Consumer Behaviour

Contents

1. Nature, Scope and Importance of consumer behaviour.

2. Consumer Research.
3. Consumer Learning
4. Consumer Perception
5. Consumer Involvement
6. Attitude, Culture, Lifestyle and Socialism
7. Consumer Motivation
8. Consumer Decision Making
9. Consumerism

1. Nature Scope and Importance of Consumer behaviour. :

Consumer behaviour is defined as The dynamic interaction of affect and cognition,
behaviour and the environment b which human beings conduct the exchange aspects
of lives . IT means that the buying habits of the consumer are greatly affected b
y their thought process and their feelings experienced. Human beings are greatly
influenced in their buying actions by various factors like opinion of others, m
arketing stimuli like product, advertising, packaging and product appearance.
Importance of Consumer behaviour:
Ever increasing intensifying competition.
More aggressive competitors emerging with greater frequency.
Changes basis of competition.
Geographic sources of competition are becoming wider.
Niche attacks are becoming frequent.
Pace of innovation is rapid.
Price competition becoming more aggressive
Product differentiation is declining.
As a principal, the marketing concept involves understanding the needs of the co
nsumers and translating these needs into products or services to satisfy these n
eeds. The basic objective in marketing is to achieve the goal of profit making t
hrough customer satisfaction. To do this, an organization should understand the
consumer and be as close to them as possible.
Consumer behaviour is Dynamic:
The feelings, thinking, perceptions and actions of the customer and the society
at large keep changing frequently. For example number of working women is on ris
e and this has changed the concept of shopping. The dynamic nature of the consum
er behaviour offers challenges to marketers and the task of creating marketing s
trategies becomes complex, and exciting. Strategies that work today may not work
tomorrow. Strategies adopted in one market ma not work in another. The product
life cycle are becoming shorter and create additional pressures on marketers to
bring innovative products and concepts. The concept value changes from time to tim
e. Mahindra and mahindra had to come out with Scorpio within launch of Bolero .

Consumer behaviour involves interactions:

Consumer behaviour involves interactions among peoples thinking, feelings, and a
ctions and the environment. This forces marketers to understand three things:
What products and services mean to customers.
What influences shopping, purchase, and consumption.
What consumers nee to do to purchase and consume products and services.
Consumer behaviour involves exchange:
Consumer behaviour involves exchanges between human beings. People give up somet
hing of value to others and receive something in return. Much of consumer behavi
our involves people giving up money to obtain product and services, that is, exc
hanges consumers and sellers. The role of marketing in society is to help create
exchange by formulating and implementing marketing strategies.
2. Consumer Research :
Consumer research is the systematic collection and analysis of consumer informat
ion for the purpose of important decision making for marketing. Consumer researc
h plays an important role in marketing process, helps in consumer measurement, m
arket potential, sales forecast, each element like product mis, distribution mix
, price, effectiveness of and advertisement campaign, consumer acceptance of a p
roduct. In fiercely competitive situation, it is extremely critical for and orga
nization to monitor the customer relationship on a regular basis.
Consumer research is used for two purposes:
Routine problem analysis .i.e. product potential, sales forecasting.
Non-routing problem analysis .i.e. new product launch, success of promotional sc
hemes.
Needs for Consumer Research:
How do consumers interpret information about marketing stimuli such as products,
stores, and advertising?

How do consumers choose from among alternative product classes, products, and br
ands?
 How do consumers form evaluation of products and brands?
How does consumer interpret the benefits of market offerings?
How do behaviour and environment affect consumer beliefs and attitudes?
Why consumers are more interested or involved in some products or brands than ot
hers?
How d marketing strategies influence consumer s beliefs and attitudes?
Answers to such questions can only be obtained through consumer feedback and for
this it is imperative to study Consumer Research and integrate it into the over
all marketing function.
Approaches to Consumer Research:
There are two main categories of research methods. Secondary research uses resea
rch that has already been done by someone else. For example, marketers often fin
d information compiled by the U.S. Census very useful. However, in some cases, i
nformation specific enough to satisfy a firm s needs is not publicly available. Fo
r example, a firm will have to run its own research to find out whether consumer
s would prefer that more vanilla taste be added to its soft drink brand. Origina
l research that a firm does for itself is known as primary research.
There is no one perfect primary research method. Each has strengths and weakness
es, and thus the appropriate method must be selected based on research needs.
Surveys are useful for getting a great deal of specific information. Surveys can
contain open-ended questions (e.g., "In which city and state were you born? ___
_________") or closed-ended, where the respondent is asked to select answers fro
m a brief list (e.g., "__Male ___ Female." Open ended questions have the advanta
ge that the respondent is not limited to the options listed, and that the respon
dent is not being influenced by seeing a list of responses. However, open-ended
questions are often skipped by respondents, and coding them can be quite a chall
enge. In general, for surveys to yield meaningful responses, sample sizes of ove
r 100 are usually required because precision is essential. For example, if a mar
ket share of twenty percent would result in a loss while thirty percent would be
profitable, a confidence interval of 20-35% is too wide to be useful.
Surveys come in several different forms. Mail surveys are relatively inexpensive
, but response rates are typically quite low typically from 5-20%. Phone-surveys g
et somewhat higher response rates, but not many questions can be asked because m
any answer options have to be repeated and few people are willing to stay on the
phone for more than five minutes. Mall intercepts are a convenient way to reach
consumers, but respondents may be reluctant to discuss anything sensitive face-
to-face with an interviewer.
A survey, as any kind of research, is vulnerable to bias. The wording of a quest
ion can influence the outcome a great deal. For example, more people answered no
to the question "Should speeches against democracy be allowed?" than answered y
es to "Should speeches against democracy be forbidden?" For face-to-face intervi
ews, interviewer bias is a danger, too. Interviewer bias occurs when the intervi
ewer influences the way the respondent answers. For example, unconsciously an in
terviewer that works for the firm manufacturing the product in question may smil
e a little when something good is being said about the product and frown a littl
e when something negative is being said. The respondent may catch on and say som
ething more positive than his or her real opinion. Finally, a response bias may
occur if only part of the sample responds to a survey, the respondents answers may
not be representative of the population.
The case of "The Pentagon Declares War on Rush Limbaugh" illustrated that biased
surveys are often taken at face value. It was reported in the national media, w
ithout question of the validity of the research, that only 3.8% of listeners to
the Armed Forces Network wanted to listen to Rush Limbaugh. It turned out, howev
er, that this inference was based on the question "What single thing can we do t
o improve programming?" Only if a respondent wrote in an answer mentioning Rush
Limbaugh were he or she counted as wanting to listen to Rush.
Experiments are used when the researcher wants to rule out all but one explanati
on for a particular observation. Suppose, for example, that we observe that sale
s of our brand increase when we send out coupons. However, retailers may also gi
ve us better shelf space when the coupon is out; thus, we can t tell if it was the
coupon or the shelf-placement that caused sales to increase the two variables are
confounded. In an experiment, we carefully control what varies. In this case, w
e invite in one hundred people and ask them to shop in a simulated store. Half o
f the respondents are randomly selected and get a coupon; the others do not. Sin
ce the only difference here was whether the subjects got a coupon or
not, we can be more confident that differences in brand choice were due to the c
oupon. Experiments do, however, have a serious drawback in that the consumer is
removed from his or her natural surroundings. For example, if we pay some consum
ers to come into a lab and watch TV "as you normally would," these consumers, fi
guring that they are being paid, may give more attention to the advertisements t
han they would at home.

