Consumer Behaviour - MKT 531, MBM (Third Semester)

UNIT - 3 Psychology of Consumption

Motivation

Definition and Nature

The word “Motivation” comes from the Latin word “Movere”, which means move. Human motives are based on
needs, whether consciously felt. Motivation is the processes that account for an individual’s intensity, direction,
and persistence of effort toward attaining a goal. The main features of motivation are a goal-oriented continuous
process and a psychological phenomenon that converts abilities into performance. So, motivation is an internal
process. Whether we define it as a drive or a need, motivation is a condition inside us that desires a change,
either in the self or the environment.

“A motive is an inner state that energizes, activates, or moves and directs or channels behaviour goals.”-
Berelson and Steiner

Motives and motivation are two related terms, but they don’t have the same meaning. In other words, motivation
is the psychological process that refers to general behavior. Motive, on the other hand, is the concrete cause of
said behaviour. Thus, motivation is the process itself and the motive is the concrete reason for taking action.

In the consumer behaviour context, Consumer motivation is an internal state that drives people to identify and
buy products or services that fulfill conscious and unconscious needs or desires. The fulfillment of those
needs can then motivate them to make a repeat purchase or to find different goods and services to better fulfill
those needs. Generally two types of motivation: Positive motivation and Negative motivation. 

"Motivation is the energizing force that activates behaviour and provides purpose and direction to that
behaviour. It helps answer the question of "why" consumers engage in specific behaviors". - Hawkins and
Mothersbaugh

Natures of consumer motivation are as following:

1. Motivation is a biological and psychological concept
2. Motivation affects the whole individual, not part of him/her
3. Motivation is never an ending process
4. Non-fulfillment of basic needs makes an individual sick
5. Motivation produces goal-directed behavior
6. Motivation is complex phenomenon
7. Motivation is different from satisfaction, inspiration and manipulation
8. Motivation is an interval feeling
9. Motivation is related to needs
10. Motivation can be either positive or negative

Theories of the Process of Motivation

1. Incentive Theory
Incentive theory began to emerge during the 1940s and 1950s, building on the earlier drive theories established
by psychologists such as Clark Hull. The incentive theory of motivation suggests that people are motivated by a
drive for incentives and reinforcement. It also proposes that people behave in a way that they believe will result
in a reward and avoid actions that may entail punishment.
The value of the same incentive may change depending on the time and circumstance. People may value similar
incentives differently. Psychological and social factors can have a role in determining which people have a
motivation for different incentives. Incentives only work as motivational tools if individuals place value on the
reward they will receive for their actions.
Incentives in the workplace, as in other facets of life, can also be positive or negative:
 Positive incentives: Provide positive assurance that an employee will receive something they desire in
exchange for doing their work well. Examples of positive incentives include recognition, promotions,
raises and so forth.
 Negative incentives: Correct mistakes or discourage certain behaviors. Negative incentives include
reprimands, demotions, pay decreases and other kinds of penalties.

A basic premise of standard economics is that people respond to incentives. The theory of incentives is one of
the major theories of motivation and suggests that behavior is motivated by a desire for reinforcement or
incentives. Thus, in contrast with other theories that might suggest we are pushed into action by internal drives,
incentive theory instead suggests that we are pulled into action by outside incentives. According to this view,
people are pulled toward behaviors that offer positive incentives and pushed away from behaviors associated
with negative incentives. In other words, differences in behavior from one person to another or from one
situation to another can be traced back to the incentives available and the value a person places on those
incentives.

Marketing plays a key role in shaping Consumer attitudes and Consumer attitudes shape buying behavior
towards Products and Services. While Sales is concerned more with a push' approach in reaching products to
Consumers at appropriate places, a lot of incentives are used by companies in influencing consumers shape their
views and choice of products and services. At the level of competition witnessed today, incentives take up the
centre stage in promoting products and services and companies are finding newer ways of influencing prospects
through attractive incentives. Incentives are used to overcome barriers to communication with consumers.

2. Arousal Theory
Arousal is the physiological and psychological state of being awoken or of sense organs stimulated to a point of
perception. It involves activation of the ascending reticular activating system (ARAS) in the brain, which
mediates wakefulness, the autonomic nervous system, and the endocrine system, leading to increased heart rate
and blood pressure and a condition of sensory alertness, mobility, and readiness to respond.

The arousal theory of motivation suggests that people are driven to perform actions in order to maintain an
optimum level of physiological arousal. What exactly is the optimal level of motivation? Well, it varies from
one individual to the next. Some people may require a higher level of arousal, which might motivate them to
seek out exciting and stimulating activities. Other people may do better with much lower arousal levels, so they
might feel compelled to seek out soothing and relaxing activities.
Some Examples:
If you need to raise your arousal levels, you might:
 Engage in physical activity
 Socialize with friends
 Try something new and exciting
 Watch an action-packed movie
If you need to lower your arousal levels, you might:
 Read a book
 Take a bath
 Enjoy a relaxing hobby
 Take a nap
Some assumption of arousal:
 People are motivated by arousal
 People have an optimal arousal level
 People seek experiences that lead to optimal arousal
 Optimal arousal is typically moderate
 High/low arousal negatively affects performance and motivation

The arousal of any particular set of needs at a specific moment in time may be caused by internal stimuli found
in the individual’s physiological condition, by emotional or cognitive processes or by stimuli in outside
environment.
a) Physiological Arousal Bodily needs at any one specific moment in time are based on the individual
physiological condition at the moment. Example, A drop in blood sugar level or stomach contractions will
trigger awareness of a hunger need; A decrease in body temperature will induce shivering, which makes
individual aware of the need for warmth this type of thing, they arouse related needs that cause uncomfortable
tensions until they are satisfied.
b) Emotional Arousal Sometime daydreaming results in the arousal (autistic thinking) or stimulation of latent
needs. People who are board or who are frustrated in trying to achieve their goals or often engage in
daydreaming, in which they imagine themselves in all sorts of desirable situations. Example, a young woman
who may spend her free time in internet single chat room.
c) Cognitive arousal Sometime random thoughts can lead to a cognitive awareness of needs. An advertisement
that provides reminders of home might trigger instant yearning to speak with ones parents.
d) Environment arousal The set of needs an individual experiences at particular time are often activated by
specific cues in the environment. Without these cues the needs might remain dormant. Example, the 8’o clock
news, the sight or smell of bakery goods, fast food commercials on television, all these may arouse the need for
food.

