ROLL NO.

:- 77219911757

SUBJECT :- CONSUMER BEHAVIOR

UNIVERSITY :- NARSEE MONJEE INSTITUTE OF

MANAGEMENT STUDIES
ANSWER NO. 1

INTRODUCTION: -

In consumer studies, personality is defined as consistent responses

environment stimuli or we can also say patterns of behaviour that are
consistent and enduring. And individual’s personality helps marketers to
describe consumer segments as it provides for orderly and coherently related
experiences and behaviour.

The role of consumer personality is that it represents characteristics that

determine and reflect how an individual responds to their environment. These
characteristics are attributes, traits, qualities, factor and mannerisms that
distinguish one individual from another.

The personality of individuals is a unique dynamic organization of the

characteristics of a particular person, physical and psychological, which
influence behaviour and responses to the social and physical environment. It
gives the impression that consumer buying is usually influenced by their
personality.

CONCEPT AND APPLICAION: -

Personality signifies the inner psychological characteristics that reflect how an

individual reacts to his environment. Personality shows the individual choices
for various products and brands. It helps the marketers in deciding when and
how to promote the product. Personality can be categorized on the basis of
individual traits, likes, dislikes product. Though personality is static, it can
change due to major events such as death, birth or marriage and can also
change gradually with time. By connecting with the personality characteristics
of an individual, a marketer, can conveniently formulate marketin g strategies.
Whether, traits are the features of an individual or tendency of an individual in
a particular manner. Traits help in defining the behaviour of consumers.

According to the trait theorist, an individual’s personality make-up stems out

of the traits that he possesses, and the identification of traits if important.
The personality of individuals is a unique dynamic organization of
characteristics of a particular person, physical and psychological, which
influence behaviour and responses to the social and physical environment. It
gives the impression that consumer buying is usually influenced by their
personality. The five consumer personality traits and how they affect the
consumer behaviour are explained as under:-
The five personality traits of an individual are:-

1. Openness to new experience: Individuals with openness to experience

are generally very active.
2. Conscientiousness: people to conscientiousness listen to their conscience
and act accordingly.
3. Extraversion: It is a state where individuals show more concern on what
is happening outside.

and

Introversion: It is a state where individual is more concerned about his

own life.
4. Agreeableness: It teaches individuals to be adjusting in almost all
behaviours.
5. Neuroticism: This is where individuals are prone to negative thoughts
such as anxiety, anger, envy, guilt and so on.

How these Traits affects consumer Behaviour is explained as under:

Consumer Innovators and Innovativeness

Innovators are the first to try new products, product line extensions and
services because they are open to new ideas and practices. Their response to
newly introduced products is critical to the success or failure of new products.
Consumer innovators are enthusiastic about innovative p roducts and can speed
up the market acceptance of innovations.

Innovativeness is the degree of consumer’s willingness to adopt new products

and services shortly after the products are introduced. The four motivational
factors that inspire the consumer innovativeness: -
i. Functional Factors
ii. Hedonic Factors
iii. Social Factors
iv. Cognitive Factors

Consumer innovativeness is a construct that deals with how receptive

consumers are to new products. Consumer innovativeness has been defined as
a predisposition or propensity to buy or adapt new products or a preference for
new and different experience.

A study evidence prove that the effect of innovations is significant on the

behaviour of customers and 75% of respondents endorsed that innovative
product attract and have brought positive change in their behaviour.
 Need for Uniqueness
Consumers need for uniqueness is defined as an individual ’s pursuit of
differentness relative to others that is achieved through the acquisition,
utilization and deposition of consumer goods for the purpose of
developing and enhancing one’s personal and social identity.

 Optimum Stimulation Level

The optimum level (OSL) is the degree / level of the amount of
stimulation individuals seek in life. In theories which consider human
actions will be affected by motivational tendencies, the concept that for
achieving stimulation level. Stimulation level, social practices stimulated
by pure desire plays a big role.

Therefore, the relationship between human needs for motivation and

their tendencies of exploration indicates that the optimum stimulation
level probably has a decisive influence in behaviours.