Focus groups involve getting a group of 6-12 consumers together to discuss produ
ct usage. Focus groups are especially useful if we do not have specific question
s to ask yet, since we don t know what consumers concerns might be. We start out ta
lking broadly about the need that a product might serve, and only gradually move
toward the product itself. For example, a firm considering the marketing of sug
ar free cookies might start out its group talking about snacks why people consume
them and the benefits they expect. Gradually, we then move toward concerns peopl
e have about snacks. Eventually, we address sugar content and concerns that cons
umers have about that. Only toward the end of the session do we show consumers t
he actual product we are considering and ask for feedback. We postpone our consi
deration of the actual product toward the end because we want to be sure that we
find out about the consumer s needs and desires rather than what he or she thinks
about the specific product we have on the drawing board right now (that product
can be changed, and it can be repositioned). Drawbacks of focus groups include
high costs and the fact that generalization toward the entire population is diff
icult for such small sample sizes. The fact that focus groups involve social int
eraction also means that participants may say what they think will make themselv
es look good rather than what they really believe (the social desirability bias)
.
Personal interviews involve in-depth questioning of an individual about his or h
er interest in or experiences with a product. The benefit here is that we can ge
t really into depth (when the respondent says something interesting, we can ask
him or her to elaborate), but this method of research is costly and can be extre
mely vulnerable to interviewer bias.
Projective techniques are used when a consumer may feel embarrassed to admit to
certain opinions, feelings, or preferences. For example, many older executives m
ay not be comfortable admitting to being intimidated by computers. It has been f
ound that in such cases, people will tend to respond more openly about "someone
else." Thus, we may ask them to explain reasons why a friend has not yet bought
a computer, or to tell a story about a person in a picture who is or is not usin
g a product. The main problem with this method is that it is difficult to analyz
e responses.
Observation of consumers is often a powerful tool. Looking at how consumers sele
ct products may yield insights into how they make decisions and what they look f
or. For example, some American manufacturers were concerned about low sales of t
heir products in Japan. Observing Japanese consumers, it was found that many of
these Japanese consumers scrutinized packages looking for a name of a major manu
facturer the product specific-brands that are common in the U.S.
(e.g., Tide) were not impressive to the Japanese, who wanted a name of a major f
irm like Mitsubishi or Proctor & Gamble. Observation may help us determine how m
uch time consumers spend comparing prices, or whether nutritional labels are bei
ng consulted. Physiological measures are occasionally used to examine consumer r
esponse. For example, advertisers may want to measure a consumer s level of arousa
l during various parts of an advertisement.
Types of Data:
Primary Data: Data collected at first hand either by the researcher or by someon
e especially for the purpose of the study are known as primary data.
Secondary Data: Data which have been collected earlier for some other purpose ar
e secondary data in hands of marketing researcher.
3. Consumer Learning :
Learning is defined as a permanent change in the behaviour of a consumer as a re
sult of past experience.
The characteristic features of learning are as under:
Learning involves a change in behaviour. This change may or may not be an import
ant over previous behaviour.
Learning is a process, which continuously evolves and changes as a result of new
ly acquired knowledge.
Learning can occur by increase in knowledge through reading books, articles, obs
ervation, thinking, and through discussions.
The behaviour change is based on some form of practice or exception.
Thus we see that learning is based on two vital aspects that are behaviour and e
xperience. Learning can be either intentional or incidental. Intentional learnin
g occurs when the individual is deliberately searching for the information on th
e feature, benefits etc of the product before a purchase. Incidental learning oc
curs when the information comes to him on its own either through the print or el
ectronic media, exhibitions etc.

4. Consumer Perception :
It is selection, organisation, and interpretation of marketing and environmental
stimuli into a cohesive picture. Following are the some feature of perception,
which are as under:
Perception is a mental process, whereby an individual selects data or informatio
n from the environment, organizes it and draws significance or meaning from it.
Perception is a basically a cognitive or thinking process and an individual s acti
vities, emotions, feelings etc. are based on his perception of his perception of
his surroundings or environment.
Perception being an intellectual and cognitive process will be subjective in nat
ure. This means that different people may perceive the same environment differen
tly based on the effect of the environment.
Characteristics Affecting Perception:
Characteristic effecting perception can be divided into sensory elements and str
uctural elements.
Colour: Colour has important sensory connotations. Evidence suggests that red is
regarded as warm, sensual and not intimidating. Blue is seen as conforming and
is regarded to be colour that attempts to convey friendlier image. Pepsi attempt
to cash on the blue colour of the Indian cricket team during the recent World C
up cricket matches has received a similar response. Many retailers in Mumbai cal
l it Ghaslet Pepsi . This is because Indians are more used to identify blue with ke
rosene and their long term association with blue colour of kerosene led to call
blue Pepsi as Ghaslet Pepsi.
Taste: Taste is another sensory factor that will condition consumers brand perce
ptions. The importance of taste is illustrated by P&G blunder when it first intr
oduced Pringles potato chips. The chips were packed in an easy-to-stack cylindri
cal can to avoid breakage of chips. The consumers responded by saying that the p
ackaging resembles a tennis ball can. Further consumers felt that the chips tast
ed like tennis ball.
Smell: Smell is important for food products and cosmetics products. In one study
, two fragrances were added to the same facial tissue. Consumers perceived one f
acial issue as elegant and expensive and the other as a product to use in the ki
tchen.
Sound: Sound is another important sensory stimulus. Advertisers have traditional
ly used accent to convey status and authority. Even in case of serials, voice is
being used to create an impact on the masses. The Binaca geetmala was characteris
ed by the voice of Amin Sayani.s
Feel: The feel of certain products will also influence consumer s perceptions. Sof
tness is considered a desirable attribute in many paper products. Feel is also a
means of determining quality. Consumer often use of a textile fabric, clothing,
carpeting, or furniture to evaluate quality. For example, a smooth, velvety fee
l in textile fabrics is considered an indication of quality.
Structural Elements:
Intensity and Size: The brighter and advertisement and larger the size, more it
is able to attract the attention of potential consumers. Such large advertisemen
ts can be in the form of full page advertisements in newspapers or in the form o
f large hoardings on the road.
Position: Attraction towards and advertisement depends largely on the place wher
e it is positioned. Positioning includes the page of a newspaper. Similarly, the
placement of product for display on shelves at the retail outlet plays an impor
tant role in attracting the attention of the consumers.
Contrast: A black and white advertisement with a small spot used by Jet Airways
is likely to attract attention. A quite commercial after a loud program can attr
act attention like the advertisement of De Beers diamond after listening to a fran
tic rock show.
Novelty: It is observed that anything which is different from what is normally e
xpected tends to attract attention like an unusual bottle shape or different pac
kaging material. For e.g. Frooti was the first to introduce the soft drink in tetr
a pack or when Pepsi and Coke were launched in small cans.
Repetition: Advertisements are repeated often to enable consumers to brand recal
l as well as stimulate them and create a strong desire for interest in the purch
ase of the product. Repetition is particularly important in case of low involvem
ent convenience goods like soaps, toothpastes.
Consumer Characteristics Affecting Perception:
Stimulus Discrimination: One of the basic questions regarding the effect of mark
eting stimuli. The ability to discriminate among stimuli is learned. Generally,
frequent users of a product are better able to notice small difference in produc
t characteristic between brands.

