Consumer Behaviour

Consumer Behaviour, TYBAMMC

Introduction to Consumer Behaviour

• Consumer behaviour, which is ultimately the understanding of how people make decisions
about what they want, need, or buy.
• Consumer behaviour is the study of how individuals, groups, or organizations select,
purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs
and desires.
• Understanding consumer behaviour helps marketers develop strategies that resonate with
their target audience, leading to better customer satisfaction, loyalty, and sales.
• The evaluation of marketing concept from mere selling concept to consumer-oriented
marketing has resulted in buyer behaviour becoming an independent discipline.
• The growth of consumerism and consumer legislation emphasizes the importance that is
given to the consumer.

Other Factors That Contributed to The Growing Interest in Consumer Behaviour

• The accelerated rate of new product development
• The consumer movement
• Public policy considerations
• Environmental concerns
• The opening of national markets throughout the world
• When does an individual buy a product ?
- Need
- Social Status
- Gifting Purpose
• When does an individual not buy a product ?
- No requirement
- Income/Budget/Financial constraints
- Taste
• When do consumers purchase products ?
- Festive season
- Birthday
- Anniversary
- Marriage or other special occasions
• There are in fact several factors which influence buying decision of a consumer ranging
from psychological, social, economic, and so on.

The Study of Consumer Behaviour Explains as to:

• Why and why not a consumer buys a product ?
• When a consumer buys a product ?
• How a consumer buys a product ?
• During Christmas/ Diwali, Eid, vacations, school reopening, the buying tendencies of
consumers increase as compared to other months.
 • In the same way during Valentine’s week, individuals are often seen purchasing gifts for
their partners. Fluctuations in the financial markets and recession decrease the buying
capacity of individuals.

Need To Study Consumer Behaviour

1. Modern Philosophy:
It concerns with modern marketing philosophy – identify consumers’ needs and satisfy
them more effectively than competitors. It makes marketing consumer-oriented. It is the
key to succeed.
2. Achievement of Goals:
The key to a company’s survival, profitability, and growth in a highly competitive
marketing environment is its ability to identify and satisfy unfulfilled consumer needs
better and sooner than the competitors. Thus, consumer behaviour helps in achieving
marketing goals.
3. Useful for Dealers and Salesmen:
The study of consumer behaviour is not useful for the company alone. Knowledge of
consumer behaviour is equally useful for middlemen and salesmen to perform their tasks
effectively in meeting consumers’ needs and wants successfully. Consumer behaviour,
thus, improves performance of the entire distribution system.
4. More Relevant Marketing Program:
Marketing program, consisting of product, price, promotion, and distribution decisions,
can be prepared more objectively. The program can be more relevant if it is based on the
study of consumer behaviour. Meaningful marketing program is instrumental in realizing
marketing goals.
5. Adjusting Marketing Program over Time:
Consumer behaviour studies the consumer response pattern on a continuous basis. So, a
marketer can easily come to know the changes taking place in the market. Based on the
current market trend, the marketer can make necessary changes in marketing program to
adjust with the market.
6. Predicting Market Trend:
Consumer behaviour can also aid in projecting the future market trends. Marketer finds
enough time to prepare for exploiting the emerging opportunities, and/or facing challenges
and threats.
7. Consumer Differentiation:
Market exhibits considerable differentiations. Each segment needs and wants different
products. For every segment, a separate marketing program is needed. Knowledge of
consumer differentiation is a key to fit marking offers with different groups of buyers.
Consumer behaviour study supplies the details about consumer differentiations.
8. Creation and Retention of Consumers:
Marketers who base their offerings on a recognition of consumer needs find a ready
market for their products. Company finds it easy to sell its products. In the same way, the
company, due to continuous study of consumer behaviour and attempts to meet changing
expectations of the buyers, can retain its consumers for a long period.
9. Competition:
Consumer behaviour study assists in facing competition, too. Based on consumers’
expectations, more competitive advantages can be offered. It is useful in improving
competitive strengths of the company.
 10. Developing New Products:
New product is developed in respect of needs and wants of the target market. In order to
develop the best-fit product, a marketer must know adequately about the market. Thus, the
study of consumer behaviour is the base for developing a new product successfully.
11. Dynamic Nature of Market:
Consumer behaviour focuses on dynamic nature of the market. It helps the manager to be
dynamic, alert, and active in satisfying consumers better and sooner than competitors.
Consumer behaviour is indispensable to watch movements of the markets.
12. Effective Use of Productive Resources:
The study of consumer behaviour assists the manager to make the organizational efforts
consumer-oriented. It ensures an exact use of resources for achieving maximum
efficiency. Each unit of resources can contribute maximum to objectives.

Factors Affecting Consumer Behaviour

1. Purchasing Power
Purchasing power of a consumer plays an important role in influencing the consumer
behavior. The consumers generally analyze their purchasing capacity before deciding to
buy and products or services. The product may be excellent, but if it fails to meet the
buyer’s purchasing ability, it will have high impact on it its sales. Segmenting consumers
based on their buying capacity would help in determining eligible consumers to achieve
better results.
2. Group Influence
Group influence is also seen to affect the decisions made by a consumer. The primary
influential group consisting of family members, classmates, immediate relatives, and the
secondary influential group consisting of neighbors and acquaintances are seen have
greater influence on the purchasing decisions of a consumer. Say for instance, the mass
liking for fast food over home cooked food or the craze for the SUVs against small utility
vehicle are glaring examples of the same.
3. Personal Preferences
At the personal level, consumer behavior is influenced by various shades of likes, dislikes,
priorities, morals, and values. In certain dynamic industries such as fashion, food and
personal care, the personal view and opinion of the consumer pertaining to style and fun
can become the dominant influencing factor. Though advertisement can help in
influencing these factors to some extent, the personal consumer likes and dislikes exert
greater influence on the end purchase made by a consumer
4. Economic Conditions
Consumer spending decisions are known to be greatly influenced by the economic
situation prevailing in the market. This holds true especially for purchases made of
vehicles, houses, and other household appliances. A positive economic environment is
known to make consumers more confident and willing to indulge in purchases irrespective
of their personal financial liabilities.
5. Marketing Campaigns
Advertisement plays a greater role in influencing the purchasing decisions made by
consumers. They are even known to bring about a great shift in market shares of
competitive industries by influencing the purchasing decisions of consumers. The
Marketing campaigns done on regular basis can influence the consumer purchasing
decision to such an extent that they may opt for one brand over another or indulge in
indulgent or frivolous shopping. Marketing campaigns if undertaken at regular intervals
 even help to remind consumers to shop for not so exciting products such as health
products or insurance policies.
6. Cultural factors
Cultural factors greatly influence the behavior of a consumer. These differ from culture to
culture(consumption of rice and rice-based products more in South), religion(Halal meat),
social status (Nano ) and even sub cultures. Age, occupation, lifestyle, family, reference
groups are also influencers in consumer behavior

Growth Of the Information Superhighway

• Positive Implications
• Marketers can be in touch with anyone, anywhere and at any time
• Availability of information increases consumers’ knowledge and power in the
marketplace.

Changing trends in consumer behavior

Focus On Health, Fitness, And Beauty

• Golden opportunities are created for marketers of many products ranging from fat-free
foods to vitamins, as well as for services ranging from plastic surgery to hair implants.

