Consumer Behaviour 2y1p5v

WHY CONSUMER BEHAVIOUR IMPORTANT

EARLIER - DEMAND > SUPPLY PRODUCTION CONCEPT - PRODUCTION & DISTRIBUTION PLANNING PRODUCT CONCEPT - R & D SELLING CONCEPT - SALES PLANNING NOW, MARKETING CONCEPT - PLANNING AROUND CUSTOMER NEEDS.

1

CONSUMER BEHAVIOUR

MENTAL DECISION PROCESS & PHYSICAL ACTIVITY - THAT CONSUMERS DISPLAY IN SEARCHING, EVALUATING, SELECTING, ACQUIRING, USING OR DISPOSING OF GOODS & SERVICES

BEFORE, DURING AND AFTER PURCHASE EVALUATIONS AND ACTIONS AND INFLUENCES GOVERNING THE SAME.

2

CONSUMER BEHAVIOUR - 7 O’S FRAMEWORK

OCCUPANT - WHO BUYS (DEMOG,PSYCHO, GEO, MEDIA) OBJECT - WHAT DO PEOPLE BUY (PRODUCT, BRANDS, FEATURES, SIZES, VARIETY) OBJECTIVE - WHY (BENEFITS, MOTIVES) OCCASION - WHEN (WHEN BUY/USE, HOW OFTEN BUY/USE) OUTLET - WHERE OPERATIONS - HOW (INVOLVEMENT, STAGES, SOURCES OF INFORMATION & EVALUATION PROCESS, RISK PERCEIVED) ORGANISATION - WHO ARE INVOLVED 3

BUYING ORGANISATION / BUYING ROLES

INITIATOR - RECOGNISES NEED INFLUENCER - PURCHASE DECISION, BRAND, USE. DECIDER - WHETHER TO BUY, WHEN, WHAT, HOW MUCH TO SPEND. BUYER - MAKES PURCHASE - CONSUMES OR USES GATEKEEPER - CONTROLS FLOW OF INFORMATION/PRODUCTS PREPARER - TRANSFORMS PRODUCT MAINTAINER - SERVICES OR REPAIRS SO THAT PRODUCT GIVES CONTINUOUS SATISFACTION DISPOSER - WHO CARRIES OUT / INITIATES DISCONTINUATION 4

USE OF CONSUMER BEHAVIOUR MICRO PERSPECTIVE 1.

PRODUCT MANAGERS A) MARKETING OPPORTUNITIES B) SEGMENTATION C) POSITIONING D) MARKETING MIX

2.

ADVERTISING & MEDIA PLANNERS A) ADVERTISING THEMES B) MEDIA

3.

MACRO PERSPECTIVE A) GOVERNMENT – WHAT PRODUCTS / SERVICES TO PROVIDE & PROBLEMS B) DEMARKETING

5

BLACK BOX A diagram of the Black-box approach Observable stimuli To inferences about (inputs) Intervening variables.

Black Blackbox box

Observable Responses (outputs)

Observed relationship between inputs and outputs 6 Inference results in identifying intervening variables and character zing their nature

RELATIONSHIP BETWEEN STIMULUS, RESPONSE & INTERVENING VARIABLES

1. STIMULUS VARIABLES - EXIST IN EXTERNAL OR INTERNAL ENVIRONMENT. 2. RESPONSE - OVERT (PURCHASE, RECOMMENDATION)-which can be seen or heard by others COVERT (ATTITUDE)-which cannot be seen by other people 3. INTERVENING - MAGNIFY, REDUCE OR MODIFY INFLUENCE OF S.V. ON R.V.

7

PROBLEMS IN MEASURING CONSUMER BEHAVIOUR

•

Given stimulus produces different responses in different individuals and different responses in same individual at different times because of different intervening variables influence.

•

External environment influence individual determinants.

•

Many intervening variables and that too interacting.

•

Black box.

8

DECISION PROCESS FRAMEWORK FOR CB External Environment Sub cul

nces flue n i l tura Cul

Information

deter mina nts



M

ot

iv a

tio

n

Ot her

es enc flu s in

ory mem nd

Information search and evaluation

la s al c

an d

Problem recognition

ga nin

inf

in vo

r Lea

lv

processing

i Soc

lue nce s

em en t

idual Indiv

tur al i nfl uen ces

Decision process Purchasing processes

ti At s de tu

l na rso Pe

Postpurchase behavior

lue Inf es nc

sel y and t i l a on Pers

Family Influences

cept f-con So

up ro g l cia

es nc e flu in

9

PERSPECTIVES TO CONSUMER BEHAVIOUR

1. Decision-making perspective

2. Experiential perspective

3. Behavioral influence perspective

10

MEASURING CONSUMER CHARACTERISTICS

1.

DEMOGRAPHICS – AGE, INCOME ETC. – SECONDARY SOURCES.

2.

CONSUMER ACTIVITY – DESCRIPTIVE – WHATS & HOWS – SURVEYS & OBSERVATION.

3.

COGNITIVE MEASURES – QUALITATIVE – WHYS – QUALITATIVE TECHNIQUES LIKE FOCUS GROUP, DEPTH INTERVIEW & PROJECTIVE TECHNIQUES.

11

CONSUMER ORIENTED RESEARCH

1.

EFFECT OF MACRO ENVIRONMENT FACTORS

2.

MARKET AND SEGMENT OPPORTUNITY

3.

PRODUCT RESEARCH – PRODUCT, BRANDING, PACKAGING

4.

PRODUCT USAGE

5.

PRICING RESEARCH

6.

ADVERTISING

7.

MEDIA

8.

SALES PROMOTION

9.

DISTRIBUTION

10. EFFECT OF COMPETITIVE ACTIVITY ON CONSUMERS 11. POST-PURCHASE ANALYSIS

12

PRIMARY RESEARCH METHODS FOR SELECTED CONSUMER BEHAVIOUR VARIABLES EXPERIMENTATION

Motivation

OBSERVATION AND INFERENCE

X

SELF REPORTS (SURVEYS)

PROJECTIVE TEST

FOCUS GROUPS/ DEPTH INTERVIEWS

X

X

Personality

X

X

Segmentation

X

Perception

X

X

X

X

X

X

X

X

X

Attitudes Communication

X X

Family Decisions

X

Opinion Leadership

X

X

X

X

X

X

X

X

X

X

X

Social Class Culture and Subculture

X

13

TYPES OF RESEARCH TOOLS USED IN CONSUMER RESEARCH STUDIES

RESEARCH METHODS

EXPERIMETATION

OBSERVATION AND INFERENCE

SELF REPORTS (SURVEYS)

PROJECTIVE TEST

FOCUS GROUPS/ DEPTH INTERVIEWS

RESEARCH TOOLS

• COPY PRETESTS • SPLIT CABLE • TACHISTSCOPES

• CAMERAS • CAMCORDERS • RECORDERS • PRODUCT SCANNERS • PEOPLE METERS • CONTENT ANALYSIS • ETHNOGRAPHY

• QUESTIONNARES • INVENTORIES •ATTITUDE SCALES - LIKERT SCALES - SEMANTIC DIFFERENTIAL SCALES - RANK-ORDER SCALES - VALUE INSTRUMENTS

• WORD ASSOCIATION •SENTENCE COMPLETION • FIGURE DRAWINGS •PICTURE SORTING • INK BLOTS • CARTOONS (TAT) • OTHER –PERSON CHARACTERIZATION

•SCREENER QUESTIONNAIRE • DISCUSSION GUIDES

14

CULTURE

CULTURE IS SUM TOTAL OF LEARNED BELIEFS, VALUES, CUSTOMS THAT SERVE TO DIRECT THE BEHAVIOUR OF OF PARTICULAR SOCIETY.

15

CULTURE

MATERIAL- physical

PRODUCTS & SERVICES

NON-MATERIAL- nonphysical

MARKETING TECHNO INSTITUTIONS SYSTEMS (DISTRIBUTION, ADVTG AGENCIES, MENTS

IDEOLOGICAL

ORGANISATIONAL SYSTEMS

16

CHARACTERISTICS OF CULTURE

1. INVISIBLE 2. LEARNED - Enculturation & acculturation - family, mass media, society. 3. SOCIALLY SHARED - Through common values language & symbols 4. PRESCRIPTIVE- established 5. PERSISTENT BUT ADAPTIVE

17

SUB-CULTURE

1. URBAN - RURAL 2. REGION 3. AGE 4. GENDER 5. OCCUPATION 6. SOCIAL CLASS 7. RELIGION

18

MANIFESTATIONS OF CULTURE • NATIONAL CULTURE • SUBCULTURE • SYMBOLS – VERBAL OR NON-VERBAL (SHAPES, SIGNS, COLOURS, M. MIX) • TABOOS • CUSTOMS • RITUALIZED ACTIVITIES 19

CULTURE / SUBCULTURE AFFECTS

1. VALUES 2. LIFESTYLE 3. PRODUCT CHOICE 4. PRICING V/S QUALITY ORIENTATION 5. SHOPPING BEHAVIOUR - FROM WHERE, HOW OFTEN, RATIONAL V/S IMPULSIVE, COMPARATIVE 6. APPEALS & MEDIA 7. REFERENCE GROUPS IMPORTANT 8. PERSONALITY TRAITS 9. BRAND LOYALTY 20

MARKETING IMPLICATIONS

1. PRODUCT FIT WITH CORE VALUES & MATERIAL CULTURE 2. ADVERTISING FIT WITH CORE VALUES 3. OTHER MARKETING ELEMENTS FIT WITH MATERIAL CULTURE 4. USE OF LANGUAGE 5. USE OF SYMBOLS 6. USE OF CUSTOMS 7. USE OF RITUALS 8. CONTRIBUTING TO CHANGING THE MATERIAL CULTURE

21

SOME CULTURAL VALUE DIMENSIONS

1.

MATERIAL ACQUISITION V/S EXPERIENTIALISM

2.

PRESENT V/S FUTURE

3.

HEALTH & FITNESS

4.

APPEARANCE

5.

RECEPTIVITY TO TECHNOLOGY

6.

INDIVIDUALISM V/S COLLECTIVISM

7.

MATERIAL COMFORT

8.

ACHIEVEMENT ORIENTATION

22

MEASUREMENT OF CULTURE

1.

CONTENT ANALYSIS – VERBAL, WRITTEN, PICTORIAL COMMUNICATIONS

2.

CONSUMER FIELDWORK – DEPTH INTERVIEWS, FOCUS GROUPS AND OBSERVATION

3.

VALUE MEASURMENT SURVEY INSTRUMENTS (A) ROKEACH VALUE SURVEYS (RVS) (B) LIST OF VALUES (LOV) (C) SRI VALS 2

23

CULTURAL VALUES TERMINAL VALUES

INSTRIMENTAL VALUES

(END-STATES OF EXISTENCE)

(MODES OF CONDUCT)

A comfortable life (a prosperous life)

Ambitious (hardworking, aspiring)

An exciting life (a stimulating, active life)

Broded (open-minded)

A sense of accomplishment (lasting

Capable (competent, effective)

contribution)

Cheerful (lighthearted, joyful)

A world at peace (free of war and conflict)

Clean (neat, tidy)

A world of beauty (nature and the arts)

Courageous (standing up for your beliefs)

Equality (brotherhood, equal opportunity)

Forgiving (willing to pardon others)

Family security (taking care of loved ones)

Helpful (working for others’ welfare)

Freedom (independence, free choice)

Honest (sincere, truthful)

Happiness (contendness)

Imaginative (daring, creative)

Inner harmony (freedom from inner conflict)

Independent (self-reliant, self-sufficient)

Mature love (sexual and spiritual intimacy)

Intellectual (intelligent, reflective)

National security (protection from attack)

Logical (consistent, rational)

Pleasure (an enjoyable, leisurely life)

Loving (affectionate, tender)

Salvation (saved, eternal life)

Obedient (dutiful, respectful)

Self-respect (self-esteem)

Polite (courteous, well mannered)

Social recognition (respect, iration)

Responsible (dependable, reliable)

True friendship (close companionship)

Self-controlled (restrained, self-disciplined)

Wisdom (a mature understanding of life)

24

TERMINAL VALUES

TERMINAL VALUES

PRODUCT CLASS

BELIEFS AND ATTITUDES ABOUT PRODUCT CLASS PRODUCT CLASS SELECTION

BRAND SELECTION

INSTRUMENTAL VALUES

BRAND CHOICE CRITERIA (I.E., CRITICAL BRAND ATTRIBUTES

BELIEFS AND ATTITUDES ABOUT BRANDS 25

LOV SEGMENTS

1.

SELF-RESPECT

2.

SECURITY

3.

