MMS-Consumer-Behaviour-1-munotes

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1 Module 1
1
CONCEPT OF CONSUMER BEHAVIOUR ,
ROLESS, MODELS, PSYC HOLOGICAL
AND PHYSIOLOGICAL
Unit Structure :
1.0 Objectives
1.1 Introduction
1.2 Introduction, definition and impact of digital revolution and
importance to Marketing.
1.3 Models of consumer behaviour and their marketing implications:
1.3.1 The economic model
1.3.2 Learning model
1.3.3 Psychoanalytic model
1.3.4 S ociological model
1.3.5 Pavlovian Model
1.4 Howard Seth Model of buying behaviour
1.5 The Nicosia Model
1.6 The Engel -Kollat - Blackwell Model
1.7 Decision Making Model
1.8 Motivation: Definition, types of motives, (Positive and Negative
Goal, Rational versus Emotional Motives)
1.9 Discovering Purchase Motives Theories of motivation
1.10 Maslow's hierarchy of need s and its relevance to consumer
behaviour and marketing strategy
1.11 The physiology of technology on consumer behaviour.
1.12 Factors influencing Consumer behaviour
1.12.1 Social Factors
1.12.2 Cultural Factors munotes.in

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Consumer Behavio ur
2 1.12.3 Personal Factors
1.12.4 Psychological Factors
1.12.5 Marketing Factors
1.13 Summary
1.14 Exercise
1.15 Bibliography and Reference for further reading.
1.0 OBJECTIVES

This module will help the stud ents to understand the consumer buying
behaviour which will be helpful for the marketer as they can understand
the expectation of the consumers. Its helps in understanding that what
makes a consumer buy a product. It also helps in understanding that what
kind of products the consumer is looking for and according to that they
can release the product in the market.

1.1 INTRODUCTION
Consumer behaviour is basically a study of any individual, groups, or any
organization which involves all the activities related wi th the purchase or
buying strategy and the disposal of goods and services. It deals with how
the consumer’s emotions, attitudes, and choice affect the buying
behaviour. It deals with the study of any individual personality, lifestyles,
a behavioural variab le which helps in understanding the patterns the
consumer looking for.
1.2 INTRODUCTION, DEFINITION AND IMPACT OF
DIGITAL REVOLUTION AND IMPORTANCE TO
MARKETING

MEANING OF CONSUMER BEHAVIOR
Consumer behaviour refers to all the processes related to what, why, how,
when, from whom consumers purchase and pay for a product and how
they consume and dispose of it in order to meet their needs.
DEFINITION BY PHILIP KOTLER
Consumer behaviour include mental activity, emotional and physical that
people use dur ing selection, purchase, use and dispose of products and
services that satisfy their needs and desires
Impact of digital revolution and importance of marketing
Information related to consumer behaviour is important to any businesses
around the globe. Thro ugh online mode consumer are able to boost their munotes.in

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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
3 shopping experience. It helps in making necessary changes that will
empower consumers to make better purchasing decisions.
1) Talent to Research and Experiment
Through online technology helps the consumers to have good research
about any product in the market. This helps in comparing the product
online before making any decision on what to buy. The capacity of
information available on the internet about any product had helped the
consumer to experiment with dif ferent brands which influence their
purchasing decisions.
2) Accessible to Word -of-Mouth
The word - of- mouth plays a vital role in affecting the behaviour in the
market. In the market it is always seen that what the consumers are
looking for what the other pe ople are trying to say about the brand.
Branding means a lot for the consumer which actually helps in sharing
their experience with their network of people. Through social media, a
consumer has the power of expressing their opinion about a brand which
directly affects the sales figures in the market.
3) Artificial Intelligence Impacts Consumer Behaviour

The rising new AI technologies will in reality going to have a large impact
on customer behaviour. AI played a completely huge role in search engine
optimizat ion and how the Google set of rules works on this scenario. With
AI it is feasible to maintain the manufacturers status among the
marketplace and in preserving the sturdy connections with clients.

1.3 MODELS OF CONSUMER BEHAVIOUR AND
THEIR MARKETING IMPLICATI ON
Consumer Behaviour Models
 Purchaser behaviour is the study of how people make decisions to
spend their to be had resources at the consumption of associated
objects. It consists of the study of what they purchase how they
purchase wherein and onc e they purchase.

 Purchaser behaviour is the look at of how people make selections to
spend their available assets at the consumption of related items. It
includes the examine of what they buy how they purchase in which
and when they purchase.

 The buying behaviour is the process of the decision -making process in
which a person decides to buy a thing or not to buy a product. The
consumer decision making is a very includes a systematic way of
thinking.

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Consumer Behavio ur
4 1.3.1 Economic Model
 In this model, consumers follow the principle of maximum utility
based on the law of diminishing marginal utility. Economic man
model is based on the following effects. On this version, purchasers
comply with the precept of maximum software primarily based at the
law of diminishing marg inal software. Economic man version is based
totally on the subsequent consequences.

 Price Effect - Lower the price of the product more will be the quantity
purchase.

 Substitution Effect - Lower the price of the substitute product, lower
will be the util ity of the original product purchase.

 Income Effect - When more income is earned, or more money is
available, quantity purchased will be more. The economic theory of
buyer's decision -making was based on the following assumptions.
1.3.2 Learning Model
This model suggests that human behaviour is based on some core concepts
- the drives, stimuli, cues, responses and reinforcements which determine
the human needs and wants and needs satisfying behaviour.
Drive -A strong internal stimulus which compels
Stimuli - These are inputs which are capable of arousing drives or motives.
Cues - It is a sign or signal which acts as a stimulus to a particular drive.
Response - The way or mode in which an i ndividual reacts to the stimuli .
If the response to a given stimulus is "rewarding", it reinforces the
opportunity of similar response when faced with the equal stimulus or
cues. Carried out to marketing if an informational cue like advertising, the
buyer purchases a product (reaction); the beneficial revel in with the
produc t increases the possibility that the response might be repeated the
subsequent time the need stimulus arises (reinforcement).
1.3.3 The Psychoanalytic Model
The version shows that human wishes operate at numerous degrees of
recognition. His motivation th at is in those special degrees, are not clear to
the informal observer. They could only be analyzed with the aid of crucial
and specialized looking.
1.3.4 Sociological Model
This is concerned with the society. A consumer is an element of the
society and h e may be a member of many groups and institutions in a
society. His buying behaviour is influenced by these: groups. Primary
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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
5 influence on his buying. A consumer may be a member of a political party
where his dress norms are different from different member. As a member
of an elite organization, his dress needs may be different, thus he has to
buy things that confirm to his lifestyle in different groups.
1.3.5 Pavlovian Model
Ivan Pav lov, a well -known Psychologist, devised this customer behaviour
version is known as after him. Ivan Pavlov stressed experiments to
determine the alternate in behaviour with the assist of puppies. He
conditioned the canine's thoughts to receive a piece of m eat on every
occasion a bell is rung and measured the quantity of alternate in behaviour
on the basis of ranges of saliva secretion in dogs.
1.4 HOWARD SETH MODEL OF BUYING
BEHAVIOUR
Howarth Seth Model: This model has 4 variables:
i) Input Variables - Stimuli - Significative, Social and Symbolic Stimuli
ii) Perceptual & Learning Constructs -Consumer Psychology.
iii) Output Parameters - Purchase Decision - Post Purchase satisfaction &
Dissatisfaction
iv) External Variables - External influence on purchase Co nsumer
Characteristics -Financial status, social class, personality, necessity etc
1.5 THE NICOSIA MODEL
Nicosia Model: This model is same as the buying decision model. This
model talks about level of expose customer gets with respect to purchase
decis ions. It has 4 fields. (Compare with buying decision process)
i) Attributes - Product & Firms Attribute
ii) ii)Consumer research & evaluation
iii) Buying Decision
iv) Post Purchase Behaviour
1.6 THE ENGEL -KOLLAT - BLACKWELL MODEL
BLACK WELL MODEL: This is a model used in the study of buying
behaviour of consumers. It is based on the input -output phenomenon. This
model assumes that what takes place in the consumers black box of the
consumer's mind can be inferred from a study of observes stimuli and
responses. This model says than stimuli enter in the buyer mind and
according to that stimulus, buyer behaves accordingly.

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6














Figure (a) BlackWell Model
1.7 DECISION MAKING MODEL













Figure (b) - CONSUMER DECISION MAKING MODEL
CONSUMER DECISION MAKING MODEL STIMULI
(External
Factors)
Marketing Mix:
 Product
 Price
 Place
 Promotion
Environmental
 Economic
 Technologic
al
 Political
 Cultural BLACK WELL
Buyer Mind
(Internal Factors)
Consumer
Characteristic :
 Beliefs/
attitudes
 Values
 Knowledge
 Motives
 Perceptions
 Lifestyle
Decision -Mak ing
Process
 Problem
Solving
 Information
search
 Alternate
Evaluation  Purchase Responses
Purchase :
 Product
 Brand
 Source
 Amount
 Method of
payment
Organizational and social settings Motive Attitude Intention Purchase Decision Attention Brand
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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
7 The consumer's decision -making model deals with the process of
consumer decision making. This model consists of three stages t he input
stage; the Process stage and the output stage.
Input, Process & Output factors that are included in this model are: -
1. Input: The input stage can be broadly categorized into Firm's efforts
and Socio -cultural Environment.
 The firm's efforts relate to the firms marketing mix that is Product,
Promotion, Price, Channels of Distribution, People and Physical
evidence. This stage involves the activities the firm undergoes to sell
their products.
Socio -cultural surroundings on the other hand is the surr oundings of pals,
circle of relatives, society, tradition and sub tradition that surround a
purchaser. These are the important elements which client well evaluates
before making any purchase selection
2. Process: The input stage affects a consumer's decis ion making. The
decision -making is the second stage called process. In this stage the
consumer does him pre -purchase research and evaluation based on the
firms’ efforts and socio -cultural environment. The firm's efforts and socio -
cultural environment influ ence a consumer's psychological field. The
psychological field consists of Motivation, Perception, Learning, Attitude
and Personality of a consumer. This stage also evaluates the past
experience of the consumer. Process includes various a step through whic h
consumers goes through before making a buying decision. These steps are
need recognition, awareness, Evaluation and finally the purchase.
a. Need recognition: Whilst one is aware about a want, tension is created
and one chooses a product to satisfy his n eeds. There may be also a
opportunity that a person may be aware about a product before its want is
recognized. That is indicated through the arrows going each ways from the
want to the product and vice -versa.
b. Product recognition: Product focus can be h ad from commercial or
exposure to different sorts of media or through the social circle. The notice
and the need cause the constructing of hobby. In a few cases, the hobby
may additionally breakdown and, the decision process also stops or can be
postponed in the intervening time.
c. Evaluation: Evaluation may also consist of having greater data
approximately the product and evaluating and contrasting it with different
products. This will be achieved theoretically or through taking an ordeal.
Once the evalua tion is finished, the client's hobby may both increase and
he has intentions to shop for, or he may additionally get bored and the
selection method may additionally again forestall or be postponed.
d. Intention: Once there is intention to purchase the prod uct, the
consumer goes ahead and acts or purchases the product. Once the product
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Consumer Behavio ur
8 the more the consumer becomes aware of the positive and negative points
of the product.
3. Outp ut: The final stage in the consumer decision -making is the Output
stage. This stage is concerned with the actual purchase, repurchase and the
purchase evaluation. Output means the way in which consumers react to
the marketing efforts of company. Some of th e consumer responses to
marketing efforts are -
 Purchase Decision.
 Selection of Product
 Selection of Brand
 Selection of store or dealer.
 Amount and timing of purchase
 Post purchase behaviour
Post-purchase behaviour: If, after the purchase and use of the pr oduct
the customer is satisfied, he is happy and goes in for repeat purchases or
recommends the same to his friends and acquaintances. If, however, the
customer is dissatisfied, he discontinues further purchase of the product
and builds a negative attitude towards it, which may be harmful to the
company. The post -purchase behaviour is very important for the marketer
and the company because it leads to proper feedback for improvement and
maintaining the quality and features desired by the product. If the
customer is very happy with the purchase, he forms a good impression
about the product and the company.














Figure (c) - Consumer Behaviour Model
1.8 MOTIVATION: DEFINITION , TYPES OF MOTIVES,
(POSITIVE AND NEGATIVE GOAL, RATIONAL
VERSUS EMOTIONAL MOTIVES)
Definition of Motivation: The driving force within the individual that
impels them to action Firm’s
Marketing
effort

Social Environment Need RecognitioProduct
Awareness Evaluation Intention
Interest
Interest
Breakdown Purchase
Post-Purchase Behaviour Repeat Purhase Discontinuation munotes.in

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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
9 a) Produced by a state of tension due to an unfulfilled need.
b) Which leads to consc ious/subconscious attempts to reduce the
tension.

















Figure (d) Motivations
Types of Needs:
1) Innate Needs: Physiological needs that are considered primary needs
or motives.

