Consumer Behaviour

CONSUMER CONSUMER BEHAVIOURBEHAVIOUR

By By

Bhasker AssoldekarBhasker Assoldekar

M.Sc. (Tech.), PGDM(IIM-A)M.Sc. (Tech.), PGDM(IIM-A)

EVALUATION SYSTEM FOR CONSUMER BEHAVIOUR

20 MARKS : CLASS PARTICIPATION

20 MARKS : CLASS TEST30 MARKS : PROJECT30 MARKS : THEORY PAPER

Ref. Book: “CONSUMER BEHAVIOR” By: SCHIFFMAN & KANUK

(Indian Publishers: Prentice Hall of India Pvt. Ltd. New Delhi)

All lectures will be by way of PPT Presentation.

There will be 10 Lectures (of 3 hrs. duration each ) during the 10 days from Monday, 2Oth Aug. to Thursday, 30th Aug. 2007.Project Presentations (30 Marks) and Theory Paper (30 Marks) to be held for one day each in the third week(17th/18th) of SEPT.07

11 CONSUMER BEHAVIOR-ITS ORIGINSCONSUMER BEHAVIOR-ITS ORIGINS

22 CONSUMER RESEARCHCONSUMER RESEARCH

33 MARKET SEGMENTATIONMARKET SEGMENTATION

44 CONSUMER MOTIVATIONCONSUMER MOTIVATION

55 CONSUMER PERCEPTIONCONSUMER PERCEPTION

66 CONSUMER LEARNINGCONSUMER LEARNING

77 CONSUMER ATTITUDE FORMATION AND CONSUMER ATTITUDE FORMATION AND CHANGECHANGE

88 REFERENCE GROUPS SOCIAL CLASS & REFERENCE GROUPS SOCIAL CLASS & FAMILY INFLUENCESFAMILY INFLUENCES

99 COMMUNICATION AND CONSUMER COMMUNICATION AND CONSUMER BEHAVIOURBEHAVIOUR

1010 CONSUMER DECISION MAKING AND CONSUMER DECISION MAKING AND BEYONDBEYOND

CHAPTER ONECHAPTER ONE

CONSUMER BEHAVIOR

ITS ORIGINSITS ORIGINS AND STRATEGIC AND STRATEGIC APPLICATIONSAPPLICATIONS

WHO SHOULD LEARN IT?WHO SHOULD LEARN IT?

WHY ARE WE LEARNING IT?WHY ARE WE LEARNING IT?

HOW TO USE THE KNOWLEDGE?HOW TO USE THE KNOWLEDGE?

CONSUMER BEHAVIOURCONSUMER BEHAVIOUR

THE BEHAVIOUR THAT CONSUMERS THE BEHAVIOUR THAT CONSUMERS DISPLAY DISPLAY

IN IN SEARCHING FOR , SEARCHING FOR ,

PURCHASING , USING , EVALUATING PURCHASING , USING , EVALUATING AND DISPOSINGAND DISPOSING

OF OF PRODUCTS AND SERVICES PRODUCTS AND SERVICES

THAT THEY EXPECT WILL SATISFY THAT THEY EXPECT WILL SATISFY THEIR NEEDS AND WANTSTHEIR NEEDS AND WANTS..

Intro to Consumer Intro to Consumer BehaviorBehavior

Consumer Consumer behavior--what is it?behavior--what is it?

ApplicationsApplications Consumer Behavior Consumer Behavior

and Strategyand Strategy Elements of strategyElements of strategy Consumer AnalysisConsumer Analysis

Consumer behavior Consumer behavior outcomesoutcomes

One DefinitionOne Definition

Consumer behaviorConsumer behavior: the : the study of individuals, groups, or study of individuals, groups, or organizations and the organizations and the processes they use to select, processes they use to select, secure, use, and dispose of secure, use, and dispose of products, services, products, services, experiences, or ideas to satisfy experiences, or ideas to satisfy needs and the impacts that needs and the impacts that these processes have on the these processes have on the consumer and society. consumer and society.

Marketing Strategy and Marketing Strategy and Consumer BehaviorConsumer Behavior

MARKETANALYSIS

MARKETINGSTRATEGY

MARKETSEGMENTATION

CONSUMER DECISION

PROCESSES

OUTCOMES

APPROACHESAPPROACHES THE PRODUCTION CONCEPTTHE PRODUCTION CONCEPT

THE PRODUCT CONCEPTTHE PRODUCT CONCEPT

THE SELLING CONCEPTTHE SELLING CONCEPT

THE MARKETING CONCEPTTHE MARKETING CONCEPT

THE PRODUCTION THE PRODUCTION CONCEPTCONCEPT

WORKS WELL WHEN CONSUMER IS INTERESTED WORKS WELL WHEN CONSUMER IS INTERESTED IN PRODUCT AVAILABILITY AT LOW PRICES.IN PRODUCT AVAILABILITY AT LOW PRICES.

IN 8 YEARS(FROM 1908 TO 1916) FORD SOLD 100 IN 8 YEARS(FROM 1908 TO 1916) FORD SOLD 100 TIMES MORE CARS.TIMES MORE CARS.

HIGHER THE PRODUCTION LOWER THE PRICES.HIGHER THE PRODUCTION LOWER THE PRICES. IN U.S.A THE LIFESTYLE CHANGED : BETTER IN U.S.A THE LIFESTYLE CHANGED : BETTER

HIGHWAYS ,EMERGENCE OF SUBURBS & HIGHWAYS ,EMERGENCE OF SUBURBS & SHOPPING MALLS.SHOPPING MALLS.

ITS IMPLICIT OBJECTIVE IS CHEAP PRODUCT, ITS IMPLICIT OBJECTIVE IS CHEAP PRODUCT, EFFICIENT PRODUCTION & INTENSIVE EFFICIENT PRODUCTION & INTENSIVE DISTRIBUTION.DISTRIBUTION.

THE PRODUCT CONCEPTTHE PRODUCT CONCEPT IT ASSUMES THAT CONSUMERS WILL BUY IT ASSUMES THAT CONSUMERS WILL BUY

THE PRODUCT THAT OFFERS THEM THE THE PRODUCT THAT OFFERS THEM THE HIGHEST QUALITY, THE BEST HIGHEST QUALITY, THE BEST PERFORMANCE AND THE MOST FEATURES.PERFORMANCE AND THE MOST FEATURES.

COMPANY STRIVES CONSTANTLY TO COMPANY STRIVES CONSTANTLY TO IMPROVE THE QUALITY OF THE PRODUCT IMPROVE THE QUALITY OF THE PRODUCT & ADD NEW FEATURES.& ADD NEW FEATURES.

PRODUCT ORIENTATION LEADS TO PRODUCT ORIENTATION LEADS TO MARKETING MYOPIA (eg. : U.S. RAILWAYS, MARKETING MYOPIA (eg. : U.S. RAILWAYS, Sale of FIAT/UNO cars)Sale of FIAT/UNO cars)

THE SELLING CONCEPTTHE SELLING CONCEPT ASSUMPTION IS, CONSUMER IS UNLIKELY ASSUMPTION IS, CONSUMER IS UNLIKELY

TO BUY THE PRODUCT UNLESS THEY ARE TO BUY THE PRODUCT UNLESS THEY ARE AGRESSIVELY PERSUADED TO DO SO AGRESSIVELY PERSUADED TO DO SO MOSTLY THROUGH HARD SELL APPROACH.MOSTLY THROUGH HARD SELL APPROACH.

FAILS TO CONSIDER CUSTOMER FAILS TO CONSIDER CUSTOMER SATISFACTION.SATISFACTION.

THEY ARE LIKELY TO COMMUNICATE IN THEY ARE LIKELY TO COMMUNICATE IN ANY DISSATISFACTION WITH THE ANY DISSATISFACTION WITH THE PRODUCT THROUGH NEGATIVE WORD OF PRODUCT THROUGH NEGATIVE WORD OF MOUTHMOUTH

( eg. : POLITICAL PARTIES SELLING THEIR ( eg. : POLITICAL PARTIES SELLING THEIR CANDIDATES AGGRESIVELY TO VOTERS).CANDIDATES AGGRESIVELY TO VOTERS).

THE MARKETING CONCEPTTHE MARKETING CONCEPT PRODUCTION OF ONLY THOSE GOODS PRODUCTION OF ONLY THOSE GOODS

THAT CONSUMERS WOULD BUY.THAT CONSUMERS WOULD BUY. CONSUMER’S NEEDS AND WANTS BECOME CONSUMER’S NEEDS AND WANTS BECOME

THE FIRM’S PRIMARY FOCUS.THE FIRM’S PRIMARY FOCUS. ALL CONSUMERS ARE NOT ALIKE AND ALL CONSUMERS ARE NOT ALIKE AND

HENCE THE IMPORTANCE OF SEGMENTING HENCE THE IMPORTANCE OF SEGMENTING THE MARKET.THE MARKET.

MARKETER SHOULD MAKE WHAT IT CAN MARKETER SHOULD MAKE WHAT IT CAN SELL INSTEAD OF TRYING TO SELL WHAT SELL INSTEAD OF TRYING TO SELL WHAT IT HAS MADE.IT HAS MADE.

IN SELLING CONCEPT, PROFITS ARE IN SELLING CONCEPT, PROFITS ARE THROUGH SALES VOLUME. IN MARKETING THROUGH SALES VOLUME. IN MARKETING CONCEPT, PROFITS ARE BASED ON CONCEPT, PROFITS ARE BASED ON CUSTOMER SATISFACTION.CUSTOMER SATISFACTION.

DEVELOPMENT OF THE DEVELOPMENT OF THE MARKETING CONCEPTMARKETING CONCEPT

IMPLEMENTATIONIMPLEMENTATION Marketers had to study consumers & their Marketers had to study consumers & their

behaviour in depth. They discovered that the behaviour in depth. They discovered that the needs and priorities of different consumer needs and priorities of different consumer segments differed dramatically.segments differed dramatically.

We all have same kind of biological needs - no We all have same kind of biological needs - no matter where we are born.matter where we are born.

We all ‘acquire’ needs after we are born, they are We all ‘acquire’ needs after we are born, they are shaped by environment, culture, education & shaped by environment, culture, education & experience.experience.

Interestingly, many people develop the same Interestingly, many people develop the same acquired needs.acquired needs.

SEGMENTATION,TARGETING & SEGMENTATION,TARGETING & POSITIONINGPOSITIONING

““Market Segmentation” is the process of dividing Market Segmentation” is the process of dividing the market into subsets of consumers with the market into subsets of consumers with common needs or characteristics.common needs or characteristics.

““Market Targeting” is the selection of one or Market Targeting” is the selection of one or more of the segments identified by the company more of the segments identified by the company to market the products/services.to market the products/services.

““Market Positioning” refers to development of a Market Positioning” refers to development of a distinct image for the product in the minds of the distinct image for the product in the minds of the consumer - an image distinctly different from consumer - an image distinctly different from competitor’s offer.competitor’s offer.

Communicate the benefits of the product rather Communicate the benefits of the product rather than product features. Effective Positioning than product features. Effective Positioning strategy must develop and communicate USP.strategy must develop and communicate USP.

THE MARKETING MIXTHE MARKETING MIX 4 P’s 4 P’s PRODUCTPRODUCT : :

Features,design,brands,packaging offered Features,design,brands,packaging offered along with post purchase benefits.along with post purchase benefits.

PRICEPRICE : The least price including discounts, : The least price including discounts, allowances and payment method.allowances and payment method.

PROMOTIONPROMOTION : Advertising, sales : Advertising, sales promotion, PR ,sales efforts to build promotion, PR ,sales efforts to build awareness.awareness.

PLACEPLACE : The distribution of the product : The distribution of the product through a store.through a store.

CUSTOMER VALUE , CUSTOMER VALUE , SATISFACTION & RETENTIONSATISFACTION & RETENTION

CUSTOMER VALUE : Ratio CUSTOMER VALUE : Ratio between the customer’s between the customer’s perceived benefits (economic, perceived benefits (economic, functional and psychological) functional and psychological) and resources (monetary, time, and resources (monetary, time, effort) used to obtain those effort) used to obtain those benefits.benefits.

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

IT IS THE INDIVIDUAL’S PERCEPTION OF IT IS THE INDIVIDUAL’S PERCEPTION OF THE PERFORMANCE OF THE PRODUCT IN THE PERFORMANCE OF THE PRODUCT IN RELATION TO HIS/HER EXPECTATIONS.RELATION TO HIS/HER EXPECTATIONS.

A CUSTOMER WHOSE EXPERIENCE FALLS A CUSTOMER WHOSE EXPERIENCE FALLS BELOW EXPECTATIONS WILL BE BELOW EXPECTATIONS WILL BE DISSATISFIEDDISSATISFIED

CUSTOMER RETENTIONCUSTOMER RETENTION

THE OBJECTIVE OF RETAINING THE THE OBJECTIVE OF RETAINING THE CUSTOMERS AND MAKE THEM STAY CUSTOMERS AND MAKE THEM STAY WITH IT RATHER THAN SWITCH TO WITH IT RATHER THAN SWITCH TO ANOTHER FIRM BY PROVIDING VALUE ANOTHER FIRM BY PROVIDING VALUE TO CUSTOMERS CONTINUOSLY AND TO CUSTOMERS CONTINUOSLY AND MORE EFFECTIVELY THAN THE MORE EFFECTIVELY THAN THE COMPETITORS.COMPETITORS.

