(Ask not what you can do for your

country, SHOP!!)

CONSUMER BUYING BEHAVIOR

UNIT 2 TRIMESTER 5

CONSUMER BUYING BEHAVIOR

A consumer is the ultimate user of a product or service. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can formulate appropriate marketing strategy that will result in increased sales and brand loyalty. To understand consumer behavior, experts examine purchase decision processes, especially triggers that compel consumers to buy a certain product.
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CONSUMER BUYING BEHAVIOR

A study revealed that the average shopper took less than 21 minutes to purchase groceries and covered only 23% of the store. 59%of all supermarket purchases were unplanned. This gives marketers a very limited amount of time to influence consumers. Marketers spend a great deal of time and money discovering what compels consumers to make purchases. They can determine whether a product's success is likely before investing excessive company resources to introduce that product nationally or even internationally.
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NEEDS AND GOALS

Needs are innate and physiological in nature. Needs can also be psychological and these are developed as an individual grows older. Goals are the result of motivated behavior. They can be generic goals and product specific goals. Generic goals fulfill a certain need. Product specific goals is one that an individual sees as a way to fulfill a need, and these are referred to as wants.
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NEEDS AND GOALS

Needs have appropriate goals. The goal selected depends on ones individual experience, physical capacity, cultural norms and values and accessibility of the goal in a given physical and social environment. Needs and goals are interdependent. They change according to physical conditions and environment, experience, people.
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NEEDS AND GOALS

It is not easy to infer a motive from the behavior of a consumer. Many factors influence the selection of goals by a consumer. Personal experience. Physical capacity Cultural norms and values Accessibility of goal in a physical and social environment. Perception or self image
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Positive and Negative Motivation

Positive motivation is a response which includes enjoyment and optimism about the tasks that you are involved in.

Positive and Negative Motivation

Rational and Emotional Motives

Rational motives implies that consumers select goals based on totally objective criteria such as size, weight, price, or miles per gallon. A conscious, logical reason for a purchase. A motive that can be defended by reasoning or logical argument

Rational and Emotional Motives

Emotional motives imply the selection of goals according to personal or subjective criteria. A feeling experienced by a customer through association with a product.

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The Dynamic Nature of Motivation

Needs and goals change and grow constantly. This is because of the dynamic nature of motivation. Most needs are never completely or permanently satisfied. New needs emerge as old needs get satisfied, and marketers must be tuned in to these emerging needs.
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The Dynamic Nature of Motivation

When a goal is achieved successfully individuals tend to set new and higher goals for themselves. Their aspirations grow. In this context marketers and advertisers must promise what can be delivered and not create unrealistic expectations.

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The Dynamic Nature of Motivation

When consumers cannot attain a specific goal they direct their behavior towards a substitute, which although may not be as satisfying as the primary goal it may be sufficient to dispel uncomfortable tension temporarily. Frustration sets in when a consumer cannot achieve his goal. Each individual reacts different to non-achievement. Some adapt and cope some others tend to feel anxious. (Defense Mechanism)

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The Dynamic Nature of Motivation

Consumer behavior often fulfills more than one need. Specific goals are often selected because they satisfy more than one need. Every consumer has a varying need and goal. And it is difficult to infer motives from their behavior.

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The Arousal of Motives

The arousal of any particular set of needs at a specific moment in time may be caused by internal stimuli found in the individuals physiological condition, by emotional or cognitive processes or by stimuli in outside environment. Physiological arousal Emotional arousal Cognitive arousal Environmental arousal

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The Arousal of Motives

Physiological Arousal : Bodily needs at any one specific moment in time are based on the individual physiological condition at the moment. E.g. A drop in blood sugar level or stomach contractions will trigger awareness of a hunger need. E.g. A decrease in body temperature will induce shivering, which makes individual the aware of the need for warmth. These cause uncomfortable tensions until they are satisfied through medicines, diet, warm clothes etc.
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The Arousal of Motives

Emotional Arousal: Sometimes daydreaming results in the arousal or stimulation of latent needs. People who are bored or who are frustrated in trying to achieve their goals often engage in daydreaming, in which they imagine themselves in all sorts of desirable situations. E.g. A single woman may spend her free time on the internet looking for other single people.
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The Arousal of Motives

Cognitive arousal : Sometime random thoughts and stimuli can lead to a cognitive awareness of needs. An advertisement that may reminder of you of home might trigger an instant yearning to go home or connect with the family.

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The Arousal of Motives

Environment arousal : The set of needs an individual experiences at particular time are often activated by specific cues in the environment. Without these cues the needs might remain dormant. E.g. The 8o clock news, the sight or smell of food , food commercials on television, may arouse hunger. Or a new cell phone model displayed in a store window might arouse the need to buy a new phone.
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The Arousal of Motives

Philosophies Concerned with Arousal of Motives

Behaviorist School

Behavior is response to stimulus Elements of conscious thoughts are to be ignored Consumer does not act, but reacts Cognitive School

Behavior is directed at goal achievement

Needs and past experiences are reasoned, categorized, and transformed into attitudes and beliefs
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Maslows Theory of Motivation

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Maslows Theory of Motivation

One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator.
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Maslows Theory of Motivation

Starting from the premise that each human being is motivated by needs that are inborn, presumably as a result of tens of thousands of years of evolution, the Maslow theory of motivation suggests a hierarchy of needs: Physiological needs Security or Safety needs Social needs Self- Esteem needs The need for self-actualization :
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Physiological Needs
These are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other needs. Maslow was of the opinion that until these needs were satisfied to a degree to maintain life, no other motivating factors would work.
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Security or Safety Needs

These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm. These needs are about establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. However, if a family is dysfunctional i.e., if there is an abused child he/she cannot move to the next level as he/she is continuously fearful for his/her safety. Love and a sense of belonging are postponed until he/she feels safe.
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Social Needs
Humans have [in varying degrees of intensity] a strong desire to affiliate by joining groups such as societies, clubs, professional associations, churches and religious groups etc. There is a universal need to feel love and acceptance by others.

