts
of prestige, power and privilege. Social class is used in fact, to describe status
differences and social value systems in a society. The term status is used to convey
the idea that different positions in a society have different values to it. Status is, in
other words, a socially identified position, along with a socially ascribed role,
that results in particular patterns of behaviour for individuals.
The concept of social class involves families rather than individuals. A family shares
many characteristics among its members that affect its relationships with outsiders
namely, the same house, a common income, and, similar values. This means that, if
a large group of families are approximately equal to one another and closely
differentiated from other families, we call them a social class. Thus, social class
could be considered as resulting from large groups in a population sharing
approximately the same lifestyles, who are stratified according to their social status
and prestige.
Behaviour is restricted so that members of a social class tend to socialise both formally
and informally with each other, rather than with members of other classes. Social
class associations also tend to occur in class related patterns. Interactions with-
friends and relatives vary according to class membership and the kinds of people
with whom a person associates in the course of work. In this way, an individual’s
sense of belonging is constantly reinforced by the people with whom that person
interacts.
170
 Reference Group Influence
9.9 SOCIAL CLASS AND SOCIAL STRATIFICATION and Group Dynamics

The term social stratification refers to groups or strata of people. People within
any social stratum tend to view those in other social classes as being socially superior
or inferior to themselves. It is in fact, well known that, in any society, some groups
are treated with respect by others while, other groups are looked down on and,
treated less well. People who are ranked within the same stratum tend to share
interests and activities, and, to spend their work and leisure time together. Stratification
is found in some form or other in every society, and in all human cultures, by social
agreement. It derives its support from the prevailing cultural values. Since these
differ for different cultures, so do the details of the various stratification systems.
There are two ways in which stratification systems have resulted. One is by inherited
status, and the other is by earned status. While some amount of inherited status
is based on a person’s past, and is present in every stratification system, earned
status is based on a person’s actions and performance. There are two basic models
for social stratification, namely, the class and the caste system. The best example
of a caste system is found in our own country, particularly in rural society in India,
where it is documented as having existed for several thousands of years. The caste
system relies on inherited status, and reflects sharp boundaries, with no social mobility.
Cultures in which the caste system and, therefore, inherited status dominant tend
to be closed systems while those in which earned status in dominant tend to be
open systems with social mobility. Closed systems have sharp boundaries and are
traditional. Social distance is considered proper, and socialising between the classes
is discouraged.
In the relatively more open class system, social class membership is not hard and
fixed. This means that individuals can move up or down in social class standing,
from the class membership held by their parents. Because upward mobility is possible
in a society and depends on education and opportunities, the higher social classes
tend to become the reference groups for members of lower social status.
The significance of social stratification is that there are differences in values and
attitudes of each of the classes. These differences are reflected in their lifestyles
and their purchasing patterns and consumption characteristics and, therefore, provide
a basis on which to segment the market.

9.10 SOCIAL CLASS AND SOCIAL INFLUENCES

Social influence pertains to the extent to which we are aware of other people and
groups while making decisions, and the extent to which they influence the decisions
that we make. Certain products are associated with particular social classes and
individuals and, these in turn, are used as a reference point by others.
Type of Social Influence
There are two types of social influence. First, there is normative social influence.
This involves the influence of social factors in the decisions that consumers make.
The pressure of normative social influence can be so strong that, it may frequently
lead to consumer conformity, i.e., consumers acting like sheep and striving to be
accepted by buying only socially approved products and brands. In the marketing
system consumer conformity is indirectly encouraged because the process of mass
171
Group Influences on production results in similar goods being made available at dramatically lower-costs,
Consumer Behaviour
and along with social influence, this is strongly suggestive of pushing consumers towards
conformity.
A second type of social influence is informational influence. Consumers often obtain
information from other people and groups about products, stores, movies and
restaurants, for instance. They may be influenced by such information but do not
necessarily feel pressured to behave in any particular way.
Information may be given directly through various types of verbal or other
communication or, indirectly, through observation. For example, a friend may tell
you that he has purchased a cross pen, likes it very much and suggests that you
too, should buy one. This is direct communication. Alternatively, you may see a
friend smiling while using such a pen, infer that it is good, and consider purchasing
one yourself. This is indirect communication.
Informational influence can, moreover, occur in three different situations. As an
individual you may seek out information or a reference group member may simply
volunteer information or the information may be transmitted through observation.
Informational influence tends to come primarily from personal rather than just
commercial sources, even though these are (for certain category of products) also
important. This is because consumers rely more heavily on friends, neighbours and
family members rather than on advertisers or sales persons in obtaining product
information. The reason for this is that, personal sources seem to be more credible
than impersonal commercial sources.
Both these forms of social influence work through the process of social identification
of consumers. This so-called consumer identification reflects the orientation of
consumers and the need to identify with a desirable group or persons. Consumer
products frequently serve as external symbols of this identification process.
Now see if you can complete the following exercise:

Activity 5
The upper and lower classes are known to differ in the way they view the
world and themselves. Try to identify and list down three psychological differences
that separate the upper classes from the lower classes. In each case name the
products that you think are bought predominantly by the members of these
social classes.

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 Reference Group Influence
9.11 SOCIAL CLASS CATEGORISATION and Group Dynamics

As you noted earlier, identification of members within each social class is influenced
most heavily by education and occupation, including income, as a measure of work
success. But it is also affected by family recreational habits and social acceptance
by a particular class. Thus, social class is a composite of many personal and social
attributes rather than a single characteristic such as income or education.
Traditionally, social class positioning has been measured in terms of socio-economic
factors, namely, type and source of income (inheritance or salary), occupational
status, level of education, value of housing and quality of neighboured. Socio- economic
factors appeal to marketers because the information is easily collected as part of
any questionnaire. It is thus possible to prepare profiles of the potential target markets.
The number of categories of social class varies. They are ordered in a manner that
begins with some type of elite upper class and ends with a lower class. A variety
of different classification schemes has been developed, to rank the social classes.
A frequently used scheme is the well-known Warner’s Index of Status
Characteristics (ISC).
Warner’s Index uses four variables as indicators of social class. They are occupation,
income; house and dwelling area. Warner categorised the members in a society
into six classes as follows:
1. Upper-upper class
2. Lower-upper class
3. Upper-middle class
4. Lower-middle class
5. Upper-lower class
6. Lower-lower class
The percentage of population accounted for in each social class appears to fluctuate
but is concentrated in the middle and lower classes. The concept of mass marketing
can, for instance, be applied to the middle classes but not to the affluent upper-
upper class. The upper-upper is, however, a desirable target market for speciality
goods marketing by firms. Such goods can appeal to the cultivated tastes of a very
small number of affluent consumers.
In addition, four target groups have been identified by marketers for their use. These
include, as you see in Figure 9. 6, a broad upper class, a white-collar middle class,
an affluent working class and poorer lower class.
Figure 9.6 Requirements for a Social Class System

173
Group Influences on The social classes are described for marketing purposes, in terms of the social groups
Consumer Behaviour
from which they are drawn in society. On the basis of demographic factors, we
thus have:
The upper-upper social class: This is the wealthy, aristocratic, landed class. It
serves as a reference for the social classes below. It is not a major market segment,
because of its small size.
The lower upper social class: This is the newer social elite. Money is relatively
new. It is an achieving group, drawn from professionals and, includes the successful
and wealthy executive elite, doctors, lawyers and founders of large businesses. It
constitutes a major market for specialised luxury goods.
The upper-middle class: This class consists of the moderately successful. It consists
of the professionally educated managers, intellectual elite and successful professionals,
doctors, lawyers, and professors, owners of medium-sized businesses and managerial
executives, and also younger men and women who are expected to reach these
occupational status levels. Housing is important to this class, and also the appearance
of products in general.
The Lower-middle class: It is represented by the common man, and the highly
paid individual worker. It includes the small business owners and non-managerial
workers. Persons in this class tend to have high school educations and some college
education, but do not reach high levels in their organisations.
The Working Class: This is the largest of the social classes, and is composed of
skilled and semi-skilled workers.They are blue (Khaki) collar workers but have
sufficient money for consumer products, and along with the middle classes, they
represent the market for mass consumer goods.
Within each of these social classes, there are both, underprivileged and overprivileged
members depending on whether their incomes are above, or below, the average
for the class. For many products, the groups of interest to the marketer are the
middle and working classes, by far the largest segment of the market.

9.12 RELATIONSHIP OF SOCIAL CLASS TO

LIFESTYLES
An individual’s lifestyles, beliefs and values are based not only on his or her current
status but also on the status of his or her parents. The socialisation pattern creates
a tendency for individuals to live a certain lifestyle. Lifestyle characteristics are generally
assumed, therefore, to reflect social class, and are closely associated with it. Because
of this, it is possible to think of the social classes as subcultures where each class
has its own distinguishing mode of behaviour with its own values and lifestyles.
You will find that detailed breakdown of social classes is useful for investigating
the process by which consumers develop different values and behaviour patterns.
For example, the upper-upper class may be socially secure and not find it necessary
to purchase the most expensive brands to impress other people. The middle and
lower classes on the other hand may tend to engage heavily in conspicuous
consumption.
Lifestyle differences should therefore be considered when choosing appropriate
marketing appeals to communicate with members in these different social class
groupings. This does not imply that members of the same social class will necessarily
174 have homogeneous behaviour. In fact, it is observed that there is considerable variation
in the way individual members within each social class, realise their goals and express Reference Group Influence
and Group Dynamics
their values, in terms of their consumption pattern, if you go through Figure 9. 7
you will see how social class reflects lifestyle differences.

9.13 SOCIAL CLASS AND BUYING BEHAVIOUR

People’s buying behaviour is strongly influenced by the social class to which they
belong, or, aspire to belong, rather than by income alone. Social class measures
have also been linked to demographic and geographic data using the principle that
people of similar social classes live in geographic clusters.
The result is that relatively homogeneous geodemographic segments arise, in terms
of their housing, urbanisation and ethnicity.
Class differences in status are commonly symbolised by food, housing, clothing,
furnishings and even at religious gatherings. Particularly in societies where wealth
dictates status, possessions become a substitute indicator of an individual’s worth.
Social class and relative standing within a class also decide the kinds of purchases
with regard to house, car, clothing, food, furniture and appliances, consistent with
what is expected by their peers.
Figure 9.7 Life-style Orientation and Purchasing Tendencies of the Different Social Class

175
Group Influences on Buying Patterns and Motivations
Consumer Behaviour
The buying behaviour as well as the motivating forces underlying such behaviour
differ for the different social classes. Refer again to Figure 9.7. You will find that
the social classes differ in their buying behaviour patterns, thereby allowing companies
to target their products to particular, class-based, market segments.
The Upper-upper Class
Members of the upper class have access to property, prestige and power. Their
wealth allows access to prestige. Thus, a wealthy person can buy the right products
and services, join the right clubs and socialise with the right type of people. The
affluent upper class also has a disproportionately larger share of discretionary income.
They are therefore an especially attractive market segment for goods and services
such as leisure, designer clothing, and domestic as well as foreign travel.
The Lower-upper Class
This is the newly rich class. Their goal is to imitate the gracious living style of the
upper-upper class. This class is, therefore, strongly oriented toward conspicuous
consumption, and may be a significant market for luxury goods. Sometimes, the
use of certain products by the upper classes trickles down to other social class
groups.
This is referred to as the trickledown effect. The upper social classes are therefore
used in advertising, as reference groups for those below them. Furthermore, at each
social class level, there are members who constantly seek to achieve a higher status
by virtue of their possessions. You will see this illustrated in Figure 9.8 which indicates
the effect that this has on marketing strategy.
Figure 9.8 Upward Pull Strategy Targeted at Middle Class

You will find this in advertisements that show beautiful women in upscale surroundings.
Such advertising sells dreams to the lower classes.
The Upper-middle Class
This is the moderately successful class. They are usually members of clubs and also
have a broad range of cultural interests. Their motivations are towards achieving
176
success in their careers and reaching higher income levels. Their aspirational reference Reference Group Influence
and Group Dynamics
group is usually the upper classes.
The Lower-middle Class
The motivation of this group is to acquire respectability. They also desire to live in
well maintained, neatly furnished homes in good neighbourhoods. Products are bought
with social acceptance in mind.
Upper-lower Class
This class lives for the present. It looks horizontally within its own class for its values,
rather than upwards to the next social class.
Marketers are concerned with how the buying patterns of these social classes differ.
For the marketer, the social classes are appropriately seen as subcultures with distinct
lifestyles, buying patterns and motivations. The basic premise is that, their wants
and needs do not result from some indefinable subjective feeling on the part of
consumers. They are a product of social conditioning by the environment. The needs
of individual members within the social classes are therefore influenced by the social
activities in which they tend to get involved. The surrounding culture acts as a general
supportive framework for these activities.
Product choice and usage therefore differ among the social classes. Some products
and services such as vacations are bought mainly by the upper classes. Again, the
upper classes go more for products that provide identification, that are fashionable
and, represent good taste. The various social groups thus transmit the norms and
values of their social culture, to members on a daily basis.
Shopping Patterns and Search for Information
The reason for shopping has also been found to differ among the social classes.
The upper classes tend to shop more for pleasure. Because of this they also tend
to shop in stores with a sophisticated, highbrow atmosphere. For example, people
in this class are more likely to patronise exclusive boutiques for their apparel needs.
Social class thus seems to determine where to shop.
The social classes also differ in how much they search for information prior to and,
during shopping. The upper and middle classes tend to engage in more information
search prior to buying. For example, prior to purchasing appliance they will search
on websites, read more newspapers, brochures and test reports. In contrast, lower
class consumers are more apt to rely on instore displays and on salespersons. Lower
class consumers have less product information.
Advertising and Social Class
The upper classes respond to more sophisticated appeals that offer objects as
symbols related to status and self. Advertising to the upper classes is, therefore,
more effective when stressing abstract product benefits. Lower status people have
been found to be more responsive to advertising that depicts racial relationships
and offers solutions to practical problems in daily life. They respond to advertising
of a strong visual character, and straight-forward, literal approaches. Message
positioning thus become important when addressing members of the different social
classes.
177
Group Influences on
Consumer Behaviour 9.14 SOCIAL CLASS AND MARKET
SEGMENTATION
The social classes serve as a natural basis for marketers to segment the market for
their products and services. Social class has, in fact, been suggested to be a better
predictor of consumer lifestyles than income alone.
Social class has thus been found better than income for expressive types of consumer
behaviour such as private club membership, ownership of farm houses, type of
automobile owned, type of stores patronised, and also the particular brands purchased.
It is therefore necessary that, promotional messages, distribution channels and, retail
outlets be effectively related to social class membership. However, social class has
not always been successful in segmenting markets, and there has been a long
controversy as to whether social class or income is a better variable for segmentation.
The choice between the two appears to depend on the product and the situation.
Social class variable has been found superior to income variable for the purchase
of highly visible symbols and expensive objects such as living room furnishings. What
is important for market segmentation is that, within each social class, there will be
similarly shared values, attitudes and behaviour patterns.
Income has been found to be a better predictor for major kitchen and laundry
appliances and products that require substantial expenditure but are not status symbols.
Lastly, the combination of social class and income have been found superior for
product classes that are visible, serve as symbols of social status and require moderate
expenditure like television sets, cars and clothing.

9.15 SUMMARY
This unit focuses on the influence of group variables like reference groups, opinion
leaders, and social class. First of all, every human society has some type of social
class structure which divides its members into hierarchical groups. Within these social
classes, social groups tend to form, and it is these groups that are responsible for
transmitting the norms and behaviour patterns prescribed by society. Several factors
distinguish these groups including occupation, wealth, education, possessions and
values. Social class is not equivalent to occupation or income or any criterion, but
it may be related to one or more of these. In addition, reference groups also represent
important sources of social influence in consumer behaviour. However, reference
group influence varies.
Some products and brands are susceptible to reference group influence while others
are not, and this depends on the conspicuousness of the products. Conspicuousness
relates to both, the visibility as well as the exclusivity of concerned products.
Reference Group influence is greatest when both these factors are present, and
lowest when neither is present. Thus, when visibility is high but exclusivity is low,
reference group influence pertains more to the purchase of the product and less
to the brand.
In addition, there are opinion leaders who influence the decision-making of consumers
by providing information on products, and the process by which opinion leadership
functions is described as the multi-step flow of communication.
178
 Reference Group Influence
9.16 KEY WORDS and Group Dynamics

Social class : The division of members of a society into a hierarchy of

distinct status classes so that, members of each class have
relatively the same status, and members of all other classes
have either higher or lower status.
Social class hierarchy : The description of the social classes in terms of a
hierarchy of lower classes to higher classes.
Social comparison : The process by which people evaluate the correctness
of their opinions, the extent of their abilities and the
appropriateness of their possessions.
Reference group : A person or group that serves as a point of comparison
for an individual, in the formation of either general or
specific values, attitudes or behaviour.
Formal group : A group that has a clearly defined structure, specific roles
and specific goals and objectives.
Informal group : A group of people who see each other frequently on an
informal basis such as social acquaintances.
Primary group : A group of people who interact, meet and talk on a regular
basis, such as members of a family, neighbours or co-
workers.
Secondary group : A group of people who interact infrequently or irregularly.
Aspirational group : A group to which a non-member would like to belong.
Normative reference : A group that influences the general values of behaviour
group of an individual.
Comparative : A group whose norms serve as a benchmark for certain
reference group specific types of behaviour.
Conformity : The extent to which an individual adopts attitudes and/
or behaviour that are consistent with the norms of a group
to which he or she belongs or would like to belong.
Dissociating group : A reference group with whom a person does not wish
to be associated.
Compliance : The act of conforming to the wishes of another person
or group. Compliance involves conformity to the wishes
of the group without necessarily accepting the group’s
dictates.
Opinion leader : A person who informally influences the attitudes or
behaviour of others.
Opinion seekers : Individuals who either actively seek product information
from others or receive unsolicited information.
179
Group Influences on Opinion leadership : The degree to which people who are opinion leaders
Consumer Behaviour
overlap in one product category are also opinion leaders in one
or more other product categories.
Overprivileged : Individuals with high incomes within a particular social
class.

9.17 SELF-ASSESSMENT QUESTIONS

1) Define the concept of social class. Which type of social influence, informational
or normative, has a greater impact on consumer behaviour? Explain.
2) Do you think that social class or income would be a better segmentation tool
for the following products?

3) What is a reference group? Name two reference groups that are important to
you. In what way do they influence you in your purchasing behaviour?
4) What factors are important in reference group influence? Suggest four products
for which you think your reference groups would exert a strong or weak influence
with regard to the purchase of the product and the brand, and explain the reason
why this should happen.
5) Explain the two-step flow of communicationin the opinion leadership process
and also indicate how and why it has been modified.

9.18 PROJECT QUESTIONS

1. Describe two situations in which you served as an opinion leader and two
situations in which you sought information as an opinion seeker
2. How can marketers strategically use digital opinion leaders? Illustrate with
examples.
3. How would you describe your social status and social background or social
influencers? Comment on influence of social class on your recently made purchase
decisions.