2) Acquired Needs: Generally psychological need s that are considered
secondary, needs or motives.
Goals
Generic Goals: The general category of gaols that consumers see as a
way to fulfil their needs
e.g.: I want to get a PhD degree.
Product -Specific Goals: The dreams selected with the aid of an cha racter
rely upon their:
A) personal stories
B) bodily capability
C) triumphing cultural norms and values
D) purpose’s accessibility inside the bodily and social environment.


Unfulfilled
needs, wants and desires Tensio Drive BehavioGoals or
need
fulfilment Cognitive Processes Learning
Tension
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Consumer Behavio ur
10 Types of Goals:
a) Ideals
b) Oughs
c) Interdependence of needs and goals
Positive and Nega tive Motivation

a) Positive Motivation
 A driving force towards some object or condition.
 Leads to an Approach Goal.
 A positive goal toward which behaviour is directed.

b) Negative Motivation
 A driving force away from some objects or condition.
 Leads to an Avoi dance Goal.
 A negative goal from which behaviour is directed away.

Types of Motives

a) Rational Motives: Goals chosen according to objective criteria (e.g:
price)

b) Emotional Motives: Gaols chosen according to personal or subjective
criteria (e.g: desire fo r social status).

c) Latent Motives: Motives that the consumer is unaware of or unwilling
to recognize. Harder to identify. Require projective techniques to
identify.

d) Manifest Motives: Motives that the consumer is aware of and willing
to express.
1.9 DISCOVERING PURCHASE MOTIVES THEORIES
OF MOTIVATION
Classification of Needs and Motives
Primary Needs: It is also known as physiological, biological, basic
needs. There are animal drives which are essential for survival.
Secondary Needs: there are also called as learned or derived needs: such
as power, Achievement, Status, Affiliation.
General Needs: in this category, a need must not be learned but at the
same time, it’s not completely physiological e.g.: competence, curiosity,
Affection.
Needs have a certain priority. As the basic needs are satisfied, an
individual seeks to satisfy the higher needs. If the basic needs are not met,
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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
11 interdependent and overlapping. One need does not di sappear when the
other needs appear.
Herzberg’s motivation -hygiene theory
Frederick Herzberg conducted a study at case -Western Reserve
University. It was an analysis of the experience and feelings of 200
engineers and accountants in 9 different companies. They were asked to
describe a few things in their job where they felt exceptionally good and
exceptionally bad about their jobs
There are some job conditions which dissatisfy employees when they are
absent, but their presence does not motivate them -HYGIE NCE
FACTORS.
There are some job conditions which build strong motivation and job
satisfaction when they are present, but their absence rarely proves
dissatisfying -. MOTIVATIONAL FACTORS
Hygiene Factors
Hygiene factors are elements in a work place that can cause dissatisfaction
such as:
Company policies
Relationship with boss
Supervision
Work conditions
Salary
Motivators Factors
Motivators are elements in a work place that can cause satisfaction such
as:
The job itself
Recognition
Achievement
Responsibilit y
Advancement
McGregor’s Theory X and Theory Y
McGregor has given certain assumptions which are involved in motivating
employees. These assumptions are characterised in two opposite
directions.
1. Theory X - these assumptions about human nature are negative.
2. Theory Y - these assumptions about human nature are positive.
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12 Theory X and Theory Y (Douglas McGregor)
Theory X
The assumptions that employees dislike work, are lazy, dislike
responsibility, and must be coerced to perform.
Theory Y
The assumptions that emplo yees like work, are creative , seek
responsibility, and can exercise self -direction.
Theory Z
It is an approach based on combination of American and Japanese
management philosophies.
theory was first identifies by William Ouchi in 1981 in the book , Theory
Z, how Americans can meet the Japanese challenge . It is the blend of
theory X & Y.
Features of Theory Z
1) Trust - if there is trust, integrity and openness, then employees are
highly motivated and chances of conflicts minimize.

2) Strong bond between organis ation and employees - can be
enhanced by methods like life time employment, career planning of
employees.

3) Employee involvement - helps in increasing commitment among
employees and giving due recognition to them.

4) No formal structure - but perfect team work like a basketball team.

5) Coordination of human beings - to be taken care of by leader.
1.10 MASLOW'S HIERARCHY OF NEEDS AND ITS
RELEVANCE TO CONSUMER BEHAVIOUR AND
MARKETING STRATEGY
This principle was evolved by using Professor of Psychology Abraham
Harol d Maslow in Columbia college. He changed into high -quality
recognized for developing Maslow’s hierarchy of desires. A concept of
Human Motivation, in 1943 specializes in describi ng the ranges of boom
in humans .
Abraham Maslow sought to provide an explanati on for why humans are
pushed via precise needs at precise instances. His solution is that human
needs are arranged in a hierarchy from most to least processing. Humans
will try to satisfy their most important desires first. Whilst someone
succeeds in enjoy able an important need, he'll then try and satisfy the
subsequent crucial want.
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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
13 Needs:
 Something that is necessary for an organism to live a healthy life
 Deficiency would cause a clear negative outcome - deficiency or death
 Can be Objective/Physical or Su bjective -
 Objective needs food, shelter, sleep
 Subjective needs - affection, acceptance, self -esteem
Physiological Needs: Physiological needs are those required to preserve
existence, which includes:
• Air
• Water
• meals
• Sleep
• Excretion
In keeping w ith Maslow's idea, if those essential needs are not glad then
one will simply be encouraged to fulfill them. Better needs which includes
social wishes and esteem aren't recognized until one satisfies the wishes
fundamental to life.
Safety Needs
Once physio logical needs are met, one's attention turns to safety and
security in order to be free from the threat of physical and emotional harm.
Such needs might be fulfilled by:
 Living in a safe area
 Medical insurance
 Job security
 Financial reserves
According to t he Maslow hierarchy, if a person feels threatened, needs
further up the pyramid will not receive attention until that need has been
resolved.
Esteem Needs
Once a person feels a sense of "belonging", the need to feel important
arises. Esteem needs may be cl assified as internal or external. Internal
esteem needs are those related to self -esteem such as self respect and
achievement. External esteem needs are those such as social status and
recognition.
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14 Some esteem needs are:
 Self-respect
 Achievement
 Attention
 Recognition
 Reputation
Self-Actualization
Self-Actualization
Self-actualization is the summit of Maslow's hierarchy of needs. It's far the
quest of achieving one's full capability as a person. Not like decrease
degree desires, this need is never fully glad ; as one grows psychologically
there are constantly new possibilities to continue to grow. Self -actualized
people have a tendency to have wishes consisting of:
• truth
• Justice
• awareness
• which means


Morality,
Creativity,
Spontaneity,
Problem solving,
Lack of prejudice
Self-actualization Acceptance of facts
self-esteem, confidence,
achievement, respect of others,
Esteem respect by othe rs,

Love/Belonging friendship, family, sexual intimacy

Safety security of body, employment resources, morality,
the family, health, property
Physiological breathing, food, water, sex, sleep, homeostasis,
excretion

Figure (e) Maslow's hierarchy of needs

1.11 THE PHYSIOLOGY OF TECHNOLOGY ON
CONSUMER BEHAVIOUR
The physiology of technology on consumer behaviour that influences are:
1) Motivation.
2) Perception. munotes.in

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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
15 3) Learning
4) Attitude or belief system

The culture and soc ial factors plays a vital role in making any product
popular. Many industries spend a lot of money just in trying to influence
the brand name in the market. Personal factors also influences consumer
behaviour as the tastes changes over the period of time. The popularity
also depends upon the payments methods used in the target and the
economic class.
Motivation speaks about the internal needs of an individual. How to
motivate any crowd is an important tool for any marketing segment.
Consumers purchase somet hing or the other everyday and their decision
regarding the product selection also changes a lot. Keeping all these
factors in mind we plan or design the marketing materials.
1.12 FACTORS INFLUENCING CONSUMER BEHAVIOUR
There are five factors which affects the decision making for any product in
the target market of any consumer.
1.12.1 Social Factors
 Reference Groups: Small group of people such as colleagues at work
place, friends etc. influence values and choices of other members,
expose them to new lifesty les and create pressure to choose certain
products E.g. Mobiles

 Family: Family members influence buying decision. Parents
influences decision of children. However, nowadays, children are well
informed about products and services through social media an d
therefore, they influence the buying decision of parents.

 Roles and Status: A person performs certain roles in a particular
group in the organization. E.g. Person may perform the role of senior
executive in a firm and therefore, enjoy higher status. Pe ople may
purchase the products that conform to their status, especially in the
case of branded clothes, cars, shoes etc.
1.12.2 Cultural Factors
 Religion: may influences consumer behaviour to a certain extent. E.g.
consumption of alcohol, tobacco or meat products is restricted in
certain religions.

 Sub-culture: Each culture consists of sub -cultures that provide
specific identity to its members. Sub -culture includes nationalities,
racial groups, language etc.

 Social Class: Human societies exhibit social stratification that may
sometimes take the form of a caste system where the members share
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16 1.12.3 Personal Factors
 Age Factor: The age factor influence buying behaviour. E.g. teenagers
may prefer trendy watches, wher eas, office executive may prefer
formal ones.

 Gender: The consumer behaviour varies across gender. E.g. girls may
prefer certain feminine colours such as pink, boys may prefer blue,
brown.

 Education: Highly educated persons may spend on books and
persona l care products than the people with low education.

 Income Level: Normally, higher the income level, higher is the level
of spending and vice -versa.

 Status in Society: Persons enjoying higher status in society spend
good amount on luxury items such as lu xury cars, luxury watches,
premium brands of clothing etc.
1.12.4 Psychological Factors
 Learning: takes place through information and experience. E.g. when
customer buys a new brand of shampoo and is satisfied with it, he is
likely to be brand loyal.

 Attitude: Tendency to respond in a given manner to a particular
situation or object or idea. Consumers may develop a positive, or
negative or neutral attitude towards certain products or brands.

 Motive: the inner drive that motivates a person to act or behav e in a
certain manner. Marketer must identify the buying motives of the
target customers and influence them to respond positively.

 Perception: It is the impression, which one forms about a certain
situation or object. E.g. a student may perceive Sports Da y as an
important event and therefore, he/she would make every possible
effort including purchase of new shoes, jersey etc. whereas, another
student may be casual about it and therefore, would not make any such
extra efforts.
1.12.5 Marketing Factors
Marketing -mix variables greatly influence the consumer buying
behaviour.
 Product: The features of the product, its uniqueness, packaging etc.
should appeal to the customers.
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Concept of Consumer Behaviour, Roless, Models, Psychological and Physio logical
17  Pricing: Pricing is a very sensitive decision. Premium pricing strategy
may appeal to upper income customers groups and discount pricing
may appeal to price sensitive.

 Promotion: Promotion greatly influences buyer choice. The elements
of promotion mix include publicity, advertising, sales promotion,
salesmanship etc.

 Place: The number of middlemen involved, type of channels, area
coverage etc.
1.13 SUMMARY
This course will help the students to study of how consumers select and
purchase any goods or services, the ideas to satisfy the customer’s needs
and its requirements. And why it is important to understand the customer’s
behaviour in greater detail.
1.14 Exercise
1. Explain the factors influencing consumer behavior.
2. Define Motives a nd explain its types.
3. Explain Dec ision making model.
1.15 BIBLIOGRAPHY AND REFERENCE FOR
FURTHER READING
 https://www.google.com
 https://youtube.com/@nursinglecturesonline7423
 youtube channel -easyMBA,
 Behaviour by Leon G Schiffman, Joseph L Wisenblit





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18 Module 2
2
MARKETING APPLICATIONS, LEARNING
PROCESS ES AND ATTITUDES
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Introduction Absolute and differential thresh hold
2.3 Internal and external factors affecting perception
2.4 Gestalt Psychology, subliminal perception
2.5 Consumer Imagery
2.6 Zaltman metaphors to understand attitude towards products
2.7 Learning and Information Processing and its impact on behaviour.
2.8 Attitudes: Concepts and Models - Cognitive Dissonance
2.9 Tri- component Theory
2.10 Multi attribute model
2.11 Attitude and market segmentation.
2.12 Product development strategies and attitude change strategies
2.13 Summary
2.14 Excercise
2.15 Bibliography and Reference for further reading.
2.0 OBJECTIVES

This module deals the study of individual organization and how the
individua l select and use product and services. It is mainly concerned with
the psychology, motivation, and behaviour. This also deals with balancing
the relations between the seller and buyer in the marketplace.