IMPACT OF TECHNOLOGY ON IMPACT OF TECHNOLOGY ON MARKETING STRATEGYMARKETING STRATEGY

CONSUMERS HAVE MORE POWER THAN CONSUMERS HAVE MORE POWER THAN EVER BEFORE. EVER BEFORE.

CONSUMERS HAVE ACCESS TO MORE CONSUMERS HAVE ACCESS TO MORE INFORMATION. INFORMATION.

MARKETERS CAN & MUST OFFER MORE MARKETERS CAN & MUST OFFER MORE SERVICES & PRODUCTS. SERVICES & PRODUCTS.

EXCHANGE BETWEEN MARKETERS & EXCHANGE BETWEEN MARKETERS & CUSTOMERS IS INCREASINGLY CUSTOMERS IS INCREASINGLY INTERACTIVE.INTERACTIVE.

MARKETERS CAN GATHER MORE MARKETERS CAN GATHER MORE INFORMATION ABOUT CONSUMERS MORE INFORMATION ABOUT CONSUMERS MORE QUICKLY AND EASILY.QUICKLY AND EASILY.

MARKETING ETHICS &MARKETING ETHICS & SOCIAL RESPONSIBILITY SOCIAL RESPONSIBILITY

MARKETERS SHOULD FULFIL THE NEEDS OF THE MARKETERS SHOULD FULFIL THE NEEDS OF THE TARGET AUDIENCE IN WAYS THAT IMPROVE TARGET AUDIENCE IN WAYS THAT IMPROVE SOCIETY AS A WHOLE WHILE FULFILLING THE SOCIETY AS A WHOLE WHILE FULFILLING THE OBJECTIVES OF THE ORGANISATION.OBJECTIVES OF THE ORGANISATION.

Eg : MARKETERS SHOULDN’T ADVERTISE FOOD Eg : MARKETERS SHOULDN’T ADVERTISE FOOD TO YOUNG PEOPLE IN WAYS THAT ENCOURAGE TO YOUNG PEOPLE IN WAYS THAT ENCOURAGE OVER EATING OR USE PROFESSIONAL ATHLETES OVER EATING OR USE PROFESSIONAL ATHLETES IN LIQOUR OR TOBACCO ADS.IN LIQOUR OR TOBACCO ADS.

MOST COMPANIES BELIEVE AND RECOGNISE MOST COMPANIES BELIEVE AND RECOGNISE THAT MARKETING ETHICS & SOCIAL THAT MARKETING ETHICS & SOCIAL RESPONSIBILITY IMPROVE THEIR IMAGE AMONG RESPONSIBILITY IMPROVE THEIR IMAGE AMONG CONSUMERS, STOCK HOLDERS, FINANCIAL CONSUMERS, STOCK HOLDERS, FINANCIAL COMMUNITY & OTHER RELEVANT PUBLIC. COMMUNITY & OTHER RELEVANT PUBLIC.

CONSUMER DECISION CONSUMER DECISION MAKING MODELMAKING MODEL

THE PROCESS OF CONSUMER THE PROCESS OF CONSUMER DECISION MAKING CAN BE VIEWED DECISION MAKING CAN BE VIEWED AS 3 DISTINCT BUT INTER LOCKING AS 3 DISTINCT BUT INTER LOCKING STAGESSTAGES

1.THE 1.THE INPUTINPUT STAGE STAGE

2.THE 2.THE PROCESSPROCESS STAGE STAGE

3. THE 3. THE OUTPUTOUTPUT STAGE STAGE

PRODUCT PROMOTIONPRICECHANNELS OFDISTRIBUTION

FAMILY INFORMAL SOURCES

SOCIAL CLASS OTHER SOURCES

CULTURE & SUB CULTURE

NEED RECOGNITIONPREPURCHASE SEARCH

EVALUATION OF ALTERNATIVES

MOTIVATION PERCEPTION LEARNING

PERSONALITY ATTITUDES

EXPERIENCE

TRIAL PURCHASE REPEAT PURCHASE

POST PURCHASE EVALUATION

CHAPTER TWOCHAPTER TWO

CONSUMER RESEARCHCONSUMER RESEARCH

CONSUMER RESEARCHCONSUMER RESEARCH THE SATISFACTION OF CONSUMER THE SATISFACTION OF CONSUMER

NEEDS IS DELIVERED IN THE FORM OF NEEDS IS DELIVERED IN THE FORM OF THE MARKETING MIX WHICH CONSISTS THE MARKETING MIX WHICH CONSISTS OF THE 4 P’S –PRODUCT, PLACE, PRICE OF THE 4 P’S –PRODUCT, PLACE, PRICE AND PROMOTION.AND PROMOTION.

CONSUMER RESEARCH ENABLES THE CONSUMER RESEARCH ENABLES THE MARKETERS TO STUDY AND MARKETERS TO STUDY AND UNDERSTAND CONSUMER NEEDS AND UNDERSTAND CONSUMER NEEDS AND WANTS AND HOW THEY MAKE WANTS AND HOW THEY MAKE CONSUMPTION DECISIONS.CONSUMPTION DECISIONS.

TO SEARCH DEEP WITHIN THE CONSUMER TO SEARCH DEEP WITHIN THE CONSUMER PSYCHE, CONSUMER RESEARCHER TODAY USE 2 PSYCHE, CONSUMER RESEARCHER TODAY USE 2 DIFERENT TYPES OF RESEARCH METHODOLOGY DIFERENT TYPES OF RESEARCH METHODOLOGY TO STUDY CONSUMER BEHAVIOUR. TO STUDY CONSUMER BEHAVIOUR.

QUANTITATIVEQUANTITATIVE QUALITATIVEQUALITATIVE QUANTITATIVE RESEARCH FINDINGS ARE USED QUANTITATIVE RESEARCH FINDINGS ARE USED

TO PREDICT CONSUMER REACTIONS TO VARIOUS TO PREDICT CONSUMER REACTIONS TO VARIOUS PROMOTIONAL INPUTS. PROMOTIONAL INPUTS.

QUALITATIVE RESEARCH FINDINGS ARE USED TO QUALITATIVE RESEARCH FINDINGS ARE USED TO DISCOVER NEW IDEAS AND TO DEVELOP DISCOVER NEW IDEAS AND TO DEVELOP PROMOTIONAL STRATEGY.PROMOTIONAL STRATEGY.

THE COMBINED FINDINGS ENABLE MARKETERS THE COMBINED FINDINGS ENABLE MARKETERS TO DESIGN MORE MEANINGFUL AND EFFECTIVE TO DESIGN MORE MEANINGFUL AND EFFECTIVE MARKETING STRATEGIES.MARKETING STRATEGIES.

CONSUMER RESEARCH CONSUMER RESEARCH PROCESSPROCESS

DEFINING OBJECTIVES.DEFINING OBJECTIVES. COLLECT & EVALUATE SECONDARY COLLECT & EVALUATE SECONDARY

DATA.DATA. DESIGNING PRIMARY RESEARCH.DESIGNING PRIMARY RESEARCH. DATA ANALYSIS.DATA ANALYSIS. PREPARING A REPORT ON THE PREPARING A REPORT ON THE

FINDINGS.FINDINGS.

DEVELOP OBJECTIVES

COLLECT SECONDARY

DATADESIGNQUALITATIVE

RESEARCH

CONDUCT RESEARCH

ANALYSE DATA

PREPARE REPORT

DESIGNQUANTITATIVE

RESEARCH

EXPLORATORY STUDY

COLLECT PRIMARY

DATA

ANALYSE DATA

PREPARE REPORT

SAMPLING & DATA SAMPLING & DATA COLLECTIONCOLLECTION

SINCE IT IS ALMOST ALWAYS IMPOSSIBLE TO SINCE IT IS ALMOST ALWAYS IMPOSSIBLE TO OBTAIN INFORMATION FROM EVERY MEMBER OF OBTAIN INFORMATION FROM EVERY MEMBER OF THE POPULATION/ UNIVERSE BEING STUDIED - THE POPULATION/ UNIVERSE BEING STUDIED - RESEARCHERS USE SAMPLES.RESEARCHERS USE SAMPLES.

A SAMPLE IS A SUBSET OF THE POPULATION THAT A SAMPLE IS A SUBSET OF THE POPULATION THAT IS USED TO ESTIMATE THE CHARACTERISTICS OF IS USED TO ESTIMATE THE CHARACTERISTICS OF THE ENTIRE POPULATION.THE SAMPLE THE ENTIRE POPULATION.THE SAMPLE THEREFORE MUST BE REPRESENTATIVE OF THE THEREFORE MUST BE REPRESENTATIVE OF THE UNIVERSE UNDER STUDY.UNIVERSE UNDER STUDY.

DATA ANALYSISDATA ANALYSIS

IN QUALITATIVE RESEARCH IN QUALITATIVE RESEARCH MODERATOR OR TEST MODERATOR OR TEST ADMINISTRATOR ANALYSES THE ADMINISTRATOR ANALYSES THE RESPONSES RECEIVED.RESPONSES RECEIVED.

IN QUANTITATIVE RESEARCH THE IN QUANTITATIVE RESEARCH THE RESEARCHER SUPERVISES THE RESEARCHER SUPERVISES THE ANALYSIS.ANALYSIS.

QUANTITATIVE RESEARCH QUANTITATIVE RESEARCH INSTRUMENTINSTRUMENT

FOR QUANTITATIVE RESEARCH THE FOR QUANTITATIVE RESEARCH THE PRIMARY DATA COLLECTION INSTRUMENT IS PRIMARY DATA COLLECTION INSTRUMENT IS THE QUESTIONNAIRE. IT CAN BE DISGUISED THE QUESTIONNAIRE. IT CAN BE DISGUISED OR UN DISGUISED.OR UN DISGUISED.

QUESTIONS CAN BE OPEN OR CLOSED QUESTIONS CAN BE OPEN OR CLOSED ENDED.ENDED.

WORDING THE QUESTIONS REPRESENTS WORDING THE QUESTIONS REPRESENTS THE BIGGEST CHALLENGE IN THE BIGGEST CHALLENGE IN CONSTRUCTING QUESTIONNAIRE.CONSTRUCTING QUESTIONNAIRE.

QUALITATIVE RESEARCH QUALITATIVE RESEARCH INSTRUMENTINSTRUMENT

IN DEPTH INTERVIEW : RESPONDENTS ARE IN DEPTH INTERVIEW : RESPONDENTS ARE ENCOURAGED TO TALK FREELY ABOUT ENCOURAGED TO TALK FREELY ABOUT THEIR ACTIVITIES ATTITUDES AND THEIR ACTIVITIES ATTITUDES AND INTERESTS IN ADDITION TO THEIR INTERESTS IN ADDITION TO THEIR PRODUCT CATEGORY OR BRAND UNDER PRODUCT CATEGORY OR BRAND UNDER STUDYSTUDY

HIGHLY TRAINED INTERVIEWERS ARE HIGHLY TRAINED INTERVIEWERS ARE REQUIRED.REQUIRED.

TEST MARKETINGTEST MARKETING

PRIOR TO LAUNCHING A NEW PRIOR TO LAUNCHING A NEW PRODUCT ELEMENTS SUCH AS PRODUCT ELEMENTS SUCH AS PRICE , PACKAGE , PROMOTION ARE PRICE , PACKAGE , PROMOTION ARE MANIPULATED IN A CONTROLLED MANIPULATED IN A CONTROLLED SETTING IN ORDER TO PREDICT SETTING IN ORDER TO PREDICT SALES OR GAUGE THE POSSIBLE SALES OR GAUGE THE POSSIBLE RESPONSES TO THE PRODUCT.RESPONSES TO THE PRODUCT.

SURVEYSSURVEYS

PERSONAL INTERVIEW (HOME OR PERSONAL INTERVIEW (HOME OR RETAIL SHOPPING – MALL RETAIL SHOPPING – MALL INTERCEPTS)INTERCEPTS)

TELEPHONE SURVEYSTELEPHONE SURVEYS MAIL SURVEYSMAIL SURVEYS ONLINE SURVEYSONLINE SURVEYS

ETHICS IN CONSUMER ETHICS IN CONSUMER RESEARCHRESEARCH

CONSUMER REASEARCHERS MUST ENSURE THAT CONSUMER REASEARCHERS MUST ENSURE THAT STUDIES ARE OBJECTIVE AND FREE OF BIAS.STUDIES ARE OBJECTIVE AND FREE OF BIAS.