Threshold levels: The ability of consumer to detect the various in sensory eleme
nts is determined by their threshold level. Some consumers are more sensitive to
these stimuli than others. This will be quite clear from the fact tea and coffe
e companies employ persons called tea or coffee tasters .
Just Noticeable difference: It is based on the differential threshold of a consu
mer. A consumer will not be able to detect any change in stimulus below his thre
shold. For e.g. If an unbranded detergent cost 5 percent less that consumer is r
egular brand, the consumer ma not notice the difference. However, if the same un
branded product costs less than 30 percent less than he is definitely going to n
otice the difference.
Weber s Law: It states that the stronger the stimulus, the greater the change requ
ired for the stimulus to be seen as different. The most important application of
this law is in price. One critical implication is that the higher the original
price of an item, the greater the markdown required to increase sales. For e.g.
If price of a Mercedes Benz S class is reduced by 25000/-, it will not have any
impact on sales because the basic price is in several Lakhs that a difference of
Rs25000/- may not be noticeable for consumers. On the other hand a price reduct
ion of even Rs5000/- for a maruti 800 is seen to push sales substantially becaus
e of its low original price.
Absolute Threshold: It is stimulus below which consumers cannot detect the stimu
lus at all. It is also referred to as subliminal perception .i.e. perception of
stimulus below the conscious level. One of the major controversies regarding con
sumer perceptions is whether consumers can actually perceive marketing stimuli b
elow their absolute level.
Adaptation law: It is the level at which consumer s no longer notice a frequently
repeated stimulus. An individual walking into an air-conditioned room, kitchen f
ull of fragrance, or a noisy party will notice these stimuli after a period of t
ime. Consumer differs in their level of adaptation. Some tune out more quickly t
hen others. Novelty, humour, contrast, and movement are all stimulus effects tha
t may gain consumer s attention and reduce their attention and reduce their adapta
tion.
Price and Quality Perceptions: Price perceptions directly influence consumer s per
ceptions of brand quality and determine their purchasing behaviour. For e.g. Par
ker pens were positioned as expensive, hand finished pens. In order to achieve l
arge volume of growth and to share a pie of the explosive growing ballpoints, Pa
rker entered this market for cheap pens moving away from its traditional positio
ning. The results were disastrous because company s image was not consistent with
its price. In the late eighties, it moved back to its strength, high priced foun
tain pens, with an ad campaign featuring style and luxury. This shift made the c
ompany profitable again.
5. Consumer Involvement:
Involvement: A consumer is said to have a high involvement in purchase, when he
considers the product be important and strongly identifies with it.
Conditions for involvement:
A consumer is likely to be more involved with a product when:
The consumer s self image is tied to the product e.g. aggressive youth craving for
power identify themselves with the Enfield Bullet. Khadi is preferred by politi
cians and budding politicians. Similarly, we find politician preferring a multi-
utility vehicle like Scorpio or Tata Safari.
Product has a symbolic meaning tied to consumer values e.g. ownership of a BMW c
ar, a cross pen, Rolex watches have s symbolic value of the affluent class.
Product is expensive .e.g. Jewellery, real estate etc.
It has some important functional value e.g. fuel efficiency of a vehicle, cricke
t gear for a cricketer.
Product has an emotional appeal e.g. buying of a gift article, buying of article
s for religious purpose.
Product is continually of interest to the consumer .e.g. fashion-conscious custo
mer has continuous appeal in clothing and apparel.
Product entails significant risk e.g. buying a technology complex product, buyin
g a house.

Product is identified with the norms of the group. E.g. School children buying Po
kemans articles.
Type of Involvement:
Situational Involvement:
It is one that occurs only in specific situations and is temporary. For e.g. a p
erson buying suit for marriage. Formal dressing for the marriage is a necessary
and