3. Opponent Process Theory

Opponent-process theory is a psychological and neurological model that accounts for a wide range of behaviors,
including color vision. This model was first proposed in 1878 by Ewald Hering, a German physiologist, and
later expanded by Richard Solomon, a 20th-century psychologist. American psychologist Benjamin Avendano
contributed to this model, by adding a two-factor mode.  Richard Solomon developed a motivational theory
based on opponent processes. Basically he states that every process that has an affective balance, (i.e. is pleasant
or unpleasant), is followed by a secondary, "opponent process". This opponent process sets in after the primary
process is quieted. With repeated exposure, the primary process becomes weaker while the opponent process is
strengthened.
The most important contribution is Solomon's findings on work motivation and addictive behavior. According to
opponent-process theory, drug addiction is the result of an emotional pairing of pleasure and the emotional
symptoms associated with withdrawal. At the beginning of drug or any substance use, there are high levels of
pleasure and low levels of withdrawal. Over time, however, as the levels of pleasure from using the drug
decrease, the levels of withdrawal symptoms increase.
Opponent-Process theory explains that two things occur when a person receives a stimulus that elicits an
immediate positive or negative emotional reaction: The immediate positive or negative emotional reaction is
felt. A second emotional reaction occurs that has a feeling opposite to that initially experienced. The
combination of the two emotional reactions results in the overall feeling experienced by the consumer.
Fast facts on opponent process theory:
 The opponent process theory may explain situations where something unpleasant can be rewarding.
 The theory has been applied to understanding job satisfaction.
 The theory links a person’s emotions to their motivation.
 Research on the theory has shown relief from physical pain can bring about pleasant feelings and reduce
negative ones.
 Opponent process theory has also been used to explain the ability to see colors.

Emotion
Definition and Characteristics
The term emotion is derived from Latin term “emovere” which means to stir, to agitate, to move. Hence, an
emotion is referred to as a stirred up state of the organism. We feel agitated or excited when we experience
anger, fear, joy, grief, disgust, etc. An emotional state consists of feelings, impulses, physical and physiological
reactions.

A feeling is the experience of pleasantness or unpleasantness. Every emotion is also accompanied by an impulse
or inner drives towards action of one kind or another. The mode of expression depends upon the intensity of
emotion. Physical and physiological components refer to the actual body movements. An emotion is always
aroused by certain stimulus which may be any people, object or event.
Different persons may respond with different emotions to the same stimulus. So emotion stands for a wide range
of behaviors like love, anger, jealousy, etc. There is a specific condition of the mind when one feels such thing
like fear, anger or joy. Psychologists have termed these mental conditions as emotions. Following components
are including in human emotion:
 Cognitive appraisal: provides an evaluation of events and objects.
 Bodily symptoms: the physiological component of emotional experience.
 Action tendencies: a motivational component for the preparation and direction of motor responses.
 Expression: facial and vocal expression almost always accompanies an emotional state to communicate
reaction and intention of actions.
 Feelings: the subjective experience of emotional state once it has occurred.
The following are some of the characteristics of emotion:
i. Emotion is a stirred up state of the organism.
ii. It is a specific condition of the mind.
iii. Emotion is a feeling of pleasantness and unpleasantness.
iv. An emotion is always aroused by a certain stimulus.
v. The same stimulus may arouse different emotions.
vi. Maturation plays an important role in emotional development.
vii. There are objective and subjective factors in the development of emotions.
viii. Emotion is more intense than feeling.

Mechanism of Emotion
Neurobiological explanation:
Based on discoveries made through neural mapping of the limbic system, the neurobiological explanation of
human emotion is that emotion is a pleasant or unpleasant mental state organized in the limbic system of
the mammalian brain. If distinguished from reactive responses of reptiles, emotions would then be mammalian
elaborations of general vertebrate arousal patterns, in which neurochemicals (for
example, dopamine, noradrenaline, and serotonin) step-up or step-down the brain's activity level, as visible in
body movements, gestures and postures. Emotions can likely be mediated by pheromones. For example, the
emotion of love is proposed to be the expression of paleocircuits of the mammalian brain (specifically, modules
of the cingulate gyrus) which facilitate the care, feeding, and grooming of offspring. Paleocircuits are neural
platforms for bodily expression configured before the advent of cortical circuits for speech. They consist of pre-
configured pathways or networks of nerve cells in the forebrain brain stem and spinal cord.

The motor centers of reptiles react to sensory cues of vision, sound, touch, chemical, gravity, and motion with
pre-set body movements and programmed postures. With the arrival of night-active mammals, smell replaced
vision as the dominant sense, and a different way of responding arose from the  olfactory sense, which is
proposed to have developed into mammalian emotion and emotional memory. The mammalian brain invested
heavily in olfaction to succeed at night as reptiles slept – one explanation for why olfactory lobes in mammalian
brains are proportionally larger than in the reptiles. These odor pathways gradually formed the neural blueprint
for what was later to become our limbic brain.

Types of Emotion
Some of the basic types of emotions are as follow:
1. Happiness: Happiness is one of the basic emotions. Happiness is a pleasant emotional state, and it is
characterized by the feeling of joy, contentment, satisfaction, gratification, and well-being. Scholars have done
numerous researches on happiness since the 1960s within different disciplines such as positive psychology.
Happiness is sometimes expressed through body language, facial expressions such as smiling, and a pleasant
tone.
2. Sadness: Sadness is a transient emotional state. It is typically characterized by feelings of grief,
disappointment, disinterest, hopelessness, and a dampened mood. Sadness is an emotion that all people
experience. In some cases, people experience severe and prolonged periods of sadness that can become
depression. There are several ways we can express sadness such as quietness, dampened mood, withdrawal from
others, lethargy and crying.

3. Fear: This is a very powerful emotion, and it can play an important role in survival. People go through flight
or fight response when they face some sort of fear. Your heart rate increases, your muscles become tense, and
your mind becomes more alert. This primes your body either to stand and fight or to run from danger.
Expressions of fear include attempts to flee or hide from threats, facial expressions such as pulling back the chin
or widening the eyes and physiological reactions such as increased heart rate.
4. Disgust: This is a basic emotion that can be displayed in numerous ways such as turning away from things of
disgust, facial expressions such as curling the upper lip and wrinkling the nose and physical reactions such as
retching or vomiting.
5. Anger: This is a very powerful emotion, and it is characterized by feelings of agitation, hostility, antagonism,
and frustration towards others.Anger can be displayed through body language such as turning away from
someone, facial expressions such as glaring or frowning, tone of voice such as yelling or speaking gruffly, a
physiological response such as turning red or sweating, and aggression such as kicking, hitting or throwing
objects.
6. Surprise: This is another one of the basic types of human emotions. It is typically brief, and we can
characterize surprise by a physiological startle response due to unexpected things. Surprise can be negative,
positive or neutral. The unpleasant surprise might involve someone scaring you as you walk. We can
characterize surprise by facial expressions such as widening the eyes raising the brows, opening the mouth;
physical responses such as jumping up or back and verbal reactions such as gasping, screaming and yelling.

Emotions and Consumption

Every day, we make countless decisions. Most of them are small decisions about our day-to-day activities that
don’t take much thought. Occasionally there are important choices to be made that take some pondering. How
do you make these decisions? You might identify yourself as an intuitive decision maker. Alternatively, perhaps
you consider yourself to be very rational. The truth is, emotions play an important role in everybody’s decisions,
often without us even realizing. Do you want to know more about emotions in general? We have devoted a
deep-dive into the emotions in our brain, which you can find here!

