Unit III

Determinants of Consumer
Behavior
(Perception , Learning & Personality)
 Perception
• Meaning of Perception
• The Perceptual Process
• Internal & External Factors responsible
• Distortion
 Joshua Bell playing at Washington DC
Metro station
• The man with a violin played six Bach pieces for about 45 minutes. During that time approx.
2 thousand people went through the station, most of them on their way to work. After 3
minutes a middle aged man noticed there was a musician playing. He slowed his pace and
stopped for a few seconds and then hurried to meet his schedule.
• 4 minutes later:
The violinist received his first dollar: a woman threw the money in the hat and, without
stopping, continued to walk.

6 minutes:
A young man leaned against the wall to listen to him, then looked at his watch and started
to walk again.

10 minutes:
A 3-year old boy stopped but his mother tugged him along hurriedly. The kid stopped to look
at the violinist again, but the mother pushed hard and the child continued to walk, turning
his head all the time.
 Contd..
This action was repeated by several other children. Every
parent, without exception, forced their children to move on
quickly.

45 minutes:
The musician played continuously. Only 6 people stopped and
listened for a short while. About 20 gave money but continued
to walk at their normal pace. The man collected a total of
$32.
1 hour:
He finished playing and silence took over. No one noticed. No
one applauded, nor was there any recognition.
 Contd..
No one knew this, but the violinist was Joshua Bell, one of the greatest musicians in the
world. He played one of the most intricate pieces ever written, with a violin worth $3.5
million dollars. Two days before Joshua Bell sold out a theater in Boston where the seats
averaged $100.
• This is a true story. Joshua Bell playing incognito in the metro station was organized by
the Washington Post as part of a social experiment about perception, taste and
people’s priorities. The questions raised: in a common place environment at an
inappropriate hour, do we perceive beauty? Do we stop to appreciate it? Do we
recognize talent in an unexpected context?

One possible conclusion reached from this experiment could be this: If we do not have
a moment to stop and listen to one of the best musicians in the world, playing some of
the finest music ever written, with one of the most beautiful instruments ever made….
How many other things are we missing?
 Meaning of Perception
• The process by which an individual selects, organizes and interprets stimuli into a
meaningful and coherent picture of the world
• No two individuals are alike
• Exposed to same stimuli under same environment , how each one of them recognizes,
selects, organizes and interprets the stimuli will be a highly individualized process.
 Basic Concepts underlying Perception
• Sensation – Immediate Direct response of a physical sensory Organ.
The physical senses are vision, hearing, touch, smell and taste.
Related to very elementary or basic behavior which is based on
physiological functioning. This depends on individuals sensory
receptors and intensity of stimuli to which he or she is exposed.

• Absolute Threshold- The point at which an individual senses a

difference between something and nothing when exposed to a
stimuli. But sometimes under constant stimulation , sensory
adoption problem may occur. Example: TV Ads for a continuous
long time, use of songs, silence, product illustration etc.
 Basic Concepts underlying Perception
• Differential Threshold – The minimal difference that can be noticeable between two
similar stimuli is known a the differential threshold or the just noticeable difference.
For instance : Rs 1 Price hike for Petrol vs. Rs. 100 price hike of TV
As per Weber’s law, an additional level of stimulus (equivalent to just noticeable
difference) is required for most people to perceive a difference between resulting
stimulus and the internal stimulus. Example : Free toothbrush with toothpaste; changed
packaging.

• Subliminal Perceptions – Perception below the absolute threshold.

The process whereby stimuli which are too weak to be consciously

seen or heard, although they may be strong enough be perceived by one or more
receptor cells.
Supraliminal Vs. Subliminal
 Internal & External Factors
• As human beings we carry all of our experiences in our mind and have our own selfish
interests, needs, motives and expectations in the way we would like the reality to exist
in the world.
• It is tough for marketers to earn brand loyalty because for s number of products where
there is strong brand loyalty and where taste appear to have a strong influence on
buying decisions, may have a little sensory difference between products.
• Illustration : A blind test for taste (i.e. brand True identity being revealed to
identity was hidden ) customer

51% prefer PEPSI 23% prefer PEPSI

44% prefer COKE 65% prefer COKE
5% Equal/Can’t say 12% Equal/Can’t say
 External factors affecting attention
External Internal
• Intensity • Impact of Usage of marketing mix
• Size elements like what is going in
consumer’s mind ?
• Position
• Personality difference to hit the inner
• Contrast mind
• Novelty • Seeking answers to internal factors
• Repetition that affect consumer perception.
• Movement
The Perceptual Process
Exposure
Selection
Attention

Organization

Categorization

Interpretation Inference
 Perceptual Selection
• Consumer is exposed to stimuli and he has to attend to them. There
are 3 processes that define selection ;
• Exposure : When a consumer’s senses are activated by a stimulus
• Attention : Momentary focusing of a consumer’s cognitive capacity on a specific
stimulus.
• Selective Exposure and Attention: For instance- If a person’s need is formal shoes,
his mind will receive only those stimuli that will give him information related to his
footwear. He will exercise a great deal of selectivity. And it is more likely that he
will observe the stimuli that he anticipates.

• Selective perception : Different person may perceive the same stimuli differently.
For example- One consumer might think Tide washing powder to actually clean and
whiten the clothes as it is shown , some other might think that all the washing
powders are one and the same.
 Perceptual Selection
Perceptual Vigilance and Defense:
Through selective perception consumers will receive information having relevance to her
needs , this process is also called perceptual vigilance.
Perceptual defense refers to the individual being vigilant and screening out all those
stimuli or elements which create conflict or may give rise to a threatening situation.
Perceptual equilibrium and disequilibrium:
Equilibrium is the consistency between prior beliefs they have about and the information
they receive about a brand.
Sometimes consumers would accept discrepant information about a selected product. If
they did not, it will mean that every time a consumer was dissatisfied , he or she will try
to rationalize the purchase and would never switch brands.
 Perceptual Selection

Marketing Strategy and Selective Perception:

Marketers can communicate messages which re clear cut or ambiguous. When consumers are
engaged in perceptual defense, then ambiguous messages will be more effective and the clear
cut messages in the case of perceptual vigilance.
Perceptual Blocking:
When consumers are bombarded with lots of information, there is a general tendency to block
out some stimuli from their conscious awareness. For example. Repetitive ads in the popular TV
programmes intervals.
 Perceptual Organization
• Perceptual organization is the process of grouping visual elements together
(organization) so that one can more readily determine the meaning of the visual as a
whole (perception).

