CB

MS
7
1
Consumer Behaviour
Consumer Decision Making
Individual Consumer
Environmental Influences
Organisational Buyer Behaviour
CB
MS
7
2
Consumer Action Determines Sales
Now, marketing managers are convinced about
1) Delivering product benefits
2) Changing brand attitudes
3) Influencing consumer perceptions
CB
MS
7
3
Satisfaction of Consumer Needs
1) Defining consumer needs
2) Identify the segment of consumers that have these needs
3) Positioning new products or repositioning existing products
to meet these needs
4) Developing marketing strategies to ensure the communication
& delivery of product benefits
CB
MS
7
4
HISTORICAL
PERSPECTIVE
CB
MS
7
5
Marketing Strategies must be Based on
Defined Consumer Needs Marketing Concept
CB
MS
7
6
Development of the Marketing Concept
- Formulated in the early 1950s
- Mass Production and Mass Marketing
- Behavioral Research in the infancy
- Emphasis on Economies of Scale
- No economic necessity due to less purchasing power
- End of Korean war in 1953 changed the Sales Oriented Focus
- Marketers talk Behavioural terms
CB
MS
7
7
Implications for Consumer Behaviour
1) Providing Spur to Behavioural Research
2) Creating more Customer Oriented framework for
Marketing Strategies
3) Encouraging measurement of the factors that influence
consumers to purchase
4) Emphasising Market Segmentation
5) Emphasising positioning to meet consumer needs
6) Creating greater selectivity in advertising and personal selling
7) Creating more selective media and distributive outlets
CB
MS
7
8
Strategic Applications
1) Identifying new opportunities in the
marketplace
2) Evaluating the strengths and weaknesses
of the existing brand offerings
Two
Important
Tasks
CB
MS
7
9
So That
A 1: Define and segment the market
A 2: Plan marketing strategies
A 3: Evaluate marketing strategies
A 4: Assess future consumer behaviour
CB
MS
7
10
A simple model of Consumer Behaviour
The Individual
Consumer
Environmental
Influences
Applications of Consumer
Behaviour to
Marketing Strategies
Consumer
Decision Making
Consumer
Response
Feedback to Consumer
Postpurchase evaluation
Feedback to Marketer
Development of Marketing Strategies
1.
2.
3.
4.
CB
MS
7
11
Consumer Decision Making
Complex Decision
Making
(Autos, Major Appliances)
Variety seeking
(Cereals)
Inertia
(canned Vegetables,
Paper Towels)
Brand Loyalty
(Cigarettes, Perfumes)
High Involvement
Purchase Decision
Habit
(Little or no Information
Search, consideration of
only one brand)
Low Involvement
Purchase Decision
Decision Making
(Information Search,
consideration of
brand alternatives)
CB
MS
7
12
Complex Decision Making
Involves
1) Active information search
2) Evaluating alternative brands
3) Evaluation of brand purchased
CB
MS
7
13
Importance of a Consumer Model
1) Encourages a total and integrative view
2) Helps identify means of information necessary
3) Encourages quantification of these variables
4) Provides a basis for segmenting markets
5) Provides a basis for developing strategies
CB
MS
7
14
Limitations
1) Identifies only the most common elements
2) Components of the model may not be equally important
for all product categories and
3) for all usage situations
4) Will vary among individuals in the same market
5) All purchase decisions are not equally complex
CB
MS
7
15
A Model of Complex Decision Making
For
1) High priced goods
2) Products associated with high performance risks
3) Complex products (Stereo set, Home Computers)
4) Speciality goods (Sports Equipment, furniture)
5) Ego association (Clothing, Cosmetics)
CB
MS
7
16
Need
Arousal
Purchase
Postpurchase
Evaluation
Consumer
Information
Processing
Brand
Evaluation
A Model of Complex Decision Making
Feedback
CB
MS
7
17
Input
Variables
Need
Recognition
(Initiation of
decision making)
Consumers
Psychological
Set
Stimulus
Exposure
A - Need Arousal
INTERNAL

1. Consumers Past Experience

2. Consumer Characteristics
Demographics
Life-style
Personality

3. Consumer Motivation

EXTERNAL

Environmental Influences
face-to-face groups
situational determinants
social class
culture

Marketing Stimuli
Product
Price
Promotion
Store
Merchandising
Tension State
Need Criteria




Brand Attitudes

Beliefs about the Brand


Brand likes / dislikes


Tendency to act
CB
MS
7
18
Input Variables - Internal
1) Consumers Past Experience (Economy, Service, etc.)
2) Consumer Characteristics
3) Consumer Motives (Maslow)
Physiological (Food, Water)
Safety (Security, stability)
Social (affection, Acceptance)
Ego (Prestige, esteem, success)
Actualisation (Self-fulfillment)
Demographic
Life-style
Personality
CB
MS
7
19
Input Variables - External
4) Environmental Influences
5) Marketing Stimuli
Product
Price
Promotion
Store
Merchandising
Face-to-face
Situation
Social class
Culture
CB
MS
7
20
Consumers Psychological Set
1) Need Criteria and
2) Brand Attitudes
Made up of two components viz.
Function of
Cognitive i. Beliefs about the brand
Affective ii. Evaluation of brands
Conative iii. Tendency to act
CB
MS
7
21
Stimulus Exposure
1) Reinforce existing brand attitudes and perceptions
2) Search additional information
is a selective process that is directed by the need to
&
CB
MS
7
22
Need Recognition
When the need is recognised
the state of tension occurs
CB
MS
7
23
Input
Variables
Need
Recognition
Consumers
Psychological
Set
Stimulus
Exposure
B - Consumer Information Processing
Selectivity
Perception
of Stimuli
Attention


Comprehension


Retention
Memory
Past Information
New Information
Search for
Additional
Information
Involves

1. Exposure to information
2. Organisation of information
3. Search for information
CB
MS
7
24
Perception of stimuli
More likely when
1) Confirms to consumers past experiences
2) Confirms to consumers current beliefs about a brand
3) are not too complex
4) are believable
5) Relate to a set of current needs
6) Do not produce excessive fears & anxieties
CB
MS
7
25
Memory
Information that is retained
is stored in the consumers
Memory!
CB
MS
7
26
Search for Additional Information
Most likely when
1) Feels that alternative brands being considered are inadequate
2) Has insufficient information about the brands under
consideration
3) Receives information from friends or media sources that
conflicts with current information/beliefs and past experiences
4) Is close to deciding on a particular brand and would like
to confirm expectations about performance
CB
MS
7
27
Perception
of Stimuli
Changes in
Consumers
Psychological Set
Need
Association
C - Brand Evaluation
Expected
Satisfaction
Define needs,
Establish priorities
of needs
Compensatory
decision rules
Noncompensatory
decision rules
Changes in Need Criteria