hence a person not very fashion-conscious about clothes gets involved temporary
for his marriage in a piece of suit.
Enduring Involvement: It indicates an ongoing interest in the product category.
For example,
Attitudes:
Definition. Consumer attitudes are a composite of a consumer s (1) beliefs about,
(2) feelings about, (3) and behavioral intentions toward some object--within the
context of marketing, usually a brand or retail store. These components are vie
wed together since they are highly interdependent and together represent forces
that influence how the consumer will react to the object.
Beliefs. The first component is beliefs. A consumer may hold both positive belie
fs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g.
, coffee is easily spilled and stains papers). In addition, some beliefs may be
neutral (coffee is black), and some may be differ in valance depending on the pe
rson or the situation (e.g., coffee is hot and stimulates--good on a cold mornin
g, but not good on a hot summer evening when one wants to sleep). Note also that
the beliefs that consumers hold need not be accurate (e.g., that pork contains
little fat), and some beliefs may, upon closer examination, be contradictory (e.
g., that a historical figure was a good person but also owned slaves).
Since a consumer holds many beliefs, it may often be difficult to get down to a
"bottom line" overall belief about whether an object such as McDonald s is overall
good or bad. The Multi-attribute (also sometimes known as the Fishbein) Model a
ttempts to summarize overall attitudes into one score using the equation:
That is, for each belief, we take the weight or importance (Wi) of that belief a
nd multiply it with its evaluation (Xib). For example, a consumer believes that
the taste of a beverage is moderately important, or a 4 on a scale from 1 to 7.
He or she believes that coffee tastes very good, or a 6 on a scale from 1 to 7.
Thus, the product here is 4(6) =24. On the other hand, he or she believes that t
he potential of a drink to stain is extremely important (7), and coffee fares mo
derately badly, at a score -4, on this attribute (since this is a negative belie
f, we now take negative numbers from -1 to -7, with -7 being worst). Thus, we no
w have 7(-4) =-28. Had these two beliefs been the only beliefs the consumer held
, his or her total, or aggregated, attitude would have been 24+ (-28) =-4. In pr
actice, of course, consumers tend to have many more beliefs that must each be ad
ded to obtain an accurate measurement.
Affect. Consumers also hold certain feelings toward brands or other objects. Som
etimes these feelings are based on the beliefs (e.g., a person feels nauseated w
hen thinking about a hamburger because of the tremendous amount of fat it contai
ns), but there may also be feelings which are relatively independent of beliefs.
For example, an extreme environmentalist may believe that cutting down trees is
morally wrong, but may have positive affect toward Christmas trees because he o
r she unconsciously associates these trees with the experience that he or she ha
d at Christmas as a child.
Behavioral intention. The behavioral intention is what the consumer plans to do
with respect to the object (e.g., buy or not buy the brand). As with affect, thi
s is sometimes a logical consequence of beliefs (or affect), but may sometimes r
eflect other circumstances--e.g., although a consumer does not really like a res
taurant, he or she will go there because it is a hangout for his or her friends.
Attitude-Behavior Consistency. Consumers often do not behave consistently with t
heir attitudes for several reasons:
o Ability. He or she may be unable to do so. Although junior high school s
tudent likes pick-up trucks and would like to buy one, she may lack a driver s lic
ense.
o Competing demands for resources. Although the above student would like t
o buy a pickup truck on her sixteenth birthday, she would rather have a computer
, and has money for only one of the two.
o Social influence. A student thinks that smoking is really cool, but sinc
e his friends think it s disgusting, he does not smoke.
o Measurement problems. Measuring attitudes is difficult. In many situatio
ns, consumers do not consciously set out to enumerate how positively or negative
ly they feel about mopeds, and when a market researcher asks them about their be
liefs about mopeds, how important these beliefs are, and their evaluation of the
performance of mopeds with respect to these beliefs, consumers often do not giv
e very reliable answers. Thus, the consumers may act consistently with their tru
e attitudes, which were never uncovered because an erroneous measurement was mad
e.
Attitude Change Strategies. Changing attitudes is generally very difficult, part
icularly when consumers suspect that the marketer has a self-serving agenda in b
ringing about this change (e.g., to get the consumer to buy more or to switch br
ands).
Changing affect. One approach is to try to change affect, which may or may not i
nvolve getting consumers to change their beliefs. One strategy uses the approach
of classical conditioning try to "pair" the product with a liked stimulus. For
example, we "pair" a car with a beautiful woman. Alternatively, we can try to ge
t
people to like the advertisement and hope that this liking will "spill over" int
o the purchase of a product. For example, the Pillsbury Doughboy does not really
emphasize the conveyance of much information to the consumer; instead, it attem
pts to create a warm, fuzzy image. Although Energizer Bunny ads try to get peopl
e to believe that their batteries last longer, the main emphasis is on the likea
ble bunny. Finally, products which are better known, through the mere exposure e
ffect, tend to be better liked--that is, the more a product is advertised and se
en in stores, the more it will generally be liked, even if consumers to do not d
evelop any specific beliefs about the product.
Changing behavior. People like to believe that their behavior is rational; thus,
once they use our products, chances are that they will continue unless someone
is able to get them to switch. One way to get people to switch to our brand is t
o use temporary price discounts and coupons; however, when consumers buy a produ
ct on deal, they may justify the purchase based on that deal (i.e., the low pric
e) and may then switch to other brands on deal later. A better way to get people
to switch to our brand is to at least temporarily obtain better shelf space so
that the product is more convenient. Consumers are less likely to use this avail
ability as a rationale for their purchase and may continue to buy the product ev
en when the product is less conveniently located. (Notice, by the way, that this
represents a case of shaping).
Changing beliefs. Although attempting to change beliefs is the obvious way to at
tempt attitude change, particularly when consumers hold unfavorable or inaccurat
e ones, this is often difficult to achieve because consumers tend to resist. Sev
eral approaches to belief change exist:
o Change currently held beliefs. It is generally very difficult to attempt
to change beliefs that people hold, particularly those that are strongly held,
even if they are inaccurate. For example, the petroleum industry advertised for
a long time that its profits were lower than were commonly believed, and provide
d extensive factual evidence in its advertising to support this reality. Consume
rs were suspicious and rejected this information, however.
o Change the importance of beliefs. Although the sugar manufacturers would
undoubtedly like to decrease the importance of healthy teeth, it is usually not
feasible to make beliefs less important--consumers are likely to reason, why, t
hen, would you bother bringing them up in the first place? However, it may be po
ssible to strengthen beliefs that favour us--e.g., a vitamin supplement manufact
urer may advertise that it is extremely important for women to replace iron lost
through menstruation. Most consumers already agree with this, but the belief ca
n be made stronger.
o Add beliefs. Consumers are less likely to resist the addition of beliefs
so long as they do not conflict with existing beliefs. Thus, the beef industry
has added beliefs that beef (1) is convenient and (2) can be used to make a numb
er of creative dishes. Vitamin manufacturers attempt to add the belief that stre
ss causes vitamin depletion, which sounds quite plausible to most people.
o Change ideal. It usually difficult, and very risky, to attempt to change
ideals, and only few firms succeed. For example, Hard Candy may have attempted
to change the ideal away from traditional beauty toward more unique self express
ion.
One-sided vs. two-sided appeals. Attitude research has shown that consumers ofte
n tend to react more favorably to advertisements which either (1) admit somethin
g negative about the sponsoring brand (e.g., the Volvo is a clumsy car, but very
safe) or (2) admits something positive about a competing brand (e.g., a competi
ng supermarket has slightly lower prices, but offers less service and selection)
. Two-sided appeals must, contain overriding arguments why the sponsoring brand
is ultimately superior--that is, in the above examples, the "but" part must be e
mphasized.
The Elaboration Likelihood Model (ELM) and Celebrity Endorsements. The ELM sugge
sts that consumers will scrutinize claims more in important situations than in u
nimportant ones. For example, we found that in the study of people trying to get
ahead of others in a line to use photo copiers, the compliance rate was about f
ifty percent when people just asked to get ahead. However, when the justificatio
n "... because I have to make copies" was added, compliance increased to 80%. Si
nce the reason offered really did not add substantive information, we conclude t
hat it was not extensively analyzed--in the jargon of the theory, "elaboration"
was low.
The ELM suggests that for "unimportant" products, elaboration will be low, and t
hus Bill Cosby is able to endorse Coke and Jell-O without having any special cre
dentials to do so. However, for products which are either expensive or important
for some other reason (e.g., a pain reliever given to a child that could be har
med by using dangerous substances), elaboration is likely to be more extensive,
and the endorser is expected to be "congruent," or compatible, with the product.
For example, a basket ball player is likely to be effective in endorsing athlet
ic shoes, but not in endorsing automobiles. On the other hand, a nationally synd
icated auto columnist would be successful in endorsing cars, but not athletic sh
oes. All of them, however, could endorse fast food restaurants effectively.
Appeal approaches. Several approaches to appeal may be used. The use of affect t
o induce empathy with advertising characters may increase attraction to a produc
t, but may backfire if consumers believe that people s feelings are being exploite
d. Fear appeals appear to work only if (1) an optimal level of fear is
evoked--not so much that people tune it out, but enough to scare people into act
ion and (2) a way to avoid the feared stimulus is explicitly indicated--e.g., gi
ngivitis and tooth loss can be avoided by using this mouth wash. Humor appears t
o be effective in gaining attention, but does not appear to increase persuasion
in practice. In addition, a more favorable attitude toward the advertisement may
be created by humorous advertising, which may in turn result in increased sales
. Comparative advertising, which is illegal in many countries, often increases s
ales for the sponsoring brand, but may backfire in certain cultures.
Culture:
Culture is part of the external influences that impact the consumer. That is, cu
lture represents influences that are imposed on the consumer by other individual
s.
The definition of culture offered in the text is "That complex whole which inclu
des knowledge, belief, art, morals, custom, and any other capabilities and habit
s acquired by man person as a member of society." From this definition, we make
the following observations:
Culture, as a "complex whole," is a system of interdependent components.
Knowledge and beliefs are important parts. In the U.S., we know and believe that
a person who is skilled and works hard will get ahead. In other countries, it m
ay be believed that differences in outcome result more from luck. "Chunking," th
e name for China in Chinese literally means "The Middle Kingdom." The belief amo
ng ancient Chinese that they were in the centre of the universe greatly influenc
ed their thinking.
Other issues are relevant. Art, for example, may be reflected in the rather arbi
trary practice of wearing ties in some countries and wearing turbans in others.
Morality may be exhibited in the view in the United States that one should not b
e naked in public. In Japan, on the other hand, groups of men and women may take
steam baths together without perceived as improper. On the other extreme, women
in some Arab countries are not even allowed to reveal their faces. Notice, by t
he way, that what at least some countries view as moral may in fact be highly im
moral by the standards of another country. For example, the law that once banned
interracial marriages in South Africa was named the "Immorality Act," even thou
gh in most civilized countries this law, and any degree of explicit racial preju
dice, would itself be considered highly immoral.
Culture has several important characteristics: (1) Culture is comprehensive. Thi
s means that all parts must fit together in some logical fashion. For example, b
owing and a strong desire to avoid the loss of face are unified in their
manifestation of the importance of respect. (2) Culture is learned rather than b
eing something we are born with. We will consider the mechanics of learning late
r in the course. (3) Culture is manifested within boundaries of acceptable behav
ior. For example, in American society, one cannot show up to class naked, but we
aring anything from a suit and tie to shorts and a T-shirt would usually be acce
ptable. Failure to behave within the prescribed norms may lead to sanctions, ran
ging from being hauled off by the police for indecent exposure to being laughed
at by others for wearing a suit at the beach. (4) Conscious awareness of cultura
l standards is limited. One American spy was intercepted by the Germans during W
orld War II simply because of the way he held his knife and fork while eating. (
5) Cultures fall somewhere on a continuum between static and dynamic depending o
n how quickly they accept change. For example, American culture has changed a gr
eat deal since the 1950s, while the culture of Saudi Arabia has changed much les
s.
It should be noted that there is a tendency of outsiders to a culture to oversta
te the similarity of members of that culture to each other. In the United States
, we are well aware that there is a great deal of heterogeneity within our cultu
re; however, we often underestimate the diversity within other cultures. For exa
mple, in Latin America, there are great differences between people who live in c
oastal and mountainous areas; there are also great differences between social cl
asses.
Cultural rules can be categorized into three types. Formal rules carry relativel
y explicit standards as to how one should behave, and violations often carry sev
ere sanctions. For example, in many countries, two forms of the second pronoun (
you) exist, with different levels of deference associated with each (e.g., tú and
usted in Spanish and tu and vous in Spanish German even has three levels!) In Japa
n, senior executives will enter and leave a meeting room before subordinates in
a very deliberate manner. Informal rules, on the other hand, are less explicit a
nd may not carry sanctions for violation. For example, in the U.S., most people
would consider eating dinner at 10:00 p.m. weird, while this is perfectly normal
in parts of Latin American and Southern Europe. Finally, technical cultural rul
es involve implicit standards as to what constitutes a good product. For example
, in India, a movie must have at least seven songs to be successful; in the U.S.
, preempting the soundtrack for that amount of time would not be desirable.
Language is an important element of culture. It should be realized that regional
differences may be subtle. For example, one word may mean one thing in one Lati
n American country, but something off-color in another. It should also be kept i
n mind that much information is carried in non-verbal communication. In some cul
tures, we nod to signify "yes" and shake our heads to signify "no;" in other cul
tures, the practice is reversed.