With every choice we make, our brain considers the available options. It needs to evaluate which options are
good, bad, better, or worse. Moreover, for that, it takes into account how we feel about the expected outcomes.
Good vibes? Go for it. Bad vibes? Best avoid it. The crucial thing to note here is that the brain isn’t very rigid
when it comes to these evaluations. We are very susceptible to emotional influences, which can change our
decision making. Here is where it becomes interesting for marketers. What if you could use emotions to strike a
chord with your audience? Could that turn them into customers? The short answer is yes. Thus, consumption
behaviour of consumer is affected by emotion.

Consumption emotions are clearly important to consumers, who purchase products to meet their needs and
achieve goals. These emotions constitute a signaling system that tells consumers whether they've achieved their
goals. In addition, certain kinds of emotions, particularly positive ones such as joy and excitement, are
inherently satisfying, and the experience of such emotions is itself a goal for much consumption behavior.
Because consumption emotions are so powerful in regulating consumer behavior, they are also important to
marketers. Positive consumption emotions generate brand loyalty and commitment, and both positive and
negative emotions influence consumers' word of mouth.

Learning
Definition and Nature of Learning
Learning is the process by which an individual acquires knowledge, attitudes and skills that are necessary to
meet the demands of life. While touching a burning candle, a child gets burnt and he withdraws the fingers.
When he faces a similar situation again he withdraws his fingers faster. Gradually he learns to avoid not only the
burning candle but also other burning things. The behavior of an individual is thus changed through experiences.
This change in behavior brought about by experiences is commonly known as learning. Thus, Learning means
change in behavior or behavior potential that occurs as a result of experience. Learning can result from both
vicarious and direct experiences.
 Crow & crow: “Learning is the acquisition of habits, knowledge & attitudes. It involves new ways of
doing things and it operates in individuals attempts to overcome obstacles or to adjust to new situations.
It represents progressive changes in behavior. It enables him to satisfy interests to attain goals".

In consumer context, Consumer learning is defined as a process by which people gather and interpret
information about products and services and use this information/knowledge in buying patterns and
consumption behavior.
 L. G. Schiffman: "Consumer learning can be thought of as the process by which individuals acquire the
purchase and consumption knowledge and experience that they apply to future related behavior".

Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and
experience they apply to future related behaviour. Most of the learning is incidental. Some of it is intentional.
Basic elements that contribute to an understanding of learning are:
 Motivation: It is the processes that lead people to behave as they do.
 Cues: It is a stimulus that suggests a specific way to satisfy a silent motive.
 Response: Response means how individuals react to a drive or cue or how they behave.
 Reinforcement: A positive or negative outcome that influences the likelihood that a specific behaviour
will be repeated in the future in response to a particular cue or stimulus.

Some following natures are including in learning:

1. Learning is universal
2. Learning develops from experience
3. Learning is from all Sides
4. Learning is continuous process
5. It results in change in behaviour
6. Learning is an adjustment
7. It comes about as a result of practice
8. Learning is a relatively permanent change
9. Learning as growth and development
10. Learning is not directly observable

Theories of Learning
Conditioning Theory
The classical conditioning theory was proposed by a Russian physiologist Ivan Pavlov. According to this
theory, behavior is learnt by a repetitive association between the response and the stimulus. The classical
conditioning theory is based on the assumption that learning is developed through the interactions with the
environment. Also, the environment shapes the behavior and internal mental state such as thoughts, feelings,
emotions do not explain the human behavior.
Here, an organism learns to transfer response from one stimulus to a previously neutral stimulus. Classical
conditioning is comprised of four elements:
1) Unconditioned Stimulus (US): This invariably causes to react in a way.
2) Unconditioned Response (UR): Takes place when the US is presented.
3) Conditioned Stimulus (CS): The object that does not bring about the desired response
4) Conditioned Response (CR): A particular behavior that an organism learns to produce, when the CS is
presented.

Pavlov conducted an experiment on a dog and measured the amount of saliva secreted by a dog, with a use of a
surgical procedure, when it is exposed to different stimulus or object. At first, when Pavlov presented a piece of
meat (US) to the dog, he noticed a great amount of salivation (UR) whereas, in the second time, when he just
rang the bell, he observed there was no effect of a bell on the dog’s salivation. After this, Pavlov rang the bell
accompanied with meat and noticed the salivation of a dog. He repeated this process several times, and finally,
one day he just rang the bell without meat and observed that dog still salivated to the bell alone which was
originally a neutral stimulus. Thus, he found out, that the dog has become classically conditioned (CR) to the
sound of the bell (CS). And every time he rings the bell the dog salivates.

The marketer studies these phenomena and uses them in sales campaign, advertising strategy, product
development, demonstration of product, free samples and serving product free. In order to take advantage of
behavioural theories Nescafé Coffee serves free coffee from time to time to develop taste for it. In 1955 when
Coke was introduced in India small free bottles were supplied to consumers and by repeated tasting people
became used to it. In other words when people are conditioned to a particular situation they become accustomed
to it. This in other languages is called the stimulous response, the behavioural or the associative orientation.

Marketers stimulate consumers in various ways to take advantage of their behavioural psychology by repeating
advertisements. But psychologies also came to the conclusion that learning depends not merely on repetition but
also ability to generalization. Because of stimulus generalization people also buy products which look a like and
therefore competitors produce similar products. Stimulus generation also help promote sales of other products
under same brand name. If one becomes accustomed to one product of one brand when other products are
introduced with same brand name they also attract same attention as the first product.

Cognitive Learning Theory

Edward Tolman has contributed significantly to the Cognitive Learning Theory. According to him, an
individual not only responds to stimuli but also act on beliefs, thoughts, attitudes, feelings and strive towards
goals. Cognitive Learning Theory implies that the different processes concerning learning can be explained by
analyzing the mental processes first. It posits that with effective cognitive processes, learning is easier and new
information can be stored in the memory for a long time. On the other hand, ineffective cognitive processes
result to learning difficulties that can be seen anytime during the lifetime of an individual. These cognitive
processes are: observing, categorizing, and forming generalizations about our environment. The following
factors are fundamental to the cognitive learning process:
 Comprehension: Cognitive learning strategies emphasize comprehension. You need to understand the
reason for learning the subject in the first place and the role your knowledge plays in your work.
 Memory: Cognitive learning discourages rote learning where you cram materials for memorization. In
cognitive learning, the goal is to understand the subject at a deeper level. This creates an immersive effect
that helps recall and improves your ability to relate new knowledge to past information.
 Application: Cognitive learning strategies encourage you to reflect on the material and how to apply it to
current and future situations. With this, you develop improved problem-solving skills, critical thinking
skills and visionary leadership traits that can help you see things others cannot see in a clear form.

