CONSUMER BEHAVIOUR

(BBA-SEM-6)
 Course Content
Unit 1 Introduction to Consumer Behaviour (20%)
 Nature and scope of consumer behaviour
 Consumer Decision Making: four views of consumer decision making
Economic man, Cognitive man, Emotional man, Passive man
 Consumer Decision process, Factors influencing consumer decision making
process,
 Comprehensive models of consumer decision making: Nicosia Model,
Howard-Sheth model, Engel-Kollat-Blackwell model Sheth’s Family
decision making model.
Unit 2 Consumer Learning (20%)
 Element of learning process
 Types of Learning Process
 Classical Conditioning Theory
 Operant / Instrumental Conditioning Theory
 Cognitive Dissonance Theory
 Consumer Memory
Unit 3 Consumer Attitudes Models (20%)
 What are attitudes, Attitude formation
 Tri-component attitude model
 Multi-attribute model
Unit 4 Social Class and Culture (20%)
 Meaning of Social Stratification and Social Class, Nature of Social Class
Influences,
 Social Class Characteristics, Social Influence on Consumer Behaviour
 Culture (Definitions and Meanings) -Traditional and Changing Indian
Values, Sub Culture, Cross Cultural Marketing Analysis
Unit 5 Diffusion of Innovation (20%)
 Diffusion of Innovations: The diffusion process, the adoption process, a
profile of the consumer innovator
 1

UNIT: 1: INTRODUCTION TO
CONSUMER BEHAVIOUR (20%)

 NATURE AND SCOPE OF CONSUMER BEHAVIOUR.

1. Understanding Needs and Wants: Consumer behavior starts with

understanding the difference between needs (essential items like food and
shelter) and wants (non-essential items like luxury cars and vacations). People
make buying decisions based on a mix of both, and companies study these
patterns to tailor products and services that meet specific needs and appeal to
desires.
2. Psychological Influences: Buying decisions are deeply affected by
psychological factors such as perception, motivation, beliefs, and attitudes.
For instance, people might perceive a well-known brand as high quality.
Understanding these psychological aspects helps businesses design marketing
strategies that attract customers and encourage them to choose their products
over competitors'.
3. Cultural and Social Influences: A person’s culture, family background,
social class, and peer groups heavily influence their purchasing behavior. For
example, certain foods or clothing styles are more popular in specific cultures.
Companies analyze these cultural and social factors to market products in
ways that feel familiar and appealing to different audiences.
4. Economic Influence and Spending Power: The financial situation of
consumers plays a huge role in their buying decisions. People with higher
incomes may buy luxury items, while those with limited budgets focus on
essentials. Businesses study consumer income levels to offer products at
different price points and to target their advertising accordingly.
5. Impact of Lifestyle and Personality: Individual lifestyle choices (such as
health-consciousness or adventurousness) and personality traits (such as
introversion or extroversion) influence what people buy. For instance, an eco-
conscious person may prefer sustainable products. Companies use this
information to create products and marketing messages that resonate with
different lifestyles and personalities.
6. Decision-Making Process: Consumer behavior also includes understanding
how people make buying decisions, which involves steps like recognizing a
 2

need, searching for information, evaluating options, making the purchase, and
reflecting on it afterward. Businesses analyze this decision-making process to
identify points where they can influence customers’ choices, such as offering
product comparisons or special deals.
7. Influence of Marketing and Advertising: Advertising, promotions, and
branding play a major role in shaping consumer perceptions and choices. A
well-executed ad can create strong emotional connections, making people
more likely to buy. Consumer behavior studies help companies understand the
effectiveness of their marketing strategies and adjust them to better meet
customer expectations.
8. Adapting to Technological Changes: With the rise of online shopping, social
media, and digital reviews, the way consumers behave and make decisions has
evolved. Companies must understand how these technological advancements
affect consumer preferences and buying habits. For instance, online reviews
now greatly influence buying choices, so businesses closely monitor and
engage with their customers online.

Overall, the scope of consumer behavior is vast—it includes anything that can
impact why and how people make purchasing decisions. By studying these areas,
businesses can better meet the needs of their customers, create appealing
products, and improve their marketing strategies to build stronger customer
relationships.

 CONSUMER DECISION MAKING: FOUR VIEWS OF CONSUMER

DECISION MAKING ECONOMIC MAN, COGNITIVE MAN,
EMOTIONAL MAN, PASSIVE MAN.

1. Economic Man:

The Economic Man is characterized by a logical and rational approach to

decision-making, motivated by the desire to maximize utility and minimize costs.
They analyze options thoroughly, focusing on measurable factors like price,
quality, and longevity of the product. This consumer conducts research, compares
alternatives, and makes calculated decisions based solely on what provides the
best financial return.

Example: When purchasing a new refrigerator, the Economic Man compares

different models based on energy efficiency ratings, initial cost, warranty, and
long-term maintenance expenses. They may find that a slightly more expensive
 3

model has higher energy efficiency, leading to savings on electricity bills over
time, thus choosing the model that offers the best overall value.

2. Cognitive Man:

The Cognitive Man engages in a complex thought process when making

decisions. This consumer actively seeks out information, considers various
factors, and employs reasoning to arrive at a conclusion. They recognize their
needs and gather data to inform their choices, weighing both logical analysis and
personal preferences. The decision-making process can involve stages such as
problem recognition, information search, evaluation of alternatives, and post-
purchase reflection.

Example: A person looking to buy a new laptop starts by identifying their need
for better performance. They research various brands, read online reviews, and
visit stores to test the laptops. After gathering information on specifications like
battery life and price, they carefully compare the models and choose one that
balances their requirements with their budget.

3. Emotional Man:

The Emotional Man emphasizes the role of feelings and emotions in decision-
making. This consumer often makes choices based on how a product makes them
feel rather than on logical analysis. Emotions such as happiness, nostalgia, fear,
or excitement can significantly influence purchasing behavior. The Emotional
Man might be swayed by advertising that taps into these feelings, making
decisions that fulfill emotional needs or desires.

Example: If someone sees a commercial for a luxury car that highlights its sleek
design and the sense of freedom it brings, they may feel excited and aspirational.
Even if they currently don’t need a new car, the Emotional Man might decide to
visit a dealership and take a test drive, driven by the thrill of the car and the
lifestyle it represents.

4. Passive Man:

The Passive Man views consumers as more reactive than proactive. This type
tends to be influenced heavily by external factors such as advertising, peer
pressure, or social norms rather than actively making informed decisions. They
 4

might follow trends or make purchases based on what others are buying, often
without deeply considering their own preferences or needs. The Passive Man may
be less engaged in the decision-making process.

Example: A college student notices many friends have the latest smartphone
model. Rather than researching other options or considering whether they need a
new phone, the Passive Man decides to purchase the same model because it’s
popular and everyone else seems to have it, influenced by social pressure and the
desire to fit in.

These views illustrate how different factors can drive consumer decision-making,
helping businesses tailor their marketing strategies effectively.

 CONSUMER DECISION PROCESS.

The consumer decision process refers to the series of steps that individuals go
through when they decide to purchase a product or service. This process helps
marketers understand how consumers think, feel, and behave when making
choices.

1. Problem Recognition

The first step in the consumer decision process is when a person realizes they
have a need or a problem. This could be anything from wanting a new gadget to
replacing a worn-out item. Problem recognition can come from personal feelings,
like hunger or dissatisfaction, or from outside influences like advertisements or
recommendations from friends.

Example: Imagine a college student whose laptop is really slow. They get
frustrated while trying to work on assignments and realize they need a new laptop
that works better for their studies.

2. Information Search

Once they recognize the problem, the consumer starts looking for information to
help solve it. This can be done in two ways: internally, by thinking about past
experiences, or externally, by researching online or asking others. This stage is
important because the information gathered will guide their decision-making.
 5

Example: After deciding they need a new laptop, the student goes online to
research different models. They read reviews, compare prices on various
websites, and ask friends for recommendations on what laptops they like and
why.

3. Evaluation of Alternatives

Next, the consumer evaluates the options they found during their search. They
compare different products based on various factors like price, features, quality,
and brand reputation. This might involve making lists of what they like and
dislike about each option, helping them figure out which one is the best fit.

Example: The student narrows their choices down to three laptops: a cheaper one,
a mid-range one with solid reviews, and a high-end model. They look at things
like processing speed, battery life, and storage capacity. They think about which
features are most important for their schoolwork and budget.

4. Purchase Decision

After weighing the options, the consumer decides which product to buy. This
decision can be influenced by additional factors, like sales promotions, peer
pressure, or the availability of the product. Sometimes, even though they may
have a favourite choice, something like a limited-time discount can seal the deal.

Example: The student decides to buy the mid-range laptop because it has the right
features and is affordable. They notice there’s a special discount at the store,
which encourages them to make the purchase. They feel good about their choice,
believing it will meet their needs.

5. Post-Purchase Evaluation

The final stage is when the consumer reflects on their purchase. They consider
whether the product meets their expectations and whether they are satisfied with
it. This evaluation can affect their future decisions; if they’re happy, they might
tell others and return for more purchases. If they’re disappointed, they might
regret their choice and share their negative experience.

Example: After using the new laptop for a few weeks, the student evaluates how
well it works. If it runs smoothly and helps them get their work done more
efficiently, they’ll feel satisfied and might recommend it to friends. However, if
 6

they face issues, like the laptop crashing frequently, they might regret their
purchase and think twice about buying from that brand again in the future.

Understanding this consumer decision process helps businesses connect with

customers more effectively. By providing the right information and support at
each step, companies can enhance the shopping experience and build loyalty
among their customers.

 FACTORS INFLUENCING CONSUMER DECISION MAKING

PROCESS.

The consumer decision-making process is influenced by various factors that

shape how individuals make purchasing choices:

1. Psychological Factors

These factors include the mental and emotional influences that affect how
consumers perceive products and make decisions. Key psychological factors are
motivation, perception, beliefs, and attitudes.

 Motivation: This is the driving force behind a consumer's desire to fulfill a

need. For example, a person might be motivated to buy a gym membership to
improve their health.
 Perception: How consumers interpret information can influence their
decisions. For instance, if a consumer sees a product advertised as "eco-
friendly," they may perceive it as better for the environment and be more
inclined to purchase it.
 Beliefs and Attitudes: Consumers hold beliefs about products based on their
experiences or the information they receive. Positive attitudes toward a brand
can lead to loyalty, while negative experiences can deter future purchases.

2. Social Factors

Social influences play a significant role in shaping consumer behavior. These

factors include family, friends, social status, and cultural norms.

 Family: Family members often impact buying decisions. For example, a

parent may choose a family car based on the needs and preferences of their
children.
 7

 Friends and Peers: Recommendations from friends can strongly influence

decisions. If a friend raves about a particular restaurant, others may be more
likely to try it.
 Cultural Norms: Different cultures have varying values and preferences that
influence what products are popular. For example, some cultures may
prioritize organic food, while others might focus on convenience.

3. Economic Factors

Economic conditions significantly affect consumer purchasing decisions. These

factors include personal income, economic trends, and overall economic stability.

 Personal Income: A consumer’s disposable income dictates what they can

afford. For instance, if someone gets a raise, they might decide to splurge on
a luxury item they wouldn’t have considered before.
 Economic Trends: During a recession, consumers might cut back on
spending and prioritize necessities over luxury items, while in a booming
economy, they may feel more confident and willing to spend.

4. Technological Factors

Technology impacts how consumers gather information and make purchases. The
rise of e-commerce, social media, and mobile apps has transformed consumer
behavior.

 Online Research: Consumers often research products online before buying.

They may read reviews, compare prices, and check social media for
recommendations.
 Convenience of Online Shopping: The ability to shop from home and have
products delivered has made it easier for consumers to make purchases, often
influencing their decision to buy.

5. Environmental Factors

These include the external conditions and influences that affect consumer
choices. Environmental factors can be broad, ranging from physical environments
to regulatory conditions.
 8

 Retail Environment: The layout and ambiance of a store can affect

purchasing decisions. A clean, well-organized store may make shoppers feel
comfortable and more likely to buy.
 Promotions and Discounts: Sales, special offers, and advertising can
influence decisions. For instance, a limited-time discount might encourage a
consumer to purchase an item they’ve been considering.

6. Personal Factors

Individual characteristics of consumers play a crucial role in decision-making.

These factors include age, gender, lifestyle, personality, and personal preferences.

