CONSUMER BEHAVIOR

INTRODUCTION
CB is defined as decision process and physical activity engaged in when
evaluating, acquiring, using, or disposing of products and services.

CB refers to behavior that consumers display in searching for or chasing,

using, evaluating and disposing of products and services which they expect will
satisfy their needs.
CB are the acts, processes and social relationships exhibited by individuals,
groups and organizations in the obtainment, use of, and consequent experience
with the products and services.
Analysis:
Of these definitions give the following observations on CB:
1. CB deals with the following questions
a. Why do people buy? What they buy?
b. Why do they not buy? What they do not buy?
c. Where do they buy?
d. What factors influence their decision to buy?
e. What is the actual decision making process?
2. Consumers buy to fulfill their unfulfilled needs.
3. Buying patterns are complex because consumer is diversely motivated and
complicated.
4. Buyer has many alternative choices of spending.
5. CB affects marketing and in turn gets affected by marketing.
6. CB is dynamic because today purchases are different from tomorrows
purchases.
7. Study of CB requires multi-disciplinary approach.
8. CB at times baffling (puzzling, amazed).
9. Consumers can be categorized according to what they buy
a.
Habit determined group of loyal customers.
b.
Cognitive group of consumers who are very sensitive to rational claims
and are conditionally loyal.
c.Price-cognitive group who are very sensitive to price changes.
d.
Impulse group consumers (unplanned) who indulge in unplanned
purchases.
e.
Emotional group of consumers who are sensitive to the emotional
factors in the buying process.
f. Group of consumers who are not yet stabilized in respect of psychological
dimensions.
10. Likewise products can be categorized according to CB
(i) Prestige products
(ii) Maturity products
(iii)
Status
products
(iv) Anxiety products
(v) Hedonic products
(vi)
Functional
products
(vii) Unisex products
(viii) Bisexual clear demarcation
11. For prospective buyers there is no distinction between competing products
and substitute products and he/she sees only the degree of substitutability.
12. Products are not coterminous with the product attributes.
13. CB and its purchase response is a function of drive, motivation, perception,
learning, avoidance, rewards and reinforcements, and approach behavior.

SCOPE OF CB
To define the scope of CB, it is important to set parameters or framework
within which we can study CB. The following chart gives such framework.

Refer to Loudon and Bitta; page no.22

The framework consists of three parts. First part is represented by decision
process which itself consists of a series of steps namely, problem recognition,
information search and evaluation, purchasing process, post purchase behavior. All
these steps are linked with feedback loop.
The second part consists of individual determinants of CB: (a) Motivation and
involvement,
(b) Personality and self-concept, (c) Learning and memory, (d) Attitudes, and (e)
Information processing.
The third part consists of external environment which includes: (a) Cultural,
(b) Sub-cultural,
(c) Social class, (d) Family, (f) Personal, and (g) Other influences.

APPLICATION AREAS OF CB
CB has a number of applications in the area of marketing.
1. Analyzing Market Opportunity
CB helps to identify the unfulfilled wants and needs of the consumers. This is
done by examining trends in income class, consumer lifestyles, and
emerging influences, e.g., trend towards increasing number of working wives
and greater emphasis on leisure and convenience have led to the invention
of household gadgets like washing machine, vacuum cleaner, micro-oven,
etc. Similarly, the mosquito repellants are marketed in response to the felt
need of the consumers.
2. Selecting the Target Market
CB trends reveal distinct groups of consumers with distinct needs and wants.
Marketer is required to study how these groups behave and how they decide
to buy in order to successfully market products and services, e.g., the
identification of a group of consumers who would like to use shampoo on
special occasion lead to the invention of shampoos in small sachets.
3. Determining the Marketing Mix
CB is extremely useful in determining the right type of marketing mix
consisting of product, price, distribution and promotion.
a. Product: A marketer needs to answer the following puzzling questions or
issues
He must decide the size, shape and attributes of the product.
He must figure out whether it is better to have one single product or
a number of models to choose from.
Does the product require any special kind of packaging?
Does it mean any guarantee or after-sales-service?
Two classical examples can be sighted in this regard:
Magi noodles was first launched with common flavor such as masalas.
After its success
other flavors were introduced like garlic in order to satisfy regional needs of
consumers. Subsequently, it introduced exotic flavors like prowls.
CB also guides marketers in packaging decisions. Pan Parag was
introduced in the beginning in tins. But the study of CB revealed that people
wanted smaller packing. Therefore, individual pouches were introduced.

Further study of CB on Pan Parag also revealed that the pan masala would
spill out of the pouch into packets. To overcome this problem, Pan Parag was
launched pouch with a zip.
b. Price: A marketer needs to answer the following questions
What price should he charge for the product?
Should it be higher or lower?
Should the price be marked on the product or should it be left to
the discretion of the retailers charge what he can from the
customers?
Should any price discounts be attached to the offer?
What is the consumer perception about low price or high price?
Is the lower price associated with the lower quality and higher price
associated with the high quality?
Would a lower price stimulate the sale?
A marketer can easily seek the answers for the above questions by
studying the CB.
c. Distribution: A marketer needs to find answers for the following
questions
What type of retail outlets should sell the products?
Should it be sold to all retail outlets or through a selected few?
Should it be sold to existing outlets which also sell competing
brands or should it be sold through exclusive retail outlets?
How critical is the location of the retail outlets from the consumers
point of view?
The answers to the above questions can only be found through
understanding CB. The rise and fall of Eureka Forbes (personal selling efforts)
Co. selling vacuum cleaners is a classic example to show how distribution
can be streamlined through the study of CB.
d. Promotion: All marketers are deeply covered with most effective
methods of promotion which make their products stand out among the
clutter of so many other brands. Media habits of the consumers vary
considerably. Marketers focus more on these habits in order to device new
communication programs, or modify or revitalize the existing communication
strategies.
4. Social Marketing Area and Non-profit Marketing Area
The knowledge of CB is also useful in the marketing of non-profit or social or
governmental services of institutions such as hospitals, voluntary agencies,
law enforcement agencies, and tax collection agencies.

BUYING MOTIVES
Buying motives are defined as all the impulses, desires, and considerations
of the buyer which induce him or her purchase of a given product. The buying
motives explain why the certain products are purchased and what motives propel
him/her to purchase products. Buying motives are classified as;

a.
b.
c.
d.

Product motives
Patronage motives
(a) Irrational and (b) Rational motives
(i) Emotional Patronage and (ii) Rational Patronage motives
There is also one more classification of buying motives, i.e,
1. Socio-psychological product motives
2. Operational product motives
1). Product Motives:Here the focus is on product itself, because a product is a bundle of
satisfactions. Why does an individual buy a specific brand? And why does he
switch from one brand to another? These questions can be answered by
looking at the product motives.
2). Patronage Motives:These motives backup impulses, desires, and considerations, which are used
to prefer a particular brand or a store.
3). Emotional Product Motives:These motives are impulses which persuade a consumer to buy a certain
product without evaluating the positive and negative points of the brand. In
other words, reasoning and logical analysis is not found in these motives.
These motives appeal to the buyers pride or sense of ego or his urge to
imitate others or his desire to be distinct.
4). Rational Product Motives:These motives involves logical analysis of the intended purchase and the
buyer tends to consider a variety of factors which include cost, availability,
suitability, quality, dependability, and above all justification for buying the
product. In fact, justification to the purchase is arousen for the purchase of
the product.
5). Emotional Patronage Motives:These motives are significantly impulsive in character. All the rational factors
of making a purchase are put behind and driver seat is occupied by emotions
which patronage a certain specified brand or a store or a salesman or a
manufacturer.
6). Rational Patronage Motives:These are the motives which include to somewhat the rationality in making a
purchase and this is called branded rationality.
7). Socio-Psychological Product Motives:These motives compel to buy us to attach or tag socio-psychological
significance to the purchase event which, in turn gives in the satisfaction out
of the purchase. These motives carry prestige dimensions.
8). Operational Product Motives:These motives have utility dimensions which, enables the buyer to get
satisfaction out of the purchases.

TYPES OF BUYING DECISION BEHAVIOR

Consumer decision making varies with the type of buying decision, e.g.,
consumer buying decision behavior in the case of toothpaste tube is quite different
from that of expensive car. The types of buying decision behavior are projected in
the following chart.
High

Low Involvement

Involvement
Complex Buying
Behavior

Variety Seeking
Buying Behavior

Significant
differences among
brands

Dissonance
Reducing Buying
Behavior

Habitual Buying
Behavior

Few differences
among brands

1. Complex Buying Behavior:Consumers undertake complex buying behavior when they are highly
involved in purchase and perceive significant differences among the brands. This
behavior is exhibited in respect of products which are expensive, risky, purchased
infrequently, and high self-expressive. In this behavior, the buyer will pass through
a learning process which consists of three steps.
a). Developing believes about the product.
b). Develop an attitude towards the product.
c). Making a thoughtful purchase choice.
The marketers of high involvement products must focus more on information
gathering and evaluation behavior of consumers. The marketers should also help
buyers to learn about product class attributes and their relative importance. They
should also differentiate their brands features and they should also motivate the
salesmen.
2. Dissonance Reducing Buying Behavior:This behavior occurs when consumers are highly involved in purchase of
expensive, infrequent or risk products and they dont see the difference among the
brands. Consumers shop around to learn what is available and buy relatively
quickly. They may respond to a good price or purchase on convenience. After
purchase, they might experience dissonance or discomfort when they notice
certain disadvantages of the purchased brand or when they hear favorable things
about the brand not purchased by them. To counter the dissonance, the marketer
provides evidence and support to help the consumers feel good about their brand
choice through after sales communication which include primarily reassurance
advertisement.
3. Habitual Buying Behavior:This occurs under low involvement and at absence of significant brand
differences, e.g., purchase of salt, match box, etc. These products are bought
frequently and low cost. In this case, consumers do not pass through the usual
belief attitude behavior sequence. They do not search for the information about
the brand extensively. They do not make desire about the brand choice. They are
led by brand conviction and they are not highly committed to any brands. In the
case of these products, marketer releases good communication material with
visual symbols and imagery, e.g., Nestls Sunrise Coffee.
4. Variety Seeking Buying Behavior:This occurs in situations with the following two characteristics:
Low consumer involvement
Presence of significant perceived brand preference.

Consumers executing this behavior do a lot of brand switching and brand

switching occurs for the sake of variety rather than because of dissatisfaction.
Examples are packaged food items.

CONSUMER DECISION MAKING

The following is a simple model of consumer decision making
From marketing effort
1. Product
2. Promotion
3. Price
4. Channel of distribution

Socio-cultural environment
1. Family
2. Informal sources
3. Other non-commercial sources
4. Social class
5. Sub-culture and culture

Need Recognition

Psychological field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes

Pre-Purchase Search

Evaluation of Alternatives

Consumer
Decision Making
PROCESS

Experience

Purchase
1. Trail
2. Repeat

Post-Purchase Evaluation

External Influences
INPUT

Post Decision
Behavior
OUTPUT
1.
2.
3.