Changes in brand attitudes
Arrive at expected
satisfaction for each
brand based on need
association
CB
MS
7
28
Changes in Consumers Psychological Set
1) Changes in need criteria used to evaluate brands
2) Changes in beliefs about the brands Cognitive
3) Changes in brand evaluation Affective
4) Changes in tendency to act Conative
CB
MS
7
29
Need Association
A: A compensatory model for Brand Evaluation
B: A noncompensatory model for evaluation
Develop a priority of needs and relate a brands characteristics
to these needs
&
CB
MS
7
30
Compensatory model for evaluation
Consumers do
Define their needs & order them by importance along with
goal object
2) Determine the brands under consideration
3) Determine degree to which brands satisfy the needs
4) Select brand that will best meet the more important needs
1)
CB
MS
7
31
Contribution
To expected
satisfaction
Importance
of need
Need Criteria
Goal Object Make /
Brand
Evaluation
of Brand
Economy 10 Service Cost C1 4 40
C2 8 80
Gas Mileage C1 2 20
C2 8 80
Service 8 Speed C1 8 64
Dependability C2 8 64
& Quality C1 8 64
of Repairs C2 7 56
Performance 8 Smooth ride C1 10 80
Economy C2 8 64
Pick Up C1 10 80
C2 7 56
Styling 2 Exterior C1 10 20
C2 4 8
Interior C1 9 18
C2 7 14
Total Contribution to Expected Satisfaction Count by C1=386 & that by C2=422
CB
MS
7
32
SS model as actually evaluated!
Need criteria
Import
ance of
Need Brand
Evaluation
of Brand
Contribution
to expected
satisfaction
Cost 8 Skoda Octivia 6 48
Honda Civic 7 56
Optra Magnium 8 64
Toyota Corolla 8 64
Economy 10 Skoda Octivia 10 100
Honda Civic 5 50
Optra Magnium 8 80
Toyota Corolla 7 70
Rear Defrogger 2 Skoda Octivia 6 12
Honda Civic 7 14
Optra Magnium 8 16
Toyota Corolla 8 16
Fuel Type 8 Skoda Octivia 8 64
Honda Civic 6 48
Optra Magnium 8 64
Toyota Corolla 6 48
Interior Styling 4 Skoda Octivia 8 32
Honda Civic 9 36
Optra Magnium 7 28
Toyota Corolla 6 24
Exterior Styling 4 Skoda Octivia 8 32
Honda Civic 8 32
Optra Magnium 6 24
Toyota Corolla 5 20
Cost of Maintenance 5 Skoda Octivia 10 50
Honda Civic 7 35
Optra Magnium 7 35
Toyota Corolla 6 30
Total Score Skoda Octivia 338
Honda Civic 271
Optra Magnium 311
Toyota Corolla 272
Compensatory model used for evaluation
SS Sunil Sood PG Retail (06-08) - #176
CB
MS
7
33
Service Cost C1 4 Eliminated
C2 8
C3 8
C4 8
Gas Mileage C2 8
C3 8
C4 6
Speed
of Repairs
C2 8
C3 6
Selection = C2
Remark
Goal Object Make /
Brand
Evaluation
of Brand
Eliminated
Eliminated
Noncompensatory model for evaluation
Assumes that consumers rate brands by one criterion at a time
rather than evaluating each brand across all criteria.
CB
MS
7
34
SS model as actually evaluated!
Non-compensatory model used for evaluation
Economy
Skoda Octivia Y
Honda Civic N
Optra Magnium Y
Toyota Corolla Y
Cost of Maintenance
Skoda Octivia Y
Optra Magnium Y
Toyota Corolla N
Fuel Type
Skoda Octivia Y
Optra Magnium N
SS Sunil Sood PG Retail (06-08) - #176
CB
MS
7
35
Expected Satisfaction
The brand that comes closest
to meeting the most important needs
is expected to provide the most satisfaction
CB
MS
7
36
Input
Variables
Need
Recognition
Consumers
Psychological
Set
Stimulus
Exposure
D & E - Purchase & Postpurchase Evaluation
Perception
of Stimuli
Search for
Additional
Information
Selectivity
Changes in
Consumers
Psychological Set
Need
Association
Expected
Satisfaction
Intention
to Buy
Purchase
Postpurchase
Evaluation
Feedback
No
Purchase
Tension State
Instrumental actions
Outside Constraints
CB
MS
7
37
Intention to Buy
Instrumental actions viz
1) Select a dealer
2) Decide when to purchase
3) Go to place of purchase
4) Arrange for financing
MNC*
CB
MS
7
38
Purchase
1) What influenced consumers to buy?
2) Will they be satisfied after purchase?
Issue for Strategies
&
CB
MS
7
39
Postpurchase Evaluation
Done in the process of consumption
1) By the consumer and not by the purchaser
2) Purchase depends on consumer expectations of the
degree to which brands are likely to satisfy needs.
3) Whether the brand is likely to be repurchased
CB
MS
7
40
Satisfaction versus Dissatisfaction
S => reinforces +ve attitudes
towards brands
CB
MS
7
41
Postpurchase Dissonance
Any ve information about the chosen product causes
It means conflicting results from two contradictory beliefs
CB
MS
7
42
How consumers react
1) Ignoring the dissonance information

2)
Selectively interpreting the information by saying that any
brand will have occasional lemon.

3)
Lowering level of prior expectations, though few problems,
acceptable!

CB
MS
7
43
1) Focus on +ve performance and tend to dismiss
or rationalise the ve!!
ASSIMILATION THEORY
2) CONTRAST EFFECT (Discard it!)
Ways
CB
MS
7
44
Habit, Learning and Decision Making
Opposite of complex Decision Making Habit.
1) Habit and learning lead to brand loyalty.
Brand loyalty is the result of consumer involvement.
2) Habit and learning can also lead to buying the same brand
because of inertia. Inertia is the result of lack of involvement.
Habit = Monotony + Boredom
CB
MS
7
45