Different perspectives exist in different cultures on several issues; e.g.:

Monochronic cultures tend to value precise scheduling and doing one thing at a t
ime; in polychronic cultures, in contrast, promptness is valued less, and multip
le tasks may be performed simultaneously. (See text for more detail).
Space is perceived differently. Americans will feel crowded where people from mo
re densely populated countries will be comfortable.
Symbols differ in meaning. For example, while white symbols purity in the U.S.,
it is a symbol of death in China. Colours that are considered masculine and femi
nine also differ by culture.
Americans have a lot of quite shallow friends toward whom little obligation is f
elt; people in European and some Asian cultures have fewer, but more significant
friends. For example, one Ph.D. student from India, with limited income, felt o
bligated to try buy an airline ticket for a friend to go back to India when a re
lative had died.
In the U.S. and much of Europe, agreements are typically rather precise and cont
ractual in nature; in Asia, there is a greater tendency to settle issues as they
come up. As a result, building a relationship of trust is more important in Asi
a, since you must be able to count on your partner being reasonable.
In terms of etiquette, some cultures have more rigid procedures than others. In
some countries, for example, there are explicit standards as to how a gift shoul
d be presented. In some cultures, gifts should be presented in private to avoid
embarrassing the recipient; in others, the gift should be made publicly to ensur
e that no perception of secret bribery could be made.
The United States has undergone some changes in its predominant culture over the
last several decades. Again, however, it should be kept in mind that there are
great variations within the culture. For example, on the average, Americans have
become less materialistic and have sought more leisure; on the other hand, the
percentage of people working extremely long hours has also increased. The text d
iscusses changes in values in more detail.
Significant changes have occurred in gender roles in American society. One of th
e reasons for this is that more women work outside the home than before. However
, women still perform a disproportionate amount of housework, and men who partic
ipate in this activity tend to do so reluctantly. In general, commercials tend t
o lag somewhat behind reality e.g., few men are seen doing housework, and few wome
n are seen as buyers and decision makers on automobile purchases.
Subculture refers to a culture within a culture. For example, African Americans
are, as indicated in the group name, Americans; however, a special influence of
the African American community is often also present. For example, although this
does not apply to everyone, African Americans tend to worship in churches that
have predominantly African American membership, and church is often a significan
t part of family life.
Different perspectives on the diversity in U.S. culture exist. The "melting pot"
metaphor suggests that immigrants gradually assimilate after they arrive. There
fore, in the long run, there will be few differences between ethnic groups and i
nstead, one mainstream culture that incorporates elements from each will result.
The "salad bowl" metaphor, in contrast, suggests that although ethnic groups wi
ll interact as a whole (through the whole mix of salad) and contain some element
s of the whole (through the dressing), each group will maintain its own signific
ant traits (each vegetable is different from the others). The "melting pot" view
suggests that one should run integrated promotions aimed at all groups; the "sa
lad bowl" approach suggests that each group should be approached separately.
Subculture is often categorized on the basis of demographics. Thus, for example,
we have the "teenage" subculture and the "Cuban-American" subculture. While par
t of the overall culture, these groups often have distinguishing characteristics
. An important consequence is that a person who is part of two subcultures may e
xperience some conflict. For example, teenage native Americans experience a conf
lict between the mainstream teenage culture and traditional Indian ways.
Values are often greatly associated with age groups because people within an age
-group have shared experiences. For example, it is believed that people old enou
gh to have experienced the American Depression are more frugal because of that e
xperience.
Regional influence, both in the United States and other areas, is significant. M
any food manufacturers offer different product variations for different regions.
Joel Garreau, in his book The Nine Nations of North America, proposed nine dist
inct regional subcultures that cut across state lines. Although significant regi
onal differences undoubtedly exist, research has failed to support Garreau s speci
fic characterizations
Demographics and Social Stratification
Demographics are clearly tied to subculture and segmentation. Here, however, we
shift our focus from analyzing specific subcultures to trying to understand the
implications for an entire population of its makeup.
Several issues are useful in the structure of a population. For example, in some
rapidly growing countries, a large percentage of the population is concentrated
among younger generations. In countries such as Korea, China, and Taiwan, this
has helped stimulate economic growth, while in certain poorer countries, it puts
pressures on society to accommodate an increasing number of people on a fixed a
mount of land. Other countries such as Japan and Germany, in contrast, experienc
e problems with a "graying" society, where fewer non-retired people are around t
o support an increasing number of aging seniors. Because Germany actually hovers
around negative population growth, the German government has issued large finan
cial incentives, in the forms of subsidies, for women who have children. In the
United States, population growth occurs both through births and immigration. Sin
ce the number of births is not growing, problems occur for firms that are depend
ent on population growth (e.g., Gerber, a manufacturer of baby food). Social cla
ss is a somewhat nebulous subject that involves stratifying people into groups w
ith various amounts of prestige, power, and privilege. In part because of the pi
oneering influence in American history, status differentiations here are quite v
ague. We cannot, for example, associate social class with income, because a trad
itionally low status job as a plumber may today come with as much income as a tr
aditionally more prestigious job as a school teacher. In certain other cultures,
however, stratification is more clear-cut. Although the caste system in India i
s now illegal, it still maintains a tremendous influence on that society. While
some mobility exists today, social class awareness is also somewhat greater in B
ritain, where social status is in part reinforced by the class connotations of t
he accent with which one speaks.
The text speaks of several indices that have been used to "compute" social class
in the United States, weighing factors such as income, the nature of one s employ
ment, and level of education. Taken too literally, these indices are not very me
aningful; more broadly speaking, they illustrate the reality that social status
is a complex variable that is determined, not always with consensus among observ
ers, by several different variables.
Motivation, Personality, and Emotion:
Perspectives on Consumer Behavior and Motivation. We considered several perspect
ives on behavior as a way to understand what motivates the consumer. Each of the
se perspectives suggests different things as to what the marketer should do and
what can (and cannot) be controlled. Note that each perspective tends to contain
a "grain" oftruth and that one should not be too dogmatic in emphasizing one ov
er the others.
The Hard Core Behavioral perspective is based on learning theories such as opera
nt and classical conditioning. These theories suggest that consumers must learn
from their own experiences--i.e., in order to avoid getting sick from overeating
, a consumer must experience the stomach and other ailments resulting from glutt
ony rather than merely observing other people who overeat
and get sick. This suggests, then, that it is important to reward good behavior
(e.g., buying our brand) to the extent possible. Money spent on advertising is s
een as less useful. Hard core behaviorists tend to look at observable behaviour.
(e.g., buying our brand or buying another) rather than trying to find out what
is going on inside the heads of consumers--i.e., hard core behaviorists do not l
ike to mess with "mushy" things like attitudes.
The Social Learning Perspective, in contrast, allows for vicarious learning--i.e
., learning obtained by watching others getting good or bad consequences for beh
avior. The models that may be observed and imitated include peers and family mem
bers as well as relevant others that may be observed in
advertising. From our study of social influences, we know that certain people a
re more likely to be imitated than others--e.g., those that are more similar to
ourselves based on relevant factors such as age, social status, or ethnic group.
Consider, for example, the poor man who is rejected by women because of his dan
druff until he gets "with it" and uses Head n Shoulders shampoo. Other dandruff su
fferers are likely to learn from the model s experience. Generally, observations a
re made of overt behavior, but some room is made for individual reasoning in lea
rning from others. This perspective is clearly more realistic than that of the "
Hard Core" view, but it should be noted that the strength of learning tends to b
e greater for that gained from own experience.
The Cognitive approach emphasizes consumer thinking rather than mere behavior--w
e will encounter this to a great extent when we study decision making and attitu
des. Here, the emphasis is on how people reason themselves to the consequences o
f their behavior. Note that it is often somewhat more difficult to attempt to "g
et into" a consumer s head than it is to merely observe his or her behavior, and w
hat we "observe" is somewhat more subjective. Note also that a wealth of differe
nt factors influence people s thinking, and some expectations and assumptions that
we hold tend to be culturally influenced (e.g., an American assumes that hard w
ork will tend to lead to a promotion, while members of certain other cultures be
lieve that personal relationships, and perhaps even luck, tend to be more import
ant).

