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Marketing Management Unit 5 Sikkim Manipal University Page No. 80 Unit 5 Consumer Buying Behavior Structure: 5.1 Introduction Learning Objectives 5.2 Characteristics affecting C onsumer B ehavior 5.3 Types of B uying D ecision B ehavior: Henry Assael M odel 5.4 Consumer B uying D ecision P rocess 5.5 Buyer D ecision P rocess for N ew P roducts 5.6 Buying M otives 5.7 Buyer B ehavior M odels 5.8 Summary 5.9 Terminal Q uestions 5.10 Answers 5.1 Introduction Consumers are individuals, households or businesses who use the products. In this unit we are limiting our study to individual and households‟ use of products for personal consumption. Consumer characteristics vary from country to country. Therefore it has become challenging task for marketer to understand the need, buying behavior of consumer before developing product and marketing program. In this section we will discuss consumer buying behavior and his/her decision making process. We will also look into the decision process of buyer for new product. Consumer motives and behavior models are analyzed to identify buying environment. Learning Objectives After studying this unit you will be able to Identify the characteristics those affect consumer behavior. Explain different types of buyer behavior. Analyze the consumer decision making process Discuss consumer decision process for new products. Examine the buying motives and behavioral models.
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Page 1: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 80

Unit 5 Consumer Buying Behavior

Structure

51 Introduction

Learning Objectives

52 Characteristics affecting Consumer Behavior

53 Types of Buying Decision Behavior Henry Assael Model

54 Consumer Buying Decision Process

55 Buyer Decision Process for New Products

56 Buying Motives

57 Buyer Behavior Models

58 Summary

59 Terminal Questions

510 Answers

51 Introduction

Consumers are individuals households or businesses who use the

products In this unit we are limiting our study to individual and households‟

use of products for personal consumption Consumer characteristics vary

from country to country Therefore it has become challenging task for

marketer to understand the need buying behavior of consumer before

developing product and marketing program In this section we will discuss

consumer buying behavior and hisher decision making process We will

also look into the decision process of buyer for new product Consumer

motives and behavior models are analyzed to identify buying environment

Learning Objectives

After studying this unit you will be able to

Identify the characteristics those affect consumer behavior

Explain different types of buyer behavior

Analyze the consumer decision making process

Discuss consumer decision process for new products

Examine the buying motives and behavioral models

Marketing Management Unit 5

Sikkim Manipal University Page No 81

52 Characteristics affecting Consumer Behavior

Cultural Social Personal and Psychological factors influence the consumer

behavior These are external to the company and cannot be controlled

Marketer would like to understand the impact of these factors on hisher

organization

I Cultural factors

1 Culture is the combination of customs beliefs and values of

consumers in a particular nation Majority Indians are vegetarians

and a company which sells non vegetarian items should analyze

these values of the consumer For example KFC which sells

chicken dishes all over the world added vegetarian burgers in their

menu to serve vegetarian consumers Another multinational

McDonald whose majority of sales comes form selling beef lets

didn‟t include in the Indian menu as cow is a sacred animal

2 Subcultures are part of culture comprising geographic regions

religions nationalities and racial groups The value system of

these groups differs from others For example Hindus in north

India eat special vegetarian food during the Navaratra festival

They prefer to spend their time with their family During this time

restaurants will have lesser traffic To attract the customers

restaurants started offering the authentic Navaratra dish This

helped the restaurant to attract the family who don‟t have time

bachelors and people want to spend their time with family without

allotting much time for food preparation and so on

3 Social class - these are permanent groups in the society whose

members have common likings According to Mckinsey consumer

report Indian consumers can be classifies into five different

categories They are

a Deprived

b Aspires

c Seekers

d Strivers and

e Global Indians

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Sikkim Manipal University Page No 82

1 Deprived are the people who earn less than Rs 90000

annually This group is also known as below poverty line They

are the poorest people in the country They won‟t get

continuous employment and they earn their lively hood from

seasonal work People in this category will do less skilled or

semi skilled work

2 Aspires belongs to the families who earn between Rs90 000 to

Rs 2 00000 This group consist small shop keepers industrial

workers and small land holding farmers Though they earn

more than deprived class but half of their money goes for

basic amenities and food

3 Seekers earn between Rs 200000 to 500000 This class

varies largely The group contains fresh workers middle level

employees government employees and business people The

class varies widely on the age attitude and other factors

4 Strivers belong to the group who earn between Rs 500000 to

1000000 People in this category are considered very

successful The group contains business people large farmers

senior government officials and professionals Their earnings

are enough to fill their apatite of materials They are leading the

consumption led growth in India

5 Global Indians are earning more than Rs 1000000 This group

is comprised of senior government officials professionals

business people and top business executives India is

witnessing the growth in this class They are truly global they

purchase international brands and have international cuisine

II Social factors

Human beings are social animals They live and interact with other

people Therefore there is a chance of influence by others on their

opinions Marketers like to identify such influential persons or groups

of consumer Generally such groups are classified into two major

groups namely reference groups and family

Reference groups are used in order to evaluate and determine the

nature of a given individual or other groups characteristics and

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sociological attributes Reference groups provide the benchmarks and

