Consumer Behaviour-Ramanuj Majumdar Compressed Compressed Compressed

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UNDERSTANDING
CONSUMER BEHAVIOUR
Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 1

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CONSUMER BEHAVIOUR
Consumer behaviour entails the

totality of consumer’s decision
involved in acquiring, consuming and
disposing of goods and services, as
well as making use of experiences
and ideas.

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Consumer Behaviour is a Complex Dynamic Process
Consumer’s Perspective Marketer’s Perspective
Pre‐purchase
issues
Purchase
issues
Post‐purchase
issues
Each stage poses varied issues and offers subsequent challenges for the marketer.

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Pre‐purchase Challenges for the Marketer

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How are consumers’ attitudes towards products formed and/or changed?
Changing consumer
demographics Psychological Factors
Access to more ‐ Consumer involvement
choice of brands/ ‐ Consumer motivation
products ‐ Consumer’s perception
Personal Factors
‐ Personality and lifestyle
‐ Family lifecycle
Social Factors
Consumer
‐ Reference groups
behaviour ‐ Family
Cultural influences
on consumer
Consumer age,
behaviour
sex, social class
The creation and
Subcultures
diffusion of
consumer culture
It is essential for the marketer to understand how each of these factors influences consumer’s buying decision.
He can then formulate strategies in line with customer needs and demands.
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How do psychological factors affect the consumer’s purchase decision?
Changing consumer perception Learning‐Superior after‐sale‐service
Motivation—the secret of Belief—TATA signifies trust
energy
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How do personal factors affect the consumer’s purchase decision? (Contd.)
Lifestyle Self Concept—“Definitely male”
Age—Targeting the youth
Gender—Targeting the male
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How do social factors affect the consumer’s purchase decision?
Reference Group—I‐bankers
Phone
Influence of Family
Status Symbol
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How do cultural factors affect the consumer’s purchase decision?
Subculture: Targeting the ‘Full of Life’
Targeting on the basis of Culture
Social Class
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What cues/inferences do consumer’s use to choose and infer which
brand/product is superior to others ?
The extent of information search depends on:
Motivation, ability and opportunity.
How extensive the search is for high involvement, high risk products.
Consumer demography and product type.
The marketer needs to select the right source for information to reach the
target consumer.

Various Sources of Information the Marketer can Tap
Radio
Transport
Events
Internet Outdoor
SMS
Utilities
Gaming
Sport Podcasts
TV
Magazines
Newspapers
Posters Direct mailers
Word‐of‐Mouth
Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar

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Purchase Time Challenges for the Marketer

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How do situational factors affect consumer’s purchase decision?
When to purchase
Three Possibilities in
Consumer Purchase Where to purchase
Decision
How to purchase
Influencing Factors:
Store atmosphere—Display, music, fragrance
Time pressure—Peak or off‐season
Pleasantness of shopping experience
Schemes

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Post‐purchase Challenges for the Marketer

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What determines whether a consumer will be satisfied with a brand choice and
whether he will buy it again?
After buying a product, the consumer compares it with his
expectations and is either satisfied or dissatisfied.
Satisfaction or dissatisfaction affects:
‐ Consumer value perceptions
‐ Consumer communications
‐ Repeat‐purchase behaviour
Marketers use various strategies to positively influence consumer’s Post‐purchase behaviour
Post‐purchase Feedback from Loyalty

Advertisements
Service Consumer Programmes

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Thank You ☺

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Consumer Motivation

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What is Motivation?
9 Motivation refers to an activated state of
needs within a person that leads to goal-
directed behaviour.
Types of Needs
Innate or learned
Expressive (emotional)
Utilitarian (practical and functional)
Hedonistic

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Maslow’s Hierarchy of Needs

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Characteristics of Needs
Needs:
• Are dynamic.
• Have hierarchy.
• Can be internally and externally aroused.
• Can conflict.

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Motivational Conflict and
Need Priorities
Satisfying a particular need often comes at the
expense of another need.
These trade-offs cause motivational conflict.

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Types of Motivational Conflict
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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Consumer Motivation
• 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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Motivated Purchase…
• 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
Consumer Behaviour
Motivation signifies the processes that cause consumers to
behave as they do, involving needs, goals and drives.

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Model of the Motivation Process
Previous
learning
Unfulfilled
Goal/Need
need, want Tension Drive Behaviour
fulfillment
and desire
Cognitive
processes
Tension
reduction

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Needs/Wants Beliefs
A Model of Consumer Motivation
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• Skin care is increasingly
becoming more important to
men
Emotional Needs Key Influencers

• Years for success in his career • Celebrity endorsers
• Feels he deserves better • Sportsmen (cricketers),
quality products. prominent businessmen
• Tries to upgrade his lifestyle. • WOM, friends
Likes
• Just bought his first new bike
(TVS Apache) and a new mobile
(Nokia N Series). Receptivity
• Shops for clothes, shoes, etc. often • Online needs are high
in malls and shopping complexes. • Low towards mass media
• Often eats out (with friends). vehicles
• Likes to visit pubs and discos.

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What are His Needs/Motivations?

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Maslow’s Hierarchy of Needs
Offline Online
Ability to take on a community role that

Ability to develop skills and Self- develops skills and opens up new opportunities
fulfil one’s potential
Actualization
Self-respect and ability to earn respect of Ability to contribute to the community and
others & contribute to society Self-Esteem be recognized for those contributions
Belonging to the community as a whole

Ability to give and receive love; feeling Social and to sub-groups within the community
of belonging to a group
Protection from hacking; ability to

Protection from crimes; sense of Security and Safety maintain varying levels of privacy
living in fair and just society
Food, clothing, Physiological Access to computer

and Internet
shelter, health

SOURCE: Amy Jo Kim’s 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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The Challenge of Understanding
Consumer Motivation
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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Why Automobile?

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Automotive Sector
Classification of the Automotive Industry
• Commercial vehicles (Trucks and Buses)
• Passenger Cars and Multi‐utility vehicles
• Two‐wheelers
• Three‐wheelers
• Tractors
For explaining motivations , we will concentrate on
passenger cars and multi‐utility vehicles.

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Automotive Sector–Demand Drivers

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Means‐end Chains Structure
• Attributes: Descriptive features that characterize a
product.
• Benefits: Personal beliefs and meanings attached or
derived from various product attributes.
• Values: Stable and enduring personal goals.

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Issues a typical consumer considers
when he chooses a car
• Reliability/Durability • Fuel Efficiency or Mileage
• Recommendation of peer group, Word
• Interior design and comfort
of Mouth (WOM) and dealers opinion
• Manufacturer’s reputation, about servicing and overall
Brand name and its value performance.
• Servicing and ‘the deal’ offered
• Exterior appearance and
• Passenger and Luggage carrying capacity
aesthetics
• Size, length, machine capacity
• Petrol vs. Diesel model • Price and Re‐sale Value of old car model
and Terms of Payment

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Automobile Purchase: Demographic Factors
Family
life
cycle

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Committed/
Bachelor recently married
Impact of family life cycle on
consumer need/preference
Married with
children

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Family Life Cycle

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Things do not change,
we change .
HENRY DAVID THOREAU

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Let us unlock some key trends

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How the needs of the same consumer change
as he moves along the family life cycle…
Bachelorhood Æ Married Æ Married with
children Æ Non‐dependent children

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Information Gathering
Talking to dealers
Talking to friends/Colleagues/Relatives
Inspecting the car
Car ads
Talking to mechanics
Car brochures/Articles/Programmes
Internet
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Study the various sources of information,
gather and find the reliability of various
information sources.

