Consumer Behavior is rapidly growing application-oriented discipline of study. Studies in the
area of technology and digital communication are affecting the Consumer Behavior effectively.
It is a dynamic, complex multi dimensional process and reflects the totality of the consumer with
respect to acquisition, consumption and disposal activities. There is a perpetual interaction
between the environment thinking feelings and behavior. We are consumers and display a lot of
difference in the local and international economic conditions. As we consume on regular basis
food, shelter, clothing, vehicle, fuel, education, jewellery, stationary, entertainment, domestic
help, health care comforts, luxuries, necessities etc. Deeper understanding of the Consumer
Behavior helps us understand the consumer behavior.
Most of the marketers understand the significance of the marketing concept, which means that
they are keen to understanding them and committed to developing quality products services and
selling them at a price which gives the consumers a high value. We have an abundance of the
information of the products and the services as well the internet has emerged as a powerful
marketing tool. The better the marketers know the understanding of the consumers in marketing
better it is for the organizational objectives.
Definition:
“Consumer behavior refers to the actions and decisions processes of people who wants to
purchase goods and services for the personal consumption”
James F. Engel, Roger D. Blackwell and Paul W. Miniard, “Consumer Behavior”(1990)
The consumer purchase behavior is the long process of the consumer decision making. The
studies involve what, when, where and how frequently they will buy?
eg. If consumer wants to buy a computer he has to think what is the product, where and why he
has to buy it, what features the consumer has to look for and what may be the post behavior of
the purchase we also think about the prices , the volume and the manufacturers details for the
ready idea for making this process of consumer buying.
Consumer and Customer – Is there a difference??
Customer:
a
person
who
buys/purchases
goods
or
services
Generally, a consumer refers to individuals who buy for themselves or their family (hence the
term 'consumerism' in economics and politics), whereas a customer can also mean the retailer or
person who buys from the manufacturer, etc. for ultimate sale to others.
The one who buys the product is called a customer and the who uses the product is called a
consumer.
Generally, a consumer refers to individuals who buy for themselves or their family (hence the
term 'consumerism' in economics and politics), whereas a customer can also mean the retailer or
person who buys from the manufacturer, etc.
Buyers and users??
Consumer Buyers and Industrial Buyers Consumer buyers are those who purchase items for
their personal consumption Industrial buyers are those who purchase items on behalf of their
business or organization . Businesses now spend considerable sums trying to learn about what
makes “customers tick”. The questions they try to understand are: • Who buys? • How do they
buy? • When do they buy? • Where do they buy? • Why do they buy?
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Consumer Behavior Notes
Why Consumers Buy customers make purchases in order to satisfy needs. Some of these needs
are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not
required for basic survival and vary depending on the person. It probably makes more sense to
classify needs that are not a necessity as wants or desires. consumer are referring to the actual
buyer, the person spending the money. But is should also be pointed out that the one who does
the buying is not necessarily the user of what is bought and that others may be involved in the
buying decision. What Influences Purchasing There can be Types of Consumer Purchase
Decisions: Minor New Purchase – these purchases represent something new to a consumer but in
the customer’s mind is not a very important purchase in terms of need, money or other reason
(e.g., status within a group). Minor Re-Purchase – these are the most routine of all purchases and
often the consumer returns to purchase the same product without giving much thought to other
product options (i.e., consumer is brand loyalty). Major New Purchase – these purchases are the
most difficult of all purchases because the product being purchased is important to the consumer
but the consumer has little or no previous experience making these decisions. The consumer’s
lack of confidence in making this type of decision often (but not always) requires the consumer
to engage in an extensive decision-making process. ORGANISZATIONAL BUYING
Organization buying as the decision making process by which formal organizations establish the
need for the purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers. -Webster and wind BUYING SITUATIONS: The business
buyers face many decisions in making purchase. Mainly there are three types of buying
situations: Straight Rebuy: The straight rebuy is a buying situation is a situation in which the
purchasing department reorders on a routine basis .The buyer chooses supliers on an “approved
list”. Exchange process involves: - Product / Service exchange - Information Exchange Financial Exchange SYSTEMS BUYING AND SELLING: Many business buyers prefer to buy
a total solution to their problem from one seller called system buying, this practice originated
with government purchases of major weapons and communication systems. One variant of
systems selling is system contracting , where a single supplier provides the buyer with his/her
entire requirement of MRO (maintenance, repair, operating ) supplies. Participants in Buying
process: Initiators: Those who request that something be purchased. Users: Those who will use
the product or service. Influencers: People who influence the the buying decision.
Development of the consumer behavior field:
It is for an important reason that the consumer behavior has been made as a separate marketing
field. The have found out that the consumers generally did not behave like a n economic theory
and the buying habits were more diversified and in fact found many similarities in the
consumption patterns and there were a lot of non predictable buying behavior. It has been
realized that the consumers have not showed their interest in the “me too” type products but in
fact showed interest in the diversified products which meet the specific needs in the dependence
of the personalities and the lifestyles.
The findings have led to marketing segmentation concepts which involve the movement of the
heterogeneous groups into homogeneous groups and further developed the positioning
techniques. They have observed that there can be a shorter product life cycle, increased
environmental concerns, interest in the consumer protection and finally, looking for the
development of computers in this regard and the development of the statistical analysis
We have to be clear on the marketing concept
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Consumer Behavior Notes
Product orientation-an approach to business that centers its activities on continually improving
and refining its products, assuming that customers simply want the best possible quality for their
money.
Production orientation: A production orientation dominated business thought from the
beginning of capitalism to the mid 1950's. Business concerned itself primarily with production,
manufacturing, and efficiency issues. This view point was encapsulated in Says Law which
states Supply creates its own demand (from the French economist Jean-Baptiste Say. To put it
another way, If a product is made, somebody will want to buy it. The reason for the
predominance of this orientation is there was a shortage of manufactured goods (relative to
demand) during this period so goods sold easily.
Selling orientation: A company-centered rather than a client-centered approach to conduct of
business. This orientation tends to ignore what the customer/user really wants and needs.
The main disciplines involved in the study of consumer behavior
Psychology: One "official" definition of consumer behavior is "The study of individuals, groups,
or organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have on the
consumer and society." Although it is not necessary to memorize this definition, it brings up
some useful points:
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Behavior occurs either for the individual, or in the context of a group (e.g., friends
influence what kinds of clothes a person wears) or an organization (people on the job
make decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of products as well as the study of how
they are purchased. Product use is often of great interest to the marketer, because this
may influence how a product is best positioned or how we can encourage increased
consumption. Since many environmental problems result from product disposal (e.g.,
motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at
landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as tangible products.
The impact of consumer behavior on society is also of relevance. For example,
aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have
serious repercussions for the national health and economy.
There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in the
afternoon. By understanding that new products are usually initially adopted by a few
consumers and only spread later, and then only gradually, to the rest of the population,
we learn that (1) companies that introduce new products must be well financed so that
they can stay afloat until their products become a commercial success and (2) it is
important to please initial customers, since they will in turn influence many subsequent
customers’ brand choices.
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Consumer Behavior Notes
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A second application is public policy. In the 1980s, Accutane, a near miracle cure for
acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by
pregnant women. Although physicians were instructed to warn their female patients of
this, a number still became pregnant while taking the drug. To get consumers’ attention,
the Federal Drug Administration (FDA) took the step of requiring that very graphic
pictures of deformed babies be shown on the medicine containers.
Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce the incidence of transmission of diseases
through illegal drug use. The best solution, obviously, would be if we could get illegal
drug users to stop. This, however, was deemed to be infeasible. It was also determined
that the practice of sharing needles was too ingrained in the drug culture to be stopped.
As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that
encouraged the cleaning of needles in bleach before sharing them, a goal that was
believed to be more realistic.
As a final benefit, studying consumer behavior should make us better consumers.
Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry
detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In
practice, however, you often pay a size premium by buying the larger quantity. In other
words, in this case, knowing this fact will sensitize you to the need to check the unit cost
labels to determine if you are really getting a bargain.
There are several units in the market that can be analyzed. Our main thrust in this course is the
consumer. However, we will also need to analyze our own firm’s strengths and weaknesses and
those of competing firms. Suppose, for example, that we make a product aimed at older
consumers, a growing segment. A competing firm that targets babies, a shrinking market, is
likely to consider repositioning toward our market. To assess a competing firm’s potential threat,
we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its
brands) against pressures it faces from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have developed a product that offers
great appeal for consumers, a recession may cut demand dramatically.
Sociology: Sociology is the study of society.[1] It is a social science—a term with which it is
sometimes synonymous—which uses various methods of empirical investigation[2] and critical
analysis[3] to develop and refine a body of knowledge about human social activity, often with the
goal of applying such knowledge to the pursuit of social welfare. Subject matter ranges from the
micro level of agency and interaction to the macro level of systems and social structures.[4]
Sociology is both topically and methodologically a very broad discipline. Its traditional focuses
have included social stratification, social class, social mobility, religion, law, and deviance. As
all spheres of human activity are sculpted by social structure and individual agency, sociology
has gradually expanded its focus to further subjects, such as health, military and penal
institutions, the Internet, and even the role of social activity in the development of scientific
knowledge.
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Consumer Behavior Notes
The range of social scientific methods has also broadly expanded. Social researchers draw upon
a variety of qualitative and quantitative techniques. The linguistic and cultural turns of the midtwentieth century led to increasingly interpretative, hermeneutic, and philosophic approaches to
the analysis of society. Conversely, recent decades have seen the rise of new analytically,
mathematically and computationally rigorous techniques, such as agent-based modelling and
social network analysis.[5][6]
Social psychology:
Cultural anthropology: Anthropology is the study of humanity. It has origins in the natural
sciences, the humanities, and the social sciences.[1] The term "anthropology", pronounced
/ænθrɵˈpɒlədʒi/, is from the Greek anthrōpos (ἄνθρωπος), "human", and -logia (-λογία),
"discourse" or "study", and was first used in 1501 by German philosopher Magnus Hundt.[2]
Anthropology's basic concerns are "What defines Homo sapiens?", "Who are the ancestors of
modern Homo sapiens?""What are humans' physical traits?", "How do humans behave?", "Why
are there variations and differences among different groups of humans?", "How has the
evolutionary past of Homo sapiens influenced its social organization and culture?" and so forth.
In the United States, contemporary anthropology is typically divided into four sub-fields: cultural
anthropology (also called "social anthropology"), archaeology, linguistic anthropology, and
physical (or biological) anthropology.[3] The four-field approach to anthropology is reflected in
many undergraduate textbooks[4] as well as anthropology programs (e.g. Michigan, Berkeley,
Penn, etc.). At universities in the United Kingdom, and much of Europe, these "sub-fields" are
frequently housed in separate departments and are seen as distinct disciplines.[5]
The social and cultural sub-field has been heavily influenced by structuralist and post-modern
theories, as well as a shift toward the analysis of modern societies (an arena more typically in the
remit of sociologists). During the 1970s and 1980s there was an epistemological shift away from
the positivist traditions that had largely informed the discipline.[6] During this shift, enduring
questions about the nature and production of knowledge came to occupy a central place in
cultural and social anthropology. In contrast, archaeology, biological anthropology, and
linguistic anthropology remained largely positivist. Due to this difference in epistemology,
anthropology as a discipline has lacked cohesion over the last several decades. This has even led
to departments diverging, for example in the 1998–9 academic year at Stanford University,
where the "scientists" and "non-scientists" divided into two departments: anthropological
sciences and cultural & social anthropology;[7] these departments later reunified in the 2008–9
academic year.
Economics: Economics is the social science that analyzes the production, distribution, and
consumption of goods and services. The term economics comes from the Ancient Greek
οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos,
"house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)".[1] Current
economic models emerged from the broader field of political economy in the late 19th century. A
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Consumer Behavior Notes
primary stimulus for the development of modern economics was the desire to use an empirical
approach more akin to the physical sciences.[2]
Economics aims to explain how economies work and how economic agents interact. Economic
analysis is applied throughout society, in business, finance and government, but also in crime,[3]
education,[4] the family, health, law, politics, religion,[5] social institutions, war,[6] and science.[7]
The expanding domain of economics in the social sciences has been described as economic
imperialism.[8]
Common distinctions are drawn between various dimensions of economics. The primary
textbook distinction is between microeconomics, which examines the behavior of basic elements
in the economy, including individual markets and agents (such as consumers and firms, buyers
and sellers), and macroeconomics, which addresses issues affecting an entire economy, including
unemployment, inflation, economic growth, and monetary and fiscal policy. Other distinctions
include: between positive economics (describing "what is") and normative economics
(advocating "what ought to be"); between economic theory and applied economics; between
mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium
nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social
structure nexus");[9] and between rational and behavioral economics.
Applications in marketing of the consumer behavior
Analyzing the market opportunity: There are consumer needs and the wants. There is a trend of
the dual income which has created a dual income in the house holds increasing the consumer
behavior patterns to have more buying power. There is an increase in the consumption of the
leisure and convenience products such as washing machine, mixer, grinder, vacuum cleaner, and
child care centers,
Selecting the target market: The basic idea of the pricing and selecting the target market the set
of people in the market as a whole in which it may be a categorization for looking and selling
products or the services.
Marketing Mix:
Elements of the marketing mix are often referred to as 'the four Ps':

Product - A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry & the hotel industry or codes-based products like
cellphone load and credits. Typical examples of a mass produced tangible object are the
motor car and the disposable razor. A less obvious but ubiquitous mass produced service
is a computer operating system. Packaging also needs to be taken into consideration.
Every product is subject to a life-cycle including a growth phase followed by an eventual
period of decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of the
strategy to differentiate from its competitors.

Price – The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product identity
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Consumer Behavior Notes


and the customer's perceived value of the product. The business may increase or decrease
the price of product if other stores have the same product.
Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet. Place is not exactly a physical store where it is available Place is
nothing but how the product takes place or create image in the mind of customers. It
depends upon the perception of customers.
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses
the four principal elements together, which is common in film promotion. Advertising
covers any communication that is paid for, from cinema commercials, radio and Internet
adverts through print media and billboards. Public relations are where the communication
is not directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied customers or
people specifically engaged to create word of mouth momentum. Sales staff often plays
an important role in word of mouth and Public Relations (see Product above).
