Consumer Behaviour

PHI Learning
UNDERSTANDING
CONSUMER BEHAVIOUR
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
CONSUMERBEHAVIOUR
Consumer behaviour entails the

totality of consumers decision
involvedinacquiring,consumingand
disposing of goods and services, as
well as making use of experiences
andideas.
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ConsumerBehaviour isaComplexDynamicProcess
ConsumersPerspective
MarketersPerspective
Prepurchase
issues
Purchase
issues
Postpurchase
issues
Eachstageposesvariedissuesandofferssubsequentchallengesforthemarketer.
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PrepurchaseChallengesfortheMarketer
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Howareconsumers attitudestowardsproductsformedand/orchanged?
Changingconsumer
demographics
Accesstomore
choiceofbrands/
products
Consumer
behaviour
Culturalinfluences
onconsumer
behaviour
Thecreationand
diffusionof
consumerculture
PsychologicalFactors
Consumerinvolvement
Consumermotivation
Consumersperception
PersonalFactors
Personalityandlifestyle
Familylifecycle
SocialFactors
Referencegroups
Family
Consumerage,
sex,socialclass
Subcultures
Itisessentialforthemarketertounderstandhoweachofthese factorsinfluencesconsumersbuyingdecision.
Hecanthenformulatestrategiesinlinewithcustomerneedsand demands.
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Howdopsychologicalfactorsaffecttheconsumerspurchasedecision?
Changingconsumerperception
Motivationthesecretof
energy
LearningSuperioraftersaleservice
BeliefTATAsignifiestrust
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Howdopersonalfactorsaffecttheconsumerspurchasedecision?(Contd.)
Lifestyle
SelfConceptDefinitelymale
GenderTargetingthemale
AgeTargetingtheyouth
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Howdosocialfactorsaffecttheconsumerspurchasedecision?
ReferenceGroupIbankers
Phone
InfluenceofFamily
Status Symbol
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Howdoculturalfactorsaffecttheconsumerspurchasedecision?
Subculture:TargetingtheFullofLife
TargetingonthebasisofCulture
SocialClass
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Whatcues/inferencesdoconsumersusetochooseandinferwhich
brand/productissuperiortoothers?
Theextentofinformationsearchdependson:
Motivation,abilityandopportunity.
Howextensivethesearchisforhighinvolvement,highriskproducts.
Consumerdemographyandproducttype.
Themarketerneedstoselecttherightsourceforinformationtoreachthe
targetconsumer.
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VariousSourcesofInformationtheMarketercanTap
Radio
Transport
Events
Internet
Outdoor
SMS
Utilities
Gaming
Sport
Podcasts
TV
Magazines
Newspapers
WordofMouth
Posters
Directmailers
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PurchaseTimeChallengesfortheMarketer
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Howdosituationalfactorsaffectconsumerspurchasedecision?
Whentopurchase
ThreePossibilitiesin
ConsumerPurchase
Decision
Wheretopurchase
Howtopurchase
InfluencingFactors:
StoreatmosphereDisplay,music,fragrance
TimepressurePeakoroffseason
Pleasantnessofshoppingexperience
Schemes
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PostpurchaseChallengesfortheMarketer
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Whatdetermineswhetheraconsumerwillbesatisfiedwithabrandchoiceand
whetherhewillbuyitagain?
Afterbuyingaproduct,theconsumercomparesitwithhis
expectationsandiseithersatisfiedordissatisfied.
Satisfactionordissatisfactionaffects:
Consumervalueperceptions
Consumercommunications
Repeatpurchasebehaviour
MarketersusevariousstrategiestopositivelyinfluenceconsumersPostpurchasebehaviour
Postpurchase
Service
Feedbackfrom
Consumer
Loyalty
Programmes
Advertisements
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ThankYou
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ConsumerMotivation
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WhatisMotivation?
9 Motivation refers to an activated state of
needs within a person that leads to goaldirected behaviour.
Types of Needs
Innate or learned
Expressive (emotional)
Utilitarian (practical and functional)
Hedonistic
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Maslows HierarchyofNeeds
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CharacteristicsofNeeds
Needs:
Aredynamic.
Havehierarchy.
Canbeinternallyandexternallyaroused.
Canconflict.
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MotivationalConflictand
NeedPriorities
Satisfying a particular need often comes at the
expense of another need.
These trade-offs cause motivational conflict.
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TypesofMotivationalConflict
Approach-approach: deciding between two desirable
options
Avoidance-avoidance: deciding between two
undesirable options
Approach-avoidance: behaviour has both positive
and negative consequences.
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ConsumerMotivation
Represents the drive to satisfy both physiological
and psychological needs through product
purchase and consumption.
It gives insights into why people buy certain
products. Stems from consumer needs: industries
have been built around basic human needs.
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MotivatedPurchase
Conspicuous consumption: Purchases motivated
to some extent by the desire to show other people
how successful they are.
Companies reinforce the consumer motivations
notion that products enable users to communicate
their social status.
In general, marketers try to create an image or
personality for their brands.
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Motivation
ConsumerBehaviour
Motivation signifiestheprocessesthatcauseconsumersto
behaveastheydo,involvingneeds,goalsanddrives.
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ModeloftheMotivationProcess
Previous
learning
Unfulfilled
need,want
anddesire
Tension
Drive
Behaviour
Goal/Need
fulfillment
Cognitive
processes
Tension
reduction
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Needs/Wants
Beliefs
AModelofConsumerMotivation
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Emerging Trend
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Skin care is increasingly

becoming more important to
men
Emotional Needs
Years for success in his career

Feels he deserves better
quality products.
Tries to upgrade his lifestyle.
Key Influencers
Celebrity endorsers
Sportsmen (cricketers),
prominent businessmen
WOM, friends
Likes
Just bought his first new bike

(TVS Apache) and a new mobile
(Nokia N Series).
Shops for clothes, shoes, etc. often
in malls and shopping complexes.
Often eats out (with friends).
Likes to visit pubs and discos.
Receptivity
Online needs are high

Low towards mass media
vehicles
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WhatareHisNeeds/Motivations?
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Maslows Hierarchy of Needs
Offline
Ability to develop skills and

fulfil ones potential
Self-respect and ability to earn respect of

others & contribute to society
Ability to give and receive love; feeling

of belonging to a group
Protection from crimes; sense of

living in fair and just society
Food, clothing,
shelter, health
Online
SelfActualization
Self-Esteem
Ability to take on a community role that

develops skills and opens up new opportunities
Ability to contribute to the community and

be recognized for those contributions
Social
Security and Safety
Physiological
Belonging to the community as a whole

and to sub-groups within the community
Protection from hacking; ability to

maintain varying levels of privacy
Access to computer
and Internet

SOURCE: Amy Jo Kims Community Building on the Web (Peachpit, 2000)
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Motivational Intensity
Depends on: How strongly consumers are motivated
to satisfy a particular need.
Importance of
Involvement: Degree to which an object or behaviour
is personally relevant.
Motivational intensity and involvement determine
the amount of effort consumers exert in satisfying
needs.
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TheChallengeofUnderstanding
ConsumerMotivation
Reasons underlying consumer motivation are not always obvious.
Research is necessary to discover real motivations behind
behaviours.
Consumers at times do not always want to disclose real reasons
for their particular choice or actions.
Consumers do not always know why they do what they do:
unconscious motivation.
Motivations change over time.
Let us take an example of car buying and its underlying
motivations.
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WhyAutomobile?
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AutomotiveSector
ClassificationoftheAutomotiveIndustry
Commercialvehicles(TrucksandBuses)
PassengerCarsandMultiutilityvehicles
Twowheelers
Threewheelers
Tractors
Forexplainingmotivations,wewillconcentrateon
passengercarsandmultiutilityvehicles.
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AutomotiveSectorDemandDrivers
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MeansendChainsStructure
Attributes:Descriptivefeaturesthatcharacterizea
product.
Benefits:Personalbeliefsandmeaningsattachedor
derivedfromvariousproductattributes.
Values:Stableandenduringpersonalgoals.
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Issuesatypicalconsumerconsiders
whenhechoosesacar
Reliability/Durability
Interiordesignandcomfort
FuelEfficiencyorMileage
Recommendationofpeergroup,Word
ofMouth(WOM)anddealersopinion
Manufacturersreputation,
Brandnameanditsvalue
Exteriorappearanceand
aesthetics
Petrolvs.Dieselmodel
aboutservicingandoverall
performance.
Servicingandthedeal offered
PassengerandLuggagecarryingcapacity
Size,length,machinecapacity
PriceandResaleValueofoldcarmodel
andTermsofPayment
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AutomobilePurchase:DemographicFactors
Family
life
cycle
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Committed/
recentlymarried
Bachelor
Impactoffamilylifecycleon
consumerneed/preference
Marriedwith
children
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FamilyLifeCycle
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Thingsdonotchange,
wechange
HENRYDAVIDTHOREAU
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Let us unlock some key trends