Selectivity




Tension State
Consumers
Psychological Set
Stimulus
Exposure
Perception Of
Stimuli
Need
Association
Need
Recognition
Post-purcshase
Evaluation
Purchase
Intention to
buy
Satisfaction &
Reinforcement
Dissatisfaction &
Extinction
Outside
Constraints
Revert to Complex Decision
Making
Model of Habitual Purchasing Behaviour
Feedback
CB
MS
7
46
Habit
1) Information seeking
2) Evaluation of alternative choices
Model of habitual purchasing behaviour.
as a limitation or absence of
&
Classification of habitual purchasing behaviour.
CB
MS
7
47
Was old brand repurchased?
No* Yes
How many brands were thought of
at outset of decision process?
Many*
A
Few
One
Was old brand among
those thought of?
Was old brand one mainly
thought of?
No* Yes No* Yes
Any brand-related info
seeking?
Any brand-related info
seeking?
Yes No** Yes** No***
*Complex
decision making
**Decision making
that approaches
habit
***Habit
A classification of Habitual Purchasing Behaviour
CB
MS
7
48
Functions of habit
Habit provides two important benefits to consumers.
1) It reduces risk
2) It facilitates Decision Making.
2) More reliance on information on price and availability
Less reliance on product specific information (say, freshness)
Result is
1) A shift in type of information sought
General product information Specific brand information
CB
MS
7
49
Consumers Psychological Set
Distribution ..Extensive
Product ..Packaged goods, few services and
direct selling
Advertising ..reminder
In-store stimuli..More display, Shelf position
Pricing ..Deals, special sales, free samples.
CB
MS
7
50
Limited decision
making
habit
Complex
decision
making
Repetitive Purchases
Probability of
purchasing same
brand again
Repetitive Purchases
Time spent in
prepurchase
information
search
Complex
decision
making
Limited decision
making
habit
CB
MS
7
51
Inducing a Switch from habit to Decision Making
1) Advertise new features
2) New feature never tired
3) Free product samples, Coupons or price specials.
4) Line extension of existing brand
CB
MS
7
52
Habit and Consumer Learning
Learning theory
Key concepts => Contiguity, reinforcement, extinction
LT1: Classical Conditioning
LT2: Instrumental Conditioning
LT3: Cognitive Learning
Behaviouristic
Cognitive
CB
MS
7
53
Types of Learning Theories
Learning Theories
Behaviorist Cognitive
Classical
Conditioning
Instrumental
Conditioning
CB
MS
7
54
LT1: Classical Conditioning
Secondary stimulus is paired
with
Primary stimulus that already elicits a particular response.
Eventually, the secondary stimulus will elicit the same
reaction as the primary stimulus.
Marlboro
The pairing results in association formation.
Repetitive stimuli & establishment of a close association
contiguity between a secondary stimulus (Social Success) & a
primary stimulus (The Brand)
CB
MS
7
55
LT1: Classical Conditioning
Unconditioned
stimulus
Conditioned
stimulus
Unconditioned
response
Conditioned
response
Emphasis: Association through repetition and contiguity
CB
MS
7
56
1) Individual determines the response that provides greatest
satisfaction.
2) Response is within conscious control of individual.
3) Subject is free to act in a variety of ways. The
consequences of the act (i.e. degree of satisfaction or
dissatisfaction) will influence future behaviour.
.B.F.Skinner.
LT2: Instrumental Conditioning
4) Reward repeat v/s punishment act.
CB
MS
7
57
LT2: Instrumental Conditioning
Behaviour
Reward
or
Punishment
Increase or decrease in
probability of response
Emphasis: Reinforcement, dependence of outcome on learners action
CB
MS
7
58
Reinforcement
Increases probability of purchase
of same brand repeatedly => HABIT
CB
MS
7
59
Extinction and forgetting
1) Consumer dissatisfaction leads to extinction
2) Stimulus no longer repeated / perceived leads to forgetting
Probability
Of
purchasing
on
the next trial
50%
100%
1 2 3 4 5 6 7 8 9
No. of repetitive exposures over time.
n
CB
MS
7
60
Application of LT 2
1) Focus on reinforcement so
2) Product satisfaction
3) Role of advertising is to increase the consumers
expectation of reinforcement
4) Sales promotion should create initial inducement
P.S. LT 2 is closer to HABIT than LT 1
CB
MS
7
61
1) Learning is problem solving process.
Thought process involved in consumer learning
2) Awareness, Interest, Evaluation.
LT3: Cognitive Learning Theory
3) Emphasise thought process achieve goals
4) Reinforcement is recognised part of cognitive learning.