Principles of
perceptual
organization were
first developed by
Gestalt psychologists.
(Gestalt , when
translated from
German means total
configuration and
whole pattern.
 Perceptual Interpretation

• Categorization : The principle is with reference to the

tendency of consumers to process and place information into
their interpretation of logical categories.
• Inference: This principle refers to consumers reasoning out
and developing an association between stimuli.
 Perceptual Distortion
• A perceptual distortion occurs when a persons responses to stimuli varies from
how it is commonly perceived.
• There are certain factors which could influence the individual, leading to
perceptual distortion.
• Personality or Physiological Appearance
• Stereotypes
• Halo Effects
• Irrelevant Cues
• First Impression
• Hasty Conclusion
 Perceptual Inference
• Consumers draw inferences about brands, outlets and associations.The
inference could be drawn on the basis of word of mouth from peer, friends or
advertisements.
• Let us understand this in 2 parts;
Product Symbols Semiotics
 Consumer Imagery and Marketing Implications
• Consumers have a number of enduring perceptions or images, which are quite relevant.
• Brand Image and Self Image
• An important concept is the person’s level of aspiration. Generally products,
brands, other people, places and possessions have symbolic value and are judged on
the basis of how they fit with the personal picture of themselves. Different types of
self image are:
• Actual Self Image
• Social Self Image
• Ideal Self Image
• Expected Self Image
• Brand Image will indicate the overall perception of the brand and is based
on how the consumer draws inferences about the brand.
 Consumer Imagery and Marketing Implications
Perceptual Mapping and Product Positioning - It is a technique used by marketers to know
consumer’s perception of their products or services in relation to competitor’s brand on one or
more relevant characteristics.
• The Perception of Quality – Both intrinsic and extrinsic cues can affect the consumer’s
perception about the quality of the product and it’s perceived value. Consumers perceive
value in brand which are cost driven or products (brands) which have certain unique
benefits which offset their price.
• Price Perceptions – Consumers have an acceptable price range, for a particular product,
which shows a willingness to accept a range of prices. Marketers are concerned with about
the reference price and the actual prices of the product or services available at the market
place.
• The consumer perception of prices are important for marketers because it often influences
their perception of quality, which in turn will influence their purchase behavior.
 Consumer Imagery and Marketing Implications
Advertising and Perceived benefits-
The principle of competitive persuasion plays a big role in our decision making process.
Advertising helps in the creation of images in consumer’s minds. People have a lot of
belief in the brand image of a product or service. Advertising helps in converting a
product into a brand by adding psychological intangibles and functional tangible value to
it.
Jim Young suggested 5 ways to make advertising work ;
• By familiarizing – bringing the product into common use
• By performing the function of reminding consumers about the product utility.
• By communicating or spreading news in the commercial field.
• By overcoming inertia
• By adding value to the product through creativity.
 Consumer Imagery and Marketing Implications
Sales Promotion and Perceived value-
The role of promotions is to encourage purchase by temporarily improving the brand
value.
Promotion activities can be split into price and non price related activities ;

Price Related Non Price Related

Consumer Price promotions Merchandising
Trade advertising allowances In store displays
Dealer promotions Point of purchase
Free samples or goods Coupons
Trade bonuses and so on Competitions
Premiums and so on
 Consumer Imagery and Marketing Implications
Public Relation and Perceived Value-
It is used to add value to the organization. Public awareness and relation influence opinion of those who have a
stake in the business, such that they are happy to support it.
Personal Selling and Perceived Value-
It is used to create and keep customers.

Few specific advantages that can increase perceive value through Personal selling;
Helps to build a more intimate relationship with the customer
Sales person can personalize and tailor make the offer
Help customers articulate their requirements more clearly and also subject to modification
Sales person will be able to deal with objections functionally and also at emotional level.
 Consumer Imagery and Marketing Implications
Perceived Risks - Varies from person to person , depending on the individual , type of
product, shopping method and the culture of the country.
The major type of risks perceived by consumers when making purchase decisions are;
• Functional Risk : The product may not function well as expected
• Financial Risk : The product may not be worth its cost
• Physical Risk : Related to physical characteristics or features of the product
• Social Risk : product not being accepted by the society as a good choice
• Psychological Risk : the product choice may result in hurting and bringing down the morale and ego of the
consumer
• Time Risk : combined with the fear that the time spent in product search may be in vain if the product
does not perform as expected.
 Consumer Imagery and Marketing Implications
Risk Reduction Strategies Adopted by Consumers –
• Consumers Seek Information
• Continuing with the same brand
• Going by the brand image
• Going by the store image
• Buy the most expensive product
• Seeking reassurance (guarantees/warranties/samples etc.)
 Learning
• Elements
• Process
• Learning Theories
• Measures of Consumer Learning
 What is learning?
• Learning can be defined as , “ A relatively enduring change in behavior due to
experience”
• However from a marketing perspective , consumer learning is said to be, “The process
by which persons acquire the purchase and consumption knowledge and experience that
they apply to future related behavior.”