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Marketing Ap plications,
Learning Processes and
Attitudes
19 2.1 INTRODUCTION
This chapter will help the studen ts to understand various theory and its
uses. How this theory can help in decision making in the organizations.
Decision making play a vital role in any product development process and
various values that is variables helps in decision forming.
2.2 INTROD UCTION ABSOLUTE AND DIFFERENTIAL
THRESH HOLD
What is a threshold?
A threshold is something which holds some limit to get into that range of
threshold value.
Any minimum and maximum intensity of stimuli which we can sense out
is called Threshold.
It is used to measure any sensation which helps in determine the threshold
stimulus it means that the minimum energy or value you can say required
evoking the sensation.
The two types of threshold are:









Figure (a) Types of Threshold .
What is Absolute Threshold?
“the bottom stage at which an character can enjoy a sensation.”
(Schiffman and Wisenblit). In other phrases, an absolute threshold is the
point to which you can still make the difference among “something” and
“not anything” is taken into consideration that character’s absolute
threshold to a specific aspect or stimuli (Schiffman and Wisenblit).
The minimal stage of strength which could stimulate the sense organ is
known as absolute threshold. It is the lowest level at which an character
can experience a sensation.
It's miles the smallest amount of stimuli needed to have the impact on a
few individual senses 50% of the time. Absolutely the threshold for weight
is the minimal quantity of weight wished for any individual to note.
Threshold Types Absolute Differential
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20 Some of the example can be:
Touch: touching some soft feather around anyone arm until they feel it.
Smell: spraying some perfume in a room on someone until they feel it.
Now here the threshold can depends on humidity, the type of odor etc.
Hearing: Suppose playing a tone louder until they detect it. Now here the
threshold value changes according to the age of the subject.
What is differential Threshold?
Differential threshold or the just sizeable distinction (JND) is “The
minimum difference that may be dete cted among two comparable
stimuli.” (Schiffman and Wisenblit) . Ernst Weber, a scientist, determined
“…that the JND among two stimuli become now not an absolute quantity,
however an quantity relative to the intensity of the first stimulus”
(Schiffman and W isenblit).
It is also called simply important difference (JND). It's far smallest
amount of something that have to exchange a person to notice 50% of the
time. It can be also states as the minimal distinction in light needed for an
character to note it. I t's miles frequently used in psychology. The
difference threshold for weight is the quantity of trade within the weight
wanted for an individual to be aware.
2.3 INTERNAL AND EXTERNAL FACTORS
AFFECTING PERCEPTION
Definitions: Perception
 The observe of notion is worried with identifying the methods thru which we interpret & organize sensory data to supply our aware experience of gadgets and item courting.
 notion is the technique of receiving facts about and making experience of the arena round us.
 It includes determining which facts to observe, how to categorise this statistics and a way to interpret it in the framework of our current understanding.
 notion includes all those procedures via which an man or woman receives information about the environmen t-seeing, listening to, feeling, tasting, and smelling.
 The study of those perceptual processes suggests that their functioning is laid low with three classes of variables: the gadgets or events being perceived, the environment in which perception happens and the individual doing the perceiving. munotes.in

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Marketing Ap plications,
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21  Perception is defined as the process of selection, organization & interpretation of sensory information (Sight, Sound (hearing), Touch, Smell, & Taste) in order to understand environment.
 Perception is a way to understand what is happening around us. Different people may perceive different from same scenario. It is difficult to change perception once developed.
Definitions: Consumer Perception
 It refers to the manner through which a customer selects, organizes, andtranslates the facts about the products to create a meaningful photograph of the product/emblem.
• perception is the view or impression, which an man or woman has approximately sure items, events and behavior of humans within the surroundings.
Needs and I mportance of perception








Figure (b) Importance of perception
Factors influencing Consumer Perception















Figure (b) Consumer Perception
Attitude Formation Effective Communication Customer Loyalty Customer Satisfaction Corporate Image
Product
Promotion Consumer
Experience of
the product
Price of th e
Product
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22 Factors Affecting Perception: There three categories of factors: 1) Factors in the Perceiver: the thing which affects the individual who want to perceive.
 Personality (one individual likes one thing while the other person like something else; it is something personal likes & dislikes).
 Motives (need of an individual influence the percept ion).
 Attitude (positive attitude, negative attitude, neutral attitude).
 Interest (an individual perceive more about the things he/she has interest).
 Experience (past experience has great influence in future perception)
 Expectation (if the stimuli meets one's expectations, then it are easy to perceive).
2) Factors in the Target: (the things which affect the object which and individual want to perceive)
3) Factors in the Situation: (the time or context in which an individual want to perceive).
 Time also matters in perception, for example if you drive blue vehicle in night it may perceived as black)
 Work Setting (odd things in the workplace perceived first)
 Social Setting (people get more attention who don't follow social norms for example, in a party you cannot wear blue apron used in factory).
Internal Factors
1) Learning has considerable influence on perception.
 It creates expectancy in people.
 People lend to perceive what they want to perceive.
 Managers and Employees past experiences & learning strongly influence their perceptions.
 Executives are influenced by their functional backgrounds while making decisions.
 They perceive their own areas of expertise as being the most important to consider while solving problems.
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Marketing Ap plications,
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23 2) Psychological Needs
 Needs play an important role in Perceptual Selectivity.
 Unreal things often look real because of deprived needs.
 A thirsty person in a desert gets the illusion of water when seeing sand (Mirage).
 People when kept hungry for sometime were shown pictures & were asked to describe what they saw in them. Most of them reported more food items in such perceptions
3) Age Difference
 Older, senior executives complain about inability of the new young ones to take tough decisions concerning terminating people or paying attention to details & paper work.
 Young managers complain about the old guards resisting change & using paper and rules as ends in themselves.
 Generation Gaps contribute to different perceptions.
4) Interest
 Perception is influenced by the interests of the perceiver.
 An architect will notice many details of buildings.
5) Ambivalence
 combined feelings about a state of affairs.
 A young guy can be ambivalent approximately his fiancée's virtues & shortcomings.
 Halo effect inside the groups.
6) Paranoid perception
 a person's perception is so selective that he can locate little not unusual floor for verbal exchange with others.
 terrible se lf-concept and lack of confidence.
 As a end result such character behaves in an rigid manner.
External Factor
1) Size
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Consumer Behaviour
24  The bigger the size of the stimuli the bigger is the probability that it is perceived.
2) Repetition
 The repetition states that a repeated external stimulus is drawing more attention than a single one because it increases individual sensitivity or alertness to the stimulus.
3) Novelty and Familiarity
 The repetition principle states that either a novel or a familiar external situation can sense as an attention getter.
 New objects or events in a familiar setting or familiar objects or an event is new settings draw better attention.
4) Contrast
 An object which contrast with the surroundings is more likely to be noticed then the objects which blend in the environment.
 The repetition principle states that either a novel or a familiar external situation can sense as an attention getter.
5) Motion
 This standards nation that a transferring item draws extra attention in comparison to the still objects.








Figure (c) Factors Affecting Perception

2.4 GESTALT PSYCHOLOGY, SUBLIMINAL PERCEPTION
The psychology of seei ng things as a whole element instead of individual
element is called Gestalt psychology. This psychology emerged in early
20th century in Germany and Austria. Indiv iduals
Perception Situation Factors
 Physical setting
 Social setting
 Organizational setting Perceiver’s
Characteristics
 Needs
 Experiences
 Values Characteristics of
Perceived
 Nature
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Marketing Ap plications,
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25 In German Language Gestalt means:

.






Figure (d) Gestalt psychology in German
This ps ychology lists down the principles of Gestalt theory those are
as follows:
1) Figure –Ground
2) Similarity
3) Proximity or Common Region
4) Continuity
5) Closure
6) Symmetry And Order

1) Figure – Ground
This rule states that people when they see a figure they either see the
foreground or background.
So what it is trying to say that whenever we see any work of Art either
we see the background of that Art or the foreground of that Art.

2) Similarity
In simple words it means that when we see similar things we usually
group them tog ether. This might be done by seeing the shapes, size,
and color.

3) Proximity or Common Region
This rule states that, things which are paced closely together looks
more related to each other, than things placed for apart. Example of
Close Region: this rule v ery similar to rule of proximity. It states that
when object are placed in a closed region. We perceive them as
related.
4) Continuity
This rule states that, element or things which are placed on line or
curve seems to be more related, than the elements which are placed
randomly.
5) Closure
This rule states that, when we look at the complex arrangement of
elements, we tend to look for single or recognizable pattern.


German Gestalt Means Configuration Pattern
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Consumer Behaviour
26 6) Symmetry And Order
This rule states that, elements which are symmetrical to each other are
percei ved as a same group or related to each other.











Figure (e) Gestalt Principles of Perception
2.5 CONSUMER IMAGERY
What is Consumer Imagery?
It is the mental or rational picture that the marketer creates about the
goods and service s. It is a process of creating the image of a consumer or
any customer of any organization towards to any goods or services.
There are some steps in Consumer Imagery which are as follows:
1) Product Positioning
Placing a product in the minds of customer that how it is different
from others product by making best image in comparison to other
competitive product in the market.
2) Umbrella Positioning
Placing an entire of product under one brand for marketing for e.g.:
Pizza and delivery.

3) Competition Positioning
Making something different from its competitors for creating value of
your market.

4) Services Positioning
Unique identify of a service in a competitive market. A valuable
service has great impact on customers.
2.6 ZALTMAN METAPHORS TO UNDERSTAND
ATTITU DE TOWARDS PRODUCTS
By using metaphors to nonverbal images, Zaltman introduced a technique
called Zaltman Metaphoric Elicitation Technique (ZMET). Gestalt Principles
of Perception Symmetry and
Order Closure Continuity Figure – Ground Similarit y Proximity or
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Marketing Ap plications,
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27 In this technique, the respondents are asked to use his/her imagination and
let the product be described with a picture or non verbal image.
Helps the researches to understand the feelings about the product.
Steps involve in the ZMET process are:

1 2 3 4



5 6 7 8



Figure (f) ZMET Process
2.7 LEARNING AND INFORMATION PROCESSING
AND ITS IMPACT ON BEHAVIOUR
Information Processing Model
Data Processing version or facts improvement model is given via
Atkinson -
Shiffrin. Statistics processing is a idea of learning that explains how
stimuli that input our memory structures are selected and prepared for
garage and retrieved from reminiscence.
This version is used by cognitive psychologist to explain and describe
mental strategies.
The version hyperlinks the wondering method of a human with working of
computer.
Similar to the laptop, the human minds soak up facts, organize and shop it
to be retrieved at a later time.
1) Sensory Memory - Sensory memory - In pc, data is entered by way of
input devices like a keyboard or scanner. While in human thoughts, the
enter device is known as Sensory Regist ers, composed of sensory
organs just like the eyes and the ears via which we receive data
approximately our environment.
2) Working Memory - This reminiscence is likewise referred to as short
term memory. A transient storage that holds statistics as a pers on
techniques it. As information is obtained through the pc, it is processed
in the vital Processing Unit, which is equal to running reminiscence.
3) Long term Memory - In computer, information is stored in hard disk
which is equivalent to long term memory. In comparison with human
mind, this is where information is temporarily held so that it may be Preparatio n Storytelling Missing Images Triad task
Metaphor Probe Sensory Metaphors Vignette Digital Imaging munotes.in

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Consumer Behaviour
28 used, discarded, or transferred into long term memory. This memory is
also considered as a permanent information store.

Diagram of Information Processing Mode l

Maintenance &
Elaborative









Figure (g) Information Processing Model
Some important terms of Information Processing Model (IPM)

1) Chunks: Process of mentally combining separate items into larger
more meaningful units.

2) Dual Processing: Students learn more if verbal explanations are
supplemented with visual representations.

3) Rehearsal: A process of repeating in formation over and again. If
rehearsed enough, it can transferred to long term memory.

2.8 ATTITUDES: CONCEPTS AND MODELS -
COGNITIVE DISSONANCE
Concepts of Attitudes
Attitudes are evaluating statements -either favourable or unfavourable
about the objects, people or events. Basically it reflects how we feel about
something. Attitudes are consistent which are very difficult to change.
Consumer attitudes will determine which product or which brand you are
going to buy. An learned predisposition to behave in a consistently
favourable or unfavourable manner with respect to a given object. They
are formed as a result of direct experience with the product, information
acquired from others and exposure to mass media. Attitudes have
consistency: Do not change easil y. Attitudes occur within a situation.



Stimuli Sensory
Memory Attention Working
Memory Retrieve
Encode Long Term
Memory Rehea
rsal
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Marketing Ap plications,
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29 Structural Models of Attitudes are:







.

Figure (h) Models of Attitudes
2.9 TRI- COMPONENT THEORIES
Tri-Component theory includes three models which help in determine how
an attitude is developed by a person towards a particular product or
objects, brand and so on.’
Consumer attitudes will determine which product or which brand you are
going to buy.
There are three models which help in determining how an attitude is
developed by a person towards a particular product or brand and object
and so on.
Attitudes comprise three components:






Figure (i) Components of Attitudes
1) Cognitive Component

An opinion or perception or manner of wondering. It's miles the
thoughts about an mind -set.

It states that someone evolved any beliefs or attitude toward a
particular object, brand that's primarily based on private
interaction. It's far a logical thinking and analysing rational system
via which a person develops mind -set which can be wonderful or
terrible beneficial or detrimental towards a product, object, or logo
it has a tendency in the direction of rational elements.



