THE INDIVIDUAL CONSUMER AND BUYING BEHAVIOUR AND MARKETING IMPLICATIONS

CB – UNIT 3

Unit 3THE INDIVIDUAL CONSUMER AND BUYING BEHAVIOUR AND MARKETING IMPLICATIONS

CONSUMER BEHAVIOUR PRESENTATION

PRESENTED BY:

NIKITA SANGHVIBHARAT MAHESHWARINIRMAL GAJJAR

CB – UNIT 3 STEVENS BUSINESS SCHOOL

CONTENT

1. Consumer Perception

2. Learning

3. Attitudes

4. Motivation

5. Personality

6. Psychographics, Values & Lifestyles

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Chapter 5

PERSONALITY

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DEFINITION

1. Those inner psychological characteristics that both determine & reflect how a person responds to his or her environment.

Source: Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th Edition.

2. Patterns of individual behaviour that are consistent & enduring

Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.

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THE NATURE OF PERSONALITY

Personality reflects individual differences

Personality is consistent and enduring

Personality can change

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Personality reflects individual differencesAn individual’s personality is a unique combination

of factors; no two individuals are exactly alike.

Personality is a useful concept because it enables

us to categorise consumers into different groups on

the basis of a single trait or a few traits.

Eg. Ethnocentrism (willingness to accept/reject the

foreign-made object)

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Personality is consistent and enduringMarketers learn which personality characteristics

influence specific consumer responses and attempt

to appeal to relevant traits inherent in their target

group of consumers.

E.g. Sister taking care of brother.

Though personality may be consistent, consumption

behaviour often varies considerably due to

psychological, socio-cultural & envt. factors that

affect behaviour.

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Personality can changeUnder certain circumstances, personalities change.

Personality change as a part of gradually maturing process.

Personality stereotypes may also change over time Personality convergence is occurring between men &

women

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PERSONALITY PERSPECTIVE

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Biological

Psychoanalytic

Dispositional

Learning

Humanistic

Cognitive


Biological Perspective on PersonalityThere are three general thrusts to the biological perspective:

Many personality characteristics are genetically determined

Behavioural tendencies derive from our evolutionary history

Human behaviour produced is by a complex biological system (e.g. hormones, neurotransmitters)

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Psychoanalytic Perspective on PersonalityDeveloped initially by Sigmund Freud

Much of the explanation for human behavior, which is often bizarre and seemingly contradictory, lies largely hidden in the unconscious, and is the result of how a person negotiates conflicting, deep-rooted desires and instincts.

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Dispositional Perspective on PersonalityA dispositional approach to personality emphasizes:

“qualities that people carry around with them, that are somehow part of them” (Carver & Scheier, 2000, p.54)

“a person’s inherent qualities of mind and character”

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Learning Perspective on Personality Personality is an accumulated set of learned tendencies over a

lifetime (Carver & Sheier, 2000).

Personality is susceptible to molding, grinding, and polishing by �the events that from the person’s unique and individual history �(Carver & Scheier, 2000).

Assumption: All behaviour is learned through experiences and by interaction with the environment.

The learning perspective views a person as entering the world as a tabula rasa (blank slate), although it acknowledges that there are instincts and pre-set responses to stimuli, as well as a preference for pleasure and a desire to avoid pain.

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Humanistic Perspective on Personality

Humanism is a philosophical movement that emphasizes

the personal worth of the individual and the centrality of

human values.

The Humanistic approach rests on the complex

philosophical foundations of existentialism, and

emphasizes the creative, spontaneous and active nature

of human beings.

This approach is very optimistic and focuses on noble

human capacity to overcome hardship and despair.

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Cognitive Perspective on Personality The cognitive perspective is that personality is a person's

mental organization.

People are who they are because of the way they think, including how information is attended to, perceived, analyzed, interpreted, encoded and retrieved.

People tend to have habitual thinking patterns which are characterized as personality.

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REVIEW OF PERSONALITY PERSPECTIVES

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Perspective Strength Weakness

BiologicalTestable theories with increasing validity & efficacy

Doesn�t grapple with �personhood� & sense of personal self

Psychoanalytic Attention to unconscious

Unverifiable?Sexist?