 Age and Gender: Different age groups and genders often have different
preferences and purchasing habits. For example, younger consumers may
prefer trendy clothing, while older consumers may prioritize comfort.
 Lifestyle: A person’s lifestyle choices, such as being health-conscious or
environmentally friendly, can significantly impact their purchasing decisions.
Someone who prioritizes fitness may choose organic products or gym
memberships.

7. Situational Factors

Situational factors refer to the specific context in which a purchasing decision is

made. These can include time constraints, physical surroundings, and the purpose
of the purchase.

 Time Pressure: If a consumer is in a rush, they might opt for a quick purchase
rather than spending time comparing options.
 Buying Occasion: The reason for the purchase can influence decisions. For
example, buying a gift for a friend may prompt a consumer to choose
something more thoughtful or expensive than if they were buying for
themselves.

Understanding these factors can help businesses tailor their marketing strategies
and better meet the needs of consumers. By addressing the various influences that
impact decision-making, companies can create more effective campaigns and
improve customer satisfaction.
 9

 COMPREHENSIVE MODELS OF CONSUMER DECISION

MAKING:

NICOSIA MODEL

The Nicosia Model of Consumer Behavior is a framework developed by

Francesco Nicosia in the 1960s to describe the process of how consumers make
decisions. This model emphasizes the interaction between the consumer and the
marketing environment, outlining how various factors influence consumer
behavior. It consists of four major components or stages that illustrate the
consumer decision-making process. Here’s a breakdown of the Nicosia Model in
human language:

1. The Consumer’s Characteristics

This stage involves understanding the consumer's personal attributes, such as

their needs, preferences, attitudes, and motivations. These characteristics shape
how consumers perceive products and how they respond to marketing efforts.
 10

 Example: If a consumer is health-conscious, they might prioritize buying

organic foods or fitness-related products. Their desire for a healthy lifestyle
influences their purchasing decisions.

2. The Information Processing Stage

In this stage, the consumer becomes aware of a product or service and begins to
gather information about it. This includes both internal information (previous
experiences) and external information (advertising, reviews, recommendations).

 Example: A consumer who sees an advertisement for a new smartwatch may

start looking up online reviews, comparing features, and asking friends for
their opinions. This information helps them understand whether the product
meets their needs.

3. The Evaluation of Alternatives

Once the consumer has gathered information, they evaluate different options
based on their preferences and criteria, such as price, quality, and brand
reputation. This evaluation helps them narrow down their choices.

 Example: After researching smartwatches, the consumer compares two

models based on features like battery life, compatibility with their smartphone,
and price. They weigh the pros and cons of each option before making a
decision.

4. The Purchase Decision

In this final stage, the consumer makes a decision to buy a product or service
based on their evaluations. This decision can be influenced by external factors
such as promotions, peer pressure, or situational contexts.

 Example: The consumer decides to purchase the smartwatch that offers the
best features for their needs and is currently on sale. Their decision is
influenced by the positive reviews they read and the discount they received at
the store.
 11

Additional Aspects of the Nicosia Model

 Feedback Loop: After the purchase, the consumer’s experience with the
product leads to feedback, which can influence future purchasing decisions
and behaviors. For instance, if the smartwatch works well and meets their
expectations, they may become a loyal customer of that brand.
 Influence of the Marketing Environment: The model highlights how
external factors, such as advertising, social influences, and market conditions,
can impact each stage of the decision-making process. For example, an
effective marketing campaign can create awareness and interest, leading to
increased sales.

Importance of the Nicosia Model

The Nicosia Model provides a comprehensive understanding of consumer

behavior by considering the interplay between individual characteristics and the
marketing environment. It emphasizes that consumer decisions are not made in
isolation; instead, they are influenced by a variety of factors that marketers need
to understand to effectively reach and engage their target audience.

By analyzing this model, businesses can develop more targeted marketing

strategies, improve customer relationships, and ultimately enhance their sales
performance
 12

HOWARD-SHETH MODEL
 13

The Howard-Sheth Model of Consumer Behavior is a comprehensive framework

developed by John Howard and Jagdish Sheth in the 1960s. This model aims to
explain how consumers make purchasing decisions by considering a variety of
factors, including psychological, social, and environmental influences. It outlines
the decision-making process and highlights the interrelationships among various
elements that affect consumer behavior. Here’s a detailed breakdown of the
Howard-Sheth Model in relatable language:

Components of the Howard-Sheth Model

1. Input Variables: These are the external factors that influence consumer
behavior and decision-making. They can be classified into three main
categories:

 Marketing Mix: This includes the four Ps: Product, Price, Place, and
Promotion. These elements determine how consumers perceive a brand and
influence their purchasing decisions.
 Social Influences: This category encompasses family, friends, social groups,
and cultural norms. The opinions and behaviors of others can significantly
shape a consumer’s choices.
 Environmental Factors: These refer to the broader context in which
consumers operate, including economic conditions, technological
advancements, and competitive market conditions.

Example: A consumer might be influenced to buy a specific brand of smartphone

because of a friend's recommendation, attractive advertisements, and positive
reviews they found online.

2. Process Variables: This component focuses on the internal cognitive

processes that consumers go through when making decisions. It consists of
several stages:

 Need Recognition: The consumer identifies a need or problem that requires a

solution, which triggers the decision-making process.
 Information Search: Consumers seek out information about products or
services that could satisfy their needs. This involves both internal (past
experiences) and external (advertising, reviews) searches.
 Evaluation of Alternatives: After gathering information, consumers compare
different options based on various criteria, such as features, price, and brand
reputation.
 Purchase Decision: This is the stage where the consumer decides to buy a
particular product or service after weighing their options.
 14

Example: A consumer realizes they need a new laptop (need recognition),

researches different models online and visits stores (information search),
compares the pros and cons of each model (evaluation of alternatives), and finally
decides to purchase one based on their findings (purchase decision).

3. Output Variables: These represent the final outcomes of the consumer

decision-making process. They can include:

 Consumer Satisfaction: After using the product, the consumer evaluates their
experience. If the product meets or exceeds their expectations, they are likely
to be satisfied.
 Post-Purchase Behavior: This includes actions taken after the purchase, such
as sharing their experience with others, writing reviews, or becoming a loyal
customer of the brand.

Example: After purchasing the laptop, if the consumer finds it meets their needs
well, they may share their positive experience on social media, recommend the
product to friends, and consider purchasing from the same brand in the future.

Additional Elements of the Howard-Sheth Model

 Psychological Constructs: The model acknowledges the role of individual

psychological factors such as motivation, perception, learning, beliefs, and
attitudes. These factors influence how consumers process information and
make decisions.
 Behavioral Intentions: The model also considers the intentions behind
consumer behavior. For example, a consumer's intention to buy a product can
be influenced by their previous experiences, marketing communications, and
social influences.

Importance of the Howard-Sheth Model

The Howard-Sheth Model is significant because it provides a holistic view of the

consumer decision-making process. It emphasizes that consumer behavior is not
just a straightforward path but is influenced by a myriad of factors that interact
with each other. By understanding this model, marketers can develop more
effective strategies to reach their target audiences, enhance customer satisfaction,
and build long-term brand loyalty.

In summary, the Howard-Sheth Model offers valuable insights into the

complexities of consumer behavior, helping businesses tailor their marketing
efforts to meet the diverse needs and preferences of consumers.
 15

ENGEL-KOLLAT-BLACKWELL MODEL
 16

The Engel-Kollat-Blackwell (EKB) Model of Consumer Behavior is a

comprehensive framework developed by James Engel, David Kollat, and Roger
Blackwell in the 1960s. This model seeks to explain the decision-making process
of consumers and highlights the various stages involved in making purchasing
decisions. It emphasizes the dynamic interaction between consumers and their
environment, considering both psychological and social factors that influence
behavior. Here’s a detailed breakdown of the EKB Model in relatable language:

Key Components of the Engel-Kollat-Blackwell Model

1. Input Variables: These are the external stimuli that influence consumer
behavior and decision-making. They can be categorized into three main
groups:

 Marketing Mix: This includes the four Ps: Product, Price, Place, and
Promotion. The way a product is marketed can significantly affect consumer
perceptions and choices.
 Social Influences: These include family, friends, social groups, and cultural
factors. The preferences and opinions of others can shape an individual’s
buying decisions.
 Environmental Factors: These encompass the broader context in which
consumers operate, including economic conditions, technological
advancements, and competitive dynamics.

Example: A consumer may be motivated to buy a new smartphone after seeing

an advertisement, hearing about it from friends, and noticing a promotional
discount.

2. Process Variables: This component focuses on the internal cognitive and

emotional processes that consumers go through when making decisions. It
includes several stages:

 Need Recognition: The process begins when a consumer identifies a need or

problem that requires a solution. This triggers the entire decision-making
process.
 Information Search: Once a need is recognized, consumers actively seek
information to help them make an informed choice. This includes internal
searches (reflecting on past experiences) and external searches (looking up
reviews, asking for recommendations, etc.).
 Evaluation of Alternatives: After gathering information, consumers evaluate
different options based on specific criteria such as features, quality, price, and
brand reputation. This helps them narrow down their choices.
 Purchase Decision: After evaluating alternatives, the consumer makes a final
decision to purchase a specific product or service. This decision can be
 17

influenced by additional factors like promotions, peer pressure, or personal

preferences.

Example: A consumer realizes they need a new laptop (need recognition),

researches online for different brands and models (information search),
compares features and prices (evaluation of alternatives), and ultimately
decides to buy the laptop that best meets their needs (purchase decision).

3. Output Variables: These represent the final outcomes of the consumer

decision-making process, which can include:

 Post-Purchase Evaluation: After the purchase, consumers assess their

satisfaction with the product. If their experience matches or exceeds their
expectations, they are likely to be satisfied.
 Consumer Behavior: This can include future buying behavior, loyalty to the
brand, and whether they share their experiences with others (either positive or
negative).

Example: After purchasing the laptop, if the consumer is happy with its
performance, they may recommend it to friends and consider buying from the
same brand in the future. If they are disappointed, they may share their
negative experience and look for alternatives next time.

Additional Elements of the EKB Model

 Psychological Factors: The model recognizes the role of individual

psychological aspects such as motivation, perception, attitudes, beliefs, and
learning. These factors affect how consumers process information and make
decisions.
 Behavioral Intentions: The EKB model also considers the intentions behind
consumer behavior. For example, a consumer's intent to purchase can be
shaped by their previous experiences, marketing efforts, and social influences.
 Feedback Loop: The model incorporates a feedback mechanism where the
post-purchase evaluation influences future decisions. Positive experiences can
lead to brand loyalty, while negative experiences can lead to avoidance of the
brand.

Importance of the Engel-Kollat-Blackwell Model

The Engel-Kollat-Blackwell Model is significant because it provides a structured

understanding of the consumer decision-making process. It highlights that
consumer behavior is complex and influenced by a variety of factors that interact
dynamically.
 18

By understanding this model, marketers can better design their strategies to

address consumer needs, improve customer satisfaction, and build lasting
relationships with their audience. It emphasizes the importance of providing
valuable information and positive experiences at every stage of the consumer
journey, ultimately driving brand loyalty and repeat purchases.

SHETH’S FAMILY DECISION MAKING MODEL

Sheth’s Family Decision-Making Model, developed by Jagdish Sheth in the

1970s, focuses on how family dynamics influence consumer behavior and
decision-making processes. Unlike traditional consumer behavior models that
often emphasize individual decision-making, Sheth’s model recognizes that
families often act as a unit when making purchasing decisions. The model
highlights the roles of different family members and how their interactions shape
the decision-making process. Here’s a detailed breakdown of Sheth’s Family
Decision-Making Model in relatable language:
 19

Key Components of Sheth’s Family Decision-Making Model

1. Family Roles: In a family setting, different members often take on specific

roles that influence how decisions are made. The key roles include:

 Initiator: The family member who first recognizes a need or identifies a

problem that requires a purchase.
 Influencer: Individuals who provide information and advice, shaping the
opinions and preferences of others in the family.
 Decider: The person who ultimately makes the final decision regarding the
purchase.
 Buyer: The family member who physically makes the purchase.
 User: The individual who will use the product or service.

Example: In a family looking to buy a new car, a parent might be the initiator
(recognizing the need for a larger vehicle), while the children might influence the
decision by expressing their preferences for features. One parent might take the
role of the decider, while another handles the purchase.