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Major Motivators/Triggers
Increasing family’s need
Need to travel long distance
Rational
Factors
Problem with old car
Status/Prestige
Emotional Promotion
Factors
Peer pressure

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Integrative Choice: Purchase decision is
influenced by a mix of rational and
emotional factors.

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Social Influences
Combined effects of Occupation, Education and Income levels
Conspicuous and compensatory consumption trends
Certain norms and values are created by social influences.
So it is essential to find out how these social influences
(occupation, education and income etc.) affect the
consumer motivation in the purchase of an automobile.

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Sex
Men and women possess unique personality traits,
interests, knowledge and judgment capabilities.
Find out how the motivating factors differ based on the
gender of the consumer.

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Thank You.

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Consumer Perception
Consumer
Perception
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Perception is Reality
LOUIS CHESKIN
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z Perception
z Process by which sensations are selected,
organized, and interpreted
z Adding meaning to raw sensations
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Elements of Perception
z Sensation
z Absolute threshold
z Differential threshold
z Subliminal threshold
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zSensation
z Immediate response of our

sensory receptors…
z …eyes, ears, nose, mouth,
fingers…
z …to basic stimuli…
z …such as light, colour,
sound, odour, and texture
z …advertisements, brand
names, commercials, and
packages
z …depends on the sensitivity of
the individual
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The Absolute Threshold
¾ The lowest level at which an individual can

experience a sensation.
¾ The point which differentiates between
“something” and “nothing”.
¾ Example: Absolute threshold of driver driving
on highway to notice billboard.
¾ 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
z Marketers need to break through

the clutter
z Microsoft’s butterfly decals on
sidewalks
z 3D logos on cricket grounds
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The Differential Threshold

¾ The minimal detectable difference between two
similar stimuli (just noticeable difference).
¾ It’s not at all the absolute difference.
¾ It’s an amount relative to the intensity of the first
stimulus.
¾ 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 negative changes are not
readily discernible to the public.
z product improvements are
quite visible to consumers.
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Gradual Changes in
Brand Name
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Perception of very weak or

rapid stimuli received below
Subliminal the level of conscious
Perception awareness
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Perceptual Selection
z Stimulus Selection Factors
z Weber’s Law
z Differences in size, colour, position, and novelty
z Interpretation: assigned meaning to stimuli

z Schema leads to stimulus evaluation
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A theory concerning the

perceived differentiation
between similar stimuli of
Weber’s Law 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 Consumers’ previous
experience (expectations)
z Consumers’ motives
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Some Marketing Variables

Influencing Consumer Perception
z Nature of the product
z Physical attributes of the
product
z Package design
z Brand name
z Advertisements and
commercials
z Position of an ad
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Concepts Concerning Selective Perception
z Selective exposure
z Selective attention
z Perceptual defense
z 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 Principle—People tend to perceive
an incomplete picture as complete.
• The Principle of Similarity—Groups objects share
similar characteristics.
• The Figure–Ground Principle—One 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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FF EE
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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
z Perceptual map
z Company’s own strengths and weaknesses in
comparison with competitors
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Excellent product
quality
Perceptual Map
Low High
value for value for
money money
Low product
quality
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Thank You
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Consumer Perception
y Consumer selects, organizes and interprets stimuli
into a meaningful and coherent picture of the world.
y How we view the World around us!
y Consumers make decisions based on what they
perceive rather than what the objective reality is.
y Consumers see what they want to see!
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Elements of Perception
y Sensation: Stimuli and Intensity
y Absolute threshold (e.g. seeing an ad)
y Sensory adaptation (Phenomenon of getting used to),
e.g. change ad campaigns, package
y Differential threshold JND (Weber’s Law); product
improvement decisions
y Negative changes (Price rise, size, quality reductions,
etc.)
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Selective Perceptions
y Nature of the stimulus: What you want to see is based
on what your motives are at that time.
y Selective exposure: Pleasant ads
y Expectations and previous experience
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Perceived Risk
y An uncertainty arises when consumers cannot
foresee the consequences of their purchase decisions.
y Depends on the person,the product, and the purchase
situation.
y High risk perceivers categorized as narrow
categorizers.
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Broad Categories
y Product category perceived risk, e.g. to buy a digital
camera or not.
y Product specific perceived risk, e.g. which brand of
camera to buy.
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Types of Perceived Risk
y Functional risk: The risk that the product will not
perform as expected.
Will the cell phone I bought work for the given
warranty period?
y Physical risk: The risk to self and others that the
product may pose .
Will the cell phone damage my health? Is it safe to
use?
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y Financial risk: The risk that the product will not
be worth its price.
Will the price of mobile/laptop drop after I buy it?
y Social risk: The risk that a poor product choice
may result in some form of social embarrassment.
Will my mobile look like an outdated model?
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y Psychological risk: The Risk that a poor product choice
will bruise the consumer’s ego.
After buying this product, will my peer group members
laugh that it is a wrong choice?
y Time risk: The risk that the time spent in product search
may be wasted if the product does not perform as
expected.
I have spent so much time in buying a new camera/laptop.
Was it worth or a waste of time?
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How Customers Handle Risk
y Seek information,
word of mouth, newspapers
y Buy known brands/become loyal,
e.g. buy Annapurna Atta.
y Select by Company/Brand image,
e.g. buy Sony TV / Nokia Cell phones.
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How Customers Handle Risk (cont.)
y Rely on Store image, e.g. buying from known shops.
y Buy the most expensive model.
y Seek reassurance
(money‐back guarantees, pre‐purchase trial, warranty
period).
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Application of the Concept
y Find out the nature of risk customers perceive before
purchasing new products.
y Remove the nature of anxiety of customers.
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Thank You
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Consumer
Beliefs
Consumer Consumer Consumer

Attitudes Intentions 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 person’s assessment of the significance of an attribute.

The amount of attention directed to it.
A person’s 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

company’s 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
brand’s key focus and positioning, e.g. Marie biscuits (Britannia,
Parle).

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Beliefs Examples
Companies or Retailers mark up prices before Bargaining behaviour

putting them up on sale.
Discounts offered by reputed companies are Wait for the discount
genuine reduction in prices. 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. Positioning at a lower quality

Higher priced brands are not superior in quality end, as done by Haier,
by the same degree of multiplier. Lenovo
Shopping in a big departmental store saves Big Bazaar, Subhiksha
money.
Packaged ready-to-eat food items marketed in Limited success of MTR, ITC
India are generally not fresh. foods

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As part of “Advertising Experience”: Influence on viewers’

moods, attitudes, recall, affinity,
Examples: Hamara Bajaj Campaign, Amul Butter—“Utterly, 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 object–using a jingle.
Mere exposure—frequent exposure to stimulus
increases one’s desire for it.
Environmental forces
Example: design of the physical environment, cafes

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Decision-making hierarchies:
High involvement: beliefs attitudes behaviour
Low involvement: beliefs behaviour attitudes
Experiential hierarchy:
Affect behaviour 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 act + SN
A act = ∑ i
b ie i
SN = ∑ j
NB j MC j

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Changing Consumer Attitudes: Changing

