Part- I

Individual Determinants of Consumer Behavoiur

Chapter- 4

By:
Dr. Ajay Kumar
Prof. Kamal Singh

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Part- I
Chapter
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Individual Determinants of
Consumer Behaviour

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Introduction
Motivation is the driving force within individuals that
impels them to action. This driving force is produced by a
state of tension as a result of unfulfilled needs. Thus every
individual directs his force towards a goal to fulfill his
needs and reduce the tension he feels. Motives are the
inner state that mobilize bodily energy and directs it in
selective fashion towards goals usually located in the
external environment.

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Motivation, Personality and Self-concept

“Motivation” is derived from the word ‘MOTIVE’ which
means needs, wants, drives, impulses within individuals.
Motives are the inner state that mobilize bodily energy and
directs it in selective fashion towards goals usually located
in the external environment.

The process of motivation involves needs, drives and

goals. Need is behind most of the actions of people. Better
facilities, more pay, recognition, opportunities for
promotions etc.,

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Model of the Motivation Process

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Definitions of Motivation
Motivation can be defined as a process of stimulating people
to act for the purpose of achieving desired goals. A few
definitions of motivation are as follows:

Huczynski and Buchanan (1993) defined motivation from

three perspectives: in terms of the goals towards which
human is directed; as the process through which those are
purchased and achieved; and the social factor involved.

Luthans (1986) sees motivation as a combination of needs,

drives and incentives. Motivation is defined as a process that
starts with a physiological or psychological deficiency or
needs that activate or a drive that is aimed at the goal or
incentive.
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Significance of Motivation
1. Source of job satisfaction.
2. Acceptance of organizational changes.
3. Improve productivity.
4. Satisfy the needs and spread zeal of working.
5. Increase in overall efficiency.
6. Reduction in labour turn over and absenteeism.
7. Improve corporate image.
8. Generate healthy and harmonious working environment.
9. Generate feeling of belongingness.
10. Optimum utilization of resources.

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Framework of Motivation

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Process of Motivation
The process of motivation starts with a feeling of some sort of
need(s). Needs are of various types, for instance – Safety need,
Basic needs i.e., food, clothes and house, Self-actualisation
needs etc., as per the Maslow theory of needs.

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Consumer Motivation and Market Place

Consumer Decision Making
Jagdish Sheth identifies five consumer motives each oriented to
the achievement of specific goals.

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Consumer Conflict Resolution

Conflict occurs with two or more people who, despite their
first attempts at agreement, do not yet have agreement on
a course of action, usually because their values,
perspectives and opinions are contradictory in nature.

Conflict can occur:

1. Within yourself when you are not living according to
your values.
2. When your values and perspectives are threatened.
3. When there is discomfort from fear of the unknown or
from lack of fulfilment.

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Theories of Motivation

Maslow’s Need Priority Model

Abraham Maslow propounded a theory that human needs
are arranged in a hierarchy from the most pressing to the
least pressing. A person will try to satisfy the most
important needs first. When a person succeeds in
satisfying an important need, it will cease being a current
motivator, and the person will try to satisfy the next most-
important need.

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Implications of Maslow’s Hierarchy Theory

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Herzberg’s Motivation – Two Factor Theory

Herzberg’s motivators-hygiene theory is, perhaps the most
controversial theory of work motivation. The original
research used in developing the theory was conducted with
several hundred accountants and engineers. It was based
on questioning people in organization in different jobs, at
different level, to establish:

a. Those factors that led to extreme dissatisfaction with

the jobs, the environment and the workplace; and
b. (Those factors that led to extreme satisfaction with the
job, the environment and the workplace.

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McGregor’s Theory X and Theory Y
Douglas McGregor (1906-1964) is one of the forefathers of
management theory and one of the top business thinkers
of all time. He was a social psychologist who became the
President of Antioch College. He later became a professor
of management at Massachusetts Institute of Technology
(he was succeeded by Warren Bennis). His book The
Human Side of Enterprise (1960) had a profound influence
on the management field, largely due to his Theory X and
Theory Y. McGregor developed a philosophical view of
humankind with his Theory X and Theory Y in 1960. His
work is based upon Maslow’s Hierarchy of Needs, in that
he grouped the hierarchy into lower-order needs (Theory X)
and higher-order needs (Theory Y).
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Personality and Self-concept

The term personality has been derived
from Latin word ‘Person’, which means ‘to
speak through’. Personality is the inner
psychological traits characteristics that
both determine and reflect how a person
responds to his or her environment.
Although may change due to circumstances, there is
tendency to behave in consistent fashion. Thus
personality is used as a term of influencing others through
external appearance. Sum total of ways in which an
individual reacts and interact with others.

