Consumer Behavior

Course Information Course

Title: Consumer Behavior

Course Code MGT-414

Credit Hours 3

Course Level BBA 7Th, MBA 3rd

Recommended Textbooks and Journals Text Book

Schiffman, L. & Kanuk, L. (2014) Consumer behavior : A Eurepeon outlook. New York,

United states.

Journal of Consumer Behavior and Culture, Emerald insight

Course Evaluation Criteria

Assignments, Project & presentation 10%

Quizzes 05%

Mid-term 20%

Final 60%

Total 100%

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Lecture 10
The Communication Process
Marketing Communication
Marketing communication process consists of integrated activities in which the targeted audience
is identified. Although a well-coordinated promotional program is prepared to generate the
desired response from the audience. Most problems of preferences, image and immediate
awareness in the target customers are focused by the marketing communication. However, there
are certain limitations associated with the concept of communication. These limitations include
high cost and short-term duration that cannot generate the desired results from the targeted
customers.
Element of Marketing Communication Process
For Effective Communication, the marketer should know how communication works? Following
are the nine elements that are involved in the marketing communication process.
Sender
Encoding
Message
Media
Decoding
Receiver
Response
Feedback
Noise
Each of these is discussed one by one.
Sender:
The party or person who is sending the message to the other party or person is the sender.
Encoding:
The conversion of thought into the meaningful symbols is called encoding.
Message:
The group of symbols transmitted by the sender is called a message.
Media:

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The channel of communication through which transfers the message from sender to receiver is
called media.
Decoding:
The conversion of symbols into meaning by the receiver is called decoding.
Receiver:
The sent message received by another person or party is called the receiver.
Response:
The reaction shown by the receiver before the message is called response.
Feed Back:
The portion of the response of the receiver that is sent back to the sender is called feedback.
Noise:
The unplanned distortion during the process of communication due to which the receiver
understands the wrong meaning of the original message is called noise.
The effective message is that where the process of encoding is matched with the decoding of
messages. Moreover, the message sent should consist of words and symbols that are known to
the receiver.
Marketing Communication Process Steps
There are certain steps that should be involved in the effective marketing communication
process. The marketing and promotional activities should focus on these steps in order to attract
a huge portion of long run customers. Following are the steps that make the communication
process effective.
 Identification of the target audience
 Determination of the communication objectives
 Designing of message
 Message content
 Message structure and format
 Choosing media
 Collecting feedback
Each of these is now explained below.
Identification of the Target Audience:

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The first step in the effective marketing communication process is to identify the target audience.
So, these audiences may be potential customers or other people that can influence the decisions
of these customers. The audience may include the individuals, groups, general public or special
public. Moreover, the audience has a direct effect on the decisions of the communication, like
what to say? How to say? And when to say? Etc.
Determination of the Communication Objectives:
In this step the marketing communicator should clear the objectives of the communication
process. In most of the situations, the purchase is required by the marketing communicator.
However, purchase is made after a prominent customer decision making process. The
communicators should also understand the standing position of the customer. Generally, there
are six Stages of Customer Readiness through which a customer passes to make a purchase
which are as follows.
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 Purchase
Designing of the Message:
In this step the marketing communication communicator focuses upon the design of the message.
So any message that can attract the attention, develop the interest, arousal of desire and stimulate
the action is the effectively designed message. Hence this procedure is best known as the AIDA
model that can make any message effective and potential. Besides this the marketing
communicator also decides about the content and structure of the message.
Message Content:
In this step of the marketing communication process the content of the message is decided. The
theme or an appeal is suggested that can bring the desired response from the audience or
receiver. So, following are the three appeals that should be used in this regard.
Rational Appeal:
The self-interest of the audience is focused on the rational appeal in which the benefits availed
by the usage of the products or services.

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Emotional Appeal:
In this case positive or negative emotions are stimulated to encourage the purchase of the
product.
Moral Appeal:
In this situation morality is included in the message to influence the targeted customers.
Message Structure and Format:
In this step the important issues of the message structure together with the message format is
analyzed. In marketing communication of a product, it must be decided that the message must
include the conclusion. Also, may keep to the audience to get a conclusion from them. Moreover,
the massage presents either only the strengths of the product or both the strengths and
weaknesses. Therefore, the format of the message is also focused on which the size and shape
use, eye-catching colors, and headlines etc. are decided in the most effective manner.
Choosing Media:
The channels of communication are decided in this step of a marketing communication process,
which may take the following two forms.
Personal:
In this channel of communication two or more persons directly communicate with each other like
face to face. Or through the mail, on the telephone, or through a chat on the internet. Personal
Addressing and feedback are allowed in the personal communication.
Non-Personal:
Non personal messages are spread through these channels which also excludes the option of
feedback. Such channels include print media, display media, broadcast media, online media etc.
Collecting Feedback:
This is the last step of the marketing communication process in which the feedback from the
target customers. So, this can help the marker to alter the promotion program or other marketing
activities. For this purpose, the buying behavior of targeted customers is analyzed in the light of
the new product. Questions may also be asked to the customers to collect their views about the
positive and negative aspects of the new product.
Factors That Affect the Communication Process
Main factors influencing communication process has been briefly discussed as under:
1. Type of Product:

