Consumer Behavior

Rajeev Chawla

Consumer Behavior
Why Consumer Behavior?
How do we make Consumers buy our products with the reality that we live in a hypercompetitive economy Is there any understanding of consumers that can bear influence on their behavior Are there patterns of Consumer Behavior and can we study them? Do Men, women, children and senior citizens display any specific behavior which we can study and utilize? Do Consumers have buying patterns in their behavior? Do Consumers have a set way of imbibing or learning their habits and can we imbibe these in them?

Rajeev Chawla

Consumer Behavior
The Changes due to the Digital Revolution?
Consumers have more power than before Consumers have access to information as never before Marketers can offer more services and products than ever before Marketers and consumers have increasing interactivity and an immediate address Marketers can gather more information about consumers today The impact is beyond your Personal Computer to the WWW

Rajeev Chawla

Consumer Behavior - Definition

Consumer Behavior :

Consumer Behavior is defined as the behavior that consumers display in searching for, selecting, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs

Rajeev Chawla

Consumer Behavior
Consumer Behavior :

Seeped in The Marketing concept

The Marketing Orientation Consumer Research: Secondary & Primary Data Consumer Research: Syndicated Services, others Segmentation, Targeting & Positioning The Marketing Mix Consumer Value & Satisfaction Customer Retention

Rajeev Chawla

Consumer Behavior
Consumer Behavior :

Consumer Research:
Secondary Data:
Census Data Syndicated Services Database Marketing

Primary Data:
Qualitative research
Focus group interviews Projective techniques

Survey Research Experimental Research Observational Research

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DECISION MAKING

What is a decision? Why do we need to study DM Models? What is Hobson's Choice? DM: Required when Consumers are provided with a choice when there was originally none

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DECISION MAKING - cont

3 Levels of Consumer Decision Making:

Extensive Problem Solving Limited Problem Solving Routinised Response Behavior

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DECISION MAKING - cont

4 Views of Consumer Decision Making:

An Economic View A Passive View A Cognitive View An Emotional View

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THE CONSUMER DECISION MAKING MODEL

INPUT:
External Influences

Firms Marketing Effort 1. Product 2. Promotion 3. Price 4. Channels of Dist

Sociocultural Environment 1. Family 2. Informal Sources 3. Other noncommercial sources 4. Social class 5. Subculture & culture

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THE CONSUMER DECISION MAKING MODEL

PROCESS :

Consumer Decision Making

Need Recognition

Prepurchase Search
Evaluation Of Alternatives

Psychological Field Motivation 1. Perception 2. Learning 3. Personality 4. Attitudes

Experience

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THE CONSUMER DECISION MAKING MODEL

OUTPUT :

Post decision Behavior

Purchase

1. Trial 2. Repeat Purchase

Post purchase Evaluation

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THE CONSUMER DECISION MAKING MODEL

INPUT: External Influences

Firms Marketing Effort 1. Product 2. Promotion 3. Price 4. Channels of Dist

Sociocultural Environment 1. Family 2. Informal Sources 3. Other noncommercial sources 4. Social class 5. Subculture & culture

OUTPUT : Post decision Behavior PROCESS :Consumer Decision Making

Purchase Need Recognition Prepurchase Search Psychological Field Motivation 1. Perception 2. Learning 3. Personality 4. Attitudes 1. Trial 2. Repeat Purchase

Evaluation Of Alternatives

Post purchase Evaluation

Experience

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POST PURCHASE BEHAVIOR

INDIVIDUAL: Cognitive Dissonance Tries to Reduce Dissonance BRAND OWNER: Tries to reduce Dissonance too After Sales Service Referencing Communication Sops for Repeat Purchase

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DECISION MAKING EXERCISE

What Stimuli would you build to help Customer in their Decision Making Model to decide in favor of your business if it were: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. A Chinese Restaurant A Fast Food restaurant An International Airport An Educational Institute A Global Corporate Organizations office A Shopping Mall A Car Dealership Showroom A Multiplex A Discotheque A Book store

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LEARNING
TYPES OF LEARNING THEORIES: Behavioral OR The Stimulus-Response theories Cognitive OR Mental Process theories ELEMENTS OF LEARNING THEORY: Motivation Cues Response and Reinforcement

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LEARNING
Motivation: The basis is NEEDS and GOALS The action impetus Cues: These are the Stimuli They are built into communication as wall as the Marketing Mix Response: Reinforcement
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LEARNING APPLICATIONS Applications of Classical Conditioning:

Repetition Stimulus Generation
Product Line, Form and Category Extensions Family Branding Licensing

Generalizing Usage Situations Stimulus Discrimination Positioning Product Differentiation

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LEARNING APPLICATIONS Applications of Operant Conditioning:

Reinforcement of Behavior OR Customer Satisfaction Forgetting and Extinction Reinforcement Schedules Shaping Massed V/s Distributed Learning

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LEARNING APPLICATIONS Cognitive Learning:

How do Consumers store Information: Structure of Memory Sensory store Short term Store Long term store Rehearsal and encoding Retention Retrieval

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LEARNING MEASURABILITY

Response to Advertising Brand Loyalty and measure Brand Equity

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LEARNING EXERCISE
What Stimuli would you build in line with Classical & Operant Conditioning for: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant A Car Dealership Showroom

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Motivation

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MOTIVATION

What is Motivation?
The driving force within individuals that impels them to action An unfulfilled need and tension produce this driving force.. Individuals strive to reduce this tension

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NEEDS

MASLOW & the HEIRARCHY Of Needs

Self Actualization Self Esteem Social Needs Safety + Security Physiological

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Maslows Hierarchy of Needs

5
Selfactualization needs (self development and realization) 4

Esteem needs (self esteem, recognition, status) 3 Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (Food, water, shelter)
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Needs & Goals