Shifting Roles of Men and Women

• More women in the workforce
• More women in management positions
• More women raising children alone
• Gay and lesbian families changing the traditional model of the family
• A redefinition of buying decision centers within the family
• A redefinition of sales and advertising strategies

Telecommuting And the Office of The Future

• Rise in demand for state-of-the-art communication devices
• Newer products were introduced to cater to a new market and new technological
preferences
• A new class of tech savvy consumers who needed updated technological advancements
meant a new consumer base
Emphasis On Leisure
• People engage in leisure activities for different reasons
• Knowing those reasons helps marketers select appropriate promotional appeals

Concern About Personal Safety

• Enhanced demand for defense-related products
• Post 9/11, Nirbhaya issues relating to travel

Diversity In the Workplace and Marketplace

• Religious, cultural feelings of minorities have to kept in mind when making products or
marketing and advertising.
• Cow meat, images of Gods and goddesses in footwear and undergarments .
• The national flag (India vs USA)

Focus On Ethics
• For much of history, business ethics was considered an oxymoron
• In the 1980’s, ethics became an issue with the discovery of numerous instances of
corporate wrongdoing
• Ford Pinto
• Bhopal disaster
• Asbestos
• Tobacco
• Ethical codes were enacted by many companies and institutions and ethics became part of
the curriculum of business schools
• It is likely that ethics in marketing will receive greater attention from the public and from
government and private watchdog groups

Ecological Consciousness
• Studies show that:
- Consumers consider themselves “environmentalists”
- They have changed their habits to protect the environment
- They are willing to pay more for products that are considered environmentally safe
• An increasing flow of environmentally friendly products
• Positive shift in public attitudes toward firms
and products that protect the environment
• As a result, the rise of green marketing
• Greater potential for deception based on false claims of environmental safety of products

The Rise of The Global Village

• An increasing acceptance of the free market system in many foreign countries
• Growth of major regional free-trade areas, such as NAFTA and the EU, resulting in
increased trade
• Globalization giving way to unexplored markets both in India for foreign goods and
abroad for Indian goods – Walmart, bindis
Marketing Segmentation – VALS.
• Market segmentation is the process of dividing a market of potential customers into
groups, or segments, based on different characteristics.
• The segments created are composed of
consumers who will respond similarly
to marketing strategies and who share
traits such as similar interests, needs,
or locations.
• By arranging their company’s target
market into segmented groups, rather
than targeting each potential customer
individually, marketers can be more
efficient with their time, money, and
other resources than if they were
targeting consumers on an individual level.
• Grouping similar consumers together allows marketers to target specific audiences in a
cost-effective manner.
• Market segmentation also reduces the risk of an unsuccessful or ineffective marketing
campaign.
• When marketers divide a market based on key characteristics and personalize their
strategies based on that information, there is a much higher chance of success than if they
were to create a generic campaign and try to implement it across all segments.
• Marketers can also us segmentation to prioritize their target audiences. If segmentation
shows that some consumers would be more likely to buy a product than others, marketers
can better allocate their attention and resources
• Market Segmentation is a process of dividing the market of potential customers into
different groups and segments on the basis of certain characteristics.
• The member of these groups shares similar characteristics and usually have one or more
than one aspect common among them.
• There are many reasons as to why market segmentation is done. One of the major reasons
marketers’ segment markets is because they can create custom marketing mix for each
segment and cater them accordingly.
• The concept of market segmentation was coined by Wendell R. Smith who in his article
“Product Differentiation and Market Segmentation as Alternative Marketing Strategies”
observed “many examples of segmentation” in 1956.
• Present-day market segmentation exists basically to solve one major problem of
marketers; more conversions.
• More conversion is possible through personalized marketing campaigns which require
marketers to segment market and draft better product and communication strategies
according to needs of the segment.

VALS
• VALS (Values, attitudes, and lifestyle) which is also known as values attitude and
lifestyle is one of the primary ways to perform psychographic segmentation. The VALS
Research, based on a customer's values and lifestyles, refers to a market research tool
developed by social scientist Arnold Mitchell and his colleagues at SRI International in
order to study motivation behind consumer purchase decisions.
 • VALS was developed from the theoretical base of Maslow’s Hierarchy of Needs and the
concept of social character.
• All three terms are intangible in nature and therefore give an idea of the inert nature of the
consumer. If you know what your consumer is thinking, you would know what kind of
promotions or communications will attract him most.
• VALS is a way of knowing what the consumer is thinking by determining his VALS –
Values, attitudes, and lifestyle.
• VALS is different for different people. For a person with high income your lifestyle would
probably include habits of the SEC A class such as dining out of home frequently and that
too in top class restaurants, wearing only branded clothes and buying the best cars out
there. Whereas if you are a middle-class income group consumer, you would be more
wary of spending money and would rather concentrate on savings.
• So now how does VALS affect a marketer- a banker would sell someone who had a high-
income lifestyle , investment options and would also dedicate a relationship manager to
take care of their needs. the bankers also have a term for high income individuals known
as HNI – high net worth individuals. But, if your lifestyle was that of a low-income
customer, you are more likely to be targeted for savings
• VALS research provides the companies with:
• Rich customized consumer profiles
• Distinctive communication styles that would suit their target segment
• A fresh perspective- what exactly do the target consumers want
• The main dimensions of the VALS framework are resources (the vertical dimension) and
primary motivation (the horizontal dimension).
• The vertical dimension segments people based on the degree to which they are innovative
and have resources such as income, education, self-confidence, intelligence, leadership
skills, and energy.
• The horizontal dimension represents primary motivations and includes three distinct types:
• Consumers driven by knowledge and principles are motivated primarily by ideals. These
consumers include groups called Thinkers and Believers.
• Consumers driven by demonstrating success to their peers are motivated primarily by
achievement. These consumers include groups referred to as Achievers and Strivers.
• Consumers driven by a desire for social or physical activity, variety, and risk taking are
motivated primarily by self-expression. These consumers include the groups known as
Experiencers and Makers
• At the top of the rectangle are the Innovators, who have such high resources that they
could have any of the three primary motivations.
• At the bottom of the rectangle are the Survivors, who live complacently and within their
means without a strong primary motivation of the types listed above.
• A person's tendency to consume goes beyond age, income, gender, or education. Certain
psychological traits like energy, intellectualism, self-confidence in conjunction with key
demographics determine an individual's resources.

Types of Values and Lifestyles (VALS)