LEARNING is result of INSIGHT.
CB
MS
7
62
LT3: Cognitive Learning Theory
Goal
Purposive
Behaviour
Insight
Goal
Achievement
Insight Insight
Emphasis: Problem solving; understanding relationships
CB
MS
7
63
Brand Loyalty
Close link between
Habit, learning and brand loyalty.
Brand loyalty represents a favourable attitude towards and
consistent purchase of, a single brand over time
CB
MS
7
64
A 1) Instrumental Condition
(1. Stochastic and 2. Deterministic)
Two Approaches
A 2) Cognitive Theory
(1. Tucher Versus 2. Jacoby)
CB
MS
7
65
1)
Stochastic Model
since doesnt predict one specific course of action
probability terms
2)
Deterministic Model
. Since predict a particular course of action based
on input variables such as needs, attitudes,
consumer characteristics, etc.
E.g. Habit model
CB
MS
7
66
A1: Instrumental Conditions - Behavioural
1) Sequence of purchase
2) Proportion of purchase
Rely on consumer panel data, measure Brand Loyalty by
&
CB
MS
7
67
Limitations
1) Past behaviour may mislead.
E.g.. Brand 1 for self brand 2 for wife and high priced brand 3
for guests
2) Purchase may not reflect reinforcement
3) Multidimensional; concept not just past behaviour but
commitment to brand
Note: Only 2a) & 2b) => A1
a) reversion (switch back to original)
b) conversion (loyal to new brand)
c) vacillation (random switches)
d) experimentation (systematic trial)
CB
MS
7
68
1)
Tucher
No consideration should be given to what the subject
thinks or what goes on in his central nervous system.
His behaviour is the full statement of what brand loyalty
is.
2)
Jacoby
To exhibit brand loyalty implies repeat purchasing
behaviour based on cognitive, affective, evaluative
and predispositional factors the classical primary
components of an attitude.
CB
MS
7
69
1) Brand Loyalty includes both attitude and behaviour
2) Favourable attitude together with commitment and
involvement with purchase leads to Brand Loyalty
A2: Cognitive Approach
(DAY)
CB
MS
7
70
Low involvement Decision Making
Product considered not
Important to the belief system
and not strongly identify
a product
Acceptable (optimal X) minimise problems (max benefits X)
CB
MS
7
71
1) More likely to be influenced by reference groups
2) More self confident in his or her own choice.
3) More likely to perceive a higher level of risk in purchase
Brand Loyal Consumer
4) More likely to be store loyal.
CB
MS
7
72
1) Has functional significance
2) Entails significant risks
3) Emotional appeal (JWT)
Consumer Involvement
4) Identified with norms of a group
CB
MS
7
73
Low involvement Hierarchy
1) Act without thinking
2) Receive information passively ..
information catching and not seeking
3) Need. (How is need aroused in low involvement products)
familiarity with repeated advertising.
Thus
1. Brand belief by passive learning
2. Purchase decision
3. May / may not be evaluated
CB
MS
7
74
Perceived Differences Between Brands
Complex Decision
Making or Brand
Loyalty
Variety seeking
Dissonance
Reduction
or Attribution
High Involvement
Few
Low Involvement
Significant
Random
Choice
Experimentation
Inertia
Random
Choice
Spurious
Loyalty
CB
MS
7
75
High Involvement
Few
Differences
Between
Brands
Low Involvement
Significant
Differences
Between
Brands
Model
Beliefs
Evaluation
Behaviour
Model
Beliefs
Behaviour
Evaluation
Model
Behaviour
Beliefs
Evaluation
Model
Beliefs
Behaviour
Theory
Cognitive Learning
Theory
Passive Learning
Theory
Dissonance or
Attribution theory
Theory
Passive Learning
Decision Process
Complex Decision Making
or Brand Loyalty
Decision Process
Variety Seeking
Decision Process
Dissonance Reduction or
Attribution
Decision Process
Inertia
CB
MS
7
76
1) Complex decision Making and Brand Loyalty
2) Inertia a passive process
3) Variety Seeking
Earlier figures show
4) Dissonance Reduction or Attribution
a) information processing
b) brand choice
c) evaluation or X !!
a) try variety of brands
b) little psychological or social involvement
c) brand switching exists!
(*1982 R.H. Bruskin)
CB
MS
7
77
Dissonance Theory
Dissonance is a state of post purchase conflict created by
contradictory belief.
If consumer is involved in the purchase decision and sees
little difference between characteristics of
several brands then purchase dissonance is likely to result
regardless of the brand chosen.
1) Behaviour occurs first
2) Brand beliefs are formed to support the chosen brand
3) Brand is favourably evaluated
CB
MS
7
78
So Attribution Theory
{Since I bought it
it must be good!}
Consumer will attribute certain motives to their actions
after the fact.
CB
MS
7
79
1) If significant difference => advertise
2) No perceived brand difference=> advertising should
Marketing Implications
(I) Complex decision Making V/s Dissonance
a) influence
b) reassure, once choice made
CB
MS
7
80
1) For LI advertising
2) For HI advertising
Marketing Implications
(II) High Involvement V/s Low Involvement
a) do more than create awareness
b) influence with persuasive messages
c) content is the key (but not the repetition)
d) complex message involved and varied A/V
e) likely to deal more directly with desired product benefit
a) create awareness
b) familiarity through relations
c) only a few points should be emphasised
d) positively identified symbol with brand to be advertised
CB
MS
7
81
A) Advertising
B) Positioning: - LI to solve problem, HI to deliver benefit
C) Price: - LI products are frequently purchased on price alone
(REF: Lastovicka in study of margarine)
D) Sales Promotion: - Hence high for LI
(brand switch when brand reverts to normal price)
E) In Store Condition: - Also high for LI product
F) Distribution: - widespread (Horizontal) distribution for LI
G) Product trial: - Important for LI product
CB
MS
7
82
1) KRUGMANS Theory of passive Learning.
2) SHERIFS Social Judgment Theory.
3) THE ELABORATION LIKELIHOOD MODEL
Consumer Involvement
CB
MS
7
83
1) TV is L.I. medium that results in passive learning,
little influence on attitudes
2) TV advertising is animate, viewer is inanimate.
3) Pace of viewing is out of control, little opportunity for
reflection of making connections
L.I. Theory 1: KRUGMANS Passive Learning
4) TV is effective for L.I. products
5) The public lets down its guard to the repetitive
commercial use of television.
Perspective of Television
CB
MS
7
84
1) Info processors
2) Info seekers
3) Active audience for advertising
L.I. T1 V/s traditional views
4) Evaluate brands before buying
5) Seek to maximise expected satisfaction
Customers are
6) Personality and lifestyle related to Consumer Behaviour
7) Reference groups influence Consumer Behaviour
CB
MS
7
85
1) Sheriff describes an individuals position on an issue
according to that individuals involvement with the issue.
2) Concept of involvement with latitude of
(Say H.I., with definite opinion will a less, b more and c few!)
a) Acceptance, b) Rejection, c) Non committed.
L.I. Theory 2: Sheriffs Social Judgment
a
b
c
(NOTE: (1) President = H.I. & (2) State = L.I. election)
CB
MS
7
86
1) THE WAY (PROCESS H.I. and L.I. Conditions).
2) Elaborate (central) to Non-elaborate (peripheral)
3) Degree of elaboration depends on the RELEVANCE
L.I. Theory 3: Elaboration likelihood Model
4) Uninvolved customer is PASSIVE so provide stimuli
that are peripheral to the message.
Petty and Cacioppo model
CB
MS
7
87
1) Should try to get C more H.I.
2) Repetitive buying inertia to variety seeking
3) Should advertising perspective differ from L.I. v/s H.I.
STRATEGIC ISSUE IN L.I. DECESION MAKING
4) Should segmentation be a basis of L.I.- H.I. for a particular
product category.
These points are covered one slide each
CB
MS
7
88
1) Link product to some involving issue
2) Link product to some involving personal situation
3) Link product to some involving advertising
SHIFTING CONSUMER FROM
Low Involvement TO High Involvement
4) Change importance of product benefits
5) Introduce important characteristics in product
CB
MS
7
89
SHIFTING CONSUMER FROM
INERTIA TO VARIETY SEEKING
If brand market leader Continue inertia
Hence judicious selection of marketing mix
CB
MS
7
90
1) Focus on few key points
2) High repeat advertising short duration
3) Considerable LEEWAY acceptable to consumer
ADVERTISING STRATEGIES FOR L.I. PRODUCT
4) Visual & new message components emphasized
5) Advertising can be primary means of differentiating from
competition
6) T.V. (rather than print) be primary vehicle
CB
MS
7
91
1) Introspect strategic issues (& philosophy)
2) Toothpaste, say, H.I., L.I. & medium I
3) Cereal is L.I. product but parents concerned , nutritional
benefits for the children are thus H.I. consumers
Segmentation by Degree of Customer Involvement
4) Where it is possible to identify H.I. & L.I. marketers should
consider differentiation
Part 1 Consumer Decision Making Concluded!
CB
MS
7
92
THE INDIVIDUAL CONSUMER
1) Consumers thought variables
2) Consumers
Demographics
Lifestyle
Personality characteristics.
Perceptions
Attitudes.
Needs
CB
MS
7
93
Consumers Thought Variables
CTV are CENTRAL to CB since they affect development of
product and promotion strategies.
Perceptions
Perceptions provide criteria for evaluating promotional
effectiveness by indicating levels of brand and advertising
awareness.