2. Decision-Making Process: The model outlines a structured decision-making

process that families typically follow, which includes several stages:

 Problem Recognition: The process begins when a family member identifies

a need or a problem that requires a solution (e.g., the old car is breaking down).
 Information Search: Family members gather information about possible
solutions, including discussing options, researching online, and visiting
dealerships.
 Evaluation of Alternatives: The family evaluates different products or
services based on criteria such as price, features, and brand reputation. This
often involves discussions among family members to weigh the pros and cons
of each option.
 Purchase Decision: The family reaches a consensus or agreement on the best
option and makes the final purchase.
 Post-Purchase Evaluation: After the purchase, the family assesses their
satisfaction with the product. This evaluation can influence future decisions
and discussions about brand loyalty.

Example: After discussing their options for a new car, the family may decide on
a particular model that fits their needs and budget, leading to a collective
agreement on the purchase.

3. Influencing Factors: Sheth’s model recognizes that several factors can

influence family decision-making, including:
 20

 Family Size and Structure: The dynamics of the family (e.g., number of
children, presence of extended family) can impact how decisions are made.
Larger families may require more discussion and negotiation.
 Socioeconomic Status: The family's financial situation can determine what
options are available and influence preferences.
 Cultural and Social Influences: Family values, traditions, and cultural norms
can shape preferences and priorities when making decisions.
 Communication Patterns: How family members communicate and interact
can significantly affect the decision-making process. Open communication
can lead to better understanding and consensus.

Importance of Sheth’s Family Decision-Making Model

Sheth’s Family Decision-Making Model is significant because it emphasizes the

collective nature of consumer behavior within families. It acknowledges that
purchasing decisions are often not made in isolation; rather, they are the result of
collaborative discussions and negotiations among family members.

Understanding this model is crucial for marketers and businesses because it helps
them recognize the complexities of family dynamics when targeting their
products or services. By tailoring marketing strategies to address the roles and
influences within families, companies can better engage their audiences and cater
to their needs.

In summary, Sheth’s Family Decision-Making Model provides valuable insights

into how families make purchasing decisions, highlighting the importance of
collaboration and communication in the consumer behavior process.
 1

UNIT: 2: CONSUMER LEARNING (20%)

 ELEMENT OF CONSUMER LEARNING PROCESS.

Consumer learning is the process by which individuals acquire knowledge, skills,

attitudes, and experiences that help them make informed choices and decisions in
the marketplace. This learning process involves the ways in which consumers
gather information, interpret it, and use it to develop preferences and make
purchasing decisions.

Elements of the consumer learning process:

1. Motivation

 Motivation is the driving force that encourages consumers to take action to

fulfill their needs and desires. It can be influenced by factors such as physical
needs (hunger, thirst), social needs (belonging, esteem), or personal goals
(self-improvement).
 For example, a person may be motivated to buy a new phone because they
want to stay connected with friends, or because they desire the latest
technology.

2. Cues

 Cues are the external stimuli or triggers that capture the consumer’s attention
and lead them towards a particular response or action. They can come from
various sources such as advertisements, word-of-mouth recommendations, or
in-store promotions.
 For instance, a consumer might see an ad for a gym membership, which serves
as a cue to consider joining because of their interest in health and fitness.

3. Response

 Response is the action or behavior taken by the consumer based on motivation

and cues. It could be an actual purchase, trying a product, or simply looking
for more information.
 2

 If someone sees a discount on a product they want, their response might be to

buy it immediately, or they may decide to wait and compare options.

4. Reinforcement

 Reinforcement is the positive or negative feedback that consumers

experience after making a purchase or taking an action. Positive
reinforcement, such as satisfaction with a product, encourages the consumer
to repeat the behavior, while negative reinforcement might discourage it.
 For example, if a consumer buys a skincare product and it improves their skin,
they are more likely to buy it again. If it causes irritation, they may avoid it in
the future.

5. Retention

 Retention involves storing the learned information in memory. Consumers

retain experiences and knowledge, which affects their future behavior and
purchasing decisions.
 For instance, if a consumer remembers that a particular brand offers great
customer service, they might be more likely to consider it in future purchases.

6. Perception

 Perception is the process through which consumers interpret and make sense
of the information they encounter. It is influenced by their previous
experiences, beliefs, and attitudes, which shape how they view products,
brands, and marketing messages.
 For instance, two consumers might see the same advertisement but interpret it
differently based on their past experiences. One may view it positively and
feel encouraged to buy, while the other may be indifferent or even turned off
by it.

7. Memory

 Memory is the long-term storage of information related to products, brands,

and past experiences. It helps consumers recall previous interactions and
guides future decision-making.
 3

 For example, a consumer might remember a brand for its reliability based on
a good past experience, leading them to choose it over competitors when
making a new purchase.

Together, these elements create a cycle that shapes consumer behavior over time.
This cycle enables consumers to learn from their experiences and refine their
choices, making them more knowledgeable and selective in their decision-
making processes.

 TYPES OF CONSUMER LEARNING PROCESS.

1. Cognitive Learning

 Cognitive learning focuses on mental processes like thinking, understanding,

and reasoning. In this type of learning, consumers actively process
information and use it to make informed decisions.
 For instance, when someone reads reviews and compares features of two
smartphones before buying one, they are engaging in cognitive learning.
They’re using their reasoning skills to weigh pros and cons.

2. Classical Conditioning

 Classical conditioning happens when a consumer links two stimuli and forms
a connection between them, leading to automatic responses. This process is
often used in advertising to associate positive feelings with a product or brand.
 For example, if a brand always uses happy, upbeat music in its commercials,
consumers might start associating that brand with happiness. Over time, just
seeing the brand’s logo could make them feel good, even without the music.

3. Operant Conditioning

 Operant conditioning is learning through rewards and punishments, where

behaviors that lead to positive outcomes are repeated, while those with
negative outcomes are avoided. This type of learning reinforces certain
behaviors over time.
 For instance, if a consumer buys a product and has a great experience (positive
reinforcement), they’re likely to buy it again. If they have a bad experience
(negative reinforcement), they may avoid that brand in the future.
 4

4. Observational Learning (or Modeling)

 Observational learning occurs when consumers learn by watching the

behaviors of others, especially influential figures like friends, family, or
celebrities. It’s also called modeling because people “model” their actions
after others.
 For example, if a person sees a friend rave about a new skincare product, they
may be inclined to try it themselves, learning from the friend’s experience.

5. Incidental Learning

 Incidental learning is unintentional or passive learning that happens without

any conscious effort from the consumer. People might pick up brand names,
product benefits, or even marketing messages simply by being exposed to
them repeatedly.
 For instance, if a consumer sees a brand’s logo on billboards, social media,
and products around them, they may start recognizing it and even developing
opinions about it, even if they didn’t actively try to learn about the brand.

6. Experiential Learning

 Experiential learning is learning through direct experience with a product or

service. This type of learning allows consumers to gather hands-on
knowledge, which can create strong memories and influence future decisions.
 For example, a consumer who test-drives a car or tries a food sample at a store
gains first-hand experience. This direct interaction helps them form opinions
about the product, making them more likely to buy it if the experience is
positive.

7. Vicarious Learning

 Vicarious learning involves learning indirectly through observing the

experiences and outcomes of others, especially those that resonate with them
personally. Unlike observational learning, which involves imitating behaviors,
vicarious learning emphasizes understanding results and outcomes based on
others' experiences.
 For instance, a consumer might read customer testimonials or watch reviews
of a product to understand how it performs without having to try it themselves.
 5

By learning about others' experiences, they can decide if the product meets
their own needs and expectations.

These types of learning work together, helping consumers build knowledge and
experiences that shape their preferences, buying habits, and loyalty to certain
brands or products.

 CLASSICAL CONDITIONING THEORY OF CONSUMER

LEARNING.
The Classical Conditioning Theory in consumer learning explains how brands
and marketers use associations to create positive feelings about a product, making
it more appealing and memorable to consumers. This theory, first introduced by
psychologist Ivan Pavlov, is all about building a connection between two things
so that one triggers a reaction naturally associated with the other.

In marketing, this approach is used to associate positive feelings or emotions with

a brand or product so that consumers develop a favourable reaction to it. Here’s
how it works:

1. Unconditioned Stimulus (US): This is something that naturally causes a

positive response, like a pleasant song or beautiful visuals.
2. Conditioned Stimulus (CS): This is the brand or product that the marketer
wants consumers to associate with those positive feelings.
3. Conditioned Response (CR): Over time, the consumer begins to feel the
same positive emotion when they see the product or brand, even without the
original positive trigger (like the song or visual).

Example in Marketing: Imagine an ad where a soft drink brand shows people

enjoying the drink on a sunny beach, with upbeat music and happy faces. The
beach, sun, and music are the unconditioned stimuli that make people feel good
naturally. By repeatedly pairing this setting with the brand, consumers begin
associating the drink with fun, happiness, and relaxation. Eventually, just seeing
the brand’s logo can trigger those positive feelings, encouraging consumers to
buy the product.

Understanding Classical Conditioning Theory

In Pavlov's famous experiment, he discovered that he could train dogs to salivate

at the sound of a bell by repeatedly ringing the bell just before feeding them. The
 6

food naturally caused the dogs to salivate, but after pairing the bell with food
multiple times, the bell alone (without food) triggered the same response. In this
setup:

 The food was an unconditioned

stimulus (US) because it
naturally caused salivation.
 The bell became a conditioned
stimulus (CS) since it started
out as neutral but was later
associated with food.
 The salivation became a
conditioned response (CR),
triggered by the bell.

Marketers use this same technique by pairing their products with positive
feelings, emotions, or experiences that can trigger a favourable response in
consumers.
 7

Applying Classical Conditioning to Consumer Learning

When brands want consumers to feel positively about their product, they
associate it with pleasant elements, like enjoyable music, beautiful visuals, or
celebrity endorsements. Over time, this repeated pairing can make consumers feel
good about the product itself, even without those added elements.

Example of Classical Conditioning in Marketing

Consider a well-known soda company’s ad campaign. In their commercials:

 They show scenes of people having fun at a beach party, laughing, dancing,
and enjoying the sunshine.
 They use upbeat music and bright, happy visuals to evoke a positive mood.

In this setup:

 The happy scenes and music are the unconditioned stimuli (US) because they
naturally make people feel joyful.
 The soda brand is the conditioned stimulus (CS) because it is linked to these
positive elements in the ad.
 The feelings of joy and fun become the conditioned response (CR), which
people begin to associate with the brand.

After seeing these ads several times, consumers may start feeling a sense of joy
or relaxation just by seeing the soda brand’s logo, even if they’re not at a beach
party or hearing the music. This association makes them more likely to buy the
soda when they want to feel refreshed or have a good time.

Why This Works in Consumer Behaviour

Classical conditioning is effective because it taps into consumers' emotions and

instincts. When consumers develop positive associations with a product, they are
more likely to choose it, even if they don’t consciously realize why. This effect
can make a brand feel more familiar and desirable, leading to stronger brand
loyalty over time.

By using classical conditioning, marketers can shape consumers’ attitudes and

influence their decisions, making certain brands stand out in a competitive
marketplace.
 8

 OPERANT / INSTRUMENTAL CONDITIONING THEORY OF

CONSUMER LEARNING.

Operant Conditioning Theory in Consumer Behavior

Schiffman and Kanuk describe Operant Conditioning as a learning process

where behavior is influenced by the consequences following it. They explain that
unlike classical conditioning, which creates associations between two stimuli,
operant conditioning is driven by the reinforcement or punishment of specific
actions. This theory, inspired by B.F. Skinner’s work, is central to understanding
how consumer behaviors can be shaped by outcomes, such as rewards and
incentives.

Key Components of Operant Conditioning

According to Schiffman and Kanuk, operant conditioning in consumer behavior

includes:

1. Positive Reinforcement: This occurs when a behavior is rewarded,

encouraging consumers to repeat it. For instance, loyalty programs reward
customers with points or discounts, reinforcing the habit of shopping at a
particular store.
 9

2. Negative Reinforcement: In this scenario, an unpleasant condition is

removed as a reward. For example, waiving shipping fees for purchases over
a certain amount removes a “negative” cost, encouraging consumers to buy
more.
3. Punishment: If a behavior is followed by an unpleasant consequence,
consumers are less likely to repeat it. An example is applying restocking fees
on returns, which discourages frequent product returns.
4. Extinction: Schiffman and Kanuk explain that extinction occurs when the
connection between a consumer’s behavior and its positive outcome is broken.
For example, if a store discontinues its loyalty rewards program, customers
may feel less inclined to shop there frequently because they no longer receive
the points or discounts they previously enjoyed. Over time, this lack of
reinforcement can lead to a decrease in the frequency of their purchases, and
they may eventually switch to a competitor offering similar rewards.