WARM RELATIONSHIPS WITH OTHERS

4.

SENSE OF ACCOMPLISHMENT

5.

SELF-FULFILLMENT

6.

BEING WELL RESPECTED

7.

SENSE OF BELONGING

8.

FUN AND ENJOYMENT IN LIFE

26

SRI VALS 2 SEGMENTS

Actualizers

Principle

Oriented

Fulfilled

Believers

Status

Oriented

Achievers

Strivers

Strugglers

Action

Oriented

Experiencers

Makers

27

SRI VALS 2 SEGMENTS Actualizers Enjoy the “finer things” Receptive to to new products, technologies, distribution Skeptical of advertising Frequent readers of a wide variety of publications Light TV viewers.

Fulfilled Little interest in image or prestige Above-average consumers of Products for the home Like education and public Affair programming Read widely and often

Believers Buy American Slow to change habits Look for bargains Watch TV more than average Read retirement, home and Garden, and general Interest magazines

Achievers Attracted to products Prime target for variety of Products Average TV watchers Read business, news, and publications

Strivers Image conscious Limited discretionary Income but carry Credit balances Spend on clothing and Personal care products Prefer TV to reading

Strugglers Brand loyal Use coupons And watch for sales Trust advertising Watch TV often Read tabloids and women’s magazines

Experiencers Follow fashion and fads Spends much of disposable Income on socializing Buy on impulse Attend to advertising Listen to rock music

Makers Shop comfort, Durability, value Unimpressed by luxuries Buy the basics Listen to radio Read auto, home mechanics, Fishing, outdoor magazines

28

CROSS-CULTURAL ANALYSIS Cross-cultural analysis helps to determine how people in two or more societies are similar and how are they different by understanding unique psycholgical, social, cultural/ environmental characteristics of each culture. Such an underastanding of the similarities & differences that exists between nations is critical to the global marketer. The greater the similarity between nations, the more feasible it is to use relatively similar strategies in each nation. Cultural adaption is necessary. Because of cultural nationalism (john naisbit) Avoid self referencing criterion (j.A. Lee, cultural anthropologist) Avoid ethnocentrism

29

FRAME WORK FOR CROSS-CULTURAL ANALYSIS

I. 1. 2. 3. 4. 5.

HOFSTEDE’S DIMENSIONS INDIVIDUALISM V/S COLLECTIVISM HIGH V/S LOW POWER DISTANCE MASCULINE V/S FEMININE UNCERTAINTY AVOIDANCE CONFUCIANIST DYNAMICS

II. 1. 2. 3. 4. 5.

EDWARD HALL – HIGH V/S LOW CONTEXT CULTURES -SILENT LANGUAGE SPACE MATERIAL POSSESSIONS FRIENDSHIP PATTERNS CONTRACTUAL AGREEMENTS – EXPLICIT OR IMPLICIT PERCEPTION OF TIME – POLYCRONIC V/S MONOCRONIC

III.

HOMOGENEITY V/S HOMOPHILOUS CULTURE 30

CROSS-CULTURAL ANALYSIS

IV.

GANNON’S METAPHORS

V.

KLUCKHORN’S DIMENSIONS 1. HUMAN NATURE 2. PEOPLE-NATURE RELATIONSHIP 3. TIME SENSE 4. ACTIVITY 5. SOCIAL RELATIONS

VI.

RELIGION & SOCIAL BEHAVIOUR 31

INDIVIDUALIST

INDIVISUALISM

COLLEECTIVIST

THE POSITION OF THE 40 COUNTRIES ON THE POWER DISTANCE AND INDIVIDUALISM SCALES 12 14 16 8 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91

SMALL

POWER DISTANCE

LARGE

·· PAK ·COL ·VEN · TAI ·PER · THA · CHL ·SIN · POR ·HOK ·GRE ·TUR ·YUG ·ARG JAP · BRA · MEX · IRA ·IND ·PHI ·AUT · ·ISR · IRE · DEN

+ 11

· SPA

·FIN ·GER ·

·NOR · SWI · SWE

· SAF ·FRA

·NZL · CAN · NET · GBR · AUL · USA + 28

·BEL ·ITA 32 + 44

+ 61

+ 77

+ 94

STRONG

UNCERTAINTY AVOIDANCE

WEAK

THE POSITION OF THE 40 COUNTRIES ON THE UNCERTAINTY AVOIDANCE AND MASCULINITY SCALES 8 11 13 16 19 21 24 27 29 32 35 37 40 43 45 48 51 53 56 59 61 64 67 69 72 75 77 80 83 85 88 91 93 96 99 101 104 107 109 112

FEMININE

MASCULINITY

MASCULINE

·SIN

·

· DEN · SWE

·HOK

· NOR · NET · FIN

· CHL · YUG ·POR +

·IRE

+

· GBR ·IND · ·CAN

· PER ·IRA · THA

·SWI · ·GER

·TAI ·PAK

· BRA · ISR · SPA · FRA · TUR · PER

·USA ·PHI ·SAF ·NZL ·AUL

·ITA ·COL · VEN · MEX · ARG · BEL

· JAP

· GRE +

·AUT

33 +

+

+

VARIATIONS IN VALUE SYSTEMS

ORIENTATION HUMAN NATURE

EVIL

RANGE MIXTURE OF GOOD AND

GOOD

EVIL

PEOPLE-NATURE

SUBJUGATION TO NATURE

HARMONY WITH NATURE

RELATIONSHIP

TIME SENSE

MASTERY OVER NATURE

PAST ORIENTED (TRADITION

PRESENT ORIENTED (SITUATIONAL)

BOUND)

FUTURE ORIENTED (GOAL ORIENTED)

ACTIVITY

BEING

BEING-IN-BECOMING

LINEAL (AUTHORIAN)

COLLATERAL

INDIVIDUALISTIC

DOING

34

CROSS-CULTURAL ISSUES •

INDIVIDUALISM V/S COLLECTIVISM

•

ACHIEVEMENT & SUCCESS

•

ROMANTIC ORIENTATION AND SEXISM

•

ROLE OF CHILD

•

MASCULINITY V/S FEMINITY

•

SPIRIT OF COMPETITION

•

AGE GROUP FOCUS – YOUNG V/S OLD

•

MATERIALISTIC V/S NONMATERIALISTIC CULTURE

•

IMMEDIATE V/S POSTPONED GRATIFICATION

•

PERSONAL HYGEINE, GROOMING, HEALTH & FITNESS, APPEARANCE

•

STATUS OR NEED ORIENTED

•

TRADITION V/S CHANGE

•

RISK TAKING V/S SECURITY

•

SELF V/S OTHERS

35

CROSS-CULTURAL ISSUES

•

CONTROL OVER NATURE AND ENVIRONMENT V/S SUBJUGATION

•

LIVING IN PRESENT V/S PLANNING FOR FUTURE

•

RESISTANCE V/S RECEPTIVITY TO NEW TECHNOLOGY

36

STRATEGIC IMPLICATIONS OF CROSS-CULTURAL ANALYSIS

1.

People buy with reason. Motives may be different & not obvious sometimes.

2.

Social-cultural context of buying different. E.G. Individual V/s group decisionmaking.

3.

Means-end relationship (functional v/s emotional)

37

BASIC RESEARCH ISSUES IN CROSS-CULTURAL ANALYSIS

1.

DIFFERENCES IN LANGUAGE & MEANING.

2.

DIFFERENCES IN MARKET SEGMENTATION OPPORTUNITIES

3.

DIFFERENCES IN CONSUMPTION PATTERNS

4.

DIFFERENCES IN THE PERCEIVED BENEFITS OF PRODUCTS & SERVICES.

5.

DIFFERENCES IN THE CRITERIA FOR EVALUATIONG PRODUCTS & SERVICES.

6.

DIFFERENCES IN ECONOMIC & SOCIAL CONDITIONS & FAMILY STRUCTURE.

7.

DIFFERENCES IN MARKET STRUCTURE & CONDITIONS

8.

DIFFERENCES IN MARKETING RESEARCH POSSIBILITIES 38

POSSIBLE MARKETING STRATEGIES

1.

STANDARDISED PRODUCT & COMMUNICATION

2.

STANDARDISED PRODUCT LOCAL COMMUNICATION STRATEGY

3.

LOCALISED PRODUCT AND STD COMMUNICATION STRATEGY

4.

LOCALISED PRODUCT & COMMUNICATION

39

GENERALLY

1.

Advertising standardization for foreign products in developing markets but localised advertising in developed economics.

2.

For high involvement products i.E. High tech (computers) or high touch (perfumes) global strategy

3.

For low involvement products in mid-range of tough/ tech-local strategy.

4.

CULTURE BOUND CONSUMER PRODUCTS ESTABLISHED PRODUCTS SIMPLE TECHNOLOGY KITCHEN PRODUCTS

NOT-CULTURE BOUND INDUSTRIAL NEW PRODUCTS HIGH-TECH YOUNG PEOPLE WELL TRAVELLED EGODRIVEN UPPER

SEGMENT 40

SOCIAL CLASS

Division of of a society into a hierarchy of distinct status classes so that of each class have relatively same status, respect, prestige & of all others classes have more or less status, respect, prestige.

41

SOCIO-ECONOMIC CLASSIFICATION BASED ON THE EDUCATION & OCCUPATION OF CHIEF WAGE EARNER Education Occupation

Unskilled Workers

Illiterate

E2

School: upto 4 years E2

School: 5 -9 years

SSC/ HSC

E1

D

Some College but not graduate D

Graduate / Graduate/ Post-Graduate Post-Graduate General Professionals D

D

Skilled Workers

E2

E1

D

C

C

B2

B2

Petty traders

E2

D

D

C

C

B2

B2

Shop owners

D

D

C

B2

B1

A2

A2

None 1- 9 10 *

D C B1

C B2 B1

B2 B2 A2

B1 B1 A2

A2 A2 A1

A2 A1 A1

A1 A1 A1

Self-employed Professionals

D

D

D

B2

B1

A2

A1

Clerical / Salesmen

D

D

D

C

B2

B1

B1

Supervisory level

D

D

C

C

B2

B1

A2

Officers / Executives Junior

C

C

C

B2

B1

A2

A2 42

Businessmen Industrialists with No. on employees:

Officers / Executives

SOCIAL CLASS CHARACTERISTICS

1.

Hierarchical and exhibit status.

2.

Affect behaviour – values, attitudes, lifestyles, consumer behaviour.

3.

Frame of reference – higher (aspirational) same class (std).

4.

Natural basis of segmentation.

5.

Consumers buy symbols of status to enhance status within social class. 43

SOCIAL CLASS MEASUREMENT

•

OPEN SOCIETY – HIGH SOCIAL MOBILITY AND EARNED SOCIAL STATUS.

•

CLOSED SOCIETY – LOW SOCIAL MOBILITY AND DECIDED AT BIRTH.

44

SOCIAL CLASS & CONSUMER BEHAVIOUR

I. AFFECTS PRODUCT FORMS, BRANDS, & USAGE MORE THAN GENERIC CATEGORIES. II. LIFESTYLE & VALUES III. STORE BEHAVIOUR IV. MEDIA HABITS V. PRICE - QUALITY ORIENTATION

45

SOCIAL CLASS (MILLION HOUSEHOLDS) SOCIAL CLASS

INCOME

URBAN

RURAL

VERY RICH

> 2,15,000 p.a.

2.1

1.0

CONSUMING

45,000 - 2,15,000

27.5

25.9

CLIMBERS

22,000 - 45,000

17.0

54.2

ASPIRANTS

16,000 - 22,000

3.2

25.7

DESTITUTES

< 16,000

2.6

21.4

TOTAL

52.4

128.2

SOURCE: NCAER 2001 - 2002.

46

CONSUMING CLASS URBAN INDIA MILLION HOUSEHOLDS A1

-

1.8

A2

-

3.0

B1

-

4.5

B2

-

4.1

C

-

10.8

D

-

11.7

E1

-

5.5

E2

-

9.6

SOURCE : IRS 2001 A1 IS TOP CONSUMING CLASS E2 IS LOWEST SEC, THE DESTITUTES

47

SPIRAL OF DEMAND SOCIAL CLASS

VALUE ORIENTATION

DEMAND

VERY RICH

BENEFIT MAXIMIZERS

ANYWHERE IN WORLD PRODUCT

CONSUMING CLASS

COST-BENEFIT OPTIMISM

VALUE GROWTH VIA UPGRADATION

CLIMBERS

CASH CONSTRAINED BENEFIT SEEKERS

VOLUME GROWTH VIA MORE CONSUMPTION / OCCASIONAL CONSUMPTION

ASPIRANTS

DESTITUTES

NEW ENTRANTS INTO

VOLUME GROWTH VIA

CONSUMPTION

NEW CONSUMERS

HAND TO MOUTH

DEEP WELL

EXISTENCE 48

SOCIAL CLASS OR INCOME AS SEGMENTATION BASIS?

