Consumer behaviour unit 2
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The document discusses key aspects of consumer behavior including definitions, important disciplines involved like psychology and economics, consumer involvement, types of consumers and consumer buying behavior. It explains how understanding consumer behavior can help with identifying market opportunities, selecting target markets, and informing marketing mix decisions related to product, price, distribution and promotion.
Consumer behaviour unit 2
- 2. Unit 1 – Introduction To Consumer Behavior Meaning of Consumer Behavior, Features and Importance Types of Consumer (Institutional & Retail), Diversity of consumers and their behavior- Types Of Consumer Behavior Profiling the consumer and understanding their needs Consumer Involvement Application of Consumer Behavior knowledge in Marketing Consumer Decision Making Process and Determinants of Buyer Behavior, factors affecting each stage, and Need recognition.
- 3. What is consumer behavior? Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants.
- 4. Importance of Consumer Behavior To design the best possible product or service that fully satisfies consumer's needs and demands. To decide where the service or product would be made available for easy access of consumers. To decide the price at which the consumers would be ready to buy that product or service. To find out the best method of promotion that will prove to be effective to attract customers to buy a product. To understand why, when, how, what and other factors that influence buying decision of the consumers.
- 5. Disciplines involved in Consumer Behavior Psychology Sociology Social psychology Cultural anthropology Economics
- 6. Psychology It is the study of the individual which includes motivation , perception , attitudes, personality and learning theories. Example: someone may buy a Reid and Taylor suiting just because Amitabh Bachchan endorses it and he feels that his personality would resemble Amitabh’s after wearing it.
- 7. Sociology It is the study of groups. The influences of group memberships, family and social class on consumer behavior. Example: someone might eat at a restaurant just because the mennmbers of the social group to which he belongs insists in him in doing so,even if he personally dislikes eating at that place.
- 8. Social Psychology It is the combination of sociology and psychology and studies how an individual operates in a group, It also studies how those whose opinions they respect as peers,refrence groups, their families and opinion leaders influence individuals in their consumption behavior.
- 9. Cultural Anthropology It is the study of human beings in society. It explores the development of core beliefs,values and customs that individuals inherit from their grandparents. It also studies subcultures and help compare customers of different nationalities and cultures. Examples: people in India drink more tea than coffee and its just the opposite in US.
- 10. Economics It is the study of how customers spend their funds, how they evaluate alternatives and how they make decisions to get maximum satisfaction from their purchases. Example: people might buy tide because its cheaper than Ariel or Surf excel and gives more of less same results.
- 11. Consumer Involvement Consumer involvement refers to degree of information processing or extent of importance that a consumer attaches to a product. The degree of involvement has a very significant effect on consumer behavior. When more expensive products are to be purchased, the consumer gets more involved in purchase process but he may not be equally involved in a product which is just a rupee or two priced.
- 12. Examples CAR- As it is a expensive product so consumer will get highly involved resulting in higher involvement. BOOK- The book purchased by a student for preparing competitive exam may not be as expensive as car, yet the customer gets highly involved because it is a important product. MEDICINE- When a medicine is being purchased, which may not be very expensive, yet the customer may be highly involved in checking that it shouldn’t react him.
- 13. Low- involvement High- involvement Brand beliefs are formed first by passive learning Brand beliefs are formed by active learning Consumer makes purchase decision Consumer evaluates various brands There may or may not be post-purchase evaluation Consumer makes purchase decision High and Low involvement Hierarchy
- 14. LEVELS OF INVOLVEMENT Habitual decisions Simple decisions Lengthy decisions eg. Tea, toothbrush, eg. Skin cream, eg. Cars, diamond, Washing powder. Torch, snacks. Property. HIGH INVOLVEMENT LOW INVOLVEMENT SOME INVOLVEMENT
- 15. Major Dimensions Of Involvement Moderating Factors Opportunity to Process Ability to process Person Stimulus/Object Situation Intensity Direction Persistence Search Information Processing Decision or Persuasion Involvement Variable Involvement Properties Response Factors
- 16. INVOLVMENT VARIABLES PERSON- The variable related to person refer to personal needs, values, interests & experiences etc. For example: a person interested in computers is very likely to have personal interest in computer related magazines to learn about new development. STIMULUS/OBJECT- refers to product or stimuli that consumer perceives to be closely related to his/her values, experience and interest. For example: in case of computers, one should not expect the same level of involvement for all consumers.