• Determined on this basis, there are 8 VALS types which are used to study a customer:
1. Innovators: successful, sophisticated, abundant resources, exhibit all three primary
motivations, are always taking in information. Are confident enough to experiment. Make
the highest number of financial transactions. Are skeptical about advertising. Have
 international exposure. Are future oriented. Are self-directed consumers. Believe science
and R&D are credible. Are most receptive to new ideas and technologies. Enjoy the
challenge of problem solving. Have the widest variety of interests and activities.
Innovators are very high on resources and thus go beyond regular purchases. They prefer
add-on type of products that are expensive, marketed to niche. These consumers are
successful, sophisticated, active, and take-charge types. The products like Vanish are most
suitable for such consumers.
2. Experiencers: young, enthusiastic, impulse buyers. Want everything. Are first in and first
out of trend adoption. Go against the current mainstream. Are up on the latest fashions.
Love physical activity (are sensation seeking). See themselves as very sociable. Believe
that friends are extremely important. Are spontaneous. Have a heightened sense of visual
stimulation. For Experiencers, a creative appeal focusing on excitement is the best
one. They are young, enthusiastic, high on resources consumers and would not mind
paying if the product strikes them. This Henko ad is one of those ad that increases the level
of curiosity and thus would create a favourable attitude in the minds of experiencers.
3. Thinkers: mature, satisfied, well-educated, seek out information in decision making
process. Have "ought" and "should" benchmarks for social conduct. Have a tendency
toward analysis. Plan, research, and consider before they act. Enjoy a historical
perspective. Are financially established. Are not influenced by what's hot. Use technology
in functional ways. Prefer traditional intellectual pursuits. Buy proven products. Thinkers.
Driven by ideals, these consumers are high on resources and hence open to innovation.
Thinkers are reflective, and thus important value propositions attracts them. This Ariel ad
shares story of a mother, who seems to be focus on the satisfaction that she gets while
cleaning her daughters clothes every time. The proud story also reveals the level of
satisfaction that she gets in her daughter's success.
4. Achievers: goal-oriented lifestyle, deep commitment to family and career. Have a "me
first, my family first" attitude. Believe money is the source of authority. Are committed to
family and job. Are fully scheduled. Are goal oriented. Are hardworking. Are moderate.
Act as anchors of the status quo. Are peer conscious. Are private. Are professional. Value
technology that provides a productivity boost. Achievers are goal oriented, high on
resources consumers. Appeals like success, career and family works for such consumer.
Since they are high on resources, they only buy premium products. Surf Excel Daag Acche
Hai campaign talks about such consumers.
5. Believers: conservative, conventional, follow established codes. Believe in basic rights
and wrongs to lead a good life. Rely on spirituality and faith to provide inspiration. Want
friendly communities. Watch TV and read romance novels to find an escape. Want to
know where things stand; have no tolerance for ambiguity. Are not looking to change
society. Find advertising a legitimate source of information. Value constancy and stability
(can appear to be loyal). Have strong me-too fashion attitudes. Talking about Believers,
they are the people with concrete belief. They are low on resources and prefers products
that are reasonably priced. Since the primary motivation is ideals, they would be
traditional and rigid. They require a strong persuasive communication to come out of the
rigidity. Lalita was identified as a traditional, yet well organised housewife who has
concrete and smart thinking for herself and her family.
6. Strivers: fun-loving, trendy, seek approval of others, money defines success. Have
revolving employment; high temporary unemployment. Use video and video games as a
form of fantasy. Are fun loving. Are imitative. Rely heavily on public transportation. Are
the center of low-status street culture. Desire to better their lives but have difficulty in
 realizing their desire. Wear their wealth. In the low resources category, Strives are the
consumers motivated by achievements. Here, celebrity endorsements (at times completely
off the track) works a lot- Salman Khan endorsing Wheel detergent. Unrelated yet
positive value addition is also popular. For example, fragrances . The idea behind such
appeal is to touch upon the s fun-loving tendencies of strivers. Celebrity endorsement also
increase value of association
7. Makers: enough energy and skill to carry out their projects themselves. Are distrustful of
government. Have a strong interest in all things automotive. Have strong outdoor interests
(hunting and fishing). Believe in sharp gender roles. Want to protect what they perceive to
be theirs. See themselves as straightforward; appear to others as anti-intellectual. Want to
own land. Makers, on the other hand, needs an appeal which is focus on their own self.
Product purchases are majorly motivated by self-sufficient, confident personality. This Rin
advertisement is about a practical and down-to-earth girl, who appears to be self-reliant
and confident personality.
8. Survivors: narrowly-focused lives, few resources. Are cautious and risk averse. Are the
oldest consumers. Are thrifty. Are not concerned about appearing traditional or trendy.
Take comfort in routine, familiar people, and places. Are heavy TV viewers. Are loyal to
brands and products. Spend most of their time alone. Are the least likely use the internet.
Are the most likely to have a landline-only household. Survivors are the consumers with
low resources hence their lifestyle is not governed by any of the basic motivations. They
are very low on resources and thus only ends are important. Marketers must focus here on
price sensitivity first and then on trust and loyalty. They would buy a product only if they
realise the need and importance of the product.

Market Segmentation In Titan Watches

• Titan made those who wanted more than one watches into a separate segment and tempted
them by offering a wide range of models. It offered them matched one’s dress and
occasions. (Titan Steel, Titan Edge, Sonata)
• For the youth /the outdoor lovers: Titan viewed them as a lifestyle segment and offered
them the fast track (Fast Track)
• For Designer Segment: Titan also adopted the designer segment and offered them all
designer and hand assembled watches, the Euro collection, designed by European
designers.
• For the Children Titan adopted children – those between 6 to 14 years as o separate
segment ( Dash for Kids)
• For Women Seeking Fashion within the Middle-income Group: Titan offered the Raga
Range for this segment which was meant exclusively for women
• Titan Nebula Range consisting of gold, precious and semi-precious stones.
• For example, Reebok has segmented market into three following divisions:
• (a) Sportswear like T-shirt, caps, tracksuits etc.
• (b) Sport shoes.
• (c) Sport equipment like cricket bats, tennis racket etc.
• Sport shoe segment is further divided into 4 sub-segments called as niche:
• Niche 1. Tennis shoes. Niche 2. Cricket shoes.
• Niche 3. Jogging shoes. Niche 4. Golfer’s shoes
The Marketing Communications Process
• In general, a company's marketing
communications are designed to make
the consumer aware of the product,
induce purchase or commitment, create a
positive attitude toward the product, give
the product a symbolic meaning, or show
how it can solve the consumer's problem
better than a competitive product (or
service)
a. The Message Initiator (Source / Sponsor)
- The sponsor (initiator) of the
message first must decide to whom it should be sent and what meaning it should
convey
- Then the sponsor must encode the message in such a way that its meaning is
interpreted by the targeted audience in precisely the intended way.
- The sources of such communications usually are organizations (either for-profit or not-
for-profit) that develop and transmit appropriate messages through special departments
(e g marketing or public relations) or spokespersons.
- The targets, or receivers, of such messages usually are a specific audience or several
audiences that the organization is trying to inform, influence, or persuade
- For example, AOL wants to attract both online users and advertisers; a museum may
wish to target both donors and visitors, and a mail-order company may want to
persuade consumers to call a toll-free number for a copy of its catalogue
- They can use words, pictures, symbols, spokespersons, and special channels. They can
buy space or time in carefully selected media to advertise or broadcast their message,
or they can try to have their message appear in space or time usually reserved for
editorial messages
- The credibility of the source affects the decoding of the message
- The sponsor of communication and his or her perceived honesty and objectivity have
an enormous influence on how the communication is accepted by the receiver(s)
- When the source is well respected and highly thought of by the intended audience the
message is more likely to be believed. Conversely, a message from a source
considered unreliable or untrustworthy is likely to be received with scepticism and
may be rejected.
- Credibility is built on a number of factors of which the most important are the
perceived intentions of the source.
- Receivers ask themselves “Just what does he/she stand to gain if I do what is
suggested?” If the receiver perceives any type of personal gain for the sponsor as a
result of the proposed action or advice, the message itself becomes suspect.

b. The Target Audience (Receivers)

- Receivers decode the messages they receive on the basis of their personal experiences
and personal characteristics.
- The level of trust the receiver displays toward communications is based on his/her own
prior experience.
- A number of factors affect the decoding and comprehension of persuasive messages,
including the receiver's personal characteristics, involvement with the product or
 product category, the congruency of the message with the medium, and the receiver's
mood.
- The receiver is the one making the decision after decoding the message. the receiver is
the end customer or prospect. Thus, the receiver is a very important entity in the
marketing communications process.
- Ideally, the receiver should act on the message he has received. Thus, if your message
was of a sales promotion, your receiver will go ahead and purchase the product.
- However, as in any situation, there are different variants of receivers. Some will
completely ignore the message; some will use it for reference later and others will act
on it.
- To make sure that the receiver acts on the message, integrated marketing
communication is used. The same message is sent in different formats through various
media vehicles.