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Self-Esteem Needs
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like selfrespect, autonomy and achievements and external esteem factors such as states, recognition and attention.
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The Need for Self-Actualization

Maslow theory of motivation proposes that people who have all their "lower order" needs met progress towards the fulfillment of their potential. Typically this can include the pursuit of knowledge, peace, self-fulfillment, oneness with God, nirvana, enlightenment etc. So ultimately this is all to do with the desire for self transcendence.
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Maslows Theory of Motivation

As each of the needs are substantially satisfied, the next need becomes dominant. Although no need is ever fully gratified, a substantially satisfied need no longer motivates. Therefore, to motivate someone, one needs to understand at what level of the hierarchy that person is at and focus on satisfying those needs or needs above that level.
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Problems with Maslows Theory

There are several problems with the Maslow model when real-life working practice is considered: Individual behavior seems to respond to several needs - not just one The same need (e.g. the need to interact socially at work) may cause quite different behavior in different individuals There is a problem in deciding when a level has actually been "satisfied
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Problems with Maslows Theory

The model ignores the often-observed behavior of individuals who tolerate low-pay for the promise of future benefits There is little empirical evidence to support the model. Some critics suggest that Maslow's model is only really relevant to understanding the behavior of middle-class workers in the UK and the USA (where Maslow undertook his research).
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Maslows Theory in the Marketing Context

Appealing to the needs of your customers can be a great way to grab the attention of your customers. Maslow theory can easily fit into a marketing context. When a marketer attempts to make a sale, he is not only selling the product: but he is selling the idea of the product, the image of the product, and the result of the product. He is essentially promising to fulfill one or more of the needs in the hierarchy.
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Maslows Theory in the Marketing Context

A marketing campaign will be more successful if it appeals to the lower levels of unfulfilled need in a person's life. For, the marketer, it is important to know your audience. A product that promises to fulfill an esteem need will be virtually useless to a customer whose safety needs are not yet met.
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Maslows Theory in the Marketing Context

To be successful in any marketing endeavor, the first step is to get a firm grasp on the psychographic motivators to which a marketer will be appealing to. Which need on the hierarchy is the product going to fulfill? How will it fulfill this need, and how can he prove to the potential customers that it will effectively fulfill their need?
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Maslows Theory in the Marketing Context

An even more important question is how can a marketer tell which level of need the potential customer is currently attempting to address. If a customer comes asking for a product, then they are doing a large portion of the marketers work . However, it's exceedingly difficult to understand the needs of a complete stranger when a marketer is attempting a cold sale.
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Maslows Theory in the Marketing Context

The best way to overcome this obstacle is simple, just talk to the customer. Talk about sports, the weather, or family life - anything other than the product you are trying to sell. Chatting with a potential customer in a friendly, non-pressured way will allow you to pick up on invaluable clues about their needs.
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Maslows Theory in the Marketing Context

Once you understand why your potential customer motivation to buy, you are one step closer to being able to fulfill their unmet need. By identifying their motivating factors, you can cater your sales techniques to each individual customer. By analyzing the needs of customers at large, you can effectively market to your target audience as a whole.
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Maslows Theory in the Marketing Context

From a product development, sales and marketing perspective, Maslows Hierarchy of Needs is just as legitimate. Companies can develop products to help satisfy particular needs and they can also focus on particular needs as a way to market and sell something.

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Maslows Theory in the Marketing Context

For example, a clothing manufacturer can focus on physiological needs such as the need to be protected from the environment and to be warm. And they can also focus on esteem and self actualization needs by producing garments that improve a persons self esteem or self perception and give them the confidence to pursue their self-actualization needs.

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Segmentation and Promotional Application

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Segmentation and Promotional Application

Market segmentation is about understanding who your specific customers are within a market. Segmentation is just as important for small business as large organization because you cannot serve a customer you have not identified. Your entire sales and marketing program is built around this crucial knowledge and so the more you know about your customer, the more successful you are.
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Segmentation and Promotional Application

A marketer needs to have some basic assumptions about his customer base in order to do business. Every sales and marketing enterprise begins by asking the following questions: Who Are My Customers? What Are They Like? What Do They Want? Where Can I Find Them? How Can I Reach Them? What Should I Say To Them?
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Segmentation and Promotional Application

A key question in market segmentation is whether there is enough demand for the product or service or a new initiative. By familiarizing oneself with the target buyers the marketer can also begin to tune into trends that may your sales and marketing efforts profitable.

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There are four categories marketers generally use when collecting information on customers:

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Geographic
Geographic: where your customers live and do business. It is possible that their geographic location plays a role in terms of their cultural makeup and buying habits. Where people are is a basic consideration in doing business with them.

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Demographic
Demographic: This is just a fancy word for statistics like: Age Gender Size Of Family Education Income Occupation Economic Class Religion Ethnicity Language

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Psychographic
Psychographic: This corresponds to the psychological traits of customers including attributes such as Personality, Beliefs, Values, Lifestyle, Attitudes and so forth. These are those personal marketing segmentation characteristics that you cannot quantity but are nevertheless important.

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Behavioral
Behavioral: These set of marketing segmentation traits answer the question, How? How do your customers buy? How do they use your product or service? How loyal are they? How do they evaluate and decide on what to buy? Everything about how your customer behaves and what motives them is included in this category. Behavioral traits, are more likely to change over time as opposed to physical needs and psychological traits. You can and should seek out newer and better ways of connecting with your customer, educating them and motivating them to buy.
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Maslows Theory in Relation to Advertising

In no other branch of industry are the needs of human beings so intensively investigated than in advertising. If we know what the potential consumer wants to purchase given where their highest priorities are, it is possible to respond exactly to these needs in the advertising and hence earn lots of money!
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Maslows Theory in Relation to Advertising

Why does advertising promise us harmony and happiness? Why doesnt advertising simply tell us the facts of the matter, why do they appeal to our feelings and longings? The answer is obvious: In each person there is a longing for the highest goal, for perpetual harmony, for the constant state of happiness. This longing can also be exploited to maximize financial profits, to achieve power, yes - even to manipulate other people.
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Maslows Theory in relation to Advertising

This ad demonstrates the physiological need of Maslows hierarchy of needs. The strategy of this need is expressing that water is very important and it is impossible to survive without it. This ad fits the physiological need because water is something that people will always need and thirst is something that people will always have
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Maslows Theory in Relation to Advertising

This ad is an example of the Safety need of Maslows hierarchy of needs. The strategy of this ad is conveying that if you rent a home or an apartment and do not have insurance it is equivalent to doing the most dangerous activities in your home. This ad fits the safety need because people feel secure and safe when they have insurance.
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Maslows Theory in Relation to Advertising

This ad is an example of the love and belongingness need of Maslows hierarchy of needs. The strategy of this ad is expressing that the Salvation Army is always looking out to help people in need. This ad conveys the love and belongingness need because it is expressing that there are people who will help anybody in need and those people will feel like they belong.
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Maslows Theory in Relation to Advertising

This ad demonstrates the esteem need of Maslows hierarchy of needs. The strategy of this ad is suggesting that the design of this car is so much like a plane and it is hard to differentiate between the two. This ad expresses the esteem need because people will feel very prestigious. They will also feel as if they have a very high status because their car is compared to a plane.