Practical Application in Consumer Learning

Schiffman and Kanuk emphasize that operant conditioning is used extensively in

marketing to reinforce desired consumer behaviors and discourage undesirable
ones. For example:

 Loyalty Programs: Retailers use rewards to encourage repeat purchases.

Over time, consumers learn that shopping at specific stores benefits them,
making them more loyal.
 Sales Promotions and Discounts: Temporary discounts act as positive
reinforcement, enticing consumers to make purchases during promotional
periods.
 Trial and Free Samples: By offering free trials or samples, companies
encourage consumers to try products with minimal risk. If the experience is
positive, consumers are likely to buy the product later.

Significance in Consumer Behavior

In Consumer Behavior, Schiffman and Kanuk explain that operant conditioning

helps in shaping long-term consumer loyalty. When consumers receive positive
outcomes from their purchases, they are more likely to develop a habitual
preference for a brand or retailer. This learning model not only strengthens brand
loyalty but also helps companies create strategies to maintain and grow their
customer base.
 10

Example from Consumer Behavior

Consider a brand that uses a frequent-buyer program. Each time a customer

makes a purchase, they receive points. Once they accumulate enough points, they
get a reward, such as a free product or a discount. This positive reinforcement
increases the likelihood of repeat purchases, as consumers feel rewarded for their
loyalty. According to Schiffman and Kanuk, such strategies are effective because
they capitalize on the learned behavior of consumers to seek rewards.

In summary, Schiffman and Kanuk highlight operant conditioning as a core

element of consumer behavior, where positive reinforcement, negative
reinforcement, and punishment are all used by marketers to guide consumer
decisions and foster loyalty. This approach leverages the natural tendency of
consumers to repeat behaviors that result in rewarding experiences.

 COGNITIVE DISSONANCE THEORY OF CONSUMER LEARNING.

The Cognitive Dissonance Theory in consumer behavior is all about the

uncomfortable feeling consumers get when they have conflicting thoughts or
beliefs after making a purchase. Developed by psychologist Leon Festinger, this
theory suggests that when consumers experience a mismatch between their
expectations and the reality of a product or service, they feel discomfort, which
is called dissonance. Consumers naturally want to reduce this uncomfortable
feeling, so they take steps to make their choice feel more "right" to them.

Cognitive Dissonance in Consumer Behavior

In simple terms, cognitive dissonance happens when consumers feel unsure or

anxious about whether they made the right decision. This is most common after
making big purchases, like a new phone, car, or appliance, where they’ve invested
time and money. For example, if a person buys an expensive phone and then hears
mixed reviews or sees a cheaper model with similar features, they may start
questioning their decision. They might feel, “Did I waste money?” or “Was this
the right choice?” That doubt or regret is cognitive dissonance.
 11

How Consumers Deal with Cognitive Dissonance

To reduce this uncomfortable feeling, consumers may try to reassure themselves

in different ways:

1. Seeking Positive Information: Consumers might look for positive reviews

or information about the product they bought to reaffirm their choice.
2. Justifying the Purchase: They remind themselves of the reasons they made
the purchase, like emphasizing the unique features of the product or the deal
they got.
3. Ignoring Conflicting Information: Sometimes, they may avoid reading
negative reviews or comparing their purchase with other options to reduce
doubt.
4. Talking to Supportive People: Consumers may talk to friends or family who
can reassure them that they made a good choice.

Example of Cognitive Dissonance

Imagine a consumer who buys an expensive brand of running shoes, thinking

they’ll improve their performance and comfort. Later, they see a friend with a
different, cheaper pair that also looks comfortable and stylish. Now they might
feel dissonance, wondering, “Did I spend too much?” or “Did I buy the right
brand?” To resolve this, they might look up reviews praising their shoes, focus
 12

on how durable or well-designed they are, or remind themselves that they

deserved to treat themselves.

Why Cognitive Dissonance Matters in Marketing

Marketers are aware of cognitive dissonance and use various strategies to help
reduce it. This can include sending follow-up messages that reassure consumers
of their purchase decision, offering easy return policies, or providing additional
product information to highlight its value. By addressing dissonance, brands help
build consumer satisfaction and loyalty, making consumers feel more confident
in their purchases and more likely to buy from that brand again.

In essence, cognitive dissonance theory reveals that consumers are driven not
only by rational factors but also by an emotional need to feel good about their
decisions. Helping them through this post-purchase phase can create a more
positive and lasting relationship with the brand.

 CONSUMER MEMORY.

Consumer memory plays a crucial role in the consumer learning process. It

refers to the ability of consumers to store, retain, and retrieve information about
products, brands, and past experiences to make decisions and influence future
behavior. In consumer behavior, memory is the mental process that helps
individuals remember and make sense of what they've encountered in the
marketplace. It allows consumers to recall their preferences, attitudes, and past
purchases, guiding their future buying decisions.

How Consumer Memory Works

Memory in consumer learning is typically broken down into three stages:

1. Encoding: This is the process of taking in information and converting it into

a form that can be stored in memory. When consumers are exposed to
marketing messages, advertisements, or product experiences, they begin
encoding that information for later use. For instance, when you watch an
advertisement for a new smartphone, you’re encoding details about its
features, price, and benefits.
2. Storage: After information is encoded, it is stored in long-term memory. In
consumer behavior, this is where past experiences, brand associations, and
product details are kept. Information can be stored in various categories, such
as:
 13

 Semantic memory: General knowledge, like product categories (e.g.,

smartphones, shoes) and brand names.
 Episodic memory: Personal memories associated with specific events, like
the first time you bought a particular brand of shoes.

3. Retrieval: This is the process of recalling stored information when it’s

needed. When consumers go to make a purchase, they retrieve relevant
information from their memory such as past brand experiences,
advertisements they’ve seen, or product reviews they've read. The ability to
retrieve this information quickly helps them make informed decisions.

Types of Consumer Memory

1. Short-Term Memory: This is the temporary storage that holds information

for a brief period, usually a few seconds to a minute. It’s limited in capacity,
so only a small amount of information can be processed at one time. For
example, when you hear an ad jingle and remember it for a few minutes, that’s
your short-term memory at work.
2. Long-Term Memory: This is the more permanent storage of information.
Unlike short-term memory, long-term memory can hold vast amounts of data
for a long period. The more a consumer is exposed to a brand or product and
the more positive experiences they have with it, the stronger that information
becomes stored in their long-term memory. For example, you may remember
a brand you’ve trusted for years, and this memory influences future purchases.

Consumer Memory and Marketing

Marketers try to influence consumer memory to increase brand recall and foster
brand loyalty. Some strategies they use include:

1. Repetition: Repeating advertisements, slogans, or product names makes it

more likely that the consumer will remember the brand. For example, a catchy
jingle or tagline ("I’m Lovin’ It" for McDonald's) sticks in memory after
repeated exposure.
2. Emotion: Emotional experiences are more likely to be remembered. If a brand
can associate positive feelings (happiness, nostalgia, excitement) with its
product, it helps consumers remember the brand better. For example, Coca-
Cola’s holiday ads featuring family gatherings often trigger positive emotions
tied to the brand.
3. Distinctiveness: Unique or unusual information is more easily remembered.
For example, a brand might use an unexpected ad concept or an attention-
grabbing visual to make their message stand out in a consumer’s memory.
4. Association: Marketers often create links between their product and other
well-known symbols or positive experiences to make their brand easier to
 14

remember. For example, a brand might sponsor a major event or tie their
product to a celebrity, hoping to "attach" the positive memories and feelings
from that event to their product.

Example of Consumer Memory in Action

Think about a consumer who has been consistently exposed to a brand of

sportswear in ads that focus on athletic performance and style. Over time, this
consumer stores information about the brand in their memory—remembering the
sleek design, quality, and the athletes associated with it. When they need to buy
new workout clothes, they may automatically recall the brand and feel confident
in choosing it, based on their memory of past ads and positive associations.

In conclusion, consumer memory is central to how individuals learn about

products and brands, and how they make purchasing decisions. Understanding
how memory works helps marketers create more effective advertising and
branding strategies that tap into consumers’ recollections, influencing both their
immediate choices and their long-term loyalty to brands.
 1

UNIT: 3: CONSUMER ATTITUDES

MODELS (20%)

 WHAT ARE CONSUMER ATTITUDES?

Consumer attitudes refer to the overall evaluations, feelings, and

predispositions that consumers have toward a product, brand, service, or
company. These attitudes are shaped by a combination of beliefs, feelings, and
past experiences, and they significantly influence consumer behavior, such as
decision-making, purchase intentions, and brand loyalty.

 Cognitive Attitude: Reflects a consumer’s beliefs or knowledge about a

product, such as its features or benefits.
 Affective Attitude: Involves the emotional response or feelings a consumer
has towards a brand or product, like love, hate, or preference.
 Behavioral Attitude: Indicates a consumer’s intentions or actions towards
purchasing or using a product, often influenced by their cognitive and
affective attitudes.
 Positive Attitude: Consumers have a favorable view of a product or brand,
leading to higher chances of purchase.
 Negative Attitude: Consumers have an unfavorable perception, often
avoiding or rejecting the product or brand.
 Neutral Attitude: Consumers are indifferent, having no strong feelings or
opinions about the product or brand, leading to neither strong engagement nor
avoidance.
 Ambivalent Attitude: Consumers experience mixed feelings about a product
or brand, feeling both positive and negative emotions simultaneously, which
can lead to uncertainty in purchase decisions.

 CONSUMER ATTITUDE FORMATION.

Consumer attitude formation refers to the process by which consumers develop
their feelings, beliefs, and evaluations toward products, brands, services, or even
entire companies. Attitudes are important because they shape how consumers
think, feel, and behave, influencing their buying decisions, loyalty, and overall
perception of a brand. Understanding how these attitudes are formed can help
marketers create strategies to positively influence consumer behavior.
 2

1. Exposure: The First Encounter

 The journey of attitude formation begins when a consumer is exposed to a

brand or product for the first time. This exposure can happen in many ways,
such as through advertisements on TV, social media posts, a friend's
recommendation, or simply seeing the product on a store shelf.
 Why It Matters: Without exposure, consumers have no way of knowing a
product exists, so companies put a lot of effort into getting their products
noticed.
 Example: Imagine you're scrolling through Instagram and come across an ad
for a new type of running shoe. That’s your first exposure to the brand.

2. Attention: Capturing Interest

 Just because consumers are exposed to a product doesn’t mean they’ll pay
attention to it. The next step is attention—where the consumer actively
notices the product. In today’s world, where people are bombarded with ads
and information, grabbing attention is challenging.
 How Marketers Capture Attention: Marketers use bright colors, catchy
headlines, celebrity endorsements, and engaging content to stand out. They
aim to create something memorable that will make you stop and look.
 Example: That running shoe ad you saw had vibrant colors and featured a
famous athlete. It caught your eye, making you pause and watch.

3. Perception and Interpretation: Making Sense of What You See

 After capturing attention, the consumer moves to the stage of perception and
interpretation. This is where you start to process the information you’ve seen.
You begin to ask questions like, “What is this product about?” or “Is this
something I need?”
 How Perception Works: Your perception is influenced by your previous
knowledge, experiences, and even your current mood. For example, if you’ve
had good experiences with a particular brand in the past, you’re more likely
to view new products from that brand positively.
 Example: As you watch the running shoe ad, you realize that the brand claims
their shoes help improve performance and reduce injury. You start forming a
perception that these shoes might be high-quality and beneficial.

4. Learning and Memory: Storing Information

 Learning plays a crucial role in attitude formation. It’s about how consumers
absorb, process, and remember information about a product. This information
gets stored in your memory for future reference.
 3

 Classical Conditioning: Brands may use this method by associating their

product with something positive (like a happy family in a commercial).
Over time, you start to feel good about the brand, even if you’re not sure
why.
 Operant Conditioning: This involves rewards. For example, brands might
offer discounts or loyalty points to reinforce a positive attitude.
 Example: You’ve seen several ads from this shoe brand, read positive
reviews, and even heard a friend recommend it. All this information gets
stored in your memory, creating a positive learning experience.

5. Belief Formation: Building Opinions

 As you gather information, you begin to form beliefs about the product.
Beliefs are the cognitive (thinking) part of attitudes. They are what you
believe to be true about the product based on what you’ve learned.
 Types of Beliefs: These could be about the product’s quality, features, price,
or even the reputation of the brand. These beliefs can be either positive or
negative and significantly shape your overall attitude.
 Example: You’ve formed the belief that the running shoes are durable, stylish,
and worth the investment because of the positive information you’ve
encountered.

