TOPIC 1: CONSUMER BEHAVIOR IN THE MARKET PLACE

1.1 Introduction to the Study of Consumer Behavior

Though similar, consumers are unique in themselves; they have needs and wants which are varied and
diverse from one another; and they have different consumption patterns and consumption behavior.
The marketer helps satisfy these needs and wants through product and service offerings. For a firm to
survive, compete and grow, it is essential that the marketer identifies these needs and wants, and
provides product offerings more effectively and efficiently than other competitors. A comprehensive
yet meticulous knowledge of consumers and their consumption behavior is essential for a firm to
succeed.

1.2 Defining Consumer Behavior

Consumer Behavior may be defined as “the interplay of forces that takes place during a consumption
process, within a consumers’ self and his environment.
- this interaction takes place between three elements viz. knowledge, affect and behavior;
- it continues through pre-purchase activity to the post purchase experience;
- it includes the stages of evaluating, acquiring, using and disposing of goods and services”. Consumer
behavior explains the reasons and logic that underlie purchasing decisions and consumption patterns; it
explains the processes through which buyers make decisions. The “consumer” includes both personal
consumers and business/industrial/organizational consumers. Other definitions of consumer behavior
include:
• “The behavior that consumers display in searching for, purchasing, using, evaluating and
disposing of products and services that they expect will satisfy their needs.” - Schiffman and
Kanuk (2004),
• “The study of consumers as they exchange something of value for a product or service that
satisfies their needs” - Wells and Prensky, (1996)
• “Those actions directly involved in obtaining, consuming and disposing of products and services
including the decision processes that precede and follow these actions”. -Engel, Blackwell,
Miniard
• “the dynamic interaction of effect and cognition, behavior and the environment by which human
beings conduct the exchange aspects of their lives” -American Marketing Association

1.3 Nature and Scope of Consumer Behavior

1.3.1 Nature of Consumer Behavior:
i. Consumer behavior deals with issues related to cognition, affect and behavior in consumption
behaviors, against the backdrop of individual and environmental determinants.
The individual determinants pertain to an individual’s internal self and include psychological
components like personal motivation and involvement, perception, learning and memory, attitudes,
self-concept and personality, and, decision making.
The environmental determinants pertain to external influences surrounding an individual and include
sociological, anthropological and economic components like the family, social groups, reference
groups, social class, culture, sub-culture, cross-culture, and national and regional influences.

ii. Consumer behavior can be studied at micro or macro levels depending upon whether it is analyzed
at the individual level or at the group level.

iii. The subject is interdisciplinary. It has borrowed heavily from psychology (the study of the
individual: individual determinants in buying behavior), Consumer Behavior (the study of groups:
group dynamics in buying behavior), social psychology (the study of how an individual operates in
group/groups and its effects on buying behavior), anthropology (the influence of society on the
individual: cultural and cross-cultural issues in buying behavior), and economics (income and
purchasing power).

iv. Consumer behavior is dynamic and interacting in nature. The three components of cognition, affect
and behavior of individuals alone or in groups keeps on changing; so does the environment. There is a
continuous interplay or interaction between the three components themselves and with the
environment. This impacts consumption pattern and behavior and it keeps on evolving and it is highly
dynamic.

v. Consumer behavior involves the process of exchange between the buyer and the seller, mutually
beneficial for both.

vi. As a field of study it is descriptive and also analytical/ interpretive. It is descriptive as it explains
consumer decision making and behavior in the context of individual determinants and environmental
influences. It is analytical/ interpretive, as against a backdrop of theories borrowed from psychology,
sociology, social psychology, anthropology and economics, the study analyzes consumption behavior
of individuals alone and in groups. It makes use of qualitative and quantitative tools and techniques for
research and analysis, with the objective to understand and predict consumption behavior.

vii. It is a science as well as an art. It uses both, theories borrowed from social sciences to understand
consumption behavior, and quantitative and qualitative tools and techniques to predict consumer
behavior.

1.3.2 Scope of Consumer Behavior:

The study of consumer behavior deals with understanding consumption patterns and behavior. It
includes within its ambit the answers to the following:
- ‘What’ the consumers buy: goods and services
- ‘Why’ they buy it: need and want
- ‘When’ do they buy it: time: day, week, month, year, occasions etc.
- ‘Where’ they buy it: place
- ‘How often they buy’ it: time interval
- ‘How often they use’ it: frequency of use.
The scope of consumer behavior includes not only the actual buyer but also the various roles played by
him/ different individuals.

1.4 Basic Components of Consumer Behavior

Decision making (Cognitive and Affect): -this includes the stages of decision making: Need
recognition, Information search, Evaluation of alternatives, Purchase activity, and Post purchase
behavior.

Actual purchase (Behavior): -this includes the visible physical activity of buying of goods and/or
service. It is the result of the interplay of many individual and environmental determinants which are
invisible. Individual determinants and environmental influences: The environmental factors affect the
decision process indirectly, through way of affecting individual determinants.

Buying roles: There are five buying roles as follows: Initiator, Influencer, Decider, User, and Buyer.
-The initiator is the person who identifies that there exists a need or want;
-the influencer is the one who influences the purchase decision, the actual purchase activity and/or the
use of the product or service;
-the decider is the one who decides whether to buy, what to buy, when to buy, from where to buy, and
how to buy;
-the buyer is the one who makes the actual purchase; and, the user is the person (s) who use the
product or service.
These five roles may be played by one person or by different persons. Depending on the product or
service in question, a person may assume one or more of these roles. Consumer behavior focuses
specifically on the Buyer and often User but also analyzes impact of other roles. Buyers and Sellers
are the key elements in consumer behavior as they have needs and wants and go through a complex
buying process, so as to be able to satisfy the need through purchase of the good or service offering.

1.5 Evolution of Consumer Behavior as a Field of Study and its Relationship with Marketing
Consumer Behavior discipline finds its roots in the “marketing concept” and has been essentially
interdisciplinary in nature. Initially the focus lay in the marketers’ attempts to study the causes of
consumer behavior - the assumption was that if they could identify the reasons behind consumption
behavior, they would be able to predict it; and if they could predict consumer behavior, they could
influence it. So the emphasis was to predict consumer behavior - the approach came to be known as
‘positivism’. Gradually, the focus of the study changed - the marketers wanted to understand the
customer better, and this approach came to be known as ‘interpretivism’.

1.5.1 The Interdisciplinary Nature of Consumer Behavior

Consumer Behavior subject borrows heavily from psychology, sociology; social psychology;
anthropology and, economics.
The psychological aspect includes the study of the individual as well as the individual determinants in
buying behavior, that is consumer perception, learning and memory, attitude, self-concept and
personality, motivation and involvement, attitudes and attitudinal change, and decision making.

The sociological aspect includes the study of groups as well as the group dynamics in buying behavior
that is family influences, lifestyles and values, and social group influences.

Social psychological nature includes the study of how an individual operates in group/groups and its
effects on buying behavior, that is reference groups and social class influences.

The anthropology aspect is the influence of society on the individual that is cultural and cross-cultural
issues in buying behavior, national and regional cultures etc.

Lastly, the economical nature involves the study of income and purchasing power, and its impact on
consumer behavior.

The underlying premise is that consumers make rational choices while making purchase decisions.
While resources are limited and needs and wants many, consumers collect information, and evaluate
various alternatives to finally make a rational decision.

1.6 The Study of Consumer Behavior

The subject of Consumer Behavior is viewed as the edifice of the marketing concept, an important
orientation in marketing management. The knowledge of Consumer Behavior helps the marketer
understand and predict the consumption patterns and consumption behaviors of people. It helps them
gain insights as to why a consumer behaves differently to another consumer; as well as, why a
consumer behaves differently in different times and buying situations.

The study helps them understand the internal (individual determinants) and external (environmental
factors) forces that impel people to act out different consumption patterns and behaviors. Consumer
Behavior study helps the marketer in:

a) Analyzing the environment: identifying opportunities and fighting threats

b) Segmenting, targeting and positioning
c) Designing the marketing-mix
d) Designing the marketing strategy

Consumer behavior study includes, the interplay between cognition, affect and behavior that goes on
within a consumer during the consumption process that is in the selection, use and disposal of goods
and services.
Consumer Behavior Cognition

This includes “knowledge, information processing and thinking” part. It includes the mental processes
involved in processing of information, thinking and interpretation of stimuli (people, objects, things,
places and events). In our case, stimuli would be product or service offering which could be a brand or
even anything to do with the 4Ps.

Affect

This is the “feelings” part and includes the favorable or unfavorable feelings and corresponding
emotions towards a stimulus (eg. towards a product or service offering or a brand). The feelings vary
in direction, intensity and persistence.

Behavior

This is the “visible” part and could be the purchase activity - to buy or not a buy (again specific to a
product or service offering, a brand or even related to any of the 4 Ps).

The interaction is reciprocal between each of the three towards each other and with the environment.

1.7 Application of Consumer Behavior

According to the marketing concept, for long term success and survival of a firm, the marketer should
be able to determine needs and wants of the target segment and provide product and service offerings
more effectively and efficiently than competitors. The Marketing concept is essentially a customer-
centered philosophy, which aims at understanding customer needs and wants, providing the right
product and service, and deriving customer satisfaction. It believes in “make what you can sell” rather
than “sell what you make.” An understanding of the study of consumer behavior helps formulate
appropriate marketing strategies for a firm keeping in view the consumer and his environment.
Consumer behavior has a number of applications as follows:

1.7.1 Environmental Analysis

The knowledge of consumer behavior can be applied to help identify opportunities and fight threats.
The opportunities could be in terms of newer customers, newer markets, unfulfilled needs and wants
(through a study of consumer individual determinants and other environmental influences). The threats
could be fought by developing and implementing appropriate marketing strategies to best fit the
environment. The marketing strategies need to be dynamic and constantly evolving keeping in view
the uncertainty in the environment. Environmental uncertainty is a function of complexity and
dynamism. Complexity is defined in terms of the number, strength and interrelatedness of the various
factors in the environment that a firm has to deal with. Dynamism relates to how quickly the changes
take place in the environment.
1.7.2 Segmentation, Targeting and Positioning
The study of consumer behavior may be applied to segment the market, select the target market and
position the product or service offering. Identifying the target segment, understanding their needs,
providing the right product and service offering and communicating about the offering help a marketer
succeed in the long term and ensure his survival and success in a changing environment.
1.7.2a) Segment the market
The marketer needs to identify distinct customer groups with needs and wants, classify them on basis
of descriptive characteristics and behavioral dimensions. The descriptive characteristics may take
forms of age, gender, income, occupation, education, family size, family life cycle, gender, lifestyle,
personality, religion, generation, geography, nationality, and social class. The behavioral dimensions
take forms of benefits, uses, use occasion, usage rates, and loyalty status.
1.7.2b) Select target market
The marketer then selects one or more markets to enter. The segment(s) that should be targeted should
be viable - there should be a fit between the market attractiveness and the company’s objectives and
resources. The marketer would be able to assess the viability of a segment on the basis of the
following criteria: measurability, substantialability, accessibility, differentiability, and actionability.
1.7.2c) Position the product offering in the mind of the customers
The marketers should be able to communicate the distinct and/or unique product characteristics.

1.7.3 Designing the Marketing Strategy

There exists interrelatedness between the Consumer, the Environment and the Marketing strategy.

1.7.3a) Consumer
The consumer has his needs and wants as well as product preferences - Thus, there exists an interplay
of Cognition (knowledge about products and alternatives), Affect (feelings of favorableness and
unfavorableness) and Behavior (action: buy or not to buy).

1.7.3b) Environment
This refers to forces in the environment, which make the environment complex and dynamic.

1.7.3c) Marketing strategies

This implies setting up of goals and then achieving them through the design of an appropriate
marketing mix. The Marketing Strategy should be designed to influence consumers (Cognition, Affect
and Behavior) and be influenced by them. It should be flexible and ever evolving with changes in the
customer needs and wants; as well as, changes in the environment in which it operates. The knowledge
of consumer behavior can be applied to develop a “best fit” between consumer needs and wants, the
environment in which the firm operates; and, the firms’ goals and objectives.

1.7.4 Designing the Marketing Mix (4 Ps): The study of consumer behavior may be applied to design
the 4 Ps.
i) Product: The term product includes both tangible products and intangible services. The issues to
address consist of name (brand), size, shape, features, labeling, packaging, accessories and
supplementary products, terms of sale and services, after sales etc.

ii) Price: This includes the pricing of the product offering. The major components include, form of
payment, terms and conditions of payment, discounts, price sensitivity, differential prices and
customer reaction, imagery (price increase and customer reaction, price decrease and customer
reaction).

iii) Place and Distribution: This includes the marketing channel, and comprises decisions regarding
choice of channel (direct or indirect), location, accessibility and availability of product offering,
wholesaling, retailing, logistics etc.

iv) Promotion: This includes marketing communication, and the major issues comprise decisions on
communication/promotion mix, the message and media strategy (the content, appeal and context).

1.7.5 Application in Governmental and Non-profit Organizations and Social Marketing: The
knowledge of consumer behavior finds relevance even in Governmental and Non-profit Organizations
and Social Marketing. Governmental and Non-profit Organizations have the society as its customers
and need to understand them so as to be able to serve them better. Social marketing involves
propagation of ideas; attempts at such circulation and spread of ideas for moral and social upliftment
can be more successful if there is a proper understanding of the these consumers

1.8 Market Segmentation and Positioning

The traditional way of doing business was Mass Marketing which meant offering a standardized
product to all the consumers or the entire market. However, it was increasingly realized that customers
are varied and unique, with different needs, wants and preferences. Marketers understood that they
could not satisfy the entire range of customers with the same product and service offering. This led to
Target marketing or STP i.e., Segmentation, Targeting and Positioning (STP) which involved dividing
the potential market into distinct sets and sub-sets of consumers and then focusing on one or more
segments that could be reached with a markerting mix.

In STP, the marketer first identifies like-minded clusters of groups that are homogeneous within and
heterogeneous with other groups (segmentation); then, he selects the most viable segment(s)
(targeting); finally, a distinctive image of the product/service offering is created in the mind of the
consumer that helps the latter relate to the former (positioning).

1.8.1 Aggregate Marketing and Market Segmentation

The marketer could either opt for aggregate marketing wherein he could treat the entire population as a
single segment, or he could go in for a market segmentation wherein he would identify groups of like-
minded customers who were similar on one or more base(s) and cater to one or more of such
segment(s).
a) Aggregate Marketing (also termed mass marketing or undifferentiated marketing): Earlier the
assumption was that customers had similar needs and wants and could be satisfied with a standardized
product/service offering. Thus, a standardized product was produced and distributed with a single
marketing program or the same marketing mix. This led to a focus on mass production and
distribution, which resulted in lower costs; finally resulting in lower prices and higher margins. .

b) Market Segmentation: The assumption underlying market segmentation is that customers are
unique. They have different needs, wants and preferences. There do exist diverse customer groups
homogenous on certain bases within, but heterogeneous among each other. So, instead of a single
standardized product offering, the product and service offerings need to be designed according to the
needs and wants of the segment so as to satisfy them better. The marketer’s assumption is that because
of the homogeneity that exists within the members of the group, they would react similarly towards a
product and service offering and behave likewise to a corresponding marketing program.

1.8.2 Target Marketing

Market aggregation gave way to Target marketing. The benefits of Target Marketing were understood
by the marketers as they realized that it was not possible to cater to the needs, wants and preferences
of the entire market. So the marketer would target a segment or a few segments, design the marketing
mix accordingly and serves the segment(s) efficiently and effectively. In this way he could meet
customer needs in a better way. Target marketing or STP i.e., Segmentation, Targeting and Positioning
involves a major exercise for a marketer to start with.
Segmentation involves Identifying distinct groups of buyers who are homogenous within but
heterogeneous between each other; Targeting involves evaluating the viability of each segment, and
then selecting one or few market segment (s) to serve better and in a superior way. Positioning
involves creating an image in the minds of the target market about the product and service offering -
this image should relate to the need/want as well as portray uniqueness and/or superiority than other
competitive offerings.

1.8.3 Market Segment/Segmentation

The marketer’s task is to identify the most lucrative and profitable segments and target them. He has to
then create a unique marketing program that would be most effective for that particular segment. A
‘market segment’ may be defined as a group of customers who are similar to each other on certain
bases; they are expected to behave in a similar manner towards a product and service offering and
towards a single marketing program. “Market segmentation” is the process of identifying distinct
groups and or sub groups of customers in the market, who have distinct needs, characteristics,
preferences and/or behaviours, and require separate product and service offerings and corresponding
marketing mixes.
The marketer experiences a heterogeneous market, with varying customers with diverse needs,
preferences and behaviours. However, a certain degree of homogeneity within groups and/or sub
groups of customers on certain bases and dimensions may be identified. This leads to the identification
of a segment. A market segment exhibits homogeneity within the group and heterogeneity outside.
Further, each of the segments can be effectively served with a different marketing mix.

1.8.3.1 Alternative Levels/Types for Segmentation

Depending upon the company policy and the segment attractiveness in terms of growth and
profitability, a marketer could choose out of a variety of options. The various levels/types include
single segmentation, differentiated segment marketing, concentrated marketing and micro marketing.

a) Single Segmentation
-comprises one segment only.
-the marketer caters to the entire market with a single offering and the same marketing mix.
-similar to mass marketing or undifferentiated marketing.
-all the consumers are treated the same. Examples: products like salt, sugar and staples.

b) Differentiated segment marketing

-implies selection of two or more segments.
-the marketer approaches these segments with differentiated offerings and corresponding marketing
mixes and programs.
-examples include Shampoos and other toiletries.

c) Concentrated marketing

-the marketer caters for just one segment although the product could appeal to others.
-generally a sub-group within the whole segment.
-the process includes targeting a small segment with a specialized mix meant only for that segment.
-also called focused or niche marketing.
-examples include Sports channels on TV, Religious channels on TV etc.

d) Micro-marketing could assume two forms, i.e. local marketing and individual marketing.
i) Local marketing: The marketer caters for local customer groups. Example: movies dubbed in
vernaculars or local languages.

ii)Individual marketing: The marketers caters for the individual customer and personalizes the
marketing mix. The segment thus comprises one individual and it is individual to individual marketing.
This is also called customization. Example: Holiday packages designed by travel agents.
Alternatives available for segmentation
No. Type Meaning Example
1 Segments Large groups of people - Tata group of hotels: - Taj Hotels vs. Ginger (Premium vs economy)
(Differentiated similar to each other on
Segments) certain criterion
2 Concentrated Very narrow in nature - Astha, Sanskar TV channels cater to a group of people interested in
Marketing religion and spirituality; - Fashion designers (Manish Malhotra, Rohit Bal)
(Niche) cater to a very small segment.
3 Micro One to one marketing: -Dell, Amazon customize their offerings as per individual desires. -Fashion
Marketing Customization designers (Manish Malhotra, Rohit Bal) cater to celebrities.
(Individual)

1.8.3.2 Basis for Segmentation

a) Segmentation of Consumer Markets: The bases for segmentation of consumer markets may be
divided into two broad categories of variables, demographic variables and behavioral variables.

i) Demographic variables comprise demographics, geography and psychographics.

ii) Behavioral variables comprise the day to day consumption pattern and behavioral dimensions like
consumer awareness and knowledge, feelings and disposition, purchase and usage etc. of a product and
service offering.

Demographic Variables
Variable Basis Example
Psychogr Needs and Benefits sought: Basic functional, Safety/security, Affection/Social need, Esteem/Status/
aphic Motivation Sense of Self –worth (Example: Flats versus Posh villas and Penthouses)
Variables Perception Low risk, Moderate risk, High risk (Example: Innovators vs. laggards)
Price oriented, Quality & value oriented (Example: Videocon TV vs. Sony)
Aware or Unaware
Personality Innovative (High/Low); (Example: Innovators vs late adopters vs laggards)
Dogmatic (High/Low); Need for Cognition (High/Low)
Extrovert/Introvert (Inner-directed, Other-directed)
Ethnocentrism (High/Low); (Example: Loyal to “Made in India” products)
Novelty seeker (Exploratory, Vicarious, Deals and Bargains) (Example: people who buy
from Sales and Discounts)
Attitude Positive, Negative;
Loyal to one or many products
Involvement Highly involved customers, Low involved customers; Brand loyalists, Information seekers,
Routine brand buyers and, Brand switchers
Lifestyle (Activities, Interests and Opinions)
Activities Work, Hobbies, Vacation, Shopping, Entertainment, Sports
Interests Job, Home, Family, Fashion, Food and culinary, Recreation
Opinions Social, Political, Economy and business, Environment
Geograph Location/Country Local/Domestic or International (Example: All MNCs)
ical Region North, West, South, East
Variables State Sates within country (Example: National Cooperative development Council: NCDC: All
 State Cooperatives: Parag: UP, Sanchi: MP, Verka: Punjab)
City/ Population Urban Semi-urban, Rural (Example: Hospitals in Cities, Polyclinics and dispensaries in
density Villages: Apollo Hospital and Pharmacies
Climate Hot, Cold, Humid, Rainy (Example: Clothes: Woolen garments)
Terrain Hilly, Plain, Rocky (Example: Two wheelers and Motorbikes)
Demogra Age -Infants, Kids 3-5, 8-12 Teenagers, Adults (Example: Clothes, Toys)
phic Gender -Men, Women (Example: Clothes, Cosmetics)
Variables Income >$50000, >$100000 etc. Example cars
Education -High School, Intermediate, Graduation, Post-graduation
Occupation - Blue collared, White collared; Business, Professional (Example: Airline tickets: Business,
Economy class)
Family size - Single, Couple, Couple and 2 kids, < 4, < 6 (Example: Large and small packaging: Foods)
Family Life Cycle - Single, Married, Full Nest I, Full Nest II, Empty Nest I, Empty Nest II, Solitary (
Example: Large and small packaging: Foods; Insurance)
Generation Generation X (born between 1965-76), Generation Y (born between 1983-2003) (Example:
Music and Film Cds and DVDs)
Social Class Upper class, Middle class, Lower class (Example: Cars, Hotels)
Religion Hindus, Muslims, Christians, Sikhs ( Example :foods: Halal)
Nationality Indians, Nepalese, Sri Lankans, Pakistanis
Culture North Indian, South Indian
Sub-Culture Tamilian, Keralite, Carnatic, Telegu (Example: Food by Sagar ratna)

Behavioral Variables
Variable Basis Example
Behavioral Consumer Unaware, Aware, Informed, Interested, Desiring/enthusiastic
Variables Awareness
Benefit Basic functional, Safety/security, Affection/Social need, Esteem/Status/ Sense of Self –worth
sought/uses/nee
ds/motivation
Buying Morning, Night Purchase situations (Example: now 24 hours)
Occasions/Purc Weekday, Weekend (Example: Movies released on weekends)
hasing Occasions, Seasons (Examples: Greeting Cards: all occasions) Leisure, Urgency (Example: Mail
Situations post versus Courier Service)
Buying/Usage Routine, Frequent, Seldom OR Routine, Emergency (Example: Calcium Tablet versus Band Aid
Frequency )
Buying Unaware, Aware, Informed, Interested, Desiring, Intending, Demanding, Buying
Readiness stage
Loyalty Status Non-users, First time user, Regulars, Ex-users OR Hard-core loyals, Split loyals, Shifting loyals,
Switchers
Usage Rate Heavy half; Light half OR Heavy, Medium, Light, Non-users (Example: Joint family and nuclear
family: Consumption of cooking oil)
Shopping Economic, Convenience and leisure, Status
Orientation Examples: -Economic: Deal prone and bargains; Small shops;
-Convenience and leisure: Departmental stores
-Status: Malls and Brands
Hybrid Segmentation
While individual bases for segmentation exist, the market is generally segmented on a combination of
bases. Commonly used bases are combination of (i) psychographic/demographic (ii) geodemographics
and, (iii) VALS: Values and Lifestyles.

b) Segmentation of Business Markets

Business markets are large in nature, with fewer, yet larger buyers. Purchases are bulky and often high
valued. The buying process is complex and highly professional through proposals, quotations, tenders,
contracts, etc. Buying is influenced by a committee of people referred to as a buying center, which
comprises people from various divisions and departments. The people comprising the buying center
have diverse backgrounds which result in varied perspectives and orientation towards buying. This is
because with characteristics that differentiate a business market from consumer markets, it is logical and
deductive that the bases for segmentation of business markets are different from that of consumer
markets. Business markets could be segmented on basis of demography, geography, purchase approach
and orientation, purchasing orientation, and, personal variables.
i) Demographic variables - this implies the -type of industry; -the size of the company; -technology
used etc.
ii) Geographic variables - Location.
iii) Purchasing approach and orientation - This basis includes -consumption and usage rate (i.e is the
order size small or bulky); -buying situations (straight rebuy, modified rebuy, new-task); -loyalty and
partnerships; -purchasing orientation (i.e. buying/transaction/price orientation; or consultative/solution
orientation; or, procurement/quality orientation; or, strategic value orientation); -purchasing criteria:
Price, Quality, Service
iv) Purchasing methods basis includes:
-the decision unit and/or the buying center influences: Power balance and equation of various
departments in the buying center: i.e. production dominated or R&D dominated or purchase dominated?
- the purchasing function: centralized or decentralized; - transactional exchanges (short term) or
collaborative exchanges (long term and strategic)
- purchasing policies: leasing, contracting etc.
v) Personal variables: The various bases include -buyer-seller similarity in terms of vision, objectives,
strategies, values, attitudes etc. –loyalty.

1.8.4 Targeting
After identification of segments, the marketer has to decide upon the segment(s), he would cater for and
directs his market efforts. The target segment is the group(s) of customers that the marketer decides to
serve. It comprises buyers who share common needs, wants and preferences, and the company decides
to serve them. The marketer would choose a segment that is viable; and, that he can cater for effectively
and efficiently.
1.8.4.1 Viability of the Segment: A segment is regarded to be viable if it is: measurable, substantial,
accessible, differentiable and, actionable. The segment should be measurable in terms of the total size,
purchasing power and, demographic, geographic and psychographic characteristics. It should be of a
(substantially) sufficient size so as to generate profits, and should also have a potential for growth. A
segment should be reachable and easy to enter or penetrate (accessible). One segment should be easily
differentiated from another. There should exist homogeneity within the segment and, heterogeneity with
other segments (Differentiable). It should be possible to design a marketing program directed towards
that segment and serve it effectively and efficiently. The marketer should be able to react to the need,
wants and preferences of the segment with the appropriate marketing mix (Actionable).

1.8.4.2 Evaluation and selection of Target Markets

While evaluating and selecting the Market Segments, two issues need to be addressed:
i) Overall attractiveness of the segment -explained in terms of segment size, sales, growth rate and
overall profitability. Structural attractiveness can be elaborated upon to include details on existing
competition, entry/exit barriers for competition, availability of substitute products, and the backward
power balance equilibrium between supplier and the buyer (i.e. marketer).
ii) Company’s objectives and constraints (physical, financial and time) - The marketer needs to address
the core competencies and competitive advantage to grow in that segment. This would include the
company’s hold over resources, skills and competencies and overall strengths in terms of physical and
financial resources as well as time constraints.

1.8.4.3 Patterns of Target Market Selection

Broadly speaking there could be 5 different patterns of target market selection:
a) Single-segment concentration (also referred to as concentrated marketing): The marketer decides to
cater for a single segment only. The marketer understands the needs and wants of the segment and
focuses on that segment only.
Advantages of single-segment concentration
-lower costs of production, distribution and promotion.
-the approach also leads to specialization.
-there are greater chances of achieving a strong market presence and becoming a market leader in that
segment.

Limitations
- all the eggs are placed in one basket and if the segment weakens, the marketer is finished.
-the segments’ preferences may change over time and the marketer would need to adapt accordingly.
-a small change in segment needs, wants and preferences can create a problem.
-also, the firm firmly gets entrenched in serving a particular segment only, and once entrenched, there is
great difficulty if it wants to diversify or expand into other segments.
b) Selective specialization or Multi-segment: The marketer caters for two or a few segments with
different marketing mixes. It offers varied product and service offerings with distinct marketing mixes to
the various segments.

Advantages of selective specialization

-when the marketer caters for different segments, he can expand and achieve economies of scale and
operation and gain out of existing synergies between production, operations and marketing functions.
-Chances of risk of failing totally are minimized as it diversifies coverage.

Disadvantages of selective specialization

-this approach are that the marketer who caters for more than one segment faces a more complex and
dynamic environment.
-the marketer needs to be strong in market research; identify changing needs, wants and preferences
across segments and adapt product and service offerings accordingly.
-he should be able to manage the positioning strategy for the various segments.

c) Product specialization: Here, the marketer deals with varying products in the same product line; it
adapts the product to sell to several different market segments.

Advantage
-when the marketer caters for different segments, with a single product or varying forms of the same
product, he can develop specialization and reputation in that product line.

Limitation
-if the product matures or dies, the marketer would cease to exist.

d) Market Specialization: The marketer deals with one specific market only; he tries to meet many
needs of a particular customer group. Example: The various Ordinance Factories in India exist to cater
to meet the various needs of the Defense forces only.
Advantage
-in case of a monopolistic situation, the marketer has lot of potential to grow; he would exist to serve the
need and wants of the segment.
-the focus is on catering for the needs of a particular market segment only; so the marketer becomes
customer focused totally.

Disadvantage
-if the segment weakens, the marketer is finished.

e) Full market coverage: Here the marketer caters for the entire market. Full market coverage could
assume two forms, differentiated and undifferentiated. In the differentiated form, the marketer would
operate in the whole market and offer different products for the various segments; Example: IBM, HP.
The undifferentiated form is also known as mass marketing. Here, the marketer would treat the market
as a single segment and offer a single product. He would ignore differences amongst various segments;
Example: Salt, Pepsi.

Advantages of full market coverage

-a large scale diversification is possible, and the chances of risk of failing totally are minimized.

Limitation
-it is difficult for the marketer to be focused/specialized in a product category or in a market.

Patterns of Target Market Selection – see diagrams on page 94/811 of Source Document

1.8.5 Positioning
As a part of STP, after deciding upon the targets to cater for, the marketer needs to position the product
or service offering. Positioning is the act of designing the product and service offering of a company in
the minds of the customers so that:
(i) the consumer can relate the product and service offering to a need or want;
(ii) the marketer can create a distinctive image of himself.
(iii) the consumer can perceive a brand’s characteristics relative to those of competitive offerings.

It is process of creating an image of the product and service offering in the minds of the consumer,
trying to differentiate it from the competitor. Positioning is also defined by Kotler as “- designing an
offer so that it occupies a distinct and valued place in the minds of the target customer.” And according
to Al Ries and Jack Trout, “ Positioning is not what you do to your product, but what you do to the
mind of your prospective customer.”

A product or service offering is positioned on the basis of the attributes or features that the product or
service offering possesses; Some examples are as follows: i) Johnson and Johnson: Baby care ii) Dove:
Skin care; Soap with Moisturizer iii) Amul: the Taste of India; Cooperative Movement iv) Tata tea:
Jaago re: Public Awareness. The marketer should choose the positioning parameters with care; they
should be important (and of “value” to the customers’); distinctive, superior, affordable and viable.

1.8.5.1 Issues to address under positioning

a) Choosing “what to position”: The criteria to promote could relate to products, services, the 4Ps,
company image and reputation, and the people. As a strategy, positioning can be based on: i) perceived
benefits, characteristics or image. ii) Competition, iii) a combination of both perceived benefits and
competition. The product positioning may be done on specific bases/features/characteristics:
i) Product Attributes: Example: LG Golden Eye: Auto contrast and Brightness control.
ii) Benefits, Problem Solutions and Basic Needs: Examples: Pepsodent (decay prevention), Close-Up
(Fresh breath).
iii) Quality: Example: Sony picture quality and sound
iv) Product User: Examples: Reid and Taylor (Executive/ Lifestyle), Johnson and Johnson (Babies)
v) Product Usage
vi) Specific use: Example: Greeting cards for every occasion
vii) Services: Example: Maruti Service Station all over India
viii) Price
ix) Distribution: Example: Dell (direct selling: customization)
x) Against other Products (Competitors): Example: Savlon vs Dettol

b) “How many criteria” to use for positioning: The marketer has the option to use one or few of the
criteria to position himself. When he uses just one criterion, he makes use of what is called a Unique
Selling Proposition. He may also decide to position on more than one criterion and may position on a
few features or attributes or benefits.

c) What “qualities” should the criteria for positioning possess? The criteria for positioning should
be:
- Important: “value” in the eyes of the segment; eg. Sony color TVs: known for picture quality and
sound effect.
- Distinctive: “unique.” eg., Savlon antiseptic does not sting or burn when applied.
- Superior: “better” than other available brands; eg., Cooling time for Refrigerators.
- Communicable: the criteria should be easily communicable to the segment in a layman’s language.
- Preemptive: The criteria should be such that it is not easy to copy or imitate easily.
- Affordable: The criteria should be valuable but should not be so high priced that it is out of reach for
the segment. The customer must be able and willing to pay for the feature.
- Profitable: The delivery of such value should not be at the cost of earning losses for the company. It
should be valuable both from a customers’ perspective as well as from the company’s perspective.

1.8.5.2 Positioning Strategies: A marketer could choose amongst two kinds of positioning strategies; he
could either opt for positioning on i) Points of parity (POP) or ii) Points of difference (POD). Points
of parity could be further sub-divided into Category point-of-parity associations, and Competitive point-
of parity associations.

i) Points of parity (POP): Here the product in question is not unique in nature; it is shared by other
competitive brands; The product or service offering is similar to that of the competitor. Example:
Complan, Milo and Bournvita: Positioned as: All help children to grow. POP has two basic forms, viz.,
(a) Category point-of-parity and b) Competitive point-of-parity.
ia) Category point-of-parity: The product or service offering should possess these qualities in order to
qualify being a part of the product or service category. These are the bare minimum that all the brands
should possess in order to qualify as a part of the product or service industry. Example: All
mouthwashes contain antimicrobials; they are also minty.

ib) Competitive point-of-parity: These are developed to fight against and balance out with the
competitors’ points-of-difference. Example: Listerine vs Scope: Listerine claims to leave you fresh after
a rinse and prevents bad breath; Scope claims that it does the same but in a milder way. Savlon versus
Dettol: Savlon does not sting when applied on wound

ii) Points of difference (POD): Here the product or service offering is unique. The positioning is based
on the USP (Unique Selling Proposition). The uniqueness should be something that the ‘customers
value’, and can relate to favorably. This USP leads to differentiation and can thus, develop competitive
brand positioning. The product and service offering can be differentiated on the basis of product,
service, people, image and public relations etc. Example: Auto color and contrast setting: LG Golden
Eye.
TOPIC 2: CONSUMERS AS INDIVIDUALS (PSYCHOLOGICAL INFLUENCES ON
CONSUMER DECISION)

2.1 Definition and Meaning of Consumer Personality

Personality is defined as a sum total of outer physiological as well as the inner psychological
characteristics that determine and reflect how a person reacts to his environment. It exhibits itself
through a unique psychological makeup that activates behavior on the part of an individual in response
to forces in his or her environment. Just as an individual has a personality, similarly products also have a
personality of their own. 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. However, the emphasis is on the inner
characteristics, i.e., the qualities, attributes, traits, and mannerisms that differentiate one individual from
another individual, and make him unique in his own way. Specific to environment here, is the social
environment, which posits the social dimension of a person’s psychological makeup. A person’s
personal make up is to a large extent influenced by his social environment, i.e. the family, friends, social
class, sub culture, culture, nationality and the environment in which he grows up. As Schiffman has put
it, 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.”

2.2 Consumer Personality and its Nature

1. Researchers offer varied opinions as to the evolution of personality; while some argue it is inborn and
based on heredity, others illustrate the role of childhood experiences as well as experiences over life
span, environmental influences as well as sudden events that mould and change one’s personality.

2. Every person is unique in oneself, and thus personality reflects individual differences. All individuals
have internal characteristics or traits. There also exist consistent and measurable differences between
individuals. The inner characteristics that constitute the personality make up are unique in themselves,
having arisen from heredity, childhood experiences, events and incidents across lifetime and as well as
impact by the environment. Thus, no two people are alike and each one of us exhibits a unique personal
make-up. Yet, while we are different, we may be similar to each other on a trait (s), and could constitute
a personality type (s). This could have implications for a marketer who could treat each personality type
as a separate segment, position his offering accordingly and design the 4Ps.

3. An individual’s personality remains consistent over time and is enduring in nature. As such it cannot
be changed easily, quickly and frequently. This consistency and stability manifest itself even in buying
and consumption patterns and marketers need to learn how to overcome them. For example, i) the
marketer needs to match his product/brand personality with the consumer’s personality; it can never
work the other way round; ii) the marketer would have to design his 4Ps keeping in mind the target
segment’s personality type, be it pricing or promotion or even selling. However, while people exhibit
consistency and stability in their patterns of behavior, it could vary because of psychological, socio
cultural and environmental factors. Same hold true for consumer behavior and consumption pattern
which may vary because of such pressures. For example, a person may agree to buy a brand that does
not match his persona because of social pressures.

4. Personality can change under certain circumstances and over life span, like for example in reaction to
abrupt events/incidents/situations as also due to gradual maturing with age.

2.3 Distinction between Personality Traits and Personality Types

As mentioned in the above section, as individuals, each one of us is unique with a wide array of
qualities, attributes, traits and characteristics. However, each one of us shares with each other a quality
or a few traits. When we share a trait (s) with another (others), we are said to be similar on that trait and
thus we together with the other person (s), are said to fall in a personality type. In other words, a
personality trait is a person's inclination to behave in a particular way while interacting with the external
environment to achieve goals; this would be specific to an area of a person's life. Many personality
traits put together, comprise the personal make-up of a person and culminate into his personality. On
the other hand, a group of people who share personality traits are said to fall into a personality class.
They are expected to react to the environment in a similar manner as they are similar to each other on
the basis of certain trait (s). For example, stubbornness may be a trait; dogmatism would become a
personality type.

2.4 Theories of Personality

2.4.1 Freudian theory:
Sigmund Freud, the father of psychology, became famous with his psychoanalytic theory of personality.
Sigmund based his theory on the following assumptions:
a) unconscious needs or drives lie at the heart of human motivation and personality; and
b) the socialization process that takes place within people in a social set up has a huge impact on
individual behavior.
Freud explained much of how the psyche or the mind operates, and proposed that the human psyche is
composed of parts within our awareness and beyond our awareness. He said that all behavior within an
individual cannot be explained, much lies in the subconscious. Freud viewed personality as “an
iceberg”; just as majority of the iceberg remains within water and only the tip of the iceberg is above
water, similarly, much of our personality exists below our level of awareness, as the unconscious and
just as a part of it lies above, as the conscious.

Based on the level of awareness, the human mind comprises three parts, i.e. conscious, preconscious and
the unconscious or the sub-conscious;
The conscious mind is what one is aware of at any particular moment of time and reflects ones present
thoughts, feelings, perceptions, fantasies, etc. It restricts itself to the current thinking processes and
comprises a very large part of our current awareness.
The preconscious mind or the "available memory," is what can be retrieved and made conscious, and
brought to mind instantly or quickly. It is what we are aware of but not paying attention to at a point of
time. It is something that can be brought into the conscious mind.
The larger part of the human mind consists of the unconscious, which is all that stays at the
subconscious level, and comprises the unaware, better known as our drives or instincts, feelings and
memories and emotions related to trauma. This part in content and process is out of direct reach of the
conscious mind, and thinks independently. An individual has no access to because it is unknown and
hidden.
This unconscious part is the source of all our drives and motives; yet we often deny or refuse to accept
and often resist them from becoming conscious. This is because they form the unaware part and are in a
disguised form. It is because of this unconscious part that we are largely unable to control many
aspects of our behavior, especially those acts which we would prefer to avoid. According to Freud,
much of human behavior is driven directly from the subconscious mind; and so it is important that the
unconscious material needs to be brought into the conscious state so that it can be examined in a rational
manner.

Freud also spoke of the Id, Ego and Super ego.

Id consists of primitive drives that lack the real perception of reality and operates on the pleasure
principle, with the objective of seeking pleasure and avoidance of pain, and doing what one wants to do.
Processes that come into play under Id are primary processes like hunger, thirst etc.