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

reality and then stabilized and reinforced.
9 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 attribute’s importance is more difficult than
changing a belief.
9 How is a brand perceived relative to ideal performance?
9 Increasing attribute importance is desirable when the

competitor’s 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 Sequential model of

purchase and repurchase
Learning 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 ?
¾ Perceived relevance of the object of consideration based on

inherent needs, values and interests
¾ A general level of interest in or concern about an object or
activity without reference to a specific position
Types of Involvement
¾ Situational (Purchase-Decision) Involvement
The level of concern/care the consumer brings to bear on a
particular purchase decision
¾ 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.)
¾ Enduring involvement is related to the way one
views oneself and is often linked to Family,
Group and Lifestyle (Psychographic) variables.
¾ Perceived risk is related to purchase

involvement.
¾ In Low Involvement situations:
¾ In High Involvement situations:

Behaviour Attitudes
Attitudes Behaviour
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Purchase Involvement
Is Effected by:
The Product
The Individual
Class
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
Interpretation
• Price
• Symbolic meanings
INVOLVEMENT and
• Potential for harm Integration process
• Potential for poor performance
Situational Self-relevance
(Consequences and Values)
Situational context
• Purchase situation
• Intended-use situation
• Time pressure
• Social environment
• Physical environment
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Means-End Basis for Involvement
PRODUCT KNOWLEDGE SELF KNOWLEDGE
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Enduring Involvement Characteristics
High Low
Many Attributes Attributes are less

Evaluated important (very few used)
Narrow Latitude of Wide Latitude of

Acceptance 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 Reminder Ads and Ads with

(reduce counter-arguments) Little Substance
Fewer Ads but packed with Frequent Ads–Little or no

Information Content–only a few points
Price may be Relatively Less Price may be Relatively Less

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

Involvement in Decision Making
INVOLVEMENT
LOW HIGH
Adequate product Choose the

Motivation
at minimum effort best product.
LOW
KNOWLEDGE
Choice Criteria Very few concrete Unclear about

attributes criteria.
Satisfactory
Motivation Optimize satisfaction.
product
HIGH
Very few abstract Use many search
Choice Criteria
criteria and decision tools.
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Creative Tactics
INVOLVEMENT
LOW HIGH
Provide one or
INFORMATIONAL Provide believable information.
two clear
(–ve) Don’t overclaim.
MOTIVATION
benefits.
Emotional
TRANSFORMATIONAL authenticity of Consumer must personally
(+ve) execution and identify with feelings created.
liking the Ad.

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High Enduring Involvement Customers

¾ Develop product class, brand expertise.
¾ Search for information in an ongoing manner.
¾ Take special interest in product care.
¾ Augment/upgrade products; purchase “ad-ons” and

complementary products.
¾ Become opinion leaders/brand advocates; build close

bonds with the company.
¾ May participate in new product idea generation.

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A Model of Emotion-driven Choice
Symbolic
Pride
meaning of
Status
consumption
Anxiety
Self Social
Motivation Preference formation Justification

PHI Learning
The Psychology of a BRAND

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

High Involvement
Symbolic
Brands
Cognition Emotions
Functional
Brands
Low Involvement
143
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Brand Trust and Confidence
Risk
Perception
Symbolic Brands
Functional Brands
144
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Positioning a Brand
Why? For whom?
When? Against whom?
145
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Brand Identity Prism

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

146

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Building a Brand in Consumers’

Mind-space
Trust
Pe
rce
pti
on
o fQ
ua
lity
Bra
nd
A wa 147
re ne Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar
ss
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Thank You
148
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Consumer
Learning
Dissonance
and
Experience

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Consumer Learning
• It is the cognitive process of acquiring skill and
knowledge; learning is the acquisition and
development of memories and behaviours,
including skills, knowledge, understanding,
values, and wisdom.

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Importance of Learning
• Marketers must teach consumers:
9 where to buy
9 by whom and for whom the purchase is to be done
9 how to use, feel and perceive the product
9 how to maintain the product
9 how to dispose of products

PHI Learning
Learning Taxonomy
Learning

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Learning Theories
Behavioural Theories Cognitive Theories
Theories based on the A theory of learning based
premise that learning on mental information
takes place as a result of processing, often in
observable responses to response to problem
external stimuli. Also solving.
known as stimulus
response theory.

PHI Learning
Learning Processes
Intentional Incidental
Learning acquired as a Learning acquired by
result of a careful accident or without
search for information. much effort.

PHI Learning
Elements of Learning Theories
1. Motivation
2. Cues
3. Response
4. Reinforcement
• Stimulus
• Drive
• Response
• Reinforcement

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A positive or negative
outcome that
influences the
likelihood that a
Reinforcement specific behaviour will
be repeated in the
future in response to
a particular cue or
stimulus.

PHI Learning
The inability to
Stimulus perceive differences
Generalization between slightly
dissimilar stimuli.

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Reinforcement
Positive Negative
Reinforcement Reinforcement
Positive outcomes that Unpleasant or negative
strengthen the outcomes that serve to
likelihood of a specific encourage a specific
response behaviour
Example: Ad showing Example: Ad showing
beautiful hair as a wrinkled skin as
reinforcement to buy reinforcement to buy skin
shampoo cream

PHI Learning
Other Concepts in Reinforcement
• Punishment
– Choose reinforcement rather than punishment.
• Extinction
– Combat with consumer satisfaction.
• Forgetting
– Combat with repetition.

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A process by which

individuals observe the
behaviour of others, and
Observational
Learning
consequences of such
behaviour. Also known
as modelling or vicarious
learning.

PHI Learning
Components Of Observational Learning
Production
Attention Retention Motivation
Process
Observational Learning

PHI Learning
Holds that the kind

of learning most
characteristic of human
Cognitive
beings is problem
Learning solving, which enables
Theory individuals to gain
some control over their
environment.

PHI Learning
A behavioural learning
theory, according to
which a stimulus is
paired with another
Classical
stimulus that elicits a
Conditioning known response which
serves to produce the
same response when
used alone.

PHI Learning
Models of Classical Conditioning

PHI Learning
A behavioural theory of
learning based on
trial-and-error process,
Instrumental with habits forced as the
(Operant) result of positive
Conditioning experiences
(reinforcement)
resulting from certain
responses or behaviours.

PHI Learning
Operant Conditioning (Cont.)

is the process in which the frequency of
occurrence of a bit of behaviour is modified by
the consequences of the behaviour.
If positively reinforced, the likelihood of the
behaviour being repeated increases.
If punished, the likelihood of the behaviour
being repeated decreases.

PHI Learning
Operant (or instrumental) conditioning (Cont.)
Stimulus
Response
Can you explain
Reward habit?
Reinforcement

PHI Learning
Instrumental (Operant) Conditioning (Cont.)
Reinforcement
Likelihood
Of Behaviour
Behaviour Negative
Reinforcement
NOT the
same thing!
Likelihood
Punishment
Of Behaviour

PHI Learning
Reinforcement: An Example
You eat a cake (behaviour)
‐‐‐‐> Delicious (reward)
‐‐‐‐> more likely to eat more
cakes on other occasions

PHI Learning
Extinction
Behaviour which is not
reinforced tends to
become extinct
gradually.

PHI Learning
Ehrenberg ATR Model
Awareness
Trial
Advertising
Reinforcement
Repeat purchase
Note: The thicker (darker) lines denote the
major effects.

PHI Learning
Trial
Learning/Experience
Repeat purchasing
Behavioural
Commitment
Loyalty
Involvement
Loyalty
Attitudinal
Loyalty

PHI Learning
Brand Loyalty vs. Habit
• Habit: the consumer picks
product without much
thought, perhaps for
convenience.
• Loyalty: the consumer
actively seeks the product.