contrast needed for comparison and evaluation of group and personal

characteristics ldquoReference groups are groups that people refer to

when evaluating their own qualities circumstances attitudes values

and behaviors - William Thompson amp Joseph Hickey Society in

Focus 2005rdquo Reference groups act as a frame of reference to which

people always refer to evaluate their achievements their role

performance aspirations and ambitions

Family Indian culture gives utmost importance to the family People

discuss with their family before purchasing the valuable items Wife

children and parents influence the decisions of the family Therefore

many companies use either whole family or kids in their promotional

programs

Figure 51 Figure 52

Godrej introduced memory back up auto washing machine They have

shown the family in the advertisement who are enjoying without any

problems of washing clothes In the second advertisement Dabur

chyavanprash uses kids in their advertisements The target customers are

used with celebrity to provide necessary image and convey the attributes of

the product

III Personal factors

Individual factors like age occupation lifestyle and personality influence

the consumer decision making We discussed age and occupation

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factors and their application earlier in the marketing environment unit

We will discuss lifestyle and its influence on the consumer in the

segmentation unit In this section we will focus on the personality and its

influence on the consumer decision making process Personality is the

image of people‟s traits Traits include Self confidence Dominance

autonomy defensiveness adaptability and aggressiveness Many

companies used these concepts in their marketing communications

Bajaj pulsar used muscularity to highlight its image (definitely male) Fair

and lovely and stay free tried to highlight 21st century Indian girl and their

aspirations in their communications

IV Psychological factors

Motivation

Abraham Maslowrsquos ldquoNeed Hierarchy Theoryrdquo

One of the most widely mentioned theories of motivation is the hierarchy of

needs put forth by psychologist Abraham Maslow Maslow saw human

needs in the form of a hierarchy ascending from the lowest to the highest

and he concluded that when one set of needs is satisfied this kind of need

ceases to be a motivator As per his theory these needs are

i Physiological needs These are important needs for sustaining the

human life Food water warmth shelter sleep medicine and

education are the basic physiological needs which fall in the primary

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Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

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Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

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Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

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Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

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Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

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In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

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55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

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Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

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Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

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Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

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6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

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6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

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pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

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reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

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repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

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Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

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9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 2: SLM-Unit-05-MB0046

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52 Characteristics affecting Consumer Behavior

Cultural Social Personal and Psychological factors influence the consumer

behavior These are external to the company and cannot be controlled

Marketer would like to understand the impact of these factors on hisher

organization

I Cultural factors

1 Culture is the combination of customs beliefs and values of

consumers in a particular nation Majority Indians are vegetarians

and a company which sells non vegetarian items should analyze

these values of the consumer For example KFC which sells

chicken dishes all over the world added vegetarian burgers in their

menu to serve vegetarian consumers Another multinational

McDonald whose majority of sales comes form selling beef lets

didn‟t include in the Indian menu as cow is a sacred animal

2 Subcultures are part of culture comprising geographic regions

religions nationalities and racial groups The value system of

these groups differs from others For example Hindus in north

India eat special vegetarian food during the Navaratra festival

They prefer to spend their time with their family During this time

restaurants will have lesser traffic To attract the customers

restaurants started offering the authentic Navaratra dish This

helped the restaurant to attract the family who don‟t have time

bachelors and people want to spend their time with family without

allotting much time for food preparation and so on

3 Social class - these are permanent groups in the society whose

members have common likings According to Mckinsey consumer

report Indian consumers can be classifies into five different

categories They are

a Deprived

b Aspires

c Seekers

d Strivers and

e Global Indians

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Sikkim Manipal University Page No 82

1 Deprived are the people who earn less than Rs 90000

annually This group is also known as below poverty line They

are the poorest people in the country They won‟t get

continuous employment and they earn their lively hood from

seasonal work People in this category will do less skilled or

semi skilled work

2 Aspires belongs to the families who earn between Rs90 000 to

Rs 2 00000 This group consist small shop keepers industrial

workers and small land holding farmers Though they earn

more than deprived class but half of their money goes for

basic amenities and food

3 Seekers earn between Rs 200000 to 500000 This class

varies largely The group contains fresh workers middle level

employees government employees and business people The

class varies widely on the age attitude and other factors

4 Strivers belong to the group who earn between Rs 500000 to

1000000 People in this category are considered very

successful The group contains business people large farmers

senior government officials and professionals Their earnings

are enough to fill their apatite of materials They are leading the

consumption led growth in India

5 Global Indians are earning more than Rs 1000000 This group

is comprised of senior government officials professionals

business people and top business executives India is

witnessing the growth in this class They are truly global they

purchase international brands and have international cuisine

II Social factors

Human beings are social animals They live and interact with other

people Therefore there is a chance of influence by others on their

opinions Marketers like to identify such influential persons or groups

of consumer Generally such groups are classified into two major

groups namely reference groups and family

Reference groups are used in order to evaluate and determine the

nature of a given individual or other groups characteristics and

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Sikkim Manipal University Page No 83