 Need for Cognition

A Need for Cognition (NFC) measures a person’s craving for or
enjoyment of thinking. Consumers who are high in NFC answer ads that
contain tons of product-related information and descriptions whereas,
consumers who are relatively low in NFC are interested in the
background or peripheral of an ad.

Need for Cognition also affects the processes of attitude change when no
explicit evaluation instructions are provided and when exposures are to
relatively short, unfamiliar advertising messages presented in either self -
paced or externally controlled formats.

 Consumer Materialism
Materialism gauges the extent to which an individual is preoccupied with
purchasing and showing off physical possession that are mostly
nonessential and often conspicuous luxury goods.

Materialist consumer has high perceived social status and status

consumption. As the level of materialism increases, there's also an
increased desire to get products so as to get status. These people
are within the pursuit of finding happiness by having material
possessions.
 CONCLUSION: -

Personality types group people into categories on the basic of shared

traits and traits are lasting personal qualities that are inferred from
behaviour. People who have traits of the hardy personality seem to be
resistant to stress, even if they also have type A traits.

Hence, the personality of individuals is a unique dynamic organization

of the characteristics of a particular person, physical and psychological
which influence behaviour and responses to the social and physical
environment. It gives impression that consumer buying is always
influenced by their personality. Therefore, many marketers make use of
personality traits in the advertisement of products at the time they
enhance their marketing strategy.

ANSWER NO. 2

INTRODUCTION: -

New Product:

Marketers need to differentiate between emerging markets and developed

markets on what consumers perceive as “new”. A touch of reality is required
when conventional definitions of new products are applied to an emerging
market like India, especially mass markets in several product categories.
Value, convenience and cultural associations are factors that may, in
combination, work in Indian context.

Innovation:

Innovation, is the introduction of something new. Without

innovation, there's anything new and empty new, there'll be no progress. If a
corporation isn't making any progress, it simply cannot stay relevant within
the competitive market. Because organizations are often working with their
individual organizations, it can sometimes be challenging to know the impacts
of innovation on our society at large. There is however, tons more to
innovation than simply firms looking to realize competitive advantage.
Innovation really is that the core reason for contemporary existence.
The different types of Innovation are as under: -

 A Continuous Innovation
  A Dynamically Continuous Innovation
 A Discontinuous Innovation

The Innovation Adoption Curve:

The innovation adoption curve classifies the entry of users into various
categories, supported their willingness to simply accept new technology or an
idea. It is useful in breaking down or segregating consumers into five different
segments or categories like innovators, early adopters, early majority, late
majority and laggards.

CONCEPT AND APPLICAION: -

The Innovative Product of my choice, which I am taking is “Fair & Lovely”

Hindustan Unilever (HUL), the country’s largest consumer goods company,
replaced the word fair with glow, when it recently initiated a rebranding of
Fair & Lovely, its Rs. 2000 Crore brand. The deceptively simple solution has
much thought going behind it.

The company has been marketing Fair & Lovely product attributes using words
such as Radiance and Glow for over a year before the actual name took place.
Consumers were ready for the shift as the rebranding happened.
Fair & Lovely is both the leader and pioneer of fairness creams in the country,
having launched in 1975 and has borne the brunt of the controversy
surrounding the category.

While the fairness category is low on GCPL’s priority list, for those for whom
the segment matters, using synonyms are often challenging. “Older
consumers should accept the change because the merchandise isn't undergoing
a formulation overhaul, it's merely a cosmetic shift. But new consumers may
not know this. They may look at other options, since category codes as
radiance and glow have far more competitors than fairness ”.

An HUL spokesperson said Glow & Lovely is now starting to become

available at retail outlets and our initial announcer campaign, which is a
reiteration of the message that Fair & Lovely is now Glow & Lovely, went live
on September 1.