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Type of product plays an important role in deciding on promotion mix. Product can be
categorized in terms of branded products, non-branded products, necessity products, luxury
products, new products, etc. All these types of products need different promotional tools. For
example, advertising is suitable for the branded and popular products. Personal selling may be fit
for non-branded products. Advertising, personal selling, sales promotion and publicity – all four
tools – are used for a newly launched product to get a rapid consumer acceptance.
2. Use of Product:
Product may be industrial product, consumable and necessity product, or may be luxurious
product that affects selection of promotion tools and media. For example, advertising and sales
promotion techniques are widely used for consumer goods while personal selling is used for
industrial goods.
3. Complexity of Product:
Product complexity affects selection of promotional tools. Personal selling is more effective for
complex, technical, risky, and newly developed products as they need personal explanation and
observation. On the other end, advertising is more suitable for simple and easy-handled products.
4. Purchase Quantity and Frequency:
Company should also consider purchase frequency and purchase quantity while deciding on
promotion mix. Generally, for frequently purchase product, advertising is used, and for
infrequently purchase product, personal selling and sales promotion are preferred. Personal
selling and advertising are used for heavy users and light users respectively.
5. Fund Available for Market Promotion:
Financial capacity of company is a vital factor affecting promotion mix. Advertising through
television, radio, newspapers and magazines is too costly to bear by financially poor companies
while personal selling and sales promotion are comparatively cheaper tools. Even, the company
may opt for publicity by highlighting certain commercially significant events.
6. Type of Market:
Type of market or consumer characteristics determine the form of promotion mix. Education,
location, income, personality characteristics, knowledge, bargaining capacity, profession, age,
sex, etc., are the important factors that affect company’s promotion strategy.
7. Size of Market:

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Naturally, in case of a limited market, personal selling is more effective. When market is wide
with a large number of buyers, advertising is preferable. Place is also an important issue. Type of
message, language of message, type of sales promotion tools, etc., depend on geographical areas.

8. Stage of Product Life Cycle:

Product passes through four stages of its life cycle. Each stage poses different threats and
opportunities. Each stage needs separate marketing strategies. Each of the promotional tools has
got different degree of suitability with stages of product life cycle.
Designing Persuasive Communications
A persuasive message is the central message that intrigues, informs, convinces, or calls to action.
Persuasive messages are often discussed in terms of reason versus emotion. Every message has
elements of ethos, or credibility; pathos, or passion and enthusiasm; and logos, or logic and
reason. If your persuasive message focuses exclusively on reason with cold, hard facts and
nothing but the facts, you may or may not appeal to your audience. People make decisions on
emotion as well as reason, and even if they have researched all the relevant facts, the decision
may still come down to impulse, emotion, and desire. On the other hand, if your persuasive
message focuses exclusively on emotion, with little or no substance, it may not be taken
seriously. Finally, if your persuasive message does not appear to have credibility, the message
may be dismissed entirely.
Strategies for persuasive messages
Your product or service may sell itself, but you may want to consider using some strategies to
help ensure your success:
Start with your greatest benefit. Use it in the headline, subject line, caption, or attention
statement. Audiences tend to remember the information from the beginning and end of a
message, but have less recall about the middle points. Make your first step count by highlighting
the best feature first.
Take baby steps. Promote, inform, and persuade on one product or service at a time. You want
to hear “yes,” and if you confuse the audience with too much information, too many options,

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steps to consider, or related products or service, you are more likely to hear “no” as a defensive
response as the audience tries not to make a mistake. Avoid confusion and keep it simple.
Know your audience. The more background research you can do on your audience, the better
you can anticipate their specific wants and needs and tailor your persuasive message to meet
them.
Lead with emotion, and follow with reason. Gain the audience’s attention with drama, humour,
or novelty and follow with specific facts that establish your credibility, provide more information
about the product or service, and lead to your call to action.

Barriers to Communication
COMMON BARRIERS TO EFFECTIVE COMMUNICATION
Regardless of the type of communication: verbal, nonverbal, written, listening or visual, if we
don't communicate effectively, we put ourselves and others at risk. Besides physical and
technical barriers, there are six barriers to effective communication every employee and manager
should strive to eradicate.
Dissatisfaction or Disinterest with One’s Job
If you are unhappy or have lost interest in your job, you are far less likely to communicate
effectively – both on the giving and receiving ends. In other words, your heart isn’t in it. This
barrier, is perhaps the most difficult to overcome because it involves changing a mindset, and
thus it typically doesn’t change until the person leaves.
Inability to Listen to Others
Active listening is an important aspect of effective communication. You cannot engage with
someone if you are not listening to them because you will tend to make assumptions about their
needs based on your perceptions versus reality.
Lack of Transparency & Trust
It is extremely difficult to communicate anything when there is a lack of transparency and trust.
For example, if your staff believes you are holding something back, they will be anxious, some
will speculate, and as a result, it will be more difficult for them to process any attempt you make
to communicate with them.
Communication Styles (when they differ)