sociological attributes Reference groups provide the benchmarks and

contrast needed for comparison and evaluation of group and personal

characteristics ldquoReference groups are groups that people refer to

when evaluating their own qualities circumstances attitudes values

and behaviors - William Thompson amp Joseph Hickey Society in

Focus 2005rdquo Reference groups act as a frame of reference to which

people always refer to evaluate their achievements their role

performance aspirations and ambitions

Family Indian culture gives utmost importance to the family People

discuss with their family before purchasing the valuable items Wife

children and parents influence the decisions of the family Therefore

many companies use either whole family or kids in their promotional

programs

Figure 51 Figure 52

Godrej introduced memory back up auto washing machine They have

shown the family in the advertisement who are enjoying without any

problems of washing clothes In the second advertisement Dabur

chyavanprash uses kids in their advertisements The target customers are

used with celebrity to provide necessary image and convey the attributes of

the product

III Personal factors

Individual factors like age occupation lifestyle and personality influence

the consumer decision making We discussed age and occupation

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Sikkim Manipal University Page No 84

factors and their application earlier in the marketing environment unit

We will discuss lifestyle and its influence on the consumer in the

segmentation unit In this section we will focus on the personality and its

influence on the consumer decision making process Personality is the

image of people‟s traits Traits include Self confidence Dominance

autonomy defensiveness adaptability and aggressiveness Many

companies used these concepts in their marketing communications

Bajaj pulsar used muscularity to highlight its image (definitely male) Fair

and lovely and stay free tried to highlight 21st century Indian girl and their

aspirations in their communications

IV Psychological factors

Motivation

Abraham Maslowrsquos ldquoNeed Hierarchy Theoryrdquo

One of the most widely mentioned theories of motivation is the hierarchy of

needs put forth by psychologist Abraham Maslow Maslow saw human

needs in the form of a hierarchy ascending from the lowest to the highest

and he concluded that when one set of needs is satisfied this kind of need

ceases to be a motivator As per his theory these needs are

i Physiological needs These are important needs for sustaining the

human life Food water warmth shelter sleep medicine and

education are the basic physiological needs which fall in the primary

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Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

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Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

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Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

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Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

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Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

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Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

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Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

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Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

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Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

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Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

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Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

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6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

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6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

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pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

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Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

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Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

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Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

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9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 3: SLM-Unit-05-MB0046

Marketing Management Unit 5

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1 Deprived are the people who earn less than Rs 90000