The consumer collects information on various competitive products with regard to their price, performance and
other aspects. The consumer feeds that the collected information on various competitive products with regard to
their price, performance and other aspects of information into his human computer, process them logically and
then only arrives at a conclusion. If one decides to buy a refrigerator he collects the information on various
refrigerators available in the market, their features, performance, reputation of the supplier i.e. brand and after
sales service.

The information however is not collected only when one decides to buy a product; he goes on getting
information from various sources such as, magazines and journals and retains in his memory and uses it when
required. It is felt by some psychologists that when one gets too much information he is overloaded and
encounters difficulties in decision taken. But capacity to retain and keep the information in memory differs from
individual to individual depending largely on his education and sophistication.

Therefore, marketers try to provide information to different groups of people as per their retention power as
perceived by marketer. For instance, if the consumer is technocrat, he will be supplied much more information
as compared a general customer specially in case of technical products like computer, automobile, photo copier,
electronic and electrical goods. If someone is provided more information than what he can understand or retain
it will be waste of efforts and resources.

Social Learning Theory

Social learning theory, developed by psychologist Albert Bandura, uses theories of classical and operant
conditioning. But in this theory, the environment plays a large part in learning. The social learning theory also
called observational learning, stresses the ability of an” individual to learn by observing what happens to other
people and just by being told about something. The basis of social learning theory is simple: People learn by
watching other people. We can learn from anyone—teachers, parents, siblings, peers, co-workers, YouTube
influencers, athletes, and even celebrities. We observe their behavior and we mimic that behavior. In short, we
do what they do. This theory is also known as social cognitive theory.
Many patterns of behavior are learned by watching the behaviors of others and observing its consequences for
them. In this theory, it is said that the influence of models is the central issue.4 processes have been found to
determine the influence that a model will have on an individual. These processes are:
1. Attention process
People learn from a model only when they recognize and pay attention to its critical features. If the learner is not
attentive they would not able to learn anything. We tend to be most influenced by attractive models, repeatedly
available, which we think is important, or we see as similar to us.
2. Retention process
A model’s influence depends on how well the individuals remember the models’ actions after the model is no
longer readily available.
3. Motor reproduction process
After a person has seen a new behavior by observing the model, the watching must be converted to doing. It
involves recall the model’s behaviors and performing own actions and matching them with those of the model.
This process then demonstrates that the individual can perform the modeled activities.
4. Reinforcement process
Individuals are motivated to exhibit the modeled behavior if positive incentives or rewards are provided.
Behavior that is positively reinforced is given more attention, learned better and performed more often.

At last, we can say that social learning theory is a function of consequences. It also acknowledges the existence
of observational learning and the importance of perception in learning. In this case, a person who wants to learn
should identify the target behavior and select the appropriate model and modeling medium. Then he/she should
create a favorable learning environment and observe the model.

Social learning theory has significant applications in the field of marketing because it is relevant both in the
context of marketing management and consumer behaviour as well as advertising. Consumers, especially young
consumers can be seriously affected by symbolic modeling. This is a significant concern when it comes to
violence in the media, particularly movies, television and video games. Fictional characters appear to derive a
high degree of satisfaction from violence and children observing the violence feel motivated to imitate the
behavior. Advertisements have a very serious effect on consumers. Studies have shown that young girls
internalize standards of behavior in line with gender stereotypes, some of the regressive and harmful, from
watching the behavior depicted in advertisements and the positive consequences experienced by the models.

Learning and Consumption

Learning plays a role at every stage of the buying decision process. When one tastes a new product, such as a
cigarette, his learning occurs. In reality, almost all consumer behavior is learned. There is little doubt but that
what consumers learn has a significant impact on how they behave. In fact, aside from the instinctive needs, all
needs are learned from past experiences. Thus, our consumption decisions are the outcomes of our past
experiences, i.e., our learning. It implies that consumer behavior is largely learned behavior. Consumers’
attitudes, values, beliefs, preferences, and in fact, everything is learned. Consumer evaluation of product
alternatives is enhanced through learned behavior. Business people need to spend considerable effort to ensure
that consumers will learn of the presence and characteristics of their offers. If consumers learn of the nature and
characteristics of a product, their chances of buying the same increase. Some of the learning occurs
intentionally, while others occur unintentionally. Both of the learning influence consumer behavior. Loudon and
Bitta (1993) pointed that appreciation of learning and memory processes can aid our understanding of how
frequently to repeat advertising messages; how visual symbols, songs, and other techniques can facilitate
consumers’ learning … regarding products and promotions; and how consumers develop habitual purchase
patterns for some goods.

Therefore, how consumers learn is a matter of great importance to marketers. Since marketers are interested in
teaching consumers about their brands, they are interested in the concepts of learning. That is why they are
interested in different aspects of learning. Learning is important for the marketers who should recognize that the
marketing effort builds to an important extent on learning. Knowledge of learning principles can be useful in
understanding how consumers’ wants and motives are acquired and how their tastes are developed. Therefore,
understanding more about how consumers learn should help you develop more effective marketing strategies. It
is clear from the above discussion that knowledge of learning concepts helps marketers understand consumer
behavior better and to adopt appropriate marketing strategies.

Memory
Meaning of Memory
Memory is the faculty of the brain by which data or information is encoded, stored, and retrieved when needed.
It is the retention of information over time for the purpose of influencing future action. Memory is often
understood as an informational processing system with explicit and implicit functioning that is made up of
sensory memory, short-term memory, and long-term memory. Human memory involves the ability to both
preserve and recover information we have learned or experienced. As we all know, however, this is not a
flawless process. Sometimes we forget or misremember things. Sometimes things are not properly encoded in
memory in the first place.

 Memory refers to the processes that are used to acquire, store, retain, and later retrieve information.
There are three major processes involved in memory: encoding, storage, and retrieval.

Memory involves a process of acquiring information and storing it over time so that it will be available when
needed. Contemporary approaches to the study of memory employ an information processing approach.
Basically three stages are included in memory processing: encoding stage, storage stage, retrieval stage.