- 17. INVOLVEMENT PROPERTIES INTENSITY: Involvement intensity refers to the severity of involvement as experienced by the consumer and is generally categorized as high or low. DIRECTION: Direction refers to the focus of involvement and involvement variables will strongly affect this focus. The focus could be a product, service, ad or purchase decision. PERSISTENCE: Persistence describes the length of time the consumer remains involved with purchase decision.
- 18. RESPONSE FACTORS Response factors concern how a consumer behaves under involvement condition of different intensity. These factors includes different pattern of information search, information processing, evaluation of alternatives and post-decision actions. One may expect that consumer is high in enduring involvement for a product will undertake regular, ongoing search for information & low involvement will result in little search for information.
- 19. Different Types Of Consumers A product manufacturing company needs to understand the type of consumers it is targeting with its goods because it is essential to be confident a market exists for the products they intend to introduce into the market. Knowing the types of consumers for goods is also important because it enables the company to appropriately present the product to the potential purchaser, hence increasing sales and profitability.
- 20. Seasonal Consumers Many consumers purchase and consume products on a seasonal basis. They shop at certain times when the need for them arises. Cash flow for a business selling seasonal products can be very difficult. Long periods of the year may be without sales, so it is vital to quickly and effectively target seasonal consumers. Examples of products that rely on seasonal consumers: Umbrellas during the rainy season Cold or icy drinks during the hot seasons Christmas trees and decorations in December Beach wear in summer.
- 21. Personal Consumers These types of consumers are individual consumers who purchase goods for the sole purpose of personal, family or household use. Examples Going to the supermarket and shopping for goods which are to be used in the house Purchasing a car that you intend to use personally Purchasing clothes for personal use from a clothing mall Purchasing a mobile phone for personal communication. Manufacturers selling products to personal consumers are constantly looking for ideas for upgrades and add-ons to enhance the appeal of their goods to individuals.
- 22. Organizational Consumer Organizational consumers purchase products for organizations, governments or businesses, They often buy in bulk and may place long-term recurring orders. For this reason, an organizational consumer is generally highly prized and sought after. Products and services sold to organizational consumers are often required to meet very strict standards. They may need to be adapted to meet the specific requirements of the buyer, and specific prices are negotiated. Manufacturers and service providers who target organizational consumers are expected to be flexible in their approach to negotiating a sale, but rigid in maintaining quality. Goods may be offered for resale at a profit to the organizational purchaser. Or an organization may buy raw materials that are aimed at producing other goods which will later be offered for sale to other consumers.
- 23. Impulse Buyers Impulse buyers are consumers who make unplanned buying decisions. Impulse buyers make swift buying decisions and immediately purchase when they 'connect' with the product and its features. There is often some kind of emotional appeal. Products impulse consumers purchase are not initially in their plans, so product placement is very important. Manufacturers who target impulse buyers need their goods to be featured prominently in a store. For example: Chocolates near the check-out counter Cookies at eye level on the shelf Bright, eye-catching novelty items where children can spot them. Service providers can also target impulse buyers, often by offering significant discounts or immediate service.
- 24. Need Based Consumers Need based consumers are those types of consumers who buy goods and services when they need them and not any other time. Many of the products in a hardware store, for instance, are sold to need based consumers. A need for a certain product will necessitate buying it because it is needed immediately for a certain purpose. The challenge for marketers is to create a sense of 'need' to promote the sale of products and services. Examples: Paint when a wooden house needs to be protected from the weather Light bulbs when we need to see at night Heaters or air-conditioning if we need to be comfortable in our homes. Life insurance sales increase if we are convinced we need to be sure our families are taken care of if we die.
- 25. Discount Driven Consumers Discount driven consumers are the type of consumers who purchase goods and services primarily for the discounts on offer. They may not engage in any buying activity until they hear or see large discounts being offered on products they like. Discount driven buyers are price sensitive and would rather wait to purchase products when they come with discounts as opposed to when they are sold for full price. Coupons and stock-take sales are popular with this type of consumer. An increasing number of manufacturers, retailers and service providers offer discounts during recession or harsh economic climates.