annually This group is also known as below poverty line They

are the poorest people in the country They won‟t get

continuous employment and they earn their lively hood from

seasonal work People in this category will do less skilled or

semi skilled work

2 Aspires belongs to the families who earn between Rs90 000 to

Rs 2 00000 This group consist small shop keepers industrial

workers and small land holding farmers Though they earn

more than deprived class but half of their money goes for

basic amenities and food

3 Seekers earn between Rs 200000 to 500000 This class

varies largely The group contains fresh workers middle level

employees government employees and business people The

class varies widely on the age attitude and other factors

4 Strivers belong to the group who earn between Rs 500000 to

1000000 People in this category are considered very

successful The group contains business people large farmers

senior government officials and professionals Their earnings

are enough to fill their apatite of materials They are leading the

consumption led growth in India

5 Global Indians are earning more than Rs 1000000 This group

is comprised of senior government officials professionals

business people and top business executives India is

witnessing the growth in this class They are truly global they

purchase international brands and have international cuisine

II Social factors

Human beings are social animals They live and interact with other

people Therefore there is a chance of influence by others on their

opinions Marketers like to identify such influential persons or groups

of consumer Generally such groups are classified into two major

groups namely reference groups and family

Reference groups are used in order to evaluate and determine the

nature of a given individual or other groups characteristics and

Marketing Management Unit 5

Sikkim Manipal University Page No 83

sociological attributes Reference groups provide the benchmarks and

contrast needed for comparison and evaluation of group and personal

characteristics ldquoReference groups are groups that people refer to

when evaluating their own qualities circumstances attitudes values

and behaviors - William Thompson amp Joseph Hickey Society in

Focus 2005rdquo Reference groups act as a frame of reference to which

people always refer to evaluate their achievements their role

performance aspirations and ambitions

Family Indian culture gives utmost importance to the family People

discuss with their family before purchasing the valuable items Wife

children and parents influence the decisions of the family Therefore

many companies use either whole family or kids in their promotional

programs

Figure 51 Figure 52

Godrej introduced memory back up auto washing machine They have

shown the family in the advertisement who are enjoying without any

problems of washing clothes In the second advertisement Dabur

chyavanprash uses kids in their advertisements The target customers are

used with celebrity to provide necessary image and convey the attributes of

the product

III Personal factors

Individual factors like age occupation lifestyle and personality influence

the consumer decision making We discussed age and occupation

Marketing Management Unit 5

Sikkim Manipal University Page No 84

factors and their application earlier in the marketing environment unit

We will discuss lifestyle and its influence on the consumer in the

segmentation unit In this section we will focus on the personality and its

influence on the consumer decision making process Personality is the

image of people‟s traits Traits include Self confidence Dominance

autonomy defensiveness adaptability and aggressiveness Many

companies used these concepts in their marketing communications

Bajaj pulsar used muscularity to highlight its image (definitely male) Fair

and lovely and stay free tried to highlight 21st century Indian girl and their

aspirations in their communications

IV Psychological factors

Motivation

Abraham Maslowrsquos ldquoNeed Hierarchy Theoryrdquo

One of the most widely mentioned theories of motivation is the hierarchy of

needs put forth by psychologist Abraham Maslow Maslow saw human

needs in the form of a hierarchy ascending from the lowest to the highest

and he concluded that when one set of needs is satisfied this kind of need

ceases to be a motivator As per his theory these needs are

i Physiological needs These are important needs for sustaining the

human life Food water warmth shelter sleep medicine and

education are the basic physiological needs which fall in the primary

Marketing Management Unit 5

Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

Marketing Management Unit 5

Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

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Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

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Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

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pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 4: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 83

sociological attributes Reference groups provide the benchmarks and

contrast needed for comparison and evaluation of group and personal

characteristics ldquoReference groups are groups that people refer to

when evaluating their own qualities circumstances attitudes values

and behaviors - William Thompson amp Joseph Hickey Society in

Focus 2005rdquo Reference groups act as a frame of reference to which

people always refer to evaluate their achievements their role

performance aspirations and ambitions

Family Indian culture gives utmost importance to the family People

discuss with their family before purchasing the valuable items Wife

children and parents influence the decisions of the family Therefore

many companies use either whole family or kids in their promotional

programs

Figure 51 Figure 52

Godrej introduced memory back up auto washing machine They have

shown the family in the advertisement who are enjoying without any

problems of washing clothes In the second advertisement Dabur

chyavanprash uses kids in their advertisements The target customers are

used with celebrity to provide necessary image and convey the attributes of

the product

III Personal factors

Individual factors like age occupation lifestyle and personality influence

the consumer decision making We discussed age and occupation

Marketing Management Unit 5

Sikkim Manipal University Page No 84

factors and their application earlier in the marketing environment unit

We will discuss lifestyle and its influence on the consumer in the

segmentation unit In this section we will focus on the personality and its

influence on the consumer decision making process Personality is the

image of people‟s traits Traits include Self confidence Dominance

autonomy defensiveness adaptability and aggressiveness Many

companies used these concepts in their marketing communications

Bajaj pulsar used muscularity to highlight its image (definitely male) Fair

and lovely and stay free tried to highlight 21st century Indian girl and their

aspirations in their communications

IV Psychological factors

Motivation

Abraham Maslowrsquos ldquoNeed Hierarchy Theoryrdquo

One of the most widely mentioned theories of motivation is the hierarchy of

needs put forth by psychologist Abraham Maslow Maslow saw human

needs in the form of a hierarchy ascending from the lowest to the highest

and he concluded that when one set of needs is satisfied this kind of need

ceases to be a motivator As per his theory these needs are

i Physiological needs These are important needs for sustaining the

human life Food water warmth shelter sleep medicine and

education are the basic physiological needs which fall in the primary

Marketing Management Unit 5

Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

Marketing Management Unit 5

Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

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Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

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Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

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Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

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Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 5: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 84

factors and their application earlier in the marketing environment unit

We will discuss lifestyle and its influence on the consumer in the

segmentation unit In this section we will focus on the personality and its

influence on the consumer decision making process Personality is the

image of people‟s traits Traits include Self confidence Dominance

autonomy defensiveness adaptability and aggressiveness Many

companies used these concepts in their marketing communications

Bajaj pulsar used muscularity to highlight its image (definitely male) Fair

and lovely and stay free tried to highlight 21st century Indian girl and their

aspirations in their communications

IV Psychological factors

Motivation

Abraham Maslowrsquos ldquoNeed Hierarchy Theoryrdquo

One of the most widely mentioned theories of motivation is the hierarchy of

needs put forth by psychologist Abraham Maslow Maslow saw human

needs in the form of a hierarchy ascending from the lowest to the highest

and he concluded that when one set of needs is satisfied this kind of need

ceases to be a motivator As per his theory these needs are

i Physiological needs These are important needs for sustaining the

human life Food water warmth shelter sleep medicine and

education are the basic physiological needs which fall in the primary

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Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