Ego is aware of reality and operates via the reality principle, where it recognizes what is real and
understands that behavior has consequences. Ego also includes the impact that socialization has to play
in the life of an individual; it recognizes the existence of social rules that are necessary in order to live
and socialize with other people, and thus, plans to satisfy ones’ needs within the social values and rules.
Processes that come into play under Ego are secondary processes, like learning and memory, perception
etc.

Super ego comprises the value system and the morals, which emanate from what an individual learns in
childhood from his parents. It is contained in the conscious part of our memory. It believes in doing
what the society says. While the Ego and Super Ego are partly conscious and partly unconscious, the Id
is the unconscious. The Super ego acts as a counterbalance to the Id as the former seeks to restrict the
pleasure-seeking demands of the latter, and it is left for the Ego to balance the demands of the Id and
Super ego with the constraints of reality, i.e. it controls the higher mental processes such as logical
reasoning to solve the Id-Super ego dilemma.
According to Freud, personality is based on the dynamic and continuous interplay between the Id, Ego
and Super Ego. The Id demands immediate gratification of needs and desires (pleasure principle)
regardless of constraints in the external environment; the Ego acts to realistically meet the desires of the
Id (reality principle); the Super Ego (conscience) blends morals and societal rules upon the ego, so that
the desires are met both realistically and morally.

Pointing out the impact of socialization on members of a society, , Freud indicated that there exists a
state of tension within an individual arising out if there is a mismatch between an individual’s needs and
desires vis-à-vis the norms set up by the society and the socialization process. The manner in which an
individual sort out the dilemma shapes his personality.

2.4.1.1 Implications of Freudian theory for marketers

Consumers match their personality styles with the product/brands they buy. Thus, marketers could take a
clue and segment consumers on the basis of the personality traits that determine their behavior. Based on
the dominant personality system, the three elements, Id, Ego, and Super Ego can also be used to segment
markets. The dominance of either of these would lead to a different personality make up, and variation
in decision making styles and consumption patterns; For example, where the Id is dominant, the person
would be pleasure seeking, often irrational; his priorities and consumption patterns would be very
different to another consumer who exhibits dominance of Ego (rationality) and Super Ego (rationality
plus social norms).

Second, the study of personality also holds good when we speak of colors, as personality factors are
associated with and reflective of specific colors. Like, green denotes freshness, nature; red denotes
passion, anger; black denotes power, sophistication; white denotes purity, chastity and cleanliness; gold
and silver denote regality and wealth.

Marketers keep such associations in mind while designing the product, its packaging as well as the
advertisement. For example, mouthwash is white, herbal soaps are green, motorcycles are generally
black and red etc..

2.4.2 Jungian theory: Carl Jung, a contemporary of Freud elaborated on personality types. He proposed
a typology based upon four bipolar dimensions, where each pole represents an opposite preference and
thus illustrates four dichotomies, viz, Extroversion – Introversion; Sensing – Intuition; Thinking–
Feeling; and Judging–Perceiving. Each of the four pairs is illustrative of two different personality
characteristics. The permutations of these 4 pairs help identify sixteen different personality types. The
sixteen personality types are defined in terms of acronyms of the combination of the 4 dimensions they
represent. The various types are Extroverted Sensing (ESFP, ESTP), Introverted Sensing (ISTJ, ISFJ),
Extraverted Intuition (ENFP, ENTP), Introverted Intuition (INFJ, INTJ), Extraverted Thinking (ESTJ,
ENTJ), Introverted Thinking (ISTP, INTP), Extraverted Feeling (ESFJ, ENFJ) and Introverted Feeling
(INFP, ISFP). The personality types proposed by Carl Jung were developed and incorporated into a
scale that came to be famously known and applied as the MBTI or the Myers Briggs Type Indicator.
Essentially a personality inventory, it has been used extensively in social sciences to measure sensing-
intuiting, thinking-feeling, extroversion-introversion, and judging-perceiving pairs of psychological
construct/dimensions.

Note: While the scale has been applied successfully in studies on consumer behavior and market
research, recent research has tended to focus on two mental bipolar dimensions or dichotomies, viz.,
sensing-intuiting (S-N) and thinking-feeling (T-F). The two dimensions, sensing (S) and intuiting (N)
measure how a person receives, gathers and processes information. The people who fall under the S
category prefer to gather information through their senses directly, while the people who fall under the
N category rely upon their understanding of things, based on their perception of the world. Thus they
can perceive information through their senses, or their intuition.

The other two dimensions, thinking (T) and feeling (F) refer to how individuals take decisions. The
people who fall under the T category make decisions based on an unbiased reasoning and logic, while
the people who fall under the F category base their decisions on feeling and emotions. Thus they can
make decisions based on objective logic, or subjective feelings.

According to Jung, we all use the S,N,T and F. However each one of us varies in their usage and
frequency. The combination of our "preferences" defines our personality type. The same descriptions of
the sensing-intuiting (S-N) and thinking-feeling (T-F) personality types may be applied to consumer
behavior. The S and N determine how a consumer gathers and processes information about products,
while the T and F determine how he makes a purchase decision. By cross-tabulating the two pairs of
psychological dimensions, we can derive four different personality types, viz. Sensing-Thinking (S-T),
Sensing-Feeling (S-F), Intuiting-Thinking (N-T) and Intuiting-Feeling (N-F). Each of these reflects
variedly in purchase decisions and consumption processes. The marketer could benefit immensely by
gaining insights as to the varying types so as to design his marketing strategy to be able to serve
consumers effectively and efficiently.

2.4.2.1 Illustration of the Jungian theory (four women, each one with a different personality type, S-
T, S-F, NT and N-F who desire to buy some gold jewellery)

Psychological Characteristics Example

construct/dimensions
Sensing-Thinking -Extensive search for information -The lady would collect facts about the reputed dealers
(S-T) -Rational and logical in decision and the prevailing gold prices.
making -She would evaluate and make comparisons with respect
-Economic orientation; Price- to carat, purity, design and making charges. -After careful
sensitive thought and deliberation, she would take a decision on
-Propelled by materialism; reflects her own regarding what to buy and from where.
personal motives -The decision choice would be based on genuinity and
-Risk avoider -Empirical economics.
Sensing-Feeling (S-F) -Searches for information, but likes -The lady would collect facts about gold prices, carat,
to consider others’ opinions purity, dealers etc.
-Basis decision on personal values -She would evaluate and make comparisons with respect
-Propelled by materialism; reflects to carat, purity, design and making charges. -She would
status -Risk taker but likes to share like to take opinion of others, especially on the appeal
with others and design. She would like to seek advice from the dealer
-Empirical himself, or her friends/ relatives and people from her
-Low on rationality social class.
-She would take a decision regarding what to buy and
from where based on opinions of others.
-The decision choice would be based on genuinity and
opinion of others.
Intuiting-Thinking -Imagines wide range of options; -The lady would weigh the various options that she is
(N-T) Weighs pros and cons aware of. -Such options would relate to carat, purity,
-Basis decisions on intuition and design and making charges, as well as gold prices and
imagination; Yet, uses logic while available dealers. -She would be speculative and take a
making decisions decision on her own regarding what to buy and from
-Risk taker; Speculative where. -The decision choice would be based on intuition,
imagination and hunch. She would be a risk taker.
Intuiting-Feeling (N-F) -Imagines wide range of options - -The lady would weigh the various options that she is
Basis decisions on intuition and aware of.
imagination; Yet, uses other -Such options would relate to carat, purity, design and
peoples’ opinions making charges, as well as gold prices and available
-Highly “people oriented” or “other dealers.
directed” -She would be speculative and take a decision on her own
-Least price sensitive regarding what to buy and from where.
-Risk seeker; Novelty seeking -She would look for peoples’ opinions
-She would be least price sensitive
-The decision choice would be based on intuition,
imagination and hunch, but with hearsay from others
-She would be a risk taker and novelty seeker, often
switching dealers and brands.

Implications of Jungian theory for a marketer: The theory has relevance for a marketer. After gaining an
insight into the various personality types, a marketer could design his marketing strategy so as to be able
to serve consumers with the varying personality types in a better manner, leaving them more satisfied.

2.4.3 Neo-Freudian theory

A group of psychologists believed that social interaction and resultant relationships formed the basis for
the growth and development of personality. Noteworthy among them are Alfred Adler, Harry Stack
Sullivan and Karen Homey. They disagreed with their contemporary, Freud who believed that
personality was i) biological and rooted in genetics, and ii) was groomed as a result of early childhood
experiences. These psychological researchers laid emphasis on the process of socialization and came to
be known as the Neo-Freudians.
a) Alfred Adler
Regarded as the father of individual psychology, was a disciple of Freud. However, he later broke away
from the Freudian philosophy due to disagreement over the importance that Freud gave to the
“unconscious”. Adler was the first psychologist to speak of the term ‘inferiority complex’, something
that arose out of a sense of inferiority or inadequacy. He believed that:
- people are goal oriented, with an urge for personal growth, and “the will to power”; they have within
them a "self perfecting" drive; this drive is the single "drive" or motivating force behind all behavior and
experience
- individuals seek to overcome feelings of anxiety and feelings of inferiority; the basic drive in human
beings is to strive from an initial state of inadequacy, or what he termed "inferiority", toward
"superiority", or self-actualization. People compensate (strive to overcome) for inferiorities by making
necessary adjustments.
- people strive for goals that can be referred to as style of life;
- social drives, especially family, friends and culture have an impact on behavior and feelings; right from
birth across a life span, people involve themselves in social relationships;
- the primal social influences in an individual can be modified in a manner such that each one of us
develops personal styles in dealing with our life and achieving goals.

According to Adler’s theory individuals buy to overcome feelings of inferiority.

b) Herbert Harry Stack Sullivan

-Sullivan, a psychiatrist extended Freud’s theory of psychoanalysis,
-concluded that failures in interpersonal relationships were largely responsible for mental illnesses and
disorders.
- he referred to such causes as “interactional”, which needed to be assessed to cure any kind of
psychoses.
-according to Sullivan, social relationships were extremely important for human beings and loneliness
was the most painful of human experiences.
-developed a theory of psychiatry based on interpersonal relationships where social forces are largely
responsible for mental illnesses.
-referred to his approach as an interpersonal theory of psychiatry, to focus on “what goes on between
people”, in sharp contrast to Freud, who focused on “what goes on inside people”.
-believed that social relationships are primary, which actually lead to personality - personality manifests
itself in such social relationships.
-proposed that human beings are driven towards two sources of motivation viz., the pursuit of
satisfactions and the pursuit of security.
-with respect to satisfaction, human beings seek satisfaction of mainly bodily needs, with the goal to
reduce tension.
-with respect to security, human beings seek to reduce the insecurity that arises from social and cultural
needs. Thus, Sullivan focused on how human beings try to form and maintain social relationships with
each other, especially if such relationships are significant and rewarding.
- also spoke about anxiety in human beings and elaborated on how personality is impacted as people put
in efforts to reduce tensions, particularly anxiety, developing particular personality traits in the process.

c) Karen Homey
-Karen Homey added on to Freud’s work by emphasizing the role of social factors.
-Her approach came to be known as the psychosocial analysis.
-focused on the emotional relationship that exists between parent and child early in the child's life.
-like other Neo-Freudists, also spoke on anxiety.
-according to her, people experience anxiety and tend to act as neurotics; the irrational defenses against
anxiety become a permanent part of personality and that affect human behavior.
-According to Homey, based on their approach towards overcoming feelings of anxiety, people could be
classified into three groups, which are compliant, aggressive, and detached (CAD).

Compliant
Some people who experience a great deal of anxiety and helplessness move toward other people in order
to gain help and acceptance. They seek social support, approval and acceptance and so they move
towards others. Such people are regarded as compliants. They want to be loved, admired, wanted and
appreciated.

Aggressive
Some people try to overcome their insecurities and anxieties by forcing their power over others,
dominating them, or even excelling over them in the process making themselves feel secured. The
objective is to 'get them before they get me.' Such people are aggressive and move against others. In
other words they want to excel over others. They want to be successful and powerful and have a desire
for personal admiration and achievement. In the process, these people could be demanding, selfish, rude
and cruel.

Detached
There are some people who want to move away from others - they are asocial and indifferent towards
others. They believe that if they do not involve with others, they would escape being hurt from them.
Such people are referred to as detached and seek freedom from obligations, and desire total
independence, leaving them lonely and empty. They like to create their own style.

Based on the three types, a personality test referred to as the CAD scale was developed. According to
Homey’s theory, different types of people buy different types of products/services. They could be
treated as three distinct segments, and the marketing mix designed accordingly. For example, the
compliant consumers who would like to be in company of other people; an aggressive consumer who
would like to excel over others, would like to drink health drinks; and detached consumers who seek
total independence and like to create their own style would like to go for meditation and rejuvenation
camps.

2.4.3.1 Implications of the Neo-Freudian theories for a marketer

The Neo-Freudian theories emphasize the role that socialization has to play. Marketers could draw in
heavily in so far as the impact that opinion leaders, as well as interpersonal communication and word of
mouth could have on consumer decision processes and consumption processes. This would also include
the impact that family, friends, social class, culture and sub-culture have. Marketers have also tended to
use Neo-Freudian theories while segmenting markets and positioning their products, eg. Personality
types have been used to segment markets and position products as per the segment.

2.4.4 Trait theory

-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.
-people possess specific psychological characteristics that are referred to as traits; and all those who
possess a particular trait, are said to belong to a personality type.
-a trait is a predisposition to behave in a certain manner.
-in order to identify traits within individuals and differentiate amongst themselves, the trait theorists rely
on personality tests, scales and inventories. Hence, they assume some kind of a quantitative orientation
unlike the Freudian, and Neo-Freudian schools.
-once they have identified the traits, they classify individuals into groups of people on the basis of the
pattern of traits that they possess.
-the trait theories can be of two broad categories, viz., simple trait theories and general trait theories.
i) Simple trait theories: A limited number of traits are identified, and people are identified and
classified on the basis of these traits.
ii) General trait theories: A large variety of traits are identified.

2.4.4.1 An Assessment of the Theory: Unlike the Freudian and the Neo-Freudian theories, the Trait
Theories possess a degree of quantification while classifying individuals into personality types. Through
the application of tests and scales, people are objectively assessed for presence/absence of personality
traits and accordingly classified into personality types. Thus, unlike the previous theories, the Trait
approach seems to be a more realistic and objective approach. However, the limitation lies in the fact
that sometimes traits tend to be indefinable, vague and indescribable; nevertheless the personality tests
are widely used.

2.4.4.2 The Trait Theory and Consumer Behavior: The Trait theory holds greater and wider
relevance for a marketer than the Freudian and Neo-Freudian approaches. This is primarily due to the
fact that the approach proves to be realistic, objective and quantitative. Single trait personality scales,
inventories and tests have been designed, and tested for validity and reliability, and thereafter been
applied for consumer research. Such single trait scales, as the name suggests, pertain to measurement of
a single trait. Based on the traits, the consumers can be classified into groups, labeling the consumers as
being of a certain personality type. Consumers can be finally segmented into personality types, on the
basis of the configuration of traits that they possess.

Consumer behaviorists have identified General and Consumption specific traits; On the basis of these,
they have been able to usefully formulate and implement marketing strategies, through first segmenting
the market, target it, positioning their product/service offering, and designing the marketing mix
accordingly. Some traits that have been subject to research are traits like consumer innovativeness,
consumer susceptibility to interpersonal influence and consumer ethnocentrism.

The Five factor theory lists the traits as openness to experience, conscientiousness, experience,
agreeableness and neuroticism (also referred to as OCEAN).
i) Consumer Innovativeness: Innovativeness as a personality trait reflects how well a person reacts to
something that is “new”. A marketer needs to assess in its target segment, the degree of receptivity
towards new products and services/brands or even towards changes made in the other Ps be it pricing,
distribution and/or communication.

ii) Consumer Susceptibility to Interpersonal Influence: Susceptibility to interpersonal influence

measures a person’s receptiveness to social influence. The famous SUSCEP scale has been designed to
assess consumers’ susceptibility to social influence. People who score high on the scale are high on self-
confidence as opposed to those who score low on the scale. Interpersonal influence can assume three
forms, viz., information influence, value expressive influence and utilitarian influence.
a) Information influence: Inclination of a consumer to rely on others for information, and readily
accept this information without thought and deliberation, is referred to as an information influence.
b) Value expressive influence: The person desires social acceptance by members of the social class; in
order to gain such acceptance and hold on to it, he decides to behave in a manner that is similar to them.
He respects the values, beliefs and notions of other members of his social class. He would patronize
product and service offerings that have social approval, and behave similar to others in his social group
in terms of purchase decisions and consumption patterns.
c) Utilitarian influence: Under this kind of influence, a person tries to be conventional; he agrees to
what you have to say in order to win a reward or avoid a punishment. In other words, he yields to social
pressure, in order to benefit like others or escape a punishment like others. As a consumer, he would
patronize usage of product and service offerings or brands that are rewarding in terms of usage
experience provide value for money and bring satisfaction. He would avoid brands that others do not
buy because they are not rewarding.
2.5 Consumer Needs and Motivation
-a need is a state of felt deprivation while a want is a desire for a specific satisfier. Needs pre-exist a
marketer -they are already known and experienced by consumers.
-at times, however consumers fail to identify needs as the needs lie at the sub conscious level and remain
unfelt. In such cases, a marketer can just help a consumer identify such needs. Example: People have
always sweated, perspired and smelt of body odour. People did not become conscious of the social
embarrassment till companies introduced deo sprays and sticks, eg. Rexona, Ponds etc, and began to
play advertisements that depicted social appeals like embarrassment amongst friends and relatives at
parties and social gatherings.
-also most of the times, human needs are dormant and lie at a latent state. They get aroused suddenly by
(i) stimuli internal to the individual and his physiology; Example: a person feels hungry and moves
towards a restaurant to buy some food
(ii) stimuli in the external environment, for example: a person smells the aroma of freshly baked cakes
and enters the bakery to buy some cakes. The marketer could also formulate strategies that help trigger
such needs. Example: A banner or a hoarding informing people of a food festival at attractive prices can
trigger off a desire amongst people to try out newer dishes and cuisine, Or the display of a newly
launched car, can encourage customer trail and subsequent purchase.

As consumers begin to identify and feel that a need exists, there occurs an inner urge or a drive towards
taking an action so as to fulfill the need. This inner urge and the impelling action to put in efforts to
attain a goal and fulfill the need and thereby attempt at satisfaction is referred to as motivation. In terms
of consumer behavior, when a consumer realizes that there exists a state of felt deficiency (need), it gets
translated into a variety of options (wants) from which a consumer may choose. The need/want lead to a
state of tension in the mind of the consumer and an urge/drive to act (buy/consume), so as to fulfill the
need or want.

Consumer motivation is the urge or drive to satisfy needs through product purchase and its
consumption. “The needs, wants, drives, and desires of an individual that lead him or her toward the
purchase of products or ideas. The motivations may be physiologically, psychologically, or
environmentally driven.” (Source: American Marketing Association). The entire need-want-goal-action-
satisfaction chain comprises the cognition, affect and behavior components within an individual.
However, the process gets started with cognition, and therefore marketers need to inform and educate
the consumers about their product/service offerings and the marketing mix.

2.3.1 Nature and Diversity of Consumer Needs, Goals and Motivation

Needs are primarily of two types, viz., physiological needs and psychological needs. People possess and
experience a variety of such needs simultaneously.

a) Physiological needs: As the name suggests, these needs arise out of our physiology and are also
called primary or biological or biogenic needs. Examples include need for food, water, sleep, air, shelter
etc. We are born with such needs and these are innate in nature. In order to survive, these needs must be
fulfilled. As human beings are all similar, thus, we are also similar in so far as these needs are
concerned.

b) Psychological needs: These needs arise out of our sociology and psychology and as such they are
also called secondary or psychogenic needs. Examples include need for affiliation, power, recognition,
esteem and status, etc. We acquire such needs during the period of socialization. Unlike physiological
needs, human beings differ amongst each other in so far as these needs are concerned.

Goals: The goal is manifested after the need and want are identified. In fact our actions to purchase/
consume are all goal directed. A goal is the ideal state that a person desires as he thinks that it would
help him satisfy a need. A product/service offering and the value proposition is a means to provide such
benefits that the consumer utilizes to achieve his goals. Goals can be generic or product-specific.

a) Generic goals: Generic goals can be defined as the general category of goals that consumers see as a
means to satisfy their needs and wants. For example, a consumer may want to buy a cell phone.
b) Product-specific goals: These are specifically branded products or services that the consumers select
to fulfill the generic goal. For example, the consumer would want to buy a Nokia or a Samsung. The
nature of goals can be explained as follows:
i) Multiplicity and Selection of Goals: A need/want may be fulfilled through attainment of various
goals. For example, thirst may be quenched with water, a fruit juice, a cola; and even within fruit juice,
the choice could vary amongst many like orange juice, lime juice, or mixed fruit juice. A consumer is
thus exposed to a multiplicity of goals that could all be equally appropriate and attractive. However, the
awareness about such multiple goals would vary from person to person based on learning and
experience. Even the selection of a goal out of the many would vary across people as it would depend on
factors like his purchasing power, personal preferences and choices, experience of self as well as social
influences, lifestyle and values, and socio-cultural norms and practices.
ii) Conflicting needs and goals: A consumer may often find himself amidst conflicting needs and goals
at the same time or at various times, and this leads to what is referred to as an intra individual conflict,
something that the person feels within himself. Conflicting goals could lead to three types of intra
individual conflict:
1) Approach-approach conflict: In the approach-approach conflict, the consumer finds himself in a
situation where he has to make a choice between two desirable alternatives each of which are equally
attractive. However, due to constraints, he cannot choose both the options. Example: A person wants to
buy fulfill his esteem need. He can either buy a Merc or a BMW, but cannot buy both because of his
limited resources. Another example could be that a person is hungry and is tempted to have both a pizza
and a burger.
2) Approach-avoidance conflict: Here the consumer is faced with an option that has both a positive
and a negative to it, i.e., the goal presents something attractive, yet something unattractive to it. Thus the
person is both attracted towards a goal as well as repelled by it. For example, a person wants to buy a
new television set with the best of features and quality sound. He is presented with various alternative
brands. He is tempted to buy a Sony Bravia but he also knows that it would cost a premium and would
be more expensive than other brands. While Sony as a brand depicts high quality, it also costs more. The
situation would further get complicated if the dealer informs him of a scheme that if he leaves Sony and
buys a Samsung TV, he gets a free DVD player. This is called a double approach-avoidance conflict.
Another example is that a lady wants to have an ice-cream but is also concerned about the fact that it
would mean adding to calories and weight.
3) Avoidance-avoidance conflict: The avoidance-avoidance conflict involves choosing between two
equally unattractive and undesirable alternatives; it is a situation where you choose between the devil
and the deep sea. The consumer is faced with two options, each of which he wants to discard. For
example, the doctor prescribes to a patient of a long drawn treatment based on medicines with lower rate
of success as against another option of a surgical procedure with high risk of post operative
complications.

2.5.2 Motives and Motivation

Motives can be rational as well as emotional.
a) Rational: When consumer motives are objective, and when selection of goals is made on the basis of
objective criteria, they are referred to as rational motives. These criteria could be price, size, weight etc.
b) Emotional: When consumer motives are subjective, and when selection of goals is made on the basis
of personal and subjective criteria, like appearance and looks, colour, aesthetics etc., they are referred to
as emotional motives.

Motivation can take a positive as well as a negative form and correspondingly a positive and negative
direction respectively.
a) Positive motivation: The person is driven towards an object/condition/situation. Example: A person
goes to the gym three times a week to build up his body and muscles so that he can look good. The
object in question (gym, work out, good body) is referred to as an approach object. His behavior is
directed towards achievement of a positive goal, which is fitness, body building and great looks.
b) Negative motivation: Here, the person is driven away from an object/condition/situation, and the
corresponding effects of non usage. For example, a person decides to buy Pepsodent toothpaste for his
child as it helps fight germs and tooth decay whole day long. His behavior is directed towards the object
(Pepsodent) to avoid a negative goal, which is tooth decay.

Note: - Needs and wants exhibit multiplicity. Various kinds of physiological and psychological needs
have been proposed and listed; while physiological needs are few and universal, psychological needs are
many and varied.
- A person may experience many needs and wants simultaneously and one may be sacrificed at the cost
of the other.
- Needs/wants/goals/motives vary from person to person. They also vary within a person across situation
to situation.
- Needs/wants are never fully satisfied. Wants are satisfied temporarily but needs are never satisfied.
They keep on emerging. As one need is satisfied, another emerges and so forth, and as they emerge, they
trigger off desire and motives.
- Needs/wants/goals/motives grow, develop and change in response to an individual and his
environment.
- Needs and wants may also lie dormant. They may suddenly trigger owing to physiological factors,
social factors, and/or external environmental factors.
- Success and failure to fulfill needs and wants also affect the future choice of goals.

2.6 Consumer Involvement

Closely related to motivation, Involvement is defined as a psychological state that motivates people to
be more aware and careful about persons/objects/situations. It also indicates a level of personal
importance that the person attaches to such persons/objects/situations. Thus, there are (a) high and low-
involvement consumers; (b) high and low-involvement purchases.

2.6.1 Meaning of Consumer Involvement

-Consumer involvement is a state of mind that motivates consumers to identify with product/service
offerings, their consumption patterns and consumption behavior.
-Involvement creates within consumers an urge to look for and think about the product/service category
and the varying options before making decisions on brand preferences and the final act of purchase.
-It is the amount of physical and mental effort that a consumer puts into a purchase decision.
-It creates within a person a level of relevance or personal importance to the product/service offering and
this leads to an urge within the former to collect and interpret information for present/future decision
making and use.
-Involvement affects the consumer decision process and the sub processes of information search,
information processing, and information transmission.

As Schiffman has put it “Involvement is a heightened state of awareness that motivates consumers to
seek out, attend to, and think about product information prior to purchase”. It is the perceived interest
and importance that a consumer attaches to the acquisition and consumption of a product/service
offering. According to Herbert Krugman, consumers approach the marketplace and the corresponding
product/service offerings with varying levels and intensity of interest and personal importance, referred
to as consumer involvement.

Involvement of consumers while making purchase decisions varies across persons, across
product/service offerings in question as well as purchase situations and time at hand. Some consumers
are more involved in purchase processes than others. For example, a person who has a high level of
interest in a product category and a person who is risk aversive would expend a lot of time making a
decision with regard to the product and the brand. They would compare brands across features, prices
among other things. Involvement also varies across product/service offerings -some products are high
involvement products, for example products that are high in value and expensive, possess sufficient
amount of risk, are purchased infrequently, and once purchased, the action is irrevocable. On the other
hand, there are low involvement products, which are moderately expensive or generally inexpensive,
possess little risk and are purchased regularly on a routine basis.

2.6.2 Nature of Consumer Involvement

1. It is an inner urge that creates within an individual an interest/desire to hold certain product/service
offerings in greater relevance/importance.
2. Involvement possesses certain properties:
a) It has a level of strength and intensity that determines the degree of involvement that a consumer
possesses.
b) The length of time that the consumer remains in heightened state determines the level of persistence.
It could be short term and situational interest in the product/service category; or it could be long term
and enduring.
c) It is directed towards any or all of the elements of the marketing mix. A person may show
involvement towards the product (its features/attributes and benefits), the price, the store or the dealer or
even the promotional effort (advertisement/sales promotion etc).
3. As a process, involvement is impacted by certain “antecedents” that get restrained by “moderating
factors,” and finally affect its degree of intensity and level of persistence.
Antecedent factors are certain factors that precede and lead to involvement, and are referred to as
‘antecedents’ to consumer involvement. They include:
a) The person himself and the individual determinants like motives/needs; learning/experiences;
interests; attitudes; personality; lifestyle/social class/interests/values; etc, and have a bearing upon
consumer involvement.
b) The object, stimuli or the product/service offering also affects involvement. The greater the product
differentiation, the greater would be the level of involvement. Varying yet comparable brand alternatives
also impact the level of involvement. Involvement would also be impacted by features, benefits and
associated value of various brand offerings; brand image and equity; and very importantly the associated
risk levels.
c) The occasion/situation/reason of purchase also have a bearing on the level of consumer involvement;
for example, while gifting to a person special to oneself, we are careful about the product or the brand.
Also, for gifting to self or to near and dear ones on special occasions, we are extremely conscious of the
kinds of products and the brands we buy, as opposed to routinized regular purchases.

Further, social pressure (shopping alone versus shopping with friends), also impacts the level of
involvement. When alone we may eat at any place or shop at any outlet, but when we are with peers and
friends, we are more conscious of the brands we buy and the places we shop in. Social visibility also
impacts the level of involvement; the level of consumer involvement increases in case of social visibility
of both the product category as well as the purchase activity.
Finally, the time commitment to purchase (leisure versus time constraint), also affects our level of
involvement. Irrespective of the fact that the product is of a high involvement type or that the person
bears personality traits making him a high involving consumer, he may not be able to expend much time
on a purchase activity, due to time constraints and need to make quick decisions. This is referred to as
decision imminence.

Moderating factors: The factors that can restrain the impact of antecedents so as to impact the level of
involvement include a) the opportunity available to the person to collect and collate facts and
information; b) his cognitive ability to process information and draw conclusions; c) time available in
hand.

The antecedents, moderators and the properties of involvement finally converge to a response in terms
of information search, information processing, information transmission, the purchase decision and post
purchase behavior. Consumer involvement affects the ways in which consumers seek, process, and
transmit information, make purchase decisions and make post purchase evaluation.
a) Information search: Highly involved consumers or consumers involved with a product category
would actively search for information about the product category and the various alternatives, in contrast
to consumers who are low on involvement. While the former, would be active seekers of information,
the latter would be passive recipients.
b) Information processing: The information processing activity would vary across high involvement
consumers viz a viz low involvement customers. Highly involved consumers would process product
information with greater depth; they would make conclusions about brand preferences based on
arguments and counterarguments; they would tend to get emotional charged either favorably because of
likeability of the brand or unfavorably because of dislikeability of the brand.
c) Information transmission: Highly involved consumers talk about the product/service category and
the various brands available with great ease and level of interest, as compared to consumers who are low
on involvement in the product category. Information transmission takes place via word-of-mouth,
positive when the brand seems favorable, and negative, when it seems unfavorable.
d) The purchase decision: The purchase decision, i.e. to buy or not to buy, or to buy brand X over Y, is
complex for a high involvement consumer than for one on low involvement.
e) Post purchase behavior: Consumers who are high on involvement make post-purchase evaluations
about product usage more critically than those on low involvement. It is noteworthy that high
involvement consumers are more difficult to please and satisfy; and the marketers need to put in a lot of
effort to satisfy them. This is because they not only have a bearing on their future purchase, but also on
purchase of others who are opinion seekers.

High and Low Involvement Products vis a viz Consumer Decision Making

High Involvement ↔ Low

Involvement
 EPS LPS RPS
1. Problem Recognition Actual state type to Actual state type to Actual state type
Desired State Desired State
2. Information search Extensive Limited Minimum
Internal and external Mostly internal Restricted to
sources sources internal sources
only.
a) Number of brands Many
considered Several One
b) Number of sellers Many
considered Several One/Few
3. Evaluation of Complex Moderate Simple (if at all)
alternatives
Many Moderate One/None
Number of
product/service attributes
evaluated
4. Purchase Gradual after a cognitive Not so gradual Immediate
process
5. Post purchase Cognitive dissonance is Cognitive Brand loyalty.
processes high. Brand loyalty if dissonance would be Repeat purchase.
satisfied rare
6. Time spent in purchase Large Moderate/Little Small/Minimal
7. Types of goods Specialty goods Mixed Convenience

Noteworthy here is the fact that depending on the level of involvement, high or low, the process varies
in terms of the sequence of how the three components of cognition, attitude and behavior are arranged
(Hierarchies of effects for low and high involvement decisions, Assael, 1992).
a) Cognition: this refers to the knowledge, information and resulting beliefs about brands.
b) Attitude: this is the positive/negative feeling about the brands desirability/undesirability that results
from evaluation of beliefs.
c) Behavior: this is the overt reaction in terms of purchasing or nor purchasing, or purchasing brand X
over Y as it seems more desirable. In terms of high involvement, there is cognition (knowledge
component: information gathering and processing), followed by attitude (feeling component: like or
dislike), followed by behavior (conative component: buy or not to buy); Cognition-Attitude-Behavior.
For example, while purchasing a refrigerator, a consumer would first collect information about the
various brands and evaluate them, he would then prioritize his preferences and finally go in for purchase
of brand X over Y. On the other hand, in terms of low involvement, there is cognition (knowledge
component: information gathering and processing), followed by behavior (conative component: buy or
not to buy), finally followed by attitude (feeling component: like or dislike); Cognition-Behavior-
Attitude. For example, while trying out a new flavor of potato wafers, the consumer may first collect
information on the brand, purchase it and consume it, and finally form an attitude of like or dislike.
2.6.3Types of Consumer Involvement
Depending on whether the involvement is short term or long term, consumer involvement could be of
two types, viz., situational and enduring.
1. Situational involvement
This is a state of arousal directed towards attaching relevance to a person/object/situation for a short
term. As an affective state, it creates a level of involvement when a person thinks about a particular
person/object/situation. It is specific to a situation and is thus temporary in nature. It could vary from
low to high, depending upon the situational factors.
2. Enduring involvement
When the level of involvement towards the product/service category extends over a period of time
across situations, it is referred to as enduring involvement. The person shows a high-level of interest in
the product category and spends time collecting and processing information and integrating it within his
memory. For example, a person desires to buy a laptop for his son to be gifted to him when he goes to
college, which would be three years later. The father plans well in advance, tries to collect information
through advertisements, brochures, trade journals, visits to dealers, and word of mouth from peers and
colleagues. Within this period he gets involved with the product category and after three years is in a
position to take a decision based on the facts that he has collected. This is referred to as enduring
involvement. Enduring involvement with a product category often gives birth to an opinion leader.

2.6.4 Consumer Behavior Models Based on Involvement

Consumer involvement affects the ways in which consumers seek, process, and transmit information,
make purchase decisions and make post-purchase evaluation. As the level of consumer involvement
increases, the consumer has greater motivation to gather, comprehend, elaborate and assimilate on
information. A marketer needs to design his marketing mix in a manner that he can activate the
involvement process to his favor, and marketing communication has a key role to play. A few models
have been proposed that are based on consumer involvement:

2.6.4.1The Low-Involvement Learning Model

Low involvement products are those products that are inexpensive or maybe moderately priced; they are
low in value and risk; and, are frequently purchased. Often, they are purchased as a matter of routine.
Example, toothpaste, soap, bread etc. For such products, the consumer gives little thought, and feelings
may not be formed for the product until after the purchase has been made. So the tri-component,
cognition, attitude and behavior are arranged in a manner such that cognition leads to behavior that
finally leads to attitude (Cognition-Behavior-Attitude). (Hierarchies of effects for low and high
involvement decisions, Assael, 1992). If the consumer is satisfied with the purchase, he feels that he has
received a positive reinforcement, and he learns to buy the same brand again. On the other hand, if he is
dissatisfied, he receives a negative reinforcement and the likelihood of repetition of that behavior (i.e. of
buying the same brand) is reduced.
Implications for a marketer:
1. Low involvement products need to be dealt with differently from high involvement products. The
marketer needs to follow a sequence of Cognition-Behavior-Attitude.
2. Low involvement products could make best use of the low involvement media, i.e. TV and radio for
bringing about a desirable behavior. For high involvement products, the print media works (high
involvement media) better to bring about a change from cognition to attitude to behavior.
3. The marketer could benefit if he tries and relates low involvement products with day to day needs and
present them in the form of slice-of-life commercials. These products would be essentially day to day
routinized purchases and could also be impulse items.
4. The marketer could also benefit if he manages to move people from low to high involvement through
effective brand management. He should be able to build a brand, and relate it to the segment by tapping
it to the need and benefit, lifestyle and social class etc. By building such a connection, he could create
brand loyalty.

2.6.4.2 The Learn-Feel-Do Hierarchy Model: With implications for marketing communication, the
learn-feel-do-hierarchy model, was proposed by Vaughn and his colleagues in the 1980’s at Foote, Cone
and Belding. Thus, it also came to be known as the FCB Matrix. Consumer decision making varies
across the nature of product/service offerings. According to the model, some purchases are backed by a
lot of cognition and thinking, while others are based on feelings and emotions. The combination of these
reference points produces a strategy matrix. The marketer has to choose appropriate strategies for
different kinds of product/service offerings. He needs to analyze the nature of his product, and design his
promotion strategy accordingly; the advertising medium should relate to the product category.

The learn-feel-do model is a simple matrix that links consumer decision making and consumer choices
to three components which are information (learn), attitude (feel), and behavior (do). The matrix
classifies consumer decision-making along two dimensions, high/low involvement and thinking/feeling.
Involvement as a dimension is represented on a continuum as high and low; over time one moves from
high to low involvement. Thinking and feeling represent the other axis again as two ends of a
continuum; with time, there is a movement from thinking toward feeling. As illustrated in the matrix,
based on cross combinations, there are four cells, viz., High Involvement/High Thinking, High
Involvement/High Feeling, Low Involvement/Low Thinking and Low Involvement/Low Feeling. Put
together each of these quadrants holds relevance to designing of marketing communication and can be
explained as follows:

Thinking Feeling
High Involvement
INFORMATIVE (THINKER) AFFECTIVE (FEELER)
Car-Laptops-Real estate- New Sports cars and motorcycles
Products Fashion apparel and jewellery,
Model: Learn-Feel-Do Perfumes
 Media: Print media; brochures Model: Feel-Learn-Do
Media: Audio visual media; image
based
HABIT FORMATION (DOER) SELF-SATISFACTION (REACTOR)
Staples, Bread, Stationery, Soap Cigarette, Liquor, Movies
Model: Do-Learn-Feel Model: Do-Feel- Learn
Media: Audio visual media; image Media: POP stimuli
based; POP stimuli

Low Involvement
The Learn-feel-do Matrix Hierarchy Matrix. Source: Adapted from “Vaughn, R., The Consumer
Mind: How to Tailor Ad Strategies” The Advertising Age, June, 1980. IN Lindquist, J.D. and
Sirgy, J.M., Shopper, Buyer and Consumer Behavior, Theory and Marketing Applications,
Second Edition, 2003, Biztantra

a) High Involvement/High Thinking: This quadrant of the matrix consists of high involvement and
thinking, typically signifying higher level of rationality. Products that fall into this quadrant are high
involvement products, where decision making involves a lot of thinking. Because of the nature of
product/service offerings that fall in this category, consumers have a high need for information.
Examples of products that would fall into this quadrant include cars, laptops, real estate etc as well as
innovative products. The strategy model is learn → feel → do.

b) High Involvement/High Feeling: This quadrant is representative of situations which are high
involvement and high feeling. While there is a level of involvement, information and thinking is less
important than the feeling factor. This is because such purchases are related to the persons self-esteem.
The affect component is stronger than the information factor. The person is drawn by the feeling,
emotional and psychological motives; and, they become a "feeler" about the product. Examples include
sports cars and motorcycles, fashion apparel and jewellery, perfumes etc. The strategy model is feel →
learn → do.

c) Low Involvement/Low Thinking: The third cell requires minimal effort on the part of the consumer,
both in terms of involvement and thinking. It actually results from habit forming within the consumer
(or the doer), as a result of habitual buying and purchase. He becomes a reactor in the sense that
whenever he has a need, he reacts and immediately purchases whatever brand he has been purchasing.
Over a period of time, almost all products would fall into this quadrant. Examples of products that
would involve the low involvement/thinking dimensions include staples, bread, stationery, soap etc. The
strategy model is feel → learn → do.
d) Low Involvement/Low Feeling: The products that fall in this quadrant signify low involvement and
low feeling; yet, they promote self satisfaction. Consumers buy such products to satisfy personal tastes,
many a times influenced by peer influence and social pressures. Examples include cigarettes, liquor,
movies etc. The strategy model is do→ feel → learn.