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Maslows Theory in Relation to Advertising

This ad expresses the self-actualization need of Maslows hierarchy of needs. The strategy of this ad is conveying that the U.S. Marines only wants people who are able to live up to their highest potential and push others to do the same. This ad fits the self-actualization ad because it is expressing people to be the best they can be and then they will feel self-fulfillment.
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Measurement of Motives
How do researchers know which motives are responsible for certain kinds of consumer behavior? How does one measure them? How do you identify these motives? Motives are difficult to measure since they are hypothetical constructs that cannot be touched, smelt etc.
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Measurement of Motives
Motivational researchers usually rely on a combination of qualitative research techniques to measure motives. Often the findings of these researches depend on the analyst and what he thinks they imply. Consumer behaviorists are reluctant to rely on any one technique. 3 commonly used methods used for measuring human motives are:
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Measurement of Motives
1.Observation and inference 2.Subject reports 3.Qualitative research Researchers prefer to use a combination of two or three techniques to ensure authenticity and reliability. Motivational research is a qualitative research which delves below the consumers level of awareness and is of great value to marketers in developing new ideas for products, services and copy appeals.
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Motivational Research
Motivational research is a type of marketing research that attempts to explain why consumers behave as they do. Motivational research seeks to discover and comprehend what consumers do not fully understand about themselves.

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Motivational Research
Motivational research assumes that there are underlying or unconscious motives that influence consumer behavior. Consumers may not be aware of these forces and influences(e.g., cultural factors, sociological forces). Motivational research attempts to sift through all of these influences and factors to unravel the mystery of consumer behavior as it relates to a specific product or service, so that the marketer better understands the target audience and how to influence that audience.

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Motivational Research
Products and services that relate, or might relate, to attraction of the opposite sex, to personal adornment, to status or self-esteem, to power, to death, to fears, or to social taboos are all likely candidates for motivational research. Why do women tend to increase their expenditures on clothing and personal adornment products as they approach the age of 50 to 55?
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Motivational Research
The reasons could be loss of youths beauty and the loss of fertility, and to related fears of losing their husbands love. It is also a time of life when discretionary(optional) incomes are rising (because children are leaving the nest). Other motives could be at work as well, but a standard marketing research survey would never reveal these motives, because most women are not really aware of why their interest in expensive adornments increases at this particular point in their lives.
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Motivational Research
Even low-involvement product categories can often benefit from the insights provided by motivational research. Typically, in low-involvement product categories, perception variables and cultural influences are most important. Our culture is a system of rules and regulations.
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Motivational Research
Cultural rules govern how we squeeze a tube of toothpaste, how we open packages, how we use a bath towel, who does what work at home. Understanding how these cultural rules influence a particular product can be extremely valuable information for the marketer.
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Motivational Research Techniques Observation

The three major motivational research techniques are observation, focus groups, and depth interviews. Observation can be accomplished in person or sometimes through the convenience of video. Personal observation is too expensive, and most consumers dont want someone observing them keenly for a month or two!
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Motivational Research Techniques Observation

It is easier to observer consumers in buying situations rather than in their homes. The observation can be in person or by video cameras which are less intrusive. Finding stores that will allow this is difficult. Installing and maintaining video cameras too is an expensive affair. In-store observers can also be used so long as they are covert in their observation, and the consumer is not made aware that he is being observed.
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The Focus Group

A skilled moderator can make this technique of motivational research very valuable. The interview must be largely nondirective in style, and the group must achieve spontaneous interaction. The group excitement and spontaneity produces the revelations and behaviors that reveal underlying motive. A focus group actively led by the moderator with much direct questioning of respondents will seldom yield motivational understanding. But the focus group is a legitimate motivational technique.
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The Depth Interview

The heart and soul of motivational research is the depth interview, a lengthy (one to two hours), one-on-one, personal interview, conducted directly by the motivational researcher. Much of the power of the depth interview is dependent upon the insight, sensitivity, and skill of the motivational researcher.
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The Depth Interview

The motivational researcher strives to create an empathetic relationship with each respondent. The motivational researcher relies heavily upon nondirective interviewing techniques which are the least threatening The goal is to get the respondent to talk, and keep talking.
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The Depth Interview

During the interview, the researcher watches for clues that might indicate that a sensitive nerve has been touched. Long pauses by the respondent, slips of the tongue, fidgeting, variations in voice pitch, strong emotions, facial expressions, eye movements, avoidance of a question, fixation on an issue, and body language are some of the clues the motivational researcher keys on. These sensitive topics and issues are then the focus of additional inquiry and exploration later in the interview.
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The Analysis
Like a detective, she sifts through the clues and the evidence to deduce the forces and motives influencing consumer behavior. No one clue or piece of evidence is treated as being very important. It is the convergence of evidence and facts that leads to significant conclusions.

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Personality and Consumer Diversity

The inner psychological characteristics that determine and reflect how a person responds to his or her environment is defined as personality. Personality reflects individual differences. Personality is consistent and enduring. Personality can change.

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Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart of human motivation Social relationships are fundamental to the formation and development of personality Quantitative approach to personality as a set of psychological traits
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Neo-Freudian personality theory Trait theory

Freudian Theory
Id
Primitive or instinctual needs for which individual seeks immediate satisfaction Individuals internal expression of societys moral and ethical codes of conduct Individuals conscious control that balances the demands of the id and superego
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Superego Ego

Freudian Theory in Relation to Consumer Behavior

Consumer researchers using Freuds personality theory believe that consumer purchases are a reflection and extension of the consumers own personality.