- 26. Habitual Consumer Habitual consumers are those who feel compelled to use certain brands or types of goods. Marketers work hard to create brand loyalty among this type of consumer. It may be as simple as always choosing the same brand of deodorant, the same brand of soda, or shopping in the same store for groceries or clothes. Cigarettes and alcohol are classic examples of products that target habitual consumers. A beer drinker can be expected to always buy the same type of beer, and smokers have been known to leave a store and go to a different sales outlet if their brand of cigarette is not available. Advertising often encourages a persona associated with a specific product to appeal to habitual consumers.
- 27. Types of Consumer Buying Behavior Complex Buying Behavior Dissonance- Reducing Buying Behavior Habitual Buying Behavior Variety- Seeking Buying Behavior
- 28. Complex Buying Behavior Complex buying behavior is exhibited by the consumers, when the involvement level in a purchasing is high and also there are different brands available in the market that represent different values. In such cases the product searched for buying is relatively expensive and risky. The product also covers the aspect of self expression and the frequency of purchase is also occasionally. For example, if a consumer wants to purchase a personal computer, then he cannot get the clear idea of computer through his RAM, Processor etc. Instead, he first tries to make his beliefs about the categories of different brands of computers. After which he develops his attitudes and finally purchase a certain personal computer on the basis of his learning process.
- 29. Dissonance Reducing Buying Behavior Dissonance Reducing Buying Behavior represents such case in which the involvement of the consumers is high, but the available brands show less differences. The purchase of the product is relatively quicker in this kind. For example, customers who want to purchase the newly arrived LED TVs will not find many differences between the brands but the price of the product and its technicality will make them involve more.
- 30. Habitual Buying Behavior Habitual Buying Behavior is one of the types of Consumer Buying Behavior in which the involvement of consumers in the purchase is low along with the few differences among the alternative brands. In this case the products offered are cheap and purchased frequently. For example, if a consumer purchases sugar from the market, he exhibits habitual behavior in such a way that he does not inquires different brands and prices of sugar. Instead, he buys it simply from the first shop without making any extra efforts.
- 31. Variety-Seeking Buying Behavior The fourth type of Consumer Buying Behavior is variety-seeking buying behavior in which the involvement of consumer is low, but the brands exhibit much perceived difference. In such situations, consumers are switched more from one product to another. For example, a consumer wants to buy a cookie, so he does not try to learn different brand and specifications of cookies, rather, he simply buys a certain brand of cookie and make use of it to make an evaluation, and the next time he may buy another brand of cookie. This switching of consumer from one brand to another is not based on the dissatisfaction, but on the base of testing the variety.
- 32. Application of Consumer Behavior knowledge in Marketing 1) Analyzing market opportunity Consumer behavior study helps in identifying the unfulfilled needs and wants of consumers. This requires examining the trends and conditions operating in the marketplace, consumers' lifestyles, income levels and emerging influences. This may reveal unsatisfied needs and wants. the trend towards increasing number of dual income households and greater emphasis on convenience and leisure have led to emerging needs for household gadgets such as washing machine, mixer grinder, vacuum cleaner and childcare centres etc. Mosquito repellents have been marketed in response to a genuine and unfulfilled consumer need.
- 33. 2)Selecting target market A review of market opportunities often helps in identifying distinct consumer segments with very distinct and unique wants and need. Identifying these groups, learning how they behave and how they make purchase decisions enables the marketer to design and market products or services particularly suited to their wants and needs. For example, consumer studies revealed that many existing and potential shampoo users did not want to buy shampoo packs priced at Rs. 60 or more and would rather prefer a low priced sachet containing enough quantity for one or two washes. The finding led companies to introduce the shampoo sachet which became a good seller.
- 34. 3) Marketing-mix decisions Once unsatisfied needs and wants are identified, the marketer has to determine the right mix of product, price, distribution and promotion. Here too, consumer behavior study is very helpful in finding answers to many perplexing questions.
- 35. 3a) Product The marketer designs the product or service that would satisfy unfulfilled needs or wants. Further decisions regarding the product concern to size, shape and features. The marketer has also to decide about packaging important aspects of service, warranties and accessories etc. Eg: Nestle first introduced Maggie noodles in masala and capsicum flavours. Subsequently, keeping in view the consumer preferences in some regions, the company introduced garlic, Shabhar and other flavours.
- 36. 3b) Price The second important component of marketing mix is price. Marketers must decide what price to charge for the product or service. These decisions will influence the flow of revenue to the company. the marketer must understand the way the company's product is perceived by consumers, the importance of price as a purchase decision variable and how different price levels would affect sales. It is only through consumer behaviour study in actual buying situations that the marketer can hope to find answers to these important issues.