Implications for a marketer:

1. For high involvement/high thinking products, the marketer should provide such information about the
product/service and the brand offering that helps build a favorable attitude for his brand, so that it could
lead to a purchase. The focus of the advertisement should be on factual relevance.
2. For products that fall in the high involvement/high feeling quadrant, a marketer should devise a
promotional strategy that arouses an affective state that is positive and favorable. A good psychological
emotional and mood state would create an urge within the consumer to learn more about the offering,
and finally buy the product/service. The advertisement should focus on both facts and entertainment.
3. For low involvement and low thinking products, the marketer needs to create and maintain brand
loyalty; promotional strategies should focus on creation of brand recall. The advertisement should focus
on both facts and entertainment.
4. This proves to be challenging for marketers as consumers are driven by social pressures and brand
loyalty is short lived. The promotional strategy should include social appeals with an entertainment
orientation.

2.6.4.3 The Level of Message Processing Model

The level of involvement has an impact on the information gathering and processing. Based on this
premise, the level of message processing model states that a consumer’s attention to advertising is
influenced by varying levels of involvement, and runs across preattention, focal attention,
comprehension, and elaboration. Each of these levels is indicative of different level of message
processing, and is explained as follows:
a) Preattention: This level of involvement requires only a limited processing and, thus the desire is just
to gain some amount of familiarity;
b) Focal attention: A degree greater than the first stage, here the consumer concentrates on the message
source and context, and becomes receptive to basic information like product/brand name and usage.
c) Comprehension: At this level, the consumer focuses on the message content and tries to understand
it in terms of features, attributes, benefits, price, availability etc.
d) Elaboration: During this highest stage of involvement, the consumer integrates the message into his
memory, forms beliefs and either adds to or modifies the information that already exists in his memory.

Implications for a marketer:

1. The marketer should design his promotion message according to the level of involvement that exists
for the majority of the segment for that product/service category.
2. For high involvement products, the marketer needs to move the consumers from a state of preattention
to elaboration. This becomes all the more necessary for consumers who are typically low on
involvement because of their basic personal traits.

2.6.4.4 The Product versus Brand Involvement Model

This model assesses consumer involvement at two levels, product and brand. A consumer may be
involved with a product/service category but may not be necessarily involved with the brand. The
converse may also be true, where he may be involved with the brand and not with the product/service
category. According to the model, consumers can be classified into four types according to their
involvement with the product/service category and with the brand. These categories are as follows:
Brand loyalists, Information seekers, Routine brand buyers and, Brand switchers. The model could hold
relevance when involvement is used as a segmentation criterion.

Product Involvement

High Involvement Low Involvement

High Involvement Brand Loyalists Routine Brand Buyers

Involvement
Brand

Low Involvement Information |Seekers Brand Switchers

The Learn-Feel-Do Hierarchy Matrix Source: Adapted from Cushion, P. and Douglas-Tate, M., “The Effect of
People/Product Relationships on Advertising Processing”, IN Alwitt, L and Mitchell, A.P., eds, Psychological Processes and
Advertising Effects Hillsdale, NJ, 1985 IN Lindquist, J.D. and Sirgy, J.M., Shopper, Buyer and Consumer Behavior, Theory
and Marketing Applications, Second Edition, 2003, Biztantra.

a) Brand loyalists
Brand loyalists are consumers that are highly involved with the product category as well as the brand.
As both product and brand are of high involvement, the marketer should provide information about the
product category as well as the brand. As the consumers are involved with the brand as well, they
exhibit brand loyalty.
b) Information seekers
This is a consumer category that is highly involved with the product category but shows low
involvement with the brand. The consumers here do not think much about the brand, show less
preference towards the brand and would not have established a preferred brand. Brand loyalty is absent
in most cases, and maybe very low in a few cases. Such consumer put in efforts to search out collect
information about the product category and the various brands. After they have processed such
information and compared the various options, they make a decision on which brand is best.
c) Routine brand buyers
Routine brand buyers are not highly involved with the product category but shows involvement with a
particular brand within that category. They tend to show a level of loyalty towards the brand, although
they are not particularly interested in the product category. If and when they need to use a product, they
patronize a particular preferred brand only.
d) Brand switchers
Consumers who fall in this category are involved neither with the product category nor with the brand.
They buy anything they can get hold of and not particular about the product or the brand. As the term
suggest, they keep on switching their brands. They do not have an emotional bond with any brand.
Generally, such consumers are price sensitive and respond to price.

Implications for a marketer

1. For brand loyalists, the marketer should place emphasis on winning customers and creating brand
loyalty. The marketer should provide information about the brand, and portray how their brand is better
than the competitor. Apart from providing information, the marketer should also try an emotional
connection with the consumer. Promotional messages should be informational as well as emotional.
They should provide facts, as well as reinforce brand loyalty.
2. Promotional messages for information seekers must lay emphasis on information rather than
emotions. The marketer should make sure that he provides such consumers with relevant facts about the
product category as well as the brand. He should tilt brand information in his favor by stressing how his
brand is better than the other competitive brands. The product features, attributes, benefits as well as
information on brand differences need to be emphasized upon.
3. In order to encourage the continuation of loyalty with routine brand buyers, the marketer should use
emotional appeals.
4. For brand switchers, the marketer needs to use economic appeals that emphasize on price of the
brand, comparison with other brands, discounts, savings, and value for money etc.

Consumer Involvement and Implications For Marketers

Consumer involvement has implications for a marketer. Consumer involvement affects how consumers
gather, comprehend and transmit information, make purchase decisions and make post-purchase
evaluation. Thus a marketer needs to understand the process and design his marketing mix in a manner
that can activate the involvement process to his favor. The study of consumer involvement can be useful
for a marketer in the following ways:
1. The study of consumer involvement helps a marketer assess how the majority of your target market
relates to the purchase of the particular product/service category, in terms of high/low involvement. If
the majority of the target segment views it as a high involvement, the decision making becomes rational,
although there may be an emotional and egoistic element too. For example, while buying an automobile,
a rational mind would look to mileage, engine etc.; an emotional mind would think of color, aesthetics,
style; and an egoistic mind would relate it to pride and prestige. On the other hand, if the majority of the
segment treats it as of low involvement, the decision making becomes emotional.
2. The marketer could gain insights into high involvement and low involvement purchase situations, and
accordingly bring about changes in his marketing strategy. For high-involvement purchases, the
consumer searches for information extensively; thus a marketer the marketer needs to provide
information about the product category as well as the brand. Marketing communication should focus on
product features, attributes, benefits etc. Information on brand differences also needs to be emphasized
upon. Longer format media need to be used like (i) print in newspapers, magazines, journals and
brochures; (ii) videos. As far as low-involvement purchases are concerned, these are generally routine in
nature; the marketer needs to use emotional appeals. Attempts should be made to create and maintain
brand loyalty. Point-of-purchase stimuli, store display and attractive merchandise can also help boost
sales. Advertising should focus on audio visual media through emotional appeals.
3. If a marketer is confronted with both high involvement and low involvement segments, he can deal
with both the segments separately by bringing about changes in the marketing mix. However he needs to
take such a decision after understanding the size and potential of each of such segments; if only a small
segment operates on a low involvement or on high involvement, may not be feasible to cater to both.

2.7 Consumer Attitude

-Attitude may be defined as a feeling of favorableness or unfavorableness that an individual has towards
an object (be it a person, thing or situation).
-It is a learned predisposition to exhibit and act based on evaluation resulting in a feeling of like or
dislike towards and object.
-In terms of consumer behavior, consumer attitudes may be defined as an inner feeling of favorableness
or unfavorableness towards a product or service offering and the 4Ps.
According to Schiffman, “Attitudes are an expression of inner feelings that reflect whether a person is
favorably or unfavorably predisposed to some "object" (e.g., a brand, a service, or a retail
establishment),” and “Attitude formation, in turn, is the process by which individuals form feelings or
opinions toward other people, products, ideas, activities, and other objects in their environment”.
-An attitude is reflective of a consistent favorable or unfavorable feeling that a consumer or a prospect
forms as a result of an evaluation about an object; the object being, a product/service offering, brand,
price, store and dealer, salesperson, advertisement, promotion etc.
As Schiffman puts it, it is “a learned predisposition to behave in a consistently favorable or unfavorable
way based on feelings and opinions that result from an evaluation of knowledge about the object”. It is
noteworthy that attitudes cannot be directly observed, the reason being that they are impacted by
psychographics like motivation, perception, and learning. Attitudes can only be inferred from what
people say or what they do and how they behave.

2.7.1 Nature of Attitudes

Attitudes are composed of three components, viz, a knowledge or cognitive component, a feeling and
affect component and a behavioral and conative component. In terms of consumer learning, the attitude
would express a consumer’s feeling of like or dislike about a product or service offering and the
marketing mix. The knowledge component is reflected in the learned knowledge that a consumer obtains
from his interaction with others as well as his own experiences. The feeling component is reflected in his
evaluation, and the resultant feeling of favorableness and unfavorableness. The behavioral component is
reflected in the predisposition to act (purchase) based on the evaluation. Based on this explanation, the
nature of attitudes can be elaborated as follows:
1. Attitudes are directed towards an object (product/service offering, price, store, dealer, promotion,
advertisement etc.) about which a consumer has feelings and beliefs.
2. Attitudes have a direction; they could be positive or negative. A consumer could possess feelings of
like/dislike, favorableness and unfavorableness towards a product or service as well as the mix. They
vary in degrees and intensity, and can fall anywhere along a continuum from very favorable to very
unfavorable.
3. Attitudes are consistent in nature, particularly with respect to the third component, i.e. behavior.
Consumers are consistent with respect to their behavior. However, they are not entirely permanent and
may change if the cognitive or the component is changed. This implies that if the consumer witnesses
new experience or is exposed to new information about product/service offering and the mix (cognition),
and) feelings are changed from dislike to like (affect), attitudes towards the offering and the mix can
undergo change. In other words, while attitudes are stable and do not change frequently, they can be
changed if something is done to change them.
4. Attitudes are a learned predisposition, they are formed as a result of i) self experiences with the
product/service offering and the mix; ii) interaction with other people, be it family, friends, peers and
colleagues; iii) information obtained from the marketer through promotion particularly advertisements
as well as dealers and salespeople. Attitude formation as a process is impacted by needs and motivation,
perception as well as learning.
5. Attitudes cannot be observed directly. While attitudes are comprised of three components, behavior is
just one of them. It is only this component that can be seen; the cognitive and affect components cannot
be seen. Thus it is said that attitudes cannot be seen; they can only be inferred from the manner in which
an individual behaves. Thus, we can infer that a person who buys Colgate Total toothpaste and
disregards Pepsodent has a positive attitude towards Colgate.
6. While attitudes can be inferred from our behavior, it is not synonymous to behavior. It has two other
components, and reflects a learned predisposition to act favorable or unfavorably towards a product and
service offering and the mix.
7. Attitudes are situation specific; they occur within a situation. Sometimes depending upon the
situation, a consumer may exhibit a behavior that may be inconsistent with his/her attitude. He may
prefer to buy Pepsodent over Colgate because the former is on a sales promotion and gets him a free
toothbrush. Apart from helping a consumer make evaluations about a product/service offering ending up
in purchase decisions (to buy/not to buy), attitudes play other functions as well. They perform four basic
functions, viz., utilitarian function, ego defensive function, value expressive function, and knowledge
function. The four functions are not mutually exclusive. In fact, they are related to each other and
consumer attitudes are illustrative of a combination of functions.

2.7.2 Functions of Attitudes

a) Utilitarian function
Consumers form positive attitudes towards product/service offerings because they provide a utility, in
other words, they provide a rewarding experience through the benefits that they provide. Consumers
learn to relate a reward with the use of the offering. On the other hand if they do not offer a rewarding
experience, consumers form a negative attitude towards such an offering.
b) Ego defensive function
Consumers form attitudes as they help defend their ego, self-image and self-concept. If a consumer is
high on ethnocentrism, and patronizes Indian products, he would have a positive attitude towards Indian
brands. He would speak for and promote such brands even if he knows that a foreign made product
provides better value. Attitudes are formed to protect the ego.
c) Value expressive function
Positive attitudes are formed when a product or service expresses a persons’s values and lifestyle,
personality and self image, and self concept. This is because attitudes provide people with a basis for
expressing their values. In cases where there is a mismatch between the product image and a consumer’s
selfimage, a negative attitude is developed. Attitudes are a reflection of value.
d) Knowledge function
Attitudes are formed when consumers want to reaffirm their knowledge base, to finally help them
simplify purchase decision making. If a consumer thinks positive about a brand, it helps reaffirm his
opinion, and makes decision making simpler and faster. Attitudes help in decision making

Functions of Attitudes: Meaning and Examples

Function of Attitudes Meaning of function Objects of Attitudes Examples

Utilitarian function -provide utility. Such products that provide - Complan helps children
utility. grow faster and better.
- Pepsodent fights tooth
decay 24 hours a day
Ego defensive function -support a person’s ego, self- Such products that relate to - Rexona Deo prevents
image and self-concept. and support a person’s ego, body odour whole day
selfimage and self-concept. long.
- Close- Up toothpaste
prevents bad breath and
does not cause
embarrassment when
one is with friends.
Value expressive function - reflect values and lifestyle, Such products that reflect - Mercedes Benz, a car
personality and self image, and values and lifestyle, for the CEO or for the
self concept. personality and self image, successful businessman.
and self concept. - Dove soap depicts
softness and
sophistication. -
Raymonds, a complete
man, status, style and
 sophistication.
Knowledge function -structure knowledge and Such products that structure - Odomos mosquito
reaffirm it. knowledge and reaffirm it; repellant is safe for skin.
they provide conformance, - Crocin is a safe drug.
certainty and reliability.

2.7.3 Structural Models of Attitudes

Researchers have proposed a number of models that identify the underlying dimensions of an attitude
and explain or predict behavior. Among the various models, the more researched upon and commonly
used ones are:
i) the tricomponent attitude model, ii) the multiattribute attitude model, iii) the trying-to-consume model,
and iv) the attitude-toward-the-ad model.

i) The tricomponent attitude model: As the name suggest, the tricomponent attitude model states that
attitudes are composed of three components, viz., a knowledge (cognitive) component, feeling and
emotional (affect) component and the action (conative) component.
- the knowledge or the cognitive component comprises the cognitive processes that lead to the formation
of attitudes. In terms of marketing, the knowledge or cognitive component of the tricomponent model
consists of consumers' knowledge about the products/service offering and the marketing mix. Consumer
attitudes are formed on the basis of experiences as well as information received from personal (WOM,
family, friends, peers etc.) as well as impersonal (marketer’s sources) sources of information that are
retained in one’s memory.
- the feeling or the affect component comprises the emotional component of attitudes. In fact, this is
understood to be the attitude itself, as it depicts emotional states that are positive, neutral or negative. In
marketing terms, it refers to a consumer’s feelings about a product/service offering and the marketing
mix. These emotions could relate to an attribute or the overall object. It is evaluative in nature and would
vary on a continuum as like or dislike, favorableness or unfavorableness. It manifests itself through
feelings and resultant expressions like happiness, sadness, anger, surprise etc., and is indicative of
consumer reaction towards the offering and the mix, which subsequently affects the purchase decision
making as well as the purchase process.
- the behavioral or the conative component of attitudes depicts the outcome of an attitude. As attitudes
are formed out of psychographic components, they cannot be seen. The first two components,
knowledge and feeling are not expressive or illustrative of attitudes. It is only this third component
through which attitudes can be inferred. The conative component, is indicative of an individual’s
tendency to behave [act or not to act (to buy or not to buy)] in a particular manner with respect to the
attitude object (product/service offering, brand etc.). As per the model, the knowledge and the feeling
component cannot be seen, they can only be inferred. It is only the behavioral component which can be
observed.
The multiattribute attitude models: The multiattribute attitude models state that a consumer’s attitude
towards an attitude object (product/service offering, brand, elements of the marketing mix) is a function
of a consumer’s perception and belief of the key attributes as well as his assessment of the key
attributes. The multiattribute models have been variedly studied and numerous variations have been
proposed by various researchers. Of these, the most famous of the models are those that have been
proposed by Fishbein. Martin Fishbein and his associates have proposed a series of models like a) the
attitude-toward-object model, b) the attitude-toward-behavior model, and c) the theory-of-reasoned-
action model.

a) The Attitude-towards-Object Model: The attitude-toward-object model states that a consumer’s

attitudes towards a product/service offering or a brand, is a function of the presence or absence of certain
attributes, and the corresponding evaluation. Attitude is function of evaluation of product -specific
beliefs and evaluations. In other words, while evaluating an offering, the consumer’s attitude would be
based on:
- the presence of attributes, and the aggregation of a consumer’s belief about each of these, and
- the overall evaluation of the relevance of each of these attributes in providing the necessary gains and
benefits. For example, let us take the example of Complan as a health drink. A lady wants her children
to grow faster, taller and healthier. She would have a positive attitude towards Complan, if it contains
vitamins and minerals, and she gives value (importance) to such vitamins and minerals. Thus,
consumers would tend to have favorable attitudes toward such offerings and/or brands that they have
sufficient amount of attributes that are deemed important and evaluated as positive. On the other hand,
they would have unfavorable attitudes towards offerings and/or brands which do not have the desired
attributes or have many negative attributes.

b) The Attitude-towards-Behavior Model: The attitude-toward-behavior model focuses on the

individual’s acts of behavior towards the attitude object rather than mere affect or feeling towards the
object. The premise is that a consumer may have positive feelings towards an attitude object, but he may
have a negative attitude regarding his intention for buying such a product/service offering. Thus, a
positive attitude towards the offering may not necessarily end up as an act of purchase. For example, let
us take the example of a Philips Home Theatre. A consumer is aware that a Philips Home Theatre would
have a bigger screen, and better audio visual effects. He would also be aware of the high price, and may
decide against the act of purchase. Either he would not have the money or he may not think it wise to
spend so much of money for a TV. Thus, while he has positive feelings and a favorable attitude towards
the product offering, he does not have a positive feeling to indulge in the act of purchase.

c) The Theory-of-Reasoned-Action Model: The theory of reasoned action model attempts to study the
impact of i) instances of behavior, and ii) subjective norms, on the tri-components that make up
attitudes. The model incorporates these two factors that act as moderators and finally have an effect on
human attitudes. The figure depicts what is referred to as “reasoned action”. The model can be explained
working backwards from behavior (i.e. act of purchase of a product/service offering). The behavior of a
consumer is based on his intention to act, i.e. overall favorability toward the purchase. There are certain
factors that lead to an intention to act. These are the consumer's attitude toward behavior and the
subjective norm. The consumers’ attitude towards behavior includes the beliefs and attitudes about
specific acts of behavior. Factors underlying attitude are i) beliefs that the behavior leads to certain
outcomes; and ii) evaluation of the outcome.

Belief that the behavior leads

to certain outcomes

Attitude toward
the behavior

Evaluation of outcomes

Intention Behavior

Beliefs that specific referents

think I that I should or should
perform the behavior

Subjective norm

Motivation to comply with

specific referents

Figure 2: Theory-of-Reasoned-Action Model Source: Adapted from Ajzen,I. and Fishbein, M., Understanding
Attitudes and Predicting Social Behavior (Upper Saddle River, NJ: Prentice Hall, 1980) In Schifman, L.G. and
Kanuk, L.L., Consumer Behavior, 9rd Edition, Pearson, Prentice Hall.
The subjective norm on the other hand, refers to the norms that exist in the specific social context.
Factors underlying the subjective norm are:
i) the beliefs that specific referents think as to whether the act of behavior should be performed or not;
and
ii) motivation to comply with the specific referents.

For example, Arjun, a young graduate wants to go to US to do his MBA. For this he needs to give his
GMAT.

1. Behavior: Study hard for GMAT.

2. Intention: Arjun decides that he would study hard for GMAT examination. - Intention is impacted by:
a) Consumers attitude towards behavior: Arjun has a positive attitude towards studying hard.
b) Subjective norms: Arjun’s parents approve of his decision to go abroad for further studies.
3. Consumers attitude towards behavior is impacted by:
a) Beliefs that the behavior leads to certain outcomes: Arjun believes that if he studies hard, he will be
able to get a good score at GMAT.
b) Evaluation of the outcome: A good GMAT score would get him an admission to a good business
school.
4. Subjective norms are impacted by:
i) Beliefs that specific referents think as to whether the act of behavior should be performed or not:
Arjun’s parents also think that he should study hard.
ii) Motivation to comply with the specific referents: Arjun wants to fulfil his parents wishes. The
behavior of a consumer is based on his intention to act, which is moderated by the attitude towards
behavior and the subjective norms. These are further impacted by underlying factors. Thus, the theory of
reasoned action is illustrative of attitude components that are interrelated to each other. Intention
precedes actual behavior; beliefs and attitudes as well as subjective norms precede intention -The theory
emphasizes that attitudes are linked to behavior indirectly, via intention.
iii) The Theory of Trying to Consume: The theory of trying to consume focuses on a purchase situation
where the action or act of behavior (in terms of actual purchase), is not certain and may even be
sometime in future. As per this theory, the action or act of behavior is directed towards a goal
(something that the consumer is planning to and/or attempting do in future). In such processes of trying
the resultant outcome (in terms of purchase, possession and use) cannot be predicted for certainty. The
theory reflects the consumer’s attempts at consumption, which get impeded by personal and
environmental impediments, thus preventing the action (act of purchase) from occurring.
Moving backwards, act of trying to behave is impacted by a) intention to try, b) frequency of past trying,
and c) recency of past trying. Intention to try is impacted by a) attitude towards trying, b) frequency of
past trying, and c) social norm towards trying. Attitude towards trying is impacted by a) attitude towards
success, failure and process, and b) expectation towards success and failure. Each of the attitudes (i.e.,
attitude towards success, failure and process), are determined by the summation of the “product” of the
consequence likelihood and the consequence evaluations. For example, taking Arjun’s example forward:

1. Act of trying: Arjun is trying hard to get a good GMAT score. - Trying is impacted by: a) Intention
to try: Arjun has a positive intention towards trying for the GMAT exam b) Frequency of past trying: He
has already been able to clear competitive exams in the past. c) Recency of past trying: Arjun appeared
for a competitive exam one year ago.
2. Intention to try is impacted by: a) Attitude towards trying: Arjun says that he will apply for the
GMAT b) Frequency of past trying: He has already been able to clear competitive exams in the past. c)
Social norm towards trying: Arjun’s parents encourage him to write the GMAT.
3. Attitude towards trying is impacted by:
a) Attitude towards success: Arjun wants to get a good GMAT score so that he can get into a good
business school.
b) Expectation towards success: Arjun believes that he would be able to get a good GMAT score.
c) Attitude towards failure: Arjun does not want to fail the GMAT exam.
d) Expectation towards failure: Arjun believes that he would not fail the GMAT exam. Joint
e) Attitude towards process: Arjun is ready to study hard for the GMAT. Each of the three attitudes,
towards success, failure and process are determined by the summation of the “product” of the:
a) Consequence likelihood: the chance that Arjun is able to get admission in a good business school in
the US; represented by b
b) Consequence evaluations: how happy and proud Arjun will be when he gets an admission in a good
business school in the US; represented by e
bi = Consequence likelihood contingent on success
ei = Consequence evaluations contingent on success
bj = Consequence likelihood contingent on failure
ej = Consequence evaluations contingent on failure
bk = Consequence likelihood contingent on process

Summation of bi Attitude toward

and ej success
Frequency of Recency past
past trying trying

Expectation of
success

Summation of bi Attitude toward Intention to try Trying

and ej failure Attitude toward
trying

Expectation of
failure

Social norm
Summation of bi Attitude toward
toward trying
and ej process

The Theory-of-Trying In Schifman, L.G. and Kanuk, L.L., Consumer Behavior, 6th Edition, 2000, Prentice Hall of
India.

The Attitude-towards-the-Ad Model: This model lays emphasis on the impact of an advertisement,
either in print or in audio-visual on the formation of consumer attitudes towards product and service
offerings and or brands. Once exposed to an advertisement, a consumer forms the cognition (knowledge)
and the affect (feeling) components of the attitude; it leads to judgments about the Ad (cognition) and
feelings from the Ad (affect). The cognitive component leads to belief about the brand as well as attitude
towards the ad. The affect component also leads to belief about the brand as well as attitude towards the
ad. Thus, both the cognition and the affect component affect the consumer's attitude toward the ad and
beliefs about the brand. A mere exposure to the ad can also lead to belief about the brand. Finally, the
belief about the brand as well as attitude towards the ad leads to the development of an attitude towards
the brand. The theory behind the model states that consumers form judgments and feelings as a result of
exposure to an advertisement. Not only does a consumer form attitudes towards the advertisement, he or
she also forms an opinion towards the brand. Research has shown that the model holds good more for
new product and service offerings than or existing ones. The ad helps create an attitude towards the
brand and helps elicit a trial. Thus marketers need to be careful while formulating ads especially for
innovative products and services and for new brands.

Exposure to an
Ad

Judgments about Feelings from the

the Ad Ad (Affect)
(Cognition)

Beliefs about the Attitude toward

brand the Ad

Attitude toward
the brand

Attitude-towards-the-Ad Model Source: Inspired by and based on Edell, J.A. and Burke, M.C., “The
power of Feelings in Understading Advertising Effects,” Journal of Consumer Research, 14 (December,
1987):431, University of Chicago Press. In Schifman, L.G. and Kanuk, L.L., Consumer Behavior, 9rd
Edition, Pearson, Prentice Hall.

2.7.4 MEASUREMENT OF ATTITUDES

Attitudes cannot be seen; they can only be inferred from the manner in which an individual behaves.
Nevertheless it is crucial that attitudes are measured. This is because an individual with a positive
attitude towards a product/service offering is more likely to make a purchase. Attitudes can be measured
by observation, qualitative studies and quantitative techniques (or rating scales).
a) Observation: As has been mentioned above, attitudes can be inferred from the manner in which an
individual behaves. By making observations of behavior, a marketer can infer a consumer’s attitudes.
For example, if a person patronizes Colgate toothpaste and buys it, it can be inferred that he likes that
brand. Observation as a process of measuring attitudes, has both pros and cons. Advantages are that on
the basis of past experiences, market researchers can make quick inferences. Disadvantages are that the
process is expensive in terms of time and money; further findings may not always be reliable and valid.
Thus, the method is used to complement other tools and techniques in research, and is generally not used
as the sole method of research.
b) Qualitative studies: Attitudes can also be measured through qualitative tools and techniques that
help identify consumer opinions and beliefs as well as their feelings, by getting them involved in open
discussions. Such techniques could take the forms of focus groups, depth interviews, and psychological
tests. - Focus groups: In focus group interviews, a group of consumers between 6-12 in number are
called together, and discussion is initiated about a product or service offering. The discussion could
range across a wide spectrum related to the offering, the brand, the dealer or any of the 4Ps. The people
are made to openly discuss their ideas, opinions and feelings, and the discussion is controlled by a
moderator. As they begin to discuss an issue, they move towards related issues about the product and
service offering, and this provides valuable insights to a researcher.

However, the problem with focus group interviews is that the sample may not always be truly
representative of the segment to which the product is targeted. So as a tool, focus group interviews are
not used in isolation, but are used with other tools and techniques, so as to lead to be truly representative
and provide valid findings.
- Depth interviews: A depth interview is similar to a personal interview, where a consumer is
interviewed about the product/service offering, the brand, and any or all of the 4Ps. The consumer is
asked questions for a considerable period of time, and his opinions and beliefs are recorded, so are his
feelings and bodily gestures. The researcher asks a question and the interviewee is encouraged to talk in
length about his reactions and feelings about the product and service offering and the 4Ps. The
encouragement to talk in length provides valuable insights and reveals things that the interviewer may
not have thought off or imagined. Questions like “What”, “Why” , “How”, and “If” are used to enable a
detailed insightful discussion. The problem with depth interviews is that it is time consuming and
expensive. It also requires trained psychologists as interviewers. And like, focus group interviews, it
may not always be representative of the market segment.
- Psychological tests: A host of psychological tests are available that are used to infer and measure
consumer attitudes. Projective techniques are used commonly; for example the consumer may be asked
to interpret a picture (Thematic Apperception Test), or fill in a dialogue in a cartoon, or write ten-twelve
words describing a figure or an image. They can also be asked to complete an incomplete paragraph (as
story writing), or write the first word that comes to mind when a product/service or brand is mentioned
or shown. Open ended questions like sentence completion help reveal consumer insights and underlying
feelings and opinions about product offerings, brands and the 4Ps. The problem with psychological tests
is that interpretation may turn out to be subjective and it requires trained psychologists as interpreters.
c) Quantitative techniques, Rating scales or Attitude scales: Commonly used methods for measuring
attitudes is via attitude scales. Consumer survey questionnaires based on rating scales are used to
measure attitudes quantitatively. The most commonly used attitude scale is the Likert scale, which
measures consumer reactions on a five point or on a seven point scale based on degrees of agreement
and disagreement, or liking and disliking. Another scale that is commonly used is the one that uses a
bipolar scale comprising opposite adjectives at each extreme; this is known as a Semantic differential
scale. While collecting responses may be time consuming, rating scales provide a means for quantitative
analysis, and thereby lead to reliable and valid findings. However, care should be taken to chose a
sample representative of the sample.

2.7.5 ATTITUDE FORMATION AND CHANGE

A marketer needs to develop positive attitudes for his product and service offering, as also his brand.
Attitudes comprises three components, knowledge, feeling and behavior; while we can just observe
behavior, the knowledge and feeling component remain hidden. Thus, we can infer that an attitude,
(whether positive or negative) is formed based on the observation of one’s behavior. That is why
learning is defined as a change in behavior that occurs as a result of experience. Once attitudes are
formed (as a result of learning), it is very difficult to change them.
a) Attitude Formation: Attitudes are formed as a result of the learning process. The formation of
attitudes can be explained through behavioral theories (classical conditioning, operant conditioning),
cognitive learning and social learning.
i) Classical Conditioning: The principles of stimulus generalization, stimulus discrimination and
repetition help formation of attitudes. People prefer buying products that are associated with familiar
brand names. Line extensions and brand extensions lead to favorable attitude formation. The favorable
attitude is the result of repeated satisfaction with successful brands owned by a company; consumers
associate the image and favorable attitude associated with the parent brand to the newly introduced
brands from the same source. Also, by using successful celebrities as brand endorsers, companies try to
form a positive association between the celebrity, and the "neutral" new product. The successful brand
name is the unconditioned stimulus that, through repetition and positive reinforcement, results in an
favorable attitude (the unconditioned response).
ii) Instrumental Conditioning: Generally, while making purchases, a consumer passes through
cognition, attitude and behavior, in that order. However, in certain kinds of purchases, like low-
involvement purchases, impulse goods, trials or situational factors, the sequence lies as cognition,
behavior and attitude. Thus, attitudes develop following the act of purchase and consumption of the
product. In such cases, consumers tend to form attitudes based on the reinforcement that they receive. If
the acts of purchase and consumption are followed by a rewarding experience in terms of consumer
satisfaction, they develop a positive attitude towards the product or service offering and/or the brand.
iii) Cognitive Learning Theory: Attitudes are also formed on the basis of information that a person
collects about a product or service offering and/or a brand, from his environment. Such information
could be specific to the product or service, or may be incidental, that gets stored in his memory. The
consumer forms positive or negative attitudes based on information gathering, storage and retention, and
on the basis of knowledge and beliefs. Marketers should be careful in providing knowledge about their
product and service offerings, either in print, audio-visual media or even through their salespersons and
dealers. However, they should focus on a few relevant features rather than providing excessive
information; too much of cluttering leads to perceptual blocking.
Impact of sources in attitude formation: While attitudes are formed as a result of learning, they are
influenced by various sources. Such sources include self-experiences, as well as direct and indirect
influences. Direct influences are influences from family and friends, salespersons (direct marketers) as
well as dealers; indirect influences include influences via mass media, either print or audiovisual. Self
experiences have a major role to play in the formation of attitudes.

Consumers form favorable and unfavorable attitudes towards product and service offerings based on self
experiences. They try out product and service offerings and also evaluate them. Thus, marketers attempt
at eliciting trial by offering sales discounts or even free samples. Direct influences through interactions
with members of family as also with friends and relatives, and primary reference groups impact the
formation of attitudes. Salespersons as well as dealers also have a role to play in the formation of
attitudes. These marketing representatives provide information to the consumers and attempt to
favorably influence the potential customer’s towards their product and service offerings and/or brands.
Indirect influences via mass media, either print or audio-visual provide information to the consumers
and this helps in formation of attitudes. Consumers are kept informed by the marketer on various
product and service offerings, features, attributes, prices as well as their availability. Marketers publish
brochures and pamphlets. They distribute pieces of information via mass media, through newspapers,
magazines and trade journals, as well as through advertisements on TV. Such information about the
product and service offering and the 4Ps influences consumers’ attitudes, whether favorable or
unfavorable. Companies also have their websites where consumers often blog about their experiences.
They publish consumer experiences and expert opinions, which affect attitude formation. It would be
noteworthy to mention here that both the split brain theory, route to persuasion and elaboration
likelihood model could have implications; In cases of high involvement, the consumer would look for
factual appeals, while in case of low involvement, he would be receptive to social and/or emotional
appeals.
b) Attitude Change: Once formed, attitudes are enduring and consistent. However, this does not imply
that they cannot be changed. Attitudes can be changed in the same manner as they are formed, i.e.
through learning. They can be changed by bringing about a change or alteration in any one or all of the
components that make up the attitude, i.e. knowledge, feeling and behavior. Bringing about, changes in
any or all of the tricomponents, requires immense effort on the part of the marketer, who need to provide
information via media as well as use reference group appeals and opinion leaders so as to influence
modification of attitudes.
- Attitude change via cognition: Attitudes can be changed by providing information about the brand,
and changing consumer beliefs about the attributes about a brand. It can also be brought about by
changing the importance that consumers’ attach to the attributes of a product.
- Attitude change via affect: Attitudes can also be changed by generating positive feelings and
emotions towards a brand. Ambience of the store, reward schemes, well designed ads with celebrities
etc., also create positive mood states that impact attitudes.
- Attitude change via behavior: Consumer attitude can also be changed by eliciting trail on the part of
the consumer and encouraging him to use the product. However, as newer information about product
attributes, benefits, features etc is provided so as to bring about change in consumer beliefs and
attitudes, consumers tend to experience some level of attitudinal inconsistency. Such feelings of
inconsistency lead to uneasiness and tension in the minds of consumers and as a natural consequence,
they attempt to seek consistency in thoughts, feelings, and actions. In fact, they desire a match between
the tricomponents, and more so, want their attitudes to be in consistency with their knowledge.
Researchers have proposed two theories that address the issue of consistency among behavioral
processes, viz., the cognitive dissonance theory and the attribution theory.

As per the cognitive dissonance theory, a consumer would face a feeling of discomfort and dissonance,
when the tricomponents, fail to match with one another, and the person’s knowledge, feelings and
behavior conflict with one another. In such a situation, the person would face cognitive dissonance and
in order to reduce this dissonance, he would attempt to change the inconsistent cognitive elements.
According to the attribution theory, it is a tendency on the part of human beings to attribute the reasons
of their behavior on to their self (internal attribution) or to others (external attribution). Consumers also
make attributions that match their existing beliefs, evaluations, and actions. They could also attribute the
reasons for their belief on to others. Both the theories, i.e. the cognitive dissonance theory and the
attribution theory result in subsequent attitude changes.

Attitudes can be changed/ modified through various means. The marketer could take measures that can
influence consumer attitudes, by bringing about a change in the consumers' opinions, beliefs or
evaluation of the product. Some of the strategies that a marketer could take to bring about a change in
attitudes or to influence attitudes (with relevant examples) are described below:
1. Bringing about a change in the product itself, and/ or the package: The marketer could bring
about a change in the product itself, thereby adding on to benefits that are provided by the product or
service offering. The marketer could also add on to newer attributes and features. In this way, he could
either claim to provide whatever he was providing earlier in a better manner, or provide something that
the competitor does not provide. By doing so the marketer adds on to the value proposition. As the
perceived value of the product/brand, increases, the consumer’s attitude becomes favorable. While
changing the product itself, may be an expensive strategy, involving changes in technology and
manufacturing process, as well as changes in the marketing strategy, alternatively the marketer could
change only the packaging. Packaging could also provide benefits like ease of use, ease of carrying and
handling as well as storage.
2. Identifying evaluative criteria for the consumer: Consumers summarize their opinions, beliefs and
overall attitudes based on the various product attributes and benefits. They may often ignore an attribute
because they are unaware of an attribute or a benefit or a criterion. The marketer could help the
consumer identify evaluative criteria. The marketer would focus on such criteria where he feels he is on
a strong position. He could either have a monopoly or a competitive edge.
3. Modifying or changing the criteria for evaluation: The marketer could also identify criteria that
modify or change the existing criteria for evaluation. This means that he focuses his efforts on to
educating the consumers to use such attributes for evaluation, which he had not used earlier. As
mentioned above, consumers’ summarize their opinions and overall attitudes based on the various
product attributes and benefits. They give varying degrees of importance to the various attributes and
criteria, and by modifying or changing the criteria for evaluation, the overall attitude towards the
product and service offering would change. The marketer generally finds himself in a position to do this
when he has modified his product and added product attributes and features. He promotes such attributes
on which he has the “uniqueness”, or those on which he performs best. He would avoid talking about
such attributes which he does not possess or on which he does not perform well. Joint
4. Associating the product/ brand with an existing favorable attitude: The brand could also be
related to socio-economic, cultural and environmental cause. An association between the product/brand
and the favorable cause would result in favorable attitudes towards the brand. With cause-related
marketing, marketer’s try to develop favorable attitudes toward their brands by associating them to
existing favorable attitudes toward a cause. In this way, not only do they contribute to the social cause
but also influence consumer attitudes’ towards their products, and or brands. Thus, the marketer tries to
alter consumer attitudes toward products and service offerings, and/or brands by associating them with
socio-economic, cultural political and environmental causes as also social groups and events. A
favorable attitude towards the cause, leads to a favorable attitude towards the brand.
5. Changing the basic motivational function: As has been discussed above, brands perform four basic
functions, viz., the utilitarian function, the ego-defensive function, the value-expressive function, and the
knowledge function. Consumers form attitudes regarding a product /brand based on any one or few of
such functions. A marketer could change consumer attitudes by laying emphasis on a function that has
not been associated earlier with the product and/or brand. In other words, it implies that the marketer
makes new needs prominent, and shows to the consumers that it can serve a function that has not been
considered earlier.
6. Changing consumer opinion and beliefs about competitor brands: The marketer could also build
favorable attitude towards his brand by negating the value of competitive brands. He could change the
prevailing consumer opinions and beliefs about the competitive brands. For example: GlaxoSmithKline
Consumer Healthcare India Ltd. claims that their energy drink, Horlicks promotes growth and provides
energy faster and better than Complan. Heinz India Pvt. Ltd claims the same for their brand, Complan.
Thus, both try changing consumer opinions about their brands by comparing them with competitor
brands.

2.7.6 ATTITUDE CHANGE AND UNDERLYING THEORIES

While discussing on ways and means to change consumer attitudes, mention should also be made the
underlying theories, viz, the Elaboration likelihood Model, the Theory of Cognitive Dissonance and, the
Attribution Theory. These theories have already been discussed earlier. Let us discuss them in the
context of attitude change. The Elaboration likelihood Model, speaks of attitude formation and change in
context of a consumer’s exposure towards an advertisement, and the level of involvement. The other two
theories, i.e., the Cognitive Dissonance Theory and the Attribution Theory address and explain
differently as to why acts of behavior (purchase) might precede attitude formation.
a) The Elaboration Likelihood Model (ELM): As per the ELM Model, a change in consumer attitudes
may be brought about through two routes to persuasion, viz., the central route and the peripheral route.
In cases of high involvement, attitude change towards a product and/or brand would occur when the
consumer would search for information related to the offering. The consumer would also have a high
need of cognition, and would put in effort to gather and comprehend information about the object in
question. This would result in learning and also lead to attitude change that would occur via the central
route to persuasion. Thus, in cases of higher involvement, the consumer lays focus on “central” product
related information; comprehension is deeper; extent of elaboration is higher and all this impacts attitude
towards the brand. On the other hand in cases of low involvement, attitude change towards a product
and/or brand would occur via the peripheral route to persuasion. There would be a lower involvement
with the product and/or brand message, with a focus on the “peripheral” or the non-product related
information (beautiful ads, attractive models, discounts, free samples, etc); comprehension is shallow;
extent of elaboration is low all this impacts attitude towards the advertisement rather than the brand.

b) Theory of Cognitive Dissonance: Behavior can precede or follow attitude formation and change.
While attitudes are generally formed, before an act of behavior (purchase) or before an action is taken,
they can also be formed after an act of purchase. Behavior (act of purchase) may precede attitude
formation. Consumers experience a sense of uncertainty, uneasiness and discomfort when it comes to
making purchase decisions which pertain generally to high involving purchases. Such a feeling arises
particularly when the consumer has contradictory and conflicting thoughts about a product and/or brand
offering, and he has to make a compromise. This state of uneasiness and discomfort is referred to as
cognitive dissonance. It can occur while and after a purchase is made. When it occurs after the act of
purchase, it is known as post-purchase cognitive dissonance. Such feelings of dissonance are reduced
when a consumer changes his attitude to conform with the act of purchase or behavior. So we can see
that in cases of post-purchase cognitive dissonance, attitude change happens as a result of an act of
behavior, i.e. purchase.