Learning involves change in behavior though it might not be an

improvement over previous behavior
Few Important It is a process that continually evolves and changes as a result of newly
Aspects to be noted acquired knowledge

The change is based on some form of practice or experience. This

newly acquired knowledge and experience serve as a feedback to the
person and also forms the basis of future behavior in similar situations
 Elements of Learning

Response Reinforcement Retention

Cues How people react Those
Motivation to drive or cue ; The stability of
Drive It serves the environmental learned behavior
An incentive to may be in events which
purpose for maintained by
Any strong stimuli learn; motives physical form or increases the
stimuli and gives individual over a
that impels action stimulate the complex likelihood of
direction to those period of time
learning process phenomena such specific response
motives
as attitudes , occurring in the
familiarity etc. future as a result
of particular cue
or stimuli
 Example
1. Drive
2. Motivation
• Unfulfilled needs are the underlying drivers that lead to motivation.
• For example, if you’ve just visited the doctor and he has informed you that you need to live
a more active lifestyle to reduce your elevated cholesterol levels, your unfulfilled need is to
live a more active, healthy lifestyle. Therefore, you may be motivated to learn as much as
you can about local gyms in the hopes of joining one, leading a more active lifestyle and
improving your health.
3. Cues
• In order to learn about local gyms, cues could take the form of advertisements for gyms you
see online or hear about on the radio, conversations you have with salespeople at those
gyms or even a conversation about a local yoga studio you overhear between two friends at
a coffee shop.
• Some cues, like the conversation with a salesperson, are deliberately sought, while others,
like overhearing the conversation at a coffee shop, are not. Regardless, you can learn from
both the cues that are deliberately sought and those that are incidental.
 Example
4. Response
• A response is the consumer’s reaction to a cue. While there can be many responses to each
cue, the response the consumer chooses often depends heavily on their previous
experiences. Here may be we join the gym or not.
5. Reinforcement
• If you choose to join the local gym, reinforcement may take the form of a positive
experience, where the machines you want to use are readily available along with the
occasional 10% off coupon for the juice bar. This reinforcement may lead you to remain
satisfied with the gym and perhaps even recommend it to a friend, contributing cues to
their learning process.
6. Retention
 Types of Learning Process
• It can be of two types : Routines and a more elaborate learning process.
• Many of the consumer behavior occurs without the involvement of extensive
consideration and reflection like shopping in a departmental store or have a snack at
the restaurant.
• On the other hand , behavior involved in buying a TV , a home theatre system etc
involves extensive information search.
• Routine consumptions involves learning process with a short thinking and action
process.
• For example : buying a bread loaf in India is a routine process with a set of sequential
steps while in Japan it is an elaborate learning process.
 Types of Learning Process
• Mechanisms of Learning:
• Cognitive
• Classical conditioning
• Instrumental Conditioning
• Modeling
 Classical Conditioning
• It is a process in which a previously neutral stimulus acquires the ability to elicit a
response by repeated association with a stimuli that naturally produces a similar
response.
• In simple terms, it describes behavior as a learned process by repetitive association
between a stimulus and response(S-R association).
• It considers behavior as a result of a close association between a primary stimulus and a
secondary stimulus.
• The Russian physiologist , Ivan Pavlov was the first to suggest conditioning as method to
describe learning.
 Classical Conditioning
Unconditioned Unconditioned
Stimulus (US) Response (UR)
Food Salivation

Unconditioned Unconditioned
Stimulus (US) Response (UR)
Food Salivation

Conditioned
Stimulus (CS) Bell

Conditioned
Conditioned Response (CR)
Stimulus (CS) Bell Salivation
 Classical Conditioning
• Information Processing and Associate Learning
Consumers process the information received based on their cognitive
ability and the complexity of the information to be processed.
Consumers with higher cognitive ability will seek more product
information and will also be capable of integrating information on
several product attributes when compared to consumers with lesser
cognitive capability.
• Strategic Applications of Classical Conditioning
Example: Amul girl who morphs and made her sharp observations on
Indian Scenario. Consumers remember the jingle “utterly Butterly
delicious Amul” which made the brand very popular. Consumers learnt
to associate the above brands with the theme or jingle.
Operant or Instrumental Conditioning
• It is a type of learning in which the consequences of Behavior lead to changes in the
probability of that behavior’s occurrence.
• While analyzing consumer behavior as per the instrumental conditioning it can be said
that consumers learn through a method of trial and error, in which some purchase
behavior can have favorable outcomes while others may not be so favorable. And it,
is such favorable experiences which is instrumental in encouraging the individual to
repeat the purchase behavior.
• B.F Skinner advocated that behavior occurs because it is reinforced or rewarded.
Skinner in his experiment, placed a mouse in a box (Skinner Box) with a lever , food
dispenser and electrified floor. The behavior observed is showcased in the next slide.
After observation, he argued that the behavior displayed by mouse was because of
external reinforcements or rewards and thus there was no need to invoke internal
drivers and states.
Operant or Instrumental Conditioning
 Operant or Instrumental Conditioning
• Similarly, Skinner stated that human behavior can be shaped or modified by rewarding
that behavior. Simply put, human beings can be shaped or modified by rewarding that
behavior or providing reinforcements.
• Instrumental conditioning in the marketing context can be explained as;
Unrewarded
Try Brand A
No good fragrance
Stimulus
situation Unrewarded
Try Brand B
(needs a good Too Strong smell
deodorant)
Try Brand C Reward
Feels good satisfied
 Operant or Instrumental Conditioning
• There are 3 types of re-inforcements in Operant conditioning;

Behavior A Strengthening of
Reward
Behavior

Behavior B Weakening
Punishment
Behavior

Behavior C No Reward No change

 Operant or Instrumental Conditioning
• Timing of Rewards can also influence the purchase behavior.
• Positive Reinforcement – Example : Use of certain cream would reduce pimples
• Negative Reinforcements – Example: Fear of aversion from peers and friends due to
body odor or buying insurance.
• Marketers use these reinforcements to elicit the desired response from consumers.
• Critics have also opined that a considerable amount of learning takes place in the
absence of direct reinforcements like teenagers observe the lifestyle of their idols and
then try to imitate.
 Cognitive Theory
• According to psychologists, cognitive learning is viewed as a problem solving procedure
and equated to the process of complex decision making.
• Kohler experimented this on Apes. He place a chimpanzee in a cage with several boxes
and bananas hanging from the roof. After failing to reach the food, the chimpanzee
solved the problem by placing a box beneath bananas. Thus it was concluded that
learning was not a result of congruity between stimulus or response or reinforcements
but the result of thought process and insight.