Cognitive ComponeAttitudes Affective Co native Models of Attitudes
Tri-Component
Models MulitA ttribute
Attitude Models The Trying -to-
Consume Models Attitude -toward -
the-Ad-Model s
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Consumer Behaviour
30 2) Affective Component

It is the opposite of cognitive model. It is pretending to rational factor
or affecting component pretends t o emotional or sentimental factors.
Now I developed a favourable attitude towards a particular product or
brand which was given to me as a gift from my brother. So because of
emotional or a favourable attachments towards the product or brand, I
developed a emotional attitude towards that object or brand.

3) Conative Component

This element pretends whether a person has an intention for buying a
particular product or brand or not. So if I don’t have any intention to
but any luxury car for example because I can not afford it so I
developed an unfavourable attitude towards that brand or product
reason I do not have an intention of buying it.
2.10 MULTI ATTRIBUTE MODEL
Attitudes fashions that take a look at the composition of customer attitudes
in terms of sel ected product attributes or ideals referred to as Multi
characteristic version
1) The attitude -toward -item version
Mind -set is feature of evaluation of product precise beliefs and
evaluations.
2) The mindset -closer to -behaviour model
Is the mind -set toward s behaving or appearing with appreciated to an item,
rather than the mindset closer to the object itself?
A complete, integrative version of attitudes. A version that proposes that a
patron paperwork various feelings (influences) and decisions (cognition)
because the end result of publicity to an commercial, which, in turn, affect
the consumer’s attitude toward the advert and mindset closer to the brand.
2.11 ATTITUDE AND MARKET SEGMENTATION
Concept of Market Segmentation

In business, market segmentation determines who is in your target market -
and who is not. When utilizing market segmentation you look at all the
people who could buy your product and decide how to break them up into
groups t hat have similar needs, wants or demand characteristics.

When you do this, you are able to communicate with different groups using
different messages and marketing techniques.

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Marketing Ap plications,
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31 An ideal market segment is:
1) Measurable.
2) Large enough to earn profit.
3) Stable, not going to vanish after a short time.
4) Reachable by your marketing strategies.
5) Homogenous and responds similarly to your marketing strategies.
Bases for segmenting Consumer Market
Marketers categorize their prospects into customer segme nts in order to
keep their efforts focused and effective. When your prospects are grouped
correctly, it's much easier to target specific groups and tailor your efforts
for maximum impact.
Below are the most common forms of segmentation.
1) Geographic.
2) Demogr aphic.
3) Psychographics.
4) Behavioural segmentation.
These segmentation variables can be used singly or in combination.
1) Geographic Segmentation
Geographic segmentation calls for dividing the market into different
geographical units such as nations, states, re gions, or a few geographic
areas.








Figure (j) Geographic Segmentation
Example: Instead of trying to sell a Big Mac (a beef burger) in India and
affecting the local sentiment, they introduced the Maharaja Mac: a
variation of the Big Mac but without pork or beef.
2. Demographic Segmentation
Demographic Segmentation
Demographic segmentation agencies clients and capability clients together
by using focusing on certain developments including age, gender, profits,
career & own family reputation. Location
Time Zone
Clima te and S eason Cultural
Language
Urbanity Geographic
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Consumer Behaviour
32









Figure (k) Demographic Segmentation
Example: For a younger demographic (12 -24) Snapchat and Instagram
are the best channels. The largest group of Twitter users are between 25 -
34.
3. Psychographic Segmentati on
Psychographic Segmentation
In psychographic segmentation, customers are divided into specific
organizations on the premise of lifestyle and/or character. Human beings
within the equal demographic group can exhibit very special
psychographic profiles. He re we might take a look at clients and outline
them by way of their: persona trends, pastimes, life desires, Values beliefs,
existence
Instance: If a shoe producer intends to design footwear for numerous
sections of the market along with athletes, workplac e-goers, college
students, and many others. Dividing organizations in line with customers
whose life -style revolves around biking or running, those folks who decide
upon formal shoes, and similar different segmentation. This manner, the
producer can produc e footwear the cater to each lifestyle.
4. Behavioral Segmentation
Behavioral segmentation refers to a process in marketing which divides
customers into segments depending on their behavior patterns when
interacting with a particular business or website.
These segments could include grouping customers by:
1. Their attitude toward your product, brand or service;
2. Their use of your product or service.
3. Their overall knowledge of your brand and your brand's products,
4. Their purchasing tendencies, such a s buying on special occasions like
birthdays or holidays only, etc.
Location
Location
Location
Location Location
Location
Location
Location Demographic
Segmentation
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Marketing Ap plications,
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33 Types of behavioral segmentation:
i. Segmentation based on purchase and usage behavior
ii. Occasion or timing -based segmentation.
iii. Benefits sought segmentation.
iv. Segmentation based on customer loyalty.
2.12 PRODUCT DEVELOPMENT STRATEGIES AND
ATTITUDE CHANGE STRATEGIES
Product improvement, moreover called new product management, is a
sequence of steps that consists of the conceptualization, layout,
development and marketing an d advertising of newly created or newly
rebranded items or services.
Product Development
A product is a superb, provider, or concept inclusive of a bundle of exact
and intangible attributes that satisfies clients and is acquired in trade for
money or some other unit of price.
Product Planning/Development"
Refers to the systematic decision making related to all aspects of the
development and management of a firms products
"New" products are created as the result of an idea or perceived "gap" in
the current w orld
It usually arises from a need or wants that can't be immediately filled and
leads to the question. ”Why don't I create and sell that product?"
If the "feasibility research" finds that the idea is "worth" pursuing and is
"doable", the product developme nt process begins
This process involves 8 stages that every product needs to go through in
order to "be brought to market"
Stages of Product Development
1. Idea Generation
2. Idea Screening
3. Concept Development
4. Market Strategy
5. Feasibility Analy sis / Study
6. Product Design
7. Test Marketing
8. Market Entry

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Consumer Behaviour
34 1. Idea Generation
An invention or innovation as a result of a gap in the current market. An
idea to produce a product or service not currently available.
2. Idea Screening
Not all idea s are good ones (ie. - New Coke, McPizza, etc.)
Marketers need to test consumer reaction to their idea before they continue
Throw the idea around and see what people think
3. Concept Development
If the feedback from consumers and your business associates i s positive, a
prototype or sample is created. This stage will allow you to see if the
product works and to allow your target market to use it / provide feedback
for improvements, etc
4. Market Strategy
The development of your marketing strategy. Determine your target
market and how to use the 4 P's to optimally sell them your product
5. Feasibility Analysis / Study
Often done at the same time as the product design and market strategy
stages.
Many questions are answered in this stage.
For Example:
1) Material s/labour required?
2) Price of production?
3) Distribution channels?
4) Cost of promotion?
5) This analysis will simply answer the following question

6. Product Design
What the product will look like.
The design will depend on what it does and what the target m arket want
7. Test Marketing
Test acceptance of the product. Usually occurs by offering the product to a
random sample of your target market. Customer feedback is used to
improve the venture and determine whether the product should "go to
market"
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Marketing Ap plications,
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35 8. Market Entry
The product is officially "in the market" and being sold to all. The
"Product Life Cycle" begins and it's life will be determined by the
consumer market, competition and further product advances.
Attitude Change Strategies
1. Changing the basic Moti vational Function.
2. Associating the product with an Admired Group or Event
3. Resolving two conflicting attitudes
4. Altering components of the MultiAttribute Model.
5. Changing Beliefs about Competitors Brands.
2.13 SUMMARY
This course will help th e students to study of how different theories help
in decision making in any organizations. How new product development
take place in the market. What are the various strategy help in decision
making while targeting the consumer behaviour.
2.14 Exercise
1. Explain Tri -component theories.
2. Explain Gestalt psychology.
3. Define Perception and explain the internal and external factors
affecting perception.

2.15 BIBLIOGRAPHY AND REFERENCE FOR
FURTHER READING
 https://www.google.com
 https://study.com/learn/lesson/difference -threshold.html
 youtube videos
 Behaviour by Leon G Schiffman, Joseph L Wisenblit


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36 Module 3 3
PERSONALITY, SOCIAL CLASS, AND
GROUP BEHAVIOUR
Unit Structure :
3.0 Objectives
3.1 I ntroduction
3.2 Personality: Meaning, nature, definition and characteristics
3.3 Theories of Personality (Freudian theory, Trait Theory, Jungian
Theory)
3.4 Self -image and self concept
3.5 VALS model and segmentation
3.6 Personality and consumer behaviour
3.7 Social Class: concept of social class
3.8 Homogeneity of needs in social class
3.9 Social class stratification in India New SEC/ NCAER
3.10 Classification of the society
3.11 Influence of social class on pur chase behaviour.
3.12 Group Behaviour: Reference Groups and its influence on
consumption
3.13 Diffusion of innovation process
3.14 Consumer Adoption of new products
3.15 Impact of social media on formulating opinions on products and
brands
3.16 Family: Role of family in decision making and consumption
process
3.17 Summary
3.18 Exercise
3.19 Bibliography and Reference for further reading. munotes.in

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37 Personality, Social
Class, and Group
Behaviour 3.0 OBJECTIVES
This module deals the study of various psychologies with different
decision making of an individual. How the social class and concept of
consumer behaviour with self image concept helps in identifying the
consumer needs and requirements changes with the change in the
technology.
3.1 INTRODUCTION

This module will help to study and learn about the various processes in
decision making of any individual. How the concepts of various theory
helps to forecast the needs of understanding the concept of consumer
behaviour.
3.2 PERSONALITY: MEANING, NATURE, DEFINITION
AND CHARACTERISTICS
Patron be haviour refers to the behaviour that patron show in looking,
purchasing, the use of, comparing and putting off services and products
that they count on will satisfy their desires.
Consistent with Walter, patron behaviour is the process wherein person
when how from whom decides what, where to purchase the products and
offerings
What is Personality?
 Inner Psychological.
 Characteristics determine the person behavioral changes in certain
circumstances.
 How a specific person thinks and acts in various situations .
Facets of Personality
 Early childhood experiences
 Social and Environmental Influences
a) Personality reflects individual differences b) Personality is consistent
and enduring c) Personality may change
Personality reflects individual differences
 Every per son has unique characteristic.
 No two persons can alike.
 Everyone behave differently in various circumstances.
 For Example, One can be Ethnocentrist unlike others.
Personality is consistent and enduring
 Personality tends to be consistent and enduring.
 Marketers cannot change someone's personality but can make
products as per that.
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38 Personality May Change
 Personality may change under certain life events.
 Marriage, Birth of Child, death of Parents c an change the
personality.
 Gradual Maturing Process
Personality is consistent and enduring
 Personality tends to be consistent and enduring.
 Marketers cannot change someone's personality but can make
products as per that.
 Child's likeness of clothes is an e xample of this behavior.
Personality May Change
 Personality may change under certain life events.
 Marriage, Birth of Child, death of Parents can change the
personality.
 Gradual Maturing Process.

Nature
 Complex Nature
 Varies for different consumers
 Dynamic Nature
 Influenced by various factors
 Important for Marketers
 Brand Loyalty

Scope
 Demand forecasting
 Marketing
 Advertising
 Human Behaviour
Characteristic
 Implementation of the marketing concept
 Planning product differentiation and Market segmentation
 Selection of distribution channels.
 Designing Promotional techniques.
3.3 THEORIES OF PERSONALITY (FREUDIAN
THEORY, TRAIT THEORY, JUNGIAN THEORY )
Theories of Personality
1) Freudian Theory Neo -Freudian Theory
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39 Personality, Social
Class, and Group
Behaviour







Figure (a) Theories of Personality
1) Freudian Theory Neo -Freudian Theory
According to Sigmund Freud, human personality is complex and has more
than a single component. It is famous psychoanalytic theory of
personality. Personality is composed of three elemen ts as given below.
There are three parts of this theory are
1. ID
2. Superego
3. Ego
These three elements works together to create c omplex human behaviour.
Each component not only adds into own unique contribution t o personality
but all three elements interact in a way that have s powerful influence on
each individual.
1. ID
 The ID is the only component of personality that is present from which
this aspect is entirely unconscious and includes the instinctive and
primiti ve behaviour.

 The id is driven by the pleasure principle which strives for immediate
gratification or all desires, wants, and needs.

 These needs are not satisfied immediately the result is a state of
anxiety or tension.

 For example an increase in hung er or thirst should produce an
immediate attempt to eat or drink.
 The id is very important because it ensures that an infant’s needs are
met.

 The infants is hungry or uncomfortable, he or she will cry until the
demands of id is satisfied.

 However immedia tely fulfilling these needs are not always realistic or
even possible. This sort of behaviour would be both disruptive and
socially inacceptable. Theories of Personality Freudian Theory Trait Theory Jungian Theory
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40
2. EGO
 The ego is the factor of personality that is responsible for dealing with
truth.
 consistent with Freud, t he ego develops from the identification and
ensures that the impulse of identification can be expressed in a way
suitable in the real worldwide.
 The ego operates based totally on reality precept, which strives to
fulfill the identification’s desire in real istic and socially appropriate
mode.
 The fact principle weighs the cost and blessings of an motion earlier
than locating out to act upon or abandon impulses.

3. Superego

 The superego is the aspect of personality that holds our entire
internalised moral stan dard and ideas that we acquire from both
parents and society.