SOMETIMES CERTAIN STUDIES ARE SOMETIMES CERTAIN STUDIES ARE COMMISIONED BY ORGANISATIONS SEEKING TO COMMISIONED BY ORGANISATIONS SEEKING TO JUSTIFY A PARTICULAR POSITION.JUSTIFY A PARTICULAR POSITION.

AT THE START OF ALL SURVEYS INTERVIEWERS AT THE START OF ALL SURVEYS INTERVIEWERS MUST CLEARLY IDENTIFY THEMSELVES AND THE MUST CLEARLY IDENTIFY THEMSELVES AND THE COMPANY FOR WHICH THEY ARE WORKING.COMPANY FOR WHICH THEY ARE WORKING.

THE PRIVACY OF THE RESPONDENTS MUST BE THE PRIVACY OF THE RESPONDENTS MUST BE PROTECTED AND GUARANTEEDPROTECTED AND GUARANTEED

CHAPTER THREECHAPTER THREE

MARKET SEGMENTATIONMARKET SEGMENTATION

WHAT IS MARKET WHAT IS MARKET SEGMENTATIONSEGMENTATION

DEFINED AS THE PROCESS OF DEFINED AS THE PROCESS OF DIVIDING A MARKET INTO DISTINCT DIVIDING A MARKET INTO DISTINCT SUBSETS OF CONSUMERS WITH SUBSETS OF CONSUMERS WITH COMMON NEEDS OR COMMON NEEDS OR CHARACTERISTICS AND SELECTING CHARACTERISTICS AND SELECTING ONE OR MORE SEGMENTS TO ONE OR MORE SEGMENTS TO TARGET WITH A DISTINCT TARGET WITH A DISTINCT MARKETING MIXMARKETING MIX

IF ALL CONSUMERS WERE ALIKE AND IF IF ALL CONSUMERS WERE ALIKE AND IF THEYTHEY ALL HAD THE SAME NEEDS, WANTS ALL HAD THE SAME NEEDS, WANTS AND DESIRES AND THE SAME AND DESIRES AND THE SAME BACKGROUND, EDUCATION AND BACKGROUND, EDUCATION AND EXPERIENCE THEN MASS MARKETING WILL EXPERIENCE THEN MASS MARKETING WILL BE A LOGICAL STRATEGY.BE A LOGICAL STRATEGY.

THE STRATEGY OF SEGMENTATION THE STRATEGY OF SEGMENTATION ALLOWS PRODUCERS TO AVOID HEAD ON ALLOWS PRODUCERS TO AVOID HEAD ON COMPETETION IN THEIR MARKET PLACE BY COMPETETION IN THEIR MARKET PLACE BY DIFFERENTIATING THEIR OFFERINGS NOT DIFFERENTIATING THEIR OFFERINGS NOT ONLY ON THE BASIS OF PRICE BUT ALSO ONLY ON THE BASIS OF PRICE BUT ALSO THROUGH STYLING, PACKAGING, THROUGH STYLING, PACKAGING, PROMOTIONAL APPEAL, METHOD OF PROMOTIONAL APPEAL, METHOD OF DISTRIBUTION AND SUPERIOR SERVICE.DISTRIBUTION AND SUPERIOR SERVICE.

AFTER SEGMENTATION THE AFTER SEGMENTATION THE MARKETER MUST SELECT ONE OR MARKETER MUST SELECT ONE OR

MORE SEGMENTS TO TARGET. MORE SEGMENTS TO TARGET. MARKETING MIX SUCH AS MARKETING MIX SUCH AS

PRODUCT, PRICE, PLACEMENT PRODUCT, PRICE, PLACEMENT SHOULD BE SPECIFIED AND THEN SHOULD BE SPECIFIED AND THEN

THE PRODUCT SHOULD BE THE PRODUCT SHOULD BE POSITIONED, SO THAT POSITIONED, SO THAT

CONSUMERS IN EACH TARGET CONSUMERS IN EACH TARGET PERCIEVE, THAT, IT IS SATISFYING PERCIEVE, THAT, IT IS SATISFYING THEIR NEEDS BETTER THAN OTHER THEIR NEEDS BETTER THAN OTHER

COMPETETIVE OFFERINGS.COMPETETIVE OFFERINGS.

HOW IT OPERATESHOW IT OPERATES

SEGMENTATION STUDIES ARE SEGMENTATION STUDIES ARE DESIGNED TO DISCOVER THE NEEDS DESIGNED TO DISCOVER THE NEEDS AND WANTS OF SPECIFIC GROUP OF AND WANTS OF SPECIFIC GROUP OF CUSTOMERS SO THAT SPECIALISED CUSTOMERS SO THAT SPECIALISED GOODS AND SERVICES CAN BE GOODS AND SERVICES CAN BE DEVELOPED AND PROMOTED TO DEVELOPED AND PROMOTED TO SATISFY EACH GROUP’S NEEDS.SATISFY EACH GROUP’S NEEDS.

BASIS FOR SEGMENTATIONBASIS FOR SEGMENTATION

GEOGRAPHIC GEOGRAPHIC DEMOGRAPHIC DEMOGRAPHIC PSYCHOLOGICALPSYCHOLOGICAL PSYCHOGRAPHICPSYCHOGRAPHIC SOCIOCULTURAL SOCIOCULTURAL USE RELATEDUSE RELATED USAGE SITUATIONUSAGE SITUATION BENEFITBENEFIT HYBRIDHYBRID

IN GEOGRAPHIC SEGMENTATION THE IN GEOGRAPHIC SEGMENTATION THE MARKET IS DIVIDED BY LOCATION. THE MARKET IS DIVIDED BY LOCATION. THE THEORY BEHIND THIS STRATEGY IS THAT, THEORY BEHIND THIS STRATEGY IS THAT, PEOPLE WHO LIVE IN THIS SAME AREA PEOPLE WHO LIVE IN THIS SAME AREA SHARE SOME SIMILAR NEEDS AND WANTS SHARE SOME SIMILAR NEEDS AND WANTS AND THAT THIS NEEDS AND WANTS AND THAT THIS NEEDS AND WANTS DIFFER FROM THOSE OF PEOPE LIVING IN DIFFER FROM THOSE OF PEOPE LIVING IN OTHER AREAS.OTHER AREAS.

ININ DEMOGRAPHIC SEGMENTATION THE DEMOGRAPHIC SEGMENTATION THE CHARACTERISTIC SUCH AS AGE, SEX, CHARACTERISTIC SUCH AS AGE, SEX, MARITAL STATUS, INCOME, OCCUPATION MARITAL STATUS, INCOME, OCCUPATION AND EDUCATION ARE MOST OFTEN USED AND EDUCATION ARE MOST OFTEN USED AS THE BASIS FOR MARKET AS THE BASIS FOR MARKET SEGMENTATION. SEGMENTATION.

PSYCHOLOGICAL CHARACTERISTICS REFER PSYCHOLOGICAL CHARACTERISTICS REFER TO THE INNER OR INTRINSIC QUALITIES OF TO THE INNER OR INTRINSIC QUALITIES OF THE INDIVIDUAL CONSUMER.THEY MAY BE THE INDIVIDUAL CONSUMER.THEY MAY BE SEGMENTED IN TERMS OF THEIR SEGMENTED IN TERMS OF THEIR MOTIVATIONS, PERSONALITY, MOTIVATIONS, PERSONALITY, PERCEPTIONS, LEARNING AND ATTITUDES. PERCEPTIONS, LEARNING AND ATTITUDES.

PSYCHOGRAPHICPSYCHOGRAPHIC

THIS PROFILE OF A CONSUMER SEGMENT THIS PROFILE OF A CONSUMER SEGMENT MEASURES ACTIVITIES, INTERESTS AND MEASURES ACTIVITIES, INTERESTS AND OPINIONS OPINIONS

SOCIOCULTURAL VARIABLES SOCIOCULTURAL VARIABLES CONSUMER MARKETS CAN ALSO BE SUB DIVIDED CONSUMER MARKETS CAN ALSO BE SUB DIVIDED

INTO SEGMENTS ON THE BASIS OF SOCIOLOGICAL INTO SEGMENTS ON THE BASIS OF SOCIOLOGICAL AND CULTURAL VARIABLES SUCH AS STAGE IN AND CULTURAL VARIABLES SUCH AS STAGE IN FAMILY LIFE CYCLE, SOCIAL CLASS, CORE FAMILY LIFE CYCLE, SOCIAL CLASS, CORE CULTURAL VALUES, SUB CULTURAL CULTURAL VALUES, SUB CULTURAL MEMBERSHIPS AND CROSS CULTURAL MEMBERSHIPS AND CROSS CULTURAL AFFILIATIONS.AFFILIATIONS.

USE RELATEDUSE RELATED THIS FORM OF SEGMENTATION CATEGORIZES THIS FORM OF SEGMENTATION CATEGORIZES

CONSUMERS IN TERMS OF PRODUT SERVICE OR CONSUMERS IN TERMS OF PRODUT SERVICE OR BRAND USAGE CHARACTERISTICS SUCH AS LEVEL BRAND USAGE CHARACTERISTICS SUCH AS LEVEL OF USAGE, AWARENESS AND DEGREE OF BRAND OF USAGE, AWARENESS AND DEGREE OF BRAND LOYALTY.LOYALTY.

BENEFITBENEFIT

MARKETERS IDENTIFY THE ONE MOST MARKETERS IDENTIFY THE ONE MOST IMPORTANT BENEFIT OF THE PRODUCT IMPORTANT BENEFIT OF THE PRODUCT WHICH WILL BE MOST MEANINGFUL TO WHICH WILL BE MOST MEANINGFUL TO CONSUMERS AND SEGMENT CONSUMERS AND SEGMENT ACCORDINGLY. ACCORDINGLY.

HYBRIDHYBRID

MARKETERS COMMONLY SEGMENT MARKETERS COMMONLY SEGMENT MARKETS BY COMBINING SEVERAL MARKETS BY COMBINING SEVERAL SEGMENTATION VARIABLES RATHER THAN SEGMENTATION VARIABLES RATHER THAN RELYING ON A SINGLE SEGMENTATION RELYING ON A SINGLE SEGMENTATION BASE.BASE.

CRITERIA FOR EFFECTIVE CRITERIA FOR EFFECTIVE TARGETINGTARGETING

IDENTIFICATIONIDENTIFICATION SUFFICIENCYSUFFICIENCY STABILITYSTABILITY ACCESSIBILITYACCESSIBILITY

IMPLEMENTING IMPLEMENTING SEGMENTATION STRATEGIESSEGMENTATION STRATEGIES

CONCENTRATED V/S DIFFERENTIATED CONCENTRATED V/S DIFFERENTIATED MARKETING.MARKETING.

TARGETING SEVERAL SEGMENTS USING TARGETING SEVERAL SEGMENTS USING INDIVIDUAL MARKETING MIXES IS CALLED INDIVIDUAL MARKETING MIXES IS CALLED DIFFERENTIATED MARKETING DIFFERENTIATED MARKETING MIXES.TARGETING JUST ONE SEGMENT WITH A MIXES.TARGETING JUST ONE SEGMENT WITH A UNIQUE MARKETING MIX IS CALLED UNIQUE MARKETING MIX IS CALLED CONCENTRATED MARKETING.CONCENTRATED MARKETING.

COUNTER SEGMENTATIONCOUNTER SEGMENTATION WHEN TWO OR MORE SEGMENTS ARE RE WHEN TWO OR MORE SEGMENTS ARE RE

COMBINED INTO A LARGER SINGLE SEGMENT COMBINED INTO A LARGER SINGLE SEGMENT WHICH COULD BE TARGETED WITH AN WHICH COULD BE TARGETED WITH AN INDIVIDUALLY TAILORED PRODUCT OR INDIVIDUALLY TAILORED PRODUCT OR PROMOTIONAL CAMPAIGN IS CALLED A PROMOTIONAL CAMPAIGN IS CALLED A COUNTER SEGMENTATION STRATEGY.COUNTER SEGMENTATION STRATEGY.

CHAPTER FOURCHAPTER FOUR

CONSUMER MOTIVATIONCONSUMER MOTIVATION

WHAT IS IT ?????WHAT IS IT ????? HUMAN/CONSUMER NEEDS ARE THE BASIS OF HUMAN/CONSUMER NEEDS ARE THE BASIS OF

ALL MODERN MARKETING.ALL MODERN MARKETING. NEEDS ARE THE ESSENCE OF THE MARKETING NEEDS ARE THE ESSENCE OF THE MARKETING

CONCEPT.CONCEPT. THE KEY TO A COMPANY’S SURVIVAL, THE KEY TO A COMPANY’S SURVIVAL,

PROFITABILITY AND GROWTH IN A HIGHLY PROFITABILITY AND GROWTH IN A HIGHLY COMPETETIVE MARKET PLACE IS ITS ABILITY TO COMPETETIVE MARKET PLACE IS ITS ABILITY TO IDENTIFY AND SATISFY UNFULFILLED CONSUMER IDENTIFY AND SATISFY UNFULFILLED CONSUMER NEEDS BETTER AND SOONER THAN THE NEEDS BETTER AND SOONER THAN THE COMPETITION.COMPETITION.