Satisfaction
Loyalty
Dissonance

This model reflects the cognitive consumer (problem solving consumer) and
emotional consumer. The model has three major components.
(a) Input
(b) Process (c) Output
(a). INPUT:- The input component of consumer decision making draws external
influences as well as internal influences. External influences come from sociocultural environment and internal influences come from firms marketing
efforts.
(b). PROCESS:- The process component of the model is concerned with how
consumers make decisions. Consumers make decisions in the scenario set by
the psychological field consisting of consumers motivation, learning,
perception, personality, and attitudes. The process of consumer decision
making breaks down into sequential steps namely, needs recognition, pre-

purchase search, and evaluation of alternatives. By making actual decisions,

the consumers follow certain rules which are called Choice Heuristics, based
largely on their past experiences.
(c). OUTPUT:The output component of the consumer decision making is
concerned with the purchase behavior and post purchase evaluation. The
purchase behavior consist of trail purchase and repeat purchase and postpurchase evaluation carries with it three dimensions namely, Loyalty,
Satisfaction and Dissonance.

NEED RECOGNITION/PROBLEM RECOGNITION

This is the very first stage of consumer decision making, because a
consumer buys the products and services in order to fulfill his/her unfulfilled needs.
This stage is very important for several reasons.
1. It provides initial clue why a buyer buys what he she intends to.
2. It provides a definite direction to the consumers subsequent purchase
behavior stages like information search and evaluation of alternatives.
3. Finally, it provides the marketers with an immense scope for using their
influences in how the buyers may recognize their needs.
The following chart gives the process and factors of problem recognition.
Existing Consumer
Position

Desired Consumer
Position

Contributed
by

Contributed
by

Perceived gap or Discrepancy

Stock out

Dissatisfaction
with the present
stock

Decrease in
fund

Marketing
Efforts

Tension
Problem Recognition

Recognition of
new needs

Generation of
new wants

Availability of
new products

Effect of
synergy product

New marketing
efforts

This chart highlights that a problem is recognized because the presence of

the perceived gap or discrepancy between the existing consumer position and the
desired consumer position for a given product or service. The existing consumer
position reflects how a consumer feels presently about his consumption or nonconsumption of a given product. The desired consumer position refers to his

expectations and anticipations from the consumption or non-consumption of a

given product or service.
In most cases, this gap occurs in a natural fashion. There are set of factors
which can cause the existing consumer position. The most important of them are
stock out, present dissatisfaction with the present stock, decrease or increase in
the funds, or finally, due to marketing efforts of the company in the form of
advertisements and promotions.
The desired consumer position is by and large contributed by consumers
recognition of needs, generation of new wants, and availability of new products
and finally new marketing efforts of the company in the form of new product
launches which act as stimuli to consumers.
In the process of problem recognition, the threshold level is very important.
This refers to the minimum amount of tension or energy or intensity which is
necessary for the feeling to occur. For example, the marketing efforts of the
company providing easy repayment facility and installment scheme for durable
and semi-durable products lead to threshold level in problem recognition.

INFORMATION SEARCH
The search for information commences the moment consumers recognize
their need for product or service. Information search is deliberate and long drawn
for most consumer durables. For example, the need to buy a micro-oven,
refrigerator search process is purposive to gain appropriate knowledge about the
products attributes, brands, the stores from where to purchase, etc.
How of Information Search:- The following chart gives the flow of information
search.
Problem/Need
Recognition

Marketing mix elements

& other communication
elements

External Search

Information Search

Exposure

Internal Search

Attention

Interpretation

Acceptance

Retention

Memory

The chart clearly makes a case for information search by the consumers.
From the above, chart we also deduce the factors that are likely to increase the
information search which also called pre-purchase search. The factors are grouped
as below.
Product Factors:(a). Long term purchase time in respect of infrequently used products.
(b). Frequent changes in the product style.
(c). Frequent price changes.
(d). Volume purchasing.
(e). High price.
(f).Many alternative brands.
(g). Much variation in product features.
Situational Factors:(a). Experience; (i) First time purchase.
(ii) No past experience because the product is new.
(iii) Unsatisfactory past performance of the product.
(b). Social acceptability;
(i) Purchase is for gift.
(ii) Product is socially visible.
Personal Factors:(a). Demographic Characteristics; (i) Well educated.
(ii)
High income.
(iii) White collar occupation.
(iv) Under 35 years of age.
(b). Personality;
(i) Low dogmatic (open mindedness).
(ii)
Low risk perceiver.
(iii) High product involvement.
(iv) Enjoyment of shopping.

Types of Internal Search:In order to satisfy recognized needs, consumers resort to both external and
internal search. Internal search for information will be sufficient under the following
two circumstances.
1. Where the consumer has a strong favorable experience.
2. Where the consumer has strong brand preference.
However, for impulsive purchases, both internal and external search is
essential. Internal information search is highly essential in the following two levels
of consumer decision making.
1. Routinized Response Behavior. In this behavior consumers has some
experience with the product category and they possess a set of criteria for
evaluating the brand choices. Therefore, internal search is sufficient.
2. Limited Problem Solving Behavior. In this behavior the consumers already
possess the criteria for evaluating the brand choices but they have not yet fully
established brand preferences. Therefore, they require internal search for fine
tuning the brand choice.
External search is meditated, planned, and rational pursuit of information
and external search is inevitable in high involvement purchase decisions which are
characterized by extensive problem solving behavior, which includes the following
characteristics.

1. The consumers do not possess adequate information about the preferred

brands.
2. They do not possess good criteria for evaluating the brand choice.
3. The consumers are highly involved in consumer decision making which
extensive process.

What are the Determinants of External Search?

The following chart gives the determinants of external search

Categories

Factors

Overall

1. Higher perceived cost of search.

2. Higher perceived benefits.
Psychologica 1. Higher the involvement in purchase.
l
2. Greater the relevant past experience.
3. Higher the satisfaction with existing
brands.
4. Higher the liking for shopping.
Situational
1. Higher the time available.
Factors
2. Higher the Social Pressures (friends,
relatives, etc.) for a particular choice.
3. Greater the physical limitations &
mobility.
4. Lower the effectiveness of personal
selling.
Information
1. Higher the ability to process purchase
Processing
related information.
2. Lower the confidence in dealing with
information.
3. Greater the number of evaluative criteria
attributes.

Level of Information
Search
Higher
Lower
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How Much Information Load?

Every marketer tries to provide the best amount of information to his
customers for arriving at optimum purchase decision. This thinking on the part of
the marketer gave birth to a concept called information overload. This concept is a
caution to the marketer against the popular assumption that if some information is
good, then more information is better. Therefore, this concept suggests that
marketer should avoid overloading the information to the consumers. Because the
extra information from the information overload will lead to confusion and poor
decision making to purchase. Besides, information overload leads to less
satisfaction and affects adversely the consumers ability to select the brand.
The question is how much information load to be given to the consumers?
The answer to this question lies in understanding the sources of information to the

consumers. A consumer has access to a variety of sources of information. The

following are the most important sources of information to the consumers.
Impersonal Sources:(a) Advertising
(b) In-store Promotion
(c) Information on distribution support
(d) Package Information
(e) Sales Personnel
(f) Samples and demonstrations.
Personal Sources:(a) Friends
(b) Neighbors
(c) Relatives
(d) Colleagues.
Some of these sources of information are controlled by marketers and some
of them are not within the zone of marketers control. Some of these sources are
face to face, whereas, others are non-personal in nature. The impersonal sources
of information as outlined above are very crucial for the consumers because of the
following.
1. Advertising is major source of information to the consumers in spite of over
exposure and crowding of ad messages. But the receptivity to advertising
pertaining to the desired product goes up considerably.
2. In-store material includes display prices, brochures, danglers and technical
report summaries. The in-store material is useful for getting information on soft
item purchases and complex purchases.
3. Information on availability of dealers and distribution support and service is
given sometimes exclusively or is given as a part of ad. Yellow Pages directory is
a very good example of this.
4. Package information is given mainly to inform the customers on the product
ingredients and the mode of using it. But marketers can use packaging color
and design to convey a favorable brand personality.
5. Sales personnel constitute the rich source of information for consumer durables
like TV, refrigerator, electronics appliances, clothing and furniture.
6. Samples and demonstrations are the most effective sources of information to
the consumers. They are custom built; they are standardized, and can be used
on mass media. They are also risk free source of information and may create a
favorable impact on the consumers.

How Does a Marketer Influence the Information Search?

Broadly the marketer can influence the search process of the consumers
through the areas of:
(1) Advertising
(2) Product (3) Packaging
(4) Pricing
Advertising:- Ads poses a complex problem to marketers, because the consumers
have a tendency of a selective reception and perception. Besides audience-erosion
occurs in the receptivity of advertisements. Further, interpretation of the ad stimuli
may convey a picture much different than what the marketer has intended. This
calls for continues monitoring of ads effectiveness.
Product:- Marketer can influence the search process by varying the contents of the
products from time to time. Changing product contents prevents boredom among
consumers, conveys an image of moving with the time, and also induces favorable
preference changes among the consumers.
Packaging:- Packaging design is also changed periodically by the marketers
through the introduction of new, improved, better or power packed. Changes
in packaging, design and color can stimulate the consumers research process and
push information process through the threshold level of attention.
Pricing:- In pricing, the marketer convey a desired price-quality perception among
the buyers by effectively inducing pricing parameters and combinations.

Consumers often look at the price tags to acquire information about the quality
variations and perceptions and develop their own level of confidence.