c. Feedback—The Receivers Response

- Since marketing communications are usually designed to persuade a target audience to
act in a desired way (e g, to purchase a specific brand or product, to vote for a pres-
idential candidate, to pay income taxes early), the ultimate test of marketing commu-
nications is the receiver's response.
- For this reason, it is essential for the sender to obtain feedback as promptly and as
accurately as possible.
- Only through feedback can the sender determine whether and how well the message
has been received.

d. Encoding
- The message needs to be bundled in the right format for the sender to send the
appropriate message to the receiver. This is known as encoding.
- In marketing communications, this is where advertising agencies play an important
role.
- Depending on the choice of the sender, the creative ad agencies encode the message in
the proper format.
- The format depends on the type of media vehicle being used to deliver the
communication message. Thus, you will find that a radio message, a TV message, or a
print message are encoded differently as all of them have their own pros and cons.
- Whatever media vehicle /message format you may use, the focus message needs to be
the same.

e. Decoding
- Decoding a message is not in the hands of the sender. Instead, it is done by the
receiver.
- What the sender can do is encoding the message as best as he can and ensure that it
reaches the receiver. The receiver then decodes the message.
Message decisions
• During marketing communication, there are various ways in which the message can be
sent to the end customers.
• Television and print are known to have the highest retention and hence advertisers use
them the most. Other than these 2, there is radio marketing, online marketing, out of
home media, banner advertising, so on and so forth.
• Any of these media vehicles can carry your message. The important point here is that
the message should reach to as large a target audience as possible. In the sales funnel,
the more the prospects you have the more would be the conversion rates.
• Thus, the objective of a message is to reach as many prospects as possible. A proper
message can immediately connect you with your target group, build a better brand
positioning, and thereby give an immediate boost to your organization.
• Marketing communications messages can be of various types. Some of the normally
used ones are:
• Introducing a new product
- Creating awareness
- Building brand image
- Sales promotion offers
- Customer retention

Message Structure and Presentation

• Some of the decisions that marketers must make in designing the message include the use
of resonance, positive or negative message framing, one-sided or two-sided messages,
comparative advertising, and the order of presentation.

One-Sided Versus Two-Sided Messages

• Should marketers tell their audiences only the good points about their products, or should
they also tell them the bad (or the commonplace)? Should they pretend that their products
are the only ones of their kind or should it acknowledge competing products?
• These are very real strategy questions that marketers face every day, and the answers
depend on the nature of the audience and the nature of the competition
• If the audience is friendly (e g, if it uses the advertiser's products) if it initially Favors the
communicator's position, or if it is not likely to hear an opposing argument then a one-
sided (supportive) message that stresses only favourable information is most effective
• However, if the audience is critical or unfriendly (e.g. if it uses competitive products) or if
it is well educated, or if it is likely to hear opposing claims then a two-sided (refutational)
message is likely to be more beneficial.
 • Two-sided advertising messages tend to be more credible than one-sided advertising
message because they acknowledge that the advertised brand has shortcomings for e.g.
Listerine mouth wash 99% germ free .
• Two-sided messages can also be very effective when consumers are likely to see
competitors’ negative counterclaims or when consumer attitudes toward the brand are
already negative
• Some marketers stress only positive factors about their products and pretend that
competition does not exist
• However, when competition does exist and when it is likely to be vocal, such advertisers
tend to lose credibility with the consumer

Message Code
• Verbal – Verbal code is a system of words symbols that are combined according to a set
of rules. They are important in intercultural communication . (Kumkum)
• Non-Verbal – Non-verbal codes are facial expression, gestures , postures, and dress these
are extremely important in persuasive communication . (Attire)
• Paralinguistic – It lies between Verbal and non-verbal . Primarily between – Voice quality
or voice modulation. E.g. baby soap, shampoo- gentle voice

Fear appeals:
• Advertisers use fear appeals in some situations to evoke the desired emotional response
and motivate audience to take steps to remove the treat.
• Toothpaste, deodorants, helmets, anti-dandruff shampoos, life insurance and a large
number of other products and services use fear appeals.
• In some situations, it appears to be quite reasonable for advertisers to consider using fear
with explicit purpose of persuading the audience to elicit a favourable response.
• Fear is a powerful motivator, but only up to a point.
• Ad messages using fear appeals to have been used to promote social causes as well, such
as wearing helmets while driving two-wheeler, autos, safe driving, paying taxes, the dread
of drugs, dangers of smoking and AIDS, etc.

Humour appeals:
• Humour generates feelings of amusement and pleasure and, for this reason it has a
potential for the feeling to become associated with the brand and affect consumer attitudes
towards the brand and probably its image.
• Humour can also affect information processing by attracting attention, improving brand
name recall, creating pleasant mood, and reducing the chances of counter-argument
(Fevikol, Centre Shock)

Abrasive Advertising:
• The memory of an unpleasant commercial that antagonizes listeners or viewers may
dissipate over time, leaving only the brand name in the minds of consumers.
• All of us have at one time or other been repelled by so called agony commercials, which
depict in diagrammatic detail with the internal and intestinal effects of heartburn,
indigestion, clogged sinus cavities, hammer induced headaches, and the like.
• Pharmaceutical companies often run such commercials with great success.
Sex in advertising:
• Advertisers are increasingly trying to provoke attention with suggestive illustrations, crude
language, and nudity in their efforts to appear ‘hip’ and contemporary.
• Explicit and daring sexual imagery, extending far beyond the traditional product categories
of fashion and fragrance into such categories as shampoo, beer, cars, and home
construction. (Indigo Airlines)

Persuasion -Need & Importance

• Persuasion attempts to influence people's beliefs, attitudes, intentions, motivations, or
behaviours in relation to an event, idea, object, or other person(s).
• Persuasive communication achieves five things: stimulation, convincing, call to action,
increasing consideration, and tolerance for alternative perspectives.
• Persuasive communication is any message whose sole purpose is to get the listener to
support and transform their thinking in Favor of the presenter’s perspective. It is about
creating an attitude change to influence social behaviour
• Persuasion skills are extremely important for sales and marketing professionals as they are
paid not only to interact with potential customers but also motivate them to invest in
organization’s products and services.
• Persuasion runs indelibly through all aspects of our lives. Some instances are subtle (e.g.,
effects of entertainment media), others can be in-your-face annoying (e.g., political
• Persuasion, requires the ability to alter not just action but attitude. The difference is
subtle, but important: A cereal brand that slashes its prices may gain new customers, but it
hasn't fundamentally changed how it is perceived.

Four Primary Elements Of Persuasion Marketing: Structured Communication, Storytelling,