Any organization, before introducing its products or services into the market; conducts a market
survey. The sequence of all 'P's as above is very much important in every stage of product life
cycle Introduction, Growth, Maturity and Decline.
There is no correct sequence.
Extended Marketing Mix (3 Ps)
Now a days three more Ps have been added to the marketing mix namely People, Process and
Physical Evidence. This marketing mix is known as Extended Marketing Mix.

People: All people involved with consumption of a service are important. For example
workers, management, consumers etc. It also defines the market segmentation, mainly
demographic segmentation. It addresses particular class of people for whom the product
or service is made available.
 Process: Procedure, mechanism and flow of activities by which services are used. Also
the 'Procedure' how the product will reach to end user, after starting its journey from
manufacturer.
 Physical Evidence: The environment in which the service or product is delivered,
tangible are the one which helps to communicate and intangible is the knowledge of the
people around us.
Social or a non-profit marketing: there can be marketing for the social, governmental nonprofit
organization. Like family planning, AIDS, crime against women, safe driving,
UNICEF(Greeting cards) Redcross, CRY. We have to motivate people to understand them too at
times.
Consumer research
The purpose of the marketing research is to have a little layout of the needs and wants of the
requirements to develop the products and services. This is mainly to explore the consumer
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Consumer Behavior Notes
behavior. This has been done in order to predict the reaction of the consumers for the marketing
promotional messages when given to the consumers by the marketers.
Consumer behavior needs are being realized as to identify the felt and the latent demands to be
fulfilled in an extraordinary sincere way aongwith the fact that how are they perceiving the
brands, products and the stores what is their idea about the product or services promotional
campaign and their promotional decisions.
Positivism •Rationality; consumers make decisions after weighing alternatives •The causes and
effects of behavior can be identified •Individuals are problem solvers •A single reality exists
•Events can be objectively measured Interpretivism •No single, objective truth •Reality is
subjective •Cause and effect cannot be isolated •Each consumption experience is unique
•Researcher/respondent interactions affect research findings
Experimentalism: To understand the customer. To use the qualitative methods of research.
Interactions with the researchers.
Data collection method:
N-DEPTH TECHNIQUES
In a survey, usually general questions are asked to know what customers or subjects do and
think. But it one wants to know ‘why they feel that way’, one has to conduct an in-depth
research. In survey, answers may depend on the mood of the respondent. As such, the survey
shows how one feels at one particular time. But in in-depth research, long and probing interviews
are taken to find out customers satisfaction and loyalty, usage, awareness and brand recognition
etc. as discussed below:
FOCUS GROUP
A group is formed of 8 to 12 persons. They are selected keeping in view the targeted market. The
group members are asked about their attitude towards a concept, product, service, packing or
advertisement. Questions are asked in an interactive-group-setting where members are free to
talk to each other. A moderator guides through the discussion. Through one-way mirror, the
client or its representative observes the discussion, interpret facial expression and body language.
There are some draw-backs. There is lesser control of the moderator or researcher and it lead to
irrelevant discussions. Moreoveer, individual members consciously or unconsciously conform to
what they perceive to be the consensus of the group, a situation called “Group-think”.
The technology has give rise to “Modern Group” where group-members participate “on-line”
and can share financial and operating data, pictures, voices and drawings etc.
PANELS
These are more or less like Focus Group. But Focus groups are formed for one-time discussion
to decide about a particular issue. On the contrary, panels are of long-term nature for meeting
frequently to resolve an issue. These can be current customers or potential customers; can be
static or dynamic (members coming and going).
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Consumer Behavior Notes
Another difference is that penal are selected by the organizers through certain criteria like
education, exposure and interest. Of course, there are exception like Microsoft Panel for
Research and Evaluation of their software which are formed through open invitation.
IN-DEPTH INTERVIEWS
In-depth interviews, also called as one-to-one interviews, are expensive in term of time and
money but are good for exploring several factors. Problems identified in an interview may be a
symptom of a serious problem.
The interviews may be conducted face to face or through telephone or these could be computer
assisted interviews. Nowadays, television interviews have become more common.
But interviews are fraught with bias from three sources, the interviewer, the interviewee and the
interview setting. The interviewer may misinterpret the response or distort it while writing down.
He may unintentionally encourage certain responses though gestures and facial impressions. The
interviewee may not give his or her true opinion or avoid difficult questions. The setting may be
good or bad creating comfort or discomfort. It may be open or in presence of some colleagues or
senior or level of trust may be inadequate.
In order to minimize bias, the interviewer should have knowledge, skill and confidence. Rapport
and trust should be established in the interview.
PROJECTIVE METHODS
A psychological test in which a subject's responses to ambiguous or unstructured standard
stimuli, such as a series of cartoons, abstract patterns, or incomplete sentences, are analyzed in
order to determine underlying personality traits and feelings. This entails indirect question which
enables the respondent to “project beliefs and feelings onto a third party". The respondents are
expected to interpret the situation through their own experience, attitude and personality and
express hidden opinion and emotions.
Of many techniques, word association, sentence completing and ink-blot tests are very common.
In these techniques, both verbal and non-verbal (hesitation, time-lag and facial expression) are
noted and interpreted.
Such tests are useful for finding out consumer preference, buying attitude and behavior.
Eventually, these are used for product development or finding out reason for failure of an
apparently efficient product. Examples on the Projective techniques
1. Thematic Appreciation Techniques
2. Word Association Test
3. Sentence completion test
4. Third person technique
5. Laddering
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Consumer Behavior Notes
Zanlman Metaphor Elicitation Technique(ZMET):
The Zaltman Metaphor Elicitation Technique (ZMET) is a patented (#5,436,830) interview
process that blends the strengths of multiple disciplines. ZMET goes beyond what people say…
to reveal what they mean.
While most other research techniques record surface-level ideas, ZMET leverages the power of
figurative language to find the deeper “whys” that underlie consumers’ interpretations, stories,
choices and behaviors.

Metaphors can reveal the thoughts and feelings that occur below awareness in the
unconscious mind.
 People use 5-6 metaphors per minute of ordinary conversation, and each metaphor can
reveal a hidden orientation or meaning.
 Humans learn through a metaphoric process of comparing new experiences to prior ones.
 The ZMET Interview
 ZMET is a one-on-one interview process that invites participants to find images that
represent their thoughts and feelings about a given topic. This is done well in advance of
their interview. This process of thinking about and searching for images brings hidden,
unconscious thoughts to the surface.
 During the two-hour ZMET interview, OZA uses storytelling and other unbiased probing
techniques to explore peoples’ thoughts and feelings associated with their images. This
unique, non-directive process elicits the metaphors consumers naturally use to frame their
thinking, emotions, attitudes and deep needs. At the end of the interview, consumers
direct the creation of a digital collage, which is a detailed and meaningful depiction of
how they view the topic, whether that topic is a brand, product or general experience.
 Metaphor Analysis and Mind Mapping
 Deep insight comes from rigorous analysis. ZMET interviews are analyzed in multiple
ways to generate two complementary sets of insights.
 Understanding why consumers use some metaphors and not others sheds light on how
they understand a topic. OZA analyzes images and non-literal, metaphoric language to
identify the orienting meanings we call “deep metaphors” that consumers use to structure
and frame the topic. Deep metaphors, in turn, shape the consumer decision-making
process.
 detailed reading of each transcript identifies the core constructs, or thoughts and feelings
people have, and the important associations among them. The resulting “mind map” can
show surprising reasons why consumers believe and behave the way they do – and
provides a strategic playing field for client decision-making.
