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Consumer Behaviour
Consumer Behaviour
Consumer Behaviour
• The word “personality” has been derived from the Latin word “persona” which
means a mask worn by an actor while performing a character on the stage.
• Thus personality is taken to mean the characteristic pattern or style of behaviour of
the person revealed from his external appearance.
• The external properties of a person include his dress, speech, bodily actions,
postures, habits and expressions. Thus aperson endowed with good external
properties is considered to possess a good personality and vice versa. But you know
this is not the reality. Mere external properties can not make a personality. And if we
go by this concept how and where would we rate the personality of persons like
Mahatma Gandhi, Lal Bahadur Shastri. George Bernard Shaw and many others
whose external appearance was not highly endowed. These persons are certainly not
favored by nature in external properties.
• Therefore. it was realised that personality included something more than external
properties and the concept of external appearance in personality was relegated
tobackground.
Definition of Personality
• According to Allport (1961) personality is the “dynamic organisation within
the individual of those psycho-physical systems that determine his unique
adjustment to his environment” It means that personality “resides” within
the individual and these systems are woven into an organization.
• Personality is the more or less stable and enduring organisation of a
person’s character, temperament, intellect and physique that determine his
unique adjustment to his environment. (Eysenck, 1952).
• Personality usually refers to the distinctive patterns of behaviour (including
thoughts and emotions) that characterise each individual’s adaptations to
the situations of his life or her life. (Walter Mischel, 1981)
Personality and Self-concept
• To understand a buyer needs and convert them into customers is the main purpose of the
consumer behavior study. To understand the buyer habits and his priorities, it is required to
understand and know the personality of the buyer.
• Personality signifies the inner psychological characteristics that reflect how a person reacts
to his environment. Personality shows the individual choices for various products and
brands. It helps the marketers in deciding when and how to promote the product.
Personality can be categorized on the basis of individual traits, likes, dislikes etc.
• Though personality is static, it can change due to major events such as death, birth or
marriage and can also change gradually with time. By connecting with the personality
characteristics of an individual, a marketer can conveniently formulate marketing strategies.
Theories of Personality
• Trait Theory:
• Traits are the features of an individual or tendency of an individual in a particular manner.
Traits help in defining the behavior of consumers. According to the Trait theorists, an
individual’s personality make-up stems out of the traits that he possesses, and the
identification of traits is important.
• Following are the few of the most common traits −
Outgoing Happy go lucky
Relaxed Self assured
Imaginative Sad
Practical Stable
Serious
• Trait theory is representative of multi-personality theories. Trait
theory is based on certain assumptions, such as traits which are
certainly stable in nature and a limited number of traits are common
to most of the people.
• There were a group of psychologists who believed that social interaction and
resultant relationships formed the basis for the growth and development of
personality. Here, they disagreed with their contemporary, Freud, who
believed that personality was −
• Complaint Personalities − They prefer love and affection and so they move towards them and so
they prefer known brands.
• Aggressive Personalities − They tend to move against others and they show off their need for
power, success etc. which is quite manipulative.
• Detached Personalities − They are not much aware of brands and are more self reliant and
independent.
• Marketers also tend to use Neo-Freudian theories while segmenting markets and positioning their
products.
Self Concept
• Self concept is defined as the way, in which we think, our preferences, our beliefs, our
attitudes, our opinions arranged in a systematic manner and also how we should
behave and react in various roles of life. Self concept is a complex subject as we know
the understanding of someone’s psychology, traits, abilities sometimes are really
difficult. Consumers buy and use products and services and patronize retailers whose
personalities or images relate in some way or other to their own self-images
• Self concept is the composite of ideas, feelings, emotions and attitudes that a
person has about their identity and capabilities.
Consumer Perception
• Consumer perception is defined as a process by which consumers sense a
marketing stimulus, and organize, interpret, and provide meaning to it. The
marketing stimuli may be anything related to the product and/or brand, and any of
the elements of the marketing mix.
• The primary or intrinsic stimuli comprise the product and its components, namely
brand name, label, package, contents, and physical properties.
