Introduction

to
Consumer Behavior
Learning Objectives

y What is CB?
y Why is it necessary to study CB?
y Who needs to study CB?
y The ‘Dark’ side of CB
 We Are Consumers 24-7!
Why?
Because:

• We are always consuming something

(like the clothes we are wearing or the bed we are sleeping on)

• We are sometimes planning future consumption

• We are sometimes enjoying the memory of past consumption

Q. Can you think of any moments when you are NOT being a Consumer?
WHAT IS CONSUMER BEHAVIOR?

Consumer Behavior is the Mental and Physical Activities

undertaken to Acquire, Consume and Dispose the Products and
Services so as to fulfill Needs and Wants.

9Physical Activity: Buying a product; preparing a product for

consumption, etc.
9 Mental Activity: Evaluating a product in your mind
 NEED and WANTS

NEED: A Discomforting Human Condition

WANT: A Desire for a Specific Product so as to Alleviate That Condition

Q. Discussion: Which of these is a Need: Food, Clothing, Nike

shoes, Nano, Orkut etc. Why? Why Not?
 3 ESSENTIALS of CONSUMER
BEHAVIOR

1. Exchange—An interchange
between two parties where Five Resources:
each receives value ƒ Money
ƒ Time
2. Resources—Something that ƒ Physical energy
others value ƒ Knowledge & Skills
3. Value—Sum total of all benefits ƒ Social capital
we receive from a product
USER
U Utilitarian
S Social
E Ego-Identity
R Recreation/Hedonic

Discussion: Examples of Products that consumers use to receive

each Value
DOES MARKETING CREATE A NEED?

Would Marketing
Create a Need for
these products?

Discussion: Consumers who Might Buy These Products--

From Where Do They Learn/Acquire These Needs?
SOURCE DISCIPLINES for
CONSUMER BEHAVIOR

1. Anthropology
2. Sociology
3. Economics
4. Psychology
WHO SHOULD STUDY
CONSUMER BEHAVIOR

1. Marketers
2. Social Organizations
3. Public Policy Makers
4. Consumers

Discussion: Why?
WHAT IS the PURPOSE OF Marketing?

To Make Money
OR
To Create a Satisfied Customer

9Focus on Consumers’ Needs Rather Than Products

9Identify Consumers’ Latent Needs
9Understand Consumer Behavior
The Tattoo The Desire to
is Already Inside Wear a Shoe
the Consumer like this is
Already Inside
the Consumer

To satisfy the
consumer, you Tattoo : Desire
have to bring that (Tattoo as a metaphor)
tattoo out

The PURPOSE OF MARKETING is to Help

the Consumer Experience the Proverbial
Tattoo that is already Within Him/Her
The Consumer “Dark Side”
Consumer Motivation
 Learning Objectives

y Why is it necessary to understand

Consumer Motivation?
y What are the different consumer needs?
y How do we understand consumer needs?
y Emotion and its impact on motivation
y Introduction to ‘Involvement’
 C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

MOTIVATION Human
Drive to Attain a Goal
Object

DRIVE Energy That Impels Us to Act

Goal Object Something We Seek,That

Which We Judge Will Bring Us
Comfort/Value

Purposive Behavior Expenditure of Energy

toward a Goal Object
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
 C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

ORIGINS of Needs

9 Innate
9 Learned
-------------------------------
9 Biogenic
9 Psychogenic
-------------------------------

DISCUSS : Where Do Learned and Psychogenic Needs

Come From?
 C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

9Approach Motivation
9Avoid Motivation
------------------------------------------
9Approach-Avoid Conflict
9 Approach-Approach Conflict
9Avoid-Avoid Conflict

Doesn’t Every Product Present an Approach-

Avoid Conflict?
A Compromise?
Product Improvement Opportunity
…..
 Failure to achieve a
goal may result in
frustration. Some
Frustration adapt; others adopt
defense
mechanisms to
protect their ego
 Methods by which
people mentally
Defense redefine frustrating
Mechanism situations to protect
their self-images and
their self-esteem.
DEFENSE MECHANISMS

1. Rationalization
2. Projection
3. Aggression
4. Repression
5. Withdrawal
6. Regression
Needs Unveiled

y Maslow’s need hierarchy

y Murray’s list of needs
y Dichter’s consumption needs
y Trio of needs
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
Murray’s List of NEEDS

1. AUTONOMY
2. DOMINANCE
3. NURTURANCE
4. EXHIBITION
5. COGNIZANCE
6. EXPOSITION
 C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

Dichter’s List of Subconscious Motives

1. Mastery over Environment
2. Masculinity
3. Individuality
4. Status
5. Love and Affection
 C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

Trio of Needs
POWER

AFFILIATION

ACHIEVEMENT
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

RESEARCHING CONSUMER MOTIVES

Conscious Unconscious

Public 1 X
Private 2 3
1. Undisguised Questioning 3. Disguised, Unguarded
2. Disguised Questioning (Natural) response
(Conscious Projection) (Unconscious Projection)
9 Word Association
9 Third Person 9 Sentence Completion
9 Mason Haire Technique 9 Story Completion
9 Mason Haire Technique
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

The MAO Model

C.O.N.S.U.M.E.R. E.M.O.TI.O.N.S.

EMOTIONS : Sudden Surge of Feelings

This Sudden Surge produces Strong Drive to Approach the

Source of that Feeling

Thus, Emotions serve as Motivation

HEDONIC MOTIVE
„ Seeking Recreation
„ Seeking Pleasure

INTRINSIC Enjoyment
9 Sensory Pleasure
9 Aesthetic pleasure
9 Emotional Experience
9 Fun and Play
CONSUMER INVOLVEMENT

The Degree of Interest

a Consumer Finds
in a Product or object
CB Exercise
 Learning Objectives
• To empathize and appreciate the lived 
experience of the customer
• To get a vocabulary for discussing CB issues
• To appreciate the complexity of CB 
phenomena
• To debunk bias towards rational CB model
• To understand issues and problems in the 
conduct and analysis of qualitative 
interviewing for understanding the consumer
Theory of Choice 
Variation in Choice

Utilitarian
decision stage?
triggers?
problem solving?
search?