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Everyone has their own communication style. Some people are very direct while others prefer a
more indirect approach. Some use detailed data, while others rely on generalities, and so forth.
Occasionally, one person is so entrenched in their way of communicating, they find it difficult to
communicate with others who rely on a different style. You might hear comments such as,
“Mary never explains what she wants me to do, she’s never specific” or “Bill gets so caught up
in the weeds, that I lose focus on the bigger picture.”
Conflicts in the Workplace
Conflict can happen for a variety of reasons and when it does, it becomes a barrier to effective
communication. The nature of the conflict is not necessarily important, what is important is
working to resolve the conflict. When conflict is not eradicated, it grows and then people begin
to take sides, which further impedes effective communication.
Cultural Differences & Language
It is important to understand the cultural differences in communication. But don’t just think
international as in remembering that in Japan one’s surname precedes their given name. There
can also be regional differences – for example, a northerner might not like the term "y’all" or
even understand the more comprehensive version, "all y’all." While these examples may seem
trivial, the point is that cultural differences can occur within the boundaries of the US, and when
one does not recognize cultural differences, they risk offending the other person. It is in the
offense that communication breaks down.
Communication and Marketing Strategy
Businesses don’t become successful by chance. They do diligent research in order to create
effective marketing campaigns. This allows them to break into new markets, establish a
presence, and become a go-to source for customers.
An effective promotional campaign driven by a rock-solid marketing communications strategy
helps make this connection. However, it takes some planning to get started. You’ll need to reflect
on your brand and its goals, your optimal customers and their habits, and the current trends in
your industry. You’ll also need to remain flexible enough to adjust your strategy as you go based
on what works and what doesn’t.
The Make-Up of Marketing Communications
So, what does marketing communications entail, exactly? The simple answer is anything and
everything you do to bring the message about your products or services to the world. The point

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of marketing is to generate awareness surrounding your brand and turn that attention into sales.
In order to do this effectively, you’ll need a well-thought-out strategy that includes these three
elements:
What you want to convey to your followers, customers, and supporters. Examples are a new
product launch or a limited-time sale.
How you plan to deliver this message. This may include direct email marketing, social media
platforms, TV commercials, or print ads.
Who you identify as the people most likely to be interested in your brand. You may want to
target school teachers in New York or married couples aged 35 to 50.
6 Steps to an Effective Integrated Marketing Communications (IMC) Strategy
As you create your annual or bi-annual integrated marketing communications strategy (IMC),
you should keep the previous principles in mind. With a few simple steps, you can make sure
your IMC strategy is as effective as possible. From understanding your target audience to
choosing your marketing communications mix, the following steps can help your business
succeed. 
1. Learn About Your Target Audience
You cannot create a marketing plan unless you know about who you are marketing your products
to. Take some time to understand your target audience and what they want. Once you know more
about your audience, you can tailor your marketing plan to target those clients. At the start of
your IMC plan, you should clarify the characteristics and interests of your audience. 
Some businesses struggle to understand what their audience wants. Thankfully, there is an easy
way to find out. All you have to do is ask your audience what they need. You can give your
existing customers interviews and surveys to find out your customers’ common needs and why
they choose to buy from you. 
2. Determine Your Company’s Unique Selling Proposition (USP)
As you build your marketing communications strategy, you need to consider your company’s
USP. The USP is the thing that sets you apart. It is the reason why customers choose to shop at
your business. All of your marketing messages and branding techniques should reflect your
USP. 

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Once you clarify your USP, you need to communicate it. You need consistent brand messaging.
When you have a clear, recognizable USP, it is also easier to create attractive pitches for the
media. 
3. Choose Your Marketing Communications Mix
Now that you have clarified your target audience and your USP, it is time to consider your
marketing communications mix. This mix consists of the different channels you will use to reach
your customers. Depending on your business, you may want to use some of the following
channels. 
 Sponsorships.
 Online advertising through options like Facebook and AdWords.
 Annual sales promotions.
 Direct marketing.
 Content marketing.
 Offline advertising options like billboards, television and newspapers.
 Personal selling.
 Events.
At a global corporation, you will find entire teams that focus on each one of these activities.
Obviously, you may not be able to devote as many resources to each activity if you run a small
business. You may only be able to include a couple of these marketing channels within your
marketing mix. If you are operating on a limited budget, the cheapest way to achieve results is
through public relations. 
4. Determine Your Branding
Branding is important for your overall marketing strategy. To create a brand, you need to have a
consistent look across all of your marketing materials. These materials may include things like
your apps, direct marketing campaigns, business cards, social platforms, website and advertising
campaigns. 
Your brand image is more than just a marketing tool. It is the core identity of your business. In
essence, your brand is the heart of your company as well as the face you present to the world. All
of your marketing communications should work to build your brand image. 
5. Plan Your Success Metrics

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How do you know when your company has achieved success? Before you put your marketing
communications strategy into action, you should determine what success looks like for your
company. Depending on your business, you may set goals for some of the following things. 
 The number of conversions you get from leads.
 The number of websites visits you get from social media shares.
 The number of sales you get from public relations.
 The number of mentions your company receives from news sources and blogs.
 The number of backlinks your website gets.
 The number of websites visits you get for each article.
6. Put Your Plan into Action
Now that you have developed your marketing strategy, you are ready to go. All you need to do is
put your plan into action. Then, you can measure your success metrics to see if your plan is
achieving its goals. 

Lecture 11
Consumer Attitude
Consumer attitude may be defined as a feeling of favorableness or unfavorableness that an
individual has towards an object. As we, all know that an individual with a positive attitude is
more likely to buy a product and this results in the possibility of liking or disliking a product.
Consumer attitude basically comprises of beliefs towards, feelings towards and behavioral
intentions towards some objects.