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Howtheneedsofthesameconsumerchange
ashemovesalongthefamilylifecycle
Bachelorhood Married Marriedwith
children Nondependentchildren
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InformationGathering
Talkingtodealers
Talkingtofriends/Colleagues/Relatives
Inspectingthecar
Carads
Talkingtomechanics
Carbrochures/Articles/Programmes
Internet
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Studythevarioussourcesofinformation,
gatherandfindthereliabilityofvarious
informationsources.
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MajorMotivators/Triggers
Increasingfamilysneed
Needtotravellongdistance
Rational
Factors
Problemwitholdcar
Status/Prestige
Emotional
Factors
Promotion
Peerpressure
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IntegrativeChoice:Purchasedecisionis
influencedbyamixofrationaland
emotionalfactors.
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SocialInfluences
CombinedeffectsofOccupation,EducationandIncomelevels
Conspicuousandcompensatoryconsumptiontrends
Certainnormsandvaluesarecreatedbysocialinfluences.
Soitisessentialtofindouthowthesesocialinfluences
(occupation,educationandincomeetc.)affectthe
consumermotivationinthepurchaseofanautomobile.
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Sex
Menandwomenpossessuniquepersonalitytraits,
interests,knowledgeandjudgmentcapabilities.
Findouthowthemotivatingfactorsdifferbasedonthe
genderoftheconsumer.
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ThankYou.
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Consumer Perception
Consumer
Perception
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Perception is Reality
LOUIS CHESKIN
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z
z
Perception
Process by which sensations are selected,
organized, and interpreted
Adding meaning to raw sensations
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Elements of Perception
z
z
z
z
Sensation
Absolute threshold
Differential threshold
Subliminal threshold
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zSensation
z
Immediate response of our

sensory receptors
z eyes, ears, nose, mouth,
fingers
to basic stimuli
z such as light, colour,
sound, odour, and texture
z advertisements, brand
names, commercials, and
packages
depends on the sensitivity of
the individual
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The Absolute Threshold
The lowest level at which an individual can

experience a sensation.
The point which differentiates between
something and nothing.
Example: Absolute threshold of driver driving
on highway to notice billboard.
Adaptation: Getting used to certain sensation.
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Attention
z
The extent to which processing

activity is devoted to a particular
stimulus
z
Competition for our attention

z 3,500 ad info pieces per day
z Multitasking
Marketers need to break through
the clutter
z Microsofts butterfly decals on
sidewalks
z 3D logos on cricket grounds
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The Differential Threshold
The minimal detectable difference between two

similar stimuli (just noticeable difference).
Its not at all the absolute difference.
Its an amount relative to the intensity of the first
stimulus.
The stronger the initial stimulus, the greater the
additional intensity needed for second stimulus to be
perceived as differentiated.
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Marketing Applications of the JND

z
Need to determine the

relevant JND for the products
so that
z
z
negative changes are not

readily discernible to the public.
product improvements are
quite visible to consumers.
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Gradual Changes in
Brand Name
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Subliminal
Perception
Perception of very weak or

rapid stimuli received below
the level of conscious
awareness
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Perceptual Selection
z
Stimulus Selection Factors

z
Webers Law
z Differences in size, colour, position, and novelty
Interpretation: assigned meaning to stimuli
z Schema leads to stimulus evaluation
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Webers Law
A theory concerning the

perceived
differentiation
between similar stimuli of
varying intensities (i.e. the
stronger the initial stimulus,
the greater the additional
intensity needed for the
second stimulus to be
perceived as different).
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Perceptual Selection
z
Depends on two major

factors
z
z
Consumers previous
experience (expectations)
Consumers motives
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Some Marketing Variables

Influencing Consumer Perception
z
z
z
z
z
z
Nature of the product

Physical attributes of the
product
Package design
Brand name
Advertisements and
commercials
Position of an ad
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Concepts Concerning Selective Perception
z
z
z
z
Selective exposure
Selective attention
Perceptual defense
Perceptual blocking
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Stimulus Organization
Stimulus interpretation is associated with other
related events, sensations, or images
Gestalt: The whole is greater than the sum of its
parts.
The Closure PrinciplePeople tend to perceive
an incomplete picture as complete.
The Principle of SimilarityGroups objects share
similar characteristics.
The FigureGround PrincipleOne part of the
stimulus will dominate (the figure/background).
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Gestalt Laws of Grouping

The primary purpose of the visual system is the
recognition of objects from basic visual elements.
The objects are seen as more than a sum of the parts,
and the critical problem facing the visual system is how
to group the elements to form objects.
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Demonstration of the Importance of

Objects over Elements
When elements are arranged in groups that define an object,
we tend to see the object and not the elements.
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Law of Proximity
Things that are relatively close to one another tend to be
grouped together.
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The Law of Similarity

Items that look similar will be seen as parts of the same form.
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The Law of Good Continuation

The tendency to perceive unseen parts of a pattern as
continuing in a predictable and simple manner.
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The Law of Closure

Often, an object is partly occluded by other objects in our
environment, and the visual system must fill in the
missing information.
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A Related Phenomenon Illusory Contours
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The Law of Common Fate

Elements of visual perception that move together
are seen as forming a common object.
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Common Fate Example - 1
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Figuring out what the objects are

The Gestalt principles help us to understand how we
figure out what the objects are, and how to interpret them.
However, they do not explain how we figure out what an
object is once we realize it is an object.
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Figure and Ground
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The Figure-Ground Principle
This billboard for Wrangler jeans makes creative

use of the figure-ground principle.
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Perceptual Positioning
z
Brand perceptions
=functional attributes + symbolic attributes
Perceptual map
z
Companys own strengths and weaknesses in

comparison with competitors
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Excellent product
quality
Perceptual Map
High
value for
money
Low
value for
money
Low product
quality
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Thank You
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ConsumerPerception
y Consumerselects,organizesandinterpretsstimuli
intoameaningfulandcoherentpictureoftheworld.
y HowweviewtheWorldaroundus!
y Consumersmakedecisionsbasedonwhatthey
perceiveratherthanwhattheobjectiverealityis.
y Consumersseewhattheywanttosee!
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ElementsofPerception
y Sensation:StimuliandIntensity
y Absolutethreshold(e.g.seeinganad)
y Sensoryadaptation(Phenomenonofgettingusedto),
e.g.changeadcampaigns,package
y DifferentialthresholdJND(WebersLaw);product
improvementdecisions
y Negativechanges(Pricerise,size,qualityreductions,
etc.)
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SelectivePerceptions
y Natureofthestimulus:Whatyouwanttoseeisbased
onwhatyourmotivesareatthattime.
y Selectiveexposure:Pleasantads
y Expectationsandpreviousexperience
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PerceivedRisk
y Anuncertaintyariseswhenconsumerscannot
foreseetheconsequencesoftheirpurchasedecisions.
y Dependsontheperson,the product,andthepurchase
situation.
y Highriskperceiverscategorizedasnarrow
categorizers.
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BroadCategories
y Productcategoryperceivedrisk,e.g.tobuyadigital
cameraornot.
y Productspecificperceivedrisk,e.g.whichbrandof
cameratobuy.
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TypesofPerceivedRisk
y Functionalrisk:Theriskthattheproductwillnot
performasexpected.
WillthecellphoneIboughtworkforthegiven
warrantyperiod?
y Physicalrisk:Therisktoselfandothersthatthe
productmaypose.
Willthecellphonedamagemyhealth?Isitsafeto
use?
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y Financialrisk:Theriskthattheproductwillnot
beworthitsprice.
Willthepriceofmobile/laptopdropafterIbuyit?
y Socialrisk:Theriskthatapoorproductchoice
mayresultinsomeformofsocialembarrassment.
Willmymobilelooklikeanoutdatedmodel?
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y Psychologicalrisk:TheRiskthatapoorproductchoice
willbruisetheconsumersego.
Afterbuyingthisproduct,willmypeergroupmembers
laughthatitisawrongchoice?
y Timerisk:Theriskthatthetimespentinproductsearch
maybewastediftheproductdoesnotperformas
expected.
Ihavespentsomuchtimeinbuyinganewcamera/laptop.
Wasitworthorawasteoftime?
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HowCustomersHandleRisk
y Seekinformation,
wordofmouth,newspapers
y Buyknownbrands/becomeloyal,
e.g.buyAnnapurna Atta.
y SelectbyCompany/Brandimage,
e.g.buySony TV/Nokia Cellphones.
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HowCustomersHandleRisk(cont.)
y RelyonStoreimage,e.g.buyingfromknownshops.
y Buythemostexpensivemodel.
y Seekreassurance
(moneybackguarantees,prepurchasetrial,warranty
period).
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ApplicationoftheConcept
y Findoutthenatureofriskcustomersperceivebefore
purchasingnewproducts.
y Removethenatureofanxietyofcustomers.
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Thank You
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Consumer
Beliefs
Consumer
Attitudes
Consumer
Intentions
Consumer
Behaviour
Consumer
Feelings
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Beliefs are the knowledge and inferences that a consumer has

about products/brands and possible benefits derived from using
them.
Beliefs result from cognitive learning.
Attribute importance springs from:
A persons assessment of the significance of an attribute.

The amount of attention directed to it.
A persons self-concept, advertising, and the salience of the
attribute can influence the attention focussed on it.
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Brand distinctiveness: Consumer perception of a brand and

companys
marketing effort leads to developing certain
personality of each brand, e.g. Tanishq Jewellery.
Inferential beliefs: Information about one product of a company
makes consumers to form belief about another, price-quality
beliefs, partially comparative pricing, e.g. Akai TV, Big Bazaar
retail.
Consumer confusion: Insufficient/conflicting information,
mistaken identity, irrelevant ad slogan/appeal, change in the
brands key focus and positioning, e.g. Marie biscuits (Britannia,
Parle).
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Beliefs
Companies or Retailers mark up prices before
putting them up on sale.
Discounts offered by reputed companies are
genuine reduction in prices.
Examples
Bargaining behaviour
Wait for the discount
announcement
Celebrities are admired by their followers though Success of soaps and

they do not use the product they endorse.
cosmetics
Lower price generally means inferior quality.
Higher priced brands are not superior in quality
by the same degree of multiplier.
Positioning at a lower quality

end, as done by Haier,
Lenovo
Shopping in a big departmental store saves

money.
Big Bazaar, Subhiksha
Packaged ready-to-eat food items marketed in

India are generally not fresh.
Limited success of MTR, ITC

foods
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As part of Advertising Experience: Influence on viewers

moods, attitudes, recall, affinity,
Examples: Hamara Bajaj Campaign, Amul ButterUtterly, butterly
delicious
As part of Shopping Experience: Influence of availability,
environment/ambience
Examples: Maruti service centres, Cafe Coffee Day, Brista coffee
As part of Consumption Experience: Influence consumers
consumption evaluation
Examples: Vanilla Coke, Blue Pepsi, Asian Paints
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Desirable Attributes create positive attitudes