Dispositional

Good individual assessments techniques; Trait vs. Type approach

May label people on basis of scores; Overly-reliant on self-report instruments

Learning Scientific analysis & practical application

Overlooks IDs present from birth

Humanistic Optimistic, growth-oriented

Ignores scientific method

Cognitive Captures active nature of human thought Ignores unconscious


THEORIES OF PERSONALITY

Freudian Theory

Neo-Freudian Personality Theory

Trait Theory

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Freudian TheorySigmund Freud’s Psychoanalytic Theory of

Personality

Base: Unconscious needs or drives

(biological drives) are at the heart of human

motivation & personality

Id, Superego & Ego are the three interlacing system.

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Freudian Theory

Neo-Freudian

Personality Theory

Trait Theory

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Freudian Theory



Freudian Theory

Neo-Freudian

Personality Theory

Trait Theory

EgoId

Superego

Id• Warehouse of primitive & impulsive drives• No concern for the specific means of

satisfactionSuperego• Individual’s internal expression of society’s

moral & ethical codes of conduct• Restrains the impulsive forces of the id

Ego• Individual’s conscious control• Balance between id & superego


Freud’s View of the Mind: The Mental Iceberg

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ID

SUPEREGO

EGO

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Neo-Freudian Personality TheorySocial relationships are fundamental to the

formation & development of personality

1. Alfred Adler:

Human beings as seek to attain various rational goals

Much emphasis on the individual's efforts to overcome feelings of inferiority

2. Harry Stack Sullivan:

People continuously attempt to establish significant and rewarding relationships with others.

Concerned with the individual's efforts to reduce tensions, such as anxiety.



Freudian Theory

Neo-Freudian

Personality Theory

Trait Theory

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3. Horney’s theory : the CAD

Compliant: move towards others

Aggressive: move against others

Detached: move away from others


Neo-Freudian Personality Theory


Freudian Theory

Neo-Freudian

Personality Theory

Trait Theory

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Trait TheoryOrientation: primarily quantitative or

empirical

Measurement of personality in terms of

specific psychological characteristics called

trait

Consumer Innovativeness

Consumer Materialism

Consumer Ethnocentrism



Freudian Theory

Neo-Freudian

Personality Theory

Trait Theory


PERSONALITY & CONSUMER DIVERSITYMarketers Implication:

Understand how personality influences consumption

behaviour because such knowledge enables to better

understand consumer & to segment and target consumers

who are likely to respond positively to their product or

service.

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CONSUMER INNOVATIVENESS & RELATED PERSONALITY TRAITS


Personality Traits

Consumer Innovati-veness

Dogmatism

Social Character

Need for Uniqueness

Optimum Stimulation

level

Variety or Novelty Seeking


Consumer InnovativenessLinked to the need for stimulation, novelty seeking

& the need for uniqueness

Global Innovativeness: Exist independent of any

context

Domain Specific Innovativeness: More narrowly

defined activity within a specific domain or product

category

Innovative Behaviour: Pattern of actions or

responses that indicate early acceptance of change

& adoption of innovations.

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DogmatismMeasurement of the degree of rigidity that

Individuals display toward the unfamiliar & toward

information that is contrary to their own established

beliefs

Eg. Mc Donald’s ad campaign: Be open to new

Possibilities (appeal to low-dogmatic people)

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Social CharacterTrait that ranges on a continuum from inner-

directedness to other-directedness

Inner- directedness: tend to rely on their own inner values or standards in evaluating new products

Other-directedness: tend to look to others for

guidance

Eg.: Apparels

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Need for Uniqueness

High NFU –

more receptive to make unique choice

not concerned about being criticized by others

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Optimum Stimulation LevelsSome prefer simple, uncluttered, calm envt.

Others prefer novel, complex & unusual experience.

High OSLs –

Engage in exploratory behaviours

Greater willingness to take risks

To try new products

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Variety or Novelty SeekingTypes of consumer variety seeking Exploratory purchase behaviour

Switching brands to experiment

Eg. Soaps, Shampoos Vicarious exploration

Securing information about a new or an alternative

Eg. Kinetic Honda-emphasized on durability Use innovativeness

Using an already adopted product in a new way

Eg. Using washing machine for making lassi

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COGNITIVE PERSONALITY FACTOR


Consumer behaviour

Need for Cognition

Visualizers versus

Verbalizers

•Measures a person’s craving for or enjoyment of thinking

•High NFC interested in rich-in product related information or description

•Low NFC are likely to be attracted to the background or peripheral aspect of an ad.