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Belief plays a vital role for consumers because, it can be either positive or negative towards an
object. For example, some may say tea is good and relieves tension, others may say too much of
tea is not good for health. Human beliefs are not accurate and can change according to situations.
Consumers have certain specific feelings towards some products or brands. Sometimes these
feelings are based on certain beliefs and sometimes they are not. For example, an individual feels
uneasy when he thinks about cheese burst pizza, because of the tremendous amount of cheese or
fat it has.
Behavioral intentions show the plans of consumers with respect to the products. This is
sometimes a logical result of beliefs or feelings, but not always. For example, an individual
personally might not like a restaurant, but may visit it because it is the hangout place for his
friends.
Functions of Attitudes
The following are the functions of attitudes
Adjustment Function − Attitudes helps people to adjust to different situations and
circumstances.
Ego Defensive Function − Attitudes are formed to protect the ego. We all are bothered about
our self-esteem and image so the product boosting our ego is the target of such a kind of attitude.
Value Expression Function − Attitudes usually represent the values the individual possess. We
gain values, though our upbringing and training. Our value system encourages or discourages us
to buy certain products. For example, our value system allows or disallows us to purchase
products such as cigarettes, alcohol, drugs, etc.
Knowledge Function − Individuals continuously seeks knowledge and information. When an
individual gets information about a particular product, he creates and modifies his attitude
towards that product.
Models of Attitude
The following are the models of attitude
Tri-component Model − According to tri-component model, attitude consists of the following
three components.
Cognitive Component − The first component is cognitive component. It consists of an
individual’s knowledge or perception towards few products or services through personal

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experience or related information from various sources. This knowledge, usually results in
beliefs, which a consumer has, and specific behavior.
Affective Component − The second part is the affective component. This consists of a person’s
feelings, sentiments, and emotions for a particular brand or product. They treat them as the
primary criteria for the purpose of evaluation. The state of mind also plays a major role, like the
sadness, happiness, anger, or stress, which also affects the attitude of a consumer.
Conative Component − The last component is conative component, which consists of a
person’s intention or likelihood towards a particular product. It usually means the actual behavior
of the person or his intention.
Characteristics of Attitudes
Important Characteristics of Consumer Behaviour are given below:
1. Consumer Behaviour involves Products, Services, Activities, and Ideas:
In the scope of consumer behaviour, not only products (like toilet soaps), are included but also
the services (flying by an airliner), and activities (getting children vaccinated for polio), and
ideas (saying no to drugs). Thus consumer behaviour rotates around offerings.
2. Consumer Behaviour involves more than Buying:
Consumer behaviour is not restricted only to buying the offering. It includes buying (acquiring
the offering), using, and disposing. Usage has many connotations – first, it has important
symbolic implications for the consumer. The saree and the jewelry being put on by ladies in the
wedding influence marketing strategies and tactics.
Usage can also influence other behaviour. Secondly, it may also influence other behaviour. Not
satisfied the product or services may lead to consumer complaints and protests. Finally,
consumer behaviour also evaluates as how do consumers get rid of an offering, they previously
acquired.
In India, people from older generation still do not throw things, once acquired.
3. Consumer Behaviour is a Dynamic Process:
Consumer Behaviour is dynamic because the thinking, feelings, and actions of individual
consumers, targeted groups, and the society at large are constantly changing. Maruti Suzuki
produces number of cars, as needs and wants may change at different times for different
consumer groups.

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The sequence of acquisition, consumption, and disposition can occur over time in a dynamic
sequence. The sequence can be over in a matter of hours to years. Suppose a family has acquired
a new Tata Indica car. Its usage will provide the family whether it drives well, is economical,
impresses others, and does minimal harm to the ecological environment – all these will affect
when, whether, how, and why the family will dispose of the car by selling or junking it.
4. Consumer Behaviour involves Interactions among Many People:
Consumer behaviour does not mean action of a single individual. Interactions may take place
among a group of friends, a few co-workers, or an entire family. The individuals may take
different roles.
For example, to buy a car the adult son may gather the information, the younger daughter may
influence the buying decision, parents may finally be the buyers. The car may be used by one or
all the members in the family. Similarly several family members may be involved in disposing
the car.
5. Consumer Behaviour involves Many Decisions:
Consumer behaviour needs understanding whether (to acquire/use/ dispose of an offering), what
(to acquire/use/dispose), why (to acquire/use/dispose of an offering or not)), when (time), where
(place), how (ways of acquiring, using, and disposing), how much (volume), how often
(frequency), and how long (till what time) consumers will buy, use or dispose of an offering.

6. Consumer Behaviour involves Exchanges:

Consumer behaviour involves exchanges between human beings. People give something of value
to receive something of value. Indeed, the role of marketing is to help society to create value
through exchanges by formulating and implementing marketing strategies.
 Attitude Components
 Components of Attitude
 Cognitive component
 Affective component
 Behavioral component
 Cognitive component

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Beliefs are the cognitive components of consumer attitude. Cognitive component of attitude is
associated with the value statement. It consists of values, belief, ideas and other information that
a person may have faith in.
Positive brand associations enhance brand equity and are achieved through a number of
positioning strategies. Through brand associations, marketers establish and influence favorable
beliefs about a brand and unfavorable beliefs about competitors.
Example: Quality of sincere hard is a faith or value statement that a manager may have.
Affective component
Affective is the emotive component of consumer attitude. Affective component of attitude is
associated with individual feelings about another person, which may be positive, neutral or
negative.
Three research models describe the determinants of affective response.
Functional theory of attitude explains that consumers buy as a result of one of four psychological
functions: adjustment, ego defense, value expression, and application of prior knowledge.
Fishbein model relates consumer beliefs and evaluations to affective response: if beliefs are
strong and desirable, affective responses are positive.
Belief importance model analyses affective responses across competing brands.
Example: I don’t like Sam because he is not honest, or I like Sam because he is sincere. It is an
expression of feelings about a person, object or a situation.