NEEDS: All individuals have needs Innate Needs Physiological Needs (Primary Needs) Needed for sustenance Acquired Needs Secondary Needs They result from the individuals subjective psychological State and from relationships with others GOALS: What is a goal? Desired outcomes for individuals, groups or an entire organization Sought after results of motivated behavior

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Needs & Goals - cont

GOALS

Generic goals
Product specific goals GOALS are selected by individuals depending on their personal experiences, physical capacity, prevailing cultural norms and values and the goals accessibility in the physical and social environment GOALS must be socially acceptable and physically accessible NEEDS and GOALS are interdependent. They cannot exist in isolation of the other

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Needs & Goals - cont

MOTIVATION can be positive or negative in direction POSITIVE Action NEGATIVE Action

GOALS too can be positive or negative A positive one is towards which behavior is directed and A negative one is where behavior is directed away from

CALLED APPROACH & AVOIDANCE GOALS

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Needs & Goals - cont

NEEDS are never completely satisfied New needs emerge when old needs are satisfied Success and Failure Influence Goals
Frustration: DEFENSE MECHANISMS: Aggression Rationalization Regression Withdrawal

Identification Repression Projection

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Product Versus Need Orientation Needs & Goals

PRODUCT ORIENTED
Daimler Benz We make luxury cars

NEED ORIENTED
We make automobiles which give our customers the sense of achievement they richly deserve We make hockey players perform better and more effectively

Tabi

We make hockey sticks

Hilton Group

We rent rooms and run 5 star hotels

We genuinely care for the comfort of our guests, ensure the finest personal service and facilities, a warm ambience and an experience that fulfills even the unexpressed needs of our guests We create outstanding professionals with incisive minds through our curriculum and methodology making them the best of class professionals in their careers 31

IIM

We teach management studies

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THE MOTIVATION MODEL

Learning

Unfulfilled Needs,Wants And Desires

Tension/ Anxiety

Drive

Behavior

Goal or Need Fulfillment

Cognitive Processes
Tension Reduction
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Needs Goals Relationship

Means-end Analysis is a way to view the needs-goals paradigm Set goals based on personal values Select means (behaviors) that are believed to help achieve their desired end
Value Good Health Means Stay trim Low sugar/cal Low cholesterol Hygienic clothes Product Running shoes/Bicycles/Treadmill Sugar-free /diet colas/diet beers too White meats/Fish Washing Machine

To promote a specific product by associating it with a generic goal

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MOTIVES

AROUSAL OF MOTIVES
Physiological Arousal Emotional Arousal Cognitive Arousal Environmental Arousal

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Market Segmentation

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Degrees of Break-down

Mass Marketing Segmentation Niche Marketing Micro-niche marketing Individual marketing (Customization) Mass Customization

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Degrees of Market Break-down

Mass Marketing The seller engages in mass production, mass distribution, and mass promotion of one product for all buyers E.g.: Ford, Coca-Cola Segmentation A market segment consists of a group of customers who share a similar need or needs. This could be low-cost, or a luxury experience Marketers advise to offer segmented customers a flexible offering consisting of a naked solution containing the product and the service elements that all segments members value, and discretionary options that some segment members value E.g.: car manufacturers offer several variants to the same model

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Degrees of Market Break-down

Niche Marketing A Niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub-segments An attractive niche is characterized as follows: The customers in the niche have a distinct set of needs: they will pay a premium to the firm that best satisfies their needs; the niche is not likely to attract other competitors; the nicher gains certain economies through specialization and the niche has size, profit, and growth potential Whereas segments are fairly large and normally attract several competitors, niches are fairly small and attract only one or two competitors

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Degrees of Market Break-down

Micro-niche marketing A Micro-niche is a very small segment of the market which has very few customers. A niche within a niche could also be called a micro-niche. Micro niches obviously have high profitability as customers are willing to pay more to have their needs met Individual marketing (Customization) Customization is the concept of a segment of One. This is a low-volume high-profit segment and the product is made specifically to cater to the needs of a single customer E.g.: Harley-Davidson bikes, Diet Programs Mass Customization Increasing number of customers are demanding Customized offerings for the price of a Mass product E.g.: Dell computers, Automobiles abroad, Paint Companies

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Segmenting Consumer Markets

SEGMENTATATION /SEGMENTATATION VARIABLES
BASES GEOGRAPHIC Region City Size Density of Area Climate DEMOGRAPHIC Age Gender Marital Status Income Education Occupation

North, Central India, North Eastern States Metros, Mini metros, Towns Class A, B & C Urban, Semi-urban, rural Temperature, Hot, Rainy, Humid

Under 12, 12 18, 18 25, 25 35, 35 49, etc Male, female Single, Married, Divorced, Live-ins, Widowed Under Rs. 18,000, Rs. 18,000 50,000, Rs. 50,000 1,00,000, etc High School, Higher Secondary, Graduate,Post graduate Professional, Blue Collar, White Collar, Government, PSU, Civil Services, Armed Forces, etc Rajeev Chawla 40

Segmenting Consumer Markets

SEGMENTATATION /SEGMENTATATION VARIABLES
BASES PSYCHOLOGICAL Needs motivation Personality Perception Learning Attitudes PSYCHOGRAPHIC Lifestyle SOCIOCULTURAL Cultures Religion Sub-cultures

Shelter, Safety, Security, Affection, Sense of Self Worth Extrovert, aggressives, novelty seekers Low risk, Moderate risk, high risk Low involvement, high involvement Positive attitude, negative attitude

Status seekers, conformists, couch potatoes, economy minded

Northerners, South Indians, East Indians, North Easterners Christians: Catholics, Protestants, Hindus, Jews, Muslims North Easterners, Dalits, OBCs, Hispanics, Afro Americans, Asians, Caucasians, Anglo Saxons