9.19 FURTHER READINGS

1. Berkman, H.W. and Gilson C. (1986). Consumer Behaviour, Concepts and
Strategies,
2. Kent Publishing Company.
180
3. Fernandes, S., and; Panda, R. (2019). Influence of Social Reference Groups Reference Group Influence
and Group Dynamics
on Consumer Buying Behavior: A Review, Journal of Management Research
(09725814). Apr-Jun2019, Vol. 19 Issue 2, p131-142.
https://web.p.ebscohost.com/abstract?direct=true&profile=ehost&scope
=site&authtype=crawler
4. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
5. Niosi, A.Social Influences on Consumer Decision Making https://
kpu.pressbooks.pub/introconsumerbehaviour/chapter/social-influences
6. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
7. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
8. Patricia LUI,Influence of online consumer reviews on brand choice,2018 ,https:/
/ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7219&context=lkcsb_research
9. https://www.counterpointresearch.com/survey-online-channels-dominate-india-
smartphone-market/

181
Group Influences on
Consumer Behaviour UNIT 10 FAMILY BUYING INFLUENCES,
FAMILY LIFE CYCLE AND BUYING
ROLES
Learning Outcomes
After going throughthis unit, you should be able to:
 explain the nature of the family influences that operate on the purchase
behaviour
 describe how family decision-making is influenced by the role specialisations
of the members involved in the purchase decisions
 evaluate the impact of the family life cycle stages on consumption behaviour

 explain the implications of family decision-making for marketing strategy.

 apply the understanding of influence of family on buying behaviour in your

marketing decisions
Structure
10.1 Introduction: The Family as a Consuming Unit
10.2 Family Buying Influences: Nature and Types of Influences
10.3 Consumer Socialisation
10.4 Intergenerational Influences
10.5 Family Decision-Making
10.6 Family Role Structure and Buying Behaviour
10.7 The Dynamics of Family Decision-Making: Purchase Influences and Role
specialization
10.8 The Influence of Children
10.9 The Family Life Cycle Concept
10.10 Implications of Family Decision-Making for Marketing Strategy
10.11 Summary
10.12 Key Words
10.13 Self-assessment Questions
10.14 Further Readings

10.1 INTRODUCTION: THE FAMILY AS A

CONSUMING UNIT
As you have seen in the example Mr. Bannerjee buying a TV for his family that we
have discussed in Unit 1; consumer behaviour is influenced not only by consumer
personalities and motivations, but also by the relationships within families. You will
find this illustrated in Figure 10. 1. The family is such a familiar social unit that, it is
182
difficult to discuss it without appearing to discuss the obvious. Nevertheless, in this Family Buying Influences,
Family Life Cycle and
unit we will look at the interaction of the individual within the family and examine Buying Roles
those features that are of importance to marketing. A knowledge of family structure
and its consumption characteristics is,and the way family influences operate in fact,
a necessaryprecondition for successful marketing.
A family is typically defined as a household where people living together a related
to each other by marriage or by blood ties. From the marketing point of view, the
family differs from larger reference groups in that the members must satisfy their
individual and shared needs by drawing on a common and shared, relatively fixed
supply of resources. And for the individual, the family is the strongest, most immediate,
and most pervasive influence on decision- making.
Figure 10.1 Factors Influencing the Consumer Decision Making Process

Family Types
As a consuming unit to consider, the marketer is interested in the variety of living
arrangements that exist in the population. There are several types of families and
their buying requirements would differ subject to their structural variations. Here is
the nuclear family, which is termed as consisting of the husband, wife and their
offspring.
There is the extended family in which the family structure extends beyond the
nuclear family and includes other relatives such as the parents of the husband or
wife, aunts, uncles, grandparents and in-laws. The traditional household set-up in
India consisting of a joint family is an example of an extended family.
A more recent development is the rising proportion across the world of non-
traditional families, consisting of couples in live in relationships, which are significant
to marketers on account of the size as well as the relatively high income of the
segment. Single parent families are another significant segment of interest to marketer
The term family is actually a subset of the more general classification of household,
where the household comprises all those persons who occupy and share a housing
unit. The household thus covers a variety of living arrangements such as roommates
living in an apartment, and paying guest arrangements, all of which are of value to
the marketer as consumption units with differing consumption patterns. 183
Group Influences on
Consumer Behaviour 10.2 FAMILY BUYING INFLUENCES: NATURE AND
TYPES OF INFLUENCES
The Reciprocal Nature of Family Influence
The family is not just a social group. It is also an earning, consuming, decision-
making unit, and it is of importance to marketers because of the influence that family
members have on purchase and consumption decision. In this section we will consider
the various family related factors that have an impact on consumer decision-making.
The family’s influence comes from the fact that the bonds within the family are likely
to be much more powerful and intimate than those in other small groups. Because
of these bonds, the family has profound social, cultural, psychological and economic
influence on consumers. Within the family, operating as the unit of analysis, a
reciprocal influence operates on all decisions. There are three main sources of
influence in the family decision process. These are the father, the mother and other
family members.
Since a particular family may have several persons in the ‘other family members’
category, the decision process for a given family can be complex. Every family member
brings his or her own motives, evaluations, beliefs and predispositions to the decision
process. Every family member becomes part of the environment for the other family
members and, influences, and is influenced by them. And the cognitions, behaviour
and environments of the several persons become an important consideration for
the marketer, as do the interactions of the members among themselves. Not only
do we need to analyse the cognitions of these individuals, as you see in Figure 10.2,
but also the possible interaction patterns between each of the family members. For
the marketer, it is therefore necessary to sort out the extent of influence exerted by
the various family members. In the next section you will read about the two main
buying influences that operate on the individual within the family, namely consumer
socialisation and the intergenerational influences.
Figure 10.2 The Reciprocal Influence of Family Members

10.3 CONSUMER SOCIALISATION

Consumer socialisation is the process by which young people acquire the skills,
knowledge and attitudes relevant to their functioning as consumers. Through the
variety of family interactions, the consumer learns to develop tastes, preferences,
and shopping styles, how to budget money, what types of clothes to wear for what
184 occasions, and also what stores to patronise.
Factors Influencing Consumer Socialisation Family Buying Influences,
Family Life Cycle and
Buying Roles
There are several distinct factors that influence the consumer socialising process,
as you see in Figure 10.3. These are:
1) The Background/Environmental Factors
These include the environmental factors such as social and economic status,
social class, age, sex, and religious affiliation of the consumer.
2) The Socialising Agents
These include individuals who have direct influence on the consumer such as
parents, sisters, brothers, peers, teachers and the media. The family is found
to be important in teaching the rational aspects of consumption while TV viewing
encourages consumption for emotional reasons.
Figure 10.3 A Model of Consumer Socialization

Consumer socialisation occurs through two types of learning. One is the imitation
of others by observing the actions of others in the family. What is learnt early in life
has a lasting effect on most people. Brand loyalty is thus transmitted from parents
to children and, favoured brands may persist for periods of anywhere up to twelve
years or longer. The second type of learning is operant conditioning. This means
that consumption behaviour that receives praise and is complimented likely to be
repeated by a child while actions, that are ridiculed or, are less likely to have a
negative outcome be repeated. A very common example is the praise a growing
child revives when he finished the home food on his plate served to him and eats
up his fruit. Over a period of time this operant conditioning serves as important
leaning related to healthy eating habits and non-wastage of food.
Consumer socialisation occurs in subtle ways that are not always obvious. There
are four primary ways in which family influences can be transmitted to the individual
within the family:
1) The parents act as models for the child on numerous consumption occasions.
The child learns through observation without the parents’ conscious awareness
or intention to teach.
2) Parent-child discussions about particular products or brands, why they are
good for you, and why they are not.
3) Child-child interactions. These become an important socialising influence when
more than one child is present.
4) The child begins to handle money as he or she becomes older. Thus, through
gifts and allowances, the family provides opportunities for a child to become
more experienced as a consumer.
185
Group Influences on
Consumer Behaviour 10.4 INTERGENERTIONAL INFLUENCES
The intergenerational consumer influences refer to what is passed along from
grandparents to parents, from the parents to their children, and from the children
to their children. Many forms of influence are passed on. These include religious
and cultural values, general lifestyles, attitudes toward education, sports, leisure and
social life. Such intergenerational influences play an important role in forming product
and brand differences. In fact, many consumers have, perhaps, never considered
purchasing brands other than those their parents purchased for them as children.
For example, consider your own experiences regarding your choice of tea, ketchup,
bath soap, laundry detergent, and many other such products. Thus, you may find
that you prefer a brand because it was what your mother, used or, because your
father believed in the manufacturer. Such items are often purchased throughout an
individual’s adult life without serious consideration of other brands.

And this is the marketer’s dream-to get consumers who are highly brand loyal for
many decades. Figure 10. 4 illustrates for you, the concept of intergenerational
carryover that you have been reading about.
Figure 10.4 The Concept of Intergenerational Carryover

10.5 FAMILY DECISION-MAKING

The decisions made by families involve large amounts of money and, it is necessary
to understand as much as possible about this consumption unit. In this section we
will examine how families make their purchase decision. How many members are
involved in each decision? How are they involved? How does this influence work
on the outcome? What is the best way to reach them?

As in other small groups, there is a well-defined role structure in families as well,

as you would find if you apply this concept to your own family. Thus, there is the
Instrumental role, usually taken by the head of the family for the achievement of
specific goals. In addition, there is the expressive role undertaken by the wife and
other family members to provide emotional support to the functioning of the family
group. In addition to this goal-oriented behaviour there is also a set of purchase
roles undertaken by family members.
186
 Family Buying Influences,
10.6 FAMILY ROLE STRUCTURE AND BUYING Family Life Cycle and
Buying Roles
BEHAVIOUR
In order to function as a cohesive unit, purchase roles or tasks are assigned and
carried out by one or more family members. When trying to reach families, therefore,
marketers need to realise that a set of purchase roles exist and come into play within
the family. These roles can be identified and they determine how families make
decisions.
The important buying roles include:
1) The Instigator (Initiator): This is the person who first suggests the idea of a
product or service and initiates the purchase process, to begin with. The Initiator
can even be a stranger. For example, you may see someone walking down
the street, wearing a new style of sweater or shirt, and decide tilt you would
like a similar one. Or, you may go over to a friend’s house and notice a new
smart TV. Your friend (the instigator), turns it on to demonstrate the picture
quality. The matter is then discussed at home with your family members (co-
decision makers) and you decide whether the brand suits your requirements.
2) The Influencer: This is someone whose opinion is valued in the decision-making
process. An influencer may be a friend, brother, sister, spouse, doctor or other
influential person. All these persons have a direct or indirect influence on the
final purchase decision.
3) The Decider: This is the person who makes the final decision on what brand
or make to buy, after all aspects such as price, quality, servicing, have been
thought over.
4) The Purchaser (Buyer): This is the individual who actually purchases the
product, pays for it, takes it home or arranges for delivery. Very often, the
purchaser and the decider are the same person, particularly for big value items.
5) The Consumer: He is the user of the goods or service. In family consumption
decisions, a large number of purchases are for shared consumption for example,
appliances, furniture food and services like household help, investment and health
insurance
Although these five buying roles are performed whenever a purchase is made, the
individual performing each role may vary from purchase to purchase, and from family
to family. The number and identity of the family members who fill these roles thus
varies. In any given situation, the samemember may take on several or all roles.
Thus, in some cases, a single family member may independently assume a number
of roles, in which case, it is really an individual decision within a family context. In
other cases, a single role will be performed jointly by two or more family members.
Multiple roles, too, may be performed by one of the family members.
For example, in the purchase of household cleaning products, a single person may
perform all buying roles. In contrast, in purchasing cornflakes, the mother may act
as the decider and buyer, her children as influencers and users and her husband as
the evaluator. Thus, different persons may perform different tasks in the purchase
process. In all cases, family roles are usually appointed in a way that ensures that
they will be handled efficiently. Again, for example, the person who purchases a
187
Group Influences on loaf of bread may not be the same one who prepares the toast or eats it. In fact,
Consumer Behaviour
the purchaser may have been quite indifferent to the various brands or makes and
purchased it only because one or more family members expressed preference.
Family Decision Stages
Just as there are different purchase roles, there are also a number of different steps
in the decision to buy a product or service. And the amount of influence exerted
by the husband, wife and children will vary, depending on the stage of the decision
process. If you refer back to Figure 10.1 for what goes on inside the consumer’s
mind, you will find that the simplest of these is the five-stage decision-making model
which includes:
1) Problem recognition
2) Search for information
3) Evaluation of alternatives
4) Final decision
5) Purchase
The role of husband, wife and children will differ across the stages. There can thus
be shifts in the husband-wife decision-making from stage one of problem recognition,
to stage two of search for information and finally, to the decision. Marketers should
therefore examine husband-wife decision-making in terms of specific purchase factors.

Activity 1
Recall the purchase of ‘a recent consumer durable product by your family and
try to identify the role(s) played by respective members of your family.

10.7 THE DYNAMICS OF FAMILY DECISION-

MAKING: PURCHASE INFLUENCES AND
ROLE SPECIALISATION
The assignment of roles to specific members of the family, that you saw in the previous
section, has an impact on the overall buying behaviour. There is a sensitive interplay
of roles and the different roles are reflected in the relative influence of husband and
wife.
The extent and nature of husband-wife influence is an interesting factor to consider
in family decisions, because it is likely to shift, depending on the specific stage
of the decision-making process and the specific product features under
consideration.
188
When a single person decides to eat out, the decision is based on only his or her Family Buying Influences,
Family Life Cycle and
own needs. But when that person gets married, the situation changes. A household Buying Roles
forms and its members are confronted with various decisions that reflect the needs
of the family unit. Who will pay the bills? Who will do the grocery shopping? Who
will wash the clothes? Who will cook the dinner?
It has consistently been found that, most husband-wife influence studies classify
consumer decisions as husband-dominated, wife-dominated, joint or syncratic and,
autonomic or unilateral. This gives us four main decision type categories, namely:
Wife-dominant decisions: Wives have been found to dominate decisions on food
purchase, groceries, household furniture and appliances.
Husband-dominant decisions: Husbands have been found to dominate the decisions
on purchases such as automobiles and life insurance.
Syncratic decisions (Joint decisions): These are decisions in which husbands
and wives share influence. Vacations, choice of schools for children and healthcare
decisions for example, are jointly decided.
Autonomic decisions (Unilateral decisions): Decisions of lesser importance that
either the husband or wife make independently.
In a joint decision, several persons will be involved in performing a particular role
in deciding what to buy (or not buy). Shared consumption and joint decision-making
are characteristic of family living. As children grow older, their opinions about products
also become important.
An interesting aspect of the role specialisation in the purchase decision process is
that, in several families, particularly in traditional households, the husband takes on
the roles that are external to the home such as arranging finances, buying the product
and so on. The wife performs tasks internal to the home, as in grocery shopping,
decorating and cleaning. However, as women become more active, these distinctions
decrease, even though they continue to hold for the majority of the Indian
households.These roles are undergoing a rapid change on account of the steadily
rising numbers of dual income families and the proportion of women in employment.
Different family members assume the leadership role under different situations.
Particularly for low-cost items, decisions tend to be autonomic and each partner
tends to take responsibility forparticular types of purchases. More expensive items
involve more joint decision-making. And compromises often have to be made on
how a family’s limited resources will be spent, since family members value different
items differently.
All families face the problem of determining who gets what he or she wants, even
when resisted by others. When family members disagree about the goals, then decisions
become more difficult to make. Decisions may thus be either consensual or
accommodative. In the case of consensual decisions, everyone in the family may
agree with the desired outcome. However, accommodative decisions become
necessary in other cases, and conflict resolution may then need to be accomplished.
There are two ways that families generally use to resolve conflict. One is persuasion,
where a family member is persuaded to make a decision. When persuasion is not
used then bargaining is often resorted to. Bargaining involves creating conditions
189
Group Influences on of give and take in which a family member is induced to make a decision that is
Consumer Behaviour
favourable to other family members.
You have just studied the use of power in social groups in Unit 9. The element of
power within the family is derived from a variety of sources such as the following:
1) Economic resources: Here, the person making the greater economic contribution
tends to have the most power.
2) Cultural norms: The prevailing culture may decide which partner has the most
power. In many cultures the male is the dominant partner and decisions for
several product purchases may be husband-dominant, while this equation may
be reverse in other cultures
3) Expert power: One partner has more knowledge and more detailed information
concerning the products purchase under consideration and may exercise this
superior knowledge for influencing a buying decision.
4) Legitimate power: This is the influence that results naturally from role
expectations in the family.
5) Bargaining power: This involves inducing one member to make a decision
favourable to another on the basis of give and take.
6) Reward/referent power: One spouse may reward the other by doing something
the other will like.
7) Emotional power: The direction of the purchase decision may be influenced
by one partner by making use of non-verbal emotional pressure on the other.

Activity 2
Prepare a list of about 2 to 3 durable products and 7 to 8 non-durable products
(at different levels of price) consumed by your family. In case of each product
try to identify the type of decision that led to the choice.

10.8 THE INFLUENCE OF CHILDREN

Another major influence operating on family purchase behaviour is the influence of
190 children on the budget allocation and purchases and consumption. The birth of a
child creates a demand for a wide variety of products a couple never needed or Family Buying Influences,
Family Life Cycle and
considered purchasing previously. In addition, children influence the purchase of Buying Roles
many products both directly and indirectly. Thus, in a child-centred culture such as
the one that exists in Indian society, children tend to dramatically affect family
expenditures. When children are part of a family, their influence may or may not
be felt. However, it is found that the child centredness of mothers may increase
their receptivity to the child related consumption demands.
As soon as children develop the basic skills to communicate, they start attempting
to influence the family decisions. Older children participate more directly in the decision
processes. While children generally have no say in how much to spend (which
essentially remains a parental prerogative) they influence virtually all major dimensions
of the decision-making exercise. They may take up buying roles of initiators and
influencers in case of products the use of which they share with others in the family.
Examples could be the choice of breakfast cereal, brand of toothpaste and other
toiletries. As they grow older, they may take a far greater degree of leadership for
particular purchases, for example choice of amusement, and restaurants, and
sometimes even vacations. In products which are for their exclusive use, the influence
is obviously much greater. The role of children, however, varies across product
categories and even across family environments. As families differ in their internal
culture, the discretion that is allowed to children may differ across families and would
affect the degree of influence children can exert on purchase decision. In addition,
children are also influenced by their families through the socialisation process. In
the context of consumer behaviour, the parent-child relationship can be seen as an
influence versus yield situation. Children, acting as initiators or influencers seek to
influence parents make a particular product/brand decision (to yield). The response
of the parent may be modified by enabling condition, or a differing order of expenditure
priorities. It has been found that attempts on the part of children to influence purchase
decisions of parents tend to decline as they grow up.

10.9 THE FAMILY LIFE CYCLE CONCEPT

Just as individuals and product types go through a life cycle, families also have life
cycles. Most people go through several phases in their lives. The term family life
cycle refers to the series of life stages through which families proceed over time. It
describes, in other words, the process of family formation, growth and dissolution.
Thus, a family may begin as a married couple and move through a series of stages
in which young children are born, grow older and move out and, finally, the couple
grows old. Each life cycle stage differs from the previous stages in terms of family
structure, financial position, consumption patterns, and product needs and
preferences.
The family Life Cycle Stages
The life cycle of families has been conceptualised as a progression involving several
stages:
1) The Bachelor Stage (Young and single)
In the bachelor stage of the life cycle, income is low relative to future earnings,
since most bachelors are just beginning their careers. However, there are few
financial burdens. They therefore have relatively high discretionary incomes. 191
Group Influences on They tend to spend substantial amounts on personal consumption items, food,
Consumer Behaviour
clothing, transportation, certain luxury goods entertainment, vacations, and
possibly even a car. A few basic furniture items may be acquired, as well as
some kitchen equipment. However, these purchases tend to be on a non-
systematic basis and also minimal, because possessions restrict their freedom
of movement.
This market segment also offers marketers opportunities in terms of single serving
packaging a wide variety of foods and very high incidence of online ordering
for food, gadgets and home services. Overall, there is more individuality in
purchasing at this stage.
2) The Newly Married Couples (Young, no children)
With marriage, the requirements and resources change. Household requirements
increase. In addition, in some cases, both partners may be working. This stage
therefore represents a high expenditure period. Purchases include durable goods
such as refrigerators and other appliances, inexpensive durable furniture, home
entertainment items such as TV sets. These items often take priority over other
purchases.
Family Life Cycle

3) Full Nest 1 (Young, married, with child)

The arrival of a child creates major changes. Some wives may stop working
and they suffer a reduction in income. The financial resources thus change
significantly. Child rearing and educational responsibilities increase. Money is
now directed to baby furniture, toys, chest rubs, vitamins, baby foods and baby
medicines. While more shopping is done, the family also faces more medical
bills. This is also the period that they become dissatisfied with their income
and with their inability to accumulate earnings.
192
4) Full Nest 2 (Older, married, with children) Family Buying Influences,
Family Life Cycle and
Buying Roles
The family’s financial position starts to improve because of career progress and
also because many wives return to work. They present an active market for a
wide variety of food products, bicycles, music lessons, magazines and also
educational services as children are growing up.
5) Full Nest 3 (Older, married, with dependent children)
Income is high for the family at this stage. However, they now represent
experienced buyers and tend to be less interested in new product purchases.The
children start having a direct bearing on buying decisionsand choices. Expenditures
continue to be high due to replacement buying in the later phases of the stage.
6) Empty Nest (Older, married, with no children living with them)
This is the stage where children have completed their education, may settle
down with their own nuclear families and have left the parental home.With no
children living at home, the financial position stabilises, savings accumulate. There
may be a resurgence in self-education. Hobbies also become an important source
of satisfaction. More is spent on luxury appliances, self-reliance supporting gadgets
like dishwashers and health products. Major expenditures are on home
ownership, home improvements and also on medical care.
7) Solitary Survivor (Older, single, retired people)
Simple, often more economical lifestyle. A lower income due to retirement may
be a restrictive factor. Health care and other services become important.
The stages at which families find themselves thus affect the nature of the goods
and services required, their wants and consumption patterns, as well as the volume
of consumption on specific products. At each stage there are unique needs, different
patterns of object accumulation, and different demands that are placed on the family.
It would seem, therefore, that the family life cycle is a better predictor of consumption
patterns than age. For example, it is well known that major furniture items are bought
at or shortly after marriage, regardless of age. Conversely, furniture purchases tend
to be put off in favour of baby furniture and medical expenses at the time and stage
required.
The family life cycle stages are therefore used along with age in analysing and
segmenting markets. Since it combines incomes, marital status, social perceptions,
and family needs into one measure, richer picture of family is obtained than is possible
on any single variable. Family life cycle analysis thus permits marketers to segment
families into subgroups that are relatively homogeneous in terms of age, interests,
needs and disposable income. Segmentation by stage in the family life cycle also
permits marketers to develop products and services to meet the specific needs of
families at each stage, and to design promotional strategies for their specific target
audiences.
You will find in Table 10.1 the differences in the consumption patterns and
characteristics of families in the various family life cycle stages. As you can see,
the presence or absence of children to a large extent dictates the families’ activities
and much of a family’s disposable income gets spent in fulfilling children’s needs.
193
Group Influences on The traditional view of the family life cycle has, however, been criticised for failing
Consumer Behaviour
to recognise that a single-family unit may not exist throughout the life of an individual.
Families may be created by second marriages, and these families may involve children
from prior marriages. Also, the traditional model ignores the existence of single parent
households. The modern family life cycle, which takes into account, the rising trend
of working women as well as the non-traditional family set ups, is a more complex
and more useful model than the traditional model.
The modern family life cycle accounts for women in the work force and dual income
families. The pace of life is faster and there is less time for children and for one
another. As a result, the two income households are more likely to spend more on
time saving, home help and convenience goods. Women also appear to retain the
primary responsibility for housekeeping though husbands appear to help more than
in the past. Convenience products ranging from paper plates automatic appliances
and other convenience foods appeal to the working women segment. There is also
more sharing of responsibilities than in single income households.
In conclusion, while the family life cycle concept segments families on the basis of
demographic variables, it still has the disadvantage that it ignores the psychological
variables. It is therefore used to supplement the concept of lifestyle which emphasises
behavioural dispositions and attitudes. it is a good idea to remember, moreover,
that while the family life cycle is an important factor in understanding consumption
patterns, there are other variables such as available income, education, occupation,
whose effects govern spending on such items as food, clothing, housing and even
cars, and which control how consumers spend their money. Family life cycle is also
related to the use of leisure time, family expenditure patterns for services and other
consumer activities.