Behavioral component
Intention is the behavioral component of consumer attitude. Behavioral component of attitude is
associated with the impact of various condition or situations that lead to person behavior based
on cognitive and affective components.
Two research models demonstrate the relationship between intention to purchase and actual
purchase and consumption.
The theories of reasoned action explain purchasing behavior as a direct result of intention,
influenced by attitude toward purchase and by subjective norms.
The theory of trying to consume explains actual consumption behavior of purchasers. It provides
insight into the establishment and maintenance of long-term relationship with consumers.

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Example: I don’t like Sam because he is not honest is an affective component, I, therefore, would
like to disassociate myself with him, is a behavioural component and therefore I would avoid
Sam.
Cognitive and affective components are bases for such behaviour. Former two components
cannot be seen, only the behaviour component can be seen. Former is important because it is a
base for the formation of attitude.
Attitude Change Strategies
A tendency to respond positively or negatively towards a certain idea, object, person or situation
is called Attitude. Our attitudes are formed by the influence of the personal experience, social
media, and even from the environment. Therefore, the key strategy for the marketers is to alter
the attitudes of the consumers. The aim of the marketers is to create a positive attitude in
consumer minds to attract the product comparison to competitors. Generally, it is very difficult to
change the attitude of the consumers when they suspect that the marketer has a self-serving
agenda in bringing about this change (Litvin & MacLaurin 2001). There are five attitude change
strategies by Shiffman et al (2014).
1)Changing the Basic Motivational Function
By making a particular need prominent, we can change the consumer attitudes towards a product
or a brand. One method that we can use to change the motivation of the consumer is called
functional approach. They are classified into four functions: (i) Utilitarian Function, (ii) Ego-
defensive function (iii) Value expressive function and (iv) Knowledge Function
For example, Value Expressive Function; Attitudes can be expressed when the consumer reflects
a product or service based on their self-concept or central values. It gives consumers to gain
positive feelings about themselves through expressing their self-image of who they are. If the
consumer likes wearing active wear like sports wear it shows her identity that he/she enjoys
being active and, sporty. Marketers can approach by targeting the consumer’s attitude on their
outlook, lifestyle and self-image by reflecting these characteristics while advertising and
marketing.
2)Associating the product with an admired group or event
Attitudes of consumers towards the particular brands and services can possibly be changed by
consolidating with social groups or events. For example, recently Mc Donald’s made a biggest
fast-food collaboration with cartoon Despicable Me 3. Mc Donald’s added a new menu with

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minions influenced items in order to help promote Despicable Me 3. The research shows that it is
indicated a good idea to exposed to the consumers the reason of their sponsorship in order to
avoid negative motives.
3) Resolving two conflict attitudes
Sometimes, attitude change strategies can determine actual and possible conflict between two
attitudes. If the consumers were made to have a negative impact on the product or a specific
brand, but if they do not have any conflict, this made the consumers to alter their judgment of the
product. For example, disposing nappies can be made for the environment but as it is made with
organic cotton, it helps with the environment sustainability.
4) Altering components of the multi-attribute model 
Multi attribute is a strategy to change the attitude of the consumer by altering the evaluation of
products, changing the perception about the brand and remodeling the over-all brand rating by
adding an attribute to a product. It changed the negative aspect that the consumers have towards
the product or brand by reinforcing their persisting beliefs. It is done by adding an attribute that
has been ignored by reflecting its actual product innovation. Therefore, it changed the rating of
the brand. Eg- Guinnes beer
5)Changing the consumer beliefs about competitors’ brands
It is the strategy of changing consumer’s beliefs by comparing with the competitors’ brands. For
e.g.- Nike Vs Adidas

Lecture 12
Key Characteristics of Culture
Characteristics of Culture in Consumer Behaviour
Culture has several important characteristics:
Culture is comprehensive. This means that all parts must fit together in some logical fashion.
For example, bowing and a strong desire to avoid the loss of face are unified in their
manifestation of the importance of respect.

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Culture is learned rather than being something we are born with. We will consider the
mechanics of learning later in the course.
Culture is manifested within boundaries of acceptable behavior. For example, in American
society, one cannot show up to class naked, but wearing anything from a suit and tie to shorts
and a T-shirt would usually be acceptable. Failure to behave within the prescribed norms may
lead to sanctions, ranging from being hauled off by the police for indecent exposure to being
laughed at by others for wearing a suit at the beach.
Conscious awareness of cultural standards is limited. One American spy was intercepted by
the Germans during World War II simply because of the way he held his knife and fork while
eating.
Cultures fall somewhere on a continuum between static and dynamic depending on how quickly
they accept change. For example, American culture has changed a great deal since the 1950s,
while the culture of Saudi Arabia has changed much less. Culture can be divided into two
distinct components.
How Culture is Communicated
Culture is a shared set of values and perceptions -- and a very powerful concept. Culture can be
limited to small groups, such as an office or a company, or it can be wide enough to span
continents as is the case when people refer to "Western Culture," which encompasses the
commonalities of numerous nations. Each individual runs into culture in our towns, regions,
nations, ethnic backgrounds and of course, work. Business intersects with culture at many
junctures and a smart businessperson considers all of these when making important decisions.
Workplace Considerations
America is a country of immigrants. As such, people of widely varied races and ethnic
backgrounds form the modern workforce. While America certainly has elements of an
overarching American culture, it is equally characterized by the variations of its various
ethnicities and subcultures. Employers and employees must respect the cultural variations, and
the different perceptions and human needs they create. This ranges from being sensitive when
discussing religion, culture and politics to being thoughtful about scheduling and allowing for
people's time off to accommodate their holidays and celebrations. It also includes working with
people for whom English may not be a first language and trying to help them succeed in your
workplace.