The uneasiness or the dissonance that the consumer experiences compel him to change his attitude
towards the attitude object (product and/or brand), so that the attitude (positive/favorable) and the
behavior (act of purchase) are in congruence with each other. What happens in the process is that the
dissonance that the consumer experiences, induces him to reduce the indifferent or the unfavorable
attitude, and make way for a favorable attitude towards the purchase. Thus attitude formation and/or
change occur after a purchase has been made. The marketer also has a role to play in reduction of
cognitive dissonance.
c) Attribution Theory: Another theory that explains how behavior (act of purchase) may precede
attitude formation is the attribution theory. The theory explains how people tend to ascribe causality to
events on the basis of their own behavior or the behavior of others. In other words, they attribute blame
or credit arising out of an act of behavior (unsuccessful or successful) to others or to their own self.
Attitude formation and change happens because of consumer’s judgment of their own behavior (self-
perception) and their experiences. The issues that need discussion are i) self-perception theory; and ii)
internal and external attributions.
i) Self-perception theory: According to the self-perception theory, a person attributes causality to
events on the basis of his behavior; thus, a consumer would attribute behavior (an act of purchase) to
his/her own beliefs, inferences and judgments. Attitudes would develop out of the inferences and
judgments that consumers draw about their own behavior (act of purchase).
ii) Internal and external attribution: It is a tendency on the part of human beings to take credit for a
successful or positive outcome (internal attribution), and blame others for an unsuccessful or negative
outcome (external attribution). In other words, they attribute credit to themselves and blame to others.
This could be applied to consumers also. They take credit for a right decision and act of behavior (to
purchase/not to purchase) on to themselves. This phenomenon of accepting credit personally is called
internal attribution.
They also have a tendency to blame others for a wrong decision and act of behavior; this phenomenon of
attributing failure to others is called external attribution. In assessing the reasons for whether a product
meets or does not meet customer expectations, they could attribute the product's performance (success or
failure) to the product/brand itself or to their own selves or to others or to a mix of these. This has
implications for a marketer who should make sure that he provides to the consumers the right kind of
products in terms of attributes, benefits and usage, so that consumers would attribute the success to the
marketer. However, this is a rare as consumers like to attribute success with the product offering to
themselves by stating that they made the right decision by purchasing the brand. Consumers also gather
additional information and supporting evidence to confirm (or disconfirm) their prior opinions,
inferences and judgements about the product and service offering. Thus attitudes about the product
and/or brand offering as well as the behavior (act of purchase/not purchase) occur after the product has
been bought. We see that attitude formation and change occurs after the act of behavior; i.e. behavior
precedes attitude formation and change.

2.7.7 Consumer Attitudes and Implications for Marketers

Consumer attitude has implications for a marketer. An individual with a positive attitude towards a
product/service offering is more likely to make a purchase. Marketer should understand the dynamics of
attitude formation and change.
a) Consumer attitudes are reflective of consistent favorable or unfavorable feelings that a consumer or a
prospect forms as a result of an evaluation about an object; the object being, a product/service offering,
brand, price, store and dealer, salesperson, advertisement, promotion etc. They are directed towards an
object (product/service offering, price, store, dealer, promotion, advertisement etc.) about which a
consumer has feelings and beliefs.
b) They cannot be observed; they can only be inferred from what people say or what they do and how
they behave.
c) Consumer attitudes are formed on the basis of experiences as well as information received from
personal (WOM, family, friends, peers etc.) as well as impersonal (marketer’s sources) sources of
information that are retained in one’s memory.
d) Attitude formation as a process is impacted by needs and motivation, perception as well as learning.
They are formed as a result of learning that occurs because of
i) self experiences with the product/service offering and the mix;
ii) interaction with other people, be it family, friends, peers and colleagues;
iii) information obtained from the marketer through promotion particularly advertisements as well as
dealers and salespeople.
e) Consumers form positive attitudes towards product/service offerings because
i) they provide a utility;
ii) help defend their ego, self-image and self-concept;
iii) expresses a persons’s values and lifestyle, personality and self image; and
iv) reaffirm their knowledge base, to finally help them simplify purchase decision making.
f) Attitudes are situation specific. A consumer may exhibit a behavior that may be inconsistent with their
attitude. For example, a consumer may have a neutral feeling or may be indifferent with a brand, but he
would go in for a purchase as he gets a good bargain (a concession or a discount etc).
g) Marketers should understand the formation of attitudes, as well as their change, so as to be able to
predict acts of behavior, and influence them.
h) While attitudes are stable and do not change frequently, they can be changed if something is done to
change them. Marketers should understand the dynamics of attitude formation and change, and make
attempts to transform neutral or unfavorable attitudes into favorable ones.
i) Consumer’s attitudes towards a product/service offering or a brand, is a function of the presence or
absence of certain attributes, and the corresponding evaluation. Consumers would tend to have favorable
attitudes toward such offerings and/or brands that they have sufficient amount of attributes that are
deemed important and evaluated as positive.
j) A consumer may have positive feelings towards an attitude object, but he may have a negative attitude
regarding his intention for buying such a product/service offering. Thus, a positive attitude towards the
offering may not necessarily end up as an act of purchase.
k) The behavior of a consumer is based on his intention to act, which is moderated by the attitude
towards behavior and other subjective norms. Intention precedes actual behavior; beliefs and attitudes as
well as subjective norms precede intention.
l) Consumer’s attempts at purchase and consumption, get impeded by personal and environmental
impediments, thus preventing the action (act of purchase) from occurring.
m) Consumers form judgments and feelings as a result of exposure to an advertisement. Not only does a
consumer form attitudes towards the advertisement, he or she also forms an opinion towards the brand.
Thus marketers need to be careful while formulating ads especially for innovative products and services
and for new brands.
n) Attitudes can be measured by observation, qualitative studies (focus group, depth interviews,
psychological tests) and quantitative techniques (or rating scales).
o) Attitudes are formed as a result of the learning process.
-Classical conditioning: Consumers also have a positive attitude towards successful brands. The
successful brand name is the unconditioned stimulus that, through repetition and positive reinforcement,
results in an favorable attitude (the unconditioned response). Also, by using successful celebrities as
brand endorsers, companies try to form a positive association between the celebrity, and the "neutral"
new product.
-Instrumental Conditioning: Consumers tend to form attitudes based on the reinforcement that they
receive. If the acts of purchase and consumption are followed by a rewarding experience in terms of
consumer satisfaction, they develop a positive attitude towards the product or service offering and/or the
brand. Else they are indifferent or may even develop a negative attitude towards the brand.
- Cognitive Learning Theory: Attitudes are also formed on the basis of information that a person collects
about a product or service offering and/or a brand, from his environment. Marketers should be careful in
providing knowledge about their product and service offerings, either in print, audiovisual media or even
through their salespersons and dealers. However, they should focus on a few relevant features rather
than providing excessive information; too much of cluttering leads to perceptual blocking.
p) Once formed, attitudes are enduring and consistent. However, they can be changed through learning.
Bringing about change requires immense effort on the part of the marketer, who needs to provide
information via media as well as use reference group appeals and opinion leaders so as to influence
modification of attitudes.
q) Attitudes can be changed/ modified. Some strategies to bring about a change in attitudes or to
influence attitudes are
i) bringing about a change in the product itself, and/ or the package;
ii) identifying evaluative criteria for the consumer;
iii) modifying or changing the criteria for evaluation;
iv) associating the product/ brand with an existing favorable attitude; changing the basic motivational
function and making new needs prominent; changing consumer opinion and beliefs about competitor
brands.
r) Behavior can precede or follow attitude formation and change. While attitudes are generally formed,
before an act of behavior (purchase) or before an action is taken, they can also be formed after an act of
purchase.

2.8 CONSUMER COMMUNICATION

2.8.1 DEFINITION AND MEANING OF CONSUMER COMMUNICATION
Communication is defined as the flow of information from a sender to a receiver with the latter having a
proper understanding of it. Marketing communication or consumer communication may be defined as
the flow of information about a product/service offering from a marketer to the consumer. This could
assume two forms,
i) it could be personal via interpersonal communication between the marketer and the salesperson or the
dealer; or
ii) it could be impersonal via a channel or a media (print, audio-visual etc.).

Marketers make use of his promotion or communication mix, which comprises advertising, personal
selling, sales promotion, publicity and direct marketing to communicate with their consumers. They
inform the consumers, both current and potential about their product/service offering, as well as any
changes brought about in the marketing mix. They try to keep the consumers well informed about the
product/service offering, and the changes that are brought about. The consumers also on the other hand,
keep themselves informed both through the marketer’s efforts as well as through the informal
interpersonal communication that they have with their family, friends, peers etc through word-of-mouth.
Both the sources, formal (from the marketer), as well as the informal (through word-of-mouth) have an
important role to play in communication.

2.8.2 COMPONENTS OF THE COMMUNICATION PROCESS

There are three major components of the communication process, viz., sender, receiver and the media.
Apart from these, there are two sub-components, viz., feedback and noise. The message is encoded by
the sender, transmitted via a media, decoded by the receiver, who then provides a feedback. At every
stage, the communication process could get impacted by a disturbance, which is referred to as “noise”;
this noise isn’t essentially a loud sound, but these are disturbances that could occur within the sender or
the media or the receiver. These components can be elaborated as follows:

i) Sender: The purpose of communication, expressed as a message emanates from the sender. He
encodes the message by using words, pictures and gestures, and sends it via a media or a channel. Thus,
the message consists of the subject matter that the sender intends to transmit to the receiver, and may
take oral, written or gestural form.
ii) Media/channel: The media is the channel through which the information is transmitted.
Communication could be interpersonal as well as impersonal; it is interpersonal, when two people
interact with each other face to face by talking and listening, and the air and the sound waves constitute
the media; it is impersonal when the communication takes place via print (newspapers, magazines,
brochures etc) or broadcast audio-visual means (TV, radio, websites etc).
iii) Receiver: Once the message is transmitted through a media, it reaches the receiver, who decodes the
message, to extract meaning out of it. There could be two kinds of errors that may take place here, i)
amplification; ii) leveling.
Amplification occurs, when a person adds up to the message, and exaggerates it. Levelling is the
opposite of amplification, and occurs when the receiver deletes or erases part or whole of the message.
After having decoded and comprehended a message, the receiver reacts with a feedback.
iv) Feedback: While the message moves forward from the sender to the receiver, feedback moves
backwards, from the receiver to the sender, and thereby constitutes a loop. Feedback reflects as to
whether the message has been appropriately understood by the receiver. It is also a means by which the
sender gets to know of the receivers’ reaction to his message.

v) Noise: Noise can affect every stage in the communication process. It is anything that disturbs and
interferes with the communication process, and acts as a barrier to effective communication. It could be
internal as well as external. It is internal, when it concerns the sender or the receiver, who are not able to
pay much attention or are preoccupied with something else while encoding or decoding, leading to
erroneous communication. Noise could also be external, when there is a disturbance in the environment
(loud sound), or when there is a problem with the media (sound waves, air, poor reception of signal etc.)

2.8.3 The Marketing Communication Process

Marketing communication is defined as transmission of information from the marketer to the consumer
through a media. The basic objective behind marketing communication is to inform a consumer (or a
prospect) and to make him aware about the product/service offering, and the mix; build a favorable
attitude towards the offering; and to encourage a purchase. The communication process, and more
specifically on marketing or consumer communication involves:
i) Sender: The communication process is initiated by the sender, who is also referred to as the message
initiator or the source. In the context of marketing management and consumer behavior, the sender may
be formal or informal. The formal source would include the company (marketer), viz, both public and
private organizations, those working not-for profit, as well as those working for-profit. It could include
commercial organizations, government organizations as well as nongovernmental organizations. On the
other hand, the informal source would include family, friends, peers, colleagues and people in our
reference group, who provide us with information and advice about a product/service, (word-of-mouth
communication). The sender needs to decide what to say, whom to say, when and where. In any case,
the objective of the sender is to provide information about the product/service offering as well as any
changes made in terms of price, distribution and promotion.
- Message and Encoding: Once the sender has decided what he wants to communicate, he encodes the
information into a message to be transmitted to the receiver. The sender needs to think of his message
strategy, i.e., what to say, how to say it logically and symbolically, and who is to say. Thus, the message
is illustrative not only of the information content, but also includes a physical format through words
(verbal communication), symbols, pictures and images (visual communication) and gestures (non-verbal
communication). While the information content would provide details on product/service offering, the
price, the attributes, features, benefit etc, the physical form would be designed in a manner, so as to
elicit emotions and moods, attitudes and imagery.
- Credibility of the Source: The credibility of the source (marketer/spokesperson) affects the way that
the target audience decodes the message. When the spokesperson holds some kind of expert power (he is
an expert in his field), or has some charisma (he possesses charismatic power), or holds legitimacy of
position (holds legitimate power), the influence that he is able to generate is much higher. He is able to
convey his message and convince the consumer much easily. The receiver (consumer) regards a source
to be credible when he feels that the source is perceived to have expertise and trustworthiness, and
provides unbiased information. In other words, when the source is credible, honest, respected and held
in esteem, the probability of the message being believed and assimilated by the target audience is much
higher; the opposite hold good too, i.e. in case when the credibility is low, the assimilation of the
message and the belief in the message is low. Other factors that affect the credibility of the message is
the medium through which it is expressed, as well as the spokesperson. The consumer's own experience
with the product or the retailer also affects the credibility of the message. The consumer basis his
judgment on factors like
 i) the reputation of the company and its past performance;
ii) the quality of its product/service offerings based on self experience, hearsay, word-of-mouth;
iii) the other lines of business that they carry; and
iv) their corporate social responsibility.

The credibility of the source begins to fade away after a period of time; research has indicated that
generally credibility tends to diminish after a period of six weeks. This has been termed as the “sleeper
effect’. Consumers begin to lose interest and forget the message, its source and the spokesperson. The
spokesperson loses his credibility. This can happen because of monotony, boredom and general loss of
interest. Here, the marketer has to intervene, and reintroduce the message so as to elicit a recall.

ii) Media: The medium is the channel that exists between the sender (marketer) and the receiver
(consumer). It is through this communication channel that the message is transmitted from the marketer
to the consumer. This channel could be i) interpersonal; ii) impersonal. The interpersonal channel
includes communication that takes place between a salesperson/dealer and a customer, either face-to-
face or on telephone or on email/online. It could also be communication that takes place between friends
(customer and prospect) as word-of-mouth. Impersonal media includes communication that takes place
via print (newspapers, magazines, brochures etc) or via broadcast audio-visual means (TV, radio,
websites etc). The message could be verbal, non-verbal, or a mix of two.
-Credibility and the Medium: The reputation of the channel that carries the message also affects the
credibility of the message. In case of interpersonal channel, where communication takes place between a
salesperson/dealer and a customer, the honesty, integrity and sincerity of the salesperson adds to
credibility. In case of impersonal communication, messages are channeled through print (newspapers,
brochures) as well audio-visual broadcast (TV, radio). However, messages channeled through neutral
rating agencies, as well as articles in special interest magazines and trade magazines are regarded as
more credible than advertisements in print and audio-visual; they are regarded as unbiased and
objective. The reputation of the spokesperson in the advertisement also adds to the credibility; this
suggests the importance of testimonials.

iii) Receiver: The message is received by the receiver or the target audience, who decodes the message.
In our context, the consumers comprise the receiver. While the message is actually meant for the current
and prospective consumers (the target audience), there are other elements who also get exposed to the
message, although the message is not meant for them. Such people comprise the “intermediary”, and the
“unintended” audiences. Examples of intermediary audiences include channel members (wholesalers,
retailers etc.) and professionals (architects, doctors, professors, etc.). While the former are sent trade
advertising and persuaded to carry stocks of merchandise, the latter are provided with professional
advertising and asked to recommend their products/services to their customers. Examples of unintended
audiences are shareholders, bankers, suppliers, employees, and the public.
- Message and Decoding: The message is received by the receiver, who decodes the message and
responds accordingly. His reaction constitutes a feedback.
- Credibility and the Receiver: The credibility of the message gets impacted by how well it gets
comprehended by the receiver (target audience: the consumer). The message from the marketer is
decoded by the consumer. The comprehension and understanding of the message is based on i) the
message itself; ii) his personal characteristics and background; ii) his past experiences; iii) his
motivation, emotions and mood, involvement, attitude, personality and perception; iv) his ability to
process; and v) impact of social forces. It is observed that receivers expose themselves selectively to
media as well as to the messages. This is referred to as selective exposure and selective attention.
Consumers flip over pages in a newspaper or in a magazine, thereby missing out on the
advertisements/editorials/testimonials. Similarly, they wander across channels on the TV and the radio,
thus missing out on various advertisements. They may change channels frequently to see what is coming
elsewhere (known as wandering), or may mute the TV when ads are played (known as zapping of
commercials), or may change a channel when an advertisement begin being played to see what
programme is being played elsewhere (surfing). Marketers try to overcome this problem, by playing
their respective advertisement simultaneously across many channels at the same time, so that the
consumer is exposed to the advertisement. This is referred to as roadblock-ins. The decoding of the
message can also be affected by what is referred to as “noise”. As been mentioned above, “noise”, may
be internal (to the sender and the receiver: they may be overloaded or pre-occupied, and so the encoding
and the decoding may be improper) or external (a loud noise or a disturbance in the channel). The
problem of “noise” can be overcome by repeating the message several times. However, repetition can
lead boredom and monotony, leading to a loss of interest for both the marketer and the consumer. The
marketer then has to think of cosmetic and substantive variation in his advertisements. He could also use
other techniques like subverting and forcing to overcome problems of communication overload
monotony and boredom. Subverting refers to suddenly presenting something that is pleasant/charming
or unpleasant/ugly, so as to catch the consumer by surprise. Jolting refers to introducing a “teaser”
element in the advertisement, so as to hold the interest of the consumer (eg, 10 days left…., 9 days
left…. and so on, releasing the final advertisement after 10 days, thus trying to hold the interest of the
target).

iv) Feedback: Feedback is an important component in the communication process. It is the receiver’s
response to the sender, i.e. the consumer’s response to the marketer’s message. It is important that the
marketer obtains feedback as quickly as possible. It is the acid test to determine whether the
communication has been effective or not, as it is through this feedback, that the marketer gets to know
whether the message has been correctly interpreted by the consumer. It helps the marketer to
add/delete/modify his message so that the message is better understood. The customer can address issues
of concern and seek clarifications from the marketer. Feedback is crucial in both interpersonal and
impersonal communication. It is easier to read customer reaction and obtain feedback in interpersonal
communication, than it is in impersonal communication. This is because in face-to-face interpersonal
communication, the marketer gets input from verbal and non-verbal cues, which is not the case in
impersonal communication. However, the marketer cannot afford to avoid customer feedback in
impersonal communication. Market researchers try to infer customer reactions to impersonal
communication by their action/inaction (whether they purchase or do not purchase).

2.8.4 Designing a Communication Strategy

The basic objective behind marketing communication is to inform a consumer (or a prospect) and to
make him aware about the product/service offering, and the mix; build a favorable attitude towards the
offering; and to encourage a purchase. A marketer needs to formulate his communication strategy and
use his promotion mix judiciously. He must formulate a strategy and take decisions on i) the objectives
of the communication; ii) the target audience; iii) the media; iv) the message; and v) the feedback.

i) The objectives of the communication: Decisions related to the objectives of the communication and
the target audience, comprise what is known as the “communication strategy”. The marketer may have
various objective(s) behind his communication programme. He may want to: -make the consumer (or
the prospect) aware of the product/service offering, and the marketing mix (“cognitive” objective); -
create a favorable attitude towards his product/service offering (“affective/emotional” objective); -elicit
an action (purchase) from the target (“conative/behavioral”: objective). Apart from these, he could also
aim at creating goodwill and a favorable social image (publicity). All or any one of these could comprise
as the objectives of communication.

ii) The target audience: The marketer also needs to decide what or who the target audience is. This
would depend upon the product/service offering that the marketer intends to offer. This decision is
important for a marketer, because the message strategy and the media strategy would be designed
according to the target market. The marketer would design his message and decide on the channel
according to the segment(s) that he is catering to. If he is catering to many segments, he would have to
create separate messages for each group, and play it across media or channels that are accessed by the
various segments.

iii) The media: Decisions related to the media, comprise what is known as the “media strategy”. The
media strategy relates to first, the issue as to which medium is to be used for message delivery; and
second, timing and the location of the message so that it has maximum impact (referred to as aperture).
The choice of the media or the channel used to deliver the message depends on i) the product/service
offering to be advertised; ii) the target segment (s); and iii) the communication objective(s). Based on
these three issues, the marketer needs to decide on the channel(s) for communication. This would imply
placing and or playing advertisements across print broadcast and audio-visual broadcast media, so that it
is accessed, read, heard and viewed by maximum people. A cost effective strategy would be one where
the message is placed in the specific media read, viewed, or heard by selected target markets. Messages
should be placed across media or channels of communication, so as to be able to reach a wide target
audience and have maximum impact. This leads to a discussion on “reach” and “frequency”. - Reach:
“Reach” implies the number of people or households who are exposed to the message, because they read
the newspaper or hear/watch the program on radio/TV. - Frequency: “Frequency” means how often they
are exposed to the message in a specific period of time. In order to have a wide reach and frequency,
advertisement agencies develop what is referred to as a “consumer profile” and an “audience profile.”

- Consumer Profile: This refers to a marketer’s description of the consumers who are likely to purchase
a product/service offering; they would have the income, access, and desire to purchase the offering.
Assumptions are made about social class, income levels, lifestyle, AIO’s etc, thus giving an idea as to
what is the media that these consumers read, hear or watch.
- Audience Profile: The media develops its audience profile. The audience profile refers to a media
agencies’ description about the kind of consumers who read, hear or watch their print and audio-visual
channels. This would depend on a fit between the media and its target segment, thus illustrating a match
between the media, its programmes, its price, and its availability on the one hand, and consumer income,
access, desire and interest on the other hand. In order to gain maximum benefit out of reach and
frequency, marketers must ensure that there is a fit between the media audience profile and the
consumer profile. In other words, it means that the best media choice is one which matches the
advertiser's consumer profile to a medium's audience profile. The alternative that a marketer has is to go
for print or audio-visual or both. Each of these media has its advantages and disadvantages. Marketers
chose more than one medium to place or run their messages. While one channel/media gains primacy,
the other(s) supplement the former, and thus the various channels/media work simultaneously. So what
is adopted is referred to as a multimedia campaign strategy. After the marketer has decided on the media
category, he can then decide on specific media or channel. The marketer also places/runs his message
repeatedly to encourage recall; he also places/runs it across channels so as to achieve both reach and
frequency, and to counter grazing/surfing/wandering.
- Involvement Theory and Choice of Media: The marketer would have to select different media for
high and low involvement purchases. As per the central-and-peripheral-routes to-persuasion theory, for
high involvement purchase situations, the consumer would indulge in a great deal of cognitive effort to
evaluate the product/service offering; hence, the marketer would have to follow the central route to
persuasion, and present a factual message in the print media. On the other hand for low involvement
purchase situations, the peripheral route to persuasion would come into play, and the marketer would
place his emotional and social message with scenery, music and celebrities in the audio-visual media.
However, critics to the theory believe that the processing takes place simultaneously and rational and/or
emotional messages can be played across print and audio-visual media.

iv) The message: The marketer also needs to take a decision on his message strategy. The message is
the information that the sender, i.e. the marketer wants to convey to the receiver, i.e. the target
segment(s). The message strategy requires that the marketer decides on four basic issues; 1) what to say
(the message content); 2&3) how to say it logically (message structure) and symbolically (message
format); and, 4) who would say it (message source).
1. What to say (the message content): this depends upon the objective of communication; the marketer
needs to assess the objective behind the communication. It could range from merely making the
consumer aware of the product/service offering and the mix, or to create an interest in him for more
information, or to create a desire in him to try out the offering, or to elicit an action (purchase), or to
reduce post-purchase cognitive dissonance. The marketer must be very clear as to what his objective of
communication is. This will help him decide what he wants to say.
2. How to say it logically (message structure) and symbolically (message format): the message
strategy relates to the content and the form of communication. It must be designed keeping in mind the
target segment(s), as the ultimate objective lies in creating an message and delivering it in a manner that
elicits an action on the part of the consumer; the action being purchase of the product/service offering.
The communication content refers to the information that the marketer wants to convey to the target
segment(s). The information content that the marketer would want to convey would be based on the
objective of communication, i.e, cognitive, affective or behavioral. The various objectives would be met
through different content delivered through different channels or media. In other words, a marketer
could have many communications objectives, each of which would require a different message to be
delivered through a different channels(s). The marketer also needs to take a decision on how to format
the message, in other words, on the method of presentation. This is referred to as the creative strategy,
i.e. that form that the message takes. The message format affects the way in which a message is
received, held with interest and assimilated by a receiver, and so it is important that the message is
designed well and presented properly. The marketer needs to convey his message through proper words
(semantics) and sentences (syntax). The message must be clear and precise, in a language that is
understandable by the target segment(s). Thus, a marketer needs to keep in mind the personal
characteristics of the segment(s) in terms of demographics (age, education, income, etc) as also the
psychographics (motivation, attitude, personality, AIOs etc.) and the social influences (culture, sub-
culture, family etc), so that the message can be interpreted appropriately. Few areas where the marketer
needs to give attention in message structure and format are as follows:
a) Message framing: The manner in which a message is framed affects its persuasiveness. Messages
can be framed as positively framed or negatively framed. Positively framed messages are those
messages that indicate the benefits or advantages that a person can gain by purchasing and using the
product/service offering. For example, Fair and Lovely from HUL is positioned as a fairness cream and
the message is a positively framed one, that claims how women can become fair by using the cream.
Negatively framed messages are those which indicate the benefits lost or the disadvantages that a person
suffers by not purchasing and using the product/service offering. For example, the Complan
advertisement shows that children who don not drink Complan remain about 2 inches shorter than those
who drink Complan. Another example that can be discussed is a public message that states “Quitting
smoking reduces chances of lung cancer”. This is positively framed message and would be much
persuasive than a message that is negatively framed and states “Don’t smoke. Smoking causes lung
cancer.” Research has shown that positively framed messages generate a greater impact, although both
positively and negatively framed messages can be persuasive in nature.
b) Order effects: There occurs an interaction effect between the message framing and the message
order, and thus order effects need to be discussed. Research has shown that the order in which a message
is transmitted affects the receptivity of the audience. The questions that arise are:
- Should the message be presented first or last or in the middle? Generally speaking, when exposed to a
consumer, the first and the last messages or advertisements are more likely to gather attention and
subsequent retention, than those that are presented in between or in the middle. This is referred to as the
primacy effect and the recency effect; i.e. when the material that is presented first gains attention and
recall, it is called the primacy effect, and when the material that is presented last gains attention and
recall, it is called the recency effect. Advertisements placed on the first and last page of the
newspaper/magazine as also played the first and the last on TV/radio are recalled much faster than those
in between. That is the reason why newspaper and magazine rates for placement of messages and
advertisements varies across front page and last page and pages in between. Same holds good for
advertisement rates on TV/radio (prime time). The charges are more because of greater visibility and
recall. However, it needs to be mentioned that the impact on order effects is higher in the audiovisual
media, than in the print.
- How should product/service attributes and benefits be listed in an advertisement? It has been seen that
the manner in which product/service benefits are listed also affect target attention, retention and recall.
This would depend upon the product/service in question as also the target segment(s). If the target
segment(s), is low on involvement and interest, the most important attribute/benefit should be listed the
first to gather attention. However, if the segment(s) is high on involvement and interest, the message can
be so designed that it starts with the least important attribute/benefit, gradually moving to the most
important (i.e. in an ascending order).
- How should favorable and unfavorable information be presented together? When both favorable and
unfavorable information is to be presented, favorable information should be presented first. It creates
space and greater tolerance for the unfavorable information.

c) One-sided versus two-sided messages: Another issue that a marketer needs to take a decision on, is
whether the message should be one-sided, and tell the target audience only about the pros, or it should
be two-sided, and tell the audience about both the pros and cons. In other words, the marketer needs to
assess whether he should be totally open about his product/service offering, or he should restrain
himself, and talk only about the advantages of using the product/service offering, thus, ignoring the
disadvantages. This would depend on the nature of the audience. Research has indicated that if the
segment(s) comprises people who are positive in nature, optimistic, friendly and loyal to the advertiser’s
product/service offerings and the message, then a one-sided (supportive) message that stresses only the
pros or the favorable information would be most effective. On the other hand, if the target audience is
pessimistic in nature, critical, unfriendly, and disloyal (switcher), to the advertiser’s product/service
offerings and the message, then a two-sided (refutational) message would be more effective. In fact it is
argued that such an audience would be more educated, and mature enough to understand the pros and
cons; they would find two-sided messages to be credible as the would be stating both the pros and cons.
The audience would respect the marketer and regard him as credible, because he is truthful about his
offering.
d) Comparative advertising: A marketer could position his offering in two ways, one, on the basis of
point of parity; and two, on the basis of differentiation. In both these cases, the marketer tries to compare
his product/service offering with the competitor. When a marketer tries to compare his product/service
offering with a competitor, it is called as comparative advertising. The marketer would exercise some of
the following options;
1) State how his product/service has the same attributes like other competitive offerings, but the
former’s offering is better than the latter’s;
2) State how his product/service has attribute(s), that are unique to himself and not possessed by other
competitors. Through comparative advertisement, a marketer tries to illustrate the superiority of his
product/service offering over competitive offerings. Such comparisons may be drawn on one or few
attributes or on an overall basis. However, sometimes the effort by the marketer can backfire, to the
competitors disadvantage. A comparative advertisement from a marketer may help recall the
product/service offering of a competitor. For example, the advertisement of Sprite and Mountain Dew;
because the bottle (package), is similar, it leads to confusion with the consumer, and lead to recall.

e) Advertisement appeals: In order to present a message symbolically, a marketer needs to use

“appeals”. Advertisement appeals could be of various kinds, viz. factual, emotional (humorous, agony
etc.). Broadly speaking, marketers use two kinds of appeals, viz., informational, factual or rational, and
emotional. Another appeal that is often adopted is the “slice-of-life”, where the objective is to use
themes that relate to problems and issues faced by the target on a a day-to-day basis, for example, ink
running out of a pen while the exam is on, or, the shoe getting broken while one is walking etc. The
choice for each of these and their resulting relevance is based on i) the product/service in question; ii)
the level of involvement; and iii) the target audience. In some cases, like for high involvement products,
a factual, information oriented message is more suitable; in other cases, an emotional message could be
more effective. The various appeals along with relevant examples, are explained through the table (See
Table 1).

3. Who would say it (message source): the formal source of communication would include the
company (marketer), viz, both public and private organizations, those working not-for profit, as well as
those working for-profit. It could include commercial organizations, government organizations as well
as non-governmental organizations. On the other hand, the informal source of communication would
include family, friends, peers, colleagues and people in our reference group, who provide us with
information and advice about a product/service, (word-of-mouth communication). Research has shown
that consumers rely more on informal sources of communication. The message could be communicated
through a celebrity (film star, sportsman, etc), a company spokesperson (the founder, CEO or the
salesperson), or an expert (dentist, nutritionist etc.). As has been mentioned in the previous section, the
message source needs to be credible, otherwise, the message loses its persuasiveness.

v) The target audience: Feedback is the receiver’s response to the sender, i.e. the consumer’s response
to the marketer’s message. It is the acid test to determine whether the communication has been effective
or not, as it is through this feedback, that the marketer gets to know whether the message has been
correctly interpreted by the consumer. It helps the marketer to add/delete/modify his message so that the
message is better understood. Marketers encourage feedback by including teaser elements in their ads, or
by providing incomplete messages requiring closure, etc.

Advertisement Appeals

Appeal Meaning and Relevance Example

1. Factual and logical Information oriented. Appeal is relevant for: Shopping goods: Electronics,
Appeal -High-involvement purchase situations Laptops. Specialty goods:
-Inner directed personality types Paintings, Fashion Apparel.
-Innovators, and early adopters.
-Print advertisements in newspapers and
magazines, brochures, catalogs Laptops. Eg. Dell
2. Social Appeal Socially oriented Appeal is relevant for: Social issues: Pulse polio,
-Social and public issues/areas of concern Child literacy, AIDS.
-Socially directed or other directed personality types Convenience goods like
-Early majority and late majority. Cereal, Cosmetics and
-Audio-visual advertisements. Toiletries, Beverages.
3. Emotional Appeals Feeling. Humor, Agony and Fear -Audio-visual Alpenliebe advertisement
advertisements. with Kajol.
- Humorous appeal Humor appeals are highly persuasive appeals. It is
believed that humor attracts attention, and
retention, and encourages recall. It is used carefully,
as some people believe that a humorous appeal
could lead to ridicule and subsequent
embarrassment for the brand. It works well with
low-involvement purchase situations.

- Agony appeal Agony appeals depict pain and agony; they could Crocin, Saridon, Burnol, Eno,
depict pain, suffering and discomfort due acidity, Pudin Hara
indigestion, headache, muscle pull, burns etc. They
show how a person is relieved of such suffering
through usage of a medicinal drug. They are highly
persuasive.
- Fear appeal Fear appeals illustrate a feeling of fear and
insecurity at non-usage of a product/service, i.e. it is
a negatively framed message.
The appeal should be mild; strong appeals tend to
be less effective than mild ones.
Strong fear appeal: An advertisement that states Cigarette smoking leads to
 that smoking leads to lung cancer would be lung cancer.
threatening to a smoker, who would block such
messages: selective attention, or would try to refute
such claims or messages.
Mild fear appeal: The consumers are more receptive Non-usage of Pepsodent
to a mild appeal, and there exists a positive leads to tooth decay.
relationship with persuasiveness.

Feedback is crucial in both interpersonal and impersonal communication. It is easier to read customer
reaction and obtain feedback in interpersonal communication, than it is in impersonal communication.
Market researchers try to infer customer reactions to impersonal communication by their action/inaction
(whether they purchase or do not purchase).

2.8.5 INTEGRATED MARKETING COMMUNICATION AND MODELS OF

COMMUNICATION STRATEGY
A marketer makes use of his promotion or communication mix, which comprises advertising, personal
selling, sales promotion, publicity and direct marketing to communicate with their consumers. He does
not use these tools in isolation; he makes judicious use of a combination of them depending upon a) the
product/service offering; b) the objective of communication; c) the target audience; d) the environment.
Integrated marketing communication is defined as a mix of both the message as well as the media
strategy, so that the messages are transmitted via different media to the target segment(s) in a regular
and consistent manner. Integrated communication is important so that a single message is communicated
to the audience by the various channels or media in order to avoid confusion. The various tools are not
used in isolation, but they are used in a judicious and coordinated manner. There are two theories that
need to be discussed here, viz., 1) The Hierarchy of Effects Model; and 2) The Brand Experience
Theory.
1) The Hierarchy of Effects Model: The Hierarchy of Effects Model was proposed by Robert Lavidge
and Gary Steiner. The model illustrates the steps that consumers go through while making a purchase,
especially in relation to the interactivity between such stages and the communication effort on the part of
the marketer. In other words, the model explains, how the various stages of the buying are impacted by
communication (particularly, advertisement), and how consumers use advertising in their purchase
processes. According to the Model, the buying process can be broken down into seven steps, viz.,
unawareness, awareness, knowledge, liking, preference, conviction, and purchase. The seven steps can
be classified under three processes, cognitive or thinking component, affect or feeling component, and
conative or action component.
- Cognitive or thinking component: unawareness, awareness, knowledge
- Affect or feeling component: liking, preference, conviction
- Conative or action component: purchase Further each of these components and stages can also be
related to psychographic elements. Unawareness, awareness: Perception Knowledge: Learning Liking
and preference: Attitude formation Conviction and purchase: Decision As per the theory, consumers
pass through each of the steps in the same sequential manner, but the speed in which they move through
these stages differ from person to person. Also, due to personal characteristics and individual
differences, it may be such that a person may not pass through all the seven steps and may even skip
some of them. An Assessment of the Theory: The Hierarchy of Effects Model illustrates how consumers
exhibit cognitive, affective, and conative behaviors. However, critics have argued on the ordered steps
during the purchase process. They believe that consumers do not always move in a linear manner from a
cognitive or thinking component to a affect or feeling component to a conative or action component.
Thus other models have been proposed which while based on the same steps arrange them in a different
manner, eg., Robertson’s Model (Problem recognition, Awareness, Comprehension, Attitude,
Legitimization, Trial, Adoption, Dissonance), Roger’s Model (Knowledge, Persuasion, Decision,
Implementation, Confirmation), AIDAS Model (Attention, Interest, Desire, Action and Satisfaction) and
the Adoption Model (Awareness, Interest, Evaluation, Trial, Adoption). Further, critics have also argued
that depending on the nature of the purchase situation, in terms of involvement levels, (high involvement
or low involvement), the thinking-feeling-action sequence would change. In case of low involvement,
the sequence would be thinking-action-feeling sequence; and in case of high involvement, the sequence
would be thinking-feeling-action sequence.

Implications for a marketer

The theory has relevance for a marketer as it illustrates clearly the stages through which a consumer
passes while purchasing a product/service. It provides valuable insight to a marketer who could
formulate his communication strategy accordingly, and use the right kind of tool(s) from his promotion
mix.

2) The Brand Experience Theory: The Brand Experience Theory acknowledges the impact of the
cumulative effort of all the tools of the promotion mix on a consumer’s decision making process. It falls
in congruence with the concept of the integrated marketing communication program. The consumers are
exposed to an enormous amount of marketing communication from various channels and media, and are
affected simultaneously by all different kinds of marketing communication. Many a times the
information received is inorderly; sometimes conflicting; and thus, often confusing for the consumer.
Thus, attention, storage, retention and retrieval of information, is highly complex. The theory seeks to
coordinate the different messages and the various media so that the consumers can receive an integrated
and consistent pattern of information at the right time. Further, as per the theory, the purchase process
and consumer decision making is a dynamic process; it is not essentially an orderly sequential
progression from thinking to feeling to behavior. Consumers can move back and forth among the
various steps as proposed by various models (eg., Hierarchy of Effects Model), and there is feedback.
Thus, according to the model, the message and the media must be integrated so that the consumers
receive a consistent stream of marketing communication. There should also be a mechanism of
feedback.
An Assessment of the Theory: The Brand Experience Theory proposes that consumers collect
information, form attitudes, and make purchase decisions in varied sequences. It also proposes that
consumers are exposed to a wide variety of media and channels, and receive information from such
sources, which do not correspond or relate to stage(s) in the decision making process. Implications for a
marketer: This approach proves to be beneficial both for the marketer as well as for the consumer. The
marketer has access to a wide variety of media to choose from and deliver his message; the consumer is
exposed to messages via such media, and the consumer is free to choose from whichever channel or
media he wishes to choose from. The end result is an integrated form of communication, a judicious
blend of the promotion mix.