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Segmenting Consumer Markets

SEGMENTATATION /SEGMENTATATION VARIABLES
BASES USE RELATED SEGMENTS Usage Rate Heavy Users, Moderate Users, Light Users, Non Users Awareness Status Unaware, aware, interested, enthusiastics Brand Loyalty None, Some, Strong USE SITUATION Time Objective Location Person Benefit

Morning, Night, Leisure, Work Personal, Gift, Snack, Fun, Achievement Home, Work place, In store, Friends Home Self, family members, boss, peers Social acceptance, economy, lasting, value for money, convenience

HYBRID SEGMENT Demographic + Psychographic Geo-demographic Black Enterprise, Chinese company

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Market Segmentation Criteria

One the firm has identified its market-segment opportunities, it has to decide how many and which ones to target To be useful, market segments must rate favorably on 5 key criteria: Measurable The size, purchasing power and characteristics of the segments can be measured Substantial The segment should be large and profitable enough to serve Accessible The segments can be effectively reached and served Differentiable The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs Actionable Effective programs can be formulated for attracting and serving the segments
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SOCIAL CLASS AND IMPACT ON CONSUMER BEHAVIOR

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SOCIAL CLASS
Is a doctor more valued than a truck driver or a farm worker in our society? This is the indication of the reality of the existence of a social class Definition: SOCIAL CLASS is defined as the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status Status is frequently thought of as the relative rankings of members of each social class in terms of specific status factors: Relative wealth: Amount of economic assets Power: The degree of influence over others And Prestige: The degree of recognition received from others All 3 status factors are frequently used when estimating social class
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SOCIAL CLASS
Individuals with more purchasing power or a greater ability to make purchases have more status

More convenient variables for status are demographic variables: family income, occupational status educational attainment
SOCIAL CLASS AND SEGMENTATION: Social class categories are usually ranked in a hierarchy, ranging from low to high status. Social class categories suggest to many people that others are equal to them, superior to them or equal to them Within this context, social-class membership serves consumers as a frame of reference for the development of their attitudes and behavior The hierarchical aspect of social class is important to marketers. Consumers may purchase certain products because these products are favored by members of either their own or a higher social class, and consumers may avoid other products because they perceive the products to be lower-class products
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SOCIAL CLASS

SOCIAL CLASS CATEGORIES: Upper-upper class Lower-Upper class Upper-middle class Lower-middle class Upper-lower class Lower-lower class OR Blue collar, grey collar, white collar

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SOCIAL CLASS
MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: Subjective measures Reputational measures and Objective measures Subjective measures: Individuals are asked to estimate their own social-class positions. Typical of this approach is the following question: Which of the following categories best describes your social class? The Lower class ( ) The Lower-middle class ( ) The Upper-middle class ( ) The Upper class ( ) Do not know/refuse to answer ( )
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SOCIAL CLASS
MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: Subjective measures Reputational measures and Objective measures

Reputational measures: The reputational approach for measuring social class requires selected community informants to make judgments concerning the social-class membership of others within the community The final task of assigning community members to socialclass positions, however, belongs to the trained researcher

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SOCIAL CLASS
MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: Subjective measures Reputational measures and Objective measures

Objective measures: These consist of selected demographic or socioeconomic variables concerning the individual under study. These variables are measured through questionnaires that ask the respondents several factual questions about themselves, their families, or their places of residence. Most researchers favor one or more of the following variables: Occupation, amount of income and education To the above socioeconomic factors, they add geodemographic in the form of zip code, and residence neighborhood information
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The VALS Framework

Actualizers

High Resources High Innovation

Principle oriented

Status oriented

Action oriented

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Strugglers Rajeev Chawla

Low Resources Low Innovation 51

The VALS Framework

Innovators
High Resources High Innovation

Principle oriented

Status oriented

Action oriented

Thinkers

Achievers

Experimenters

Believers

Strivers

Makers

Survivors Rajeev Chawla

Low Resources Low Innovation 52

The VALS Framework

Psychographic Segmentation: The major tendencies of the four groups with higher resources are: Innovators: Successful, sophisticates, active, take-charge people with high self-esteem. Purchases, often reflect cultivated tastes for relatively upscale, niche-oriented products and services Thinkers: Mature, satisfied, and reflective people who are motivated by ideals and value order, knowledge, and responsibility. Favor durability, functionality, and value in products Achievers: Successful goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers Experimenters: Young, enthusiastic, impulsive people who seek variety and excitement. Spend a comparatively high proportion of income on fashion, entertainment, and socializing
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The VALS Framework

Psychographic Segmentation: The major tendencies of the four groups with lower resources are: Believers: Conservative, conventional, and traditional people with concrete beliefs. They favor familiar products, and are loyal to the established brands Strivers: Trendy and fun loving who are resource constrained. They favor stylish products that emulate the purchases of those with greater material wealth Makers: Practical, down to earth, self-sufficient people who like to work with their hands. They favor products with a practical or functional purpose Survivors: Elderly, passive people who are concerned about change. They are loyal to their favorite brands
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U r a Mouse Potato or a Techno-Striver..?

CAREER
Fast forwards (biggest spenders, early adopters of new technology for all use) Techno-Strivers (use technology from cell phones and pagers to online services primarily) Hand-Shakers (older consumer, do not touch computers, leave them to assistants)

FAMILY
New Age Nurtures (big spender, focused on technology for home use) Digital Hopefuls (limited budget but still interested in new tech)

ENTERTAINMENT
Mouse Potatoes (willing to spend for the latest in technotainment) Gadget-Grabbers (favor online entertainment but have less cash to spend)

PESSIMISTS

OPTIMISTS

Traditionalists (willing to use tech but slow to upgrade)

Media Junkies (seek entertainment, cannot find online, prefer TV and other older media)

SIDELINED CITIZENS (not interested in technology)

MORE AFFLUENT Rajeev Chawla

LESS AFFLUENT 55

CONSUMER PERCEPTION

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PERCEPTION

PERCEPTION: Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful picture of the world