PHI Learning
Brand Loyalty
Function of Three Groups of Influences
1. Consumer drivers
2. Brand drivers
3. Social drivers
Four types of loyalty
1. No loyalty
2. Covetous loyalty
3. Inertia loyalty
4. Premium loyalty

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Developing Brand Loyalty: Tricks and Traps
1. Product quality ‐‐‐> satisfaction
2. Sales promotions
3. Stealing loyal consumers away from
others
4. Price
– value
– exclusiveness

PHI Learning
Memory
• Short term (compare to RAM ‐‐> volatile)
– mnemonic devices
• Long term (compare to hard disk ‐‐> longer
in duration but imperfect—“I remember it
well…”)
STM REHEARSAL LTM
DECAY
PHI Learning
Retention
Information is stored in
long‐term memory
Episodically: by the order
in which it is acquired
Semantically: according to
significant concepts
Total package of associations
is called a schema.

PHI Learning
Role of Memory in Learning
Stages
1. Encode
2. Storage
3. Decode and retrieval

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Recognition vs. Recall

Recognition
Remembering with stimulus
Recall/Retrieve
Remembering without stimulus

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The Cycle of Remembering

Learning
Short-term Long-term
Memory Memory
Retrievall

PHI Learning
The consumer
observes a positive
response by two
teens.

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Information Processing
• Relates to cognitive ability and the complexity
of the information.
• Individuals differ in imagery–their ability to
form mental images, which influences recall.

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Information Processing and Memory Stores

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Information Processing
• Movement from short‐term to long‐term
storage
depends on:
• Rehearsal—cognitive practice
• Encoding—memory’s associations or the way
information is stored.

PHI Learning
Experiential Marketing
Identity Related Communication/
Logo/Names Advertising
(NIKE) (TASTE OF INDIA)
Product Presence Website/Electronic
Design/Packaging Experiential Marketing Media
(FRAGRANCES) (ENCYCLOPEDIAS)
Co‐Branding Spatial Environment
Events/Sponsorships Retail/Office
(FEMINA MISS INDIA) (BARISTA)

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Consumers Dissonance

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Cognitive Dissonance
• Psychological discomfort caused by
inconsistencies among a person’s beliefs,
attitudes, and actions.
• Varies in intensity based on importance of issue
and degree of inconsistency.
• Induces a “drive state” to avoid or reduce
dissonance by changing beliefs, attitudes, or
behaviours and thereby restore consistency.

PHI Learning
Why the Dissonance?

PHI Learning
Causes of Dissonance
y Performance risk
y Physical risk (wear‐out)
y High financial commitment
y High involvement level
y High social visibility
y Information overload

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Is the Grass Greener on
the Other Side?
• Dissonance–predominantly post‐purchase behaviour
• Lack of confidence (doubts) about the correctness of a
prior purchase decision and efforts to reconcile doubts
Did I do the right

thing?

PHI Learning
Reactions to Dissonance
• The Consumer eliminating or re‐evaluating one of the cognitive
elements, or his responsibility, or control over the act or decision.
• Information can be denied or distorted or forgotten in the service
of dissonance reduction.
• Minimizing the importance of the issue or decision that led to the
dissonant state.
• New cognitive elements can be added to support the decision.
• Potential Reactions
• Return the product.
• Seek confirmatory information.

PHI Learning
Thank You.

PHI Learning
Communication and
Consumer Behaviour

PHI Learning
Direct Communication

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.

PHI Learning
Basic Communication Model:

PHI Learning
The Sender
| Initiator of a communication
| Formal source–organization
| Informal source–A close friend, peer group or

relative who provides information or advice.

PHI Learning
The Receiver
| A targeted prospect or a customer
| Every receiver interprets the message in his/her
own perceptions and experiences.
| Intermediary receivers–Those who would specify
or prescribe the marketer’s products (Wholesalers,
retailers and distributors).
| Unintended receivers–Shareholders, creditors,
suppliers, employees, bankers, and the local
community.

PHI Learning
The Medium
| The communications channel
| Impersonal–a mass media
| Interpersonal–Formal or Informal
y Formal–between a marketer’s agent (sales person)
and a customer
y Informal–between two or more people by mail, etc.
| Classification of mass media

y Print (Newspapers, magazines, billboards)
y Broadcast (Radio, television)
y Electronic (Internet )
PHI Learning
Social Media: 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.

PHI Learning
Simply put:
“Social Media refer
to people having
communication
online.”

PHI Learning

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The Message
| Verbal
y Spoken or written
y Has more product specific information.
| Non-verbal
y A photograph, an illustration or a symbol
y Stays in the mind of a customer for long.
| Generally a mix of verbal and non-verbal message

is preferred.

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
y Body language
y Facial gestures
y Verbal feedback
| Feedback is essential and difficult to obtain in

impersonal communication.

PHI Learning
The Communication Process

Communication process involves the:
| Sender
| Receiver
| Medium
| Message
| Target Audience (the receivers)
| Feedback–the receiver’s response

PHI Learning
Comprehensive Communication Model

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The Message Initiator (Source)

Issues with
Credibility
| Credibility of Informal | Sources include word of

Sources mouth.
| Credibility of Formal | These sources are also
Sources called opinion leaders.
| Informal sources may
| Credibility of
not always be credible.
Spokespersons and
Endorsers
| Message Credibility

PHI Learning

Issues with
Credibility
| Credibility of Informal | Neutral sources have the

Sources greatest credibility.
| Credibility of Formal | Source credibility judged on
Sources past performance, reputation,
| Credibility of Spokespersons service, quality, spokesperson’s
and Endorsers image, retailers, and social
| Message Credibility responsibility.
| Institutional advertising used
to promote favourable company
image.

PHI Learning

Issues with
Credibility
| Credibility of Informal Effectiveness related to:

Sources y The message
| Credibility of Formal y Synergy between the
Sources endorser and the type of
| Credibility of product
Spokespersons and y Demographic characteristics
Endorsers of the endorser
y Corporate credibility
y Endorsement wording

PHI Learning
Maria Sharapova for Nike

PHI Learning

Issues with
Credibility
| Credibility of Informal | Credibility of retailers

Sources | Reputation of the medium
| Credibility of Formal that carries the ad
Sources | Consumer’s previous
experience with product
| Credibility of
Spokespersons and
Endorsers

PHI Learning
The Target Audience (Receivers)

| Personal characteristics and comprehension
| Involvement and congruency
| Mood
| Barriers to communication
y Selective exposure to messages
y Psychological noise

PHI Learning
Feedback—Receiver’s Response
Feedback should be gathered:
y Promptly
y Accurately

PHI Learning
Advertising Effectiveness Research

Media and message exposure measures:
y How many consumers received the message.
y Which consumers received the message.

PHI Learning
Advertising Effectiveness Research

(Cont.)
Message Attention and Interpretation

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

y Day-after recall

PHI Learning
Designing Persuasive Communications

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

PHI Learning

Message Structure
and Presentation
| Resonance | Wordplay
| Message framing | Used to create a double
meaning when used
| Comparative
with a relevant picture
advertising
| Order effects
| Repetition

PHI Learning
Word Play
| An ad with word play
used for signifying the
need to save water.