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Neo Freudian Theory

Several psychologists disagreed with Freuds theory that personality is primarily instinctual and sexual in nature. They believed that social relations are vital to personality development. Alfred Adler, Harry Stack Sullivan and Karen Horney were some of the psychologists who disagreed with Freuds Theory.
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Karen Horneys CAD Theory

Using the context of child-parent relationships, individuals can be classified into:
Compliant individuals Aggressive individuals Detached individuals

Compliant individuals are inclined to be like others. They desire to be wanted, loved, appreciated.
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Karen Horneys CAD Theory

Aggressive individuals move against from others and they desire to excel and win admiration. Detached individuals deviate from others and they desire to be independent, self-sufficient and free from obligation.

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Trait Theory
Focuses on quantitative or empirical measurements of personality, called traits. A trait, is a mannerism, characteristic that is peculiar to an individual. Some traits that are measured in relation to consumer behavior are:

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Trait Theory
Consumer innovativeness: how receptive is a consumer to a new experience Consumer materialism: how important are worldly attachments to a consumer Consumer ethnocentrism: what are the chances that a consumer will accept or reject foreign made products.

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Personality and Consumer Diversity

How personality influences consumer behavior is of great interest to marketers. Understanding these influences will aid marketers in understanding, segmenting and targeting their consumers accordingly. Some traits are of consumers are especially important and of interest to marketers. They are:
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Personality and Consumer Diversity

Consumer Innovativeness Cognitive Personality Factors Consumer Materialism, Fixated Consumption Behavior, Compulsive Consumption Consumer Ethnocentrism

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Personality and Consumer Diversity

Some traits that have been useful are:
Consumer Innovativeness Dogmatism Social character Optimum stimulation level Variety-novelty seeking

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Dogmatism
Consumers low in dogmatism (open-minded) are more likely to prefer innovative products to established or traditional alternatives

Highly dogmatic consumers tend to be more receptive to ads for new products or services that contain an appeal from an authoritative figure

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Social Character
Inner-directed :people seem to prefer ads that stress product features and personal benefits Other-directed: people prefer ads that feature an approving social environment or social acceptance

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Optimum Stimulation Levels

A personality trait that measures the level or amount of novelty or complexity that individuals seek in their personal experiences. High OSL consumers tend to accept risky and novel products more readily than low OSL consumers

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Variety Novelty Seeking

A personality trait similar to OSL, which measures a consumers degree to variety seeking. Forms of variety novelty seeking: Exploratory Purchase Behavior Use Innovativeness Vicarious Exploration
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Cognitive Personality Factors

Need for cognition Visualizers versus verbalizers
A persons craving for enjoyment of thinking
A persons preference for information presented visually or verbally

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Need for Cognition

Consumers high in NC are more likely to respond to advertisements rich in productrelated information or description Consumers low in NC are more likely to be attracted to background or peripheral aspects of an advertisement.

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 Consumer materialism

Consumer Materialism to Compulsive Consumption

Fixed consumption behavior

The extent to which a person is considered materialistic Consumers fixated on certain products or categories of products Addicted or out-of-control consumers

Compulsive consumption behavior

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Materialistic People
Value acquiring and showing-off possessions Are particularly self-centered and selfish Seek lifestyles full of possessions Have many possessions that do not lead to greater happiness

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Fixated Consumers
Have a deep interest in a particular object or product category Have a willingness to go to considerable lengths to secure items in the category of interest Have the dedication of a considerable amount of discretionary time and money to searching out the product
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Compulsive Consumption
Consumers who are compulsive buyers have an addiction; in some respects, they are out of control and their actions may have damaging consequences to them and to those around them.

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Consumer Ethnocentrism
Ethnocentric consumers feel it is wrong to purchase foreign-made products. They can be targeted by stressing nationalistic themes. Consumer ethnocentrism is a psychological concept that refers to individuals who believe that their country's products are superior to those of other countries.

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Consumer Ethnocentrism
This concept also describes consumers in one country thinking that purchasing products in other countries is immoral or inappropriate because doing so is unpatriotic. It is a common belief amongst groups showing signs of consumer ethnocentrism that purchasing foreign-made products means not supporting the economy and the job market of the home country.
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Consumer Ethnocentrism
Businesses often study consumer ethnocentrism to develop strategic marketing plans for entering new foreign markets. By understanding the attitudes and beliefs of the foreign consumers, a business can better position itself to come across in a more positive light.
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Consumer Ethnocentrism
For example, a business entering a market showing consumer ethnocentrism may want to include in its advertisements that purchasing from them means supporting their country because the business has local offices employing their neighbors. Characteristics of countries with consumer ethnocentrism include skepticism of foreign goods, strong patriotism and high availability of domestic brands.
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Consumer Ethnocentrism
If consumers believe that foreign goods are generally inferior to their own home goods, then they will be less likely to support foreign brands. These consumers also are aware of economic conditions and want to support local jobs and businesses by not buying items that will take their money outside of the country. If there are no local brands to satisfy a need, then consumers will purchase foreign goods until their needs are fulfilled locally.
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Brand Personality
Brand personality is a set of human characteristics associated with a brand. Gender, age, socio-economic class, emotional characteristics. For e.g. Marlboro is masculine, while Virginia Slims is feminine. IBM is older, while Apple is younger.

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Brand Personality
A brand personality is something to which the consumer can relate, and an effective brand will increase its brand equity by having a consistent set of traits. This is the added-value that a brand gains, aside from its functional benefits. There are five main types of brand personalities: excitement, sincerity, ruggedness, competence and sophistication. Customers are more likely to purchase a brand if its personality is similar to their own
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A Brand Personality Framework

Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness

Down- to earth Honest Wholesom e Cheerful

Daring Spirited Imaginativ e Up-to-date

Reliable Intelligent Successful

Upper class Charming

Outdoorsy Tough

Brand Personality
Brand personality like human personality is both enduring and distinctive and built over time. Brand personality is the outcome of all the consumers experiences with the brand. Brand personality is researched extensively by both brand strategists and researchers. Users of products will perceive a brand differently from non-users of the product.
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Brand Personality
Axe: the personality is seductive, individuality and unconventional. Marlboro: masculinity, freedom and adventure Levis: cool, rebellion

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Brand Personality
Brand personality is differentiated from brand image. Brand image denotes the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. Brand personality differentiates among brands specifically when they are alike in many attributes. Sony versus Panasonic.
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Guess which one inspires loyalty?!!