Purchase Goal
Goal Insight
Behavior Achievement
 Cognitive Theory
• For consumers, cognitive learning is a process of perceiving stimuli, associating them to
needs, evaluating alternative brands and assessing whether products meets
expectations. While classical & instrumental conditioning emphasizes on the results of
stimulus association.; cognitive theory stresses on the thought process involved in
consumer learning.
• The cognitive learning emphasizes on the recognition of a goal, purposive behavior to
achieve the goal, insight to bring about a solution and goal achievement. Reinforcement
is very much part of cognitive learning as there must bean awareness of goal
achievement for learning to take place. Further, the nature of the goal is understood
from the beginning and the reward is also anticipated.
 Observational Learning or modeling
• It is based on the social aspects and imitation of other’s behavior as a model i.e. the
model person serves as an ideal and their behavioral pattern will be the goal for others
to follow.
• MARKETERS have realized the significance of consumer’s imitative behavior and tried to
influence it through usage of models in the advertisements. Instructions on how to use
or demonstrations suggests to follow or imitate the behavior of the person
demonstrating the same.
• There are certain features which consumer accept while observing models who they
feel worthy of imitation;
• Suitability
• Relevance
• Consistency
• Re-inforcement
 Important Features that are observed
• Suitability of the model endorsing the products worthy of imitation. Example: Mother’s
concern for baby ( Johnson & Johnson Baby Care Product )
• Relevance of the model in social learning process. Example – Sports star Virendra
Sehwag and Sachin Tendulkar talking about Boost as the energetic drink.
• Consistency in the behavior of the model which helps in learning process. ( Bajaj Lights
has been consistently used throughout the model’s life cycle)
• Re-inforcement behavioral response is very often conditioned by re-inforcement.
(Rewarding experience of patients using Dr. Batra’s medicines)
 Measures of Consumer Learning
• Memory and marketing efforts – recall and recognition
• Low involvement Theory
• Habit
• Brand Loyalty vs. Brand Equity
 Personality
• Meaning and nature Refer Next
PPT
• Characteristics
• Stages in the development of personality
• Personality influences and Consumer Behavior
• VALS Model and its development
 To be Contd…

THANK YOU !!
 Unit 3

Meaning of Lifestyle

In consumer behavior, "lifestyle" refers to the way individuals or groups live and spend their
time and money. It encompasses various aspects such as activities, interests, opinions, values,
and behaviors that shape how people choose to lead their lives. Lifestyle influences consumers'
preferences, purchasing decisions, and consumption patterns across different product categories.

Understanding consumers' lifestyles is crucial for marketers because it helps them segment the
market and tailor their products, services, and marketing strategies to better resonate with
specific target audiences. By identifying shared lifestyle characteristics among consumers,
marketers can create more effective messaging, develop products that align with consumers'
values and preferences, and choose appropriate channels for reaching their target market.
Additionally, lifestyle analysis enables marketers to anticipate trends, forecast demand, and adapt
their strategies to changes in consumer behavior.

Measuring Lifestyle Characteristics using AIO Framework

The AIO framework, also known as Activities, Interests, and Opinions framework, is a method
used in marketing and consumer research to measure lifestyle characteristics. It helps in
understanding consumers' behaviors, preferences, and attitudes by categorizing them into three
main components:

1. Activities: Activities refer to the actions that individuals engage in regularly. This
includes their daily routines, hobbies, sports, entertainment choices, social interactions,
and work-related tasks. By analyzing consumers' activities, marketers can gain insights
into how they spend their time and what experiences they value. For example, someone
who enjoys outdoor activities like hiking and camping may have different preferences
and purchasing behaviors compared to someone who prefers indoor activities like reading
or watching movies.

2. Interests: Interests encompass the topics, subjects, or areas that individuals are
enthusiastic about or curious about. This includes their hobbies, passions, leisure pursuits,
and areas of personal investment. Interests can vary widely among individuals and may
include interests in specific hobbies, travel destinations, fashion trends, cultural activities,
or social causes. Understanding consumers' interests helps marketers tailor their products,
services, and marketing messages to resonate with their target audience's passions and
preferences.

3. Opinions: Opinions refer to individuals' beliefs, attitudes, and perspectives on various

topics, issues, products, or brands. This includes their preferences, values, perceptions,
 and judgments about different aspects of life. Opinions can influence consumers'
decision-making processes and purchasing behaviors significantly. By examining
consumers' opinions, marketers can identify their preferences, concerns, and motivations,
allowing them to develop more effective marketing strategies and communication
messages that resonate with their target audience's beliefs and values.

By using the AIO framework to measure lifestyle characteristics, marketers can gain a
comprehensive understanding of consumers' behaviors, interests, and attitudes. This information
can then be used to segment the market, identify target audiences, develop tailored marketing
strategies, and create products and services that meet consumers' needs and preferences
effectively.

What is AIO Inventory?

The AIO Inventory, in the context of consumer behavior and marketing research, refers to a tool
or questionnaire used to gather information about consumers' Activities, Interests, and Opinions
(hence AIO). It is a structured survey instrument designed to systematically collect data on
various aspects of individuals' lifestyles.

The AIO Inventory typically consists of a series of questions or statements related to different
dimensions of consumers' lives, such as their daily activities, leisure pursuits, hobbies, interests,
values, beliefs, and attitudes. Respondents are asked to indicate their level of agreement or
disagreement with each item, providing researchers with insights into their preferences,
behaviors, and psychographic profiles.

The inventory can be used in both quantitative and qualitative research methods. In quantitative
studies, responses to the AIO Inventory are often measured using Likert scales or other rating
scales, allowing for statistical analysis and comparison across different groups or segments of the
population. In qualitative research, the inventory may be used to guide in-depth interviews or
focus group discussions, providing richer insights into consumers' motivations and decision-
making processes.