Marketing Management Unit 5

Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 6: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 85

list of need satisfaction Maslow was of an opinion that until these

needs were satisfied to a degree to maintain life no other motivating

factors will work

ii Security or Safety needs These are the needs to be free of physical

danger and of the fear of losing a job property food or shelter It also

includes protection against any emotional harm

iii Social needs Human beings are social animals They strive to be in

the society In this type of needs people will try to satisfy their needs

for affection acceptance and friendship

iv Esteem needs According to Maslow once the people satisfied with

social needs They would like to have esteem needs This category

includes power prestige status and self-confidence needs It includes

both internal esteem factors like self-respect autonomy and

achievements and external esteem factors such as states recognition

and attention

v Need for self-actualization Maslow regards this as the highest need

in his hierarchy It is the drive to become what one is capable of

becoming it includes growth achieving one‟s potential and self-

fulfillment It is to maximize one‟s potential and to accomplish

something

Marketer is interested in finding what state of need hierarchy the consumer

is in and what type of product to be developed to suit his or her needs If

person needs security for his car than the mileage then auto companies

should highlight that benefit in their marketing communications

Activity 1

You are asked to book a hotel in your city for a period of 2 weeks by your

friend who is an American citizen What are the various cultural social

and personal factors that you think will affect your friend in his choice of

hotel

Perception

It is the process of acquiring interpreting selecting and organizing sensory

information

Marketing Management Unit 5

Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 7: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 86

Explanation of the definition stimulus is generated by hearing smelling

seeing touching and tasting People develop stimulus about product or

services through any of the above themes and creates an image in the

mind

The marketing implication of the definition Marketer researches his

consumer profile and communicates the product or service messages either

through radio demo or television By seeing hearing or experiencing the

product or service consumer will develop an image in the mind The

message given by company may pass through three different selection

procedures

a) Selective attention The habit of the people to analyze the information

completely and interpreting it They develop the perception about the

product or service only after complete analysis This is very difficult

group to handle as they request for more information

b) Selective distortion the phenomena in which consumer will have

predispositions and interpret the organizations information as they like it

This type of perception is both effective and non effective for the

company If consumer understands the wrong message in a right way it

is advantageous but if he understand right message in wrong way then

company will be under trouble

c) Selective retention consumer will not remember all the points informed

by the company Heshe may remember the good points of company

and forget the negative points of the company

53 Types of Buying Decision Behavior Henry Assael Model

Figure 53

High Involvement Low involvement

Significant difference

between brands

Complex buying

behavior

Variety seeking buying

behavior

Few differences between

brands

Dissonance

reducing buying

behavior

Habitual buying behavior

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 8: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 87

Complex buying behavior Customers who are representing this behavior

are highly involved in the purchase of the product or service The process

became complex as difference between brands are very high For example

customer who wants to purchase refrigerator would like to know the

meanings of defrosting door lock digital temperature control etc The price

of the product usually high let me show you the comparison of three brands

and significant difference between them

Table 51

LG GR T-282

GVGE

Akai D186

TT DX

Electrolux

Kelvinator 386

Defrost system

Door Lock

Adjustable Shelves

Moisture and

Humidity Control

Deodorizing Ability

Water Dispenser

Defrost system

From the above example it is clear that marketer should first develop the

belief about the brand provide the information and differentiate the

company brand from others In the above example you can see both Akai

and LG don‟t have water dispenser while Electrolux have Both LG and

Electrolux have moisture and humidity control while Akai lacks it Customer

would like to know what these features are and how they add value to the

product

Dissonance reducing buying behavior

The behavior exhibited by the customer when product purchase requires

high involvement but only few differences exist For example customers

who want to purchase CTV will not find many differences between the

brands but the price of the product and its technicality makes customer to

involve more One of the major disadvantages of this type of behavior is

customer will show post purchase dissonance which is very difficult to

control

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 9: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 88

Variety - seeking buying behavior

When there are significant difference between the brands existing but

customer will not involve more while purchasing marketer identify this

behavior as variety seeking buying behavior Let us discuss the purchasing

behavior of customer for biscuits There are many varieties of biscuits

available One can purchase salt biscuits cream biscuits Marie biscuits

and milk biscuits of Britannia Parle ITC sun feast and others The customer

who purchased Britannia tiger earlier may purchase Sun feast cream biscuit

next time This doesn‟t mean that quality of Britannia tiger is inferior to other

brands but customer would like to try the varieties available in the market In

this situations marketer should undertake following steps

a The market leader should encourage customers to buy repeatedly

b Make the product available and visible to the customer in the shopping

places

c The firm who are not market leader should come out with sales

promotion techniques to encourage customer to purchase the product

Habitual buying behavior

The low involvement between the brands and few differences between the

brands leads to the habitual buying behavior For example spice powder

marketed by MDH Everest or MTR have very few difference between them

and customer do not search the information to purchase particular product

Marketers whose customer represents this category should follow below

listed strategies

a Use price and sales promotions to stimulate product trial

b Use more visual aspects than the wordings in the advertisements

c Television is the better media for this type of products

d Use classical conditioning theory to create advertisements

Activity 2

When you have to buy toothpaste what factors do you consider before

making a decision to buy a particular brand What kind of perception do

you have about the particular toothpaste

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 10: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 89