Structure of Memory
1. Encoding: In the encoding stage, information is entered in a way the system will recognize. When
information comes into our memory system (from sensory input), it needs to be changed into a form that the
system can cope with, so that it can be stored. For example, a word which is seen (in a book) may be stored if it
is changed (encoded) into a sound or a meaning (i.e. semantic processing). There are three main ways in which
information can be encoded (changed):
 Visual (picture)
 Acoustic (sound)
 Semantic (meaning)
2. Storage: In the storage stage, this knowledge is integrated with what is already in memory and warehoused
until needed. This concerns the nature of memory stores, i.e., where the information is stored, how long the
memory lasts for (duration), how much can be stored at any time (capacity) and what kind of information is
held. The way we store information affects the way we retrieve it. 
3. Retrieval: During retrieval, the person accesses the desired information. This refers to getting information
out storage.  If we can’t remember something, it may be because we are unable to retrieve it.  When we are
asked to retrieve something from memory, the differences between short term memory and long term memory
become very clear.
4. Forgetting: Forgetting is a surprisingly common event. Just consider how often you forget someone’s name
or overlooked an important appointment. Sometimes information is simply lost from memory and, in other
cases, it was never stored correctly in the first place. Sometimes memories compete with one another, making it
difficult to remember certain information. In other instances, people actively try to forget things that they simply
don’t want to remember. Why do we forget information we have learned in the past? There are four basic
explanations for why forgetting occurs:
 Retrieval failure
  Interference
 Failure to store
 Motivated forgetting

Consumption and Brand Influenced by Memory

Memory is most important factors for consumption and brand in marketing. Consumer memory influenced to
his selection or choice of product, purchase decision, evaluation of alternatives, purchase planning, information
collection etc. Marketing messages can be effective only if the consumer correctly understands the messages,
and remembers them when needed. Memory refers to a consumer’s ability to understand the marketing
messages and assign them value and meaning also. More consumers that recognize the brand, the better, and the
more unique the brand, the more recognizable it’ll be. Given that the goal of advertising is to drive business
effects for the brand, these ask presume two things:
 A brand that is widely known will be remembered more often at purchase.
 A brand that is different will be remembered more often at purchase.
In light of what we’ve just learned about memory and how retrieval depends on the cues associated with
encoded information. The practice of driving brand awareness is cemented in increasing brand
recognition and brand recall.

Sensation and Perception

Concept of Sensation and Perception
Sensation and perception are two separate processes that are very closely related. Sensation is input about the
physical world obtained by our sensory receptors, and perception is the process by which the brain selects,
organizes, and interprets these sensations. In other words, senses are the physiological basis of perception.
Perception of the same senses may vary from one person to another because each person’s brain interprets
stimuli differently based on that individual’s learning, memory, emotions, and expectations.

Sensation: Sensation is the process that allows our brains to take in information via our five senses, which can
then be experienced and interpreted by the brain. Sensation occurs thanks to our five sensory systems: vision,
hearing, taste, smell and touch. Each of these systems maintains unique neural pathways with the brain which
allows them to transfer information from the environment to the brain very rapidly.

What does it mean to sense something? Sensory receptors are specialized neurons that respond to specific types
of stimuli. When sensory information is detected by a sensory receptor, sensation has occurred. For example,
light that enters the eye causes chemical changes in cells that line the back of the eye. These cells relay
messages, in the form of action potentials (as you learned when studying biopsychology), to the central nervous
system. The conversion from sensory stimulus energy to action potential is known as transduction.

Perception: Perception can be defined as our recognition and interpretation of sensory information.

Perception also includes how we respond to the information. We can think of perception as a process where we
take in sensory information from our environment and use that information in order to interact with our
environment. Perception allows us to take the sensory information in and make it into something meaningful.

Perception refers to the way sensory information is organized, interpreted, and consciously experienced.
Perception involves both bottom-up and top-down processing. Bottom-up processing refers to the fact that
perceptions are built from sensory input. On the other hand, how we interpret those sensations is influenced by
our available knowledge, our experiences, and our thoughts. This is called top-down processing.

As a consumer, perception becomes shaped by advertising, word of mouth, past experiences, social media,
pricing, quality and customer service. Through these efforts, brands can redefine themselves as not just a
product but also as a part of the consumer's lifestyle choices.

The Perception Process

The perceptual process is a sequence of steps that begins with stimuli in the environment and ends with our
interpretation of those stimuli. This process is typically unconscious and happens hundreds of thousands of
times a day. An unconscious process is simply one that happens without awareness or intention. When you open
your eyes, you do not need to tell your brain to interpret the light falling onto your retinas from the object in
front of you as “computer” because this has happened unconsciously. When you step out into a chilly night,
your brain does not need to be told “cold” because the stimuli trigger the processes and categories automatically.
1. Selection: The world around us is filled with an infinite number of stimuli that we might attend to, but our
brains do not have the resources to pay attention to everything. Thus, the first step of perception is the (usually
unconscious, but sometimes intentional) decision of what to attend to. Depending on the environment, and
depending on us as individuals, we might focus on a familiar stimulus or something new. When we attend to one
specific thing in our environment—whether it is a smell, a feeling, a sound, or something else entirely—it
becomes the attended stimulus.
2. Organization: Once we have chosen to attend to a stimulus in the environment (consciously or
unconsciously, though usually the latter), the choice sets off a series of reactions in our brain. This neural
process starts with the activation of our sensory receptors (touch, taste, smell, sight, and hearing). The receptors
transduce the input energy into neural activity, which is transmitted to our brains, where we construct a mental
representation of the stimulus (or, in most cases, the multiple related stimuli) called a percept. An ambiguous
stimulus may be translated into multiple percepts, experienced randomly, one at a time, in what is called
“multistable perception.”
3. Interpretation: After we have attended to a stimulus, and our brains have received and organized the
information, we interpret it in a way that makes sense using our existing information about the world.
Interpretation simply means that we take the information that we have sensed and organized and turn it into
something that we can categorize. For instance, in the Rubin’s Vase illusion mentioned earlier, some individuals
will interpret the sensory information as “vase,” while some will interpret it as “faces.” This happens
unconsciously thousands of times a day. By putting different stimuli into categories, we can better understand
and react to the world around us.

Role of Perception on Consumer Behavior

Person’s motivation to act depends on his perception of situation. It is one of the strongest factors affecting
behaviour. The stimuli – product, advertising appeal, incentives, or anything – are perceived differently by
different people due to difference in perception. Marketer should know how people perceive marketing offers.
Bernard and Gary define: “Perception is a process by which an individual select, organize, and interpret
information inputs to create a meaningful picture of the world.” Perception depends on physical stimuli and
stimuli’s relation to surrounding field, too. People perceive the same stimulus differently due to selective
attention, selective distortion, and selective retention. So, all consumers may not see the product or message in a
way the marketer wants.

Marketer should take these perceptual processes carefully while designing marketing programme. It is necessary
that the product or marketing offer must be perceived in a way the market wants to be perceived. Marketer is
also required to know the factors that affect people’s perception. Perception play vital role on following points
in marketing:
 Product pricing
 Product packaging
 Product quality
 Brand history, values and ethics
 Image and reputation
 Advertising message
 Promotion tools
 Service quality
 Distribution system, etc.

Attitude
Meaning and Characteristics of Attitude
 Attitude is a mental and neutral state of readiness organized through experience, exerting a directive or
dynamic influence upon individual’s response to all objects and situations with which it is related. -
G.W. Allport
  Attitudes are evaluation statements either favourable or unfavourable or unfavourable concerning
objects, people or events. They reflect how one feels about something.- Robbins

To be more specific, an “attitude" may be defined as the mental state of an individual, which prepares him to
react or make him behave in a particular pre-determined way. It is actually an acquired feeling. Attitude is the
mixture of beliefs and feelings that people have about situations, specific ideas or other people.