Risk Perceived by Consumers When Making Purchase Decisions

Consumers often make decisions regarding what products to buy and where
to buy and they face some degree of risk when making a purchase decision,
because, the outcomes of these decisions are uncertain.
What is perceived risk? Perceived risk is the uncertainty that consumers face
when they can not foresee the consequences of their purchase decisions. The
perceived risk differs from product to product and is also influenced by the amount
of money involved in the purchase. For example, selecting toothpaste or hair oil is
perceived as risky when compared to selecting a new TV set. Similarly, consumers
perceive great risk when they are required to cough up large amounts of money in
the purchase. The perceived risk may also differ from consumer to consumer.
Types of Perceived Risk
1). Functional Risk i.e. the risk that product will not perform as expected.
2). Physical Risk -- i.e. the risk to self and others that the product may pose.
3). Financial Risk i.e. the risk that the product will not be worth its cost.
4). Social Risk i.e. the risk that product choice may result in social
embarrassment.
5). Psychological Risk i.e. the risk that a product choice will damage the
consumers ego.
6). Time Risk i.e. the risk that time is wasted by the consumers in product search
if the product does not perform well.
How the Consumers Handle Risk?
The following are the strategies which the consumers adopt to handle risks
associated with the purchase decisions. These strategies are called risk reduction
strategies.
1. Information Search:- Consumers seek information about the product and
product class through word of mouth communication from friends, family
members, colleagues, etc., from sales people and from mass media
communication such as TV, newspapers, magazines, etc. This strategy is
straight forward and logical, because, the consumers can get the adequate
information about the product choice, can predict the consequences of
purchase decisions and can lower the perceived risks.
2. Brand Loyalty:- Consumers can avoid the risks of purchase decisions by
insisting on their preferred brand. Consumers can trust the well known brand
which they were satisfied in the past.
3. Buying a Well Known Brand:- Consumers can lower the risk of purchase
decisions by trusting the well known brand name. Brands which have favorable
image in the market are usually favored by the consumers.
4. Buying from a Reputed Dealer or Store:- Dealer image and assurance can also
enable the consumers to lower the risks of purchase decisions, because,
dealers often return privileges in case product does not perform well.
5. Buying the Most Expensive Brand:- Buying the most expensive brand or model
is a good strategy to follow when consumers are likely to make inappropriate
decisions.
6. Seeking Reassurance from the Company:- Consumers can reduce the risks of
purchase decisions through money back guarantees, warranties, and prepurchase trials and also insisting on sampling.

CONSUMER ATTITUDES
The awareness of consumer attitudes is very crucial in understanding the
nature of CB. Consumer attitudes represent a clue to marketer with reference to
consumer evaluation of brand choice. Through the understanding of consumer
attitudes marketer can predict future purchases and analyze the reasons for
purchase or no purchase and also redesign marketing mix elements.
A consumer attitude is defined as a learned pre-disposition to respond to a
consistent favorable or unfavorable manner in respect of product or service.
The schematic conception of consumer attitudes is given below.
Independent
Variables

Intervening
Variables

Affect

Stimuli

Attitude

(individuals,
situations, social
issues, social groups
& other objects)

Cognition

Behavior

Statements & Actions

of feelings, love,
affection & preference

Statements &
Actions of
knowledge & beliefs

Statements & Actions

concerning behavior

This chart gives the following benchmarks of consumer attitudes.

(a). The attitude is always related and targeted to the object. The object may be
product or product category, brand, or service, or product views, or price, or ad,
or dealer.
(b). Attitudes are a learned pre-disposition, i.e., attitudes which are relevant to
the purchase behavior are formed as a result of direct experience with the
product, information from others and exposure to mass media.
(c). Attitudes at consistency, i.e., consumer attitudes are relatively consistent
with the behavior for a reasonable length of time. However, attitudes are not
permanent because they do change.
(d). Attitudes occur within a change, i.e., events or circumstances within a
particular point of time influence the relationship between an attitude and
behavior.
Functions of Consumer Attitudes:1). Utilitarian Function Consumer attitude fulfill a utilitarian function because
they guide the consumers in achieving their desired needs. For example, if TV
buyers consider technology and after sales service as two most important
criteria in TV selection. Then the buyer will be attracted by the ad messages
which focus on these two criteria.

2). Ego-Defensive Function This function protects the consumers against the
internal and external anxieties and environment. Fro example, consumers who
are egotists will have a favorable attitude towards expensive jewellary, wrist
watches and other prestige items. Other consumers may prefer low priced
products.
3). Value-Expressive Function Value expressive attitudes maintain self identity
among consumers and lead them to expression and determination.
Models of Consumer Attitudes:TRI-COMPONENT ATTITUDE MODEL
According to this model, an attitude consists of 3 major components;
Affective component, Cognitive component, and Conation component.

Conation
Affection
Cognition

The cognitive component of consumer consists of consumer cognitions, i.e.,

knowledge and perceptions which are acquired by the consumers through direct
exposure of product or service and also through related information from various
sources. These perceptions and knowledge together constitute beliefs of
consumers, i.e., consumers believe that product possesses various attributes and
specific behavior will lead to specific out comes.
The affective component of an attitude represents consumers emotions and
feelings about a particular brand. These emotions and feelings of consumers
towards a particular brand may reflect happiness, sadness, shame disgust, anger,
distress, guilt, surprise, etc.
The conation component is concerned with the likelihood or tendency that a
consumer will undertake a specific action in a particular way with regard to a
particular brand. This component is also in expression of the consumers intention
to buy. Intention to buy is fuel to purchase behavior.
MULTI-ATTITUDE MODELS
These models explain how consumers combine their beliefs about product
attributes to form their attitudes towards brand alternatives. These models assume
that the brand which receives the best attitude will be chosen and vice versa.
These models also assume that consumers will go through the standard hierarchy
of effects sequence, i.e., awareness leading to interest, interest leading to desire
and desire leading to action (AIDA). These models are also called ATO (Attitude
Towards Objects) models. Among so many multi-attitude models, the following 3
models developed by Martin Fishbein, are highly significant.
1. ATO Model This model seeks information on the importance of brand
attributes, beliefs about the presence or absence of these attributes in the
brand alternatives and their combined effect on brand choice.
Algebraically, the model is expressed as below.

Ao = ni=1Biai
Where Ao = overall attitude towards object O
Bi = belief whether or not a object O has a particular attribute
ai = importance of rating of attributes
n = number of beliefs.
2. Behavior Intentions Model this is an extension of ATO model. This
model does not attempt to predict behavior but enables us to predict the
behavior intentions. Algebraically this model is stated as below.
B = B-I = W1 (AB) + W2 (SN)
Where B = behavior
B-I = behavior intention
AB = attitude towards performing the behavior
SN = subjective norm
W1 & W2 = empirically determined weights through regression analysis.
AB & SN are obtained directly from consumers through questionnaire. A B is
obtained from following equation.
AB = ni=1 biei
Where AB = attitude towards performing the behavior
bi = consumer belief that performing the behavior will result in consequence i
ei = consumers evaluation of consequences
n = number of beliefs
SN can be obtained from the following equation
SN = nj=1 NBjMCj
Where NBj = normative belief that a reference group person j thinks that the
consumer should or should not perform the behavior
MCj = the motivation to comply with influence of reference group person j
n = number of reference group persons.
Many persons feel that B-I model is superior to ATO. But B-I model involves lot
of exercise which is not simple.
3. Reasoned Action Model this model represents a comprehensive
integration of attitude components into a structure that is designed to
lead to better explanation and prediction of CB. The following chart gives
the theory of reasoned action on which this model is based.

Beliefs that the behavior

leads to certain outcomes
Attitude towards
the behavior
Evaluation of outcomes
Intention
Beliefs that specific
referents think I should or
should not perform the
behavior
Subjective norm
Motivation to comply with
the specific referents

Behavior

4. Trying To Consumer Model This model accommodates some types

of consumers who always make trail purchase before they adopt the
product. The theory on which this model is based is depicted below.

biei

Attitude towards
success

Frequency of
past trying

Recency of
past trying

Expectation of
success

bjej

Attitude towards
failure
Expectation of
failure

bkek

Attitude
towards trying

Intention to
try

Trying

Social norms
towards trying

Attitude towards
process

This model is the re-cast version of the Fishbeins model. This theory gives the
following components of consumer attitudes.
1. Attitude towards success and expectations of success.
2. Attitude towards failure and expectations of failure.
3. Attitude towards process. The process means the consumer is trying to do
something regardless of outcome of the act of buying.
5. Attitude Towards the Advertisement Model the purpose of this
model is to understand the impact advertisement on the consumer. The
model also explains the
frequency
of past purchase audits impacts on
Exposure
to advertisement
consumer attitudes. The following chart gives the element of this model.

Judgments about
the advertisement
(Cognition)

Feelings from the

advertisement

Beliefs about
the brand

Attitude towards
the advertisement
Attitude towards the brand

The chart explains the following three things.

The consumer forms various feelings and judgments as a result of
advertisement exposure.

The feelings and judgments affect the consumers attitudes towards the
advertisement and also beliefs bring the brand that is advertised.
The consumer attitude towards the advertisement and beliefs about the
brand ultimately influences the brand choice.

FORMATION OF CONSUMER ATTITUDES

Attitude formation means a shift from having no attitude towards the product
to having some attitude towards the product. This shift is due to learning. The
following are the types of learning.
Classical Conditioning:Consumers often purchase a new product that are
associated with a favorably viewed brand name. This favorable attitude towards
the brand name is the result of repeated satisfaction with other brands of the same
company. Marketers use the strategy of celebrity advertisement towards those
consumers who are subjected to classical conditioning.
Instrumental Conditioning:Some items attitudes follow the purchase and
consumption of a product. The marketers use the strategy of trial purchase offer to
those consumers who are subjected to instrumental conditioning.
Cognitive Learning:- Sometimes consumers seek information about he product in
order to satisfy needs or to solve a problem. Therefore, they are likely to form
attitudes about the products on the basis of information search. The marketers use
the strategy of giving full disclosure of information to these consumers.
Attitude formation takes place through the following routes.
(a). Direct and past experience.
(b). Influence of family and friends.
(c). Direct marketing or niche marketing or micro marketing.
(d). Exposure to mass media.
(e). Responsibility of the consumers.

Strategies to Change Consumer Attitudes

Altering or changing consumer attitudes is a strategic consideration for
marketers. The following strategies are available.
1). Changing the basic motivation function of consumer: - This is an effective
strategy and is achieved by making the new needs of consumers more
prominent. This strategy is also called functional approach to changing the
consumer attitudes. The following are the relevant examples.
(a).
Ads of cosmetics and personal hygienic products to increase the self
image.
(b).
Ads of fashionable and hi-tech products to increase the value
expressive function of attitudes.
(c).
Ads of medicated products to increase the knowledge function of
attitudes.
(d).
Ads of hair care products to increase ego defensive function of
attitudes.
(e).
Ads of fast foods and ready to eat food items to increase utilitarian
function of attitudes.
2). Associating the product with an admired group or event or cause: - This is
achieved by pointing out the relative relationships among different brands in
the ad. This strategy is in the area of cause related marketing.

3). Relating to conflicting attitudes: - This strategy enables the consumers to see
that their attitude towards the brand is in conflict with another attitude and in
the process they evaluate the brands through change in the attitudes.
4). Altering the components of the multi-attributes through;
(a).
Changing the relative evaluation of attributes
(b).
Changing brand beliefs
(c).
Addition of an attribute
(d).
Changing the overall brand rating.
5). Changing the beliefs among competitors brands: - In this strategy the relative
position of competitors brands vis--vis companies own brands are focused.
The relevant example of this strategy is the ad of Surf Excel with the focus on
Active Oxygen.