Example: Health drinks
Attitudes are:
a kind of feeling for or against a stimulus;

stored in long-term memory;
the cognitive knowledge about an object;
predicted by beliefs in high involvement purchase
situations.
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Utilitarian function: Used to obtain rewards and avoid

punishments
Ego-defensive function: Self-protection
Example: mouthwash
Knowledge function: Simplifies decisions
Example: Forming of loyalty to certain brands
Value-expressive function: Expresses identity to
others
Example: use of (IIM-C) labelled t-shirts
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Direct formation
Corresponds to the decision-making perspective and
cognitive learning.
Linked to the experiential perspective.
Classical conditioning/Associative learning: Positive
affect is attached to objectusing a jingle.
Mere exposurefrequent exposure to stimulus
increases ones desire for it.
Environmental forces
Example: design of the physical environment, cafes
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Decision-making hierarchies:
High involvement: beliefs
Low involvement: beliefs
Experiential hierarchy:
Affect
behaviour
attitudes
behaviour
behaviour
attitudes
beliefs
Behavioural influence hierarchy:

Behaviour
beliefs
affect
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Changing beliefs: Comparative advertising

Example: Sugar Free, Saffola oil (less cholesterol)
Changing attribute importance: Identification of new,
improved attributes
Example: Washing powders, soaps
Changing ideal points
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BI
A
SN
act
A
=
=
act
+ SN
i
j
b ie
NB
i
j
MC
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Changing Consumer Attitudes: Changing

Beliefs
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Firms hope that changing beliefs about products will result in more
favourable product attitudes and influence what consumers buy.
If beliefs are false, they should be brought into harmony with

reality and then stabilized and reinforced.
If beliefs are accurate, it may be necessary to change the product.
Comparative advertising can hurt beliefs about a competitive

brand
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Attribute Importance
9
Changing an attributes importance is more difficult than

changing a belief.
How is a brand perceived relative to ideal performance?
Increasing attribute importance is desirable when the

competitors brand is farther from the ideal point than
your product.
Firms may add a new attribute which necessitated NPD or product

revision.
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Ideal Points
Altering consumers preferences for

what the Ideal product should look like.
It is far more difficult than any other

approach in changing consumers,
attitudes toward brand and product.
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The best way to capture customer is to adjust

with his or her desirable situation and
favourable attitudes.
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Post-purchase
Action
Attitude
Learning
Sequential model of
purchase and repurchase
behaviour in marketing
Perception
Attention
Exposure
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Consumer Behaviour
Involvement & Emotion
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Consumer Involvement
Cars
Furniture
Apparels
Perfume
Toothpaste
Salt
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Involvement
What is Involvement ?
Perceived relevance of the object of consideration based on
inherent needs, values and interests
A general level of interest in or concern about an object or
activity without reference to a specific position
Types of Involvement
Situational (Purchase-Decision) Involvement
The level of concern/care the consumer brings to bear on a
particular purchase decision
Enduring Involvement
The level of interest the buyer maintains for a class of
product/activity, well beyond the specific purchase
situation
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Involvement (Cont.)
Enduring involvement is related to the way one
views oneself and is often linked to Family,
Group and Lifestyle (Psychographic) variables.
Perceived risk is related to purchase
involvement.
In Low Involvement situations:
In High Involvement situations:
Behaviour
Attitudes
Attitudes
Behaviour
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Purchase Involvement
Is Effected by:
The Product
Class
The Individual
Involvement
The Situation
Communication
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Consumer Product Involvement

Consumer Characteristics
Social concepts
Personality needs
Expertise
Intrinsic Self-relevance
(Goals and Values)
Product Characteristics
Time commitment
Price
Symbolic meanings
Potential for harm
Potential for poor performance
Situational context
Purchase situation
Intended-use situation
Time pressure
Social environment
Physical environment
INVOLVEMENT
Interpretation
and
Integration process
Situational Self-relevance
(Consequences and Values)
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Means-End Basis for Involvement
PRODUCT KNOWLEDGE
SELF KNOWLEDGE
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Enduring Involvement Characteristics

High
Low
Many Attributes
Evaluated
Attributes are less

important (very few used)
Narrow Latitude of
Acceptance
Wide Latitude of
Acceptance
Small Evoked Set
Large Evoked Set
True Brand Loyalty
Spurious Brand Loyalty

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Enduring Involvement Characteristics

High
Low
Central Route Arguments
Peripheral Route Arguments
Substantive Messages
(reduce counter-arguments)
Reminder Ads and Ads with

Little Substance
Fewer Ads but packed with

Information
Frequent AdsLittle or no
Contentonly a few points
Price may be Relatively Less

Important
Price may be Relatively Less

Important
Info Search is Active.
Info Search is Passive.
134
Low Involvement
PHI Learning
Selective
Problem Recognition
Information Search
Internal
(Limited)
Analysis of
Alternatives
Purchase Decision
No Dissonance
Post-Purchase
Behaviour
135
PHI Learning
Medium Involvement
Generic
Problem Recognition
Information Search
Few
Simple
Internal
External
(Limited)
Analysis of
Alternatives
Purchase Decision
Post-Purchase
Behaviour
No Dissonance
136
PHI Learning
High Involvement
Generic
Problem Recognition
Information Search
Many
Complex
Internal
External
Analysis of
Alternatives
Purchase Decision
Post-Purchase
Behaviour
Dissonance
137
PHI Learning
Effect of Product Knowledge and

Involvement in Decision Making
INVOLVEMENT
LOW
HIGH
Adequate product
at minimum effort
Choose the
best product.
Very few concrete

attributes
Unclear about
criteria.
Motivation
Satisfactory
product
Optimize satisfaction.
Choice Criteria
Very few abstract

criteria
Use many search

and decision tools.
Motivation
KNOWLEDGE
LOW
Choice Criteria
HIGH
138
PHI Learning
Creative Tactics
INVOLVEMENT
MOTIVATION
LOW
INFORMATIONAL
(ve)
TRANSFORMATIONAL
(+ve)
Provide one or
two clear
benefits.
Emotional
authenticity of
execution and
liking the Ad.
HIGH
Provide believable information.

Dont overclaim.
Consumer must personally

identify with feelings created.
139
PHI Learning
High Enduring Involvement Customers

Develop product class, brand expertise.
Search for information in an ongoing manner.
Take special interest in product care.
Augment/upgrade products; purchase ad-ons and
complementary products.
Become opinion leaders/brand advocates; build close
bonds with the company.
May participate in new product idea generation.
140
PHI Learning
A Model of Emotion-driven Choice
Symbolic
meaning of
consumption
Self
Pride
Status
Anxiety
Social
Motivation
Preference formation
Justification
141
PHI Learning
The Psychology of a BRAND

Domain
BRAND
CONSUMER
Symbolic meaning
Social language of
the Brand
Self-enhancement
Self-Image
Personality
Authenticity
Transformation of
experience
Reassurance
Safe choice
Emotional Realm
Easy choice
Functional Realm
Keeping promises of
performance
Certainty in an
uncertain world
Replication of
satisfaction
142
PHI Learning
Brand Strategy Alternatives

High Involvement
Symbolic
Brands
Cognition
Emotions
Functional
Brands
Low Involvement
143
PHI Learning
Brand Trust and Confidence

Risk
Perception
Symbolic Brands
Functional Brands
144
PHI Learning
Positioning a Brand
Why?
For whom?
When?
Against whom?
145
PHI Learning
Brand Identity Prism

Picture of the Sender
y
Ph
ue
q
i
s
Pe
rs
Relationship
Re
fle
ctio
n
on
ali t
y
Culture
Se
ge
a
m
lf-I
Picture of the Recipient

146
PHI Learning
Building a Brand in Consumers

Mind-space
Trust
Pe
rce
pti
on
o
fQ
ua
lity
Bra
nd
A
wa
re
147
ne
ss
PHI Learning
Thank You
148
PHI Learning
Consumer
Learning
Dissonance
and
Experience
149
PHI Learning
Consumer Learning
Itisthecognitiveprocessofacquiringskilland
knowledge;learningistheacquisitionand
developmentofmemoriesandbehaviours,
includingskills,knowledge,understanding,
values,andwisdom.
150
PHI Learning
Importance of Learning
Marketersmustteachconsumers:
9
9
9
9
9
wheretobuy
bywhomandforwhomthepurchaseistobedone
howtouse,feelandperceivetheproduct
howtomaintaintheproduct
howtodisposeofproducts
151
PHI Learning
Learning Taxonomy
Learning
152
PHI Learning
Learning Theories
Behavioural Theories
Theories based on the
premise that learning
takes place as a result of
observable responses to
external stimuli. Also
known
as
stimulus
responsetheory.
CognitiveTheories
Atheoryoflearningbased
on mental information
processing, often in
response to problem
solving.
153
PHI Learning
Learning Processes
Intentional
Incidental
Learning acquired as a Learning acquired by
result of a careful accident or without
searchforinformation. mucheffort.
154
PHI Learning
Elements of Learning Theories

1.
2.
3.
4.
Motivation
Cues
Response
Reinforcement
Stimulus
Drive
Response
Reinforcement
155
PHI Learning
Reinforcement
Apositiveornegative
outcomethat
influencesthe
likelihood thata
specificbehaviour will
berepeatedinthe
futureinresponseto
aparticularcueor
stimulus.
156
PHI Learning
Stimulus
Generalization
Theinability to
perceivedifferences
betweenslightly
dissimilarstimuli.
157
PHI Learning
Reinforcement
Positive
Reinforcement
Positiveoutcomesthat
strengthenthe
likelihoodofaspecific
response
Example: Adshowing
beautifulhairasa
reinforcementtobuy
shampoo
Negative
Reinforcement
Unpleasantornegative
outcomesthatserveto
encourageaspecific
behaviour
Example: Adshowing
wrinkledskinas
reinforcementtobuyskin
cream
158
PHI Learning
Other Concepts in Reinforcement
Punishment
Choosereinforcementratherthanpunishment.
Extinction
Combatwithconsumersatisfaction.
Forgetting
Combatwithrepetition.
159
PHI Learning
Observational
Learning
A process by which
individuals observe the
behaviour ofothers,and
consequences of such
behaviour. Also known
asmodelling orvicarious
learning.
160
PHI Learning
Components Of Observational Learning
Attention
Retention
Production
Process
Motivation
ObservationalLearning
161
PHI Learning
Cognitive
Learning
Theory
Holds that the kind

of
learning
most
characteristicofhuman
beings is problem
solving, which enables
individuals to gain
somecontrolovertheir
environment.
162
PHI Learning
Classical
Conditioning
A behavioural learning
theory, according to
which a stimulus is
paired with another
stimulus that elicits a
known response which
serves to produce the
same response when
used alone.
163
PHI Learning
Models of Classical Conditioning
164
PHI Learning
Instrumental
(Operant)
Conditioning
A behavioural theory of
learning based on
trial-and-error process,
with habits forced as the
result of positive
experiences
(reinforcement)
resulting from certain
responses or behaviours.
165
PHI Learning
Operant Conditioning (Cont.)