Table 10.1 Consumption Patterns of Families in Life Cycle Stages

194
 Family Buying Influences,
Activity 3 Family Life Cycle and
Buying Roles

Select at least 10 known families in your social world and identify the stage at
which they are in the family life cycle description. Also list some of the products
(a) they have stopped buying (b) they are going to buy for the first time.

10.10 IMPLICATIONS OF FAMILY DECISION-

MAKING FOR MARKETING STRATEGY
Once it is recognised that the same individual may not perform all the purchase
consumption tasks, it becomes clear that the development of a successful marketing
mix depends on answers to questions such as:
1) Is the product likely to be purchased for joint or family use?
2) Is the product likely to be purchased with individual or family funds?
3) Is the product so expensive that the purchase involves a trade-off in purchasing
other products for the family?
4) Are family members likely to disagree about the product?
5) Is the product likely to be used by more than one family member? If so, are
product modifications necessary to accommodate different persons?
6) Which family members will influence the purchase and what media and messages
should be used to appeal to each?
7) Are particular stores or online providers preferred by various family members
or families in the target market?
Forward-thinking companies can anticipate and take advantages of trends that are
likely in the future.

10.11 SUMMARY
The family has an institutionalised position in the larger society and provides the
primary setting for consumer socialisation, whereby children learn consumer tastes,
preferences and shopping styles. When trying to reach families marketers should 195
Group Influences on therefore realise that, family influence is an important factor in developing marketing
Consumer Behaviour
strategy.
Parents play an important role in consumer socialisation, especially in providing
information on the rational aspects of consumption. Their impact varies across types
of products and across the stage of the decision process.
A set of buying roles also exist within the family. Different roles can be identified
such as initiators, influencers, gatekeepers, deciders, buyers and users. The role of
the member is shaped partially by cultural and social determinants, including the
mass culture, subcultural influences, social class and reference groups.
The relative importance of members may vary according to the kind of product
and service under consideration, its cost and other variables. Decisions within the
family can thus be classified into four categories namely, wife-dominant, husband-
dominant, syncratic and autonomic. These categories refer to the extent to which
the husband-and-wife act independently versus together in making purchases. And
for certain type of products or services the presence of children as well as their
request can influence the purchase decisions.
The family also has a life cycle that determines its needs and expenditure patterns
at different points in its development. The family life cycle includes nine stages which
describe changes in the family’s buying and behaviour patterns across time. This
has implications for segmenting families into various markets.

10.12 KEYWORDS
Household : A group of people living under one roof.
Family : A group of members living under the same roof who are
related to each other by marriage or by blood ties.
Nuclear Family : Consists of husband, wife and offspring.
Extended Family : Consists of the nuclear family plus the husband and/or wife’s
mother, father and/or other relative.
Family Life Cycle : The idea that families move through a series of stages in
a developmental fashion.
Instrumental Role : Within a group, the instrumental role is taken by the person
who deals with the problem of getting the group to achieve
certain goals and complete certain tasks.
Expressive Role : A role found in many groups that involves a person helping
to maintain and provide emotional support for its members.
Purchase Roles : include the various roles in the buying and using of products
by family members or industrial buying groups.
Syncratic decision : Important decisions in which husband and wife participate
jointly.
Autonomic decisions : Decisions of lesser importance that either the husband or
wife may make independently.
196
Family Decision : The steps in the decision process used by a family to Family Buying Influences,
Family Life Cycle and
Stages purchase products or services. Buying Roles

Power Sources : Factors that can increase the personal power of a person
in a relationship such as economic resources, cultural and
subcultural values and the degree of dependence in a
relationship.
Consumer : Processes by which young people acquire skills, knowledge
Socialisation and attitudes relevant to their functioning as consumers in
the market place.
Socialising Agents : Individuals directly involved with a consumer, who have
influence because of their frequency of contact with the
consumer, importance to the consumer or control over
rewards and punishments given to the consumer.

10.13 SELF-ASSESSMENT QUESTIONS

1) Differentiate between the household and family. What implications do this
difference present to marketers?
2) Which of the five stages of the family life cycle constitutes the most lucrative
segment for each of the following products and services:
(a) Netflix subscriptions (b) Domino’s Pizza (c) iPods (d) mutual funds, and
(e) the fastest Internet access available in one’s location? Explain your answers.
3) What purchase decision process would occur for a family in the purchase of
furniture? Think of your own family. Which individuals in your family have the
roles of gatekeeper, influencer, decider, buyer, and user? To what extent do
these roles change across different product categories?
4) How do consumption patterns change as people move through the stages of
the family life cycle? Now apply this to yourself by referring to the stage of
family life cycle that your own family is in.
Project Questions
1. Collect ads for five different product categories that target families and evaluate
benefits from a family emphasis.
2. Identify one nuclear family and one extended family and compare the
characteristics and consumption patterns of the two households.

10.14 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.

197
Group Influences on
Consumer Behaviour UNIT 11 CULTURE AND SUBCULTURAL
INFLUENCES
Learning Outcomes
After going through this unit, you should be able to:
 define culture and subculture
 describe the characteristics of culture
 distinguish between components of culture
 explain how culture and subculture influence our behavior
 utilize the understanding of culture and subcultures to make informed marketing
decisions
Structure
11.1 Introduction
11.2 Culture: Meaning and Significance
11.3 The Characteristics of Culture
11.4 Cultural Values
11.5 Cultural Values and Change
11.6 The Need for Cross-cultural Understanding of Consumer Behaviour
11.7 Subcultures and their Influence
11.8 Summary
11.9 Key Words
11.10 Self-Assessment Questions
11.11 Project Questions
11.12 Suggested Readings

11.1 INTRODUCTION
One of the most pervasive influences on our lives and indeed our consumption
behaviour is that of culture. Culture has a profound effect on family life, living patterns,
social interactions and is indeed an input in shaping values, attitudes, personalities,
attitudes and perceptions, variables that you have studied earlier in this course. We
shall in this unit try to understand what is culture and how does it influence buyer’s
behaviour. We will also briefly discuss the various subsets of culture-the subcultures
within a given society.

11.2 CULTURE-MEANING AND SIGNIFICANCE

Culture is the broadest component that has an effect on consumer behaviour. It
provides the background for other factors that you have studied, namely the family,
social class and reference groups, that have an influence on buying behaviour.
198 Reference groups and families play a critical role in transmitting cultural and sub-
cultural values. Since they regulate people’s lives on a day-to-day basis, they become Culture And Sub Cultural
Influeces
the agents for transmitting the standards of behaviour and the values of the culture
in which they exist.
Our clothing, diet, methods of food preparation and service, all these are manifestations
of our culture. It is difficult for us, or for people in any culture to see just what our
culture is like, because we are too involved with the specifics, to realize its impact
on our daily lives. In fact, the impact of culture on our decision-making is so natural
and automatic that its influence is usually taken for granted. It is only when we are
exposed to people with different cultural values and customs that we recognize that
our own culture is unique.
At a general level, Culture is defined as:
“a complex set of values, ideas, beliefs, attitudes and other meaningful
symbols, created by human beings to shape human behaviour and the artefacts
of that behaviour as they are transmitted from one generation to another.”
The significance of culture in understanding consumer behaviour is that, although
consumers may be biologically similar in their instincts, their views of the world differ
according to their cultural orientations. Culture provides the standards or rules
regarding when to eat, where to eat, what is appropriate to eat for breakfast, what
to serve guests for a dinner party, a picnic, or a wedding. For instance, we can
think of French culture, Canadian culture, American culture, Indian culture and are
also aware of how very different these societies are in their consumption preferences.
People in thesecultural groupings are more similar in their outlook and behavior
among themselves than those in other groupings. They are also similar in their
lifestyles, personalities, attitudes, values and belief systems, as described in the
definition of culture. This similarity would apply to their purchase behaviour as well,
much of which is culturally determined.
Culture results from interactions between people. The function of culture is to establish
modes of conduct, standards of performance, and ways of dealing with people in
interpersonal relations. This reduces uncertainties with people and increases
predictability. Over a period of time, behaviour values, and artefacts become
institutionalized. Since there are many ways in which people can organize their social
relationships, it is not surprising that a wide variety of cultural patterns have emerged.
Thus, while many aspects of all culture are the same, there are also difference between
cultures. We see this in our own country in India, which is so large and diverse
that it is difficult to consider it as a single culture. Within a given culture, sub-
cultures therefore arise due to geographic, religious, nationality and ethnic
differences.
In every society, the prevailing culture has a purpose. It provides a framework of
traditions, values, beliefs, practices and behaviours that facilitate interaction and become
institutionalized. It therefore results in commonly accepted standards of conduct.
Parents and social institutions such as schools and other organizations transmit culture
from one generation to the next generation.
Because culture is such a broad and pervasive concept, it is divided into two distinct
components:
1) The internal mental culture
2) The external material culture 199
Group Influences on The internal mental culture can be further divided into two parts, the cognitive
Consumer Behaviour
component and the normative component.
The Internal Mental Culture
The cognitive component of culture consists of its ideas and knowledge, such as
ideas about gods, ideas about supernatural phenomena, and concepts of an afterlife.
The normative component of internal mental culture consists of its values, rules of
conduct and norms which regulate behaviour, and which are shared by most members
of a culture. Consider, for instance, what happens to our consumer information processing
system as cultural influences build up over our lives. They reflect our beliefs and opinions
and this guides our information processing. Social norms are actually beliefs and opinions
that are held by, people in exactly the same way. Internalizing the prevailing cultural
values over time is called enculturation, and this is especially important in the case
of children learning to function in their own society. Culture is therefore one of the
most basic influences on our cognitions and behaviour.
The External Material Culture
The external or material culture refers to the things that we can see, touch and
use in our day-to-day living. This is the most obvious of cultural components. The
material culture allows us to express ourselves aesthetically, as for instance, in art,
music, theatre, clothing and housing and to protect ourselves from the elements. It
concerns how we enjoy our moments of leisure by means of books, movies, sports
among other things.
An important dimension of the material culture is the influence of technology and
how it has brought about cultural changes as for example, through smartphone, internet,
television, and the airlines. The material culture is important to marketing because
symbolism plays an important role in marketing to any culture. Clothing, for instance,
represents a highly visible form of expressive symbolism in any cultural system. Virtually
all product packaging and advertising also uses some form of expressive symbolism
to get a message across to persuade consumers to buy.

11.3 THE CHARACTERISTICS OF CULTURE

To understand that brushing your teeth with toothpaste is a cultural phenomenon,
requires some knowledge and awareness of the characteristics of culture. The following
characteristics can be cited to describe its nature.
1. Culture is invented
This means that culture is invented and is not a set of instinctive responses. It
is a way of thinking, feeling and acting that results from years of accumulated
experience and is handed down from one generation to another. Each generation
adds to the cultural heritage of the past. The response patterns are transmitted
through values, attitudes, beliefs, customs and symbols. Cultural norms
consequently result from defining and prescribing acceptable behaviour.
2. Culture is a set of learned responses
Cultural learning takes two forms. One is patterned instruction. The other is
imitative learning. While imitative learning is informal, patterned instruction may
occur at either a formal or informal level.
200
 Patterned Instruction: This is the formal learning of values through family Culture And Sub Cultural
Influeces
members, of what is right or wrong, and technical learning, which occurs through
the educational environment or by active and deliberate instruction by parents/
grandparents.
Imitative learning: This is informal learning, and involves imitating the behaviour
of friends, family, television/digital media. Many advertisements influence the
consumer and enhance informal learning by providing the audience with a model
to imitate. Repetition of advertisements further reinforces beliefs and values by
teaching consumers what to desire.
3. Culture is shared
Culture is frequently viewed as a group phenomenon. It thus links together the
members of a society. Various social institutions within a society, namely the
family, social class, educational institutions, and religious organizations make
the sharing of culture possible. Another important social institution is the mass
media, and consumers receive important cultural information from advertising.
4. Culture is gratifying and persistent
Culture in a society offers direction and guidance to the members, to satisfy
physiological and personal needs.
5. Culture is dynamic and adapts
In spite of resistance to change in societies, cultures are gradually and continuously
changing. Many factors are likely to produce cultural change such as new
technologies, resource shortages, such as those of energy and water, and customs
borrowed from other culture. This means that marketers must constantly monitor
cultural change to find new opportunities.
6. Culture is an organized and integrated whole
This means that the elements of a culture are consistent and woven together to
form a whole.
7. Cultures are similar yet different
In terms of elements that they exhibit, cultures are strikingly similar, you would
find elements like social institutions of family, marriage, rituals, schools, government,
housing, religious rituals, social functions, personal adornments, calendars,
language, music and dance forms and law in every society whose culture you
may be interested in studying. Societies, however, differ greatly in how each
of these elements are practiced in the society, which in turn results in important
consumer behaviour differences among consumers of different societies.
8. Culture is prescriptive
Culture determines desirable norms or patterns of behaviour so that in a given
cultural context people have a common appreciation of what is right and wrong,
indeed what is proper or improper. Culture also suggests items appropriate
for consumption in the pursuance of norms, moves, values and beliefs that prevail
in a given society.
201
Group Influences on
Consumer Behaviour Activity 1
Look at your own culture in terms of the elements that have been referred to
above. In terms of any five elements that you choose, compare your culture
with that of any other society that you are familiar with or have read about.

11.4 CULTURAL VALUES

Cultural Values
Cultural values are important to the organized and integrated nature of culture. A
cultural value can be defined as a widely held belief that endures over time. Values
therefore produce inclinations to respond in standard ways. They serve as standards
or criteria for behaviour. Values deal with modes of conduct and, therefore, transcend
specific situations. We therefore have in a culture, two types of values:
1) Instrumental value (or modes of conduct)
2) Terminal values (or states of existence)
These values together influence consumer behaviour in several ways such as methods
of shopping, tastes and preferences. It is necessary, therefore, to understand a society’s
basic value structure before marketing to it.
Different social classes may respond to cultural values in different ways. Consider
the cultural value of achievement, for example. While all individuals may share the
same cultural values, their methods of responding to them may differ greatly, depending
on the sub-culture and social class.
Each culture has what is termed the core values.
These are the dominant or basic cultural values. It is not necessary that the core
values be exclusive to a particular culture. Several values are borrowed or adopted
as people emigrate to societies.
While somewhat obvious to you, the important fact is that these values are pervasive
and accepted as givens. For example, core values that have been cited may be
any of the following.
1) Progress, achievement and success: These values lead to progress for society
2) Activity: Being and keeping active is widely accepted as a healthy and necessary
part of life.
3) Humanitarianism
4) Individualism

202 5) Efficiency, Practicality

Commonly held cultural values shape consumption choices to a large extent. Marketers Culture And Sub Cultural
Influeces
therefore try to appeal to consumer values through advertising, product concepts
and design. These values influence both, product and brand choices. It has been
found that terminal values such as comfort, security, pleasure, are influential in
the choice of product class. Instrumental values such as broadmindedness become
important in the brand choice decision.
Though limited amount of research has been done on how to measure values, Milton
Rokeach has created a Rokeach Value scale consisting of two sets of values, eighteen
terminal values and eighteen instrumental values. Ranking or agreement scales are
used to find out the importance of these values to the individual respondents.
Table11.1 presents the values listed in the Rokeach Value Survey.

Activity 2
Select five core Indian cultural values, and provide a consumer behaviour example
for each.

11.5 CULTURAL VALUES AND CHANGE

The core values discussed above do not represent a static concept but are dynamic
in nature. Depending upon the rate of change a society is going through, cultural
change may evolve slowly, in an evolutionary manner which is adapted more easily
and is least disruptive. A culture may also change rapidly owing to fast paced changes 203
Group Influences on in a society, changes which come rapidly produce stress for the social system and
Consumer Behaviour
may even be disruptive of some basic values.
As world trade globalizes, information and communication technology bring the people
of the world in closer interaction with each other, cultures of nearly all open or
opening societies have faced the winds of change. As the world around us changes,
reverberation is naturally likely to be felt in the Indian society. Already sign of changes
in the cultural values of respect for authority, religious and family ties, responsible
consumption etc. are becoming apparent in the Indian society. The need for the
marketer is to clearly understand and track the changing value orientations of Indian
consumers and respond in designing products and services to be offered for
consumption.
Changing Cultural Trends In Indian Urban Markets
The Indian urban market environment is very different from the rural or semi-urban
market environments. In cities, there are target segments comprised of professionally
qualified, high-salaried individuals who are on the fast track of life. This segment is
heavily influenced by Western lifestyle and aspirations. There is however also a counter
trendof returning to the Indian identity This segment can be associated with the
following values.
Achievement Orientation- These factors contribute to intrinsic and extrinsic
motivational levels, which are reflected in an interest in membership in prestigious
clubs and vacationing in foreign resorts.
Work Ethic- Present-day consumers are breaking away from traditional work
practices and are involved in high-pressure, fast-paced jobs. They are under time
constraints and thus prefer convenience products and services such as ordering of
groceries online, online shopping, using food delivery apps (Zomato/Swiggy), one-
stop shops etc.
Material Success-Young professionals between the ages of 25 and 30 have acquired
substantial wealth at a young age as a result of their intelligence and education. They
work in cutting-edge fields such as software or are well-known entrepreneurs. This
segment selects products and brands with a symbolic overtone, most likely to signal
to society that they have “arrived”. There is a high demand for quality-oriented,
branded services such as laundry services, in-home food delivery, babysitters, and,
pet-care providers.
Middle-of-the-Road Approach to Tradition- A segment of consumers who are
urban, well-educated, and in the upper end of the socio-economic strata take a
middle-of-the-road approach to rituals and other cultural practises.
Impulse Gratification- A neo-urban young adults have an obsessive desire to
purchase goods and services using credit cards or other digital methods like wallets.
This segment may possess multiple credit cards and use multiple payment avenues.
Use of Hi-Tech Products - High-profile consumers use products like iPods, smart
phones, tablets, and hi-tech products in the categories of household appliances and
entertainment systems. This segment is information-oriented, independent, and has
the potential and willingness to spend on high-end products such as fuzzy logic washing
machines, plasma television sets, and Bluetooth technology CCTV systems,
204 comprehensive health care insurance and fitness equipment or gym memberships.
 Culture And Sub Cultural
Activity 3 Influeces

Some of the trends noted above have already become apparent. How are they
likely to change some of the Indian cultural values? Give your own opinion.
Talk to some of your peers and report upon their opinion.
Trends Likely Cultural Changes
…………………… ……………………………………….
……………………. ……………………………………….
…………………….. ….……………………………………

11.6 THE-NEED FOR CROSS CULTURAL

UNDERSTANDING OF CONSUMER
BEHAVIOUR
As world trade globalizes, corporations tend to look upon the whole world as their
market. Major Corporations of the world today, Coca Cola, IBM, Gillette, Amazon
and Apple receive more than half of their earnings from their overseas operations.
A parallel emergence of common culture of management has however not taken
place. Research surveys of management personnel serving across countries reveal
that managers views tend to relate more to their country’s cultural context and less
to the geographical location of their company.
The International marketer however would need to understand the different value
orientation in the various cultures that he operates in or is planning to operate in. A
useful conceptualization of a frame of reference has been developed by Florence
R Kluckholm, which may enable the international marketer to evaluate cross cultural
variation on a range for five important value orientation. These value orientations
are given in the Table 11.2.