Brand Attitudes
Brand attitudes provide basis for determining whether the
marketer is positively influencing.

Needs
Needs define areas of market opportunities for new products
and repositioning.
CB
MS
7
94
Consumers
Demographics
Lifestyle
Personality characteristics
are important in describing the consumer and are used to
segment the market.

Management wants to know the characteristics of its potential
users so that it can develop promotional strategies to appeal
to them and select media vehicle/s to reach them.
CB
MS
7
95
CONSUMER PERCEPTIONS
AND
INFORMATION PROCESSING
CB
MS
7
96
Perceptions
are the basis by which consumers
process the information
communicated by advertisers
(communicators)
and other sources of marketing
and environmental stimuli.
CB
MS
7
97
A. Key step in perception of marketing stimuli viz selection and
organization of stimuli
B. Model of information processing for H.I., L.I. decisions.
C. What consumers are perceiving and processing-marketing
stimuli.
CB
MS
7
98
A. Consumer Perceptions
I. Selective Perception
II. Perceptual organization
Two processes are
&
CB
MS
7
99
I. Selective Perception
1) Selective Exposure
2) Selective Attention
3) Selective Comprehension
4) Selective Retention
CB
MS
7
100
Selective Exposure
Engel Study
New car purchasers

recall and interest in advertising of own cars
CB
MS
7
101
Selective Attention
Brehm Study
Supportive information, Avoid contradictions

Choose gifts Report +ve vs. ve
CB
MS
7
102
Selective Comprehension
Kasserjian and Cohen Study
Interpret discrepant as consistent

Smoker : Cancer 80% : 52%
CB
MS
7
103
Selective Retention
Bogart Study
Remember relevant to Decision

2 min. ago ad. Identify Later content %
Dropping !
CB
MS
7
104
Routine and
expected
information
screened out
Information
unrelated to needs
screened out
Low
Low
High
High
Degree of Involvement
Level of
Information
CB
MS
7
105
1) SP ensures that consumers will receive information most
relevant to their needs and to brand evaluation =>
Perceptual vigilance (size of same coin- big by poor
children)
2) consumer sometimes distort information to conform
their beliefs and attitude
Functions of selective perception: -
second function of SP is called as perceptual defense.
CB
MS
7
106
Conditions likely to produce perceptual vigilance
1) Consumer needs structure (say mileage oil ads)
2) Greater the needs greater the perceptual vigilance (technology
products) vigilance is in selecting
3) Also true for low need vigilance is in discarding
4) So, PV is highest when for very H.I. & L.I.
When H.I.=> Information unrelated to needs is out
When L.I.=> Routine/expected information is ruled out.
CB
MS
7
107
Conditions Likely to produce Perceptual Defense.
1) Stronger beliefs and attitudes, greater PD
2) Greater consistency of experience, Greater PD., jewelers, family
doctors.
3) Greater anxiety produced by stimulus, greater PD
4) Greater level of post purchase dissonance, Greater
likelihood of PD
CB
MS
7
108
Perceptual Equilibrium
When Consumers choose information consistent
with prior beliefs or interpret information to
confirm to these beliefs they are processing
information to ensure perceptual equilibrium
CB
MS
7
109
In support are
1) Sheriff's social judgment theory.
2) Heiders balance theory.
When information about an object conflicts with the
consumers beliefs balance will be achieved by changing
ones own opinion about the object, the sources of
information or both.
3) Cognitive dissonance theory.
CB
MS
7
110
Perceptual Disequilibrium
Consumer do have conflicts with prior beliefs
and often change brands however, such
Conflicts or Disequilibrium can occur either
before or after the purchase
CB
MS
7
111
Disequilibrium before the purchase
1) Consumer is more likely to listen since commitment has
not been made
2) So, accepts contradictory information before purchase.
3) Such information, in fact may be more revealing
4) Once decision => Contradictory information out for
Perceptual Equilibrium
CB
MS
7
112
Disequilibrium after the purchase
1) Consumer also accepts discrepant information after the
purchase
2) Refer learning and cognitive dissonance theory.
3) Result is reduction in probability of repurchase
80% non smokers accept link between smoking and cancer,
over 50% heavy smokers also accept the link, these
smokers are in state of Disequilibrium.=> Result proves
perceptual Equilibrium.
CB
MS
7
113
II.
PERCEPTUAL
ORGANISATION
CB
MS
7
114
Principle 1:- A tendency to place information into logical
categories, Categorization helps consumer
process, know information quickly and efficiently
and also helps consumer to classify new information.
Principle 2: - Integration means various stimuli will be perceived
as organized whole, giving an integrated meaning
for the stimuli. (derived from GESTALT psychology
THE WHOLE is greater than SUM of parts Ex: every
component of advertising => brand image)
II. Perceptual organisation
CB
MS
7
115
Perceptual categorization
Consumer categorises stimuli by
1) Level say price ,H/M/L , size ,L/M/S etc
2) Association- Brand name , Category
3) Generalisation- new information as something familiar
Resulting in Perceptual Scripts
CB
MS
7
116
Perceptual Integration
PEOPLE ORGANIZE PERCEPTIONS
TO FORM A
COMPLETE PICTURE OF AN OBJECT
GESTALT psychologists basic hypothesis
1) Closure, 2) Grouping and 3) context
CB
MS
7
117
1) Closure =>
2) Grouping =>
A variety of information is perceived as CHUNK.
Thus chunking of information through
Proximity .1
st
and 2
nd
due closeness
Similarity. Stereotyping
Continuity: Grouping and uninterrupted.
Tendency to fill in the missing elements when
the stimulus is incomplete.
3) Context =>
Tendency to perceive by context
Figure. prominent stimuli => perception
Ground (back) less prominent to stimuli => perception
CB
MS
7
118
CB
MS
7
119
CB
MS
7
120
B. Information Processing
I) High Involvement Information Processing
II) Low Involvement Information Processing
&
CB
MS
7
121
3) Storage in memory and eventual retrieval of information
is used for brand evaluation
1) Select stimulus get stored in memory
Pay Attention=> stimulus
Comprehension => stimulus
Retaining => stimulus
2) In process of selecting stimulus consumers organize
themselves by
Categorisation
Integration
I. High Involvement Information Processing
Is extension of Information Processing in Complex Decision Making
CB
MS
7
122
Search For
Additional
Information
(External
Source)
STIMULUS
EXPOSURE
Consumers
Psychological Set
Perception Of Stimuli