PHI Learning
Word Play on SUV

PHI Learning

Message Structure and
Presentation
| Resonance | Positive framing

| Message framing | Negative framing
| One-sided vs. two-sided
| Comparative advertising
| Order effects
| Repetition

PHI Learning

(Contd.)
Presentation
| Resonance | Marketer claims product

| Message framing superiority over another
brand.
| Useful for positioning.
| Order effects
| Repetition

PHI Learning

(contd.)
Presentation
| Resonance | Primacy
| Message framing | Recency
| Order of benefits
| Brand name
| Order effects
| Repetition

PHI Learning

(contd.)
Presentation
| Resonance | Important for learning

| Message framing
| Order effects
| Repetition

PHI Learning
Emotional Advertising Appeals
Fear
Humour
Abrasive advertising
Sex in advertising
Audience participation

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Ads with Humour

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Messages with Fear

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THANK YOU.

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Consumer Personality

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Personality Selection
Psychological
Brand Personality
Product Target Segment Functional
Economic

PHI Learning
Brand Personality
` Personality created to appeal target customers
` Association with brand:
` Character/Personality
` Emotional
` Positioning of brand:
` Social
` Values
` Benefits provided:
` Attributes
` Quality

PHI Learning
Dimensions
Source: Dimensions of Brand Personality by Jennifer L. Aaker

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

PHI Learning
Components of Brand Personality

` Brand Name & Logo
` Colour & Packaging
` Advertisement (including Brand Ambassador)
` Price
` Performance

PHI Learning
Personality-Colour Association
Respect Sophistication
Authority Power
Authority
Secure
Natural
Caution
Relaxed
Novelty Powerful
Temporary Affordable
Warmth Human Informal
Exciting, Hot
Strong
Passionate Purity
Regal Cleanliness
Wealthy Informal Delicacy
Stately Masculine Formality
Nature

PHI Learning
Brand Names
` Red Bull, Power Horse – Energy Drinks
` Himalayan – Mineral Water
` Le Bon – Cheese
` Twinings—Darjeeling Tea
` Puma – Footwear
` Dove – Bathing Soap

PHI Learning
Thank You ☺

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Role of Age
Consumption Perception
Behaviour
Learning
Choice CONSUMER
Knowledge
Preference
Ideology Intuition

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Increased Spending by Young

Unmarried Employees

PHI Learning
Tech savvy Adults Convenience
Shift from “value for

money” to lavish lifestyle
Stylish looks and features

PHI Learning
“Protection from germs”: Economical without sacrificing the quality

PHI Learning
Higher Spending by Middle–aged

People and Senior Citizens

PHI Learning
Feeling and looking

good Old Convenience
Shift focus from “saving for children”

to enjoying their own life
Stylish looks and features

PHI Learning
People Change by Age

PHI Learning
Age-specific Targeting
Target kids, adults and older consumers with different
set of products
Customers classification–new born (0-1month), infant

(2–5 months), cruiser (6-12 months), toddler
(13–18 months), explorer (19–23 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 12–24 yr olds.

PHI Learning
Age and Life Stage
Higher expenditure

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Decision-Making Process
Type of Families Role of spouses
` Delayed marriages Husband-dominant
decisions
` Dual career families
Wife-dominant
` Smaller families decisions
Autonomous decisions
Joint decisions
Need to understand decision maker at every stage

PHI Learning
THANK YOU.

Influence of
Reference Groups

Marketer Dominated Source Non-Marketer Dominated Source
High Low
Mass
Media
Delivered
Personally
Delivered
Low High
261
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Contents
1 Reference Groups
2 Types of Reference Groups
3 Reference Groups in India
4 Reference Group in Choice of

Education—Possible Hypotheses
262
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Reference Group
Person Values
Group Formation Attitudes
Point of Ref. Behaviour
263
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Types of Reference Groups
Reference
Reference Groups
Groups
Contactual Aspirational Disclaimant Avoidance
264
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Indian Reference Groups
Indian Reference
Groups
Non-Celebrity
Education & Faith Groups

Career Choices
Parents Religious
Relatives Ritual
Well-Wishers Worship
Seniors Spiritual
Friends Caste based
No professional catering Social marketing
quotient
265
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Education & Career Choices
Reference Groups
Early
School Middle
School
Career
Choice Sphere of Influence
Graduation
(Entry)
Post-
Graduation
266
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Hypotheses
1 2 3
Early School, unlike Regional variations arise Reference Group
Middle School, is still as supply—demand of influences changes
governed more by occupations & societal while at graduation
proximity to home than opinion govern Individual chooses
by reference groups graduation & career Reference group now
267
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Impact of Culture
on Consumer Behaviour

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What is Culture?

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CULTURE
Culture is a combination of learned beliefs, values and customs that
can direct the behaviour of consumers in a specific society.
Knowledge &
In India, hard work is attributed with success.
beliefs
Values
Customs Turban is worn by male members of the Sikh religion in India.

PHI Learning
Characteristics of Culture
Characteristics
• Transmitted from generation to generation.
• Culture is learned rather than being born
with. • Rituals practiced.
• Culture is manifested within boundaries of • Dress sense–(Sari is the traditional Indian

acceptable behaviour. dress while jeans, skirts, frock, etc. are
considered more modern.

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Cultural rules can be categorized

into three types
• Explicit standards as to how one should behave, and violations
often carry severe sanctions.
Formal
Rules
Informal
Rules
• Involve implicit standards as to what constitutes a good product.

• In Bollywood, normally a Hindi movie must have at least five
Technical good songs to be successful.
Rules

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.

PHI Learning
Indian Teenagers
in contrast to Western Teenagers
Western teenagers Indian teenagers
• Grew up in relative economic stability. • Grew up in period of fast economic growth
with good prospects.
• Confronted by new realities: drugs, AIDs, • Confronted by new realities through the
pollution, teenage pregnancy, divorce, etc. mass media but with few real-life
experiences.
• Less sheltered home environment and • Have more sheltered home environment and
unstable family life. From young age itself stable family life. Youth live with family of
learn to be independent and make their own origin until their marriage.
choices in life.
• More independent and self-sufficient. • Are less independent and self-sufficient.
• Focus early on things they believe would • Are idealistic in their expectations and tend
provide for a secure and happy life, like to deal only with issues that touch them
earning money, spending culture or material personally.
possession and acquisition.
• A more stressful life as self-esteem is vested • Lead a less stressful life as achievement in
in doing well in multi-faceted roles. studies is paramount and other matters
appear secondary.