is the process in which the frequency of
occurrenceofabitofbehaviour ismodifiedby
theconsequencesofthebehaviour.
If positively reinforced, the likelihood of the
behaviour beingrepeatedincreases.
If punished, the likelihood of the behaviour
beingrepeateddecreases.
166
PHI Learning
Operant (or instrumental) conditioning (Cont.)
Stimulus
Response
Reward
Can you explain

habit?
Reinforcement
167
PHI Learning
Instrumental (Operant) Conditioning (Cont.)
Reinforcement
Behaviour
Likelihood
OfBehaviour
Negative
Reinforcement
NOT the
samething!
Punishment
Likelihood
OfBehaviour
168
PHI Learning
Reinforcement: An Example
Youeatacake(behaviour)
>Delicious(reward)
>morelikelytoeatmore
cakesonotheroccasions
169
PHI Learning
Extinction
Behaviour whichisnot
reinforcedtendsto
becomeextinct
gradually.
170
PHI Learning
Ehrenberg
ATR
Model
Awareness
Trial
Reinforcement
Repeat purchase
Advertising
Note: Thethicker(darker)linesdenotethe
majoreffects.
171
PHI Learning
Trial
Learning/Experience
Behavioural
Loyalty
Repeat purchasing
Commitment
Involvement
Attitudinal
Loyalty
Loyalty
172
PHI Learning
Brand Loyalty vs. Habit

Habit:theconsumerpicks
productwithoutmuch
thought,perhapsfor
convenience.
Loyalty: theconsumer
activelyseekstheproduct.
173
PHI Learning
Brand Loyalty
FunctionofThreeGroupsofInfluences
1. Consumerdrivers
2. Branddrivers
3. Socialdrivers
Fourtypesofloyalty
1.
2.
3.
4.
Noloyalty
Covetousloyalty
Inertialoyalty
Premiumloyalty
174
PHI Learning
Developing Brand Loyalty: Tricks and Traps

1. Productquality>satisfaction
2. Salespromotions
3. Stealingloyalconsumersawayfrom
others
4. Price
value
exclusiveness
175
PHI Learning
Memory
Shortterm(comparetoRAM>volatile)
mnemonicdevices
Longterm(comparetoharddisk> longer
indurationbutimperfectIrememberit
well)
STM
REHEARSAL
LTM
DECAY
176
PHI Learning
Retention
Informationisstoredin
longterm memory
Episodically:bytheorder
inwhichitisacquired
Semantically:accordingto
significantconcepts
Totalpackageofassociations
iscalledaschema.
177
PHI Learning
Role of Memory in Learning
Stages
1. Encode
2. Storage
3. Decodeandretrieval
178
PHI Learning
Recognition vs. Recall

Recognition
Rememberingwithstimulus
Recall/Retrieve
Rememberingwithoutstimulus
179
PHI Learning
The Cycle of Remembering

Learning
Short-term
Memory
Long-term
Memory
Retrievall
180
PHI Learning
Theconsumer
observesapositive
responsebytwo
teens.
181
PHI Learning
Information Processing
Relatestocognitiveabilityandthecomplexity
oftheinformation.
Individualsdifferinimagerytheirabilityto
formmentalimages,whichinfluencesrecall.
182
PHI Learning
Information Processing and Memory Stores
183
PHI Learning
Information Processing
Movementfromshorttermtolongterm
storage
dependson:
Rehearsalcognitivepractice
Encodingmemorysassociationsortheway
informationisstored.
184
PHI Learning
Experiential Marketing
IdentityRelated
Logo/Names
(NIKE)
ProductPresence
Design/Packaging
(FRAGRANCES)
CoBranding
Events/Sponsorships
(FEMINAMISSINDIA)
Communication/
Advertising
(TASTEOFINDIA)
ExperientialMarketing
Website/Electronic
Media
(ENCYCLOPEDIAS)
SpatialEnvironment
Retail/Office
(BARISTA)
185
PHI Learning
ConsumersDissonance
186
PHI Learning
CognitiveDissonance
Psychologicaldiscomfortcausedby
inconsistenciesamongapersonsbeliefs,
attitudes,andactions.
Variesinintensitybasedonimportanceofissue
anddegreeofinconsistency.
Inducesadrivestate toavoidorreduce
dissonancebychangingbeliefs,attitudes,or
behaviours andtherebyrestoreconsistency.
187
PHI Learning
WhytheDissonance?
188
PHI Learning
CausesofDissonance
y
y
y
y
y
y
Performancerisk
Physicalrisk(wearout)
Highfinancialcommitment
Highinvolvementlevel
Highsocialvisibility
Informationoverload
189
PHI Learning
IstheGrassGreeneron
theOtherSide?
Dissonancepredominantlypostpurchasebehaviour
Lackofconfidence(doubts)aboutthecorrectnessofa
priorpurchasedecisionandeffortstoreconciledoubts
Did I do the right
thing?
190
PHI Learning
ReactionstoDissonance
TheConsumereliminatingorreevaluatingoneofthecognitive
elements,orhisresponsibility,orcontrolovertheactordecision.
Informationcanbedeniedordistortedorforgottenintheservice
ofdissonancereduction.
Minimizingtheimportanceoftheissueordecisionthatledtothe
dissonantstate.
Newcognitiveelementscanbeaddedtosupportthedecision.
PotentialReactions
Returntheproduct.
Seekconfirmatoryinformation.
191
PHI Learning
Thank You.
192
PHI Learning
Communication and
Consumer Behaviour
193
PHI Learning
Direct Communication
194
PHI Learning
What is Communication?
A tool used by marketers to persuade consumers
to act in a desired way.
| Transmission of message from a sender to a
receiver via a medium of transmission.
| Modern technology is inducing tremendous
change in mass communication media.
|
195
PHI Learning
Basic Communication Model:
196
PHI Learning
The Sender
Initiator of a communication
| Formal sourceorganization
| Informal sourceA close friend, peer group or
relative who provides information or advice.
|
197
PHI Learning
The Receiver
|
A targeted prospect or a customer
Every receiver interprets the message in his/her

own perceptions and experiences.
Intermediary receiversThose who would specify

or prescribe the marketers products (Wholesalers,
retailers and distributors).
Unintended receiversShareholders, creditors,
suppliers, employees, bankers, and the local
community.
198
PHI Learning
The Medium
|
The communications channel
Impersonala mass media
InterpersonalFormal or Informal
Formalbetween a marketers agent (sales person)

and a customer
Informalbetween two or more people by mail, etc.
Classification of mass media

y
Print (Newspapers, magazines, billboards)
Broadcast (Radio, television)
Electronic (Internet )
199
PHI Learning
SocialMedia:Definition
Social media describes the online technologies and
practices that people use to share opinions, insights,
experiences, and perspectives with each other.
Social media can take many different forms, including
text, images, audio, and video.
Popular social media include blogs, message boards,
podcasts, wikis, and vlogs.
200
PHI Learning
Simply put:
Social Media refer
to people having
communication
online.
201
PHI Learning
202
PHI Learning
The Message
|
Verbal
Spoken or written
y Has more product specific information.
y
Non-verbal
A photograph, an illustration or a symbol
y Stays in the mind of a customer for long.
y
Generally a mix of verbal and non-verbal message

is preferred.
203
PHI Learning
Feedback
Permits the sender to reinforce, to change or to
modify the message so that it is understood in the
intended way.
| Common forms of feedback
|
Body language
y Facial gestures
y Verbal feedback
y
Feedback is essential and difficult to obtain in

impersonal communication.
204
PHI Learning
The Communication Process

Communication process involves the:
| Sender
| Receiver
| Medium
| Message
| Target Audience (the receivers)
| Feedbackthe receivers response
205
PHI Learning
Comprehensive Communication Model
206
PHI Learning
The Message Initiator (Source)

Issues with
Credibility
Credibility of Informal
Sources
| Credibility of Formal
Sources
| Credibility of
Spokespersons and
Endorsers
| Message Credibility
|
|
|
|
Sources include word of

mouth.
These sources are also
called opinion leaders.
Informal sources may
not always be credible.
207
PHI Learning

Issues with
Credibility
|
|
|
|
Sources
Credibility of Formal
Sources
Credibility of Spokespersons
and Endorsers
Message Credibility
|
|
Neutral sources have the

greatest credibility.
Source credibility judged on
past performance, reputation,
service, quality, spokespersons
image, retailers, and social
responsibility.
Institutional advertising used
to promote favourable company
image.
208
PHI Learning

Issues with
Credibility
|
Sources
Credibility of Formal
Sources
Credibility of
Spokespersons and
Endorsers
Message Credibility
Effectiveness related to:
The message
Synergy between the
endorser and the type of
product
y Demographic characteristics
of the endorser
y Corporate credibility
y Endorsement wording
y
y
209
PHI Learning
Maria Sharapova for Nike
210
PHI Learning