• The secondary or extrinsic stimuli comprise the form in which the good or service
offering is represented through words, visuals, graphics, and the symbolism, or
through other cues such as price, outlet, salespeople, or marketing communication.
• The perceptual process comprises three components, namely the
perceiver, the target (stimulus), and the situation. The perceptual
mechanism depicts a complex and dynamic interplay of three
processes, namely selection, organization, and interpretation.
Perceptual selection is the process by which people select a particular
stimulus or a small portion of the stimuli to attend to, while screening
out the rest.
Perceptual Selection
• Perceptual selection is the process by which people select a particular
stimulus or a small portion of the stimuli to attend to, while screening
out the rest.
• Perceptual selection or perceptual selectivity refers to a tendency
within a person to select one or a few out of the many stimuli present
in the environment. Selectivity is based on one’s demographic,
sociocultural, and psychographic factors. A person would tend to
select those stimuli that appear attractive and relevant to him.
Selectivity would also be affected by the characteristics of the
stimulus as well as by the situation involved.
• Human beings are simultaneously exposed to various stimuli in their
environments. Due to the fact that various stimuli cannot be treated or
processed at the same time, people become selective in their approach
and choose some stimuli for further processing and disregard the rest.
• The choice of the stimulus would depend on what they feel is relevant
to and/ or appropriate for them. In the field of marketing, stimuli could
include the product, the brand name, the features and attributes, the
packaging, and the advertisement. This is referred to as perceptual
selectivity.
Perceptual Organization
• Perceptual organization is a cognitive process, which is responsible for
organizing the stimuli and the surrounding cues, to develop a ‘whole
picture’, according to one’s physiological, sociocultural, and
psychographic backgrounds, so as to give some meaning to it.
• Perceptual interpretation involves extracting meaning out of the
‘whole picture’. As processes, both perceptual organization and
interpretation are intertwined as both have to do with deriving sense
and assigning meaning to the stimulus to which a person has been
exposed.
• Perceptual organization occurs after the stimulus has been received and selected
for further processing. It is the process of organizing inputs into a definite,
coherent, and interpretable structure. In other words, the various stimuli are
organized and given a form.
• The second sub-process in the perceptual process is referred to as perceptual
organization. After an input has been received and given attention to in the
selection stage, it is organized into a coherent form as conceptual schemata so as
to extract meaning out of it.
• Perceptual organization arranges the stimulus into meaningful, recognizable, and
understandable patterns. When exposed to various stimuli, human beings do not
select them as separate and unrelated identities, but they group them and
perceive them as ‘a unified or meaningful whole’.
Factors that Distort Individual Perception
• A perceiver may make mistakes, and this could lead to misinterpretation of
the stimuli. Such mistakes are referred to as perceptual errors and perceptual
distortions. Perceptual errors occur due to a number of distorting influences.
When perceptions are inaccurate and faulty, and the resulting behavioural
responses are inappropriate and unbalanced, there occurs what is referred to
as a perceptual distortion.
• In perceptual distortion, people interpret a stimulus in a manner that
supports their values, thoughts, and beliefs, and misinterpret what the
marketer actually wants to say. People often distort the stimulus (or the
information) to make it more congruent with existing values and beliefs. This
is known as selective interpretation. Perceptual errors and distortions may
occur due to various reasons.
• Attitudes: The perceiver's attitudes affect perception. For example, suppose Mr. X is
interviewing candidates for a very important position in his organization –a position
that requires negotiating contracts with suppliers, most of whom are male. Mr X may
feel that women are not capable of holding their own in tough negotiations. This
attitude will doubtless affect his perceptions of the female candidates he interviews.
• Moods: Moods can have a strong influence on the way we perceive someone. We
think differently when we are happy than we do when we are depressed. In addition,
we remember information that is consistent with our mood state better than
information that is inconsistent with our mood state. When in a positive mood, we
form more positive impression of others. When in a negative mood, we tend to
evaluate others unfavourably.
• Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong
influence on their perceptions. For example, in an organizational context, a boss who
is insecure perceives a subordinate's efforts to do an outstanding job as a threat to his
or her own position. Personal insecurity can be transferred into the perception that
others are out to "get my job", regardless of the intention of the subordinates.
• Self-Concept: Another factor that can affect social perception is the perceivers' self-concept.
An individual with a positive self-concept tends to notice positive attributes in another
person. In contrast, a negative self-concept can lead a perceiver to pick out negative traits in
another person. Greater understanding of self allows us to have more accurate perceptions
of others.
• Interest: The focus of our attention appears to be influenced by our interests. Because our
individual interests differ considerably, what one person notices in a situation can differ
from what others perceive. For example, the supervisor who has just been reprimanded by
his boss for coming late is more likely to notice his colleagues coming late tomorrow than he
did last week. If you are preoccupied with a personal problem, you may find it hard to be
attentive in class.
• Cognitive Structure: Cognitive structure, an individual's pattern of thinking, also affects
perception. Some people have a tendency to perceive physical traits, such as height, weight,
and appearance, more readily. Others tend to focus more on central traits, or personality
dispositions. Cognitive complexity allows a person to perceive multiple characteristics of
another person rather than attending to just a few traits.
• Expectations: Finally, expectations can distort your perceptions in that you will see what you
expect to see. The research findings of the study conducted by Sheldon S Zalkind and
Timothy W Costello on some specific characteristics of the perceiver reveal.
Consumer Risk Perceptions
• While making a purchase decision and immediately after having made a
purchase, consumers experience a state of uneasiness and tension. In fact,
the purchase process results in a state of anxiety and tension with respect
to the undesirable outcome or the negative consequences that could result
from product purchase and usage. This state is known as ‘perceived risk’.
• Perceived risk is the feeling of uncertainty that arises within an individual
when he fails to predict the consequences of product choice, usage, and
the resultant experience. The concept of perceived risk was introduced by
Raymond A. Bauer in the 1960s. Bauer defined perceived risk in terms of
the uncertainty and consequences associated with a purchase decision and
consumer action, the results of which may or may not always be pleasant.
• Perceived risk is a function of two structural dimensions, namely the
dimension of chance (uncertainty) and negative consequence
(consequences).
• The element of uncertainty arises because there are many product and/or
brand alternatives, each of which is unique, distinct, and heterogeneous. This
leads to a feeling of dissonance as to which of the alternative(s) would be the
right choice in terms of overall value. Uncertainty also relates to a subjective
probability that something unpleasant would occur after product purchase
and usage.
• The element of consequences exists because the consequence of a wrong
choice is not the same for all kinds of products. Consequences also relate to
the probability that if something unpleasant occurs, what would be its
magnitude or level of severity. Bauer also proposed that perceived risk is
subjective in nature and pertains to how a consumer subjectively perceives it
to be.
Consumer Learning, Memory and
Involvement
• Learning influences the development of perceptual sets within an individual.
People have a tendency to perceive things based on their perceptual sets and
beliefs.
• As individuals, we learn from our experiences and store such learning in our
memory bank. The selectivity of stimuli is based on what and how we would like
and/or expect things to be. For example, consumers are attracted to a particular
brand(s) because they have heard or read good reviews and expect it to be good.
A person who has heard something positive about a Dell laptop or who has had
pleasant experiences with it in the past will be attracted towards reading and
watching anything positive about it, so that it conforms to his attitudes and
beliefs.
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.
• 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
• What are Wants − Needs are the necessities, but wants are something more in addition
to the needs. For example, food is a need and type of food is our want.
• What are Goals − Goals are the objectives that have to be fulfilled. Goals are generic
and product specific in nature. Generic goals are general in nature, whereas product
specific goals are the desires of a specific nature.
• Needs and fulfillment are the basis of motivation. Change takes place due to both
internal as well as external factors. Sometimes needs are satisfied and sometimes they
are not due to individual’s personal, social, cultural or financial needs. pursue a definite
course of action to fulfill that need.
• A motivational conflict is a situation in which a consumer is driven to
make a decision based on conflicting goals. Consumers are either
motivated by a positive or a negative reinforcement, which forms the
basis for the individuals motivation to act and make consumer
decisions.
