INTERNAL FACTORS INFLUENCING CONSUMER BEHAVIOUR NEEDS AND MOTIVES Needs: ¢ Definition: Basic human requirements that need to be satisfied for survival and well- being. ¢ Types of Needs: ° ° ° ° ° Physiological Needs: Basic needs for survival such as food, water, shelter, and clothing. Safety Needs: Protection from physical harm, security, stability. Social Needs: Need for belonging, love, and social interaction. Esteem Needs: Desire for self-respect, recognition, and status. Self-Actualization Needs: Desire for personal growth, self-fulfillment, and reaching one's potential. ¢ Maslow's Hierarchy of Needs: A framework that arranges human needs in a hierarchical order from basic to complex.Motives: ¢ Definition: Internal forces that direct behavior toward satisfying needs. ¢ Types of Motives: ° ° Primary Motives: Related to physiological needs (e.g., hunger, thirst). Secondary Motives: Related to psychological needs (e.g., achievement, affiliation). ¢ Motivation Process: ° ° ° ° ° Need Recognition: Realizing an unsatisfied need. Tension: Feeling of discomfort due to unsatisfied need. Drive: Energy to reduce tension. Behavior: Actions taken to fulfill the need. Goal Fulfillment: Satisfaction of the need, reducing tension.PERCEPTION * Definition: The process by which individuals select, organize, and interpret sensory information to form a meaningful picture of the world. * Elements of Perception: 1.Sensory Input: Information received through senses. 2. Exposure: Contact with stimuli. 3. Attention: Focusing on specific stimuli. 4. Interpretation: Assigning meaning to stimuli. ¢ Perceptual Process: 1.Selection: Filtering information through selective exposure, attention, and retention. 2. Organization: Categorizing information using principles like figure-ground, grouping, and closure. 3. Interpretation: Influenced by individual factors like past experiences, expectations, and cultural background. ¢ Perceptual Distortion: 1.Stereotyping: Assigning characteristics based on group affiliation. 2. Halo Effect: Generalizing from one attribute to an overall impression. 3.Selective Perception: Interpreting information consistent with existing beliefs.LEARNING ¢ Definition: A change in behavior resulting from experience. ¢ Types of Learning: © Classical Conditioning: Learning by associating a neutral stimulus with an unconditioned stimulus to elicit a conditioned response (e.g., Pavlov's dogs). © Operant Conditioning: Learning based on the consequences of behavior (e.g., rewards and punishments). © Cognitive Learning: Involves thinking, understanding, and problem-solving. ¢ Learning Theories: © Behavioral Theories: Focus on observable behaviors and their relationship with stimuli. © Cognitive Theories: Focus on internal processes and understanding. ¢ Factors Influencing Learni © Reinforcement: Positive and negative reinforcements that influence learning. © Repetition: Repeated exposure to a stimulus to reinforce learning. © Stimulus Generalization: Responding similarly to different but related stimuli. © Stimulus Discrimination: Differentiating between similar stimuli.ATTITUDES ¢ Definition: A learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object. ¢ Components of Attitudes: © Cognitive Component: Beliefs and knowledge about an object. © Affective Component: Feelings and emotions toward an object. © Behavioral Component: Actions or intentions to act toward an object. ¢ Attitude Formation: © Direct Experience: Personal interaction with the object. © Social Influence: Influence from family, friends, and society. © Learning Processes: Conditioning and cognitive learning. ¢ Changing Attitudes: © Persuasion Techniques: Using messages to alter attitudes (e.g., advertising, marketing). © Cognitive Dissonance Theory: Changing attitudes to reduce discomfort from conflicting beliefs and behaviors. © Elaboration Likelihood Model (ELM): Central and peripheral routes to attitude change.PERSONALITY AND LIFESTYLE Personality: ¢ Definition: Unique psychological characteristics that lead to consistent and enduring responses to the environment. ¢ Theories of Personality: o FreudianTheory: Emphasizes unconscious motivations and the structure of personality (id, ego, superego). ° Trait Theory: Focuses on identifying specific traits that influence behavior g, Big Fivetraits: openness, conscientiousness, extraversion, agreeableness, neuroticism). ° Self-Concept Theory: The idea that a person's self-perception influences their behavior.Lifestyle: ¢ Definition: A person's pattern of living as expressed in activities, interests, and opinions. ¢ Components of Lifestyle: © Activities: What people do (e.g., work, hobbies, social events). © Interests: What people consider important (e.g., family, fashion, health). © Opinions: What people think about themselves and the world. ¢ Psychographics: The study of lifestyle and personality characteristics. ¢ VALS Framework: Segments consumers into groups based on their values, attitudes, and lifestyles,External Factors Influencing Consumer Behaviour Family ¢ Definition: The immediate social group of parents, siblings, and other relatives that influences an individual’s behavior. ¢ Roles in Family: ° Initiator: The person who suggests the idea of buying a product or service. Influencer: Family members who influence the buying decision. Decider: The person who makes the final buying decision. Buyer: The person who actually ° ° ° purchases the product. User: The person who uses the product. °¢ Family Life Cycle Stages: 1. Bachelor Stage: Young, single individuals. 2.Newly Married Couples: Young couples without children. 3. Full Nest I: Young married couples with young children. 4.Full Nest I: Married couples with older children. 5. Full Nest III: Older married couples with dependent children. 6.Empty Nest I: Older married couples with no children living with them. 7.Empty Nest II: Older married couples who are retired. 8.Solitary Survivor: Older single individuals, retired. 