Issues with
Credibility
Sources
| Credibility of Formal
Sources
| Credibility of
Spokespersons and
Endorsers
| Message Credibility
|
|
|
|
Credibility of retailers
Reputation of the medium
that carries the ad
Consumers previous
experience with product
211
PHI Learning
The Target Audience (Receivers)

|
|
|
|
Personal characteristics and comprehension

Involvement and congruency
Mood
Barriers to communication
Selective exposure to messages
y Psychological noise
y
212
PHI Learning
FeedbackReceivers Response
Feedback should be gathered:
Promptly
y Accurately
y
213
PHI Learning
Advertising Effectiveness Research

Media and message exposure measures:
How many consumers received the message.
y Which consumers received the message.
y
214
PHI Learning
Advertising Effectiveness Research

(Cont.)
Message Attention and Interpretation

Physiological measures
y Theater tests
y Attitudinal measures
y
Message Recall Measures

y
Day-after recall
215
PHI Learning
Designing Persuasive Communications

|
Communications strategy
Must include objectives.
y Includes cognitive models.
y Newer models include perception, experience, and memory.
y
Target Audience
y
Segmentation is the key.
Media Strategy
Consumer profile
y Audience profiles
y
Message Strategy
y
Involvement theory
Central and peripheral routes
216
PHI Learning

Message Structure
and Presentation
Resonance
| Message framing
| Comparative
advertising
| Order effects
| Repetition
|
|
|
Wordplay
Used to create a double
meaning when used
with a relevant picture
217
PHI Learning
Word Play
|
An ad with word play

used for signifying the
need to save water.
218
PHI Learning
Word Play on SUV
219
PHI Learning

Message Structure and
Presentation
Resonance
| Message framing
| Comparative advertising
| Order effects
| Repetition
|
|
|
|
Positive framing
Negative framing
One-sided vs. two-sided
220
PHI Learning

(Contd.)
Presentation
|
|
|
|
|
Resonance
Message framing
Comparative advertising
Order effects
Repetition
Marketer claims product

superiority over another
brand.
Useful for positioning.
221
PHI Learning

Presentation
|
|
|
|
|
(contd.)
Resonance
Message framing
Comparative advertising
Order effects
Repetition
|
|
|
|
Primacy
Recency
Order of benefits
Brand name
222
PHI Learning
(contd.)

Presentation
Resonance
| Message framing
| Comparative advertising
| Order effects
| Repetition
|
Important for learning
223
PHI Learning
Emotional Advertising Appeals

Fear
Humour
Abrasive advertising
Sex in advertising
Audience participation
224
PHI Learning
Ads with Humour
225
PHI Learning
226
PHI Learning
227
PHI Learning
Messages with Fear
228
PHI Learning
229
PHI Learning
230
PHI Learning
THANK YOU.
231
PHI Learning
Consumer Personality
232
PHI Learning
Personality Selection
Psychological
Target Segment
Functional
Brand Personality
Product
Economic
233
PHI Learning
Brand Personality
`
`
Personality created to appeal target customers

Association with brand:
`
`
Positioning of brand:
`
`
Character/Personality
Emotional
Social
Values
Benefits provided:
`
`
Attributes
Quality
234
PHI Learning
Dimensions
Source:DimensionsofBrandPersonalitybyJenniferL.Aaker
235
PHI Learning
Consumer Expectations
Product
Expectations
Clothes
Sharp appearance, Style, Attractiveness, Comfort, Ruggedness
Cars
Comfort, Value for money, Social status, Family product, Performance
Mobile Phone
Durability, Style, Social status
Insurance
Peace of mind, Secured future
Cellular Service
Connectivity, Closeness to loved ones
Computer
Pleasure, Profits from miracle of modern technology
House
Comfort, Contentment, Good investment, Pride of ownership
236
PHI Learning
Components of Brand Personality

`
`
`
`
`
Brand Name & Logo

Colour & Packaging
Advertisement (including Brand Ambassador)
Price
Performance
237
PHI Learning
Personality-Colour Association
Respect
Authority
Caution
Novelty
Temporary
Warmth
Regal
Wealthy
Stately
Sophistication
Power
Authority
Secure
Natural
Relaxed
Human
Exciting, Hot
Strong
Passionate
Informal
Masculine
Nature
Powerful
Affordable
Informal
Purity
Cleanliness
Delicacy
Formality
238
PHI Learning
Brand Names
`
`
`
`
`
`
Red Bull, Power Horse Energy Drinks

Himalayan Mineral Water
Le Bon Cheese
TwiningsDarjeeling Tea
Puma Footwear
Dove Bathing Soap
239
PHI Learning
Thank You
240
PHI Learning
241
PHI Learning
Role of Age
Consumption
Perception
Behaviour
Learning
Choice
CONSUMER
Knowledge
Preference
Ideology
Intuition
242
PHI Learning
243
PHI Learning
244
PHI Learning
245
PHI Learning
246
PHI Learning
247
PHI Learning
248
PHI Learning
249
PHI Learning
Increased Spending by Young

Unmarried Employees
250
PHI Learning
Tech savvy
Adults
Convenience
Shift from value for

money to lavish lifestyle
Stylish looks and features

251
PHI Learning
Protection from germs: Economical without sacrificing the quality

252
PHI Learning
Higher Spending by Middleaged

People and Senior Citizens
253
PHI Learning
Feeling and looking

good
Old
Convenience
Shift focus from saving for children

to enjoying their own life
Stylish looks and features

254
PHI Learning
People Change by Age
255
PHI Learning
Age-specific Targeting
Target kids, adults and older consumers with different

set of products
Customers classificationnew born (0-1month), infant
(25 months), cruiser (6-12 months), toddler
(1318 months), explorer (1923 months), preschoolers
(24 + months)
Targeted 21 years old with the boxy image, sexy
college kids partying, but 42 yr olds felt nostalgic
about their youth and bought the car
EZ squirt ketchup for teens
$3 million marketing to attract 1224 yr olds.
256
PHI Learning
Age and Life Stage
Higher expenditure
257
PHI Learning
Decision-Making Process
Type of Families
` Delayed marriages
` Dual career families
` Smaller families
Role of spouses
Husband-dominant
decisions
Wife-dominant
decisions
Autonomous decisions
Joint decisions
Need to understand decision maker at every stage

258
PHI Learning
THANK YOU.
259
Influence of
Reference Groups
260
Marketer Dominated Source
Non-Marketer Dominated Source
High
Low
Low
High
Mass
Media
Delivered
Personally
Delivered
261
PHI Learning
Contents
Reference Groups
Types of Reference Groups
Reference Groups in India
Reference Group in Choice of

EducationPossible Hypotheses
262
PHI Learning
Reference Group
Person
Group
Point of Ref.
Values
Formation
Attitudes
Behaviour
263
PHI Learning
Types of Reference Groups

Reference
Reference Groups
Groups
Contactual
Aspirational
Disclaimant
Avoidance
264
PHI Learning
Indian Reference Groups

Indian Reference
Groups
Non-Celebrity
Education &
Career Choices
Parents
Relatives
Well-Wishers
Seniors
Friends
No professional catering
Faith Groups
Religious
Ritual
Worship
Spiritual
Caste based
Social marketing
quotient
265
PHI Learning
Education & Career Choices

Reference Groups
Career
Choice
Early
School
Middle
School
Sphere of Influence
PostGraduation
Graduation
(Entry)
266
PHI Learning
Hypotheses
1
Early School, unlike

Middle School, is still
governed more by
proximity to home than
by reference groups
Regional variations arise

as supplydemand of
occupations & societal
opinion govern
graduation & career
Reference Group
influences changes
while at graduation
Individual chooses
Reference group now
267
PHI Learning
268
PHI Learning
ImpactofCulture
onConsumerBehaviour
269
PHI Learning
WhatisCulture?
270
PHI Learning
CULTURE
Culture is a combination of learned beliefs, values and customs that
can direct the behaviour of consumers in a specific society.
Knowledge &
beliefs
In India, hard work is attributed with success.
Values
Customs
Turban is worn by male members of the Sikh religion in India.
271
PHI Learning
Characteristics of Culture
Characteristics
Culture is learned rather than being born

with.
Culture is manifested within boundaries of

acceptable behaviour.
Transmitted from generation to generation.

Rituals practiced.
Dress sense(Sari is the traditional Indian

dress while jeans, skirts, frock, etc. are
considered more modern.
272
PHI Learning
273
273
PHI Learning
Cultural rules can be categorized

into three types
Formal
Rules
Explicit standards as to how one should behave, and violations

often carry severe sanctions.
Informal
Rules
Technical
Rules
Involve implicit standards as to what constitutes a good product.

In Bollywood, normally a Hindi movie must have at least five
good songs to be successful.
274
PHI Learning
Sub-cultures
Sub-cultures consist of ethnic groups such as regional, linguistic, rural vs.

urban, family composition, economic strata etc. Variations seen within a
culture.
These groups have common traditions, heritage, beliefs, customs and
experiences that would differentiate different sub-cultures.
For example, there are certain common aspects in the Indian culture but
almost each state in the country reflects a sub-culture.
Dress, eating habits, customs etc. are somewhat unique in different parts of
India and also, the life style pattern varies.
275
PHI Learning
Indian Teenagers
in contrast to Western Teenagers
Western teenagers
Indian teenagers
Grew up in relative economic stability.
Confronted by new realities: drugs, AIDs,

pollution, teenage pregnancy, divorce, etc.
Less sheltered home environment and

unstable family life. From young age itself
learn to be independent and make their own
choices in life.
More independent and self-sufficient.
Focus early on things they believe would
provide for a secure and happy life, like
earning money, spending culture or material
possession and acquisition.
A more stressful life as self-esteem is vested
in doing well in multi-faceted roles.
Grew up in period of fast economic growth

with good prospects.
Confronted by new realities through the
mass media but with few real-life
experiences.
Have more sheltered home environment and
stable family life. Youth live with family of
origin until their marriage.
Are less independent and self-sufficient.