CONSUMER DECISION RULES

These rules are also called Choice Heuristics. They are also called consumer
decision strategies or information processing strategies. These rules constitute
procedures used by the consumers to facilitate brand choices. These rules reduce
the burden of making complex buying decisions because; they provide guidelines
or rules of thumb while buying situations. These consumer decision rules are
classified into the following types.
Affect Referral Heuristics In this rule, consumers obtain information from their
last experiences about the brand alternatives in the product category. This rule
very simple because, consumers use the holistic approach for evaluating brand
alternatives. This rule is applied in the case of routine response behavior and
habitual purchases. For example, this rule is applied for daily consumption items
such as salt, cigarettes, tea, etc.
Conjunctive Heuristics This rule is applied in the situations where there are many
brand alternatives with distinct attributes. This rule helps the consumers in
screening the brands. In this rule, the consumers set the minimum cut off points on
each attribute which every brand alternative under consideration must possess. If
a particular brand alternative does not satisfy the minimum cut off, it will be
rejected. The following table illustrates this point. This illustration relates to the
buying of refrigerators.
Attributes
Weightage
Godrej
Kelvinator
Alwyn
21.
15.
Styling
30%
3
9.0
7
5
0
0
12.
17.
Economy
25%
5
2
5.0
7
5
5
Low maintenance
22.
16.
17.
40%
5
4.1
3
cost
5
5
5
Scale = 10 points.

If a buyer of refrigerator is considering three major brand alternatives,

namely, Godrej, Kelvinator and Alwyn, he may set minimum cutoff score of 10
marks on all the 3 attributes. Kelvinator will be dropped because it shows only 2
out of 10 on economy attribute.
Lexicographic Heuristics this choice rule more positive in nature than the
conjunctive heuristics. This heuristic aims at selecting the best brand alternatives
out of the given alternatives. In order to apply this rule, the following procedure is
followed.
(a). Buyers first rate the importance of attributes in the brand alternatives.
(b). Brand alternatives are rated on these attributes.

(c). Brand alternatives that score the highest most most important attribute are
chosen.
Linear Compensatory Heuristics In this rule the consumers permit the strength of
a particular brand attribute to compensate for weakness of another attribute. This
implies that choose the best alternative. This rule considers both the positive and
negative information about brand attributes.
Disjunctive Heuristics This is used infrequently. Under this rule, consumers set
minimum cut off points for only the salient brand attributes and accept that brand
if its performance increases the minimum cut off point.

Marketers Response to the Choice Heuristics

The following chart gives the benchmarks for the marketers to respond to
the choice heuristics effectively.
Area
Influences
Actions
Market
identification

Competitive
analysis

Marketing mix

Marketing
opportunity

Attitude formation
and measurement

Segment the market on the

bases product-attribute
beliefs, attribute benefit
beliefs, product-benefit
beliefs.
Possibility of attributes, beliefs
and benefits manipulation.
Positioning of product

Market product on the basis of

lifestyle and benefit
segmentation.

Sources of ideas for new

products.
Communications impact on
consumer learning.
Importance of price
evaluation matrix.
Distribution outlets add to
product image.

Need of a constant eye on

demographic and social
changes.
Attitude is an indicator of
brand preference and
behavior.
Continues feel of the market
is essential.

Change own product attribute

and those of competitors.
Continuously review product
positioning with proper
communication support.
Use consumer perceptions and
attitudes to design new
products.
Enrich consumers with fresh
and distinct information.
Price perception should be
made in line with brand image.
Encourage distribution in
consumer evaluation.
Create exclusive segments of
consumer demographics.

Strengthen the positive

attributes and modify the
unsuitable ones by variety of
needs.
Develop a regular attitude
checking system.

To sum up, marketers should have heavy task at the time of brand evaluation
by the consumers. Acid test of marketing effectiveness in this regard is whether
consumers are lead to actual purchase action or not.

In general for any brand a consumer might use the following criteria

* Price
* Appearance
* Package * Product Information
* Freshness date * Reputation of manufacturer
*
Previous
satisfactory
experience with the product * Special non-price incentives * Preference by family
members
* Recommendations by independent sources.

Strategies to Deal with Incomplete Information about the Brand

Sometimes consumers may lack total information about the brand resulting
in comparisons of brand alternatives become difficult. However, consumers can
choose the following alternative strategies to deal with missing information.
1. Consumers may delay a decision until mission information is obtained. This
strategy is applied for high risk decisions.
2. Consumers may ignore missing information and may decide to buy using the
available attribute information.
3. Consumers may change the commonly used decision strategy to a brand which
accommodates missing information.
4. Consumers may infer or construct the missing information.

PURHCASE PROCESS
The purchase process marks the actual purchasing environment and its
effects on the process. The purchase process is significant both from the point of
view of marketer and from the point of view of consumer. From the marketers
point of view, the purchase process is linked to the marketing mix because nonselection of brand is a signal to the marketer for introducing changes in the
marketing mix. From the consumers point of view, purchase process marks the
end of their efforts for an optimum brand choice.
A customer who is committed to the purchase process stage will have to take
the following 3 decisions.
1). Where to buy from?
2). How much to buy from?
3). How to buy? i.e., credit, cash, etc.
These decisions are entrust by two major sets of forces. The first set of forces
relates to buying intentions and the second set relates to the situational
influences. The following chart illustrates this.
Purchase

Buying
intentions

Situational
influences

Physical surroundings
Social surroundings
Task definitions
Temporal dimensions
Antecedent conditions

Buying Intentions: Buying intentions emerge largely from the consumer

attitudes. In fact, the attitudinal base of the consumers gives rise to the intentions
to buy. Favorable attitude towards the brand gives an indication to a favorable
intention to buy and vice versa. Buying intentions are quite significant in the
purchase process but not adequate enough by themselves which means that a
positive intention to buy may not necessarily lead to purchase situations because

the purchase process is also a function of situational influences consisting of

physical surroundings, social surroundings, etc.
Physical Surroundings: - Physical surroundings have an interface with the purchase
process and this is illustrated in the following chart.
Atmosphere

Layout
Sound
Smell
Texture
Building design

External Response

Pleasure/Displeasure
Arousal/Sleep
Affects

Purchase Response

Time spent on the store

Tendency to affiliate with
others
Buying response

Physical surroundings are most readily visible features of a purchase

situation and they constitute stimuli for the consumers and they influence the
purchase process through site, smell, touch, taste of the consumers. Marketers use
the concept of atmospherics by devising and controlling right means of physical
surroundings during the purchase process. Music and crowd management are the
popular elements of atmospherics.
Social Surroundings: - also shape the purchase process. Social surroundings refer
to the presence of other people and their impact during the purchase or usage of a
product. Shopping is a social experience and it also affects communications. Given
are some research findings in this respect.
While shopping with friends, the consumer is likely to make unplanned
purchases than planned purchases.
Women buyers spend more time for shopping than male buyers. They always
make planned purchases.
Selling to unaided buyers is easier than selling to consumers with advices.
Compliance to a group use is there even though the buyer knows that others in
the group are wrong.
Task Definition: - Task definition influences the purchase process the following
ways.
The purpose of purchase may alter the purchase out come. If for instance, the
product being purchased is meant for a gift to a close friend, the expected
reaction of that friend will define the purchase task.
The use situation of the product will determine the task definition. A public
consumption of products in such gatherings as wedding and social get together,
etc, will place higher emphasis on purchase of a product than in a private
consumption of the same product.
Temporal Factors: Availability of time will decide the purchase strategy of given product.
Higher the amount of available time greater will be the information search.
Time, when accompanied with other variables (like hunger, happiness) can
produce a more visible effect.

Time compression, a device in which marketers use time effectiveness for

maximum impact can be used by marketers.
Antecedent States: - A famished consumer will finish his shopping quickly when
compared to contending consumer. A consumer who is frustrated in not finding the
desired product will exhibit negative feelings towards the same product at other
times. Moods of the consumers will have a significant influence on the purchase
process.
A marketer should adopt the following steps so as to benefit from situational
influences. the steps are given below.
Identify the relevance of each situational factor on this buying process.
Determine the impact of relevant situational variables through appropriate
research.
Consider appropriate segmentation and positioning based on findings.
Develop an appropriate marketing mix incorporating the findings.
Remember the general findings and hypothesized relationships between
situational variables and purchase process.

AN ANATOMY OF NON-STORE BUYING

(DIRECT MARKETING)
Today in most countries non-store buying is a major root for shopping. Nonstore buying is also called direct marketing and has a profound influence on the
purchase process.
Direct marketing is the total of activities by which the products and services
are offered to the market segment in one or more media in order to get the direct
response from the prospective consumers.
Reasons for the Dominance of the Non-store buying
Greater importance to consumer lifestyle.
Higher discretionary income.
Demand for convenience in shopping.
Option of credit facilities through credit or charge cards.
In-store and long queues in delivery and payment.
Under-informed or little trained store personnel.
Pressure for spot under stress of store personnel decisions.
Factors Influencing Non-store Buying
General economic development.
Availability of logistics and infrastructure.
Nature of product.
Consumer awareness.
Freedom enjoyed by marketing forces.
Desire of marketers to reach new and uncovered segments.
Routes of Non-store Buying
The in-home buying.
Telemarketing.
Mail order buying.
Direct in-home sales.
Interactive video selling.

 Digital or internet marketing.

POST PURCHASE DECISIONS

The following chart gives the projection of post purchase activities in the
consumer decision making.
Need Recognition
Pre-purchase
activities

Information Search

Evaluation of Alternatives
Purchase
Process
Purchase

Acquisition

Post Purchase

Delivery

Post Purchase
Behavior
Storage

Preparation

Consumption

Maintenance
Repair
Usage cost

Disposition

The above chart gives a comparative look at the activities involved before
the purchase, during purchase and after the purchase. When product is acquired,
i.e. taken delivery, consumer has to decide the storage of the product for the
present and future tendency, depending upon rate of consumption, which itself
depends on the requirements of the consumers. Some products require
preparation for consumption. After preparation, the product is consumed. The
consumption leads to 3 issues, namely, maintenance, repair and usage cost. These
3 issues along with consumption lead to disposition of consumer in the form of
either satisfaction or dissatisfaction.
Formation of Satisfaction/Dissatisfaction: - Every purchase inevitably involves
either satisfaction or dissatisfaction which is called expected outcome. Satisfaction
signifies a confirmation that performance of the chosen alternative is consistent
with the prior beliefs and expectations. Dissatisfaction, on the other hand, signifies
the absence of such confirmation. This point is illustrated in the following chart.
Prior product/brand expectations
Expectations of how the
brand should perform

Evaluation of actual
performance

Evaluation of discrepancy
between expectation and
performance

Dissatisfaction

Expectancy confirmation

Satisfaction

Performance
fails
to meet
What
then
are
expectation

noticeably
Performance
the factorsPerformance
causing not
satisfaction
or dissatisfaction?
Thesurpasses
most
different from expectations
expectations
important factors are;
Use/occasion of product/brand.
Cost/investment involved in choice making.
Number of outcomes and their desirability.
Prior experience of product/brand.
Personal expectations and norms.
Group expectations and norms.
Cultural norms.
Outcome endurance the duration for which the outcome persists.
Time lag between the choice and use of the product.