Need for Cognition

•Visualizer: prefer visual information & products that stress the visual

•Verbalizer: prefer written or verbal information or product

Visualizers versus

Verbalizers

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CONSUMPTION & POSSESSION TRAITS

CONSUMER MATERIALISM• Distinguishes

between individuals who regard possession as essential to their identities & their lives and those for whom possessions are secondary

FIXATED CONSUMPTION BEHAVIOUR• Realm of normal &

social acceptable behaviour

• Do not keep purchase of interest a secret

COMPULSIVE CONSUMPTION BEHAVIOUR• Realm of abnormal

behaviour• Addictive

consumption


BRAND PERSONALITY Consumers attribute personality-like characteristics to

different brands Provides emotional identity for brand

Functional: Dependable or rugged Symbolic: The complete man

Brand Personality Strong & Favourable Brand Strength

Eg.: Limca = Freshness

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BRAND PERSONALITY FRAMEWORK


Sincerity•Down to-earth•Honest•Wholesome•Cheerful

Excitement•Daring•Spirited•Imaginative•Up-to-date

Competence•Reliable•Intelligent•Successful

Sophistication•Upper Class•Charming

Ruggedness•Ourdoorsy•Tough


BRAND PERSONIFICATIONRecast consumers’ perception of the attributes of a product

or service into a human-like character

Eg. Scotch Brite: a helping hand.

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PRODUCT PERSONALITY ISSUESGENDER

Often used for brand personalities

Some product perceived as masculine (coffee & toothpaste) while others as feminine (bath soap & shampoo)

GEOGRAPHY

Azctual locations like banarasi saree and Arizona iced tea

Fictitious names also used such as Hidden Valley and Bear Creek

COLOR

Color combinations in packaging and products denote personality

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PERSONALITY & COLOURPersonality factors associated with specific colours

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COLOUR PERSONALITY TRAIT

Blue Commands respect, authority

Yellow Caution, novelty, warmth

Green Secure, natural,

Red Exciting, passionate, strong

Orange Powerful, affordable, informal

Brown Masculine, Informal & relaxed

White Goodness, purity, delicacy

Black Sophistication, power, authority

Silver, Gold, Platinum Regal, Wealthy


SELF & SELF-IMAGESelf-image of perceptions of self related with purchasing

behaviour of an individual

Consumer tend to approach products with images that

could enhance their self-concept

ONE OR MULTIPLE SELVES:

A consumer who acts differently in different situations or with different people

E.g.: A person is likely to behave in different ways at home, at work or with friends.

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The Make-up of the Self-Image


• How consumers in fact see themselvesActual Self-Image

• How consumers would like to see themselvesIdeal Self-Image

• How consumers feel others see themSocial Self-Image

• How consumers would like others to

see them Ideal Social Self-Image

• How consumers expect to see themselves at some specified future time

Expected Self-Image


The Extended SelfInterrelationship between consumers’ self-images & their

Possessions

Human emotions can be connected to valued possessions.

Possessions can extend the self in a number of ways:

1. Actually, by allowing the person to do things that otherwise would be very difficult to accomplish

2. Symbollically, by making the person feel better or ‘bigger’

3. By conferring status or rank

4. By bestowing feelings of immortality

5. By endowing with magical powers

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Chapter 6

PSYCHOGRAPHICS, VALUES & LIFESTYLES

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LIFESTYLE DEFINITIONLifestyle (Also known as psychographics):Consumers’ modes of living reflected in their

activities,interests & opinions

Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.

Activities: How people spend their time

Interests: What people consider important in their

environment

Opinions: What people think of themselves & the world

around themBATCH 2009-2011


LIFESTYLE DEFINITIONConstellation of individual characteristics that

reflect certain behaviour – participation in group

activities, hobbies

Source: CB, Pondicherry University

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Activities

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ACTIVITIES

Work

Hobbies

Social events

Shopping

Sports

Entertainment

Vacation

Club Membershi

p


Interests

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INTERESTS

Job

Family

Community

Fashion

Media

Achievement

Home

Food


Opinions

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OPINIONS

Personal Relations

Social issues

Business

Economics

Products

Education

Politics

Future


LIFESTYLE IMPACTS

• What type of buying behaviour is preferred?