Are idealistic in their expectations and tend
to deal only with issues that touch them
personally.
Lead a less stressful life as achievement in

studies is paramount and other matters
appear secondary.
276
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FeaturesofIndianCulture
277
277
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DimensionsofCulturalDiversityinIndia
Language
Ruralvs.UrbanIndia
Richvs.Poor
Geographicaldiversity
Liberalvs.Conservative
278
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DiversityinLanguage,Religious
Customs,Beliefs
y
y
y
y
Thereare28statesand22languages
Numerousdialectsspokenbypeople
Religiouscustoms,ritualsandbeliefsvary
Differentidentities,ideologies,interestsandoutlook
ImplicationforMarketers
y
y
Communication&packaginginlocallanguage
Productsneedtobealignedwithculture
Thereisarightwayandwrongwayforeverything,butthatcanchangefrom
placetoplace.
279
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Ruralvs.UrbanIndia
y 30%ofthepopulationliveinurbanareas.
y 70%liveinruralareasbutthismeansthemajorityofthe
marketisspreadacrossthecountry.
y DifferentincomelevelsinruralandurbanIndia.
y Ruralcustomersattachmoreimportancetofunctionality
whileurbanconsumersgiveimportanceto
aesthetics/serviceparameters.
ImplicationforMarketers
y
y
Differentmarketingmixforboththemarkets
Modeofdistribution/channelsdiffers
280
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Richvs.Poor:Differentneedstofulfill
Source: Bijapurkar 2007 (NCAER)
281
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GeographicalDiversity
AnAverage UrbanNorth
IndianConsumer
AnAverageUrbanEastern
IndiaConsumer
Beliefs&valuesconservativein
thinking,respectful
Lifestyleflamboyant,likestohavealot
ofexternalglitter
Behaviourwarmandfriendly,herd
mentality,inquisitive
Beliefs&valuesslowinspeed,
relaxed,simple
Lifestyletraditional,simplebasic
Behaviouropinionated,slow
adopters,rigid
AnaverageUrbanWestern
IndiaConsumer
AnAverageUrbanSouth
IndianConsumer
Beliefs&valuesprogressivebynature,
professional,valuestime
Lifestylebalanced,butverytask
oriented
Behaviournoninterferingbuthelpful,
earlyadopter,trendsetter,calculative
Beliefs&valuesorthodoxanddeep
rooted
Lifestylesimple
Behaviourcurtbutpragmatic,
practical,conservative,cautious,not
arisktaker
282
282
PHI Learning
MarketersmustUnderstand
IndianCultureinOrdertoSucceed
Ford carsspeciallydesignedforIndianroads.
Electrolux's madeforIndiafridgechilldrinkingwater,keepsfoodfresh&
withstandslongpowercuts.
Samsungmicrowaveovenwithgrill.
Nokia launchedahandsetMadeforIndia Nokia1100.
McDonaldsMcAloo Tikki Burger&PizzaMcPuff.
CartoonNetwork introducedSouthIndianfolktaleTenali Ram.
WaltDisney cartoonTVshowsareinHindi.
Omega watchespickedanIndianfilmpersonalitytoreplaceCindy
Crawfordinitsadcampaign.
CocaCola hasredesigneditscratesaswellastrucksforsafedeliveryon
poorroads.
283
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OverallMarketersneedto
Indianize,Humanize,Harmonize!!
284
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286
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OR

287
PHI Learning
OR

288
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AModelofConsumerBehaviour

289
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Buyer
Characteristics
Personal
Psychological
Marketing4Ps
Product
Price
Place
Promotion
Environmental
Economic
Technological
Political
SocioCultural
Buyer Decision Process

Problem Recognition
Information Search
Evaluation Decision
Post-purchase Behaviour
Post-purchase
Evaluation
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
Trial
Repeat
Purchase
290
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291
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Decision-Making Process
ProblemRecognition
InformationSearch
AnalysisofAlternatives
PurchaseDecision
PostPurchase
Behaviour
Perceiving a difference between a persons ideal and

PerceivingaNeed
actualsituationbigenoughtotriggeradecision
Clarifiestheoptionsopentoconsumers
SeekingValue
Prior Experience,
WordofMouth,Advtg/PublicityMktg
efforts.
Evaluatetheparametersandoptionsavailableforproduct
purchase:FormChoiceCriterion
AssessingValue
Decisiononwhen,whereandfromwhomtobuy
BuyingValue
Valuein
Evaluationduringconsumption/use
consumption/Use
292
PHI Learning
Problem
Recognition
WhydoIneedit?
InformationSearch Whatexactlyisthisproduct?
Analysisof
Alternatives
PurchaseDecision
Postpurchase
Behaviour
Whatoptionsareavailable?
Howexactlydoespurchasehappen?
DidImaketherightchoice?

293
PHI Learning
Problem Recognition
IdealState
SimpleExpectations
Futuregoals/Aspirations
Motivations/SelfImage
Culture
ChangeinPersonal
Circumstances
ActualState
Difference
Physicalfactors
Need
ExternalStimuli
ProblemRecognition
Perceiveddifferencebetweenanidealstateandactualstate
motivatestheconsumertotakeactions.

294
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Marketing Implications

295
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296
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297
PHI Learning
Information Search
InternalSearch
ExternalSearch
Process of recalling stored

informationfrommemory
Usingoutsidesources
Dependent on motivation,
ability&opportunity
More recall in high
involvement,perceivedrisk
Informationretrieved
Brand
Attribute
Evaluation
Experience
InformationSearch
Types:
Prepurchase
Duetoproblemrecognition
Ongoing
Regular; due to enduring
involvement
Retailer;media;experiential;
interpersonal;independent

298
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299
PHI Learning
Evaluation of Alternatives: Alternative Set

300
PHI Learning
TotalSet
AwarenessSet
Consideration
Set
Purchase
Decision
301
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302
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Purchase Decision: Process
Influencerplaysanimportantroleinconsumerdecisionmaking.
Rolesplayedbymembersofthefamilyvarieswithdemographic
Influencermaynotbeanexpertbuthe/sheassumesakeyrolein
parametersaswellaswiththetypeoftheproducts
consumerdecisionandhis/herfamilydynamics.

303
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Decision-Making Approaches

304
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305
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Post-Purchase Behaviour
Consumer evaluates the product during consumption to see if it
satisfiestheneed/expectation.
Influencedbytypeofprecedingdecisionmakingprocesses.
Dependsonthelevelofpurchaseinvolvementorthelevelofinterest
inapurchase.
Cognitive dissonance and Experiential marketing play an important
roleinshapingupthesebehaviours.

306
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SelectiveSearch
forEvidence
Gathersfactsthatsupportsaparticulardecision
Disregardsfactsthatsupportotherconclusion.
Conservatism
andInertia
Unwillingnesstochangethoughtpattern
GroupThink
Peerpressuretoconformtoviewsheldbyagroup
Recency
Experiential
Limitations
Moreattentiononrecentinformation
Ignores/Forgetsdistantinformation
Inabilitytolookbeyondthescopeofpastexperiences
Rejectionofunfamiliar
307
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Consumerdecisionmakingprocess
amongtodaysyouth

308
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310
PHI Learning
WhatisCelebrityEndorsement?
| Theuseofcelebritiesinordertoincreasethesalesand/or
therecallvalueofabrandiscalledcelebrityendorsements.
TypesofCelebrityEndorsements
| Testimonial: Attestationbyacelebritybasedonpersonalusage.
| Endorsement: Celebritylendshis/hernameandappearson
behalfoftheproductorservice.
| Actor: Characterendorsement.
| Spokesperson: Celebrityrepresentsthebrandorcompanyover
anextendedpartoftime.
311
PHI Learning
Advantages
y Instantawareness,knowledgeaboutthebrandand
easyrecall.
y Valuesandimageofthebrandaredefined,
highlightedandrefreshedbythecelebrity.
y Thecelebrityaddsnewedgeanddimensiontothe
brand.
y Credibility,trust,association,aspirationand
connectivitytobrand.
y Beliefinefficiencyandnewappearancethatwill
resultinatleasttrialusage.
312
PHI Learning
Hypothesis 1
Everyproducthasitsownidentityanditsveryimportantto
endorseaproductwithasuitablepersonality.
313
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TheRightPersonality
Perfectmatchbetweenbrandimageandcelebrity
y Celebrity'sfitwiththebrandimageandthecelebrity
targetaudiencematch.
y Celebrityassociatedvaluesandthecelebrityproduct
match.
y Costsofacquiringthecelebrityandhisorher
popularityalongwithcontroversyrisksassociatedwith
thecelebrity.
y Credibility,availabilityandphysicalattractivenessof
celebrity.
314
PHI Learning
Hypothesis2
Indianconsumershavematuredandcelebrity
endorsementaloneisnotsufficienttoattractthem.
315
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Hypothesis3
Therearechancesthatthecelebritygainshigher
popularitythantheproductendorsed.
316
PHI Learning
Hypothesis4
SinglecelebrityMultipleproducts:Consumers
dilemmatoassociatethebrandswiththecelebrity.
317
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Hypothesis5
Consumerbuysaproductbasedonitsfeaturesrather
thanthecelebrityendorsement.
318
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ThankYou!
319
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IMPULSIVE BUYING
BEHAVIOUR
320
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Impulse Buying
y
Sudden, compelling, unplanned, hedonically complex purchase.
Generates billions of dollars in sales every year for consumer

products.
Reacts often mindlessly to stimuli that trigger certain

automated responses.
Information processing might have taken place earlier;

otherwise, behaviour may be totally impulse driven.
321
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Factors Affecting Impulse Buying

Behaviour in FMCG
Price and discount
Advertising and sales promotion
Visual merchandising
Emotional attachment
Company
Income
Festival season
322
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Stops Needed for Boosting