CONSUMER COMMUNICATION AND IMPLICATIONS FOR MARKETERS

Marketing communication or consumer communication, whether interpersonal or impersonal, has a
great deal of relevance for the marketer. Marketers make use of his promotion or communication mix,
which comprises advertising, personal selling, sales promotion, publicity and direct marketing to
communicate with their consumers. The basic objective behind marketing communication is to inform a
consumer (or a prospect) and to make him aware about the product/service offering, and the mix; build a
favorable attitude towards the offering; and to encourage a purchase. Knowledge about marketing
communication or consumer communication helps the marketer in a number of ways. The subject has
wide implications in the sense that it makes clear to the marketer that:
1. Consumers rely more on informal sources of communication, i.e. family, friends, peers, colleagues
and people in our reference group; this is because it is believed that informal sources do not have a
hidden agenda or an ulterior motive of making sales.
2. The marketer needs to decide what to say, whom to say, when and where. In any case, the objective of
the sender is to provide information about the product/service offering as well as any changes made in
terms of price, distribution and promotion.
3. The marketer has to think of the message content as well as the message context; the former is factual
and rational, the latter is emotional. Issues that a marketer needs to address include: -positively framed
messages generate a greater impact, although both positively and negatively framed messages can be
persuasive in nature. - when exposed to a consumer, the first and the last messages or advertisements are
more likely to gather attention and subsequent retention, than those that are presented in between or in
the middle. This is referred to as the primacy effect and the recency effect respectively. - when both
favorable and unfavorable information is to be presented, favorable information should be presented
first. It creates space and greater tolerance for the unfavorable information. - whether a message is one
sided or two-sided would depend on the nature of the audience. -through comparative advertisement, a
marketer tries to illustrate the superiority of his product/service offering over competitive offerings.
Such comparisons may be drawn on one or few attributes or on an overall basis. However, sometimes
the effort by the marketer can backfire, to the competitors disadvantage. A comparative advertisement
from a marketer may help recall the product/service offering of a competitor. -In order to present a
message symbolically, a marketer needs to use “appeals”. Advertisement appeals could be of various
kinds, viz. factual, emotional (humorous, agony etc.). Broadly speaking, marketers use two kinds of
appeals, viz., informational, factual or rational, and emotional.

4. The marketer needs to think of the media strategy (what channel to use? Interpersonal or impersonal)
as well as the message strategy (what to say, how to say it logically and symbolically).
5. The marketer should keep in mind the credibility of the source.
6. Feedback acts as an acid test to determine whether the communication has been effective or not, as it
is through this feedback, that the marketer gets to know whether the message has been correctly
interpreted by the consumer. It helps the marketer to add/delete/modify his message so that the message
is better understood. The customer can address issues of concern and seek clarifications from the
marketer.
7. While feedback is important in both interpersonal and impersonal communications, it is easier to
obtain customer feedback in interpersonal communication, than it is in impersonal communication. 8.
Messages should be placed across various channels of communication, as integrated marketing
communication, so as to have maximum impact. Marketers should also realize that it is on the basis of
the segment(s) that the message and media strategy need to be designed. Positioning of the
product/service offering needs to be done accordingly. Divergent segments may require different
message and media strategies.

TOPIC 3: CONSUMERS AS DECISION MAKERS

Marketers need to understand the dynamics of the consumer decision making process. While the process
and the internal and external factors affecting decision making would vary from person to person and
within the same person from situation to situation, the study of consumer behavior attempts to draw
certain generalizations. The major decisions taken by a consumer relate to what he buys (products and
services as also the brands), how much he buys (quantity), where he buys (place), when he buys (time)
and how he buys (payment terms).

DECISION MAKING
A decision is defined as choosing an option out of the few/many available. Decision making is the
process of choosing between two or more alternatives. It is the selection of an alternative out of the
few/many choices that are available. Decision making is: a) a goal oriented process. b) it is a problem
solving process: helps take advantage of opportunities and fight threats. It can be of two types, a)
Programmed decision making, and, b) Non-programmed decision making.

a) Programmed decision making

This is applied for problems that are routine and regular. Such problems are simple to deal with and
guidelines to sort out such problems exist. Such decisions are made without much thought. With respect
to marketing, these are decisions related to day to day purchases or convenience and shopping goods-
generally low involvement purchases. They may also be habitual in nature, and brand loyalty could
easily develop. Examples include purchases made for staples, toiletries etc.
b) Non-programmed decision making
This is applied for problems that arise suddenly and are unique or novel. As the problem is sudden and
novel, it is complex and requires a lot of information gathering, deliberation and thought. With respect
to marketing, these are decisions related to infrequent purchases or specialty goods and emergency
goods; these are high involvement purchases. Examples include purchases made for laptops, real estate
etc.

A consumer purchase is actually a response to a problem. Consumer Decision Making pertains to

making decisions regarding product and service offerings. It may be defined as a process of gathering
and processing information, evaluating it and selecting the best possible option so as to solve a problem
or make a buying choice. Consumer Decision Making pertains to the following decisions:
a) What to buy: Products and Services (and the Brands?)
b) How much to buy: Quantity
c) Where to buy: Place
d) When to buy: Time
e) How to buy: Payment terms. All purchase decisions are not similar. The effort put into each decision
making is different.

LEVELS OF DECISION MAKING

While decision making is defined as the selection of an alternative to solve a problem, the time and
effort required to complete the process varies across buying situations. We may define three kinds
problem solving spread over a continuum; these are referred to as the levels of consumer decision
making; (i) Extensive problem solving (EPS) (ii) Limited problem solving (LPS) (iii) Routinized
problem solving (RPS) or routinized response behavior.
a) Extensive problem solving (EPS)
In EPS, the consumer is unfamiliar with the product/service category; he is not informed of the product
or service offering, and thus, the situation requires extensive information search and evaluation. The
consumer is not aware: - about the various decision criteria used to evaluate the product or service
offering. - of the various brands that are available and from which to evaluate. The result is that the
purchase process involves significant effort on part of the consumer. He has to gather knowledge about
(i) the decision criteria; (ii) the brands available; and (iii) make a choice amongst the brands.

The types of products and / situations where we generally have EPS: 1. Goods that are of high
involvement, expensive; and are infrequently bought; there is considerable amount of risk involved. 2.
first time purchases, for examples: Jewellery, electronic goods, Real estate and property etc.
b) Limited problem solving (LPS)
The consumer is familiar of the product or service offering; but he is unaware of the various brands. The
case is one where the buyer is familiar with the product category but unfamiliar with the brands. The
consumer: - is aware of some brands and also of the various criteria used to evaluate the product or
service offering. - is unaware of the new brands that have been introduced. - has not evaluated the
brands amongst the awareness set and has not established preferences amongst the group of brands. The
result is that the purchase process is more of a recurring purchase and it involves only a moderate effort
on part of the consumer. He has to gather knowledge to add/modify the existing knowledge that he has
in his memory. Thereafter he has to make a decision. The types of products and/situations where we
generally have LPS include: 1. goods of low involvement, generally moderately priced; are frequently
bought; and there is lesser amount of risk involved. 2. Generally recurring purchases. In exceptional
circumstances, they may also be cases where an expensive product is being repurchased. Examples
include a laptop replacing a desktop, a second TV for the home.

c) Routinized problem solving (RPS) or routinized response behavior: The consumer is well
informed and experienced with the product or service offering. The consumer is aware of both the
decision criteria as well as the various brands available. Here, the goods are ones of low involvement;
they are inexpensive; they are frequently bought; there is no risk involved. These are routine purchases
and are a direct repetition, where the consumer may be brand loyal. The result is that the purchase
process involves no effort on part of the consumer. It is simple and the process is completed quickly;
purchases are routine and made out of habit. The types of products and / situations where we generally
have RPS include: 1. Goods that are of low involvement, inexpensive, frequently bought and there is no
risk involved. 2. routine purchases and the consumer is brand loyal. Examples include staples, Cold
drinks, Stationery etc.

Variable EPS LPS RPS

Complexity of Decision High Medium Low
Time taken to make decisions High Low to high Low
Information Gathering Yes Yes No
Information sources Many Few Few/none
Awareness and knowledge of:
a) Decision criteria No Yes Yes
b) Alternative brands available No Somewhat Yes
Evaluative Criteria Complex Moderate Simple (if at all)
Brands Considered Many Few One (Repeat purchase)
Cognitive Dissonance High Rare None
Consumer Involvement High Medium Low
Problem Recognition Actual state type to Actual state type to Actual state type
Desired State Desired State

Information Search Extensive – Internal and Limited – mostly Minimum restricted to

external sources internal sources internal sources only
Evaluation of Alternatives Complex Moderate Simple (if at all)
Purchase Gradual after a cognitive Not so gradual Immediate
process
Post purchase processes Cognitive, Dissonance is Cognitive, Brand loyalty, repeat
high, Brand loyalty if dissonance would be purchase
satisfied rare
Types of goods Specialty goods Mixed Convenience
BUYING ROLES
Consumer decision making is a complex process. It is interplay of reactions amongst a consumer and his
cognition, affect and behavior on the one hand, as well as the environmental forces on the other hand.
The actual transaction/ exchange is preceded by considerable amount of thought processes and
influences. This could be explained in terms of the five “Buying Roles” which are: Initiator, Influencer,
Decider, Buyer and, User. The marketer needs to understand these roles so as to be able to frame
suitable strategies to target them.

a) Initiator: The person who identifies a need and first suggests the idea of buying a particular product
or service.
b) Influencer: The person(s) who influences the buyer in making his final choice of the product.
c) Decider: The person who decides on the final choice: what is to be bought, when, from where and
how.
d) Buyer: The person who enters into the final transaction and exchange process or is involved in the
physical activity of making a purchase.
e) User: The person(s) who actually consumes the product or service offering.

NB. These five roles may be performed by one person or many persons. A person may perform more
than one role. The role(s) that one assumes for a particular product purchase and in a particular purchase
situation may differ to another product purchase and in another purchase situation. It is even more
noteworthy that as far as Buyer Behavior is concerned, the buyer’s role is the most important; it is he
who enters into a transaction and final exchange. Actual and final decision is always made at the time of
transaction by the buyer. Although the decider may make a choice, the exchange is entered into by the
buyer.

CONSUMER DECISION MAKING PROCESS

Marketers are interested in consumers’ purchase behaviors, i.e., the decision making process. The
consumers’ decision making is a choice amongst various alternatives that address problematic issues
like: - what to buy; where to buy; when to buy; how to buy; and how much to buy. Consumer decision
making involves a continuous flow of interactions among environmental factors, cognitive and affective
processes and behavioral actions. A consumers decision’s are based on knowledge, affect and behavior
related to the marketing mix. Stages in Consumer Decision Making Process: There are five stages in the
consumer decision making process. These are 1. Need recognition/Problem recognition 2. Pre-purchase
information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase outcome and
reactions.
1. Need recognition/Problem recognition: This is a stage of perceiving a deficiency/need. A need could
be triggered off by an internal stimulus or an external stimulus. For example, a person is thirsty and feels
like having a cola drink. The stimulus is internal. On the other hand, while walking across the street, he
sees a hoarding which shows a person having a frosted, chilled cola, and he too desires to have the same,
the need is said to have been stimulated by an external stimuli. A need or problem recognition could be
Simple or Complex. Simple problem recognition is similar to Structured Problems; They occur
frequently as a routine and can be dealt with automatically without much effort. A Complex problem
recognition is similar to Unstructured Problems; They occur infrequently as unique and non-routine and
need considerable effort to be solved.

A need or problem recognition could result when: a) the Actual State changes (AS type): - the product is
failing, or the consumer is running short of it; - there is a problem that exists. - consumers who react in
such situations are called AS Types. Example: A product stops functioning and the customer needs a
replacement; eg. A refrigerator; Samsung One door: Standard; b) the Desired State changing (DS type):
- there is an imbalance between the actual state and the desired state - another product seems better and
superior to the one that is being currently used; -consumers who react in such situations are called DS
Types. Example: The product is functioning properly; but the consumer wants to buy an upgraded
model; eg., The refrigerator is functioning properly; however, the customer wants to buy another one
which has more features and is more modern; Samsung Two doors: Deluxe: Frost free. Which of the
particular styles operates’ depends on the product or service in question as well as the situation.

Whether a problem is an AS or DS Type also gets affected by an individual and his personality. Some
consumers are AS Types, who realize that there is a problem after it has arisen, and so they go in for a
purchase; They are reactive by nature; Eg. The consumer reacts after the refrigerator breaks down. Other
consumers are the DS Types, who want to upgrade to better/newer products; They are proactive; Eg.
Want to purchase a newer model of the refrigerator. A need is recognized in any of the following
situations: a) When a current product brand X is not performing well. b) When the current product brand
X is nearing depletion. c) When another brand Y seems superior to the one currently owned, X.

2) Pre-purchase information search

After a need is recognized, the consumer goes for an information search, so as to be able to make the
right purchase decision. He gathers information about the: (i) product category and the variations (ii)
various alternatives (iii) various brands. The amount of information a consumer will gather depends on
the following: i) the consumer: demographics (age, gender, education), psychographics (learning,
attitudes, involvement, personality type) ii) product category: differentiation and alternative brands
available, risk, price, social visibility and acceptance of the product. iii) Situation: time available at
hand, first time purchase, quantity of information required, availability of information.

Types of Search Activity

The information search activity may be of various types, i.e. specific, ongoing and incidental. (i)
Specific type of search activity is specific to the problem and/ immediate purchase; it is spurred as the
need arises, and the consumer actively seeks information. Example: student enters college and needs to
buy a laptop so that he can work on his assignments. (ii) Ongoing search activity is a gradual process
that could span over time. Example: the same student, has been thinking of purchasing the laptop since
the past five years, and over these past 5-6 years, he has been gathering information specific to the
laptop as a product category and also about the various brands available. (iii) Incidental is a byproduct of
another search activity or experiences. Consumers absorb information from their day to day routine
activities and experiences. Example: the student goes to a mall; he has gone there to help his mother buy
a microwave oven; there in the store, he attends a demonstration of a new laptop that is being launched.

Information Sources
The information sources are of two types:
i) Internal sources which includes the consumer and his self. He recalls information that is stored in his
memory (comprising information gathered and stored, as well as his experiences, direct and indirect).
Internal sources seem sufficient when: - it is a routine purchase - the product is of low involvement.

ii) External sources: Here the consumer seeks information from the external environment. External
sources of information include: -Interpersonal communication (family, friends, work peers, opinion
leaders etc.) -Marketing communication or commercial information (advertisements, salespeople,
company websites, magazines etc.) -Other public sources (editorials, trade magazines and reports,
consumer awareness programmes on TV, Internet etc.) External sources are resorted to in cases where: -
past knowledge and experience is insufficient; the product is of high involvement and the risk of making
a wrong decision is high.

c) Evaluation of alternatives: Once the consumer has gathered information and identified the
alternatives, he compares the different alternatives available on certain criteria. This involves: i)
Generation of choice alternatives; ii) Identification of evaluative criteria: Attributes and Benefits; iii)
Application of Decision Rules.
i) Generation of choice alternatives: While generation of alternatives, a consumer moves from an
evoked set towards the choice set.
- Evoked set/Consideration set: This is the set of alternatives that he actively considers while making a
purchase decision; these exist either in his memory or feature prominently in the environment. The
consumer perceives them to be acceptable.
- Inept set: These are those alternatives from the evoked set that the consumer excludes from further
consideration, as he perceives them to be inferior and unacceptable.
-Inert set: These are those alternatives from the evoked set that the consumer excludes from further
consideration, as he is indifferent towards them and perceives them as ones without much advantages or
benefits.
- Choice set: This comprises the final set of one or two brands from which he finally decides.
ii) Identification of Evaluative Criteria
Attributes and Benefits: These are objective and subjective parameters of the brand that the consumer
regards as important, and uses as standards to discriminate among the various alternatives. The
consumer evaluates the different alternatives on one or few or many of these features and then makes a
final choice. They are features that a consumer considers in choosing among alternatives; these could be
functional/utilitarian in nature (benefits, attributes, features), or subjective/emotional/hedonic (emotions,
prestige etc.).

The major evaluative criteria are: - Economic: Price, Value (Product Attributes, Brand image,
Evaluation of Quality, Price, & Features). - Behavioral: Need/motivation, Personality, self-concept and
self-image, Lifestyle etc. - Social influences: Group influences, environmental issues etc.

iii) Application of Decision Rules to make a final choice amongst alternatives: The consumer uses
certain decision rules. The decision rules help a consumer simplify the decision process; the various
evaluative criteria are structured and integrated so as to simplify the evaluation process. There can be
two kinds of Decision Rules, viz., Compensatory rules and Non-compensatory rules.

Under compensatory rules, the various evaluative criteria are listed as attributes. These attributes are
scored and rated for the various alternative brands. A lower rating on an attribute may be offset by a
higher rating on another; i.e. a higher rating on one attribute would compensate for a lower rating on
another. Based on the final scores, the brands are ranked; the one with the highest score, being regarded
as the best. The consumer would then select the brand that scores the highest among the various
alternatives that have been evaluated. Compensatory rules could assume two forms: simple and
weighted. - Simple summated: The attributes are rated for each brand and the scores are totaled. -
Weighted: The attributes are first given weights relatively based on the level of importance; thereafter,
the attributes are rated and finally scored after multiplication with the weights. The weighted scores are
then totaled. 2. Non-Compensatory rules: Here, a negative evaluation of any one attribute eliminates the
brand from consideration. A lower rating on an attribute cannot be offset by a higher rating on another;
i.e. a higher rating on one attribute would not compensate for a lower rating on another. The consumer
would then select the brand that scores the highest among the various alternatives that have been
evaluated. Non-compensatory rules could assume three forms: conjunctive, disjunctive and
lexicographic.

Conjunctive rule: A minimally acceptable cut off point is established for each attribute. The brands are
evaluated, and, the brand that falls below the minimally acceptable limit on any of the attributes is
eliminated/rejected.

Disjunctive rule: a minimally acceptable cut off point is established for each attribute. The brands are
evaluated, and, the brand that falls above the cut-off point on any of the attributes is selected.
Lexicographic rule: The various attributes are ranked in terms of perceived importance. First, the brands
are evaluated on the attribute that is considered the most important. If a brand ranks considerably high
than the others on this attribute, it is selected. In case the scores are competitive, the process may be
repeated with the attribute considered next in importance.

Decision Rule Example

Compensatory Rule The consumer chooses that laptop which he judges as the best when
he balances the good and bad ratings with each other.
Non Compensatory/Conjunctive The consumer chooses that laptop that has no bad features.
Rule
Disjunctive Rule The consumer chooses that laptop that has at least one good feature.
Lexicographic Rule The consumer chooses that laptop that is the best on the most
important of all features.

d) Purchase decision
After the consumer has evaluated the various alternatives, he selects a particular brand. Consumer
purchases may be trials/first purchases or repeat purchases. Trials/First purchase: could be elicited
through market testing, or through promotional tactics such as free samples, coupons, etc. Repeat
purchases: lead to brand loyalty. If the consumer is satisfied, he would buy the brand again. The
consumer may further have to make decisions on: a) where to buy from? (Place: Real/brick and mortar
or virtual/online); b) whom to buy from? (Which store: Depends on reputation of seller, past experience,
etc.) b) when to buy? (Time: Emergency or Routine; During season, off season, sale, rebate etc.) It is
noteworthy that a purchase intention (desire to buy the most preferred brand) may not always result in a
purchase decision in favor of the brand; it could get moderated by (i) Attitudes of others; and (2)
Unexpected situational factors.

e) Post-purchase outcome and reactions

The post purchase outcome and reactions contains two stages: Post purchase Cognitive Dissonance, and
Product usage and reaction. Post purchase Cognitive Dissonance is a feeling of tension and anxiety
that a consumer experiences after the purchase of a product. The consumer begins to have a feeling of
uncertainty with respect the performance of the product and begins to doubt his purchase decision
“whether the decision was the right one?” He begins to ask himself the following questions: a) Have I
made the right choice? b) Have I purchased the right brand? c) Have I got value for money? The Fox
and the Sour Grapes is a perfect example of Cognitive Dissonance. Cognitive dissonance generally
occurs in cases where: (i) the decision making and purchase relates to a high involvement product; (ii)
the purchase activity is irrevocable; (iii) the consumer cannot return the product; (iv) the various
alternatives have desirable features and are all comparable; (v) the alternatives are also unique in some
way or the other. Consumers try to reduce this dissonance by: (i) gaining more product information; (ii)
discussing with other satisfied customers who have bought the same product/brand; (iii) going back to
the dealer and asking for reassurances. Other methods that consumers employ to reduce cognitive
dissonance are by: -rationalizing that the choice that they have made is the right one. -refer to data
(printed/audio visual) that supports and recommends the chosen product/brand. -make others buy the
same product/brand to reassure their choice. Marketers also employ strategies to reduce this dissonance
by providing guarantees and warranties, membership to company consumer forums and communication
and follow up with the customers. Product usage and reaction: After the purchase, the consumer uses
the product and re evaluates the chosen alternative in light of its performance viz. a viz. the expectations.
This phase is significant as it (i) acts as an experience and gets stored in the memory; (ii) affects future
purchase decisions; (iii) acts as a feedback. There could be three situations that can arise: -Performance
meets expectations: This leads to a neutral feeling; Customer may think of more suitable alternatives
next time. -Performance exceeds expectations: The customer is satisfied and this leads to a positive
feeling. He would tend to repeat purchase and it would lead to brand loyalty. He would also spread
positive word of mouth. -Performance falls short of expectations: Here, the customer is dissatisfied
and this leads to a negative feeling. The customer would search for other alternatives, express
grievances, spread negative word of mouth and may even resort to legal action.

NB. It is important to note that the five staged decision making process is not so simple; it is complex.
The decision making process is an interplay of reactions amongst a consumer and his cognition, affect
and behavior on the one hand, as well as the environmental forces on the other hand. Further, the
procedure may not always follow a linear order, and the decision making may not always proceed
through all the five stages; it would vary across (i) the nature of the product (high and low involvement);
(ii) the purchase situation (emergency or planned or routine); (iii) the personal characteristics of the
consumer; and (iv) the type of problem solving (EPS, LPS and RPS).

IMPLICATIONS OF UNDERSTANDING THE DYNAMICS OF CONSUMER BEHAVIOR

FOR A MARKETER
An understanding of the consumer decision making process can help a marketer formulate appropriate
marketing strategies. He can also model his marketing mix accordingly. The implications are discussed
as follows:
Need/Problem recognition: -A marketer can create an imbalance between the actual and desired state;
it would trigger the purchase decision process. -He can launch newer models; marketing communication
has a big role to play. He can focus on both functional (utilitarian) and emotional (hedonic) benefits that
the product purchase could offer. He can activate a need through communication (advertisements, sales
promotion, point of purchase stimuli, opinion leaders and reference groups.

Pre-purchase information search: -Marketing communication has an important role at this stage. -The
marketer can identify the sources of information that the people generally access and use these to present
information about his product and service offering. -The marketer can also identify the functional or
hedonic utility and use appeals accordingly. This would help create the right kind of cognitive and
emotional touch point so as to elicit a favorable behavior (purchase). The marketer should be able to
provide the right kind of information at the right place and at the right time. The marketer must make
sure that his product and service offering forms a part of the evoked /consideration set. a) For high
involvement products: the marketer should ensure that information is available. b) For low involvement
products: he should use emotional appeals, POP stimuli etc.
Evaluation of alternatives: -The marketer should be careful that his product is: i) positioned and
promoted well; ii) is readily available and displayed well; iii) the product features prominently in the
evoked/consideration set; and, iv) he highlights those attributes and benefits that are regarded as most
important to the consumers, and which they are most likely to evaluate while selecting an alternative.
The marketer should inform and educate the customer about the various criteria to use for evaluation of
alternatives. While doing so an intelligent marketer should focus on those attributes, where his product
is better and/superior.

Purchase decision: - The marketer should be careful to stock the product at the right place at the right
time so that the consumer who has made a decision in favour of the brand can have access to the
product; Otherwise the consumer may have to change his decision at the last moment. As far as trial and
first time purchases are concerned, the marketer should encourage trials through market testing, or
through promotional tactics such as free samples, coupons, etc. - For repeat purchases: i) the marketer
should make sure that he has satisfied the customer at the first time. ii) that his offering is a part of the
evoked/consideration set. He should aim towards creation of brand loyalty.

Post-purchase outcome and reactions: - The marketer can play an important role in reducing the
dissonance that the consumer faces and reassuring him that the choice he made was the right one. i) The
marketer can communicate with the customer about the various attributes/features and benefits that the
product has to offer in comparison with other alternatives. ii) He can follow up with the customer and
address queries and concerns if any (eg. follow up calls). iii) Marketers’ assurances with respect to
warranties, guarantees and exchange can also pacify the cognitive dissonance state. iv) Company
websites with FAQs (frequently asked questions); satisfied customers’ comments and blogs; and
customer care information (eg. toll free numbers etc) can also prove to be helpful.

DIFFUSION OF INNOVATION
In a highly competitive environment, where number of players exist and vie for a share of the market,
the introduction of new product and service offerings becomes crucial for existence and long term
survival; thus, marketers are always on the move towards introduction of new product and service
offerings that would help meet the evolving needs and wants of the consumer segment(s). The products
that are offered may be slightly different from the existing alternatives, some may be highly different,
and some totally new. They all fall under the purview of what is referred to as an “innovation”, and the
product and services, referred to as “innovative products and services”. Wherever they fall on a
continuum, they illustrate a change in one of few or all of the 4Ps, be it in product form (product
features, attributes, benefits, packaging or even brand name) , the price (price, terms of payment,
installments etc), place (physical versus electronic formats or even personal selling) and/or promotion
(media strategy, message strategy etc.).

Whatever be the changes that a marketer offers, it is the changing needs and desires amongst the
consumers that the former attempts to address; and, so it is important for him to understand how the
segment(s) would react to such a product and service offering. Varying perspectives to defining
“Innovation”: The term “innovation” has been described with varying perspectives and orientations,
viz., firmoriented, product-oriented, market-oriented, and consumer-oriented. Let us discuss each one of
these:
a) Firm-oriented: As per this approach, a product or service offering is regarded as “new,” if the
company starts manufacturing or marketing it for the first time. In other words, the firm orientation
treats the “newness” in terms of the company’s perspective.
-the product is “innovative”, if it is “new” for the company.
-the existence of the product in the market (as competitor’s offering, or even as consumers’ awareness)
is disregarded; as long as it is “new” to the company, it is regarded as an innovation.
b) Product-oriented: A product and service offering is regarded as an “innovation”, if the product
changes in terms of form, attributes, features, and overall benefits; such changes have a twofold
connotation, one, in terms of technology, and two, in terms of consumption usage and behavioral
patterns.
-the product is “innovative”, if it is “new” in terms of form, attributes and features.
-there are changes in technology, as well as impact on consumer consumption behavior. There are two
sub-approaches to classify “innovative products” as per the product-oriented definition; viz.:
Approach I: This approach classifies innovative products based on the degree to which the new product
and service offering would upset established consumer usage and behavioral patterns. As per this
approach, innovations can be classified into three categories, continuous innovations, dynamically
continuous innovations, and discontinuous innovations.
- Continuous innovation: A product is regarded as a continuous innovation, if it is a modification over
an existing product; it is not essentially a new product, but an improvement over the already existing
one; they could also be line extensions, and as such continuous innovations do not disrupt established
usage and behavior patterns; For example, improvements in laser jet printers, digital TVs, shaving
razors, or changes in call plans (Airtel, Cell One).
- Dynamically continuous innovation: An innovation is regarded as dynamically continuous, if it
exerts some influence on usage and behavior patterns, but this influence is not totally disruptive; it does
not totally change behavior patterns; For example, the walkman giving way to the portable CD player, or
the pager giving way to the cell phone.
- Discontinuous innovation: Discontinuous innovations lead to disruption of usage and consumption
behavior patterns; there is a change not only in the technology, but also requires consumers to change to
new behavioral patterns in terms of usage and consumption. For example, the postal mail giving way to
email and internet, the radio/record player giving way to portable music and sound, the telephone giving
way to the mobile phone, or the traditional glucose and diabetes blood test giving way to the home kit. 4
Approach II: According to another approach, innovative products can be classified on the basis of how
the “newness” in form, features and attributes can impact consumer satisfaction; the greater the degree
of satisfaction, higher it ranks on the scale of “innovativeness.” Innovations can be classified as
artificially new, marginally new, and genuinely new.
- Artificially new: Embody not much of a change, and do not much impact user satisfaction; For
example, a new flavor of an ice-cream.
- Marginally new: Here, there is some level of change in customer satisfaction, because the product is
new, differs a little over the existing products and provides greater benefit; For example, the laser printer
replacing the dot-matrix printers.
- Genuinely new: This implies a totally new product that impacts user satisfaction completely; it differs
from existing product and service offerings, and leads to customer satisfaction, as the usage gives
greater benefit. For example, microwave owens, cell phones, home medical tests and kits.

c) Market-oriented: The market-oriented approach views “innovation” purely from a marketers’

perspective, in the sense that a product is regarded as “new”, depending on how much exposure the
consumers’ have about the new product or service offering, and the total sales penetration that has
occurred in the specified short period of time.
- the product is regarded “new” if the market does not have much exposure of it.
- sales penetration has been low. Here again, there can be two bases that underlie a market-oriented
definition; viz.,
i) a product or service offering is regarded as “new”, if it has been in the market for a short period of
time.
ii) it is “new”, if it has been purchased/used/consumed by a small portion of the total potential market.

d) Consumer-oriented: The consumer-oriented approach to defining “innovation”, is a favored

approach over others, especially in consumer behavior research, and more specifically in research
related to diffusion of innovation, and adoption; the reason is that the concept of “newness” or
“innovation” is dealt through focus on consumer, and his/her reaction towards the new product and
service offering, in terms of acceptance and rejection. As per this approach, any product is regarded as
“new”, if the consumer believes it to be so; it is purely based on the consumers’ perception of the
newness of the product, rather than on technological changes that the product embodies. Amidst the
varying perspectives and orientations, the approach(es) that receives wide attention are the market-
oriented and the consumer-oriented approaches to studying “innovation”. Dimensions of “Innovation”:
As discussed above, some innovative products reflect a modification over the existing ones, others are
radically different, and still others totally new. Such changes, slight, radical and complete, lie over a
continuum; and any innovation can be measured and classified on two dimensions, viz., technological
and behavioral. This implies that
i) the product undergoes technological changes; it also requires
ii) behavioral changes within the consumers with respect to usage and consumption pattern. To sum up,
innovations are measured on two dimensions,
i) technological changes in the product itself : relates to the product only.
ii) behavioral changes within the consumers that are required for purchase and usage/consumption of the
new product and service: relates to consumer behavior issues, product adoption, and usage.
a) Some new products and services, are illustrative of (i) only: Example: a change from VCDs to DVDs
was illustrative of better technology, better picture quality, audio and visual; it involved no behavioral
changes within consumers; there was just a technological change in the construction of the product.
b) Other new products and services, are illustrative of (ii) only: Example: the introduction of two
wheelers for women, do not essentially signify much of technological change in the two wheeler, but
have encouraged women to buy and use scooties.
c) Still other illustrate (i) as well as (ii): Example: the cell phones, with the GPRS, the 3G etc, not only
illustrate a change in technology, but also involve considerable behavioral change; consumers can make
call, access emails and internet while on move from anywhere they want. Classification of New Product
Innovations: Based on varying perspectives and orientations, new products have been variously
classified. The most commonly used classification has been proposed by Thomas S. Robertson. Based
on the two dimensions that have been discussed above, technological and behavioral, Robertson has
classified the new products and innovations into three categories, viz., continuous innovations,
dynamically continuous innovations, and discontinuous innovations.

a) Continuous innovations: - A continuous innovation is one that entails modification over an existing
product; it is illustrative of little technological change, but requires no behavioral change on the part of
the consumer for product usage, consumption and resultant experiences.
- The technology used to manufacture the new product is not different from the one that produced the
original or already existing product; and, the consumer does not have to adopt a new purchase, usage
and consumption pattern to use it.
- Example: all line extensions, or product variants (new form, size, flavor etc.); For example, various
flavors of Amul Chocolate are line extensions of the original Amul Milk Chocolate. - Other examples:
laser printers replacing earlier versions; a change from VCDs to DVDs was illustrative of better
technology, better picture quality.
b) Dynamically continuous innovations: - An innovation is regarded as dynamically continuous, when
it includes some technological change in the product, but requires no behavioral change on the part of
the consumer for product usage, consumption and resultant experiences.
- The technological change is brought either to increase efficiency, or provide greater value to the
consumer.
- Example: the walkman giving way to the portable CD player, or the semi-automatic washing machine
giving way to the fully automatic one.
c) Discontinuous innovations: - On a continuum, they fall as most radical; they are truly “innovative”
in the sense that they are technologically superior, and also require considerable behavioral change
within consumers with respect to purchase and usage patterns.
- The technology used to manufacture the new product is different from the one that produced the
original or already existing product; and, the consumer has to adopt a new purchase, usage and
consumption pattern to use it.
- Example, the telephone giving way to the mobile phone, or the 3G and GPRS providing email access
while on move as against email access on the computer/laptop.
DIFFUSION OF INNOVATION AND ADOPTION
There are two issues that a marketer needs to address while launch of new products and services,
i) whether the modified/new product and service offering would be accepted by the segment(s), and
ii) how quickly would the product and service offering be accepted by the segment(s). The two issues
are dealt with within the purview of “Diffusion of Innovation.”

“Adoption”, on the other hand is a micro concept that lays emphasis on the various phases or stages
through an individual consumer passes while accepting/rejecting a new product or service offering.

DIFFUSION PROCESS: “Diffusion” is defined as a macro process that deals with the spread of a new
product or service offering amongst the potential market; it relates to the acceptance/rejection of an
innovation by the segment(s). “Diffusion of Innovation” is defined as a process by which an innovation
spreads amongst and gets the absorbed/accepted or assimilated by the market. Schiffman defines
“diffusion”, as “the process by which the acceptance of an innovation (a new product, new service, new
idea, or new practice) is spread by communication (mass media, salespeople, or informal conversations)
to members of a social system (a target market) over a period of time”. The definition comprises four
basic elements of the diffusion process:
- innovation: the term “innovation” refers to the newness of the product/service offering.
- channels of communication: this includes i) Marketing communication that takes place between the
marketer and the potential market, or the target segment; it could be personal (salesperson and
consumer) or impersonal (via print or audio visual media). ii) Interpersonal communication that takes
place between the consumers themselves or within members of the target segment(s); it could be word
of mouth communication within consumers or through an opinion leader.
- social system: this refers to the social setting in which the diffusion takes place; it actually refers to the
market segment(s) or the target market(s). The definition and scope of the social system depends on the
product and service in question, its usefulness and its very basis for existence. In a way, it reflects the
target market(s) for whom the product and service is designed, and within what segment(s), it would be
diffused. For example, for a new herbal anti-wrinkle cream, the social system would be confined to
ladies who are in their late 40s.

The social system has wide repercussions on the diffusion of a product/service:

i) First, the new product and service is discussed and or evaluated within members of the social system
through interpersonal communication, opinion leadership and word-of-mouth.
ii) Second, the philosophy and the resultant orientation, with respect to culture, traditions, values and
norms also impacts the diffusion process. Thus, the social system impacts the ultimate adoption and
assimilation of the innovative offering; in order to be accepted quickly and penetrate successfully, the
marketer needs to keep this social system in mind and design his product and the marketing mix
accordingly.

- time: time is an important factor in the diffusion of innovation, as it determines the pace of adoption
and resultant assimilation of the innovative offering; researchers have studied the impact of time in the
following ways:
i) The amount of purchase time: the amount of purchase time refers to the average time that a consumer
would take to adopt a new product and service offering; this would include the total time between the
consumers’ initial awareness to the final acceptance/rejection of the new product or service. Time as a
factor has relevance for the diffusion process in the sense that it helps assess the total time that it would
take for a new product or service offering to get totally diffused and adopted by the market at large;
when the average purchase time is less, it can be assumed that the rate of diffusion would be faster.
ii) The rate of adoption and the identification of adopter categories: Rate of adoption: The rate of
adoption refers to the period that it is taken for a new product or service to be accepted by the target
market(s). It is a measure of how long it takes a new product or service offering to be adopted by the
members of the target market. With global advances in all respects, be it socio-economic, political,
cultural and technological, the rate of adoption is getting faster. The marketer also aims at a rapid
acceptance of his innovative offering, so that he can gain maximum advantage as a first-mover; thus he
designs his marketing mix as per the needs of the segment(s), across international cultures and
communities. Adopter categories: This refers to a classification scheme amongst members’ of the target
segment(s), which illustrates where one consumer stands in relation to another consumer with respect to
time, that has lapsed between the introduction of the new product and service and the adoption by a
consumer(s). Researchers have classified consumers into adopter and non-adopter categories, which
range from two or three or five category classifications. It is noteworthy that the consumers would be
classified based on the nature of the good or service. Roger’s has proposed a classification of adopters,
according to which consumers can be divided into five categories based on the time taken by them to
adopt a product.

These five adopter categories are innovators, early adopters, early majority, late majority, and laggards.
Based on research, it has been observed that the five categories when plotted on a graph, lead to a bell-
shaped normal distribution curve (See Figure). The five categories are explained as follows:
a) Innovators: Innovators comprise 2.5 percent of the target market(s) adopters; they are those
consumers’ who are the first to go and purchase a new product or service offering. They purchase the
new product and service offering not because they possess a need, but because they desire new ideas and
concepts, and seek product and service innovations. They are high on self-confidence, and are always
eager to try out new products/services. They have access to information about such new offerings, and
are quick to purchase; one, because they have the interest and inclination to buy the “new”; and two,
because they have the purchasing power and the access. It is important to mention here, that innovators
are not “generic”; they are in most cases “specific” to a product and service type.
b) Early adopters: The next 13.5 percent of the target market(s) adopters are called early adopters.
These are those consumers’ who purchase the new product and service offering not because they are
fascinated towards the “new”, but because they possess a need. They generally tend to have some idea
on the product/service category, and after gathering some more information about the product and or
brand, they go in for purchase. Early adopters rely on group norms and also turn out to be good opinion
leaders, and could be easy targets for the marketer.
c) Early majority: The early majority is similar to the early adopter in the sense that they buy the
product/service offering because they possess a need and want to fulfill it; however, they are not as
quick as the early adopters and take longer to enter into purchase. This is because unlike the earlier two
categories, the early majority does not have much interest in the product/service category. Thus, the
consumers that fall into this category have to collect information, evaluate it, deliberate carefully and
then take a decision; thus, the process takes longer. The early majority make up the next 34 percent of
the adopters.
d) Late majority: The next 34 percent of the adopters are referred to as the late majority. They are
referred to as “late,” because
i) members of their social class, reference group and peer group have already made the purchase; and the
social influence is strong, and
ii) they themselves have evaluated the new product and or service and are ready to buy it. They have a
need, and after careful thought and deliberation as well as with social influence and pressure, the “late
majority” makes the purchase. By nature they are skeptical and confirm to social pressure. Interpersonal
communication has a major role to play.
e) Laggards: The laggards are the last to adopt a new product or service offering, and as such make up
the last 16 percent of the target market. They are slow in buying the innovative offering because,
i) they are uninvolved with the product and service;
ii) they do not possess much information;
iii) they remain uninfluenced by social pressure, and social ties are not very strong;
iv) they believe in making routine purchases and prefer to buy the “familiar”, than the “unfamiliar”.

Roger’s classification only includes the adopters; there also exist in the market a group of people who do
not venture out into seeking a particular product or service, as it may not confirm to their culture, socio-
economic class or they may not have the need for such a product/service. Such people fall into a class
referred to as the non-adopters; a class that never adopts the new product/service, and in general
comprises a very small portion of the entire population. Non-adopters may be classified into five
categories, viz., the unaware group, symbolic rejectors, symbolic adopters, trail adopters and trial
rejectors. The inclusion and study of the non-adopter category is crucial as it is reflective of reality, as
not all consumers adopt all new product and service offerings.
- unaware group: the non-adopters who are unaware about the new product or service offering.
- symbolic rejectors: those among the non-adopters who are aware of the product but feel that it is not
meant for them because it does not meet a need or does not conform to socio-economic cultural norms.
- symbolic adopters: the symbolic adopters are aware of the innovative offering, and believe that the
product or service may be of relevance for them, but they are yet to try the innovative offering.
- trail adopters: such non-adopters have tried the innovative offering, but have not yet made a purchase;
if they have made a trial purchase, they have yet not made a repurchase to confirm liking or habit
formation.
- trial rejectors: trial rejectors are those non-adopters who have tried the new product or service, but
have not found it suitable; they have no intention in further purchase or repurchase.