Low Involvement Hedonic

 Theory of Choice 

Choice

Brand/ Decision-
Product Influence Making Decision Sequence___________
New Old Factors Roles/Unit Trigger Search Evaluation Decision Choice

Candy bar Consid Role of

Pad of paper Sets Price
Perfume Process Rules
Car
 Theory of Choice 
Difference in Extensive, Limited, and Routinized Problem‐Solving Models

DECISION STAGE

WHEN  WHEN  NEED  INFORMATION  EVALUATION  PURCHASE  POST‐

PRODUCT  BRAND IS: AROUSAL SEARCH BEHAVIOR DECISION PURCHASE
CLASS IS: EVALUATION

EXTENSIVE  NEW
PROBLEM  NEW NEW NEED EXTENSIVE CAREFUL
SOLVING

LIMITED  NEW 
PROBLEM  FAMILIAR NEW BRAND LIMITED  CASUAL
SOLVING

ROUTINIZED  PRODUCT BY 

RESPONSE FAMILIAR FAMILIAR DEPLETED NONE EXCEPTION

AWARENESS               INTEREST               DESIRE              ACTION

KNOW                               FEEL                         DO
Variations in Consumer Choice Phenomena 
Know Æ Feel Æ Do
Utilitarian/ Trigger = gap (actual – desired)
Instrumental Active Search
Rational Use of Information; Rational Evaluation of Alternatives
Process: Extensive Problem Solving Æ routine response
Choice heuristic: “Buy the Best”
Ultimate Choice: Trade off among competing alternatives
Price as trade-off variable

Low Involvement Hedonic/Ego-Expressive

know Æ Do Æ (Feel)
Feel Æ Do Æ (Know)
Trigger = Stock depletion
Trigger = Impulse, need
Passive Search
Confirmatory Search
Limited/no evaluation of alternatives
Rationalizing evaluation of alternatives
Rational Use of Information
Process: Choice heuristic: “Buy What I like”
Expectancy – confirming
Ultimate Choice: Satisfying model
Process: Choice heuristics: “Buy the Familiar”; “Buy the Cheapest”
Ultimate Choice: Satisficing model Price as secondary concern
Price as deciding factor
Theory of Usage 

Variation in Usage
Utilitarian
Satisfaction?
Loyalty?
Relationship?
Effects?

Low Involvement Hedonic

 Theory of Usage 

Usage

Nature Length Category/

of of Brand
Relationship Loyalty Satisfaction Relationship Meaning Stressors Vulnerabilities Consequence

Jeans
Computers
Ketchup
 Variations in Usage Phenomena 
Utilitarian/ Loyalty = reward for performance
Satisfaction = (Performance minus Expectations)
Instrumental compared to alternatives
Relationship = Brand Partner Quality
Relationship => repeat, word-of-mouth, price premium

Low Involvement Hedonic/Ego-Expressive

Loyalty = Inertia, Habit Loyalty = Affective Commitment

Satisfaction = Absence of Negatives
Relationship = Behavioral Interdependence
Relationship => Predisposition to Rebuy
Satisfaction = Brand-Self Image Congruency
Relationship = Love, Commitment, Self-Concept Connection
Relationship => Trial Extensions; Word-of-Mouth
Missionary, Forgiveness,
Tolerance, Price Premium
 Marketing Considerations Across Core 
Motivational Conditions 
Utilitarian/ Keys to Continuity: Product Performance
Instrumental Provision of Information
Central Threat to Continuity: Better Performing Alternative

Hedonic/Ego-Expressive
Low Involvement

Keys to Continuity: Saliency of brand Key to Continuity: Clear, Relevant

Insured Product Availability Articulation of Brand Image
Central threat to continuity: interrupts in Central threat to continuity: change in self or
purchase cycle brand image
Issues regarding the research process
 Take‐Away
• Many useful concepts and frameworks to 
understand consumer
• Rational model often inappropriate
• At basic level, there are three motivational 
conditions: Low involvement, hedonic, 
utilitarian
• What is low involvement for A may be hedonic 
for B
• Understanding the customer is an art 
Personality
 Learning Objectives

y Personality theories and its marketing applications

y Self-concept and its applications
 P. E. R. S. O. N. A. L. I. T. Y.
A Person’s Psychological Makeup that Determines his/her
Responses to Environment/Stimuli
9 Behavior is NOT Personality
9 Even Consistent Behavior is NOT Personality
9 Personality is PSYCHOLOGICAL Makeup
UNDERLYING That Behavior

Psychological Makeup: Values, Motives, and Learned and Stored

Behavior/Response Patterns.
9 These Produce Automatic Responses (i.e., Consistent
Behaviors).
9 In Practice, from Consistent Behaviors, We Infer Personality.
P. E. R. S. O. N. A. L. I. T. Y.

y Freudian theory
y Neo-Freudian personality theory
y Trait theory
 P. E. R. S. O. N. A. L. I. T. Y.

Freudian Theory

Gratification ID EGO

SUPEREGO
 P. E. R. S. O. N. A. L. I. T. Y.

FREUDIAN THEORY of Personality

1. Id Pleasure seeking. Selfish

2. Superego Impose Morality. Conformity
3. Ego Compromise between Id and Superego. Reality

Personality Develops by How a Person Navigates Between

His/Her Id and the forces of Superego (i.e., Society’s
Desires)

That is How a Person Develops His/Her Ego/His Identity

Ad
Portraying
the Forces
of the Id
Axe Ad:
http://www.youtube.com/watch?v=
6v_eorFolHQ
P. E. R. S. O. N. A. L. I. T. Y.

Neo-Freudian Theories
y Karen Horney:
◦ Described people as moving toward others (compliant), away from
others (detached), or against others (aggressive).
y Carl Jung:
◦ Collective unconscious: A storehouse of memories inherited from our
ancestral past
◦ Believed people are shaped by cumulative experiences of past
generations
◦ Archetypes: Universally shared ideas and behavior patterns created
by shared memories
Ad Applying
Horney’s
Detached
Personality
P. E. R. S. O. N. A. L. I. T. Y.
TRAIT THEORY
A Personality TRAIT is a Characteristic Behavior.

• How Many Traits?

• Actually Thousands
• Marketers link traits to how consumers make their choices
about consumption of a broad product category - not a
specific brand
 P. E. R. S. O. N. A. L. I. T. Y.
TRAIT THEORY
Marketers’ Eight (An Arbitrary List)
1. INNOVATIVENESS—Being Predisposed to embrace new
ideas.
2. VARIETY/NOVELTY SEEKER—Desiring New and
Diverse experiences
3. HEDONISM—Seeking maximal pleasure from life
4. VANITY—Excessive pride in one’s appearance and
accomplishment
5. UNIQUENESS SEEKER—Wanting to Differentiate
Oneself
6. ETHNOCENTRISM—Believing that it is wrong to
purchase foreign-made products
7. NEED FOR COGNITION—Craving for enjoyment of
thinking
8. MATERIALISM—Acquiring and showing-off possessions
Ad Targeting
Visualizers
Ad Targeting
Verbalizers
P. E. R. S. O. N. A. L. I. T. Y.
Discussion Question

y This classic ad
starts off with the
line: “The Datsun
240-Z is not exactly
what you would call
a common site.”
y What consumer
personality trait is
this ad appealing
to?
P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
A Person’s Conception of Him/Herself
The Sum Total of All the Ideas a Person has
about Him/Herself.