MOTIVATION IS THE DRIVING FORCE WITHIN MOTIVATION IS THE DRIVING FORCE WITHIN INDIVIDUALS THAT IMPELS THEM TO ACTION.INDIVIDUALS THAT IMPELS THEM TO ACTION.

MOTIVATION AS A MOTIVATION AS A PSYCHOLOGICAL FORCEPSYCHOLOGICAL FORCE

NEEDSNEEDS

GOALSGOALS

POSITIVE & NEGATIVE MOTIVATIONPOSITIVE & NEGATIVE MOTIVATION

NEEDS NEEDS EVERY INDIVIDUAL HAS NEEDS SOME ARE EVERY INDIVIDUAL HAS NEEDS SOME ARE

“INNATE”, OTHERS ARE “ACQUIRED”. “INNATE”, OTHERS ARE “ACQUIRED”. INNATE NEEDS ARE PHYSIOLOGICAL INNATE NEEDS ARE PHYSIOLOGICAL

(BIOGENIC). THEY INCLUDE FOOD, WATER, (BIOGENIC). THEY INCLUDE FOOD, WATER, AIR, SHELTER, CLOTHING AND SEX.AIR, SHELTER, CLOTHING AND SEX.

ACQUIRED NEEDS ARE NEEDS THAT WE ACQUIRED NEEDS ARE NEEDS THAT WE LEARN IN RESPONSE TO OUR CULTURE OR LEARN IN RESPONSE TO OUR CULTURE OR ENVIRONMENT.THEY MAY INCLUDE NEEDS ENVIRONMENT.THEY MAY INCLUDE NEEDS FOR SELF ESTEEM , PRESTIGE, AFFECTION, FOR SELF ESTEEM , PRESTIGE, AFFECTION, POWER AND LEARNING.THEY ARE POWER AND LEARNING.THEY ARE PSYCHOGENIC.PSYCHOGENIC.

GOALSGOALS

THEY ARE SOUGHT AFTER RESULTS THEY ARE SOUGHT AFTER RESULTS OF MOTIVATED BEHAVIOUR.ALL OF MOTIVATED BEHAVIOUR.ALL BEHAVIOUR IS GOAL ORIENTED. BEHAVIOUR IS GOAL ORIENTED.

MOST GOALS ARE GENERIC. MOST GOALS ARE GENERIC. HOWEVER THEY ARE AT TIMES HOWEVER THEY ARE AT TIMES PRODUCT SPECIFIC GOALS.PRODUCT SPECIFIC GOALS.

MARKETERS ARE CONCERNED WITH MARKETERS ARE CONCERNED WITH PRODUCT SPECIFIC GOALS.PRODUCT SPECIFIC GOALS.

POSITIVE & NEGATIVE POSITIVE & NEGATIVE MOTIVATIONMOTIVATION

MOTIVATION CAN BE POSITIVE OR MOTIVATION CAN BE POSITIVE OR NEGATIVE IN DIRECTION.WE MAY FEEL A NEGATIVE IN DIRECTION.WE MAY FEEL A DRIVING FORCE TOWARDS A OBJECT OR DRIVING FORCE TOWARDS A OBJECT OR CONDITION OR A DRIVING FORCE AWAY CONDITION OR A DRIVING FORCE AWAY FROM SOME OBJECT OR CONDITION. FROM SOME OBJECT OR CONDITION.

Eg : A PERSON MAY BE IMPELLED Eg : A PERSON MAY BE IMPELLED TOWARDS A RESTAURANT TO FULFILL A TOWARDS A RESTAURANT TO FULFILL A HUNGER NEED AND AWAY FROM A HUNGER NEED AND AWAY FROM A MOTORBIKE RIDE ON A RAINY DAY FROM MOTORBIKE RIDE ON A RAINY DAY FROM SAFETY NEED.SAFETY NEED.

UNFULFILLED NEEDS

TENSION DRIVE

PREVIOUS LEARNING

TENSION REDUCTION

COGNITIVE PROCESS

BEHAVIOUR GOAL

DYNAMICS OF MOTIVATIONDYNAMICS OF MOTIVATION

NEEDS ARE NEVER FULLY SATISFIED.NEEDS ARE NEVER FULLY SATISFIED. NEW NEEDS EMERGE.NEW NEEDS EMERGE. INFLUENCE OF SUCCESS & FAILURE INFLUENCE OF SUCCESS & FAILURE

ON GOALS.ON GOALS. MULTIPLICITY OF NEEDS.MULTIPLICITY OF NEEDS.

MULTIPLICITY OF NEEDSMULTIPLICITY OF NEEDS

A CONSUMER BEHAVIOUR OFTEN A CONSUMER BEHAVIOUR OFTEN FULFILLS MORE THAN ONE NEED FULFILLS MORE THAN ONE NEED INFACT IT IS LIKELY THAT SP. GOALS INFACT IT IS LIKELY THAT SP. GOALS ARE SELECTED BECAUSE THEY ARE SELECTED BECAUSE THEY FULFILL SP. NEEDS.FULFILL SP. NEEDS.

Eg : OUR CLOTHING FULFILLS A WIDE Eg : OUR CLOTHING FULFILLS A WIDE RANGE OF PERSONAL AND SOCIAL RANGE OF PERSONAL AND SOCIAL NEEDS AS ALSO EGO NEEDS. NEEDS AS ALSO EGO NEEDS.

TYPES & SYSTEM OF NEEDSTYPES & SYSTEM OF NEEDS

HIEARCHY OF NEEDSHIEARCHY OF NEEDS EVALUATION OF NEED HIEARCHY & EVALUATION OF NEED HIEARCHY &

MARKETING APPLICATIONMARKETING APPLICATION TRIO OF NEEDSTRIO OF NEEDS

HIERARCHY OF NEEDSHIERARCHY OF NEEDS PHYSIOLOGICAL NEEDS.PHYSIOLOGICAL NEEDS. (FOOD, WATER, SHELTER ,AIR, SEX)(FOOD, WATER, SHELTER ,AIR, SEX) SAFETY AND SECURITY.SAFETY AND SECURITY. (PROTECTION, ORDER, STABILITY, HEALTH, (PROTECTION, ORDER, STABILITY, HEALTH,

EDUCATION)EDUCATION) SOCIAL NEEDS.SOCIAL NEEDS. ( AFFECTION, FRIENDSHIP, ACCEPTANCE , ( AFFECTION, FRIENDSHIP, ACCEPTANCE ,

BELONGING)BELONGING) EGOISTIC NEEDS.EGOISTIC NEEDS. (PRESTIGE, STATUS , SELF ESTEEM , (PRESTIGE, STATUS , SELF ESTEEM ,

REPUTATION, RECOGNITION)REPUTATION, RECOGNITION) SELF ACTUALIZATION NEEDS.SELF ACTUALIZATION NEEDS. ( SELF FULFILLMENT).( SELF FULFILLMENT).

MASLOW’S HIERARCHY OF MASLOW’S HIERARCHY OF NEEDSNEEDS

SELFACT.

EGO NEEDS

SOCIAL NEEDS

SAFETY AND SECURITY NEEDS

PHYSIOLOGICAL NEEDS

EVALUATION OF NEED EVALUATION OF NEED HIERARCHY & MARKETING HIERARCHY & MARKETING

APPLICATIONAPPLICATION

HIGHER ORDER NEEDS BECOME THE HIGHER ORDER NEEDS BECOME THE DRIVING FORCE BEHIND HUMAN DRIVING FORCE BEHIND HUMAN BEHAVIOUR AS LOWER LEVEL NEEDS BEHAVIOUR AS LOWER LEVEL NEEDS ARE SATISFIED.ARE SATISFIED.

IN EFFECT IT IS DISSATISFACTION IN EFFECT IT IS DISSATISFACTION AND NOT SATISFACTION THAT AND NOT SATISFACTION THAT MOTIVATES BEHAVIOUR.MOTIVATES BEHAVIOUR.

TRIO OF NEEDSTRIO OF NEEDS

POWERPOWER

AFFILIATIONAFFILIATION

ACHIEVEMENTACHIEVEMENT

MEASUREMENT OF MEASUREMENT OF MOTIVESMOTIVES

MOTIVATIONAL RESEARCHMOTIVATIONAL RESEARCH INCLUDES ALL TYPE OF RESEARCH INTO HUMAN INCLUDES ALL TYPE OF RESEARCH INTO HUMAN

MOTIVES AND IS USED TO REFER TO MOTIVES AND IS USED TO REFER TO QUALITATIVE RESEARCH DESIGNED TO UNCOVER QUALITATIVE RESEARCH DESIGNED TO UNCOVER THE CONSUMER’S SUBCONCIOUS OR HIDDEN THE CONSUMER’S SUBCONCIOUS OR HIDDEN MOTIVATIONSMOTIVATIONS

EVALUATION OF MOTIVATIONAL EVALUATION OF MOTIVATIONAL RESEARCH RESEARCH

MOTIVATIONAL RESEARCH IS STILL REGARDED MOTIVATIONAL RESEARCH IS STILL REGARDED AS AN IMPORTANT TOOL WHICH HELPS TO GAIN AS AN IMPORTANT TOOL WHICH HELPS TO GAIN DEEPER INSIGHTS INTO THE WHY’S OF DEEPER INSIGHTS INTO THE WHY’S OF CONSUMER BEHAVIOUR THAN CONVENTIONAL CONSUMER BEHAVIOUR THAN CONVENTIONAL MARKETING RESEARCH TECHNIQUES CAN YIELD.MARKETING RESEARCH TECHNIQUES CAN YIELD.

ETHICS IN CONSUMER ETHICS IN CONSUMER MOTIVATIONMOTIVATION

WHILE SOME CRITICS ACCUSE MARKETERS OF WHILE SOME CRITICS ACCUSE MARKETERS OF CREATING NEEDS AND OF MANIPULATING CREATING NEEDS AND OF MANIPULATING CONSUMERS INTO BUYING GOODS THEY DON’T CONSUMERS INTO BUYING GOODS THEY DON’T NEED,MOST PEOPLE AGREE THAT MARKETERS NEED,MOST PEOPLE AGREE THAT MARKETERS CAN’T CREATE NEEDS HOWEVER THEY CAN CAN’T CREATE NEEDS HOWEVER THEY CAN AWAKEN LATENT NEEDS AND ENCOURAGE AWAKEN LATENT NEEDS AND ENCOURAGE CONSUMERS TO ENGAGE IN UNWHOLESOME CONSUMERS TO ENGAGE IN UNWHOLESOME BEHAVIOURS.BEHAVIOURS.

Eg : THE SOCIAL ASPECTS OF SMOKING DRINKING Eg : THE SOCIAL ASPECTS OF SMOKING DRINKING AND GAMBLING ARE OFTEN PROMOTED AS AND GAMBLING ARE OFTEN PROMOTED AS ENTICING AND SOCIALLY ACCEPTABLE.ENTICING AND SOCIALLY ACCEPTABLE.

CHAPTER FIVECHAPTER FIVE

CONSUMER PERCEPTIONCONSUMER PERCEPTION

WHAT IS IT?????WHAT IS IT????? DEFINED AS THE PROCESS BY WHICH AN DEFINED AS THE PROCESS BY WHICH AN

INDIVIDUAL SELECTS , ORGANIZES AND INDIVIDUAL SELECTS , ORGANIZES AND INTERPRETS STIMULI INTO A MEANINGFUL AND INTERPRETS STIMULI INTO A MEANINGFUL AND COHERENT PICTURE OF THE WORLD.COHERENT PICTURE OF THE WORLD.

IT CAN BE DESCRIBED AS HOW WE SEE THE IT CAN BE DESCRIBED AS HOW WE SEE THE WORLD AROUND US.WORLD AROUND US.

TWO INDIVIDUALS EXPOSED TO THE SAME TWO INDIVIDUALS EXPOSED TO THE SAME STIMULI UNDER THE SAME CONDITIONS MAY STIMULI UNDER THE SAME CONDITIONS MAY RECOGNISE, SELECT, ORGANISE AND INTERPRET RECOGNISE, SELECT, ORGANISE AND INTERPRET THIS STIMULI DIFFERENTLY BASED ON THEIR THIS STIMULI DIFFERENTLY BASED ON THEIR OWN NEEDS,VALUES AND EXPECTATIONS.OWN NEEDS,VALUES AND EXPECTATIONS.

ELEMENTS OF PERCEPTIONELEMENTS OF PERCEPTION

SENSATION.SENSATION. THE ABSOLUTE THRESHOLD. THE ABSOLUTE THRESHOLD. THE DIFFERENTIAL THRESHOLD.THE DIFFERENTIAL THRESHOLD. SUBLIMINAL PERCEPTION.SUBLIMINAL PERCEPTION.

SENSATIONSENSATION IT IS THE IMMEDIATE AND DIRECT IT IS THE IMMEDIATE AND DIRECT

RESPONSE OF THE SENSORY ORGANS TO RESPONSE OF THE SENSORY ORGANS TO STIMULI.STIMULI.