Quantitative research design
Data collection methods
1. Observation
2. Experiment
3. Survey
1. Personal interview
2. Mail survey 3. Telephone survey 4. Data collection
instruments
Collection of primary data
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Consumer Behavior Notes
In primary data collection, you collect the data yourself using methods such as interviews and
questionnaires. The key point here is that the data you collect is unique to you and your research
and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods include:
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questionnaires
interviews
focus group interviews
observation
case-studies
diaries
critical incidents
portfolios.
Market segmentation and positioning:
Market segmentation is a concept in economics and marketing. A market segment is a sub-set
of a market made up of people or organizations with one or more characteristics that cause them
to demand similar product and/or services based on qualities of those products such as price or
function. A true market segment meets all of the following criteria: it is distinct from other
segments (different segments have different needs), it is homogeneous within the segment
(exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a
market intervention. The term is also used when consumers with identical product and/or service
needs are divided up into groups so they can be charged different amounts. These can broadly be
viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into
smaller groups.
Examples:
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Gender
Price
Interests
While there may be theoretically 'ideal' market segments, in reality every organization engaged
in a market will develop different ways of imagining market segments, and create Product
differentiation strategies to exploit these segments. The market segmentation and corresponding
product differentiation strategy can give a firm a temporary commercial advantage.
"Positive" market segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants
or needs that a company divides the market into distinct groups who have distinct needs, wants,
behavior or who might want different products & services. Broadly, markets can be divided
according to a number of general criteria, such as by industry or public versus private although
industrial market segmentation is quite different from consumer market segmentation, both have
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Consumer Behavior Notes
similar objectives. All of these methods of segmentation are merely proxies for true segments,
which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be performed on a product specific basis, to provide a
close match between specific products and individuals. However, a number of generic market
segment systems also exist, e.g. the system provides a broad segmentation of the population of
the United States based on the statistical analysis of household and geodemographic data.
The process of segmentation is distinct from positioning (designing an appropriate marketing
mix for each segment). The overall intent is to identify groups of similar customers and potential
customers; to prioritize the groups to address; to understand their behavior; and to respond with
appropriate marketing strategies that satisfy the different preferences of each chosen segment.
Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct
segments can have different industry structures and thus have higher or lower attractiveness .
With the right segmentation, the right lists can be purchased, advertising results can be improved
and customer satisfaction can be increased leading to better reputation.
Positioning
Once a market segment has been identified (via segmentation), and targeted (in which the
viability of servicing the market intended), the segment is then subject to positioning. Positioning
involves ascertaining how a product or a company is perceived in the minds of consumers.
This part of the segmentation process consists of drawing up a perceptual map, which highlights
rival goods within one's industry according to perceived quality and price. After the perceptual
map has been devised, a firm would consider the marketing communications mix best suited to
the product in question.
Using Segmentation in Customer Retention
Segmentation is commonly used by organizations to improve their customer retention programs
and help ensure that they are:


Focused on retaining their most profitable customers
Employing those tactics most likely to retain these customers
The basic approach to retention-based segmentation is that a company tags each of its active
customers with 3 values:
Tag #1: Is this customer at high risk of canceling the company's service? One of the most
common indicators of high-risk customers is a drop off in usage of the company's service. For
example, in the credit card industry this could be signaled through a customer's decline in
spending on his card.
12
Consumer Behavior Notes
Tag #2: Is this customer worth retaining? This determination boils down to whether the postretention profit generated from the customer is predicted to be greater than the cost incurred to
retain the customer. Managing Customers as Investments. [1] [2]
Tag #3: What retention tactics should be used to retain this customer? For customers who are
deemed “save-worthy”, it’s essential for the company to know which save tactics are most likely
to be successful. Tactics commonly used range from providing “special” customer discounts to
sending customers communications that reinforce the value proposition of the given service.
Process for tagging customers
The basic approach to tagging customers is to utilize historical retention data to make predictions
about active customers regarding:



Whether they are at high risk of canceling their service
Whether they are profitable to retain
What retention tactics are likely to be most effective
The idea is to match up active customers with customers from historic retention data who share
similar attributes. Using the theory that “birds of a feather flock together”, the approach is based
on the assumption that active customers will have similar retention outcomes as those of their
comparable predecessor.
Price Discrimination
Where a monopoly exists, the price of a product is likely to be higher than in a competitive
market and the quantity sold less, generating monopoly profits for the seller. These profits can be
increased further if the market can be segmented with different prices charged to different
segments charging higher prices to those segments willing and able to pay more and charging
less to those whose demand is price elastic. The price discriminator might need to create rate
fences that will prevent members of a higher price segment from purchasing at the prices
available to members of a lower price segment. This behavior is rational on the part of the
monopolist, but is often seen by competition authorities as an abuse of a monopoly position,
whether or not the monopoly itself is sanctioned. Examples of this exist in the transport industry
(a plane or train journey to a particular destination at a particular time is a practical monopoly)
where business class customers who can afford to pay may be charged prices many times higher
than economy class customers for essentially the same service.
Segmentation :
Geographic segmentation
Demographic segmentation
Psychographic segmentation
From Wikipedia, the free encyclopedia
In marketing, positioning has come to mean the process by which marketers try to create an
image or identity in the minds of their target market for its product, brand, or organization.
13
Consumer Behavior Notes
Re-positioning involves changing the identity of a product, relative to the identity of competing
products, in the collective minds of the target market.
De-positioning involves attempting to change the identity of competing products, relative to the
identity of your own product, in the collective minds of the target market.
The original work on Positioning was consumer marketing oriented, and was not as much
focused on the question relative to competitive products as much as it was focused on cutting
through the ambient "noise" and establishing a moment of real contact with the intended
recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say
something so shocking (it was by the standards of the day) that it cleared space in your brain and
made you forget all about who was #1, and not to make some philosophical point about being
"hungry" for business.
The growth of high-tech marketing may have had much to do with the shift in definition towards
competitive positioning. An important component of hi-tech marketing in the age of the world
wide web is positioning in major search engines such as Google, Yahoo and Bing, which can be
accomplished through Search Engine Optimization , also known as SEO. This is an especially
important component when attempting to improve competitive positioning among a younger
demographic, which tends to be web oriented in their shopping and purchasing habits as a result
of being highly connected and involved in social media in general.
Definitions
Although there are different definitions of Positioning, probably the most common is: identifying
a market niche for a brand, product or service utilizing traditional marketing placement strategies
(i.e. price, promotion, distribution, packaging, and competition).
Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in
their bestseller book "Positioning - The Battle for Your Mind."
This differs slightly from the context in which the term was first published in 1969 by Jack Trout
in the paper "Positioning" is a game people play in today’s me-too market place" in the
publication Industrial Marketing, in which the case is made that the typical consumer is
overwhelmed with unwanted advertising, and has a natural tendency to discard all information
that does not immediately find a comfortable (and empty) slot in the consumers mind. It was
then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in
which they define Positioning as "an organized system for finding a window in the mind. It is
based on the concept that communication can only take place at the right time and under the right
circumstances".
