Consumer Behaviour

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Personality

• 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.

• 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. The trait theories can be of two broad categories,
viz., Simple trait theories and general trait theories.
• Simple Trait Theories
• In simple trait theories, a limited number of traits are identified, and
people are categorized and classified on the basis of these traits.

• General Trait Theories


• In general trait theories, a large variety of traits are identified.
The Psychoanalytic Theory of Freud

• Sigmund Freud, the father of psychology, became famous with his


psychoanalytic theory of personality. In fact, the theory is regarded as
the cornerstone of modern psychology. Sigmund based his theory on
certain assumptions which is as follows −
• Unconscious needs or drives lie at the heart of human motivation and
personality.
• The socialization process that takes place within people in a social set up
has a huge impact on individual behavior. Freud explained much of how
the psyche or the mind operates, and proposed that, human psyche is
composed of parts within our awareness and beyond our awareness.
• He said that all behavior within an individual cannot be explained, much lies in the
subconscious.
• Id − According to Freud’s psychoanalytic theory of personality, the id operates
based on the pleasure principle, which stresses on immediate fulfillment of needs.
The id is the personality component made up of unconscious psychic energy which
satisfies basic urges, needs, and desires.
• Ego − Ego is that state of awareness which thinks of you as separate from the
other. It always thinks of the glories of the past and hopes of the future and
focuses on guiltiness. It always thinks of what was and what could be.
• Super Ego − The superego provides guidelines for making judgments. It is the
aspect of personality that holds all our moral standards and ideals that we acquire
from both parents and society.
Neo-Freudian Theory

• 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 −

• Biological and rooted in genetics, and

• Was groomed as a result of early childhood experiences. This group of


researchers who laid emphasis on the process of socialization came to be
known as the Neo. To form a personality, social relationships are very
important.
• Based on this, consumers are classified into three personality types −

• 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

• Traditionally, individuals are considered to be having a single self-image which they


normally exhibit. Such type of consumers are interested in those products and
services which match or satisfy these single selves. However, as the world became
more and more complex, it has become more appropriate to think of consumers as
having multiple selves.
• What is Self-Concept?
• The below are some of the major aspects of Self-concept
• Self-Concept is Organized
• We all have various views about ourselves. We all may think we are kind, calm, patient,
selfish, rude and what not. It doesn’t matter what perception you have about yourself,
but the one perception that facilitates all these insights is organized self concept.
When a person believes in something that matches his self concept he sticks to his
view and does not agree to change the same and even if does, it takes a lot of time.
• Self Concept is Learned
• It is believed that self concept is learned and no person is born with a self concept. It
develops as and when we grow old. Our self concept is built when we meet people
socially and interact with them. We are the ones who shape or alter our self concept
and its quite natural that we may have a self concept different for ourselves as
compared to what people think about us.
• For example − If an individual thinks, he is very generous and helpful, it may not
necessarily be the case with others. Others may see him as a selfish person.
• Self Concept is Dynamic
• Our self concept in life is not constant and it may change with instances that
take place in our lives. When we face different situations and new challenges
in life, our insight towards things may change. We see and behave according
to the things and situations.

• Thus, it is observed that self concept is a continuous development where we


let go things that don’t match our self concept and hold on those things that
we think are helpful in building our favorable perception.

• 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.

• Consumer attitude basically comprises of beliefs towards, feelings


towards and behavioral intentions towards some objects.
• Belief plays a vital role for consumers because, it can be either positive or
negative towards an object. For example, some may say tea is good and relieves
tension, others may say too much of tea is not good for health. Human beliefs
are not accurate and can change according to situations.

• Consumers have certain specific feelings towards some products or brands.


Sometimes these feelings are based on certain beliefs and sometimes they are
not. For example, an individual feels uneasy when he thinks about cheese burst
pizza, because of the tremendous amount of cheese or fat it has.