Understanding consumer attitudes can help a business understand customers better and perhaps even change
their attitudes. Consumer attitude is a composite of three elements: cognitive information, affective information,
and information concerning a consumer's past behavior and future intentions. In other words, attitude consists of
thoughts or beliefs, feelings, and behaviors or intentions towards a particular thing, which in this case is usually
a good or service. For example, you may have a very positive view of a particular sports car (for example, you
believe it performs better than most), it makes you feel good, and you intend to buy it.

Characteristics of attitude are as following:

 Attitudes refer to feelings and beliefs of individuals or groups of individuals.
 Attitudes are a learned predisposition
 Attitudes constitute a psychological phenomenon which cannot be directly observed
 Attitudes are gradually acquired over a period of time
 Attitudes are evaluative statements, either favorable or unfavorable
 Attitudes have consistency

Models of Attitude
Tri-component Model − According to tri-component model, attitude consists of the following three
components.
1. Cognitive Component: The first component is cognitive component. It consists of an individual’s
knowledge or perception towards few products or services through personal experience or related information
from various sources. This knowledge, usually results in beliefs, which a consumer has, and specific behavior.
In addition, the cognitive component of attitudes refers to the beliefs, thoughts, and attributes that we would
associate with an object. It is the opinion or belief segment of an attitude. It refers to that part of attitude which
is related in general knowledge of a person. Typically these come to light in generalities or stereotypes, such as
‘all babies are cute’, ‘smoking is harmful to health’ etc.

2. Affective Component: The second part is the affective component. This consists of a person’s feelings,
sentiments, and emotions for a particular brand or product. They treat them as the primary criteria for the
purpose of evaluation. The state of mind also plays a major role, like the sadness, happiness, anger, or stress,
which also affects the attitude of a consumer.
Affective component is the emotional or feeling segment of an attitude. It is related to the statement which
affects another person. It deals with feelings or emotions that are brought to the surface about something, such
as fear or hate. Using the above example, someone might have the attitude that they love all babies because they
are cute or that they hate smoking because it is harmful to health.

3. Behavior Component: The last component is behavioural component, which consists of a person’s intention
or likelihood towards a particular product. It usually means the actual behavior of the person or his intention. In
other words, behavior component of an attitude consists of a person’s tendencies to behave' in a particular way
toward an object. It refers to that part of attitude which reflects the intention of a person in the short-run or long
run. Using the above example, the behavioral attitude maybe- ‘I cannot wait to kiss the baby’, or ‘we better
keep those smokers out of the library, etc.
In conclusion, attitude is composed of three components, which include a informational or cognitive component,
effective or emotional component, and a behavioral component. Basically, the cognitive component is based on
the information or knowledge, whereas the affective component is based on the feelings. The behavioral
component reflects how attitude affects the way we act or behave. It is helpful in understanding their complexity
and the potential relationship between attitudes and behavior. But for clarity’s sake, keep in mind that the term
attitude essentially refers to the affected part of the three components.

Formation of Attitudes
Attitudes refer to the feelings and beliefs of “individuals or groups of individuals. But the question is how these
feelings and beliefs developed? The point which has been stressed by many people are that attitudes are
acquired, but not inherited. A person acquires these attitudes from several sources.
1. Personal Experience: A person’s direct experience with the attitude object determines his attitude towards
it. The personal experience of an individual, whether it is favourable or unfavourable, will affect his attitude
deeply. These attitudes which are based on personal experience are difficult to change.
2. Social Factors: Social roles and social norms can have a strong influence on attitudes. Social roles relate to
how people are expected to behave in a particular role or context. Social norms involve society's rules for what
behaviors are considered appropriate. Attitudes like values are acquired from parents, teachers and peer group
members. In our early years, we begin modeling our attitudes after those we admire, respect or may be even
fear. The neighbourhood in which we live has certain cultural facilities, religious groupings and ethnic
differences. Further, it has people, who are neighbours.
3. Learning: Attitudes can be learned in a variety of ways. Consider how advertisers use classical
conditioning to influence your attitude toward a particular product. In a television commercial, you see young,
beautiful people having fun on a tropical beach while enjoying a sports drink. This attractive and appealing
imagery causes you to develop a positive association with this particular beverage.
4. Conditioning: Operant conditioning can also be used to influence how attitudes develop. Imagine a young
man who has just started smoking. Whenever he lights up a cigarette, people complain, chastise him, and ask
him to leave their vicinity. This negative feedback from those around him eventually causes him to develop an
unfavorable opinion of smoking and he decides to give up the habit.
5. Observation: People also learn attitudes by observing people around them. When someone you admire
greatly espouses a particular attitude, you are more likely to develop the same beliefs. For example, children
spend a great deal of time observing the attitudes of their parents and usually begin to demonstrate similar
outlooks.
6. Economic Status and Occupations: The economic status and occupational position of the individual also
affect his attitude formation. Our socio-economic background influences our present and future attitudes.
7. Mass Communications: Attitudes are generally less stable as compared to values. Advertising messages
for example, attempt to alter the attitude of the people toward a certain product or service.

Strategies for Attitudes Change

Changing attitudes is generally very difficult, particularly when consumers suspect that the marketer has a self-
serving agenda in bringing about this change (e.g., to get the consumer to buy more or to switch brands).
1. Changing affect:  One approach is to try to change affect, which may or may not involve 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 get people to
like the advertisement and hope that this liking will “spill over” into the purchase of a product.   For example, the
Pillsbury Doughboy does not really emphasize the conveyance of much information to the consumer; instead, it
attempts to create a warm, fuzzy image.  Although Energizer Bunny ads try to get people to believe that their
batteries last longer, the main emphasis is on the likeable bunny.  Finally, products which are better known,
through the mere exposure effect, tend to be better liked--that is, the more a product is advertised and seen in
stores, the more it will generally be liked, even if consumers to do not develop any specific beliefs about the
product.
2. 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 to use temporary price discounts and coupons; however, when consumers buy a product
on deal, they may justify the purchase based on that deal  (i.e., the low price) 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 availability as a
rationale for their purchase and may continue to buy the product even when the product is less conveniently
located.  (Notice, by the way, that this represents a case of shaping).
3. Changing beliefs: Although attempting to change beliefs is the obvious way to attempt attitude change,
particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because
consumers tend to resist.  Several approaches to belief change exist:
a) 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 provided
extensive factual evidence in its advertising to support this reality.  Consumers were suspicious and
rejected this information, however.
b) 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, then, would you bother bringing them up in the first place?   However, it may be
possible to strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may advertise that it
is extremely important for women to replace iron lost through menstruation.  Most consumers already
agree with this, but the belief can be made stronger.
c) 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 number of creative dishes.  Vitamin manufacturers attempt to add the belief that stress causes
vitamin depletion, which sounds quite plausible to most people.
d) 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 expression.

How do we use step for change consumer attitudes?