Self Assessment Questions

1 Religion is one of the __________ factor that influence consumer

behavior

a Cultural

b Social

c Personal

d Psychological

2 Seekers income varies between

a 90000 to 200000

b 200000 to 500000

c 500000 to 1000000

d None of these

3 The habit of the people to analyze the information completely and

interpreting it is called as _____________

4 Dissonance reducing behavior is

a Significant difference between brands and high involvement

b Significant difference between brands and low involvement

c Few difference between the brands and high involvement

d Few difference between the brands and low involvement

5 The process of acquiring interpreting selecting and organizing sensory

information is called as _____________

54 Consumer Buying Decision Process

After discussing the factors those influence the buying behavior now we

will discuss the consumer decision making process Consumer passes

through five different stages while purchasing the product

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 11: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 90

Figure 54

1 Need recognition customer posses two type of stimuli‟ at this juncture

One is driven by the internal stimuli and another is external stimuli The

examples of internal stimuli are customer‟s desire attitude or perception

and external stimuli are advertising etc From both stimuli customers

understand the need for the product Here marketer should understand

what customers needs have that drew customers towards the product

and should highlight those in the communication strategy

2 Information search In this stage customer wants to find out the

information about the product place price and point of purchase

Customer collects the information from different sources like

a Personal sources Family friends and neighbors

b Commercial sources Advertising sales people dealers packaging

and displays

c Public sources mass media and consumer rating agencies

d Experiential sources Demonstration examining the product

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 12: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 91

In this stage marketer should give detailed information about the

product The communication should highlight the attributes and

advantages of the product in this stage so that he created the positive

image about the product

3 Evaluation of alternatives After collecting the information consumers

arrive at some conclusion about the product In this stage he will

compare different brands on set parameters which he or she thinks

required in the product The evaluation process varies from person to

person In general Indian consumer evaluate on the following

parameters

a Price

b Features

c Availability

d Quality

e Durability

At this stage marketer should provide comparative advertisements to

evaluate the different brands The advertisement should be different for

different segments and highlight the attribute according to the segment

4 Purchase decision

In this stage consumer buy the most preferred brand In India

affordability plays an important role at this stage Organizations‟ bring

many varieties of the products to cater to the needs of customers

5 Post purchase behavior

After purchasing the product the consumer will experience some level of

satisfaction and dissatisfaction The consumer will also engage in post

purchase actions and product uses of interest to the marketer The

marketer‟s job does not end when the product is bought but continues

into the post purchase period Customer would like to see the

performance of the product as he perceived before purchase If the

performance of the product is not as he expected then he develops

dissatisfactions Marketer should keep an eye on how consumer uses

and disposes the product In some durable goods Indian consumer want

resale value also Many automobile brands that were not able to get

resale value lost their market positions

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 13: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 92

55 Buyer Decision Process for New Products

The buyer‟s decision for existing products and new products varies You

already seen in the existing product buying decision process consumers

have the option to search for the information and evaluate them In the new

product such options don‟t exist Therefore we should understand how

consumer comes to know about the product Kotler defined this process as

adoption process According to Philip Kotler Adoption is bdquoThe mental

process through which an individual passes from first hearing about an

innovation to final adoption‟

Adoption process

Figure 55

1 Awareness the consumer became aware of the product but lacks

information about it

2 Interest By this stage previous information is available consumer

shows interest to get the information about the product

3 Evaluation After receiving the information consumer analyzes the

benefits of new products over any existing products or substitutes and

decides whether to buy or not

4 Trial The consumer tries the new product on a small scale to improve

his or her estimate of its value

5 Adoption In this stage consumer decides to make full and regular use

of the product

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 14: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 93

Adoption rate

Figure 56

The adoption of new product varies from individual to individual

1 25 of the consumers adopt any new product that enters to the market

These consumers are status conscious people Marketer should

highlight how the new product will bring the esteem to the consumer

2 135 of the customers fall into the early adopter categories In this

categories customer observed the advantage of the new product and the

moment the price of the product falls into the affordable category they

buy the product

3 The next group is the biggest one in the adoption process These group

customers are attracted towards the benefits of the product They make

sure that there are no technical or general problems associated with the

product This group contains 34 of the total customers

4 This group consist 34 of customers The group looks for the quality

product at the affordable prices

5 The final group is called as laggards These are traditional and price

conscious people They often take lot of time to adoption of the product

Activity 3

List out the factors that would make you or your neighbors to watch

movies in multiplexes rather than go to cinema theaters

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 15: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 94

Self Assessment Questions

6 Sales people are _______________sources of information

a Public

b Personal

c Commercial

d Experiential

7 The third stage in the adoption process is

a Awareness

b Interest

c Evaluation

d Trial

8 The customer group who adopt the new product at the end are called

as_______________

9 ________________ of consumers belongs to early adopter category

10 Customer satisfaction or dissatisfaction is determined in _______ stage

of consumer decision process

a Information search

b Evaluation of alternative

c Purchase

d Post purchase

56 Buying Motives

bdquoThe thoughts feelings emotions and instincts that induces customer to buy

a product are called as buying motives‟

According to Prof DJ Duncan bdquobuying motives are those influences or

considerations which provide the impulse to buy induce action and

determine choice in the purchase of goods and services‟

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 16: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 95

