Unit 2 Determinants of Consumer Behaviour Part 3 Consumer Attitudes Formation and Change Consumer Values and Lifestyles.pdf
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Determinants of Consumer Behaviour: Role of Motivation; Personality and Self Concept; Attention and Perception; Consumer Learning; Consumer Attitudes- Formation and Change; Consumer Values and Lifestyles External Determinants of Consumer Behaviour: Influence of Culture and Sub Culture; Social Class; Reference Groups and Family Influences; Basic models of consumer behaviour
Unit 2 Determinants of Consumer Behaviour Part 3 Consumer Attitudes Formation and Change Consumer Values and Lifestyles.pdf
- 1. CONSUMER LEARNING AND ATTITUDES.
- 2. LEARNING Learning in consumer behavior refers to the process through which individuals acquire knowledge and experience about products, brands, and services, influencing their purchase decisions.
- 3. ELEMENTS OF LEARNING Emerging Actual Experince Frames behaviour Evolving Continuous New Knowledge Evaluation and integration Consistent Motivation Cues response & Reinforcement Consumer learning shapes buying behavior and long-term brand loyalty.
- 4. DIMENSIONS OF CONSUMER LEARNING Kardes, Cline & Cronley, 2011; Hoch & Deighton, 1989 Learning is a natural process for all human beings. The process of learning determines learning outcomes, and it may vary among individuals. The Figure on the next page shows various variables that affect learning in individuals
- 5. DIMENSIONS OF CONSUMER LEARNING Experiment & Impulsivity Action Context Motives Individual Traits Satisfactory outcome & repeat behaviour New Information Signals Preceding Knowledge Prior Learning & Experince
- 6. MOTIVES Motives are the triggers and affiliations that the digital natives have for a defined behavior. Motives can be internal and external. They determine the level of learning for individuals. Subsequently, they activate the efforts and mobilisation of resources Louden & Bitta, 1993
- 7. INDICATORS & SIGNALS Learning can be enhanced by providing indicators and clues to digital natives. This mission is made easier through digital platforms. These elements span across advertisements, colors, price, aesthetics, product display, brand features, and characteristics. Look young
- 8. CONTEXT Context is dynamic. They are overloaded with information and would always like to understand the context. If products and services understand the consumer context, the acquisition of knowledge is faster. For example, Myntra has a personalized shopping experience while the consumers are “on the go” via mobile app.
- 9. Socioeconomic factors affect learning. The basic digital native traits of individuals influence their mindset. This is so much truer when consumers access multiple online media platforms. In such a situation, these digital natives connect and associate with products and services . INDIVIDUAL TRAITS it works on the concept of “Suggestion Box” with 150000+ members
- 10. Consumers are eager to learn about new products and services. Theylike to know about the new characteristics of the brands. NEW INFORMATION Unboxing Video
- 11. Learning is primarily by previous knowledge and the experience of the digital natives. Prior knowledge helps people understand new concepts and ideas that they might have learned from digital media platforms. PRECEDING KNOWLEDGE
- 12. The action of the consumer is important in the learning process. Since these individuals have motives and clues, they process. Since these individuals have motives and clues, they process the information carefully and interpret it through learning. ACTION Every women has beautiful hair
- 13. Classical Conditioning (Pavlovian Theory) Associative Learning THEORIES OF LEARNING IN CONSUMER BEHAVIOR Consumers learn through repeated associations between two stimuli. Amul's "Utterly B u t t e r l y D e l i c i o u s " J i n g l e Every time consumers hear the Amul jingle, they associate it with butter, trust, and nostalgia. Over time, even without seeing the product, the jingle triggers a craving for Amul butter.
- 14. MARKETING APPLICATION Brands use music, slogans, and visuals to create emotional connections (e.g., Tanishq’s wedding jewelry ads evoke sentiments of tradition and celebration). Think of an Indian brand and its advertising element (color, sound, celebrity, tagline, etc.) that influences your perception.
- 15. MARKETING APPLICATION Name the brand
- 16. INSTRUMENTAL CONDITIONING (OPERANT CONDITIONING) Reward-Based Learning Consumers learn through rewards and punishments. Consumers subscribe to these premium plans due to discounts and free deliveries. Positive reinforcement: Rewards (cashbacks, free delivery) encourage repeated usage. Negative reinforcement: If a user doesn’t subscribe, they face higher delivery charges.