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Why Use Brand Personality

It builds long-term brand equity. (Brand Equity is: The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster.
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Why use Brand Personality

The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda is an example of brand equity. Brand equity is important when a company wants to expand its product line. If the brand's equity is positive, the company can increase the likelihood that customers will buy its new product by associating the new product with an existing, successful brand. )
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Why use Brand Personality

It differentiates the brand and makes it distinctive from competitors especially when product attributes are similar. E.g. Mercedes vs. BMW It is a powerful customer relationship device. It helps gain an in-depth understanding of consumer perceptions of and attitudes towards the brand.
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Why use Brand Personality

Brand personality communicates the brand identity. E.g. Nike is not just shoes, it is sports, performance and attitude.

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How To Create A Brand Personality

The personality of a person is affected by everything that is associated with him-friends, neighborhood, activities, clothes etc. A products personality too is affected similarly. Product related characteristics can be primary drivers of brand personality. E.g. Banks, Insurance are viewed as serious, competent, older. While athletic shoes are viewed as young, rugged, outdoorsy, lively.
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How To Create A Brand Personality

User Imagery is a power driver of brand personality. User imagery can be the user of the brand or those portrayed in the advertisement. Activities sponsored by the brand also influence the brand personality. E.g. Lakme Fashion Week. (chic, happening, upper class)

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How To Create A Brand Personality

How long the brand has been in the market also affects the personality of a brand. E.g. IBM is old , Apple is young. A symbol is also a powerful influence on brand personality. E.g. Nikes swoosh, Apples half eaten apple

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Color in Brand Personality

One of the key elements of building a strong brand is color selection. Every color has a different feel and various associations. Colors will evoke certain emotions and feelings towards a brand. The color of your brand will represent your identity effectively. Research reveals people make a subconscious judgment about a person, environment, or product within 90 seconds of initial viewing and that between 62% and 90% of that assessment is based on color alone.
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Color in Brand Personality

Brand Color.docx

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Color in Brand Personality

Color symbolizes a product. It can act as a great identifier. For example, for physical goods, packaging will stand out from the competition. The color will also be recognizable on any promotional media and your logos.

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Color in Brand Personality

Some questions to ask while choosing a color to create a brand personality: What color represents your brand's personality? What color suits the characteristics of your product/service? What color does your competitor(s) use?

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Color in Brand Personality

Colors arent tied to any particular industry. The color of a brand should be one that will give customers the right impression the first time they see it. Brands arent limited to one color. Some brands like eBay choose to go with many colors to represent variety.

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Color in Brand Personality

There are differences in cultural interpretations of color. For example in the Western world, white is considered the color of purity and peace, however, in some parts of Asia white is the color of death. Pick a color opposite to that of your main competitor. The color of your main competitor is probably the most important point to consider
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Color in Brand Personality

The power of color when it comes to brand recall. Without showing you a logo, a name, or even the initials of these three companies, see if you can guess the brand name. The category is shipping:

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Color in Brand Personality

Most fast food restaurants are decorated with vivid reds and oranges. Studies have shown that reds and oranges encourage diners to eat quickly and leave. Reds and blacks are use in adult web sites. These colors are thought to have sexual connotations. Toys, books and children's web sites usually contain large blocks of bright, primary colors. Young children prefer these colors and respond more positively than they do to pastels or muted blends.
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Color in Brand Personality

Red --excitement, strength, sex, passion, speed, danger. Blue --(listed as the most popular color) trust, reliability, belonging, coolness. Yellow --warmth, sunshine, cheer, happiness Orange -- playfulness, warmth, vibrant Green -- nature, fresh, cool, growth, abundance Purple --royal, spirituality, dignity Pink -- soft, sweet, nurture, security White --pure, virginal, clean, youthful, mild. Black --sophistication, elegant, seductive, mystery Gold -- prestige, expensive Silver -- prestige, cold, scientific
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Different Self-Images
Actual Self-Image the real me, how consumers see themselves
Ideal Self-Image the person Id like to be , how consumers would like to see themselves

Ideal Social Self-Image how consumers would like others to see them
Expected Self-Image how consumers expect to see themselves at some specified future time

Social Self-Image how consumers feel others see them

Extended Self
Modification or changing of the self by which consumers use self-altering products or services to conform to or take on the appearance of a particular type of person (e.g., a biker, a physician, a lawyer, a college professor).

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Role
A pattern of behavior expected of an individual in a specific social position, such as mother, daughter, teacher, lawyer. One person may have a number of different roles, each of which is relevant in the context of a specific social situation.

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Ways Possessions Can Extend the Self

A game played on an English FM channel in Bangalore had participants texting in their mobile phone brand name & model no., after which the radio host would try and describe the owner's personality based on the mobile phone the participant owns. Though the game was to be taken lightly; do possessions say something about their owners? Yes they do. In fact possessions are considered extensions of the self. Its been proposed that possessions can extend the self in a number of ways, namely,
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Ways Possessions Can Extend the Self

Actually Symbolically By Conferring Status By Bestowing Feelings of Immortality By Endowing With Magical Powers

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Ways Possessions Can Extend the Self

1. actually, by allowing the person to do things that otherwise would be very difficult or impossible to achieve. 2. symbolically, by making the person feel better or 'bigger'. 3. by conferring status or rank 4. by bestowing feelings of immortality by leaving valued possessions to younger family members. 5. by endowing with magical powers ( possession of good luck charm passed on by some one the person trusts).
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Ways Possessions Can Extend the Self

Do consumers try and alter their selves through the use of products and services? Yes they do. This act of alteration may be due to the consumer being unsatisfied about the way he/she is. Or maybe even to get accepted better amongst his/her peer group members or even larger society.
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Ways Possessions Can Extend the Self

Clothing. grooming aids, cosmetics and other accessories offer consumers the opportunity to modify their appearances and thereby to alter their 'selves'. In using self-altering products consumers are frequently attempting to express their individualism or uniqueness by creating a new self, maintaining the existing self (or preventing the loss of self), and extending the self (modifying or changing the self).
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Vanity and Consumer Behavior

Vanity(pride/arrogance/conceit) has advanced the development of several products and services, and the demand for appearance-related products and services such as cosmetics, clothing, and body sculpture is increasing. Physical appearance and achievement vanity are important in marketing, and advertisements stress such physical vanity as individual charisma. Advertisements are filled with achievements and status symbols. Being concerned about charisma may be a positive consumption behavior (such as in sports and consuming healthful foods.