What most will agree on is that Positioning is something (perception) that happens in the minds
of the target market. It is the aggregate perception the market has of a particular company,
product or service in relation to their perceptions of the competitors in the same category. It will
happen whether or not a company's management is proactive, reactive or passive about the ongoing process of evolving a position. But a company can positively influence the perceptions
through enlightened strategic actions.
14
Consumer Behavior Notes
Product positioning process
Generally, the product positioning process involves:
1. Defining the market in which the product or brand will compete (who the relevant buyers
are)
2. Identifying the attributes (also called dimensions) that define the product 'space'
3. Collecting information from a sample of customers about their perceptions of each
product on the relevant attributes
4. Determine each product's share of mind
5. Determine each product's current location in the product space
6. Determine the target market's preferred combination of attributes (referred to as an ideal
vector)
7. Examine the fit between:
o The position of your product
o The position of the ideal vector
8. Position.
The process is similar for positioning your company's services. Services, however, don't have the
physical attributes of products - that is, we can't feel them or touch them or show nice product
pictures. So you need to ask first your customers and then yourself, what value do clients get
from my services? How are they better off from doing business with me? Also ask: is there a
characteristic that makes my services different?
Write out the value customers derive and the attributes your services offer to create the first draft
of your positioning. Test it on people who don't really know what you do or what you sell, watch
their facial expressions and listen for their response. When they want to know more because
you've piqued their interest and started a conversation, you'll know you're on the right track.
Positioning concepts
More generally, there are three types of positioning concepts:
1. Functional positions
o Solve problems
o Provide benefits to customers
o Get favorable perception by investors (stock profile) and lenders
2. Symbolic positions
o Self-image enhancement
o Ego identification
o Belongingness and social meaningfulness
o Affective fulfillment
3. Experiential positions
o Provide sensory stimulation
15
Consumer Behavior Notes
o
Provide cognitive stimulation
Measuring the positioning
Positioning is facilitated by a graphical technique called perceptual mapping, various survey
techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint
analysis, and logit analysis.
Repositioning a company
In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather
than just a product line or brand. Take, for example, when Goldman Sachs and Morgan Stanley
suddenly shifted from investment to commercial banks. The expectations of investors,
employees, clients and regulators all need to shift, and each company will need to influence how
these perceptions change. Doing so involves repositioning the entire firm.
This is especially true of small and medium-sized firms, many of which often lack strong brands
for individual product lines. In a prolonged recession, business approaches that were effective
during healthy economies often become ineffective and it becomes necessary to change a firm's
positioning. Upscale restaurants, for example, which previously flourished on expense account
dinners and corporate events, may for the first time need to stress value as a sale tool.
Repositioning a company involves more than a marketing challenge. It involves making hard
decisions about how a market is shifting and how a firm's competitors will react. Often these
decisions must be made without the benefit of sufficient information, simply because the
definition of "volatility" is that change becomes difficult or impossible to predict
VALS:
The acronym VALS, (for "Values, Attitudes and Lifestyles") is a psychographic segmentation. It
was developed in 1970s and inaugurated in 1978 by Arnold Mitchell at SRI International. VALS
places U.S. adult consumers into one of eight segments based on their responses to the VALS
questionnaire. The main dimensions of the segmentation framework are primary motivation (the
horizontal dimension) and resources (the vertical dimension). The VALS approach is derived
from a theoretical base in Maslow's work (1954). It has since been reworked to enhance its
ability to predict consumer behavior. Segmentation research based on VALS is a product of SRI
Consulting Business Intelligence.
According to the VALS Framework, groups of people are arranged in a rectangle and are based
on two dimensions. The vertical dimension segments people based on the degree to which they
are innovative and have resources such as income, education, self-confidence, intelligence,
leadership skills, and energy. The horizontal dimension represents primary motivations and
includes three distinct types:
Consumers driven by knowledge and principles are motivated primary by ideals. These
consumers include groups called Thinkers and Believers. Consumers driven by demonstrating
success to their peers are motivated primarily by achievement. These consumers include groups
16
Consumer Behavior Notes
referred to as Achievers and Strivers. Consumers driven by a desire for social or physical
activity, variety, and risk taking are motivated primarily by self-expression. These consumers
include the groups known as Experiencers and Makers. At the top of the rectangle are the
Innovators, who have such high resources that they could have any of the three primary
motivations. At the bottom of the rectangle are the Survivors, who live complacently and within
their means without a strong primary motivation of the types listed above. The VALS
Framework gives more details about each of the eight groups.
VALS Framework and Segment








Innovator. These consumers are on the leading edge of change, have the highest
incomes, and such high self-esteem and abundant resources that they can indulge in any
or all self-orientations. They are located above the rectangle. Image is important to them
as an expression of taste, independence, and character. Their consumer choices are
directed toward the "finer things in life."
Thinkers. These consumers are the high-resource group of those who are motivated by
ideals. They are mature, responsible, well-educated professionals. Their leisure activities
center on their homes, but they are well informed about what goes on in the world and are
open to new ideas and social change. They have high incomes but are practical
consumers and rational decision makers.
Believers. These consumers are the low-resource group of those who are motivated by
ideals. They are conservative and predictable consumers who favor American products
and established brands. Their lives are centered on family, church, community, and the
nation. They have modest incomes.
Achievers. These consumers are the high-resource group of those who are motivated by
achievement. They are successful work-oriented people who get their satisfaction from
their jobs and families. They are politically conservative and respect authority and the
status quo. They favor established products and services that show off their success to
their peers.
Strivers. These consumers are the low-resource group of those who are motivated by
achievements. They have values very similar to achievers but have fewer economic,
social, and psychological resources. Style is extremely important to them as they strive to
emulate people they admire.
Experiencers. These consumers are the high-resource group of those who are motivated
by self-expression. They are the youngest of all the segments, with a median age of 25.
They have a lot of energy, which they pour to physical exercise and social activities.
They are avid consumers, spending heavily on clothing, fast-foods, music, and other
youthful favorites, with particular emphasis on new products and services.
Makers. These consumers are the low-resource group of those who are motivated by selfexpression. They are practical people who value self-sufficiency. They are focused on the
familiar-family, work, and physical recreation-and have little interest in the broader
world. As consumers, they appreciate practical and functional products.
Survivors. These consumers have the lowest incomes. They have too few resources to be
included in any consumer self-orientation and are thus located below the rectangle. They
are the oldest of all the segments, with a median age of 61. Within their limited means,
they tend to be brand-loyal consumers.
17
Consumer Behavior Notes
Undifferentiated marketing: Undifferentiated marketing is another term for mass marketing. It
is through this marketing practice that a company will use whatever vehicles necessary to spread
it's marketing message. Through this practice segment markets are ignored and whole markets
are advertised and marketed
Differentiated marketing : Sales growth strategy in which several market niches or population
segments are targeted with different products for each niche or segment. See also concentrated
marketing
and
undifferentiated
marketing.
Concentrated marketing Growth strategy in which resources of a firm are focused on a welldefined market niche or population segment. See also differentiated marketing and
undifferentiated
marketing.
Positioning has come to mean the process by which marketers try to create an image or identity
in the minds of their target market for its product, brand, or organization.
Re-positioning involves changing the identity of a product, relative to the identity of competing
products, in the collective minds of the target market.