- 37. 3c)Distribution The next decision relates to the distribution channel, that is, where and how to offer products and services for sale. Should the products be sold through all the retail outlets or only through selected ones? Should the marketer use only the existing outlets, which also sell competing brands, or should new exclusive outlets selling only the marketer's brands be created? Is the location of retail outlets important from consumers' point of view? Should the company think of direct maketing? The answer to these question are furnished by consumer behaviour research.
- 38. 3d) Promotion The marketer has to decide which method would be most suitable to effectively reach the consumers. Should it be advertising alone or should it be combined with sales promotion? The company has to know the target consumers, their location, what media do they have access to and what are their media preferences, etc. In most cases of industrial products there is very little or no advertising. Brochures containing technical specifications are often posted to the clients and the salespeople make follow-up visits. Consumer products get the maximum share of advertising. Pharmaceutical industry exclusively use personal selling for prescription drugs. Insurance companies use both advertising and personal selling.
- 39. 4)Use in Social and Non-profits Marketing Consumer behavior studies are useful to design marketing strategies by social, governmental an not-for-profit organizations to make their programmes such as family planning, awareness about AIDS, crime against women, safe driving, environmental concerns and other more effective. UNICEF (greeting cards), Red Cross and CRY etc. make use of consumer behavior understanding to sell their services and products and also try to motivate people to support these institutions.
- 40. Consumer profiling A consumer profile is a way of describing a consumer categorically so that they can be grouped for marketing and advertising purposes. By target advertising to a specific market segment, companies and marketers can find more success in selling a particular product and increase profits. As a short-hand way of talking about consumers, market segments are often represented by consumer profiles.
- 41. The six elements of a customer profile Start with your data. Consolidate and add KPIs such as revenue per customer, email responsiveness, product mix and purchase channel. Remove duplications and create Single Customer Views. Enhance and enrich first party data using third party data. This is an optional step but it is advisable that you ensure your data is sufficient, thorough and strong enough before proceeding to the next step. Segment your customer groups so you can target your best customers or the customers you feel represent the greatest opportunity. Create a rich picture of these customers on and offline (and your competitors’ customers) so you can target them and ensure your campaign messaging, channels, locations and times of day, are relevant. Deploy your targeted cross-channel campaigns to the selected customer segments. Measure the effectiveness of your campaigns over time by each customer group. Keep track of changes in your competitors’ customers, spatial trends concerning where your best customers are and where they interact with you
- 42. Review Questions Is it important to consider the behavior of consumers while deciding on the marketing mix of the company ? Why? Explain with suitable examples It is said that each consumer is unique, and any study that concentrates on the “average consumer” is meaningless. Discuss its implication. Why is it so important to conduct a consumer research before the launch of any campaign? “It has become important for marketers to understand the psyche of the consumer ”. Comment.
- 43. Caselet on consumer decision making process NEW BALANCE, OUT OF STEP1. Explain the consumer decision-making process when purchasing a new pair of sneakers. - Consumers decision process is comprised of 5 steps:- Determining a need for a produce- a need for a new pair of runningsneakers - Search for information- using the internet or reading reviews in Runner’s World Magazine - Evaluation of alternatives- should I purchase the New Balance 875 or theNike’s and others - Making the choice- going to a store or purchase online - Post choice evaluation- Did I make the right decision to purchase NewBalance over Nike
- 44. Review questions What type of decision-making approach do most consumers use when deciding between smartphone, tablet, laptops, or Pcs.? Answer: - Most consumers will engage in extended decision making- Smartphones, tablets, laptops, and PCs represent significant purchases for most consumers and they are usually fairly expensive.- Involvement will like be high for most consumers-Purchase price and the frequency of use of the product What factors influence the amount of search that most consumers will exert when buying a smartphone or a tablet? Answer: - It is likely that moderated experienced consumers will search the most forsmart phone or tablet information- experts will know exactly what theywant, while novices will likely not be able to understand all the productdifferences- Other factors affecting search: Involvement with the purchase, perceivedrisk, and the value of the search effort, personal factor, time availabilityand situational influencers
- 45. Unit 2 Consumer Needs &Motivation (Theories - Maslow, Mc Cleland). Personality – Concept, Nature of personality, Freudian, non - Freudian and Trait theories, Personality Traits and it’s Marketing significance, Product personality and brand personification. Self Concept – Concept Consumer Perception Learning - Theory, Nature of Consumer Attitudes, Consumer Attitude Formation &Change,Attitude - Concept of attitude
- 46. Consumer Motivation Motivation can be described as the driving force within individual that impels them to action. This driving force is produced by a state of tension,which exists as the result of an unfilled need. Individuals strive both consciously and subconsciously to race this tension through the behavior that they anticipate will fulfill their needs and thus relieve them of the stress they feel.