HUL Chairman and MD Sanjiv Mehta has said in June that Fair & Lovely has
metamorphosed into a brand signifying “Women’s Empowerment” as opposed
to a “closet mate”, who could help improve a woman’s marital prospects.
The packaging had also reflected the change, he said with the cameo of two
faces also because the shade guides on the rear of the pack making way for an
“inclusive” measure of healthy skin.
The Adoption Process:

The Innovation Adoption process consists of five stages through which

potential consumers pass attempting to arrive at a decisi on to try or not a new
or innovative product. The five stages of the adoption process are as under: -

1. Awareness: the buyer becomes aware that an innovation exists.

2. Interest: the buyer becomes curious about the innovative product or
service.
3. Evaluation: the buyer undertakes a “mental trial” of the innovation.
4. Trial: The consumer tries the innovation.
5. Adoption: If satisfied, the buyer decides to use the innovation
repeatedly.

The Innovation Adoption Curve:

The Innovation Adoption Curve is a model that classify adaptors of innovation

into various categories based on the idea that certain individuals are inevitably
more open to adaption than others. It is also mentioned as Multi- Step Flow
Theory or Diffusion of Innovations Theory.

The Innovation Adoption Curve follows a normal curve, which may be

divided into five different categories:-

 Innovators:
Usually, the innovators are the primary ones to adopt the new idea or the
technology. They consist of a small percentage of the population, almost
2.5%. they are those who are young and willing to require risks about the
new technology.

 Early Adopters:
The next ones are early adopters. Early adopter consists of almost
13.5%. one characteristic which differentiates this group from the others
is that they have high degree of leadership or influencing power. They
are also young individuals who are willing to require that extra risk.

 Early Majority:
The third category of people who adopt an innovation is Early Majority
(34%). The only difference is that here the time of adoption is slightly
longer, but the percentage is higher than innovators and early adopter.
They have an above-average social station and accept change more
quickly than the typical.
  Late Majority:
The fourth category of is Late Majority (34%). The individuals during
this category take tons of your time to adopt new technology. They are
the ones who will do research because they are skeptical of innovation.
They adopt the new technology due to peer pressure.

 Laggards:
Laggards is that the fifth category of people who adopt an innovation.
They are reluctant to any change. By the time Laggards adopt the new
technology it'd have already become obsolete. They are fixated on past
methods or technology for his or her daily usage.

CONCLUSION: -

Adoption of Innovation are often a challenge including diffusing the

innovation across a corporation, group or society. There are many theories and
models for innovation adoption and diffusion which contradict one another in
some aspects and overlap in others.

Although innovation may sound sort of a buzzword for a few, there are many
reasons why companies put tons of emphasis thereon.

In addition to the fact that innovation allows organizations to stay relevant in the
competitive market, it also plays an important role in economic growth. The
ability to resolve critical problems depends on new innovations and especially
developing countries need it more than ever.

ANSWER NO. 3 (a)

INTRODUCTION: -

Classical conditioning theory refers to learning through repetition. This

is mentioned as a spontaneous response to particular situation achieved by
repetitive exposure. It is such a kind of behavioural theory which says, when a
stimulus is connected to or paired with another stimulus , it serves to produce
the same response even when used alone.

For example: if you usually listen news at 9 PM and have dinner too at 9 PM
while watching the new then eventually the sound of news at 9 PM may make
you hungry even though you are not actually hungry or even if the dinner is
not ready.

CONCEPT AND APPLICAION: -

Classical conditioning may be a sort of learning that features a major influence

on the varsity of thought in psychology referred to as behaviourism.
Discovered by Russian physiologist Pavlov, conditioning may be a learning
process that happens through associations between an environmental stimulus
and present stimulus.

Although classical conditioning was not discovered by a psychologist at all, it

has a tremendous influence over the school of thought in psychology know a
behaviourism.

Classical conditioning involves a neutral signal before a naturally occurring

reflex. In Pavlov’s classic experiment with digs, the neutral signal was the
sound of a tone and therefore the present reflex was salivating in response to
food. By associating the neutral stimulus with the environmental stimulus
(food), the sound of the tone alone could produce salivation response. Classical
conditioning is viewed as a knee-jerk (or automatic) response that builds up
through repeated exposure and reinforcement.