 The superego provides guidelines for making judgements.

 The superego acts to perfect and civilise our behaviour.








Figure (b) Three Parts of Theories
Neo-Freudian Theory
Researc hers’ describe the personality into three categories:
1. Compliant consumers
2. Aggressive Persons
3. Detached Persons






Figure (c) Neo-Freudian Theory three categories Three Parts of Theories ID Superego Ego
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41 Personality, Social
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Behaviour Trait Theory
Traits are personal characteristics that set one person from another.
It can categorise as:
1. Innovativeness.
2. Materialism.
3. Ethnocentrism






Figure (d) Trait Theory
3.4 S ELF IMAGE AND SELF CONCEPT
Self Concept
In terms of Consumer Behaviour Self concept is the perception about self
and his/her buying behaviour.
Morris Rosenberg defines self concept as "the totality of an individual's
thoughts and feelings having references to him as an object".
Self concept can be divided into six types
1. Actual self: How a person actually perceives himself
2. Ideal self: How a person would like to perceive himself
3. Social self: How a person thinks others perceive him 4. Ideal social
self: How a person would like others to perceive him.
4. Expected self: An image of self somewhere in between the actual and
ideal self.
5. Situational self: A person's self image in a specific situation
Components of Self concept types
1. Self-Image: Self image is the way we see ourselves which includes
what we know about our self physically socially emotionally etc.

2. Self-Esteem : Self-esteem is the value we place upon ourselves.
3. Ideal Self: The ideal self is the self we would like to be.
Altering Self Images
 If actual and ideal self -images are different, consumers may use
products to alter their selves.
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42  Personality vanity: self interest or admiration for one's own
appearance/ achievements.
Self Concept and Marketing Strategy
 Use self -concept for segmentation and positioning.
 Market to consumers' actual or ideal self -images.
 Depends on the nature of the product.
 Promote produ cts as ways of altering or extending self images.
Life Styles and Marketing Strategy
 Use life styles for segmentation and positioning.
 Develop media campaigns based on consumer life styles.
3.5 VALS MODEL AND SEGMENTATION
VALS Model
VALS version
VALS ( Values, Attitudes, and existence) is a framework superior by
Arnold Mitchell and his colleagues within the 365 days 1978.The VALS is
a tool used for grouping customers with the assist of psychographic
segmentation. The VALS places grownup clients into one of the 8
segments based totally on their responses to the questionnaire.
VALS (Values Attitudes And Lifestyles)
The main scope of the VALS framework is the resources in the vertical
dimension and primary motivation at the horizontal dimension. The people
in the vertical dimension are based on the degree to which they are
innovative and have enough resources like education, income,
intelligence, self - control, energy, and leadership skills.
At the top of the VALS framework are innovators, who have high
resou rces that can have any of the 3 primary motivations. At the
bottommost are the survivors who live within their means without primary
motivation.
VALS Framework Marketing Segmentation
Below are the eight styles of client clusters are described inside the V ALS
framework, which divides consumers consistent with their buying
motivation behavior.
1. Innovators
Those purchasers have the highest incomes, considerable sources in
addition to high shallowness. In the VALS framework, innovators are
located above the rectangle. Innovators have the confidence to experiment
and take new information.
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43 Personality, Social
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Behaviour 2. Thinkers
Those customers have a tendency in the direction of analysis. Clients have
high sources and are normally influenced by way of new thoughts.
They've sufficient in formation approximately social alternate and new
ideas. Thinkers choose conventional knowledgeable pastimes. They plan
and research earlier than taking any selection.
3. Believers
Believers are the consumers who have low resources and are motivated by
ideals. They believe in faith and spirituality. Believers are conservative
who purchase established brands and local products. Makers have low
resources and are motivated by self -expression.
4. Achievers
These consumers have high resources and are motivated by their
achievements. Such people are work -oriented and get satisfaction from
their work and families. Achievers respect the authority and are politically
conservative. They prefer services and products that show off their growth
to their peers.
5. Striver
Strivers are low -resource group consumers; they get highly motivated by
their achievements.
6. Experiencers
Experiences have high resources who get motivated by self -expression.
Experiences are the youngest in all the segments with an age of 25. They
have the highest energy and take part in social activities. They spend
heavily on fast foods, clothing, and new products and services.
7. Makers
These consumers have self -sufficiency. Makers focus on work, family and
have little interest in the world. They appr eciated functional and practical
products.
8. Survivors
These clients have self -sufficiency. Makers attention on work, family and
have little interest in the world. They appreciated useful and realistic
products/
They are the purchasers with the lowest inc ome. They have so few
resources that they cannot be covered in any group thus they lie beneath
the rectangle. Survivors are the oldest segment of age 61. They have got
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44 Note: - VALS has since been reworked to enhance its ability to predict
consumer behavior. Therefore, the VALS framework examines the
intersection of psychology, demographics, and lifestyles.
The VALS framework: -
1. Is a well -known personality assessment.
2. Is a study on the hierarchy of needs.
3. Inv olves applying cognitive learning theory to segments that have low
awareness of a product.
4. Examines the intersection of psychology, demographics, and lifestyles.
3.6 PERSONALITY AND CONSUMER BEHAVIOUR
What Is Personality?
The inner psychological c haracteristics that both determine and reflect
how a person responds to his or her environment.
The Nature of Personality
 Personality reflects individual differences.
 Personality is consistent and enduring.
 Personality can change
Theories of Personality
1) Freudian theory
Unconscious needs or drives are at the heart of human motivation.
Three interacting systems
1) Id: primitive and impulsive drives.
2) Superego: Individual's internal expression of society's moral and
ethical codes of conduct.
3) Ego: Individual's conscious control.

Theories of Personality
1) Neo-Freudian personality theory -Social relationships are
fundamental to the formation and development of personality - e.g.,
CAD theory.

2) Horney's CAD Theory
Using the context of child -parent relationships, individuals can be
classified into:
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45 Personality, Social
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Behaviour a) Compliant individuals.
b) Aggressive individuals.
c) Detached individuals

CAD concept
• Compliant personality: one that wants to be cherished, wanted, and
favored via others.

• competitive character: person who actions in opposition to others (e.G.,
competes with others, wants to excel and win admiration).

• indifferent personality: person who moves far from others (e.G.,
who dreams independence, self -sufficiency, and freedom from duties).
Need for Cognitio n (NC)
 A person's craving for enjoyment of thinking.
 High NC consumers are likely to:
 Relate better to written messages.
 Want product -related information.
 Spend more time processing print ads.
 Enjoy using the internet to get information.

3) Trait theory
 Quan titative approach to personality as a set of psychological traits.
 Single -trait or multiple -trait theories.
 Consumer materialism: The extent to which a person is considered
"materialistic".
 Fixed consumption behaviour: Consumers fixated on certain
product s or categories of products.
 .Compulsive consumption behaviour: "Addicted" or "out -of-control"
consumers.


Consumer Innovativeness
The diploma to which clients are receptive to new products, new offerings
or new practices.
Consumer innovators are possib ly to:
 score lower on dogmatism.
 score better on need for specialty.
 Have higher optimum stimulation tiers.
 Have better need for sensation seeking and range in search of
behaviours.
Consumer Ethnocentrism
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46 Ethnocentric clients feel i t is incorrect to buy overseas -made merchandise.
They may be targeted via stressing nationalistic issues.
Fixated consumption Behaviour Consumers have:
1) a deep hobby in a selected object or product category.
2) a willingness to visit tremendous lengths.
3) to co zy objects in the category of interest.
4) the determination of a considerable amount of discretionary time and
money to searching out the product.
Examples: collectors, hobbyists

Brand Personality
 Personality -like traits associated with brands.
 Volvo – safety.
 Perdue freshness.
 Nike the athlete.
 BMW -performance.
 Levi's 501 dependable and rugged.
Personality and Marketing Strategy
 Identify relevant personality traits.
 Target consumers with the relevant personality traits.
 Develop promotional messages that a ppeal to consumers with
specific personality traits.
 Develop a personality for the brand
Possessions Act as Self -Extensions
 By allowing the person to do things that otherwise would be very
difficult.
 By making a person feels better.
 By conferring status or rank.
 By bestowing feelings of immortality.
 By endowing with magical powers.
3.7 SOCIAL CLASS: CONCEPT OF SOCIAL CLASS
Social class and Consumer Behavior
Social class can have a profound effect on consumer spending habits.
Perhaps the most obvious eff ect is the level of disposable income of each
social class. Generally, the rich have the ability to purchase more
consumer goods than those with less income, and those goods are of
higher quality.
Consumer Behavior and Social Class
 Clothing, Fashion, and S hopping.
 The Pursuit of Leisure.
 Saving, Spending, and Credit.
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47 Personality, Social
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Behaviour Social Class Lifestyle Orientation Purchasing
Tendencies
Upper Class Good taste
Graceful living Good
things in life
Individual expressions
Interest in art and
culture Quality merchandise,
Expensive hobby and
recreation equipment,
Expensive hobby and
recreation equipment,
art, books, travel.
Middle Class
Respectability,
conformity propriety,
social esteem
Items in fashion and
related to self
presentation: Good
Clothing,
neighbourhood and
house items for
children.
Working Class
Fun-oriented parochial
(restricted in scope)
Unsophisticated taste
Focus on possession
and not ideas Newest appliances,
sporting events newest
and biggest items.
Lower Class
Close famil y
relationships No interest
in world affairs
Neighbourhood oriented
Want immediate
gratification Status symbol products:
enhancing self -esteem,
Pseudo symbols of
prosperity, such as used
scooters, readily
available products.

Social Class
The division of members of a society into a hierarchy of distinct status
classes, so that members of each class have either higher or lower status
than members of other classes.
Social Class Measurement
➤ Subjective and objective measures
1. Subjective measure:
-In individuals are asked to estimate their own social -class positions.
- Which one of the following four categories best describes your social
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48 3) Uppe r-middle class
4) Upper class
5) Do not know
It is based on the participant’s self -perceptions or self -images.
Dimension of Social elegance: three varieties of measurement:
1) Subjective measure - primarily based at the self perception.
2) Reputational de gree - based on consumption and behaviour.
3) objective measure - primarily based on demographic and socio -
economic variables.
Social magnificence Mobility:
Kinds of Social Mobility
• Horizontal mobility. This occurs while a person modifications their
profession but their ordinary social standing remains unchanged.
• Vertical mobility.
• Upward mobility.
• Downward mobility.
• Inter -generational mobility . Intra -generational mobility.

3.8 HOMOGENEITY OF NEEDS IN SOCIAL CLASS
 Globalization and Cultural Ho mogenization
Globalization has been a key agent in this very process because it has
brought about different countries to interact with each other in terms
of trade and commerce where exchange of goods as well as
communication is taking.

 The most obvious e xamples are the diffusion of Hollywood movies
that can be seen all over the world .

 For instance, the push by the UN for the protection of human rights
has greatly affected the developing nations and is trying to bring
about a structural change in terms of equality .

 With the rise of free trade, there is an availability of goods of similar
nature in every country and this is leading to a homogenisation of
people's consumption behaviour and taste.

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49 Personality, Social
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Behaviour  A materialist ic culture and consumerism that are spreading through
mass media are creating a mechanistic and individualistic way of
life.

 In general sense the kind of cultural homogenization that is being
witnessed in developing nations such as India, is largely limit ed to
material level and consumer and cultural goods.
Cultural Homogenization, A Growing Concern?
Many scholars have argued that with the rise of an "increasingly
homogenized popular culture" which is heavily influenced by the western
world in terms of ide als, values, and culture, it may gradually dominate
different developing .
3.9 SOCIAL CLASS STRATIFICATION IN INDIA NEW
SEC/ NCAER
Social Stratification:
 Stratification can be defined as structural inequalities between
different groupings of people.

 Social stratification is compared to the geological layering of rock in
the earth' surface.

 Society can be seen as which includes strata' in a hierarchy. With the
extra favoured on the top and the less privilege near the lowest.

 Inequality of electricity and advantage is relevant to sociology, as of
stratification is important to the corporation of society.

 Every aspect of the life of every individual and household is affected
by stratification.

 Opportunities for health, longevity, security, educational success,
fulfilment in work and political influence are all unequally distributed
in systematic ways.

 Social stratification isn't always an man or woman fact; it's miles
instead a social reality.

 It has little to do with character merit/abilities and e xtra to do with
socially patterned inequalities.

 Historically four basic systems of stratification have existed in human
societies: slavery, caste, estate and class.