The Biological approach suggests that most behavior is determined by genetics or

other biological bases. By this perspective, it is suggested that consumers eat
the foods they eat in large part because the body craves these foods. Note that
although craving for fatty foods seems quite maladaptive in today s society, it c
ould have been very adaptive earlier in human history where food was scarce and
obtaining as many calories as possible helped ensure survival. Clearly, this per
spective is very misleading when one takes it as the only explanation of behavio
r--for example, people in different cultures learn to enjoy various kinds of foo
ds. The main implication of biological determinism is that the marketer must ada
pt--for example, food advertisements are more likely to be effective when people
are hungry, and thus they might better be run in the late afternoon rather than
in the late morning.
The Rational Expectations perspective is based on an economic way of looking at
the World. Economists assume that people think rationally and have perfect infor
mation, even though they know very well that these assumptions are often unreali
stic. However, despite the unrealistic assumptions made, economists often make r
elatively accurate predictions of human behavior. (The Cognitive perspective, ho
wever, is able to identify certain significant exceptions to rational behavior,
however).
The Psychoanalytic perspective is based on the work of historical psychologists
such as Sigmund Freud who suggest that (1) much behavior has a biological basis
which is (2) often sexual in nature, and (3) that early experiences in childhood
will have a profound, but unconscious effect on later life--e.g., people who ar
e rejected in an early, "oral" phase of development may become "oral retentive"
and end up as wine connoisseurs later in life. Because of societal injunctions a
gainst explicit discussion of sexuality in Western society at Freud s time [late 1
800s to mid 1900s], many objects were thought to take on seemingly unrelated sym
bolic meanings--e.g., a tie might become a symbol of a male reproductive organ.
Although modern psychologists certainly recognize that early experiences may inf
luence later psychological well being, the psychoanalytic view has largely been
discredited today as being much too centered on the issue of sex. However, this
perspective enjoys a great deal of popularity among many advertising executives.
It should be noted that Freudian psychology tends to violate the
cherished scientific ideal of parsimony, where a scientist is expected to propos
e the simplest theory that will account for observed phenomena.
Maslow s Hierarchy of Needs. The late Abraham Maslow suggested the intuitively app
ealing notion that humans must satisfy the most basic objectives before they can
move onto "higher level" ones. Thus, an individual must satisfy physiological n
eeds (such as food and liquid) before he or she will be able to expend energy on
less fundamental objectives such as safety. Only when basic objectives have bee
n met will a person move on to seek such objectives as love and belonging, and o
nly a small minority of people make it as far as seeking self-actualization.
Maslow s Hierarchy is useful in understanding different needs of consumers across
the World. However, one must be careful not to take it too literally, since peop
le may occasionally "swing" between needs. For example, a homeless person who cu
rrently does not have shelter may seek that out even though he or she is hungry.
Properties of motivation. Motivation is described through several properties:
Motivation is composed of energy and direction. A person may or may not have eno
ugh motivation to engage in a given activity. For example, a person may be motiv
ated enough to go and shop for food, but not enough to engage in a comprehensive
exercise program.
Motives may be overt, hidden, and multiple. Some motivations are publicly expres
sed (e.g., the desire to buy an energy efficient house), while others (e.g., the
desire to look wealthy by buying a fancy car) are not. Individuals may also hol
d multiple motivations (e.g., buy a car and save money for retirement) which may
conflict.
Many motivations are driven by the desire for tension reduction (e.g., eliminate
thirst or hunger).
Motivations can be driven by both internal and external factors. That is, a pers
on may want a painting either because he or she likes it (internal motivation) o
r because this will give her status among the artistic elite (external).
Motivations may have either a positive or negative valence--people may either be
motivated to achieve something (e.g., get a promotion at work) or avoid somethi
ng (e.g., being hospitalized without having adequate insurance).
Consumers are motivated to achieve goals. Achieving these goals may require sust
ained activity over time (e.g., exercising every day for months or years) as opp
osed to just taking some action once.
Consumers maintain a balance between the desires for stability and variety. Most
consumers want some variety (e.g., they do not want to eat the same meal every
day), but also want a certain stability (they do not want to try an entirely new
food every day).
Motivation reflects individual differences. Different consumers are motivated to
achieve different things, and it may be difficult to infer motivations from
looking at actual behavior without understanding these differences in desired ou
tcomes.
The reality that consumers are frequently motivated by multiple motives suggests
a possibility that motives may conflict. Three main types of conflict exists:
Approach-avoidance. One alternative has both positive consequences (that one wis
hes to seek out) and negative consequences (that one wants to avoid). For exampl
e, eating a large banana split is an enjoyable experience ("approach"), but is c
ontains a lot of calories ("avoidance") and may make one feel ill later (another
avoidance).
Approach-approach. A consumer wants to do two incompatible things at the same ti
me. A classic example is "Rainman s" desire both to stay with his brother and stay
at the institution. Another example is a consumer who only has one week s vacatio
n but wants equally to go to Hawaii and Greenland, but has time and money only f
or one of the two.
Avoidance-avoidance. A consumer does not want to go for either of two alternativ
es, but must choose the lesser of two evils. For example, the consumer does not
want to pay for car insurance, but does not want to get into an accident or get
caught by the police without it. A "work ethic disadvantaged" student does not w
ant to study, but does not want to fail his or her courses, either.
The Means-End chain. Consumers often buy products not because of their attribute
s per se but rather because of the ultimate benefits that these attributes provi
de, in turn leading to the satisfaction of ultimate values. For example, a consu
mer may not be particularly interested in the chemistry of plastic roses, but mi
ght reason as follows:
Highly reliable synthetic content of roses --->
Roses will stay in original condition for a long time --->
Significant other will appreciate the roses longer --->
Significant other will continue to love one ---> Self esteem.
The important thing in a means-end chain is to start with an attribute, a concre
te characteristic of the product, and then logically progress to a series of con
sequences (which tend to become progressively more abstract) that end with a val
ue being satisfied. Thus, each chain must start with an attribute and end with a
value.
An important implication of means-end chains is that it is usually most effectiv
e in advertising to focus on higher level items. For example, in the flower exam
ple above, an individual giving the flowers to the significant other might bette
r be portrayed than the flowers alone.
Personality and consumer behavior. Traditional research in marketing has not bee
n particularly successful in finding a link between personality and consumer beh
avior. Part of the problem here is that much of the theory has been developed by
clinical psychologists who have tended to work with maladjusted people. Not sur
prisingly, research that sought to predict, based on standard personality invent
ories, which kinds of consumers would buy Chevrolets as opposed to Fords was not
successful.
Emotion. Emotion impacts marketing efforts in several ways. One purpose is to ge
t attention to a stimulus (since emotionally charged individuals tend to be less
predictable than calmer ones, there has been an evolutionary advantage in payin
g attention to emotion). Secondly, emotion influences information processing. In
general, happy people tend to scrutinize arguments given (e.g., purported benef
its of using a product) somewhat less, since they do not want to lose their happ