De-positioning involves attempting to change the identity of competing products, relative to the
identity of your own product, in the collective minds of the target market.
The original work on Positioning was consumer marketing oriented, and was not as much
focused on the question relative to competitive products as much as it was focused on cutting
through the ambient "noise" and establishing a moment of real contact with the intended
recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say
something so shocking (it was by the standards of the day) that it cleared space in your brain and
made you forget all about who was #1, and not to make some philosophical point about being
"hungry" for business.
The growth of high-tech marketing may have had much to do with the shift in definition towards
competitive positioning. An important component of hi-tech marketing in the age of the world
wide web is positioning in major search engines such as Google, Yahoo and Bing, which can be
accomplished through Search Engine Optimization , also known as SEO. This is an especially
important component when attempting to improve competitive positioning among a younger
demographic, which tends to be web oriented in their shopping and purchasing habits as a result
of being highly connected and involved in social media in general.
By Corporate identity: In marketing, a corporate identity is the "persona" of a corporation
which is designed to accord with and facilitate the attainment of business objectives. It is usually
visibly manifested by way of branding and the use of trademarks.[1]
Corporate identity comes into being when there is a common ownership of an organizational
philosophy that is manifest in a distinct corporate culture — the corporate personality. At its
most profound, the public feel that they have ownership of the philosophy.[2] Often referred to as
organizational identity, corporate identity helps organizations to answer questions like “who are
18
Consumer Behavior Notes
we?” and “where are we going?” Corporate identity also allows consumers to denote their sense
of belonging with particular human aggregates or groups.[3]
In general, this amounts to a corporate title, logo (logotype and/or logogram), and supporting
devices commonly assembled within a set of guidelines. These guidelines govern how the
identity is applied and confirm approved colour palettes, typefaces, page layouts and other such
methods of maintaining visual continuity and brand recognition across all physical
manifestations of the brand. These guidelines are usually formulated into a package of tools
called corporate identity manuals.
Many companies, such as McDonald's and Electronic Arts, have their own identity that runs
through all of their products and merchandise. The trademark "M" logo and the yellow and red
appears consistently throughout the McDonald's packaging and advertisements. Many companies
pay large amounts of money for the research, design and execution involved in creating an
identity that is extremely distinguishable and appealing to the company's target audience
By Brand endorsements: The motif behind total branding may be decocted as an attempt to
amalgamate diverse activities to win customer preference. Apropos to this context, the topic
“Impact of celebrity endorsement on overall brand”, is a significant one. The crescendo of
celebrities endorsing brands has been steadily increasing over the past years. Marketers overtly
acknowledge the power of celebrities in influencing consumer-purchasing decisions. It is a
ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a
product that it may have lacked otherwise. But everything is not hunky-dory; celebrities are after
all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a
brand, he or she can also exacerbate the image of a brand.
By Product Attributes / Benefits A consumer is the ultimate user of a product or service. The
overall consumer market consists of all buyers of goods and services for personal or family use,
more than 270 million people (including children) spending trillions of dollars in the United
States as of the late 1990s.
Consumer behavior essentially refers to how and why people make the purchase decisions they
do. Marketers strive to understand this behavior so they can better formulate appropriate
marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of
goods available for purchase, but consumers tend to attribute this volume to the industrial world's
massive production capacity. Rather, the giant known as the marketing profession is responsible
for the variety of goods on the market. The science of evaluating and influencing consumer
behavior is foremost in determining which marketing efforts will be used and when.
To understand consumer behavior, experts examine purchase decision processes, especially any
particular triggers that compel consumers to buy a certain product. For example, one study
revealed that the average shopper took less than 21 minutes to purchase groceries and covered
only 23 percent of the store, giving marketers a very limited amount of time to influence
consumers. And 59 percent of all supermarket purchases were unplanned. Marketers spend a
great deal of time and money discovering what compels consumers to make such on-the-spot
purchases. Market researchers obtain some of the best information through in-store research, and
will often launch new products only in select small venues where they expect a reasonable test of
19
Consumer Behavior Notes
the product's success can be executed. In this manner, they can determine whether a product's
success is likely before investing excessive company resources to introduce that product
nationally or even internationally.
Motivation process:
: Motivation is what stimulates all human behavior. The process of motivation is initiated by the
tension an unsatisfied want creates. An individual makes all possible efforts to reduce that
tension. The needs or motives which are at the root of the motivation process are of different
types. Physiological needs or primary needs include the need for air, water, food, clothing,
shelter and sex, while psychological or secondary needs include the need for affection, status,
security,
etc.
Needs could be positive, negative, utilitarian or hedonic, conscious or unconscious, and
accordingly goals are formulated. A person has many goals and these goals are never ending and
a failure to satisfy them sometimes leads to frustration. A person can deal with this by targeting
substitute or related goals or by building a defense mechanism such as aggression,
rationalization, regression and withdrawal.
It is very important for the marketers to know the motives influencing the consumer as they
initiate and direct all human behavior (including consumer behavior). Many psychologists such
as William McGuire and Henry Murray have tried to list human motives; the motives listed by
them are relevant to a marketer in studying consumer behavior as well. While McGuire used a
four point model to explain marketers that a consumer is affected by a combination of needs and
not a single need, Murray tried to list 27 motives and stated that people have a similar set of
needs,
however
they
prioritize
them
differently.
Theories of motivation also help marketers in understanding how consumers' consumption is
influenced by their needs. Abraham Maslow tried to arrange such significant needs into a
hierarchy of five levels, depending on the relative importance of the needs to a person. The five
levels of needs given by him are 1) physiological needs, 2) safety needs, 3) social needs, 4)
egoistic or self esteem needs and finally 5) self actualization needs. The trio of needs (another
theory of motivation) deal with three kinds of needs viz., need for power, need for affiliation and
need for achievement. These needs play an important role in influencing consumer behavior.
Motivational conflict is a concept which deals with the conflicting motives of the customers.
Here the marketer tries to project the product as a solution to such conflicts.
With motivation being such a major influence on consumption pattern of the customer, there is a
strong need to study it as part of marketing research. Qualitative techniques of observation, focus
groups and in-depth interview and analysis are used to understand the latent motives of a
consumer. The level of involvement (how interested the consumer was about a product)
determines the degree of motivation a consumer had to buy that product. The source of
stimulation and the particular situation the consumer is in when he or she comes into contact
with
the
product
also
determine
the
level
of
involvement.
It could vary in degree, i.e. the customer's involvement could be at the basic stage (it could be
passive or low); on the other hand involvement could be active or high. The marketer has to
understand how interested his consumer is and accordingly formulate strategies and advertising.
20
Consumer Behavior Notes
To conclude, the marketer who understands the various needs that motivate a consumer in
purchasing a product or service and is able to design and showcase his products accordingly will
be
successful.
Big marketers, at times, may also employ a full market coverage strategy, which may further be
differentiated (different marketing mix for different products) or undifferentiated (single
marketing mix for all products). Sometimes marketers adopt too many micro segments, which
later become redundant. In such a case, all segments are clubbed together with a single
marketing mix (counter segmentation).
Motivational conflict: Motivational conflict is a concept which deals with the conflicting
motives of the customers. Here the marketer tries to project the product as a solution to such
conflicts.