1. Actual
2. Ideal
3. Social-Actual
4. Social-Ideal

Measuring Self-Concept
Image Congruity:
Self-Concept Brand-image Congruency Theory
 P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
COMPONENTS OF SELF
1. Body
2. Values and Character
3. Competence and Success
4. Social Roles
5. Personality Traits

Extended Self
¾Ethnic/Cultural identity
¾Family Identity
¾Work Organization
¾Social Networks
+
9POSSESSIONS
 P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
Read Self-Concept Descriptions in your Study Material

1. Any Comments?
2. Write Your Own
Then write: Your Self-concept as a Consumer (What Kind of a
Consumer do you think You Are?)
(e.g., spendthrift, impulsive, consummate, hedonic, experimental,
guarded, trend-seeker, Etc..)
Perception
 Learning Objectives

y Consumer Perception Process and its marketing

applications
y Positioning and its methods
 P.E.R.C.E.P.T.I.O.N
Perception. The process by which Humans become
aware of and interpret a stimulus.
 P.E.R.C.E.P.T.I.O.N
P.e.r.c.e.p.t.i.o.n. P.r.o.c.e.s.s.
Exposure Æ ATTENTION Æ INTERPRETATION
EXPOSURE How To Get it
By WISE MEDIA Selection
By Product Placement

ATTENTION Involuntary
O O Voluntary
STIMULUS FACTOR: vividness/contrast
Topic Interest/Involvement
INTERPRETATION
Depends on
Prior Stock of Knowledge
Prior Expectations
 P.E.R.C.E.P.T.I.O.N
Factors Influencing Perception
STIMULUS Characteristics:
Sensory (size, color, movement)
Information Content
CONTEXT
Store, brand name, isolation, contrast
CONSUMER
Involvement, Interest
Sensory and Cognitive Skills
Prior Knowledge
(Prior Expectations)
 P.E.R.C.E.P.T.I.O.N
ABSOLUTE AND PERCEPTUAL THRESHHOLD
Absolute Threshold: An Example

Perceptual Threshold
‰ Weber’s Law
‰ J.n.d.
¾ When You Want to Lie BELOW Perceptual Threshold
¾ And When You Want to Rise ABOVE the Threshold

(Examples)
1. Make Explicit (Product’s sensory features)
2. CHANGE
 P.E.R.C.E.P.T.I.O.N
Betty Crocker Changes Fall Below the J.N.D.
 P.E.R.C.E.P.T.I.O.N

Gradual Changes in Brand

Name Fall Below the J.N.D.
 P.E.R.C.E.P.T.I.O.N
PERCEPTUAL ORGANIZATION
‰ GESTALT

‰ FIGURE AND GROUND

‰ GROUPING
Try to remember a 13/14 digit no.
‰ CLOSURE Try to remember a 5/7 digit no.
 P.E.R.C.E.P.T.I.O.N
SUBLIMINAL PERCEPTION
Subliminal Perception. Perception of a stimulus without being
aware of it.
Mere Exposure effect: Liking due to even brief, unrecalled,
exposure.
Prior exposure creates warmth (even without memory)
Therefore, we like things we have seen before even though
we may not remember seeing them!
Automated Response
Lesson: Just Make All Stimuli elements
P L E A S A N T. .
 P.E.R.C.E.P.T.I.O.N
PERCEPTION: MARKETING APPLICATIONS
Psychology of Price Perceptions
¾ Reference Price.
¾ Assimilation vs. Contrast
¾ Price as Quality Cue

Country of Origin

Brand Image

Perceptual Maps

Sensory Marketing
 P.E.R.C.E.P.T.I.O.N
How Consumers Perceive Marketing Stimuli
BRAND IMAGE

Q. How do you change brand

image?
A. By Changing Consumer
Perceptions.
Based, of course, on the
Brand’s Reality.

Brand Image is 100%

Consumer Perception.
 P.E.R.C.E.P.T.I.O.N

PERCEPTUAL MAPS

Discuss: Why the two maps are different?

 P.E.R.C.E.P.T.I.O.N
Positioning + REPOSITIONING

POSITIONING. Consumer perception of a brand relative to

competing brands and relative to one’s goals
REPOSITIONING. The practice of changing consumer
perceptions about a brand.

ƒ POSITIONING METHODS:

¾ By Functional Benefits
¾ By Symbolic Image
¾ By User Image
¾ By Usage Situation
¾ By Competition
 P.E.R.C.E.P.T.I.O.N

Positioning + REPOSITIONING

¾ Secondary Demand Creation

¾ Primary Demand Creation

BREAKING Free from Category Restriction

 P.E.R.C.E.P.T.I.O.N
SENSORY Marketing
Creating Favorable Brand Impressions in the consumer
mind by appealing to senses
Sound
Taste
Sense of Smell
Sense of Touch
Sight
Two Approaches:
¾ 1. Varied Stimuli/Product Design
¾ 2. Unique sensory feature
 P.E.R.C.E.P.T.I.O.N

Perception Meets Marketing

SENSORY Marketing
Sound
Taste
Sense of Smell
Sense of Touch
Sight
New trend in Sensory Communication:
Cross-modality
(Example: communicating sensory pleasure of taste or smell
on printed page)
 P.E.R.C.E.P.T.I.O.N

Perceptions: bits of Wisdom

There Are No FACTS in Life, only Statements of FACTS.

There is no Objective Reality, Only Perceptions.

Sometimes Perceptions come close to reality, sometimes they

are far off.

All OUR Perceptions are TRUE.

Perceptions, NOT Reality, form the basis of our Actions.

Consumer Perceptions, Not Reality, determine the fates of

brands and of Businesses.
Molding Consumer Attitude
through
Communication
Learning Objectives

How to change attitude

How to design persuasive communication
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Theories of Attitude Molding

High-Low Involvement Theories

Heider’s Balance Theory
Theories of Attribution Theory
Self Perception Theory
ACTIVE vs. Passive Audience Theory
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Four Modes
High Involvement-THINK
High Involvement-FEEL
Low Involvement-THINK
Low Involvement-FEEL
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

HIGH-LOW INVOLVEMENT THEORIES

Attitude Change Process is

FUNDAMENTALLY DIFFERENT under
Low versus High Involvement Conditions.

Low Involvement: Peripheral Route: Low

Attention, Low Defense, Repetition is key

High Involvement: Central Route: High Attention,

High Defense, Message Content is key

Elaboration Likelihood Model

 M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Heider’s Balance Theory and Attitude Change

Scenario:
On March 25, 2007, Columbian singer Shakira gave a concert in Bombay.
Among many costume changes during the show, she also wore a
saree. (Google “Shakira in Bombay” for story and images)

Assume, hitherto you did not like a saree. Now after seeing your favorite
singer star Shakira donning it, how will your attitude toward the saree
change?

Let Heider’s Balance Theory help us predict.