““A STIMULUS” IS ANY UNIT OF INPUT TO A STIMULUS” IS ANY UNIT OF INPUT TO ANY OF THE SENSES. IT CAN INCLUDE ANY OF THE SENSES. IT CAN INCLUDE PRODUCTS PACKAGES BRAND NAMES ADS PRODUCTS PACKAGES BRAND NAMES ADS AND COMMERCIALS. AND COMMERCIALS.

““SENSORY RECEPTORS” ARE THE HUMAN SENSORY RECEPTORS” ARE THE HUMAN ORGANS( EYES, EARS, NOSE, MOUTH, ORGANS( EYES, EARS, NOSE, MOUTH, NOSE, SKIN) THAT RECEIVE SENSORY NOSE, SKIN) THAT RECEIVE SENSORY INPUTS.INPUTS.

THE ABSOLUTE THRESHOLDTHE ABSOLUTE THRESHOLD

THE POINT AT WHICH A PERSON CAN THE POINT AT WHICH A PERSON CAN DETECT A DIFFERENCE BETWEEN DETECT A DIFFERENCE BETWEEN SOMETHING AND NOTHING IS THAT SOMETHING AND NOTHING IS THAT PERSON’S ABSOLUTE THRESHOLD PERSON’S ABSOLUTE THRESHOLD FOR THAT STIMULUS. FOR THAT STIMULUS.

AS OUR EXPOSURE TO THE AS OUR EXPOSURE TO THE STIMULUS INCREASES WE NOTICE IT STIMULUS INCREASES WE NOTICE IT LESS. LESS.

THE DIFFERENTIAL THE DIFFERENTIAL THRESHOLDTHRESHOLD

THE MINIMAL DIFFERENCE THAT CAN THE MINIMAL DIFFERENCE THAT CAN BE DETECTED BETWEEN TWO BE DETECTED BETWEEN TWO SIMILAR STIMULI IS CALLED THE SIMILAR STIMULI IS CALLED THE DIFFERENTIAL THRESHOLD OR THE DIFFERENTIAL THRESHOLD OR THE JUST NOTICEABLE DIFFERENCE. JUST NOTICEABLE DIFFERENCE.

SUBLIMINAL PERCEPTIONSUBLIMINAL PERCEPTION

STIMULI THAT ARE TOO WEAK OR STIMULI THAT ARE TOO WEAK OR TOO BRIEF TO CONSCIOUSLY SEEN TOO BRIEF TO CONSCIOUSLY SEEN OR HEARD MAY NEVER THE LESS BE OR HEARD MAY NEVER THE LESS BE STRONG ENOUGH TO BE PERCIEVED STRONG ENOUGH TO BE PERCIEVED BY ONE OR MORE RECEPTIVE CELLS.BY ONE OR MORE RECEPTIVE CELLS.

DYNAMICS OF PERCEPTIONDYNAMICS OF PERCEPTION

PERCEPTUAL SELECTIONPERCEPTUAL SELECTION

PERCEPTUAL ORGANIZATIONPERCEPTUAL ORGANIZATION

PERCEPTUAL INTERPRETATIONPERCEPTUAL INTERPRETATION

CONSUMER IMAGERYCONSUMER IMAGERY

PRODUCT POSITIONINGPRODUCT POSITIONING PRODUCT REPOSITIONINGPRODUCT REPOSITIONING PERCEIVED PRICEPERCEIVED PRICE PERCEIVED QUALITYPERCEIVED QUALITY PRICE V/S QUALITYPRICE V/S QUALITY RETAIL STORE IMAGERETAIL STORE IMAGE MANUFACTURERS IMAGEMANUFACTURERS IMAGE

PRODUCT POSITIONINGPRODUCT POSITIONING THE ESSENCE OF SUCCESSFUL THE ESSENCE OF SUCCESSFUL

MARKETING IS AN IMAGE THAT A MARKETING IS AN IMAGE THAT A PRODUCT HAS IN THE MINDS OF THE PRODUCT HAS IN THE MINDS OF THE CONSUMER THAT IS ITS POSITIONING.CONSUMER THAT IS ITS POSITIONING.

ITS IMPORTANT TO THE ULTIMATE ITS IMPORTANT TO THE ULTIMATE SUCCESS OF THE PRODUCT THAN ARE ITS SUCCESS OF THE PRODUCT THAN ARE ITS ACTUAL CHARACTERISTICS ALTHOUGH ACTUAL CHARACTERISTICS ALTHOUGH PRODUCTS THAT ARE PORRLY MADE WILL PRODUCTS THAT ARE PORRLY MADE WILL NOT SUCCED IN THE LONG RUN ON THE NOT SUCCED IN THE LONG RUN ON THE BASIS OF THE IMAGE ALONE.BASIS OF THE IMAGE ALONE.

MOST NEW PRODUCTS FAIL BECAUSE THE ARE PERCEIVED MOST NEW PRODUCTS FAIL BECAUSE THE ARE PERCEIVED AS “ME TOO” CATEGORY AND THAT THEY DONT OFFER ANY AS “ME TOO” CATEGORY AND THAT THEY DONT OFFER ANY SP. ADVANTAGES/BENEFITS OVER COMPETETIVE SP. ADVANTAGES/BENEFITS OVER COMPETETIVE PRODUCTS.PRODUCTS.

POSITIONING STRATEGY IS THE ESSENCE OF THE POSITIONING STRATEGY IS THE ESSENCE OF THE MARKETING MIX. IT COMPLIMENTS THE COMPANY’S MARKETING MIX. IT COMPLIMENTS THE COMPANY’S DEFINITION OF THE COMPETITION, ITS SEGMENTATION DEFINITION OF THE COMPETITION, ITS SEGMENTATION STRATEGY AND ITS SELECTION OF TARGET MARKETS. IT STRATEGY AND ITS SELECTION OF TARGET MARKETS. IT CONVEYS THE CONCEPT OF TE PRODUCT OR SERVICE AS CONVEYS THE CONCEPT OF TE PRODUCT OR SERVICE AS TO HOW IT FULFILLS THE CONSUMER NEED WHILE TO HOW IT FULFILLS THE CONSUMER NEED WHILE SIMULTANEOUSLY FEATURING THE BRAND AGAINST ITS SIMULTANEOUSLY FEATURING THE BRAND AGAINST ITS COMPETITION.COMPETITION.

UMBRELLA POSITIONING : THIS STRATEGY ENTAILS UMBRELLA POSITIONING : THIS STRATEGY ENTAILS

CREATING AN OVERALL IMAGE OF THE COMPANY AROUND CREATING AN OVERALL IMAGE OF THE COMPANY AROUND WHICH A LOT OF PRODUCTS CAN BE FEATURED WHICH A LOT OF PRODUCTS CAN BE FEATURED INDIVIDUALLYINDIVIDUALLY

FILLING POSITIONSFILLING POSITIONS

BECAUSE UNFULFILLED GAPS OR BECAUSE UNFULFILLED GAPS OR UNOWNED PERCEPTUAL POSITIONS UNOWNED PERCEPTUAL POSITIONS PRESENT OPPURTUNITIES FOR PRESENT OPPURTUNITIES FOR COMPETITORS SOPHISTICATED COMPETITORS SOPHISTICATED MARKETERS CREATE SEVERAL MARKETERS CREATE SEVERAL DISTINCT OFFERINGS OFTEN IN THE DISTINCT OFFERINGS OFTEN IN THE FORM OF DIFFERENT BRANDS TO FORM OF DIFFERENT BRANDS TO FILL SEVERAL IDENTIFIED NICHES FILL SEVERAL IDENTIFIED NICHES

PRODUCT REPOSITIONINGPRODUCT REPOSITIONING REGARDLESS OF HOW WELL POSITIONED A PRODUCT REGARDLESS OF HOW WELL POSITIONED A PRODUCT

APPEARS TO BE THE MARKETER MAY BE FORCED TO APPEARS TO BE THE MARKETER MAY BE FORCED TO REPOSITION IT IN RESPONSE TO MARKET EVENTS SUCH AS REPOSITION IT IN RESPONSE TO MARKET EVENTS SUCH AS A COMPETITOR CUTTING INTO TH EBRANDS MARKET SHARE A COMPETITOR CUTTING INTO TH EBRANDS MARKET SHARE OR TO MANY COMPETITORS STRESSING THE SAME OR TO MANY COMPETITORS STRESSING THE SAME ATTRIBUTE ATTRIBUTE

ANOTHER REASON IS TO SATISFY CHANGING CONSUMER ANOTHER REASON IS TO SATISFY CHANGING CONSUMER PREFERENCES. PREFERENCES.

PERCEPTUAL MAPPING HELPS MARKETERS TO DETERMINE PERCEPTUAL MAPPING HELPS MARKETERS TO DETERMINE JUST HOW THEIR PRODUCTS APPEAR TO CONSUMERS IN JUST HOW THEIR PRODUCTS APPEAR TO CONSUMERS IN RELATION TO COMPETETIVE BRANDS ON ONE OR MORE RELATION TO COMPETETIVE BRANDS ON ONE OR MORE ERELEVENT CHARACTERISTICS, IT HELPS THEM TO IDENTIFY ERELEVENT CHARACTERISTICS, IT HELPS THEM TO IDENTIFY GAPS IN WHICH CONSUMER NEEDS ARE NOT BEING GAPS IN WHICH CONSUMER NEEDS ARE NOT BEING ADEQUATELY MET.ADEQUATELY MET.

PERCEIVED PRICEPERCEIVED PRICE PERCEPTIONS OF PRICE UNFAIRNESS PERCEPTIONS OF PRICE UNFAIRNESS

AFFECT CONSUMER PERCEPTIONS OF AFFECT CONSUMER PERCEPTIONS OF PRODUCT VALUE AND ULTIMATELY THEIR PRODUCT VALUE AND ULTIMATELY THEIR WILLINGNESS TO PATRONIZE THEIR WILLINGNESS TO PATRONIZE THEIR STORE.STORE.

THUS THERE ARE 3 PRICING STRATEGIES THUS THERE ARE 3 PRICING STRATEGIES BASED ON CUSTOMERS PERCEPTION OF BASED ON CUSTOMERS PERCEPTION OF THE VALUE PROVIDED BY THE PURCHASETHE VALUE PROVIDED BY THE PURCHASE

SATISFACTION BASED PRICINGSATISFACTION BASED PRICING RELATIONSHIP PRICING RELATIONSHIP PRICING EFFICIENCY PRICINGEFFICIENCY PRICING

PERCEIVED QUALITYPERCEIVED QUALITY CONSUMERS OFTEN JUDGE THE EQUALITY CONSUMERS OFTEN JUDGE THE EQUALITY

OF A PRODUCT BASED ON VARIETY OF OF A PRODUCT BASED ON VARIETY OF INFO ASSOCIATED WITH THE PRODUCT. INFO ASSOCIATED WITH THE PRODUCT. SOME OF IT IS INTRINSIC TO THE PRODUCT SOME OF IT IS INTRINSIC TO THE PRODUCT ,OTHERS ARE EXTRINSIC. EITHER SINGLY ,OTHERS ARE EXTRINSIC. EITHER SINGLY OR TOGETHER THEY PROVIDE THE BASIS OR TOGETHER THEY PROVIDE THE BASIS FOR PERCEPTION OF PRODUCT AND ITS FOR PERCEPTION OF PRODUCT AND ITS QUALITY.QUALITY.

INTRINSIC CHARACTERISTICS ARE SIZE, INTRINSIC CHARACTERISTICS ARE SIZE, COLOUR ,FLAVOUR OR AROMA.COLOUR ,FLAVOUR OR AROMA.

EXTRINSIC ARE COUNTY OF ORIGIN ETC.EXTRINSIC ARE COUNTY OF ORIGIN ETC.

PRICE V/S QUALITYPRICE V/S QUALITY

THE CONSUMERS USING THE THE CONSUMERS USING THE RELATIONSHIP RELY ON A WELL RELATIONSHIP RELY ON A WELL KNOWN BRAND NAME AS AN KNOWN BRAND NAME AS AN INDICATOR OF QUALITY WITHOUT INDICATOR OF QUALITY WITHOUT ACTUALLY RELYING DIRECTLY ON ACTUALLY RELYING DIRECTLY ON PRICE. PRICE.

RETAIL STORE IMAGERETAIL STORE IMAGE

RETAIL STORES HAVE IMAGES OF THEIR RETAIL STORES HAVE IMAGES OF THEIR OWN THAT SERVE TO INFLUENCE THE OWN THAT SERVE TO INFLUENCE THE PERCEIVED QUALITY OF PRODUCTS THEY PERCEIVED QUALITY OF PRODUCTS THEY CARRY AND THE DECISIONS OF CARRY AND THE DECISIONS OF CONSUMERS AS TO WHERE TO SHOP. CONSUMERS AS TO WHERE TO SHOP. THESE IMAGES STEM FROM THEIR DESIGN, THESE IMAGES STEM FROM THEIR DESIGN, PHYSICAL ENVIRONMENT ,PRICING PHYSICAL ENVIRONMENT ,PRICING STRATEGY, PRODUCT ASSORTMENTS ETC. STRATEGY, PRODUCT ASSORTMENTS ETC.