Copywriting, And Neuromarketing.
1. Structured communication, like the “planned conversation” of interpersonal sales, is about
controlling the order of the dialogue, or how information is presented to the consumer. The
goal is to move a customer along his or her “impulse curve,” initially encouraging a
customer’s impulse, and making a call to action after that impulse level has been raised to
its highest point. In website design, it means that the first page the customer sees does not
immediately seek a sale, but instead presents the initial message and encourages further
exploration of the website.
2. Storytelling uses a narrative framework to invoke a customer’s emotional and
subconscious responses, so that they join—or dominate—their more analytical responses.
Use of particular words and images evoke habitual Reciprocation — obligate people
emotionally by giving them something emotional responses, such as affection, familiarity,
empathy, and desire for triumph/resolution. A story about a couple buying a car isn’t that
exciting. A couple worried that they can’t afford a car, only at the moment of price reveal
(the climax) do they realize they actually can.
3. Copywriting is using the right words and phrases for headings, captions, product
descriptions, and other text. For example, when people scan material, questions stand out
more than statements, so “What is the best way to capture attention?” catches more
attention than “How to capture attention.” The persuasion marketer field-tests different
kinds of copy, in order to determine which is most likely to produce the emotion or answer
he or she’s looking for. Different words describing the same thing can have very different
connotation. “Choices,” for example, produces a positive emotional response, but “trade-
offs” produces a negative one. Additionally, the copywriter and marketer must remember
 that the fear of loss is more motivating for most people than the promise of gain. Thus
“don’t miss out” has more impact than “this can be yours.” For example, in the 1960s,
Domino’s was just a small pizza restaurant in Michigan. The owners wanted to increase
revenue and grow a franchise so they created a strong USP to stand out in the very
crowded pizza delivery market. It was encapsulated in this very straightforward, easy to
understand and enticing line of copy: ‘Pizza delivered in 30 minutes or it’s free.’
4. Neuromarketing is perhaps the most important component of persuasion marketing,
applying psychology to the marketing message. Psychological research reveals
information about the diverse factors that contribute to a decision—and as much as 90
percent of that all takes place beyond our conscious reasoning. For example, research
demonstrates that visual and olfactory cues are important for “priming” a particular mood;
therefore, grocery stores display flowers in the front in order to “prime” customers with
the image of freshness. In terms of website design, it means using color scheme and
particular visual imagery to improve visitors’ response to the website.
5. Another major feature is testimony from other people. Businesses typically display
customer testimony on their websites, developing a “wall of social proof” approach.
Businesses post photos of happy—and attractive—customers, so new customers are
comfortable being associated with them. Babies in advertising helps sell products more,
attractive colors in food packaging which will link it to the food

Elaboration Likelihood Model

• Developed in the mid-1970s by the cofounder of the field of social neuroscience, John
Cacioppo, and Richard Petty, a distinguished psychology professor at Chicago University,
the Elaboration Likelihood Model (ELM) seeks to explain how humans process stimuli
differently and the outcomes of these processes on changing attitudes, and, consequently,
behaviour.
• It is a theory that specifies when people are more likely to be influenced by the content of
persuasive communication instead of superficial characteristics, and vice versa. It helps us
explain how attitudes are formed and changed through persuasion. The model describes
two routes to persuasion - central and peripheral - that can be successful in changing
someone's attitude under the right circumstances.
• The central route to persuasion is when people elaborate on a persuasive argument,
listening carefully and thinking about the logic behind the message. There are times when
people are motivated to pay attention to the facts during a speech or other persuasive
communication and during those times are persuaded the most by a strong logical
argument. If a person believes the persuasion to be reliable, convincing, and well-
constructed, he or she will typically be receptive to a change in attitude that is long-lasting.
• For example, imagine you are a college student listening to a speech about why the cost of
an MBA should be increased the following year. If you are attending next year, it's likely
this subject would be important to you, and so you would listen closely to the argument.
• Obviously, you would probably not want the MBA fees to increase. However, if you find
the argument to be convincing - say, if you were going to receive a substantial number of
benefits - you may change your mind.
• There are other times when people are not motivated by the facts and instead are
persuaded by superficial things, such as the attractiveness or fame of the person delivering
the message. This is the peripheral route to persuasion - when people do not elaborate on a
persuasive argument and instead are swayed by surface characteristics that are peripheral
to the message.
 • When using this route, peripheral cues enable the individual to use mental shortcuts,
accepting or rejecting the argument based on superficial factors instead of actively
thinking about the issue. Attitude change resulting from the peripheral route is typically
temporary and susceptible to additional change
• For example, you are listening to a debate, one of the speakers has a harsh voice and is not
attractive looking and talks in long sentences. The other candidate attractive and animated
in his/her debating style.
• Instead of focusing on the merits of the debate, the validity and logic of the points you will
end up liking the attractive candidate more and want him/her to win.

Appeal
• Advertising uses appeals as a way of persuading people to buy certain products.
• Advertising appeals are designed in a way so as to create a positive image of the
individuals who use certain products

Types of Appeals
• There are two types of appeals : Rational and Emotional
• The first type of persuasion is the appeal to reason. The appeal-to-reason method uses a
logical argument, with everything about the persuasion centred in logic and in the
scientific method.
• This method will work best with the types of people who need proof of something and
don't accept arguments that are based more on faith than on fact.
• Using doctors, scientists, professionals to endorse a product
• High quality appeals
• Low price appeals
• Long life appeals
• Performance minted appeals
• Ease to use oriented appeals
• The second type of persuasion is the appeal to emotion. The appeal-to-emotion is not
based on proof, but on the emotions that a person feels. Often this can be a more effective
approach for the population as a whole, because people can often be governed by their
emotions more than by their minds.
• Emotional appeals affect people; the audience connects with the individuals in the ad. Eg.:
Rolex uses this during the Wimbledon Tennis Tournament; they narrate the story of the
player or brand ambassador.
• Sales people use this method quite well. They will appeal to your imagination by giving
you a presentation of a test drive of a vehicle so that you can see yourself in the vehicle.
 Then, they will sometimes use pity to tell you how they may need this sale as it has been a
slow month.
• Other appeals
- Price or value appeal
- Quality appeal ( If the product doesn’t possess the quality, then it can be on the flip
side)
- Star Appeal ( celebrity endorsement)
- Ego appeal ( L’oreal)
- Sensory appeal ( Ads aim at senses, touch , taste)
- Social Acceptance appeal
- Prestige appeal ( Merc , BMW )

Theories of Learning Cognitive (Social Learning) Theory

• Cognition is our thinking process. It describes the very act of acquiring knowledge through
perception, thinking, imagination, remembering, judging, problem-solving, and selective
attention.
• Cognitive learning theory refers to the way consumers learn about the product through
analysis and evaluation.
• The consumer collects information on various competitive products with regard to their
price, performance, and other aspects.
• The consumer feeds that the collected information on various competitive products with
regard to their price, performance, and other aspects of information into his human
computer, process them logically and then only arrives at a conclusion. If one decides to
buy a refrigerator, he collects the information on various refrigerators available in the
market, their features, performance, reputation of the supplier i.e. brand and after sales
service.
• For instance, a consumer is using ‘X’ brand razor blades. He learns that better or cheaper
blades have been introduced by another company.
• When he collects information about it, integrates it with his existing knowledge and
whether alternative should be used or not it is called cognitive learning.
• The manufacturer and marketer make all possible efforts through advertisements and other
methods that information reaches the consumers and they may be compelled to consider
alternatives.
• When it comes to ordering pizza, we all want delicious hot pizza made with fresh
ingredients.
• There’s nothing wrong with frozen pizza, it is just not the first choice of most.
• In other words, we mentally associate Papa John’s with ‘delicious pizza and fresh
ingredients
• Cognitive learning is more effective in the initial attraction and branding campaigns. This
is targeted at the customer. Make them understand why and how your brand stands out
from the competitors.
• Cognitive Learning Advertising Campaigns are most effective when the goal is to acquire
potential customers
• When a cognitive message strategy is used, the advertisement’s key message is about the
product’s attributes or the benefits. Customers can obtain these benefits by using the
product.
• The goal of the cognitive message strategy approach is to design an ad that will have an
impact on a person’s beliefs and/or knowledge structure.
 • This can be accomplished by suggesting any one of a wide variety of potential product
benefits. Foods may be described as healthful, pleasant tasting, or low calorie. A tool can
be shown as durable, convenient, or handy to use
• Throw like a girl campaign of 2014
• Dove ‘Real Beauty Sketches’ campaign from 2013

Behavioural Learning. – Classical Conditioning/ Theory , Instrumental Conditioning/

Theory
• Classical Conditioning (Pavlov Theory) - According to Pavlov’s theory, consumers will be
learning a marketing effort by a repeated exposure to the same message through adverts.
This repeated exposure results in brand familiarity.