Selection
Attention

Comprehension

Retention


Organisation

Categorisatio
n


Integration

STORAG
E
MEMORY
RETRIVAL
(Internal Search)
Brand
Evaluation
Changes in Beliefs
about the brand

Changes in brand
Evaluation

Changes in Tendency to
Act

High Involvement Model of Information Processing
CB
MS
7
123
II. Low Involvement Information Processing
Information can be stored in
memory without going through
a sequence involving
attention and
comprehension
CB
MS
7
124
Search For
Additional
Information
(External
Source)
STIMULUS
EXPOSURE
Consumers
Psychological Set
Perception Of Stimuli


Selection

Retention


Organisatio
n

Categorisation


Integration

STORAG
E
MEMORY
RETRIVAL
(Internal Search)
Brand
Evaluation
Changes in Beliefs
about the brand

Changes in brand
Evaluation

Changes in Tendency to
Act

Low Involvement Model of Information Processing
CB
MS
7
125
Steps in information processing
Step1: - Selection
Ref: Elaboration Likelihood Model (ELM)
e.g. Huggies
Step2: - Organisation
Resulting in information processing strategies
Reason : Consumers need some set of guidelines
or decision rules
Step3: - Memory
Frequency of advertising for retention
Attribute ratings for best brand
(Concept study result Testing )
CB
MS
7
126
TYPES OF
STRATEGIES
BRAND
STRATEGIES
NONBRAND
STRATEGIES
BRAND
EVALUATION
INFORMATION
CHUNKING
PROCESSING BY
ATTRIBUTE
PROCESSING
BY OBJECT
Information Processing Strategies
CB
MS
7
127
Marketing Stimuli
&
Consumer Perception
CB
MS
7
128
C. Marketing Stimuli & Consumer Perceptions
Marketing Stimuli:-
1) Primary Stimuli:- Product and its components
2) Secondary Stimuli:- Words, pictures, symbols, or other
stimuli associated with the product like price,
merchandising, sales, promotion etc.
Any communication or physical stimulus that is designed
to influence consumer
CB
MS
7
129
Key Requirement: Product Concept Development
is a bundle of product benefits that can be directed to the
defined needs of consumers through messages, symbolism
& imagery and it is organization of secondary stimuli
Product concept
CB
MS
7
130
Stimulus factors affecting perceptions
A) Structural Factors
B) Sensory factors
Smell :- perfume=>expensive v/s cheap
Taste :- Strong => Coffee
Feel :- Textiles
Colour (& such common factors)
Size:-Increase in Impact=Square root of size
Position:-Specific pages, upper portion etc.
Colour:-Colour ad prefer to B&W ad.
Contrast:-Produce increased attention
Novelty:-Attention getting device
CB
MS
7
131
Stimulus discrimination
Whether consumers can discriminate
Hence,
Advertising is the key ingredient!
CB
MS
7
132
The Just Noticeable Difference.(JND)
Differential threshold exists in comparing 2 stimuli
This differential threshold represents JND
CB
MS
7
133

CB
MS
7
134
CB
MS
7
135
Webers law
1) Stronger the initial stimulus, greater the change
required for (new) stimulus to be seen different
2) Increase in difference required to reach JND is CONSTANT
K=I/IK=constant , I = original, I=
e.g. for a category of music system.on a price of 100$, 10$ increase is JND
Two German psychologists (100 yrs ago)
&
CB
MS
7
136
Absolute threshold:-
Below which consumer cannot direct stimuli at all.
Subliminal perception:-
Perception of a stimulus below the conscious level.
(Limen.Threshold level at which perception occurs)
Note:-Vicary Test
eat popcorn and drink coca cola shown in movie theatre
for 1/3000 th of a second at intervals of 5 seconds
58% & 18% growth respectively
CB
MS
7
137
Stimulus generalisation
Consumers learn to generalise from 1 similar stimulus to another
(Similar to classical conditioning)
(Brand loyalty is a form of stimulus generation)
e.g. Automobile=horseless carriage (horse + carriage)
at the time of first introduction
CB
MS
7
138
CB
MS
7
139
Individual differences in Stimulus Perception
On account of three characteristics viz.
1) Perceptual ability
2) Perceptual Style
3) Perceptual Disposition
CB
MS
7
140
1) Perceptual abilities
Three components viz.
1) JND level
2) Adaptation level
(adjusting to the stimuli)
3) Attention span.
(Number of times perceived)
are different
for different
Consumers
CB
MS
7
141
2) Perceptual styles
Certain consumers have a propensity to process information
in a certain way.
1) By attitude
2) By object
3) By simple decision rules
This PROPENSITY defines perceptual style
CB
MS
7
142
3) Perceptual predispositions
Consumers needs, attitude and
past experiences will affect how
consumer perceives stimuli
CB
MS
7
143
Measuring Consumer Perception
1) Exposure
2) Attention
3) Comprehension
4) Retention
CB
MS
7
144
Measuring Information Processing
1) Amount of information consumers require
2) Processing strategies they use
3) The way information is categorized
4) The way it is evaluated
CB
MS
7
145
Consumer Attitudes
And
Needs
CB
MS
7
146
Measures of attitude and need components
Attitude components
Brand beliefs (b)
b1: How likely is it that Brand A has the following characteristics:
Brand A is a highly carbonated cola
Improbable__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Probable

Brand A is a sweet cola
Improbable__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Probable
b2: Rate Brand A by the following characteristics:
Highly Carbonated__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Not Carbonated

Sweet__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Not Sweet
b3: Indicate how well Brand A is described by the following characteristics:
Brand A is a highly carbonated cola
Describes very well__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Does not describe at all

Brand A is a sweet cola
Describes very well__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Does not describe at all
CB
MS
7
147
Measures of attitude and need components
Attitude components
Overall Evaluation (A)
A1: Rate Brand A as follows:
In general, In general,
I like it very much __ __ __ __ __ __ __ __ __ __ __ __ __ I dont like it at all
A2: Rate Brand A as follows:
Very favourable __ __ __ __ __ __ __ __ __ __ __ __ __ Very unfavourable
A3: Which of the following brands do you prefer most? Which of the brands do you prefer second,
third, etc.?


A4: Suppose you could pick ten free cans of cola and had the choice of any combination of
brands, which brands would you pick? How many cans of each brand?
(Make sure the total adds up to ten cans.)