6. Emotional Response: How It Makes You Feel

 Affective (emotional) components also play a big role in attitude formation.

It’s not just about what you think; it’s also about how you feel. Marketers often
aim to trigger positive emotions, like happiness, excitement, or trust, through
their branding and advertising.
 Why Emotions Matter: Strong emotions can influence your attitude more
powerfully than facts alone. That’s why brands often use storytelling, music,
or visuals that evoke feelings.
 Example: The ad for the running shoes featured a story of overcoming
challenges and achieving success, which inspired you. Now, you feel
motivated and excited about the idea of buying those shoes.

7. Intention and Behavior: Making the Decision

 Once you have a set of beliefs and feelings, they influence your behavioral
intentions. This is where your attitude starts to translate into action, like
deciding to purchase the product.
 Purchase Intent: If your beliefs are positive and you feel good about the
product, you’re more likely to have the intention to buy it. Negative beliefs
and feelings, on the other hand, may lead you to avoid the product.
 4

 Example: You’ve decided that the running shoes align with your needs, so
you plan to visit the store or buy them online.

8. Feedback and Reinforcement: Evaluating the Experience

 After making a purchase and using the product, you’ll evaluate your
experience. This stage is about feedback and reinforcement. It’s where you
decide whether your beliefs and feelings were accurate.
 Positive Reinforcement: If you’re happy with the purchase, it reinforces
your positive attitude toward the brand, making you more likely to buy
from them again.
 Cognitive Dissonance: If the product didn’t meet your expectations, you
might experience buyer’s remorse, which can lead to a change in your
attitude.
 Example: You buy the running shoes and find them incredibly comfortable
and effective. This positive experience reinforces your good attitude toward
the brand, and you become a loyal customer.

Summary of the Process

1. Exposure → 2. Attention → 3. Perception and Interpretation → 4.

Learning and Memory → 5. Belief Formation → 6. Emotional Response
→ 7. Intention and Behavior → 8. Feedback and Reinforcement

By understanding this process, marketers can craft strategies to positively

influence each stage, ensuring that consumers form favorable attitudes toward
their products and brands, ultimately driving purchase decisions and brand
loyalty.

 TRI-COMPONENT ATTITUDE MODEL.

 5

The Tri-Component Attitude Model is a framework that explains how

consumer attitudes are formed and how they influence behavior. This model
breaks down attitudes into three components: Cognitive, Affective, and
Behavioral. These components interact with each other to shape the overall
attitude a consumer has towards a product, brand, or service. Let’s dive into each
component in detail, along with examples for better understanding.

1. Cognitive Component (Beliefs and Thoughts)

 The Cognitive Component refers to what a consumer believes or knows

about a product or brand. These beliefs are formed through knowledge,
experiences, advertisements, and word-of-mouth.
 What It Involves: This is the rational, thinking part of an attitude. It includes
facts, information, and perceptions that consumers hold. These beliefs may be
based on the product’s features, benefits, quality, price, or any other attribute.
 Example: Let’s say you’re considering buying a smartphone. Your cognitive
beliefs might include:

 “This phone has a 50MP camera.”

 “It comes with a long-lasting battery.”
 “The brand is known for its durability.”

 These beliefs are formed based on your research, reviews you’ve read, or
experiences shared by others.

2. Affective Component (Feelings and Emotions)

 The Affective Component refers to the emotional feelings or attitudes a

consumer has towards a product or brand. This part of the attitude is more
subjective and emotional. It can be influenced by personal experiences,
marketing messages, and emotional appeals.
 What It Involves: It’s about how a product makes you feel. Positive feelings
might include love, joy, and excitement, while negative feelings might include
dislike, fear, or indifference.
 Example: Continuing with the smartphone example, your feelings might be:

 “I love the sleek design of this phone; it feels premium.”

 “The brand makes me feel confident because it’s trendy and innovative.”
 “I feel happy when I use this phone because it’s user-friendly.”

 These emotions can be influenced by advertisements that use beautiful visuals,

inspiring music, or celebrity endorsements to create a positive emotional
connection.
 6

3. Behavioral Component (Actions and Intentions)

 The Behavioral Component refers to the actions or intentions a consumer

has based on their attitude. It’s about how likely a consumer is to buy, use, or
recommend the product. This component focuses on the actual behavior or the
intention to behave in a certain way.
 What It Involves: It includes your purchase decisions, loyalty to a brand, and
recommendations to others. The behavioral component is usually the result of
the cognitive and affective components combined.
 Example: Based on your beliefs and feelings about the smartphone, you may
decide to:

 “I will buy this phone during the next sale.”

 “I’m going to recommend this phone to my friends because I believe it’s
worth the price.”
 “I will switch to this brand because I’m impressed with their latest
features.”

 Your actual purchase or recommendation behavior reflects the behavioral

component of your attitude.

How the Tri-Component Model Works Together

These three components do not work in isolation but are interconnected and
influence each other. Let’s see how they come together in a real-life scenario:

Real-Life Example: Deciding to Buy a New Car

 Cognitive Component (Beliefs):

You believe that the car brand "EcoDrive" is fuel-efficient, has advanced
safety features, and offers a 5-year warranty.

 Affective Component (Feelings):

You feel excited about the sleek design and love the eco-friendly image of the
brand. You associate positive emotions like pride and satisfaction with owning
a car that’s good for the environment.

 Behavioral Component (Actions):

Based on your beliefs and positive feelings, you decide to visit the dealership
for a test drive, and eventually, you purchase the EcoDrive car.
 7

In this example:

 Your beliefs (cognitive) about the car’s features and benefits form the
foundation of your attitude.
 Your feelings (affective) add an emotional layer, making you more
enthusiastic about the car.
 Your actions (behavioral) are the result of your beliefs and feelings coming
together, leading you to make the purchase.

Why the Tri-Component Attitude Model is Important for Marketers

 Understanding Consumer Behavior: By analyzing all three components,

marketers can better understand why consumers have a positive or negative
attitude toward their brand. This helps them tailor their marketing strategies
accordingly.
 Targeting the Right Component: If a consumer has the right beliefs
(cognitive) but lacks emotional connection (affective), marketers can focus on
campaigns that evoke positive feelings. Similarly, if consumers are aware of
a product but haven’t taken action, marketers can offer promotions or
incentives to influence the behavioral component.
 Building Brand Loyalty: When all three components are aligned positively,
it creates a strong, favorable attitude that can lead to brand loyalty. Consumers
are more likely to make repeat purchases and recommend the brand to others.

Conclusion

The Tri-Component Attitude Model provides a comprehensive way to

understand how consumer attitudes are formed. By breaking down attitudes into
beliefs (cognitive), emotions (affective), and actions (behavioral), marketers can
create more effective strategies to influence consumer decisions and build
stronger connections with their audience.

 MULTI-ATTRIBUTE ATTITUDE MODEL (MAAM).

The Multi-Attribute Attitude Model is a framework used to understand how

consumers form their attitudes toward a product, brand, or service based on
multiple factors or attributes. This model is especially useful because it breaks
down the overall attitude into specific components, helping marketers identify
what influences consumer preferences and purchase decisions.

What is the Multi-Attribute Attitude Model?

In simple terms, the model suggests that a consumer's attitude toward a product
is determined by evaluating various attributes of the product, each with a
 8

different level of importance (weight). The consumer assesses how well the
product performs on each attribute and then combines these evaluations to form
an overall attitude.

Key Components of the Multi-Attribute Attitude Model

The model consists of three main components:

1. Attributes: These are the features or characteristics of a product that

consumers consider important. For example, when buying a laptop, attributes
might include battery life, price, brand reputation, screen size, and processing
speed.
2. Beliefs (Bi): These are the consumer's perceptions or beliefs about how well
a product performs on each attribute. For example, a consumer might believe
that a certain laptop brand has excellent battery life.
3. Importance Weights (Wi): Not all attributes are equally important to every
consumer. The importance weight reflects how much a consumer values each
attribute. For example, a student may prioritize price over processing speed,
while a graphic designer may place more importance on screen quality.

How the Model Works: Formula

The Multi-Attribute Attitude Model uses a simple mathematical formula to

calculate the overall attitude score:

𝐴𝑡𝑡𝑖𝑡𝑢𝑑𝑒 𝑆𝑐𝑜𝑟𝑒 = ∑(𝐵𝑖 × 𝑊𝑖)

 Bi = Belief about the product’s performance on a specific attribute.

 Wi = Importance weight assigned to that attribute.

In other words, the consumer multiplies their belief about each attribute by how
important that attribute is to them, and then adds up these scores to get an overall
attitude score.

Step-by-Step Example: Choosing a Smartphone

Let's say a consumer is choosing between different smartphones. The attributes

they consider important are:

1. Camera Quality
2. Battery Life
3. Price
4. Brand Reputation
 9

Step 1: Assign Importance Weights (Wi)

The consumer assigns importance weights to each attribute based on their

priorities:

 Camera Quality (Wi = 0.4): Very important because they love photography.
 Battery Life (Wi = 0.3): Also important, but slightly less than the camera.
 Price (Wi = 0.2): Important, but willing to pay more for better features.
 Brand Reputation (Wi = 0.1): Least important to them.

Step 2: Rate Beliefs About a Specific Smartphone (Bi)

Now, the consumer evaluates a specific smartphone based on these attributes on

a scale of 1 to 10 (10 being the best):

 Camera Quality (Bi = 8): They believe the smartphone has a great camera.
 Battery Life (Bi = 7): The battery life is good, but not exceptional.
 Price (Bi = 5): They feel the phone is a bit expensive.
 Brand Reputation (Bi = 9): The brand is well-known and trusted.

Step 3: Calculate the Overall Attitude Score

Using the formula, we can calculate the overall attitude score:

𝐴𝑡𝑡𝑖𝑡𝑢𝑑𝑒 𝑆𝑐𝑜𝑟𝑒 = [(𝐵𝑖𝐶𝑎𝑚𝑒𝑟𝑎 × 𝑊𝑖𝐶𝑎𝑚𝑒𝑟𝑎 ) + (𝐵𝑖𝐵𝑎𝑡𝑡𝑒𝑟𝑦 × 𝑊𝑖𝐵𝑎𝑡𝑡𝑒𝑟𝑦 ) +

(𝐵𝑖𝑃𝑟𝑖𝑐𝑒 × 𝑊𝑖𝑃𝑟𝑖𝑐𝑒 ) + (𝐵𝑖𝐵𝑟𝑎𝑛𝑑 × 𝑊𝑖𝐵𝑟𝑎𝑛𝑑 )]

𝐴𝑡𝑡𝑖𝑡𝑢𝑑𝑒 𝑆𝑐𝑜𝑟𝑒 = (8 × 0.4) + (7 × 0.3) + (5 × 0.2) + (9 × 0.1)

𝐴𝑡𝑡𝑖𝑡𝑢𝑑𝑒 𝑆𝑐𝑜𝑟𝑒 = 3.2 + 2.1 + 1 + 0.9 = 7.2

The total attitude score for this smartphone is 7.2 out of 10. This score reflects
the consumer’s overall attitude towards the smartphone based on their evaluation
of multiple attributes.

Interpretation

 The higher the overall attitude score, the more likely the consumer is to have
a positive attitude towards the product and decide to purchase it.
 If the consumer is comparing different smartphones, they can use the same
process to calculate the attitude scores for each option and choose the one with
the highest score.
 10

Why the Multi-Attribute Attitude Model is Useful for Marketers

(importance)

 Identifying Strengths and Weaknesses: Marketers can see which attributes

consumers value the most and where their product performs well or needs
improvement.
 Targeted Marketing: If consumers place a high value on certain attributes
(like camera quality), marketers can emphasize these features in their
advertising campaigns.
 Product Development: Understanding consumer preferences can help
companies design products that better meet the needs of their target market.

Real-Life Example: Buying a Car

Imagine you’re in the market for a new car and you’re comparing two models.
You care about fuel efficiency, safety features, price, and brand reputation. You
can use the Multi-Attribute Attitude Model to evaluate each car based on these
attributes, assigning beliefs and weights to see which car has the highest attitude
score.

 Car A has high fuel efficiency and safety ratings but is more expensive.
 Car B is cheaper but doesn’t have as high safety ratings.

By calculating the attitude scores, you might find that Car A scores higher overall
because fuel efficiency and safety are more important to you than price.