205
Group Influences on Important among the steps to be undertaken while trying to understand cultural
Consumer Behaviour
orientation of international markets are suggested below.
a) Research into underlying values and the rate at which these are altering-Try to
understand the direction of the change specially with references to the target
market.
b) Evaluate how the intended product concept relates to the cultural values, in
terms of any possible or perceived conflicts with the values. In the cultural context
in which the product is to be introduced, how important are the needs for which
the product is created? Are there alternative satisfiers available?
c) Analyze the existing individual and family decision patterns and characteristic
criteria used for decision making, as well as the information sources for decision
making.
d) Decide on appropriate Marketing Communication- Looking at the language,
symbols, beliefs and the role models that exist in a given cultural context, the
marketer must decide upon messages and formats which effectively communicate.
What media would be the most appropriate would again vary depending upon
the preferred. information sources and media habits of people in different
cultures.
e) Take appropriate pricing and channel decision-What are the valuation norms
of a given society? Do people value an imported product label higher than a
domestic one or is it vice versa? Are people aware and sensitive of price
differentials? Are existing channels adequate and appropriate? How willing are
people in a given cultural context to try new distribution alternatives? These
are some of the issues which would enable the markets to evolve suitable pricing
and distribution strategies in a cross-cultural marketing situation.
Hofstede Dimensions of National Culture is one of the most widely used instrument
to measure the cross-cultural values. It has following six dimensions:
Power Distance- The extent to which the less powerful members of organizations
and institutions (like the family) accept and expect that power is distributed unequally.
Individualism- The degree to which individuals are integrated into groups.
Masculinity- The distribution of roles between the genders.
Uncertainty Avoidance- A society’s tolerance for uncertainty and ambiguity.
Long-Term Orientation- Values associated with long-term orientation are thrift
and perseverance; values associated with short-term orientation are respect for
tradition, fulfilling social obligations, and protecting one’s “face.”
Indulgence versus Restraint- The extent to which a society allows relatively free
gratification of basic and natural human drives related to enjoying life and having
fun. A culture high on restraint suppresses gratification of needs and regulates it by
means of strict social norms.
These dimensions are useful to marketers to understand how members of different
cultures may respond to the same marketing messages.
206
 Culture And Sub Cultural
Activity 4 Influeces

Try to look at some of the new products introduced by multinationals in India

(for example personal care and hygiene products etc.) and evaluate how do
they, in terms of product concepts and communication messages relate to the
Indian cultural contexts
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

11.7 SUBCULTURES AND THEIR INFLUENCE

You have after going through the above section, a very clear idea of how pervasive
and lasting is the influence of culture on a person’s consumer behaviour. Not all
segments of a given society, however, display the same behaviour pattern. This is
partly due to ‘ethnicity’ - the basic origins from which these segments emanate or
different religious beliefs or even climatic and geographical considerations. It is therefore
possible for a marketer to identify more homogeneous subgroups within the
heterogeneous national culture.
These subgroups are referred to as subcultures. The members of a specific subculture
display customs, values and beliefs which are distinct enough to set them apart from
the other segments in the same culture. However, in addition to the above different
beliefs, values and customs, they conform to the dominant values and behavioural
patterns of the larger society to which they belong. To take an example, if we refer
to the Indian society as the larger “Culture” segment, the various religious subgroups
like Hindus, Muslims, Sikhs and Christians, represent the religious subcultures. They
may possess different religious beliefs and customs, but are also similar in the sense
that they all display common value system as Indians. In a multi racial society like
America, there is an American way of life which typifies the American Culture, the
various social groups like blacks, Hispanics and Asians display values and customs
which are typical of them as subsegments. Each of these then represent a subculture.
Subcultures therefore can be defined as a distinct cultural group that exists
within a layered, complex society as an identifiable segment in terms of its
beliefs, customs and values. A culture is thus made up of the distinctive values
beliefs and customs followed by the members of its various subcultures as well as
the core cultural values and beliefs shared by most of its population regardless of
specific subcultural identification.

Activity 5
Look around yourself and try to identify the type of subcultural group that you
see in the Indian society. In what ways do they tend to differ from the other
subsegments.
207
Group Influences on
Consumer Behaviour ....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

Types of subcultures
Marketers have tended to look at subcultures as specific segments in terms of the
differential mores of these subgroups result in consumption patterns and behavioural
patterns specific to them. You have only to refer to the different customs followed
by the various communities in India to understand how the marketer would like
the consumption patterns at different religious festivals and performance of customary
rites of these communities to identify distinct marketing opportunities. The different
food habits of the geographical subcultures, for example, North and South India,
represent possibilities for segmenting and targeting consumers for the food market.
Looking around us we can see that for multicultural societies, it is possible to identify
several types of subcultures. We would briefly refer to the major types of subcultures
here.
Racial or nationality subcultures: Multiracial societies like America are today
comprised of citizens who come from different nationalities or belong to different
races. While they are subscribe to the wider concept of the core American values,
each one of them display interesting differences for the marketer to be able to identify
them as important, subculture segments. The broader American culture therefore
can be seen as consisting of the Afro- American subculture, the Asian subculture
the Hispanic subculture to name some. These subcultures tend to vary in their values,
aspiration and beliefs which get reflected in their consumption priorities, spend save
patterns, purchase behaviour, use of credit, social mores and customs etc. Marketers
have found it useful to look at each of these subcultures as distinct market segments
and tailor marketing plans to effectively reach them.
Religious subcultures: Most societies of the world today consist of people
subscribing to different religions, which may differ in their beliefs, values and customs.
We have referred to the Indian society earlier which is a good example of a multi-
religion society. The religious subgroups may follow different custom, have important
rites of passage (like birth, marriage and death) performed in different ways and
have different festivals. These in turn suggest items appropriate for consumption
for the above activities which may not be common to all the members of the wider
society. In addition, religion subcultures may suggest important “taboos” in consumption
terms, certain foods are prohibited among the different groups, consumption of liquor
or non-vegetarian foods may be specifically prohibited by some religious norms.
Geographical and regional subcultures: Large countries, partly on account of
geographical and climatic condition display geographical and regional differences
which are distinct enough to enable marketer to envisage a country as consisting
of different geographical or regional subcultures. One has only to look at our own
country to clearly identify and appreciate the Gujarati, Tamil, Punjabi, Kashmiri,
Bengali subculture identities with the Indian culture. Of special significance to the
208
marketer are the various food preferences of these geographical regional subculture Culture And Sub Cultural
Influeces
and the languages spoken in different regions.
India today had 22 languages identified as official regional languages. These create
unique challenges in terms of creating and delivering marketing communication.
Geographical subcultures also result in different consumption patterns in clothing,
housing patterns and food habits on account of climatic conditions. While cottons
maybe the most preferred fabric in North West India, silk predominates in South,
Woolens have a very low priority in coastal regions as they are not required at all.
Age subcultures: You have already read about the stages in family life cycle and
understand how consumption priorities change as the age pattern of the family changes.
Marketers have, on a more generic basis have been able to use age as a basis of
identifying different subcultural identities as the youth market and the elderly market.
The youth market (14-24) is important to marketers not only because it is a growing
and lucrative segment but also because consumption preference found at this age
are likely to continue for a long time. The youth market is distinctive enough in terms
of its spending patterns, demographics, psychographic, profiles etc. In a very
interesting in-depth study of teens, Young and Rubicon ad agency found the following:
 Teens want to learn things but do not want to be told

 want independence yet want to be taken care of

 want to be treated as adult but don’t want too much responsibility

 want to be active yet spend hours relaxing

 want to try new things but only acceptable ones

 want to be individuals, but also members of the group

 can be very critical but are very sensitive to criticism.

The youth market differs significantly from the elderly market in term of its norms,
purchase preferences, information sources used, media habits and preferences and
to an extent values and beliefs, to constitute a subcultural segment for the marketers.
For a very large variety of consumables, apparels, accessory and entertainment,
education and training, fast food and hospitality industry, the youth market constitutes
a substantial and lucrative market segment.
The Elderly Market: In terms of age subcultures, the ‘Elderly’ constitute the 50
plus Market segment. They have traditionally received low priority attention from
the marketers but it is fast being realized that in terms of purchasing power and
discretionary incomes, this segment is one of the most attractive segments. In subculture
segment term, this segment has been found to display value orientation which are
more stable, have identified shopping patterns and store preferences, and are a very
attractive market for home improvement, investment, insurance, health services and
home equipment enabling convenience in living. Though they tend to view advertising
as a less reliable source of information, their media habits are more stable to enable
the marketers to carve out communication positioning better.
Gender subcultures: It has been increasingly felt that as men and women vary in
terms of dominant traits, they possess, information search and processing norms
209
Group Influences on they follow, gender may be indeed used as a subculture segmentation variable. While
Consumer Behaviour
the traditional role identification of men as breadearners and women as homemakers
are getting blurred, products can still be seen as being strongly associated or as
exclusively developed for one sex or the other. Assignment also in terms of
predominant decision-making roles, tend to relate to gender subcultures. In behavioural
terms, it hasbeen found that consumers lend to assign a gender to products, in term
of the perceived meaning of the product it may either be seen as a feminine or a
masculine product. These are perceptions that need to be borne in mind by
advertisers in addition to the gender of the target market. One gender subcultural
segment that has been distinctively identified and used is, the segment of the working
woman.
Working women as a subcultural segment and consumption patterns: Whatever
be their career orientation, working women have been found to spend less time in
shopping and tend to be weekend shoppers and now increasingly online shoppers.
This higher discretionary income enables them to try out new brand alternatives
and be a very attractive market for time saving, convenience-oriented goods or
improved home services as well as personal grooming products and services. Media
usage is more diverse among working women and the messages that have been
found to be most effective are those that relate to both career and family rather
than those targeting only family or only career.
As proportion of working women continue to rise across the world, greater research
is bound to be directed towards specific value orientation and role identification of
this important segment.

11.8 SUMMARY
The study of culture enables us to understand and appreciate all aspects of a given
society-language customs, beliefs,value systems, customs and religion in a given society.
The unit studied by you defines culture as the sum total of the beliefs, values and
customs learned by the members, of a society that set them apart from other societies.
The unit also explains the characteristics of culture and the way it affects our behaviour
as consumers.
In an internationalizing world economy several cross-cultural transactions and adaptation
have to be made by the international marketers. The unit addresses some of the
value orientation across which different societies can be seen and analyzed. Subcultures
and their understanding enable the marketers to segment the market so as to tailor
their offerings to the needs, motivations value orientations and attitudes of members
of specific groups. Subcultures exist as identifiable distinct groups within a given
culture. The unit describes the various types of subcultures that can be identified in
a society.

11.9 KEY WORDS

Culture : A complex set of values, ideas, beliefs, attitudes and other
meaningful symbols, created by human beings to shape
human behaviour and the artefacts of that behaviour as
they are transmitted from one generation to another.
210
Cross-Cultural : Relating to different cultures or comparison between them. Culture And Sub Cultural
Influeces
Cultural Value : A widely held belief that endures over time and serve
as standards that guide our behaviour across situations
and over time.
Enculturation : Internalizing the prevailing cultural values over time.
External or Material : refers to the things that we can see, touch and use in
Culture our day-to-day living.
Instrumental values : The values that measure basic approaches an individual
might take to reach end state values.
Internal mental : can be divided into two parts, the cognitive component
culture and the normative component.The cognitive
component of culture consists of its ideas and
knowledge, whereas the normative component of
culture consists of its values, rules of conduct and norms
which regulate behaviour, and which are shared by most
members of a culture.
Sub-culture : A distinct cultural group that exists within a layer, complex
society as an identifiable segment in terms of its beliefs,
customs and values.
Terminal values : The values designed to measure the relative importance
of end states of existence or personal goals.

11.10 SELF-ASSESSMENT QUESTIONS

1. Define Culture and Subculture. Compare the Indian culture values with the
American culture or that of any other culture that you have read about or are
familiar with.
2. How are cultural values relevant to a marketing practitioner?
3. How does subcultural analysis help a marketing in the segmentation exercise?
4. Discuss the importance of subcultural segmentation for food products, clothing
and accessories.
5. It is often said that culture is such a pervasive and all-encompassing influence
that we realize its impact when we are out of it for some period of time. Do
you agree. Justify your answer on the basis of your own travel to other societies
on the basis of discussion with friend who have stayed abroad for some time.

11.11 PROJECT QUESTIONS

1. Select three commercials that were broadcast during the episode of a TV or
online series that you watch regularly and describe how each reflects a cultural
value(s).
2. Locate one or more consumers who have emigrated from another country.
Interview them about how they adapted to their host culture.In particular, what
changes did they make in their consumption practices over time?
211
Group Influences on
Consumer Behaviour 11.12 SUGGESTED READINGS
1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
4. https://www.europeanbusinessreview.com/impact-of-culture-on-consumer-buying-
behavior/Impact of Culture on Consumer Buying Behavior September 2020
5. HellmutSchütte, Deanna Ciarlante Consumer Behaviour in Asia, McMillan
business 1988

212
 Block-4
The Buying Process
BLOCK 4 THE BUYING PROCESS
This block focuses on the consumer buying process and consists of four units on
problem recognition and information search, information processing, alternative
evaluation, purchase processes, and post-purchase behaviour, in that sequence.
Individual and group influences impinging upon each of these stages have also been
dealt with. Building on the decision process introduced in Unit 1, this block elaborates
on factors affecting problem recognition and information search, buyer choice rules,
inputs in alternative evaluations, and implications of post-purchase behaviour to
provide useful insights for marketers.
UNIT 12 PROBLEM RECOGNITION AND INFORMATION SEARCH
BEHAVIOUR
UNIT 13 INFORMATION PROCESSING
UNIT 14 ALTERNATIVE EVALUATION
UNIT 15 PURCHASE PROCESS AND POST PURCHASE BEHAVIOUR
The Buying Process

216
 Problem Recognition and
UNIT 12 PROBLEM RECOGNITION AND Information Search
Behaviour
INFORMATION SEARCH
BEHAVIOUR
Learning Outcomes
After going through this unit, you should be able to:
 describe the importance of problem recognition in the overall framework
of consumer decision making;
 explain the various issues in problem-recognition;
 map the process of information search in solving the problem (need) so
recognized;
 distinguish factors and compulsions forcing a choice between or a combination
of internal and external search;
 formulate marketers’ response in managing various sources of information
used by the consumers; and
 integrate the learning about two stages of decision-making, viz., problem
recognition and information search.
Structure
12.1 Introduction
12.2 Importance of Problem Recognition
12.3 An Overview of Problem Recognition
12.4 Threshold level in Problem Recognition
12.5 Problem Recognition in the Industrial Buying Process
12.6 Information Search
12.7 Summary
12.8 Key Words
12.9 Self-Assessment Questions
12.10 Project Assignments
12.11 Further Readings
In the fight against the COVID-19 pandemic, social isolation, mask use, and
vaccination were critical preventive measures. On January 16, 2021, India
launched the “World’s Largest Vaccination Drive” with Covishield and Covaxin.
India had the potential to produce 60% of the world’s vaccine stock. The issues
were rarely about production; rather, they were about equitable distribution
due to a lack of adequate cold storage facilities. Furthermore, India’s vaccine
wastage has increased due to a lack of the required number of beneficiaries
per session, a lack of trained vaccinators, and a low shelf life of the vaccine
after vial opening. After cold storage and other logistical concerns, the spread
of misinformation was one of the most significant challenges for the COVID-
19 vaccination drive. The social media communication channels were inundated 217
The Buying Process with an infodemic of fake news about every aspect of the pandemic, from its
origin to its cure.
To manage, deliver, and track the country’s mass vaccination campaign, the
authorities in India have incorporated CO-WIN, a vaccination tracking and
registration app, to manage, deliver, and track the COVID-19 vaccination.
Eligible citizens could book their vaccination appointment through the CO-
WIN platform or AarogyaSetu, India’s COVID-19 contact tracing app, at any
time and from any location. Through contact tracing and self-assessment
features, CO-WIN users could download a QR-coded vaccination certificate
and stay up-to-date on their COVID-19 risk. However, a lack of proper internet
penetration in rural communities could have a significant impediment to the
vaccination drive.

12.1 INTRODUCTION
You would recall from Unit 4 of Block 1 entitled “Consumer Behaviour” in the course
MMPC-006, Marketing Management, how consumers move from one stage of
decision making to another in order to arrive at their decisions for purchases.
These stages are: Problem Recognition; Information Search; Evaluation of Alternatives;
Purchase Action and finally, Post-purchase Behaviour. These stages are followed
sequentially, i.e., one follows the other in a given order, in most consumption
situations.
No decision-making occurs in isolation as a consumer is influenced by his or her
personality as well as society (Refer to Block 2 and 3 of this course). In this first
unit of this block, we focus on the first two stages of consumer decision-making.

12.2 IMPORTANCE OF PROBLEM RECOGNITION

In several text books on consumer or buyer behaviour, multiple terms have been
used to describe the concept of Problem Recognition. They are Need Recognition,
Need Identification, activation of wants or desires.
Problem Recognition is the very first stage of the long process of consumer decision
making and is important for several reasons. Firstly, it provides an initial clue as to
why a buyer buys what he or she intends to. Secondly, it gives a definite direction
to his or her subsequent purchase behaviour stages like information search and
evaluation of alternatives: Finally, it provides marketers with an immense scope for
using their influence in how the buyers may or may not recognize their needs. Thus
a ‘virtuous circle’ exists between problem recognition by consumers and marketers
stimuli or cues that prompt consumers to react in a desired manner. Figure 12.1
exemplifies this circular relationship.

218
 Problem Recognition and
Activity 1 Information Search
Behaviour
Recall any purchase that you made recently (A new laptop, a pair of trousers,
sport shirt or a soft drink etc.). You now describe as to:
a) When did you first recognize the need of that product?
....................................................................................................................
....................................................................................................................
....................................................................................................................

b) When were the marketers’ efforts (stimuli or cues) in the form of

advertisements, sales promotion, product offering or even pricing in order
to help you recognize your need.
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....................................................................................................................
....................................................................................................................

There is even a scope for classifying consumers on the basis of their different problem
recognition styles. The first category of consumers are those who presume that they
have a problem when their product fails to perform satisfactorily. For example, a
wrist watch bought by a consumer no longer keeps accurate time. The second type
of customers are those who recognize the need or problem not because the existing
product has failed to perform but because of their desire of possessing something
new. This partly explains why Titan watches found a ready market even though the
other brands of wrist watches more or less were quality performance products.

12.3 AN OVERVIEW OF PROBLEM RECOGNITION

Need or problem recognition can be both simple and complex processes, subject
to associated conditions. Simple problem recognition refers to needs that occur
frequently and can be dealt with almost automatically. For instance, while shopping
with your friends in the market, you sighted a soft-drink stall and decided to buy a
cold drink. This could also be to reduce the boredom of waiting out your friends
to re-join at a place. Please recall what you studied about extended problem solving,
limited problem solving and routinised response behaviour situations in the first unit
of this course
Complex problem recognition, is that state in which a problem recognition develops
slowly but distinctly over a long time. At a certain time, the desired state of consumer
mind is distinctly apart from the actual state. This causes him to recognize the need.
For example, after several years of using a car, the car-owner begins to consider
trading it in for a new one. The reason could be any ranging from mounting repair
bills to the availability of several new models or simply a desire for novelty and
change.
Notice the difficulty in the complex problem recognition. In the simple problem
recognition, a consumer will definitely recall exactly the time when and why he felt 219
The Buying Process the need of the product. In the complex types, however, even a very careful consumer
may fail. Such difference in recalling or failing to recall the instance of need recognition,
is caused by a varying degree of involvement. The more involved the purchase
situation is, the higher is the likelihood that you would recall exactly what had
happened before you considered the buying of that product or service and vice
versa.

Furthermore, many purchases needs are recognized and concluded at the point of
shopping themselves. These purchases are termed impulse purchase. Figure 12.2
explains the process of problem recognition and the factors that contribute to the
process.

It is clear from Figure 12.2 that a problem can be defined as the “perceived gap
or discrepancy between the existing and the desired consumer positions for a given
product and service”. The existing consumer position reflects how a consumer feels
presently about his consumption or non-consumption of a given product. The desired
consumer situation refers to his expectations and anticipations from the, consumption
or non-consumption of a given product and service. Most often, the perceived gap/
discrepancy between these two stages fashions the needs of the consumer. Thus,
as consumers grow up physically, financially and psychologically, there will be a
perceived gap between their current and desired situations. A growing child will
desire first a tricycle, then a bicycle and then, perhaps, a motor cycle.
Similarly, a housewife will plan her shopping once she notices a stock-out situation
in her kitchen or in other household supplies.
However, natural factors such as the stock-out or the organic growth or financial-
growth cause the difference between the two states of mind rather slowly. Hence,
on most occasions, the gaps between the current and desired states of mind are
accelerated or heightened by various marketing stimuli or efforts. The introduction
of new version of light but powerful laptops with vastly improved features may create
a dissatisfaction with your existing possession.These marketing efforts influence either
the current state of mind or the desired state or both.
220
 Problem Recognition and
Activity 2 Information Search
Behaviour
Select a product out of the following and explain whether you will influence
the‘existing’ or ‘desired’ state of mind of consumers. Also explain why?
 Toothpaste

 Smartphone

 Motorcycle

 Television
Answer: I will influence Existing / Desired (chose one) state of mind of consumers
because_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_______ _______ _______ _______ ____
_______ _______ _______ _______ ____

At the current state of mind, marketers’ may ‘induce’ dissatisfaction in the consumers
for the current stock of products and services. The marketers may also convince
the buyers how obsolete their presently owned products have become (Example,
entry of the precisely angled tooth-brushes, iodized salt, pure spices, phones with
a 48-hour battery life etc., are examples of this trend). Mostly, this dissatisfaction
is pointed towards ‘obsolete’ functioning, style and technology. The efforts of markets
in respect of existing or current state of consumption are however, quite limited.
They are somewhat negative in nature too. Hence, most efforts are made by the
marketers to condition the ‘desired’ state of mind of consumers.
The desired consumer position is achieved by advertising newer uses of the current
products, or, by introducing newer features in the products or offering a value
hitherto unheard of. These marketing stimuli usually promise a higher level of
satisfaction to the consumers. Not only this, the marketer uses stronger appeals
and incentives to accentuate the gap between the existing and desired consumption
situations and thus, accelerate problem recognition. Introduction of 3-door fridge,
smart TVs, geared bicycles and consumer financing or availability of easy credit
facility are some of the many tools that have been used by the marketers in India
in this direction.