I. LIFESTYLE / VALUES / HOME MAKER DIFFERENCES WHERE EXPENDITURE IS LOW E.g.. CULTURAL ACTIVITIES, SOCIAL INTERACTION ITEMS, MEDIA HABITS, STORE BEHAVIOUR. SOCIAL CLASS

-

II. SUBSTANTIAL EXPENDITURE BUT NOT STATUS SYMBOL / CONSPICUOUS - INCOME III. STATUS SYMBOL / CONSPICUOUS PRODUCTS WITH MODERATE OR SUBSTANTIAL EXPENDITURE - INCOME + SOCIAL CLASS

49

SOCIAL CLASS MEASUREMENT DEPENDS ON RESEARCHER’S STUDY I.

SUBJECTIVE METHOD (SELF PERCEPTION)

II.

REPUTATIONAL METHOD (OTHER’S PERCEPTION)

III.

OBJECTIVE METHOD

•

SINGLE VARIABLE INDEX

•

COMPOSITE VARIABLE INDEX

INDICES – OCCUPATION (BEST) EDUCATION INCOME (AMOUNT OR SOURCE) QUALITY OF NEIGHBOURHOOD) RE VALUE OF RESIDENCE

)

POSSESSIONS

)

USED TO 50

SOCIAL GROUP

SOCIAL GROUP - CONSISTS OF PEOPLE WHO HAVE A SENSE OF RELATEDNESS AS A RESULT OF INTERACTION WITH EACH OTHER.

AGGREGATION - PEOPLE IN CLOSE PROXIMITY TO ONE ANOTHER AT A GIVEN TIME.

CATEGORY - NO. OF PEOPLE WHO HAVE COMMON ATTRIBUTES. MARKETER IS INTERESTED IN NOT JUST SOCIAL GROUPS (REFERENCE POWER) BUT ALSO AGGREGATION (EVENT MARKETING, HOARDINGS) & CATEGORIES (SEGMENTATION, TARGETING & POSITIONING).

51

SOCIAL GROUP PROPERTIES

1.

NORMS – LEARNT THROUGH SOCIALISATION

2.

TYPES – PRIMARY V/S SECONDARY FORMAL V/S INFORMAL

3.

POWER

A) REWARD B)

COERCIVE

C)

LEGITIMATE

D) EXPERT E)

INFORMATION – REASONING, LOGIC

F)

REFERENCE

52

HOW MARKETERS USE SOCIAL GROUP POWER 1. REWARD POWER - ADS SHOWING SATISFIED CUSTOMER GETTING GROUP ACCEPTANCE; SALESMEN GIVEN REWARDS, AMWAY VIDEO ON FRUITS OF LABOUR. 2. COERCIVE POWER - MARKETERS USE FEAR APPEAL OR RIDICULE, EMBARRASEMENT, SHAME TUPPERWARE - GROUP PRESSURE TO BUY. 3. LEGITIMATE POWER - SCHOOLS USE IN COLLECTING DONATIONS, MARKETERS USE THIS - BRAND ED ON FROM GENERATIONS OR APPEALS FROM CHARITABLE ORGANISATIONS. 4. EXPERT POWER - SALESMAN TO CUSTOMER, DOCTORS, EXPERT OPINION IN ADS. 5. INFORMATION POWER - SCIENTIFIC EVIDENCE. 6. REFERENT POWER - CELEBRITIES (ASPIRATION) SLICE OF LIFE COMMERCIALS OR TESTIMONIALS

53

REFERENCE GROUP IS ANY GROUP / PERSON THAT SERVES AS A POINT OF REFERENCE OR COMPARISION IN DETERMINING GENERAL OR SPECIFIC VALUES, ATTITUDES & BEHAVIOUR. TABLE TYPES OF REFERENCE GROUPS

HIP GROUP

NONHIP GROUP

POSITIVE

UAL GROUP

ASPIRATIONAL GROUP

INFLUENCE

(DIRECT) AUTOMATIC

(INDIRECT) SYMBOLIC

NEGATIVE

DISCLAIMANT GROUP

AVOIDANCE GROUP

INFLUENCE

(DISSASSOCIATIVE) 54

REASONS FOR ACCEPTING REFERENCE GROUP INFLUENCE

1. INFORMATIONAL BENEFITS • ENHANCE KNOWLEDGE / COPING ABILITY • OBSERVATION OR EXPERT RATINGS • EXPERT OPINION ADS OR SLICE OF LIFE 2. UTILITARIAN BENEFITS • PRESSURE TO CONFORM BECAUSE OF REWARDS / SANCTIONS • VISIBILITY IMPORTANT • ADS IN SOCIAL SETTING 3. VALUE EXPRESSIVE • TO ENHANCE SELF-IMAGE BY ASSOCIATING WITH POSITIVE REFERENCE GROUPS • CELEBRITY ADS

55

VARIABILITY OF REFERENCE GROUP INFLUENCE I. PRODUCT NECESSITY

LUXURY

PRODUCT

PRODUCT

BRAND

BRAND

NON

PRODUCT

PRODUCT

CONSPICUOUS

BRAND

BRAND

CONSPICUOUS

• PRODUCT MAY SHIFT FROM WEAK TO STRONG BRAND INFLUENCE & VICE VERSA • DIFFERENT STRATEGIES FOR THE QUADRANTS

II. WHICH GROUP ACTS AS REFERENCE

56

VARIABILITY OF REFERENCE GROUP INFLUENCE

III. EXTENT OF REFERENCE • PROXIMITY • STUDENTS (HEDONISM) • PERSONALITY OF INDIVIDUAL, GENDER, AGE. IV. TYPE OF INFLUENCE E.g.. COMPLEX PRODUCT - INFORMATIONAL INFLUENCE V. LIFE CYCLE SITUATION INTRODUCTION

-

PRODUCT

BRAND

GROWTH

-

PRODUCT

BRAND

MATURITY

-

PRODUCT

BRAND

DECLINE

-

PRODUCT

BRAND 57

FAMILY

1. CONSUMER SOCIALISATION PROCESS 2. USES PRODUCTS AS REWARDS 3. FAMILY DECISION MAKING T OR H/D OR W/D OR AUTONOMOUS 4. INFLUENCE OF CHILD 5. INFLUENCE OF TEENAGER 6. FAMILY LIFE CYCLE & PRIORITY OF PRODUCTS

58

CHANGING ROLES IN THE FAMILY THEN

FATHER

NOW

STRICT UNEMOTIONAL

CARING CONCERNED

AUTHORITARIAN

SENSITIVE

EMOTIONAL CARING

INFORMED INDEPENDENT

NURTURING

ENTERPRISING

SELF-INDULGENT

RESPONSIBLE DISCIPLINED

IRRESPONSIBLE REBELLIOUS

CAREER –MINDED

STRICTLY HIERACHICAL RIGID

EGALITARIAN FLEXIBLE

PARENTAL

CONTROLLING HIERARCHICAL

DEMOCRATIC

ROLES

DISTANT

COMPANIONABLE

MOTHER

CHILDREN

SPOUSAL ROLES

59

VARIABILITY OF INFLUENCE OF HUSBAND / WIFE / CHILD

1. PRODUCT

2. DECISION STAGES – INITIATION, SEARCH & EVALUATION, FINAL DECISION

3. DECISION AREAS – WHEN TO BUY, WHAT BRAND, COLOUR, WHERE TO BUY, HOW MUCH MONEY TO SPEND

60

FAMILY SPECIFIC CHARACTERISTICS INFLUENCE TYPE OF DECISION MAKING

I.

CULTURE – INDIAN V/S AMERICAN

II.

SUB-CULTURE – URBAN V/S RURAL RELIGION

III.

SOCIAL CLASS – HIGH V/S MIDDLE V/S LOW CLASSES

IV.

REFERENCE GROUPS - > SOCIAL TIES, < T DECISION-MAKING

V.

STAGE IN LIFE CYCLE – T DECISION-MAKING DECLINES OVER LIFE CYCLE

VI.

MOBILITY - > MOBILITY, T DECISION

VII. CHILDREN IN FAMILY – IN FAMILIES, HUSBAND-DOMINATED IN COUPLES, T

61

OPINION LEADERSHIP

Opinion leadership is the process by which one individual (the opinion leader) informally exerts influence & affects change in attitudes / behaviour of others (o. Seekers or o. Recipients)

62

OPINION LEADERSHIP CHARACTERISTICS

• INFORMAL & INTERPERSONAL (BETWEEN 2 OR MORE PEOPLE) • ESSENTIALLY VERBAL • INFORMATION & ADVICE ABOUT PRODUCT CATEGORY, BRAND, STORE, SERVICE, HOW TO USE. • NOT COMMERCIAL SELLING SOURCE, DIRECT BRAND EXPERIENCE HENCE PERSUASIVE

63

MULTISTEP FLOW OF COMMUNICATION THEORY

Step 2

Mass Mass Media Media

Step 1a

Opinion Opinion Leaders Leaders

Step 3

Opinion Opinion Receivers Receivers // Seekers Seekers

Step 1b

Information Information Receivers Receivers

64

OPINION LEADERSHIP CHARACTERISTICS

1. OLS ARE CATEGORY SPECIFIC 2. OVERLAP IN RELATED AREAS 3. SOME PRODUCTS MORE PRONE Eg. PERCEIVED RISK OR INTEREST 4. MARKET MAVENS - NO PRODUCT EXPERIENCE

65

OPINION LEADERSHIP & FIRMS PROMOTIONAL STRATEGY •

IDENTIFY -

A) THROUGH 4 METHODS B) THROUGH PUR RECORDS Eg. WHO FIRST BOUGHT PUSH BUTTON PHONES ARE LIKELY TO BUY VIDEOPHONES. C) EARLY PRODUCT TRIERS = HEAVY S D) SPONSORSHIP OF CONSUMER CONTESTS E) SPECIAL INTEREST MAG SUBSCRIBERS •

CREATE OLS - Eg. AVON

•

SIMULATE OLS -

A) ADS PORTRAYING PEOPLE IN INFORMAL CONVERSATIONS & RECOMMENDATION. B) OBSERVATION C) TESTIMONIAL THROUGH HIDDEN CAMERA •

STIMULATE OLS - TEASER, EMOTIONAL OR ENTERTAINING CAMPAIGN, ASK A FRIEND, CONTESTS ETC.

66

MOTIVATIONS O.L

O.R.

I.

PRODUCT INVOLVEMENT

A)

SHARE KNOWLEDGE & OPINION

A) DOES NOT KNOW & WANTS TO LEARN ABOUT PRODUCT OR USE

II.

SELF INVOLVEMENT

A)

REDUCE POST PURCHASE

A) REDUCE RISK

DISSONANCE

B) REDUCE SEARCH TIME

B)

GAIN ATTENTION

C)

EXPERIENCE POWER

III.

OTHER INVOLVEMENT

A)

EXPRESSIVE FRIENDSHIP ON NEIGHBOURLINESS

A) MEANS OF SOCIAL COMMUNICATION B) ENSURE SOCIAL ACCEPTANCE67 BY BUYING APPROVED PRODUCTS

CHARACTERISTICS OF O. Ls 1.

SAME SOCIAL CLASS AS NON-LEADER BUT MORE STATUS.

2.

GREATER KNOWLEDGE, INTEREST & INVOLVEMENT WITH PRODUCTCATEGORY

3.

SPECIAL INTEREST MEDIA EXPOSURE

4.

SOCIABLE – EXPOSURE OUTSIDE GROUP

5.

CLOSE PHYSICAL PROXIMITY

6.

INNOVATIVENESS – NOT INNOVATORS BUT EARLY ADOPTERS.

7.

INDIVIDUALISM & SELF – CONFIDENCE

8.

INNER –DIRECTEDNESS

9.

AGE NO BARRIER MEDICINE V/S FASHION

10. CULTURE VARIATIONS AMERICANS V/S INDIANS

68

MEASURING OPINION LEADERSHIP

1.

SELF-DESIGNATING METHOD

2.

SOCIOMETRIC METHOD

3.

KEY INFORMANT METHOD

4.

OBJECTIVE METHOD

69

INNOVATION DEFINITION

I.

FIRM ORIENTED – NOT EFFECTIVE METHOD

II.

PRODUCT ORIENTED – EFFECT ON BEHAVIOUR PATTERNS

•

CONTINUOUS, DYNAMICALLY CONTINUOUS, DISCONTINUOS

•

MARKET ORIENTED – SUBJECTIVE DEFINITION. DEGREE OF EXPOSURE IN OF

A)

PERCENTAGE OF POTENTIAL MARKET WHO HAVE BOUGHT

B)

PERIOD OF TIME

III.