Marketing implications of Classical Conditioning

i) Marketers should use repeat exposure to make consumers learn about a product
ii) Repeated exposure creates brand familiarity and this can be achieved through
advertisements.
iii) Repeated exposure may lead to boredom therefore there is need to be creative and
to vary the message or use different people and media.
iv) Marketers can produce brand knockoff/ imitations to capitalise on brand name e.g.
Slice, Nokia
v) Marketers design attractive packages
vi) Colours and graphics used should be consistent so that consumers are familiar with
them.
vii) Marketers should come up with family brand names, product line extensions etc.
• The cola’s (Pepsi and Coke) have used Classical Conditioning very effectively over the
years. We all know that thirst (An Unconditioned Response) is generated by various
environmental and physical factors like heat, sports, workout, dehydration etc. (These are
Unconditioned Stimuli).
• What Pepsi and Coke have done over the years of Marketing and Branding is strategically
placed and associated their products with all the above Unconditioned Stimuli like heat,
sports, etc repeatedly.
• They have also used key words in their branding like “Thanda Matlab Coca Cola” (cold
means Coca Cola). This has played the part of a Conditioned Stimulus which is placed
along with the Unconditioned Stimuli every time (hence the sponsorships for major
sporting events).
• Over time the Conditioned Stimulus (Cola drink) becomes a signal for the arrival of the
Unconditioned Stimulus (heat, dehydration) for the brain and we feel thirsty just by seeing
a big poster of Coke or Pepsi without actually experiencing any of the above
environmental or physical factors.
• Thus, we don’t only have a Coke/Pepsi when we are thirsty, we feel thirsty when we see a
Coke/Pepsi!
• ‘SALE’ which runs almost throughout the year in some form or another. Here the
unconditioned stimulus (need to buy new stuff) is often paired with a simultaneous SALE
period for most consumers.
• This pattern in the future causes only the Conditioned Stimulus (SALE) to generate a
response (Shopping) without there even being a need for it. Hence today every time we
hear the word SALE, we feel like shopping even if we don’t necessarily need the product.
 • For example, an ad for a fast-food restaurant will usually make the food look delicious and
mouth-watering so that consumers will feel hungry when they watch the ad and want to go
out and buy some of the food.
• Another example of classical conditioning occurs in ads where you see people having a
good time using a product. Consumers may then associate good feelings and having fun
with the product and may be more likely to buy the product.
• Advertising that uses music is taking advantage of classical conditioning. Music that is
happy and repetitive helps consumers to feel happy when they hear it. Consumers then
associate the feelings of happiness with the product and may be more likely to buy the
product.
• Jingles that stick in the mind, such as rhyming jingles, or tunes based on popular songs,
can also act as a form of classical conditioning. Every time the consumer remembers the
tune, they unconsciously also remember the product associated with it. This may make the
consumer more likely to buy the product.

Psychological Determinants & Consumer Behaviour Motivation. – Needs, Types

• Motivation is an internal condition that initiates and sustains activity directed towards a
particular goal.
• The study of motivation is the study of all those pushes and prods-biological, social and
psychological-that defeat our laziness and move us either eagerly or reluctantly to action.
• Motives are a special kind of because which energize, direct, and sustain a person’s
behaviour (Rubin and McNeil, 1983)
• The degree to which an individual wants and chooses to engage in certain specific
behaviours. (Mitchell 1982)
➢ Needs –
- A motivating force that compels action for its satisfaction. Needs range from basic
survival needs (common to all human beings) satisfied by necessities, to cultural,
intellectual, and social needs (varying from place to place and age group to age group)
satisfied by necessaries. Needs are finite.
- A driver of human action which marketers try to identify, emphasize, and satisfy, and
around which promotional efforts are organized.
➢ Types -
1) Existing need
- Any need of the customers which is short term and is easily available is known as
existing need. to prepare food, a microwave, gas, or other utensils are needed. These
are immediately available in the market and can be purchased easily. to store food, a
refrigerator is needed , to throw away the leftovers, a garbage bin is needed
- There are many businesses which cater to the existing needs of customers. .
2) Latent need
- A need of a customer which is there but has not manifested itself because such
a product has not been launched.
- Companies which tap the latent needs of customers need a lot of innovation and might
go wrong at times.
- But these are the companies which have fantastic profitability, because they cater to
the needs of the customers which even the customer does not know he has.
- A perfect example of 2 companies becoming legendary due to the latent needs they
catered to are the SONY Walkman and later on the Apple iPod .
 - Sony’s Walkman made the music lover independent and he did not have to stick
around his cassette or record player anymore. No one thought they could listen to
music on the move, but as soon as Sony launched a product, everyone loved it.
- Creating awareness was the only challenging part for Walkman. Its market acceptance
and penetration were fantastic.
- The same was applicable to Apple iPod. Everyone loved a Walkman but no one
wanted to carry cassettes around all the time. Plus, they were bored of changing sides
of the cassettes and recharging the Walkman after every two hours.
- So, when the iPod was introduced, people loved it. MP3 player which they could carry
anywhere, which was very small, and could hold 1000 or above songs at times.
- Induction cooktop
3) Incipient need
- It is a type of need which people want but there is no product to satisfy that need.
- SPACEX founded by Elon musk is working on this Incipient need itself. SPACEX is
investing in space travel and it is offering a ride to different planets to the very wealthy
customers who want to go to space!! Before SPACEX, only Astronauts could go to
space and many people dreamt of going into space once.
- Diet pills which offer weight loss without dieting and exercising.

Theories Of Motivation Abraham Maslow

• Human needs are categorised in five major groups in hierarchical order: The first level
contains physiological needs (water, sleep, food). After these needs are satisfied, the
individual is able to focus on satisfying the safety needs (shelter, security, and protection)
and belongingness needs on the third level such as: love, friendship, and acceptance.
• Satisfaction of these needs allows the individual to advance to the ego needs. Inwardly-
directed ego needs include: self-esteem, achievement, uniqueness, and independence.
• Whereas status, prestige, reputation, and social recognition come under the category of
outwardly-directed ego needs. At the top is the need for self-actualisation: striving to
realise your full potential through education, travel, hobbies, engagement with
environmental/social causes, etc.
• In order to progress to the higher growth needs the lower-level basic needs must first be
satisfied. Maslow said that everyone is capable of moving up the hierarchy and everyone
strives to do so.
• Unfortunately, progress is often disrupted by failure to meet lower-level needs; life
changing events such as divorce and loss of job may cause an individual to fluctuate
between levels of the hierarchy.
• Maslow noted only one in a hundred people become fully self-actualized because our
society rewards motivation primarily based on esteem, love, and other social needs

Physiological Need
• Water is a basic physiological need, but it is bottled and marketed under different labels.
• When a restaurant commercial advertises how filling their food is, or when an
advertisement for living in Hawaii is produced that showcases its naturally purified water
system, these types of marketing communications seek to appeal to our psychological need
to physically satisfy our survival needs.
• Baby food, low-cost housing vs premium apartments
Safety Needs
• When you see insurance commercials that depict a customer in an accident, or health
companies advocating immunizations, they are appealing to your safety motivations.
• Another example would be a commercial featuring the safety ratings of a new car being
released, TOP security guard for home, PCI Pest control
• The fear of not being able to recover from an illness or economic damage (getting into a
car accident), is a very popular marketing communications technique to assure the
customer that the company will protect them from such dangers

Love & Belonging Needs

• Facebook,
• Archies,
• WhatsApp,
• Tinder,
• Unshadi

Self Esteem
• Highly Expensive Products-
Rolex, Mercedes,
• World tour with Cox &
Kings, Phillips-55’’ 3D TV,
• Living in Hiranandani

Self-Actualization
• The iPhone — precisely because it is branded as “exclusive” and “premium” even though it
can be bought in monthly instalments by ordinary people — is a device that the
manufacturer would have you believe results in self-actualization.
• By using an iPhone, you “Think Different” as the advertisements have famously stated.