Activity 3
Identify at least two latest brands in washing machines or air conditioners by
the multinational companies now operating in India and compare the marketing
messages of these companies by which they persuade the consumers to buy
their brands.
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221
The Buying Process
12.4 THRESHOLD LEVEL IN PROBLEM
RECOGNITION
As explained, problem recognition represents the perceived gap between the existing
and desired state of mind of consumers, which is influenced considerably by
marketers’ stimuli, However, it should be noted here that every ‘gap’ between these
states of mind for a product or service will not result automatically in its ‘need’,
The perceived gap must cross a threshold level if a need for the product were to
become a felt need thus ignite the buying process.
The threshold level refers to “the minimum amount of tension, energy or intensity
which is necessary for the feeling to occur”.
Thus, marketing efforts are directed not only towards creating a gap between the
current and desired states of mind of consumers but they are also towards increasing
the tension level where need recognition is ensured. Examples of such marketing
efforts include easy repayment or credit facilities for various durable and non-durable
products offered by the manufacturers themselves or collaboration with others like
alease Finance company or a bank. Many times, marketers increase the tension
among consumer just by comparing consumers with whom that have bought their
product. The tension increases the chances of leading to need recognition.

Activity 4
a) Did you ever buy a smart television or were involved in the purchase of
one? If yes, recall the ‘tension’ that you had felt before you recognized
the need of the smart television.
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....................................................................................................................
b) If not, assess how marketers are adding to the tension of not having the
latest model of the smart TV?
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12.5 PROBLEM RECOGNITION IN THE

INDUSTRIAL BUYING PROCESS
As you studied in Unit 3 of this course, organisation buying behaviour is a formal
process, involving multiperson activity, and following laid down procedures.The buying
process begins when someone in the company recognizes a problem or need that
can be met by acquiring a good or a service.
Problem Recognition can occur as a result of internal and external stimuli. Internally,
222 the most common events leading to problem recognition are the following:
1. The company decides to develop a new product and needs new equipment Problem Recognition and
Information Search
and materials to produce this product. Behaviour

2. A machine breaks down and requires replacement or parts.

3. Some purchased material turns out to be unsatisfactory and the company
searches for alternatives
4. Purchase manager identifies an opportunity to obtain lower prices or better
quality.
5. Simple stockout situations.

12.6 INFORMATION SEARCH

The search for information commences the moment consumers complete recognition
of their need for a product or service. It also noted here that this search process
is quite deliberate and long-drawn for most consumer durables and always directed
towards the satisfaction of the needs recognized as explained earlier. Thus, when a
person has -recognized the need of a smart television or refrigerator, his search for
information will be directed towards searching for options for smart television or
refrigerator. Search behaviour is always purposive and a deliberate attempt to gain
appropriate knowledge about a product its brands and its important characteristics,
and the stores from where to purchase.
In his search for appropriate knowledge, about the consumer’s information search
behaviour the marketer will face the following questions:
 What are the types of information search and what are their determinants?
 What is the appropriate information load that can be handled by consumers?
 Which sources of information are used by customers? and
 How marketers help facilitate the information search?

12.6.1 Types of Information Search

As per the illustration, in order to satisfy the recognized needs, a consumer resorts
to both external and internal search for information. Internal search for information 223
The Buying Process will be sufficient in case of loyalty-baseddecisions - where the consumer has a strong
favourable experience and brand preferences. It is equally sufficient for impulse
purchases - where such external stimuli as attractive packaging, unusually low price
or vantage display of products stimulate consumers to recognize the need of the
product. The remaining information search is internal and limited in nature. You may
recall the routinised response behaviour and limited problem-solving behaviour covered
in MMPC-006, which are both characterized by internal search for information.
External search, on the other hand, is a mediated, planned, and rational pursuit of
information. In high involvement purchase decisions, external search is inevitable.The
widespread access to the internet an ease of accessing information has added a
new dimension to external search for information which can be carried out without
moving from your desk.Table 12.1: explains the factors that may determine higher
or lower levels of external information search.
Table 12.1: Factors that are likely to Increase Search
I Product Factors
- Long interpurchase time (a long lasting or infrequently used product)
- Frequent changes in product styling
- Frequent price changes –
Volume purchasing (large number of units)
- High Price
- Many brands
- Much variation in features

II Situational Factors
- Experience
* First time purchase
* No past experience because the product is new
* Unsatisfactory past experience within the product category

- Social Acceptability
* The purchase is for a gift
* The product is socially visible

- Value Related Consideration:

* Purchase is discretionary rather than necessary
* All alternatives have both desirable and undesirable consequences
* Family members disagree on product requirements or evaluation of
alternatives
* Product usage from important reference group
* The purchase involves ecological consideration
* Many sources of conflicting information

III Consumer Factors

- Demographic characteristics of consumer:
* Well educated
* High income
* White collar occupation
* Under 35 years of age

- Personality
* Low (open minded)
* Low risk perceiver (broad categories)
* Other personal factors, such as high product involvement and enjoyment of shopping and
search

12.6.2 How Much Information Load?

It is the desire of every marketer to provide the ‘best’ amount of information to its
224 customers for arriving at an optimum decision. This desire has given rise to a
phenomenon called ‘information overload’ in consumer search behaviour. Originally, Problem Recognition and
Information Search
raised by Jacob Jacoby and his associates, the concept of information overload Behaviour
cautions marketers against the popular assumption that: ‘if some information is good,
then more information must be better.’ The marketers are advised, therefore, not
to overload the consumers lest the consumers become confused and make even
poorer decisions than the ones that would have been made without the ‘extra’
information.
Jacoby’s studies proved that while consumer do feel more satisfied and less confused,
they actually made poorer purchase decisions with more information. Further,
increasing the load of package-information affects adversely the consumers’ ability
to select the best brand.

Activity 5
Review the information provided by the leading manufacturers of 100 cc
motorcycles. Would you call it an information overload? Why? Why not?
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12.6.3 Sources of Information

The area of determining the optimum load of information is relevant to government,
policy makers and consumer activities and organizations too. They need to ensure
that consumers are fully informed; that they have impartial knowledge to make the
best choice. In addition, the consumers need to ensure that they are aware of the
cost of searching for right information and that they have a freedom of trade-offs
between one types of information and their combinations with a focus on the cost-
benefit relationship in search behaviour.
A consumer has access to a variety of sources of information. Some of these sources
are controlled by marketers while others are outside the zone of marketers’ control.
Personal friends, independent consumer reports social media, news articles, shopping
columns and the like represent the latter category of information sources. Further,
some of these sources of information are face-to-face while others are non-personal
in nature. For instance, word-of-mouth, salesmen message exemplifies the face-
to-face sources, while advertisement digital and social medias and publicity represent
non-personal information sources. From the purchase evaluation viewpoint, the most
important sources of information are given in Table 12.2.

225
The Buying Process Internet and digital media have appeared as the latest information source. Most
marketers have now shown interest in putting information about them through this
medium either on request or through having site or a page on the net. The power
of this medium is very exciting.
Advertising is the first major source of information. This has remained so in spite
of the risks of overexposure and cluttering of advertising messages. The receptivity
to advertisement pertaining to desired product category, goes up considerably once
the customer has recognized his need problem for the product/service. Though varying
in importance from case to case, advertising has been reported to have provided
35 to 50% of the information sought by the consumers in different purchase
considerations.
In-store material include, display-prices, brochures, danglers, technical report
summaries. The material is useful for both soft-item purchases and the complex ones.
Information on availability of dealers and distribution support and service is given
either exclusively or as a part of advertisement.Dealer/retailers can be easily located
with the help of internet search.
Package information is used mainly to inform customers on the product ingredients
and the mode of using it. However, the markets may use packaging colour and
design to convey a favourable brand personality.
Sales personnel have a major role to play as a source of information for consumer
durables like appliances, furniture, electronics and clothing etc., and in almost all
industrial products. Being both expensive and uncertain in its effectiveness, this source
of information is provided with immense care and caution by the marketers.
Finally, samples and demonstrations are one of the most effective source of
information to consumers. Besides being custom-built, the product demonstrations
have now been standardized and used on a mass-media like television. Use of samples
provides a risk-free source of information and may create a favourable impact for
marketers.

Activity 6
a) Identify some product that you believe require reasonably intensive
prepurchase search by a consumer. What characteristics do such products
have in order to draw general lessons in this regard?
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b) For each of the products that you listed, identify the perceived risks that
a consumer is likely to experience prior to purchase. Discuss how the
marketers of these products can reduce these perceived risks.
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226
12.6.4 Marketers’ Influence on Information Search Problem Recognition and
Information Search
Behaviour
The marketing implications of the search behaviour are broad ranging. For one thing,
it makes marketers aware of how customers search for relevant information and
for another, it helps them facilitate the search process in favour of their marketing
stimuli. Broadly, the marketers influence the search process through the areas of
advertising on both traditional and digital media, product and packaging policies
and pricing.
Advertising poses a complex problem to marketers because consumers have a
tendency of selective reception and perception. This adversely affects the marketers’
efforts in advertising and forces them to continuously monitor the effectiveness of
advertising. With passage of time, audience-erosion occurs in the receptivity of
advertisements. Further, interpretation of stimuli may convey to consumers a picture
much different than what the markets had intended. ‘Review’ is the key word,
therefore, in this context. Marketers may also vary the contents of products periodically
and its packaging design. It not only averts the potential boredom among consumers
but also conveys an image of moving with time and preference changes by the
marketers. The introduction of words like ‘new’ ‘improved’ ‘better’ or ‘power packed’
are just the examples of this strategy followed by Indian marketers in recent times.
Changes in packaging design and colour can further stimulate the consumers search
process and push information process through the threshold level of attention.
In pricing, the marketers may convey a desired price quality perception among the
buyers by effectively reviewing pricing permutations and combinations. Consumers
may look at price-tags to acquire information about the quality variations and
perceptions and to determine their own level of confidence in these matters.

12.7 SUMMARY
Problem or need recognition is the first stage of the buying decision process in most
purchase situations. The problem recognition refers to consumer attention to the
gap between the ideal or desired state and existing state of mind. Buying motives
are the chief contributions to this gap and it normally determines the content and
direction of the rest of the decision-making process. Search for information takes
place after the recognition of need. The search could be external or internal or both.
Varying from one purchase situation to another, it covers issues like the nature of
information search; the optimum amount of information searched; the sources used
for search and the marketers influence on each of them. Typically, it refers to a
process whereby consumers seek information to learn about the advantages and
disadvantages of various alternatives like product, brands and their salient attributes
for evaluation purpose, in a decision-making process.

12.8 KEY WORDS

Audience Erosion : A gradual weakening of the impact of advertisement with
the audience.
External Search : The act of deliberately collecting and using information for
a given purchase decision.
227
The Buying Process Internal Search : The act of retrieving information from stored memory.
Information Overload : The ‘excess’ information that brings no benefits and may
lead to poor decision making.
Information Search : The act of acquiring, processing and using relevant
information for a consumption decision.
Impulse Purchases : It refers to the unplanned purchases made at the point
of purchase.
Involvement : The level of perceived importance and importance
evoked by a stimulus within a given situation.
Obsolescence : The perceived or real feeling of outdatedness.
Problem Recognition : The realization by the consumer that there -is a difference
between ‘what is’ and ‘what should be’.
Stimuli : The cues or actions that evoke/stimulate a reaction from
the receiver.
Threshold Level : The lowest level at which an individual can experience
a sensation.

12.9 SELF-ASSESSMENT QUESTIONS

1. How does the problem recognition stage vary between a low involvement and
a high involvement purchase? How can the marketers benefit from these
variations?
2. Why is information search behaviour so important to the marketers? Discuss
the media available to marketers in helping external search.
3. How will an urban consumer dieter from a rural consumer in similar purchase
needs? Is the difference really substantial?
4. How can marketers increase consumers need for socially relevant products like
having regular medical check-ups at health centres or buying highly nutritious
and health-foods in India?

12.10 PROJECT ASSIGNMENTS

1. Go shopping with a friend or your family member or any other relative for any
consumer product. (a) Observe his or her information search behaviour in the
market place without informing in advance. (b) Encourage your companion to
express his thoughts and reactions as you both move along. (c) Supplement
your observation report by asking questions before and/or after the purchase
was concluded. (d) Analyze which marketing stimuli he/she missed and why?
2. Conduct a survey of five dealers of smart TV/refrigerators in your town, and
report on the mistakes that in their view buyers of these products make at
the stage of need recognition. Also explore how these dealers benefit from
them.
228
 Problem Recognition and
12.11 FURTHER READINGS Information Search
Behaviour
1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.

229
The Buying Process
UNIT 13 INFORMATION PROCESSING
Learning Outcomes
After going through this unit, you should be able to:
 explain the value of information processing in the overall process of consumer
buying behaviour;
 explain in detail the stages in the information processing of the consumer;
 develop insights in making effective marketing communication for information
processing in favour of your brand/product offers.
Structure
13.1 Introduction
13.2 Concept of Information Processing
13.3 Exposure
13.4 Attention
13.5 Comprehension
13.6 Acceptance/Yielding
13.7 Retention
13.8 The Imaginal Processing
13.9 The Influencing Factors
13.10 Marketing Implications of Information Processing
13.11 Summary
13.12 Key Words
13.13 Self-Assessment Questions
13.14 Project Question
13.15 Further Readings
Have you noticed that sometimes we go into a store (or a website) with the
aim of buying one brand but leave with a different brand or additional products?
Store atmospherics,web design dynamics and other Influencing factors operating
within the retail outlet or the webpage induce additional information processing,
which in turn influences the final purchase decision. The fact that in the retail
outlet consumers often purchase brands other than or in addition to those
planned leads to more effective marketing strategies than viewing such purchases
as haphazard or illogical.

13.1 INTRODUCTION
As we all know, marketers need-to communicate. For that matter anybody in the
society needs to communicate. However, the format and the intensity of stimuli may
differ among the persons themselves as well as among the marketers. The net result
is that we are all bombarded with continuous and countless stimuli from our
230 environment.
Fortunately, or unfortunately, our brain’s capacity to process information is limited Information Processing
and finite. Thus, consumers are very selective about what they pay attention to. As
a consequence of the process of selectivity, people attend to only a small portion
of stimuli to which they are exposed. Consumers practice a form of psychic economy,
picking and choosing among stimuli, to avoid being overwhelmed by advertising
clutter. This over-abundance of advertising stimuli highlights the importance of
information processing.
Figure 13.1 provides an overview of the communication process that links the marketer
with the consumers.
Figure 13.1:Anoverview ofthecommunicationprocess.

Activity1

Analyze the figure13.1 and write down your reactions in the space given below
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13.2 CONCEPT OF INFORMATION PROCESSING

Information processing is described as “a series of activities by which stimuli are
transformed into information, stored and used”. It thus serves the purpose of linking 231
The Buying Process an individual with groups, situations and, in our present context, with marketing
influences.
The words Information processing consist of two separate terms: Information and
Processing. Let us briefly look at these to get a clearer sense of what is involved.

13.2.1 Information
Information is a commonly used word which makes us most of the time immune to
its powerful meaning. Thus, information is “all facts, estimates, predictions, and
generalized relationships which affect a decision maker’s perception of the nature
and extent of uncertainties associated with a given consumption problem or
opportunity”.
Facts: are the simplest form of information and have the characteristic of being
either directly observable or verifiable as an accurate representation of a given
phenomenon or event. Thus, that Tata Magic is made by the Tata Motors is a fact.
Estimates: as a form of information is based on inferences. The inference may be
drawn either logically or statistically derived. Since collection of facts all the time,
may be unnecessary as well as expensive, the estimates are used. In the context of
the Hero cycles, the estimates are that it is the largest selling bicycle in India.
Prediction: Unlike the first two forms of information mentioned so far, prediction
is futuristic in nature since it makes forecasts of events yet to happen. Thus, Hero
cycles as a brand will continue to dominate the Indian Cycle market in coming years
is an example of prediction.
Generalized Relationship: This form of information is a form of linkage between
the past and the future or links the facts with inferences. Thus, we can say that
Hero Cycles adopted the policy of large production, low cost, and branding in order
to achieve the large sales volume that they have made.
In the context of consumer behaviour, the precision is necessary in clarifying as to
what form of information is being referred to.

Activity 2
Reflect upon the meaning of information as mentioned in the section and list
two advantages of this approach:
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13.2.2 Processing
Processing refers to the act(s) by which the stimulus is converted into response.
Figure 13.2 portrays the most common model of information processing. There are
five stages of processing Exposure, Attention, Comprehension, Yielding, and Retention.
Ideally, it is the wish of every marketer to ensure that his message passes through
all the five stages of the information processing. In reality, most of the times such
232 wishes are belied as the stimulus may die during any of these stages.
 Figure 13.2: The most common model of information processing Information Processing

Activity 3
Analyse the figure 13.2 and write down your reactions in the space given below.
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13.3 EXPOSURE
Exposure is ‘the degree to which people notice a stimulus that is within the range
of their sensory receptors’. Consumers concentrate on some stimuli, are unaware
of others, and even go out of their way to ignore some messages. During their daily
activities, people are exposed to a large number of stimuli at random. While driving,
you may hear commercials, see billboards and display advertisements, and so on
that you did not intend to see. There are hundreds of television channels, thousands
of radio stations, and countless magazines, websites, and digital media platforms
available today in addition to the countless billboards and hoarding that line up our
roads and walls. An individual can be exposed to only a mere fraction of the available
stimuli.
An experiment by a management school on consumer exposure to information on
the statutory warning against smoking of cigarettes brought this out fully. There was
a confirmation of consumers’ tendencies to miss or ignore information in which they
are not interested. Similarly, in USA, after a state law was passed that required
banks to explain details about money transfer in electronic banking, the Northwestern
National Bank distributed a pamphlet to 1,20,000 of its customers at considerable
cost to provide the required information, which was hardly exciting bedtime reading.
In one hundred of the mailings, a section in the middle of the pamphlet offered the
reader $10.00 just for finding that paragraph. Not a single person claimed the reward.
This just illustrates that no matter what information overload is created by marketing
stimuli. Consumers will selectively be exposed to a very small fraction of these.
We will now discuss the factors that determine this selectivity.
233
The Buying Process 13.3.1 Selective Exposure
It refers to the truncated outcome of exposure. Experience is one factor that
determines how much exposure to a particular stimulus a person accepts. Thus, if
our past experience about the messages is not very stimulating, we will use what
we term as the perceptual fillers, and will let them influence what we decide to
process.

The zipping, zapping, and muting of commercials, use of the skip ad button while
watching your You tube programme of flipping the ad while reading a magazine
demonstrates the self-selecting nature of media exposure. When one fast-forwards
through a commercial on a pre-recorded programme, this is referred to as zipping.
When a commercial comes on, zapping involves changing channels. Muting is the
process of turning off the sound during commercial breaks.

Perceptual vigilance is another factor causing selective exposure. Consumers are

more likely to be aware of stimuli that relate to their current needs. These needs
may be conscious or unconscious. A consumer, who rarely notices car ads, will
become very much aware of them when he or she is in the market for a new car. A
digital media ad for a fast-food restaurant that would otherwise go unnoticed becomes
significant when one glances at the smartphone in the middle of a five o’clock class,
when he has already started feeling hungry

13.3.2 Adaptation
It is another factor that affects exposure. Adaptation is ‘the degree to which
consumers continue to notice a stimulus over time’. The process of adaptation
occurs when consumers no longer pay active attention to a stimulus because it is
so familiar.

Almost like drug addiction, a consumer can become “habituated” and require
increasingly stronger “dose” of a stimulus for it to continue to be noticed. For example,
a consumer enroute to work might read a billboard message when it is first installed,
but after a few days, it becomes part of the passing scenery. The following factors
can lead to adaptation.

Intensity: Less intense stimuli (e.g., soft sounds or dim colors) habituate because
they have less of a sensory impact.

Duration: Stimuli that require relatively lengthy exposure in order to be processed,

tend to habituate because they require a long attention span.

Discrimination: Simple stimuli tend to habituate because they do not require attention
to detail.

Frequency: Frequently encountered stimuli tend to habituate as the rate of exposure

increases.

Relevance: Stimuli that are irrelevant or unimportant will habituate because they
fail to attract attention.
234
 Information Processing
Activity 4
Reflect upon the meaning of adaptation as mentioned in the section and add
two more factors that can lead to it.
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13.4 ATTENTION
Attention is ‘the degree to which consumers focus on stimuli within their range of
exposure’. Because consumers are being exposed to so many advertising stimuli,
marketers are becoming increasingly creative in their attempts to gain attention for
their products. Dynamic packaging of information or stimulus is one way to gain
this attention. For instance, a jam and jelly maker in India portrayed an adult enjoying
this product but chatting and fretting like a baby.With the tagline “It’s Slick, It’s
Quick, It’s Chik-Chika-Chik-Chik-Chik”. Similarly, the jingle ‘Paytm Karo’ attracts
attention for easy and convenient mobile payment.Thus, in sum, attention is the
assignment of cognitive ability to a given stimulus.