CONSUMER ORIENTED DEFINITION – CONSUMER PERCEPTIONS 70

DIFFUSION OF INNOVATIONS

Diffusion is a macroprocess by which acceptance of an innovation (product, service, idea, practice) is spread through communication (mass media, salespersons, informal conversations) to of social system (physical, social cultural environment of target market) over a period of time

71

DIFFUSION OF INNOVATION Exposure to Innovation Innovation Characteristics

Consumer Characteristics

Consumer- Dependent Relative Advantage Compatibility Perceived Risk Complexity Effect on Adoption of Other Innovations Consumer -Independent Trialability Divisibility Reversibility Realization Communicability Form of Innovation

psychological Variables Perception Motivation Personality Value Orientation Beliefs Attitudes Previous Innovative Experience Demographics Age Education Income

No

Propagation Mechanisms Types Marketer- Controlled vs. Nonmarketer controlled Personal Vs. Impersonal Characteristics Credibility Clarity Source Similarity Informativeness

Innovation Resistance No

Adoption

Exposure to Innovation

Rejection

Yes Is Innovation Amenable to Modification ?

Yes

Modification 72

A CLASSIFICATION OF MARKETING STRATEGIES TO OVERCOME CONSUMER RESISTANCE TO INNOVATION SOURCE OF RESISTANCE (BARRIER)

MARKETING STRATEGY PRODUCT STRATEGY

COMMUNICATION STRATEGY

PRICING STRATEGY

FUNCTIONAL BARRIERS USAGE BARRIER DEVELOP A SYSTEMS PERSPECTIVE (E.G. INTEGRATE INNOVATION WITH PRECEDING ACTIVITY (PACKAGING) IMPROVE PRODUCT PERFORMACE (MODIFICATION AND DEVELOPMENT) IMPROVE PRODUCT POSITIONING

REDUCE PRICE BY LOWERING COSTS

RISK BARRIER

USE A WELL-KNOWN BRAND NAME

ELICIT ENDORSEMENTS AND TESTIMONIALS

IMAGE BARRIER

BORROW A GOOD IMAGE (BRAND NAME)

EDUCATE CUSTOMERS, USE CHAGE AGENTS.

COPING STRATEGY

MANDATE USAGE (MARKET DEVELOPMENT)

VALUE BARRIER

PSYCHOLOGICAL BARRIERS TRADITION BARRIER

MARKET STRATEGY

FACILITATE TRIAL (INCREASE MARKET EXPOSURE)

UNDERSTAND AND RESPECT TRADITIONS

MAKE FUN OF NEGATIVE IMAGE. CREATE A UNIQUE IMAGE.

73

ADOPTION

INDIVIDUAL PROCESS THAT FOCUSES ON STAGES THROUGH WHICH INDIVIDUAL CONSUMER ES WHEN DECIDING TO ACCEPT OR REJECT A NEW PRODUCT. INVOLVES ANALYSIS OF 1. PURCHASE TIME - AFFECTS DIFFUSION 2. ADOPTER CATEGORIES – DIFFERENT STRATEGIES FOR EACH 3. EXTENT OF ADOPTION - FULL OR LTD 4. STAGES IN ADOPTION PROCESS - AIETA

74

Innovators

2.5%

Early Adopters 13.5%

Early Majority 34%

Late Majority 34%

Laggards 16%

Percentage of Adopters by Category Sequence 75

ADOPTER CATEGORIES ADOPTER CATEGORY

INNOVATORS

DESCRIPTION

RELATIVE PERCENTAGE WITHIN THE POPULATION THAT EVENTUALLY ADOPTS

venturesome – very eager to try new ideas;

2.5%

acceptable if risk is daring; more cosmopolite social relationships; communicate with other innovators EARLY ADOPTERS

Respectable – more integrated into the local

13.5

social system; the persons to check with before adopting a new idea; category contains g reatest number of opinion leaders; are role models EARLY MAJORITY

deliberate – adopt new ideas just prior to the

34.0

average time; seldom hold leadership positions; deliberate for some time before adopting LATE MAJORITY

skeptical- adopt new ideas just after the average time;

34.0

adopting may be both an economic necessity and a reaction to peer pressures; innovations approached cautiously. LAGGARDS

traditional – the last people to adopt an innovation;

16.0 76

most “localite” in outlook; oriented to the past; suspicious of the new.

100.0%

COMPARATIVE PROFILE OF THE CONSUMER INNVATOR AND THE NONINNOVATOR OR LATER ADOPTER CHARACTERISTIC

INNOVATOR

NONINNOVATOR (OR LATER ADOPTER)

PRODUCT INTEREST

MORE

LESS

OPINION LEADERSHIP

MORE

LESS

DOGMATISM

OPEN-MINDED

CLOSED-MINDED

SOCIAL CHARACTER

INNER-DIRECTED

OTHER-DIRECTED

OPTIMUM STIMULATION LEVEL

HIGHER

LOWER

VENTURESOMENESS

MORE

LESS

PERCEIVED RISK

LESS

MORE

BRAND LOYALTY

LESS

MORE

DEAL PRONESS

MORE

LESS

USAGE

MORE

LESS

TOTAL MAGAZINE EXPOSURE

MORE

LESS

SPECIAL- INTEREST MAGAZINE

MORE

LESS

TELEVISION

LESS

MORE

SOCIAL INTEGRATION

MORE

LESS

SOCIAL STRIVING (E.G. SOCIAL

MORE

LESS

MORE

LESS

AGE

YOUNGER

OLDER

INCOME

HIGHER

LOWER

EDUCATION

MORE

LESS

PERSONALITY

PURCHASE AND CONSUMPTION TRAITS

MEDIA HABITS

SOCIAL CHARACTERISTICS

PHYSICAL, OCCUPATIONAL MOBILITY) GROUP HIPS DEMOGRAPHIC CHARACTERISTICS

77

HOW PROMOTION VARIES BY STAGE IN THE DIFFUSION PROCESS ADOPTER CATEGORY

SUCCESSFUL PROMOTIONAL APPROACHES

INNOVATOR AND EARLY

stress excitement of ownership.

ADOPTERS

explain how product is new and revolutionary. use sophisticated or technical messages and cosmopolitan appeals. use publicity for new product announcements. use highly credible spokespersons. employ narrowly targeted special-interest and prestige publications. appeal to “enthusiasts” – those highly involved in product category. Use pioneering advertising in specialized mass media. use personal selling for high-learning products. distribute trial size of product to homes. use “event marketing” to introduce new products to media and trade.

EARLY MAJORITY

use mass advertising to built brand preference. stress benefits and compare brands in ads. use demonstration-oriented advertising and house party personal selling. rely on peer pressure to overcome deliberateness. use price-oriented ads to gain market share. employ sales promotion tools such as coupons and trial sizes sold in stores. run dealer promotions to get them to stock and display the product.

78

HOW PROMOTION VARIES BY STAGE IN THE DIFFUSION PROCESS ADOPTER CATEGORY

SUCCESSFUL PROMOTIONAL APPROACHES

LATE MAJORITY

overcome skepticism by using guarantees and seals of approval such as Good Housekeeping, Underwriters Laboratory, etc. demonstrate product in store. use on-package coupons. stress extended warranty protection and service/ repair centers. use value-marketing approach in advertising stressing high quality for a low price. employ straightforward appeals. use mass advertising to dealers of the brand.

LAGGARDS

spend little on promotion because interest in product is disappearing.

79

POTENTIAL CAUSES OF INCOMPLETED ADOPTION PROCESS ACCEPTANCE PROCESS STAGE

MARKETING – ORGANISATION CONSUMER CAUSES OF CAUSES OF INCOMPLETED

INCOMPLETED PROCESSES

PROCESSES AWARENESS

COMPREHENSION

POORLY USED OR TOO LITTLE

SELECTIVE EXPLOSURE

COMMUNICATION

SELECTIVE PERCEPTION

COMMUNICATION HARD TO

SELECTIVE RETENTION

UNDERSTAND ATTITUDE

LEGITIMATION

COMMUNICATION NOT

COMPLACENCY, SUSPENDED

PERSUASIVE

JUDGMENT

POOR SOURCE EFFECT OF

PEER-GROUP PRESSURE

COMMUNICATIONS

AGAINST ADOPTION. LAWS REGULATING USE OF INNOVATION

TRIAL

BEHAVIORAL RESPONSE NOT

ALTERNATIVE EQUALLY GOOD

SPECIFIED IN COMMUNICATIONS INNOVATION NOT AVAILABLE POOR DISTRIBUTION SYSTEM ADOPTION

FAILURE TO DEVELOP NEW PRODUCTS AND IMPROVE OLD PRODUCTS

REPLACED BY ANOTH

INNOVATION

80

MARKETING IMPACT ON DIFFUSION DIFFUSION CONCEPT THE INNOVATION

MARKETING IMPACT MARKETING ACTIONS IN PRODUCT DESIGN AND POSITIONING ARE CRITICAL IN THE CONSUMER PERCEPTION OF THE INNOVATION AND ITS CHARACTERISTICS.

THE DIFFUSION PROCESS

MARKETING ACTIONS CAN INFLUENCE THE PATTERN AND SPEED OF DIFFUSION FOR THE TOTAL MARKET AND BY SEGMENT BASED ON PRICING, PROMOTIONAL EXPENDITURES, AND DISTRIBUTION INTENSITY. COMPETITIVE MARKETING ACTIONS HAVE A SIMILAR EFFECT.

THE ADOPTION PROCESS

MARKETING ACTIONS CAN MODIFY THE SPEED OF ADOPTION AND THE FORM OF THE ADOPTION PROCESS; FOR EXAMPLE, VIA SAMPLING PROGRAMS WHICH TAKE CONSUMERS FROM AWARENESS TO TRIAL.

THE COMMUNICATION

MARKETING CHANGE AGENTS BEAR DISTINGUISHING

PROCESS

CHARACTERISTICS FROM THOSE IN FARMING: THEY ARE INHERENTLY SELF-SERVING AND BIASED. ADVERTISING, PERSONAL SELLING, AND SALES PROMOTION ARE THE DOMINANT COMMUNICATION SOURCES AND CAN LEAD TO PURCHASE WITHOUT “OBJECTIVE, SCIENTIFIC AUTHORITY”.

OPINION LEADERSHIP AND

MARKETING ACTIONS CAN BOTH PRECLUDE THE IMPORTANCE OF PERSONAL

PERSONAL INFLUENCE

INFLUENCE AND INFLUENCE THE OCCURRENCE OF PERSINAL INFLUENCE DEPENDING ON OBJECTIVES.

ADOPTER CATEGORIES

MARKETING ACTIONS CAN BE INSTRUMENTAL IN DETERMINING WHO THE INNOVATOR WILL BE BASED ON MARKET SEGMENTATION DECISIONS.81

MOTIVATION

Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of tension as a result of unfulfilled need.

82

MODEL OF MOTIVATION PROCESS LEARNING UNFULFILLED NEED, WANTS, TENSION DESIRES

DRIVE

BEHAVIOUR

GOAL OR NEED FULFILLMENT

COGNITIVE PROCESS TENSION REDUCTION NEEDS – PRIMARY NEEDS / PHYSIOLOGICAL / INNATE / BIOGENIC SECONDARY NEEDS / PSYCHOGENIC / ACQUIRED

GOALS – GENERIC GOALS Eg. NEED TO SAVE PRODUCT SPECIFC GOALS Eg. INVESTING IN FIXED DEPOSITS

83

CLASSIFICATION OF MOTIVES

1.

PHYSIOLOGICAL V/S PSYCHOGENIC (MAY BE SIMULTANEOUSLY SATISFIED) PSYCHOGENIC OR LEARNED OR SECONDARY MOTIVES

2.

CONSCIOUS V/S UNCONSCIOUS

3.

POSITIVE V/S NEGATIVE MOTIVES

84

CONCEPTS

1.

POSITIVE MOTIVATION

2.

NEGATIVE MOTIVATION

3.

POSITIVE GOALS / APPROACH OBJECTS

4.

NEGATIVE GOAL / AVOIDACE OBJECTS

85

NATURE OF MOTIVES

1.

For any given need, there may be many goals – goals selected depend on cultural norms/ values, goal accessibility, physical capacity, past learning, individual’s self image, reference group effect.

2.

Goal may object may satisfy different needs for different people.

3.

Goal object may satisfy many needs at sametime for a person but one prepotent need e.G. Soft drink.

4.