• Behavioral intentions show the plans of consumers with respect to the products.
This is sometimes a logical result of beliefs or feelings, but not always. For
example, an individual personally might not like a restaurant, but may visit it
because it is the hangout place for his friends.
Functions of Attitudes
• The following are the functions of attitudes

• Adjustment Function − Attitudes helps people to adjust to different situations and


circumstances.
• Ego Defensive Function − Attitudes are formed to protect the ego. We all are
bothered about our self-esteem and image so the product boosting our ego is the
target of such a kind of attitude.
• Value Expression Function − Attitudes usually represent the values the individual
posses. We gain values, though our upbringing and training. Our value system
encourages or discourages us to buy certain products. For example, our value system
allows or disallows us to purchase products such as cigarettes, alcohol, drugs, etc.
• Knowledge Function − Individuals’ continuously seeks knowledge and information.
When an individual gets information about a particular product, he creates and
modifies his attitude towards that product.
Models of Attitude
• The following are the models of attitude
• Tri-component Model − According to tri-component model, attitude consists of the
following three components.
• Cognitive Component − The first component is cognitive component. It consists of an
individual’s knowledge or perception towards few products or services through personal
experience or related information from various sources. This knowledge, usually results in
beliefs, which a consumer has, and specific behavior.
• Affective Component − The second part is the affective component. This consists of a
person’s feelings, sentiments, and emotions for a particular brand or product. They treat
them as the primary criteria for the purpose of evaluation. The state of mind also plays a
major role, like the sadness, happiness, anger, or stress, which also affects the attitude of
a consumer.
• Conative Component − The last component is conative component, which consists of a
person’s intention or likelihood towards a particular product. It usually means the actual
behavior of the person or his intention.
• Attitude Change:
• Once formed, attitudes are enduring and consistent. However, this does
not imply that they cannot be changed.
• Attitudes can be changed in the same manner as they are formed, i.e.
through learning.
• They can be changed by bringing about a change or alteration in any one
or all of the components that make up the attitude, i.e. knowledge, feeling
and behavior. Bringing about, changes in any or all of the tricomponents,
requires immense effort on the part of the marketer, who need to provide
information via media as well as use reference group appeals and opinion
leaders so as to influence modification of attitudes.
Strategies to change attitude
• Attitude change via cognition: Attitudes can be changed by providing
information about the brand, and changing consumer beliefs about
the attributes about a brand. It can also be brought about by changing
the importance that consumers’ attach to the attributes of a product.
• - Attitude change via affect: Attitudes can also be changed by
generating positive feelings and emotions towards a brand. Ambience
of the store, reward schemes, well designed ads with celebrities etc.,
also create positive mood states that impact attitudes.
• - Attitude change via behavior: Consumer attitude can also be changed
by eliciting trial on the part of the consumer and encouraging him to use
the product.
• However, as newer information about product attributes, benefits,
features etc. is provided so as to bring about change in consumer beliefs
and attitudes, consumers tend to experience some level of attitudinal
inconsistency.
• Such feelings of inconsistency lead to uneasiness and tension in the minds
of consumers and as a natural consequence, they attempt to seek
consistency in thoughts, feelings, and actions.
• In fact, they desire a match between the tricomponents, and more so,
want their attitudes to be in consistency with their knowledge.
Consumer Motivation
• Consumer motivation is an internal state that drives people to identify
and buy products or services that fulfill conscious and unconscious
needs or desires. The fulfillment of those needs can then motivate
them to make a repeat purchase or to find different goods and
services to better fulfill those needs.
• Needs are the core of the marketing concept. The study of Motivation refers to all the
processes that drives in a person to perceive a need andWhat are Needs − Every
individual has needs that are required to be fulfilled. Primary needs are food, clothing,
shelter and secondary needs are society, culture etc.

• 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.

• This theory signifies the importance of satisfying the lower level


needs before higher level needs arise. According to this theory,
dissatisfaction motivates the consumer.
• Maslow’s Need Hierarchy Theory
• Physiological Needs − Food, clothing, air, and shelter are the first level needs. They are known as the basic
necessities or primary 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.

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