Personality & Attitude. – Theories of Personalities & its application. - Freudian, Jung, Self-
concept.
• Freud’s psychoanalytic theory provides the foundation for the study of motivational
research, which operates on the premise that human drives are largely unconscious in
nature and serve to motivate many consumer actions.
• Neo Freudian theory tends to emphasize the fundamental role of social relationships in the
formation and development of personality
• Freud’s theories see that human drives are largely unconscious, and that consumers are
primarily unaware of their true reasons for buying what they buy.
• These researchers focus on consumer purchases and/or consumption situations, treating
them as an extension of the consumer’s personality.
• According to Sigmund Freud, human personality is complex and has more than a single
component.
• In his famous psychoanalytic theory, Freud states that personality is composed of three
elements known as the id, the ego, and the superego. These elements work together to
create complex human behaviors.
The Id
• The Id is the only component of personality that is present from birth.
• This aspect of personality is entirely unconscious and includes instinctive and primitive
behaviors.
• The id is driven by the pleasure principle, which strives for immediate gratification of all
desires, wants, and needs.1 If these needs are not satisfied immediately, the result is a state
anxiety or tension. For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink

The Ego
• The ego is the system that mediates between the id and the superego. It acts as the referee
between temptation and virtue. To reach an audience’s ego, content must be created that
helps the consumer positively define themselves to the world. Two exemplary companies
that successfully market to a consumer’s ego, but in completely different ways, are Nike
and Gatorade.
• The superego, representing consumers’ conscience, tells us what we ought to do. It has or
best interest in mind and seeks to counter the allure and seduction of the “id.”
Advertisements appealing to our rational and balanced sensibilities include health food,
self-care, charitable donations, and PSA’s (public service announcements) such as anti-
smoking campaigns.

Jungian
• Carl Jung's proposed a typology based upon four bipolar dimensions, where each pole
represents an opposite preference and thus illustrates four dichotomies, viz, Extraversion –
Introversion, Sensing – Intuition, Thinking – Feeling, and Judging – Perceiving.
• 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 Extraverted 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 the following pairs of psychological construct/dimensions: sensing-intuiting,
thinking-feeling, extroversion-introversion, and judging-perceiving.
• Each of the four pairs is illustrative of two different personality characteristics.
Social& Cultural aspects of Marketing & its Impact on Consumer Behaviour
• Social factors are also subdivided into the following
1. Reference groups
- Under social factors reference groups have a great potential of influencing consumer
behaviour.
- Of course, its impact varies across products and brands. This group often includes an
opinion leader.
- Every individual has some people around who influence him/her in any way.
- Reference groups comprise of people that individuals compare themselves with.
- Every individual knows some people in the society who become their idols in due
course of time.
- Coworkers, family members, relatives, neighbours, friends, seniors at workplace often
form reference groups.
- Reference groups are generally of two types:
a. Primary Group – Consists of individuals one interacts with on a regular basis. Primary
groups include: Friends, Family Members, Relatives, Co Workers.
b. Secondary Groups - Secondary groups share indirect relationship with the consumer.
These groups are more formal and individuals do not interact with them on a regular
basis. Example - Religious Associations, Political Parties, Clubs etc.
2. Family
- The behaviour of a consumer is not only influenced by their motivations and
personalities but also their families and family members who can two or more people
living together either because of blood relationship or marriage.
3. Role and status
- People who belong to different organizations, groups or club members, families play
roles and have a status to maintain. These roles and status that they have to maintain
also influences consumer behaviour as they decide to spend accordingly.

Sub-Culture.
• Sub-culture is defined as a distinct cultural group that exists as an identifiable segment
within a larger, more complex society. Ex: Nationality, Social class, Religion, Language,
Age, Gender.
• Divisions Of Sub-cultures:
• Nationality Subculture: With in a particular country. Like in India – Anglo Indians ,Parsis,
Moghuls, Pathans, Indo-Chinese, Sinhalese, etc.
• Religious Sub-culture: Based on different faiths , beliefs, and religion. Like Muslims,
Sikhs, Christians, Hindus, Buddhists, etc

Indian Core Values

• Indian consumers are culture-oriented in the sense that they conform to the cultural
expectations of society.
• Core values of a society are adopted by a significant number of people; are enduring or
followed by people for a long time; and enables marketers to understand the behaviour of
consumers.
• The following are some of the core values of Indians:-
• Family orientation. Not only includes one’s own family but also extended family- siblings,
parents, grandparents etc. In such type of family’s male is a wage earner – as the chief of
the family.
 • Value- based brands at low- price. The brand at the lower end of the market in a number of
product categories like tea, soap, toothpaste, and shampoo typically cater to these kinds of
consumers.
• This type of consumers also mixes the brands and products from unorganized sector to
balance his/ her expenditure on such consumption needs. Unilever India Limited and
Colgate has a number of price points in almost all its product line.
• Savings Orientation Saving a good portion of money and spend the little for basic needs
only (earlier)Now, people are buying , above their basic needs. Like bicycles, bikes, cars,
TV’s, computers etc (instalment basis for convenient living) Investing money in gold is a
key factor. People use to buy jeweller from their family jewellers rather from brands like
Tanishq (2% market capturing)
• Festivities :A number of companies step up their advertisement campaigns during festive
months. A number of consumers also postpone their purchases, especially durables in hope
of getting various types of deals.
• Even a niche jewellery brands like Tanishq came out with Rakhi’s in gold on Raksha
Bandhan. Gold coins with images of god and goddess for the festival like Dhanteras (sign-
prosperity, and money).

Changing Indian Core Values

• Shopping as a Ritual Buying commodities and vegetables from routine shops or nearby
shops and hawkers even if the concept of BIG BAZAAR, SHOPER’S STOP etc spread
out everywhere (urban areas) BIG BAZAAR- promise to give ambience, service, and
variety.
• Bargaining, especially in the case of commodities and vegetables, is an unwritten rule in
the transaction.
• Food Habits Changing cultural trends in Indian Urban Market Achievement Orientation-
membership prestigious club, holidaying in a foreign resort, possessing a middle- end car
(Opel or Honda) Work Ethic- convenience products (one-stop shop, fast foods chains like
Mac Donald's etc )
• Material Success- Young highly qualified professional. The education, aspirations, and
intelligence of these consumers have resulted in their acquiring substantial wealth.
• The wealth is spent on essential products and services like- health, entertainment, and
convenience. There is a great demand for quality- oriented, branded services like laundry
services, in- home delivery of food, baby- sitters, pet-care people, and in small way, online
marketing of essentials.