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Molding Attitude Through

the Multi-Attribute DISCUSSION
Model Apply this model to changing
your attitude (in either
1. Change Perception of direction) toward:
Attribute Level (a) Starbucks
(b) The idea of wearing
2. Change Evaluation of an Bohemian clothing
Attribute’s Desirability (c) The idea of
vegetarianism
3. Introduce a New (d) Your least favorite music
Attribute band.
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

HOW LOW INVOLVEMENT ADVERTISING WORKS

Defenses are Down

Repeated Exposure
Passive processing
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Attitude toward the Ad

Nota Bene
It is NOT that the ad, and attitude
toward the ad is not that
important for a high
involvement product.
Rather that in high-involvement
situations, the ad’s role is to
create strong brand beliefs.
In contrast, in low involvement
situation, the ad attitude
directly impacts brand attitude
even when it creates no brand
beliefs.
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

APPEAL TYPES: Emotional vs. Rational, Humor, Fear,

Sexual, Two-sided vs. One-sided, Comparative
You Should Know:
a. What These types are
b. When They Work
c. When they are ineffective
d. When they can backfire
e. Any precautions
(You should fill this for each appeal type in next few
slides)
M.o.l.d.I.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

THE ROLE OF SOURCE IN PERSUASION

SOURCE CREDIBILITY
¾ Source expertise
¾ Source independence

SOURCE ATTRACTIVENESS

SOURCE SIMILARITY

Match-up Hypothesis
The Chosen Celebrity should have an image similar to
the Brand’s Desired Image
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

The idea that both

positive and negative
Sleeper
credibility effects tend
Effect
to disappear after a
period of time
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Designing Persuasive Communications

Message Structure and Presentation

y Resonance y Wordplay
y Order effects y Used to create a double
meaning when used with
a relevant picture
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Designing Persuasive Communications

Message Structure and Presentation

y Resonance y Primacy
y Order effects y Recency
y Brand name
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
FUNDAMENTAL WISDOM ON ATTITUDE MOLDING

Other people’s attitudes are important to us.

If they are negative, we will gain nothing from those
consumers.
We want them to be positive, so we may benefit from them.
That is why we are always trying to mold those attitudes. (And
others are trying to mold ours.)
But no one can mold another’s attitude.
People persuade themselves.
Attitude Molding boils down, then, to helping consumers in
their own endeavor to self-mold their attitudes.
Consumer Attitude
Learning Objectives

y How does a consumer develop an attitude?

y What does attitude do?
y How can marketers influence attitude?
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Attitude. A learned predisposition to respond to an object in a

consistently favorable/unfavorable way.

Predisposition. Pregnant with meaning

My Attitude toward:

¾ Drinking snake blood

¾ Body piercing
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.S.

Also called
Tricomponent
Attitude Model
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

FOUR FUNCTIONS of Attitudes

1. Utilitarian

2. Value-expressive

3. Ego-defense

4. Knowledge
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Also
called
Attitude
towards
Object
 The Fishbein Model: An Example
Beliefs (bi)
Brand Brand Brand
Attribute Evaluation (ei) A B C
Shock absorbent +2 +2 +1 -1
Price less than 500 -1 -3 -1 +3
Durability +3 +3 +1 -1
Comfort +3 +2 +3 +1
Desired color +1 +1 +3 +3
Arch support +2 +3 +1 -2
Total Σ bi ei score +29 +20 -6
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Incorporates
Attitude
towards
Behavior
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Change the Cognitive Component

y Change Beliefs
y Shift Importance
y Add Beliefs
y Change Ideal
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Change the Affective Component

y Classical Conditioning
y Affect toward the ad or website
y Mere exposure
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Change the Behavioral Component

y Reciprocity
◦ Door-in-the-face technique (big request first - target refuses,
then the communicator “concedes” by asking for a small favor
-target agrees)
y Scarcity - “one-day offer”, “two-days sale”, must suggest better
value
y Authority - expert endorsers
y Commitment - make the target commit to some small thing
◦ Foot-in-the-door technique (small request first)
◦ Low-balling - to commit to an attractive option first (car
deals)
◦ Even-a-penny-will-help technique
y Liking/compliments - persuasion by favorite or/and similar
endorsers
y Social validation -“statistical advertisements”(85 % of the
population)
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Attitudes. How is the concept useful to a marketing

manager?

Prediction

Diagnosis

Getting Consumer to BUY:

The Only way to get someone to buy your product is by
first creating a favorable attitude in the consumer
mind toward your product or brand.
 C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.

Attitudes. Every marketing manager must understand the

concept of attitude and know how to measure it.

As a marketer, there is no task of greater importance than to

build and sustain a positive consumer attitude.

To build and sustain positive consumer attitudes, you will need

every bit of knowledge about how attitudes are formed
and sustained.
Innovation Diffusion and
Adoption Process
 Learning Objectives
y Innovation: Meaning, What influences
adoption
y Adopter types and characteristics
y How to communicate to ensure adoption
of innovation
Defining Innovations

y Firm-oriented definitions
y Product-oriented definitions
y Market-oriented definitions
y Consumer-oriented definitions
Product-Oriented Definitions

Continuous
Innovation

Dynamically
Continuous
Innovation

Discontinuous
Innovation
 Telephone Innovations

Discontinuous Dynamically Continuous Continuous

Innovations Innovations Innovations
Telephone answering machines Hold button
Call forwarding Line-in-use indicator
Call waiting Redial button
Telephone Caller ID Auto dialing feature
Banking by telephone Touch-tone service
Call-prompting systems 800 Numbers
900 Numbers

Ability to send/receive email Switch from analog to

Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax Machine Home office systems Delayed send
(combined fax, copier, Copy function
computer printer) Paper cutter
 Product Characteristics That Influence
Diffusion
CHARACTERISTICS EXAMPLES
Air travel over train travel, cordless
Relative Advantage phones over corded telephones

Gillette MACH3 over disposable razors,

Compatibility digital telephone answering machines
over machines using tape
Electric shavers, instant puddings
Complexity
Trial size jars and bottles of new
Trialability products, free trials of software, free
samples, cents-off coupons
Clothing, such as a new Tommy Hilfiger
Observability jacket, a car, wristwatches, eyeglasses
I.N.N.O.V.A.T.I.O.N.S.
Diffusion of Innovations
I.N.N.O.V.A.T.I.O.N.S.
Innovation ADOPTER CATEGORIES
I.N.N.O.V.A.T.I.O.N.S.
Measure of Consumer
INNOVATORS
Innovativeness
• Risk takers

• Variety Seekers

• High product
Interest

• Less Well
Integrated

• More
Individualistic
 I.N.N.O.V.A.T.I.O.N.S.