Theories of Motivation
• Maslow’s Theory of Need Hierarchy
• Based on the notion of a universal hierarchy of human needs Dr
Abraham Maslow, a clinical psychologist formulated a widely accepted
theory of human motivation. This identifies five basic levels of human
need which rank in order of importance from lower level needs to
higher level needs.
• Safety or Security Needs − Once the first level needs are satisfied, consumers move to the next level. Physical safety,
security, stability and protection are the security needs.
• Social Needs − After the safety needs are satisfied, consumers expect friendship, belonging, attachment. They need
to maintain themselves in a society and try to be accepted.
• Esteem Needs − Then comes esteem needs such as self-esteem, status, prestige. Individuals here in this stage want
to rise above the general level as compared to others to achieve mental satisfaction.
• Self-Actualization − This is the highest stage of the hierarchy. People here, try to excel in their field and improve
their level of achievement. They are known as self-actualizers.
• Motivational Theory and Marketing Strategies
• Marketers have to understand the motives of their potential customers to enjoy good sales. A buyer
has several motives and each change with various elements. In such cases the marketers can readily
help their customers by changing their marketing strategy so that the conflict is resolved. Following
are the major conflicts that may arise −
• Approach Conflict − This conflict arises when a consumer has two different choices of similar
products or services. He gives equal importance to them, but is unable to choose one over the other.
• Approach Avoidance Conflict − This type of conflict happens when the consumer decides in favor of
a product, but is unhappy with a particular feature of the product and wants to avoid it. Under such
circumstances, the marketer may come up with few modifications in the existing product and make
it suitable for the consumer.
Defense Mechanisms
• Failure to achieve a goal often results in feelings of frustration.
Individuals react to frustration in two ways: “fight” or “flight.”
• They may cope by finding a way around the obstacle that prohibits
goal attainment or by adopting a substitute goal (fight);
• or they may adopt a defense mechanism that enables them to protect
their self-esteem (flight).
• Defense mechanisms include aggression,regression, rationalization,
withdrawal, projection, daydreaming, identification, and repression.
• 1. People who cannot cope with frustration often mentally redefine the
frustrating situation in order to protect their self-image and defend their
self-esteem.
• 2. People sometimes adopt defense mechanisms to protect their egos
from feelings of failure when they do not attain their goals.
• 3. Reaction to the frustration of not being able to reach goal attainment
can take many forms, such as aggression, rationalization, regression,
withdrawal, projection, daydreaming, identification, and repression.
• 4. Marketers often consider the protection of self-esteem by consumers
when selecting advertising appeals. The ads (appeals) often portray a
person resolving a particular frustration through the use of the advertised
product.
Motive Arousal
• Arousal of Motives
• 1. Specific needs of an individual are dormant much of the time.
• a) The arousal of any particular set of needs at a specific point in time
may be caused by
• internal stimuli found in the individual’s physiological condition,
emotional or
• cognitive processes, or by stimuli in the outside environment.
• Physiological Arousal
• 1. Bodily needs, at any one specific moment in time, are rooted in an
individual’s physiological condition at that moment.
• 2. Most physiological cues are involuntary; however, they arouse related
needs that cause uncomfortable tensions until they are satisfied.
• Emotional Arousal
• 1. Sometimes daydreaming results in the arousal or stimulation of latent
needs. People who are bored or who are frustrated in trying to achieve
their goals often engage in daydreaming (autistic thinking), in which they
imagine themselves in all sorts of desirable situations.
• These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that drive them into goal-oriented behavior.
• Cognitive Arousal
• 1. Sometimes random thoughts can lead to a cognitive awareness of needs.
• 2. Advertisements are cues designed to arouse needs.
• a. Without these cues, the needs might remain dormant.
• b. Creative advertisements arouse needs and create a psychological
imbalance in the consumer’s mind.
• c. When people live in a complex and highly varied environment, they
experience many opportunities for need arousal. Conversely, when people
live in a poor or deprived environment, fewer needs are activated.