Classification of buying motives

Figure 57

1 Product buying motives are those influences and reasons which

prompt a buyer to choose a particular product in preference to others It

may be design shape dimension size color package etchellip

Product buying motives are further classified as

a Emotional product buying motive and

b Rational product buying motive

a Emotional product buying motives in which buyer decides to

purchase a product without thinking over the matter logically and

carefully Buyer takes the decisions on the emotions Following

factors provides the list that influence the emotional product buying

motives

1 Customer attaches the pride with the product

2 Customer try to imitate form others

3 Purchase d the goods for affection on any family member

4 Products that provide comfort are usually purchased on the

emotions

5 Sexual appeal products are brought on emotional product

motives

Emotional patronage

buying motive

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 17: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 96

6 The product those used as recreation hunger or habit products

are usually bought emotionally

7 Products those provide distinctiveness or individuality

b Rational product buying motives When buyer examines pros and

cons of purchasing a product and takes decisions then the behavior

is called as rational product buying motives Buyers will be looking

for any of the following factors before taking rational decisions

1 The safety or security features provided by the product

2 The value for money provided by the product

3 Suitability and utility of the product

4 Durability of the product

5 Convenience of the product

2 Patronage buying motives are those considerations or reasons that

make a buyer patronage a particular shop in preference to other shops

while buying a product

Patronage buying motives are classified into two categories They are

a Emotional patronage buying motives

b Rational patronage buying motives

a Emotional patronage buying motives are patronizing a particular

shop without logical thinking or reasoning Emotional patronize

buying motives include the following decisions

1 Appearance of the shop

2 Visual merchandising in the shop

3 Reference groups influence about one particular shop

4 Shopping in a big mall is a prestige issue

5 Imitating the other reference groups‟ members

b Rational patronage buying motive will arises after buyer analyzing

the shop carefully and providing the information to reference group

members Rational patronage buying motives include the following

1 Convenience of the shop to the buyers

2 Value for money provided by the shops

3 Financial schemes and facilities provided by the shop

4 Availability of wide range of goods

5 Reputation of the shop in the area

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 18: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 97

6 Sales force efficiency to convince the customer

7 Services provided by the sales executives

Activity 4

Point out the buying motives of a person known to you who is interested

to purchase a mobile phone or has recently purchased one

57 Buyer Behavior Models

The influence of social sciences on buyer behavior has prompted marketing

experts to propound certain models for explaining buyer behavior Broadly

they include the economic model the learning model the psychoanalytical

model and the sociological model

1) The Economic Model According to the economic model of buyer

behavior the buyer is a rational man and his buying decisions are totally

governed by the concept of utility If he has a certain amount of

purchasing power a set of needs to be met and a set of products to

choose from he will allocate the amount over the set of products in a

very rational manner with the intention of maximizing the utility or

benefits

2) The Learning Model According to the learning model which takes its

cue from the Pavlovian stimulus response theory buyer behavior can be

influenced by manipulating the drives stimuli and responses of the

buyer The model rests on man‟s ability at learning forgetting and

discriminating The stimulus response learning theory states that there

develops a bond between behavior producing stimulus and a behavior

response (S R Bond) on account of the conditioning of behavior and

formation of habits This theory may be traced to Pavlov and his

experiments on salivating dogs Pavlov‟s experiments brought out

associations by conditioning

In his well known research with dogs a bell was rung every time food was

served to a dog Eventually the dog started salivating each time upon

hearing the bell though no food was served The dog‟s behavior is

conditioned it is related to behavior-producing stimulus (bell ringing) and

behavior response (salivation) The SR bond so established causes a set

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 19: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 98

pattern of behavior learnt by the object ndash dog In terms of consumer

behavior an advertisement would be a stimulus whereas purchase would

be a response

Learning Process According to the stimulus-response theory learning is

dependent on drive cue (stimulus) response and reinforcement

Drive Drive may be defined as any strong stimulus that impels action It

arouses an individual and keeps him prepared to respond The drives may

be classified as primary drives and secondary drives Primary drives are

based upon innate physiological needs such as thirst hunger pain

avoidance and sex The secondary drives are based upon learning They

are not innate and are derived from the primary drives These include the

desire for money fear pride rivalry etc

Cue Cue or stimulus may be defined as any object in the environment

perceived by the individual The aim of the marketing man is to find out or

create the cue of sufficient importance that it becomes the drive stimulus or

elicits other responses appropriate to his objective Here the objective is to

find out those conditions under which a stimulus will enhance the chances of

eliciting a particular kind of response

Response Response is an answer to a given drive or cue When a man

feels thirsty he attempts to get water at any cost Here attempt to get water

is a response to the primary drive of thirst ldquoResponse also includes

attitudes familiarity perception and other complex phenomenardquo Responses

may be generalized or discriminatory Generalized response refers to a

uniform response to similar though not identical stimuli Discriminatory

response refers to the selective response to similar stimuli Undifferentiated

products such as cigarettes and detergents normally elicit generalized

consumer responses but by huge advertising outlays companies try to

induce consumers to perceive differences in brands and to make

discriminatory responses

Reinforcement Reinforcement or reward means reduction in drive and

stimulus It has been defined as ldquoenvironmental events exhibiting the

property of increasing the probability of occurrence of responses they

accompanyrdquo Thus when consumption of a product or a brand of product

leads to satisfaction of the initiating need (drivestimulus) there is

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 20: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 99