ADOPTION PROCESS
The second major process in Diffusion of Innovation is “Adoption”. Adoption is a micro concept that
lays emphasis on the various phases or stages through an individual consumer passes while
accepting/rejecting a new product or service offering. The study of adoption is important for a marketer
in the sense that it helps him understand the various stages through which a consumer passes right from
his initial awareness to the final acceptance/rejection. It may so happen that the innovative offering may
be existing for long in the market, but the consumer is unaware of it; or, it may have existed in the
market for long, but is regarded as “new” because the consumer has heard of it for the first time. This
implies that consumers could differ in the manner they complete their purchase activity, right from
initial awareness to the final act of purchase. This could mean that the marketer needs to design his
selling strategy accordingly. Schiffman defines adoption as “the stages through which an individual
consumer passes while arriving at a decision to try or not to try or to continue using or to discontinue
using a new product”. Consumer researchers have proposed a number of models to describe the steps in
the adoption process, viz., Heirarchy of Effects’ Model, Robertson’s model, and Roger’s model. The
models explain the stages through which a prospect passes to end up being a consumer, right from the
stage of initial awareness to final adoption. Generally speaking, the consumer passes through five stages
of adoption, viz., awareness, interest, evaluation, trial, and adoption (or rejection). The assumption
underlying this general model of adoption is that when a new product/service is introduced, prospects go
through an information search which could range between limited to extensive; of course, for some
products this search is highly limited (routine purchases).

The five stages are explained below:

i) Awareness: This is the first stage in the adoption process, where the consumer is exposed to the new
product/service offering, and gets to know of the product. The marketers’ objective here is to provide
some awareness about the innovation, the features and benefits as also the brand. The consumer is
generally passive and acts as a mere recipient of information. He becomes aware but lacks sufficient
knowledge about the new offering.
ii) Interest: In this next stage, the consumer begins to develop some interest in the innovative offering,
and thereby puts in some effort to know more about it. The consumer becomes active in his search for
information and tries to elaborate on the information received at the awareness stage. He actively
searches for information about the new product /service and tries to assess how it can benefit him.
iii) Evaluation: The consumer who has acquired knowledge about the innovation, now begins to
evaluate; he evaluates whether, i) more information search is necessary with respect to the innovation as
well as to the brand; ii) he is sufficient with the product/service information that he possesses. The
consumer also evaluates the innovative offering in terms of the attributes, features, and overall benefits,
as compared to existing alternatives; he assess the “value” of the product/service offering and the brand.
If he feels that the offering provides “value”, he goes in for the next stage which is trial; else the process
is aborted, and the innovation rejected.
iv) Trial: The consumer goes and tries out the innovative offering, but there is not yet any further
purchase (repurchase) commitment. The product/service is experienced on a small scale and used on a
limited basis only, to determine the worth or usefulness.
v) Adoption (Rejection): Based on the trial stage, and the resultant experience, the consumer would
decide to decision to use/reuse/patronize the offering. If the experience is satisfying, and the evaluation
favorable, the innovative offering would be accepted, else it would be rejected. While this five staged
procedure constitutes a general model of adoption of innovation, it has been criticized to be very general
that lacks the complexities of real life buying and consumption. Researchers argue that:
- The model does not indicate a need recognition stage or a problem solving scenario; critics argue that
when faced with a problem, the prospect’s approach towards an innovative offering would be much
different, than when he is not faced with one.
- Evaluation takes place both before and during trial; in fact it takes place throughout the process.
- Trial is no guarantee for future purchase or repurchase; although experience may be satisfactory, a
consumer may never use the product/service offering again.
- The model makes no mention of post purchase behavior; it does not speak of cognitive dissonance,
neither does it speak of post purchase evaluation leading to a commitment to use/reuse/patronize the
offering in future. Thus, keeping in view these realities, the model has been modified, and consumer
researchers have incorporated two more stages between trial and adoption, viz., direct product
experience (consequences), and product evaluation (confirmation). Direct product experience refers to
experience with the product/service offering on a longer duration; so as to experience its consequences
and to assess it better. Product evaluation refers to assessing the consequences of the experience so as to
accept the innovation or reject it After modification, the stages of the model stand as Awareness,
Interest, Evaluation, Trial, Direct product experience, Product evaluation, and Adoption.

Various Models of the Adoption Process

Model Stages
Hierarchy of -Awareness: the stage involves initial awareness on the part of the consumer of the
Effects innovative product /service offering.
Model -Knowledge: the consumer gets to know about the product/service, the attributes,
features, benefits, price etc.
-Liking: he develops feeling of like/dislike towards the innovation.
-Preference: the feeling of like/dislike gets deeper into preference to buy or not to buy
the innovative product/service.
 -Conviction: the consumer develops confidence and decides with certainty to buy the
product/service.
-Adoption: he finally goes and purchases the offering and uses it.
Robertson’s -Problem recognition: the consumer realizes that there is a need.
Model -Awareness: he becomes aware of the product/service offering.
-Comprehension: he gathers information on the various product/service offerings as also
on the brands; he comprehends this information and develops an understanding of the
product/service offering and the various brands.
-Attitude: based on his comprehension, the consumer develops a feeling of
liking/favorableness or dislike/unfavorableness towards the product/service offering and
the various brands.
-Legitimization: the liking/favorableness or dislike/unfavorableness towards the
product/service offering and the various brands is confirmed with facts and logic as well
as social influence.
-Trial: the consumer goes and tries out the offering, but there is not yet any further
purchase commitment.
-Adoption: he has evaluated his experience with the product/service through trial, and
finally goes and purchases the offering.
-Dissonance: the consumer faces a dilemma as to whether he has made the right
decision with respect to purchase and usage of the product/service.
Roger’s -Knowledge: the consumer becomes aware of the innovative product/service offering,
Model and gains knowledge and understanding about the offering, features, attributes, benefits,
value, price etc.
-Persuasion: this is the stage of attitude formation; the consumer forms a
favorable/unfavorable feeling towards the innovation. This depends on the perceived
characteristics of the innovation (in terms of relative advantage, compatibility,
complexity, trialability and observability).
-Decision: based on his attitude, the prospect mentally decides to adopt/reject the
product/service offering; he may purchase and use the offering, reject it or go in for
another alternative.
-Implementation: the consumer implements his decision; the stage involves trial and use
of the innovative offering.
-Confirmation: the consumer moves from a stage of trial (which entails no commitment
to purchase/ repurchase), to final adoption (decision to use/reuse /patronize the
offering). At this stage, he may seek some reinforcement and reassurance.

The Adoption Process and the Facilitators: Information sources act as a strong facilitator in the
adoption process; right from the stage of awareness to that of final adoption, information remains a
strong determinant. Marketing communication and in particular, impersonal sources like print and
audio-visual media have a major role to play in creating awareness about a new product/service offering.
Thereafter, their impact goes to on decline relatively, and that of interpersonal sources (family, friends,
peers and colleagues, as well as salespeople) goes on to increase. In fact interpersonal influence that gets
reflected in social influence and/or social approval acts as a major determinant in adoption of innovative
products and services, primarily in stages of trial and final adoption.

FACTORS AFFECTING DIFFUSION OF INNOVATION/ADOPTION PROCESS

The diffusion of innovation and an adoption as a process is not generic; it varies from product to product
and or service to service. Some product or service offerings gain quick acceptance, and the diffusion is
fast and rapid; for other products and services, the process may be slow and take considerable amount of
time. For example, the colour TVs in India took a long time to get diffused, but for the satellite TV, the
rate of diffusion was very fast. Also, the cordless telephone took a long time to get diffused into Indian
homes, but the cell phone got readily accepted by all and diffusion was very fast. Thus, all products or
services that are “new”, do not possess the same ease and potential for consumer acceptance. Diffusion
of innovation and subsequent adoption is impacted by socio-economic, cultural, technological as well as
legal factors; it is also impacted by individual determinants like psychological variables and
demographics; these are all forces are in most cases “uncontrollable” by the marketer. There are also the
more relevant forces, related to the innovative product and /or service which constitute what is called the
“controllables”, and which are in the hands of the marketer; these could be in the form of marketing
communication or interpersonal communication etc and could be used by the marketer in a manner that
facilitate quicker and easier acceptance of the innovative offering. Apart from these, there are also
certain characteristics that an innovation possesses that can impact the diffusion and adoption process.

Researchers have identified certain factors that can act as triggers and some that can act as barriers to the
diffusion and adoption process.
Triggers to the Diffusion of Innovation/Adoption Process: There are certain product and service
characteristics that affect the diffusion process and can influence consumer acceptance of new products
and services; the five factors that can impact the diffusion process, and the rate of adoption are: relative
advantage, compatibility, complexity, trialability, and observability.
a) Relative advantage: The relative advantage of the innovative product/service offering over already
existing products/services, accelerates its rate of adoption by the target market. The degree to which
customers perceive a new product/service as superior to similar existing products determines the relative
advantage. A product/service that provides advantage over other existing products is indicative of being
superior to existing alternatives, and thus higher in terms of “value”. The more radical a change, and the
higher the relative advantage, the faster would be the diffusion. The relative advantage may lie in terms
of it being a modified product (with better features, attributes, benefits, form etc), or at a lower price
(better deals, discounts, terms of payment, warranty and exchange), or more accessible in terms of
availability (physical store format, or virtual electronic format), or better communication. Thus, while
product-based advantages are more attractive in nature, the other components of the marketing mix like
price, place and promotion can also provide a basis for relative advantage. Examples of innovations that
provide relative advantage are, flash drives versus compact discs, laptops versus computers, or digital
libraries versus traditional libraries, ATMs versus bank teller counters.
b) Compatibility: The compatibility of the innovative product and service offering with the existing
backgrounds, behavior and lifestyle patterns of consumers also affects its adoption by the consuming
public. The compatibility of a product/service measures how closely it relates to needs, value systems
and norms, lifestyles, culture etc. The higher the level of compatibility, the quicker the diffusion; and the
lower the compatibility, the slower the diffusion. A product will diffuse more quickly if it does not
require consumers to change their values, norms, lifestyles, cultures and day to day behaviors.
Continuous and dynamically continuous innovations are higher on compatibility than discontinuous
innovations. Fast food in the form of pizzas, burgers, noodles etc. took considerable amount of time to
get diffused into the Indian society, as it contrasted heavily with the dal roti meal concept. The pace of
adoption quickened in the 1990s and more so in the 2000s with the new generation, and their preference
towards packaged foods and fast food. Another example that can be mentioned here is, coconut oil as a
medium of cooking would be incompatible to people staying in North India. Even if positioned as
“healthy and natural cooking medium”, it would be slow to penetrate and may even fail if launched in
North India. The same would penetrate easily in South India, as it is culturally more compatible.
c) Complexity: The level of complexity in a product purchase and usage also affects the diffusion
process. An innovative offering would be easily diffused when there is ease of understanding, purchase
and use. The easier it is to understand and use a product, the more likely it is to be accepted quickly, and
vice versa. While speaking of complexity, technological complexity acts as a barrier to diffusion. People
resist adoption of new products because of fear of complexity in purchase and usage. This is well
understood by high tech industries. Let us take the example of the electronic goods industry, eg
microwave owens or vacuum cleaners. While designing their communication, the marketer illustrates
ease of use, so as to encourage quicker acceptance; prospects are provided with demos and trials; once
purchased, arrangements are made for providing installation at home. Another example is the mobile
phone industry; realizing the problem of complexity, simpler models are introduced for those who desire
the mobile set just for making and receiving calls and sms’es. It would be noteworthy to mention here
that the youth are more techno savvy and have accepted electronic goods like MP3s and 4s, laptops, I-
pods, ATMs etc much faster than the older generation. This is because the former have been able to deal
with the complexity with a higher level of comfort than the older generation.
d) Trialability: The ease with which the product or service can be tested and tried also determines the
rate of acceptance. The higher the degree of trialability, the greater would be the rate of diffusion. This
is because the prospects get an opportunity to try the product/service, assess it and decide to
accept/reject it. Trialability can be encouraged by providing free samples, or providing smaller packs
and smaller-than-average sizes, (for FMCG and household goods) or even through demos and testruns
(for consumer durables). Consumers could try out the innovative offering, evaluate it and then decide on
a purchase commitment by accepting/rejecting it. Trials leading to purchase can be encouraged through
guaranty and warranty schemes. Such trials encourage a product/service to be diffused easily.
e) Observability: Observability refers to the ease with which the product can be observed.
Observability in an innovative product refers to the degree to which a product/service’s benefits can be
observed, imagined and perceived by a potential consumer. The higher the degree of observability, the
greater the chances of the innovative offering being accepted by the prospects. Those new product
offerings that are
i) tangible,
ii) have social visibility, and
iii) whose benefits are readily observed (without much time gap), are more readily diffused than those
that are intangible, or have no social visibility or whose benefits accumulate over long periods of time.
Thus, relative advantage, compatibility, complexity, trialability, and observability have an impact on the
rate of diffusion. While all these factors relate to the product, they are dependent on consumer
perception. A product/service offering that is relatively superior to existing ones, is more compatible to
existing consumption behavior and usage, is less complex, easy to use and observable, is more likely to
be purchased quickly by the public, than when it is not.
Barriers to the Diffusion of Innovation/Adoption Process: There are also certain factors that
negatively affect diffusion of innovation and subsequently the adoption process. These barriers have
been dealt with extensively by consumer researchers and incorporated even in models on innovation
resistance. They could range at the micro level from product characteristics, to the more macro, socio-
cultural, economic, situational and technological forces. While product characteristics like relative
advantage, compatibility, trialability, and observability, do boost the rate of diffusion and adoption,
perceived complexity in purchase and usage of innovative offerings, retard the process. Innovations
could also meet resistance from socio-cultural, economic, situational and technological forces. The
innovative offering may not with compatible with social norms, values and lifestyle; or may not go well
with the economic strata; or be technologically complex, leading to fear to usage, obsolescence and risk.
The basic barriers to the diffusion process and subsequent adoption are as usage, value, risk and
psychological factors.
a) Usage: “Usage” as a barrier to innovation diffusion and adoption is said to exist when the social
system (the target market) finds it incompatible to the existing usage and consumption behaviors and
thus, finds it difficult to accept and use; in other words, they .find it to be incompatible with their
existing behaviors. The barrier is more psychological, based on deep rooted values, beliefs, attitudes and
perception, resultant in such behavior of non-acceptance and non-usage. For example, people are often
reluctant to enter into online monetary transactions for fear of loss of privacy and fraud. Communication
from the marketer based on rational and informational may not be sufficient to overcome such a barrier;
he would need to use credible spokespersons, celebrities and experts to motivate people to change their
existing lifestyle patterns and resultant behavior, and adopt the innovation.
b) Value: Consumers could also resist acceptance of an innovation, as they may feel low about the
perceived value; consumers may perceive the new product/service offering to be the same as existing
offerings, and “nothing new” or “better in value.” For example, while assessing mobile charges, people
compare the post-paid plans with the pre-paid plans in terms of rental as well as call charges, and
conclude that the former are cheaper, inspite of rental being high. The perceived lack of value may be
i) the product/service does not provide much benefit over the existing alternatives;
ii) the product/service is costly, and doesn’t seem to be of worth the price. Consumers’ perception of
“high price” always takes over the perception over product value or product benefit; in fact, values is
always assessed in terms of price; Also, price is a “catchy” issue than the benefits attached; price
appears more tangible, than benefits; and, consumers generally tend to know more quickly about price,
than they do about the benefits that the product brings along with it.
c) Risk: Risk also acts as a barrier to diffusion of innovation. Consumers show reluctance to use an
innovative product/service offering out of fear of taking risks. There could be six types of risks that a
consumer could face, viz., functional risk (would the product perform as expected), physical risk (would
the product usage and or consumption pose a threat), social risk (would it cause risk of social
embarrassment), financial risk (would the product will be worth the cost), psychological risk (would the
innovation hurt consumers’ ego), and time risk (would it lead to wastage of time spent while making the
purchase). The perceived risk barrier acts as a big barrier to the diffusion and adoption process;
consumers are fearful of purchase, usage and consumption of innovative offerings, and thereby continue
to patronize the existing alternatives, rather than adopt new ones (for fear of making a wrong decision).
In order to overcome this problem, the marketers could make use of both marketing communication (via
audio-visual or print media, or company salespersons), as well as interpersonal communication (opinion
leadership, word-of-mouth communication). Trials (free or discounted) as well as interpersonal
communication with peers, colleagues and friends can also encourage personal experience by the
consumer and help overcome this risk.
d) Psychological factors: Psychological factors also prevent a consumer from adopting a new
product/service offering. These factors relate to a person’s background, attitude and belief, perception,
values, lifestyles, culture etc. They may find the innovation to be psychologically threatening. The two
common threats are i) tradition barrier, and ii) image barrier.

Tradition barrier relates to socio-culturally accepted norms of behavior that are regarded as “right and
appropriate,” by the consumer segment. Anything that is new and does not support traditional patterns is
regarded as psychologically threatening; this includes usage and adoption of innovative products and
services. For example, wearing western outfits is a taboo for women in the Middle East, and as such
they would never attempt to wear skirts or trousers. Another example, Kelloggs Cornflakes, found it
difficult to penetrate the Indian soil, primarily because it was positioned as a quick breakfast cereal to be
had in cold milk, as opposed to the traditional Indian concept of cornflakes or cereal in hot milk.

Image barrier refers to the consumer’s attitude and feelings about the product/service offering, the brand,
or the dealer, or even the country of origin. It also relates to personality and self image (actual and
ideal). Consumers’ may resist adoption of new products/services if they are patriotic and ethnocentric;
or if they do not regard the innovation or the marketer/dealer to be of their “class” in terms of socio-
economic status or even quality. Thus, marketers try to come up with variants in offerings, and have
separate names for separate variants depending upon the segment(s) for which they are aimed.

THE PROFILE OF A CONSUMER INNOVATOR

Not all people are receptive to innovative offerings. People vary in degree with respect to their
receptivity towards new product/service offerings. This has been dealt with in the section above, where
we have also discussed the categories of innovators. The marketer needs to have an understanding on
what constitutes an “innovator”, and what differentiates him from late adopters or non-innovators, so
that he can design his marketing mix, and more specifically the promotion mix accordingly. The
traits/qualities/ characteristics that differentiate an innovator from a non-innovator, indicate that separate
media and message strategy need to be formulated for the two of them. For innovators, the marketer
should focus on the print media with informative and rational appeal. On the other hand, for the late
adopters and the rest of them, the marketer should focus on the audio-visual media with social and
emotional appeals. As mentioned above, innovators are those consumers’ who are the first to go and
purchase a new product or service offering; they comprise 2.5 percent of the target market(s) adopters,
and they purchase the new product and service offering not because they possess a need, but because
they desire new ideas and concepts, and seek product and service innovations. They have the interest
and inclination to buy the “new”; and also have the purchasing power and the access to do so. They
possess the following traits/qualities/ characteristics:
a) Innovators are not “generic”; they are “specific” to a product and service type. Consumers who are
innovators of one product are more likely to be innovators of other new product/service offerings in the
same general product category. Hence, they possess interest in the product category; those who innovate
within a specific product category will innovate again within the same product category. Innovators are
desirous of new products/services in a particular category, and so they seek formal information from
marketers, and informal information from their peers/friends/colleagues. Because of their interest in the
product/service category, their search for information is active and ongoing, followed by deliberation,
evaluation and assimilation of information.
b) Consumer innovators are generally younger than late adopters or non-innovators; they have more
formal education, occupational status, and higher income and purchasing power. While education
facilitates greater awareness, income facilitates a risk bearing ability (as they feel that they can afford to
make a mistake).
c) After a while, innovators tend to become opinion leaders. Innovators possess a level of interest in the
product/service category; they gather information on an ongoing basis, they are the first to purchase the
innovative offering, and are a powerful source of information for other consumers. Other consumers like
early majority and early adopters and early majority look up to innovators for advice and guidance about
the new products/services. The advice given by innovators acts as a major influence, and impacts
acceptance/rejection of the innovative offering. The marketer should keep in mind that his offering leads
to satisfaction for the innovator; if the innovator is satisfied with the innovation, the product would
generate a favorable response from him as an opinion leader, and lead to quicker acceptance by the
public.
d) Innovators also possess certain personality traits.
- They are low on dogmatism, and as such open and willing to try out new products/services and/or
brands. They are receptive towards the “new” and “unfamiliar.” Non-innovators, on the other hand are
closed, and approach the “new” with considerable anxiety and discomfort.
- They are high on the need for cognition. They are verbalizers.
- They are inner-directed, and decide to take risk with the “new”, relying on their attitudes, perception,
values etc. They take independent decisions rather than relying on others, and are self governed. Non-
innovators, are other-directed or socially-directed, whose decisions/judgments depend on others; they
wait and watch and they decide to go for the “new”.
- While on one hand, innovators tend to inner-directed, they are socially more accepted and more 9
involved than noninnovators. They are accepted by others as “experts”, and thus assume roles as opinion
leaders.
- They are also variety novelty seekers. They are always eager to try out new offerings. - Innovators
happen to be high on optimum stimulation levels. They are willing to seek adventure, seek novelty and
they enjoy unusual experiences. As a corollary, they enjoy taking risks.
- Innovators are risk takers, and are ever willing to take risks. This is because they are low risk
perceivers. Perceived risk is a measure of uncertainty or fear that a consumer feels with respect to the
consequences of a purchase and or usage of a new product. Consumer innovators score low on perceived
risk, and they experience little or no fear in trying out the “new”. This is primarily because they are well
informed, and possess enough purchasing power. So the likelihood to try new product/service offerings
and/or brands is high.
- Innovators also display the quality of venturesomeness, which implies the their willingness to accept
the risk of purchasing new product/service offerings.
- They also exhibit the need for novelty and uniqueness. They want to be the first to try out the “unique”,
and also possess it. Thus, they go out and purchase the innovative offering.

e) Innovators also possess certain purchase, usage and consumption characteristics, which differentiate
them from non-innovators.
- Innovators are low on brand loyalty; in fact they are switchers. This is quite natural, for if they were
brand loyal, they would not have been variety novelty seekers, or venturesome, and would not have been
ever willing to try out new products/service offerings.
- They are deal hunters; they are always on the look out for good deals, and like to take advantage of
promotional offers, like free samples, discounts or small trial packs.
- They are heavy users of the product/service category. If a person has an inclination for electronic
products, and is the first to go and buy a mobile or the I-pod, it is more than likely that he would also be
the first to go and buy the I-pad. This implies that they act as innovators for all products in that
particular category.
- As innovators possess special interest in a product category, and want to keep themselves aware and
abreast with the latest, special-interest magazines and journals have a big role to play in educating them.
Marketers need to provide information in such magazines as innovators prefer the print media over the
audio visual. They gather and process information via central route to persuasion.

DIFFUSION AND ADOPTION, AND THE IMPLICATIONS FOR A MARKETER

Diffusion of Innovation and Adoption, are important subjects that needs to be addressed by a marketer.
While the first pertains to whether the modified/new product and service offering would be accepted by
the segment(s), the second pertains to how quickly would the product and service offering be accepted
by the segment(s). The marketer needs to understand the dynamics of the two processes, so as to be able
to plan his marketing mix and his strategies. While the initial objective to target the innovators, the early
adopters and the early majority cannot be ignored. The various categories of the consumers have to be
dealt with separately. While innovators can be lured through rational and logical messages over print
media, with fact bearing messages, the rest have to be lured with social and emotional appeals, with
emotional messages over the audio visual. The innovators, later on begin to take the role of opinion
leaders. They can be used by marketers to their advantage; but this could happen only if the innovators
are happy and satisfied with the innovative product/service offering. The marketer also needs to
understand the stages of adoption; and the objective of the marketer should be to first make the
consumer aware of the innovative offering, and then elicit a trial that is satisfying. He should help the
consumer move through these stages. He could encourage trial through free samples, small packs or
even discounts. Once the consumer finds the experience satisfying, he would move towards purchase,
and repurchase, and end up being loyal.

TOPIC FOUR: CONSUMERS, CULTURE AND SUB-CULTURES

SOCIOLOGICAL INFLUENCES ON CONSUMER DECISION MAKING

INTRODUCTION
Sociological influences that impact consumer decision making include i) Consumer groups; ii)
Consumer reference groups; iii) Family and Life cycle; iv) Social class and mobility, lifestyle analysis;
v) Culture; Sub-Culture and Cross Culture , and also vi) the role played by Interpersonal
Communication and Opinion Leadership.

CONSUMER GROUPS
The term “group”, may be defined as two or more people who interact with each in order to achieve
mutually agreed upon goals. Such goals may relate to an individual or to the many who get together for
the achievement of such goals. When we speak of consumer groups, we refer to individuals or group of
individuals or the family who have a need and desire purchasing a good or service so as to fulfill the
need and derive satisfaction. While speaking of groups, it becomes necessary to understand the various
kinds of groups. Groups may be i) small or large; ii) formal or informal (based on purpose of formation,
legitimacy and structure of reporting relationships). So far as consumer behavior is concerned, the focus
lies on small informal groups. This is because small groups are more cohesive in nature, there is more of
interaction and the members can influence the purchase patterns and consumption behavior of each
other.

TYPES OF CONSUMER GROUPS

Groups may be classified on various bases like i) number and size; ii) regularity of contact; and iii)
structure and hierarchy. The various types of consumer groups are as follows:
i) Primary and Secondary Groups: The distinction between primary and secondary groups is based
on the significance/relevance of the group to an individual, and the frequency of interaction between
group members. Based on the regularity of contact and the importance given to subsequent interaction,
groups may be classified as primary and secondary. When people interact with each other on a regular
basis, and regard each others’ opinions as valuable and significant, they are said to constitute a primary
group; an individual who interacts with others regularly, is said to be a member of that primary group.
For example, family, neighbours, work peers, co-workers and colleagues. Secondary groups, on the
other hand, are those, where the level of interaction is infrequent, irregular and occasional, and not much
of value is given to other’s judgments and beliefs. When a person interacts with others on an occasional
basis, he is said to be a constituent of a secondary group. So far as consumer behavior is concerned, the
focus lies on primary groups.
ii) Formal and Informal Groups: Based on the group structure and membership, roles and norms, as
well as purpose of formation, groups may be classified as formal and informal groups. When the group
structure and membership (membership roll list), roles (various positions, like president, secretary etc),
group norms (do’s and don’ts) and the reason for existence (goals of the group) are clearly defined, the
group is said to be a formal group. On the other hand, when the group structure, roles and norms as even
the purpose of the group are ill defined, or not defined at all, they are said to constitute an informal
group. So far as consumer behavior is concerned, informal groups are of greater relevance to a marketer
because with ill defined structures, and lesser of rules and regulations, there is greater opportunity for
interaction between the members, better exchange of information and greater influence of each other on
consumption patterns and behavior.
iii) Membership and Symbolic Groups: Groups can also be classified on the basis of membership as
membership groups and symbolic groups. When a person belongs to a group by virtue of membership or
even if he merely qualifies for a membership to that group, it is called a membership group. On the other
hand, when a person does not form a part of a group and/or does not qualify to be a member of the
group, but nonetheless adopts the values, norms and patterns of behavior similar to members of the
group, he is said to be a member of a symbolic group. In consumer behavior, the focus lies on
membership groups. To sum up, the focus in consumer behavior lies on small, informal, primary
membership groups because such groups have the maximum influential impact on consumption patterns
and consumption behavior. Speaking of such groups that are of maximum impact to consumer
researchers, a discussion on consumer relevant groups becomes essential.

CONSUMER SOCIALISATION
The socialization process begins as we begin to realize the world around us. Of course the first influence
comes from our family that comprises our parents and siblings. It could also include the extended family
if staying together in the form of grand-parents, uncles, aunts and cousins. Interaction with family leads
to what is referred to as child socialization. The child begins to learn the language, the dressing pattern,
the eating pattern, the lifestyle, religion, customs, values and our culture. As he grows up, he is
influenced by his friends, peers and colleagues, and there occurs what is known as adult socialization.
They may belong to his culture or other cultures with varying lifestyles, values and customs. He is also
influenced by his spouse and later on even by his children. His reference groups, both primary and
secondary also have an impact on his behavior. The media also has a role to play, where the marketer
indirectly plays a role.

Relevant Groups in the Study of Consumer Behavior

Group(s) Definition/impact
Family - The family has the maximum impact on consumptions patterns and consumption behavior because of the
socialization process that an individual as a family member undergoes through. - The family is the most
influential group. Why? Because of frequency of contact and maximum interaction, and influence on values
and lifestyles, attitudes and opinions.
- Family of orientation: Parents, Grand-parents an Siblings
- Family of procreation: Spouse and Children
Friendship - As far as influence on purchase decisions is concerned, second in importance lie friendship groups.
groups and - Consumers tend to interact with their friends and others in their social groups and get influenced by them
informal social with respect to purchases and consumption patterns.
groups - They are regarded as informal as they are loose, unstructured with no power and authority relationships.
- The interaction that occurs is casual in nature; Opinions and beliefs regarding product and service offerings
as also brands are discussed. Such discussions impact a person’s decision with respect to the product and/or
brands that he finally buys.
- The assumption is that such friends belong to similar social classes and have similar values and lifestyles.
- Thus, marketers tend to use a social appeal in their advertisements so as to illustrate how friends can
influence each other.
Official work - Social groups could also be official in nature. This would include peers and colleagues who work together
groups: as a team and interact with one another.. - As considerable time is spent at the workplace, and there also
Superiors, occurs informal interaction between peers, official work groups also influence consumption patterns and
Peers, behavior.
Subordinates - Superiors may act as reference groups and subordinates may admire them and desire to their purchase
(Formal) patterns and behavior.
Formal social - Social groups can also be formal, such as membership to clubs, societies. Members of formal social groups
groups also influence each other with respect to consumption behavior.
Consumer - With the consumerist movement gaining strength all over the world, consumer action groups have emerged
action groups that also have an impact on how the consumer behaves.
- Consumer-action groups could be of two types; one, that emerge in order to fight and rectify a specific
issue, and disband after the issue has been solved; two, that deal with general issues and remain in existence
over longer periods even after a problem has been solved.

The socialization process influences an individual’s entire personal make-up; it impacts the manner in
which a person acts out specific instances of behavior as well as the general instances of behavior. This
includes consumption behavior as well. Consumer behavior gets influenced by various groups like
family, friends, social class, reference groups, one's own culture, other cultures and sub-cultures. Right
from the childhood, parents educate the children about products and service offerings, and/or brands,
and inculcate within children favorable and unfavorable attitudes towards such offerings. Children also
make observations about the manner in which the parents go through the purchase process. Later as they
grow up, the children begin to interact with friends from their culture or other cultures and sub-cultures.
Their consumption pattern gets influenced in terms of peer pressure towards product and service
offerings as also brands. As and when they grow up to be adults, and get married, their attitudes towards
product and service offerings as also the purchase process gets influenced by the spouse and later on by
the children. As mentioned above the mass media (TV, radio, newspapers, magazines, etc) also has a
role to play, where the marketer indirectly plays a role. When a person acts out instances of behavior
which relate to consumption patterns and behavior, it is known as consumer socialization. Consumer
socialization occurs throughout life, as i) people acquire knowledge about product and service offerings
as also brands; and ii) develop the skills and expertise to make the right kind of purchase decisions.

GROUPS AND IMPLICATIONS FOR MARKETERS

Marketers should realize that the focus in consumer behavior lies on small, informal, primary
membership groups because such groups have the maximum influential impact on consumption patterns
and consumption behavior. Marketers also need to understand the relevance of consumer socialization.
Similar to child and adult socialization, consumer socialization occurs throughout life, as people acquire
learn about values, norms, behavior etc. from parents and family, as also friends and colleagues.
Relevant to marketing is that i) people acquire knowledge about product and service offerings as also
brands; and ii) develop the skills and expertise to make the right kind of purchase decisions.

MEANING OF CONSUMER REFERENCE GROUPS

It is a natural tendency on the part of an individual to look up to another as with comparison; each one of
us looks towards another individual or a group as a point of comparison. This group to which a person
looks up as a point of comparison is known as a reference group. A reference group may be a person or
a group to which an individual looks up as a frame of reference for his general and specific acts of
behavior, values, opinions, attitudes etc. The reference person or the reference group exercises
tremendous influence on an individual. This is true for consumer behavior as well. A consumer always
has with him in his conscious and sub-conscious state, a person or a group that he looks up to as a
reference point. Consumer actually look up to reference groups because: a) He desires information
before he actually decides to go in for the purchase of a product and service offering. As reference
groups are regarded as impartial and have no hidden agenda like salespersons, consumers trust the
former more than the latter. b) He wants social approval for the product/services purchased or the brands
bought, and he feels that once he has this approval from the reference group, he would not face any kind
of social embarrassment . c) He feels that he would be much at ease if he does something that others
approve of. The reference group exercises impact on the manner in which a consumer selects, purchases
and uses a product or service offerings and/or brands. He influences the purchase decision making
process as also the purchase decisions, consumption patterns and resultant behavior. It is noteworthy
that consumers have different reference groups; he may look towards one for guidance and advice of one
product, and he may look towards another for purchase of another product. Gradually, the consumer
begins to adopt the standards and norms used by the reference group(s) and behaves like them. Thus,
marketers make effective use of reference groups in bringing about changes in a consumer’s thinking
and purchasing pattern.

TYPES OF REFERENCE GROUPS

Broadly speaking, based on the kind of contact (regularity, frequency, direct/indirect), reference groups
could be of two kinds, viz., primary reference groups and secondary reference groups. Such group(s)
with which a person has a direct (face-to-face) contact and where a direct influence occurs, is known as
a primary reference group(s). For example, family, friends, neighbours, superiors, peers, colleagues etc.
At the time of its origin, reference groups were narrowly defined so as to include only such groups.
Gradually the concept broadened to include both direct and indirect influences. So such group(s) with
which a person has an indirect contact and where an indirect influence occurs, is known as a secondary
reference group. For example, movie stars and celebrities, sportsmen, successful business men, political
leaders, religious leaders etc. Based on the kind of influence that they have, reference groups can also be
classified as normative reference groups and comparative reference groups. Those groups that influence
general or broadly defined values, attitudes and/or behavior are known as normative reference groups.
For example, for a child the family acts as a normative reference group; the parents (as family of
orientation) have a big role to play in making us understand our value system as well as our acts of good
and bad behavior. The parents teach the child his mannerisms, as well as what he should eat, how he
should dress, and how he should behave. On the other hand, those groups that influence and serve as
standards for specific or narrowly defined values, attitudes and/or behavior are known as comparative
reference groups. For example, for the same child, his friend’s family or a neighbor may constitute a
comparative reference group. The child desires emulating their lifestyles, customs, traditions etc, which
he finds exciting, admirable and praiseworthy (and something which may be very different from his
own). In terms of consumer behavior, the normative reference group may exert influence on the kinds of
products that should be bought e.g. hygienic food, clean clothes, fresh fruits and vegetables etc. The
comparative reference group may exert influence in terms of the things like junk food versus traditional
food, fashion and fad as also the latest styles etc. Both normative and comparative reference groups have
relevance for a marketer. While the former set the basic norms of behavior in terms of products to
purchase, the latter is more specific in terms of brands to buy; in fact the latter depends on the former;
i.e. the specific acts of behavior are governed by the general. Based on i) membership and level of
involvement; as well as ii) the kind of influence (positive or negative) they have on values, attitudes, and
behavior, reference groups may be classified into four categories (See Table 2), viz., contactual groups,
aspirational groups, disclaimant groups, and avoidance groups.

Types of Reference Groups based on Cross-Classification

Membership Non-Membership
Positive Influence Contactual group Aspirational group
Negative Influence Disclaimant group Avoidance group
a) Contactual Group: A contactual group is defined as a group where people hold membership, meet
face-to-face and have interaction, and where people abide by the values, norms, opinions and judgments
that the group entails. This kind of a primary group has the maximum influence on a person, and his
behavior. This has implications for a marketer in the sense that such groups impact purchase patterns
and consumption behavior.
b) Aspirational Group: An aspirational group is one in which a person does not have a membership,
and does not interact face-to-face, but he aspires to become a member. The group values and norms have
a positive impact on the person, who desires membership to such a group. In terms of consumer
behavior, these are secondary groups and impact a consumer’s ideal self or desired self-concept.
c) Disclaimant Group: Here, a person holds membership with the group, but does not believe in the
values, norms, attitudes and behavior of the group and its members. So the person acts as a deviant and
behaves in a manner that is in opposition to how others in the group behave. In terms of consumer
behavior, such people are referred to as inner- directed (an also detached), who want to set their own
norms and patterns of behavior. These people could also act as innovators.
d) Avoidance Group: As the term denotes, this group is one where a person does not have membership,
and he also disapproves of the values, norms, attitudes and behavior. He adopts such values and
behavior that are in opposition to those that the group believes in.

FACTORS AFFECTING IMPACT OF REFERENCE GROUPS

The impact of reference groups on the behavior of a person is subjective in nature; it varies across a)
people; b) product and service offerings; as also c) situational factors. Nevertheless there are certain
factors that affect the impact that a reference group generates on people. The factors that impact
reference group influence on consumption behavior are explained as follows:
i) Information and Experience: The amount of knowledge and experience an individual possesses or
has the capacity to possess determines the impact that the reference group can generate. A person who
has information about a product and service offering, the brand, and the 4 Ps, and also possess some
experience, would not look for advice from his reference groups, and it is unlikely that he would be
carried away by advice from others. On the other hand, a person who is little or no knowledge and also
lacks experience, would look towards primary and secondary reference groups for help and advice.
ii) Power, credibility, and trustworthiness: The impact that a reference group can generate also
depends upon how powerful, credible and trustworthy the reference group is. When a reference group is
powerful, and regarded as credible and trustworthy, there is greater probability of it being able to
influence people. A person who looks towards reference groups for information and advice about
product and service offerings as also brands, always examines the credibility and trustworthiness of the
group. He may also be fearful of the power of the reference group and would go by group-say out of fear
or to avoid any undesirable consequences. He may also be looking for social approval and acceptance of
others in his reference group. The probability of he being persuaded by such reference groups is high.
iii) Conformance with group and social approval: When a consumer is other- directed or
sociallydirected, and looks towards others for social approval, he generally conforms to the advice given
by members of his reference groups. This is because he wants to be identified with people whom he
likes or whom he wants to be associated with. Thus he would conform to the product and service and/or
brand suggested by members of their reference group.
iv) Visibility and Conspicuousness of the Product: The impact of reference groups also depends on
the visibility and conspicuousness of a product. When a product offering is visible and conspicuous,
such that it relates to esteem and is status revealing (fashion apparel, carpets and upholstery, jewellery
and other luxurious items), the consumer tends to be conscious while purchasing it especially because of
reaction of others (fear of social disapproval, social embarrassment). Thus he would buy such keeping in
mind the advice, likes and dislikes of reference group. When the product is low on public visibility and
conspicuousness, one is less likely to be influenced by the reference group.