Theories of Post Purchase Evaluation

There are number of theories of post purchase evaluation. However, the
following 4 theories are very important.
1. Assimilation Theory
2. Contrast Theory
3. Generalized Negativity Theory
4. Assimilation-Contrast Theory
The following chart explains the major assumptions and marketing
implications of these 4 theories of post purchase evaluation.
Theories
Major Assumptions
Marketing Implications
Assimilation
Theory
Contrast Theory
Generalized
Negativity Theory
AssimilationContrast Theory

Disparity minimized by adjusting Over state product claims.

perceived
expectations
with
performance.
Disparity magnified.
Reasonably understate product
claims.
Disparity leads to negative state a Consistent
claims
with
general negative feeling.
performance.
Minor disparities are minimized State product claims slightly
while
major
disparities
are above the actual performance
magnified.
but within consumers range of
acceptance.

Responses of Dissatisfied Customers & Dealing such Responses

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

A dissatisfied customer gives out the following responses.

He may discontinue the purchase and patronage.
He will prevail to bad mouth of the product.
He may complaint.
He may seek replacement of the product.
He may take legal action.
A marketer can deal with these responses through the following actions.
Build consumer satisfaction.

2. Maintain consumer satisfaction.

3. Avoid consumer dissatisfaction.
These 3 actions require the following steps.
Monitor regularly the consumer reactions The marketer should initiate and
encourage a regular monitoring of consumer reactions towards itself, its product
range and a particular brand. A continuous monitoring data will develop into an
information system and serve as early signals.
Bring product quality under marketing responsibility Quality control will
upgrade itself from being an isolated function of production department to a
joint mission of marketing and manufacturing departments.
Handle complaints quickly and responsibly Marketers should take up
consumer complaints quickly and actions notified to the complaint. Even
acknowledgement of receipt of complaint will reduce dissatisfaction.
Be courteous and helpful host Most of consumer dissatisfaction is attributable
to poor service at the point of purchase. It may arise out of unhelpful and
discourteous sales personnel, poor availability of product and inadequate
service to customers.
State only realistic product claims Factual promotion executed with creativity
brings about lasting customer loyalty and good will.
Help consumers on product use The manner in which the product is used can
be crucial to customer satisfaction/dissatisfaction. It is in the interests of the
marketers themselves to help consumers in proper use of the product.
Especially those which may fail if wrongly opened or used blindly. Adequate
information and instructions could be given to reduce potential consumer
dissatisfaction.
Assure even better after the purchase is over A thank letter enquiring about
their post purchase feelings can be long way in building a healthy and satisfying
relationship for both customers and marketers.
Self solution instead of product Nobody buys a product; what consumers buy
is solution through products. Promotional efforts should focus on the
performance of the product rather than the product itself. This will signify the
desire of marketers to provide satisfaction to customers.

GROUP INFLUENCE IN CB
Consumer relevant groups;
1. Family: - Family influences the consumer in his purchase decisions. Family
influence on CB is significant because of 2 factors.
(a).
Consumer will have frequent contact with family member.
(b).
Family influences the consumer on a wide range of values, attitudes
and behavior.
2. Friendship Groups: - These groups are informal groups because they are
unstructured. Seeking and maintaining friendship is a basic drive of people.
Friends fulfill wide range of needs. They provide companionship, security and
opportunities to discuss problems. Friendship is a sign of maturity and
independence. Friends exert powerful influence in determining brands which a
consumer ultimately selects. This is defined in advertisements friendship
situations.
3. Formal Social Groups: - Members of a formal social group consume certain
products together. For example, youth club, lions club, rotary club, etc. These

groups informally discuss the problems. Some members of the group copy the
consumption behavior of others whom they admire.
4. Shopping Groups: - Two or more people who shop together are called shopping
groups. These groups are also called purchase pals. Some consumers do not
shop alone. They always go either with their friends or with family members.
Shopping groups influence the consumers in their purchase decision making.
5. Work Groups: - Consumers who work in organizations are also influenced by the
colleagues. The work groups provide ample opportunity for consumers to get
information about the products and services and select them.
6. Reference Groups: - A reference group is any person or group that serves as a
point of comparison for individual in forming either general or specific values or
attitudes or behavior. From marketing context, reference groups are groups that
serve as frames of reference for individuals in their consumption decisions.
Reference groups types are;
(a).
Normative reference group This group influences the individuals
in terms of values or behavior.
(b).
Comparative reference group This group provides benchmarks to
consumers regarding the products or brands to be chosen.
(c).
Indirect reference group This group consists of movie stars, sports
heroes, political leaders or TV personalities. This group does not provide face
to face contact with the consumers. Nevertheless, they influence the
consumers.
(d).
Contactual group This group provides a regular face to face contact
with the consumers.
(e).
Aspirational group This group does not provide face to face contact
with the consumer but the consumer wants to become a member of the
group by copying the consumption pattern of the group.
(f).
Avoidance group This is a group in which the person does not hold
a membership and no face to face contact but is influenced by the values
and attitudes of the group members.

Factors that Affect Reference Group Influences

1. Information experience An individual consumer who has abundant information
about product or services is not influenced by a reference group, whereas an
individual who has very little experience and lacks information about a product
or service will be influenced by the reference group.
2. Credibility of the reference group The reference group which is believable can
induce a behavioral change among individual consumers, whereas a reference
group which lacks credibility will not be able to produce the influence on the
individual consumer.
3. Attractiveness of the reference group If the reference group is attractive
enough which will produce the desirable influence on the individual consumer
but a reference group unattractive will not do so.
4. Power of reference group If the reference group is very powerful in influencing
others, it will produce desirable influence on the individual consumers. But a
powerless reference group can not do so.
5. Conspicuousness of the product If the product is visually or verbally
conspicuous, their will be reference group influence. But if the product/service is
less conspicuous they do not need reference group influence.

6. Reference groups and consumer conformity To influence the individual

consumers the reference groups must possess the following self.
i. The group should inform the individual consumers about the product/service.
ii.
The group should provide the individual consumers the chance to compare
their own thinking with that of reference group members.
iii.
The group should influence the individual consumers to adopt the attitude,
behavior and norms of the reference group members.
iv.
A group should legitimize the decision of the individual consumers to use the
same product which the group uses.
7. Type of the products and nature of the products also affect the reference
group influence. This point is illustrated in the following chart.
In the case of first type of products,
PRODUCT
reference group will be very strong on
- weak
+ strong
the purchase of both the product and
B
Furniture
Cars
brand. In the case of 2nd type
R
Strong Refrigerator
Cigarettes
products, reference groups are very
A
+
Clothing
Drugs
strong on the brand not in the
N
Toilet soap
Beer
purchase product. In the case of 3rd
D
Soap
AC
type products, reference groups
Canned
Instant
Weak influence is weak both on products
foods
coffee
and brands. In the case of 4th type
Radio
TV
products, reference group influence is
very strong on the product but not on the brand.

Application of the Reference Group Concept

There are 5 types of reference group appeals that are used in the
contemporary marketing management. They are;
1). Celebrity Appeals Celebrities such as movie stars, TV personalities, popular
entertainers, sports people, etc, provide a very common type of reference group
appeal. Marketers invest large sums of money on the celebrities to promote
their products. Generally, teenagers are influenced by the celebrities. A
marketer uses a celebrity through testimonial advertisement or endorsement
advertisement. Sometimes the celebrity also used as an actor in a commercial
movie.
2). Expert Appeals This is a 2nd type of reference group appeal used by the
marketers. An expert because of his/her occupation, special training or
experience is used in advertisement to promote the product.
3). Common Man Appeals This is a reference group appeal that uses
testimonials of a satisfied customer. This appeal is used in TV commercials
which are known as Slice-of-Life commercials.
4). Executive Appeals In this type of reference group appeal, top executives are
used as spokespersons in consumer advertisement.
5). Trade & Spokes Character Appeals In this type of reference group appeal,
trade people and representatives serve as quasi-celebrity endorses in
commercial advertisement.

OPINION LEADERS
Opinion leader is a person who is able to influence informally other
individuals attributes or overt behavior in a desired way with a relative frequency.
Examples of opinion leaders at work are;

1). During dinner in the factory canteen, one colleague mentions the desire to buy
a fax machine and other colleague recommends a particular brand of fax
machine.
2). A woman who recently moved into a new house wants more light in the kitchen
and calls her neighbor to suggest a good electrician.
Opinion leadership is found in every social class. They perform 3 roles;
(a). As informers, i.e., opinion leaders influence the followers or opinion seekers,
new ideas which may enhance the new style of living.
(b). Persuaders, i.e., opinion leaders advice their followers or opinion seekers.
(c). Confirmers, i.e., opinion leaders reduce the risk of purchasing new products
by their followers or opinion seekers.

Profile of Opinion Leaders

i. EXTERNAL COMMUNICATIONS greater exposure to mass media, more
cosmopolitan in outlook and greater change agents.
ii. ACCESSABILITY greater social participation than followers.
iii. SOCIAL STATUS higher social status than followers.
iv. INNOVATIVENESS they are more innovative than followers.
Apart from these characteristics, opinion leaders possess some attributes
which are classified as
Generalized attributes across product categories -- * Innovativeness **
Willingness to talk
*** Self confidence
****
Gregariousness
***** Cognitive differentiation.
Category specific attributes -- * Interest
* Knowledge
*
Special
interest media exposure
* same age
* same social status
* Social exposure outside the group.

Methods of Locating/Measuring Opinion Leadership

Opinion
leadership
measurement/loc
ation
Self-Designating
Method

Socio-Metric
Method

Key Informants
Method

Description of
method

Sample
question
asked

Advantages

Limitations

Each respondent is
asked a series of
questions to
determine the
degree to which
he/she perceives
himself/herself to be
an opinion leader.
Member of a social
system are asked to
identify to whom
they give advice and
to whom they go for
advice and
information about a
product category.

Do you
influence
other people
in their
selection of
purchases?

Measures the
individuals
own
perceptions of
his/her opinion
leadership

Depends on the
objectivity with which
respondent can
identify and report
their personal
influence.

Whom do you
ask? Who
asks you for
information
about that
product
category?

Socio-metric
questions have
the greatest
degree of
validity and are
easy to
administer.

Carefully selected
key informants in a
social system are
asked the designate

Who are the

most
implicated
people in the

Relatively
inexpensive
and less time
consuming

It is very costly and

always is very
complex. Require a
large number of
respondents. Not
sustainable for simple
design when only
position of the social
system is
interviewed.
Informants who are
not thoroughly
familiar with the
social system are

Objective Method

opinion leaders.

group?