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Vanity and Consumer Behavior

Vanity also has a relationship with consumption behaviors such as materialism, price-based prestige sensitivity, cosmetics usage, clothing, and membership in exclusive clubs. Vanity has been investigated in terms of
Physical Vanity Achievement Vanity

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Vanity and Consumer Behavior

People who care about their physical appearance tend to be materialistic-achieving success, centrality, and happiness. People who care about their appearance tend to be involved with body sculpture, tend to care about clothing, cosmetics, and food and drink intake.

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Vanity and Consumer Behavior

Those with achievement vanity tend to purchase expensive goods and are eager to become a member of many clubs. Those with achievement vanity tend to care about price prestige. Those with achievement vanity tend to care about clothing. Those with achievement vanity tend to care about becoming a member of a fan club.
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The Involvement Theory

Consumer involvement Theory - CIT - is one way to understand the psychology and behavior of the target audience. Involvement refers to how much time, thought, energy and other resources people devote to the purchase process. The Emotional / Rational scale is a measure of reason vs. impulse, desire vs. logic, passion vs. prudence.
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The Involvement Theory

There are four general categories High involvement / emotional High involvement / rational Low involvement / emotional Low involvement / rational

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High Involvement/Emotional
Business purchases that fall into this category might include such things as office design, advertising, and perhaps the hiring of certain employees. For individuals, high involvement / emotional purchases can include jewelry, weddings, and holiday travel plans. In some societies the selection of a husband or wife will fall into this group. As can the purchase of a home or car. Again, depends on the culture, person, and how much purchasing power she has. Advertising in this category tends to focus on visual and emotional appeals. Give people visual details, with music.
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High Involvement/Rational
In this category you find expensive business purchases: anything relating to the technological infrastructure, the office location and lease, as well as the company health insurance plan. On the consumer side, high involvement / rational purchases tend to be linked to high cost. This category can include financial services and products, the purchase of a home or car, as well as major appliances and electronics. High involvement consumer purchases can vary significantly on the rational / emotional scale from individual to individual. For Ms. X, a car is strictly a way to get to work, and her selection is based on fuel economy and reliability. But for Mr. Y, a car is an important expression of his status and ego.

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Low Involvement/Emotional
The gratification we get from these products is emotional or sensual. But fleeting; it doesn't last a long time. So we don't spend a lot of time thinking about the purchase. Movies, candy, an entertaining magazine, or a birthday card. Perhaps selecting a restaurant for a special occasion. The advertising challenge here tends to be the flash promise of pleasure, of gratification, the promise of a benefit. Strong positioning can help, especially in a crowded product category.
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Low Involvement/Rational
These are the things we buy out of habit, without much thought. This category includes most of the things you put into your basket at the super market. The places you eat lunch, say the local McDonald's. And office supplies. Here the typical role for advertising is to get people to sample or switch. Over the counter medicines tend to fall into this category. But pain relievers, cough medicines and the like, especially those for children, can be more emotionally driven.

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Measures of Involvement
There are basically five concepts which have all been studied under the topic of "involvement": Ego involvement, commitment, communication involvement, purchase importance, and response involvement.

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Measures of Involvement
In consumer behavior, the study of ego involvement addresses the question of how a consumer's value system is engaged when purchasing a product. For this reason, the construct of ego involvement can provide insights when researching areas which involve consumer values or value systems (e.g., life style analysis or cross cultural buyer behavior).
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Measures of Involvement
Consumers can become committed to a brand or store when that brand or store becomes ego involving to them. Ego involvement can exist without commitment. For example, someone may feel that the type of automobile a person purchases is related to that person's worth, resulting in a substantial amount of search occurring before an automobile is purchased. Once the purchase is made, the person may become committed to his or her decision. However, the ego involvement preceded the commitment
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Measures of Involvement
When communication involvement exists, it occurs only during the communication; it will not begin before the communication starts and it will only continue as long: as the communication does . Its presence or absence is completely determined by a person's reaction (or lack thereof ) to a particular communication.
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Measures of Involvement
Purchase importance has been confused with ego involvement. This is easy to do, since purchase importance can be a result of ego involvement (i.e. if a purchase is ego involving, it will surely be high in importance.) For example, the purchase of automobile tires might not be ego involving; however, this purchase might be quite important due to functional risk (i.e., "If one blows out, I might be killed") or financial risk (i.e., "If one blows out, I am down by several thousands of rupees).
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Measures of Involvement
High response involvement would represent situations where individuals are highly active, information processing beings, trying to gain as much information as possible, then using this information in attempting to arrive at the optical choice. Low response involvement would reflect a fairly passive choice situations, where individuals are interested in minimizing the physical and psychological effort required to obtain a product.
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Perception
Perception is a major psychological factor that influences consumer behavior. Perception can be described as how we see the world around us. We receive messages through our five organs viz., eyes, ears, nose, mouth and skin. The different sights, sounds, smells, tastes and sensations that we feel are known as stimuli.
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Perception
Each person recognizes, selects, organizes and interprets these stimuli in his own individual manner based on his needs, values and expectations and this is known as perception. Since each individuals need, motives and expectations are unique each individuals perception is also unique.

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Perception
Perception helps explain the phenomenon of why different individuals respond differently to the same stimulus under the same condition. Marketers, provide stimuli to consumers through the physical shape, color, size, fragrance, feel, taste of product, its package, advertisements and commercials.

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Perception
A marketers interest would be to understand why and what are the different types of perceptions associated with each of the stimuli so that it can be highlighted to evoke the most favorable perception in the maximum number of consumers.

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Perception
The success of a business depends upon its ability to attract and retain customers that are willing to purchase goods and services at prices that are profitable to the company. Consumer perception describes how customers and potential customers view a company and its products and services. Consumer perception is important to businesses since it can influence consumer behavior, which ultimately affects the profitability of a business.
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Perception
Many businesses spend large amounts of resources to influence consumer perceptions. Knowing how consumers are influenced by their environment, their informationprocessing abilities and their perception of a product can help companies to more effectively reach consumers.