1.Identify consumer perceptions.
2.Compile data for interpretation
3.Create a plan of action.
4.Share vital information with affected employees
5.Measure success

Cognitive Dissonance  Theory

In the field of psychology, cognitive dissonance occurs when a person holds two or more
contradictory beliefs, ideas, or values, or participates in an action that goes against one of these three, and
experiences psychological stress because of that. According to this theory, when two actions or ideas are not
psychologically consistent with each other, people do all in their power to change them until they become
consistent.
To function in the reality of modern society, human beings continually adjust the correspondence of their mental
attitudes and personal actions; such continual adjustments, between cognition and action, result in one of three
relationships with reality:
1. Consonant relationship: Two cognitions or actions consistent with each other (e.g. not wanting to
become drunk when out to dinner, and ordering water rather than wine)
2. Irrelevant relationship: Two cognitions or actions unrelated to each other (e.g. not wanting to become
drunk when out and wearing a shirt)
3. Dissonant relationship: Two cognitions or actions inconsistent with each other (e.g. not wanting to
become drunk when out, but then drinking more wine)

According to cognitive dissonance theory, there is a tendency for individuals to seek consistency among their
cognitions (i.e., beliefs, opinions). When there is an inconsistency between attitudes or behaviors (dissonance),
something must change to eliminate the dissonance. In the case of a discrepancy between attitudes and behavior,
it is most likely that the attitude will change to accommodate the behavior.
Two factors affect the strength of the dissonance: the number of dissonant beliefs, and the importance attached
to each belief. There are three ways to eliminate dissonance:
 1. Reduce the importance of the dissonant beliefs
2. Add more consonant beliefs that outweigh the dissonant beliefs
3. Change the dissonant beliefs so that they are no longer inconsistent.

Dissonance occurs most often in situations where an individual must choose between two incompatible beliefs
or actions. The greatest dissonance is created when the two alternatives are equally attractive. Furthermore,
attitude change is more likely in the direction of less incentive since this result in lower dissonance. In this
respect, dissonance theory is contradictory to most behavioral theories which would predict greater attitude
change with increased incentive (i.e., reinforcement).

Application of dissonance theory: Dissonance theory applies to all situations involving attitude formation and
change. It is especially relevant to decision-making and problem-solving. For example, consider someone who
buys an expensive car but discovers that it is not comfortable on long drives. Dissonance exists between their
beliefs that they have bought a good car and that a good car should be comfortable. Dissonance could be
eliminated by deciding that it does not matter since the car is mainly used for short trips (reducing the
importance of the dissonant belief) or focusing on the cars strengths such as safety, appearance, handling
(thereby adding more consonant beliefs). The dissonance could also be eliminated by getting rid of the car, but
this behavior is a lot harder to achieve than changing beliefs.

Self Perception Theory

Self-perception theory (SPT) is an account of attitude formation developed by psychologist Daryl Bem. It
asserts that people develop their attitudes (when there is no previous attitude due to a lack of experience, etc.—
and the emotional response is ambiguous) by observing their own behavior and concluding what attitudes must
have caused it. The theory is counterintuitive in nature, as the conventional wisdom is that attitudes determine
behaviors.

The self-perception theory states that people develop attitudes by observing their behavior and deciding on
which attitudes may have caused the reaction. This theory is based on a situation where there was no previous
attitude on a subject due to lack of experience in that area. The theory suggests that people look at their actions
just like an outsider would observe a character and make conclusions on why they were motivated to do what
they did. Self-perception can be described as the opposite of common sense/intuition, normal expectation, or
simply counterintuitive. It is expected that a person’s attitudes and personality play a role in their actions, but
this theory differs. The theory argues that we become what we do and our actions originate from our self-
observations and not from our free will and the state of moods at a time.
Application of Self-perception theory: Self-perception theory is also an underlying mechanism for the
effectiveness of many marketing or persuasive techniques. One typical example is the foot-in-the-door
technique, which is a widely used marketing technique for persuading target customers to buy products. The
basic premise of this technique is that, once a person complies with a small request (e.g. filling in a short
questionnaire), he/she will be more likely to comply with a more substantial request which is related to the
original request (e.g. buying the related product). The idea is that the initial commitment on the small request
will change one's self-image, therefore giving reasons for agreeing with the subsequent, larger request. It is
because people observe their own behaviors (paying attention to and complying with the initial request) and the
context in which they behave (no obvious incentive to do so), and thus infer they must have a preference for
those products.
Personality

Concept and Characteristics of Personality

The term personality is derived from the Latin word “Persona” which means to speak through. This Latin term
was used to denote the mask, the actors used to wear in ancient Rome and Greece, An individual’s personality is
the combination of traits and patterns that influence their behavior, thought, motivation, and emotion.
It drives individuals to consistently think, feel, and behave in specific ways; in essence, it is what makes each
individual unique.
 According to Gordon Allport, “Personality is the dynamic organization within the individuals of those
psychophysical systems that determine his unique adjustments to his environments”.
  According to Lundberg and others, “The term personality refers to the habits, attitudes and other social
traits that are characteristic of a given individual’s behavior”.

Characteristics of personality are as following:

 Personality is something which is unique in each individual
 An personality acquires personality in different ways
 Personality reflects individual differences
 An individual's personality remain consistent over time and enduring in nature
 Personality is dynamic in nature
 Personality is greatly influenced by social interactions
 It impacts behaviors and actions
 Multiple expressions

Concept of Personality in Marketing

Consumer personality is defined as the characteristics that determine and reflect how consumers make choices
with regard to buying patterns and consumption behavior. In marketing context, a person's decision with regard
to the brand as well as the timing and place of purchase, the amount purchased, its usage and disposal, are all
based on his personality. Consumers generally buy those products/ brands, whose personality matches their
own, or they buy such products/ brands that help them fight their inferiority.

Consumer purchase patterns are always influenced by their personality traits. Just as we consumers, have
different personality make ups, the decision choices with regard to purchase of products/ brands also differs,
especially with the assumption that consumer prefer such product/ brand choices that matches their personality
traits. Such personality traits could be general as well as consumption specific. Consumer personality refers to
the unique dynamic organization of characteristics of a particular person, physical and psychological, which
influence behavior and responses to the social and physical environment (Schiffman, 2010).

Theory of Personality
Types of consumer personalities can be studied under different theories of personality which has been explained
below:
1. Psychoanalytical Theory
This theory was given by Sigmund Freud. Freud’s psychoanalytical theory stresses the unconscious nature of
personality as a result of childhood conflicts. According to this theory, the human personality system consists of
the id, ego, and superego and conflicts are derived from these three components.
a) Id: The id is the source of psychic energy and seeks immediate gratification for biological and instinctual
needs like hunger, sex, and self preservation. In other words, id is conceptualized as a warehouse of primitive
and impulsive drives for which individual seeks immediate satisfaction without concern for the specific means
of satisfaction. The id operates on one principle, directing behaviour to achieve pleasure and to avoid pain. The
id is entirely unconscious with no objective reality.
b) Ego: The ego is the individual’s self-concept and is the manifestation of objective reality as it develops after
interaction with the external world. Ego is the individual's conscious control and it functions as an internal
monitor that attempts to balance the impulsive demands of the id and the socio-cultural constraints of the super
ego.
c) Super-ego: Superego is the individual’s internal expression of society’s moral and ethical codes of conduct.
This means superego is the leash on the id and works against its impulses. It does not manage the id but restrains
it by punishing unacceptable behaviour through the creation of guilt. It’s role is to see that individual satisfies
needs in a socially acceptable fashion. So, superego is a kind of ‘brake’ that inhibits the impulsive forces of the
id.