PERCEPTION IS OUR MAP OF REALITY IF WE WISH TO CHANGE PERCEPTION WE WILL HAVE TO CHANGE ONES REALITY

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PERCEPTION - cont
IMPLICATIONS:
GENERIC: Positioning Addressing Segments Brand personality Communication message Marketing Mix SPECIFIC: Packaging Shelf merchandising Color Culture/Communities etc Product details Push Promotions
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CONCEPTS
CONDITIONING:
THE PAVLOVIAN DOG CLASSICAL CONDITIONING

Stimulus + Association through an object = Response After repeated learning, even in the absence of the Stimulus a subject will elicit a response merely on the basis of the association of the object

EXAMPLES:
Aroma in restaurants / Strong Visuals of Food Silence in a Board Room or at a funeral A judge entering his chambers silence and order follows Background music in movies Firecrackers signify celebration

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CONCEPTS
CONDITIONING:
REWARD AND PUNISHMENT OPERANT CONDITIONING B. F. SKINNER The Human Desire for Strokes positive and negative Reward and punishment Praise and Admonish EXAMPLES: Loyalty based promotions : Flying Returns, FCC Scratch Cards with Gifts/Prizes All the Current Car Finance Schemes

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CONCEPTS
WHATS THE MODUS OPERANDI: How do you use Conditioning? Whats the channel? THE 5 SENSES!!! SENSATION The immediate and direct response of the sensory organs to simple stimuli The Human organs are the sensory receptors that marketers work on Which is the strongest sense???

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CONCEPTS - cont
THRESHOLD:

Absolute threshold: The lowest level at which an individual can experience a sensation The point at which a person can detect a difference between something and nothing is that persons absolute threshold for that stimulus. Adaptation is the variation that marketers are concerned about; this is technically called SENSORY ADAPTATION
EXAMPLES: Billboards distance Fonts on Billboards Advertisements positions in the newspapers

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CONCEPTS - cont
THRESHOLD:
Differential threshold: The minimal differential that can be detected between two similar stimuli is called the differential threshold or also called the J.N.D. Just noticeable difference Credits : Ernst Weber! and called Webers Law Weber's Law: The JND between 2 stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus.

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CONCEPTS - cont
Corollary to Webers Law: The stronger the initial stimulus, the greater the additional intensity needed for the stimulus to be perceived as different. Marketing Applications/Implications of JND: 1) Negative changes are not readily discernable to the public and 2) Product improvements are very apparent to consumers without being wastefully extravagant EXAMPLES: NEW COKE PACKAGING CHANGES PEPSI packaging 1997, COKE freshness in color

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PERCEPTION Is it a big deal!!! Or Is it much Ado About Nothing?

SUBLIMAL PERCEPTION: Stimulation below the levels of consciousness, but strong enough to be perceived by one or more of our receptor cells The stimulus is beneath the threshold, hence sublimal THE CONCEPT OF SUPERLEARNING EXAMPLES: Super soft sublimal music with suggestions being put forth through audio messages can actually induce positive buying behavior Sublimal visual messages with written suggestions induces purchase

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PERCEPTION - cont

USAGE OF THE SUBLIMAL CONCEPT IN-STORE Store audio + Music Restaurants + Music

PERCEIVED PRICING IN PROMOTIONS Perceived Price and the Cost Price : Effect on Psyche

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Application of Perception Theory

RESTAURANT 1) MENU WITH FRAGRANCE 2) NATURAL HERBS WILL BE USED IN CONTINENTAL FOOD 3) MAKE YOUR OWN DISH AS PER YOUR WISH 4) OPEN KITCHEN - WATCH THE FOOD BEING COOKED 5) MUSICIANS COMING AND PLAYING ON EACH TABLE AND ENTERTAINING DEPT. STORES 1) KIDS CORNER 2) PROMOTIONS 3) INVITE CELEBRITIES 4) CREATE FREE SPACE 5) DISTINCT SECTIONS 6) FREE MEHANDI

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LEARNING & PERCEPTION EXERCISE

a. What Stimuli would you build in line with Classical & Operant Conditioning for: b. What would you keep in mind to ensure the right Perception as well as the 2 Perception Laws for the future 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. A Car Dealership Showroom A Casino A Caf A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant

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Application of Perception Theory

BOOKSTORE

1) SIT AND BROWSE 2) CREATE SMALL EVENTS FOR BOOK LAUNCHES 3) BOOK READING SESSION FOR CHILDREN 4) ANNUAL SECOND HAND BOOK SALE 5) DISPLAY OF FAVOURITE TITLES - EVERY WEEK DIFFERENT 6) LIGHT & SOUND EFFECTS FOR DIFFERENT SECTIONS 7) CREATE AN OUTER PRINT SECTION 8) CAFETERIA / COFFEE CORNER 9) CREATE DISPLAYS AT DIFFERENT SECTIONS 10)ALLOW PEOPLE TO LISTEN TO MUSIC WHILE READING IN THE STORE- MUSIC IN CONSONANCE WITH WHAT YOU READ 11)OXYGEN BARS IN BOOK STORES

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Application of Perception Theory

BOWLING ALLEY 1)AUDIO VISUAL SCREEN TEACHING YOU HOW TO BOWL- TIPS ON BOWLING 2)CAFETERIA & MUSIC 3)SCREENING OF SOME SPORT 4)HAVE EVENTS WHERE CELEBRITIES COME AND PLAY CONTESTS FOR CELEBRITIES 5)GET SACHIN LOOK ALIKE 6)WHILE YOU ARE BOWLING RECORD AND SEE HOW YOU PLAY

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LEARNING & PERCEPTION EXERCISE

a. What Stimuli would you build in line with Classical & Operant Conditioning for: b. What would you keep in mind to ensure the right Perception as well as the 2 Perception Laws for the future 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant A Car Dealership Showroom A Casino