With motivation being such a major influence on consumption pattern of the customer, there is a
strong need to study it as part of marketing research. Qualitative techniques of observation, focus
groups and in-depth interview and analysis are used to understand the latent motives of a
consumer. The level of involvement (how interested the consumer was about a product)
determines the degree of motivation a consumer had to buy that product. The source of
stimulation and the particular situation the consumer is in when he or she comes into contact
with
the
product
also
determine
the
level
of
involvement.
It could vary in degree, i.e. the customer's involvement could be at the basic stage (it could be
passive or low); on the other hand involvement could be active or high. The marketer has to
understand how interested his consumer is and accordingly formulate strategies and advertising.
To conclude, the marketer who understands the various needs that motivate a consumer in
purchasing a product or service and is able to design and showcase his products accordingly will
be
successful.
Big marketers, at times, may also employ a full market coverage strategy, which may further be
differentiated (different marketing mix for different products) or undifferentiated (single
marketing mix for all products). Sometimes marketers adopt too many micro segments, which
later become redundant. In such a case, all segments are clubbed together with a single
marketing mix (counter segmentation).
Defence mechanisms: According to Freud and his followers, our psyche is a battlefield between
instinctual urges and drives (the id), the constraints imposed by reality on the gratification of
these impulses (the ego), and the norms of society (the superego). This constant infighting
generates what Freud called "neurotic anxiety" (fear of losing control) and "moral anxiety" (guilt
and shame).
But these are not the only types of anxiety. "Reality anxiety" is the fear of genuine threats and it
combines with the other two to yield a morbid and surrealistic inner landscape.
These multiple, recurrent, "mini-panics" are potentially intolerable, overwhelming, and
destructive. Hence the need to defend against them. There are dozens of defense mechanisms.
The most common among them:
21
Consumer Behavior Notes
Acting Out
When an inner conflict (most often, frustration) translates into aggression. It involves acting with
little or no insight or reflection and in order to attract attention and disrupt other people's cosy
lives.
Denial
Perhaps the most primitive and best known defense mechanism. People simply ignore unpleasant
facts, they filter out data and content that contravene their self-image, prejudices, and
preconceived notions of others and of the world.
Devaluation
Attributing negative or inferior traits or qualifiers to self or others. This is done in order to punish
the person devalued and to mitigate his or her impact on and importance to the devaluer. When
the self is devalued, it is a self-defeating and self-destructive act.
Displacement
When we cannot confront the real sources of our frustration, pain, and envy, we tend to pick a
fight with someone weaker or irrelevant and, thus, less menacing. Children often do it because
they perceive conflicts with parents and caregivers as life-threatening. Instead, they go out and
torment the cat or bully someone at school or lash out at their siblings.
Dissociation
Our mental existence is continuous. We maintain a seamless flow of memories, consciousness,
perception, and representation of both inner and external worlds. When we face horrors and
unbearable truths, we sometimes "disengage". We lose track of space, time, and the continuum
of our identity. We become "someone else" with minimal awareness of our surroundings, of
incoming information, and of circumstances. In extreme cases, some people develop a
permanently rent personality and this is known as "Dissociative Identity Disorder (DID)".
(continued below)
Fantasy
Everyone fantasizes now and then. It helps to fend off the dreariness and drabness of everyday
life and to plan for an uncertain future. But when fantasy becomes a central feature of grappling
with conflict, it is pathological. Seeking gratification - the satisfaction of drives or desires mainly by fantasizing is an unhealthy defense. Narcissists, for instance, often indulge in
grandiose fantasies which are incommensurate with their accomplishments and abilities. Such
fantasy life retards personal growth and development because it substitutes for true coping.
22
Consumer Behavior Notes
Idealization
Another defense mechanism in the arsenal of the narcissist (and, to lesser degree, the Borderline
and Histrionic) is the attribution of positive, glowing, and superior traits to self and (more
commonly) to others. Again, what differentiates the healthy from the pathological is the reality
test. Imputing positive characteristics to self or others is good, but only if the attributed qualities
are real and grounded in a firm grasp of what's true and what's not.
Isolation of Affect
Cognition (thoughts, concepts, ideas) is never divorced from emotion. Conflict can be avoided
by separating the cognitive content (for instance, a disturbing or depressing idea) from its
emotional correlate. The subject is fully aware of the facts or of the intellectual dimensions of a
problematic situation but feels numb. Casting away threatening and discomfiting feelings is a
potent way of coping with conflict in the short-term. It is only when it become habitual that it
rendered self-defeating.
Omnipotence
When one has a pervading sense and image of oneself as incredibly powerful, superior,
irresistible, intelligent, or influential. This is not an adopted affectation but an ingrained,
ineradicable inner conviction which borders on magical thinking. It is intended to fend off
expected hurt in having to acknowledge one's shortcomings, inadequacies, or limitations.
Projection
We all have an image of how we "should be". Freud called it the "Ego Ideal". But sometimes we
experience emotions and drives or have personal qualities which don't sit well with this idealized
construct. Projection is when we attribute to others these unacceptable, discomfiting, and illfitting feelings and traits that we possess. This way we disown these discordant features and
secure the right to criticize and chastise others for having or displaying them. When entire
collectives (nations, groups, organizations, firms) project, Freud calls it the Narcissism of Small
Differences.
Projective Identification
Projection is unconscious. People are rarely aware that they are projecting onto others their own
ego-dystonic and unpleasant characteristics and feelings. But, sometimes, the projected content is
retained in the subject's awareness. This creates a conflict. On the one hand, the patient cannot
admit that the emotions, traits, reactions, and behaviors that he so condemns in others are really
his. On the other hand, he can't help but being self-aware. He fails to erase from his
consciousness the painful realization that he is merely projecting.
So, instead of denying it, the subject explains unpleasant emotions and unacceptable conduct as
reactions to the recipient's behavior. "She made me do it!" is the battle cry of projective
identification.
23
Consumer Behavior Notes
We all have expectations regarding the world and its denizens. Some people expect to be loved
and appreciated - others to be feared and abused. The latter behave obnoxiously and thus force
their nearest and dearest to hate, fear, and "abuse" them. Thus vindicated, their expectations
fulfilled, they calm down. The world is rendered once more familiar by making other people
behave the way they expect them to. "I knew you would cheat on me! It was clear I couldn't trust
you!".
Rationalization
or
Intellectualization
To cast one's behavior after the fact in a favorable light. To justify and explain one's conduct or,
more often, misconduct by resorting to ":rational, logical, socially-acceptable" explications and
excuses. Rationalization is also used to re-establish ego-syntony (inner peace and selfacceptance).
Though not strictly a defense mechanism, cognitive dissonance may be considered a variant of
rationalization. It involves the devaluation of things and people very much desired but
frustratingly out of one's reach and control. In a famous fable, a fox, unable to snag the luscious
grapes he covets, says: "these grapes are probably sour anyhow!". This is an example of
cognitive
dissonance
in
action.
Reaction
Formation
Adopting a position and mode of conduct that defy personally unacceptable thoughts or impulses
by expressing diametrically opposed sentiments and convictions. Example: a latent (closet)
homosexual finds his sexual preference deplorable and acutely shameful (ego-dystonic). He
resorts to homophobia. He public berates, taunts, and baits homosexuals. Additionally, he may
flaunt his heterosexuality by emphasizing his sexual prowess, or by prowling singles bars for
easy pick-ups and conquests. This way he contains and avoids his unwelcome homosexuality.