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Company Cultures
Every company has a culture and they are far from uniform. When dealing with clients,
vendors and business partners, you have to consider the company culture when addressing its
representatives. For example, your office may be small, relaxed and friendly, but your client's
culture may be very formal and traditional. Starting an email with a "Hey, Bob..." could be
seen very poorly. Similarly, when making a sales pitch, a strong emphasis on personalities and
understanding may not go over well with a formal company. Instead, a very well-organized
PowerPoint presentation accompanied with written reports will get you further.
Shaping Success
Company cultures give everyone in the organization a common platform and approach for their
work. The shared outlooks of a company's culture determine employees' attitudes,
effectiveness and sense of team. Some cultures develop around the way a company works, and
other times, leaders work to shape and implement a company culture.
Culture And Marketing
When companies interact with their customer bases, they have to consider that not every
market works the same way. The marketing and sales approaches that work in an upscale
suburb might be completely ineffective and even inappropriate to an inner-city area with ethnic
minorities or a rural area with a different socio-economic composition.
International Meetings
Working with overseas clients, business partners, vendors and offices means understanding the
cultures with which you're working. To sell effectively or create a strong working platform,
you have to make sure good communication is actually occurring and communication only
occurs when both parties reach a common understanding. When meeting with foreign clients,
be sure to develop presentations that mesh with their business culture. Also be prepared to
interact in a way that shows respect for their ways of doing business. Effective international
communication usually involves some careful preparation by studying a culture as well as a lot
of face-to-face communication, which may include video conferences.
Culture and Advertising
Advertising Across Cultures
The essence of successful advertising is convincing people that a product is meant for them. By
purchasing it, they will receive some benefit, whether lifestyle, status, convenience or financial.

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However, when an advertising campaign is taken abroad, the target audience typically have
different values and perceptions as to what enhances status or what constitutes convenience. As
such, these differences make the original advertising campaign defunct.
Let's examine a few examples of cultural differences in advertising to see why.

Language in Advertising
It may seem somewhat obvious to state that language is key to effective cross-cultural
advertising. However, the fact that companies persistently fail to check linguistic implications of
company or product names and slogans demonstrates that such issues are not being properly
addressed.
Communication Style in Advertising
Understanding the way in which other cultures communicate allows the advertising campaign to
speak to the potential customer in a way they understand and appreciate.
For example, communication styles can be explicit or implicit.
An explicit communicator (e.g. USA) assumes the listener is unaware of background information
or related issues to the topic of discussion and therefore provides it themselves.
Implicit communicators (e.g. Japan) assume the listener is well informed on the subject and
minimizes information relayed on the premise that the listener will understand from implication.
Colors, Numbers and Images in Advertising
Even the simplest and most taken for granted aspects of advertising need to be inspected under a
cross cultural microscope. Colors, numbers, symbols and images do not all translate well across
cultures.
Cultural Values in Advertising
When advertising abroad, the cultural values underpinning the society must be analyzed
carefully.
Questions that should be asked about the target country or culture include:
 Is there a religion that is practiced by the majority of the people?
 Is the society collectivist or individualist?
 Is it family orientated?
 Is it hierarchical?
 Is there a dominant political or economic ideology?

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  Is it a multicultural or monocultural country?
Advertising across cultures is simply about using common sense and analyzing how the different
elements of an advertising campaign are impacted by culture and modifying them to best speak
to the target audience. 
Subcultures and Consumer Behaviour
Subculture is a part of the culture containing the important features of the main culture. In this
lesson we shall highlight on the subcultural context, types of subcultures, subcultural influence
on consumer behavior as well as marketing implications of the concept of subculture.
Subcultural Differences Affecting Marketing Decisions Because of the important differences
within any culture, marketers must be aware of diverse subcultures -examining them individually
and on their own terms. We know that, those identified with a subculture tend to think and act
alike in certain respects, and this has important implications for their lifestyle. Recognition of
this has led to experimentation with market segmentation as a means of developing effective
marketing strategy adapted to market targets that are believed to have special promise. Marketers
must recognize that even though their operations are confined to a particular country, or a
division or district, or even to one city, subcultural differences may dictate considerable
variations in what, how, and when people buy. To deal with these differences effectively,
marketers may have to alter their product, distribution systems, price, or promotion to satisfy
members of particular subcultures.
Social Class and Consumer Behaviour
Social Classes
Marketers should understand that a person’s social class will have a major influence on the types
and quantity of consumer goods purchased.
Social Class
A major influence on one’s purchasing habits and consumer behavior is the social class in which
one finds him or herself. Social class is considered an external influence on consumer behavior
because it is not a function of feelings or knowledge. Social class is often hard to define; in fact,
many people dispute the existence of social classes in the United States. Usually, however,
people are grouped in social classes according to income, wealth, education, or type of
occupation. Perhaps the simplest model to define social class is a three-tiered approach that
includes the rich, the middle class, and the poor. Other models have as many as a dozen levels.