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50 3.10 CLASSIFICATION OF THE SOCIETY
Classification of Group
Groups have been classif ied by different thinkers on the basis of various
aspects. According the basis of Cooley Social Various aspects have been
classified as: -
a) Primary group.
b) Secondary group.
a) Primary Groups : In primary group, the contact between members of
group is intima te. The interaction is face to face among members. Primary
group is a small group and is the nucleus all social organisations. The
example of primary group is family. Family is the basic unit of society, so
the primary group is basic unit to provide health services. Primary group
forms the social nature and ideals of the Individual. All the members of
primary group have their own purpose such as to look after family
members, to earn livelihood for group to get education etc. It creates
sympathy and mutual u nderstanding among the members.
Characteristic of Primary Group
In primary group, intimate relationship exist among members of the
group. It depends upon the following factors.
1. Close Contact
The people of prim ary group are closely related and have f ace to face
interactions. The close contact provides an opportunity to the members to
express their views, ideas, opinions and even it is possible to visualise the
facial expression and gestures while having communication.
2. Stability
Stability is required for primary group, which will promote the intimacy of
relationship among the members of group.
3. Less number of members le, small size
The primary groups are of small size. The member’s small group can
understand each other and develop a group feeling a nd intimate relations.
4. Cooperation
All members of primary, groups gather together in a spirit to participate.
Cooperatively to study a common subject or to remove the grievances.
5. Common interest
All contributors of number one, agencies gather togeth er in a spirit to take
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51 Personality, Social
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Behaviour The commonplace interest is shared by means of each member due to
devotion and power of the complete institution accomplishing intention.
6. Sim ilar Background
The members of primary group should have equal experience and should
be almost equal in intelligent level.
Importance of primary groups for society
 Maintains Social Control over its members.
 Helps in process of socialisation.
 Teaches its me mber to work according to rules in society.
 Develops the basic attitude towards social institutions.
 Primary groups are important for individual as well as for the
society.

b) Secondary Group
 It is large and human contact is superficial.
 In this group the influence of one member over another is indirect.
 According to Maeander H.T, when face to face contacts are not
present in the relation of members, we have secondary group.
 So, the conclusion can be drawn that secondary groups lack is
intimacy and do not have face to face contact in the relation of its
members.

Characteristics of Secondary Group
 Secondary groups are large in size as it consists of thousands of
members scattered our large.
 The individual meet each other in a formal manner for their work.
 There is no warmth of relations that is impersonal relations are in
secondary groups.
 It lacks intimate relations among its members.
 It is not compulsory to be a member of secondary group.
 It has both type of individual that active and inactive.
 The means o f communication among its member are indirect.
 The state of its member is achieved and depends upon the personal
qualities.
3.11 INFLUENCE OF SOCIAL CLASS ON PURCHASE
BEHAVIOUR
Refer to 3.7


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52 3.12 GROUP BEHAVIOUR: REFERENCE GROUPS
AND ITS INFLUENC E ON CONSUMPTION
What is a Group?
A set may be described as two or extra those who engage to perform either
character or mutual dreams.
What is reference group ?
A reference group involves one or extra human beings whom someone
makes use of as a basis for a ssessment or factor of reference in forming
affective and cognitive responses and appearing behaviors.
Humans's reference organizations (and unmarried referent persons) may
be of any size, may be tangible or simply symbolic, can be from the equal
or other social instructions, subcultures, or even cultures .
Classification of Groups by membership status
1. Membership Group: a fixed to which a person both belongs or may
qualify for membership in.

2. Symbolic Group: a collection in which an man or woman isn't
probab ly to get keep of membership, despite acting like a member
thru adopting the organization's values, attitudes and behavior.

3. Reference Groups Influence Consumers in Three Ways:
 Informational: When individuals alter their behaviors or beliefs to
meet the ex pectations of a particular group.
 Utilitarian: When people have difficulty assessing product or brand
characteristics by their own observations or contact.
 Value -Expressive: When a need for psychological association with
a group causes acceptance of its no rms, values, attitudes, or
behaviors
Why Reference Groups are Important?
 Expert Power: Derived from possessing specific knowledge about
content area.
 Reward Power: When a person or group has the means to provide
positive reinforcement.
 Coercive Power: Influencing a person by social or physical
intimidation
How Reference Groups Influence Individuals
 Conformity: a change in beliefs or actions based on real or
perceived group pressures

 Compliance: when an individual conforms to the wishes of the
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53 Personality, Social
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 Acceptance: when an individual actually changes his or her beliefs
and values to those of the group
Informational reference group influence
The individual seeks information about various brands from an associatio n
of professionals or independent group of experts. The individual's
observation of what experts influences his or her choice of a brand.
Utilitarian reference group influence
The person seeks statistics approximately diverse manufacturers from an
affiliat ion of specialists or impartial organization of experts. The
individual's remark of what experts affects his or her choice of a logo.
The individual's choice to buy a particular logo is inspired by the
preferences of people with whom he or she has social i nteraction.
The choice to meet the expectancies that others have of her or him has an
effect on the man or woman's brand preference.
Value - expressive reference group influence
The character feels that the acquisition or use of a selected emblem will
beaut ify the photo others have of her or him. The man or woman feels that
the purchase of a selected logo might help show others what he or she is or
would like to be (such as an athlete, a hit business person, precise parent,
and many others.)
Factors that Aff ect Reference Groups Influence
 Information and Experience.
 Highlights of the Product.
 Credibility, Attractiveness, and Power of the Reference Group.
 Reference Group Impact on Product and Brand Choice
Benefits of the Reference Group Appeal
 Increased Brand A wareness.
 Reduced Perceived Risk.
3.13 DIFFUSION OF INNOVATION PROCESS
What is Diffusion?
Diffusion is the method by using which an innovation is communicated
through positive channels. Innovation is an concept, exercise, or object
perceived as new by u sing an individual or different.

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54 Diffusion of Innovation Theory
Everett Rogers (1931 -2004) widely recognized for the e -book called
"Diffusion of Innovation"(1962) wherein he explains the theory of the way
improvements and ideas spread throughout the popu lations.
The diffusion of innovation principle analysis how the social participants
adopt the new revolutionary ideas and the way they made the choice
towards it. Each mass media and interpersonal communication channel is
involved in the diffusion method.
Consistent with the principle, improvements must be widely adopted so as
to attain improvement and sustainability.
Rogers proposed four elements of diffusion of innovations they are: -
1. Innovations - an concept, exercise, or item perceived as new by way of
an man or woman. It could additionally be an impulse to do a little
component new or carry some social exchange .
2. Communication Channel - The conversation channels take the
messages from one individual to any other. It is through the channel of
communiq ue the improvements spreads across the human beings. It is able
to take any shape like word of like word of mouth, SMS, any kind of
literary shape and so forth .
3. Time -It refers to the length of time which takes from the people to get
adopted to the innov ations in a society. It is the time people take to get
used to new ideas. For an example consider mobile phones it took a while
to get spread among the people when it is introduced in the market .
4. Social System - Interrelated community institution joint collectively to
remedy the troubles for a common intention. Social gadget refers to all
kinds of additives which construct the society like religion, institutions,
agencies of human beings etc.
Rogers says that during a social system there are 3 methods th e decisions
are taken. He cautioned the three methods thinking about the ability of
people to make choices in their personal and their ability to put into effect
it voluntarily; the 3 approaches are as follows.
Optional - Individuals made a decision about the innovation in the social
system by themselves.
 Collective - The decision made by all individuals in the social
system.
 Authority - Few individuals made the decision for the entire social
system
Further Roger identifies the Mechanism of Diffusion of Inn ovation Theory
through five following stages
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55 Personality, Social
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Behaviour 1. Knowledge :
An Individual can expose the new innovation but they are not showing any
interest in it due to the lack information or knowledge about the
innovation
2. Persuasion :
An Individual is showing more i nterest in the new innovation and they are
always seeking to get details or information about the innovation
3. Decision :
On this level, an person analysis the fantastic and terrible of the innovation
and determine whether to accept / reject the innovation . Roger explains
"one of the most tough ranges to perceive the evidence"
4. Implementation :
An man or woman's take some efforts to identify the dependence of the
innovation and accumulate more facts approximately the usefulness of the
innovation, then its future also.
5. Confirmation :
An individual conforms or finalize their decision and keep to use the
innovation with complete capability.
3.14 CONSUMER ADOPTION OF NEW PRODUCTS
What is Consumer Adoption of new products?
The consumer -adoption process focus es on the mental process through
which an individual passes from first hearing about an innovation to final
adoption. Consumer adoption process is also known as the product
adoption process. A company produces a product or service and
announces it to the m arket. At that point the consumer adoption process
begins.
The consumer adoption process is a five -stage process that consumers use
to evaluate new products. Through this process, consumers will decide
whether to reject or adopt the new product offering. A new product that
does not meet a consumer’s demand can be rejected at any of the five
stages.
1. AWARENESS (INTRODUCTION STAGE):
This is the stage when consumers first learn about the new product but
don't yet have all the information. In this stage marketer s put a lot of effort
and money. If consumers are not aware that the product or service exists,
how can the company expect the consumers to buy it? Advertising the
product to consumers is hard work to make sure the correct image is
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56 2. INTEREST (INFORMATION GATHERING STAGE):
This is the stage of the adoption process when consumers seek information
about the new product. This stage is when the consumer becomes aware of
the product and searches aware of the product and searches out
information. A popular method of searching out information is the
internet. A company's website tells a potential customer what it looks like,
its specifications, its price, ways to purchase an d much more. Technology
has played a big role in today's website advertising, guaranteeing
interactive information and data collection.
3. TRIAL (SAMPLING STAGE):
To entice consumers, marketers provide samples or trials of their product.
This gives consumers a "taste" of what the product really is, how it works
and shows them its benefits. Also coupons or introductory sale prices are
given as motivation to try the product out for a reduced price.
4. ADOPTION/REJECTION (BUY OR NOT BUY STAGE):
At this degree of t he adoption process, the client comes to a decision if the
product has fee or now not. If the client does not locate fee inside the
product, he or she can no longer buy it once more. If the product offers the
consumer fee or solves a hassle, they may in al l likelihood turn out to be a
repeat patron.

5. EVALUATION (CONSIDERATION STAGE):
At this stage, the consumer has gathered enough information to determine
if he wants to try this product or not. During the evaluation process, the
consumer decides if the ben efits are worth the cost. In this stage the
consumer thinks if this product or service is good, and more importantly,
how this product can be beneficial to them. When consumers believe the
product is good and it can benefit them by buying it they are more likely
to purchase.
6. TRIAL (SAMPLING STAGE):
To entice consumers, marketers provide samples or trials of their product.
This gives consumers a "taste" of what the product really is, how it works
and shows them its benefits. Also coupons or introductory sale prices are
given as motivation to try the product out for a reduced price.
7. ADOPTION/REJECTION (BUY OR NOT BUY STAGE):
At this stage of the adoption process, the consumer decides if the product
has value or not. If the consumer does not find value in the product, he or
she will not buy it again. If the product gives the consumer value or solves
a problem, they will likely become a repeat customer.
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57 Personality, Social
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Behaviour 3.15 IMPACT OF SOCIAL MEDIA ON FORMULATING
OPINIONS ON PRODUCTS AND BRANDS
What is Social Media?
“Social me dia is addictive precisely because it gives us something which
the real world lacks: it gives us immediacy, direction and value as an
individual… By David Amerland.
Social media can be defined as “consumer generated media that covers a
wide variety of new sources online information, created and used by
consumer’s intent on sharing information with others regarding any topic
of interest.
Want to create a successful social media strategy to boost your brand
awareness?
1. Pre-purchase phase.
2. During purchase phase
3. Post purchase phase.

Why are you shopping online?
 Products are only sold online.
 More convenient.
 Less time consuming.
 Less expensive.
 Want to avoid the holiday crowds.
 Easy to have gifts shipped to recipient.
 Easier to compare item features.
 Offers a wi der range of goods.
 Usually find the best deals online.
 Catalogs encourage online shopping.
3.16 FAMILY: ROLE OF FAMILY IN DECISION
MAKING AND CONSUMPTION PROCESS
The FLC is a composite variable created via the use of using
systematically combining such typically used
Demographic variables as marital reputation, length of family, age of
circle of relatives members (focusing at the age of the oldest or youngest
toddler), and employment repute of the top of own family. The a long time
of the parents and cir cle of relatives existence cycle.
In a dynamic society, circle of relatives -associated roles are continuously
converting.


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58 Key Family Consumption Roles:
There are eight distinct roles in the family decision making process
1. Influencers: Family member(s) who provide information to other
members about a product or service.

2. Gatekeepers: Family member(s) who control the flow of
information about a product or service into the family.

3. Deciders: Family member(s) with the power to determine
unilaterally or joi ntly whether to shop for purchase, use, consume, or
dispose of a specific product or service.

4. Buyers: family member(s) who make the real buy of a particular
services or products.

5. Preparers: family member(s) who rework the product into a shape
appropriate for intake by way of different family contributors.

6. Users: member of the family(s) who use or eat a particular product
or service.

7. Maintainers: family member(s) who provider or repair the product
in an ef fort to provide persisted pride .

8. Disposers: memb er of the family(s) who initiate or perform the
disposal or discontinuation of a specific services or products.