Repression
The removal from consciousness of forbidden thoughts and wishes. The removed content does
not vanish and it remains as potent as ever, fermenting in one's unconscious. It is liable to create
inner conflicts and anxiety and provoke other defense mechanisms to cope with these.
Motive arousal in consumer behavior: Motives arouse individuals and as a result they respond.
This arousal function is essential because it activates the energy needed to engage in learning
activity.
By achieving the goal ,the arousal reduces, but have a greater tendency to occur again, that is
why marketers put their product in a way that when relevant consumer motive arouse their
products are their to satisfy the need.
This result that consumer will learn a connection b/w the product and motive .
Cues
24
Consumer Behavior Notes
Capable of providing direction i.e. it influences the manner in which, to respond to motive.e.g.
hungry man is guided by restaurant signs or aroma of food.
Response
Mental or physical activity in reaction to a stimulus.
Reinforcement
Anything that follows the response and increase the tendency of response to reoccur in a similar
situation.
Maslow Hierarchy of Needs (with Diagram):
McGuire’s comprehensive scheme of the psychological motives: Classification System with
16 categories
Two criteria determine 4 major categories:
• Is mode of motivation cognitive (process of thoughts) or affective (feeling or
emotion)?
• Is the motive focused on preservation or growth?
• Four categories subdivided further:
• Is the behavior initiated or a response?
• Is this behavior internal or external?
• Cognitive(thought processing) Preservation Motives
• Need for Consistency (active, internal)
• Need for Attribution (active, external)
• Need to Categorize (passive, internal)
• Need for Objectification (passive, external)
• Cognitive Growth Motives
• Need for Autonomy (active, internal)
• Need for Stimulation(muscles to evoke) (active, external)
• Teleological(philosophical) Need (passive, internal)
• Utilitarian Need (utility) (passive, external)
• Affective (feelings or emotion) Preservation Motives:
• Need for Tension Reduction (active, internal)
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Consumer Behavior Notes
•
• Need for Expression (active, external)
• Need for Ego Defense (passive, internal)
• Need for Reinforcement (passive, external)
Affective Growth Motives:
• Need for Assertion (computer programming) (active, internal)
• Need for Affiliation (active, external)
• Need for Identification (passive, internal)
• Need for Modeling (passive, external)
Freud’s Theory of Motivation: Id, ego, and super-ego are the three parts of the psychic
apparatus defined in Sigmund Freud's structural model of the psyche; they are the three
theoretical constructs in terms of whose activity and interaction mental life is described.
According to this model of the psyche, the id is the set of uncoordinated instinctual trends; the
ego is the organised, realistic part; and the super-ego plays the critical and moralising role.[1]
The terms should only be used as adjectives about "psychological forces" (more conventionally,
"wishes") like desires.
Even though the model is "structural" and makes reference to an "apparatus", the id, ego, and
super-ego are functions of the mind rather than parts of the brain and do not necessarily
correspond one-to-one with actual somatic structures of the kind dealt with by neuroscience.
The concepts themselves arose at a late stage in the development of Freud's thought: the
structural model was first discussed in his 1920 essay "Beyond the Pleasure Principle" and was
formalised and elaborated upon three years later in his "The Ego and the Id". Freud's proposal
was influenced by the ambiguity of the term "unconscious" and its many conflicting uses.
Writing Qurestions:
Consumer Personality?
Self concept (self image)in the Consumer Behaviour?
Carl jung’s theory personality types: Carl Gustav Jung (German pronunciation: [ˈkaːɐ̯l
ˈɡʊstaf ˈjʊŋ]; 26 July 1875 – 6 June 1961) was a Swiss psychiatrist, an influential thinker and the
founder of analytical psychology. Jung is often considered the first modern psychologist to state
that the human psyche is "by nature religious" and to explore it in depth.[1] Though not the first
to analyze dreams, he has become perhaps one of the most well known pioneers in the field of
dream analysis. Although he was a theoretical psychologist and practicing clinician, much of his
life's work was spent exploring other areas, including Eastern and Western philosophy, alchemy,
astrology, sociology, as well as literature and the arts.
He considered the process of individuation necessary for a person to become whole. This is a
psychological process of integrating the conscious with the unconscious while still maintaining
conscious autonomy.[2] Individuation was the central concept of analytical psychology.[3]
Jungian ideas are routinely discussed in part by curriculum of introductory psychology course
offerings with most major universities, and although rarely covered by higher level course work,
his ideas are discussed further in a broad range of humanities. Many pioneering psychological
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Consumer Behavior Notes
concepts were originally proposed by Jung, including the Archetype, the Collective
Unconscious, the Complex, and synchronicity. A popular psychometric instrument, the MyersBriggs Type Indicator (MBTI), has been principally developed from Jung's
Emotion in Advertizing: Engineers, accountants, executives, attorneys, housewives, and
ministers – PhD’s, delivery truck drivers and farmers – and butchers, bakers and candlestick
makers – We all fundamentally make all of our decisions based onemotion,not logic. Logic
supports our emotions and is used to justify our decisions after we have made them. Logic plays
a part, but emotion is the core ingredient.
Show me a product that people have little emotion for and I’ll show you a product that’s hard to
sell or has very thin profit margins. Show me an ad or brochure that doesn’t provoke any
emotion, and I can guarantee you that it doesn’t work.
Some people think emotion has no place in business-to-business marketing. Those people are
absolutely 100% totally dead wrong. You can use them to write instruction manuals and
employee handbooks, but keep them out of your sales and marketing department. This sort of
thinking is exactly why most business-to-business marketing is so dull.
Background. Our perception is an approximation of reality. Our brain attempts to make sense
out of the stimuli to which we are exposed. This works well, for example, when we “see” a
friend three hundred feet away at his or her correct height; however, our perception is sometimes
“off”—for example, certain shapes of ice cream containers look like they contain more than
rectangular ones with the same volume.
Factors in percpetion. Several sequential factors influence our perception. Exposure involves
the extent to which we encounter a stimulus. For example, we are exposed to numerous
commercial messages while driving on the freeway: bill boards, radio advertisements, bumperstickers on cars, and signs and banners placed at shopping malls that we pass. Most of this
exposure is random—we don’t plan to seek it out. However, if we are shopping for a car, we
may deliberately seek out advertisements and “tune in” when dealer advertisements come on the
radio.
Exposure is not enough to significantly impact the individual—at least not based on a single trial
(certain advertisements, or commercial exposures such as the “Swoosh” logo, are based on
extensive repetition rather than much conscious attention). In order for stimuli to be consciously
processed, attention is needed. Attention is actually a matter of degree—our attention may be
quite high when we read directions for getting an income tax refund, but low when commercials
come on during a television program. Note, however, that even when attention is low, it may be
instantly escalated—for example, if an advertisement for a product in which we are interested
comes on.
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Consumer Behavior Notes
Perception
The process by which an individual selects, organizes, and interprets inputs to create a
meaningful picture of the world.
Selective Exposure: people are only open to messages they want to receive.
Selective Distortion: shows how people change messages to match their self-concept or twist
them to match their perception of reality.
Selective Retention: shows that people remember only what they want to remember.
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Consumer Behavior Notes