Overall, the AIO Inventory is a valuable tool for marketers and researchers seeking to understand
consumers' lifestyles, preferences, and attitudes, enabling them to tailor their strategies and
offerings more effectively to meet consumers' needs and desires.

Measuring Lifestyle Characteristics using Vals Framework

The VALS (Values, Attitudes, and Lifestyles) framework is a widely used tool in marketing and
consumer research for segmenting and understanding consumers based on their psychographic
characteristics. It divides consumers into distinct groups based on their primary motivations and
resources. Measuring lifestyle characteristics using the VALS framework involves identifying
consumers' values, attitudes, and lifestyles through a structured survey or questionnaire. Here's
how it works:

1. Identifying Values: The VALS framework categorizes consumers based on two primary
dimensions of motivation: resources and primary motivations. Resources refer to
consumers' economic, psychological, physical, and social capacities. Primary motivations
refer to the underlying psychological drivers that influence consumers' behaviors and
decision-making processes. These motivations are typically divided into three categories:

 Self-Expression: Consumers motivated by self-expression seek to express their

individuality, creativity, and unique identities through their choices and behaviors.

 Achievement: Consumers motivated by achievement are goal-oriented and value

success, status, and accomplishment. They are typically driven by a desire for
personal and professional advancement.

 Principle: Consumers motivated by principle prioritize ethical values, social

responsibility, and altruism. They are concerned with making socially and
environmentally responsible choices.

2. Assessing Attitudes: The VALS framework also considers consumers' attitudes towards
various aspects of life, such as work, family, leisure, and society. Attitudes are assessed
based on consumers' beliefs, opinions, and perceptions about these topics. For example,
consumers' attitudes towards work may reflect their values related to career advancement,
work-life balance, or job satisfaction.

3. Understanding Lifestyles: Lifestyle characteristics in the VALS framework are

determined by consumers' values, attitudes, and behaviors across different domains of
life. By analyzing consumers' responses to survey questions or statements related to their
values, attitudes, preferences, behaviors, and demographics, researchers can identify
distinct lifestyle segments within the population. These segments represent groups of
consumers with similar psychographic profiles and consumption patterns.

Measuring lifestyle characteristics using the VALS framework allows marketers to gain insights
into consumers' motivations, preferences, and behaviors, enabling them to develop targeted
marketing strategies, product offerings, and communication messages that resonate with specific
consumer segments. Additionally, the VALS framework helps marketers identify emerging
trends, anticipate shifts in consumer preferences, and adapt their strategies accordingly to remain
competitive in the marketplace.

Classification of consumer traits based on VALS

Based on the VALS (Values, Attitudes, and Lifestyles) framework, consumers are classified into
distinct segments or types based on their primary motivations and resources. These segments
represent different combinations of values, attitudes, and lifestyles. Here are the primary
classifications of consumer traits based on VALS:

1. Innovators: Innovators are characterized by high resources and a primary motivation of

self-expression. They are often early adopters of new ideas, products, and technologies.
Innovators tend to be well-educated, financially secure, and interested in pursuing novel
experiences and creative outlets. They are influential trendsetters who value individuality,
innovation, and uniqueness.

2. Thinkers: Thinkers are motivated by principle and possess high resources. They are
thoughtful, reflective individuals who prioritize rationality, intellectual pursuits, and
social responsibility. Thinkers tend to be well-educated, politically and socially
conscious, and concerned with making informed decisions that align with their ethical
values and beliefs. They are likely to seek out products and brands that demonstrate
integrity, quality, and authenticity.

3. Achievers: Achievers have high resources and are motivated by achievement. They are
ambitious, success-oriented individuals who value status, prestige, and material
accomplishments. Achievers tend to be career-focused, financially stable, and committed
to advancing their personal and professional goals. They are likely to gravitate towards
established brands and products that symbolize success, luxury, and social recognition.

4. Experiencers: Experiencers are motivated by self-expression and possess low to

moderate resources. They are adventurous, spontaneous individuals who seek excitement,
variety, and stimulation in their lives. Experiencers value experiences over material
possessions and are often willing to take risks in pursuit of new thrills and adventures.
They are trend-sensitive consumers who enjoy exploring different lifestyles, cultures, and
subcultures.

5. Believers: Believers are motivated by principle and possess low to moderate resources.
They are traditional, conservative individuals who prioritize stability, security, and
conformity. Believers tend to adhere to traditional values, religious beliefs, and cultural
norms. They are loyal to established institutions, brands, and authorities that reflect their
values and provide a sense of belonging and continuity.

6. Strivers: Strivers are motivated by achievement but possess low to moderate resources.
They are ambitious, aspiring individuals who seek upward mobility and social
recognition. Strivers are often striving to improve their socioeconomic status and enhance
their lifestyle through hard work, determination, and perseverance. They are highly
influenced by trends and societal norms, aspiring to emulate the behaviors and lifestyles
of more affluent groups.
 7. Makers: Makers are motivated by self-expression and possess low resources. They are
practical, down-to-earth individuals who value utility, functionality, and craftsmanship.
Makers are hands-on consumers who enjoy DIY projects, hobbies, and creative pursuits.
They prioritize simplicity, authenticity, and self-sufficiency in their lifestyles and
consumption choices.

These classifications provide marketers with insights into the diverse motivations, preferences,
and behaviors of different consumer segments, enabling them to develop targeted marketing
strategies, product offerings, and communication messages that resonate with specific groups of
consumers.

Changing Lifestyle Trends of Indian Consumers

The lifestyle trends of Indian consumers have been evolving rapidly due to various factors,
including economic growth, urbanization, globalization, technological advancements, and
changing social dynamics. Here are some significant changes and emerging trends in the lifestyle
of Indian consumers:

1. Shift towards Urban Living: Urbanization has led to significant lifestyle changes as more
Indians move to cities in search of better opportunities. Urban dwellers often adopt
modern lifestyles characterized by fast-paced living, convenience-driven consumption
patterns, and a greater emphasis on career advancement, social networking, and
entertainment.