People not aware of their needs, unlike goals especially psychogenic.

5.

New needs emerge as old are satisfied.

6.

Need & goals constantly changing due to constant interaction.

7.

Success & failure influence goals.

86

MOTIVES & MARKETING

HELPS MARKETERS TO •

IDENTIFY BASIC STRIVINGS

•

DRAW ATTENTION TO GOAL OBJECTS

•

DRAW ATTENTION TO CHOICE CRITERIA FOR EVALUATING PRODUCTS

87

MOTIVE AROUSAL

1.

PHYSIOLOGICAL

2.

EMOTIONAL

3.

COGNITIVE

4.

ENVIRONMENTAL

88

THEORIES

1.

MCGUIRE’S CLASSIFICATION

2.

DANIEL STARCH’S HUMAN MOTIVES – USED AS COPY APPEAL

3.

MURRAY’S LIST OF PSYCHOGENIC NEEDS

4.

MASLOW’S NEED HIERARCHY THEORY

5.

TRIO OF NEEDS – POWER, ACHIEVEMENT & AFFILIATION.

89

A COMPREHENSIVE CLASSIFICATION OF MAJOR MOTIVE INFLUENCES

ACTIVE

COGNITIVE PRESERVATIONS GROWTH AFFECTIVE PRESERVATION GROWTH

IVE

INTERNAL

EXTERNAL

1. CONSISTENCY

2. ATTRIBUTION

5. AUTONOMY

6. EXPLORATION

9. TENSION REDUCTION 10. EXPRESSIVE 13. ASSERTION 14. AFFILIATION

INTERNAL 3. CATEGIRIZATION 7. MATCHING 11. EGO-DEFENSIVE 15. IDENTIFICATION

EXTERNAL 4. OJECTIFICATION 8. UTILITARIAN 12. REINFORCEMENT 16. MODELING

90

MOTIVES IN ADULTS APPETITE - HUNGER

RESPECT FOR DEITY

LOVE OF OFFSPRING

SYMPATHY FOR OTHERS

HEALTH

PROTECTION OF OTHERS

SEX ATTRACTION

DOMESTICITY

PARENTAL AFFECTION

SOCIAL DISTINCTION

AMBITION

DEVOTION TO OTHERS

PLEASURE

HOSPITALITY

BODILY COMFORT

WARMTH

POSSESSION

IMITATION

APPROVAL OF OTHERS

COURTESY

GREGARIOUSNESS

PLAY- SPORT

TASTE

MANAGING OTHERS

PERSONAL APPEARANCE

COOLNESS

SAFETY

FEAR- CAUTION

CLEANLINESS

PHYSICAL ACTIVITY

REST – SLEEP

MANIPULATION

HOME COMFORT

CONSTRUCTION

ECONOMY

STYLE

CURIOSITY

HUMOR

EFFICIENCY

AMUSEMENT

COMPETITION

SHYNESS

COOPERATION

TEASING

91

MURRAY’S LIST OF PSYCHOGENIC NEEDS NEEDS ASSOCIATED WITH INANIMATE OBJECTS ACQUISITION CONSERVANCY ORDER RETENTION CONSTRUCTION NEEDS THAT REFLECT AMBITION, POWER, ACCOMPLISHMENT, AND PRESTIGE SUPERIORITY ACHIEVEMENT – RECOGNITION EXHIBITION INVIOLACY (INVIOLATE ATTITUDE) INFAVOIDANCE (TO AVOID SHAME, FAILURE, HUMILIATION, RIDICULE) NEEDS CONCERNED WITH HUMAN POWER DOMINANCE DEFERENCE SIMILANCE (SUGGESTIBLE ATTITUDE) AUTONOMY CONTRARIENCE (TO ACT DIFFERENTLY FROM OTHERS)

92

MURRAY’S LIST OF PSYCHOGENIC NEEDS (CONTD…)

SADO-MASOCHISTIC NEEDS AGGESSION ABASEMENT NEEDS CONCERNED WITH AFFECTION BETWEEN PEOPLE AFFILIATION REJECTION NURTURANCE (TO NOURISH, AID, OR PROTECT THE HELPLESS) SUCCORANCE (TO SEEK AID, PROTECTION, OR SYMPATHY) PLAY NEEDS CONCERNED WITH SOCIAL INTERCOURSE ( THE NEEDS TO ASK AND TELL) COGNIZANANCE (INQUIRING ATTITUDE) EXPOSITION (EXPOSITIVE ATTITUDE)

93

MEANS - END A MEANS –END LINKING FOR A BIKE-LOCK PURCHASE.

SAFETY

PROTECTION

STRENGTH

SECURITY

DEPENDABILITY

DURABILITY 94

MOTIVE COMBINATIONS

1.

MOTIVE LINKING

2.

MOTIVE BUNDLING

3.

MOTIVE CONFLICT BY KURT LEWIN

95

MOTIVE CONFLICTS

A) APPROACH – APPROACH CONFLICT

B) AVOIDANCE – AVOIDANCE CONFLICT

C) APPROACH – AVOIDANCE CONFLICT

96

MEASUREMENT OF MOTIVES

1.

OBSERVATION

2.

DEPTH INTERVIEWS

3.

FOCUS GROUPS

4.

PROJECTIVE TECHNIQUE

97

INVOLVEMENT

INVOLVEMENT THEORY BY HERBERT KRUGMAN CHARACTERISES THE INTENSITY OF INTEREST WITH WHICH CONSUMERS APPROACH THEIR DEALINGS IN MARKETPLACE.

98

HIGH INVOLVEMENT V/S LOW INVOLVEMENT

1.

INCREASED ATTENTION TO MENT

2.

ACTIVE SEARCH FOR INFORMATION OF ALTERNATIVE BRANDS

3.

HIGH LEVEL OR BRANDS AWARENESS

4.

CRITICALLY EVALUATES S/W OF BRANDS

5.

INTERESTED IN DIFFERENCES BETWEEN BRANDS

6.

CONSIDERABLE TIME & ENERGY IN DECISION-MAKING

99

DIAGRAM OF THE MAJOR DIMENSIONS OF INVOLVEMENT MODERATING FACTORS

• OPPORTUNITY TO PROCESS • ABILITY TO PROCESS

TS N DE E EC T AN T EC J B ON U S / O L S R A L • PE IMU TION • ST TUA • SI

INVOLVEMENT PROPERTIES

• INTENSITY • DIRECTION • PERSISTENCE

RESPONSE FACTORS

• SEARCH • INFORMATION PROCESSING • DECISION / PERSUASION

100

HIERARCHY OF EFFECTS UNDER HIGH-AND LOWINVOLVEMENT CONDITIONS

HIGH-INVOLVEMENT HIERARCHY

LOW-INVOLVEMENT HIERARCHY

COGNITION

COGNITION

ATTITUDE

BEHAVIOR

BEHAVIOR

ATTITUDE

101

BUYING BEHAVIOUR

High Involvement

Significant perceived differences between brands

COMPLEX

VARIETY SEEKING

DISSONANCE No significant perceived differences between brands

Low Involvement

HABITUAL

REDUCING

102

MARKETING IMPLICATIONS OF INVOLVEMENT

1.

HIGH INVOLVEMENT – LOW INVOLVEMENT PRODUCTS

2.

CONVERT LOW INVOLVEMENT TO HIGH INVOLVEMENT

3.

SEGMENT HIGH & LOW INVOLVEMENT CONSUMERS

103

INVOLVEMENT THEORY I.

CENTRAL & PERIPHERAL ROUTE TO PERSUASION THEORY HIGH INVOLVEMENT CENTRAL ROUTE

DEVOTE LOT OF COGNITIVE EFFORT

USE

LOW INVOLVEMENT SEEKS SYMBOLIC & PERIPHERAL CUES USE PERIPHERAL ROUTE II.

HEMISPHERAL LATERALIZATION OR SPLIT BRAIN THEORY LEFT BRAIN = COGNITIVE VERBAL PROCESSING PROCESING PRINT. RIGHT BRAIN = NONVERBAL, PICTORIAL PROCESSING PROCESSING

ACTIVE IVE

TV.

III.

ALTERNATE THEORY - BOTH SIDES OF BRAIN ARE CAPABLE OF HIGH/LOW INVOLVEMENT.

IV.

SOCIAL JUDGEMENT THEORY - INDIVIDUAL’S PROCESSING OF INFORMATION DEPENDS ON HIS INVOLVEMENT.

104

CATEGORY INVOLVEMENT

CATEGORY OF

CONDITIONS THAT OPERATE

INVOLVEMENT OR CORRESPOND TO THE

ASPECTS OF THEEXTENT OF STIMULI THAT

NATURE OF MENTAL ACTIVITY

CATEGORY OF INVOLVEMENT

ARE PEOCESSED

HIGH –

PRODUCT’S PERFORMANCE

OBJECTIVE INFROMATION

COGNITIVE

DIMENSIONS IMPORTANT

HIGH –

PRODUCT’S “IMAGE”

SYMBOLIC QUALITY, IMAGE

AFFECTIVE

DIMENSIONS IMPORTANT

DIMENSIONS

RELATIVE ENGAGEMENT OF MENTAL

LEFT/ RIGHT BRAIN

ACTIVITY

HIGH

HIGH

BRAND BELIEF

LEFT: INTENSE

FROMATION

RIGHT: MODEST

RICH IMAGERY;

LEFT: MODEST

SENSORY, HOSISTIC ,

RIGHT: INTENSE

GLOBAL ENCODING

LOW NEITHER VERY IMPORTANT MOST READILY ACCESSIBLE INVOLVEMENT

LOW

SHALLOW, SPARE

LEFT: MARGINAL

PRODUCT FEATURE

BELIEF FORMATION

SHALLOW IMAGE

AND SURFACE-LEVEL,

RIGHT: MARGINAL

GENERAL IMAGE

105

BRAND LOYALTY

1. DEFINED IN OF ATTITUDE & NOT BEHAVIOUR

2. BRAND LOYALTY NOT LINKED TO PERCEIVED DIFFERENCES

106

BRAND LOYALTY AND BRAND DISCRIMINATION

HIGH

HIGH

BRAND LOYALTY

I. MEN’S COLOGNE  COLA DRINKS 

II.

BRAND DISCRIMINATION

LOW

 FAST – FOOD RESTAURANTS

 GASOLINE

 COFFEEE  POWER TOOLS

 MOTOR OIL  COLOR TV III.

IV.

LIGHT BULBS  DISPOSABLE RAZORS 

 HEADACHE REMEDIES

LOW

 SHAVING CREAM COUGH REMEDIES 

107

GENERAL INCONGRUITY ADAPTATION LEVEL(GIAL) OR OPTIMUM STIMULATION LEVEL(OSL) By streufert & driver • A person derives stimulation from environment • Extent of stimulation depends on amount of incongruity or disparity between stored knowledge & new information. • Each consumer desires different levels of incongruity / stimulation called gial / osl. • > Or < gial / osl will be uncomfortable & behaviour designed to return to optimum (not minimum) • Type of behaviour influenced by magnitude & direction of difference between present levels of environmental stimulation & gial / osl.

108

DIAGRAM A DIAGRAM BASED ON STREUFERT AND DRIVER’S THEORY OF THE RELATIONSHIP BETWEEN OPTIMUM STUMULATION AND AFFECT.

AFFECT (LIKING)

POSITIVE LEVELS

ZERO

NEGATIVE LEVELS

ZONE 1

ZONE 2

ZONE 3

GIAL (OPTIMUM) ENVIRONMENTAL STIMULATION (INCONGRUITY)

109

PERSONALITY

Personality is inner psychological traits / characteristics that both determine & reflect how a person responds to his or her environment. Although behaviour may change due to circumstances, there is tendency to behave in consistent fashion.

110

PERSONALITY TRAITS

1. INNOVATIVENESS 2. DOGMATISM 3. SUSCEPTIBILITY TO INTERPERSONAL INFLUENCE 4. ETHNOCENTRISM 5. MATERIALISM 6. INNER DIRECTED 7. OSL 8. VARIETY SEEKING 9. VISUALIZERS V/S VERBALIZERS

111

MEASURING PERSONALITY

1.

RATING METHOD

2.

SITUATIONAL TEST

3.

PROJECTIVE TECHNIQUE

4.

INVENTORY SCHEMES – USED BY MARKETERS INCLUDE EDWARD, PERSONAL PREFERENCES SCHEDULE, GORDON PERSONAL PROFILE, CALIFORNIA PERSONALITY INVENTORY, MINNESOTA MULTIPHASIC PERSONALITY INVENTORY. 112

PERSONALITY THEORIES

1.

SIGMUND FREUD’S PSYCHOANALYTICAL PERSONALITY THEORY – ID, EGO, SUPEREGO.