Conclusion

The Multi-Attribute Attitude Model provides a structured way to analyze how

consumers form attitudes based on various product attributes. It helps both
consumers make informed decisions and marketers understand what drives
consumer preferences, allowing them to craft more effective marketing strategies.
 1

UNIT: 4: SOCIAL CLASS AND

CULTURE (20%)

 MEANING OF SOCIAL STRATIFICATION AND SOCIAL CLASS.

Meaning:

Social Stratification is the way society is divided into different levels or layers
based on things like wealth, power, and status. People at the top have more
money, opportunities, and influence, while those at the bottom have less.

Social Class is a group of people who share similar economic positions. This
means people in the same social class often have similar jobs, incomes, and
education levels. For example, someone in the upper class might have a high-
paying job and more education, while someone in the lower class might not.

Definition:

 Social Stratification refers to the way society is organized into different

layers or groups based on factors like wealth, power, education, and social
status. These groups are ranked hierarchically, with those at the top having
more privileges and resources than those at the bottom.
 Social Class refers to a group of people in society who share similar economic
status, lifestyle, and opportunities. It can be based on factors like income,
education, and occupation.

Book Definition:

 Social Stratification (from a sociological perspective): "Social stratification

is the division of society into hierarchical layers or strata, based on factors
such as wealth, income, education, and power. This results in a system of
social inequality, where individuals have unequal access to resources and
opportunities." — Giddens, Duneier, Appelbaum, and Carr, Sociology: A
Brief Introduction
 Social Class (from a sociological perspective): "Social class is a group of
individuals who share similar economic positions and lifestyles. It is typically
 2

defined by income, occupation, education, and wealth, and it often influences

a person's life chances and opportunities." — Macionis, John J. Sociology

 NATURE OF SOCIAL CLASS INFLUENCES.

The nature of social class influences how people live, think, and interact with
each other. Social class is not just about how much money someone has, but it
affects many aspects of life, including access to resources, opportunities, and
even how people are treated by others. Here's a detailed breakdown of how social
class influences people's lives:

1. Access to Resources

 People in higher social classes usually have better access to important

resources like quality education, healthcare, and housing. For example,
wealthier people can afford private schools, university degrees, and top-notch
healthcare, which can lead to better job opportunities and a higher standard of
living.
 On the other hand, those in lower social classes often have limited access to
these resources. They may struggle to afford a good education or healthcare,
which can create a cycle of poverty where their children face the same
struggles.

2. Opportunities

 Social class plays a big role in the kinds of opportunities people have in life.
Someone from a wealthier family might have more career opportunities,
internships, or connections that help them succeed in their profession. They
might also have the luxury to pursue hobbies, travel, or invest in things that
can improve their skills and knowledge.
 People from lower social classes may have fewer opportunities, making it
harder to improve their situation. They might have to work multiple jobs to
support themselves and their families, leaving little time for personal
development or hobbies.

3. Lifestyle and Consumption

 Social class influences what people can afford and how they spend their
money. Wealthier people might live in nicer neighborhoods, eat at expensive
 3

restaurants, and travel more often. Their lifestyle often reflects their financial
resources.
 Those from lower classes may have to be more careful with their spending,
focusing on basic needs like food and shelter. Their lifestyle tends to be
simpler, and they may not have the luxury to enjoy things like vacations or
expensive items.

4. Health and Well-being

 People in higher social classes typically enjoy better health because they can
afford healthier food, regular exercise, and better medical care. Their jobs
might also be less physically demanding and more flexible, contributing to
lower stress levels.
 For lower social classes, health can be more challenging. They might not have
access to healthy food or healthcare, and their jobs could be more physically
taxing or unstable. This can lead to higher levels of stress, illness, and even
shorter life expectancies.

5. Social Relationships

 Social class can also influence how people interact with each other. People in
similar social classes tend to form friendships or relationships with others who
are in the same class. For example, wealthy people may socialize in exclusive
clubs or events, while lower-income individuals might spend more time with
people in their community.
 There can also be a divide in how people from different social classes perceive
one another. Those in higher classes might not always understand or
empathize with the struggles of those in lower classes, and vice versa. This
can sometimes lead to social tension or inequality.

6. Cultural Influence

 Social class shapes the cultural values and beliefs people have. People in
higher social classes might value things like individual success, education, and
professional achievement, while those in lower social classes might place
more emphasis on family, community, or survival.
 Different classes might also have different tastes in music, art, fashion, and
entertainment, as these are often tied to what people can afford and what they
are exposed to.
 4

Conclusion:

In short, social class influences almost every part of a person’s life. It shapes their
access to opportunities, their lifestyle, their health, and even their relationships
with others. While some people can use their class status to their advantage,
others face barriers that are difficult to overcome. Understanding these influences
can help us address inequality and create a society where everyone has a fair
chance to succeed.

 SOCIAL CLASS CHARACTERISTICS.

Social class characteristics refer to the factors that define and distinguish one
social class from another. These characteristics are shaped by economic,
educational, and cultural elements, and they play a major role in determining how
people live, work, and interact with each other. Here are the main characteristics
of different social classes:

1. Economic Status (Income and Wealth)

 Upper Class: Members of this class have significant wealth, often

accumulated through inheritance, investments, or successful businesses. They
enjoy high income and can afford luxurious lifestyles. They typically own
multiple properties and have financial security.
 Middle Class: The middle class is characterized by moderate to comfortable
income. They often have stable jobs in professional or managerial fields.
They can afford a good standard of living, including a decent home, quality
education for their children, and occasional luxuries.
 Working Class: The working class includes individuals who earn hourly
wages or salaries, often from jobs in manufacturing, retail, or service sectors.
Their income is usually enough for basic needs but may not allow for many
luxuries or savings.
 Lower Class (or Underclass): The lower class has limited income, often
struggling to meet basic needs. They may be unemployed or employed in low-
wage, unstable jobs. This class may also rely on social assistance programs
to survive.
 5

2. Education

 Upper Class: Higher education is almost a given, with many members having
attended prestigious universities or having access to elite education from a
young age. Education is seen as a key to maintaining and increasing their
wealth.
 Middle Class: Middle-class individuals typically have a college degree or
vocational training, which helps them secure stable and skilled jobs. Education
is highly valued and seen as a path to upward mobility.
 Working Class: Working-class individuals may have high school diplomas
or some college education. However, many work in trade jobs that require
practical skills rather than formal academic education.
 Lower Class: People in the lower class often have limited access to education,
with many not finishing high school or having only basic education. This lack
of education can limit job opportunities and contribute to the cycle of poverty.

3. Occupation

 Upper Class: Occupations of the upper class include top executives, business
owners, heirs, and professionals such as doctors, lawyers, and artists who have
achieved significant success.
 Middle Class: Middle-class occupations typically include professionals,
educators, managers, and small business owners. These jobs often offer
stability, good benefits, and the possibility for advancement.
 Working Class: Working-class jobs are typically in fields like construction,
factory work, retail, and service industries. These jobs often involve manual
labor or routine tasks and may offer fewer benefits or job security.
 Lower Class: The lower class often includes people in low-wage, unskilled
jobs or those who are unemployed or underemployed. Their work is often
precarious, with little job security or benefits.

4. Lifestyle and Consumption Patterns

 Upper Class: People in the upper class live an affluent lifestyle. They own
expensive homes, cars, and other luxury items. Travel, fine dining, and
cultural experiences (like attending operas, theater, or exclusive events) are
common.
 Middle Class: The middle class enjoys a comfortable lifestyle, but with more
focus on saving and planning for the future. They may own homes and cars,
 6

but typically not on the same scale as the upper class. They prioritize spending
on education, healthcare, and a decent standard of living.
 Working Class: Working-class people tend to live more modestly. They
might own homes or rent, but they often focus on basic needs like food,
clothing, and family expenses. Vacations and luxuries are usually limited.
 Lower Class: The lower class often faces financial struggles, and many live
paycheck to paycheck. They may rent their homes or live in affordable
housing. Their consumption is limited to essential goods and services, and
they may rely on public assistance.

5. Social Relationships and Networks

 Upper Class: Social relationships in the upper class are often formed within
exclusive groups, like elite social clubs, private schools, and high-status
events. Networking is important for maintaining and growing wealth.
 Middle Class: The middle class tends to have social circles that are based on
work, family, or shared activities. They may belong to community
organizations, attend local schools, and participate in social or religious
gatherings.
 Working Class: Working-class people often form close-knit communities,
with strong ties to family, neighborhood, or workplace. Social activities tend
to revolve around local events and day-to-day life.
 Lower Class: Social networks in the lower class may be more localized,
relying on extended family, friends, and neighbors for support. Many
individuals in the lower class may face social isolation or stigmatization,
which can impact their relationships.

6. Cultural Values and Beliefs

 Upper Class: Members of the upper class may value individual success,
personal freedom, and the accumulation of wealth. They often place a high
value on education, cultural refinement, and maintaining a position of power
in society.
 Middle Class: The middle class often values hard work, education, and family
stability. They tend to believe that success comes through effort, and they
prioritize opportunities for upward mobility, personal development, and
achieving a comfortable lifestyle.
 7

 Working Class: Working-class values often focus on community,

practicality, and hard work. They may place importance on job security,
family support, and solidarity with others in similar situations.
 Lower Class: People in the lower class may have values centered around
survival, coping with adversity, and resilience. They often focus on day-to-
day survival, supporting their families, and finding ways to make ends meet.

7. Social Mobility

 Upper Class: Social mobility is generally limited in the upper class, as people
are often born into wealth and power. However, some individuals may achieve
wealth through entrepreneurship or exceptional success.
 Middle Class: There is more social mobility in the middle class, as education
and career advancement can lead to improved social and economic status.
Many middle-class individuals aspire to move up to the upper class.
 Working Class: Social mobility is more difficult for working-class
individuals, as they may lack the resources or education needed to access
higher-paying jobs. Their children may face similar challenges.
 Lower Class: Social mobility is often limited for those in the lower class, as
they face barriers like poverty, poor education, and limited job opportunities.
Breaking out of the cycle of poverty can be very challenging.

Conclusion:

Social class characteristics are shaped by factors like income, education,

occupation, and lifestyle. These elements define not only people's material
conditions but also their opportunities, social interactions, and values. Social class
is a key aspect of identity and has a significant impact on an individual’s life
chances.
 8

 SOCIAL INFLUENCE ON CONSUMER BEHAVIOUR.

Social influence on consumer behavior refers to the ways in which the people
around us such as family, friends, colleagues, or society as a whole affect the
choices we make when buying products or services. Our decisions are often
influenced by the opinions, actions, and behaviors of others. Here’s how social
influences shape what we buy:

1. Family Influence

 Family members play a huge role in shaping our buying decisions. For
example, children influence what parents purchase, especially in categories
like food, clothing, or toys. Likewise, parents often decide on purchases for
their children based on what they believe is best for them.
 In families, people may also follow certain traditions or preferences when it
comes to products—like always buying a particular brand of cereal or car.

2. Peer Influence

 Friends, classmates, and colleagues can have a strong impact on what we buy.
If everyone in your social group is wearing a certain brand of shoes, you might
feel the pressure to buy them as well to fit in or feel accepted.
 Peer influence can be positive (wanting to try something new because a friend
recommended it) or negative (feeling compelled to follow trends, even if you
don’t want to).

3. Social Media and Celebrity Influence

 Social media has a huge impact on consumer behavior. Influencers and

celebrities often promote products or services that their followers may then
decide to buy. The more people see these products being used or
recommended by people they admire, the more likely they are to buy them.
 Platforms like Instagram, TikTok, and YouTube are especially powerful, with
influencers showing off the latest gadgets, fashion, beauty products, or even
services like travel destinations.

4. Cultural Influence

 Our culture meaning the shared values, beliefs, and practices of the group we
belong to shapes what we buy and how we use products. For example, in some
 9

cultures, food and drink preferences are deeply tied to tradition, influencing
people to buy certain foods or beverages that align with cultural customs.
 People also buy products that fit their cultural identity. For example, certain
brands or types of clothing may symbolize status or belonging within a
community.

5. Social Status and Class

 People’s social status or class influences what they can afford to buy and also
affects their preferences. People in higher social classes may prefer luxury
goods, designer brands, and high-end experiences. Meanwhile, people in
lower social classes may prioritize affordability and practicality when making
purchases.
 The desire to show off one’s social class can also lead people to buy products
that signal wealth or success, such as expensive cars or designer clothing.