REFERENCE GROUP APPEALS

While designing the messages, marketers may use various kinds of appeals so that the consumer can
identify himself with the spokesperson (from the reference group) in the advertisement. The commonly
used reference group appeals are: i) celebrity appeals; ii) expert appeals; iii) common man appeals; iv)
executive appeals, trade or spokes-character appeals.

i) Celebrity appeals: Celebrity appeals are the most commonly used kind of appeal. The public admires
film stars, TV personalities and sportspersons. They represent a lifestyle that people aspire to be in.
People idolize them and aspire to become like them. Thus, marketer’s use of celebrities particularly for
FMCG products. Celebrities in advertisements could be used in a variety of forms; they could be used as
a spokesperson (educating the consumers about the company, and the brand); or as a celebrity giving a
testimonial and endorsement (statement in support of claim or a fact about the brand); or as an
actor/model. Whatever form it may be in, commercials with celebrity appeals have major impact on the
consumers’ minds. Nevertheless the marketer must be careful about the credibility of the celebrity, in
terms of expertise (regarding the product or service and/or the brand) as well as trustworthiness (honesty
about what he/she says). Research has indicated that the credibility of the celebrity also depends upon
the number of brands he/she advertises for; where a celebrity advertises for only one or few brands,
he/she is looked up with credibility as against another who advertises for many, where he/she is looked
up with less credibility primarily because of the monetary benefit associated with the advertisement.
Marketers make regular use of celebrities for their advertisements; they presume that the image that is
associated with the celebrity passes on to the product or service offering that they are advertising for.
This phenomenon is known as prototypical bonding where a spokesperson's traits, personality, image
etc. gets associated with a particular service or product. For example, Aishwarya Rai advertising for Lux
or Sachin Tendulkar for Boost.

ii) Expert appeals: Another reference group appeal that is used by marketers is the expert appeal.
People who are experts in a particular field are used in the advertisement. Because of the 7.2.4
REFERENCE GROUP APPEALS: 11 knowledge, expertise and experience that they possess in a
particular field, they are in a position to give advice that would help potential consumers to evaluate the
various product alternatives, and finally make a choice. For example, a health nutritionist or a dietician
advertising for Complan.

iii) Common man appeals: As a common man appeal, the advertisement relates to individuals, who
find parity in such advertisements with real life situation; thus they are able to identify better with the
situation portrayed in the advertisement. As they relate to realities of life and real-life problems, they are
also known as slice-of-the life commercials. A common man appeal may also include testimonials from
a satisfied customer, so as to portray to potential consumers, that another commoner like them uses the
product and/or brand and is satisfied with it. Advertisements depict how day to day problems are solved
through purchase of products and service offerings and/or brands. Examples where such appeals are
used are agony and pain (Amrutanjan Balm), Bad breath (Close-Up), Insurance (LIC) etc.

iv) Executive appeals, trade or spokes-character appeals: Companies may also use their
spokespersons or their top executives in their advertisements. Such people are often used at product
launch and also relates to a publicity exercise. The spokespersons address the consumers and provide
information about the product or service offering. Due to the popularity that they hold, people and their
consumption behaviors are impacted by them. For example, Ratan Tata for Nano, Nita Ambani for
Reliance Fresh stores etc.

v) Other appeals: Other appeals that impact consumption behavior include print media and editorial
content, promotional strategies from dealers and retailers and seals of approval from recognized and
reputed agencies and organizations.

USEFULNESS OF REFERENCE GROUP APPEALS

Reference group appeals are useful for a marketer in two ways; firstly they provide information and
increase consumer awareness and knowledge; two, they reduce perceived risk amongst consumers, with
respect to market offerings.
i) Increase consumer awareness: Reference group appeals help in providing information about product
and service offerings, as also brands. This helps increase consumer awareness and knowledge about the
various offerings and alternative brands. The most effective appeal is a celebrity appeal that attracts
customer attention, and aids retention and retrieval during time of purchase. Celebrities are particularly
useful as they are familiar and popular with customers and thus draw the latter’s attention. Other appeals
(experts, spokesperson’s etc.) are useful too and because of the conviction with which they endorse the
various brands, they create a huge impact in favor of the product and service and/or brand being
advertised.
ii) Reduce Perceived Risk: Reference group appeals help in reducing the fear and apprehensions
consumers have when buying a product and service and/or brand. This is particularly true for new
product offerings. The manner in which reference groups endorse a product or provide testimonials, help
in reducing the uncertainty and consumer's perceived risk in purchasing product offerings. Mention may
particularly be made of expert appeals or trade or spokes-character appeals, where the manner in which
an endorsement is made, helps provide confidence to the consumer that his intention to buy is a correct
one.

INFLUENCE OF REFERENCE GROUPS VARIES BY PRODUCT

The influence of Reference Groups varies according to the nature of the product and/or service. Bearden
and Etzel have examined the issue from two perspectives, viz., a) the decision to purchase the type of
product; and b) the choice of the brand. They conclude that reference group influence varied by 1) the
type of product; whether it is a luxury or a necessity; and 2) its visibility; whether it is used in public or
private settings or environment (See Figure 1). Reference groups have varied influence on consumers
depending upon the type of the product, whether a luxury or a necessity, and whether it used in public
and viewed by others or whether it is used in private. According to Bearden and Etzel, reference group
influence is strong both for the purchase decision as well as for the brand in case of public luxuries, like
expensive carpets, paintings, antiques etc. The consumer does not possess a need for such products, but
requires them for social approval and acceptance, and finds these purchases as crucial for avoidance of
social embarrassment, and ridicule. Because of the lifestyle and the social class that a consumer belongs
to, he is conscious towards the purchase of such products as well as the brands that he buys. Thus,
reference groups influence both the consumer's need for the product in general as well as the choice of
brand. On the other hand, when in case of products which are public necessities, like a car or a cell
phone, reference group influence is weak with respect to the purchase decision, but strong with respect
to the choice of the brand. The reference group does not affect the decision to make a purchase as the
product is already regarded as one of necessity and will be purchase regardless of what the members of
the reference group have to say; the only impact that a reference group can make is with respect to the
brand. Further Bearden and Etzel also conclude that reference group influence is weak both for the
purchase decision as well as for the brand in case of private necessities, like towels, soaps and detergents
etc. The consumer is aware of such necessities, and will purchase them irrespective of what the
reference group has to say. Further, he would not be conscious of social approval and/or embarrassment
as these products are not viewed publicly, and so the influence of reference groups with respect to the
brand will also be low. Finally, in case of products which are private luxuries, like sauna baths, body
massagers etc., reference groups influence is strong with respect to the purchase decision, but weak with
respect to the choice of the brand. This is because the product is not used publicly and the brand
purchased would not cause any social embarrassment.

BRAND PRODUCT
Weak reference group Strong reference group
influence (-) on product influence (+) on product
Strong reference group PUBLIC NECESSITIES PUBLIC LUXURIES
influence (+) on brand Influence: Weak for product Influence: Strong for product
and strong for brand Eg. Cars, and strong for brand Eg.
Cell phones Carpets, Paintings, Antiques
Weak reference group PRIVATE NECESSITIES PRIVATE LUXURIES
influence (-) on brand Influence: Weak for product Influence: Strong for product
and weak for brand Eg. and weak for brand Eg. Body
Towels, Soaps and Detergents massagers, Sauna bath
Effects of Reference Groups on product purchases and Brand Choices Adapted from Wells W.D.
and Prensky, D., Consumer Behavior, 1996, John Wiley & sons, Inc.

REFERENCE GROUP AND IMPLICATIONS FOR MARKETERS

Reference groups have relevance for the marketer in the sense that reference groups help impact
consumer values, attitudes and behavior; reference groups inform and educate the consumers (potential)
about a product/service offering. By acting as a standard and as a frame of reference, they also influence
potential consumers towards adoption and usage of such product and service offerings. Marketers often
use them in advertisements to communicate with the masses, for example, celebrities, sportsperson and
leaders are often used in advertisements to influences the masses. They are admired by the consumers
who desire to identify with them and even aspire to become or behave like members of such secondary
reference groups. Further they not only provide information and increase consumer awareness but they
also reduce perceived risk amongst consumers with respect a product and service and/or brand.

FAMILY AND FAMILY LIFE CYCLE

MEANING OF FAMILY
The term “family” refers to the basic sociological unit. The term has been used to denote two or more
people staying together and related to each other by blood or marriage. The composition, size and
structure (in terms of roles and statuses) has undergone a change across time and culture. There have
been large families including grandparents, parents, children, uncles, aunts and cousins (all staying
together as a joint family); and small families which comprise just parents with their children (nuclear
family).

Roles and statuses have also changed, with both men and women taking active part in making purchase
decisions, and women playing roles which were earlier reserved for men and vice versa. Thus, the
family as a social unit has varied in composition and structure, as well as the roles played by family
members. It is noteworthy that from a marketers perspective while, families have been referred to as
households, not all households are families. A household may also refer to a house that has just a single
individual, or it might include individuals who are not related to each other such as friends, roommates,
or work peers. Nevertheless so far as consumer behavior is concerned, families and households are
treated as synonymous. Today, what we see around us are three kinds of families, viz., the married
couple, the nuclear family and the extended family. The married couple family comprises the husband
and the wife, generally representative of couples who have recently got married and are yet to start a
family. The nuclear family comprises husband, wife and their children. The extended family includes
the nuclear family with grandparents or uncles and aunts.
RELEVANCE OF THE FAMILY FOR A MARKETER
The family as a social unit is of tremendous importance for a marketer. This is because of three reasons,
viz., a monetary source for dependents, an indication of values and lifestyles, and the root for
socialization.
a) Monetary source: The family may comprise a single earner or a dual earner; the rest of the members
acts as dependents; It is father and/or mother who are the bread earners, and earn for the rest of the
members (children) who act as dependents. While this role was restricted earlier to the man in the
family, there is a transition, and today even the woman in the family is playing this role. As is seen the
children and the teenagers comprise a major portion of the market as buyers of goods and services.
While they desire product and service offerings, the money comes from the parents. Thus providing
financial resources to the dependents and looking into their economic well being is a basic family
function that the head of the family plays.
b) Values and lifestyles: The parents in the family are also a source of values and lifestyles for the
family. The grandparents and the parents in the family, inculcate among the children basic values and
norms, and also tell them about suitable lifestyles. This has an impact on the children when it comes
their day to day living, on their education, career, recreational activities, etc. With both parents earning
and having occupations, and the family experiencing a dualincome set up, a transition has been
witnessed in lifestyles of children and dependents. Children are becoming independent day by day and
becoming clearer about “what” they want; the brands they seek. People are also time-constrained and so
seeking easy ways out. This has led to the emergence of products and services that are easily available,
convenient to use and free of hassles. For example, there is the fast food industry, ready-to-eat packaged
meals etc.
c) Socialization: The concept of socialization has also been dealt with in the previous lesson. In fact,
socialization of members’ right from childhood to adulthood is the primary function that a family plays.
As discussed before, the socialization takes place at two stages, one during childhood, as family of
orientation, and two after marriage as family of procreation. This reflects itself in the values, lifestyles
and overall modes of behavior of individuals; eg. the kind of food to eat, dresses to wear, customs and
practices to follow etc. are all a result of the socialization process. Such socialization can be discussed at
three levels: socialization at childhood, socialization at adulthood, and intergenerational socialization.

- Socialization at childhood: Socialization during childhood takes place when children observe and later
on replicate the behavior of the elders (grandparents, parents and older siblings) at home. The children
are taught about the values and modes of behavior, directly through instruction and communication, and
indirectly through observation of behavior by elders at home. As they replicate behavior, they are
rewarded and the behavior gets reinforced. Thus, the family of orientation has an important role to play.
Of importance to marketers is the manner in which children learn patterns of purchase and consumption
behavior. As Schiffman defines, child socialization is the process by which children acquire the skills,
knowledge, and attitudes necessary to function as consumers. Similar to other socialization, such
knowledge about product and service offerings, as also brands and consumption behavior, is also learnt
through observation of elders at home, be it parents or older siblings. However as they grow up, their
consumption behavior also gets influenced by friends, as well as reference groups (both direct and
indirect). The process of socialization helps adopt shopping and buying skills of products and services,
as also brands at dealer’s outlets and stores.

- Socialization at adulthood: Socialization does not get restricted to childhood. It extends throughout the
life of an individual, as an ongoing process. As a person grows up into adulthood, he interacts with his
friend, colleague and work peers and is influenced by them. After he gets married, he starts a household
once again and his consumption pattern and behavior is impacted by his spouse. As the newly married
couple begins to settle down as a household, they make adjustments with each other with respect to
values, lifestyles and modes of behavior. They also make adjustments and adapt themselves with respect
to the likes and dislikes of each other, including preferences for product and service offerings as also
brands. Once they have children, they begin to impact and are also impacted by them. Thus, just like the
family of orientation, the family of procreation also has an important role to play.

- Intergenerational socialization: Values, lifestyles and behavior get transferred from one generation to
another. So do preferences for product and services as also brands. We often see that people prefer
certain brands, just because their parents preferred it over others. Product and brand loyalty as also
preferences get transferred from one generation to another. This is referred to as intergenerational
socialization.

FAMILY AND BUYING DECISION PROCESS

It is the entire family that acts together while making purchase decisions. However, researchers tend to
focus either on the decision maker who makes choices about a purchase or the user who uses the product
or service offering. Purchase decisions in the family are joint decisions made by the members of the
family, be it husband, wife, children, or may be even members of the extended family. Thus the family
is recognized not only as the basic social unit but also as the basic decision making unit.

Buying roles:
The members in the family play what is known as “buying roles,” viz. the initiator, influencer, decider,
buyer and user. These roles have already been discussed in module 4. It would be worthwhile to mention
here that these roles may be played by a single person or by a few in the family. Also, these roles would
vary across product and service offerings as also the buying situation. For some products, the male
member of the house acts as the decider, while for others, the lady acts as a decider.

Reversal of Buying Roles: However, with a large number of women taking to professions, men are no
longer confined to their offices but are also taking up responsibility with household chores. With
changing times, family roles have also undergone a change; most purchase decisions are joint decisions.
Also those decisions which were earlier restricted to men, are being taken by women and vice versa.
Marketers do address this issue when they depict through their ads, men washing clothes with Ariel or
men making Act II popcorn. This shift in buying roles need to be well-understood by marketers as this
change may ultimately affect the composition of target markets and segments.

Joint Decision Making in a Family: As mentioned above, most purchase decisions are jointly made by
the spouses together or with their children involved. While making purchase decisions and brand
choices, the family may very often find itself in disagreement with one another. In such situations, the
family members tend to influence each other to reach a consensus that makes everyone happy and leaves
them satisfied. Purchase decisions between husband and wife have been studied at length. Researchers
have identified family consumption decisions between husband and wife as husband-dominated, wife-
dominated, joint (i.e., equal or syncratic), and autonomic (i.e., solitary or unilateral). The kind of
influence in terms of nature and extent, depend upon the product and service offering, the stage in the
decision making process, and the family role structure (in terms of culture and sub-culture; Who is more
dominating?) . The influence today, is also getting impacted by changing roles in the social system, the
lifestyle patterns as also occurrence of women liberation and dual-income households. In purchase
decisions involving the family, children have a major role to play these days. They tend to influence
family decision making with reference to both the purchase decision as also the brand choice. The
behavior that they exhibit is more of an Influence that subsequently makes parents yield to their
(children’s) request. Children are influential for all kinds of products, be in icecreams or clothes or even
cars, which they watch on TV. It has been seen that while certain products are not used by children, yet
they are successful in influencing their parents in purchase decisions relating to them. Children who are
little older are able to recall the ads and the brands; they are highly influential in helping parents’ recall
the brand at the time of purchase. Mention may also be made of latchkey kids, who are preteen children
who stay at home alone for a considerable part of the day, while their parents are off for work. They
form a lucrative segment for marketers dealing in fast food, snacks and other eatables, be it burgers or
pizzas or cold drinks. These are made available at the doorstep through home delivery. With the new
generation, so very tuned towards such offerings, segment has good potential. Teenagers and college
going children also form a profitable segment for the marketer; this is because they are easily influenced
by friends and peers, as also members of secondary reference groups. They have money in hand which
the parents provide, and they have a tendency to spend a lot of money. They are fashion conscious and
also act as trend setters. They impact family decision making in a major way. Children, teenagers and
college goers cannot be ignored as they are can be caught young and made brand loyal. Together they
represent a huge market.
Resolving Consumer Conflict in a Family:
Researchers have particularly identified conflict reducing strategies between husband and wife. With
income being limited, they could argue with each other with respect to the purchase decisions (to buy/or
not buy), purchase choices (To buy Product X or Y), as also brand choices (To buy Brand X1 or X2).
Let us take an example. A couple is interested in buying a new 6 mobile set. They enter into an
argument with respect to the brand to be purchased. The various conflict-reducing strategies are
mentioned in the table.
Conflict reducing Strategies between Husband and Wife

Strategy Meaning Example

Expert One of the spouses, uses his/her The couple is buying a mobile set. The wife looks
superior knowledge and information for looks, aesthetics and appeal and prefers a
about the product/service category in Samsung, while the husband looks into the
question, and influences the other robustness, durability, size and weight etc. and
prefers a Nokia. Assuming that the husband has
better idea about electronic products, he acts as an
expert and influences his wife to agree to a
decision taken by him.
Legitimacy The dynamics here is based on “who If the man is the dominant force, they buy a Nokia;
dominates” the household; i.e. else they buy a Samsung.
decisions are taken on the basis of the
position in the household. The more
powerful influences the other.
Bargaining Here, the two agree to reach on a The couple is buying a mobile set. The husband
consensus with a promise for future; favors a Nokia while the wife prefers a Samsung.
“I agree to what you say now; You The wife agrees to buy Nokia on the condition that
would have to agree with me the next next time they would buy Samsung
time.” So one is able to influence the
other with a promise of exchange
some time in future.
Reward One tries to influence the other by The husband tells his wife that if she agree on a
offering a reward. Nokia, he would gift her a saree.
Emotional One of the spouses tries to influence The wife acts emotionally and says that she desires
the other by expressing his emotions; a Samsung as her first handset gifted to her by her
in other words, emotional blackmail. father was also a Samsung. So she gets sentimental
about it.
Impression Here, one of the spouses tries to The husband brings in facts, and logic and
influence another through his power of persuades his wife to agree to buy a Nokia.
persuasion, reasoning and argument.

The Family Life Cycle

Researchers have studied the consumption behavior across the various stages of the family life cycle.
They have attempted to study the various peculiarities, tried to relate these to the stages in the FLC, and
drawn generalizations. The family life cycle has been defined as a series of stages through which most
families’ progress, with varying characteristics across varies stages; these characteristics relate to marital
status, size of the family, the age profile of the family members (focusing on the age of the oldest and/or
youngest child), the employment status of the head of household, the income level and the disposable
income at hand. The amount of disposable income is usually inferred from the stage in the family life
cycle. While the tradition FLC has undergone change and newer forms have appeared, the concept still
draws attention from consumer researchers and practitioners. It has been used by marketers to segment
families on the bases of varied criteria that have been mentioned above.

Traditional Family Life Cycle:

Traditionally the life cycle, illustrated a progression of stages through which families passed; it
comprised stages, starting from bachelorhood (single), to married (couple), to family growth
(parenthood: birth of children), to family contraction (grown up children leaving home for studies or
employment) to post parenthood (all children leaving home) to dissolution (single survivor: death of one
of the spouses). Based on these, the traditional FLC can be synthesized into five basic stages, which may
be mentioned as follows:
- Stage I: Bachelorhood: Young single adult (male/female) living apart from parents and into a
livelihood.
- Stage II: Honeymooners: Young married couple.
- Stage III: Parenthood: Married couple with at least one child living with them at home.
- Stage IV: Post-parenthood: An older married couple with no children living at home. Children have
left home for studies or for employment.
- Stage V: Dissolution: One surviving spouse. These stages, consumption patterns and the product
preferences are explained below:

1. Stage I: Bachelorhood: The stage comprises a young single adult (male/female) living apart from
parents and into a livelihood. While incomes are low as they have just started a career, financial burdens
and responsibilities are also low. As such bachelors have a high level of disposable income. Priorities
and Preferences of Purchase: They tend to spend their money on house rent, basic furniture and kitchen
equipment. They are recreation oriented and like to spend on purchase of automobiles (particularly
motor bikes), travel (trekking and holidays), adventure sports (motor racing, bungee jumping etc.),
health clubs, clothes and fashion accessories). Implications for Marketers: Marketers realize that
bachelors possess large disposable income; they find in them an attractive segment for sports, travel,
entertainment and fun.

2. Stage II: Honeymooners: The stage comprises a newly married couple and continues till the first
child is born. One of the spouses may be working or both may be working. They are 8 financially better
off than they would be in the next stages. If both are working, income is higher. If both are working, the
couple has discretionary income at hand that permits a good lifestyle, and provides for purchases or
savings. Priorities and Preferences of Purchase: They tend to spend on creating a home for themselves.
They spend on cars, furniture, curtains and upholstery, electronics, kitchen appliances and utensils, and
vacations. Implications for Marketers: They form an attractive segment for the marketer as they form the
highest purchase rate amongst segments. The highest average purchase of durables takes place in this
stage.
3. Stage III: Parenthood: The stage comprises married couple with children. This stage extends for
about a long 20-25 year period; and could be further broken up into three stages, viz., Full Nest I, Full
Nest II and Full Nest III. Throughout these stages, the size and structure of the family gradually changes,
so does income and expenses with varying priorities. The financial expenses increase rapidly with
children being born in Full Nest I and gradually decrease as children become independent and self-
supporting as one reaches Full Nest III.

- Full Nest I: The youngest child in the family is six or below. Priorities and Preferences of Purchase:
While liquidity of cash is low, expenses are high. The family spends on baby food, diapers, medicines
for cough and cold, doctor visits, child toys and games, school admissions and fees and insurance
policies. There are increased expenses on child care. Implications for Marketers: At this stage,
purchasing is at the peak, and so this is an attractive segment for the marketer. The children in the family
begin to impact family purchases, and are a huge potential for future.

- Full Nest II: The youngest child in the family is six or above. Generally the stage comprises children
aged 6-12 years. Priorities and Preferences of Purchase: Financial position gets better as one begins to
rise up the ladder. If the wife is also working, children are “latchkey kids.” The family spends on food,
clothes for children, education of children, insurance policies and investments. They also pay for
medical expenses and particularly, dental treatment. They go in for deals; buy larger-size packages, and
economy packs. Junk food, fashion clothing and accessories, video games etc. are prime demands. 9
Implications for Marketers: At this stage, purchasing is still at the peak, and so this is also an attractive
segment for the marketer. The children, as also teenagers continue to impact family purchases. The
latchkey kids are a potential for home delivered junk food like pizzas and burgers.

-Full nest III: They are older married couples with dependent and/or independent children but staying
together at home. Children reach the higher educational level; one of them may start earning too.
Priorities and Preferences of Purchase: The family income continues to increase and so do expenses. The
family continues to spend on food, clothes for teenagers, higher education of children, and also repeat
purchase of durables that were bought in honeymooning stage or Full Nest I. The family buys new
furniture, electronic goods and appliances and cars. Thus there is high average purchase of durables. The
family also invests in real estate and property and/or flats. They continue to spend on medical expenses,
particularly dentists and visit general physicians for regular check ups. Implications for Marketers: At
this stage, income begins to increase as one of the children begins to earn. As expenses see a rise, the
stage offers a potential for marketers.

4. Stage IV: Postparenthood: This is a stage that occurs once children have left home. They leave
home first for education, and then for employment. As they complete their education, and find
employment, they gradually leave home one by one, thus, leaving the nest. Thus, this stage has also been
broken into two stages, viz., Empty Nest I and Empty Nest II. As one moves across Empty Nest I and II,
the size and structure of the family changes (quite similar to the Parenthood stage and the Full Nest I, II
and III).

-Empty Nest I: This is a stage that occurs when at least one of the children has left home. He/she has
completed education, taken up a job and has left home to start his/her home. He/she is independent and
can manage on own. While children are managing to start up on their own, parents are still working.
Priorities and Preferences of Purchase: The family size gradually begins to shrink. Parents are still
earning; expenses gradually reduce, and so there is highest level of savings and disposable income at
hand. The family spends on food, installments for real estate/house, higher education of the dependent
children, and, medical expenses on dentist, physiotherapy and heart. They have leisure time in hand, and
watch television, movies, and may even go on a vacation.
Implications for Marketers: At this stage, the couple beings to again have disposable income in hand.
Financial responsibilities towards children begins to decrease. This stage offers potential for marketers
who are involved in providing services like leisure, travel and holiday.
-Empty Nest II: In this stage, all the children have left home, and the couple has retired from
occupation. They live on pension and other social security investments. If health permits, they take up
part-time jobs.
Priorities and Preferences of Purchase: The couple has higher disposable incomes because of savings
and investments, and they have fewer expenses. They decide to spend on all that they had been thinking
to spend on but had not been able to because of familial responsibilities. They spend money on food,
travel and holidays, watch TV and form hobby clubs. They refurnish their home or may even move to
newer homes after retirement. Medical expenses also see a rise. However, for those older retired couples
who do not have much income from adequate savings and investments, the situation is much different.
There is a sharp drop in their income.
Implications for Marketers: The stage is lucrative for those involved in the entertainment industry.
Many industries provide special discounts in travel and stay as “Senior Citizen benefits, for example,
hotels, airlines and railways. Banks and financial institutions also have special facilities for those above
60, especially higher rates of interest on deposits.

5. Stage V: Dissolution: This stage in the FLC occurs when one of the couple dies, and leaves behind
the other surviving spouse.
Priorities and Preferences of Purchase: When one of the spouses is still earning, or earns money from
savings and investments, things are little easier. However, if he/she is not earning, he/she follows a
lifestyle that is economical. The primary expenditure is on medicines, checkups with doctors and
restrictive diet.
Implications for Marketers: The stage is characteristic of a widow/widower with lower income and
least shopping and expenses.

Modifications to the FLC: With changes in our society, we witness a change in the traditional Family
Life Cycle and the various stages through which it progressed earlier. There are various forms like
single; late marriages; divorced (with/without children); dual income, no kids (DINKS); live-ins etc.
Consumer researchers have thus brought about changes in the traditional FLC, so as to reflect changes in
the family and lifestyle arrangements. Broadly speaking households may be classified as family
households and non-family households (single individual or live-ins). Each of these family types has
varying features and characteristics, which also get exhibited in their buying patters and consumption
expenditure.

SOCIAL INFLUENCES
MEANING OF A SOCIAL CLASS
People may be placed on different positions on a continuum or a range; the continuum, in fact is divided
into specific social classes, or strata. Thus, people in a society may be placed in different strata based on
their status; each of these strata may be referred to as social class. Schiffman defines social class as “the
division of /members of a society into a hierarchy of distinct status classes, so that members of each
class have relatively the same status and members of all other classes have either more or less status”.

SOCIAL CLASS AND SOCIAL STATUS

Social class is measured in terms of status; a person belonging to a particular class is said to hold status
similar to members of that class. So social class is defined in terms of the amount of status the members
of a particular class relatively have, in comparison with members of other social classes. Broadly
speaking, the stratification into varied social classes, is done on the bases on three factors, viz., wealth
(economic assets) power (ability to exert influence over others) and prestige (recognition received).
However, marketing academicians and researchers, as well as consumer researchers, define status in
terms of demographical variables like income, occupation and education; in fact, the three are
interrelated and thus, used in conjunction to each other. While understanding buying patterns and
consumption behavior, it is necessary to understand the dynamics of social class. These are discussed as
follows:
i) Hierarchical structure: Social class is hierarchical in nature. The social-class categories are ranked
in a hierarchy that ranges from low to high. Based on education, occupation and income, the society is
divided into various ranks, such that people in a particular rank are similar to others in the same rank and
different across various ranks. So members of a particular social class view themselves as
a) having a status similar to others in their own class; and
b) having a status high or low than members of the higher or lower class. Based on the social class, they
view themselves equal to other (in the same social class), inferior to others (from higher social class),
and superior to others (from lower social class). The hierarchical structure holds relevance for a
marketer.
- First, marketers can use this as a basis to segment the market; the various strata provide a basis for
market segmentation.
- Two, when people are “other-directed” or susceptible to social influence, they would buy such
products and services and/or brands that people from their respective social classes purchase. This is
because they look for social approval. So they would purchase certain products and service offerings
and/or brands because they are used and favored by members of their own class.
- Third, people are class conscious and relate brands to their social class; thus, they would buy brands
which they feel relate to their “class”, and would avoid brands that they relate to “lowerclass" products.
There are social-class influences on the actual consumption of products.
-Fourth, the higher social class or the upper social class also acts as reference groups, for people in the
lower class. The latter aspire to emulate the former and desire buying products and brands which the
former buy.
ii) Similarity of people within a social class: People within a social class are similar to each other. This
similarity is not only witnessed in terms of their education, occupation and income, but also their
thinking, values, norms, attitudes, lifestyle and behavioral patterns. There is similarity among members
within each social class and dissimilarity with between social classes.

SOCIAL CLASS CATEGORIES AND LIFESTYLE PROFILES

Various classifications of social class have been proposed. Sociologists have divided the society into
distinct class divisions that number two, three, four, five, six and even nine class social structures.
Which of the classifications is most useful, depends upon the purpose of the researcher, and also on the
amount of detail that the research/study requires. Consumer researchers are interested in the social-class
structures primarily for the purpose of viewing them as potential markets for their products and service
offerings. For reasons of uniformity, researchers prefer to adopt a three class structure, and thereby
divide social classes into upper, middle and lower classes. Each social class is characterized by certain
lifestyle factors, in terms of shared beliefs, norms, attitudes, activities, interests and behavior. These are
similar within people of each class and different across social classes. In fact, they tend to distinguish
the members of a social class from the members of other social classes. However, it may be noted here
that people from the middle class may serve as aspirational groups or have a reference group appeal for
the lower; similarly people of the upper class may serve the same for people in the middle class. With
this impact, people in a class may possess beliefs, norms, attitudes, activities, interests and behavior that
are a hybrid of two or more classes.

SOCIAL CLASS MOBILITY

People in community can move from one strata to another. They can move either up or down the social
class; this mobility gets exhibited in two forms. One, individuals can move either up or down in social-
class standing across generations, i.e. while their parents may have belonged to one strata, they begin to
belong to another, either upper or lower. Two, such a transition may also be seen through one’s life, i.e.
as a person becomes independent and starts earning, he may belong to one class and as he progresses in
life, he may begin to belong to another. Upward mobility is more common and is generally the trend
these days. As mentioned above, the higher social classes often become aspirational and reference
groups for people of lower social status. Marketers realize this and use symbols of higher-class status
into their products, as also the advertisement, both in terms of content and context. It has also been seen
that that products and services that were traditionally within the realm of one social class, are now
getting into the realm of lower social classes. The influence of upper classes on lower, has also benefited
the “me-too” marketers, who come up with counterfeiters and cloners, to satisfy the lower classes; thus
we have “me-too” products for various products and/or brands.

LIFESTYLE ANALYSIS
Consumer behaviorists and researchers have studied lifestyles of the community and made
generalizations. Lifestyles have been assessed in terms of activities, interests and opinions (AIOs). They
have been measured as a general measure as well as a specific measure. In terms of marketing, the
general measure relates to the use of product and service offerings by people belonging to a social class.
As a specific measure they relate to brands, whether economy, middle-range or premium. Thus, lifestyle
analysis may be used as a general measure or as a specific measure. Marketers make use of general
lifestyles while making product decisions, whether related to the product itself, or price, place and
promotion. This would include assessment of new product opportunities, the segmentation, targeting and
positioning and all other decisions related to the marketing strategy. On the other hand, marketers make
use of specific lifestyles while making decisions related to a brand, be it its positioning, pricing and any
other decision related to brand management. A few of the commonly used Lifestyle Analysis tools are
illustrated in the table below. The more popular VALS and VALS 2 are explained

Lifestyle Framework Description

Values and Lifestyle Goal: To segment the consumers
Segments consumers into eight consumer segments, viz., innovators, thinkers,
believers, achievers, strivers, experiencers, makers and survivors.
Based on two dimensions, primary motivation and resources.
VALS 2 Goal: To segment the consumers, and measure consumer buying patterns
Segments consumers into eight consumer segments, viz., actualizers,
fulfillers, believers, achievers, strivers, experiencers, makers, and strugglers.
Based on two dimensions, self-orientation and resources
List of Values Goal: To assess the dominant values of a consumer
The scale is based on the premise that personal values are linked to
consumption; Personal values are regarded as measurable sets of variables
that are more closely related to motivations than demographic and
psychographic measures.
Measures nine values, viz., Sense of belonging, being well-respected,
security, fun and enjoyment, warm relationships with others, self-fulfillment,
excitement, sense of accomplishment, and self-respect.
Geo-Demographic Goal: To analyzes geographic regions and relate them to consumption
Analysis (PRIZM) behavior.
It is based on the premise that lifestyle, and thus consumption, is largely
driven by demographic factors
Identifies a total of 62 lifestyle clusters.
Yankelovich’s Goal: To consider the individual’s position on a set of core values with his or
MONITOR MindBase her life cycle stage.
The values identified include materialism, technology orientation, family
values, conservatism, cynicism versus optimism, social Interaction, and
activity level.
People are grouped into 8 high-level segments.

1. VALS (Values and Lifestyle): The VALS framework was developed over the 1970s by the California
based consulting firm, SRI International. It was in the year 1978 that it was finally proposed by Arnold
Mitchell. Derived from the theoretical base in the works of Maslow, the framework has been modified
and reworked for greater reliability and validity of findings. While the original psychographic inventory
was known as VALS, the modified version of the 1990s was called VALS 2. While VALS spoke of the
various types of consumer segments, the VALS 2 was specific to measurement of consumer buying
patterns. According to the proponents, consumers could be of three kinds, viz., need-directed (these are
consumers who make purchases based solely on their needs and wants), outer-directed (these are
consumers who make purchases based on their perceptions of the manner in which others view them),
and inner-directed (these are consumers who make purchases out of an inner need or inner beliefs). The
framework provides valuable inputs to marketers especially in areas of promotion strategy, viz., message
content and context, as well as choice of media. The VALS framework illustrates a system for grouping
of US adult consumers into various categories according to psychological and sociological criterion so
as to understand and predict their behavior in the purchase decision making process. Based on the
responses of the population to a questionnaire that has been referred to as the VALS questionnaire
(comprising 42 statements of agreement), the framework classifies consumers into eight distinct types or
segments or mindsets, using a specific set of psychological traits and key demographics that drive
consumer behavior. The framework essentially provides for psychographic segmentation, and is
illustrative of distinct consumer profiles or personas. It also helps design distinctive communication
styles for each of the targets. The VALS classifies individuals using two dimensions. There are two
main dimensions and based on these dimensions, the groups of people are arranged in a rectangle. The
two dimensions are primary motivation (the horizontal dimension) and resources (the vertical
dimension). The combination of these dimensions determines how a person will express himself or
herself in the marketplace as a consumer.

i) The horizontal dimension is symbolic of the primary motivation in terms of self-orientation; it

explains consumer attitudes and anticipates behavior. It includes three primary motivations, and
accordingly classifies the consumer population into three distinct types.
- Consumers are motivated by ideals; such people are actually driven by knowledge, beliefs and
principles, rather than by feelings, emotions or desire to conform or seek approval of others. The
principle oriented includes groups that are called Thinkers and Believers.
-Consumers are also motivated by achievement; such people are driven by demonstrating success to
others, and include groups that are called Achievers and Strivers.
-There are consumers that are driven by self-expression; such people have a desire for social or physical
activity, variety, and risk taking, and include groups known as Experiences and Makers. There are two
other types of groups, one at the top of the rectangle, and another at the bottom of the rectangle. At the
top of the rectangle exist what we refer to as Innovators, who have such high resources that they can
have any of the three primary motivations. At the bottom of the rectangle are those who are referred to
as the Survivors, who live self-satisfied and contented, well within their means without a strong primary
motivation of the three types listed above.

The vertical dimension classifies the population on the basis of the extent or degree to which they are
innovative and have resources like income, education, self-confidence, intelligence, leadership skills,
and energy. Apart from demographics like age, income, and education, consumer behavior is also
impacted by psycological traits. Psychological traits like energy, self-confidence, intellectualism,
novelty seeking, innovativeness, impulsiveness, leadership, and vanity also play an important role in
consumption behavior. Thus, demographic traits as well as psychogical traits determine an individual's
resources. The various levels of resources would enhance or constrain a person's expression of his or her
primary motivation. Thus, the vertical dimension reflects the ability of individuals to pursue their
dominant self orientation.

Individuals are placed in any one of eight psychographic segments, viz., innovators, thinkers, believers,
achievers, strivers, experiencers, makers and survivors. The VALS Framework may be elaborated upon
to explain each of the eight groups:
a) Innovators: Innovators are those consumers that are highest on resources and innovation. Because of
this they can exhibit all three primary motivations in varying degrees. Located at the top of the
rectangle, the innovators have the highest incomes, as also high self-esteem and creativity and can thus
choose out of any one or all of the self-orientations. They are successful and sophisticated. Image is
important to them as reflection of their taste, independence, personality and character. They are active
consumers, who often form a niche as their choices are aimed towards the tastes for upscale "finer things
in life."
b) Thinkers: Thinkers are those consumer groups that constitute a high-resource group that is motivated
by ideals. They are principle oriented, mature and responsible, well informed professionals who are
open to new ideas and change. They value order, knowledge, and responsibility, and actively seek out
information in the decision-making process. They are consumers who have high incomes, and are
practical and rational when it comes to purchase and consumption decision making. They look for
functionality and value in the products that they buy.
c) Believers: Believers comprise those consumers who are also motivated by ideals but are low on
resources. They are traditional, conservative and conventional people, who prefer not to experiment with
anything. They have modest incomes and so prefer not to experiment with their Page | 9 money and
consumption patterns. As consumers they are generally brand loyal and go in for purchases of
established brands.
d) Achievers: Achievers are those consumers who are a high resource group that is driven by
achievement. They are successful work oriented people, with goal oriented lifestyles, who also like to
exhibit and show-off their achievement to others. They remain commitment to both work and home.
Achievers are conservative by nature; yet they are active in the marketplace. Image is important to them
and they prefer established prestige brands, and/or products and services. They much purchases and also
show-off their purchases of prestige brands to people around them.
e) Strivers: Strivers are also driven by achievement but they are a low-resource group. While they have
values similar to achievers, they have fewer resources in terms of economic, social, and psychological
resources. While they have less money, they give a lot of emphasis to it. Style is very important to them,
and they prefer stylish products. They try to emulate the purchases of people with greater resources and
material wealth as they strive to emulate people whom they admire. They are also concerned about the
opinions and approvals of others. They are active consumers, and view shopping as an opportunity to
show to others their ability to buy. Strivers are also fun loving and lack skills and focus on moving
ahead in job and career.
f) Experiencers: Experiencers are a high resource consumer group who are motivated by self
expression. Age-wise, they are regarded as the youngest of all the consumer segments, who are
energetic, enthusiastic and impulsive, something that rightly gets reflected in their activities, which
range from physical exercise to social activities. Being high on resources they spend heavily on
shopping of clothes, fast-foods, entertainment and hobbies. They like taking risks and quickly become
excited about the purchase of new products and services.
g) Makers: These are consumer groups that are driven by self expression, but are low on resources.
They remain confined to work and family, and have little interest outside. They value self-sufficiency
and possess the skill and energy to work successfully. As consumers they are not impressed by articles
of material possession. They are practical by nature and appreciate products that have practical or
functional purpose. They are also skeptical of new products and services.
h) Survivors: Located at the bottom of the rectangle, survivors are consumer groups that fall lowest in
terms of resources. They have too few resources to be included in any of the consumer self-orientations
and they are thus located below the rectangle. Age-wise they are oldest of all the segments. They believe
that the world would change too rapidly, and thus they are highly conservative and narrow in focus. As
they are low on resources, they are very cautious as consumers; they are comfortable with the familiar
and prefer to remain brand-loyal.

THE MEASUREMENT OF A SOCIAL CLASS

The measurement of social class as also the techniques to be used, have been a subject of debate.
Researchers have not been able to agree on the methodology that needs to be used for measuring social
class. This is because i) varied classifications in form and number have been proposed; ii) there is lack
of clarity with respect to the underlying dynamics and dimensions of social class. A wide variety of tools
and techniques have been used to measure social class. Broadly speaking, the various techniques that are
used are subjective measures, reputational measures, and objective measures of social class.
- Subjective Measures: The subjective approach to measure social class requires a self-assessment on the
part of the individual who is asked to specify the class to which he belongs. In other words, the
individual self-perceives his social class in response to a question like, “Which one of the following best
describes your social class: the lower class, the middle class, or the upper class?” Thus, the person is
asked to estimate and specify his own social-class position. The person answers on the basis of his
feeling of belongingness and identification with others, as well as class consciousness. However, the
problem with this approach is that it leads to a lot of responses that fall in the mid-range (or the middle
class). People are often conscious or shy or may even refrain from giving the true response and have a
safe say by opting for the middle class, when they should have been correctly classified as belonging to
either the lower or upper class.

- Reputational Measures: The reputational measure to measure social class, requires independent
informants from the society, to identify and make comments related to the social class membership of
people in the community. Sociological researchers as also market researchers select informants within
the community, and ask them to assess and make judgment about the class membership of other people
in the community. Much remains to the discretion of the researcher who is left with the final task of
assigning people in the community to the various class categories based on his knowledge, expertise and
experience. The methods lacks reliability and has proved to be impractical, primarily in studies related
to marketing and consumer behavior. Unlike, sociology, the consumption pattern and resultant behavior
may not always be assessed correctly by observers.