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People in the same social class tend to have similar attitudes, live in similar neighborhoods, dress
alike, and shop at the same type of stores.
Influence on Consumer Behavior
Social class can have a profound effect on consumer spending habits. Perhaps the most obvious
effect is the level of disposable income of each social class. Generally, the rich have the ability to
purchase more consumer goods than those with less income, and those goods are of higher
quality. There is also a distinction in the type of goods purchased. For example, the upper class
tend to be the primary buyers of fine jewelry and often shop at exclusive retailers. The lower
class, in contrast, are much more concerned with simply getting by; they focus more on
necessities.
Effect on Marketing
Marketers must be very aware of the social class of their target market. If a marketer wishes to
target efforts toward the upper classes, then the market offering must be designed to meet their
expectations in terms of quality, service, and atmosphere. A marketer should understand the
dynamic of the social class as well. For example, the upper-middle class are generally ambitious,
future-oriented people who have succeeded economically and now seek to enhance their quality
of life. Material goods often take on major symbolic meaning for this group. Effective marketers
will understand that and be able to tailor their approach accordingly.
Characteristics of Social Class
Following are the characteristics of social class
The class system is a function of several variants like occupation, wealth, age, sex etc. The status
of a person was achieved as well as ascribed too.
There was a hierarchy tree observed in the social class system. There was classification viz.
upper class, middle class, and lower class. The amount of prestige and wealth an upper-class
person enjoys is much greater than the other two classes.
There was a constant feeling of highness and lowness as the upper class enjoyed superiority and
other classes were generally in their service.
When there is superiority thing in our society, a sense of conflict in the lower class will also arise
as due to powers generally upper class are seen as exploiting other classes rights. For example,
the amount which is sanctioned for lower-class people, upper-class people also digest their
money thinking it’s their right.

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As the caste system has sub-divisions, the class system also has various groups in them. Social
Classes were the open system, unlike religious or caste system. There was freedom of mobility,
people were not oppressed. Like in caste system untouchability practice existed but classes
categorization has never seen this kind of social evil.
There were some factors which got the same in the caste system as well as the class system.
Endogamy practice is one of them. To maintain the prestige, wealth and fame a rich businessman
daughter is not allowed to marry a boy of the middle class.
Class system does not come under ascribed status, unlike the caste system. For example, a
Kshatriya king son will be a Rajputana till his death but talking about the class system, a person
wealth and occupation are the key factors so it comes under, achieved status. For example, a rich
businessman wealth can le lost or he can become bankrupt at any moment and his class will be
lower class. Thus, a class of a person can change at any moment.
The effect of Sanskritization was different on the class system and caste system. Sanskritization
was not able to bring much change in the caste system but in the class system, its effect is quite
evident.
Social Class and Marketing Strategy
Marketing Strategy and the Social Classes Marketeers are interested in supplying the right
products to the right customer (target segment) at the right price at the right time and with the
right promotion. For this, first the target segment is selected and this can be done on the basis of
social class, which is a better prediction of a consumer’s lifestyle than income. Reasons for
shopping and purchases also differ among the social classes. The upper classes shop for pleasure,
and tend to visit stores which are exclusive and sophisticated. The situation of stores are also
important. They visit boutiques and are particular where they go shopping. The upper and middle
classes indulge in greater information search and get information through the TV, magazines,
newspapers, and from groups and individuals of their social status. The lower classes are
involved in buying less costly products and have much less information. They are more
concerned with social relationship and respond to products and promotion of a different nature.
Marketeers thus find that a combination of social class and income are superior for product
classes that are visible. These products require moderate expenditure and are symbols of social
status like TV sets, cars, clothing, etc.
In designing a market strategy using social stratification, a process is followed in which

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(a) The marketeer relates the status of the group to the product.
(b) Data is collected as the targeted social strata.
(c) Positions the product according to social status.
(d) Develops a proper marketing mix.

Lecture 13
What is a Group?

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A group is a collection of people with some common characteristics or purpose. A group can
consist of any number of people. ... People in groups are defined by themselves and by others as
group members, in other words individuals are aware that they are part of a group.
Reference Group
A reference group includes individuals or groups that influence our opinions, beliefs, attitudes
and behaviors. They often serve as our role models and inspiration. Marketers view reference
groups as important because they influence how consumers interpret information and make
purchasing decisions. Reference groups influence what types of products you will purchase and
which brand of product you choose.
Types of Reference Groups
There four types of reference groups are shown in the Fig 8.1. Advertisers use only positive
attitude appeals in their ads.

Membership Groups:
As marketers are interested only in the positive type of membership group, let us further break
down membership and aspiration group. Membership group can be further divided into primary
or secondary and informal or formal. If a person has regular contact with certain individuals such
as family, friends etc., those individuals form a primary group. If the group members have less
frequent contact amongst themselves, they from a secondary group like shopping groups, sports
club etc.

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Groups can also be divided by whether they have a formal structure with specific roles or an
informal structure. This classification produces four types of membership groups as shown in the
Fig 8.2. The family/peer groups represent primary informal groups which is important because of
the frequency of contact and the closeness between the individual and group members.
Advertisers frequently portray consumption among friends and family.
Primary formal groups have a more formal structure. These are groups with which the
consumer frequently comes into contact. For example – business executives who-are assigned
the project together. Advertisers show membership in such groups as a means of winning
product approval.
Secondary formal groups are not important to the consumer, as they meet infrequently, are
structured, and are closely knit. For example-alumni Groups, business clubs etc. This group is of
least interest to the marketer.
Aspiration Groups:
There are two types of aspiration groups. These are:
(a) Anticipatory aspiration groups are those groups, in which an individual plans to join at a
future time and also in most cases he/she has direct contact. For example- when an individual
aspires for a group higher in the organizational hierarchy, this is basically for rewards like
power, status, prestige and money. Marketers specially of clothing and cosmetic industry’s
appeal to the desire to enhance one’s position by climbing to a higher aspiration group.
(b) Symbolic aspiration groups are those groups, in which an individual is not likely to belong,
despite acceptance of the group’s beliefs and attitudes. Marketers appeal to symbolic aspirations
by using celebrities to advertise certain products.