2. Rising Disposable Income: Economic growth has resulted in increased disposable income
among Indian consumers, enabling them to afford a higher standard of living and indulge
in discretionary spending. This has led to a rise in demand for premium products and
services across various sectors, including fashion, electronics, travel, dining, and leisure
activities.

3. Changing Family Structures: Traditional joint family systems are giving way to nuclear
families or smaller household sizes due to urbanization, migration, and changing social
norms. This shift has implications for consumer behavior, with smaller households often
prioritizing convenience, flexibility, and personalized experiences in their consumption
choices.

4. Health and Wellness Consciousness: There is a growing awareness of health and wellness
among Indian consumers, leading to increased demand for organic, natural, and
functional foods, as well as fitness products and services. Consumers are increasingly
seeking healthier lifestyle choices, including mindful eating, regular exercise, and stress
management practices.
 5. Digital Transformation: The widespread adoption of smartphones and internet
connectivity has transformed how Indian consumers shop, communicate, and access
information. E-commerce platforms have gained popularity, offering consumers greater
convenience, choice, and accessibility to products and services. Digital media
consumption, including social media, streaming platforms, and online content, has also
become integral to the lifestyle of Indian consumers.

6. Preference for Experiences over Possessions: Indian consumers are increasingly valuing
experiences and memories over material possessions. This trend is reflected in the rising
demand for travel, dining out, entertainment events, and experiential activities that offer
opportunities for socializing, exploration, and personal enrichment.

7. Sustainability and Ethical Consumption: There is a growing concern among Indian

consumers about environmental sustainability, ethical sourcing, and social responsibility.
Consumers are seeking eco-friendly and ethically produced products, as well as
supporting brands and businesses that align with their values and contribute to positive
social and environmental impact.

8. Cultural Revival and Fusion: While embracing modern lifestyles, Indian consumers are
also rediscovering and celebrating their cultural heritage and traditions. There is a
renewed interest in indigenous crafts, art forms, cuisine, fashion, and festivals, often
blended with contemporary influences to create unique fusion experiences.

These changing lifestyle trends present opportunities and challenges for businesses and
marketers seeking to understand and cater to the evolving needs and preferences of Indian
consumers. Adapting to these trends requires agility, innovation, and a deep understanding of
local nuances and consumer behavior patterns.

PERSONALITY

Personality refers to the unique set of enduring psychological traits, characteristics, and patterns
of behavior that distinguish an individual from others. It encompasses a wide range of cognitive,
emotional, and behavioral tendencies that shape how a person thinks, feels, and acts across
different situations and contexts.

Key aspects of personality include:

1. Traits: Personality traits are stable, consistent patterns of behavior, thoughts, and
emotions that characterize an individual's personality. Traits can range from
introversion/extroversion, openness, conscientiousness, agreeableness, and neuroticism,
among others.
 2. Motivations: Personality influences an individual's motivations, desires, and goals.
These motivations drive behavior and shape how individuals pursue and prioritize certain
activities, experiences, and achievements.

3. Cognition: Personality traits influence cognitive processes such as perception, decision-

making, problem-solving, and information processing. Individuals with different
personality traits may perceive and interpret the world differently and exhibit distinct
cognitive styles.

4. Emotions: Personality influences emotional responses and affective experiences. Certain

personality traits may predispose individuals to experience specific emotions more
frequently or intensely, impacting their overall emotional well-being and interpersonal
interactions.

5. Behavioral Patterns: Personality shapes behavioral tendencies, habits, and interpersonal

styles. It influences how individuals interact with others, communicate, assert themselves,
cope with stress, and adapt to various social and environmental circumstances.

6. Development: Personality traits develop and evolve over time through interactions with
genetic predispositions, environmental influences, life experiences, and socialization
processes. While personality tends to exhibit stability and continuity across the lifespan,
it can also be influenced by significant life events and developmental milestones.

Understanding personality is essential in various fields, including psychology, sociology,

organizational behavior, marketing, and consumer research. In marketing and consumer
behavior, personality insights are used to segment and target specific consumer groups, tailor
marketing messages and product offerings, predict consumer preferences and decision-making
processes, and create personalized consumer experiences.

STAGES IN THE DEVELOPMENT OF PERSONALITY OF A CONSUMER

The development of personality in consumers is a complex and dynamic process influenced by

various factors, including genetics, early childhood experiences, socialization, cultural
influences, life events, and individual differences. While personality development is a lifelong
journey, there are several key stages that can be identified in the formation and evolution of
consumer personality:

1. Early Childhood (0-5 years):

 During this stage, basic personality traits begin to emerge through interactions
with caregivers and the environment.
  Early experiences, such as attachment styles, parenting styles, and family
dynamics, play a crucial role in shaping the child's sense of self, emotional
regulation, and social behaviors.

 Preferences for certain products, brands, and consumption patterns may start to
develop based on early exposure to stimuli and parental influence.

2. Middle Childhood (6-12 years):

 Personality continues to develop and consolidate during middle childhood,

influenced by peer relationships, school experiences, and societal norms.

 Children begin to develop a sense of identity, self-esteem, and autonomy, which

can impact their consumer preferences and decision-making processes.

 Consumption behaviors may be influenced by peer pressure, social comparisons,

and aspirational role models.

3. Adolescence (13-18 years):

 Adolescence is a critical period of identity formation and exploration,

characterized by increased autonomy, self-awareness, and independence.

 Teens experiment with different identities, values, and lifestyle choices, which
can influence their consumer preferences, brand affiliations, and consumption
patterns.

 Peer groups, media influence, and cultural trends play significant roles in shaping
adolescent consumer behavior and attitudes.

4. Young Adulthood (19-39 years):

 Young adulthood is a period of transition marked by major life decisions, such as

education, career, relationships, and starting a family.

 Individuals establish their own identity, values, and life goals, which impact their
consumption behaviors and lifestyle choices.

 Consumer preferences may be influenced by factors such as income level, social

status, life stage, and aspirations for the future.