- 48. Needs Innate These are physiological needs. They include the need for food,water,air,shelter,sex. As these needs are needed to sustain biological life, These needs are considered primary needs or motives. Example: all individuals need shelter from the elements, thus finding a place to live fulfils an important primary need Acquired Acquired needs are needs that we learn in response to our culture or environment. These may include needs for esteem,prestige,affection,power,learning. As these needs are generally psychological, They are considered secondary needs or motives. Example: The kind of house she buys may be the result of secondary need.
- 49. Goals The sought-after results of motivated behavior Generic goals are general categories of goals that consumers see as a way to fulfill their needs. Product-specific goals are specifically branded products or services that consumers select as their goals. Example: Thomas j.Lipton company wants consumers to view iced tea as a good way to quench thirst. However ,it is even more interested in having consumers view Lipton’s ice tea as the best way to quench thirst
- 50. Motivations and Goals Positive motivation: Positive motivation induces people to do work in the best possible manner and to improve their performance. Under this better facilities and rewards are provided for their better performance. Such rewards and facilities may be financial and non-financial. Negative motivation It is based on the concept that if a worker fails in achieving the desired results, he should be punished. Negative motivation involves undertaking tasks because there will be undesirable outcomes, eg. failing a subject, if tasks are not completed. Both positive and negative motivation aim at inspiring the will of the people to work but they differ in their approaches. Whereas one approaches the people to work in the best possible manner providing better monetary and non-monetary incentives, the other tries to induce the man by cutting their wages and other facilities and amenities on the belie
- 51. Rational versus Emotional motives Rationality implies that consumers select goals based on totally objective criteria such as size, weight, price, or miles per gallon Emotional motives imply the selection of goals according to personal or subjective criteria
- 52. Maslow’s hierarchy of needs Self-actualization (self-fulfilment) Ego needs (success,prestige,self-respect) Social needs (friendship,affection,belonging) Safety and security needs(protection,order,stability,certainity) Physiological needs (air,water,food,clothing)
- 53. Personality and consumer behavior The inner psychological characteristics that determine and reflect how a person responds to his or her environment. Personality is a useful concept because it permit us to categorize consumers into different groups on the basis of one or even several traits/Qualities.
- 54. Introduction Marketers have long tried to appeal to consumers in terms of their personality characteristics. They have intuitively felt that consumers purchase, and when and how they consume, are likely to be influenced by personality factors. For this reason marketing and advertising people have frequently depicted specific personality traits or characteristics in their making and advertising messages.