2.

JUNGIAN PERSONALITY TYPES – MARKETERS USE MYERS BRIGGS TYPE INDICATORS.

3.

SOCIAL THEORIES – KAREN HORNEY’S CAD THEORY & INSTRUMENT.

4.

TRAIT THEORY & INSTRUMENTS

113

PSYCHOANALYTICAL PERSONALITY THEORY Every individual’s personality is a product of struggle among 3 interacting forces – id, ego, superego. • Id – strong inborn drives – sex & agrression & operates on pleasure principle & at unconscions level. • Ego – operates on reality principle & helps cope with external environment. • Super ego – consists of moral part of individual’s psychoanalytic structure through internalizing values of society.

Defense mechanisms like repression, projection & identification To deal with unresolved conflict between the 3 components of Personality. 114

JUNGIAN PERSONALITY TYPES Sensing –thinking (st) •

Rational in decision making

•

Logical and empirical in viewpoint

•

Makes decisions following an “objective” orientation.

•

Heavily weighs economic considerations – most price sensitive.

•

Will extend considerable effort to search for decision-making information.

•

Risk avoider

•

Materialism reflects personal or private motives (i.E. Identifies with material objects or “things”)

•

Short- time horizon in making decisions

Sensing – feeling (sf) •

Emprical viewpoint

•

Propelled by personal values rather than logic

•

Makes decisions following a –”subjective” orientation

•

Likely to consider others when making a decision

•

Shares risk with others

•

Materialism reflects how objects will impact on others (i,.E. Status conscious)

•

Short –time horizon in making decisions.

115

JUNGIAN PERSONALITY TYPES (CONTD…)

INTUITING –THINKING (NT) •

TAKES A BROAD VIEW OF PERSONAL SITUATION OR WORLD

•

RELIES HEAVILY ON IMAGINATION YET USES LOGIC IN APPROACHING DECISIONS.

•

IMAGINE’S WIDER RANGE OF OPTIONS IN MAKING A DECISION.

•

WEIGHS OPTIONS MENTALLY.

•

LONG-TIME HORIZON IN MAKING DECISIONS.

INTUITING –FEELING (NF) •

TAKES A BROAD VIEW OF PERSONAL SITUATION OR WORLD.

•

IMAGINES A WIDE RANGE OF OPTIONS IN MAKING A DECISION.

•

HIGHLY “PEOPLE ORIENTED” – LIKELY TO CONSIDER OTHERS’ VIEWS.

•

MAKES DECISIONS FOLLOWING A SUBJECTIVE ORIENTATION.

•

LEAST PRICE SENSITIVE

•

RISK SEEKING (VENTURESOME AND NEVELTY SEEKING)

•

INDEFINITE TIME HORIZONE IN MAKING DECISIONS.

116

KAREN HORNEY’S 3 PERSONALITY GROUPS

A) COMPLIANT INDIVIDUALS (DESIRE TO BELONG, LOVED)

B) AGGRESSIVE INDIVIDUALS (DESIRE TO EXCEL)

C) DETACHED INDIVIDUALS (INDEPENDENT)

117

USE OF PERSONALITY

A) BRAND PERSONIFICATION

B)

PRODUCTS / SERVICES HAVE GENDERS

C)

COLOURS & PERSONALITY TRAITS

118

SELF CONCEPT (SELF IMAGE)

1. ACTUAL SELF

2. IDEAL SELF

3. SOCIAL SELF

4. IDEAL SOCIAL SELF

119

SELF CONCEPT AND MARKETING

1. PRODUCTS SERVE AS SOCIAL SYMBOLS TO MAINTAIN / ENHANCE SELF CONCEPT

2. SELF IMAGE IMPORTANT PREDICTOR OF BRAND PREFERENCES

3. THERE HAS TO BE RELATION BETWEEN SELF CONCEPT & BRAND IMAGE

4. DIFFERENT SELFS FOR DIFFERENT PRODUCTS

120

PERCEPTION

Perception is an individualsed process by which an individual gets selectively exposed, recognizes, selects, organises & interprets stimuli into a meaningful & coherent picture. Perception is subjective individualized process based on own needs, values & expectation different from objective reality.

121

INFORMATION PROCESSING FRAMEWORK CONSUMER CHARACTERISTICS

SITUATIONAL CHARACTERISTICS

EXECUTIVE SYSTEM

INTERNAL PROCESS STIMULI 1. 3.

E SUR ON O P EX ENTI ATT

ACQUISITION

SENSATIONS

INFORMATION

PERCEPTUAL ENCODING

INTEGRATION

OUTCOMES

RY SO ES N S E 2. S OCES PR

MEMORY

122

KEY

I.

STIMULI - EXTERNAL OR INTERNAL

II.

PERCEPTUAL SELECTION a) SELECTIVE EXPOSURE b) SELECTIVE ATTENTION

III. PERCEPTUAL ENCODING / ORGANIZING IV. PERCEPTUAL INTERPRETATION

123

SELECTIVE EXPOSURE A) absolute threshold i)

lowest level at which individual experiences sensation

ii)

absolute threshold increases due to bland environment & Adaptation.

B) differentiation threshold or j.N.D. - Ernst weber The minimal difference that can be detected between 2 Stimuli, is relative to intensity of 1st stimulus. S = k

ie.

S = k . s

S • Applicable to any stimuli • Marketers use for both (-)ve & (+)ve changes

124

SUBLIMINAL PERCEPTION

People are stimulated because level of conscious awareness. This is called subliminal perception. Thus,

awareness threshold

Subliminal perception

Absolute threshold 125

SELECTIVE ATTENTION

1. THROUGH ACTIVE SEARCH OR IVE RECEPTION 2. VOLUNTARY OR INVOLUNTARY ATTENTION 3. ATTENTION SPAN LTD. 4. HAPPENS DUE TO I.

STIMULUS FACTORS - SIZE, INTENSITY, NATURE, MOTION, CONTRAST, NOVELTY, FAMILIARITY, POSITION.

II. INDIVIDUAL FACTORS - NEEDS, PREVIOUS EXPERIENCE, VALUES, INTEREST, PRECONDITIONED MINDSET, EXPECTATIONS SOMETIMES MARKETERS USE LACK OF CONTRAST TO AVOID SELECTIVE EXPOSURE.

126

PERCEPTION ORGANISATION / ENCODING

Is a highly individual process of asg mental symbols (words, images) so as to assign meaning to sensations. This is based on individual’s ability, learning, motives, situation, opportunity to process, attitudes. FEATURE ANALYSIS (GESTALT PSYCHOLOGY) A) FIGURE & GROUND B) GROUPING & CATEGORIZATION C) CLOSURE (ZEIGERNIK EFFECT) D) PROXIMITY IN TIME & SPACE

127

PERCEPTUAL INTERPRETATION Is the synthesis stage 1.Selective distortion - higher for ambiguous stimuli (A tendency to interpret information in ways which reinforce existing attitudes or beliefs. In communication research, the preferred term is selective exposure) A) stereotyping B) irrelevant cues - price

quality

C) first impression D) halo effect 2. Selective retention a) repetition B) simple C) pictorial D) interesting 3. Perceptual defence – strong reasoning, source credibility 4. Perceptual blocking – avoid intense fear

128

PERCEPTIONS & MARKETING IMPLICATIONS PRODUCT 1.

INFORMATION PROCESSING DEPENDS ON COGNITIVE ABILITY & COMPLEXITY OF INFORMATION.

2.

PAST EXPERIENCE WITH PRODUCT CATEGORY INCREASES COGNITIVE ABILITY.

3.

INFORMATION OVERLOAD – LEARNING TO USE SIMPLE RULE OF THUMB.

4.

IRRELEVANT CUES – EXTRINSIC / SURROGATE

5.

INFERENTIAL BELIEFS – E.G. PRESERVATIVES IN MILK BECAUSE ALL PACKAGED GOODS = PRESERVATIVES. 129

PERCEPTIONS & MARKETING IMPLICATIONS PRICE 1.

REFERENCE PRICING

2.

PSYCHOLOGICAL PRICE BARRIER

3.

PRICE = QUALITY WHEN UNKNOWN BRAND & NO EXPERIENCE

STORE IMAGE – BRAND IMAGE COMPATIBILITY

MENTS 1.

SUBLIMINAL ADVERTISING

2.

SEX IN ADVERTISING – PERCEIVED LOW QUALITY PRODUCT

3.

USE OF MODELS SIMILAR TO PERSON 130

LEARNING

LEARNING IS A PROCESS OF ACQUIRING PURCHASE AND CONSUMPTION KNOWLEDGE, EXPERIENCE & BELIEFS THAT AN INDIVIDUAL CAN APPLY TO FUTURE RELATED BEHAVIOUR. LEARNING IS A CONTINUOUSLY EVOLVING PROCESS DUE TO NEWLY ACQUIRED KNOWLEDGE OR ACTUAL EXPERIENCE. LEARNING HAPPENS INTENTIONALLY OR INCIDENTALLY.

131

TYPES OF LEARNING

1. PHYSICAL BEHAVIOUR - Eg. EXPIRY DATE 2. SYMBOLIC LEARNING - SIGNS, BRAND NAMES, SLOGANS, COLOURS 3. COGNITIVE LEARNING - Eg. SMALL CARS GOOD 4. AFFECTIVE LEARNING - LIKING / DISLIKING DUE TO PRODUCT / BRAND MEETING WANTS / GOALS.

132

BASIC ELEMENTS FOR LEARNING TO HAPPEN

1.

MOTIVE - CREATES DRIVE

2.

CUE – PROVIDES DIRECTION TO MOTIVATED ACTIVITY

3.

RESPONSE – DEPENDS ON COGNITION & PREVIOUS LEARNING

4.

REINFORCEMENT – INCREASES LIKELIHOOD OF SPECIFIC RESPONSE OCCURING AGAIN.

133

LEARNING THEORIES CLASSIFICATION LEARNING THEORIES

CONNECTIONIST

CLASSICAL CONDITIONING

COGNITIVE

INSTRUMENTAL CONDITIONING

134

LEARNING THEORIES I.

Behavioural learning

A) Classical conditioning (respondent conditioning) by ivan pavlov, russian psychologist [ (s-r) theory believe that observable response to specific stimuli signal learning has taken place ].

B) Instrumental conditioning (operant conditioning) - by b.F. Skinner (american psychologist) [ (r-s) reinforcement to response decides on stimulus that will be selected.

Ii. Cognitive learning theory - use of mental process without repetition or reinforcement.

135

LEARNING THEORIES

III.

BEHAVIOUR MODIFICATION PERSPECTIVE – SET OF INTERVENTION TECHNIQUES DESIGNED TO INFLUENCE BEHAVIOUR OF INDIVIDUALS. INCLUDES C.C. & I.C.

A)

SHAPING – REINFORCING SUCCESSIVELY CLOSER APPROXIMATION TO DESIRED BEHAVIOUR. CONTINUOUS V/S PARTIAL

B)

MODELING

C)

STIMULUS GENERALIZATION-me too products succeed

D)

DISCRIMINATION LEARNING

E)

ECOLOGICAL MODIFICATION 136

CLASSICAL CONDITIONING CONCEPTS

US

UR

CS

I. REPETITION II. STIMULUS GENERALISATION - PRODUCT LINE EXTENSIONS, BRAND EXTENSIONS, ME-TOOS, LICENSING III. STIMULUS DISCRIMINATION 137

LEARNING CURVE

AMOUNT LEARNED

NO. OF PRACTICE TRIALS 1.

RATE OF LEARNING VERY RAPID IN INITIAL STAGES. BUT AS AMOUNT LEARNED ACCUMALATES, RATE OF ADDITIONAL LEARNING PER TRIAL DECREASES.

2.

MENT REPETITIONS LEAD TO BOREDOM & IN ATTENTION BUT IF NOT REPEATED, FORGETTING.

3.

DISTRIBUTED PRACTICE BETTER THAN MASSED PRACTICE.

4.

EXTINCTION – RESTISTANCE TO EXTINCTION

138

REPRESENTATION OF MEMORY SYSTEM MAINTENANCE REHEARSAL

SENSORY MEMORY

SHORT-TERM MEMORY

LONG-TERM MEMORY

ELABORATIVE REHEARSAL

FORGOTTEN MATERIAL

139

CHARACTERISTICS OF MEMORY SYSTEMS MEMORY SYSTEM

DURATIONCAPACITY TYPE OF CODING

TYPE OF CODING

MAJOR FORGETTING MECHANISM

SENSORY MEMORY

FRACTION OF A

ALL THAT PERCEPTUAL

QUITE DIRECT

SECOND

SENSORS CAN DELIVER

REPRESENTATION

DECAY

OF REALITY

SHORT –TERM

LESS THAN ONE

APPROXIMATELY SEVEN

INDIRECT -

DECAY

MEMORY

MINUTE

ITEMS

CHUNKING

LONG-TERM

UP TO MANY

ALMOST UNLIMITED

INDIRECT - INTEREFERENCE

MEMORY

YEARS

CLUSTERING VIA MEANINGFULNESS

140

INFORMATION PROCESSING & MEMORY I.