Eg : BORKER STORES Eg : BORKER STORES

MANUFACTURERS IMAGEMANUFACTURERS IMAGE

CONSUMER IMAGERY EXTENDS BEYOND CONSUMER IMAGERY EXTENDS BEYOND PERCEIVED PRICE AND A STORE IMAGE TO PERCEIVED PRICE AND A STORE IMAGE TO THE PRODUCERS THEMSELVES.THE PRODUCERS THEMSELVES.

MANUFACTURERS WHO ENJOY A MANUFACTURERS WHO ENJOY A FAVOURABLE IMAGE GENERALLY FIND FAVOURABLE IMAGE GENERALLY FIND THAT THEIR NEW PRODUCTS ARE THAT THEIR NEW PRODUCTS ARE ACCEPTED MORE READILY THAN THOSE OF ACCEPTED MORE READILY THAN THOSE OF MANUFACTURERS WHO HAVE A LESS MANUFACTURERS WHO HAVE A LESS FAVOURABLE OR EVEN A NEUTRAL IMAGE.FAVOURABLE OR EVEN A NEUTRAL IMAGE.

PERCEIVED RISKPERCEIVED RISK PERCEPTION OF RISKPERCEPTION OF RISK IT’S THE UNCERTAINITY THAT CONSUMERS IT’S THE UNCERTAINITY THAT CONSUMERS

FACE WHEN THEY CANNOT FORESEE THE FACE WHEN THEY CANNOT FORESEE THE CONSEQUENCES OF THEIR PURCHASE CONSEQUENCES OF THEIR PURCHASE DECISIONS. THEY INCLUDE DECISIONS. THEY INCLUDE FUNCTIONAL ,PHYSICAL, SOCIAL, FUNCTIONAL ,PHYSICAL, SOCIAL, PSYCHOLOGICAL AND TIME RISK. PSYCHOLOGICAL AND TIME RISK.

HOW CONSUMERS HANDLE RISKHOW CONSUMERS HANDLE RISK CONSUMERS SEEK INFORMATION. THEY ARE CONSUMERS SEEK INFORMATION. THEY ARE

BRAND LOYAL, SELECT A BRAND IMAGE, RELY BRAND LOYAL, SELECT A BRAND IMAGE, RELY ON STORE IMAGE, BUY THE MOST EXPENSIVE ON STORE IMAGE, BUY THE MOST EXPENSIVE MODEL AND SEEK REASSUARANCE THROUGH MODEL AND SEEK REASSUARANCE THROUGH MONEY BACK GUARANTEE ETC. MONEY BACK GUARANTEE ETC.

CHAPTER SIXCHAPTER SIX

CONSUMER LEARNINGCONSUMER LEARNING

WHAT IS IT ???WHAT IS IT ??? IT IS THE PROCESS BY WHICH INDIVIDUALS IT IS THE PROCESS BY WHICH INDIVIDUALS

ACQUIRE THE PURCHASE AND CONSUMPTION ACQUIRE THE PURCHASE AND CONSUMPTION KNOWLEDGE AND EXPERINCE THAT THEY APPLY KNOWLEDGE AND EXPERINCE THAT THEY APPLY TO FUTURE RELATED BEHAVIOUR.TO FUTURE RELATED BEHAVIOUR.

IT IS THE PROCESS WHICH CONTINUOSLY IT IS THE PROCESS WHICH CONTINUOSLY EVOLVES AND CHANGES AS A RESULT OF NEWLY EVOLVES AND CHANGES AS A RESULT OF NEWLY ACQUIRED KNOWLEDGE OR FROM ACTUAL ACQUIRED KNOWLEDGE OR FROM ACTUAL EXPERIENCE.EXPERIENCE.

BOTH SERVE A S FEEDBACK TO THE INDIVIDUAL BOTH SERVE A S FEEDBACK TO THE INDIVIDUAL AND PROVIDE THE BASIS FOR FUTURE AND PROVIDE THE BASIS FOR FUTURE BEHAVIOUR IN SIMILAR SITUATIONS.BEHAVIOUR IN SIMILAR SITUATIONS.

ELEMENTS OF ELEMENTS OF CONSUMER LEARNINGCONSUMER LEARNING

MOTIVATIONMOTIVATION – BASED ON NEEDS AND – BASED ON NEEDS AND GOALS. IT ACTS AS A SPUR TO LEARNING. GOALS. IT ACTS AS A SPUR TO LEARNING. THE LEARNING CAN BE CONCERNING THE THE LEARNING CAN BE CONCERNING THE PRICES, QUALITY, CHARACTERISTICS OF PRICES, QUALITY, CHARACTERISTICS OF PRICES ETC.PRICES ETC.

CUES CUES – THEY ARE THE STIMULI THAT GIVE – THEY ARE THE STIMULI THAT GIVE DIRECTION TO THESE MOTIVES. THE AD. DIRECTION TO THESE MOTIVES. THE AD. CAN BE A STIMULI. IN THE MARKET PLACE, CAN BE A STIMULI. IN THE MARKET PLACE, PRICE, STYLING, PACKAGING, PRICE, STYLING, PACKAGING, ADVERTISING AND STORE DISPLAY SERVE ADVERTISING AND STORE DISPLAY SERVE AS CUES.AS CUES.

RESPONSERESPONSE - HOW INDIVIDUALS REACT TO - HOW INDIVIDUALS REACT TO A DRIVE OR CUE. HOW THEY A DRIVE OR CUE. HOW THEY BEHAVE,CONSTITUTE THEIR RESPONSE.BEHAVE,CONSTITUTE THEIR RESPONSE.

REINFORCEMENTREINFORCEMENT – IT INCREASES THE – IT INCREASES THE LIKELIHOOD THAT A SPECIFIC RESPONSE LIKELIHOOD THAT A SPECIFIC RESPONSE WILL OCCUR IN THE FUTURE AS THE WILL OCCUR IN THE FUTURE AS THE RESULT OF PARTICULAR CUES OR STIMULI.RESULT OF PARTICULAR CUES OR STIMULI.

BEHAVIOURAL LEARNING BEHAVIOURAL LEARNING THEORIESTHEORIES

CLASSICAL CONDITIONINGCLASSICAL CONDITIONING

IF YOU GET A HEAD ACHE VISITING A IF YOU GET A HEAD ACHE VISITING A PARTICULAR PLACE YOUR REACTION MAY PARTICULAR PLACE YOUR REACTION MAY BE CONDITIONED FROM YEARS OF BORING BE CONDITIONED FROM YEARS OF BORING VISITS.VISITS.

INSTRUMENTAL CONDITIONINGINSTRUMENTAL CONDITIONING

OBSERVATIONAL LEARNINGOBSERVATIONAL LEARNING

COGNITIVE LEARNING COGNITIVE LEARNING THEORYTHEORY

LEARNING BASED ON MENTAL ACTIVITY LEARNING BASED ON MENTAL ACTIVITY IS CALLED COGNITIVE LEARNING. THE IS CALLED COGNITIVE LEARNING. THE THEORY HOLDS THAT THE KIND OF THEORY HOLDS THAT THE KIND OF LEARNING MOST CHARACTERISTICS OF LEARNING MOST CHARACTERISTICS OF HUMAN BEINGS IS “PROBLEM SOLVING” HUMAN BEINGS IS “PROBLEM SOLVING” WHICH ENABLES INDIVIDUALS TO GAIN WHICH ENABLES INDIVIDUALS TO GAIN SOME CONTROL OVER THEIR SOME CONTROL OVER THEIR ENVIRONMENTENVIRONMENT

INFORMATION PROCESSINFORMATION PROCESS

SENSORY STORE

WORKING

MEMORY

LONG TERM STORE

S S IIE NE NN PN PS US UO TO TRRYY

RREETTRRIIEEVVAALL

REHEARSALREHEARSAL ENCODINGENCODING

FORGOTTENFORGOTTEN

LOSTLOSTFORGOTTENFORGOTTEN LOSTLOST

FORGOTTENFORGOTTENUNAVAILABLEUNAVAILABLE

MEASURES OF CONSUMER LEARNING MEASURES OF CONSUMER LEARNING INCLUDE RECALL AND RECOGNITION INCLUDE RECALL AND RECOGNITION TESTS. COGNITIVE RESPONSES TO TESTS. COGNITIVE RESPONSES TO ADVERTISING AND ATTITUDINAL AND ADVERTISING AND ATTITUDINAL AND BEHAVIOURAL MEASURES OF BRAND BEHAVIOURAL MEASURES OF BRAND LOYALTY.LOYALTY.

BRAND LOYALTY CONSISTS OF BOTH BRAND LOYALTY CONSISTS OF BOTH ATTITUDES AND ACTUAL ATTITUDES AND ACTUAL BEHAVIOURS TOWARD A BRAND AND BEHAVIOURS TOWARD A BRAND AND BOTH MUST BE MEASURED.BOTH MUST BE MEASURED.

CHAPTER SEVENCHAPTER SEVEN

CONSUMER ATTITUDE FORMATION CONSUMER ATTITUDE FORMATION AND CHANGEAND CHANGE

WHAT ARE ATTITUDESWHAT ARE ATTITUDES AN ATTITUDE IS A LEARNED PRE DISPOSITION TO AN ATTITUDE IS A LEARNED PRE DISPOSITION TO

BEHAVE IN A CONSISTENTLY FAVOURABLE OR BEHAVE IN A CONSISTENTLY FAVOURABLE OR UNFAVOURABLE WAY WITH RESPECT TO A GIVEN UNFAVOURABLE WAY WITH RESPECT TO A GIVEN OBJECT OBJECT

ATTITUDE “OBJECT”ATTITUDE “OBJECT” IT CAN BE CONCEPTUALISED AS A SUMMARY IT CAN BE CONCEPTUALISED AS A SUMMARY

EVALUATION OF AN OBJECT.EVALUATION OF AN OBJECT.

ATTITUDES – LEARNED DISPOSITIONATTITUDES – LEARNED DISPOSITION IT MEANS THAT ATTITUDE RELEVANT TO IT MEANS THAT ATTITUDE RELEVANT TO

PURCHASE BEHAVIOUR ARE FORMED AS A PURCHASE BEHAVIOUR ARE FORMED AS A RESULT OF DIRECT EXPERIENCE WITH THE RESULT OF DIRECT EXPERIENCE WITH THE PRODUCT, WORD OF MOUTH INFORMATION PRODUCT, WORD OF MOUTH INFORMATION ACQUIRED FROM OTHERS OR EXPOSURE TO ACQUIRED FROM OTHERS OR EXPOSURE TO MASS MEDIA ADVERTISING.MASS MEDIA ADVERTISING.

ATTITUDES HAVE CONSISTENCYATTITUDES HAVE CONSISTENCY ATTITUDES ARE RELATIVEY CONSISTENT WITH ATTITUDES ARE RELATIVEY CONSISTENT WITH

THE BEHAVIOUR THEY REFLECT HOWEVER THE BEHAVIOUR THEY REFLECT HOWEVER DESPITE THEIR CONSISTENCY ATTITUDES ARE DESPITE THEIR CONSISTENCY ATTITUDES ARE NOT NECESSARILY PERMANENT, THEY DO NOT NECESSARILY PERMANENT, THEY DO CHANGE.CHANGE.

ATTITUDES OCCUR WITHIN SITUATIONATTITUDES OCCUR WITHIN SITUATION BY SITUATION WE MEAN EVENTS OR BY SITUATION WE MEAN EVENTS OR

CIRCUMSTANCES THAT AT A PARTICULAR POINT CIRCUMSTANCES THAT AT A PARTICULAR POINT IN TIME, INFLUENCE THE RELATIONSHIP BETWEEN IN TIME, INFLUENCE THE RELATIONSHIP BETWEEN AN ATTITUDE AND BEHAVIOUR.AN ATTITUDE AND BEHAVIOUR.

Eg : BRAND SWITCHING BEHAVIOUR MAY SEEM TO Eg : BRAND SWITCHING BEHAVIOUR MAY SEEM TO REFLECT A NEGATIVE ATTITUDE WITH THE REFLECT A NEGATIVE ATTITUDE WITH THE BRAND, BUT IT MAY BE INFLUENCED BY A BRAND, BUT IT MAY BE INFLUENCED BY A SPECIFIC SITUATION THAT IS HIS WISH TO SPECIFIC SITUATION THAT IS HIS WISH TO ECONOMISE.ECONOMISE.