9. Influence on Consumption: Families influence buying decisions through communication, shared consumption experiences, and socialization.Reference Groups ¢ Definition: Groups that serve as a point of comparison or reference for individuals in forming their behaviors and attitudes. * Types of Reference Groups: 1. Primary Groups: Close-knit groups such as family and friends that have a direct influence. 2.Secondary Groups: Larger, more formal groups such as clubs or professional associations that have a more indirect influence. 3. Aspirational Groups: Groups to which an individual wishes to belong. 4. Dissociative Groups: Groups that an individual does not want to associate with. ¢ Reference Group Influence: 1. Informational Influence: Seeking information from the group to make informed decisions. 2.Normative Influence: Conforming to group norms to gain social approval. 3. Identification Influence: Adopting behaviors and attitudes to fit in with the group.Social Class ¢ Definition: A division of society based on social and economic status. ¢ Components: 1.Income: Financial earnings and wealth. 2.Occupation: Type and level of work. 3. Education: Level of education attained. 4.Wealth: Accumulated financial assets and property. ¢ Social Class Categories: 1. Upper Class: Wealthy, high-income individuals with high social status. 2. Middle Class: Average income earners, typically with some higher education. 3. Working Class: Individuals with lower income and less formal education. 4. Lower Class: Individuals with the lowest income and minimal formal education. 5. Influence on Consumption: Social class affects preferences, shopping behavior, and brand loyalty, often dictating the types of products and services consumed.Culture ¢ Definition: The set of shared values, beliefs, customs, and behaviors that characterize a group of people. ¢ Components of Culture: 1. Values: Core principles and standards that guide behavior. 2. Beliefs: Convictions or acceptance that certain things are true or real. 3.Customs: Traditional practices and behaviors. 4.Norms: Rules and expectations by which society guides behavior. 5.Subculture: A group within a culture that differentiates itself with distinct values and lifestyles (e.g., ethnic, religious, geographic subcultures). ¢ Cultural Influence on Consumption: 1.Cultural Norms: Dictate acceptable products and behaviors. 2.Cultural Values: Influence product preferences and buying motives. 3. Rituals: Regular, repeated activities (e.g., holidays, celebrations) that influence purchasing patterns.EXTERNAL FACTORS Factor Definition Key Points Family Immediate social group influencing behavior - Roles: Initiator, Influencer, Decider, Buyer, User - Family Life Cycle: Bachelor, Newly Married, Full Nest, Empty Nest, Solitary Survivor - Influence: Communication, shared consumption, socialization Reference (Groups Groups serving as points of comparison or reference - Types: Primary (family, friends), Secondary (clubs, associations), Aspirational, Dissociative - Influence: Informational, Normative, Identification Social Class social and economic status Division based on - Components: Income, Occupation, Education, Wealth - Categories: Upper, Middle, Working, Lower - Influence: Preferences, shopping behavior, brand loyalty Culture Shared values, beliefs, customs, and behaviors - Components: Values, Beliefs, Customs, Norms - Subculture: Differentiated groups within a culture - Influence: Norms, Values, RitualsPREVIOUS YEAR QUESTIONS Chapter-WisePREVIOUS YEAR QUESTIONS 1. Define Consumer Behaviour. Discuss the various factors influencing Consumer Behavior + Definition: Study of how individuals make decisions to spend resources on consumption-related items. + Factors: Cultural, social, personal, psychological, situational, marketing mix. 2. What is Consumer Life Style? + Definition: Way individuals live and spend their time and money. 3. What is Reference Group? + Definition: Group influencing an individual’s attitudes, values, and behavior. 4. What is Personality? + Definition: Unique psychological traits influencing consistent behavior. 5. Define Social Class. + Definition: Society's divisions based on socio-economic status. 6. What do you mean by Family Life Cycle? + Definition: Stages a family goes through over time affecting purchasing behavior. 7. Explain briefly the various elements of Consumer Learning. + Elements: Motivation, cues, response, reinforcement. NOTE:- THIS ARE ONLY KEYWORDS IN POINT-WISE NOT A FULL FLEDGED ANSWERPREVIOUS YEAR QUESTIONS 8. What is Personality? + (Already answered) 9. Define Perception. + Definition: Process of selecting, organizing, and interpreting information. 10. What do you mean by Reference Group? « (Already answered) 11. How personality affects consumer behavior? + Influence: Product preference, brand loyalty, purchasing decisions. 12. What is Personality? + (Already answered) 13. Define Culture. + Definition: Shared values, norms, practices of a group influencing behavior. 14. Define Perception. « (Already answered) 15. What do you mean by Reference Group? + (Already answered) 16. How personality affects consumer behavior? « (Already answered) NOTE:- THIS ARE ONLY KEYWORDS IN POINT-WISE NOT A FULL FLEDGED ANSWERPREVIOUS YEAR QUESTIONS 17. Discuss the role of reference group as a factor affecting consumer behaviour. + Role: Influences opinions, norms, and purchasing choices. 18. What is learning? + Definition: Process of acquiring knowledge or behavior through experience. 19. Define Attitude. + Definition: Learned predisposition to respond favorably or unfavorably. 20. What is learning? + (Already answered) 21. Define Attitude. + (Already answered) NOTE:- THIS ARE ONLY KEYWORDS IN POINT-WISE NOT A FULL FLEDGED ANSWERANALYSIS SHEET (if any topics here, or in PYQ's, arent cover in the notes above, then just do it by yourself :) ¢ CONSUMER LIFESTYLE ¢ REFERENCE GROUP*** *« PERSONALITY***** « SOCIAL CLASS** « FAMILY LIFE CYCLE** *« CONSUMER LEARNING** ¢ PERCEPTION**** *« CULTURE* « LEARNING** ¢ ATTITUDE**