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Definitions of Personality
Personality psychology, also known as personology, is the
study of the person, that is, the whole human individual.
Most people, when they think of personality, are actually
thinking of personality differences- types and traits and the
like. This is certainly an important part of personality
psychology, since one of the characteristics of persons is
that they can differ from each other quite a bit. But the
main part of personality psychology addresses the broader
issue of “what is it to be a person.”

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Features of Personality
1. Personality Reflects Individual Differences: An
individuals personality is a distinct combination of
factors hence no two individuals are exactly alike. Many
individuals may be similar in terms of single personality
characteristics but not in terms of others.
2. Personality is Consistent and Enduring: An individual’s
personality tends to be both consistent and lasting.
Marketers should find out which personality
characteristics influence specific consumer response.
3. Personality can Change: In certain situations
personalities change. An individual personality may be
attered by major life events, such as marriage, the birth
of child, the death of parents, or change of job etc.
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Theories of Personality
Integration with evolutionary theory could enhance
personality theory by generating original predictions about
the mechanisms governing personality. Novel hypotheses
about how personality works can be derived from theories
about the ultimate function of personality traits. Personality
psychology currently describes and explains how
personality is structured and how the mechanisms that
produce such differences in all patterns work. Personality
theorists observe how personality differences develop and
explain the proximate (‘how it works’) causes of these
individual differences, but generally do not address
ultimate (‘why it works’) causes.

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Personal Factors Affecting

Consumer Buying
Possibly the most challenging concept in marketing deals
with understanding why buyers do, what they do (or don’t
do). But such knowledge is critical for marketers since
having a strong understanding of buying behaviour will
help shed light on what is important to customer and also
suggest the important influences on customer decision-
making. Consumer behaviour deals with as to why and why
not an individual purchases particular products and
services.

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Marketing Implications of Self-concept

The two issues, self-concept and self-image, have been
widely researched and dealt upon in studies on consumer
behavior. Every individual makes a self-assessment of
himself/herself, and forms opinions of himself/herself. He
sees himself as an “actual”, and as an “ideal”. Based on
such an image, he acts out his behaviour, both general and
specific to consumption behavior. The study on self-
concept and self-image lay emphasis on such aspects of
personality that are expressive of an individual’s image of
him or herself.

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Consumer Perception

Different individuals have different thinking styles, beliefs,

feelings and goals and almost every individual behave
accordingly. Just because of these factors different people
take different meaning for the same things.

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Definition
“Perception is the selection, organization, and
interpretation of marketing and environmental stimuli into
cohesive pictures.” The above definition lays emphasis on
certain features of perceptions, which are as under:

 Perception is a mental process, whereby an individual

selects data or information from the environment,
organizes it and draws significance or meaning from it.
 Perception is basically a cognitive or thinking process
and an individual’s activities, emotions, feelings etc., are
based on his perception of his surroundings or
environment.

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Features of Perception
a. Intellectual process, through which a person selects the
data from the environment, organises it and obtains
meaning from it.

b. Basic cognitive or psychological process. People

actions, emotions, thoughts or feelings are triggered by
the perception of their surroundings.

c. A subjective by nature as depends upon individual life

traits.

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The Perceptual Process

Individuals are very selective as to which stimuli they
“recognize”. They organize the stimuli they do recognize
subconsciously, according to widely held psychological
principles, they give meaning to such stimuli subjectively in
accordance with their needs, expectations and experiences.

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Consumer Learning
Learning may be described as the process of acquiring the
ability to respond adequately to a situation which may or
may not have been previously encountered, the favourable
modification of response tendencies consequent upon
previous experience, particularly the building of new series
of complex coordinated motor response; the fixation of
times in memory so that they can be recalled or organized;
the process of acquiring insight into situation.Thus
learning can be defined as a relative permanent change in
as a result of previous experience.

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Theories of Learning
Various theories have been developed to explain different
aspects of learning. These theories can be grouped into
several major categories.

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Learning
Theories

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Consumer Attitude Formation

Meaning of Attitude
A predisposition or a tendency to respond positively or
negatively towards a certain idea, object, person, or
situation. Attitude influences an individual’s choice of
action, and responses to challenges, incentives and
rewards, (together called stimuli).

Attitude is the combination of both belief and values. An

attitude describes a person’s enduring favourable and
unfavourable cognitive evaluations, emotional feelings, and
action tendencies towards some objects or idea. Attitude is
very difficult to change.

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Nature of Attitudes
 Attitude is a learned predisposition.
 Attitudes have consistency.
 Attitudes occur within a situation.
 Attitude is dynamic by nature.
 Attitude has its own structure.
 Attitudes have direction, degree and intensity.
 Attitudes have an object.

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Components of Attitude

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End
of Chapter

Thanks
Consumer Behaviour & Marketing
32 PPT’s By: A. Alam