Consumer Behavior

UNIT II
Individual Determinants of
Consumer Behaviour
Motivation:
Motivation is an inner drive that reflects goal-
directed behaviour . In a consumer behaviour
context, the result is a desire for a product,
service, or experience.
It is the drive to satisfy needs and wants, both
physiological and psychological, through the
purchase and use of products and services.
First motivation tends to be greater, when
consumers see something as personally relevant.
Individual Determinants of
Consumer Behaviour
Other things are seen as relevant because they relate to our needs,
values and goals, because they are seen to entail considerable risk or
because they are inconsistent with prior attitudes.
Even when motivation is high, when consumers lack the knowledge,
experience, intelligence, or money to engage in behaviour process,
they cannot achieve a goal. Highly motivated consumers may also fail
to achieve goals if other opportunity is limited.
Five stages of the motivation process:
Latent need latent needs, these are issues and problems that customers face
but have not yet realised. When hidden needs are addressed by product or
service design, customers are both surprised and delighted.
Drive internal motivation may be thought of as an individual's personal
“drive.”
Want or desire is what consumer wants
Goal
Behaviour
Individual Determinants of
Consumer Behavior
Attention: Attention refers to the extent to which processing activity is
devoted to a particular stimulus.
 Exposure does not necessarily create conscious attention
(unconscious).
 Determinants of selective attention
 affective states
 involvement (situational vs. self-relevance).
 Exposure intensity
Attention is focused mental engagement on a particular item of information.
Items come into our awareness, we attend to a particular item, and then we
decide whether to act.
 Personal Selection Factors
 Perceptual Selectivity - we notice only a small amount of what's out there,
utilizing Perceptual Filters
 Perceptual Vigilance - we tend to notice things immediately important to us
 Perceptual Defence - we don't see what we don't want to see
Individual Determinants of
Consumer Behaviour
Perception:
It Is the process by which the sensations are selected, organized, and
interpreted. It focus on what we add to or take away from these raw sensations
as we choose which to notice, and then go about assigning meaning for them.

 The perception process is made up of three stages:

 Exposure: Is the degree to which people notice a stimulus that is within
range of their sensory receptors.
 Attention: Attention refers to the extent to which processing activity is
devoted to a particular stimulus.
 Interpretation: Refers to the meaning that we assign to sensory stimuli.
Elements of Perception:
 Sensation
 Sensation Is the immediate and direct response of the sensory organs to
stimuli. A stimulus may be any unit of input to any of these senses.
Individual Determinants of
Consumer Behaviour
Perception:
 Examples of stimuli include products, packages, brand names,
advertisements and commercials. Sensory receptors are the human organs
that receive sensory inputs. Their sensory functions are to see, hear, smell,
taste and feel. All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
 The absolute threshold
 The lowest level at which an individual can experience a sensation is called
the absolute threshold. The point at which a person can detect a difference
between “something” and “nothing” is that person’s absolute threshold for
that stimulus.
 The differential threshold
 The minimal difference that can be detected between two similar stimuli is
called the differential threshold or the just noticeable difference.
Individual Determinants of
Consumer Behaviour
Perception:
 Subliminal perception
 People are motivated below their level of conscious awareness. People are
also stimulated below their level of conscious awareness; that is, they can
perceive stimuli without being consciously aware that they are doing so.
Stimuli that are too weak or too brief to be consciously seen or heard may
nevertheless be strong enough to be perceived by one or more receptor
cells. This process is called subliminal perception because the stimulus is
beneath the threshold, or “limen” of conscious awareness, though obviously
not beneath the absolute threshold of the receptors involved.
 Many ads use hidden messages, most of them harmless.
 E.g.:
Individual Determinants of
Consumer Behaviour
Consumer Imagery:
Imagery is a kind of association a brand could get linked with over a period of
time. It has an impact on how consumers perceive the brand and how they will
react to it in the long run.
When consumers attempt to preserve or enhance their self image by buying
products and brands or avail services which they believe are congruent with
their self images, then it is known as consumer imagery.