Artificially places
individuals in a
position to act as
opinion leaders and
measures results of
their results.

How you tried

the product?

than the sociometric method

Measures
individuals
ability to
influence
others wider
controlled
circumstances.

likely to provide
invalid information.
Requires the
establishment of an
experimented design
and the tracking of
the resulting impact
on the participants.

INFLUENCE OF FAMILY ON CB
Family is not just a social group, it is also an earning, consuming and decision
making unit. Family is of particular significance to the marketers because family
members hold an influence on the purchase and consumption decisions. Decision
process of a given family can be complex because family members bring their own
motivations, evaluations and beliefs and predispositions to the decision making
process. The complexity is also due to the fact that there is a reciprocal influence
Wife
of family member. This reciprocal influence is shown in the following
chart.
Husband

Cognitions,
Behaviors,
Environments

Cognitions,
Behaviors,
Environments

Child
Cognitions,
Behaviors,
Environments

There are 2 types of family influences on the CB.

1. Consumer Socialization: - It is the process by which young people acquire skills,
knowledge and attitudes relevant to their functioning as consumers. Through
the variety of family interactions, the consumer learns to develop tastes,
preferences and shopping styles. Factors influencing consumer socialization are
shown in the following model.
Background factors

Socialization agents

Scanning mechanisms

Out comes

Socio-economic status,
Sex, Age, Social class,
Religious background

Media, Family
members, Peers,
Teachers

Modeling,
Reinforcement, Stage of
cognitive development

The socialized
consumers

Two factors together influence the consumer socialization; the background or

environmental factors. Such factors as socio-economic status, age, sex and
religious affiliation of the consumer. The socializing agents who include all
individuals who have direct influence on the consumer such as parents, sisters,
brothers, peers, teachers and media. Family teaches the rational aspects of
consumption whereas encourages the consumption for emotional reasons. The
concept of consumer socialization becomes clearer when we look at the
following model of socialization.
Influence more basic
value/behavior
Moral or religious principles
Other
family members
Inter-personal
skills
Dress/grooming standards
Manners and speech
Educational motivation
Occupational/career goals
CB norms
Pre-adolescence

Young person

Adolescent

Influence more
expressive
attitudes/behavior
Style Friends
Fashion
Fads
In/out
Acceptable CB
Teens

2. Inter-Generational Influences: - These influences refer to what is past along from

grand parents to parents, from parents to their children and from children to
their children. Many forms of influences are passed on which include religious
and cultural values, general life style, attitude towards education, sports, leisure
and social life. These influences together are called inter-generational carry
over. This concept is shown in the following chart.
Grand Parents

Knowledge, values,
habits, preferences
Parents
Knowledge, values,
habits, preferences
Children
Time

This concept is highly significant to marketers because it plays an important

role in forming product and brand preferences. In fact, many consumers prefer
only those brands which their parents have bought.

Family Life Cycle Stages

Traditional family life cycle is adopted in order to understand the buying
pattern within the family member. Traditional family life cycle progression of stages
through with the many family passes. The following chart gives the traditional
family life cycle in buying pattern.
Stages in family life cycle
Buying/behavior pattern
Single Stage:

Full Nest I:
Full Nest II:

Young unmarried living Few financial burdens spend on rent, food, basic
away from home.
kitchen requirements and furniture, recreation
and leisure time, accessories such as hi-fi
systems, etc.
Young, new married, no Better off financially, life is usually working,
children.
highest purchase rate, spend on furniture,
durables such as TV, refrigerator, gas stove,
vocation, etc.
Youngest child under 6. Spend maximum on home purchases, interested
in new products, influenced by TV, baby foods,
toys, medicines.
Youngest child over 6.
Some wives return to work, better off financially,
less influenced by advertising, buy large sized
packages, various kinds of foods, bicycles,
education, house purchasing.

Full Nest III:

Old married couples

with
dependent
children.
Empty Nest I: Older married couples
no children living at
home, household still
working.
Empty Nest Older
married,
no
II:
children at home, head
retired.
Solitary Survivor I:
Solitary Survivor II:

Financial position still better, spend on

education, more tasteful furniture, cars, nonnecessary appliances, etc.
Spend on travel, recreation, self improvement,
home improvement, healthcare, etc.
Drastic reduction in income, buy medical
appliances and medi-care products which aid
good health.
Likely to sell home, but income still good.
Reduced income, spend on medical products.

This traditional family life cycle does not recognize the fact that single family
unit may not exist throughout the life of individual. Families which created by
second marriages. It also ignores the existence of single parent, households.
Modern family life cycle overcomes these limitations and it also takes into account
working women and also dual income families. The following chart gives the
consumption patterns of families namely modern life cycle stages:
Stage
Consumption patterns
1. Young People
2. Young Married with no
Children
3. Young Married with Children
4. Middle Aged with Children at
Home
5. With no Children at Home
6. Older (married or single)
7. Divorced

Outdoor sporting goods, sports cars, fashion clothing,

entertainment and recreation services.
Recreation and relaxation, insurance, home furnishings,
travel, home appliances, high purchase rate of durables.
Baby food, clothing and furniture, starter housing,
insurance, washer, dryers, medical services, supplies for
children, toys for children.
Childrens lessons (piano, dance, etc.), large food
purchases (respond to bulk buying deals) dental care,
higher priced furniture, fast food, restaurants.
Luxury products, travel, restaurants, condominiums,
recreation,
make
gifts
and
contributions,
high
discretionary income, solid financial position.
Health care, home security, specialized housing,
specialized food products, recreation geared to the
returned generally cash poor.
Money saving products, frozen foods, rental housing,
child care, traveling appliances and food, cash poor.

Family Decision Making

The modern society is dynamic and under the dynamic society family related
roles are rapidly changing. For example, a number of married women work outside
and this has given rise to the shift in family roles. There are 8 distinct roles in the
family decision making process. A look at these roles provides an insight into how
the family members interact with each other in family decision making.
1. Influencers i.e., family members who provide information to other members
of the family about a product/service.
2. Gate Keepers i.e., family members who control the flow of information about
a product/service in the family.
3. Deciders i.e., family members with the power to determine unilaterally or
jointly, whether to shop for, or purchase or use or consume or dispose of
specific products/services.

4. Buyers i.e., family members who make actual purchase of particular

5.
6.
7.
8.

product/service.
Preparers i.e., family members who transform a product into a form suitable
for consumption by other family members.
Users i.e., family members who use or consume particular product/ service.
Maintainers i.e., family members who service/repair the product so that the
product can provide continued satisfaction.
Disposers i.e., family members who carryout the disposal of products.

Wife Husband Role in Family Decision Making

The extent and nature of husband-wife role is an interesting factor to
consider in family decision making because the influence is likely to shift
depending on specific features under consideration. It is consistently found that
the influence of husband-wife is quite significant in majority of the families. There
are 4 categories of decisions which highlight the influence of husband-wife in
family decision making.
1. Wife Dominant Decisions i.e., wives usually dominate decisions of food
purchases, groceries, household furniture and appliances.
2. Husband Dominant Decisions i.e., husbands usually dominate decisions on
automobiles and insurance.
3. Synchronic Decisions i.e., these are joint decisions in which husbands and
wives share the influence e.g., choice for schools of children, vacations are
jointly decided.
4. Autonomic Decisions i.e., these are unilateral decisions of lesser importance
which either the wife or husband make independently.

Implications of Family Decision Making Strategy

The family decision making has a profound influence on the formulation of
marketing strategy in respect of most of the consumer durable goods. In this
context, the development of a successful marketing mix depends on the answers
to the following questions.
1). Is the product likely to be purchased for joint or family?
2). Is the product likely to be purchased with individual or family funds?
3). Is the product so expensive that the purchase involves a trade off in purchasing
other products for the family?
4). Are family members likely to disagree about the product?
5). Is the product likely to be used more than one family member? If so, what
product modifications are required?
6). Which family members will influence the purchase? And which media and
messages should be used in the advertisement?
7). Is a particular store preferred by various family members in the target market?
The answers to the above questions constitute the basis for formulation of
marketing strategy by the forward looking marketers.

SOCIAL CLASS INFLUENCE ON CB

Social class refers to a social position that an individual occupies in society.
The social standing is the result of characteristics which an individual possess such
as education, occupation, ownership of property, source of income, etc. the

following chart shows how the social standing is derived and how it influences the
behavior.
Socio-economic factors

Social standing

Unique behavior

Occupation,
Education,
Ownership of property,
Source of income

Upper class,
Middle class,
Working class,
Lower class

Preferences,
Consumption,
Communications,
Purchasing

Social standing leads to the division of society into a hierarchy of social

classes and this hierarchy is important to the marketers because consumers in a
particular social class develop preferences and consumption patterns that are
unique to them. As a result they tend to purchase certain products favored by
other members in same class and avoid those products which other social class
members favor. Social class influences CB by 2 types.
Normative Social Class Influence these influences involve the influence of
social factors in consumer decision making. These consumer influences exert
strong pressures on consumers leading to consumer conformity, i.e.,
consumers tend to buy the socially accepted or approved products/services.
This concept of consumer conformity is indirectly encouraged by the marketers
because there is a strong possibility of pushing the consumers towards the
products.
Informational Social Class Influence consumers often obtain information from
other people or groups of people about the products and services and they are
influenced by such information. There are 2 types of information which
consumers obtain.
(a).
Direct communication i.e., the consumer gets verbal information about
the others.
(b).
Indirect communication i.e., consumers get information through
observation.
The informational influences occur in 3 different situations.
(a).
The consumer may seek out information.
(b).
A reference group member may volunteer to provide information to the
consumer.
(c).
Information may be transmitted to consumer through observation.
Generally consumers tend to depend more on friends, colleagues, family
members, co-workers and also from reference group members.
The number of categories of social class varies and variety of different
classification schemes have been developed to rank social classes. The most
important and frequently used scheme is Warners Index of Social Characteristics.
This index uses 4 variables as indicators of social class. They are occupation,
income, housing and dwelling area. According to this scheme, social class is
divided into following 6 groups.
1. Upper Upper class
2. Lower Upper class
3. Upper Middle class
4. Lower Middle class
5. Upper Lower class
6. Lower Lower class
In addition to this scheme, the following 4 target groups have been identified
by the marketers for their use. These include Upper class, Middle class, Working

class and Lower class. Let us describe these 4 target groups for marketing
purposes.
Social
Life style orientation
Purchasing tendencies
class
Upper class

Middle class
Working
class
Lower class

Good taste.
Graceful living.
Good things in life.
Individual expression.
Interests in arts & culture.
Respected living.
Social esteem.
Conformity.
Fun oriented.
Focus on possessions.
Unsophisticated taste.
Close family relationships.
Not interested in world
affairs.
Immediate gratification.

Art, books, travel, quality merchandize,

expensive hobbies & recreation equipment.