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Perception
There are several factors that can influence the role of perception in consumer behavior: exposure to stimuli, interpretation of said stimuli and the ability to identify changes in the intensity of stimuli. Exposure involves the levels to which consumers encounter stimuli, like commercial messages in the form of billboards/hoardings, television and radio advertisements or other advertising media.
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Perception
Interpretation involves consumers making sense out of the messages received, such as recognizing a brand name or logo. According to Weber's Law, a consumer's ability to identify changes in stimulus intensity is strongly related to the original intensity of the stimulus. In other words, the more dramatic the change in the intensity, the more noticeable it will be to consumers.
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Perception
Absolute threshold is the minimum level that the individual can experience a sensation In other words, he can distinguish the difference between something & nothing. This level varies from person to person & varies with time, place & environment. Marketers often try to provide stimuli more than this level.
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Perception
Differential Threshold or Just Noticeable Difference (JND) is the minimal difference that can be detected between two similar stimuli 50 % of the time. For example, if you were asked to hold two objects of different weights, the just noticeable difference would be the minimum weight difference between the two that you could sense half of the time. The German scientist Ernst Weber discovered that the JND between two stimuli is not absolute, but an amount relative to the intensity of the first stimulus.
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Perception
For example, if the price of a liter of premium orange juice is Rs.200, most consumers will probably not notice an increase of Rs.5, and it may take an increase of Rs.10 or more before a differential in price would be noticed very quickly by consumers because it is a significant percentage of the initial cost of gasoline.
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Perception
Subliminal Perception there are certain types of stimuli which are not strong enough to exceed the absolute threshold, but somehow stimulates the subconscious mind & get recorded there, sometimes without the knowledge of the perceptor. At a later stage this might surface as some form of expression or perception.
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Perception
Here the marketers try to stimulate the subconscious mind of an individual. Some think its unethical, but there are several positive outcome of this method if applied in a constructive way.

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Perception
Information processing : It is a series of activities where the stimuli are perceived and processed to convert/transform them to information, and then stored (very similar to computer data processing). Later this information is used in selecting a product.

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Perception
We are all exposed to a plethora of marketing ads continuously. This becomes the starting point of all information processing. But people tend to perceive things they need or want. The stronger the need, the greater the tendency to ignore unrelated stimuli.
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Perception
Hence Selective Perception occurs when the consumer selects the stimuli from the environment on the basis of interaction of expectations & motives with the stimulus itself. These factors give rise to four important concepts concerning perception :

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Perception
Selective exposure where the consumers want to avoid unpleasant or painful messages & seek those which are sympathetic, interesting and pleasant. Selective attention or perceptual vigilance where the consumers exercise selectivity in terms of their attention to commercial stimuli. They have a heightened attention regarding the stimuli that meet their needs, & minimal attention to the ones irrelevant to their needs. People also vary in terms of kind of information like price, quality, features etc., forms of messages & type of medium they prefer.
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Perception
Perceptual defense where consumers subconsciously screen out stimuli that are threatening or damaging even if the exposure has already taken place. Likewise sometimes they unconsciously distort the information that is not matching their needs, values, and beliefs. This may be due to psychological factors or any unfavorable past experience.
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Perception
Perceptual blocking where consumers protect themselves from being exposed by blocking such stimuli from conscious awareness. They do it for self protection because of the visually overwhelming nature of the world we live in. Attention : Normally all the stimuli of a message come through the various sensory organs simultaneously. But an individual can remember only one of them, usually the strong stand tries to take action on that basis. Marketers try to exploit that situation to their advantage, to leave an impact in the consumer. This is known as attention.
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Perception
Stimulus is the one which prompts an individual to initiate an action by creating an attention. It has the following characteristics : Size & Intensity; Color and Movement; Position; Format & Design; Isolation; Contrast or Distinction; Information extent. Individual factors The attention of a consumer depends on the following factors Interest & Needs; Ability; Involvement, etc.
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Perception
Situational factors Often the situation, condition, environment or the surrounding of the consumer have an affect on its attention of certain stimuli. Hence the marketers should devise certain methods to help overcome that. Interpretation Just like people exercise selective perception on the basis of certain psychological principles, the interpretation of these stimuli is also highly individual because it is based on what the individuals expect to see in the light of their previous experience, motives, interests, reasoning at the time of perception. In the case of any ambiguous stimuli, the individuals usually interpret these in such a way to serve their own needs, interests, wishes, etc.
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Application of Perception in Marketing Strategy

Consumer Imagery : Consumers have a number of enduring perceptions or images of themselves. Products &brands have also a symbolic value for consumers, who evaluate them on the basis of their consistency (congruence) with the perception of themselves. This is the consumers self-image and they attempt to preserve or enhance it by buying products & brands or patronizing services which they believe are congruent with their self-images and avoiding which are not. This phenomenon is known as consumer imagery. 1.Product Image - where the consumer compares his self-image with his perception of the product or brand. 2.Service Image - where the consumer compares his self-image with his perception of the service or its provider.
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Application of Perception in Marketing Strategy Product Positioning

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Product Positioning
Product positioning involves creating a unique, consistent, and recognized customer perception about a firms offering and image. A product or service may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality. It targets a product for specific market segments and product needs at specific prices. The same product can be positioned in many different ways.
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Product Positioning
For whom is the product designed? What kind of product is it? What is the single most important benefit it offers? Who is its most important competitor? How is your product different from that competitor? What is the significant customer benefit of that difference?
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Positioning Strategies
Leveraging on Existing Brands' Strategy: (Umbrella)

It is a common tactic employed by marketers to leverage on the names of the firm's existing and established brands for extending the product line or venturing into another product category. This kind of brand marketing helps the firm to indirectly clarify queries in the consumer's mind like the identity of the new product and its credibility in the market. An established brand automatically helps the firm in its brand positioning strategy of new products or services.

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Positioning Strategies
Corporate Brand Positioning Strategy: Here the marketer uses his company name/identity for brand extensions. Product Features and Benefits Positioning Strategy:

A consumer buys a product when he/she perceives some promised benefit that would satisfy the need and that the offer is better or enticing as against other competing brands. This positioning strategy is implemented by differentiating the brand from its competitors on the basis of its features and benefits offered. This is known as Unique Selling Proposition or USP. Often brands cluster two to three related benefits for positioning their product.

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Positioning Strategies
Price-Quality Positioning Strategy Often the price of the product is kept high owing to its high quality and the product is positioned in a way that the super quality of the product justifies its high price. This is true in the case of designer perfumes, watches, fancy cars and designer clothes. Here positioning is done by focusing on the affordable/low price of the product and its superior quality. Here the consumer experiences a feel good factor since he's obtaining a quality product at an economical price.