CHARACTERISTICS of OTHER ADOPTER GROUPS

• Early Adopters—They Deliberate, Independent and

Quick to Assess
• Early Majority—Very Deliberative, Adopt if see no risk
• Late Majority—Very skeptical, extremely risk averse.
• Laggards—resist/postpone adopting innovations
I.N.N.O.V.A.T.I.O.N.S.
Adoption Process
The AIDA Model
An Enhanced Adoption Process Model

Discontinuation or
Rejection
Rejection

Evaluation

Pre- Adoption
existing Awareness Interest Evaluation Trial or
problem Rejection
or Need

Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
The Relative Importance of Different Types
of Information Sources in the Adoption
Process

High
Personal and
interpersonal
sources
Importance
Impersonal
mass-media
sources

Low Evaluation
Interest
Awareness

Adoption
Trial
A Theory of Communication Flow
I.N.N.O.V.A.T.I.O.N.S./News
WORD OF MOUSE BUZZ MARKETING
¾ Emails Rapid Spreading of Product
¾ Chat Rooms News thru Word-of-Mouth
¾ Weblogs ¾ Peer-to-peer marketing
¾ Public Blog Sites ¾ Viral marketing:
Spreading product acceptance
RECIPE FOR through consumers in an
SUCCESSFUL BUZZ exponential fashion
• ¾ Cyber buzz (buzz thru
• Internet)
•
•
•
Consumer Learning
Learning Objectives

y How human beings learn

y How human memory works
y How marketers help consumers learn
Consumer As A Learner
 Consumer As A Learner
Pavlovian Model of Classical Conditioning

Unconditioned Stimulus
Meat paste
Unconditioned Response
Salivation
Conditioned Stimulus
Bell

AFTER REPEATED PAIRINGS

Conditioned Stimulus Conditioned Response
Bell Salivation
 Consumer As A Learner
Example of Classical Conditioning
 Consumer As A Learner
Example of Instrumental Conditioning

Other
examples:
coupons,
sweepstakes,
thank you calls
 Consumer As A Learner
An Application of Instrumental Conditioning: Shaping

(Source: Hawkins et al, 2004)

 Consumer As A Learner
Modeling

The shot of a home buzzing with excitement. Seeing her grand father break a coconut, a
The housewarming ceremony is in progress. little girl scampers to her mother and
asks...

..."Mummy, naariyal kyon toda?" Her ...hai Aur shudhta se shakti badhti hai aur
mother explains, "Kyonki, yeh shudh... ghar mein khushiyaan aati hain."
 Consumer As A Learner
Contd:

The girl is now seen playing outside in the She takes out a bottle of Parachute, and
garden, building her own mud castle. imitating her grandfather, hits it on the ground.

And repeats her mother's words to her ...khushiyaan aati hain." Product Window:
perplexed friend, "Yeh shudh hai. Ghar Parachute. MVO: "Shudhta ki shakti."
mein...

Marketing Example?
 Consumer As A Learner

Cognitive Learning

Low Involvement Learning. High Involvement Learning

Brand name, jingles, Product benefits; Long

slogans, package message content;
recognition;
Consumer As A Learner
 Consumer As A Learner

Memory

Short Term Long Term

How Short is STM How Long is LTM
ƒ Duration ƒ Duration
ƒ Capacity ƒ Capacity
Consumer As A Learner
Consumer As A
Learner
Consumer
As A
Learner
 Consumer As A Learner

Stimulus Stimulus
Generalization Discrimination
A process wherein a A process wherein a
consumer extends a consumer perceives two
learned response for stimuli to be different and
one stimulus to consequently does not apply
another stimulus the same response to both.

Example: Store brands use a Example: Shalimar and

Parachute coconut oil
look-alike package , product
packages are designed to
line and form extension,
look different
family branding, licensing
 Consumer As A Learner
Product Line and Form Extension
 Consumer As A Learner

Repetition: Three-Hit Theory

y 3 exposures to an ad are necessary for the ad to

be effective
y The number of actual repetitions to equal three
exposures is more than 3
 Consumer As A Learner
Flip Side of Ad Repetition: Two-Factor Theory
 Consumer As A Learner
Effect of Ad Repetition Cosmetic Variations in Ads

y Advertising wearout

Substantive Variations in Ads

 Consumer As A Learner

Measures of Consumer Learning

y Recognition and Recall Measures
-Aided and Unaided Recall
y Cognitive Responses to Advertising
-Copytesting Measure
y Attitudinal and Behavioral Measures of
Brand Loyalty
Culture, Sub-Culture, Cross-Culture
Learning Objectives

y Culture: Meaning, Elements,

Characteristics
y How to understand culture
y Subculture
y Cross-culture and marketing blunders
 C.U.L.T.U.R.E.

CULTURE—Everything Humans Learn and Share as Members

of a Society

Two Essentials of Culture

¾ LEARNING
¾ SHARING

Culture vs. Nature

9Both within Ourselves
9And in the Physical world Outside us
C.U.L.T.U.R.E.

Elements of Culture
• Values Discuss
• Norms Are the following examples of
• Rituals culture or not?
• Symbols
¾ A Café Coffee Day cup of
• Customs
latte
• Myths
• Knowledge, Science, and ¾ A bar of Dove soap
Technology
¾ A TV commercial for Nike
• Laws
featuring a celebrity
• Arts
• Material Culture ¾ A print ad for a medicine
focusing entirely on medical
benefits
C.U.L.T.U.R.E.
 C.U.L.T.U.R.E.

Universal Cultural Value Dimensions

(Hofstede’s FIVE)

¾ Individualism vs. Collectivism

¾ Power Distance
¾ Uncertainty Avoidance
¾ Masculinity vs. Femininity
¾ High Context vs. Low Context
And one more from Trompenaars
¾ Universalism vs. Particularism
C.U.L.T.U.R.E.

Some Differences in Cultural Norms

¾ Offering and Sharing Discussion:

¾ Chivalry Compare these for
¾ Candid talk any two cultures you
are familiar with
¾ Informality in Social Relations
C.U.L.T.U.R.E.
CULTURAL PRACTICES

¾ RITUALS
¾ Myths
¾ Customs
Some Ancient Customs:
Dowry Price
Bride Price
Some Modern day Customs:
¾ Bridal Shower
¾ Wedding Rituals
C.U.L.T.U.R.E.

Discussion:
How do these apply
to:
a. Olympic torch
b. College
commencement
ceremony
c. Engagement ring
ceremony
C.U.L.T.U.R.E.

Grooming Ritual

Exchange
Ritual
 C.U.L.T.U.R.E.

The Measurement of Culture

y Content Analysis
y Consumer Fieldwork
y Value Measurement Instruments
 S.U.B.-C.U.L.T.U.R.E.

A distinct cultural
group that exists as an
Subculture identifiable segment
within a larger, more
complex society.
 S.U.B.-C.U.L.T.U.R.E.

Sub-Culture

y Social Class ( Upper, Middle)

y Religion (Hindus, Muslims)
y Geographic Region (North India, South India)
y Age (Children, Adults)
y Gender (Male, Female)
y Language ( Hindi, Bengali)
y Occupation ( Doctor, Engineer)
 C.R.O.S.S.-C.U.L.T.U.R.E.

The effort to
determine to what
Cross-Cultural
extent the
Consumer
consumers of two
Analysis
or more nations are
similar or different
 C.R.O.S.S.-C.U.L.T.U.R.E.
Globalization of Local Cultures

a. Global Culture: A Myth or Reality?

b. Global Culture does not mean death of Local Culture
c. Local Culture thrives side by side Global Culture
(Earlier, Local Culture existed Exclusively)
Many Customs, Behaviors are now Everywhere
d. Some consumers have embraced Global Culture.
 C.R.O.S.S.-C.U.L.T.U.R.E.
Global Versus Local…

McDonald’s customized its

products to be a part of Indian
culture

Since India’s majority Hindus

(80% of India’s population)
revere cows as sacred and 150
million of Indian Muslims do not
eat pork and beef, McD
introduced a mutton-based
“Maharaja Mac” in
India, as opposed to its flagship
beef-based Big Mac elsewhere
 C.U.L.T.U.R.E.
Enculturation

Learning from one’s own

culture has a bearing on
one’s behaviour as a
consumer
The goodness of neem leaves
gave the oppurtunity to the
marketers to introduce it in the
form of a bath soap
 C.U.L.T.U.R.E.