- 17. MARKETING APPLICATION Brands use loyalty programs, referral rewards, and discount coupons to reinforce purchasing behavior. enhance customer retention and habit formation
- 18. COGNITIVE LEARNING (RESPONSE THEORY) Learning by Thinking Consumers analyze, process, and evaluate information before making a decision. Car Buying Decision Hyndai Toyato TATA
- 19. COGNITIVE LEARNING (RESPONSE THEORY) A buyer researches car safety, fuel efficiency, and resale value before deciding. They compare models on CarDekho, OLX, or YouTube reviews before making a purchase. Brands like Tata Motors (Safety Ads) and Asian Paints (Home Décor Simulators) use rational learning to influence high-involvement purchases.
- 20. MARKETING APPLICATION You have ₹30,000 to buy a new phone. Compare iQOO, Samsung, and OnePlus using specifications and reviews. Logical decision-making is crucial for high-value products.
- 21. REAL-WORLD APPLICATION OF CONSUMER LEARNING How Indian E-Commerce Brands Use Learning Theories 📢Brand: Flipkart & Amazon India 🛒Objective: Increase purchases & repeat customers. 🔹Classical Conditioning: Flipkart’s Big Billion Days – The jingle + blue-yellow colors = Excitement for mega sales. 🔹Instrumental Conditioning: Amazon’s "Buy More, Save More" deals reinforce repeat shopping behavior. 🔹Cognitive Learning: Amazon and Flipkart’s review & rating system help customers make informed decisions. Customers learn through experience and repetition, increasing long-term loyalty.
- 22. NEXT CLASS PRESENTATION Choose an Indian brand (Dabur, HDFC, Titan, Byju’s, Mamaearth, etc.) and analyze: Which learning theory applies to its marketing strategy? 1. How does the brand create consumer habits? 2. Suggest improvements to enhance customer learning. 3.
- 23. DEBATE Do Consumers Truly Change Their Brand Attitudes, or Do Brands Change to Fit Consumer Attitudes?
- 24. DEBATE Lets Play a Quiz
- 25. DISCUSSION Have you ever loved a brand and later changed your opinion about it? Why?
- 26. DISCUSSION Attitude formation: Cognitive (knowledge), Affective (emotional), Behavioral (actions). Attitude change theories: Persuasion, Cognitive Dissonance, Social Influence.
- 27. DISCUSSION Brands drive consumer attitude changes more than consumers influence brands. TEAM A Consumers adopt new attitudes toward brands because of marketing, branding strategies, and trends. TEAM B Consumers' changing values and perceptions force brands to adapt.
- 28. DISCUSSION POINTS Nike’s Stance on Social Issues (Colin Kaepernick Campaign) In 2018, Nike featured Colin Kaepernick, the NFL player known for kneeling during the national anthem to protest racial injustice, in their campaign with the tagline: "Believe in something. Even if it means sacrificing everything." This move sparked both support and backlash—some consumers boycotted Nike, while others appreciated its stand on social justice.
- 29. DISCUSSION POINTS Nike’s Stance on Social Issues (Colin Kaepernick Campaign) ✔ Supporters: Millennials and Gen Z embraced Nike's activism, leading to an increase in brand loyalty and a 31% sales boost in the following days. ❌Critics: Some Nike consumers, particularly in conservative groups, burned their Nike shoes in
- 30. DISCUSSION POINTS Nike’s Stance on Social Issues (Colin Kaepernick Campaign) Nike shaped consumer attitudes by aligning with a social cause. Cognitive Dissonance Theory: Some consumers who previously liked Nike felt discomfort (dissonance) when the brand took a stance they opposed. Social Influence: Consumers who value activism became more loyal, reinforcing their positive attitude toward Nike.
- 31. DISCUSSION POINTS Coca-Cola’s Rebranding & "New Coke" Failure In 1985, Coca-Cola reformulated its iconic drink and launched "New Coke," thinking it would appeal more to younger consumers. Backlash: Consumers hated the change and demanded the return of the original formula. Coca-Cola had to bring back "Coca-Cola Classic" within months.
- 32. DISCUSSION POINTS ✔ Before the change: Coca-Cola was seen as a trusted, nostalgic brand. ❌After "New Coke": Consumers felt betrayed; their attitude shifted negatively. ✔After Coca-Cola Classic: The company regained customer trust, and brand loyalty grew even stronger. Coca-Cola’s Rebranding & "New Coke" Failure
- 33. DISCUSSION POINTS Brand familiarity & emotional connection matter: Consumers don’t always like change, even if the new product is objectively better. Cognitive (knowledge-based) vs. Affective (emotional- based) attitudes: Coke assumed taste mattered most, but emotions and brand identity were more powerful. Coca-Cola’s Rebranding & "New Coke" Failure
- 34. ATTITUDE Attitude is related to the psychological element as it assesses social dimensions. Evaluations can be about individuals, environment, or objects. Cooper & Crano, 2010; Kwon & Nayakankuppam, 2015 Attitude is a learned predisposition to behave in a consistently favorable or unfavorable manner towards a product, brand, or idea.