Fashion items, items related to selfpresentation, nice clothing, and items for
children, good home.
New appliances, sporting events, new and big
items.
Status symbols, products enhancing self
esteem, pseudo-symbols of prosperity such
as used scooters & 2nd hand products, readily
available products.

PERSONALITY & CB
Personality is the composite sum of an individuals psychological traits,
characteristics, motives, habits, attitudes, beliefs and outlooks. When this concept
of personality is applied to marketing, we can view personality as having the
following distinct characteristics.
Personality is used to account for differences among individuals rather than
show how people are alike.
Personality is a set of response tendencies that are consistent over a period of
time. The consistency is essential to the marketers to predict the CB in terms of
personality.
Personality is subject to change over a period of time in response to situation,
events in life and a part of gradual maturing process.
It is not possible to predict a persons purchase behavior from a single measure
of personality.

THEORIES OF PERSONALITY
The following personality theories are very useful for studying relationship
between consumer personalities and their behavior.

Psycho-Analytical Theory
This theory is formulated by Sigmund Freud. The substance of this theory is
projected in the following diagram.
According to Freud, personality is a product of a struggle among 3 interacting
forces namely, Id, Ego and Super Ego. If these 3 forces are in a state of equilibrium
then a normal personality exists. If there is an under development in any of these
forces, then the internal balance is disturbed and disturbance leads to
maladjustment and dissatisfaction.
Application of this Theory: - This theory has been used by the marketers to
influence the CB. According to this theory, consumers have conflicting desires and
they are confronted with products. A key concept emerging out of this theory is

anxiety and the consumers try to minimize the anxiety through fantasy, wish
fulfillment, aggressive impulses, etc. Marketers therefore, use fantasy to propel
people to buy the products.

Socio-Psychological Theory
It is also called Neo-Freudal Theory. According to this theory, social
relationships are fundamental and instrumental to the formation and development
of personality. Consumers are classified into 3personality groups by using CAD
model. The model stands for Compliance, Aggression and Detachment. The
consumers fall into any one of the following 3 categories.
Rational overt actions, some thought process

Conscious

Personality

Super ego

Knowledge cognitive process

Ego

Preconscious

Some interactions of the 3 parts of

personality lead to behavior.

Basic drives, convenience, creative thought process

Unconscious

Compliance individuals These individuals tend to move towards others.

They are conformists. They need love, affection, approval and the desire to
be appreciated.
Aggressive individuals They tend to move against others. They
manipulate others. They have needed to achieve success, to accept, to gain
admiration and to be in power position.
Detached individuals These people tend to move away from others. They
need self reliance, independence and freedom.
Application of CAD Model: - The complied types of consumers prefer known
products and brands. The aggressive type of consumers prefers specific brands
out of a desire to be noticed. The detached consumers have the least awareness of
brands.

Trait and Factor Theory

These theories are very popular, used to explain the CB. According to the
trait theory, it is possible to measure and explain the personality in terms of
specific personality characteristics which are called traits. A trait is a predisposition
to respond to a particular way. 16 personality traits identified by Cattell are highly
useful to the marketers.
1. Reserved Vs Outgoing
2. Dull Vs Bright
3. Unstable Vs Stable
4. Docile Vs Aggressiveness
5. Serious Vs Happy-go-lucky
6. Expedient Vs Conservative
7. Shy Vs Uninhibited
8. Tough minded Vs Tender minded
9. Trusting Vs Suspicious
10.Practical Vs Imaginative
11. Unpretentious Vs Polished
12.Self assured Vs Self reproaching
13.Uncreative Vs Experimenting
14.Group dependent Vs Self sufficient
Factor theory involve the application of trait theory by subjecting large
number of individuals to personality tests, the results of which are subsequently
analyzed by statistical technique called factor analysis. The factor analysis gives
the common factors or traits to be identified in groups of people who constitute the
market segments.
Applications: - From the CB point of view, the advantage of these theories is that,
they are based on a number of readily available and standardized personality
inventories and evaluative techniques. For example, California Psychological
Inventory, popularly called CPI, is frequently used by the marketers in India and
abroad.

Self Concept Theory

PSYCHOGRAPHICS
Deep
Internal
World

External
Reality

Basic Drives
A
The inner
world, external
world
continuum
B
Movement
from
traditional
measures

Personality
measures
Person as a person
Demographics
Personality

Daily activities
including consumer
purchases
Both are frequently used
together in applied studies
along with
Demographics
Person as a consumer
Media habits
Benefits sought
Brand attitudes & beliefs
Psychographics
Consumer life
Measures of purchasing
styles

Psychographic
measures

Life style
measures

In contrast to life styles, psychographics have distinct origins from

personality, as can be seen from above chart. For the marketing manager,
information on psychographics is useful for segmenting the markets, for
positioning brands, for developing marketing mix strongly and for designing media
strategy.

IFNLUENCE OF CULTURE ON CB
Culture is the broadest component that affects CB. It provides the
background for all other factors influencing CB. For example, family, social class
and reference groups influence CB through culture. Our clothing, our diet, methods
of food preparation and service are all manifestations of culture.
What is culture? Culture is a complex set of values, ideas, beliefs, attitudes
and other meaningful symbols created by human beings to shape human behavior
which are transmitted from one generation to another generation. Culture results
from interactions between people. The function of culture is to establish modes of
conduct, standards of performance and ways of dealing with other people. Many
aspects of culture are one and the same but there are differences between culture
s. within a given culture, sub-cultures also exists due to geographic differences,
religious differences, nationality differences and ethnic differences. Culture has two
broad components;
o Internal mental culture
o External material culture
The internal mental culture is again of 2 types cognitive component and
normative component. The cognitive component of internal mental culture consists
of ideas and knowledge, i.e. ideas about Gods, ideas about super natural
phenomenon and concepts of life after death. The normative component of internal
mental culture consists of values, rules of conduct and norms which regulate the
behavior.
External material culture refers to all the things which we see, touch, and use
in our day to day living. It concerns with how we enjoy our moments. The
significance of culture in understanding the CB is quite high. Consumers may be
biologically similar in instincts but their views of world differ according to their
cultural orientations. Culture provides standards regarding what to eat, when to
eat, what is appropriate to eat, picnic, wedding and all other social actions. These
cultural orientations manifests in lifestyles, personalities, attitudes, values and
belief systems which in turn accounts for differences in brand preferences, media
habits, responsiveness to marketing mix elements.

DIFFUSION PROCESS
Diffusion is concerned with how innovations spread i.e., how they are
assimilated within a market.
Specifically diffusion is a process by which acceptance of innovation i.e., a
new product, new service, new idea, and new practice is spread by communication
to the members of social system over a period of time.
This definition includes 4 basic units of diffusion process; (1) Innovation, (2)
Channels of Communication, (3) Social System and (4) Time.
Innovation There no universal definition of innovation. However, it is defined as
new product or service in terms of;
Firm-oriented Definition: - according to this definition, when the product is new to
the company, it is considered.
Product-oriented Definition: - this definition gives 3 types of product innovation i.e.,
1. continuous innovation which involves introduction of modified product,
2. dynamically continuous innovation which involves creation of a new product
e.g. CD ROM
3. discontinuous innovation which requires the consumer to adopt new patterns
of behavior e.g. internet purchase.
Market-oriented Definition: - this definition gives two basic rules of new product or
new service.
1. A product is considered new if it has been purchased by relatively small
percentage of the potential market.
2. A product is considered new if it has been in the market for relatively short
period of time.
Consumer-oriented Definition: - according to this definition, a product is new if
consumer perceives it to be new.
Channels of Communication How quickly an innovation spread through a
market depends to a great extent on marketer and consumers and also
communication among consumers. The channel of communication among
consumers is usually the word-of-mouth. However, a channel of communication
between a marketer and consumer includes both impersonal sources like
advertising and also interpersonal sources like salespeople and opinion leaders. In
recent years variety of new channels of communication have been developed to
inform the consumers of innovative products and services e.g. growth of
interactive marketing messages through internet.
Social System The diffusion of a new product usually takes place in a social
setting which frequently called social system. A social system is a physical, social
or cultural environment to which people belong within which they function. The
following are the characteristics of a typical modern social system.
A positive attitude towards change.
An advanced technology.
A general respect for educational science.
Emphasis on rational and ordered social relationships.
An out rich perspective of interactions.
A system in which members perform different roles.
These characteristics of social system pave the way for diffusion.
Time Time is the backbone of diffusion process. It provides 3 interrelated aspects
of diffusion.
1. Amount of purchase time
2. Identification of adopter categories

3. rate of adoption.
Purchase time refers to the amount of time that elapses between consumers
initial awareness of a new product/service and the point at which they purchase or
reject it. The concept of adopter categories involves a classification scheme that
indicates where consumer stands in relation to other consumers in terms of time
and there are 5 adopter categories, namely, innovators, early adopters, early
majority, late majority, and laggards. The rate of adoption is concerned with how
long it takes the new product/service to be adopted by members of the social
system.

RESISTANCE TO INNOVATION

What makes some new products almost instant success while other new
products struggle to gain consumer acceptance? We can well answer this question
with the help of the following model of innovation resistance.
Exposure to Innovation

INNOVATION CHARACTERISTICS
Consumer dependent
Relative advantage
Compatibility
Perceived risk
Complexity
Effect on adoption of other innovation
Consumer independent
Trailability
Divisibility
Reversibility
Realization
Communicability
Form of innovation

Exposure to Innovation

CONSUMER CHARACTERISTICS
Psychological variables
Perception
Motivation
Personality
Value orientation
Beliefs
Attitudes
Previous innovation
Experience
Demographics
Age
Education
Income

PROPAGATION MECHANISMS
Types
Marketer controlled Vs non-marketer
controlled
Personal Vs impersonal
Characteristics
Credibility
Clarity
Source similarity
Informative ness

No
Innovation Resistance
Adoption

Modification

Yes
No
Rejection

Is innovation accessible
to modification?

Yes

The above model states that the product characteristics of innovation help
determine the extent of consumer resistance. Consumer resistance will be high
when perceived relative advantage, perceived compatibility, trail ability and
communicability are low and perceived complexity is very high. Besides,
innovations overload also makes it difficult for the consumers to make comparisons
among the available choices. The resistance to innovation may not result in
rejection and it may take quite long time for achieving the consumer acceptance.
In case there is innovation resistance leading to later adoption, the3 marketer is
overburdened in the sense, that he has to release a series of promotional material
in order to convince and reassure the consumers about the utility of the
innovation.