Activity 5
Recall at least three ads which in your opinion, display creativity to gain attention
of consumers.
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13.4.1 Underscoring
Underscoring the paramount need of being always ahead in the art of gaining
consumer attention, some media and communication consulting firms have established
elaborate procedures to measure the attention of consumer on several fronts. Thus,
for gaining attention to packages, or enhancing package effectiveness, they recommend
using such instruments as an angle meter, which measures package visibility as a
shopper moves down the aisle and views the package from different angles. Similarly,
data from eye-tracking tests, in which consumers’ eye movements as they look at
packages and ads are followed and measured, can result in subtle but powerful
changes that influence their impact. For example, eye-tracking tests on an ad for
Bombay gin showed that virtually no consumers were reading the message (in relatively
small type) below the visual portion and that the Bombay bottle (also relatively small)
positioned to the right of the visual portion was not seen by nine out of ten readers.
The result was low recall scores for the ad. In a revised ad, the bottle’s size was
increased, and the message was emphasized. Recall scores for this version were
almost 100 percent higher than for the original. There are some tested methods by
which the marketers gain the attention of consumer to what they are trying to
communicate:
235
The Buying Process 13.4.2 Contrast
When many stimuli are competing to be noticed, one will receive attention to the
extent that it differs from those around it. Thus, contrasting is another way of gaining
attention of the consumers. Stimuli that fall into unpredictable patterns often command
a lot of attention. For example, Aamir Khan, a Bollywood actor, played the role
of female Soniya in the Godrej commercials ‘Zindagi Muskuraye,’ which were aimed
at urban dwellers for promoting a new range of products. Black and white ads on
colour TV or in a full colour magazine are good examples of using contrast to attract
attention

Size and format differences: Another powerful way to achieve contrast is to use
a different colour and format. The size of the stimulus itself in contrast to the
competition is also important. Readership of a magazine ad has been shown to increase
in proportion to the size of the ad. In terms of format or placement, placing a marketing
stimulus in a different format, for example using advertorials,

13.4.3 Closure
The principle of closure implies that consumers tend mentally complete a partially
complete stimulus to achieve closure and therefore perceive an incomplete picture
as complete. That is, we tend to fill in the blanks based on our prior experience.
This principle explains why most of us have no trouble reading a neon sign even if
one or two of its letters are burned out or filling in the blanks in an incomplete
message. The principle of closure is also at work when we hear only part of a jingle
or theme. Utilization of the principle of closure in marketing strategies encourages
audience participation, which increases the chance that people will attend to the
message.

Activity 6

Recall at least three ads which in your opinion, employ the theory of closure
in gaining attention. Also offer your assessment as to why the advertiser has
gained through this strategy.

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13.4.4 Principle of Similarity

The principle of similarity is based on the thesis that “consumers tend to group together
objects that share similar physical characteristics”. That is, they group look- alike
items into sets such that they form an integrated whole. Liril soap relied upon this
principle when the company HUL (Hindustan Unilever Limited) redesigned its
packaging as well as the campaign to bring out the fragrance of lime sensation. It
created a `’sea of lime sensation” everywhere to unify all of its different attributes.
Similarly, Lux has created the aura of “the cine star’s soap”.
236
13.4.5 Figure-Ground Relationship Information Processing

Another important principle is the figure-ground relationship, ‘in which one part (the
figure) will dominate while other parts recede into the background’. Figure 13.3 is
an example of the same. This concept is easy to understand if one thinks literally
of a photograph with a clear and sharply focused object (the Figure) in the centre.
The figure is dominant, and the eye goes straight to it. The parts of the configuration
that will be perceived as figure or ground can vary depending on the individual
consumer as well as other factors. Similarly, in marketing messages that use the
figure-ground principle, a stimulus can be made the focal point of the message or
merely the context that surrounds the focus.
Figure 13.3

Activity 7
Contrast the principles of closure and the figure ground relationship in training
attention of the customers. Which is likely to be more effective in the context
of teenagers?
....................................................................................................................
....................................................................................................................
....................................................................................................................

13.5 COMPREHENSION
Comprehension is supposed to have occurred “when the consumer has placed the
stimulus into any known or familiar categories in their mind and have assigned the
meaning to them.” In general terms, comprehension refers to understanding or deriving
meaning out of a given stimulus. For example, Robin Blue is associated with whiteness
of clothing n account of the traditional understanding of indigo as a whitening agent
and Margo soap with neem because of the long association that has been built by
the brand with neem.
The process of understanding is just not the function of how effectively the message
has been structured. The entire process is affected by factors like cultural values
of the social system and the prior expectations of the receivers. For instance, focused
on the country’s reliance on ayurvedic products, Patanjali positioned itself as a herbal
brand. In a short span of time, it created a name for itself and fuelled the expansion
of the herbal products market. Endorsement by Baba Ramdev, an expert in Yoga
237
The Buying Process and Ayurveda have ensured the significant presence of patanajali products in FMCG
sector. More than the products, a segment of consumers perceived these products
as a way to live a healthier lifestyle by using products with no chemicals or harmful
additives.
Comprehension has two dimensions in the case of marketing to children. The first
is that children often do not understand the persuasive intent of advertisements, and
they also do not understand specific words and phrases in commercial messages.In
some countries there are very strong guidelines on advertising to children. A prominent
brand of toys once advertised their expensive range of toys with the byline “parents
who care, buy……….”. The ad was considered unethical as it had the potential
of creating negative feelings among children who, however much they cared, could
not afford to buy this range.

Activity 8
Recall at least two advertisements that are aimed at children. Assess these
advertisements from the standpoint of children’s comprehension.
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

13.6 ACCEPTANCE / YIELDING

The acceptance of the intended meaning of the marketing communication refers to
the process of ‘accepting or the tendency to accept new or varied information or
meaning there from and absorbing it in the cognitive structure and long-term memory”.
In simple words, it refers to the act of agreeing or disagreeing with the incoming
stimulus of the marketer. Thus, for instance, the fact that whether we accept or not
the message of the marketers to pay a higher price for the environment friendly
products, is an indication of whether we accepted the stimulus or not.

13.6.1 Resistance or Unyielding

Usually, consumers do not fight off with the marketers for their new meaning or
inputs. If they don’t like a given input, they may just ignore it or make it a topic of
social discussion at get togethers. This is a form of mild resistance or lack of
acceptance. Thus, the consumers may not argue with the marketer whether a particular
brand of detergent removes spots or not.
However, the stage becomes quite significant when some very important messages,
particularly seeking a major behavioural change, are being communicated. For
instance, a marketer asking us to allow freedom to the children to make their own
purchases or to go for a new brand or the newer version of the brand in a very
short time. The messages could be resisted rather actively. Thus, suggestive dialogues
or sexually embedded messages in, the prime time of the family TV hours could
be unwelcome and therefore unacceptable by the Indian consumer. The early versions
of the ‘Kamasutra’ ads are an example for this active unyielding for the messages.
238
13.6.2 The Ways to Resist Information Processing

There are several ways by which consumers may ‘tend to unyield’ or resist in respect
of marketing messages. The first way is to list counter-arguments. Thus, the consumer
may say that the washing powder that claims to soften the wash or remove stains
is not credible as the similar ones have failed in the past and this one too will fail.
The second way is to attack the source of the message. Thus, the customer may
argue that the brand of the detergent under discussion has been brought out by a
company that has failed several times in the past or that the celebrity that is endorsing
the product in doing so only for money and no commitment. The third way is to
seek support evidence or arguments. Thus, the consumer may argue that before
she accepts the claim of the company, she would like to see the chemical report or
the experiment results or the lab report or any other support argument. The fourth
way is to resist persuasion to believe. This happens when the earlier meaning attached
to the stimulus is too deep rooted and the consumer while he, understands the mistake,
ostensibly resists the persuasion. In case of the continuing example of the detergent,
the consumer may see the trial results or the lab report but may still resist to be
persuaded to believe the claim. It could be due to any reason, ranging from the
cognitive defence or an ego hassle or may be a disinclination to change the brand
presently in use.

Activity 9
Review the answers you have given in the activity 8. Do you agree with them?
Why or why not?
1. …………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
2. …………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

13.7 RETENTION
Retention refers to the last stage of the information processing. It signals ‘the entry
or the arrival of the stimulus in the long-term memory of the consumer’. You have
gone through a detailed discussion about memory in Block 2, Unit 5. To remind
you, it is sufficient to say here that the retention is the ideal objective of the company
in the context of information processing and that this helps customers develop attitude
as well as beliefs about the consumption situation.

13.8 THE IMAGINAL PROCESSING

So far, an impression seems to be gathering that information processing means word
processing. This is incorrect and wholly inappropriate particularly today when images
seem to be overtaking the words in communicating the messages. Availability of 239
The Buying Process Computer graphics, the tendency of the consumers to rush through the messages
and the decidedly better effectiveness of the pictures, images or videos to convey
the message has forced the marketers to understand imaginal processing as well.
It is also easier to recall a picture or visual memory as research shows so marketers
need to understand and utilise inputs on image processing by consumers.
Another important issue is the pictures that words seem to create. This is dependent
on the power of suggestions and inferences or innuendos created by words.
Sometimes the style of writing may force the consumer to visualise the whole
consumption experience. Three aspects deserve our attention in this context the
first is the imagery vividness. It refers to the aspect of clarity of the mental image
that the message creates. The second factor is the message control. It refers to the
ability to self-generate mental images and manipulation as soon as the cue(s) are
given by the marketer. The third factor is the Imagery style that reflects the willingness
on the part of the consumers to habitually engage in the imaginal processing as soon
as the cues are given. The situation is involuntary.
The final issue here is the use of the ‘allegories and metaphors in information and
how the consumers process these symbolic messages. The first is the processing
of metaphors, which is essentially, is the use of simile (example: evening of life, suggesting
old age). The other is the personification, which represents the abstract qualities
as if they were person (example: The Air India’s Maharajah).

Activity 10
Draw a picture that in your view portrays the message of Dove soap or the
Fair and handsome cream for men.
....................................................................................................................
....................................................................................................................
....................................................................................................................

13.9 THE INFLUENCING FACTORS

Having gone through all the five important stages of the information processing, it
is important to take them as a whole and identify what are those factors that influence
the stages of the information processing: In doing so, it is not to deny that specific
factors have more relevance to the pertinent stage. Thus, the influencing factors of
exposure may have little relevance for retention or vice versa. Yet the fact is that
there is a need of identifying a common set of factors that have a bearing on all the
stages of the consumer information processing.
The first influencing set of factors is the demographics of the consumers or the
receivers. Thus, it is believed that older consumers process less amount of new
information as compared to the younger ones. Similarly, there could be gender related
difference in the amount of information processing. Men and women differ significantly
in terms of selective exposure, comprehension and retention.The housewife may
have a different way of information processing than a working woman, even though
they may share other demographic details.
240
The second factor is the psychographic factors. Thus, a person having a distinct Information Processing
interest in advertising may process advertisement differently than the ones who have
interest in other field say, sports. Similarly, opinionated person deliberately seeks
more information and are known to devote more time in analysing them.
The third factor is the information characteristics themselves. Rational appeal vs
emotional appeal has a different outcome in consumer information processing. Single
sided vs. two-sided advertisement are processed differently.
The fourth influencing factor is the cultural environment. People derive their usual
meaning from the environment they live in, as you have studied in the Unit 11 of
this course. The prevailing set of notions and expectation in the environment will
force these consumers to process the marketing stimuli differently and interpret it
differently. Thus, an insolent young man talking back to his parents may not be
understood in the right manner in the oriental context where the respect for the
elders is paramount. The meaning of colour is very culture determined for example
the colour white is a symbol of purity and innocence and is the traditional colour of
wedding ensemble for a bride in western cultures whereas in South Asian culture,
pure white wedding ensemble would be strongly discouraged as it is taken as a
colour worn during mourning
The fifth and final influence may stem from the media characteristics themselves.
Thus, a particular medium may not help or actually retard consumer information
processing. No wonder therefore, marketers supplement one medium with the other
in order to facilitate the information processing of their messages.

Activity 11
List the few more factors that may influence the consumer information processing
in rural India in your opinion.
1. …………………………………………………………………………
……………………………………………………………………………………
2. …………………………………………………………………………
……………………………………………………………………………………
3. …………………………………………………………………………
……………………………………………………………………………………

13.10 MARKETING IMPLICATIONS OF

INFORMATION PROCESSING
A marketer can ignore the understanding of consumer information processing only
at his own peril. The following facts merit special attention in terms of aiding
consumer’s information processing mechanisms:
1. The design of the message (use of colours, contrast, structure etc.)
2. The concept of proximity (the context in which the message is being given. 241
The Buying Process For instance, an advertisement for a serious product appearing in the slot for
a humorous programme etc.)
3. The concept of selective exposure (the consumer tendency to skip the
commercials or leaving the place during the commercial break)
4. Influence of values (conforming or violating the values like respect to elders,
love to the younger ones, ridiculing the marital relationship etc.)
5. The distortion in the physical stimulus properties (poor transmission causing
distortion in the message or the picture of the marketing message, or, poor
printing or composition of the newspaper or the magazine carrying a message
etc.)
6. The effect of information over-load (the situation where too much information
is placed before the consumer and he feels completely overwhelmed by the
enormity of it. The result: poor use of the information as well as irritation)

Activity 12
List three most important implications that may influence information processing
by school-going children.
1. ……………………………………………………………………………
………………………………………………………………………………
2. ……………………………………………………………………………
………………………………………………………………………………
3. ……………………………………………………………………………
………………………………………………………………………………

13.11 SUMMARY
The unit raises the issue of how the consumers process information and where the
marketers may help the process by using appropriate strategies based on the
understanding of information processing. The unit begins with an overview of the
information. Then it defines the information as a process of converting stimuli into
the meaningful pattern. The five stages of the information processing viz. exposure,
attention, interpretation, acceptance and retention are dealt with in detail. An interesting
issue of imaginal processing is also addressed in the unit. The unit closes by discussing
the marketing implications in general, of various information processes.

13.12 KEY WORDS

Sensation : The immediate response of the sensory systems (eyes, ears, nose,
mouth, fingers) to a stimulus.
Exposure : The initial stage of information processing where the stimuli come
within the sensory systems.
242
Attention : The assignment of cognitive ability to the inputs sensed by the Information Processing
consumers’ physical senses.
Adaptation : The process where the sensation becomes so familiar that the
stimulus no longer remains the focus of attention.
Yielding : The stage where the stimulus so interpreted is also accepted by
the consumer and retained in the belief system.
Overload : A situation where the information is far too much than the consumer
can reasonably process or make any meaning out of it. The result
is sub-optimum use of the information.

13.13 SELF-ASSESSMENT QUESTIONS

1. Define, information processing. How is it different from learning?
2. Elaborate the process of attention. How effective in your view is the use of
creative packaging as a device to gain attention by the marketers?
3. Differentiate between interpretation and yielding. How does the former affect
the latter?
4. Is the stage of acceptance relevant in all types of information processing? If
not, in what situations it may not form the part of consumer information
processing?

13.14 PROJECT QUESTION

1. Select five children related advertisement and show them to 10 children in your
neighbourhood. Check their interpretations by these children and compare them
with the intended meaning of the marketers. Write down your analysis.

13.15 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018). “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018). “Consumer Behaviour: Buying, Having, and Being”
Twelfth edition, Pearson Education.

243
The Buying Process
UNIT 14 ALTERNATIVE EVALUATION IN
BUYING DECISIONS
Learning Outcomes
After going through this unit, you should be able to:
 link alternative evaluation with the other stages of buying process;
 discuss the genesis and the’ process of evaluation of alternatives;
 explain the choice heuristics; and their managerial implications;
 identify the most relevant marketing approaches to influence the general
choice making behaviour.
Structure
14.1 Introduction
14.2 Alternative Evaluation: The Four Components
14.3 Formation of Brand Sets for Alternative Evaluation
14.4 The Choice-Making Rules
14.5 The Basic Choice Heuristics
14.6 The Marketing Response to the Choice Heuristics
14.7 Summary
14.8 Self-assessment Questions
14.9 Project Questions
14.10 Further Readings
Indian Railway Catering and Tourism Corporation (IRCTC) pioneered internet-
based rail ticket booking through its website accounted for 79.63% of the total
reserved tickets booked online on Indian Railways in 2020-21(https://irctc.com/
internet-ticketing.html). Passengers can book their train tickets by providing
the desired origin and destination of their journey (train number), travel class,
and the date for which ticket is to be booked. Various alternatives are available
for ticket booking in three-tier air-conditioned coach (3AC), two tier air-
conditioned coach (2AC), and sleeper coach (SL) depending on availability
in the desired train. If the confirmed seats in the desired train are not available,
there are two more options for booking tickets: Reservation Against Cancellation
(RAC) and Waitlisted (WL). Furthermore, the IRCTC website provides
information on alternate trains available for the desired route on alternate
dates of travel, and option for Air-ticket booking.These developments created
a new input for the consumers’ choice making and evaluation of rail travel.

14.1 INTRODUCTION
How do consumers choose one brand from among the brand alternatives? Do
consumers use any identifiable and visible choice rule for evaluation? Do consumers
select the best alternative and reject the bad ones? How do they find their way in
244 a maze of brand alternatives with significant attribute differences?
Although answers to each of the above-posed questions are of primary importance Alternative Evaluation
to marketers, there is hardly any simple or single answer. For one thing, consumers
use different evaluative criteria in different buying situations despite the product being
the same. For another, a plethora of evaluation processes are used in this respect.
Thus, a buyer of personal computer will find many computer attributes to consider
and many ways to do it.Again, whether he is taking this decision as a planned activity
with sufficient time at his disposal or has to make an urgent replacement decision
in emergency because of a computer breakdown situation.
This unit will attempt to de-mystify these very complexities of the attribute evaluation
process. What is important however to note here is that the process is influenced
by a number of principles and links up psychological processes that are described
in this entire course.

14.2 ALTERNATIVE EVALUATION: THE FOUR

COMPONENTS
Alternatives emerge for a consumer after having made an attempt to gather information
about the intended purchase. As a result of information search, consumers will have
found the following with reference to his product needs:
 Product Attributes of different alternatives

 Utility function of each attribute

 Importance Weights of attributes that the consumer wants to apply

 Set of brand beliefs that prevail about the different alternatives

Figure 14.1 illustrates the information sought in the search behaviour which is of
importance to the stage of alternative evaluation. Given below is a description of
each of these four constituents of alternative evaluation:
Figure 14.1: Types of information Sought

14.2.1 Product Attributes

We have noted in our introductory course on marketing MMPC-006 as to how a
product is best described as a “bundle of benefits expressed through its attributes
desired by its target consumer”. Thus, during information search, consumers may
245
The Buying Process identify several attributes of their needed products. For instance, a person intending
to buy a family car may find styling, low maintenance cost, fuel efficiency and price
as the attributes of the car. Similarly, a female buyer of lipstick may conclude after
information search that range of shades, packaging, price and prestige factor are
the desired attributes. The product attributes vary with consumers. Further, they
are always determined by consumer needs.

14.2.2 Utility Function

Attribute so identified has a utility function. However, the utility may not be functional
all the time. It could be emotional. For instance, the attribute of fuel economy in
the car has an obvious functional utility as well as the feeling that a person is aware
of the macro need of saving precious fuel. Similarly, in the example of lipsticks,
both functional and emotional utility play a role in respect of price of a lipstick.
The treatment is wider than an economist would like to us to believe.

14.2.3 Importance Weights of Attributes

All attributes identified by a consumer are not likely to be of equal importance to
them or others. Different buyers of similar products differ in their perception. Thus,
for instance, a middle-class car buyer may discover during information search that
fuel-economy is more important than styling, while the reverse may be thought so
by a high-income buyer. Similarly, a rural lipstick buyer may reach the conclusion
that price is more important than prestige factor while the reverse may be held by
her urban counterpart. Be that as it may, the importance weights help consumers
reach a balanced evaluation.

14.2.4 Brand Beliefs Based on Consumer Perception

During information search, consumers come to know about different claims and
standings of the brands-more commonly known as brand-image, on its salient
attributes. The brand image helps consumers in believing which brand is more likely
to have a particular attribute. It should be noted here that these brand beliefs are
based on consumer perception and may sometimes be at variance with reality. Thus,
the potential car buyer may believe that Maruti Swift car has a style while it may
not be actually true (its style quotient may actually be lower than a competing brand).
By the same token, the potential lipstick buyer may believe that Lakme brand has
the attribute of economy - quite at variance with reality.

The alternative evaluation process is the interplay of these four factors. After
having ascertained that the brands under consideration possesses all the desired
attributes, consumers will identify how their satisfaction (utility) will vary in
response to changing levels of performance in those attributes. Thus, the potential
car buyer will decide how much will it mean to him in utility terms if brand “X”
of car possesses 4/10 level of performance in fuel-efficiency, instead of, say,
6/10 level of style. The same could be argued in the case of the female lipstick
buyer. The advantage of utility function is that by combining the performance
levels of salient attributes, consumers can make up what is called an ‘ideal’ brand
for this purpose.

246
 Alternative Evaluation
Activity 1
Using the above format, please identify three brands, four attributes, their
respective weights and their utility function in respect of a laptop/personal
computer.
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................