- 36. COMPONENTS Cognitive Affective behaviour Related to beleif Associated with feelings, emotions and sentiments Developed for the reactions and actions taken by consumers
- 37. COGNITIVE ATTITUDE Ethical reliability long-term sustainability Flambyount Luxury Advanced profit Earning
- 38. HOW ARE CONSUMER ATTITUDES FORMED? Personal Experience Influencers & Word of Mouth: Marketing & Advertisements A person who had poor service from an airline (e.g., Air India) may develop a negative attitude towards it. A social media influencer praises Mamaearth products, leading followers to develop a positive attitude toward the brand. Fevicol ads have humor and creativity, making consumers associate the brand with strong bonding and reliability.
- 39. FUNCTIONS OF ATTITUDES Utilitarian Knowledge Ego- defensive Value- expressive A consumer develops a brand attitude because of its utility. In other words; we develop a favorable attitude towards a product because of its utility function. So marketers try to change consumer attitudes in favor of their products or brand by highlighting its utilitarian purpose, which they (the competitors consumers ) may not have considered Human nature is such that individuals prefer to know and understand the people and things they are in contact. While product positioning, marketers try to do this and improve the consumers attitude towards their product or brand by highlighting its benefits over competing brands. Most individuals want to achieve personal goals and protect their self- image. They want re-assurance about their self-image from inner feelings or doubts Attitudes are formed to display consumers’ own values, life style and outlook. If the target consumers hold a positive attitude towards being fashionable, then they will have a positive attitude towards high fashion clothes
- 40. ATTITUDE FORMATION MODELS: Tri-component Attitude Model Multi-Attribute Attitude Models Theory-of-Reasoned- Action Model
- 41. TRI-COMPONENT ATTITUDE MODEL Cognitive Component Represents what a consumer knows or believes about a brand. Based on facts, experiences, and perceptions. Example: A consumer believes that Tata Salt is India’s most trusted salt brand due to its quality and iodine content. Affective Component Describes a consumer's emotions or feelings towards a brand. Can be positive, negative, or neutral. Example: A consumer feels nostalgic about Amul Butter because it reminds them of their childhood. Represents a consumer’s readiness to act or purchase based on their attitude. Influenced by past experiences, social proof, and brand perception. Example: A consumer buys Nike shoes after seeing positive reviews and feeling motivated by sports ads. Behavioral Component
- 42. RELEVANCE IN THE INDIAN MARKET Indian brands leverage cognitive marketing (fact-based trust-building), affective storytelling (emotional branding), and behavioral reinforcements (discounts, ads, influencer endorsements) to engage consumers. Understanding this model helps brands develop targeted campaigns that align with Indian consumers' beliefs, emotions, and purchase intentions.
- 43. MULTI-ATTRIBUTE ATTITUDE MODELS Fishbein Model (Attitude Toward the Object Model) Consumers evaluate a brand by rating different attributes (e.g., price, quality, design) and assigning importance weights to them. Theory of Reasoned Action (TRA) Extends the Fishbein Model by adding subjective norms (social influence). Consumers not only consider attributes but also what others think (e.g., family, friends, society). Attitude- Toward-the-Ad Model Suggests that a consumer’s attitude toward a brand’s advertisement affects their attitude toward the product itself. Positive or engaging ads can enhance brand perception.
- 44. RELEVANCE IN THE INDIAN MARKET Indian companies use these models to refine product positioning, marketing strategies, and advertisement effectiveness. Data-driven campaigns, celebrity endorsements, and influencer marketing align with consumer attitudes shaped by these models.
- 45. ATTITUDE CHANGE By changing the consumer beliefs By adding new beliefs By changing attribute importance By changing ideal points
- 46. CONSUMER VALUES Values are deeply held beliefs that guide consumer behavior. 🔹 Example: Indian consumers prefer organic food products because of a strong belief in health and Ayurveda.