y moods by doing too much thinking. In general, happy ads are somewhat better li
ked, and may be better remembered. Empathy may also increase liking for the ad a
nd the sponsoring product.
Consumer Decision Making:
Definitions. Consumer decision making comes about as an attempt to solve consume
r problems. A problem refers to "a discrepancy between a desired state and an id
eal state which is sufficient to arouse and activate a decision process." Thus,
problems can be major (e.g., a consumer has been fired and is without a job) or
minor (e.g., the consumer lacks an eraser necessary to take an exam the next day
), and the broader and more ambiguous a problem is, the more potential solutions
are generally available (see class slides for examples).
Consumer Problem Recognition. Consumers often note problems by comparing current
, or actual, situation, explicitly or implicitly, to some desired situation. In
terms of the "big picture," what is compared may be the totality of one s lifestyl
e. Once a discrepancy is found, a determination is found as to whether this is l
arge enough to warrant action, in which case a search for solutions is initiated
.
come in several different types. A problem may be an active one (e.g., you have
a headache and would like as quick a solution as possible) or inactive-- you are
not aware that your situation is a problem (e.g., a consumer is not aware that
he or she could have more energy with a new vitamin). Problems may be acknowledg
ed (e.g., a consumer is aware that his or her car does not accelerate well enoug
h or
unacknowledged (e.g., a consumer will not acknowledge that he or she consumes to
o much alcohol). Finally, needs can be relatively specific (generic), as in the
need for enjoyment (which can be satisfied many different ways), or specific, as
in the need for professional attire to wear at a new job.
Several different methods can be used to detect consumer problems, which are dis
cussed on pp. 508-509 in the text.
Creating problems for consumers is a way to increase sales, albeit a questionabl
y ethical one. One way to create new problems, and resultant needs, is to create
 a new ideal state. This is often done quite arbitrarily in the fashion industry
, as skirt lengths and the appropriate number of buttons on a suit often change
arbitrarily up and down. It may also be possible to create dissatisfaction with
current states. e.g., a firm may publicize current crime statistics to increase
the sales of handguns and alarms. Many vocational training schools advertise tha
t better careers than the consumer s current one are available upon graduation (a
promise on which, by the way, they may not deliver in the end).
There are two main approaches to search. Internal searches are based on what con
sumers already know. Thus, it may be important for certain firms to advertise to
consumers before they actually need the product. For example, one bail bond com
pany advertised its existence to people "in case you ever find yourself in jail.
" As another example, if you decide to go out for fast food, you may not consult
any directories, but instead search your memory for fast food restaurants conve
niently located. A problem is that some excellent ones which are not remembered,
or have never been heard of, are not considered. External searches get people t
o either speak to others (getting information by word of mouth) or use other sou
rces (such as advertisements now sought out or yellow page listings). Because th
e yellow pages are often the first place to which people turn, this medium is ab
le to charge very large advertising rates.
Consumers often do not consider all alternatives. Some are not known (the "unawa
reness" set), some were once known but are not readily accessible in memory (the
"inert" set), others are ruled out as unsatisfactory (the "inept" set--e.g., Gl
ad bags attempts to get "bargain bags" into that set), and those that are consid
ered represent the "evoked" set, from which one alternative is likely to be purc
hased.
The amount of effort a consumer puts into searching depends on a number of facto
rs such as the market (how many competitors are there, and how great are differe
nces between brands expected to be?), product characteristics (how important is
this product? How complex is the product? How obvious are indications of quality
?), consumer characteristics (how interested is a consumer,
generally, in analyzing product characteristics and making the best possible dea
l?), and situational characteristics (as previously discussed).
Two interesting issues in decisions are variety seeking (where consumers seek to
try new brands not because these brands are expected to be "better" in any way,
but rather because the consumer wants a "change of pace," and "impulse" purchas
es. Impulse purchases are, generally speaking, unplanned, but represent a somewh
at fuzzy group. For example, a shopper may plan to buy vegetables but only decid
e in the store to actually buy broccoli and corn. Alternatively, a person may bu
y an item which is currently on sale, or one that he or she remembers that is ne
eded only once inside the store (remember the Wal-Mart article).
Consumerism:
Consumerism is defined as the organised movement of the citizens and the governm
ent to enhance the rights and power of consumerism relation to the sellers.
All products and services are created to enhance the quality of lie for the memb
ers of a society. All marketing transactions should be beneficial to the society
. Very often firms are seen engaging themselves in questionable marketing practi
ces and transactions that have a profound impact on the society at a large. With
the changes in the socio economic environment, very often market place abuses a
re brought to the notice of the policy decision makers either through the media,
consumer awareness groups, consumer themselves.
The basis of consumerism is to protect the consumers from the immoral practices
conducted by the marketers. Such practices may be high prices, high-pressure sel
ling, unsafe products, planned obsolescence and poor services. Marketers have be
en using deceptive advertisements to influence people. Such advertisement is oft
en against the morals and decency standards of the society. For example, the rec
ent ads of Fair & Lovely where a father says Kash mujhe ladka hota , which makes sex
discrimination.
In other words of Peter Drucker, Consumerism is the shame of the total marketing
concept . Every organisation should take marketing decisions keeping in mind the o
rganisation s long-term interests. It would be preferable if companies recognize s
ocietal problems as presenting opportunities. As stated by Drucker Consumerism ac
tually should be, must be, and I hope will be the opportunity of marketing. This
is what we in marketing are waiting for .
In India, Consumerism is still in the infancy stage. In pre-liberalization era,
consumers in India had hardly any voice as regards to their rights in relation t
o the sellers. The inadequate competition and the absolute monopolies created by
the
protection provided by the Government only increased consumer s problems. Since th
e mid 80 s, there have been rapid changes taking place in the socio-economical env
ironments. The market has been flooded with goods and services and it has become
difficult for the consumers to ascertain the quality or utility of these goods
and services.
Consumerism in India has not progressed because of various reasons, which is as
under :
Vastness of the country, imbalance in distribution of wealth, backwardness.
The high rate of illiteracy and ignorance.
Traditional outlook of the people to suffer in silence, lack of information and
education.
Inability to understand the technical complexity completely of the goods and acc
epting manufacturer s at face value.
Consumer s tendency to get carried away by clever advertising and promotional tact
ics.
Consumerism is still in its infancy stage and hence is not developed and organis
ed. The existing laws are incapable of effectively implementing and enforcing th
e objectives.
The Government of India has been instrumental in creating an environment through
legislation to give a protection to the consumers. There have been various meas
ures taken by the Government in this regard, which are :
Statutory regulation.
Development and expansion of the public sector.
Social Responsibility :
Traditionally, business organisations were involved in commercial activities aim
ed at making a profit. However, today business is considered to be social instit
ution forming an integral part of the social system. Because of the social respo
sisblity of the business, it is moral responsibility of the businessmen to be bo
und by certain ethical principals and rules of conduct, which reflects its respo
nsibility, authority, and dignity.