14.3 FORMATION OF BRAND SETS

FOR ALTERNATIVE EVALUATION
A crucial aspect of alternative evaluation is a decision on how many brands as
alternatives will engage the consideration of consumers. As stated before, during
information search, whether internal or external, a consumer would come to know
the existence of various brands available in the market. For instance, a potential
buyer of a laptop would find that a large number of brands of laptop are available
in India. Box 1 in Figure 14.2 lists these brands. These brands constitute the ‘total
set’ to a particular buyer. However, the potential buyer may be ‘aware’ of only
few of these brands, called as the ‘Awareness set’. Box 2 lists this set of brands.
Box 3 contains brands that are unknown to buyers. Box 4 contains the set of brands
that meet the initial expectations and evaluative criteria of the consumer. This set
of brands is known as the ‘consideration-set. Further, many of the brands in the
Awareness set may have to be summarily dropped out of the consideration for reasons
of their non-suitability to the consumer or their non-availability in the city he or she
lives. Such remaining brands are clubbed under a set termed as the ‘Inept-set’,
as illustrated in Box 5 of the figure. Some brands though they are in the awareness
set may not be in active consideration on account of a different operating system
used with which the buyer is not familiar. This would constitute the Inert set as
shown in Box 6. After having given these brands due consideration, the number of
brand alternatives will further go down and will constitute the ‘choice set’ (Box
7), indicating the existence of only those brands that are under strong and intensive
consideration and are in the contention for the final choice. The Box 8 will contain
the ultimate brand of laptop that has been chosen or decided upon by the consumer,
in this process of brand consideration, elimination and choice. Box 9 consists of
brands actively evaluated but not chosen.
It is important for you to note that these sets as shown in the figure, do not remain
static at all. Consumers brand choice is a dynamic process that changes over time.
As the buyer’s awareness of different alternatives changes, or new brands get
introduced, the components of Boxes, 1, 2, 3 will change.
Brands in the Boxes 5, 6 and 7 also undergo change as the buyer’s experience and
choice criteria undergo a change on account of his exposure to the newly introduced
Brands, new features introduced in competing Brands and so on. His choice set and
the brand chosen ultimately in the next round of purchase may therefore also change.
247
The Buying Process Figure 14.2: How many brands to consider?

Activity 2
Recall a purchase of any durable consumer product (Refrigerator, Car/
Motorcycle, Washing Machine, Wrist Watch etc.) that you may have made
recently. Identify the successive sets of brands as illustrated in Figure 14.2. In
case you experience any difficulty in listing these sets of brands, you may refer
to any source of information for assistance.
Answer:
a) Total set of brands consisted of
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
b) Awareness set of brands consisted of
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
c) Inept set of brands consisted of
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
248
 Alternative Evaluation
d) Consideration set of brands consisted of Information Processing
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
e) Choice set of brands consisted of
……………………………………………………………………………………
……………………………………………………………………………………
f) Choice fell upon the brand named
……………………………………………………………………………………
……………………………………………………………………………………

The marketing gains of knowing the successive brands under consideration of

consumers are many. Firstly, marketers may find where their brands rank in terms
of consumer knowledge. Secondly, it indicates the limits of consumer awareness
and recall for the lumber of brands. Thirdly, marketers may know how to reinforce
their efforts to push their brands further in the consideration and choice set if required
or which efforts would be required to move their Brands from the inert set or inept
set to the consideration set.
Finally, marketers may endeavour to keep their brands from falling into the set of
unknown Brands, and provide information so as to meet the preliminary expectations
that consumers may have for the brands.

14.4 THE CHOICE-MAKING RULES

To an un-initiated person, it may appear that the consumers follow neither procedure
nor rules in respect of evaluating the alternatives. As the subsequent descriptions
will show, this is not always true. Consumers use a set of rules for evaluation.
At the stage of choice rule, consumers after having recognized the need for a particular
product and service and also having completed information search for relevant criteria,
combine and integrate the information in such a way that facilitates choice making
for that product or service. Consumers make a variety of choices over time with
reference to various products and brands. These are made on the basis of certain
criteria known as choice rules or heuristics. Such heuristics allow consumers to make
complex decisions reasonably and effectively.
In spite of the research evidence that for most purchases, consumers engage in a
rather unsophisticated choice processes, particularly in the matters of low and medium
involvement products, marketers need to know about the choice heuristics. In
particular, they need to know as to what criteria are available to consumers; which
among them may be used and why; and which marketers’ actions can help influence
and benefit from the process of applying choice rules in purchase situations.
249
The Buying Process 14.4.1 The Benefits of Choice Heuristics
To consumers, the use of choice rules or rules of thumb offer many advantages in
simplifying complex decision processes. They, for instance,

 provide with guidance while making decisions;

 offer a short cut to a long-drawn-out decision process;

 allow them to integrate and arrange information in such a way that decisions
may be made quickly and easily; and

 enable them in faster information processing by focusing on only salient

criteria.

14.4.2 The Use of Choice Rules

As noted in the earlier Units, purchase decisions may be simple or complex. Three
types of buying decision situations have been extended. To recapitulate, the most
complicated buying decision behaviour is known as Extended Problem Solving
(EPS). It is seen mostly for high involvement products. The second type is the
Limited Problem Solving (LPS). It is mid-range decision making with the consumer
has some prior experience of the buying situation. The most common and routine
process is called Routine Response Behaviour (RRB) with the consumer has been
making the decisions very often for similar products one and is aware of his choices.
The last one is most evident in respect of low involvement, frequently bought
products.

14.4.3 The Choice Rules and the Multi-Attribute Choice

Models
Multi-attribute choice models explain how consumers combine their beliefs about
product attributes to form their attitudes about various brand alternatives. These
models assume that the brand which receives the best attitude will be chosen. They
further assume that consumers will go through the standard Hierarchy of Effects
sequence (Awareness - Interest - Desire - Action). For a detailed understanding,
refer to the Unit 6 in Block 2.

Activity 3

Visit a leading refrigerator shop (in-store/ online) of your town and interview
one or two buyers about which attributes they use in evaluating Frost free
double door refrigerators. Try to fit it with the ATO model for analysing their
information:

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................
250
14.4.4 The Choice Rules and the Ideal Brand Model Alternative Evaluation

This model prescribes that a consumer will compare actual brands to his ideal brand.
The closer an actual brand comes to this ideal, the more it will be preferred. For
instance, assume that the consumer does not rate the attribute of style in a car beyond
a certain point. This may be because he has no particular fascination for it and it
adds to his concern for upkeep. Let us further assume that the consumer also has
a certain price in mind. Now whether the consumer will be satisfied or not with the
available cars, will be determined by the following:

where = consumer’s dissatisfaction with brand J

= consumer’s ideal level of attribute i

=importance weight assigned by consumer k to attribute i

=consumer k’s belief as to the amount of attribute i offered by brand j

n= the number of important attributes in the selection of the given brand.

The lower the value of D, the more favourable consumer in k’s attitude toward
brand j. For example, if brand was ideal the term would disappear and
the dissatisfaction would be zero.

Activity 4

Illustrate the ideal brand model equation by taking hypothetical values in respect
of a banking services of SBI and HDFC.

....................................................................................................................

....................................................................................................................

....................................................................................................................

14.5 THE BASIC CHOICE HEURISTICS

At the end of the day, whatever may be the complexity or confusion in the mind
of the customer, a decision is to be made. The following choice rules could come
very handy to the consumers. It has been observed in most buying decisions, that
most consumers try to ‘satisfice’ their purchase goals instead of maximizing them.
Often it becomes imperative in view of the complexities involved. Also, since majority
of products engage only mild to low degree of purchase involvement, a complex
treatment is not really required for buyers of these products. The section, therefore,
explains some basic choice heuristics for the Limited Problem Solving (LPS) and
Routine Response Behaviour (RRB) purchase situations. Figure 14.3 provides a
visual summary of these rules.
251
The Buying Process Figure 14.3: Basic Choice Heuristics
Choice Rules

Linear Compensatory

Lexicographic
Affect
Referral Conjunctive Disjunctive

14.5.1 The After-Referral Heuristic

In this choice rule is considered to be the simplest of all. Here the consumers obtain
information from their earlier experiences stored in their own memory regarding the
brand alternatives tried in the past. Thus, instead of evaluating brand attributes
individually, a holistic approach is used by consumers based on their most positive
feelings about a given product. In the case of RRB’ and habitual purchases, this
rule is most likely to be applied. Thus, for example, in the purchase evaluation of
such daily consumption items as salt, tea, toothpaste etc., consumers will elicit the
brand alternative from their memory and past experiences in an order of their positive
feelings for them. The brand that was purchased last and fulfilled most of its promise,
is most likely to be chosen this time also.

14.5.2 The Conjunctive Heuristic

In a situation where many brand alternatives are available with distinct attributes,
even though it is an LPS purchase situation, the conjunctive heuristic helps consumers
in screening the brands. Over here, consumers set the minimum cut-offs on each
attribute which every brand alternative under consideration must possess. Otherwise;
the brand alternative is rejected. Table 14.1, illustrates the point. Thus, if a buyer
of refrigerator is considering three major brand alternatives, he may set a minimum
cut-off score of 3 out of maximum 10 marks on all the three attributes.
Brand B fridge will be dropped as it scores only 2 out of 10 on the Economy attribute.
Though the conjunctive choice heuristic aids in screening brand alternatives, it weighs
negative information more than the positive information in the evaluation.

Table 14.1: Alternative Evaluation Matrix.

Attributes Weight Brand A Brand B Brand C
(1) (2) (3) (4) (5)
3.1 Rank 3.2 4.1Rank 4.2 5.1Rank 5.2
Max.10 Max. 10 Max. 10
a B axB B aXB B aXB
Styling 30% 3 9.0 7 21.0 5 15.0
Economy 25% 5 12.5 2 5.0 7 17.5
Low Maintenance 45% 5 22.5 4 18.5 3 13.5
Cost
100% 44.0 44.5 46.0
252
14.5.3 The Lexicographic Heuristic Alternative Evaluation

This choice rule is more positive in nature than the conjunctive heuristic. This heuristic
aims, instead of rejecting the bad ones, at selecting the best brand alternatives out
of the given alternatives. In order to apply this heuristic, buyers first rate the importance
of attributes in the brands alternatives (column 2 of Table 14.1). Thereafter, the
brand alternatives are rated on these attributes (columns 3.1, 4.1 and 5.1 of Table
14.1). The brand alternative that scores the highest on the most important attribute
is chosen, regardless of other attribute values. If all the brand alternatives score
equally on this attribute, then their scores on the second most important attribute is
considered and the highest scoring brand is chosen. The process goes on till the
differential performance scores settle the superiority of a brand alternative over the
rest.
Interpreting Table 14.1, as per the Lexicographic heuristic, brand A will be selected
as it scores 5 out of 10 - higher than the other two brand alternatives, on the most
important attribute, i.e., low maintenance cost.

14.5.4 Linear Compensatory Heuristic

In this rule, consumers permit the strength of a particular brand attribute to compensate
for the weakness of another attribute(s). The choice criterion again is ‘choose the
best’ because in the rule the effect of both positive and negative information is
considered, which can balance, offset or compensate each other. Thus, in Table
14.1, brand C will be chosen among the given alternative fridge brands, if the
compensatory heuristic applied. Even though the chosen brand alternative is weaker
on the attribute of low maintenance cost than others, the strength of other attributes
has compensated for its weakness.

14.5.5 The Disjunctive Heuristic.

The disjunctive heuristic, used quite infrequently, also sets the minimum cut-off points
for every brand attribute. The difference, however, lies in the fact that this, heuristic
stresses only the ‘salient’ brand attributes (on the basis of weights) and accepts a
brand alternative if its performance exceeds the minimum cut-off performance on
these dominant attributes. Thus, in table 14.1, brand A will be accepted by the
consumer if the minimum cut-off for the dominant attribute of low maintenance cost
is 5. It will be in spite of the fact that the overall performance of brand A is lower
than that of the other two brand alternatives.

Activity 5
Apply the different choice making rules in the decision process to your decision
regarding a job. How would the knowledge of these rules influence the
employer’s marketing strategy for marketing the job?
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253
The Buying Process
14.6 THE MARKETING RESPONSE TO THE CHOICE
HEURISTICS
Several questions arise for marketers to consider, after having made an analysis of
the choice heuristics for alternative evaluation. They are: what inferences can be
drawn? What actions are useful in benefitting from them? Marketer use a variety
of methods for negotiating with the phenomenon of choice rules as well as their
complexity. They are as follows:
a) Relying on a product signal
This frequently used short cut is to nudge the consumers and draw attention to
the hidden dimensions of the product from the observable attributes of the product.
b) Market beliefs as heuristics
Consumers often form specific beliefs about the market relationships. These
beliefs then help them as shortcuts to solve a decision issue. Thus, the largeness
of the store can help the consumer decide a product solely on the basis of it.
c) Price as a heuristics
For many, price is the most verifiable way of making the right or wrong decision
on a product.
d) Brand name as a heuristic
Sometime the brand equity created in the market is so strong that the product
choice is dictated by the brand name itself. To sum up, marketers have an
unenviable task on their hands while consumers are at the stage of brand evaluation.
The acid test of marketing effectiveness in this regard is whether consumers
are led to the actual purchase action or not. The answer in either way will
pronounce judgment on the adequacy of marketing response.

Activity 6
Identify one example of each of the suggestions described above for influencing
the brand evaluation process. - Also state how far have the marketers succeeded
in their attempts?
1. …………………………………………………………………………
……………………………………………………………………………………
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2. …………………………………………………………………………
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3. …………………………………………………………………………
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254
 Alternative Evaluation
4. …………………………………………………………………………
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14.7 SUMMARY
The unit forms an important part of the course as it ties together many concepts
studied before and links them to the ultimate choice made by the consumer and
therefore has a direct relevance to the markets. Also, the linkage of alternative
evaluation with attitude has been established. Thereafter, a thought was given as to
how many brands a buyer may have in his various brand evaluation sets. It was
argued that the consumer follows a process of elimination to arrive at the final brand
from among the array of brands. As consumer attitude serves as a major indication
of buyer’s mind, the same has been dealt with also albeit briefly. Furthermore, choice
heuristics-both multi-attribute and basics have been dealt with extensively in the
unit. Further, what are the marketing implications and responses to this stage, have
also been discussed.

14.8 KEY WORDS

Choice heuristics : General decision-making strategies people use that are
based on little infirmation, yet very often correct.
Multi-attribute : Explain how consumers combine their belief about
Choice Models product attributes to form their attitudes about various
brand alternatives.

14.9 SELF-ASSESSMENT QUESTIONS

1. Define the criteria of evaluating the brands of Smartphone using the inputs shared
in this unit.
2. Distinguish between various sets of brand alternatives. How is the classification
important?
3. What is meant by choice heuristics? What rules are followed commonly by
the urban consumers vis a vis rural consumer?

14.10 PROJECT QUESTIONS

1. Devise a questionnaire to find out the number of brands in each set of
alternatives in respect of (a) smart televisions, (b) designer home furniture,
(c) health foods.
2. List as many attributes as you can for a personal computer for an executive
that you would like to see in a laptop.
3. Use two of the choice heuristics mentioned in the Unit and compare the results.
Comment upon the possible marketers’ responses to both choice heuristics. 255
The Buying Process
14.11 FURTHER READINGS
1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
4. Belk, R.D. (1974). “An Exploratory Assessment of Situational Effects in Buyer
Behaviour, Journal of Marketing Research, pp.156-163.
5. Gardner, M.P(1985): “Mood States and Consumer Behaviour”, Journal of
Consumer Research, 12, pp.281-300.

256
 Alternative Evaluation
UNIT 15 PURCHASE PROCESS AND
POST- PURCHASE BEHAVIOUR
Learning Outcomes
After going through this unit, you should be able to explain:
 explain how the purchase stage is completed in the buying process;
 describe the emergence and variety of the non-store buying alternatives
available in India and abroad;
 describe the development of post-purchase attitude,
 analyse the inputs the buyers’ complaint behaviour and the marketer’s
response.
 apply the inputs on post purchase behaviour in your marketing decisions
Structure
15.1 Introduction
15.2 An Overview of Purchase Process
15.3 Buying Stage and Situational Influences
15.4 Steps to Benefit from Situational Influences
15.5 An Anatomy of Non-store Buying
15.6 Routes of Non-store Buying
15.7 Developing an Attitude to Post-purchase Behaviour
15.8 Theories of Post-purchase Evaluation
15.9 Marketers’ Response Strategies
15.10 Summary
15.11 Key Words
15.12 Self-Assessment Questions
15.13 Project Questions
15.14 Further Readings
A well-known brand X of a passenger car in India was grappling with a unique
marketing problem. The brand name was strong. The brand recall too was
equally strong. A research study conducted by the company on those buyers
who were intending to buy a car in the next six months, found a strong intention
to buy the brand X. Yet a large number of buyers ended up buying competitive
brands.
Another curious aspect of the brand X was that those customers who owned
the brand X of the passenger car, were totally satisfied with the purchase. Yet
the brand’s market share tended to decline. The purchasers of the brand X,
when questioned after the purchases, did not indicate any negative reaction.This
input leads us to look at the processes and evaluation that may follow the
purchase of a brand and may affect future purchases. 257
The Buying Process
15.1 INTRODUCTION
Going through a buying process and that too so an involved one like an extended
problem solving (EPS) situation, is never easy for a consumer. The enormity and
complexity of the buying alternatives and attributes in each alternative, as seen in
the unit 14, could often leave the buyer exasperated. The purchase and post-purchase
are the last two stages of consumer decision-making. While the purchase stage is
more observable from the manufacturers’ or marketers’ perspective, the post-purchase
behaviour indicates the ultimate satisfaction perceived by consumers, and has
implications for marketers as a determinant of future purchase decisions.
A good in-shop experience brings three advantages to the marketer, known as the
three R’s of marketing. R1 is return of the customer to buy the product again. R2
is the recommendation to the other potential customers. R3 is retaining the customer
for other products of the company. The stage of buying and post buying affords
the first opportunity to gain in this respect.The present times however these 3 Rs
are in a very large number of cases witnessed in the online purchase space and are
actually highly measurable through site analytics

Activity 1
Narrate your general experience in shopping in a store (15-20 words). What
feelings come to your mind first?
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15.2 AN OVERVIEW OF PURCHASE PROCESS

It will be interesting to visualise the types of buying here before we analyse the
anatomy of buying. Consumers make two types of purchases. Trial purchase and
repeat purchases. ‘If a consumer purchases or is induced to purchase for the first
time, a smaller quantity than usual, and with a certain degree of hesitancy’, this is
termed as a product trial. Thus, a trial purchaser could remain or drop out of
purchasing the product after the experience. In any event, the trial is the phase of
purchase behaviour where intention is to evaluate a product through use.
Repeat purchase on the other hand, indicates commitment on the part of the customer
towards the product, company and others. It is closely related to concept of
development of brand loyalty and signifies that the product has met with the
consumers’ expectations.
Another important point is to be noted here. The purchase process marks the
recognition of actual purchasing environment and its obvious effects on the process.
Until this point, all that marketers know about is supposed to happen in the mental
framework of consumers. This is the stage where marketer can observe how mental
258 evaluation is translated into purchase activity at the point of purchase. The importance
of purchase process is further increased by following two reasons - one each from Purchase Process and
Post Purchase Behaviour
marketers and consumers perspective.
From marketers’ perspective, purchase process is linked to marketing-mix, Thus,
if customers purchase the evaluated item, it signals effectiveness of the marketing
mix employed by marketers vis-à-vis competitors. The non-selection on the other
hand, will signal to marketers towards the need of a change in marketing mix, after
a careful analysis of underlying reasons for brand rejection.
For customers, purchase action marks the end of their efforts for an optimum brand
choice. Not only do they give up money in return for a product, but the choice of
brand once made, also means that they must depend on it alone for the delivery of
expected benefits and satisfaction, at least until next purchase occasion.

Activity 2
Identify three benefits or implications of the purchase stage to the marketer.
1. …………………………………………………………………………
2. …………………………………………………………………………
3. …………………………………………………………………………

A customer, when committed to the stage of choice process, will have to take decision
pertaining to:
 Where to buy from? (Store selection vs. non-store purchasing, or physical vs
online purchase)
 How much to buy from? (Quantum choice)
 How to buy? (Cash/online payment or credit purchase or hire purchase etc.)
These decisions are influenced by two major sets of forces. While the first set of
forces relates to buying intentions, the second set comprises situational influences.
Figure 15.1 outlines these influences on choice process.
Figure 15.1: Determinants of Choice Process

15.3 BUYING STAGE AND SITUATIONAL

INFLUENCES
The figure 15.1 exemplifies certain facts about the process of buying. First it confirms
the fact that the choice process is accomplished only through a combination of buying 259
The Buying Process intentions and situational variables. The other is that the individual impact of buying
intentions or attitudinal data on choice process though significant, is not adequate
by itself to result in the final purchase.
Though situational influences can be endless, the five influences as mentioned in
figure 15.1. are the major ones. Situation, in general, is defined as “something outside
the basic tendencies and characteristics of the individual but beyond the characteristics
of the stimulus object to be acted upon”. Thus, physical surroundings include noise,
light, or temperature in the store. Social surroundings refer to the type of clientele
patronising the store. Task definitions include motives for shopping and goals.
Temporal considerations comprise time-pressure and time of the day chosen for
shopping. Finally antecedent conditions refer to cash and time availability situation
and the mood under which the purchase is completed.
Such influences will be self-evident to you if you recall your last purchase made in
an elegantly designed shopping mall or with comfort at home through online and
compare your feelings with the ones arising out of a similar purchase made in an
ordinary shop. Though purchase intentions were of similar strength, the situational
factors would have made the difference between the two similar purchase process.