6. Group Norms and Conformity

 Humans have a natural tendency to conform to social norms. This means we

often make purchases based on what’s "normal" or expected in a given group
or society. For example, if it’s common in a community to buy eco-friendly
products, people may feel compelled to purchase these items, even if they
don’t necessarily need them.
 This desire to fit in can drive consumer behavior. If everyone in your group is
buying the latest smartphone, you might feel like you need to do the same to
stay in line with the group.

7. Word of Mouth and Recommendations

 Word of mouth is one of the most powerful forms of social influence.

Recommendations from friends, family, or even strangers (such as online
reviews) can heavily influence consumer choices. People tend to trust the
opinions of those they know or even online communities, so positive reviews
or personal recommendations can make us more likely to buy something.
 People also tend to seek approval or validation from others before making big
purchases, especially if the product is something that needs to be justified (like
an expensive item).
 10

Conclusion:

Social influence is a powerful driver of consumer behavior. We are constantly

affected by the opinions, actions, and behaviors of those around us—whether it’s
family, friends, celebrities, or social media influencers. These influences guide
our choices, often shaping what we buy, how we feel about products, and how
much we are willing to spend. Understanding these influences helps marketers
and businesses target the right audiences and design strategies that appeal to
social factors.

 CULTURE (DEFINITIONS AND MEANINGS).

Culture refers to the shared values, beliefs, customs, practices, and social
behavior of a particular group of people. It encompasses the way of life that is
passed down from one generation to the next and influences how people interact
with each other, their environment, and the world around them.

Definition:

 Culture is the set of shared traditions, beliefs, and ways of doing things that a
group of people follow. It includes everything from language, food, art,
clothing, and customs to how people think and interact.

Book Definitions:

1. Edward B. Tylor (Anthropologist) – Culture is that complex whole which

includes knowledge, belief, art, morals, law, custom, and any other
capabilities and habits acquired by man as a member of society.

This definition emphasizes that culture includes both material (like tools and art)
and non-material elements (like beliefs and customs).

2. Geert Hofstede (Cultural Theorist) – Culture is the collective programming

of the mind which distinguishes the members of one group or category of
people from others.

Hofstede's definition highlights the idea that culture shapes how people think,
behave, and view the world.
 11

 CULTURE - TRADITIONAL AND CHANGING INDIAN VALUES.

Traditional and Changing Indian Values

India has a rich cultural heritage, with deep-rooted traditions and values that have
been passed down through generations. Over time, however, these values have
evolved due to various influences, including modernization, globalization, and
exposure to different cultures. Here's a detailed look at traditional and changing
values in India:

Traditional Indian Values

1. Respect for Elders

 One of the most fundamental values in traditional Indian society is respecting

elders. Elders are seen as wise, experienced, and deserving of deference. This
respect is shown through various gestures like touching their feet (a traditional
greeting) or seeking their advice.
 Elders often have the final say in family matters, and their opinion is highly
regarded.

2. Family Bonding and Patriarchy

 Family plays a central role in Indian society, and the family unit is often
extended, meaning several generations live together under one roof.
Traditional values emphasize unity, support, and looking out for one another.
 Traditionally, the family has a patriarchal structure, where decisions are often
made by the eldest male member. Women’s roles, in many cases, have been
focused on managing the home and raising children, although this is changing
in modern India.

3. Respect for Religion and Spirituality

 India is a land of diverse religions, but respect for spirituality and religious
practices has always been important. Temples, rituals, prayers, and festivals
are central to daily life. Whether Hinduism, Islam, Christianity, Sikhism, or
any other faith, religious practices often shape values, behaviors, and even
social interactions.
 Traditionally, religion influences major life decisions, including marriage,
business practices, and social behavior.
 12

4. Honesty and Integrity

 Traditional Indian values emphasize honesty and integrity in dealings. People

are expected to uphold their reputation and act with fairness. Reputation and
trust are highly valued in personal and business relationships.
 The concept of “dharma” (moral duty) guides individuals to live a life of
righteousness, whether in personal conduct or in business.

5. Hospitality

 Indians are known for their hospitality, often summarized by the phrase "Atithi
Devo Bhava," meaning "The guest is God." It reflects the cultural norm of
treating guests with utmost respect and providing for their needs, sometimes
even at the expense of one’s own comfort.

6. Joint Family System

 Traditionally, many Indian families lived together in large joint families,

where grandparents, uncles, aunts, and cousins all shared a common
household. This system created a sense of togetherness and mutual
responsibility, and ensured that children grew up with a strong sense of family
support.

7. Gender Roles

 Traditionally, India has had clear gender roles. Men were often seen as the
primary breadwinners and decision-makers, while women were typically
responsible for home-making and child-rearing. Though changing, these roles
were strongly adhered to in older generations.

Changing Indian Values

1. Individualism and Independence

 Traditional Indian society placed a high value on collective family goals over
individual aspirations. However, in recent years, especially in urban areas,
there has been a shift towards more individualistic values. Young people are
increasingly seeking independence, both financially and socially, and are
making personal choices about careers, marriage, and lifestyle.
 13

 The rise of nuclear families, where parents and children live separately, has
contributed to this shift, especially among urban and middle-class families.

2. Gender Equality

 While gender roles were strictly defined in traditional Indian society, there has
been a significant shift towards gender equality. Women today are pursuing
higher education, entering the workforce, and becoming entrepreneurs.
 The idea that women should only be homemakers has been challenged, and
many families now support their daughters’ career ambitions, with some men
taking on more responsibilities in the home.

3. Changing Family Structure

 The joint family system, while still prevalent in some rural areas, has been
gradually replaced by the nuclear family, especially in urban India. The young
generation is more likely to live independently after marriage or even delay
marriage for career or personal reasons.
 Divorce, once a taboo in Indian society, is now more accepted, particularly in
urban settings, although it still carries a social stigma in many places.

4. Materialism and Consumerism

 Traditional Indian values were more focused on spirituality, contentment, and

simple living. However, the influence of globalization, rising incomes, and
media has made consumerism more prevalent. There is now a stronger focus
on material success, such as owning luxury cars, designer clothes, and gadgets.
 Shopping malls, online shopping, and global brands are becoming a central
part of Indian life, especially in larger cities.

5. Technology and Modernization

 The rise of technology and the internet has significantly influenced Indian
values. Young people are increasingly exposed to global culture through social
media, which has broadened their perspectives on everything from fashion to
career choices.
 Mobile phones, social media, and online platforms have changed how people
communicate, form relationships, and make decisions. This has also led to
 14

more openness in terms of relationships, dating, and even discussions about

mental health.

6. Marriage and Relationships

 Traditionally, marriage in India was often arranged by families, with a focus

on compatibility, social status, and community ties. However, in modern
times, young people are increasingly choosing their own life partners, and love
marriages have become more common, especially in urban areas.
 There is also a growing acceptance of intercaste and interfaith marriages,
although challenges persist in some communities.

7. Education and Career Choices

 Traditional values placed a strong emphasis on academic success, especially

in fields like engineering, medicine, and law. Today, however, there is more
recognition of non-traditional career paths like entrepreneurship, design, and
the arts. Parents are more likely to support their children in pursuing diverse
career options.
 The importance of education is still central, but there is now a greater focus
on skill development and practical experience rather than just theoretical
knowledge.

8. Changing Views on Religion and Spiritual

 While religion still plays a significant role in Indian society, younger

generations, particularly in cities, are becoming more secular and less rigid in
religious practices. Some are increasingly focusing on personal spirituality
and are more open to different philosophies and beliefs.
 There is also a growing trend towards questioning established religious
practices, especially among educated youth, and an increasing acceptance of
atheism or agnosticism.

Conclusion:

India’s values are undergoing a transformation as the country becomes more

connected with the global world and as younger generations question traditional
norms. While some core traditional values like respect for elders, family bonding,
and hospitality remain strong, others like gender roles, family structures, and
 15

career choices are evolving. These changes reflect the broader shifts in society,
where the influence of globalization, education, and modernization is
increasingly shaping the attitudes and behaviors of young Indians. Nonetheless,
the balance between traditional and changing values continues to shape the
unique identity of Indian culture.

 MEANING OF SUBCULTURE.

Subculture refers to a smaller group within a larger culture that shares its own
distinct beliefs, values, behaviors, customs, or interests that differentiate it from
the larger society. Members of a subculture often identify themselves as a part of
this group, but they also exist within the broader cultural context of their society.

 In Simple Terms:

A subculture is a group of people within a larger culture who have different ways
of life, interests, or beliefs that set them apart from the mainstream or dominant
culture. For example, teenagers, hip-hop enthusiasts, or gamers might form
subcultures because of their unique styles, preferences, or activities that
distinguish them from the general population.

Examples of Subcultures:

 Goth subculture: A group with a distinct style, often focused on dark fashion,
music, and a particular aesthetic.
 Hip-hop culture: A youth-driven subculture with its own style, music, dance,
and values, often centered around urban life.
 Vegan subculture: A group that follows plant-based diets and often shares
values around animal rights and environmental sustainability.

Subcultures can emerge in any society and often reflect the diverse identities and
interests of its members. They can also influence mainstream culture by
introducing new trends, ideas, or ways of thinking.
 16

 CROSS CULTURAL MARKETING ANALYSIS.

Cross-Cultural Marketing Analysis in the Indian Context

Cross-cultural marketing refers to the practice of promoting and selling products

or services to people from different cultures or regions. It involves understanding
how cultural differences influence consumer behavior and preferences. In India,
a country with vast cultural diversity, cross-cultural marketing plays a critical role
for businesses that want to reach a broad audience.

India is a complex and diverse country with different languages, religions,

customs, traditions, and lifestyles across various regions. Therefore, marketing
strategies need to be tailored to resonate with specific cultural groups. Here's a
look at how cross-cultural marketing works in India and the factors businesses
need to consider:

1. Cultural Diversity and Its Impact

 India's Diversity: India has a wide range of cultures based on language,

religion, and regional differences. There are over 2,000 distinct cultures, with
22 officially recognized languages and many more dialects. The culture of a
person living in a metropolitan city like Mumbai might differ significantly
from someone living in a rural village in Uttar Pradesh or Tamil Nadu.
 Impact on Marketing: Businesses must recognize these differences and
create customized marketing campaigns that reflect local values and
preferences. A marketing strategy that works in one region might fail in
another because of cultural differences.

2. Language and Communication

 Multilingual Country: Language plays a crucial role in connecting with

consumers. While English and Hindi are widely understood, regional
languages like Tamil, Bengali, Telugu, Punjabi, and others have a significant
impact on how people communicate.
 Marketing in Local Languages: Companies often translate advertisements
or products into regional languages to appeal to local audiences. For instance,
brands like Coca-Cola or McDonald’s have localized their ads to feature
regional languages, customs, and celebrities, making their marketing more
relatable to the target audience.
 17

3. Religious Influences

 Religion and Consumer Behavior: India is home to multiple religions,

including Hinduism, Islam, Christianity, Sikhism, Buddhism, and others.
Religious festivals like Diwali, Eid, Christmas, and Gurpurab play a big role
in shaping consumer behavior, as many people shop for special items during
these times.
 Religious Sensitivity: Marketing campaigns must be sensitive to religious
beliefs. For example, meat or alcohol-related ads might not resonate with
certain religious groups like Hindus or Muslims. Brands must understand
these sensitivities and ensure that their products and messages do not offend
cultural or religious sentiments.

4. Social and Economic Class Differences

 Class-based Marketing: India has a significant gap between the upper and
lower classes. Urban consumers, especially in cities like Delhi, Bangalore, and
Mumbai, may have different needs, aspirations, and purchasing power
compared to those in rural areas or smaller towns.
 Tailored Products for Different Segments: Cross-cultural marketing in
India needs to address different socio-economic classes. Luxury brands may
target the urban upper class with premium products, while mass-market
products can cater to the middle and lower-income groups. Additionally, rural
India is becoming an important market for consumer goods, and marketers
need to understand the local needs of these areas.