5. Middle Adulthood (40-59 years):

 Middle adulthood is characterized by stability and consolidation in personality

traits, although personal growth and adaptation continue throughout this stage.
  Consumers may prioritize different needs and values, such as family, career
advancement, financial security, and health and wellness.

 Consumption patterns may reflect established habits, brand loyalties, and

evolving priorities related to aging, retirement planning, and caregiving
responsibilities.

6. Late Adulthood (60+ years):

 Late adulthood is a period of reflection, wisdom, and adjustment to changing life

circumstances, such as retirement, health issues, and loss of loved ones.

 Consumers may prioritize experiences, relationships, and legacy-building

activities over material possessions.

 Consumption behaviors may be influenced by factors such as health concerns,

fixed incomes, and a desire for simplicity, convenience, and social connectedness.

Throughout these stages, consumer personality continues to evolve in response to internal and
external influences, shaping individuals' preferences, attitudes, and behaviors in the marketplace.
Marketers and businesses must understand these developmental stages to effectively target and
engage with consumers at different life stages, offering products, services, and experiences that
resonate with their evolving needs, values, and aspirations.

Refer PPT for Theories of Personality

PERSONALITY INFLUENCES & Consumer Behavior

Schiffman and Kanuk's model of personality traits, including consumer innovativeness,

dogmatism, need for uniqueness, optimum stimulation level, and variety-novelty seeking
behavior, provides valuable insights into how specific personality characteristics influence
consumer behavior. Here's a breakdown of each trait and its impact on consumer behavior:
1. Consumer Innovativeness:

 Consumer innovativeness refers to the degree to which an individual is open to

new ideas, products, and experiences.

 Consumers high in innovativeness are more likely to adopt new products and
technologies, seek out novel experiences, and engage in exploratory and risk-
taking behavior.

 They may be early adopters of innovative products and trends, influencing others'
adoption behavior through word-of-mouth and social influence.

 Marketers can target innovators with innovative and cutting-edge products,

creative marketing campaigns, and experiential marketing initiatives that appeal
to their desire for novelty and experimentation.

2. Dogmatism:

 Dogmatism refers to the degree to which an individual is open to accepting new

ideas and information versus being rigid and resistant to change.

 Consumers high in dogmatism tend to be more conservative, traditional, and

resistant to persuasion and influence.

 They may exhibit brand loyalty and preference for established brands and
products, relying on familiar choices and avoiding uncertainty and ambiguity.

 Marketers may need to use more traditional and authoritative messaging

approaches to resonate with dogmatic consumers, emphasizing reliability,
trustworthiness, and conformity to established norms and values.

3. Need for Uniqueness:

 The need for uniqueness reflects the extent to which an individual seeks to
differentiate themselves from others and express their individuality and
uniqueness.

 Consumers with a high need for uniqueness may prefer niche or unconventional
products, brands, and experiences that allow them to stand out and express their
distinct identity.

 They may be drawn to limited-edition or customized products, boutique brands,

and personalized experiences that cater to their desire for exclusivity and self-
expression.
  Marketers can target consumers with a high need for uniqueness by offering
unique and customized products, personalized services, and exclusive
membership programs that appeal to their desire for differentiation and self-
expression.

4. Optimum Stimulation Level:

 Optimum stimulation level refers to the level of sensory or cognitive arousal that
an individual seeks in their environment and activities.

 Consumers with a high optimum stimulation level may seek out stimulating and
exciting experiences, such as adventure sports, entertainment events, and social
activities.

 They may be more responsive to marketing stimuli that are attention-grabbing,

emotionally arousing, and intellectually stimulating.

 Marketers can appeal to consumers with a high optimum stimulation level by

creating immersive and engaging brand experiences, using vibrant visuals,
interactive content, and dynamic storytelling techniques to capture their attention
and interest.

5. Variety-Novelty Seeking Behavior:

 Variety-novelty seeking behavior refers to the tendency to seek out new and
varied experiences, products, and stimuli.

 Consumers high in variety-novelty seeking behavior may exhibit exploratory and

adventurous consumption patterns, actively seeking out novelty, diversity, and
variety in their purchases and activities.

 They may enjoy experimenting with different brands, flavors, styles, and
activities, constantly seeking new sensations and experiences to satisfy their
curiosity and desire for stimulation.

 Marketers can target consumers with high variety-novelty seeking behavior by

offering a wide range of product options, limited-time promotions, and
experiential marketing activations that cater to their need for variety, novelty, and
excitement.

Understanding these personality traits can help marketers segment their target audience, tailor
their marketing strategies, and develop more effective messaging and offerings that resonate with
consumers' unique motivations, preferences, and behaviors. By aligning marketing efforts with
consumers' personality traits, marketers can enhance engagement, foster brand loyalty, and drive
positive outcomes in the marketplace.
SELF CONCEPT

Self-concept, also known as self-image, refers to an individual's perception, beliefs, and

evaluation of themselves. It encompasses various dimensions, including how individuals see
themselves (actual self), how they aspire to be (ideal self), how they believe others perceive them
(social self), and how they believe they should be perceived by others (ideal social self).
Additionally, the concept of expected self-image considers future aspirations and goals. Here's
an explanation of each dimension:

1. Actual Self: The actual self refers to how an individual perceives themselves currently,
based on their attributes, abilities, roles, and experiences. It includes both positive and
negative aspects of one's identity, such as personality traits, skills, physical appearance,
and social roles. The actual self is shaped by self-awareness, self-reflection, and feedback
from others.

2. Ideal Self: The ideal self represents the individual's aspirations, goals, and desires
regarding who they would like to be or become in the future. It reflects the idealized
version of oneself, encompassing qualities, achievements, and characteristics that
individuals strive to attain or embody. The ideal self motivates individuals to pursue self-
improvement and personal growth, driving behavior towards aligning with these
aspirations.

3. Social Self: The social self, also known as the perceived self, refers to how individuals
believe others perceive them. It is shaped by social interactions, feedback, and social
comparisons. Individuals may develop their social self-concept based on how they
perceive themselves fitting into various social roles, groups, and contexts. Social self-
concept influences behavior as individuals seek acceptance, validation, and belonging
from others.