15.3.1 Physical Surroundings

Research has now clearly highlighted the influence that physical surroundings have
on consumer choice. Physical surroundings are the most readily visible features of
a purchase situation because they include geographical and institutional location,
decor, sounds, aromas, lighting, weather and visible configurations of merchandise,clear
exhibition of various brand alternatives or other material surroundings in the purchase
process. These stimuli influence the choice process through sight, hearing, touch,
smell and taste of consumers.
Kotler underlined the importance of physical surroundings in the following words:
“where goods and services are intended for specific social classes or life style groups,
the vendors try to create an overall atmosphere suggestive of that segment. That
atmosphere provides cues as to the intended market segment and also enters as
part of the consumption process since the consumer wants to enjoy the class qualities
of that product.”
In order to exploit the physical surroundings effect to the maximum, marketers use
the concept of ‘atmospherics’ by devising and controlling a right mix of
physicalsurroundings during purchase process. Music and crowd management are
two very popular elements of atmospherics at the point of purchase. Figure 15.2
illustrates the effect of physical surroundings on purchase process.
Figure 15.2 physical surroundings and purchase process

260
15.3.2 Social Surroundings Purchase Process and
Post Purchase Behaviour
Like physical surroundings, social surroundings too have significance in shaping up
the choice behaviour. The social surroundings mainly refer to the presence of other
people and their effect during purchase or usage of a product.
There are a variety of situations in which the presence of others may influence choice
process. In a store, for instance, after having noticed the presence of high-society
people, you may buy a premium item even though you had intended to buy only a
low-price product. Further, it may also affect your resistance to the store or enhance
product credibility if you find highly respected people or friends known for their
good sense in buying expressing their endorsement for the product. Furthermore,
shopping is often a social experience in which, besides the buyer and seller, many
other persuasions interact. They also affect the communication. Following are some
general findings in this respect:
 while shopping with friends, a consumer is likely to make more unplanned
purchases and visit more stores,
 selling to unaided buyers is easier than to those accompanied with advisers,
 compliance to group views is there even though the buyer knows that others
may not be right with reference to a given product choice.

Activity 3
You have visited a shop for buying a pair of trousers for regular wear. What
will you do, if
a) Two of your friends insist on helping you in your purchase?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
b) You are accompanied with a family member or a relative coming along
with an objective to enjoy shopping with you?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

15.3.3 Task Definition

A host of motives initiate the purchase decision-making. The motives decide both
the content and direction of a purchase process. These buying purposes are what
we call as task definition in the present context. Task definition influence the purchase
process in the following ways:
 The purpose of purchase may alter the purchase outcome. If for instance, the
product being purchased, is meant for a gift to a close friend, the expected
reaction of that friend, will define the purchase task.
261
The Buying Process  The use situation of the product will determine the task definition. A public
consumption of products in such gatherings as wedding and social get-togethers
etc. will place higher emphasis on purchase of a product than in a private
consumption of the same product.
Thus, marketers use task definition as a prominent feature of purchase. According
to one study on occasion-based marketing opportunity, wedding gifts are more
utilitarian, whereas birthday gifts are more fun.

15.3.4 Temporal Factors

For any given purchase, temporal factors or timing play a decision role. These timings
may range from the allocated minutes of a day to shopping, and to even a season
of the year perceived relevant to the purchase. Time can be considered both in
absolute units of measurement (example: 45 minutes for buying this product) and
in comparative terms (example: The purchase of ceiling fan will take more time than
buying a cigarette pack.) Temporal factors affect the purchase in the following ways:
 Availability of time will decide the purchase strategy for a given product.

 Higher the amount of available time, greater will be the information search and
extent of alternative evaluation.
 Time, when accompanied with other variables (like, hunger or happiness) can
produce a more visible effect.
 Time-compression, a device in which marketers use time effectiveness for
maximum impact, can be used by marketers.
Research on time and consumer behaviour has indicated that an ‘after five’, shopper
spends considerably less time in purchasing than a ‘regular time’ customer does.
Similarly, it has been found that greater the time-gap between two purchases, higher
is the ‘probability of extensive information search.
There are two important time-related dimensions that are causing the rapid growth
of online shopping: less time required to make a specific purchase and the ability
to purchase at a time convenient to the purchaser on an anytime anywhere basis.
Added to these dimensions is the facilitation of comparative assessment on competing
brands as most information can be accessed on aggregator sites as well as the support
of buyer reviews

15.3.5 Antecedent States

Finally, among situational variables, moods and physical states, and thoughts too
have a bearing on purchase situation. A famished consumer is more likely to finish
his shopping quicker than a contented consumer, keeping other variables as same.
Similarly, a consumer frustrated at not finding the desired product or response at
the earlier outlets, may reveal a certain amount of negativism towards the subsequent
outlets he may visit for no fault of theirs. Mood, on the whole, has been found to
have a significant influence with reference to product or outlet chosen, or even the
attention to various advertising messages. Gardner (1985) after having completed
a comprehensive review of mood states on purchase process, concluded that
“advertising designed to create a mood or positive emotional response toward the
262 product, worked only when the viewer was in a neutral or positive mood.”
 Purchase Process and
Activity 4 Post Purchase Behaviour

Identify an advertisement promoting any beverage item (tea, coffee or soft drink).
Show it to a friend of yours before lunch time and after evening tea, and ask
his opinion on it. Try to analyse the difference in his two opinions in view of
the discussion on temporal and antecedent states (viz. timing and mood).
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15.4 STEPS TO BENEFIT FROM SITUATIONAL

INFLUENCES
After having considered various situational variables in detail, it is important to outline
the response of marketers to them. Following are some suggested actions for the
marketers:
 Identify the relevance of each situational factor on consumer buying process;

 Determine the impact of relevant situational variables through appropriate

research;
 Consider appropriate segmentation and positioning based on the findings;

 Develop appropriate marketing mix, incorporating the above;

 Apply the general findings and hypothesised relationships between situational

variables and purchase process.

Activity 5
Imagine yourself as a manager of a large general store, dealing in a variety of
cosmetics and beauty-aid items. Develop your specific responses to situational
variables in the light of the steps mentioned above.
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15.5 AN ANATOMY OF NON-STORE BUYING

India is changing in response to global trends. One of them is the emergence of
non- store buying. Today, in most countries non-store buying has emerged as a
majorroute for shopping. Popularly known as direct marketing, non-store buying 263
The Buying Process too has an important place in the consumer purchase process. The Direct Mail
Marketing Association (DMMA) has defined Direct Marketing as follows:

“Direct (response) marketing is the total of activities by which products and services
are offered to market segment in one or more media for information purposes, or
to solicit a direct response from a present or prospective customer or contributor
by mail, telephone or other access. Online marketing has emerged as a new dimension
of direct marketing aided by the power of ICT and internet penetration, to the extent
that a lot of manufactures in apparel, electronic goods, fashion accessories and even
cosmetics report upwards of 40% of their total business coming from online
transactions

The non-store marketing owes its prominence to a variety of reasons. These reasons
are:

 Greater importance to comfort in consumer life style

 Higher discretionary incomes

 Demand for convenience in shopping

 Option of credit facilities through credit or charge cards or wallet payments

 In-store crowd and long queues for delivery and payment

 Under-informed and little-trained store personnel

 Pressure for spot decision under stress of store personnel

The non-store buying option has become stronger not because of the sudden fad
or fascination on the part of marketers or consumers. The internet technology
development, changing lifestyle and digitisation and the sudden spike in online activity
witnessed on account of the Covid pandemic played an important role in rapid
growth of direct and online marketing. The development of non-store buying in a
country is dependent upon several economic and social factors some of these are
as follows:

 general economic development

 availability of logistics and infrastructure

 nature of product

 consumer awareness

 freedom enjoyed by marketing forces

 Perceived security of online transaction

 Economic and time related efficiencies

 desire of marketers to reach new and uncovered market segments

However, we find varying degrees of direct marketing practiced in different countries.

Be that as it may, direct marketing and its interaction with consumer buying process
is of special significance.
264
 Purchase Process and
Activity 6 Post Purchase Behaviour

a) List two reasons to which the acceptance of direct and online marketing,
in India can be attributed.
i) …………………..……………………………………………….
ii) …………..……………………………………………………….
b) Suggest two major ideas that can help the progress of direct/online marketing
in India.
i) …………………..……………………………………………….
ii) …………..……………………………………………………….

15.6 ROUTES OF NON-STORE BUYING

Following are the best-known routes of direct or non-store buying:

Direct Mail include sending business information to a physical address (via mail
or flyers) or an email address. Sending a special offer or free sample, reminding
customers of a service, announcing a sale, or providing information about your
products or services are all examples of direct mail. A significant advantage of a
direct mail is that it can be personalised, measured, and tested.

Telemarketing can be an efficient and low-cost method of increasing brand

awareness and sales. Another advantage is the ability to receive immediate feedback
on products and services.

Direct Response Advertising aims to get the consumer to purchase the product
directly from advertisement. Examples are- A direct mail piece with a postage-paid
reply card to order a product, a TV ad with a toll-free phone number to order,
and an email with a link to order the product from website.

Direct Selling include door-to-door efforts, one-on-one presentations, or hosting

a party to introduce your goods or services to a target audience.

Social Media provides a platform to interact with the target consumers. Advantages
include increased brand awareness and the ability to provide quick customer service.
Social media can also help you increase website traffic, generate sales, and boost
your search ranking.

Catalogue marketing is a form of direct marketing where consumers order products

from a printed or online catalogue, rather than visiting a retail outlet.

Internet Marketing refers to marketing of products and services through online

or other digital media. It is also called online or digital marketing. Online Market
aggregators like Amazon, Flipkart, BigBasket today act as complete market places
through their portals offering solutions to consumer needs across most product
categories.
265
The Buying Process
Activity 7
Suggest some non-store buying routes for buying jewellery.
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15.7 DEVELOPING AN ATTITUDE TO

POST-PURCHASEBEHAVIOUR
As mentioned before, understanding the post-purchase behaviour plays an important
part in developing a relationship between the customer and the marketer. On the
part of marketer, an attempt to recognize consumer’s post-purchase behaviour
indicates his desire and commitment towards the implementation of marketing
orientation or marketing concept in business. In this, the marketer identifies with
his customers and thinks from customer’s perspective. If purchase represents
realisation of customers consumption motives and purposes, the post-purchase
behaviour indicates whether or not thosepurposes and motives have been achieved.
Thus, purchase activity is the means while post-purchase is an evaluation that will
impact future purchases.
Post-purchase Use and Disposal
Marketer should also monitor how the buyers use and dispose of product (See
Figure 15.3). If consumers find a new use for the product that should interest the
marketer because this use can be advertised. If consumers store the product (not
using it) that indicates that the product is not very satisfying and word of mouth
would not be strong. If they sell or trade the product, new product sales will be
depressed. If they throw the product, the marketer needs to study how they dispose
of it, especially if it can hurt the environment.
The formation of satisfaction or dissatisfaction is, however, a function of many factors.
These factors are:
 Use, occasion of Product/Brand

 Cost/Investment involved in choice making

 Number of outcomes and their desirability

 Prior experience of product/brand

 Personal expectations and norms

 Group expectations and norms

 Cultural forms

 Outcome endurance - the duration for which the outcome persists

 Time lag between the choice and use of the product

266
 Figure 15.3: Post-purchase activities in consumer decision making Purchase Process and
Post Purchase Behaviour

Activity 8
What are the most important factors on which you decide your viewpoint about
any post purchase experience?
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15.8 THEORIES OF POST-PURCHASE EVALUATION

Can the consumer dissatisfaction be theorized? If it can be done, it will make the
task of handling it easier.
Fortunately, the answer is favourable. There are several theoretical explanations
that relate consumers’ product expectations with its performance. Table 15.1 attempts
a brief account of four such theories and their marketing implications. Although these
theories somewhat over simplify a complex relationship between product expectations
and performance, they succeed in emphasising the importance of post- purchase
evaluation. This is the stage of decision making that ensures repeat purchase and
favourable word of mouth advertising. It also determines consumers attitudes not
only towards the product purchased and other products manufactured by the company
but toward the company itself. 267
The Buying Process Table 15.1: Explanations of Expectation-performance Disparity.
Major Assumption Marketing Implication
1. Assimilation theory Disparity minimised by Overstate product claims
adjusting perceived
expectations with
performance
2. Contrast Theory Disparity ‘magnified’ Reasonably understate
product claims
3. Generalized Negative Disparity to hedonically Ensure that claims are
Theory negative state- a general consistent with performance
negative feeling
4. Assimilation Contrast ‘Minor’ disparities are State product claims slightly
Theory minimised while ‘major’ above the actual performance
disparities are ‘magnified’ but within consumers’ range of
further acceptance.

Formation of Satisfaction/Dissatisfaction
Every purchase inevitably results into either satisfaction or dissatisfaction. Satisfaction
is the expected outcome. It signifies “a confirmation that performance of the chosen
alternative is consistent with its prior beliefs and expectations.” Dissatisfaction, on
the other hand, signifies an absence of such confirmation with reference to the outcome
(see figure 15.4).
Figure 15.4: Formation of Consumer Satisfaction/Dissatisfaction

Post-purchase behaviour has witnessed, in the recent past substantial research efforts.
Some generalisations out of these researches are as follows:
 There is no all-accepted definition of consumer satisfaction or dissatisfaction.

 In many cases, while presence of a particular factor may cause dissatisfaction,

the avoidance of it may not necessarilylead to satisfaction.
 Satisfaction/Dissatisfaction arisesout of a cumulative effect of many factors. The
individual impact of each is quite difficult to isolate.
268
 Although consumer dissatisfaction is all pervasive, it is unlikely to result always Purchase Process and
Post Purchase Behaviour
in complaint making.
Authors have suggested that complaint behaviour is related to such factors as the
level of dissatisfaction; the perceived gain from complaining, the personality of
consumer; the general attitude towards complaining; the convenience in identifying
the person to be complained against; the resources available to the consumer for
complaining; and the previous experience with product and complaining clearly,
handling satisfaction/dissatisfaction is a logical process. For instance, Figure 15.5
outlines five possible responses of a dissatisfied consumer:
Figure 15.5: Responses of a Dissatisfied Customer

Activity 9
Recall some purchase occasions when you felt dissatisfied against a bad purchase.
How did you respond to those dissatisfaction situations?
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15.9 MARKETERS’ RESPONSE STRATEGIES

It may be noted here that although post-purchase evaluation is strictly between the
buyer and seller, several other parties too get involved in case the consumer decides
to approach the outside intervention mechanism against product failure or
dissatisfaction. The intervention by the government and consumer protection
organization is a case in point. Thus, a marketer has to design appropriate responses
to post-purchase activities that will not only keep the consumer satisfied but also
avoid the intervention of other parties in the matter. Following are the prominent
responses that a marketer should consider in order to:
 build consumer satisfaction
 maintain consumer satisfaction
 avoid consumer dissatisfaction
 Resolve consumer complaints expeditiously and if possible, compensate 269
The Buying Process 15.9.1 Monitor Regularly the Consumer Reactions
A marketer should initiate and encourage a regular monitoring of consumer reactions
towards itself, its product range and a particular brand. A continuous inflow of such
monitoring data will develop into an information system and serve as early warning
signals. Such monitoring is of particular significance where products are sold through
non-store purchasing route.

15.9.2 Bring product Quality under Marketing Responsibility

Though we hear a lot these days about improving product quality, nothing can
substantially change until maintenance of product quality is brought under marketing
responsibilities. Thus, quality control will upgrade itself from being an isolated function
of production department to a joint mission of marketing and manufacturing
departments.

15.9.3 Handle Complaints Quickly and Responsibly

Marketers must go beyond the usual lip-service to handling of customer complaints.
They should be taken up at the earliest opportunity and action notified to the complaint
without delay. Even acknowledgement of the receipt of complaint contributes to
reducing dissatisfaction.

15.9.4 Be a Courteous and Helpful Host

Most of consumer dissatisfaction is attributable to poor service at the point of purchase
specially when the consumer comes in with a complaint or wishes to return the
products purchased. It may arise out of unhelpful or discourteous sales personnel,
poor availability of product and inadequate service to customers. Marketers may
note that even in standard products, considerable differentiation and competitive
edge can be generated by being a courteous and helpful host to visiting customers.

Activity 10
Study the post-purchase responses as observed by you in any consumer durable
product category (e.g., refrigerator, Washing Machine, car/two-wheeler etc.).
Explain below two most important responses that in your view, are most effective.
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15.9.5 State only Realistic Product Claims

The previous explanations between product performance and expectation require
a marketer to state only realistic product claims. Factual promotion-executed with
creativity, brings about lasting customer loyalty and goodwill.

15.9.6 Help Consumer on Product Use

The manner in which the product is used can be crucial to customer satisfaction/
dissatisfaction. It is in the interest of marketers themselves to help consumer in proper
use of the product - especially those which may fail if wrongly opened or used
blindly. Adequate instructions or information could be given to reduce potential
270 consumer dissatisfaction.
15.9.7 Sell ‘Solution’ instead of Product Purchase Process and
Post Purchase Behaviour
Nobody buys a product, what consumer buys is ‘solution’ through products. Thus,
promotional attempts should focus on the solution or performance of product rather
than the product. This will signify the desire of marketers to provide satisfaction to
customers.

15.9.8 Assure Even after the Purchase is Over

Marketers must assure the buyers, even after the purchase is concluded of their
commitment to customers’ satisfaction. A thank-you letter or a mail to customers
enquiring about their post-purchase feelings can go a long way in building a healthy
and satisfying relationship for both customers and marketers.

Activity 11
Select any advertisement that attempts (a) to provide the consumer with a decision
strategy to follow in making a purchase decision or (b) to reduce the perceived
risk (c) associated with a purchase, evaluate the effectiveness of the ad you like.
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15.10 SUMMARY
The unit concentrated on the stages of purchase and post-purchase - the two very
important stages of consumer decision process. While purchase activities generate
cash for the organization, post-purchase behaviour retains the key to repeat buying
and customer loyalty.
The unit began with an overview of purchase process. The purchase process is
influenced by the customer’s intention to buy and situational factors. The situational
factors are physical surroundings, social surroundings, task definition, temporal
dimensions and antecedent conditions. These days, non-store buying or direct
marketing, process is as important as the store buying. It has been attempted to
describe the various routes of direct marketing. Once the purchase process is
completed, the marketer’s attention has to shift to the phase during which consumers
handle their reactions to product purchase and use. Reactions could either be positive
(satisfaction) or negative (dissatisfaction or dissonance). How consumers express
both kinds of reactions and what could be the responses of marketers to these,
are the focus of the rest of the unit.

15.11 KEY WORDS

Post-purchase : Attitude of satisfaction/dissatisfaction towards a product
Attitude developed by consumer after the product is used.
Complaint Behaviour : The overt actions taken by consumers to bring their
product to service dissatisfaction to the attention of
marketers and other consumers. 271
The Buying Process Dissonance : A state of imbalance that results when a logical
inconsistency exists among cognitive elements.
Product Disposition : What consumers do with a product after they have
completed the use of it.
Outcome : The result of an exchange the feeling that whether the
result was equitableto a buyer vis-à-vis seller.

15.12 SELF-ASSESSMENT QUESTIONS

1. Explain the purchase process and its determinants.
2. In view of direct or online marketing, how far is an expensive styling and layout
of a store justified in India? Explain
3. Explain the relationship between marketing orientation and attention to post- purchase
process. Are they complementary to each other? Review one or two cases where
a marketer has given a visible attention to the dissatisfaction of consumers.
4. You are a marketing manager of a company that has started manufacturing washing
machine. How will you anticipate, analyse and respond to the post- purchase
feelings of your customers?
5. How has online buying behaviour accentuated the marketing attention towards
post purchase behaviour and customer expression of dissatisfaction and
complaints. How have online consumer reviews and feedback impacted other
prospective buyers.

15.13 PROJECT QUESTIONS

1. Contact your friend, neighbour or a family member who has recently made online
shopping. Encourage him to recall his online shopping behaviour and choices
made therein. Contrast the choice process in in-store and online shopping on
their important attributes.
2. Review the advertisements for the last two years in a particular industry of your
choice (laptop, television etc). Identify how many of them are directed at the
post- purchase behaviour of customers.

15.14 FURTHER READINGS

1. Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2018), Marketing Management:
A South Asian Perspective, Pearson Education.
2. Schiffman, L.G., Wisenblit, J., and Ramesh, K.S. (2018) “Consumer Behaviour”,
Twelfth edition, Pearson Education.
3. Solomon, M.R. (2018) “Consumer Behaviour: Buying, Having, and Being” Twelfth
edition, Pearson Education.
https://www.ntnu.edu/documents/139799/1270604448/TPD4505.Martin.Dahl.pdf/
087d444b-aaab-44ce-92f7-7683f499c3
https://www.researchgate.net/publication/339950466_Issues_relating_to_purchase
272 _and_post_purchase_behaviour