- 47. TYPES OF CONSUMER VALUES Functional Focus on product usefulness. Consumers buy Maruti Suzuki cars for fuel efficiency. Emotional Purchase based on feelings Buying a Titan watch as a sentimental gift. Choosing Tanishq jewelry for social status. Patanjali’s herbal products appeal to Ayurvedic beliefs. Rooted in traditions. Influenced by societal trends Social Religious/ Cultural
- 48. LIFESTYLE Lifestyle explains how individuals live in their daily lives and undertake activities regularly. It is related to self-concept, past experiences, environment, and internal characteristics. The lifestyle of an individual is revealed when the internal traits of the person intersect with the social circles. Activities, interests, and behaviour of individuals are associated with either independent or interdependent lifestyle Peluso, Buckner, Kern & Curlette, 2009)
- 49. ELEMENTS OF LIFESTYLE According to Gerald W Feldman and Saul D Thielbar, there are various elements of lifestyle Feldman & Thielbar, 1971 Social Stages of Life Significance of activities Alterations in social elements
- 50. VALUES, ATTITUDE AND LIFESTYLES (VALS) stands for values, attitude, and lifestyle and is a framework for Psychographic segmentation was developed by social scientist and futurist Arnold Mitchell for SRI Consulting INC in 1978
- 51. VALUES Values are the core beliefs and principles that guide a person's behavior and decision-making. They influence how people perceive brands and products.
- 52. ATTITUDE Attitude refers to a consumer's feelings, beliefs, and opinions about a product, service, or brand. It determines whether they will accept or reject a product.
- 53. LIFESTYLE Lifestyle refers to a person’s way of living, including their activities, interests, and opinions. It reflects how they spend their time and money.
- 54. WHY IS VALS IMPORTANT FOR BUSINESSES? Understanding values, attitudes, and lifestyles helps brands create targeted marketing campaigns. For example: Zomato and Swiggy target urban millennials with convenience- driven offers. Reliance Jio focused on affordability and digital inclusion, making mobile internet accessible to lower-income groups. Tata Motors promotes its electric cars to environmentally conscious consumers.
- 55. VALS SEGMENTATION IN THE INDIAN CONTEXT
- 56. INNOVATORS High Income, High Confidence, Trendsetters Tech-savvy Entrepreneurs & Celebrities Luxury Travelers Fashion-forward Consumers Luxury and premium brands target them with exclusivity and innovation.
- 57. THINKERS Educated, Knowledge-seekers, Rational Buyers Investors & Academicians Quality-conscious Buyers Readers & Media Consumers Brands use logical reasoning, research- based ads, and long-term value appeals.
- 58. ACHIEVERS Career-driven, Status-conscious, Goal-oriented Corporate Professionals Frequent Travelers Gadget Enthusiasts Brands use aspirational and success-driven messaging to attract them.
- 59. EXPERIENCERS Young, Trendy, Adventure-loving, Social Media Influenced College Students & Influencers Travel & Adventure Enthusiasts Fitness Freaks & Sports Enthusiasts Influencer marketing, social media trends, and experiential campaigns work best.
- 60. BELIEVERS Traditional, Conservative, Value-conscious Buyers Middle-class Families Religious Consumers Budget Shoppers Traditional, trust-based, and family-centric advertising appeals to them.
- 61. STRIVERS Aspiring, Status-driven, Price-sensitive Consumers Aspiring Professionals & Students Fashion-conscious but Budget-focused Tech-savvy but Price- sensitive EMI options, discounts, and “premium for less” positioning work well.
- 62. MAKERS Practical, Self-sufficient, DIY-oriented Consumers DIY Enthusiasts & Handymen Rural & Semi-urban Consumers Budget-conscious Shoppers Practical benefits, durability, and cost-effectiveness appeal to them.
- 63. SURVIVORS Low-income, Need-based, Security-seekers Rural Households & Daily Wage Earners Government Welfare Beneficiaries Budget-conscious Transport Users Low-cost, high-value marketing and government collaboration work best.
- 64. WHY IS VALS IMPORTANT? Helps businesses identify their target customers. Assists in customizing marketing strategies based on values, attitudes, and lifestyles. Enables companies to design relevant products and advertisements that connect with consumers.
- 65. REFRENCES Pavlov, I. P. (1927). Conditioned Reflexes. Oxford University Press. Skinner, B. F. (1953). Science and Human Behavior. Free Press. Keller, K. L. (2013). Strategic Brand Management. Pearson Education India. Statista. (2024). Indian Consumer Digital Adoption Trends. Retrieved from www.statista.com