According to this theory, ego manages the conflicting demands of the id and superego. When the child manages
these conflicts (sp. sexual conflicts) then this determinies the adult personality. But if conflicts are not resolved
in childhood then this will result in defence mechanisms and will influence later behaviour. Defence
mechanisms are the strategies that the ego uses to reduce tensions.
 2. Trait Theory
Trait theory has been used most widely for measuring personality because it is a quantitative approach. This
theory states that an individual’s personality is composed of definite pre-dispositional attributes called traits. A
trait can be defined as any distinguishable, relatively enduring way in which one individual differs from another.

Traits are the features of an individual or tendency of an individual in a particular manner. Traits help in
defining the behavior of consumers. According to the Trait theorists, an individual’s personality make-up stems
out of the traits that he possesses, and the identification of traits is important.
Following are the few of the most common traits −
 Outgoing
 Sad
 Stable
 Serious
 Happy go lucky
 Relaxed
 Self assured
 Practical
 Imaginative
Trait theory is representative of multi-personality theories. Trait theory is based on certain assumptions, such as
traits which are certainly stable in nature and a limited number of traits are common to most of the people.
According to the Trait theorists, an individual’s personality make-up stems out of the traits that he possesses,
and the identification of traits is important. The trait theories can be of two broad categories, viz., Simple trait
theories and general trait theories.
Simple Trait Theories: In simple trait theories, a limited number of traits are identified, and people are
categorized and classified on the basis of these traits.
General Trait Theories: In general trait theories, a large variety of traits are identified.

For example sociability relaxed style, amount of internal control. Trait theorists construct personality inventories
and ask respondents to respond to many items by agreeing or disagreeing with certain statements or expressing
likes or dislikes for certain situations or types of people. These items then are statistically analyzed and reduced
to a few personality dimensions. This method is not like psychoanalytic and social theories and also do not
determine personality traits.

Single – trait personality tests which measure just one trait, such as self confidence are increasingly being
developed specifically for use in consumer behaviour studies. These personality tests can be designed according
to the need to measure traits such as consumer innovativeness, consumer susceptibility to interpersonal
influence (like SUSCEP helps in knowing how consumers respond to social influence), consumer materialism
(means try to assess degree of consumer’s attachment to “world” possessions), and consumer ethnocentrism
(like CETSCALE – identifies consumer’s likelihood to accept or reject foreign – made products). Researchers
have learned that it is generally more realistic to expect personality to be clinked to how consumers make their
choices and also to the purchase or consumption of a broad product category either than a specified brand.

3. Social Learning Theory

One of the most influential learning theories, the Social Learning Theory (SLT), was formulated by Albert
Bandura. It encompasses concepts of traditional learning theory and the operant conditioning of B.F. Skinner.
However, the theory strongly implies that there are types of learning wherein direct reinforcement is not the
causal mechanism; rather, the so called social element can result to the development of new learning among
individuals. Social Learning Theory has been useful in explaining how people can learn new things and develop
new behaviors by observing other people. It is to assume, therefore, that Social Learning Theory is concerned on
observational learning process among people.
Basic Concepts:
1. Observational Learning: The Social Learning Theory says that people can learn by watching other
people perform the behavior. Observational learning explains the nature of children to learn behaviors by
watching the behavior of the people around them, and eventually, imitating them.
2. After his studies, Bandura was able to determine 3 basic models of observational learning, which
include:
a. A Live Model, which includes an actual person performing a behavior.
b. A Verbal Instruction Model, which involves telling of details and descriptions of a behavior.
c. A Symbolic Model, which includes either a real or fictional character demonstrating the
behavior via movies, books, television, radio, online media and other media sources.
3. The state of mind (mental states) is crucial to learning. In this concept, Bandura stated that not only
external reinforcement or factors can affect learning and behavior. There is also what he called intrinsic
reinforcement, which is in a form of internal reward or a better feeling after performing the behavior (e.g.
sense of accomplishment, confidence, satisfaction, etc.)
4. Learning does not mean that there will be a change in the behavior of an individual.
For example, the most common (and pervasive) examples of social learning situations are television
commercials. Commercials suggest that drinking a certain beverage or using a particular hair shampoo will
make us popular and win the admiration of attractive people. Depending upon the component processes
involved (such as attention or motivation), we may model the behavior shown in the commercial and buy the
product being advertised.

Some key terms that are present throughout Bandura's Personality Theory are reciprocal determinism and
modeling. As mentioned previously, reciprocal determinism "is a concept of Albert Bandura's social learning
theory that refers to the notion that a complex reciprocal interaction exists among the individual, his or her
behavior, and environmental stimuli and that each of these components affects the others" according to
American Psychological Association. Bandura's theory presents the fact that human behavior is not created and
developed by the environment. Rather that humans personality and behaviors are directly related to what they
encounter and come into contact with. So basically, human behaviors and personalities are developed over time
by their experiences. Also, Bandura's personality theory goes into depth about how human behaviors are
developed. He believes that behaviors/personalities are based off of what people encounter. He goes on to
explain that what humans observe on a daily basis directly relate and contribute to how their behaviors and
personalities develop.

Consumer Lifestyle and Consumption

In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision
process for consumers. Lifestyle can be broadly defined as the way a person lives. In sociology, a lifestyle
typically reflects an individual’s attitudes, values, or world view. A lifestyle is a means of forging a sense of self
and to create cultural symbols that resonate with personal identity. Not all aspects of a lifestyle are voluntary.
However, in consumer marketing, lifestyle is considered a psychological variable known to influence the buyer
decision process of consumers. Lifestyle is also referred to as a buyer characteristic in the Black Box Model,
which shows the interaction of stimuli, consumer characteristics, decision process, and consumer responses. The
Black Box Model is related to the Black Box Theory of Behaviorism, where the focus is set not on the
processes inside a consumer, but the relation between the stimuli and the response of the consumer.

In this theory, the marketing stimuli (product, price, place and promotion) are planned and processed by
companies, whereas the environmental stimuli are based on the economical, political, and cultural circumstances
of a society. The buyer’s “black box” contains the buyer characteristics (e.g., attitudes, motivation, perception,
lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research,
alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer’s response
(e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
The Black Box Model considers the buyer’s response as a result of a conscious, rational decision process, in
which it is assumed that the buyer has recognized the problem. However, in reality, many decisions are not
made in awareness of a determined problem by the consumer.

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