Acculturation
 C.U.L.T.U.R.E.
Measuring Consumer Ethnocentrism
C.U.L.T.U.R.E.

Marketing Blunders (Crossing Cultures):

¾ Lost in Translation
¾ Written Scripts
¾ Colors
¾ Numbers and Other symbols
¾ Standards of Nudity and Taboo Topics
¾ Product Consumption Differences
 C.U.L.T.U.R.E.

Marketing Mistakes in India…

 C.U.L.T.U.R.E.

International Mistakes…

Ford Fierra (ugly old woman in Spanish)

Parker Pen [It won’t embarazar you (in

Mexican..‘It won’t leak in your pocket and make
you pregnant’)]

Let it loose (In Spanish…‘Suffer from

diarrhea’)

Source:
http://www.cxo.eu.com/currentissue/article.asp?art=269413&issue=190
Reference Groups and Family
Influence
Learning Objectives
y Reference groups: Types, strong vs. weak
influence, types of influence, types of
appeal
y Opinion leadership: qualities, how to
identify them
y Family vs. household, family decision
making, consumer socialization of children
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.

Persons, groups, and Institutions one uses

as Points of Reference.
(Uses as a Guide for one’s own values and
behavior)
Referent: A person one uses as a point of
reference.
Everyone has at least one Referent, or
Reference Group.
No one lives by him/herself, for him/herself,
of him/herself.
 R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
Groups.Two or more persons sharing a common
purpose..

GROUP Members:

¾ Share Some Values

¾ Recognize Interdependency
¾ Assume Specific Roles
¾ Communicate Mutual Expectations and Evaluations
¾ Provide some rewards/punishments (tangible or
intangible)
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.

Types of Groups

¾ Primary vs. Secondary

¾ Formal vs. Informal
¾ Ascribed Vs. Choice
¾ Associative Vs. Dissociative
¾ Membership Vs Symbolic
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
Measurement of SIPI (Rate Yourself)
 Reference Group Appeals
y Celebrities
Celebrity Appeal:
Dhoni for pen
y The expert
y The “common man”
y The executive and
employee spokesperson
y Trade or spokes-
characters
y Other reference group
appeals
Types of Celebrity Appeals

TYPE DEFINITION EXAMPLE

Testimonial Based on personal usage, a Amitabh Bachchan for
celebrity attests to the quality of Navratna……(so many
the product or service years in the industry…)
Endorsement Celebrity lends his name and Shah Rukh for Santro
appears on behalf of a product or
service with which he/she may not
be an expert
Actor Celebrity presents a product or Amitabh Bachchan as
service as part of a character Father Principal(priest)
endorsement
Spokesperson Celebrity represents the brand or Aishwaraiya Rai for Loreal
company over an extended period
of time
O.P.I.N.I.O.N. L.E.A.D.E.R.S.
People Who Hold and Give an Opinion, Which is ACCEPTED by Opinion
Recipient

Two Essential Qualities: Other Characteristics of OLs:

¾Expertise ¾High Product Involvement
¾Trustworthiness ¾Recognized as Leaders
¾Socially Well–Integrated
¾More exposed to Media
¾Hold leadership positions in organizations
O.P.I.N.I.O.N. L.E.A.D.E.R.S.

IDENTIFYING
OPINION LEADERS

1. Observation Discussion
2. Self-Designation Apply these methods to
identify O.L.s for
3. Sociometry (a) For a rally on campus
4. Key-Informants (b) For an environmental
Trustworthiness awareness campaign
O.P.I.N.I.O.N. L.E.A.D.E.R.S.
Measuring Opinion Leadership
 F.A.M.I.L.Y.

Define Family
Define Household

Q. What is the Difference between a Family and

Household
Q. Is every household a family?
Q. Is every family equal to one household?
 F.A.M.I.L.Y.
FAMILY LIFE CYCLE

Discuss:
How can
Marketer
use the
FLC?
 F.A.M.I.L.Y.
FAMILY DECISION MAKING PROCESS

Discuss:
1. Can family members make
“individual” decisions?
2. Do all these steps
inevitably occur in joint
family decisions?
Eight Roles in the Family Decision-Making
Process
ROLE DESCRIPTION
Influencers Family member(s) who provide information to other members
about a product or service
Gatekeepers Family member(s) who control the flow of information about a
product or service into the family
Deciders Family member(s) with the power to determine unilaterally or
jointly whether to shop for, purchase, use, consume, or dispose of
a specific product or service
Buyers Family member(s) who make the actual purchase of a particular
product or service
Preparers Family member(s) who transform the product into a form suitable
for consumption by other family members
Users Family member(s) who use or consume a particular product or
service
Maintainers Family member(s) who service or repair the product so that it
will provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service
 F.A.M.I.L.Y.
Husband-Wife DECISION Roles

Discuss:
Which products decisions are likely to be of each type?
 F.A.M.I.L.Y.
FACTORS Influencing Spousal Roles

Discuss:

Which factors will

favor a greater role
by the husband?
Which by the wife?
 F.A.M.I.L.Y.
Family Types

1. Authoritarian
2. Neglectful
3. Democratic
4. Permissive

Discussion: How would you classify your family?

How has that affected your development as a
consumer? Would you have been a different type
of consumer if your family were of another type?
 F.A.M.I.L.Y.
Conflicts and Resolution Strategies
Discuss:
Can you give an
example of each
quadrant from
your own
experience?
 F.A.M.I.L.Y.
Consumer Socialization of Children

What do children learn about the marketplace?

Where do they learn these from—i.e., who are the
socializing agents?
Decision-making
Learning Objectives
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.

Consumer Decisions

Whether to Buy a Product at all?

What Feature (versus price) trade-offs to
Accept?
Which Brand to Buy?
Where to Buy it from?
………………..
And in Deciding on all this, How Much Effort to
Put In?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
Consumer Decision Process
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 1: What is PROBLEM RECOGNITION?
Gap Concept of Needs
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 1: What is PROBLEM RECOGNITION?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
How PROBLEM RECOGNITION Occurs?
Types of Stimuli
•A Problem Stimulus
•A Solution Stimulus
Sources of Stimuli Opportunity Recognition
•Internal Stimuli
•External Stimuli
Problem Recognition Situations Discuss:
¾Stock Depletion Student Examples
¾Life-stage Changes
¾Developing New Tastes
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH
BRANDS WE KNOW
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (Contd.)
Sources of Information
ƒ Marketer Sources
ƒ Non-Marketer Sources
Personal
Independent

Q. Which Source is
Called Advocate Source?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (Contd.)
Sources of Information

Q. Do Knowledgeable
Consumers Depend More on
Some Sources than Others
(Compared to Not-so-
knowledgeable sources)?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)
SEARCH STRATEGIES

Rules of Thumb
¾Quick Inference
¾Brand Name
¾Past Experience
¾Recommendation
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)

Simplifiers Vs. Extenders

(Depends on)
Cognitive Style
Problem Complexity
–Routine, Limited, and Extended
Are You A Simplifier or Extenders?