5. Festivals and Celebrations

 Festivals Drive Purchases: Indian culture is rich in festivals, and they have a
significant influence on buying behavior. Diwali, Holi, Eid, and Navratri, for
example, are times when people indulge in shopping for clothes, gifts,
electronics, and home décor.
 Seasonal Campaigns: Marketers often create festive campaigns that focus on
gift-giving, new beginnings, and community celebrations. Tailoring
campaigns to these occasions—using relevant symbols, colors, and themes—
can resonate well with Indian consumers.
 18

6. Family-Oriented Culture

 Family as a Unit of Decision-Making: In India, family plays an essential role

in decision-making, especially for big purchases. A father might be the
primary decision-maker for a car, while mothers often influence decisions
related to food and household products.
 Marketing to Families: Brands targeting Indian consumers often highlight
family values, making products appear as ideal choices for family bonding,
celebrations, and togetherness. For instance, advertisements for family-sized
packs of snacks, household items, or even insurance often focus on family
welfare and protection.

7. Traditional vs. Modern Values

 Blend of Tradition and Modernity: India is a country where traditional

values coexist with modern lifestyles. While many people in urban areas are
embracing westernized values (like western fashion, fast food, and digital
media), rural areas may stick more closely to traditional practices and customs.
 Adaptation in Marketing: Brands need to find the right balance between
tradition and modernity. For example, FMCG brands may target urban
consumers with more modern, globalized campaigns, while in rural areas, they
may focus on traditional family values, health, and wellness.

8. Influence of Caste and Community

 Social Identity: While caste-based discrimination is illegal, social identity

still plays a role in India’s consumer behavior. For example, brands might
market their products differently based on a community's preferences or local
customs.
 Targeted Marketing: In some cases, marketers create products specifically
tailored for particular caste or community groups, offering specific features,
colors, or packaging that resonate with local values.

9. Use of Celebrities and Influencers

 Celebrity Endorsements: In India, celebrities have a significant influence on

consumer behavior. Popular figures from Bollywood, cricket, or other fields
often endorse products, making them more appealing to the masses.
 19

 Regional Celebrities: While Bollywood stars are popular nationwide,

regional celebrities can play a crucial role in marketing within specific
regions. For instance, actors from the Tamil, Telugu, or Bengali film industries
might be used in regional advertisements to reach a more localized audience.

Conclusion:

Cross-cultural marketing in India requires an in-depth understanding of the

diverse cultural, religious, linguistic, and socio-economic backgrounds of the
population. By embracing these differences and tailoring products, messages, and
advertising strategies accordingly, businesses can successfully appeal to the vast
and varied Indian market. Understanding local customs, traditions, and values
while balancing modern influences is key to building a strong brand presence in
India.
 1

UNIT: 5: DIFFUSION OF INNOVATION

(20%)

 MEANING AND DEFINITION OF DIFFUSION OF INNOVATION.

Meaning of Diffusion of Innovation (DOI) in Marketing

Diffusion of Innovation is a theory that explains how new products, ideas, or

technologies spread within a market or society over time. Developed by
sociologist Everett Rogers in 1962, this theory helps marketers understand how,
why, and at what rate innovations gain acceptance among consumers.

The concept of diffusion refers to the process by which an innovation is

communicated through specific channels over time among the members of a
social system. In marketing, this process helps brands and businesses strategize
how to introduce new products and increase their adoption among target
consumers.

Definition of Diffusion of Innovation.

According to Everett Rogers:

"Diffusion of innovations is the process by which an innovation is communicated

through certain channels over time among the members of a social system."

 THE DIFFUSION PROCESS.

The diffusion process describes how a new product, idea, or technology spreads
throughout a community or market over time. Imagine you have a new type of
smartphone that just came out. The diffusion process is how people learn about
it, start using it, and eventually adopt it as part of their daily lives.

The 5-Step Diffusion Process

1. Knowledge (Awareness)
2. Persuasion (Interest)
3. Decision (Evaluation)
 2

4. Implementation (Trial)
5. Confirmation (Adoption)

1. Knowledge Stage: People become aware that a new product exists. They
might come across it by seeing an advertisement, hearing about it from a
friend, or finding it online. At this point, they have no detailed information
about the product they only know that it’s something new.
Example: A new type of wireless earbuds with a unique feature like noise-
cancellation for city noise is launched. You see a short ad for these earbuds on
YouTube. Now, you’re aware that this product exists, but you don’t know how
it works or if it’s any good.
2. Persuasion Stage: After knowing that the product exists, some people
become interested and start looking for more information. Curiosity kicks in,
and they actively seek out details about the product. They want to understand
what makes this product special, how it can benefit them, and whether it’s
better than other options.
Example: After seeing the ad for the earbuds, you’re intrigued. You begin
looking for reviews on Google, watching unboxing videos, or checking out its
website. You want to know about its battery life, sound quality, and whether
the noise-cancellation works in a city.
3. Decision Stage: People consider whether to buy the product. They weigh the
pros and cons based on the information they’ve gathered. This is when they
decide if they are willing to spend money and try the product. It often involves
comparing it to other similar products.
Example: You’ve gathered information about the new earbuds and compared
them to other brands like Apple AirPods or Sony earbuds. You think about the
price, features, and whether these earbuds fit your commute. Finally, you
decide, “Yes, I’m going to buy these because they seem perfect for city life.”
4. Implementation Stage: People buy the product and start using it. This is like
a test phase where they experience it firsthand to see if it meets their
expectations. They’re trying out all the features and seeing how well it fits into
their routine.
Example: You buy the earbuds and start using them on your daily commute.
You test out the noise-cancellation on a busy train, listen to music while
walking in a noisy street, and explore all the sound settings. You’re figuring
out if the earbuds are as good as the reviews said.
 3

5. Confirmation Stage: People decide if they’re fully satisfied with their

purchase. If they’re happy, they continue using the product regularly and may
recommend it to others. If not satisfied, they may return it or switch to
something else.
Example: After using the earbuds for a few weeks, you’re impressed with
their performance. The noise-cancellation works great in the city, the sound
quality is excellent, and the battery lasts all day. You’re so happy with them
that you start telling your friends and family, recommending they try these
new earbuds too. Some of them even buy a pair based on your
recommendation.

Real-Life Example: The Adoption of Smartphones

 When the iPhone was first launched in 2007, Innovators were the first to buy
it, even though smartphones were still new and expensive.
 Then came the Early Adopters, who quickly saw the benefits of having a
phone that could also function like a mini-computer.
 Over the next few years, the Early Majority started buying iPhones and other
smartphones as they became more popular and affordable.
 By the time smartphones became a standard in society, the Late Majority
joined in, and even Laggards eventually switched from their old flip phones
to smartphones.

 THE ADOPTION PROCESS.

The Adoption Process explains the steps people go through when deciding
whether to accept and start using a new product, service, or idea. This process has
five stages that describe how individuals move from hearing about something
new to fully integrating it into their lives.

The 5 Stages of the Adoption Process

1. Awareness Stage: People first learn about the new product or idea but have
limited knowledge about it. They know it exists but don’t know much about
what it does or how it can benefit them.

Example: You see a commercial for a new smartphone that claims to have a
unique AI-powered camera feature. You now know that this new phone is
 4

available, but you don’t know the details of how the AI camera works or if it’s
better than other smartphones.

2. Interest Stage: After becoming aware, some people get curious and start
looking for more information. They want to understand what makes the
product different and whether it might be useful to them.

Example: Intrigued by the new smartphone, you start watching YouTube

reviews, reading tech blogs, and checking out its specs on the official website.
You want to know if the AI camera really makes a difference in picture
quality.

3. Evaluation Stage: This is where people think about whether the product is
worth trying. They weigh the pros and cons, considering factors like price,
features, and personal needs.

Example: You compare the new smartphone with other models you’re
considering, like the latest iPhone or Samsung Galaxy. You look at the price,
battery life, camera performance, and decide if this new phone is worth
buying.

4. Trial Stage: Before fully committing, people often want to try the product on
a smaller scale to see if it meets their expectations. This is like a test run.

Example: You visit a store to try out the new smartphone. You take some test
photos, play around with the AI camera features, and see how it feels in your
hand. You’re testing if it’s as good as advertised.

5. Adoption Stage: If people are satisfied with their trial experience, they decide
to fully adopt the product and start using it regularly. If they’re not impressed,
they may reject it.

Example: After testing the phone in-store, you’re impressed with its camera
quality and unique features. You decide to buy it and start using it as your
main device. You might even recommend it to your friends if you’re really
happy with your purchase.
 5

The Adoption Process for Tesla Electric Cars

 Tesla introduced its electric cars, creating awareness through media and ads.
 People became curious and researched more, learning about Tesla’s unique
features like long-range batteries and Autopilot.
 After comparing it to other vehicles, they considered whether it was worth the
investment.
 Many test-drove the cars to experience the performance and convenience.
 Satisfied with the trial, they bought Teslas and became loyal customers.
 As a result, Tesla grew in popularity, with many owners recommending the
brand to others.

Summary

 Awareness: You find out about a new product but don’t know much about it.
 Interest: You get curious and gather more information.
 Evaluation: You consider whether it’s worth buying.
 Trial: You test the product to see if it meets your needs.
 Adoption: You decide to fully use it and may even recommend it to others.

This process shows how people gradually move from hearing about something
new to making it a part of their daily lives, helping marketers understand how to
better introduce and promote new products.

 A PROFILE OF THE CONSUMER INNOVATOR.

A consumer innovator is someone who is willing to be one of the first to adopt
and try new products, services, or technologies. These individuals play a key role
in the diffusion of innovations because they are at the forefront of adopting new
ideas or products before they become widely known or popular. They are not
afraid to take risks, and their curiosity and desire to explore new options drive
their behavior.

1. Early Adopters of New Products

Consumer innovators are the first group of people to try out new products,
services, or technologies as soon as they are introduced to the market. They
don’t wait for others to test the product or see it proven—they actively seek
out the newest innovations to experience them firsthand.
 6

2. Curiosity-Driven

These individuals are naturally curious and excited by change. They enjoy
discovering new things, whether it's a new gadget, a technological
breakthrough, or a unique service. Their curiosity makes them eager to explore
what's new in the market, even if it means taking risks with products that might
not be fully tested.

3. Risk-Taking Attitude

Consumer innovators are not afraid to take risks. While others might be
hesitant to try new products or technologies that haven’t yet been proven,
innovators are willing to experiment, knowing that some products may fail or
not meet expectations. This risk-taking behavior is part of what sets them apart
from more cautious consumers.

4. Influence and Trendsetting

Because they’re among the first to try out innovations, consumer innovators
often become trendsetters or influencers. Their decisions to adopt new
products influence their social circles, whether it’s friends, family, or
colleagues. They often set trends by showing others what’s "cool" or worth
trying, and others follow their lead.

5. High Level of Information-Seeking

Consumer innovators typically spend a lot of time researching and staying

informed about upcoming trends and products. They follow tech blogs, watch
product reviews, and engage with online communities to gather information
about the latest innovations. Their in-depth knowledge helps them make
informed decisions about which products to try.

6. Pride in Being First

For many consumer innovators, there is a certain pride in being the first to try
something new. They get a sense of satisfaction from knowing they were
 7

ahead of the crowd in adopting a new technology or product. This early

adoption often gives them a feeling of exclusivity or status.

7. Feedback Providers

Since they are early adopters, consumer innovators play a key role in
providing feedback to companies. This feedback is invaluable to businesses,
as it helps them fine-tune their products or services. Consumer innovators are
often vocal about their experiences, offering insights into what works and
what doesn’t.

8. Influence on the Broader Market

While they might be a small group, consumer innovators have a significant

influence on the broader market. Their early use and positive reviews can help
a new product gain credibility and momentum, making it more likely to be
adopted by a larger audience. Their enthusiasm and endorsement can drive
others to try the product once it becomes more widely available.

9. Social Media Sharing

Many consumer innovators love sharing their experiences with others through
social media platforms or product review sites. They post reviews, videos, or
testimonials about their new products, often influencing others to check them
out. Their personal stories and recommendations can sway others’ decisions.

10.Loyal to Brands

If a product or service meets their expectations, consumer innovators often

become loyal customers. They may continue to adopt new versions of the
product or new products from the same brand, contributing to the brand’s
success over time. Their loyalty can help brands build a committed customer
base.

Example:

Imagine a person who loves gadgets and is always excited about new tech. When
a new smartwatch with advanced health features (like heart rate monitoring and
sleep tracking) is released, this person is among the first to purchase it, even
though it’s just launched and not many people are familiar with it. They spend
 8

time exploring its features, testing it out, and sharing their thoughts on social
media, recommending it to friends. Over time, more people around them start to
trust the product because of the positive feedback from this early adopter.

In summary, a consumer innovator is someone who leads the way in adopting

new products, driven by curiosity and a willingness to take risks. Their influence,
feedback, and enthusiasm often help products gain traction and inspire others to
adopt new innovations.