- Objective Measures: Objective measures make use of demographic and particularly socioeconomic
variables for assessing the social class of individuals. The researchers use questionnaires that are
administered to people in the community. Such questionnaires directly or indirectly help in determining
their social class. Questions relate to their address (so as to determine place of residence), and
particularly to the more important variables like occupation, income and education. Such demographic
and socioeconomic indicators help determine the social-class membership. The objective measures of
social class may be divided into two categories, viz., single variable indexes and composite-variable
indexes.
a) Single-Variable Indexes: As the term denotes, single variable indexes, are those that use one
socioeconomic variable to assess social-class membership of a person. For consumer behavior, the
commonly used indexes are i) education; ii) occupation; and iii) income. Certain types of products and
their usage is related to occupation and marketers define the target market on the basis of occupation, for
example, for publishers, professors and teachers via missionary selling act as viable targets. Education
and occupation also determine the income level of a person. In fact, all these three indexes are used to
determine the social class standing of a person. Another variable that indirectly determines the social
class membership is the address of residence and the neighbourhood that one is a part of
b) Composite-Variable Indexes: The composite-variable indexes use a combination of demographic
and socioeconomic factors to assess and measure the social class of an individual. As indexes, they are
more reliable for consumer researchers as they better reflect and assess the dynamics and complexity of
social class than single-variable indexes. For example, education, occupation and income are taken
together to have reliable and valid findings with respect to the social class that one belongs to. The three
variables have an impact on the lifestyle of individuals, and thus when put together, are useful in
assessment of social class.

RELEVANCE OF SOCIAL CLASS FOR A MARKETER

The demographic and psychographic traits that have a bearing on lifestyle, and/or social class hold great
relevance for a marketer. The analysis of the social class helps profile consumers into segments that a
marketer could take advantage off through formulation of an appropriate marketing strategy. While a
marketer needs to cater to each of the segments in a different manner, he could design his 4Ps in a
manner that leads to maximum benefit for himself as well as for the consumer. It is noteworthy that each
of these segments would have a different set of attitudes, values, likes/dislikes and consumption
patterns. They would even vary in terms of their priorities when it comes to purchase of products and
services, pursuance of hobbies and interests and broader lifestyles. While people like to conform to
others’ in their social class, they also like to emulate those in the higher class. They aspire to move up
the social ladder; in fact, social mobility is a common phenomenon these days. The following section
discusses real life applications of social class, when it comes to products and services, hobbies and
interests and general spending and saving patterns.

a) Products and services: The choice of products and services and/or brands depends hugely upon the
lifestyle and social class. Members belonging to a social class would go in for such products and
services and/or brands which are used by others in that class. This is due to the fact that they seek social
approval and want to purchase what others purchase and use what other use. Upper class consumers
favor fashion and sophistication, and this reflects itself in their purchase of luxurious and prestige goods
and branded products. On the other hand the middle class takes into account value for money and looks
for benefits that can be derived from a purchase; they go for good, moderately priced goods and are less
conscious of branded goods. The lower class goes for goods of necessity. It is also true that people in a
social class also desire to behave like people in the upper class. Members of the upper class act as an
aspirational reference group, whom those in the lower class like to emulate. This creates a segment for
“me-too” products, and fives opportunity to the market followers, i.e. the counterfeiters, cloners,
imitators and adapters. Self-image also has a role to play for certain kinds of products and services.
People buy clothes, dresses and accessories based on their actual self image and often on the desired self
image. Self-images reflect perceptions of one’s own social-class membership. Social class impacts not
only what the consumers buy, but also from where they buy. They visit shops, markets and malls which
are frequented by members of their social class. They avoid stores that have an image very different
from their own or their social class. Thus, shops, markets and malls are located and designed keeping in
view the segment that frequents them. Decisions on the merchandise and brand assortment, pricing and
discounts and special offers, store design layout, ambience as well as the POP stimuli are all taken after
taking into consideration the target segment and the social class. With the new generation aspiring
quicker social mobility, marketers need to be very careful. A difference is also seen in terms of
receptivity of the segments with respect to marketing communication and promotion; this difference
pertains to the message design but primarily on the channel or media used for communication. The
upper classes are receptive to messages flashed on i) select news channels and newspapers that are
primarily contain less political and more financial news; ii) special interest magazines like business,
fashion, interior design etc.

b) Hobbies and Interest: Social class also has a bearing on the kinds of hobbies and interest as well as
recreational activities that a person pursues. As mentioned above, the upper class consumers have
greater resources at hand; they favor fashion, style and sophistication. They go to clubs and play indoor
games like bridge and roulette, and outdoor games like golf, tennis and squash. They read books, watch
theater, go to concerts, and visit museums and art exhibitions. On the other hand, middle and lower class
consumers, watch television serials; they also like to watch sports on TV. The middle class women
pursue hobbies like needlecraft and they also have social (kitty) parties. Their primary activities include
cooking and looking after the home. Men involve themselves more into earning money.

c) Orientation towards saving and spending patterns: Social class membership also affects the
consumers’ attitudes towards saving and spending patterns. With the upper class consumers better off in
terms of finances than the middle and lower class consumers, their saving and spending patterns are
futuristic in approach. They invest in stocks and real estate, as well as luxurious and prestige goods.
While making purchases, they pay through the credit cards instead of the usual cash, purely for reasons
of a convenient substitute of cash. Middle class consumers are interested in making rational functional
approaches. They enter into purchase activity only when they have enough money to buy what they
desire. They are generally conservative by nature and prefer paying in cash. However, today things are
changing and we do find an increasing trend towards purchases made on credit and payments made on
monthly installments. Lastly, lower class consumers have meager resources and buy when necessary; if
they save, they do so for the rainy day. While the upper classes use the credit card out of convenience,
the middle class use it out of necessity; while the former clear their credit card bills every month, the
middle class look for installments.

CULTURE AND SUB-CULTURE

Culture may be defined as the “personality of a society”. It is broad and all pervasive in nature, inclusive
of language, customs and traditions, norms and laws, religion, art and music, etc. It also includes the
interests of people, the work practices and orientations, as also their attitudes towards general and
specific issues. Culture delineates precisely, the do’s and dont’s of a society, and specifies all that is
acceptable and all that is not. It is reflective of values and beliefs that are widely accepted by members
of a society. The members of a society subscribe to the various values, beliefs and norms, and this gives
strength to a society’s culture. This does not imply that cultures are truly rigid; in fact, they evolve and
adapt to changing situations and times. Culture is a society's personality, unique in itself and
differentiated from others; it is further divided into various sub-cultures. Culture is also trans-
generational, and is passed on from one generation to another. A study on our culture requires an
elaborate and detailed inquiry into the very character and personality of the society that we live in. The
culture of a society also has a bearing on buying patterns and consumption behavior. In terms of
consumer behavior, Schiffman defines culture as “the sum total of learned beliefs, values, and customs
that serve to direct the consumer behavior of members of a particular society”. The kinds of products
and services and/or brands that consumers’ buy and use, are all based on their cultures and sub-cultures.
For example, the food they eat and the kinds of clothes they buy and wear, are all impacted by their
culture, their customs, traditions, norms and values.

CHARACTERISTICS OF CULTURE
Culture and its impact on consumption behavior can be better explained by understanding the nature and
characteristics of culture:
a) Culture is natural and permeates naturally into the social system. Its inbreds into the members of
a social system and is all-pervasive. It influences the manner in which a person behaves, as consciously
or sub-consciously, we are all governed by culture. Not only do people use their values and beliefs to
govern their behavior, but they also except that others’ behavior would also be similar and consistent (as
culture is shared). Culture unites the members of a social system. In terms of consumer behavior, the
kinds of food we buy and eat or the clothes that we purchase and wear, are all governed by the
socialization process. Similar is with respect to other purchases that we make. Culture encompasses the
general and specific patterns of consumption behavior.

b) Culture helps in satisfaction of needs. In fact, it exists as it helps satisfy the needs of people.
Beliefs, values, customs and tradition, help govern the social system, and specify the manner in which
people in a social system should behave; they delineate the do’s and don’t’s, and thereby create
boundaries of acceptable behavior in the social system. However, such values, beliefs, customs and
traditions continue to exist as long as they meet the needs of the people in the society. That is why
culture evolves with passage of time. As the needs of the people evolve, beliefs, values, customs and
tradition also undergo change so as to meet and match with newer needs and wants. For example, in
earlier times, people preferred eating their whole meals at home. In fact, eating out was considered
unhealthy and undesirable. With a change in society, and the emergence of dual income households,
people have begun eating out of home; the fast food culture is in. This has given a boost to the fast food
and restaurant industry. Thus, we see that when a value system fails to satisfy the members of a social
system, it is adapted, changed and/or modified to suit newer social patterns and trends. Marketers must
be conscious of newly developed and embraced values, customs and traditions, so as to be able to take
advantage of the situation. For example, lately developed consciousness of people towards i) fashion,
has given boost to the apparel and accessories business; ii) fitness, has given boost to the gymnasium
and sports business; iii) health, has given a boost to natural products like fruit juices, honey, aloe vera,
etc.
c) Culture is not inborn; it is learnt as a result of the socialization process. There occurs a
socialization process right from one’s childhood, a process that continues throughout life. Culture is
imparted by this socialization process. This learning of culture could be of two kinds; viz., enculturation
and acculturation. The process of learning one's native culture is known as enculturation, while the
process of learning a new or a foreign culture is known as acculturation. We are impacted by our family
(family of orientation and family of procreation), as well as our friends throughout our life. People learn
from family and friends about what are acceptable and what is not in terms of our values and beliefs.
Cultural learning could take place in three forms, viz., formal learning, informal learning and technical
learning.
-formal learning: when a child is taught how to behave by family, viz., grandparents, parents and
siblings; they tell him about the right’s and wrong’s in behavior.
-informal learning: when the child learns by imitating the behavior of others, be it members in the
family, or friends, or celebrities, or characters.
-technical learning: when the child is taught how to behave in a formal educational environment by a
teacher. As consumers, it is through our culture learning that we are taught what is regarded as a
desirable purchase and what is not. Similar is with respect to brands. Our perception about brands is
influenced
i) informally by views and opinions from family, friends, and colleagues, and
ii) formally by the marketer, the dealer and the sales people. Thus, both general and specific
consumption behavior is indicative of the culture that we live in. The kind of products/services
consumers buy are ultimately determined by culture as well. For example, in certain cultures, eating
pork and beef is a taboo; thus, when McDonalds came to India, they had to introduce the chicken burger,
instead of the normal beef burger sold in the US. They could not disregard the vegetarian population of
the country and so introduced the veg-tikki burger. MNC’s who desire to enter foreign markets, and
wish to introduce their products and services there, should carefully study and understand the cultures of
such countries. They need to go through an elaborate process of acculturation so that they can
understand the inhabitants of such cultures and their needs, so as to assess whether such potential
markets could be profitable target segments. They should design the product and service offerings
(including the 4Ps), in line with the culture so as to be bale to gain quicker acceptance. The colors,
language and symbols, should all be kept in mind. The marketer could use all the three forms of cultural
learning through designing appropriate promotional messages and using an appropriate channel.
d) Culture is shared. It is accepted and imbibed by all the members of the social system. In fact, it ties
together the people that form a social system. Social institutions (family), educational institutions
(schools, colleges and universities), political institutions (law, public policy, leaders and government),
and religious institutions (like places of worship, artifacts, and religious leaders) etc., all help in
transmitting this culture to the members of the society. The mass media, print and audio-visual, also has
a role to play in the transmitting of culture. Also today, cultures and sub-cultures are shared by people
within, and outside. Needless to say, the mass media has a big role to play. With the various satellite
channels vying for viewer ship across India, and higher TRP ratings, the various soaps and serials reflect
cultures of all kinds; they portray all kinds of families, all types of cultures and sub-cultures. We get to
see stories on families from Gujarati, Bengali, Punjabi and Tamilian cultures; the dressing patterns, the
favorite dishes, the customs and rituals etc. With the various national and vernacular channels that we
have in India, we have begun to share sub-cultures too. Subcultures are no longer restricted to
geographical boundaries today. As consumers, we are also impacted most by such institutions, and
primarily by mass media. As discussed in the above paragraph, with the advent of satellite channels,
there is growing awareness of other cultures and sub-cultures. An important role on spread of culture is
also through advertisements. Today there is demand for dhokla and khakra (Gujarati food) in North
India, or mishti doi and hilsa fish (Bengali food) in South India. This trend is also increasing because
people are crossing borders of their states and moving elsewhere for jobs and assignments.
e) Culture is dynamic in nature, and evolves constantly with time. It adapts itself to the changing
environment. As said above, values, beliefs, customs and traditions continue to exist as long as they
satisfy the needs and wants of the people. Once they cease to satisfy people’s needs, they change. Thus,
culture changes and adapts to the environment. Marketers need to continually assess the environment so
as to identify changing need patterns, and change/modify/adapt existing products and services, and even
come up with new ones. One such example, i.e. dual income households and the need for eating out,
resulting in demand for fast food and restaurants, has already been discussed above. With changes in
culture, we can also witness its impact on the buying roles. The marketers have to identify the initiators,
influencers, deciders, buyers and users, and approach them accordingly, either personally or
impersonally via media. Marketers who continually assess the environment can identify opportunities
and exploit them to their advantage.

COMPONENTS OF CULTURE
Culture is reflected through the various components that it comprises, viz., values, language, myths,
customs, rituals and laws. These are briefly explained as follows:
- Values: Values are the beliefs and ideals shared by the people of a society, for which they have great
respect and regard. They could assume both positive (do’s) and negative (dont’s) connotations, and are
indicative of appropriate thoughts, feelings and acts of behavior.
- Language: Man is a social animal and needs to communicate with others. Language is used as a
means to communicate with people in a social set up. It is the common language that binds together the
people in a social structure.
- Myths: Myths are legendary folktales and stories that describe events and occurrences, and teach
values to society. They are imaginary and fictitious, and comprise characters that are gods, heroes and
common men, ultimately aimed at giving lessons to the people, with respect to the causes and effects,
good and bad, right and wrong, etc. Myths describe the values that members of a social structure should
share.
- Customs: Customs are habitual practices that formulate the established way of doing things and reflect
culturally accepted patterns of behavior. They reflect practices that have permanent continuance and are
so long established that they have the force of law; in other words they are conventions. People in a
social system follow such practices collectively, and the habitual activity gets transmitted from one
generation to another.
- Rituals: Rituals are prescribed processes and procedures for conduct of religious or social rites. They
are established rites, ceremonies and proceedings that are symbolic in nature. Rituals are collective in
nature, comprising many patterns of behavior that are interdependent to each other.
- Laws: Laws are principles, rules and regulations that are formulated/sanctioned by an authority (ruler,
government, constitution etc.), and supported/protected by judicial authority. Their basis can actually be
found in the society’s values, customs, and rituals. Laws are universally applicable across people in a
society/country. They are written collection of rules and regulations to be adhered to by the people, and
non-adherence to which would lead to legal action from the judiciary.

MEASUREMENT OF CULTURE
Culture can be measured through use of many techniques, some of which are i) Projective Tests; ii)
Attitude measurement tests and techniques; iii) Content analysis; iv) Consumer fieldwork; and v) Value
measurement instruments. These techniques are used to study and assess cultural patterns, changes and
trends.
i) Projective Tests: Projective tests can be traced to the psychoanalytic psychology, which argue that
human beings have conscious and unconscious attitudes, motivations and personalities that are hidden
and unknown from conscious awareness. The projective tests attempt to measure underlying traits, fears,
anxieties and attitudes, motivations and personalities. They help reveal people’s orientations towards the
cultural values, myths, customs, traditions and rituals. The participants are shown pictures, images,
cartoons and characters, inkblots and incomplete sentences/paragraphs to understand, interpret and
comprehend them. The participants are asked to give as responses all that first comes into their minds.
Gestures and body language, tone of voice and other reactions are also noted. The assumption behind
use of such tests is that one tends to project and interpret to these ambiguous stimuli from ones’
subconsciousness. Such tests are used to study motivation and personality. The two commonly used tests
are the Rorschach Inkblot Test and the Thematic Apperception Test (TAT).
ii) Attitude measurement tests and techniques: Attitude measurement tests and techniques are used to
measure attitudes of people towards persons, objects, and situations. They reflect people’s attitudes and
orientations towards the cultural values, myths, customs, traditions and rituals.
iii) Content analysis: Content analysis focuses on the examination of verbal, written, nonverbal and
pictorial compositions/communication. The content analysis helps reveal and explain the content of
messages and the varying interpretations. Assessment about the society, and its culture as well as
evolutionary socio-cultural changes can be gauged through the content of verbal, written, non-verbal and
pictorial compositions/communication.
iv) Consumer fieldwork: Fieldwork may be conducted on consumers, so as to observe their behavior,
and draw generalizations about the values, myths, beliefs, customs, traditions and rituals. Such
generalizations are drawn on observable in store shopping behavior. Verbal and non-verbal body
language are also observed and recorded. Sometimes, instead of being passive observers, the researchers
may assume active roles and interact with the consumers (participants) as salespersons. Interviews and
focus group sessions may also be used.
v) Value measurement instruments: Researchers today, are increasingly making use of value
measurement instruments. These are scales that measure values by means of a questionnaire.
Participants are asked to give their opinion on varied issues like peace, freedom and independence,
comfort and convenience, ambition and success etc. Through interpretation of their responses and the
observation of behavior, researchers can infer the dominant or underlying values of the society. Such
values would influence general and specific consumption patterns and buying behavior. Commonly used
value measurement instruments are the Rokeach Value Survey, the List of Values (LOV), and the
Values and Lifestyles—VALS.

MEANING OF SUB-CULTURE
While culture is defined as the “personality of a society”, (inclusive of language, customs and traditions,
norms and laws, religion, art and music, etc), it is not entirely homogenous in nature. Not all people
within a social system, share the same language, religion, customs and traditions. Every society is
composed of smaller sub-units, homogenous within, and heterogeneous outside, all of which when put
together make a complex society. Such sub-units or sub-groups are known as sub-cultures; people
within sub-cultures possess distinctive sets of values, beliefs, customs and traditions etc. The members
of a subculture possess such values and beliefs, as also customs and traditions that set them apart from
people belonging to other sub-cultures. For example, while we are all Indians, and our culture is Indian
(with a common national language, Hindi, and common festivals like Diwali), North Indians are
different from South Indians. While North Indians, celebrate Lohri, as a harvest festival in January, the
South Indians celebrate Pongal as their harvest festival at the same time. In other words, people within
smaller units share the same language, religion, customs and traditions; and, this would be different in
smaller or larger magnitude to people in other sub-units. A single culture can be broken up into various
consumer subcultures. A subculture can be defined as a culture that is not dominant in its society. As
consumers from various subcultures, we are different to each other. We have varying values and beliefs,
customs and traditions, etc. These get reflected in our perspectives and orientations that influence our
purchase patterns and consumption behavior. That is why a study of sub-culture becomes important for a
marketer.

TYPES OF SUB-CULTURE
Based on the varying criteria, there can be different types of sub-cultures. The important subcultural
categories are nationality, geographical location, religion, race and caste, gender and age. From a
marketing perspective, these could also be discussed as market segments, which need to be studied and
assessed carefully before deciding on a product/service offering and formulating a marketing mix for a
particular segment(s).
- Nationality: Sub-cultures could be based on nationality. While we are all Asians, we are distinct with
respect to culture, and are different in terms of language, customs and traditions etc. Thus, we are
classified as Indians, Burmese, Nepalese, Pakistani etc.
- Geographical location: Within a country, we could be different across geography, climatic conditions,
regions and terrains, and density of population. This is more so in cases where the country is large and
borders spread across a huge population occupying a vast territory. People tend to develop regional
affinity and identification, and this gets reflected in the food they eat, clothes they wear, interests they
pursue, etc. They constitute as distinct sub-cultures and people across such sub-cultures are different to
each other. For example, we can be classified as North Indians and South Indians. As consumers, our
needs are different and would translate into various wants, for example, i) differences in food habits, and
demand for poori-sabji, paratha, idli-vada etc.; or ii) differences in clothing, and demand for cottons,
woolens and silk.
- Religion: People also exhibit differences when it comes to the religions that they belong to. Hindus,
Muslims, Christians, Sikhs, Parsis etc. are all different from one another and have different values and
beliefs, customs and traditions etc. As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders, scriptures, and holy books. In fact, many
products/services are symbolically and ritualistically associated with religion. For example, as per Islam,
non-vegetarian food must be “Halal”, and this itself comprises a huge segment that marketers across
national boundaries are catering to.
- Race and caste: Culture and its components also vary across race and caste. Jats, Jaats, Rajputs,
Pathans and Yadavs are all different from one another. Such racial sub-cultures also impact buying
behavior and consumption patterns.
- Gender: Because gender roles have an impact on acts of behavior, gender constitutes an important
cultural sub-group. Males and females across all cultures are assigned different traits and characteristics
that make them masculine and feminine. They also perform different roles in society and are two distinct
sub-groups. It is true that gender roles have got blurred, and both men and women are performing such
roles that they did not perform earlier. Product usage is common to both man and woman; for example, a
man shown as using a LG washing machine or making Act II popcorn. Similarly products like shavers
and razors exclusive to usage by men, are also being used by women (Gillette thus introduced a razor for
women). All this has brought about a big socio-economic change and led to cultural transformation. The
values espoused by the generation of today is much different to the one espoused by the previous
generation. The pace of change has been further accelerated with households no longer being single
income households, but turned to dual-income households. The role of women is no longer restricted to
bearing children and managing the home. Women have started working outside, and are contributing to
household income. This has impacted consumer needs and wants as also the priorities. The impact is
evinced on consumption behavior, where the ‘decider’ role is no longer confined to a single person, i.e.
the man of the family. Today buying decisions are jointly taken by husband and wife.
- Age: Infants, kids, teenagers and adolescents, adults and the aged, may all be looked up as distinct sub-
groups. They have different values and beliefs, and all this impacts upon their priorities in life. Daily
lifestyles, activities and interests, fashion and accessories, food and diet, etc. receive varying priorities
across the various sub-groups. For example, an aged person would prioritize health and go in for
nutritious home food as opposed to young man who would prioritize work and go in for fast food. Today
we see a rising trend amongst kids, adolescents and the young towards junk food, and they constitute a
lucrative segment for restaurants providing fast food.

EXPOSURE TO OTHER CULTURES

As a result of rapid advancement and all-round development, we find ourselves exposed to people from
various cultures. There has been a great deal of opening up, and the society has been impacted on all
fronts, be it social, economic, cultural or technological. The cultural fabric has undergone a
transformation and we see changes in our values and beliefs, customs and traditions, etc. As consumers
also, we have been exposed to other cultures. We have inculcated/adopted values and beliefs,
perspectives and orientations that are much different to what existed earlier. The past decade
particularly, has seen changes with respect to what we eat, what we wear and how we behave. All this
has impacted our buying patterns and consumption behavior. There have been changes in demand with
respect to our food and diet, clothing and lifestyles, etc. It is important for a marketer to give
consideration to three major issues;
i) how do consumers in one culture get exposed to good/services being used by people of other cultures;
ii) how should a marketer design/adapt his 4Ps so as to be accepted by people influenced by newer
cultures (if he is serving in the home market only);
iii) how should a marketer design/adapt his 4Ps so as to accepted by people of other cultures (in foreign
markets).

Generally speaking, as consumers we are exposed to foreign cultures either

i) through ones’ own initiatives; or
ii) through the marketers’s efforts. Ultimately both these means of exposure lead to cultural transfer and
amalgamation.
i) People get exposed and gradually influenced to newer cultures when they travel abroad for leisure; or
live abroad while on foreign assignments; or work with people of foreign cultures while in their native
country. They also get exposed through media, i.e. through books and magazines, movies and films,
drama and theater, etc.
ii) Consumers also get influenced through marketer’s efforts, who foresee potential and expand their
markets by launching their products and services into newer geographical segments (often across
national borders). They go in for promotional measures that lead to awareness and develop consumer
interest for trial and adoption of newer products and services.

CROSS-CULTURAL CONSUMER ANALYSIS

The marketer needs to go in for a study of the socio-cultural fabric of the respective country where he
intends to enter and serve. He needs to have an understanding of the consumption pattern and the
consumption behavior across people from different cultures. He needs to assess the needs and wants as
well as priorities and orientations of the people that he desires to serve. Schiffman defines cross cultural
consumer analysis as “the effort to determine to what extent the consumers of two or more nations are
similar or different.” The marketer must understand how consumers in targeted countries are similar and
dissimilar from each other. It is important for a marketer to have this understanding as it helps him
assess the social and cultural similarities and dissimilarities so that he can design appropriate marketing
programs and strategies for such segment(s).

APPLICATION OF CROSS CULTURE CONSUMER ANALYSIS: RELEVANCE FOR

MARKETERS
A cross-cultural consumer analysis helps the marketer assess the market potential and customer reaction
for his product and service offering. People’s values and beliefs, customs and traditions, as also
perspectives and orientations have a bearing on customer’s needs, wants and priorities, finally
translating into their desire for product and service offerings. These would vary across nations and
cultures, and marketers must thus go through an acculturation process. As has been defined earlier,
acculturation is defined as the process of learning a new or a foreign culture. It is essential that they
learn about the culture of foreign countries, what their needs and wants are, how they prioritize them,
how they form attitudes and opinions, etc. Thus, before taking decisions with respect to entering foreign
cultures, and the manner in which they should be served, a marketer should conduct a cross-cultural
consumer analysis. Such an analysis provides a marketer with inputs as to how he should be modifying
his 4Ps so as to elicit quick adoption and diffusion of his product and service offering. Every component
of culture should be carefully studied and a marketing program designed accordingly.
- Product names or brands should not have double meanings; they should not be insensitive in any
manner, and they should not hurt the sentiments of people in the country where the marketer is planning
to enter.
- They should be easy to remember, recall and pronounce. Else marketers should make sure that they
help consumers remember and pronounce such names. For example, when Perfetti Van Melle India
launched their candy Alpenliebe, they designed an advertisement that had a jingle that helped consumers
pronounce the name.
- They should be distinct and not duplicate names already existing in the foreign country. - The marketer
must make sure that the product or service offering appeals to the needs and wants of people from
foreign cultures.
- He must make sure that he keeps in mind local customs and traditions while formulating the strategy.
- While taking decisions on packaging and labeling as also design of advertisements, he must make sure
of colors and symbols. Colors and symbols have varied meanings and connotations. The marketer
should be careful that he should not be insensitive to people of foreign cultures.
- Marketers must make sure that they employ local (foreign) people for sales and marketing in foreign
cultures. They should avoid sending their own people as the latter would take time to be acculturated. It
would be better if local people are hired who would know the language, customs, tradition etc, and with
whom the customers would be more comfortable. They would also be in a position to make localized
decisions. Through a cross-cultural analysis, a marketer would get inputs into how the foreign culture is
different to his native culture. When customers across two or more countries are similar, the marketer
can afford to have a similar marketing program; in case they are different, he would have to adapt his
4Ps and design a separate individualized marketing strategy for the foreign country. The relevance of a
cross cultural analysis for a marketer is summarized as follows:
- A cross-cultural consumer analysis helps predict customer reaction to a product and service offering;
the marketer would get to assess the market potential and assess the viability of a segment(s).
- The marketer would get inputs into how the foreign culture is different to his native culture. This
would help him decide whether to have a marketing program similar to the one that is present in the
native country or to have a program that is ‘individualized’ to the foreign country.
- It would help him to position his product/service offering appropriately, keeping in mind the values
and beliefs, customs and traditions, attitudes, opinions and lifestyles.
- It provides a marketer with inputs as to how he should be modifying his 4Ps so as to elicit quick
adoption and diffusion of his product and service offering. This is particularly relevant for products that
would be new to a foreign culture, and where the consumers would have to be taught about their
importance and usage. The marketer would have to educate the consumers about such a product/service
offering (cognition), create a favorable opinion and positive feelings (affect), and convince adoption and
purchase (behavior).

STRATEGIES FOR MULTINATIONAL COMPANIES

The most important decision that multinational companies need to take is with respect to the
international market segment(s) that they would be catering to, i.e. whether they would be making their
product and service offerings available worldwide to all countries or they would be making it available
only to certain select countries in the total international market. The decision would depend on the basis
of the i) size of the market; ii) growth and attractiveness of the market; iii) stability in the market; iv)
politico-legal environment and the accessibility of the countries involved. Another major decision that
the marketer needs to take is whether to pursue a standardized identical global strategy for all
countries/cultures or to go in for a customized localized marketing strategy unique to a country/culture.
The choice ranges across a continuum, where on one end, they market identical product and service
offerings across cultures, and on the other end they market customized offerings unique to various
cultures. With advances in technology, the world is getting closer. Cultures are amalgamating and
markets are getting similar. In this scenario, marketers believe that they can offer a standardized
marketing mix, similar to the one that they offer in the native country. On the other hand, there are
marketers who believe that there exist differences across culture and consumers across nations need to
be served with product/service offerings that are adapted to the values, beliefs, customs and traditions.
Thus, marketers need to take a decision as to whether they should go in for need benefit segmentation
based on common needs and values (the former case) or go in for geographical segmentation based on
national boundaries (the latter case). In any case, an understanding of culture(s) becomes essential. This
would help them formulate appropriate marketing strategies, particularly with respect to positioning and
communication. Marketers need to have a proper understanding of the various components that
constitute culture, be it values and beliefs, language, myths, customs and traditions, rituals and laws.
Differences across cultures lead to variations in consumer behavior. Thus, as companies decide to
expand their markets to foreign territories, they need to follow one of the two strategies, viz.:

i) They could offer the product/service offerings with the same marketing mix (standardized and global),
as in their native country. Such a strategy is known as an undifferentiated strategy, i.e., one marketing
strategy for all countries. Such a global strategy maintains the same product name; the features,
attributes and other ingredients also remain the same (maybe with slight modifications); so do the other
Ps. A large number of companies prefer a “world brand”, i.e. products and service offerings are
positioned, designed, priced, promoted and sold all over the world in the manner that is similar to the
country of origin. The approach leads to a worldwide brand name, company image, recognition and
reputation. Examples of such brands are IBM, Sony, etc.
ii) They could adapt the product/service offerings in the foreign country. This would present a more
“localized offering” where the and service offerings are positioned, designed, promoted and sold in a
manner that is distinctive and specific to foreign countries and cultures. This strategy is referred to as
adaptive global marketing or a “localized marketing strategy” where the objective is to meet the local
needs in the most effective manner. The strategy has also been termed concentrated or differentiated
marketing. The marketer offers differentiated marketing strategies for each country, with changes in
product and /or brand name, as also product features, attributes and other ingredients as also the other
Ps. The marketer would need to take into account differences in consumer behavior. McDonalds is a
perfect example; when they entered India, they adapted their product offering by offering chicken
burgers instead of the beef and pork (as consumption of beef and pork is a taboo with Hindus and
Muslims). Further they introduced the McTikki Aloo Burger for vegetarians; they positioned themselves
a “family” restaurant keeping in line with the Indian family concept. Companies that do not localize
their offerings may find penetration into foreign cultures a difficult exercise. An example that can be
quoted is Kellogg’s Breakfast Cereal. They found it difficult to penetrate the Indian market as the very
concept of cold milk at breakfast was against the traditional Indian belief (where hot milk was preferred
especially at breakfast, and cold milk was regarded as unhealthy). It is thus concluded that a “world
brand” may not always be favored. The marketer needs to adapt his product/service offerings.
Companies like Unilever, Nestle, Proctor and Gamble follow a mixed approach. They have standardized
offerings in terms of their brands, but they blend and adapt their 4Ps to suit the needs of the local
culture. Their offerings are generally standardized but the implementation strategy “local”. Thus, they
introduce under the same family brand name, soaps for different kinds of skin, shampoo for different
kinds of hair (depending on the skin and hair types across countries and cultures), and detergents for
different water types (hard water or soft water). This is where study of cross cultures becomes essential
so as to identify differences and similarities across nations. A marketer has to go through the process of
acculturation. Marketers often face the challenge of dealing effectively with marketer in diverse
cultures. This is more specific to decisions related to product and service offerings, and the
communication strategy. Researchers have studied the issue and proposed changes in the product and
service offering as also the communication programmes. Various frameworks have been proposed that
determine the degree to which marketing and advertising efforts should be standardized (globalized) or
localized. A few of such frameworks are discussed as follows:

I A product recognition continuum has been proposed by researchers, that explains produce awareness
and recognition amongst consumers of foreign cultures. The five-stage continuum explains product
recognition from mere awareness of a foreign brand amongst consumers in a local market to a complete
global identification of the brand.
Stage 1: In stage one, the local consumers are aware of a brand that is “foreign and alien.” They have
heard or read about this “foreign” brand, and may find the product/service offering as also the brand to
be desirable. However, it is unavailable to them as it is not sold in their country. For example,
Lamborghini and Porsche.
Stage 2: In stage two, the “foreign” brand is available in the local market. Local consumers are aware of
the brand being “foreign” and made in a particular country. However, consumers have their own
perceptions with respect to foreign brands which may be favorable or unfavorable. For example, BMW
and Mercedes.
Stage 3: In stage three, the “foreign” or “imported” brand is widely accepted and accorded “national
status”. While it national origin is known, it does not affect their purchase choice. For example, Suzuki
and Samsung.
Stage 4: In stage four, the foreign brand is converted partly or wholly into a domestic brand. The local
consumers no longer consider it to be a foreign brand and perceive it as a local brand. While its foreign
origin may be remembered, the brand has been adopted so very well that is “naturalized.” For example,
Colgate and Cadburys.
Stage 5: In this last stage, the foreign brand has so very well adopted and assimilated that the people no
longer regard it as “foreign”. In fact, many are not even aware of the country of origin, and never even
bother to ask so. It is regarded as purely global or “borderless.” For example, Unilever (Hindustan
Unilever), Xerox and Dettol.

II. Another framework presents four alternative marketing strategies that could be made available to a
marketer who wants to expand beyond national territories. A company could opt for standardizing or
localizing either or both of the i) product; ii) communication program. This can be better explained
through a grid or through a two-by-two matrix which is presented below. Based on a combination of
both, the various alternative strategies are as follows:
a) Standardized product and standardized communication strategy: The marketer should use the same
marketing strategy that he uses in his home country.
b) Standardized product and localized communication strategy: The marketer would offer the same
product in another country but adapt the promotion message.
c) Localized product and standardized communication strategy: He would adapt the product offering and
use the current communication strategy that he is using in his native culture.
d) Localized product and localized communication strategy: This would mean a total adaptation, a new
product and a new communication strategy.
III. Another framework has been proposed that evaluates the degree of global standardization that would
be feasible for a product or service offering when it is offered in another country. It helps a marketer
make a decision whether he should go in for a standardized approach a global product or service
offering and global marketing mix, or opt for a localized approach with a customized marketing mix,
typical for that foreign country. The marketer has to make a trade off; while the former is economical,
with technological, economic and marketing synergies, the latter is more appealing and welcoming to
people of foreign cultures. According to the framework, before deciding on a viable marketing strategy,
a marketer should keep certain factors in mind. These factors are i) characteristics of the target
segment(s); ii) assessment of the firm's market position with respect to growth rate and market share; iii)
nature and attributes of the product and service offering; iv) the environment; and v) organizational
factors.
i) Characteristics of the target segment(s): this would include a study of the geographic area and also the
economic factors.
ii) Assessment of the firm's market position: the marketer needs to assess the extent of market
development, market conditions and competition.
iii) Nature and attributes of the product and service offering: this implies a study of the type of product
as well a product positioning.
iv)The environment: this would include a study of the politico-legal as well as the economic
environment, and also the marketing infra-structure.
v) Organizational factors: this would include factors like corporate orientation, authority relationships
etc. According to the framework, performance in program markets affects the degree of program
standardization. The degree of standardization is affected by the five factors mentioned above.

IV. There is another framework that helps a marketer assess whether to use a global or a local marketing
strategy. The framework lays emphasis on a high-tech to high-touch continuum. According to the
framework, for high-involvement products that approach either end of the hightech/high-touch
continuum, product standardization is more successful. It would be suitable for a marketer to position
such products as global brands. On the other hand, for low-involvement products that lie on the mid-
range of the high-tech/high-touch continuum, the marketer should follow a localized approach and go in
for a market-by-market execution. The marketer should position such products as local brands. Thus it
can be observed that both marketers and consumers use a common vocabulary for high-tech products,
like, kilo bytes, mega bytes for RAM storage capacity in computers or Bluetooth for data transfer in
mobiles etc. In case of internet connections, the speed is marketed in MBPS (Mega bits per second); or
In the case of hand held electronic devices, the marketer communicates in terms of GPS (Global
Positioning System), Bluetooth, Camera with certain Mega-Pixel, MP3 etc. They use rational appeals
for products like computers, laptops, cameras, DVD players etc. High-tech positioning is used for such
products. On the other hand, marketers use social and emotional appeals or even status/image for high-
touch products, be it perfumes, mobile phones, apparel wear etc. High-touch positioning is used for such
image related products.
RELEVANCE OF CULTURE FOR A MARKETER
A study of culture, sub-culture and cross culture holds great relevance for a marketer. A study of culture
is inclusive of language, customs and traditions, norms and laws, religion, art and music, etc. It also
includes the interests of people, their lifestyles and orientations, and their attitudes towards general and
specific issues. An understanding of culture helps the marketer in designing a strategy that would
address and appeal to people of a particular culture. It would help him to design his 4Ps in an efficient
and effective manner. The relevance of a study of culture and cross culture is discussed as follows:
- The culture of a society has a bearing on buying patterns and consumption behavior. The kinds of
products and services and/or brands that consumers’ buy and use, are all based on their cultures and sub-
cultures. Through a study of culture, the marketer would get to know about the viability of target
segment(s), and also about how quickly the product/service offering would be diffused and adopted by
people.
- Marketers must also be conscious of newly developed and embraced values, customs and traditions, so
as to be able to take advantage of the situation.
- Subcultures are relevant units of analysis for market research. A sub-cultural analysis helps a marketer
identify distinct segments that are “natural”, sizable and easy to cater to.
- Every component of culture should be carefully studied and a marketing program designed
accordingly; Product names or brands should not have double meanings; they should not be insensitive
in any manner; they should be distinct, easy to remember, recall and pronounce.
- While deciding on positioning and communication, marketer must be sensitive to culture, and
particularly, cross-culture; the colors, language and symbols, should all be kept in mind.
-The analysis of the culture, sub-culture and cross-culture helps profile consumers into segments that a
marketer could take advantage off through formulation of an appropriate marketing strategy. The
marketer could choose from two options, viz., either decide on a standardized global strategy or go in for
a localized customized strategy.
- MNC’s who desire to enter foreign markets should carefully study and understand the cultures of such
countries; They need to go through an elaborate process of acculturation so that they can understand the
inhabitants of such cultures and their needs.
-It is crucial that a marketer has a proper understanding of the social and cultural similarities and
dissimilarities across cultures so that he can design appropriate marketing programs and strategies for
such segment(s).
- The marketer must make sure that the product or service offering appeals to the needs and wants of
people from foreign cultures. He must make sure that he keeps in mind local customs and traditions
while formulating the strategy.
- Marketers must make sure that they employ local (foreign) people for sales and marketing in foreign
cultures. They should avoid sending their own people as the latter would take time to be acculturated.
-Especially with reference to international marketing, marketers must make sure that they
i) modify their product and service offerings so as to meet local cultures, and gain easy and quick
acceptance in the foreign country;
ii) design a communication /promotion programme where the message content, language etc. is
consistent with those of the segment;
iii) adjust the prices and payment terms and conditions to meet local expense and consumption patterns;
iv) adapt their distribution policies, including retailing to adjust with what the target segment in foreign
cultures is used to.

- Marketers must give due consideration to three major issues;

i) how do consumers in one culture get exposed to good/services being used by people of other cultures;
ii) how should a marketer design/adapt his 4Ps so as to be accepted by people influenced by newer
cultures (if he is serving in the home market only);
iii) how should a marketer design/adapt his 4Ps so as to accepted by people of other cultures (in foreign
markets).

- When customers across two or more countries are similar, the marketer can afford to have a similar
marketing program; in case they are different, he would have to adapt his 4Ps and design a separate
individualized marketing strategy for the foreign country.