Issues in consumer imagery:

Product Positioning and repositioning
Perceived Price
Perceived Quality
Price Quality Relationship
Perceived Risk
Individual Determinants of
Consumer Behaviour
Learning & Memory:
 Learning is a relatively permanent change in behaviour
caused by experience.
 Learning is an Ongoing Process
Assume that learning takes place as the result of
responses to external events. View is represented by two
major approaches to learning:
1) Classical Conditioning
2) Instrumental Conditioning
Individual Determinants of
Consumer Behaviour
1) Classical Conditioning:
 Ivan Pavlov’s Dogs
 – Unconditioned stimulus (UCS) – Naturally capable of
causing a response.
 – Conditioned stimulus (CS) – Does not initially cause a
response
 – Conditioned response (CR) – Response generated by
repeated paired exposures to UCS and CS. Eventually,
through learned association and repetition, the CS will
cause the CR.
Individual Determinants of
Consumer Behaviour
1) Classical Conditioning:

A stimulus is presented
in order to get a response:

S R
Individual Determinants of
Consumer Behaviour
1) Classical Conditioning:

S US
UR

CS US

CR
Individual Determinants of
Consumer Behaviour
1) Classical Conditioning:
Individual Determinants of
Consumer Behaviour
2) Operant Conditioning: Skinner

The response is made first,

then reinforcement follows.
Individual Determinants of
Consumer Behaviour
2) Operant Conditioning: Skinner

It is a method of learning that occurs

through rewards and punishments for
behavior. Through operant conditioning,
an association is made between a
behavior and a consequence for that
behavior.
Individual Determinants of
Consumer Behaviour
2) Operant Conditioning: Skinner
Individual Determinants of
Consumer Behaviour
2) Operant Conditioning: Skinner
Individual Determinants of
Consumer Behavior
Memory:
Memory ranges in duration on a continuum from extremely short to very
long term.
Sensory memory includes storage of stimuli that one might not actually
notice (e.g., the colour of an advertisement some distance away).
For slightly longer duration, when you see an ad on TV for a mail order
product you might like to buy, you only keep the phone number in
memory until you have dialed it. This is known as short term memory.
In order for something to enter into long term memory, which is more
permanent, you must usually “rehearse” it several times.
Individual Determinants of
Consumer Behavior
Personality & Self Concept:
Reflects a person’s consistent response to his or her
environment.
“Those inner psychological characteristics that both
determine and reflects how a person responds to his or her
environment can be termed as his/her personality”.
Personality allows marketers to divide people into different
groups based on their traits.
Understanding which specific characteristics bring in
required responses, can help marketers to appeal to these
traits in their target audience.
Individual Determinants of
Consumer Behavior
Personality & Self Concept:
 Personality Can Change
 May be altered by major life events – birth of a child,
death of a loved one, personal tragedies – accident,
health problem, divorce, significant career promotion.
Individual Determinants of
Consumer Behavior
Personality Theories:
1) Freudian Theory:
 Personality consists of three interacting systems.
 Id – related to physiological or impulsive needs to which
one seeks immediate satisfaction.
 Ego – The individuals conscious control. Functions as an
internal monitor that attempts to balance the impulsive
needs and socio cultural constraints.
 Super Ego – individuals internal expression of moral /
ethical codes of conduct; socio–cultural forces.
Individual Determinants of
Consumer Behavior
Personality Theories:
2) Non-Freudian Theory:
 Social relationships are fundamental to formation of
personality (Freud - impulsive in nature)
 Three personality Groups
 1. Compliant Individuals – those who move towards
others (desire to be loved, wanted and appreciated).
 2. Aggressive Individuals – those who move against
others (desire to excel / win admiration).
 3. Detached Individuals- those who move away from
others (desire independence, self reliance, self
sufficiency - freedom from obligation)
Individual Determinants of
Consumer Behavior
Personality Theories:
3) Trait Theory:
 Quantitative or empirical in approach.
 Measurement of personality in terms of specific psychological
characteristics called ‘traits’.
 Checks personality traits related to how consumer makes his choices

The trait theory is based on three assumptions.