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Culture & Sub-Culture

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CULTURE
CULTURE is a Societys personality The factors such as language, knowledge, laws, religion, practices, food customs, music, art, technology, work patterns, products and others comprise a Societys culture Hence CULTURE is a Societys personality Culture does not have boundaries Definition of CULTURE

CULTURE is the sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society

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VALUES & BELIEFS

BELIEFS: Beliefs consist of a large number of mental or verbal statements (as in ..I believe) which reflect a persons particular knowledge and assessment of something VALUES: Values differ by meeting the following criteria: 1) They are relatively few in number 2) They serve as a guide for culturally appropriate behavior 3) They are enduring or difficult to change 4) They are tied to specific objects or situations and 5) They are widely accepted by members of society

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CUSTOMS
CUSTOMS: Customs are overt modes of behavior that constitute culturally approved or acceptable ways of behaving in specific situations. Thus: But: VALUES and BELIEFS are guides for behavior CUSTOMS are usual and acceptable ways of behaving

Values & Beliefs of Corporations (Examples): WIPRO IBM APPLE The new breed of FUN Corporations: Healthscribe
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CULTURE

How CULTURE forms our Daily Habits: Eating Habits Personal Hygiene Food and Drink for Occasions Holidays Work Culture Dress Codes (Informal)

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LEARNING CULTURE
LEARNING CULTURE a) Formal Learning b) Informal Learning c) Technical Learning

Advertising uses Informal Learning largely It tends to create reinforcement of message to ingrain culture

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CULTURE - CHALLENGES

CHALLENGES OF CULTURE - Products Kellogs Breakfast Cereal Ready to eat Masala Foods Eating out The concept of Freshly prepared meals (India)

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CULTURE - LEARNING

CULTURE WHERE DO WE LEARN FROM The Family Educational Institutions Houses of Worship Social Institutions The Work Place Peer Groups

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CHANGING CULTURE
Examples: Diapers Cosmetics: Natural Products Paper & Industry: Environmentally friendly products Hotels: Eco friendly Hotels

THE DYNAMISM OF CULTURE: The Working woman One child families Families in decision making Children in decision making The single parent

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CULTURE
ENCULTURATION: The learning of ones own culture

ACCULTURATION: The learning of a new or foreign culture

Examples: McDonalds The Pepsi Arabic example LANGUAGE & SYMBOLS: The use in Advertising and Communication Logos Brand Names Visual symbols

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CULTURE - Rituals
RITUALS:

A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated over time
Rituals are very public, elaborate, religious or civil ceremonies, formal, other scripted behavior and repeatable Rituals tend to need ritual artifacts (products) that are associated with or somehow enhance the performance of the ritual

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CULTURE

CORE VALUES:

Values that affect and reflect the character of a Society. Core values must be pervasive, enduring and must be consumer-related

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CULTURE Core Values

CORE VALUES: American Core Values Achievement and Success Activity Orientation Efficiency and Practicality Progress Material Comfort Individualism External Conformity Humanitariasm Youthfulness Fitness and Health

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CULTURE
WHAT ARE CORE INDIAN VALUES:

Indoctrination towards elders The Family Value (Joint family perhaps) Permanency to marriage Religion

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SUB-CULTURE

SUBCULTURE: Distinct groups easily identifiable as a segment within a larger more complex society are called subcultures The divisions are based on a variety of socio-cultural and demographic variables such as nationality, religion, geographic locality, race, age, sex and even working status

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SUB-CULTURE

MARKETING IN SUBCULTURES: Understanding subculture and behavior exhibited by that culture Segmenting the subculture Defining values, Behavior and Opportunities or relevance to Consumer Behavior

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SUB-CULTURE

SUBCULTURE PARAMETERS: Origins or Nationality Religion Geography & Regions Races Age Sex (Gender)

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SUB-CULTURE

CONSUMER BEHAVIOR: AN INTERNATIONAL PERSPECTIVE: Acculturation Exposure to Other Cultures Country of Origin Effect Multinationalism Global V/s Local

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ATTITUDE FORMATION AND CHANGE

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ATTITUDE FORMATION
ATTITUDES are our opinions or feelings towards an object, product or situation ATTITUDES are evidenced or inferred from our behavior Definition: ATTITUDE is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object Object = Product, product category, service, brand, advertisement etc This is consumption oriented definition of attitude

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ATTITUDE FORMATION
ATTITUDES: Attitudes are Learned Attitudes have consistency Attitudes occur within a situation ATTITUDE STUDIES are therefore the study of the relationship between Attitude and Behavior

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ATTITUDE FORMATION
ATTITUDE STUDIES: I) TRICOMPONENT ATTITUDE MODEL II) MULTIATTRIBUTE ATTITUDE MODEL: The Attitude towards Object Model The Attitude towards Behavior Model The Theory of Reasoned action Model III) THEORY OF TRYING TO CONSUME IV) ATTITUDE TOWARDS THE AD MODEL

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ATTITUDE FORMATION
ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: a) A Cognitive component: Knowledge and perception Based on our beliefs b) An Affective component: Emotions of a product with amplification c) A Conative Component: The likelihood or tendency to act in a particular way The intention to buy

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ATTITUDE FORMATION
ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components:

Conation

Affect Cognition

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ATTITUDE FORMATION
ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Cognitive component: This consists of a persons cognitions, that is, the knowledge and perceptions that are acquired by a combination of direct experience with the attitude object and related information from various sources The knowledge and resulting perception commonly take the form of beliefs that the attitude object possesses various attributes and that specific behavior will lead to specific outcomes

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ATTITUDE FORMATION
ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Affective component: The consumers emotions or feelings about a particular product or brand constitute the affective component of an attitude Affect-laden experiences also manifest themselves as emotionally charged states; eg., happiness, sadness, shame, disgust, anger, distress, guilt, or surprise Research indicates that such emotional states may enhance or amplify positive or negative experiences and that later recollections of such experiences may impact what comes to mind and how the individual acts