Q. Have You Ever Wished You Were (For a Specific Decision) an

Extender (Or Even more of an Extender)? Explain?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)

Discuss:

Place a + or – sign to indicate

each factor’s
increase/decrease
direction of influence?

Name various shopping styles

Familiarity & Expertise: Same

thing, similar effect?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)

Some Key Concepts in “Determinants of Search”

¾ Perceived Risk and Types

¾ Difference between Familiarity and Expertise
¾ Are Effects of Familiarity and Expertise
Different?
¾ Deficit Hypothesis
¾ Shopping Style
¾ Ignorance Paradox
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 3: ALTERNATIVE EVALUATION

How Do You
Know
What Features
You
Want?
Or Should want?
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.

STEP 3: ALTERNATIVE EVALUATION (contd.)

Judgment Models (Decision Rules or Models)

Compensatory Model
Non-Compensatory Models
¾ Conjunctive
¾ Disjunctive
¾ Lexicographic
¾ Elimination by Aspect (EBA)
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 3: STEP 3: ALTERNATIVE EVALUATION
(contd.)

Imperfections in
Consumer Judgment
FRAMING EFFECTS
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 3: ALTERNATIVE EVALUATION (contd.)

Imperfections in Consumer Judgment (Contd.)

TOP DOWN vs. BOTTOM UP Customization

(Which one makes you spend more?)

WHY IT HAPPENS:
ƒ Cognitive Effort
ƒ Anchoring Effect
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.

STEP 3: ALTERNATIVE EVALUATION (contd.)

Imperfections in Consumer Judgment (Contd.)
Inference Making:
1. Intra-attribute inference
2. Evaluative Consistency
3. Negative Cue
Alternative Evaluation Phase Concluded by
SATISFICING
The Chosen Alternative is NOT OPTIMUM
Yet We Are Satisfied, even Relieved

Describe Your Own “Moments of Satisficing”

 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.

How We Choose Expressive Products?

 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 4: PURCHASE
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
Decision Process by Involvement
 D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
OVERVIEW
Problem recognition opens new markets for innovative
and insightful marketers.
All consumers are satisfiers, not optimizers?
Are you an extender or a simplifier? Discuss. Is it
better to be an extender than a simplifier?
We use judgment models/decision rules all the time.
There is nothing theoretical about them
Heuristics are very handy; they serve us by allocating
our effort judiciously.
Involvement is the big arbiter of all decision
processes.
Learning Objectives
Discussion:
ƒ Have you
experienced
similar moments?
When?
ƒ What kinds of
consumer
decisions produce
second thoughts?
 Postpurchase Dissonance

y Postpurchase Dissonance: a consumer reaction after

making a difficult decision that involves doubt and anxiety
y Probability of experiencing dissonance increases based on:
◦ Degree of commitment or irrevocability
◦ Importance of the decision
◦ Difficulty in choosing
◦ Individual’s tendency to experience anxiety
 Postpurchase Dissonance

y Approaches to reduce dissonance:

◦ Increase the desirability of the brand purchased
◦ Decrease the desirability of rejected brand
◦ Decrease the importance of the purchase
◦ Reverse the purchase decision (return before use)
¾Decision Confirmation
¾Cognitive Dissonance
¾Consuming in Evaluative Mode
(vs. Mindlessly)
Discuss
1. Describe when you may
have felt the need to confirm
your decision.
2. Describe when you
consumed something in an
evaluative mode.
Future Response

Exit
Voice
Loyalty
Psychology of Satisfaction
Customer Satisfaction Outcomes
Dissatisfaction Response
 Future Response
Why Do Dissatisfied Customers NOT Leave?

SWITCHING COSTS
¾ contract investment lost
¾ New search/shopping costs
¾ New Set up costs
¾ Learning costs
¾ Performance risk
¾ No known better alternatives
¾ Some current feature lure
Consumer Complaining

Related Concepts:
ƒ Perceived Justice
ƒ Recovery
ƒ Make-Goods
Disposition Alternatives
Recycling

Which item
can you
yourself
Reduce
Reuse
Recycle
Will You?
 Product Disposal
Two-Factor Model of Recycling
Post-Choice Experience by Involvement
DISCUSSION:

How Would You Motivate Consumer Complaining?

(Should You? Why?)

How Would You Encourage Consumer Recycling?

How Would You Enhance Consumers’ Product Use

Experience?
Enhancing Post-Choice Experience

1. Free sampling helps mostly when product is significantly different;

2. Draw attention to hidden attributes (e.g., made from recycled
paper)
made from wholesome ingredients); usage instructions for full
benefits; Offer convenient product use support;
3. Usage Guide
4. Interaction quality
5. Authenticity certificate
6. Post purchase communication (To validate)
7. Aesthetic package design (if in view during Use)
8. Any Other?
Consumer as a Shopper
Learning Objectives
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Outlet Selection and Purchase

y Decision Sequence
◦ Outlet First, Brand Second
◦ Brand First, Outlet Second
◦ Simultaneous
y Influences on store evaluative criteria
◦ List and rank evaluative criteria (characteristics) when
shopping for:
x major grocery shopping trip
x buying a quart of milk in a hurry
x buying a suit
x buying a watch
x buying a newspaper
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Marketing Strategy Based on Decision Sequence

 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Shopping Motives

¾Browsing
¾Bargain Hunting
¾Socialization
¾Seeking Status
¾Self-gratification
¾Market Learning
¾Recreation
¾Acquisition

Discussion Q. What % of time that you spend in the mall do you

spend on each?
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

SHOPPING ORIENTATIONS
Task Vs. Leisure Orientation

¾ Task Oriented
¾ Leisure oriented

Four Sub-orientations of Task

Oriented Shoppers:

¾ Product Quality Shopper

¾ Economic Shopper
¾ Convenience Shopper
¾ Experience Shopper
Discussion Q. Which Type Are You?
(Get Class Distribution--By M vs. F)
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Planned or Unplanned Buying

Q. Are All Unplanned Purchases
Impulse Purchases?

Types of Unplanned Purchases:

¾ 1. Unplanned Restocking
¾ 2. Unplanned Evaluated, New
Purchases
¾ 3. Impulse purchases

Discussion. Describe Your own recent purchase of the

second type. And then the third type. Notice any
difference?
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion:
Recall and
describe your
most recent
instance of
extended
browsing.
Then check
off which
factors aided
it.
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
In-Store Purchase Behavior
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
STORE ENVIRONMENT
¾ PHYSICAL
¾ SOCIAL
Four Elements of Physical Environment

¾Design Factors—architecture, décor, furnishings Store by Chase Design Group

¾Ambient factors—sights, sounds, smells, light, music, temp, etc.