SELECTIVE EXPOSURE

II.

ROLE OF REHEARSAL SCHEMA IS TOTAL PACKAGE OF ASSOCIATIONS BROUGHT TO MIND WHEN CUE IS ACTIVATED.

A)

MAINTENANCE REHEARSAL

SHORT TERM MEMORY

B)

ELABORATE REHEARSAL THROUGH SYNTHESIS (SCHEMA)

III.

INFORMATION STORED SENMANTICALLY (CONCEPTS) & EPISODICALLY, PROCEDURALLY (E.G. CHECK PRICE BEFORE BUYING) & VISUALLY.

IV.

RETRIEVAL DEPENDS ON THOROUGHNOUS OF LEARNING & CONTEXT OF SITUATION. 141

INFORMATION PROCESSING & MEMORY (CONTD…) V.

RETRIEVAL DIFFICULT WHEN SIMILAR DUE TO

RETROACTIVE INHIBITION

PROACTIVE INHIBITION

NEW LEARNING

OLD LEARNING

INTERFERES WITH

INTERFERES WITH

ING OLD

ING NEW

MATERIAL

MATERIAL 142

ATTITUDES

An attitude is how (+)ve or (-)ve, favourable or unfavourable or pro or con a person feels towards an object. Attitudes are learned predispositions to respond to an object or class of objects in a consistently favourable or unfavourable way. Attitudes are not directly observable but must be inferred from what people say or what they do.

143

CHARACTERISTICS OF ATTITUDES

1. Attitude have object - product, brand, etc. 2. Attitudes are learned predisposition - direct experience or information or cognitive process. 3. Generally - attitudes behaviour consistency - with exceptions 4. ATTITUDES OCCUR WITHIN SITUATION - mcdonalds SNACK V/S DINNER 5. Attitudes have direction, intensity & conviction (confidence of expression) affects attitude change. 6. Attitudes have structure - internal consistency & inter attitudinal centrality. Centre - values & self-concept. 7. Attitudes being learned, become stronger, longer they are held. 8. Attitudes are generalizable - (-)ve attitudes towards all extensions of brand. 9. Only 2-3 important beliefs about product dominate in formation of attitude. 144

FUNCTIONS OF ATTITUDE

A)

ADJUSTMENT OR UTILITARIAN FUNCTION – POSITIVE ATTITUDE TORWARDS NEED SATISFYING OBJECT.

B)

EGO-DEFENSIVE FUNCTION – TO PROJECT SELF-IMAGE

C)

VALUE-EXPRESSIVE FUNCTION – SELF-EXPRESSION

D)

KNOWLEDGE FUNCTION – NEED TO KNOW

145

SOURCES OF ATTITUDE DEVELOPMENT

A)

PERSONAL EXPERIENCE

B)

GROUP ASSOCIATIONS

C)

INFLUENTIAL OTHERS

146

SIMPLE DIAGRAM INTERRELATIONSHIP

SOURCES OF IFORMATION AND INFLUENCE 1.

PERSONALITY / SELF-CONCEPT

OTHER BELIEFS AND ATTITUDES

DIRECT EXP.

2. GROUPS (SOCIAL WORK, FAMILY, CULTURE, ETC. 3. MASS MEDIA

PERCEPTION OF INFORMATION ABOUT PRODUCT OR BRAND

BELIEFS ABOUT PRODUCT OR BRAND IMPORTANCE OF BELIEFS ABOUT PRODUCT ATTRIBUTES

GENERAL ATTITUDE TOWARD PRODUCT OR BRAND

4. WITH INFLUENTIAL OTHERS

NEED STRUCTURE

VALUE SYSTEM

147

ATTITUDE THEORIES & MODELS

HUMAN MIND STRIVES TO MAINTAIN HARMONY OR CONSISTENCY AMONG CURRENTLY PERCEIVED ATTITUDES. IF INCONSISTENCY PERCEIVED, MENTAL TENSION DEVELOPS TO RETURN STRUCTURE TO CONSISTENT STATE.

A)

CONGRUITY THEORY

B)

BALANCE THEORY – FRITZ HEIDER

C)

COGNITIVE DISSONANCE THEORY

148

CONGRUITY THEORY +3

U2 GROUP

+2

U2 GROUP

+2

+1

POSITIVE STATEMENT

0 -1

+3

ELECTRIC GUITAR

+1

ELECTRIC GUITAR

0 -1

-2

-2

-3

-3 (a)

RESOLUTION

(b)

STRONG ATTITUDE EXERTS GREATER PULL ON WEAKER ATTITUDE.

149

BALANCE THEORY

“|”

DON’T LIKE ( - )

LIKE (+)

“LARGE, LUXURIOUS CARS”

“ENERGY-WASTING PRODUCTS” ARE ( + )

RESOLUTION THROUGH RATIONALISATION

150

COGNITIVE DISSONANCE THEORY – LEON FESTINGER A)

LOGICAL INCONSISTENCY BETWEEN 2 THOUGHTS

B)

LOGICAL INCONSISTENCY BETWEEN ATTITIDE & BEHAVIOUR

C)

LOGICAL INCONSISTENCY BETWEEN 2 BEHAVIOURS.

D)

STRONGLY HELD EXPECTATION IS DISCONFIRMED

E)

PRE-PURCHASE, BRAND HAS BOTH (+) & (-) CHARACTERISTICS

F)

POST-PURCHASE DISSONANCE

COGNITIVE DISSONANCE ARISES ONLY IF IT IS PERCEIVED.

STRATEGICS TO REDUCE COGNITIVE DISSONANCE – E.G. ANY T.V. BREAKDOWN. A)

RATIONALISATION

B)

SEEKING INFORMATION

C)

CHANGING OPINION

151

MULTIATTRIBUTE MODELS

A.

TRICOMPONENT ATTITUDE MODEL

N IO T NA CO

AFFECT

I COGNIT

ON

152

FISHBEIN’S ATTITUDE TOWARDS OBJECT MODEL n A0 =  biei i =1 A0 = person’s overall attitude towards object bi = strength of belief that the object has attribute i ei = evaluation or intensity of feelings (liking or disliking) towards attribute for that person. Salient attributes - < 9 Limitation – attitude towards object (brand) may vary depending on situation -

attitude towards object & attitude towards behaviour is different

-

Others perceptions not considered

153

FISHBEIN’S ATTITUDE TOWARD BEHAVIOUR n

ATTITUDE (BEHAVIOUR) = A0 =

 biei i =1

Ab = OVERALL ATTITUDE OF INDIVIDUAL TOWARDS PERFORMING SPECIFIC BEHAVIOUR n = NUMBER OF RELEVANT BEHAVIOURAL BELIEFS bi = PERSON’S BELIEF THAT PERFORMING THAT BEHAVIOUR RESULTS IN CONSEQUENCE ei = PERSON’S EVALUATION OF CONSEQUENCE i

154

ATTITUDE MODEL FISHBEIN’S THEORY OF REASONED ACTION MODEL Beliefs that the Behavior leads to Certain outcomes Attitude toward the behavior Evaluation of the outcomes

Intention

Behavior

Beliefs that specific Referents think I Should or should not Perform the behavior

Motivation to comply with the Specific referents

Subjective norm 155

FISHBEIN’S THE REASONED ACTION MODEL

B  BI = W1(AB) + W2 (SN) WHERE B = THE PERSON’S ACTUAL BEHAVIOUR, WHICH IS APPROXIMATELY EQUAL TO BI BI = HIS INTENTION TO BEHAVE IN A SPECIFIC MANNER AB = HIS ATTITUDE TOWARD PERFORMING THAT BEHAVIOR SN = THE SUBJECTIVE NORM REGARDING THIS BEHAVIOR W1 , W2 = WEIGHTS REPRESENTING THE RELATIVE INFLUENCE

156

FISHBEIN’S THE REASONED ACTION MODEL (CONTD…) THE SUBJECTIVE NORM COMPONENT OF THE BEHAVIORAL INTENTIONS MODEL CAN BE EXPRESSED AS FOLLOWS: K

SN =  bi m i i=1

WHERE SN = THE INDIVIDUAL’S SUBJECTIVE NORM REGARDING THE SPECIFIC BEHAVIOR bi = HIS NORMATIVE BELIEF THAT REFERENCE GROUP OR PERSON i THINKS HE SHOULD OR SHOULD NOT PERFORM THE BEHAVIOR m i = HIS MOTIVATION TO COMPLY WITH THE THOUGHTS OF REFERENT i k = THE NUMBER OF RELEVANT REFERENTS

157

ATTITUDE CHANGE - STRATEGIES

Varies for high involvement and low involvement product. Elaboration likelihood model states when consumer’s motivation or ability to assess attitude object is high, he will use central route to processing. Then marketers should use central route to forming & changing attitudes. If not, peripheral route (background, celebrity, drama, humour).

158

NOTE

•

It is much easier to change intensity of attitude than direction.

•

Attitude strength depends on strength of beliefs & degree of involvement.

•

Strong beliefs thru personal experience & information over period of time.

•

High involvement consumers have low latitude of acceptance.

•

It is easier to change beliefs than evaluations because latter is based on consumer’s values, self-concept.

159

ATTITUDE CHANGE - STRATEGIES

For low involvement product • Peripheral cues (background, celebrity, drama, humour) • Link product to involving issue – children’s concentration- bourvita • LINK PRODUCT TO INVOLVING PERSONAL SITUATION - eg. Embarrasment – itch guard/ yellow teeth? • Develop high involvement ads • ASSOCIATE PRODUCT WITH IMPORTANT CAUSE – e.G. P&g sanitary napkins

160

ATTITUDE CHANGE STRATEGIES FOR HIGH INVOLVEMENT PRODUCT ALTERATING COMPONENTS OF BEHAVIOUR INTENTIONS MODEL (REASONED ACTION). a) CHANGE BELIEFS ABOUT CONSEQUENCES OF BEHAVIOUR (bi) E.g. BENEFITS. b) CHANGE EVALUATIONS ABOUT CONSEQUENCES OF BEHAVIOUR (ei). c) ADD EXTRA BENEFIT / ATTRIBUTE (bici). d) CHANGE OVERALL RATING OF BRAND (Ao) - E.g. LARGEST SELLING BRAND. e) CHANGE EXISTING NORMATIVE BELIEFS - E.g. SHOWING PRODUCT BEING APPROVED BY OTHERS. 161

ATTITUDE CHANGE STRATEGIES

FOR HIGH INVOLVEMENT PRODUCT f) CHANGE MOTIVATION TO COMPLY WITH OTHERS - E.g. ADS STRESSING INDIVIDUALITY. g) INTRODUCE NEW NORMATIVE COMPONENTS - E.g. SHOWING SOMEONE ELSE AS IMPORTANT. h) CHANGING BELIEFS ABOUT COMPETITOR’S BRANDS.

162

COMMUNICATION AS A TOOL TO ATTITUDE CHANGE

I.

SOURCE FACTORS -

A)

PERCEIVED CREDIBILITY OF SOURCE( TRUSTWORTHY, KNOWLEDGEABLE, LIKEABLE, STATUS/ PRESTIGE, PHYSICAL TRAITS).

B)

ATTITUDE OF COMMUNICATOR

C)

SIMILARITY WITH AUDIENCE ATTITUDE.

HIGHLY CREDIBLE SOURCE GENERATES CHANGE AS IT BLOCKS COUNTERARGUMENTS. ESPECIALLY IN HIGHLY DISCREPANT MESSAGES

163

COMMUNICATION

II.

Messages factors

A)

Message sidedness – two sided messages prevent strong counterargument generation. More persuasive for better educated audiences.

B)

Message order – most important message (climax, anticlimax or pyramidal) also pro-con or con-pro? Recency or primacy effect – (no conclusive research)

C)

Conclusion drawing – especially in low – involvement products.

D)

Repetition – increases positive feelings provided soft-sell. But beyond point of time, message wearout.

164

COMMUNICATION (CONTD…)

E)

Message appeals – i) moderate fear, use of celebrity, fear of social disapproval, practical steps effective.

Ii) participation

iii) humour- effective only if consumer has positive attitudes.