STRUCTURAL MODELSSTRUCTURAL MODELS

TRICOMPONENT ATTITUDE MODELTRICOMPONENT ATTITUDE MODEL MULTIATTRIBUTE ATTITUDE MODELMULTIATTRIBUTE ATTITUDE MODEL TRY TO CONSUME MODELTRY TO CONSUME MODEL ATTITUDE TOWARDS THE AD MODELATTITUDE TOWARDS THE AD MODEL

TRICOMPONENT ATTITUDE TRICOMPONENT ATTITUDE MODELMODEL

AFFECT

COGNITION

CONATION

THE COGNITIVE COMPONENT IS THE KNOWLEDGE THE COGNITIVE COMPONENT IS THE KNOWLEDGE AND PERCEPTIONS THAT ARE ACQUIRED BY A AND PERCEPTIONS THAT ARE ACQUIRED BY A COMBINATION OF DIRECT EXPERIENCE WITH THE COMBINATION OF DIRECT EXPERIENCE WITH THE ATTITUDE OBJECT AND RELATED INFORMATION ATTITUDE OBJECT AND RELATED INFORMATION FROM VARIOUS SOURCES.FROM VARIOUS SOURCES.

THE AFFECTIVE COMPONENT IS CONSUMER’S THE AFFECTIVE COMPONENT IS CONSUMER’S

EMOTIONS OR FEELINGS ABOUT A PARTICULAR EMOTIONS OR FEELINGS ABOUT A PARTICULAR PRODUCT OR BRAND.PRODUCT OR BRAND.

THE CONATIVE COMPONENT IS CONCERNED WITH THE CONATIVE COMPONENT IS CONCERNED WITH THE LIKELIHOOD OR TENDENCY THAT AN THE LIKELIHOOD OR TENDENCY THAT AN INDIVIDUAL WILL UNDERTAKE A SPECIFIC ACTION INDIVIDUAL WILL UNDERTAKE A SPECIFIC ACTION OR BEHAVE IN A PARTICULAR WAY WITH REGARD OR BEHAVE IN A PARTICULAR WAY WITH REGARD TO THE ATTITUDE OBJECT. IT MAY INCLUDE THE TO THE ATTITUDE OBJECT. IT MAY INCLUDE THE ACTUAL BEHAVIOUR ITSELF.ACTUAL BEHAVIOUR ITSELF.

ATTITUDES TOWARDS ATTITUDES TOWARDS MODELMODEL

EXPOSURE TO AN AD

JUDGEMENTS ABOUT THE AD

BELIEFS ABOUT THE BRAND

FEELINGS FROM THE AD

ATTITUDE TOWARDSTHE AD

ATTITUDE TOWARDS THE BRAND

ATTITUDE FORMATIONATTITUDE FORMATION HOW ATTITUDES ARE LEARNEDHOW ATTITUDES ARE LEARNED FORMATION OF AN ATTITUDE MEANS THE SHIFT FROM FORMATION OF AN ATTITUDE MEANS THE SHIFT FROM

HAVING NO ATTITUDE TOWARD A GIVEN OBJECT TO HAVING NO ATTITUDE TOWARD A GIVEN OBJECT TO HAVING SOME ATTITUDE TOWARDS IT.HAVING SOME ATTITUDE TOWARDS IT.

SOURCES OF INFLUENCESOURCES OF INFLUENCE THE FORMATION O CONSUMER ATTITUDE IS TRONGLY THE FORMATION O CONSUMER ATTITUDE IS TRONGLY

INFLUENCED BY PERSONAL EXPERIENCE , THE INFLUENCE INFLUENCED BY PERSONAL EXPERIENCE , THE INFLUENCE OF FAMILY AND FRIENDS, DIRECT MARKETING, MASS MEDIA OF FAMILY AND FRIENDS, DIRECT MARKETING, MASS MEDIA AND INTERNET.AND INTERNET.

PERSONALITY FACTORS THE RECEPTIVITY AND SPEED WITH PERSONALITY FACTORS THE RECEPTIVITY AND SPEED WITH WHICH ATTITUDES A RE LIKELY TO BE ALTERED ARE WHICH ATTITUDES A RE LIKELY TO BE ALTERED ARE INFLUENCED BY PERSONAL EXPERINCE AND PERSONALITY.INFLUENCED BY PERSONAL EXPERINCE AND PERSONALITY.

STRATEGIES OF STRATEGIES OF ATTITUDE CHANGEATTITUDE CHANGE

CHANGING BASIC MOTIVATIONAL FUNCTIONCHANGING BASIC MOTIVATIONAL FUNCTION ASSOCIATING PRODUCT WITH GROUP,EVENT OR ASSOCIATING PRODUCT WITH GROUP,EVENT OR

CAUSECAUSE RESOLVING TWO CONFLICTING ATTITUDESRESOLVING TWO CONFLICTING ATTITUDES ALTERING COMPONENETS OF MULTIATTRIBUTE ALTERING COMPONENETS OF MULTIATTRIBUTE

NODELNODEL CHANGING BELIEFS ABOUT COMPETITORS BRANDCHANGING BELIEFS ABOUT COMPETITORS BRAND ELABORATION LIKELIHOOD MODELELABORATION LIKELIHOOD MODEL COMMUNICATION AND CONSUMER BEHAVIOURCOMMUNICATION AND CONSUMER BEHAVIOUR

COGNITIVE DISSONANCE COGNITIVE DISSONANCE THEORYTHEORY

THE DISCOMFORT OR DISSONANCE WHICH THE DISCOMFORT OR DISSONANCE WHICH OCCURS WHEN THE CONSUMER HOLDS OCCURS WHEN THE CONSUMER HOLDS CONFLICTING THOUGHTS ABOUT A BELIEF OR AN CONFLICTING THOUGHTS ABOUT A BELIEF OR AN ATTITUDE OBJECT ATTITUDE OBJECT

Eg : WHEN A CONSUMER HAS MADE A Eg : WHEN A CONSUMER HAS MADE A COMMITMENT – MADE A DOWN PAYMENT THEY COMMITMENT – MADE A DOWN PAYMENT THEY OFTEN BEGIN TO FEEL COGNITIVE DISSONANCE OFTEN BEGIN TO FEEL COGNITIVE DISSONANCE WHEN THEY THINK OF THE UNIQUE POSITIVE WHEN THEY THINK OF THE UNIQUE POSITIVE QUALITIES OF THE BRAND NOT SELECTED. WHEN QUALITIES OF THE BRAND NOT SELECTED. WHEN IT OCCURS AFTER A PURCHASE IT IS CALLED IT OCCURS AFTER A PURCHASE IT IS CALLED POST PURCHASE DISSONANCE.POST PURCHASE DISSONANCE.

CHAPTER EIGHTCHAPTER EIGHT

REFERENCE GROUPS, SOCIAL CLASS REFERENCE GROUPS, SOCIAL CLASS AND FAMILY INFLUENCESAND FAMILY INFLUENCES

WHAT IS A GROUPWHAT IS A GROUP IT IS DEFINED AS TWO OR MORE PEOPLE IT IS DEFINED AS TWO OR MORE PEOPLE

WHO INTERACT TO ACCOMPLISH MUTUAL WHO INTERACT TO ACCOMPLISH MUTUAL OR INDIVIDUAL GOALS.OR INDIVIDUAL GOALS.

THE POWER OF REFERENCE GROUP- ITS THE POWER OF REFERENCE GROUP- ITS ANY PERSON OR GROUP THAT SERVES AS ANY PERSON OR GROUP THAT SERVES AS A PT. OF COMPARISON FOR AN INDIVIDUAL A PT. OF COMPARISON FOR AN INDIVIDUAL IN FORMING GENERAL OR SP. VALUES, IN FORMING GENERAL OR SP. VALUES, ATTITUDES, OR A SP. GUIDE FOR ATTITUDES, OR A SP. GUIDE FOR BEHAVIOURBEHAVIOUR

BROADENED PERSPECTIVE BROADENED PERSPECTIVE INFLUENCING FACTORSINFLUENCING FACTORS

TYPES OF REFERENCE TYPES OF REFERENCE GROUPSGROUPS

FRIENDSHIP GROUPSFRIENDSHIP GROUPS ALSO KNOWN AS INFORMAL GROUPS SINCE THEY ALSO KNOWN AS INFORMAL GROUPS SINCE THEY

ARE USUALLY UNSTRUCTURED AND LACK ARE USUALLY UNSTRUCTURED AND LACK SPECIAL AUTHORITY LEVELS. AFTER FAMILY, SPECIAL AUTHORITY LEVELS. AFTER FAMILY, FRIENDS ARE MOST LIKELY TO INFLUENCE THE FRIENDS ARE MOST LIKELY TO INFLUENCE THE PURCHASE DECISION.PURCHASE DECISION.

SHOPPING GROUPSSHOPPING GROUPS TWO OR MORE PEPLE WHO SHOP TOGETHER FOR TWO OR MORE PEPLE WHO SHOP TOGETHER FOR

FOOD, CLOTHING OR TO PASS TIME FOOD, CLOTHING OR TO PASS TIME

WORK GROUPSWORK GROUPS THE SHEER AMOUNT OF TIME THAT PEOPLE THE SHEER AMOUNT OF TIME THAT PEOPLE

SPEND AT THEIR JOBS PROVIDES AMPLE SPEND AT THEIR JOBS PROVIDES AMPLE OPPORTUNITY FOR WORK GROUPS TO SERVE AS OPPORTUNITY FOR WORK GROUPS TO SERVE AS A MAJOR INFLUENCE ON THE CONSUMPTION A MAJOR INFLUENCE ON THE CONSUMPTION BEHAVIOURS OF MEMBERSBEHAVIOURS OF MEMBERS

VIRTUAL GROUPSVIRTUAL GROUPS THANKS TO TECHNOLOGY WE ARE WITNESSING THANKS TO TECHNOLOGY WE ARE WITNESSING

THE EMERGENCE OF THIS GROUPTHE EMERGENCE OF THIS GROUP

CONSUMER ACTION GROUPSCONSUMER ACTION GROUPS IT HAS EMERGED IN RESPONSE TO THE IT HAS EMERGED IN RESPONSE TO THE

CONSUMERIST MOVEMENT WHO ASSIT IN MAKING CONSUMERIST MOVEMENT WHO ASSIT IN MAKING THE RIGHT PURCHASE DEICISION AND CONSUME THE RIGHT PURCHASE DEICISION AND CONSUME PRODUCTS IN A HEALTHY AND RESPONSIBLE PRODUCTS IN A HEALTHY AND RESPONSIBLE MANNER.MANNER.

CELEBRITY AND REFERENCE CELEBRITY AND REFERENCE GROUPS APPEALSGROUPS APPEALS

CELEBRITIESCELEBRITIES EXPERTS EXPERTS COMMON MANCOMMON MAN SPOKESPERSONSPOKESPERSON SPOKES- CHARACTERSSPOKES- CHARACTERS

FAMILYFAMILY

CONSUMER SOCIALISATION OF CONSUMER SOCIALISATION OF CHILDRENCHILDREN

ADULT CONSUMER SOCIALIZATIONADULT CONSUMER SOCIALIZATION INTERGENERATIONAL SOCIALIZATIONINTERGENERATIONAL SOCIALIZATION

FUNCTIONS OF THE FUNCTIONS OF THE FAMILYFAMILY

ECONOMIC WELL BEINGECONOMIC WELL BEING

EMOTIONAL SUPPORTEMOTIONAL SUPPORT

SUITABLE FAMILY LIFESTLESSUITABLE FAMILY LIFESTLES

FAMILY DECISION MAKINGFAMILY DECISION MAKING

KEY FAMILY CONSUMPTION ROLES - THERE ARE 8 KEY FAMILY CONSUMPTION ROLES - THERE ARE 8 DISTINCT ROLES IN THE PROCESS.DISTINCT ROLES IN THE PROCESS.

A LOOK AT THESE ROLES PROVIDES FURTHER A LOOK AT THESE ROLES PROVIDES FURTHER INSIGHT INTO HOW FAMILY MEMBERS INTERACT INSIGHT INTO HOW FAMILY MEMBERS INTERACT IN THEIR VARIOUS CONSUMPTION RELATED IN THEIR VARIOUS CONSUMPTION RELATED ROLES.ROLES.

DYNAMICS OF HUSBAND –WIFE DECISION MAKINGDYNAMICS OF HUSBAND –WIFE DECISION MAKING THE RELATIVE INFLUENCE OF HUSBANDS AND THE RELATIVE INFLUENCE OF HUSBANDS AND

WIVES CAN BE CLASSIFIED AS HUSBAND WIVES CAN BE CLASSIFIED AS HUSBAND DOMINATED, WIFE DOMINATED, JOINT OR DOMINATED, WIFE DOMINATED, JOINT OR AUTONOMIC AUTONOMIC

EXPANDING ROLE OF CHILDREN IN FAMILY EXPANDING ROLE OF CHILDREN IN FAMILY DECISION MAKINGDECISION MAKING

THERE HAS BEEN A TREND OF CHILDREN THERE HAS BEEN A TREND OF CHILDREN

PLAYING A MORE ACTIVE ROLE. THE SHIFT PLAYING A MORE ACTIVE ROLE. THE SHIFT IN INFLUENCE HAS OCCURED AS FAMILY IN INFLUENCE HAS OCCURED AS FAMILY HAVE FEWER CHILDREN, MORE DUAL HAVE FEWER CHILDREN, MORE DUAL INCOME COUPLES AND THE INCOME COUPLES AND THE ENCOURAGEMENT BY MEDIA TO ALLOW ENCOURAGEMENT BY MEDIA TO ALLOW CHILDREN TO “EXPRESS” THEMSELVES.CHILDREN TO “EXPRESS” THEMSELVES.