• Foundation of time use & time preferences

• Patterns of consumption are based on lifestyle

• People sort themselves into groups based on

what they like to do – sports, reading, fishing,

music enthusiasts

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Value & Lifestyle Survey - VALS

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Principle oriented

Statusoriented

Actionoriented


VALS• Innovators: Successful, sophisticated

• Thinkers: Mature, Satisfied, Comfortable & Reflective

• Believers: Strong Principles, Proven Brand

• Achievers: Career Oriented, Practical, Premium Products

• Strivers: Trendy, Funny Material Wealth

• Experiencers: Impulsive, Young, Active, Seek Risk

• Makers: Constructive, Self-sufficient

• Survivors: Narrow-focussed Life, Concern about Safety & Security

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Ideals Motivated

Achievement Motivated

Self-expression Motivated


SOCIAL CLASSFactors Showing Social Class Differences

Authority

Income

Occupations & Achievement

Education

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CHARACTERISTICS OF SOCIAL CLASS

• Persons within a given social tend to behave

more alike.

• Social class is hierarchical.

• Social class is not measured by a single variable

but is measured as a weighted function of one’s

occupation, income, wealth, education, status,

prestige, etc.

• Social class is continuous rather than concrete,

with individuals able to move into a higher social

class or drop into a lower class.BATCH 2009-2011


PROMINENT SOCIAL CLASS

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Upper-UppersLower UppersUpper MiddlesMiddle Class

Working ClassUpper LowersLower Lowers


CHARACTERISTICS OF SOCIAL CLASSSOCIAL CLASS CHARACTERISTICS

Upper – Uppers •Inherited wealth, have well known families•Seek to buy jewellery, antiques, homes & foreign trips•Eg. Mr. Anil Ambani

Lower-Uppers •Earned high income or wealth through exceptional ability in their profession or business•Usually come from middle-class•Tend to be active in social & civic affair•Seek to buy the symbol of social status, expensive cars, homes & schooling•Eg. Late Shri Dhirubhai Ambani

Upper Middles •Possess neither family status nor unusual wealth•Concerned with career•Attend positions as professional, independent businessmen & corporate managers•Civic minded, quality market for good clothes, homes, furniture & appliance

Middle Class •Average paid white & blue-collar workers•Buy products ‘to keep up with the trends’•Spend money on ‘worth-while experiences’ for their kids

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CHARACTERISTICS OF SOCIAL CLASS

SOCIAL CLASS CHARACTERISTICS

Working Class •Pay blue collar workers, lead working class lifestyle•Depends heavily on relatives for economic & emotional support, advice on purchase, for assistance in times of trouble•Larger families, stereotype, sharp gender-role division

Upper Lowers •Working, living standard just above the poverty line•Perform unskilled work, standard of living: just APL•Perform unskilled work & are poorly paid•Educationally deficient•Maintain some level of cleanliness

Lower Lowers •Visibly poverty-stricken•Usually out of work•Not interested in finding permanent jobs•Dependent in charity for income•Homes & possessions are dirty, ragged & broken down

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IMPACT OF SOCIAL CLASS• Provides a sense of identity

• Imposes a set of normative behaviour

• Classes share values, possessions, customs & activities

• Marketing response to customers of different economic means

• Marketing to the low-income consumer

• Some marketers ambivalent as not perceived as long-term customers

• Constitutes a substantial group

• Target with value-oriented strategies

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REFERENCES1. Loudon & Della Bitta: CONSUMER BEHAVIOUR: CONCEPTS AND

APPLICATIONS, Tata McGraw Hill.

2. Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent

Publishing Co.

3. Berkman & Gilson: CONSUMER BEHAVIOUR: CONCEPTS AND STRATEGIES,

Kent Publishing Co.

4. Bennet and Kassarjian: CONSUMER BEHAVIOUR, Prentice Hall of India.

5. Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th

Edition.

6. Hawkins, Best & Concy: CONSUMER BEHAVIOUR, Tata McGraw Hill.

7. Efraim Turban, Jae Lce, David King & ---- Michael Chung: Electronic Commerce:

Managerial Perspective, Pearson Education Inc. 2000.

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THANK YOU

THE INDIVIDUAL CONSUMER AND BUYING BEHAVIOUR AND MARKETING IMPLICATIONS

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