165

COMMUNICATION (CONTD…)

IV)

EMOTIONAL V/S RATIONAL APPEALS DEPENDS ON UNDERLYING MOTIVES, INVOLVEMENT & TYPE OF PROCESSING (CENTRAL V/S PERIPHERAL)

V)

COMPARATIVE APPEALS – CAN BE PERCEIVED AS OFFENSIVE, LEAD TO MORE COUNTERARGUMENTS (BOOMERING EFFECT). NO EVIDENCE OF EFFECTIVENESS IN BRAND AWARENESS INCREASE. EFFECTIVE IF NOT BY BRAND LEADER.

F)

MESSAGE CODES – VERBAL CODES (USE WORDS HIGHER IN EMOTION). NON-VERBAL CODES (FACIAL EXPESSIONS, GESTURES, POSTURE, DRESS). PARALINGUISTIC CODES – VOICE QUALITY, VOCALIZATIONS.

166

COMMUNICATION (CONTD…)

III) RECEIVER FACTORS :

1)

PERSONALITY TRAITS – SELF-ESTEEM, RICH IMAGERY (FANTASY) ARE MORE PERSUABLE.

2)

MOOD

3)

BELIEF TYPES – CENTRAL BELIEF (FREEDOM) DERIVED BELIEFS, CENTRAL FREE BELIEFS. CENTRAL FREE BELIEFS ARE EASIEST TO CHANGE.

167

CONSUMER DECISION-MAKING MODELS

1. ECONOMIC MAN - RATIONAL DECISIONS. BUT RARELY ENOUGH INFORMATION INVOLVEMENT OR MOTIVATION OR ABILITY. SATISFYCING DECISION RATHER THAN MAXIMIZING. 2. IVE MAN - REFLEXIVE TO MARKETER’S ACTIONS. MARKETERS USE AIDA. 3. COGNITIVE MAN - PROBLEM SOLVER & THINKER, INFORMATION PROCESSING, SUFFICIENT INFORMATION TO ENABLE ADEQUATE DECISION. SHORT CUT DECISION RULES (HEURISTICS) TO PREVENT INFORMATION OVERLOAD. 4. EMOTIONAL MAN - EMOTIONALLY DRIVEN PURCHASES OR IMPULSE. EMOTIONAL OR FEELING ORIENTED AD. 168

STAGES IN DECISION-MAKING

•

NEED RECOGNITION – STIMULI CAN BE INTERNAL OR EXTERNAL

•

PREPURCHASE INFORMATION SEARCH FOR CRITERIA AND BRANDS (DEPENDS ON LEVEL OF INVOLVEMENT).

•

EVALUATION OF ALTERNATIVES

•

PURCHASE DECISION (TRIAL & ADOPTION)

•

POST-PURCHASE BEHAVIOUR

169

CHARACTERISTICS E)

CHARACTERISTICS CHARACTERISTICS OF CONSUMER PROBLEM – SOLVING APPROACHES ROUTINE PROBLEM SOLVING

LIMITED PROBLEM SOLVING

EXTENSIVE PROBLEM SOLVING

PURCHASE INVOLVEMENT LEVEL

LOW

MEDIUM

HIGH

PROBLEM RECOGNITION

AUTOMATIC

SEMIAUTOMATIC

COMPLEX

INFORMATION SEARCH AND EVALUATION

MINIMAL

LIMITED

EXTENSIVE

PURCHASING ORIENTATION

CONVENIENCE

MIXED

SHOPPING

POSTPURCHASE PROCESSES

VERY LIMITED

LIMITED

COMPLEX

HABIT BRAND LOYALTY

INERTIA TO REPURCHASE BRAND SWITCHING IF DISSATISFIED

LOYALTY IF SATISFIED COMPLAINT IF DISSATISFIED

NOTE: SOME PURCHASES OCCUR AS A RESULT OF APPROACHES OTHER THAN A DECISION PROCESS. E.G. GROUP CONFORMITY, SUPERFICIAL BASIS, IMPULSE, INTERLOCKED PURCHASES ETC. 170

PROBLEM RECOGNITION

1)

CAN BE DUE TO INTERNAL OR EXTERNAL STIMULI.

2)

MOTIVATION TO RESOLVE PROBLEM DEPENDS ON 2 FACTORS – MAGNITUDE OF DISCREPANY BETWEEN DESIRED (DS) & ACTUAL STATES (AS) & IMPORTANCE OF PROBLEM.

3)

SOME CONSUMERS & PRODUCTS ARE AS OR DS TYPES. E.G. BULBS V/S MUSIC SYSTEM.

171

THE CONSUMER PROBLEM RECOGNITION PROCESS

FACTORS AFFECTING THE DESIRED STATEFFA

• REFERENCE GROUPS • NOVELTY • THINKING

FACTORS AFFECTING EITHER THE DESIRED OR ACTUAL STATE

• FINANCIAL CONSIDERATIONS • PREVIOUS DECISIONS • FAMILY CHARACTERISTICS

FACTORS USUALLY AFFECTING THE ACTUAL STATE

• ASSORTMENT DEFICIENCY • AROUSAL OF NEEDS • POSTPURCHASE EVALUATION

• CULTURE / SOCIAL CLASS • INDIVIDUAL DEVELOPMENT • CURRENT SITUATION • MARKETING EFFORTS

172

TYPES OF PROBLEM RECOGNITION

TYPES OF PROBLEM RECOGNITION IMMEDIACY OF SOLUTION EXPECTANCY OF PROBLEM OCCURRENCE OF PROBLEM EXPECTED OCCURRENCE OF PROBLEM UNEXPECTED

IMMEDIATE SOLUTION REQUIRED

IMMEDIATE SOLUTION NOT REQUIRED

ROUTINE

PLANNING EMERGENCY

EVOLVING

173

MARKETING IMPLICATIONS OF PROBLEM RECOGNITION

ACTIVATING PROBLEM RECOGNITIONTHROUGH INFLUENCING DESIRED STATE, PERCEPTIONS OF ACTUAL STATE, INFLUENCING TIMING OF PROBLEM RECOGNITION.

174

INFORMATION SEARCH PROCESS

THE TERM “SEARCH” REFERS TO MENTAL AS WELL AS PHYSICAL INFORMATION – SEEKING AND PROCESSING ACTIVITIES WHICH ONE ENGAGES IN TO FACILITATE DECISION MAKING REGARDING SOME GOAL – OBJECT IN THE MARKETPLACE. CONSEQUENTLY, SEARCH MAY BE UNDERTAKEN IN ORDER TO FIND OUT ABOUT PRODUCTS, PRICES, STORES, AND SO ON, RELATED TO THE PRODUCT. SEARCH MAY BE CATEGORIZED AS PREPURCHASE OR ONGOING (BASED ON THE PURPOSE OF SEARCH) AND AS INTERNAL OR EXTERNAL (BASED ON ITS SOURCE).

THE AMOUNT OF EXTERNAL SEARCH VARIES ACROSS INDIVIDUALS & DIFFERENT SITUATIONS & DEPENDS ALSO ON COST/ BENEFIT.

175

DETERMINANTS OF EXTENTOF EXTERNAL INFORMAL SEARCH

1)

MARKET ENVIRONMENT

2)

SITUATIONAL VARIABLES

3)

POTENTIAL PAYOFF / PRODUCT IMPORTANCE

4)

KNOWLEDGE & EXPERIENCE

5)

RETAIL VARIABLES

6)

INDIVIDUAL DIFFERENCES 176

INFORMATION SEARCH SOURCES

PERSONAL SOURCES – FAMILY, FRIENDS, NEIGHBOURS, ACQUAINTANCES COMMERCIAL – ADVERTISING, SALESPERSONS, DEALERS, PACKAGING, DISPLAYS. PUBLIC SOURCES – PUBLICITY, CONSUMER RATING ORGANISATIONS, REVIEWS. EXPERIENTIAL SOURCES – HANDLING, EXAMING, USING PRODUCT.

COMMERCIAL SOURCE – INFORMATION FUNCTION PERSONAL SOURCE – LEGITIMITING AND / OR EVALUATION FUNCTION.

177

PERCEIVED RISK

1.

FUNCTIONAL

2.

PHYSICAL

3.

FINANCIAL

4.

SOCIAL

5.

PSYCHOLOGICAL

6.

TIME

178

HOW CONSUMERS HANDLE RISK

1.

INFORMATION SEARCH

2.

BRAND LOYALTY

3.

WELL-KNOWN BRAND

4.

ENDORSED BRAND

5.

EXTRINSIC CUES – EXPENSIVE

6.

SEEKING ASSURANCE THROUGH WARRANTIES / GUARANTEES

179

RESULT OF SEARCH & EVALUATION

TOTAL SET

AWARENESS SET

CONSIDERATION SET

CHOICE SET

DECISION

180

EVALUATION OF ALTERNATIVES

•

TWO BROAD APPROACHES – BRAND PROCESSING & ATTRIBUTE PROCESSING. GENERALLY CHOICE BY PROCESSING ATTRIBUTES(A) STRATEGY IN EARLY STAGES OF DECISION PROCESS & B IN LATER STAGES.

181

EVALUATION OF ALTERNATIVES

1.

CONSUMER CONSIDERS VARIOUS PRODUCT ATTRIBUTES

2.

ASSIGNS IMPORTANCE WEIGHTS TO ATTRIBUTES

3.

HAS A SET OF BRAND BELIEFS ABOUT WHERE EACH BRAND STANDS ON EACH ATTRIBUTE (BRAND IMAGE)

4.

CONSUMER ARRIVES AT ATTITUDES (JUDGEMENT, PREFERENCES) TOWARDS BRAND ALTERNATIVES THROUGH SOME EVALUATION PROCEDURE.

182

SOME ALTERNATIVE DECISION PROCESSES USED BY CONSUMERS TO EVALUATE BRANDS •

COMPENSATORY MODELS

A. EXPECTANCY VALUE MODEL B. IDEAL BRAND MODEL •

NON- COMPENSATORY MODELS

A. CONJUNCTIVE MODEL B. DISJUNCTIVE MODEL C. LEXICOGRAPHIC MODEL D. DETERMINANCE MODEL

183

MARKETING IMPLICATIONS

1.

DETERMINING SOURCES OF INFORMATION

2.

DETERMINING SOURCE INFLUENCE

3.

INFLUENCING CONSUMER’S EVOKED SET

4.

DETERMINING INFLUENCING EVALUATIVE CRITERIA

5.

DETERMINING CONSUMER EVALUATIONS OF BRAND

6.

DETERMINING CONSUMERS’ CUE USAGE& ALTERING CUE CHARACTERISTICS.E.G. BANK SECRECY ON BASIS OF PHYSICAL APPEARANCE OF BUILDING

184

SITUATIONAL NATURE OF CONSUMER DECISIONS

1.

PHYSICAL SURROUNDINGS

2.

SOCIAL SURROUNDINGS

3.

TEMPORAL PERSPECTIVE(TIME)

4.

TASK DEFINITION

5.

ANTECEDENT STATES – MOMENTARY MOODS, CONDITIONS STRONG BRAND LOYALTY & HIGH PRODUCT INVOLVEMENT CONSUMER RESULTS IN WEAKER SITUATIONAL INFLUENCE. 185

PURCHASE DECISION

AFFECTED BY •

PERCEIVED RISK

•

ATTITUDE OF OTHERS

•

UNANTICIPATED SITUATIONAL FACTORS

186

THE VULNERABILITY MATRIX ATTITUDE TOWARD THIS BRAND

BUY IT REGULARLY

“LIKE” IT

“INDIFFEENT” TO IT AND OTHERS

“LOYAL” TO IT

CUSTOMERS OF THIS BRAND WHO ARE VULNERABLE TO COMPETITORS 1

PURCHASE PATTERN WITH RESPECT TO THIS BRAND

BUY IT OCCASIONALLY

2

3

CUSTOMERS OF THIS BRAND WHO ARE VULNERABLE TO COMPETITORS 4

DO NOT BUY IT

“DISLIKE” IT

5

6

CUSTOMERS OF THIS BRAND WHO ARE VULNERABLE TO COMPETITORS 7

8

UNLIKELY TARGET FOR THIS BRAND 9

187

PURCHASE

1.

PROVIDING INFORMATION & ASSISTANCE – E.G. DEMONSTRATION

2.

UNDERSTANDING ’S CONSUMPTION SYSTEM

3.

WARRANTIES – POWERFUL MARKETING TOOL

4.

RELATED PRODUCTS & SERVICES – BROCHURE

•

POST-PURCHASE BEHAVIOUR POST- PURCHASE SATISFACTION HIGHER AMONG ELDER, LESS EDUCATED, MEN, MORE CONFIDENT & COMPETENT DECISION – MAKERS.

188