Impulse Sales
323
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Examples
y
A fan of Arsenal Football Club

watching a football match of the team
in a mall deciding to buy an Arsenal
T-shirt on display at the same store.
A person with no special passion for a

brand of high end wristwatches is
impressed with the look and make of a
Rado watch and buys it.
324
PHI Learning
Hypothesis 1
Promotion and placement of product in the supermarkets
have positive impact on impulsive purchase behaviour
Promotion
y Advertisement of product in print and visual media
y Various promotional activities regarding product
y Erecting hoardings and distributing pamphlets of
product
Display
y Packaging of product
y Placing of product in store
325
PHI Learning
Hypothesis 2
Lifestyle traits of a person characterize his impulsive
purchase.
Traits considered:
y Fashion involvement
y Price consciousness
326
PHI Learning
Hypothesis 3
y Discount offers on products have a strong positive
effect on impulsive buying consumer behaviour.
Branded products attract more on discount offers as

opposed to unbranded ones.
327
PHI Learning
Hypothesis 4
Shopping with others increases impulsive purchasing.
y Impulsive purchasing at individual level vs. impulsive
purchasing with others
y Shopping with family members, friends and colleagues
y Factors
Susceptibility to influence
Normative: conformance to social norms
328
PHI Learning
Thank you
329
PHI Learning
Indian Market
Diversity
330
PHI Learning
Demographic Diversity
331
PHI Learning
332
PHI Learning
Diversity in Men
Normally, an Indian Male is:
333
PHI Learning
Contented
Conservative
Diversity in Women
Normally, an Indian Woman is:
Housewife; happy with her state of her life/society
Anxious
Rebel
Working women; happy with existing state of affairs
Troubled
Homebody
Housewife; unsure of sitting at home

Traditional; believes in saving for future
Tight-Fisted
Traditionalist
Affluent; comfortable with the finer things in life
Affluent
Sophisticated
Working women; believes in looking after herself
Housewife; active & sees herself as equal to husband
Contemporary
Housewife
Gracious
Hedonist
334
PHI Learning
Diversity in Youth
335
PHI Learning
Types of Diversity
336
PHI Learning
Regional Diversity in India
337
PHI Learning
Regional Diversity (cont)
338
PHI Learning
339
PHI Learning
Socio-Economic Diversity
340
PHI Learning
Diversity in Cuisine
The food available in
India is as diverse as its
culture, its racial
structure, its geography
and climate.
The essence of good
cooking revolves around
appropriate use of
aromatic spices.
The cultures that have
influenced Indian food
are the traditions of
different religions.
341
PHI Learning
Diversity in Clothing
Traditional Indian
clothings for women are
sari, salwar-kameez,
ghagra-choli.
For men, it is kurta, dhoti,
pancha.
Influenced by western
culture: Blend of Indian
and Western clothings.
342
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343
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Understanding
Indian
RuralMarketBehaviour
344
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ImportanceofRuralIndia
y Indiastilllivesinhervillages.
y Urbanmarketsareovercrowdedandgettingsaturated.
y Theunderstandingoftherural consumerbehaviour isdiffused
andsometimesconfusing.
y Ruralmarkets needdifferentapproachfrommarketingin
urbanlocations.
345
PHI Learning
DefiningRuralIndia
Organization
NSSO(Census)
Definition
Populationdensity
<400/sqkm
Limitations
Ruralnotdefined
75%ofthemale
workingpopulation
isengagedin
agriculture.
Planning
Commission
Placesupto5,000
populationare
consideredrural
Characteristicsnot
defined
346
PHI Learning
RuralIndiaPopulationTrends
347
PHI Learning
RuralIncomeDispersal
348
PHI Learning
FMCGConsumptionTrends
Products
Urban(1000HH)
Rural(1000HH)
ToiletSoap
998
992
DetergentCake
980
950
CookingOil
968
952
HairOil/Cream
897
787
Tea
876
758
Toothpaste
822
449
WashingPowder
819
576
ElectricBulb
723
394
Shampoo
663
352
Biscuits
579
314
HealthBeverages
324
67
*HH=Households
Source:NationalCouncilforAppliedEconomicResearch,2002
349
PHI Learning
Myth1: Ruralisone
homogeneousmass.
350
PHI Learning
RuralSECclassification
351
PHI Learning
Upmarket RuralConsumers
RuralSECGroups
H o w D iffe re n t A re U p -M a rk e t R u ra l C o n s u m e rs ?
Percentage Of HH's Owning
45
40
C olTV
35
C & S C onn
30
Tw o-W hlrs
25
P hone
20
F ridge
15
A /C ooler
10
F our-W hlr
W /M ac h
0
R1
R2
R3
R4
Stereo-typed view of undifferentiated

rural consumers no longer valid
352
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Myth2: Companies/BrandscanThrive
byOperatingEntirelyonUrbanMarket
353
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RuralMarkethasEmerged
byitsSheerSize
y 742millionpeople
y Estimatedannualsizeoftheruralmarket(Rs.,crore)
y
FMCG
Durables
Agriinputs(includingtractors)
Two/FourWheelers
Total
65,000
5,000
45,000
8,000
1,23,000
354
PHI Learning
MarketingOpportunities
y Lowpenetrationratesinruralareas(per1000households)
Durables
y MotorCycle
y CTV
y PressureCooker
y Refrigerator
UrbanRural
77
28
304
48
635
178
335
35
FMCGUrban
y Shampoo
663
y ToothPaste
822
y HealthBeverage
324
y PackagedBiscuits
579
y FaceCream
429
Total
42
121
309
120
RuralTotal
352
442
449
556
67
140
315
390
185
254
Source: NCAER2002
355
PHI Learning
Myth3: RuralIndia ABlackhole

forcommunication
356
PHI Learning
MediaExposureLevels
Percentage Exposed At Least Once/ Week
U p m a rk e t C o n s u m e rs U s e M o re M e d ia
80
70
60
P re s s
50
TV
40
C & S TV
30
R a d io
20
10
0
R1
R2
R3
R4
357
PHI Learning
InfrastructureImprovingRapidly
70
60
50
40
30
20
10
0
Satellite
TV
Radio
Press
Cinema
TV
All
Media
70% of R1,R2,R3 can be reached through mass media.

358
PHI Learning
Myth4: RuralGDPisAllabout
Agriculture
359
PHI Learning
100%
80%
33.9
60%
17.7
40%
48.4
20%
0%
AGRI
IND
SER
360
PHI Learning
Myth5: RuralDisposableIncomeisa
FunctionofMonsoonandnotGrowing.
361
PHI Learning
Myth6: Reachandonlyreachisthekey.
362
PHI Learning
DistributionofVillages
Source: Census 2001

363
PHI Learning
Myth7: Urbantrickledown
communicationworksinruralIndia.
What is a Rural Consumer Like?
364
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KEEPITSIMPLE
I am eager to adopt or buy, but I do so only if you talk
in my language and signage.
SupportingInsights
y Itsgreatfun towatchTV,butIcannotunderstandandrelatetoit.
y Iamwillingtolisten andchange,onlyifyouinteractandengage
withme.
y IamsimpleItakethingsliterally,especiallywhenitcomestoads.
y Icantreadorwrite,butIcanunderstandsymbols,colours and
images.
y Talktomeinmylanguageinasimpleway,thatswhatI
understand.
365
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FAMILIARITYBREEDSCOMFORT
Only if its familiar, will I trust.
SupportingInsights
y IhavefaithintheBrandsIhaveused.
y IfIamsatisfiedwithmyfamiliarproducts,thenwhyshould
Ichange?
y Iamaversetotakingrisks,particularlyifitisnewand
unfamiliar.
y Familiarthingsmakemesecure.
y IfIfindmyvillagefolksareusingaparticularbrand,thenI
feelreassured.
Propensity for trial is relatively poor.

Choice dictated by Group Influence
366
PHI Learning
LUXURIES@Rs.5
Jo Chahoon Woh Paoon, Lekin Panch Rupai Mein
(Will get what I want, but only at Rs. 5)
SupportingInsights
y Ibuylowcostproductsbecausetheyfitintomybudget,
astheygivethevalue Iamseeking.
y AtanytimeIhavelimitedamounttospend,butIneed
to buy a number of things, so luxury products are
important.
y Rs.5mylakshman rekhaIdonothavemorethanthat
tospend.
Rs. 5 and Rs. 10 are magical price points in rural India.

367
PHI Learning
SHOWVALUEThenRuralBuyers
WILLBUY
I will pay more only if you show me that I get more
tangible benefits that I want out of the product.
SupportingInsights
y IfIseeandfeelthedifference onlythenwillIbelieveandact.
y ShowmethevaluePerformancequalityorquantity;only
thenwillIbuy.
y IfIcansensethedifference,Idontmindpayingalittleextraforit.
y IfIcantseethedifference,Ishallselectthecheaperone.
y Priceisimportant;yetitshouldmeetmyexpectations.
Packaging and brand experience are the key.