CB
MS
7
148
Measures of attitude and need components
Attitude components
Intention to Buy (BI)
What is the likelihood you will buy this brand the next time you purchase
cola?
Definitely will buy _____
Probably will buy _____
Might buy _____
Probably will not buy _____
Definitely will not buy _____
CB
MS
7
149
Measures of attitude and need components
Need (Value) components
Direction component (a)
a1: Indicate how would you evaluate the following:
A highly carbonated cola
Good__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Bad

A sweet cola
Good__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Bad
a2: Indicate the degree of satisfaction you would get from the following:
A highly carbonated cola
Very satisfied__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Very dissatisfied

A sweet cola
Very satisfied__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Very dissatisfied
a3: Think about your ideal brand of cola and rate it on the characteristics listed below:
Highly Carbonated__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Not Carbonated

Sweet__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Not Sweet
CB
MS
7
150
Measures of attitude and need components
Need (Value) components
Intensity of Importance (I)
Rate each of the following characteristics based on how important they are
in determining your selection of a brand of cola.

Right degree of carbonation
Very important__ __ __ __ __ __ __ __ __ __ __ __ __ Not important at all

Right level of sweetness
Very important__ __ __ __ __ __ __ __ __ __ __ __ __ Not important at all

CB
MS
7
151
The nature of Attitudes and Needs
are learned predispositions to respond to an object or
class of objects in a consistently favourable or unfavourable
way. - Gordon Allport
Attitudes
CB
MS
7
152
The nature of Attitudes and Needs
are inner motivational states those are aroused by external
stimuli or internal cues..
Needs
(...needs are the goals consumer strives for in making a
purchase)
Needs influence attitudes and attitudes influence purchase.
CB
MS
7
153
Attitudes in HI decisions
Three components of attitudes
1) Beliefs. Thinking or cognitive component
2) Brand Evaluation. Feelings or affective component
(traditional definition of attitudes)
3) Intention to Buy.. Action or conative component.
CB
MS
7
154
Perceived Instrumentality
Brand
Beliefs
Consumer
Needs
Brand
Evaluation
Intention
to Buy
CB
MS
7
155
Study by Woodside
Findings: - Broader multidimensional measure of brand attitudes
predicted intensions to buy much better than narrower single
measure
1) Brand attitudes were measured on a multidimensional
basis by rating of brand attributes
2) And on a one dimensional basis of an overall evaluation
of brand.
THUS
This new definition of an attitude is the basis of multiattribute
models
CB
MS
7
156
Attitudes in L.I. decision
1) Attitudes dont have a central role in L.I. decision
(As in H.I. decision)
2) Attitudes may not have predictive value but frequently
has diagnostic value
CB
MS
7
157
Functions of attitudes
DANIEL KATZ 4 classification
1) The utilitarian function
2) The value expressive function
3) The ego defensive function
4) The organization of knowledge function
CB
MS
7
158
1. The utilitarian function
Attitudes guide consumer in achieving
desired needs
E.g. instant relief analgesic the brand
CREST WHITENS TEETH..
LISTERINE FRESHENS MY MOUTH
CB
MS
7
159
2. The value expressive function
Attitudes express a self concept & value
such as -
system conservative & dress, success &
wealth
PEPSI DRINKERS THINK YOUNG
CB
MS
7
160
3. The ego defensive function
Attitudes protect ego from anxieties and
threats. Mouth washes (Listerine) for
bad breadth avoiding
Marlboro smokers are masculine
CB
MS
7
161
4. The organization of knowledge functions
Attitudes organize the mass of information
Consumers are exposed to daily and help
set up standards on which to judge the
information
7UP is caffeine free {UN- COLA}
CB
MS
7
162
Attitude development
Through a learning process affected by
1) Family influences (e.g. J&J at her wedding mother gifts baby powder
to daughter)
2) Peer group influences
3) Information and experience
4) Personality. (Say aggressive personality by attempt to
excel buys competitive or expensive items.)

CB
MS
7
163
3) Tendency to act (cognitive)..Purchase intact
1) Beliefs (cognitive). 2 Types
informational (with attribute)
evaluative (with benefits)
2) Brand evaluation (affective).one dimension
i.e. poor => excellent or prefer => reject
Attitude components
Is extension of Information Processing in Complex Decision Making
CB
MS
7
164
Relationship between C-A-C (B-E-B)
Note: B-E-B sometimes logically inconsistent
1) Consistency between C-A-C
2) BALANCE THEORY Links Cognitive with Affect
A person seeks to achieve balance between evaluation
and belief
CB
MS
7
165
Need Components
Made up of
1) Direction .. Nature of need (mild to strong coffee).
2) Intensity. Importance of need to the individual
CB
MS
7
166
Attitude
And
need measurement
CB
MS
7
167
BELIEFS



Three methods
b1 rates brand attributes on a probability basis

b2
scaling device called semantic differential

b3 measures accuracy of the description

p.s. Semantic differential equal interval scale
Semantic differential method more popular

CB
MS
7
168
EVALUATION
a1 likeability
a2 favorability
a3
rank order of preference (ordinal scale)
a4 constant sum scale (ratio properties)
CB
MS
7
169
TENDENCY TO ACT
1) Purchase intend scale
2) Standard scale

CB
MS
7
170
NEED
n1 Direction a1,a2,a3 (semantic differential scale is used)

n2 Intensity i1, i2 (importance scale is used)