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Features of Indian Culture

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Dimensions of Cultural Diversity in India
• Language
• Rural vs. Urban India
• Rich vs. Poor
• Geographical diversity
• Liberal vs. Conservative

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Diversity in Language, Religious
Customs, Beliefs
y There are 28 states and 22 languages
y Numerous dialects spoken by people
y Religious customs, rituals and beliefs vary
y Different identities, ideologies, interests and outlook
Implication for Marketers
y Communication & packaging in local language
y Products need to be aligned with culture
There is a right way and wrong way for everything, but that can change from
place to place….
PHI Learning
Rural vs. Urban India
y 30% of the population live in urban areas.
y 70% live in rural areas–but this means the majority of the
market is spread across the country.
y Different income levels in rural and urban India.
y Rural customers attach more importance to functionality
while urban consumers give importance to
aesthetics/service parameters.
Implication for Marketers
y Different marketing mix for both the markets
y Mode of distribution/channels differs

PHI Learning
Rich vs. Poor: Different needs to fulfill
Source: Bijapurkar 2007 (NCAER)

PHI Learning
Geographical Diversity
An Average Urban North An Average Urban Eastern
Indian Consumer… India Consumer…
Beliefs & values–conservative in Beliefs & values–slow in speed,
thinking, respectful relaxed, simple
Lifestyle–flamboyant, likes to have a lot Lifestyle–traditional, simple basic
of external glitter Behaviour–opinionated, slow
Behaviour–warm and friendly, herd adopters, rigid
mentality, inquisitive
An average Urban Western An Average Urban South
India Consumer… Indian Consumer…
Beliefs & values–progressive by nature, Beliefs & values–orthodox and deep
professional, values time rooted
Lifestyle–balanced, but very task‐ Lifestyle–simple
oriented Behaviour–curt but pragmatic,
Behaviour–non‐interfering but helpful, practical, conservative, cautious, not
early adopter, trendsetter, calculative a risk‐taker 282

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Marketers must Understand
Indian Culture in Order to Succeed
• Ford cars specially designed for Indian roads.
• Electrolux's made‐for‐India fridge–chill drinking water, keeps food fresh &
withstands long power cuts.
• Samsung–microwave oven with grill.
• Nokia launched a handset “Made for India” Nokia 1100.
• McDonald’s McAloo Tikki Burger & Pizza McPuff.
• Cartoon Network introduced South Indian folk tale “Tenali Ram”.
• Walt Disney cartoon TV shows are in Hindi.
• Omega watches picked an Indian film personality to replace Cindy
Crawford in its ad campaign.
• Coca‐Cola has redesigned its crates as well as trucks for safe delivery on
poor roads.

PHI Learning
Overall Marketers need to…
…Indianize, Humanize, Harmonize !!

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OR

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OR

288
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A Model of Consumer Behaviour

289
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Buyer
Buyer Decision Process
Characteristics • Problem Recognition
• Personal • Information Search
• Psychological • Evaluation Decision
• Post-purchase Behaviour
Post-purchase Trial
Marketing–4Ps Environmental Evaluation
• Product • Economic • Product Choice
• Price • Technological • Brand Choice
• Dealer Choice Repeat
• Place • Political • Purchase Timing
• Promotion • Socio–Cultural • Purchase Amount Purchase
290
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Decision-Making Process
Perceiving a difference between a person’s ideal and
Perceiving a Need
actual situation big enough to trigger a decision
Problem Recognition
Clarifies the options open to consumers
Information Search Seeking Value
Prior Experience, Word of Mouth, Advtg/Publicity Mktg
efforts.
Evaluate the parameters and options available for product
Analysis of Alternatives purchase: Form Choice Criterion
Assessing Value
Decision on ‘when, where and from whom to buy’
Purchase Decision Buying Value
Post‐Purchase Value in
Evaluation during consumption/use
Behaviour consumption/Use
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Problem
• Why do I need it?
Recognition
Information Search • What exactly is this product?
Analysis of
• What options are available?
Alternatives
Purchase Decision • How exactly does purchase happen?
Post‐purchase
• Did I make the right choice?
Behaviour

293
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Problem Recognition
Ideal State
Actual State
Simple Expectations
Future goals/Aspirations Difference Physical factors
Motivations/Self Image
Need
Culture
External Stimuli
Change in Personal
Circumstances
Problem Recognition
Perceived difference between an ideal state and actual state
motivates the consumer to take actions.

294
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Marketing Implications

295
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Information Search
Internal Search
Process of recalling stored
External Search
information from memory Using outside sources
Dependent on motivation, Types:

ability & opportunity Pre‐purchase
Due to problem recognition
More recall in high Ongoing
involvement, perceived risk Regular; due to enduring
involvement
Information retrieved Information Search
Brand Retailer; media; experiential;
Attribute interpersonal; independent
Evaluation
Experience

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Evaluation of Alternatives: Alternative Set

300
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Total Set
Awareness Set
Consideration
Set
Purchase
Decision
301
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Purchase Decision: Process
Influencer plays an important role in consumer decision making.
Roles played by members of the family varies with demographic
Influencer may not be an expert but he/she assumes a key role in
parameters as well as with the type of the products
consumer decision and his/her family dynamics.

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Decision-Making Approaches

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Post-Purchase Behaviour
Consumer evaluates the product during consumption to see if it
satisfies the need/expectation.
Influenced by type of preceding decision‐making processes.
Depends on the level of purchase involvement or the level of interest
in a purchase.
Cognitive dissonance and Experiential marketing play an important

role in shaping up these behaviours.

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Selective Search Gathers facts that supports a particular decision
for Evidence Disregards facts that support other conclusion.
Conservatism
and Inertia
Unwillingness to change thought pattern
Group Think Peer pressure to conform to views held by a group
More attention on recent information
Recency
Ignores/Forgets distant information
Experiential Inability to look beyond the scope of past experiences
Limitations Rejection of unfamiliar

307
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Consumer decision making process
among today’s youth

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What is Celebrity Endorsement?
| The use of celebrities in order to increase the sales and/or
the recall value of a brand is called celebrity endorsements.
Types of Celebrity Endorsements
| Testimonial: Attestation by a celebrity based on personal usage.
| Endorsement: Celebrity lends his/her name and appears on
behalf of the product or service.
| Actor: Character endorsement.
| Spokesperson: Celebrity represents the brand or company over
an extended part of time.
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Advantages
y Instant awareness, knowledge about the brand and
easy recall.
y Values and image of the brand are defined,
highlighted and refreshed by the celebrity.
y The celebrity adds new edge and dimension to the
brand.
y Credibility, trust, association, aspiration and
connectivity to brand.
y Belief in efficiency and new appearance that will
result in at least trial usage.

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Hypothesis 1
Every product has its own identity and it’s very important to
endorse a product with a suitable personality.

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The Right Personality
Perfect match between brand image and celebrity
y Celebrity's fit with the brand image and the celebrity‐
target audience match.
y Celebrity associated values and the celebrity‐product
match.
y Costs of acquiring the celebrity and his or her
popularity along with controversy risks associated with
the celebrity.
y Credibility, availability and physical attractiveness of
celebrity.

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Hypothesis 2
Indian consumers have matured and celebrity
endorsement alone is not sufficient to attract them.

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Hypothesis 3
There are chances that the celebrity gains higher
popularity than the product endorsed.

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Hypothesis 4
Single celebrity—Multiple products: Consumer’s
dilemma to associate the brands with the celebrity.

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Hypothesis 5
Consumer buys a product based on its features rather
than the celebrity endorsement.

PHI Learning
Thank You!

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IMPULSIVE BUYING
BEHAVIOUR

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Impulse Buying
y Sudden, compelling, unplanned, hedonically complex purchase.
y Generates billions of dollars in sales every year for consumer

products.
y Reacts often ‘mindlessly’ to stimuli that trigger certain

automated responses.
y Information processing might have taken place earlier;

otherwise, behaviour may be totally impulse driven.

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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

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Stops Needed for Boosting

Impulse Sales

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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.
y 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.
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

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Hypothesis 2
Lifestyle traits of a person characterize his impulsive
purchase.
Traits considered:
y Fashion involvement
y Price consciousness

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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.