- 55. Theories of personality Freudian theory Unconscious needs or drives are at the heart of human motivation Neo-Freudian personality theory Social relationships are essential to the formation and development of personality Trait theory Quantitative approach to personality as a set of psychological traits
- 56. Freudian theory This theory was built on the basis of unconscious needs or force, especially for sexual and other natural drives, are at the heart of human motivation and personality . Freud constructed his theory on the basis of patients recollections of early childhood experiences, analysis of their dreams, and the specific nature of their mental and physical adjustment problems. Human personality consists of three interacting systems the id, the superego, and the ego. Id:Warehouse of ancient needs for which individual seeks immediate satisfaction(thirst, hunger etc) Superego:The superego role is to see that the individual satisfies needs in a socially acceptable fashion or not. Ego:It is Individual’s conscious control that balances the unstructured demands of the id and the sociocultural control of the superego
- 58. Neo-Freudian personality theory This theory believed that social relationships are basic to the formation and development of personality. Human beings as wants to achieve various rational goals, which he called style of life. He also place much emphasis on the individuals efforts to overcome feelings of inferiority. According to “KAREN HORNEY proposed that individuals be classified into three personality groups: 1. Complaint individuals are those who move toward others(they desire to be loved, wanted and appreciated) 2. Aggressive individuals are those who move against others (they desire to do extremely well and win high regard) 3. Detached individuals are those who move away from others (they desire independence, self- sufficiency, and individualism or freedom from responsibility
- 59. Trait theory Personality theory with a focus on psychological characteristics. Trait- any distinguishing, relatively enduring way in which one individual differs from another. Personality is to linked to how consumers make their choices or to consumption of a broad product category-not a specific brand
- 60. Personality and understanding consumer diversity
- 61. Consumer Innovativeness: to what extent a person is receptive to a new buying experience. Consumer Materialism : to ascertain the extend to which consumers are attached to worldly material possessions Consumer Ethnocentrism : The likelihood of consumer accepting or rejecting foreign made products Trait theory and personality traits
- 62. Consumer materialism Consumer materialism is a personality trait that distinguishes between individuals who consider possessions as important for their identities. Individuals who are high on materialism believe is showing –off worldly possessions like car,bungalow,jewellary which are important for their identities and lives Individual who are low on materialism feel that worldly possessions like expensive cars,jewellary are secondary in lives
- 63. Consumer Ethnocentrism Consumer response towards foreign goods Consumer who are highly ethnocentric are likely to feel that it is inappropriate or wrong to purchase foreign-made products because of the resulting economic impact on the domestic economy, whereas Nonethnocentric consumers tend to evaluate foreign-made products- it seems that more objectively-for their extrinsic characteristics (e.g. how good are they?)
- 64. Brand Personality Brand personality is as if “making the brand alive” The attribution of human personality traits (seriousness, warmth, imagination, etc.) to a brand as a way to achieve differentiation. Usually done through long-term advertising and appropriate packaging and graphics. These traits inform brand behavior through both prepared communication/packaging , etc. and through the people who represent the brand- its employees. The way in which it speaks of its products or services shows what kind of person it would be if it were human. A brand without a personality has trouble gaining awareness and developing a relationship with customer.
- 65. Brand Personality Raymond, Hero Honda passion Sincerity Domestic, honest, genuine Excitement Daring,Spirited,Imaginative Mountain dew, Bajaj pulsar Competence Reliable,Responsible,Dependant Airtel,LIC Sophiscated Glamorous,Charming,Romantic Mercedes, Tommy Hilfiger Rugged Tough,Strong,Outdoorsy Harley Davidson ,Ceat
- 66. Brand Personification Brand personification is done when consumers attribute character similar to human beings to a brand. Brand personification helps in differentiating brands,mainly when all brands are offering same types of products. A brand personality offers an emotional identity to a brand.it produces sentiments and feelings towards the brand among consumers who are most likely to purchase a brand if it is similar to their personality. Examples: Middle class association of the brand Bajaj Levis represents sensuality, being cool and rebellion
- 67. Self -Concept A self-images, or perceptions of self, are very closely associated with personality in that individuals tend to buy products and services and support retailers whose images or personalities relate in some meaningful way to their own self-images. In real meaning, consumers seek to represent themselves in their brand choices- they have a tendency to approach products with images that could enhance their self concept and avoid those products that do not.
- 68. One or multiple selves A single consumer will act differently in different situations or with different people We have a variety of social roles Marketers can target products to a particular “self” Actual self image Social self image Expected self image Ideal self image Ideal social self image How consumers see themselves How consumers feel others see them How consumers expect to see themselves in future How consumers would like to see themselves How consumers would like others to see them
- 69. Review Questions You are the advertising manager for a sports footwear company.develop three different theme based on three different levels of in the need hierarchy for the AD campaign Mention three examples of how personality traits can influence consumer behavior Is there a relation between personality and behavior? Give suitable examples. What are the implications for the marketers in creating a personality for their brands?
- 70. Consumer Perception According to Philip Kotler,” Perception is a process by which we select,organize and interpret information inputs to create a meaningful picture of the world” Customer perception is typically affected by advertising, reviews, public relations, social media, personal experiences and other channels.
- 72. Elements of Perception 1.Sensation 2.Absolute threshold 3.Differential threshold 4.Subliminal perception
- 73. Sensation The immediate and direct response of the sensory organs to stimuli. A stimulus is any unit of input to any of the senses. Excitement , agitation, commotion, dry Ginger,,, Product, packages, Brand name, Advertisement and Commercials… Sensory Receptors
- 74. example: a person living near a busy railway station would probably receive no sensation froma car or train horns or other traffic noises.Increase or decrease of one or two honking horns would never be noticed. When the quantum of sensory inputs is high, The senses fail to detect small differences in sensory inputs.