CB
MS
7
171
The Relationship of Attitudes to Behaviour
1) Evidence of relationship between attitude and behaviour
2) Relationship between intension to buy and behaviour
3) Factors inhibiting the relationship between the attitude
and behaviour.
CB
MS
7
172
The Relationship of Behaviour to Attitudes
1) Cognitive dissonance ..Attitudes change to confirm to
previous behaviour, thus reducing the post purchase conflict
2) Passive Learning..Attitude after usage
3) Disconfirmation of expectation..The two theories of
assimilation and contrast
CB
MS
7
173
Multiattribute Models of consumer attitude
determines how well a brand meets consumer
needs across several product attributes.
Thus helps in diagnosing strength and weakness
of their brands to competition.
CB
MS
7
174
Nature of Multiattribute models
All models regard attitude as a function of consumer beliefs about
the attribute of a brand
They also weigh beliefs by value or importance of the attribute .
E.g. Consumer who regards Pepsi as a strongly carbonated, sweet
cola and places a high value =>will have
positive attitude =>likely to buy.
CB
MS
7
175
The Original Fishbone model
An attitude towards an object depends on the
probability that the object has certain attributes
and on the value, placed on these attributes.
CB
MS
7
176
The Extended Fishbone model (Modifications)
Modification 1----- attitude measurement is directly proportional
to act of purchasing
Modification 2 ---- Other elements - social influence
CB
MS
7
177
Non compensatory models of attitude structures
1) Conjunctive
2) Disjunctive
3) Lexicographic
CB
MS
7
178
Demographics
CB
MS
7
179
Needs and Attitudes v/s Consumer Characteristics
1) Product specific
2) Related to brand / product
3) Subjective
4) Harder to formulate
Are generalized
Not related to brand / product
Standardized, especially demographics
5) Harder to formulate, measure
Measurable
Objective
6) Skewed towards cons behav.
Skewed towards cons description
7) Mrktr unaware of it, is
admitted but probed
Mrktr unaware of it, is flying blind
CB
MS
7
180
Changing Demographic Trends
A) Increased proportion of working women
B) Women employed in traditional male jobs
C) Changing family roles so, %age of males shopping for food,
cooking for family and taking care of young children goes up
D) Changing age composition so, Increased youth market,
senior citizens..
E) Elderly Market Increase in life expectancy,
CB
MS
7
181
Changing Demographic Trends
F) Youth market
High %age of population with high purchasing power
G) Family composition
Increase in divorce rate, joint family goes down (Nest Theory)
H) Changes in birth rate Coupled with mortality rate
I) Income groups HIG/MIG/LIG TO 9 tire
J) Regional trends Urban/rural .. Town specifics
K) Increasing mobility
(e.g. Average American moves 14 times in life)
CB
MS
7
182
Demographics for Marketing Strategy
1) Describe consumers
2) Identify brand or product segments
3) Select media
4) Evaluate the potential for new products
CB
MS
7
183
PSYCHOGRAPHICS
CB
MS
7
184
A mode of living that is identified by how people spend
their time (activities-A); what they consider important
in their environment (interests-I); and what they think
of themselves and the world around them (options-O).
e.g. Activities - work, shopping, hobbies, sports.
Interests family, media, fashion, food.
Opinions themselves, future, politics, culture.
Psychographics - Life Style (AIO grid)
CB
MS
7
185
Changing Life-Style Trends
1) Traditional to Modern
2) Concern for Health and Nutrition
3) Self Orientation.Individual Concerns
4) Conservative to Open
5) More Frugal and Practical life style that reflects concern with
Economic factors and a willingness to be more self sufficient
6) ______________________________________
7) ______________________________________
8) ______________________________________
CB
MS
7
186
1. By activities, Interests and Opinions (AIO)
Wells and Tier Method . Formation of 300 + AIO statements,
ask respondents to agree or disagree on a six point scale.
e.g. I like to be considered a leader. Then reduce to 22
life style dimensions by use of factor analysis.
2. By Purchase Inventories
Describe consumer behavior by their buying activities.
(Say) car conscious man is a heavy purchaser of car wax,
motor oil, grease etc.
This was a study done by Alpert & Gatty
There was a study done between light & heavy beer drinking cons.
It was found light beer drinking ppl were found to be hard drinkers,
outgoing people and such distinct lifestyles
Measuring Life Style Characteristics
CB
MS
7
187
More deep-seated than lifestyle
Since personality variables reflect
consistent, enduring patterns of behavior
PERSONALITY
CB
MS
7
188
Personality Theories
PT1: Trait Theory
PT2: Psychoanalytic Theory
PT3: Social Theory
PT4: Self Concept Theory
CB
MS
7
189
PT 1: TRAIT THEORY
Personality is composed of a set of Traits
that describe general Response
Predispositions.
AgreeDisagree scale is used
Factor Analysis is the technique
CB
MS
7
190
PT 1 : A
Edwards Personal Preference Schedule EPPS
It measures 14 personality items
such as
{achievement, compliance, order}
achievement to rival & surpass others &
to do ones best
compliance to accept leadership & to follow willingly
order to have things arranged & also means
things to be organized
CB
MS
7
191
PT 1 : B
Gordon Personal Profile GPP
Measures responsibility, ascendancy,
emotional stability, sociability
{e.g. DRAVID, SOURAV, SACHIN.}
CB
MS
7
192
PT 1 : C
Thurstone Temperament Schedule
Measures
Dominance,
Stability
and Impulsiveness
CB
MS
7
193
PT 2: PSYCHOANALYTIC THEORY
1) Stress the unconscious nature of personality as a result of
childhood conflict
2) Manifestations of these conflicts determine the adult
personality and frequently influence behavior in a
manner the adult is not aware of
3) Emphasis on unconscious motives and repressed
needs result in a non-empirical approach to personality.
4) In applying FREAUDs theories unconscious motives could
be determined only by indirect methods, hence
5) Two Techniques viz. {1} Depth Interviews and {2}
Projective Techniques =>{situation, cartoon or set of words
given & consumers asked to respond}
CB
MS
7
194
PT 2: PSYCHOANALYTIC THEORY
e.g. Haire project Technique Experiment of 1940 why women
reluctant to purchase instant coffee
2 shopping lists 1
st
regular & 2
nd
. Instant,
Respondents (housewives) asked to project the type of woman
most likely to have developed each list.
List with instant coffee => lazy & poor planner.
Deep - Seated fear out of a concern that their husbands
would feel that women were avoiding their traditional role
as homemakers.

Hence the instant coffee was advertised in family sitying situation
with the husbands approval

p.s. this was later developed as Motivational Research study
CB
MS
7
195
PT 3: SOCIAL THEORY Karen Horny
Freauds disciples shifted due to
1) Social variable {than biological} are more important
2) Conscious motives are more important than unconscious
3) Behavior is most frequently directed to known needs & wants
CB
MS
7
196
KAREN HORNYS THEORY
Personality is developed as an individual learns to cope with
basic anxieties, steaming from parent-child relationship.
Hence three approaches, two coping with anxieties
1) Compliance. Moving towards people
2) Aggressiveness. Moving against people
3) Detachment. Moving away from people
Later COHEN developed CAD scale using thirty five item
inventory. COHEN found
1) Compliance type use more soaps, mouthwash, aspirin
2) Aggressiveness type use more cologne, aftershave,
deodorant & van Heusen shirts
3) Detachment types use more tea but less beer
CB
MS
7
197
PT 4: SELF CONCEPT THEORY
Individuals have concept of self based on who they think
They are and a concept of the ideal self based on who they
think they would like to be.
Q1> consumers are asked to describe how they see
themselves as say happy, serious, modern,
practical etc
Q2> consumers to tell which of the items describe how
they would like to be
{Women who would like to be modern & efficient tend to buy different
brands, tend to shop different stores than the warm/attractive woman.}
Part 2
Individual Consumer concluded
CB
MS
7
198
Consumers buy brands that are perceived as similar to their
self image, either actual or ideal so that there is congruence
between brand image & self image
SELF CONCEPT THEORY