 1. Individuals possess relatively stable behavioral tendencies.
 2. Different people differ in the degree to which they possess these
tendencies.
 3. When identified and measured, these relative differences
between individuals are useful in characterizing their personalities.
Individual Determinants of
Consumer Behavior
Personality Traits:
1. Consumer Innovativeness:
Nature and boundaries of a consumers willingness to innovate
2. Dogmatism:
Trait that measures the degree of rigidity (vs. openness) that they show toward
an information that is contrary to their own established beliefs.
3. Social Character:
Ranges from inner-directedness to other directedness. Inner directed
consumers tend to rely on their own inner values while evaluating new
products. While outer-directed tend to look for other’s opinion.
4. Need for uniqueness: for such people, conformity to others expectations or
standards either in appearance or in their possessions is something to be
avoided.
5. Optimum Stimulation Level: Some people prefer a simple, uncluttered and
calm existence (whereas others prefer complex and unusual experiences).
High OSL is linked to greater willingness to risks, try new products ….
6. Sensation Seeking: characterized by the need for varied, novel and complex
experiences and willingness to take physical and social risks.
Individual Determinants of
Consumer Behavior
Self Concept:
 Is defined as the totality of individuals thoughts and feelings having
reference to him/ her as an object.
 Life style, in many ways, is an outward expression of ones self-concept.
Self Concept Theory:
 Holds that an 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).
 Related to two key concepts of psycho-analytic theory, the ego and the
super ego.
 Ego is similar to one’s objective reality, so its similar to actual self.
 Superego is defined by the way things should be and hence can be seen as
a reflection of ideal self.
Individual Determinants of
Consumer Behavior
Self Concept:
Actual Self
 There is no one actual self.
 Consumers have various role identities – mother, wife, working woman,
volunteer etc.
 One of these roles is dominant in specific situations. This particular role
affects the behavior (dressing style, talking, way they conduct etc)
Individual Self
 The amalgam of individuals roles makes up the individual self.
 Concept of ideal self relates to ones self esteem.
 The greater the difference between the actual self and the ideal self, the
lower an individuals self esteem.
 Dissatisfaction with actual self, will end up in purchases of such products
that they think will enhance their ‘self-esteem’.
Individual Determinants of
Consumer Behavior
 Consumer Attitudes – Formation and Change
Attitude:
 A learned predisposition to behave in a consistently favorable or
unfavorable manner with respect to a given object
 A positive attitude is generally a necessary, but not sufficient, condition for
purchase
Characteristics of attitude:
 Attitudes have an “object”
 Attitudes are learned
 Can ‘unlearn’
 Attitudes have behavioural, evaluative and affective components
 Predisposition to act
 Overall evaluation
 Positive or negative feelings
 Attitudes have consistency
Individual Determinants of
Consumer Behavior
Characteristics of attitude:
 Attitudes have direction, degree, strength and centrality
 Positive or negative
 Extent of positive or negative feelings
 Strength of feelings
 Closeness to core cultural values
 Attitudes occur within a situation
Four basic functions of attitude:
 The Utilitarian Function
 How well attitude performs
 The Ego-defensive Function
 To protect one’s self-concept
 The Value-expressive Function
 To convey one’s values and lifestyles
 The Knowledge Function
 A way to gain knowledge
Individual Determinants of
Consumer Behavior
Cognitive (thinking) Bases of Attitudes when Consumer Effort is High:
„
A number of theories have been proposed to explain the cognitive bases of
attitudes when consumers are likely to devote a lot of effort to processing
information and making decisions. These are:
„(a) The cognitive response model and (b) The Expectancy--Value Model.
The cognitive response model
According to Hoyer and MacInnis(1997), the basic idea behind the cognitive
response model is that consumers’’ reactions to the message, does affect their
attitudes.
Cognitive response are, simply, the thoughts that we have when we are
exposed to a communication (they can be recognitions, elaborations,
associations, images or ideas).
Individual Determinants of
Consumer Behavior
The cognitive response model
Researchers have developed three categories to describe the types of
cognitive responses consumers have to marketing communications.
„Counterarguments (CAs):These are thoughts that express disagreement with
the message (e.g. goodness!, it will never work, he’’s been paid to do this etc.
etc.).
Support arguments (SAs): These are thoughts that express agreement with
the message (e.g. this sounds great, I need something like this).
Source derogations (SDs): These are thoughts that discount or attack the
source of the message (e.g. the guy is lying, I don’t believe this).

„ ccording to the cognitive response model, these responses will affect

A
consumers' attitudes. In other words, CAs and SDs will result in a less
favourable initial attitude or resistance to change.
Individual Determinants of
Consumer Behavior
The Expectancy--Value Model
This is applied to explain how attitudes form and change.
„According to this model, attitudes are based on (a) beliefs, or knowledge
consumers have about an object or action and (b) their evaluation of these
particular beliefs s (e.g. how good or bad the object/action is).
Consumer Values and Lifestyles:
Values are shared beliefs or cultural norms about what is important or right.
Cultural values directly influence how Consumers view and use individual
products, brands, and services.
The List of Values (LOV):
• Self-respect • Warm relationships
• Self-fulfillment • Sense of belonging
• Respect from others • Excitement
• Security • Sense of accomplishment
• Fun and enjoyment in life
Individual Determinants of
Consumer Behavior
Consumer Values and Lifestyles:
Lifestyle describes a person’s pattern of living as expressed in activities,
interests, and opinions (AIO statements).
Lifestyle is a way of living of individuals, families (households), and societies,
which they manifest in coping with their physical, psychological, social,
and economic environments on a day-to-day basis.