Significance of the Family in Consumer Behavior
The family is both a primary group (characterized by intimate face -to-face
interaction) and a r eference group (with members referring to certain
family values, norms and standards in the behavior). These two factors,
however, are not the sale reasons accounting for the strength of the
family's influence Rather, is, first, the fact that the bonds wit hin the family
are likely to be much more powerful man those in other small groups
Second, contrary to most other groups to which the consumer belongs the
family functions directly in the role of ultimate consumption . The family
operates as an economic unit, earning and spending money This marketers
need to understand the nature of the family's influence on its members and
this way in which purchase decisions are made by members so that they
may effectively program their marketing mix.
3.17 SUMMARY
We learnt about the idea of globalization and how it is bringing about a
kind of uniformity within different nations due to a growing cultural
interdependence. Moreover, we understood how there is a homogeneity of
culture taking place and its degree of impact in India and whether it should
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59 Personality, Social
Class, and Group
Behaviour 3.18 EXERCISE
1. Explain theories of personality.
2. Explain the concept of social class.
3. Explain the impact of social media on formulating opinions on
products and brands.
3.19 BIBLIOGRAPHY AND REFERENCE FOR
FURTHER READING
 https://www.google.com
 youtube videos
 Behaviour by Leon G Schiffman, Joseph L Wisenblit .
 Everett Rogers (1931 -2004) well known for the book called "Diffusion
of Innovation"(1962)
.







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60 Module 4 4
CULTURE AND SUBCULTURES, POST PURCHASE BEHAVIOUR, ORGANIZATION BUYING PROCESS
Unit Structure n :
4.0 Objectives
4.1 Introduction
4.2 Culture and Subcultures: Understanding the influence of culture
4.3 Norms and their role
4.4 Traditions and value system
4.5 Indian core values
4.6 Cultural aspects of emerging Indian markets
4.7 Post purchase behaviour: Post purchase evaluation and disposition
towards the product
4.8 Post purchase satisfaction measures
4.9 Organization buying process: Nested segmentation
4.10 Role & Power of Buying centres (Initiators, Influencers, Decid er,
and Buyer & Gatekeepers).
4.11 Buying decisions based on ABC / VED / FSND analysis
4.12 Summary
4.13 Exercise
4.14 Bibliography and Reference for further reading.
4.0 OBJECTIVES
The objective of this course is to make the students aw are about the
various Indian values in terms of marketing and consumer requirements
and its satisfaction. This will also helps in understanding the various terms
used in decision making and in what scope the decision making plays a
vital in the organizatio ns.
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61 4.1 INTRODUCTION

The consumer behaviour helps in examining the fundamental process in
decision making, perception, and learning. It also deals with factors that
influence the consumer behaviour. Its deals with the core concepts and
theories like c onsumer research, culture components, marketplace,
motivations and organizations buying behaviour.
4.2 CULTURE AND SUBCULTURES:
UNDERSTANDING THE INFLUENCE OF
CULTURE
What is Culture?
"Culture" is a distinct way of life of a group of people. It is thei r complete
design for living.
Culture includes:
i) Knowledge
ii) Beliefs and practices
iii) Arts
iv) Laws
v) Morals
vi) Customs
Culture is defined as the sum total of learned beliefs, values and customers
that serves to direct the consumer behaviour of m embers of a particular
society. The study of culture generally requires detailed examination of
the character of the total society including such as language, knowledge,
laws, religion, food, customs, work patterns, product of other objects that
give a soc iety its unique flavour. Culture also provides insights occasions.
Dress codes are shifting dramatically, people are dressing more casually
all the time and in most situation.
Characteristics of Culture
Culture is made by three interdependent systems ideo logical system
(mental system - ideas and beliefs) technological system (industry and
production) and organizational system
Characteristics of culture are:
i) Culture is learned
ii) Culture is socially shared iii) Culture is similar yet different
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62 v) Culture forms a boundary for an individual to think and act.
Culture impacts Consumers' Behaviour
Culture is not static and slowly keeps changing over time.
Cultural changes happen due to changes in technology.
Marketer s and managers must understand the culture of the place where
products and services are to be sold.
Major companies have adopted themselves to the international culture and
are accepted globally. E.g. Coca Cola had to withdraw its 2 litters bottle
from Sp ain, as it did not fit into the refrigerator
Culture & purchaser Behaviour
Way of life as a “whole whole” is a machine of unbiased additives.
Expertise and ideals are vital parts inside the u.S.People recognise and
accept as true with that a person who's p rofessional and paintings difficult
will get in advance.







Figure (a) Measurement of Culture
What is SubCulture?
A Culture is very broad concept within a culture there exists more
(homogenous groups called subcultures.
These groups have t heir own values, traditions and beliefs etc.
Sub culture is a distinct cultural group which exists as an identifier
segment within a larger, more complex society. Subculture refers to a
culture within a culture.
E.g. the Hindus in India can be further clas sified into the Hindus of the
South and Hindus of the North. The Sikh, Parsis etc are also different
subcultures in India Sub cultures give a better idea to the marketers for
make their strategy.
Measurement
of Culture Positive
Technique
Attitude
measurement
test
Depth interview &
group discuss ions Content
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63
Marketing Implications of Culture
Cultural values are not fi xed but are dynamic and keep changing slowly
over time this has marketing implications. Eg the idea of spending more
time at home is increasingly gaining
ground. This has led to purchase of exercising machines, construction
swimming pool etc Consumers want to live more natural and healthier
lives which has led to increased sales of organic foods Giving recognition
to women in society is a cultural change that is taking place and has its
implications in promotion and advertising










Figure (b) Cult ure
SubCulture categories are:
1) Nationality : Indian.
2) Religion: Hinduism.
3) Race: Asian, black, white.
4) Age: young, middle aged, elderly.
5) Sex: Male, female.
6) Occupation: Trainer, business.
7) Social class: Upper, Middle, lower.
8) Geographic regions: South India, eas tern India.

4.3 NORMS AND THEIR ROLE
What are Norms?
The requirements of institution behaviour are referred to as social norms.
"A norm is a standard of behavioural expectation shared by the
organization individuals against which the validity of percep tion is judged
and the appropriateness of feeling and behavior is evaluated"
Unwritten, unspoken policies that govern the behaviour of the contributors
of a collection. Evolve and socially enforced through social sanctioning.
Frequently passed down thru ti me by using a lifestyle or society. Provide
balance to a group and only some in a group will refuse to abide by the Culture

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64 norms. A few norms are bad and motive terrible communique amongst
humans. Often corporations are not aware about the unwritten that exist.
Norms are standards of group behaviour
A fixed of values and ideas which alter behaviour of man or woman
contributors. Organizations are individuals. The goods of interplay
amongst whilst a number of individuals engage, a set of standards broaden
that regul ate their relationships and modes of behaviour. Norms are in
every other feel policies of behaviour. They exist as both formal and
informal norms, but often the latter is determined to be greater robust and
reinforced every so often and therefore are extra powerful.
These informal norms are divided into two:
1) Folkways: Those are expected to be followed, no formal sanction
besides a few sort of reprimands. It's a sort of adjusting,
accommodating kind of habits.

2) Mores: Casual regulations that are not written , but violation brings
extreme punishments and sanctions.

Terms related to social norms
(a) Descriptive norm: people's perceptions of what is commonly done in
specific situations. This is typically related to a culture.
(b) Prescriptive norm: the unwritte n rules understood and followed by
society. We do these every day without thinking about them.
(c) Proscriptive norm: the unwritten rules known to society regarding the
individual's behaviour in terms of the do's and don'ts. These norms can
vary from cult ure to culture.
(d) Deviance: violation of the norms or non conformity to norms by some
humans or maybe a single character. In short stated it refers to behaviors
that pass towards norms.
(e) Looking glass self: this is how one sees oneself primarily base d on
how others understand the man or woman. This comes approximately in
phrases of interacting with others and know -how how others perceive
them, what they anticipate from them and that they ought to behave and
many others.
 Norms constitute value judgment s approximately appropriate
behaviour in social situations, and now have effective have an impact
on on person's behaviour particularly in a collection scenario.

 Norms in a manner guide character's behaviour and decreases
ambiguity in agencies. Groups do not establish norms approximately
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65  Norms would possibly practice to every member of the group or to
just a few participants. Norm s that apply to particular group members
usually specify the role of those individuals.

 Norms vary in the degree to which they are accepted by all members
of the group: some are accepted by almost everyone, others by some
members and not others
• Norms va ry in the diploma to which they are everyday via all
contributors of the institution: some are standard by using nearly all of us,
others via a few participants and not others
As an example, university college and students accept the college norm of
teachi ng, however students once in a while be given the norm of faculty
studies. Eventually, norms vary in phrases of the variety of permissible
deviation; sanctions, both mild or intense, are normally applied to humans
for breaking norms. Norms additionally var y with recognize to the amount
of deviation that is tolerated. Some norms require strict adherence, but
others do no longer.
Norms usually develop slowly as groups learn those behaviors that will
facilitate their activities. However, this slow development can be short -
circuited by critical events or by a group's decision to change norms.
Most norms develop in one or more of four ways:
(1) Explicit statements by supervisors or co -workers.
(2) Critical events in the group's history.
(3) Primacy, or by virtue of their introduction early in the group's history.
(4) Carryover behaviors from past situations.
Salient Features of Norms
1) Norm is a pattern of setting limit on individual behaviour.
2) Norms are related to factual world.
3) Norms are the important factor in an y society. Norms are chosen by
society.
4) Norms influence individual's attitude.
5) Norms are formed in matters of consequences to a particular group.
6) Norms of some group may pertain to ethical matters.
7) Norms implies a sense of obligation. Conformity to norms i s normal.
8) Norms sometimes create conflict.
9) Norms are not learned by all persons even in the same society.
4.4 TRADITIONS AND VALUE SYSTEM
 A value device is considered as a exceedingly permanent perceptual
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66  The values are the attributes possessed by means of an character and
notion suitable.
 Values are just like attitudes however are greater everlasting and
well built in nature.
 Values are generally, tinged with ethical taste and they con tain a
judgmental detail, regarding an individual's idea as to what's right,
suitable, desirable.
Importance
 Values lay the foundations for the understanding of attitudes and
motivation.
 Personal value system influences the perception of individuals .
 Personal value system influences the way in which a manager views
the other individuals and the groups of individuals in the organisation.
 Value system also influences a manager's decisions and his solutions
to the various problems.
 An individual will get more job satisfaction if his values align with the
organization's policies.
 If the organization's policies are different from his views and values,
he will be disappointed; the disappointment will lead to job
dissatisfaction and decline in performance.
Charac teristics
 Values provide standards of competence and morality.
 Values are fewer in number than attitudes. Values transcend specific
objects, situations or persons.
 Values are relatively permanent and resistant to change.
 Values are most central to the core of a person.
 Values have two attributes -content and intensity. The content attribute
stresses that a particular mode of conduct is important,
 The intensity attribute specifies how important it is.
 When we rank are individual's values in terms of their in tensity.
 We obtain the value system of that person.
Terminal Values
 A terminal price is an remaining intention in a desired fame or final
results. Those cause the ends to be accomplished.
 some of the examples.
1. Relaxed life
2. Feel of accomplishment
3. Family safety -Mature love
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67 6. Understanding
7. Exciting lifestyles
8. Freedom
Nine. Social reputation
10. Real friendship
11. A world of peace A global of splendor
12. Equality
13. Happiness -inner concord
National Security
Pleasure Salv ation.
 Factors influencing values
1. Family Factors - The most important factor which influences the value
system of an individual is his immediate family .
2. Social Factors - Out of all the social factors school plays the most
important role in developing the value system of an individual. The child
learns the basic discipline from the school. Moreover, the interactions with
the teachers, classmates and other staff members in the schools and
colleges make the child inculcate values important to the teaching -learning
process.
3. Cultural factors -Cultural factors encompass the whole lot this is
located out and surpassed on from generation to technology. Way of life
consists of fine ideals and different kinds of behaviour.
4. Life enjoy which affect our behav ior are validated by using the delight
we've got were given skilled in pursuing them. Humans exercising
consultation their values on the idea of what seems maximum logical to
them. Individual is a participant in social manner of lifestyles, group way
of life and organisational way of lifestyles. . A man learns the maximum
from his personal private existence revel in. Now and again man can look
at from the enjoy of others also. In the end, most of the values
5. Personal elements - non-public tendencies consis ting of intelligence
potential, appearance and educational degree of the person determine his
development of values.
6. Function call for - The function call for refers to the behaviour
associated with a particular function inside the enterprise. All firms have a
few formal and some casual code of behaviour. Function call for can
create problems while there's a role struggle. As a consequence, the
managers will have to quickly analyze the value device customary within
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68 4.5 INDIAN CORE VALUES
Indian Core Values includes are:
1. Family orientation.
2. Saving orientation.
3. Festivities.
4. Shopping as a ritual.
5. Mythology.
6. Food habits.
Changing cultural trends in Indian urban markets
 Achievements.
 Work ethic.
 Material success.
 Middle of the road approach to tradition.
 Impulse gratification.
 Use of hi -tech products.
Outline the features of Indian charge system and additionally describe the
Social institution affecting values.
• capabilities of India n fee tool Social form denote the community of
social relationship.
• The social dating is created most of the people at the same time as
they have interaction with each distinct consistent with their statuses
according with the styles of society.
• In a social shape, human beings having common item prepare
themselves into establishments.
• Social structure is an abstract phenomenon. It denotes outside
aspects of society.
• every society has a pattern of agency, which has systems that end
end result from affiliation of individuals with one another.
• it could be a collection group, an affiliation, network, or an
corporation all of which are components of social structure through which
it abilities.
Features of Indian Value System
 The following are the im portant features of social structure of Indian
society:
 1. Complex Society.
 Indian society is characterized as a pluralistic society because it
possesses complex social order.
 It suffers from multitude of ethnic, linguistic, religious and caste
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69  About 70% of the Indian people live in villages; Indian villages
continue to be underdeveloped. Even rural areas suffer from lack of
infrastructural facilities.
 The gains of industrialization and technological breakthrough which
once e njoyed by urban areas not yet reached the rural areas.
 Only now our Government has started giving due importance to the
objective of rural development.
 Economically Backward Country India has made considerable
progress in the fields of agriculture and in dustrialization.
 But still it continues to be an economically backward country. Even
now it remains 64th poorest nation in the world. Major part of our
population continues to live below the poverty line.
What is SubCulture?
A culture is very wide idea i nside a culture there exists extra (homogenous
organizations known as subcultures.
These businesses have their very own values, traditions and beliefs and so
forth.
Sub culture is a awesome cultural organization which exists as an
identifier phase within a larger, greater complicated society. Lifestyle
refers to a culture inside a subculture.
E.G. The Hindus in India can be in addition classified into the Hindus of
the South and Hindus of the North. The Sikh, Parsis and so on also are
distinctive subcultur es in India Sub cultures provide a higher concept to
the entrepreneurs for make their approach.
Marketing Implications of Culture
Cultural values are not fixed but are dynamic and keep changing slowly
over time this has marketing implications. Eg the idea of spending more
time at home is increasingly gaining ground. This has led to purchase of
exercising machines, construction swimming pool etc Consumers want to
live more natural and healthier lives which has led to increased sales of
organic foods Giving r ecognition to women in society is a cultural change
that is taking place and has its implications in promotion and advertising
4.6 CULTURAL ASPECTS OF EMERGING INDIAN
MARKETS
Emerging marketplace is a market that has a few traits of a developed
marketpl ace, but does no longer fully meet its standards. This encompass
markets that could become advanced markets within the future or over
inside the beyond.
Rural improvement is a subject this is pretty easy to apprehend but
difficult to implement it focuses u pon the upliftment and improvement of
the sections of rural economies that revel in grave poverty problems and
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70 emphasizes the need to deal with various pressing issues of village
econ omies that avert growth and improve these regions.
A few regions that want pressing attention for Rural improvement
in India are
1. Public health and sanitation.
2. Literacy.
3. Woman empowerment.
4. Enforcement of law and order.
5. Land reforms.
6. Infrastructure improvement like imitation, power, and so forth.
7. Availability of credit.
8. Eradication of povert y.