Conditions for classical conditioning

There are several things that need to take place for classical conditioning to
occur. First, there must be a naturally occurring stimulus that will
automatically elicit a response. In the case of Pavlov’s dogs, the naturally
occurring stimulus is the salivation in response to the smell of food. At this
stage, the unconditioned stimulus results in unconditioned response. There is
also a neutral stimulus that is yet not in effect and will only garner a response
once paired with the unconditioned stimulus.

1. Naturally Triggers a response

2. Must pair unconditioned stimulus and neutral pair stimulus.
3. In the Third stage make it happen.

Classical Conditioning in the Indian Context

The form of association imparted by marketers to brand has important

implications for how consumers spontaneously connect with brands. Lux soap
can be associated with the classical and stylish female beauty, and Hamam
soap with traditional, ethnic beauty, from their past marketing associations.
The same company that markets Lux and Hamam, Unilever India, also has
Pears soap that features a gentle, mild and family association.

CONCLUSION: -

Classical conditioning can create a replacement behaviour through the

method of association. When two stimuli are linked together and an association
is established, a new response in a person or animal is learned. An
unconditioned stimulus is paired closely with a neutral stimulus, making the
neutral stimulus a conditioned one. Then, the unconditioned stimulus is paired
with the conditioned response. Sometimes referred to as the building blocks of
learning, classical conditioning is still an important piece to understanding
what motivates the behaviour of living organisms.

ANSWER NO. 3 (b)

INTRODUCTION: -

Instrumental Conditioning Theory is developed by B.F. Skinner, an

American psychologist, he was the primary to develop this model of learning.
Instrumental theory suggests that citizenry lean by trial-and-error
method then determine a specific stimulus which will yield best results. Then,
this subsequently formed as a habit.

This theory is extremely important and applies to several common

situations within the context of consumer behaviour. It suggests that
consumers learn by means of trial-and-error method in which some purchase
behaviour result in a more favourable outcome.

CONCEPT AND APPLICAION: -

Instrumental conditioning (or Operant conditioning) is based on the notion that

learning occurs through a trial-and- error process, with habits formed as a
result of rewards received for certain responses or behaviours. Like classical
conditioning, instrumental conditioning requires a link between stimulus and a
response. However, in instrumental conditioning, the stimulus that results kin
the most rewarded response is one that is learned. For example: after visiting
the stores, the consumer knows which store carry the type of clothing they
prefer at prices they can afford to pay. Once they find a store that carries
clothing that meets their needs, they're likely to patronize it to the exclusion of
other stores. Every time they purchase a shirt or a sweater there that
they adore, their store loyalty is rewarded (reinforced), and that they are likely
to become repeat customers.

According, to B. F Skinner most learning occurs in environments where

individuals are “rewarded” for selecting appropriate behaviour. In consumer
behaviour terms, instrumental conditioning suggests that consumers learn by
means of a trial-and-error- process in which some purchase behaviours result
in more favourable outcomes (i.e., rewards) than others. A favourable
experience is that the instrument of teaching the individual to repeat a
selected behaviour. Like Pavlov Skinner developed his model of learning by
working with animals.
Instrumental conditioning occurs when a response is acquired and controlled
by a contingency between the response and a reinforcer or outcome.

In the case where there is a positive relationship between the response and the
reinforcer, so that the response causes the reinforcer, two processes control
responding: An S-R/ reinforcement process mediating habitual behaviour and
an R-O process underlying goal-directed. The conditions of training determine
whether the habitual or goal-directed process predominates. Moreover, these
two processes are often dissociated within the prefrontal cortex and striatum
with the dopamine system being particularly implicated in habit learning.
Stimuli serve multiple functions in instrumental conditioning. First, they act as
discriminative stimuli therein they control when a response is performed.
Although this control acts by the direct elicitation of response within the case
of habitual behaviour, goal – directed.

CONCLUSION: -

Hence, the Instrumental Conditioning (or Operant Conditioning) can be

applied in several ways in the learning environment. When an instructor has
the ability to discern between what best suits a student- whether in regard to
reinforcement, punishment or other factors- they have a path to reach him/her
and success in learning skills and ideas.