4. Ideal Social Self: The ideal social self represents the image individuals believe they
should project to others based on societal norms, expectations, and cultural standards. It
reflects the socially desirable attributes, behaviors, and roles that individuals perceive as
valued or respected in their social environment. The ideal social self guides individuals'
efforts to conform to social norms and expectations, influencing their behavior in social
contexts.

5. Expected Self-Image: The expected self-image refers to the future-oriented aspect of

self-concept, representing individuals' expectations and goals for their future selves. It
encompasses aspirations, plans, and expectations regarding personal and professional
 development, achievements, and life outcomes. The expected self-image serves as a
motivational force, guiding individuals' efforts and decisions towards realizing their
envisioned future selves.

Understanding the various dimensions of self-concept is essential in psychology, sociology,

marketing, and consumer behavior. In marketing, for example, marketers utilize knowledge of
consumers' self-concept to tailor advertising messages, product positioning, and branding
strategies to resonate with consumers' self-perceptions, aspirations, and social identities. By
appealing to consumers' actual, ideal, social, ideal social and expected self-images, marketers can
create meaningful connections and enhance brand relevance and appeal.
CB Unit – 03
Personality
 Personality

◆ Meaning and nature

◆ Characteristics
◆ Stages in the development of
personality
◆ Personality influences and Consumer
Behavior
◆ VALS Model and its development

2
 What is Personality ?
Patterns of individual behavior which are consistent
and enduring. An Individual’s personality also
represents a set of characteristics which will help to
understand consumer behavior better.
Understanding personality characteristics provide
valuable guidelines to marketers.

3
 Characteristics of Personality
1. Personality will reflect individual differences
2. It is consistent and enduring
3. Personality can change

4
 “

The personality of Boost is distinctly sporty and energetic reflecting

the personality characteristics of its consumers- children.

5
 Stages in the development of Personality

1. Self Awareness
2. Psychological and
emotional
intelligence
3. Attitude
4. Behavior modification
5. Self motivation

6
 Big concept
Theories of Personality

7
 a) Cardinal dispositions: such traits have
TRAIT Theory overriding and overwhelming influence on
(Allport’s /Cattell’s/Eyesenck’s) the behavior of a person in that they
manifest themselves in all that a person
does and guides the behavior of that
Allport mentioned two types of traits ; common person
traits and personal traits. b) b) Central dispositions: This is found in
Common Traits – are the traits found in the all persons and one can have 5 to 10
majority of persons living in a society or central dispositions. the traits of honesty,
culture. punctuality, parsimony, cleanliness and
generosity etc.
Personal Traits – This refers to the unique
characteristics of a person and not shared by c) c) Secondary dispositions: These traits of
other members of the society or community or a person are less consistent, less explicit
culture. Such a personal trait is not comparable and less meaningful for the person and
with those of others in that culture hence are called secondary traits. These
traits are of not much help in explaining
Allport further divided personal traits into three the personality. For example, hair style,
subcategories dressing sense, eating pattern or
preferences etc

8
 Cattell’s 16 factor Personality theory
Personality Factors Measured by the 16PF Questionnaire
Factor Low Score High Score

Warmth Reserved, detached Outgoing, supportive

Intellect Concrete thinker Analytical

Emotional stability Moody, irritable Stable, calm

◆ In an effort to make the list of traits more Aggressiveness Docile, submissive Controlling, dominant

manageable, Raymond Cattell (1946, 1957) Liveliness Somber, prudent Adventurous, spontaneous

narrowed down the list to about 171 traits. Dutifulness Unreliable Conscientious

However, saying that a trait is either Social assertiveness Shy, restrained Uninhibited, bold

present or absent does not accurately Sensitivity Tough-minded Sensitive, caring

reflect a person’s uniqueness, because all Paranoia Trusting Suspicious

of our personalities are actually made up Abstractness Conventional Imaginative

of the same traits; we differ only in the Introversion Open, straightforward Private, shrewd
degree to which each trait is expressed. Anxiety Confident Apprehensive
Cattell (1957) identified 16 factors. Openmindedness Closeminded, traditional Curious, experimental

◆ He developed a personality assessment Independence Outgoing, social Self-sufficient

based on these 16 factors, called the 16PF. Perfectionism Disorganized, casual Organized, precise

Instead of a trait being present or absent, Tension Relaxed Stressed

each dimension is scored over a

continuum, from high to low
9
 While Cattell’s 16 factors may be too
TRAIT Theory broad, the Eysenck’s two-factor system
has been criticized for being too narrow.
(Allport’s /Cattell’s/Eysenck’s) Another personality theory, called the Five
Factor Model.

◆ Eysenck’s Three Factor Theory.

10
 Pychoanalytic or Freudian Theory

Blue
Is the colour of the clear
sky and the deep sea. It is
located between violet and
green on the optical
spectrum.

11
 Pychoanalytic or Freudian Theory & Consumer Behavior

The function of the ego is

Ads that signal to The “superego“, representing
based on the reality principle
consumers that their consumers’ conscience, tells
The ego is the largely
products will make them us what we ought to do. It
conscious controller or
look more attractive and has or best interest in mind
decision-maker of personality.
appear more desirable and seeks to counter the
The ego serves as the
speak directly to the “id“. allure and seduction of the
intermediary between the
Consumers’ are drawn to the “id”. Advertisements
desires of the id and the
gratification, or “pleasure appealing to our rational and
constraints of society
principle” these kinds of balanced sensibilities
contained in the superego. We
advertisements represent. include health food, self-care,
may wish to scream, yell, or hit,
Product categories geared charitable donations, and
and yet our ego normally tells
towards maximum pleasure PSA’s such as anti-smoking
us to wait, reflect, and choose
are desirable results include campaigns.
a more appropriate response.
clothing, cigarettes, cars,
makeup, and perfume.
12
Thank You