ADOPTER CATEGORIES

The concept of adopter categories involves a classification scheme that

indicates when a consumer stands in relation to other consumers in terms of when

he/she adopts a new product. There are 5 types of adopter categories in the
diffusion process.
(1) INNOVATORS (2) EARLY ADOPTERS (3) EARLY MAJORITY
(4) LATE MAJORITY
(5) LAGGARDS
A brief description of these categories along with relative percentage within
the population that eventually adopts is given below.
Adopter
Description
Relative
%
Category
within
population
INNOVATORS
1. They are venture some.
2.5%
2. Very eager to try new ideas.
3. They
accept
risks
in
new
purchases.
4. They
have
high
social
relationships.
5. They are cosmopolitan in outlook.
6. They communicate with other
innovators.
EARLY ADOPTERS 1. They are more integrated in local
13.5%
social system.
2. They check before adopting new
ideas.
3. They are opinion leaders.
4. They are role models.
EARLY MAJORITY
1. They are deliberative.
34%
2. They adopt new ideas just prior
to the average time.
3. They seldom hold leadership
positions.
LATE MAJORITY
1. They are doubtful people.
34%
2. They adopt new ideas just after
the average time.
3. They
approach
innovationsconscious theory.
LAGGARDS
1. They are traditional people.
16%
2. They are the last people to adopt
the innovation.
3. They doubt new products.
The sequence & proportion of adopter categories among the population that
eventually adopts is shown in the following graph.
Late Majority
Early Majority

Early Adopters
Innovators
2.5%

34%
13.5%

34%

Laggards

16%
% of adopters by category sequence

Another scheme of classifying adopter categories is given below.

Unaware Group: - This group consists of consumers who do not know about the
innovation & they have not yet obtained the information about new products.
Symbolic Rejecters: - These consumers know about new products but have not
yet taken decision about them.
Symbolic Adopters: - These consumers believe that the new product is useful
but not yet decided to try.
Trail Adopters: - These consumers have tried the new product but have not made
the actual purchase or repurchase.
Trail Rejecters: - These consumers tried the new product but found it not useful
and therefore rejected it.

ADOPTION PROCESS

Adoption process is the major process of diffusion of innovations. The

adoption process focuses on stages through which a new product is likely to be
adopted by the consumers whereas the concept of adoption categories focuses on
the time and rate of adoption. The stages are:
1. Awareness: - In this stage the consumers are exposed to the product
innovation but the exposure is some what neutral because the product
innovation has not yet aroused adequate interest among the consumers.
2. Interest: - The consumers develop an interest in the product innovation and
they search for information about how the product innovation benefits them.
3. Evaluation: - In this stage, the consumers draw conclusions about the product
innovation and determine whether further information is necessary. This stage is
very crucial because it represents a mental trail of product innovation. When
the evaluation is satisfactory, the consumers will actually try the new product.
But if unsatisfactory, the new product will be rejected.
4. Trail: - In this stage, the consumers use the product on a limited scale. The
experience of the consumers in this stage is very crucial for adoption or
rejection.
5. Adoption/Rejection: - Depending upon the trail purchases and evaluation of
new products, consumers decide to use the new product on full scale they
decide to select or they decide to reject.
This model is quite useful because of its simplicity. The limitations of this
model are;
It does not adequately reflect the full complexity of the adoption process.
It does not adequately acknowledge the significant need of the problem
recognition stage of the adoption process.
It does not adequately provide for the rejection of new product after its trail.
It does not include post purchase evaluation.
As a partial solution to these limitations, a modified adoption model is
available to marketers. The modified model is shown below.
Awareness I
Rejection

Rejection
Interest 2
Purchase
Direct product experience
(consequences)

Evaluation 3

Product evaluation
(information)

Trail 4
Adoption

This partial modified model takes into account two additional stages between
trail and adoption, namely, direct product experience (consequences) and product
evaluation confirmation. The above modified model is partial. To overcome the
limitations of the original model completely, the upgraded model is a decision
making model, which is called innovation decision process, consisting of following
5 stages.
1. Knowledge: - Here the consumer is exposed to the innovation and gains some
understanding of the innovation.
2. Persuasion: - In this stage, the consumer forms favorable or unfavorable
attitude towards the innovation.
3. Decision Stage: - In this stage, the consumer engages in activities that leads to
a choice either to adopt or reject.
4. Implementation: - In this stage, the consumers put the innovation into use.
5. Confirmation: - In this stage, the consumer looks for reinforcement. If he gets
positive reinforcement, he will ultimately adopts the product but if he gets a
negative reinforcement, he will reject the new product.
The following chart gives the operation of the innovation decision process.
Prior
conditions
1. Previous
practice

Knowledge

Persuasio
n

Decision

Implementation

Confirmation

2. Felt need /
problems
3. Innovations.

Characteristics of
Decision making unit
4. Norms of the
1. Socioeconomic
social system
characteristics.
2. Personality
variables.
3. Communication
behavior

Perceived
characteristics of
the innovation
1. Relative
advantage.
2. Compatibility
3. Complexity
4. Trailability
5. Observability

Adoption

Continued Adoption
Later Adoption
Discontinuance

Rejection

Continued Rejection

The model suggests that a number of prior conditions and characteristics of

the decision making unit influence the reception of information about the product
innovation during the knowledge stage.
At the persuasion stage, the consumer is influenced by communication
channels and also by the perceived characteristics of the innovation. During
decision stage, consumer will assess the innovation and decide whether to adopt it
or reject it. During implementation stage, the consumer puts the innovation to use.
During the last stage, i.e. confirmation, the consumer evaluates his/her purchase
experiences, looks for support for his/her behavior and decides to
continue/discontinue using the product.

PROFILE OF CONSUMER INNOVATORS

Consumer innovators are those relatively small groups of consumers who are
the earliest purchase of the new product.
Consumer non-innovators are those who purchase none or only one of the
new products.

Consumer innovators are interested in the whole product category. They

seek more information than non-innovators about the new products from a number
of sources and media. There is an interface between opinion leaders and consumer
innovators. Consumer innovators also act as opinion leaders because they are
enthusiastic about new product and encourage others to try.
Characteristics of Consumer Innovators
1. Personality Traits: Consumer innovators are less dogmatic than non-innovators.
They approach the new products or unfamiliar products with openness and
without anxiety.
Consumer innovators are also inner-directed, i.e. innovators rely on their
own values and standards when making a decision about new products.
They also seek variety and they tend to be brand switchers.
They are extroverts, liberal and able to deal with complex or ambiguous
stimuli.
They are creative, in the sense that, they are more receptive to unfamiliar
things to familiar things.
They are prone to optimum stimulation level.
They react favorably to informative or fact oriented advertising.
They perceive no risk or less risk in purchase of new products.
They are venture-some and because of this they likely to learn about
innovations earlier than others.
They are also subject to innovator buying cycle. The cycle is shown below.
Embracing innovations
Chasing the advances
Innovation fascination
Innovation satiation
Product accumulation in the closet
Cumulative innovation disappointment
Pace of innovation slows down
Innovation no more
(i.e. what I have got is good enough)
The cycle suggests that consumer innovators may end up as non-innovators
eventually.
They possess great need for uniqueness.
2. Purchase and Consumption Characteristics: They possess purchase and usage traits that set them apart from noninnovators, e.g. they are less brand loyal and they switch the brands quite
often.
They are more likely to be deal-prone i.e. they are more susceptible to
sales promotion gimmicks.
They purchase larger quantities and consume more of the product than
non-innovators.
3. Social Characteristics: -

 Consumer innovators are more socially accepted than non-innovators.

They are more involved in social activities than non-innovators
4. Demographic Characteristics: Consumer innovators tend to be younger than non-innovators or late
adopters.
They have more formal education than non-innovators.
They have higher personal or family income than non-innovators.
They have higher occupational status than non-innovators.

CHARACTERISTICS OF INDIAN CONSUMERS

Demographic Characteristics
The starting point for understanding the nature and dynamics of any market
is its size in terms of number of consumers. For a marketer, the sheer number of
consumers in India spells magic. India has around 98crore population and 77% live
in villages and only 23% live in towns. 51.6% are males and 48.4% females. 36%
of people are capable of reading and writing. Only 33% are working to support the
majority. These vital statistics have important implications for marketer, e.g. cloths
for men and women are dissimilar with some exceptions and as a marketing
manager you should know the total size of the market. Similarly, many personal
care products such as cosmetics are used by women are absolutely different from
those used by men. Marketing of products like newspapers and magazines
depends on the rate of literacy. 39.5% of countrys population consists of children
upto 14 years of age. This implies that their a vast potential for children. Besides
knowing the age, sex, and educational characteristics, the marketer should also
know where they are located. 77% of population lives in villages and this implies
that there is a vast potential in the rural market. In fact, the rural market in India is
increasing at a faster rate and attracted entry of MNCs.
Income and Consumption Characteristics
It is not enough to merely know that there are a large number of consumers
and it is equally critical to find out whether or not they have ability to purchase.
The per capita income reflects a 3 fold increase over the decade which means the
disposable income is increasing at the rate of 14% and majority of income is spent
on food. This implies there is a good market for food items. Many urban families
have a tendency to eat outside the house on any one day of the week. 10.8% of
the population spends more on clothing and footwear.
Geographic Characteristics
India is a geographically vast country spread over 34 lakh sq.kms. and
administratively divided into 26 states and union territories. It is impossible to any
marketer to ensure that product is easily available in all parts of the country, all
the time. However, it is significant to know the number of cities and villages for
segmentation purposes. Since 77% of the population lives in villages, the
marketers have to reach rural consumers. According to HTA index, there is
considerable scope for tapping rural markets in South and urban markets in North.
Socio-Cultural Characteristics
All our decisions on purchase and consumption are strongly influenced by the
society in which we live and also by the social customs, traditions, values and
social class. India is a secular country inhibited by people of many religions. 82 %
are Hindus, 11.4% Muslims and 6.5% consists of Christians, Sikhs, Buddhists and
Jains. Each religion prescribes its code of conduct regarding what to eat, what to
wear and the type of behavior. The religious norms exert a strong influence on

consumer behavior, e.g. Hindus do not eat beef and majority of them are
vegetarians. Therefore beef and meat products have limited appeal to Hindus
whereas such products do well in the markets dominated by Muslims and
Christians. The Sikh religion prohibits the use of tobacco and haircuts. Thus, there
is no need for cigars, cigarettes, beedies, and barbers in markets for Sikhs. Each
religion has its own important festivals and in festivals people spend lot of money
on buying new cloths, sweets and a host of gift items for friends and relatives. For
the marketer these festivals are paradise and good time for introducing new
products and new packages including festive gift packaging. India is divided into 4
geographic regions, North, South, East and West and we find there are distinct
patterns of consumption in each region. For instance, milk and milk products do
well in North but not in South. In North India, Vanaspati is famous, whereas in
South Groundnut oil and in West Bengal, people prefer mustard oil. These
differences influence the formulation of marketing strategy. In terms of social
characteristics, India is contrast when compared to West. In India, lower-middle
and lower-lower social classes are dominating. However the middle class market is
increasing enormously.