Nature of Reference Groups:

Reference groups have certain characteristics that affect their influence on consumers. They
establish norms, roles, socialization, status and power.
(i) Norms:

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Norms are the rules and standards of conduct established by a group. This means group members
are expected to conform to these norms and they may relate to eating habits, makes of cars,
clothes or cosmetics etc.
(ii) Roles:
Roles are the functions that the group assigns to an individual to attain group objectives. Various
roles that have been identified in family decision making are the influences, the gatekeeper,
decision maker, the purchaser and the consumer.
(iii) Status:
Status refers to the position an individual enjoys within the group. High status implies greater
power and influence. A person may enjoy a highest status in the organization but may be the
weakest member in the tennis club.
(iv) Power:
The influence that a group has on an individual is closely related to the group’s power.

Lecture 14
Purchase Behaviour

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Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying and using
products.
Need to understand:
 why consumers make the purchases that they make?
 what factors influence consumer purchases?
 the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs
to analyze buying behavior for:
Buyers’ reactions to a firm’s marketing strategy have a great impact on the firm’s success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies
(gives utility to) customers, therefore need to analyze the what, where, when and how consumers
buy.
Marketers can better predict how consumers will respond to marketing strategies.
Types of consumers buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a product in a
particular situation.
Buyer’s level of involvement determines why he/she is motivated to seek information about a
certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others,
and the higher the risk the higher the involvement. Types of risk:
 Personal risk
 Social risk
 Economic risk
The four types of consumers buying behavior are:
Routine Response/Programmed Behavior--buying low involvement frequently purchased low-
cost items; need very little search and decision effort; purchased almost automatically. Examples
include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtain
information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate

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amount of time for information gathering. Examples include Clothes--know product class but not
the brand.
Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products. High degree of economic/performance/psychological risk.
Examples include cars, homes, computers, education. Spend a lot of time seeking information
and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go through all
six stages of the buying process.
Impulse buying, no conscious planning.
Consumption Process and Model
The Consumer Decision Process model (CDP model) is a very simplified version of the process
the consumer goes through when making a purchase decision. This process is also important to
consider when a consumer can make a decision towards what brand they interact with. The CDP
model serves as a road-map. This theory looks at the journey a consumer takes rather than the
end goals. The CDP model has seven steps:
 Need recognition,
 Search for information,
 Pre-purchase evaluation of alternatives,
 Purchase,
 Consumption,
 Post-consumption evaluation,
 Divestment.

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There is a lot of depth in each stage and because of this, we will write a separate article going
through each one of them thoroughly. There are two main factors that effect each stage. The
internal factors and the external factors. Internal factors consist of personal aspects, such as,
motivations, objectives, attitudes, knowledge, recourses (money, time and information), goals,
wants and desires as well as character. External factors on the other hand are factors such as,
family, culture, situation, influencers, opinion leaders, experts and marketing dominated
mediums.
Customer Satisfaction and Dissatisfaction
Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes its
products and services.
An organization’s main focus must be to satisfy its customers. This applies to industrial firms,
retail and wholesale businesses, government bodies, service companies, nonprofit organizations,
and every subgroup within an organization.
Customer dissatisfaction happens when your product or service falls beyond your customer's
expectations or has many shortcomings. Whenever a customer interacts with your brand, he or
she has one or more expectations for the encounter – this can be meeting a need or solving a
problem. 

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Organizations put a lot of work into building products and services that their customers love.
Yet, all of these investments do not guarantee that customers will always be satisfied with your
brand. Sometimes, things will go wrong and create negative experiences for your customers.
It is also important for you to know that there are different types of customer dissatisfaction. For
example, the dissatisfaction a customer feels from losing his or her luggage while traveling is
quite different from how a customer would feel if his or her package got damaged in transit. 

Purchase, Post-purchase Processes and Marketing Strategy

Need Recognition
The Consumer Decision Processes (also known as Buyer Decision Processes) refer to the
decision-making stages that a consumer undergoes before, during, and after they purchase a
product or service.
John Dewey introduced 5 stages which consumers go through when they are considering a
purchase:
 Problem or need recognition
 Information search
 Evaluation of alternatives
 Purchase
 Post-purchase behavior
 Post-Purchase Behavior

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Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with
a purchase.
Post-purchase behavior is the final stage in the consumer decision process when the customer
assesses whether he is satisfied or dissatisfied with a purchase. How the customer feels about a
purchase will significantly influence whether he will purchase the product again or consider
other products within the brand repertoire. A customer will also be able to influence the purchase
decision of others because he will likely feel compelled to share his feelings about the purchase.
Cognitive dissonance, another form of buyer’s remorse, is common at this stage. This is when
the customer may experience feelings of post-purchase psychological tension or anxiety. For
example, the customer might feel compelled to question whether he has made the right decision.
They may also be exposed to advertising for a competitive product or brand which could put into
question the product that they have chosen. A customer may also have a change of heart and
decide that he no longer has a need for this particular product.

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