- 75. Absolute Threshold The absolute threshold is the lowest level at which an individual can experience a sensation. Point at which a person can detect a difference between “Something” and “Nothing” is the person’s absolute threshold for the stimulus Ex. Driver of car see the billboard on the road different from the back seated person..
- 76. Differential Threshold Minimal difference that can be detected between two similar stimuli Also known as the just noticeable difference( the j.n.d.)
- 77. German Scientist Ernst Weber He discovered that the j.n.d. between two stimuli was not an absolute amount, but an amount relative to the intensity of the first stimuli. Weber’s law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.
- 78. Example: if a producer raises the price of its car by four hundred rupees,probably it would not be noticed because the increase would fall below J.N.D. The difference in price may become noticeable if the increase were to be on thousand rupees or more. To be noticed,an additional level of stimulus equivalent to J.N.D. must be added to make the differenceperceptible. Likewise, if thereduction in price of the same car is rs,400, it is again unlikely to be noticed below the level of J.N.D
- 79. Subliminal Perception Stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception because the stimulus is down the threshold.
- 80. Dynamics of Perception Human Beings stimuli change during every minute and every hour of every day.. Physical stimuli from outside Environment.. Other inputs are provided by individual themselves ( Based on previous experience )
- 81. Learning According to Schiffman, Learning means,” the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior”.
- 83. Classical conditioning is a type of learning that had a major influence on the school of thought in psychology known as behaviorism. Discovered by Russian physiologist Ivan Pavlov, classical conditioning is a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus. Behaviorism is based on the assumption that: • All learning occurs through interactions with the environment • The environment shapes behavior
- 84. Review Questions Explain Just Noticeable Difference in brief. Discuss three marketing situations where it can be usefully used. Mention two examples of classical conditioning in advertising. Everyday we look at so many things,we remember some,we ignore some and do not even notice some. Why does this occur? Explain with examples.
- 85. Attitude Attitude is the persistence tendency to feel and behave in a favourable or unfavorable way towards some object, person or ideas.
- 86. Functions of Attitude Utilitarian function –We hold brand attitudes partly because of a brand utility. If the product has been useful in the past, our attitude towards it is likely to be favorable Ego Defensive Function − Attitudes are formed to protect the ego. We all are bothered about our self-esteem and image so the product boosting our ego is the target of such a kind of attitude.eg; personal care products like deodrants,cosmetics etc. Value Expression Function − Attitudes usually represent the values the individual posses. We gain values, though our upbringing and training. Our value system encourages or discourages us to buy certain products. For example, our value system allows or disallows us to purchase products such as cigarettes, alcohol, drugs, etc. Knowledge Function − Individuals’ continuously seeks knowledge and information. When an individual gets information about a particular product, he creates and modifies his attitude towards that product.
- 87. Attitude Models Tri-component Model − According to tri-component model, attitude consists of the following three components. Cognitive Component − The first component is cognitive component. It consists of an individual’s knowledge or perception towards few products or services through personal experience or related information from various sources. This knowledge, usually results in beliefs, which a consumer has, and specific behavior. Affective Component − The second part is the affective component. This consists of a person’s feelings, sentiments, and emotions for a particular brand or product. They treat them as the primary criteria for the purpose of evaluation. The state of mind also plays a major role, like the sadness, happiness, anger, or stress, which also affects the attitude of a consumer. Conative Component − The last component is conative component, which consists of a person’s intention or likelihood towards a particular product. It usually means the actual behavior of the person or his intention.
- 88. Strategies for Attitude Change Changing the Basic Motivational Function Associating the Product With an Admired Group or Event Resolving Two Conflicting Attitudes Altering Components of the Multiattribute Model Changing Beliefs About Competitors’ Brands
- 89. Changing the Basic Motivational Function Utilitarian function Ego-defensive function Value expressive function Knowledge function
- 90. Associating the product with a special group, event or cause Attitudes are related, at least in part to certain groups, social events, or causes. It is possible to alter attitudes toward companies and their products by pointing out their relationships to particular groups, events. For example: Aircel has partnered with world wildlife fund India to create “save our tigers” initiative.
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