Few of the important ethical principles are as under:

 Do not deceive or cheat customers by selling sub-standard or defective products
by under measurement or by any other means.
Do not resort to black marketing or profiteering.
Do not destroy or distort competition.
Do not tarnish the image of competition by unfair practices.
Be precise, accurate and sincere in the advertising labelling and packaging of g
oods and services.

A growing number of organisations are looking beyond profits and trying to achie
ve improvement in lives of the poorer sections of the society. There are compani
es that are finding out new ways of protecting the environment. A large number o
f companies have been striving to achieve international standards like ISO 14000
. In India, groups like the Tata s have been striving to achieve social responsibi
lities right from their inception.
Reasons Behind The Rise Of Consumerism:
Make the business community more honest, efficient, responsive and responsible.
The manufacturers and sellers will be compelled to adopt fair practises, when co
nsumers learn to exercise their rights and are not taken for granted.
Consumerism can also be viewed as an opportunity for business community to serve
the consumers in a better and more efficient manner. It will prove to e weapon
for marketers to effectively implement the societal concept of marketing.
In case of imperfections in the demand and supply situation in the market, conce
rned marketers can help the consumers to get rid of the traders who resort to pr
actices such as hoarding, black marketing etc.
Consumerism will also ensure tat the Government takes the necessary measures to
protect consumer s interest by guarantying their legitimate rights.