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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

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Thank you ☺

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Indian Market
Diversity

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Demographic Diversity

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Diversity in Men
Normally, an Indian Male is:

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Diversity in Women
Contented
Conservative Normally, an Indian Woman is:
Anxious • Housewife; happy with her state of her life/society

Rebel • Working women; happy with existing state of affairs
Troubled • Housewife; unsure of sitting at home
Homebody
• Traditional; believes in saving for future
Tight-Fisted • Affluent; comfortable with the finer things in life
Traditionalist
• Housewife; active & sees herself as equal to husband
Affluent
• Working women; believes in looking after herself
Sophisticated
Contemporary
Housewife
Gracious
Hedonist
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Diversity in Youth

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Types of Diversity

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Regional Diversity in India

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Regional Diversity (cont…)

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Socio-Economic Diversity

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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.
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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.

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Understanding
Indian
Rural Market Behaviour

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Importance of Rural India
y India still lives in her villages.
y Urban markets are overcrowded and getting saturated.
y The understanding of the ‘rural’ consumer behaviour is diffused
and sometimes confusing .
y ‘Rural markets’ need different approach from marketing in
urban locations.

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Defining Rural India
Organization Definition Limitations
NSSO ( Census) Population density Rural not defined
< 400/sq km
75% of the male
working population
is engaged in
agriculture.
Planning Places up to 5,000 Characteristics not

Commission population are defined
considered rural

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Rural India–Population Trends

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Rural Income Dispersal

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FMCG Consumption Trends
Products Urban (1000 HH) Rural (1000 HH)
Toilet Soap 998 992
Detergent Cake 980 950
Cooking Oil 968 952
Hair Oil/Cream 897 787
Tea 876 758
Toothpaste 822 449
Washing Powder 819 576
Electric Bulb 723 394
Shampoo 663 352
Biscuits 579 314
Health Beverages 324 67
*HH = Households
Source: National Council for Applied Economic Research, 2002
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Myth 1: Rural is one
homogeneous mass.

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Rural SEC classification

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Upmarket Rural Consumers
Rural SEC Groups
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 ?
45
Percentage Of HH's Owning
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
5 W /M ac h
0
R1 R2 R3 R4
Stereo-typed view of undifferentiated

rural consumers no longer valid
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Myth 2: Companies/Brands can Thrive
by Operating Entirely on Urban Market

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Rural Market has Emerged
by its Sheer Size
y 742 million people
y Estimated annual size of the rural market (Rs., crore)
y FMCG 65,000
y Durables 5,000
y Agri‐inputs (including tractors) 45,000
y Two/Four‐Wheelers 8,000
y Total 1,23,000

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Marketing Opportunities
y Low penetration rates in rural areas (per 1000 households)
Durables Urban Rural Total

y Motor Cycle 77 28 42
y CTV 304 48 121
y Pressure Cooker 635 178 309
y Refrigerator 335 35 120
FMCG Urban Rural Total
y Shampoo 663 352 442
y Tooth Paste 822 449 556
y Health Beverage 324 67 140
y Packaged Biscuits 579 315 390
y Face Cream 429 185 254
Source: NCAER 2002

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Myth 3: Rural India – A Black hole

for communication

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Media Exposure Levels
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
Percentage Exposed At Least Once/ Week
70
60
50 P re s s
TV
40
C & S TV
30 R a d io
20
10
0
R1 R2 R3 R4

PHI Learning
Infrastructure Improving Rapidly
70
60
50
40
30
20
10
0
Satellite Radio Press Cinema TV All
TV Media
70% of R1,R2,R3 can be reached through mass media.

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Myth 4: Rural GDP is All about
Agriculture

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100%
80% 33.9
60% 17.7
40%
48.4
20%
0%
AGRI IND SER

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Myth 5: Rural Disposable Income is a
Function of Monsoon and not Growing.

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Myth 6: Reach and only reach is the key.

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Distribution of Villages
Source: Census 2001

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Myth 7: Urban trickle down
communication works in rural India.
What is a Rural Consumer Like?

PHI Learning
KEEP IT SIMPLE
“I am eager to adopt or buy, but I do so only if you talk
in my language and signage.”
Supporting Insights
y It’s great fun to watch TV, but I cannot understand and relate to it.
y I am willing to listen and change, only if you interact and engage
with me.
y I am simple–I take things literally, especially when it comes to ads.
y I can’t read or write, but I can understand symbols, colours and
images.
y Talk to me in my language in a simple way, that’s what I
understand.

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FAMILIARITY BREEDS COMFORT
“Only if it’s familiar, will I trust.”
Supporting Insights
y I have faith in the Brands I have used.
y If I am satisfied with my familiar products, then why should
I change?
y I am averse to taking risks, particularly if it is new and
unfamiliar.
y Familiar things make me secure.
y If I find my village folks are using a particular brand, then I
feel reassured.
Propensity for trial is relatively poor.
Choice dictated by Group Influence
PHI Learning
LUXURIES@ Rs.5
“Jo Chahoon Woh Paoon, Lekin Panch Rupai Mein”
(Will get what I want, but only at Rs. 5)
Supporting Insights
y I buy low cost products because they fit into my budget,
as they give the value I am seeking.
y At any time I have limited amount to spend, but I need
to buy a number of things, so luxury products are
important.
y Rs. 5–my lakshman rekha–I do not have more than that
to spend.
Rs. 5 and Rs. 10 are magical price points in rural India.

PHI Learning
SHOW VALUE–Then Rural Buyers
WILL BUY
“I will pay more only if you show me that I get more
tangible benefits that I want out of the product.”
Supporting Insights
y If I see and feel the difference – only then will I believe and act.
y Show me the value–Performance quality or quantity; only
then will I buy.
y If I can sense the difference, I don’t mind paying a little extra for it.
y If I can’t see the difference, I shall select the cheaper one.
y Price is important; yet it should meet my expectations.
Packaging and brand experience are the key.
PHI Learning
HAAT–MERI DUNIYAN
“Haats (village markets) are my window to the world-
where I experience new things.”
Supporting Insights
y Haat is my outing. I am looking to explore .
y Haat gives me an opportunity to buy products that I
wish to buy.
y Haats are a festive outing and lots of fun—where I get to
see new things.
y I have some places (Haats) which I regularly visit and
where I am open to change.

PHI Learning
Discoveries about Rural Market
y Discovery 1 : The rural market is a huge potential market.
y Discovery 2 : The rural consumer can be reached with a
combination of mass and unconventional media.
y Discovery 3 : The rural market is a differentiated market.
y Discovery 4 : Rural GDP is not about agriculture alone.
y Discovery 5 : Rural disposable incomes are growing and
growing fast.
y Discovery 6 : Quality of reach and not mere reach is going to
be the key differentiator for the rural market.
y Discovery 7 : Need for a rural marketing mix.
y Rural relevant advertising
y Consumer activation
y Use of non‐conventional media like haats, fairs, etc.
y Price point SKUs.