368
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HAATMERIDUNIYAN
Haats (village markets) are my window to the worldwhere I experience new things.
SupportingInsights
y
y
Haat ismyouting.Iamlookingtoexplore.
Haat givesmeanopportunitytobuyproductsthatI
wishtobuy.
y Haats areafestiveoutingandlotsoffunwhereIgetto
seenewthings.
y Ihavesomeplaces(Haats)whichIregularlyvisitand
whereIamopentochange.
369
PHI Learning
DiscoveriesaboutRuralMarket
y Discovery1
y Discovery2
y
y
y
y
y
y
: Theruralmarketisahugepotentialmarket.
: Theruralconsumercanbereachedwitha
combinationofmassandunconventionalmedia.
Discovery3 : Theruralmarketisadifferentiatedmarket.
Discovery4 : RuralGDPisnotaboutagriculturealone.
Discovery5 : Ruraldisposableincomesaregrowingand
growingfast.
Discovery6 : Qualityofreachandnotmerereachisgoingto
bethekeydifferentiatorfortheruralmarket.
Discovery7 : Needforaruralmarketingmix.
Ruralrelevantadvertising
y Consumeractivation
y Useofnonconventionalmedialikehaats,fairs,etc.
y PricepointSKUs.
370
PHI Learning
The future lies with those companies who see the poor as
their customers.
CK Prahalad, Jan 2000
371
PHI Learning
4Ps&4As
y ProductPricePlacePromotion
y AcceptabilityAffordabilityAvailabilityAwareness
MarketingTools
MarketingChallenges
Product
Acceptability
Price
Affordability
Place
Availability
Promotion
Awareness
372
PHI Learning
Product
373
PHI Learning
AppropriateProductStrategies
y Smallunitpackaging
y Productfeaturesservicequalitypriceand
performancerelationship
y Simplicityisthekey
y Newproductdesigns
y Sturdyproducts
y Utilityorientedproducts
y Brandingstrategy
374
PHI Learning
Packaging
y Associatedwithaffordability convenience consumer
recognition,andproductprotection
y Packagingmaterial,size,convenienceandaesthetics
375
PHI Learning
Fakes:SomeExamples
376
PHI Learning
Pricing
377
PHI Learning
IssuesinPricingAffordability
y Lowcost/cheapproducts
y Avoidsophisticatedpacking
y Refillpacks/reusablepackaging
y Highlightingvalue
y Priceadaptations
378
PHI Learning
ExamplesofRuralPricingStrategies
y Godrej:Cinthol,FairGlowand
Godrej in50gpacks,pricedat
Rs.45,meantspecificallyfor
Madhya Pradesh,Biharand
UttarPradesh.
Colgate Cibaca
y HLL:LifebuoyatRs.2for50g.
y CocaCola:Thereturnable
200mlglassbottlepricedat
Rs.5.
379
PHI Learning
PlaceRuralDistributionChallenges
y Largenumberofsmallmarkets
y Dispersedpopulationandtrade
y Poorconnectivity
y Lowavailabilityofsuitabledealers
y Inadequatebanking/creditfacilities
y Poorproductdisplayandvisibility
y Poorcommunicationofoffersandschemes
380
PHI Learning
LevelsofDistribution
Level
Partner
Location
CompanyDepot/C&FA
National/Statelevel
Distributor/VanOperator/
SuperStockist /Rural
Distributor
Districtlevel
SubDistributor/Retail
Stockist/SubStockist/Star
Seller
Tehsil HQ,townsand
largevillages
Wholesaler
Feedertowns,largevillages,
haats
Retailer
Villages,haats
381
PHI Learning
DistributionAdaptations
y HubandSpokeModelExample:CocaCola
y UseofaffinitygroupsExample:ProjectShakti
y Haat ActivationExample:Colgate
y SyndicateddistributionExample:Cavin Care&Amrutanjan
y UseofmarketingcooperativesExample:Warna Bazaar in
RuralAreas
y MobiletradersExample:FMCGcompanies
382
PHI Learning
PromotionIssues
Mostoftheproductsaresoldinthelocalruralhaats.Result:
y Theymaynotfetchaverygoodprice.
y Theyhavelimiteddemandresultinginlowturnoverandlow
income.
y Chanceforproductimprovementislimited.
Somestategovernmentbodiesextendpreferentialtreatmentto
theseproductsatthetimeofprocurement.
Limitedawareness.
Attemptsaremadetopublicizeandpromotethesaleofthese
productsthroughperiodicexhibitionsandmelas.
383
PHI Learning
PromotionAdaptations
Conventional
Non Conventional
Personalised
Television
Haat andMela
Directmailer
Radio
FolkMedia(puppetandmagic
show)
POS(demonstration,leaflet)
Press
VideoVan
Wordofmouth
Cinema
Mandi (Market)
Interpersonalcommunication
Outdoor:WallPainting,
Hoarding
Animator
384
PHI Learning
Melas &Haats
Melas
1. 25,000melas
2. Companiescanconcentrateonthe
top100melas
Haats
1. Periodicmarketslocatedinlargervillages
(>40,000)populations.
2. 1050villagesareserviced.
3. Pushkar Mela inRajasthan
3. Sundaymarketsaremostpopular.
4. OrganizedbythestateVeterinary
Department
4. Averagenumberofoutletsis315and
averagedailysalesareaboutRs.2lakhs.
5. Productsales,promotion,
demonstrationanddatabase
generation
5. Tradersparticipateinatleast4haats.
6. 81%ofthevisitorsarerepeatcustomers.
6. Culturalactivitiesandruralsports
385
PHI Learning
TypesofPromotions
y Advertising
y Salespromotionscoupons,contests,demonstrationsandsampling,
Example:Tata Shakti Haat Hungama
y Directmarketing,Example:Videocon
y Publicity,Example:ProjectShakti andAPOnline
y Usingadirectsellingthroughasalesforce,Example:Swasthya Chetna
forLifebuoy
y Pushstrategysalesforce andtradepromotion
y Pullstrategyadvertisingandconsumerpromotion
386
PHI Learning
FutureProspects
y RuralpercapitaconsumptionofFMCGs toequalcurrent
urbanlevelsby2017.
y IndustryanalystsexpecttheFMCGsectorinruralareasto
grow40%against25%inurbanareas.
y Telecomexpectedtogrowfrom100millionconnections
todayto300millionby2012
y Semiurban&rurallifeinsurancemarketexpectedtorise
fromUS$5bn toUS$20bn by2012.
y Governmentspendingwillcontinuetogrow.
387
PHI Learning
388
PHI Learning
Changing Indian Consumer
389
PHI Learning
Is India Different?
India has shown tremendous growth in the last two decades.
Brand India is riding high.
Happy times for Indian consumer as disposable income has
increased considerably over the years.
India's growing consumer goods market provides the
opportunity for multinationals.
But with this opportunity lies the hurdle to understand the ever
changing Indian consumer.
390
PHI Learning
Factors Responsible for Change

Rising disposable income and increasing western influence.
Average Indian consumer today is richer, ambitious, more
knowledgeable and profile-conscious.
More and more women focusing on career instead of homemaking.
A more dynamic lifestyle leading to reliance on easy-to-use
products like ready-to-eat food, home delivery, etc.
391
PHI Learning
Who are the New Indian Consumers?

India's consumers are young:
70% of the country's citizens are below the age of 35 years, and half of
those are under 18 years of age.
People are deeply rooted in Indian culture and traditions yet

connected to and curious about the outside world.
People in the middle-income segment still spend about half their
budgets on the basics, that amount is falling every year, leaving
more money for other areas of consumption.
Beyond basic needs, households make their children's future a clear
priority.
Education is seen as a passport to a better tomorrow.
To gain a winning edge, parents spend much money and effort
choosing the right schools and tutoring for their children and
invest in nutrition, computer games, and books.
392
PHI Learning
Has the Indian Consumer Changed?

Yes! But the change is gradual and noticeable only
over a sufficient period of time.
It is not visible unless we look back.
An individuals values/beliefs may differ from the
prevalent culture unorthodox.
393
PHI Learning
SOME CHANGES AS NOTICED IN

INDIA
394
PHI Learning
Eating Out
In urban India, families that do
not eat out are considered oldfashioned and conservative.
Most popular-multi-cuisine
restaurants offering Indian fare,
along with a form of Chinese
and Western fast food.
Pizza and cheese, with Indian
flavours and spice.
395
PHI Learning
Health & Fitness

Indians are paying more attention to
their health and striving for better
fitness levels. For example, joining
gyms or clubs.
Rapid rise in sale of fruit juices, cool
drinks, etc.
396
PHI Learning
Metro-sexual Male
Male grooming a growing
business in India
Annually growing at 15%
Currently, usage is
restricted to the young,
urban upper income male.
397
PHI Learning
Women Empowerment
More women entering the
workforce
Increased use of cosmetics
Increasing time pressures
Convenience gains value
Easy to cook food, home
delivery, wide choices in shops,
etc.
Demand for ancillary
services/products, e.g. cook,
domestic help, microwave oven
398
PHI Learning
Teens
With increased awareness through television
and advertising, teens are an important
influence on family decision-making in urban
India.
Have mastered the art of bullying their
parents into making purchases.
Gadgets or products that they want
newly launched chocolate bar, instant noodles and

breakfast cereals.
mobile phones, the TV remote, DVD player and
computer programs
Marketing mangers also exploiting this surge

in the number of ads for children
399
PHI Learning
Marriage
Earlier, arranged marriages used to
happen with elders consent.
Many people nowadays rely on
individual choice and judgement.
Examples: matrimonial sites
proliferate shaadi.com,
bharatmatrimony.com
400
PHI Learning
Luxury
India is experiencing a rise in
incomes and higher
consumption patterns.
Demand for luxury products
is also on the rise.
Vertu mobiles, Tag Heuer,
Louis Vuitton, Hugo Boss,
Porsche, Ferrari, Parker Pen.
401
PHI Learning
Digitalization
Young people in urban areas
are increasingly using the
Internet.
Online banking for service
payments and even for buying
company shares.
Success of social networking
websites.
Avail Online booking of
tickets for movies, trains and
airlines.
402
PHI Learning
Credit
Earlier, people avoided
buying things (nonessential) on credit/loan.
Controlling desires
Instant gratification
Easy availability of credit
Rise in number of home and
vehicle (Two, four
wheelers) loans
403
PHI Learning
Snacking
Eating 2 or 3 times a day
Eating when hungry.
Snacks and chocolates of
wide variety available
Lays, Kurkure, Perk,
Cadbury Dairy Milk
chocolates, Britannia
biscuits, etc
404
PHI Learning
Movies and Serials

Earlier, Movies made in
Bollywood (Emotions,
Action, Drama) were a
craze.
In India, women are
mostly housewivesidle
time at home.
Hence, the debut of serials
targeting this segment was
launched by Balaji
Telefilms (Ekta Kapoor).
405
PHI Learning
Western Influences
Opening of Indian economy,
mass and social media exposure
and increase in overseas
travelling
Acceptance of western clothing,
especially in urban India
Gifting Cards
Pub culture
406
PHI Learning
THANK YOU
407

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Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer behaviour entails the

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Skin care is increasingly

Years for success in his career

Just bought his first new bike

Online needs are high

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Maslows Hierarchy of Needs

Ability to develop skills and

Self-respect and ability to earn respect of

Ability to give and receive love; feeling

Protection from crimes; sense of

Ability to take on a community role that

Ability to contribute to the community and

Security and Safety

Belonging to the community as a whole

Protection from hacking; ability to

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Let us unlock some key trends

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

Immediate response of our