¾Layout
¾Merchandise variety and visual display

Now Can You Build a List of Elements of Social Environment?

¾ ..
¾ ...
¾…
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Store Atmosphere
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion:
Name YOUR
Stores for
each of the
orange circles
in the diagram.
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion:
Name YOUR stores at each stage
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion:
Does This Model Work For You?
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

DISCUSSION:
Name two stores, one you are more loyal to (or at least prefer more)
and one less; then rate each on the “What” and “How” factors.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

DISCUSSION:
Do Store Brands Make Stores More
Attractive? For Whom?
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion: Rate these stores: (a) Pantaloons, (b) Café Coffee Day; (c) Westside;
(d) Spencer’s (e) McDonald’s; (f) Pizza Hut
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Discussion:
Rate Yourself.
Do you believe you are
an impulse buyer? Do
your ratings confirm
that?
For what kinds of
products?
When Can Impulse
buying become an
addiction?
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

Impact of a Stockout Situation

 C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.

LAST WORD
Shopping
¾It is Necessary
¾And, for many, it is Fun. Store by Chase Design Group

Becoming the Favorite Store:

¾Recognize Consumer Diversity (in terms of shopping orientations and
shopping motives).
¾Create Atmospherics
¾Provide positive shopping experience.

Discussion: Write an essay on what your life will be like if there were
no modern-day indoor or outdoor malls and shopping plazas.
Saxonville Case
Learning Objectives
y How to determine optimal positioning for
a brand based on consumers’ motivations,
influences and values
y Understand how a 4-step process utilizing
research results can be used to determine
viable positioning alternatives
y How to recommend tactics accompanying
a positioning strategy including brand
name, product varieties, advertising and
sales promotion
Introduction
y Segmentation is the identification and
profiling of distinct groups of buyers who
might require varying product and service
mixes by examining demographic,
psychographic and behavioral differences
among buyers
y Positioning is the designing of the
company’s offering and image to occupy a
distinctive place in the mind of the target
market
Current Situation
y Market/Industry
(Since 2004, 0% vol. increase in bratwurst & breakfast, Italian sausage
9% and 15% growth in ’04 & ’05, Saxonville has flat growth in brats,
double digit decline in breakfast sausage and matched Italian usage
industry growth)
y Competition
(Mama Mia with ‘authentic Italian heritage’, Hertfordshire ‘freshly and
locally made’, Pagalia Brothers with both)
y Customer
(FFH, 20-50 years old)
y Company Status/Issues/4Ps
y SWOT
Research Methodology
y Use of Previous Research
y Identification of Segments (w.r.t
demographic and behavioral
characteristics)
y Four-Step Process
1. Mini pilot groups to understand what current Italian sausage
users say about use of the product, AND
Focus group to understand current behaviors, triggers to
purchase, unmet demands, product benefits, attributes, ideals,
core value of products
2. Develop positioning ideas
3. Consumers prioritize and improve positioning concepts
4. Monadic testing with purchase intent scores
Considerations to assure surveying the
‘right’ consumers

y Age
(20-30 years, 30-40 years, 40-50 years)
y Lifestyle
(Working fill-time/part-time, Stay-at-home-mom)
y Geography
(Saxonville bratwurst territory for Saxonville
brand,Vivio Italian territory for Vivio brand,
Territories with both brands in market for
perceptions of the ‘other’ brand, Italian sausage
territories for competitive brands)
Research Results
y Focus Group
-Heavy users purchased once a week in winter and once every two weeks
in summer, light users purchased at least once every six weeks
-Husband and children enjoyed
-Females cooked
-Italian sausage is ingredient for other meals
-Vivio is of exceptionally good quality, color, taste, texture
-Vivio not a suitable name
-Women did not feel good about pre-packaged food
-Women wanted to make wholesome and appealing meals for family but
did not have time or skills for it
-Desired to be nurturing mothers and homemakers
-Believed a meal could be a magnet to bring everyone to the table

y Six concepts
y Two top alternatives
Alternatives and Recommendations
y Family Concept (Pros Cons)
y Clever Cooking (Pros Cons)
Brand laddering
y Value
y Emotional benefit
y Functional benefit
y Attributes
 Brand laddering
y Family Connection
Value- Job well done
Emotional benefit- Togetherness/Connectivity
Functional benefit- Everybody loves it
Attributes- Perfect blend of seasoning and spices

y Clever Cooking
Value-Job well done
Emotional benefit- Creativity
Functional benefit- Product versatility
Attributes- Unique flavor combinations and forms
 Family Concept
Name

Positioning Statement

Tagline

Communication Strategy
-Key functional benefit
-Key emotional benefit
Product Variations
-Flavors
-Forms
Packaging

In-store tactics
Clever Cooking
Name

Positioning Statement

Tagline

Communication Strategy
-Key functional benefit
-Key emotional benefit
Product Variations
-Flavors
-Forms
Packaging

In-store tactics
Tactics and Recommendations

y Product Varieties
y Packaging
y Advertising and Sales Promotions
What happened?
Saxonville adopted ‘Clever positioning’ and supported it with the
following tactics:

y The brand name selected was an Italianate equivalent to “Primo”; some

time after the first year of introduction (depending on performance and
other activity in the entire sausage category), the Saxonville Company
name would be introduced in some form (for example, “From Saxonville”
or “Saxonville’s Primo Brand of Italian Sausage”).
y Oval-shaped label to resemble a finished meal on a serving or dinner plate.
y In-pack recipes (inserted under the label on top of the plastic wrap—i.e.,
not touching the sausage) in a 3”x5” recipe card size with new recipes
rotated in every four weeks.
y The label was tagged to indicate that the package included a recipe and
required ingredients were listed.
y Line items were rationalized, and pre-sliced and pre-formed disk and patty
line items were introduced in “mild” and “sweet” varieties. Different flavors
were developed as “in and out” line items to add news to the brand
without incurring increased permanent slotting fees.
What happened?
y A print ad campaign was launched geographically in concert with
product launch. The initial depiction of happy family members
realizing what’s for dinner and running to the table included a
different recipe from the series used in product packages.
y The brand was introduced in geographies where Vivio had
distribution, with a plan to leave the two brands in the market initially
and determine how to fade Vivio out (depending on performance) in
the future.
y “Primo” gained distribution in successive geographic introductions
and continued to gain as the brand caught on.
y “Primo” sales volume growth matched and then slightly exceeded
overall category growth in some areas; sales volume growth
continues today and cannot be attributed only to distribution gains.
y Competitive response included deeper discounting with several
regional players and increased advertising spending with others.
“Primo” continues to be expanded throughout the country and at
this point maintains its status as the only Italian sausage close to
being a “national” player. Competitive activities did not appear to
deter the brand’s performance: in some geographies, “Primo” is the
premium-priced brand.