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ATTITUDE FORMATION
ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Conative Component: Conation, is concerned with the likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object According to some interpretation, the conative component is frequently treated as an expression of the consumers intention to buy

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ATTITUDE FORMATION
ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: Consumer attitudes are a function of a consumers perception and assessment of the key attributes or beliefs held with regard to the particular attitude object The Attitude towards Object Model The Attitude towards Behavior Model The Theory of Reasoned action Model

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ATTITUDE FORMATION
ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Attitude towards Object Model This is suitable for measuring attitudes towards a product category or specific brands. The consumers attitude towards a product or service of a specific brand is a function of the presence or absence and evaluation of certain product-specific beliefs and/or attributes Hence if the consumer evaluates an adequate level of attributes as positive, then they have a favorable attitude towards those brands If the attributes are felt inadequate then the attitude towards the brand is unfavorable

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ATTITUDE FORMATION
ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Attitude towards Behavior Model The attitude-towards-behavior model is the individuals attitude towards behaving or acting with respect to an object rather than the attitude itself The appeal of the attitude-towards-behavior model is that it seems to correspond somewhat more closely to actual behavior than does the attitude-towardsobject model

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ATTITUDE FORMATION
ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Theory of Reasoned action Model The theory of reasoned action represents a comprehensive integration of attitude components into a structure that is designed to lead to both better explanation and better predictions of behavior Like the tri-component model it also incorporates a cognitive component, an affective component and a conative component; however these are arranged in a pattern different from that of the tri-component model

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ATTITUDE FORMATION
II) MULTIATTRIBUTE ATTITUDE MODEL: The Theory of Reasoned action Model
A SIMPLIFIED VERSION OF THE THEORY OF REASONED ACTION
Benefits that the behavior leads to certain outcomes Attitude toward the behavior

Evaluation of the outcomes

Intention Beliefs that specific Referents think I should or should not perform the behavior Motivation to comply with the specific referents Behavior

Subjective norm

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ATTITUDE FORMATION

ATTITUDE STUDIES: III) THEORY OF TRYING TO CONSUME:

Where the action or the outcome is not certain, but instead reflects the consumers attempt to consume (or purchase) In such cases there are personal impediments and/or environmental impediments that might prevent the desired action or outcome from occurring

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ATTITUDE FORMATION
ATTITUDE STUDIES: IV) ATTITUDE TOWARDS THE AD MODEL: 1) The consumer forms various feelings and judgments as a result of exposure to an ad. 2) This in turn affects the consumers attitude towards the ad and beliefs about the brand acquired from exposure to the ad 3) Finally the consumers attitude towards the ad and beliefs about the brand influence his attitude towards the brand

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ATTITUDE FORMATION
1) How are attitudes learned 2) The sources of influence on attitude formation 3) The impact of personality on attitude formation How are attitudes learned: Theories of learning Classical Conditioning Operant conditioning Belief formation Motivation

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ATTITUDE FORMATION
1) 2) 3) How are attitudes learned The sources of influence on attitude formation The impact of personality on attitude formation

The sources of influence on attitude formation : Personal influence Family and friends influence Direct Marketing Mass Media

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ATTITUDE FORMATION
1) How are attitudes learned 2) The sources of influence on attitude formation 3) The impact of personality on attitude formation The impact of personality on attitude formation : High need for Information Early innovators + reinforcement

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ATTITUDE CHANGE

ATTITUDE FORMATION and ATTITUDE CHANGE are both learned behavior

ATTITUDE CHANGE STRATEGIES are:
Changing the Consumers basic motivational function Associating the product with an admired group or event Resolving two conflicting attitudes Altering components of the multi attribute model and Changing consumer beliefs about competitor brands

COGNITIVE DISSONANCE

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Personality and Consumer Behavior

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Personality
Personality As Marketers we appeal to Consumers in terms of their personality characteristics. This is based on the premise that What Consumers purchase, and when and how they consume, is likely to be influenced by personality factors Hence appeals like: Individuality Tata Safari Make Your Own Road Being challeged Hyatt Resorts What time would you like to lose your dignity Freedom (Finding yourself) Provogue Be the Attitude, Be the Change Making a Statement SX4 The Men are Back
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Personality
Personality Definition: The inner psychological characteristics that both determine and reflect how a person responds to his or her environment The Nature of Personality: 3 distinct properties of personality are of central importance: Personality reflects individual differences People as individuals are different. They could be adventurous, serious by nature, gregarious, lively, sad, mission oriented, etc Personality is consistent and enduring Even though consumers personalities may be consistent, their consumption behavior often varies considerably because of the various psychological, socio-cultural, environmental, and situational factors that affect behavior However an individuals personality is consistent given these differences Personality can change Under certain circumstances, personalities change. Personality may be altered by major life events, such as birth of a child, death of a loved one, a divorce, significant career promotions
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Personality

Personality: An Overview of the Theories of Personality Freudian theory: Unconscious needs or drives are at the heart of human motivation Neo-Freudian personality theory : Social relationships are fundamental to the formation and development of personality Trait theory : Quantitative approach to personality as a set of psychological traits

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Personality
Personality: The Theories of Personality

Freudian theory: Sigmund Freuds psychoanalytic theory of personality is a cornerstone of modern psychology
The premise of the theory is that: Unconscious needs or drives, especially sexual or other biological drives are at the heart of human motivation and personality Freud constructed his theory on the basis of patients recollections of early childhood experiences, analysis of their dreams, and their specific nature of their mental and physical adjustment problems Freud proposed that the human personality consists of three interacting systems: the Id, the Superego, and the Ego