Family
• A family may be defined as a group of two or more people related by blood, marriage, or
adoption living together in a household.
• This term is used to designate a variety of distinct social groups.
• Persons constituting a family may be described as members of the most basic social group
who live together and interact to meet their personal and mutual needs.
• Families are like organizations which are formed to accomplish particular functions more
effectively and efficiently than individuals can do on their own.
Types of families
Nuclear family- husband wife and child/ children. Extended / Joint Family. Single parent families
Social Stratification. – Class, Age, Gender.
• In all societies some system of social stratification exists whereby the members of the
society are differentiated.
• Every human society maintains a system of social stratification, or layering, through which
members are assigned ranks, grades, or positions
• A social class is a group of people who have the same social, economic, or educational
status in society.
• To some degree, consumers in the same social class exhibit similar purchasing behaviour.
• The makers of upscale brands in particular walk a fine line in terms of marketing to
customers.
• On the one hand, they want their customer bases to be as large as possible. This is
especially tempting in a recession when luxury buyers are harder to come by.
• On the other hand, if the companies create products the middle class can better afford, they
risk “cheapening” their brands. That’s why, for example, Smart Cars, which are made by
BMW, don’t have the BMW label on them.
• For a time, Tiffany’s sold a cheaper line of silver jewellery to a lot of customers. However,
the company later worried that its reputation was being tarnished by the line product’s
price is to some extent determined by supply and demand.
• Luxury brands therefore try to keep the supply of their products in check so their prices
remain high.
• Some companies have managed to capture market share by introducing “lower echelon”
brands without damaging their luxury brands.
• Johnnie Walker is an example. The company’s whiskeys come in bottles with red, green,
blue, black, and gold labels. The blue label is the company’s best product.
• Every blue-label bottle has a serial number and is sold in a silk-lined box, accompanied by
a certificate of authenticity
• Age is an important demographic factor that affects consumer behaviour. As people grow,
their needs change. Similar changes come to their buying decision making patterns. With
age, our health needs change and so do many other needs.
• Age brings changes to people’s lifestyle and with it their needs and personal values are
also affected. When people are young, they spend more on their lifestyle needs from fun
and movies to fashion.
• As they grow older, their expenses on these things shrink. Elderly people mostly remain
indoor; however, their health-related expenses may rise. In this way, age becomes one of
the fundamental demographic factors affecting consumer behaviour and buying decisions.
• Between male and female sexes, several things are different and these differences also
affect their buying choices. The two sexes have different needs in terms of fashion and
lifestyle. So, their consumer behaviour in these two areas can be vastly different. It is
mainly the difference in needs that lead to differing choices.
• However, there are several areas where consumption patterns can be similar too like in
terms of food and fun. The same movies and same fast-food brand may appeal to both the
sexes. The same is true about technological gadgets too. However, there are still several
products in the market which are meant for either of the sexes not each.
• Decision making patterns may also vary between the two sexes. The homemakers are less
likely to be involved in impulse buying. So many advertisements that you daily come
across are directed at either of the sexes. From beer adverts to the grooming products, the
 same adverts do not appeal to both the sexes. In most of the households, it is the women
that influence most of the product choices.

Reference Group.
• Reference groups are grouping a consumer identifies with and wants to join.
• For eg. a professional player of basketball or another sport, you have a reference group.
That’s why, for example, Nike hires celebrities such as Michael Jordan to pitch the
company’s products.

Family Life Cycle Stages

• The concept of household or family life cycle is important for marketers in segmenting the
market. In 1966, William Wells and George Guber proposed eight stages to describe the
family life cycle.
• The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes are
generally low since they have started careers, but they may have few financial burdens
and sufficient discretionary income.
2. Newly married: young couples, no children. If both spouses are employed, they will
have high level of disposable income.
3. Full nest 1: young married couples with youngest child under 6 years of age. There
would be greater squeezes on income because of increased on childcare. However, if
they are members of a joint family, the level of disposable income is likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of age.
Better financial position because income of both parents rising. Children spend more
hours outside their parents’ influence.
5. Full nest 3: older married couples with dependent teenage children living at home.
Financial position of family continues to improve. There are increasing costs of
college education for children.
6. Empty nest 1: older married couples with no children living with them, parents still
employed. Reduced expenses result in greater savings and highest discretionary
income.
7. Empty nest 2: older married couples with no children living with them and parents
retired. Drop in income and couple relies on savings and fixed income from retirement
benefits.
8. Solitary survivor 1: older single persons with low income and increasing medical
needs. Family decision making and consumption-related roles.
• When two or more family members are directly or indirectly involved in the decision-
making process, it is called family decision making.
• Such family decisions differ from individuals’ decisions in many ways. For example, if we
consider the purchase of a bicycle for a child, some of the relevant aspects to think about
can be: who recognizes the need for bicycle? How a brand is selected? What role the
concerned child plays?
• Joint decisions are more likely to operate in the early stages of family life cycle when both
spouses are relatively less experienced.
• After gaining experience, they usually delegate responsibilities concerning buying
decisions to each other.
Key Family Consumption Roles
• For a family to function as a cohesive unit, tasks such as doing the laundry, preparing
meals, setting the dinner table, taking out the garbage, and walking the dog must be carried
out by one or more family members. In a dynamic society, family related duties are
constantly changing however, we can identify either distinct roles in the family decision
making process.
• For example, a family member may be walking down the cookie aisle at a local
supermarket when she picks out an interesting new fat-free cookie. Her selection does not
directly involve the influence of other family members. She is the decider, the buyer and,
in a sense, the gatekeeper, however, she may not be the sole consumer. Products may be
consumed by a single family member, consumed, or used directly by two or more family
members, or consumed indirectly by the entire family.

Dynamics Of Husband-Wife Decision Making

• Marketers are interested in the relative amount of influence that a husband and a wife have
when it comes to family consumption choices. The relative influence of husbands and
wives can be classified as: husband dominated, wife dominated, joint, and autonomic.
• The relative influence of a husband and wife on a particular consumer decisions depends
in part on the product and service category. For instance, during 1950s, the purchase of a
new automobile was strongly husband dominated, whereas food and financial banking
decisions more often were wife dominated. Fifty years later, the purchase of the family’s
principal automobile is still often husbands dominated in many households
• However, in other contexts or situations, female car buyers are a segment to which many
car manufacturers are currently receiving a great deal of marketing attention. Also, in the
case of financial decision making, there has been a general trend over the past decade to
have the female head of household make financial decisions.
• Husband wife decision making also appears to be related to cultural influence. Research
comparing husband wife decision making patterns in the people’s republic of China and in
the United States revels that among Chinese there were substantially fewer “joint”
decisions and more “husband dominated” decisions for many household purchases
• However, when limiting the comparison to urban and rural Chinese households, the
research showed that in a large city such as Beijing, married couples were more likely than
rural couples to share equally in purchase decisions.
• Still further, because of China’s “one child” policy and the ensuring custom of treating a
single child as a “little emperor,” many of the parents purchase decisions are influenced by
the input of their child.
• In another recent cross-culture study, husband-wife decision making was studied among
three groups: Asian Indians living in India, Asian Indians living in the United States, and
American nationals.
• Results show a decrease in husband decisions and an increase in wife dominated decisions,
going from Asian Indians in India, to Asian Indians in the United States, to American
nationals. This pattern seems to indicate the impact of assimilation on decision making.
Opinion Leaders & Consumer Decision Making
• ‘Opinion leaders are generally people who have the ability to influence others. They
usually have deeper expertise in a certain area, and are often looked to for help in making
consumer decisions.
• Since most consumers are followers and rely on opinion leaders’ word of mouth, targeting
highly imaginative opinion leaders appears more financially effective’
• Opinion leaders are usually people who are more knowledgeable about a certain product
or service than the average consumer. As such, opinion leaders can shape how a product is
viewed
• Kylie Jenner has an astounding 93.9 million followers on Instagram, 21 million followers
on Twitter and 1.1 million subscribers on YouTube. Per featured post
• ads for Louis Vuitton or Hermes handbags, are rarely seen, Yet they are extremely popular
despite not being commonly advertised.
• but when Jennifer Lopez posts a photo on Facebook depicting her gripping a Hermes
Birkin bag, she becomes the opinion maker for a host of people who follow her.