reinforcement If at some later date the same needs are aroused the

individual will tend to repeat the process of selecting and getting the same

product or brand of product Each succeeding time that product or brand

brings satisfaction further reinforcement takes place thus further

increasing the possibility that in future also the same product or brand will

be bought This type of behavioral change increasing possibility that an act

will be repeated is called learning reinforcement increases the rapidity and

vigor of learning

3) The Psychoanalytical Model The psychoanalytical model draws from

Freudian Psychology According to this model the individual consumer

has a complex set of deep-seated motives which drive him towards

certain buying decisions The buyer has a private world with all his

hidden fears suppressed desires and totally subjective longings His

buying action can be influenced by appealing to these desires and

longings The psychoanalytical theory is attributed to the work of

eminent psychologist Sigmund Freud Freud introduced personality as a

motivating force in human behavior According to this theory the mental

framework of a human being is composed of three elements namely

1 The id or the instinctive pleasure-seeking element It is the reservoir

of the instinctive impulses that a man is born with and whose

processes are entirely subconscious It includes the aggressive

destructive and sexual impulses of man

2 The superego or the internal filter that presents to the individual the

behavioral expectations of society It develops out of the id

dominates the ego and represents the inhibitions of instinct which is

characteristic of man It represents the moral and ethical elements

the conscience

3 The ego or the control device that maintains a balance between the

id and the superego It is the most superficial portion of the id It is

modified by the influence of the outside world Its processes are

entirely conscious because it is concerned with the perception of the

outside world

The basic theme of the theory is the belief that a person is unable to

satisfy all his needs within the bounds of society Consequently such

unsatisfied needs create tension within an individual which have to be

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 21: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 100

repressed Such repressed tension is always said to exist in the sub-

conscious and continues to influence consumer behavior

4 The Sociological Model According to the sociological model the

individual buyer is influenced by society or intimate groups as well as

social classes His buying decisions are not totally governed by utility he

has a desire to emulate follow and fit in with his immediate environment

5 The Nicosia Model In recent years some efforts have been made by

marketing scholars to build buyer behavior models totally from the

marketing man‟s standpoint The Nicosia model and the Howard and

Sheth model are two important models in this category Both of them

belong to the category called the systems model where the human

being is analyzed as a system with stimuli as the input to the system and

behavior as the output of the system Francesco Nicosia an expert in

consumer motivation and behavior put forward his model of buyer

behavior in 1966 The model tries to establish the linkages between a

firm and its consumer ndash how the activities of the firm influence the

consumer and result in his decision to buy The messages from the firm

first influence the pre-disposition of the consumer towards the product

Depending on the situation he develops a certain attitude towards the

product It may lead to a search for the product or an evaluation of the

product If these steps have a positive impact on him it may result in a

decision to buy This is the sum and substance of the bdquoactivity

explanations‟ in the Nicosia Model The Nicosia Model groups these

activities into four basic fields Field one has two sub-fields the firm‟s

attributes and the consumer‟s attributes An advertising message from

the firm reaches the consumer‟s attributes Depending on the way the

message is received by the consumer a certain attribute may develop

and this becomes the input for Field Two Field Two is the area of

search and evaluation of the advertised product and other alternatives If

this process results in a motivation to buy it becomes the input for Field

Three Field Three consists of the act of purchase And Field Four

consists of the use of the purchased item

58 Summary

Mckinsey consultancy classified Indian consumers into five categories

namely deprived aspires seekers strivers and global Indians

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 22: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 101

Individual factors like age occupation lifestyle and personality influence

the consumer decision making

People have two types of buying motives - rational buying motives and

patronage buying motives

There are five important Consumer behavior models namely the

Economic model the Learning model the Psychoanalytic model

Sociological model and Nicosia model

List of Key Terms

Buyer behavior

Need hierarchy

Consumer dissonance

Buying motives

Consumer decision-making process

Adoption rate

Buyer behavior models

59 Terminal Questions

1 Explain the characteristics that affect consumer behavior

2 Discuss the types of consumer buyer behavior with the help of Henry

Assael model

3 Explain the consumer decision making process

4 Discuss the buyer decision strategies for new products

5 Write a note on buying motives

510 Answers

Answers to Self Assessment Questions

1 Cultural

2 200000 to 500000

3 Selective attention

4 Few difference between the brands and high involvement

5 Perception

6 Commercial

7 Evaluation

8 Laggards

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56

Page 23: SLM-Unit-05-MB0046

Marketing Management Unit 5

Sikkim Manipal University Page No 102

9 135

10 Post purchase

Answer to Terminal Questions

1 Refer 52

2 Refer 53

3 Refer 54

4 Refer 55

5 Refer 56