FAMILY LIFE CYCLEFAMILY LIFE CYCLE

WHAT IS SOCIAL CLASSWHAT IS SOCIAL CLASS SOCIAL CLASS AND SOCIAL STATUS SOCIAL CLASS AND SOCIAL STATUS IT IS FREQUENTLY THOUGHT OF AS RELATIVE RANKINGS OF IT IS FREQUENTLY THOUGHT OF AS RELATIVE RANKINGS OF

THE MEMBERS OF EACH SOCIAL CLASS IN TERMS OF THE MEMBERS OF EACH SOCIAL CLASS IN TERMS OF SPECIAL STATUS FACTORS SUCH AS WEALTH, POWER AND SPECIAL STATUS FACTORS SUCH AS WEALTH, POWER AND PRESTIGE. PRESTIGE.

DYNAMICS OF STATUS CONSUMPTIONDYNAMICS OF STATUS CONSUMPTION IT IS THE PROCESS BY WHICH CONSUMERS ENDEAVOUR TO IT IS THE PROCESS BY WHICH CONSUMERS ENDEAVOUR TO

INCREASE THEIR SOCIAL STANDING THROUGH CONSPICUOS INCREASE THEIR SOCIAL STANDING THROUGH CONSPICUOS CONSUMPTION AND POSSESIONS. IT INVOLVES FAMILY CONSUMPTION AND POSSESIONS. IT INVOLVES FAMILY INCOME, OCCUPATIONAL STATUS OR PRESTIGE AND INCOME, OCCUPATIONAL STATUS OR PRESTIGE AND EDUCATIONAL ATTAINMENTEDUCATIONAL ATTAINMENT

SOCIAL CLASS CATEGORIESSOCIAL CLASS CATEGORIES THEY ARE USUALLY RANKED IN A HIERARCHY RANGING THEY ARE USUALLY RANKED IN A HIERARCHY RANGING

FROM LOW TO HIGH STATUS.FROM LOW TO HIGH STATUS.

MEASUREMENT OF MEASUREMENT OF SOCIAL CLASSSOCIAL CLASS

SUBJECTIVE MEASURESSUBJECTIVE MEASURES LOWER CLASS, LOWER MIDDLE CLASS, UPPER LOWER CLASS, LOWER MIDDLE CLASS, UPPER

MIDDLE CLASS AND UPPER CLASS.MIDDLE CLASS AND UPPER CLASS.

REPUTATIONAL MEASURESREPUTATIONAL MEASURES PAGE 3 TYPES.PAGE 3 TYPES.

OBJECTIVE MEASURESOBJECTIVE MEASURES THEY CONSISTS OF SELECTED DEMOGRAPHIC OR THEY CONSISTS OF SELECTED DEMOGRAPHIC OR

SOCIO ECONOMIC VARIABLES CONCERNING THE SOCIO ECONOMIC VARIABLES CONCERNING THE INDIVIDUAL UNDER STUDY.INDIVIDUAL UNDER STUDY.

AFFLUENT CONSUMERAFFLUENT CONSUMER

MIDDLE-CLASS CONSUMERMIDDLE-CLASS CONSUMER

NON AFFLUENT CONSUMERNON AFFLUENT CONSUMER

CONSUMER BEHAVIOUR CONSUMER BEHAVIOUR APPLICATIONSAPPLICATIONS

CLOTHING , FASHION AND SHOPPINGCLOTHING , FASHION AND SHOPPING THE PURSUIT OF LEISURETHE PURSUIT OF LEISURE SAVING , SPENDING AND CREDITSAVING , SPENDING AND CREDIT SOCIAL CLASS AND COMMUNICATIONSOCIAL CLASS AND COMMUNICATION

CHAPTER NINECHAPTER NINE

COMMUNICATION AND COMMUNICATION AND CONSUMER BEHAVIOURCONSUMER BEHAVIOUR

COMMUNICATION IS THE COMMUNICATION IS THE TRANSMISSION OF A MESSAGE TRANSMISSION OF A MESSAGE FROM A SENDER TO A RECEIVER VIA FROM A SENDER TO A RECEIVER VIA A MEDIUM OR CHANNEL OF A MEDIUM OR CHANNEL OF TRANSMISSION.TRANSMISSION.

BASIC COMMUNICATION MODELBASIC COMMUNICATION MODEL

SENDERSENDER(SOURCE)(SOURCE) MESSAGEMESSAGE CHANNELCHANNEL

(MEDIUM(MEDIUM))RECEIVERRECEIVER

(CONSUMER(CONSUMER))

FEEDBACKFEEDBACK

THE SENDER : MAY BE A FORMAL THE SENDER : MAY BE A FORMAL COMMUNICATION SOURCE, AN INFORMAL COMMUNICATION SOURCE, AN INFORMAL SOURCE OR “WORD OF MOUTH” SOURCE OR “WORD OF MOUTH” COMMUNICATION.COMMUNICATION.

THE RECEIVER : HE IS LIKELY TO BE A THE RECEIVER : HE IS LIKELY TO BE A TARGETED PROSPECT OR A CUSTOMER.TARGETED PROSPECT OR A CUSTOMER.

THE MEDIUM : IT CAN BE IMPERSONAL OR THE MEDIUM : IT CAN BE IMPERSONAL OR INTERPERSONAL. MASS MEDIA IS MOSTLY INTERPERSONAL. MASS MEDIA IS MOSTLY PRINT, BROADCAST OR ELECTRONIC.PRINT, BROADCAST OR ELECTRONIC.

THE MESSAGE : IT CAN BE VERBAL OR THE MESSAGE : IT CAN BE VERBAL OR NON VERBAL OR BOTH.NON VERBAL OR BOTH.

FEEDBACK : IT IS AN ESSENTIAL FEEDBACK : IT IS AN ESSENTIAL COMPONENT OF BOTH INTERPERSONAL COMPONENT OF BOTH INTERPERSONAL AND IMPERSONAL COMMUNICATION.AND IMPERSONAL COMMUNICATION.

THE COMMUNICATION THE COMMUNICATION PROCESSPROCESS

THE MESSAGE INITIATOR THE MESSAGE INITIATOR CREDIBILITY OF INFORMAL SOURCESCREDIBILITY OF INFORMAL SOURCES CREDIBILITY OF FORMAL SOURCESCREDIBILITY OF FORMAL SOURCES CREDIBILITY OF SPOKESPERSON CREDIBILITY OF SPOKESPERSON MESSAGE CREDIBILITYMESSAGE CREDIBILITY TARGET AUDIENCETARGET AUDIENCE FEEDBACK PROCESSFEEDBACK PROCESS

DESIGNING PERSUASIVE DESIGNING PERSUASIVE COMMUNICATIONCOMMUNICATION

COMMUNICATION STRATEGYCOMMUNICATION STRATEGY TARGET AUDIENCETARGET AUDIENCE MEDIA STRATEGYMEDIA STRATEGY MESSAGE STRATEGYMESSAGE STRATEGY MESSAGE STRUCTURE AND PRESENTATIONMESSAGE STRUCTURE AND PRESENTATION RESONANCERESONANCE MESSAGE FRAMINGMESSAGE FRAMING ONE SIDED V/S TWO SIDED MESSAGESONE SIDED V/S TWO SIDED MESSAGES COMPARATIVE ADVERTISINGCOMPARATIVE ADVERTISING ABRASIVE ADVERTISINGABRASIVE ADVERTISING SEX IN ADVERTISINGSEX IN ADVERTISING ETHICS IN COMMUNICATIONETHICS IN COMMUNICATION

CHAPTER TENCHAPTER TEN

CONSUMER DECISION MAKING CONSUMER DECISION MAKING

AND AND

BEYONDBEYOND

THE CONSUMERS DECISION TO PURCHASE OR NOT IS THE CONSUMERS DECISION TO PURCHASE OR NOT IS AN IMPORTANT MOMENT FOR MOST MARKETERS. IT AN IMPORTANT MOMENT FOR MOST MARKETERS. IT CAN SIGNIFY WHETHER A MARKETING STRATEGY IS CAN SIGNIFY WHETHER A MARKETING STRATEGY IS WISE, INSIGHTFUL, EFFECTIVE, OR WHETHER IT WAS WISE, INSIGHTFUL, EFFECTIVE, OR WHETHER IT WAS POORLY PLANNED AND MISSED THE MARK.POORLY PLANNED AND MISSED THE MARK.

INPUT VARIABLES THAT AFFECT THE DECISION INPUT VARIABLES THAT AFFECT THE DECISION MAKING PROCESS INCLUDE COMMERCIAL MARKETING MAKING PROCESS INCLUDE COMMERCIAL MARKETING EFFORTS AS WELL AS NON COMMERCIAL INFLUENCES EFFORTS AS WELL AS NON COMMERCIAL INFLUENCES AND ALSO BY CONSUMERS PSYCHOLOGICAL FIELD.AND ALSO BY CONSUMERS PSYCHOLOGICAL FIELD.

OUTPUT PHASE INCLUDES THE ACTUAL PURCHASE OUTPUT PHASE INCLUDES THE ACTUAL PURCHASE AND POST PURCHASE EVALUATION. AND POST PURCHASE EVALUATION.

THE PROCESS OF GIFT EXCHANGE IS AN THE PROCESS OF GIFT EXCHANGE IS AN IMPORTANT PART OF CONSUMER BEHAVIOUR.IMPORTANT PART OF CONSUMER BEHAVIOUR.

VARIOUS GIFT GIVING AND RECEIVING VARIOUS GIFT GIVING AND RECEIVING RELATIONSHIPS ARE CAPTURED BY THE 5 RELATIONSHIPS ARE CAPTURED BY THE 5 CATEGORIESCATEGORIES

CONSUMER BEHAVIOUR IS NOT ABOUT CONSUMER BEHAVIOUR IS NOT ABOUT MAKING A PURCHASE DECISION, IT ALSO MAKING A PURCHASE DECISION, IT ALSO INCLUDES THE FULL RANGE OF EXPERIENCES INCLUDES THE FULL RANGE OF EXPERIENCES ASSOCIATED WITH USING OR CONSUMING ASSOCIATED WITH USING OR CONSUMING PRODUCTS INCLUDING THE SENSE OF PRODUCTS INCLUDING THE SENSE OF PLEASURE AND SATISFACTION DERIVED PLEASURE AND SATISFACTION DERIVED FROM POSSESING OR COLLECTING THINGS.FROM POSSESING OR COLLECTING THINGS.

THE SENSE OF PLEASURE DERIVED THE SENSE OF PLEASURE DERIVED FROM POSSESING COLECTING OR FROM POSSESING COLECTING OR CONSUMING THINGS CONTRIBUTES TO CONSUMING THINGS CONTRIBUTES TO CONSUMER SATISFACTION AND CONSUMER SATISFACTION AND OVERALL QUALITY OF LIFE .OVERALL QUALITY OF LIFE .

THESE CONSUMPTION OUTCOMES OR THESE CONSUMPTION OUTCOMES OR EXPERIENCES INTURN AFFECT EXPERIENCES INTURN AFFECT CONSUMER’S FUTURE DECISION CONSUMER’S FUTURE DECISION PROCESSES.PROCESSES.

RELATIONSHIP MARKETINGRELATIONSHIP MARKETING

MANY FIRMS HAVE ESTABLISHED RELATIONSHIP MANY FIRMS HAVE ESTABLISHED RELATIONSHIP MARKETING PROGRAMS SOMETIMES ALSO MARKETING PROGRAMS SOMETIMES ALSO CALLED LOYALTY PROGRAMS TO FOSTER USAGE CALLED LOYALTY PROGRAMS TO FOSTER USAGE LOYALTY AND A COMMITMENT TO THEIR LOYALTY AND A COMMITMENT TO THEIR COMPANY’S PRODUCTS AND SERVICES.COMPANY’S PRODUCTS AND SERVICES.

ALTHOUGH DIRECT MARKETING, SALES ALTHOUGH DIRECT MARKETING, SALES PROMOTION AND GENERAL ADVERTISING MAY BE PROMOTION AND GENERAL ADVERTISING MAY BE USED AS A PART OF A RELATIONSHIP MARKETING USED AS A PART OF A RELATIONSHIP MARKETING STRATEGY. IT REALLY STRESSES LONG TERM STRATEGY. IT REALLY STRESSES LONG TERM COMMITMENT TO THE CUSTOMER BY MAKING COMMITMENT TO THE CUSTOMER BY MAKING THEM FEEL SPECIAL AND BY PROVIDING THEM THEM FEEL SPECIAL AND BY PROVIDING THEM PERSONALISED SERVICES.PERSONALISED SERVICES.