4.7 POST PURCHASE BEHAVIOUR: POST
PURCHASE EVALUATION AND DISPOSITION
TOWARDS THE PRODUCT
Submit buy patron behaviour
Publish pur chase behavior is the very last level within the patron choice
method when the client assesses whether or not he's happy or dissatisfied
with a buy.
How the patron feels about a buy will significantly affect whether or
not he will buy the product again.
Client decision making procedure.
1st step - trouble recognition.
2d step - information search.
3rd step - assessment of alternatives
4th step - purchase selection fifth step publish purchase
behaviour. Purchase Evaluation & customer
 The purchase evaluation p rocess is potentially influenced by post -
purchase.
 Satisfaction generally occurs when the use of the product fulfils the
expectations of need.
 And when the needs are not met, dissatisfaction occurs.
 Negative purchase evaluation
 Existing consumers take no a ction to re -purchase.
 Existing consumers switch to competitors or other brand.



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71 Post-purchase satisfaction
Satisfaction is the function of the closeness between expectations and the
good performance - If the performance fall short expectations the
consumers are disappointed. If the performance meet expectations the
consumers is satisfied. If the performance exceed expectations the
consumers is delightful.
A customer's reaction after he was involved in the process of purchasing
some high involvement item, us ually a very expensive one, like furniture
or a house or a car maybe.
Post-purchase Dissonance
This purchase creates doubt and anxiety in the mind of the consumer,
especially when the degree of commitment is high. This dissonance often
leads to consumption guilt - which is a negative emotion or feeling
aroused by the usage of that expensive product.

Consumers can reduce dissonance by
 By focusing on more supportive that outweigh the dissonant belief
 Reduce the importance of conflicting belief.
 By decreasin g the desirability of the opposing brand
Marketers can reduce dissonance by
By reversing the purchase decision .
4.8 POST PURCHASE SATISFACTION MEASURES
Post Purchase Behaviour
1) Customers examine the goods with their expectations. There may be
results b oth glad or dissatisfied. Consumers may be glad after shopping
the product if it has happy their wishes. However if the product is not up
to their expectancies, the consumer will be unsatisfied.
2) The marketer ought to monitor the publish buy experience of b uyers
along with such as:

Post Purchase Satisfaction
 satisfaction is a characteristic of the closeness among the expectancy
and the perceived overall performance of the product.
 If performance falls short of expectancies, the purchaser is
disenchanted.
 If it meets the expectations, the purchaser is satisfied.
 If it exceeds expectations, the patron is overjoyed.
as an example, boeing sells planes worth $ 10 million every, and customer
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72  If customers are extremely joyful with higher than predicted overall
performance, the buy once more and inform other ability
customers the boeing lives up to its guarantees.

Post Purchase Action
 If customers are reasonably satisfied, they buy the pr oduct again and
speak favourably with family members, friends, and relatives co -
workers.
 On the contrary, the dissatisfied consumer responds differently.
 Customer can abandon the product, claim compensation from the
company, go to court, or inform friends, family and co -workers to
avoid the product.
 the marketer job is to take certain steps to minimize the amount of
consumer dissatisfying after the purchase.
 For example Telecommunications Company Bharti Airtel has
launched a new campaign highlighting its goal of resolving all
customer inquiries, quickly learning from failures and making sure
they are not repeated.

3) Post Purchase use & disposal
• Marketer must also screen how the customers use and dispose the
product.
• Such information may be very good gui ding principle for the
marketer.
• Marketer can analyze viable issues and possibilities relating with the
product.
• as an instance, Netflix uses the looking records of customers with
comparable tastes to suggest what user may be most interested by
looking subsequent.
• in order that user remains engaged and continues your monthly
subscription for extra.
• for that reason, shopping for method is a journey from hassle
reputation to reaction of shoppers.
• Marketer consequently need to have a look at the shop ping for
technique from consumer’s point of view.
• enterprise ought to take certain steps to assist customers in every
stage to buy its product.

4.9 ORGANIZATION BUYING PROCESS: NESTED
SEGMENTATION
ORGANIZATIONAL BUYING BEHAVIOUR
 Organization buying i s the decision -making process by which
formal organizations establish the need for purchased products and
services and identify, evaluate, and choose among alternative brands and
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73 CHARACTERISTICS OF ORGANIZATIONAL BUYERS ARE
 Consumer market is a huge market in millions of consumers where
organizational buyers are limited in number for most of the products.
 The purchases are in large quantities.
 Close relationships and service are required.
 Demand is derived from the production and sales of buyers .
 The organizational buyers are trained professionals in purchasing.
 Several persons in organization influence purchase.
Organization buying is the decision -making process by which formal
groups set up the need for purchased products and services and disc over,
evaluate, and pick out among alternative brands and suppliers.
Characteristics OF ORGANIZATIONAL buyers ARE
Consumer marketplace is a large marketplace in hundreds of thousands of
consumers in which organizational customers are restrained in range fo r
most of the goods.
• The purchases are in large quantities.
• close relationships and carrier are required.
• demand is derived from the production and income of consumers.
• The organizational buyers are trained experts in buying.
• numerous folks in co mpany influence buy.
• Lot of purchasing happens in direct coping with manufacturers.
ORGANIZATIONAL BUYING SITUATIONS
An organization buys a variety of products and services.
These may include a
1) The purchases are in large quantities.
2) Close relationships and service are required. Demand is derived
from the production and sales of buyers.
3) The organizational buyers are trained professionals in purchasing.
4) Several persons in organization influence purchase.
5) Lot of buying occurs in direct dealing with manufac turers.

ORGANIZATIONAL BUYING SITUATIONS
 An organization buys a variety of products and services.
 These may include a variety of items, some of these are mentioned:
 Raw material: Steel, aluminium, iron ore, etc. Major capital items:
Machinery, plant, et c.
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74  Fabricated components and parts, and auto -assemblies: Castings,
forgings, small parts of iron, rubber, plastic, etc.
 Processed chemicals: Fluxes for melting, powders, chemicals.
 Consumables: Lubricating oils, electro des, fuel, gas, etc.
 Office equipment: Paper, copier, type writers. Services: Transport,
travel, touring, etc.
 Services: Transport, travel, touring, etc
Basically there are three types of buying situations.
1) STRAIGHT REBUY SITUATIONS: -In this routine, ord ers are
placed for office supplies, raw materials, other items of daily use, where
the supplier is known and a procedure is already laid down, which is
followed in a routine manner.

2) MODIFIED REBUY SITUATIONS: -Buyers may change or
modify the product ac cording to the situation, e.g., nylon rope for ordinary
rope. Plastic washers in place of steel or brass washers, aluminium instead
of copper, hydraulic in place of mechanical. This may be done for
economic consideration, or for the ease of procurement, or to modify or
change the product. The change may also be due to external or internal
environmental changes.

3) NEW TASK: -When a task is performed, items may be bought
without previous experience and for the first time. These could be new
machines like comput er or Fax machines. The need for such a product
may not have occurred previously. For a new task, a new set up and new
items are necessary, which may not have been purchased before.
4.10 ROLE & POWER OF BUYING CENTRES
(INITIATORS, INFLUENCERS, DECIDER, AND
BUYER & GATEKEEPERS)
Buying Centres and Buying Role
 Are groups of people within organizations who make purchasing
decisions.
 Webster and Wind called the decision making unit of a buying
organizations the buying centre.
 It consists of all those indivi duals and groups who participate in the
purchasing decision making process who shares some common goals
and the risks arising from the decisions.

1) Initiators
 Users or others in the organization who request that something be
purchased.

2) Users
 Those who will use the product or services.
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Culture and Subcultures,
Post Purchase Behaviour,
Organization Buying Process
75 3) Influencers
 People who influence the buying decision, often by helping define
specifications and providing information for evaluating alternatives.
 Technical personnel are particularly important influencers.

4) Deciders
 People who decide on product requirements or on suppliers.

5) Approvers
 People who authorizes the proposed actions of deciders or buyers.

6) Buyers
 People who have formal authority to select the supplier and arrange
the purchase terms.

7) Gatekeepers
 People who have th e power to prevent sellers or information from
reaching member of the buying centre.
4.11BUYING DECISIONS BASED ON ABC / VED / FSND
ANALYSIS
1) ABC Method
 Always Better Control or Proportional Part Value Method.
 Concentrates on important items and thus a lso referred to as control
by importance and exception.
 Group A: Constitutes costly items which are 10 to 20% of the total
items and may account for about 50% of the total value of stores
 Vertical strict control.
 Group B: Constitute 20 to 30 % of the store items and represent
30% of the total value of stores.
 Moderate Control.
 Group C: Constitutes to 70 to 80% of the items are covered costing
about 20% of the total value.
 Loose control.

2) VED Analysis
 This technique is ideally suited for space parts in the i nventory
management like ABC analysis.
 Inventories are classified into three categories on the basis of usage
of the inventories.
V=Vital item of inventories.
E= Essential item of inventories.
D= Desirable item of inventories.
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Consumer Behaviour
76 1) Vital item of inventories
Required for Regular Production Process.
Non availability of this may stop production.

2) E= Essential item of inventories
Considered essential for production but
Non availability of this may be tolerated for few hours or day

3) D= Desirable item of inventories
Does not affect production directly.
They facilitate production.
FNSD analysis
• It looks at amount, consumption fee and the way regularly the object is
issued and used.
• speedy -transferring, everyday moving gradual transferring and dead
inventory.
• rapid-moving (F).
• items in your inventory stock those are issued or used often.
• continuous test at the degrees of those items of material have to be
stored.
______ _____________________________________________________
4.12 SUMMARY
This course will help t he students to understand the basic concepts of
decision making in the organizations. How decision making helps the
marketer to do analysis in regard to customer satisfaction, customer needs
and its requirements, customer retention and product availability .
4.13 Exercise
1. Explain the concept of culture and subculture.
2. Explain post purchase satisfication measures.
3. Explain the role and power of buying centes.
4. Explain ABC/VED/FSND analysis.
4.14 BIBLIOGRAPHY AND REFERENCE FOR
FURTHER READING
Google.com
YouTube videos.
https://youtu.br/DGClxmNjkK4

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