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Personality
Personality: The Theories of Personality Freudian theory: Freud proposed that the human personality consists of three interacting systems: the Id, the Superego, and the Ego Id: The Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction basic physiological drives and needs such as thirst, hunger, and sex for which individuals seek immediate satisfaction without concern for the specific means of satisfaction Superego: The Individuals internal expression of societys moral and ethical codes of conduct The Superegos role is to see that the individual satisfies needs in a socially acceptable fashion. It acts like a brake that restrains or inhibits the impulsive forces of the Id Ego: The Individuals conscious control that balances the demands of the id and superego. It functions as an internal monitor that attempts to balance the impulsive demands of the Id and the socio-cultural constraints of the superego
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Personality
Personality: The Theories of Personality Freudian theory: Freud emphasized that an individuals personality is formed as he or she passes through a number of stages of infant, and childhood development These are the oral, anal, phallic, latent, and genital stages According to Freudian theory, an adults personality is determined by how well he or she deals with the crises that are experienced while passing through each of these stages For instance, if a childs oral needs are not adequately satisfied at the first stage of development the person may become fixated at this stage and as an adult display a personality that includes such traits as dependence and excessive oral activity like gum chewing and smoking When an individual is fixated at the anal stage, the adult personality may display traits such as an excessive need for neatness

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Personality
Personality: A Representation of the Interrelationships among the Id, The Superego, and the Ego

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Personality
Personality: Freudian Theory and Product Personality Consumer researchers using Freuds personality theory see consumer purchases as a reflection and extension of the consumers own personality With Respect to Snack Food and Personality Traits as an Example: Potato Chips: Ambitious, successful, high achiever, impatient Tortilla Chips: Perfectionist, high expectations, punctual, conservational Pretzels: Lively, easily bored, flirtatious, intuitive Snack Crackers: Rational, logical, contemplative, shy, prefers time alone Popcorn: Takes charge, pitches in often, modest, self-confident but not a show-off Meat Snacks: Gregarious, generous, trustworthy, tends to be overly trusting
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Personality
Personality: The Theories of Personality Neo-Freudian theories: We seek goals to overcome feelings of inferiority We continually attempt to establish social relationships with others to reduce tensions Alfred Alder viewed human beings as seeking to attain various rational goals, which he called style of life. He also placed much emphasis on the individual's efforts to overcome feelings of inferiority Harry Stock Sullivan, another Neo-Freudian, stressed that people continuously attempt to establish significant and rewarding relationships with others Karen Horney was interested in child-parent relationships and desires to conquer feelings of anxiety. She proposed that individuals can be classified into three personality groups: Compliant, Aggressive, and Detached Compliant individuals move toward others, they desire to be loved, wanted, and appreciated Aggressive those individuals who move against others Detached move away from others
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Personality
Personality: The Theories of Personality The Trait Theory: Personality theory with a focus on psychological characteristics Trait - any distinguishing, relatively enduring way in which one individual differs from another Trait theorists are concerned with the construction of personality tests that enable them to pinpoint individual differences in terms of specific traits Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brand Personality tests measure such traits as: Consumer Innovativeness how receptive a person is to new experiences Consumer Materialism the degree of the consumers attachment to worldly possessions and Consumer Ethnocentricity the consumers likelihood to accept or reject foreign-made products

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Personality
Personality: The Theories of Personality The Trait Theory: 1. Consumer Innovativeness and Related Personality Traits Innovativeness The degree to which consumers are receptive to new products, new services, or new practices Dogmatism A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs Social character Ranges on a continuum for inner-directedness to otherdirectedness

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Personality
Personality: The Theories of Personality The Trait Theory: 1. Consumer Innovativeness and Related Personality Traits Inner-directedness Rely on own values when evaluating products Innovators Other-directedness look to others less likely to be innovators Need for uniqueness Consumers who avoid appearing to conform to expectations or standards of others Optimum stimulation level (OSL) A personality trait that measures the level or amount of novelty or complexity that individuals seek in their personal experiences High OSL consumers tend to accept risky and novel products more readily than low OSL consumers

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Personality
Personality: The Theories of Personality The Trait Theory: 1. Consumer Innovativeness and Related Personality Traits Sensation seeking Closely related to the OSL concept is sensation seeking, which has been defined as a trait characterized by the need for varied, novel, and complex sensations and experience, and the willingness to take physical and social risks for the sake of experience Variety-novelty seeking Measures a consumers degree of variety seeking Examples include: Exploratory Purchase Behavior Use Innovativeness Vicarious Exploration

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Personality
Personality: The Theories of Personality The Trait Theory: 2. Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Consumer materialism Materialism, as a personality trait, distinguishes between individuals who regard possessions as essential to their identities and their lives and those for whom possessions are secondary Researchers have found some general support for the following characteristics of materialistic people: They especially value acquiring and showing off possessions They are particularly self-centered and selfish They seek lifestyles full of possessions Their many possessions do not give them great satisfaction

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Personality
Personality: The Theories of Personality The Trait Theory: 2. Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Fixated Consumer Behavior Somewhere between materialism and compulsion, with respect to buying or possessing objects, is the notion of being fixated with regard to consuming or possessing Like materialism, fixated consumption behavior is in the realm of normal and socially acceptable behavior Fixated consumers so not keep their objects or purchases of interest a secret; rather, they frequently display them, and their involvement is openly shared with others who have a similar interest Fixated consumers typically possess the following characteristics:
A deep interest in a particular object or product category A Willingness to go to considerable lengths to secure additional examples of the object or product category of interest and The dedication of a considerable amount of discretionary time and money to searching out the object or product Rajeev Chawla 125