PHI Learning
“The future lies with those companies who see the poor as
their customers.”
CK Prahalad, Jan 2000

PHI Learning
4 Ps & 4 As
y Product–Price–Place–Promotion
y Acceptability–Affordability–Availability–Awareness
Marketing Tools Marketing Challenges
Product Acceptability
Price Affordability
Place Availability
Promotion Awareness

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Product

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Appropriate Product Strategies
y Small unit packaging
y Product features–service quality–price and
performance relationship
y Simplicity is the key
y New product designs
y Sturdy products
y Utility‐oriented products
y Branding strategy

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Packaging
y Associated with affordability ‐ convenience ‐ consumer
recognition, and product protection
y Packaging material, size, convenience and aesthetics

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Fakes: Some Examples

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Pricing

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Issues in Pricing‐Affordability
y Low cost/cheap products
y Avoid sophisticated packing
y Refill packs/reusable packaging
y Highlighting value
y Price adaptations

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Examples of Rural Pricing Strategies
Colgate‐ Cibaca
y Godrej: Cinthol, Fair Glow and
Godrej in 50 g packs, priced at
Rs. 4‐5, meant specifically for
Madhya Pradesh, Bihar and
Uttar Pradesh.
y HLL: Lifebuoy at Rs. 2 for 50 g.
y Coca‐Cola: The returnable
200‐ml glass bottle priced at
Rs. 5.

PHI Learning
Place‐Rural Distribution Challenges
y Large number of small markets
y Dispersed population and trade
y Poor connectivity
y Low availability of suitable dealers
y Inadequate banking/ credit facilities
y Poor product display and visibility
y Poor communication of offers and schemes

PHI Learning
Levels of Distribution
Level Partner Location
1 Company Depot/C & FA National/State level
2 Distributor/Van Operator/ District level
Super Stockist / Rural
Distributor
3 Sub‐Distributor/ Retail Tehsil HQ, towns and

Stockist/Sub‐Stockist/Star large villages
Seller
4 Wholesaler Feeder towns, large villages,
haats
5 Retailer Villages, haats

PHI Learning
Distribution Adaptations
y Hub and Spoke Model Example: Coca‐Cola
y Use of affinity groups Example: Project Shakti
y Haat Activation Example: Colgate
y Syndicated distribution Example: Cavin Care & Amrutanjan
y Use of marketing cooperatives Example: Warna Bazaar in
Rural Areas
y Mobile traders Example: FMCG companies

PHI Learning
Promotion Issues
Most of the products are sold in the local rural haats. Result:
y They may not fetch a very good price.
y They have limited demand resulting in low turnover and low
income.
y Chance for product improvement is limited.
Some state government bodies extend preferential treatment to
these products at the time of procurement.
Limited awareness.
Attempts are made to publicize and promote the sale of these
products through periodic exhibitions and melas.

PHI Learning
Promotion Adaptations
Conventional Non‐ Conventional Personalised
Television Haat and Mela Direct mailer
Radio Folk Media( puppet and magic POS (demonstration, leaflet)

show)
Press Video Van Word of mouth
Cinema Mandi (Market) Interpersonal communication
Outdoor: Wall Painting, Animator
Hoarding

PHI Learning
Melas & Haats
Melas Haats
1. 25,000 melas 1. Periodic markets located in larger villages
(> 40,000) populations.
2. Companies can concentrate on the
top 100 melas 2. 10–50 villages are serviced.
3. Pushkar Mela in Rajasthan 3. Sunday markets are most popular.
4. Organized by the state Veterinary 4. Average number of outlets is 315 and
Department average daily sales are about Rs. 2 lakhs.
5. Product sales, promotion, 5. Traders participate in at least 4 haats.
demonstration and database
6. 81% of the visitors are repeat customers.
generation
6. Cultural activities and rural sports

PHI Learning
Types of Promotions
y Advertising
y Sales promotions–coupons, contests, demonstrations and sampling,
Example: Tata Shakti Haat Hungama
y Direct marketing, Example: Videocon
y Publicity, Example: Project Shakti and AP Online
y Using a direct selling through a salesforce, Example: Swasthya Chetna
for Lifebuoy
y Push strategy–salesforce and trade promotion
y Pull strategy–advertising and consumer promotion

PHI Learning
Future Prospects
y Rural per capita consumption of FMCGs to equal current
urban levels by 2017.
y Industry analysts expect the FMCG sector in rural areas to
grow 40% against 25% in urban areas.
y Telecom expected to grow from 100 million connections
today to 300 million by 2012
y Semi‐urban & rural life insurance market expected to rise
from US$ 5 bn to US$ 20 bn by 2012.
y Government spending will continue to grow.

PHI Learning

PHI Learning
Changing Indian Consumer

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.
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 home-

making.
A more dynamic lifestyle leading to reliance on easy-to-use

products like ready-to-eat food, home delivery, etc.

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.

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 individual’s values/beliefs may differ from the

prevalent culture Æ unorthodox.

PHI Learning
SOME CHANGES AS NOTICED IN

INDIA

PHI Learning
Eating Out
In urban India, families that do
not eat out are considered old-
fashioned 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.

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.

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.

PHI Learning
Women Empowerment
• More women entering the
workforce
• Increased use of cosmetics
• Increasing time pressures Æ
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

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

PHI Learning
Marriage
• Earlier, arranged marriages used to
happen with elder’s consent.
• Many people nowadays rely on
individual choice and judgement.
• Examples: matrimonial sites
proliferate – shaadi.com,
bharatmatrimony.com

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.

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.
PHI Learning
Credit
• Earlier, people avoided
buying things (non-
essential) on credit/loan.
• Controlling desires Æ
Instant gratification
• Easy availability of credit
• Rise in number of home and
vehicle (Two, four
wheelers) loans

PHI Learning
Snacking
• Eating 2 or 3 times a day
Æ Eating when hungry.
• Snacks and chocolates of
wide variety available –
Lays, Kurkure, Perk,
Cadbury Dairy Milk
chocolates, Britannia
biscuits, etc

PHI Learning
Movies and Serials

• Earlier, Movies made in
Bollywood (Emotions,
Action, Drama) were a
craze.
• In India, women are
mostly housewives–idle
time at home.
• Hence, the debut of serials
targeting this segment was
launched by Balaji
Telefilms (Ekta Kapoor).
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
PHI Learning
THANK YOU

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PHI Learning

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 1

Consumer behaviour entails the

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 2

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 3

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 4

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Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar

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Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 13

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 14

Post‐purchase Feedback from Loyalty

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Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 16

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 17

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 18

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 19

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 20

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 21

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 22

• It gives insights into why people buy certain

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 23

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 24

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 25

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 26

Emotional Needs Key Influencers

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 28

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 29

Maslow’s Hierarchy of Needs

Ability to take on a community role that

Belonging to the community as a whole

Protection from hacking; ability to

Food, clothing, Physiological Access to computer

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Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 31

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 32

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 33

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 34

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 35

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 36

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 37

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 38

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 39

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 40

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 41

Let us unlock some key trends

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 43

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 45

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 46

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 47

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 48

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 49

Consumer Behaviour: Insights from Indian Market—Ramanuj Majumdar 50

z Immediate response of our

The Absolute Threshold

¾ The lowest level at which an individual can

z Marketers need to break through

The Differential Threshold

Marketing Applications of the JND

Perception of very weak or

z Interpretation: assigned meaning to stimuli

A theory concerning the

z Depends on two major

Beliefs are the knowledge and inferences that a consumer has

Beliefs result from cognitive learning.

Attribute importance springs from:

A person’s assessment of the significance of an attribute.

Brand distinctiveness: Consumer perception of a brand and

Inferential beliefs: Information about one product of a company

Consumer confusion: Insufficient/conflicting information,

As part of “Advertising Experience”: Influence on viewers’

As part of “Shopping Experience”: Influence of availability,

As part of “Consumption Experience”: Influence consumers’

Utilitarian function: Used to obtain rewards and avoid

Changing beliefs: Comparative advertising

Changing attribute importance: Identification of new,

Changing ideal points