Personality
Personality: The Theories of Personality The Trait Theory: 2. Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Compulsive Consumption Behavior Compulsive Consumption is in the realm of abnormal behavior it is an example of the dark side of consumption Consumers who are compulsive have an addiction; in some respects they are out of control, and their actions may have damaging consequences to them and those around them Examples of compulsive consumption problems are uncontrollable shopping, gambling, drug addiction, alcoholism, and various food and eating disorders For instance, there are many women and a small number of men who are chocoholics - they have an intense craving for chocolate To control or possibly eliminate such compulsive problems generally requires some type of therapy or clinical treatment
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Personality
Personality: The Theories of Personality The Trait Theory: 3. Consumer Ethnocentrism- Responses to Foreign-Made Products To distinguish between consumer segments, that are likely to be receptive to foreign-made products and those that are not, researchers have developed ad tested the consumer ethnocentrism scale, called CETSCALE The CETSCALE has been successful in identifying consumers with a predisposition to accept (or reject) foreign-made products Consumers who are highly ethnocentric are likely to feel that it is appropriate or wrong to purchase foreign-made products because of the resulting economic impact on the domestic economy, whereas non-ethnocentric consumers tend to evaluate foreign-made products ostensibly more objectively for their extrinsic characteristics Ethnocentrism has been found to vary by country and product For example:
Mexican consumers, for example, have been found to be more ethnocentric than their French and American counterparts Some older American consumers still refuse to purchase German and/or Japanese products Rajeev Chawla 127

Personality
Personality: The Theories of Personality The Trait Theory: 3. Consumer Ethnocentrism- Responses to Foreign-Made Products

The CETSCALE Items

1. American people should always buy American-made products instead of imports 2. Only those products that are unavailable in the U.S. should be imported 3. Buy American-made products. Keep America working. 4. Purchasing foreign-made products is un-American 5. It is not right to purchase foreign products, because it puts Americans out of jobs 6. A real American should always buy American-made products. 7. We should purchase products manufactured in America instead of letting other countries get rich off us 8. It is always best to purchase American products

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Personality
Personality: The Theories of Personality The Trait Theory: 3. Consumer Ethnocentrism- Responses to Foreign-Made Products

This ad is designed to appeal to consumer ethnocentrism.

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Brand Personality
Brand Personality Consumers attribute various descriptive personality traits or characteristics to different brands in a wide variety of product categories For example, consumers see Brands as having the following charactristics: Volvo Nike BMW Levis 501 is Safe represents the athlete in us is a Performance driven machine is dependable and rugged

Such personality-like images of brands reflect consumers visions of the inner core of many strong brands of consumer products A Brands personality can be either functional, or symbolic As long as it is strong and favorable, it will strengthen the brand

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A Brand Personality Framework

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Brand Personality
Brand Personification

Product Personality and Gender

Product Personality and Geography

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Brand Personality
Product Personality and Geography

Personality and Color

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The Howard Sheth Model

(John Howard & Jagdish Sheth)

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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model The Howard Sheth model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The Howard Sheth model is related to the black box theory of behaviorism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response

The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer
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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search Sources of information include: Personal sources Commercial sources Public sources Personal experience The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world'

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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to Selective attention consumers select which promotional messages they will pay attention to Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences Selective retention consumers remember messages that are more meaningful or important to them The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand

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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration

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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision

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The Howard Sheth Model

The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour concern with consumer needs, and consumer actions in the direction of satisfing needs leads to his behaviour. Behaviour of every individual depends on his thinking process External influences

Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors

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The Decision Making Process

Need Recognition Information Search Evaluation R E S P O N S E

M A R K E T I N G S T I M U L I

P R O C E S S R O L E S

D E C I S I O N S E T

Environment Stimuli Personal Characteristics

Purchase
Outcome

Satisfaction

Dissatisfaction

Action
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The Engel, Blackwell, Kollat Model (The EBK Model)

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Decision Making Process - EBK Model ( Engel, Blackwell, Kollat Model)

Need Recognition I N T E R N A L S E A R C H Search Environment Influences -culture Social class Family Situation -personal influences

Stimuli -Marketer dominated -- nonmarketer -dominated

Exposure

Attention

M E M O R Y

Evaluation Purchase Consumption Postconsumption

Comprehension
Acceptance Retention

Evaluation
Dissatisfaction
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External search

Decision Making Process -EKB Model ( Engel, Kollat, Blackwell, Model

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Question Bank - Assignment

1. Explain the Decision Making Model. Detail decision making for your Client when he contracts business with your firm 2. Detail one Motivational Theory (Maslow, Herzberg or Theory Z) and give live examples of how your firm could impact employees lives through this theory 3. Describe Classical Conditioning and what are the right stimuli you could build for your Clients 4. If the Reward-Punishment theory works then detail it w.r.t the right rewards you could build for your Clients 5. Explain Culture, Sub culture, Beliefs, Values and Customs with examples specific to your work place: Clients, employers, etc 6. How does Enculturation and Acculturation work if you want to set up your firms business in India and in U.A.E. 7. Describe any one theory in detail of how Attitudes are formed with examples 8. If we were to attempt to change the Attitude Indian consumers have towards Fast Food then how would you go about it 9. If you are trying to promote a new concept with your clients how would you attempt to move them into positive acceptance. Make assumptions
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TEXT BOOKS

Consumer Behavior: 9th Edition Leon Schiffman and Leslie Kanuk Consumer Behavior: 5th / 6th Edition Michael Solomon

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Rajeev Chawla
Consultant-Marketing and General Management Corporate trainer Educationist

Cell: 93205-20203 rajeevchawlas@hotmail.com rajeevchawlas@gmail.com

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Brand Building - Sourcing

Fresh Lettuce comes from Pune, Delhi, Nainital and Ooty Cheese form Dynamix Dairies, Baramati, Maharashtra Buns from Cremica, Phillaur, Punjab and Mrs. Bector and Sons, Khopoli, Maharashtra Sauce from Bector Foods, Phillaur, Punjab and Hindustan Lever Limited-Best Foods Division, Thane Chicken Patties, Vegetable Patties, Pies and Pizza McPuff from Vista Processed Foods, Taloja, Maharashtra Dairy Products from Amrit Food, Ghaziabad, UP Distribution center at Radhakrishna Foodland

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Mrkt 2 gauravdadhich90@gmail.com 8805653470

Mrkt 1 kanchana2290@yahoo.com 9921823169

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