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Positioning Strategies
Competitive Positioning Strategy: This is a very effective offensive strategy where the marketer seeks to persuade the consumer that his product/brand is superior or at par with an established competitor. Product Category Positioning Strategy: This strategy is used when an existing product category is too congested and the new brand is positioned as belonging to another product category. User Positioning Strategy: Products can be positioned according to their user bases. For instance, beer marketers often position their products as light and strong beers. Breakfast cereals for weight- watchers and kids. This is a smart way of doing niche marketing.
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Product Re-positioning
The objective of every business is to grow and be profitable. To achieve this an organizations products and services need to be positioned properly in the market (in the consumers mind). A marketer needs to understand a consumers needs and requirements and position his product accordingly. However, with the changing and volatile market trends, perceptions, competitors and needs of consumers a marketer will need to re-position his product/service accordingly.
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Product Re-positioning
Re-positioning a product or service is bringing about the desired change, giving it a new identity so that the target customers are motivated to buy it. Re-positioning brings about clarity and strengthens the product identity.

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Perceived Quality
Consumers judge the quality of a product on intrinsic (basic/built-in) or extrinsic cues. Intrinsic cues are physical characteristics like the size, color, flavor, aroma of the product. Extrinsic cues are price, image, service environment, brand image, promotional image.

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Perceived Quality
Refer Text Book Pages 44/45 and 46

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Information Processing
The process of acquiring, retaining, and using information as an activity is information processing. CONSUMER INFORMATION PROCESSING the process through which consumers are exposed to information attend to it comprehend it place it in memory and retrieve it for later use.
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Storage, Retention and Retrieval of Information

Sensory Storage: The senses which receive the various sensations store it as a synchronized image for a few seconds. Marketers must make an impact in the first few seconds but they find it difficult to make a lasting impression.

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Storage, Retention and Retrieval of Information

Retention: If the information that the marketer has transmitted in the first few seconds has survived and made a lasting impression then it is moved to the short term store (retention). This is the working memory. With repetition this information can move to the long term memory/store.
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Storage, Retention and Retrieval of Information

Long term store/memory: Information can last here for days, weeks and sometimes even years. The information that a consumer is repeatedly exposed to gets transferred to long term storage/memory. Consumers encode and assign a word or visual image to the information received.
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Storage, Retention and Retrieval of Information

When a consumer is bombarded with too much information, information overload occurs. Information is constantly organized and reorganized and retained in long term memory. Knowledgeable consumers retain large chunks of information unlike those who are lesser informed about a product. Information can be stored either in the order in which it was acquired (episodically) or according to significant concepts (semantically).
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Storage, Retention and Retrieval of Information

Information is retrieved from long term memory. Consumers tend to remember product benefits, and not attributes (features). Incongruent elements sometimes make an impact on consumer minds and improve recall. Competing advertisements can cause confusion in the minds of consumers and this could result in failure to retrieve.
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Consumer Decision Making Process

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Consumer Decision Making Process

Customers go through a five-stage decisionmaking process in any purchase. In routine purchases, customers often skip or reverse some of the stages. When buying a favorite hamburger a customer would recognize the need (hunger) and go right to the purchase decision, skipping information search and evaluation.
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Consumer Decision Making Process

The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass a coffee shop and you are attracted by the aroma of coffee and freshly baked cake).
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Consumer Decision Making Process

An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made immediately. If not, then the process of information search begins.
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Consumer Decision Making Process

A customer can obtain information from several sources: Personal sources: family, friends, neighbors etc. Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays. Public sources: newspapers, radio, television, consumer organizations; specialist magazines. Experiential sources: handling, examining, using the product
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Consumer Decision Making Process

Research suggests that customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets.

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Consumer Decision Making Process

In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels involved in the product. Involvement, is the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is highly involving, the customer is likely to carry out extensive evaluation.
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Consumer Decision Making Process

High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes.
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Consumer Decision Making Process

Why should a marketer understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale.
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Consumer Decision Making Process

Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. (a state of conflict) The customer, having bought a product, may feel that an alternative would have been preferable.
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Consumer Decision Making Process

In these circumstances the customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.
200

Measures of Consumer Learning

Recognition and Recall Measures Cognitive Responses to Advertising Copy-testing Measures Attitudinal and Behavioral Measures of Brand Loyalty
(Aided and Unaided Recall)

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Measures of Consumer Learning

Recognition and recall tests determine whether consumers remember seeing an ad and the extent to which they can recall the advertisement. The researcher can use aided recall, which would rely on recognition as opposed to unaided recall. In recognition tests -the consumer is shown an advertisement and asked whether he or she remembers seeing it and can remember any of its salient points.
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Measures of Consumer Learning

In recall tests the consumer is asked whether he or she has read a specific magazine or watched a specific television show if so, can he recall any ads, or commercial, seen the product advertised, the brand and any salient points about the product. The advantage The marketer or advertiser can gauge the effectiveness of the given ad by comparing its readership recognition scores to similar sized ads, to competitive ads, and to the companys own prior ads.
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Measures of Consumer Learning

Cognitive responses to Advertising Another measure of consumer learning is the degree to which consumers accurately comprehend the intended advertising message. To ensure high level of comprehension, many marketers conduct copy testing either before the advertising is actually run (called pretesting) or after it appears (post testing).
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Measures of Consumer Learning

Brand loyalty is also a measure of consumer learning. Ideally, it is the outcome of learning where the consumer now knows the best choice to make each time. Brand loyalty includes attitudes and behaviors toward the brand. Behavior measures are observable whereas attitudinal measures are concerned with the consumers feelings about the brand.
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Measures of Consumer Learning

Four types of loyalty are no loyalty, covetous loyalty, which is no purchase but a strong attachment to the brand, inertia loyalty, which is purchasing the brand out of habit or convenience with no attachment, or premium loyalty, which is a high attachment to the brand. Brand equity reflects brand loyalty and together they lead to increased market share and greater profits for the firm.
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Measures of Consumer Learning

The brand equity refers to the value interest in a well known brand name. This value stems from the consumers perception of the brands superiority, the social esteem it provides by using it, and the customers trust and identification with the brand. For many companies , their most valuable assets are their brand names. Brand names have become cultural icons and enjoy powerful advantages over the competition.
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Brand Equity

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Brand Equity
The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, the brand is said to have negative brand equity.
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Brand Equity
Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. A brand is a name, symbol, or other feature that distinguishes the company's goods or services in the marketplace. Consumers often rely upon brands to guide their purchase decisions. The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it.
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Brand Equity
The basis of brand equity lies in the relationship that develops between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value.
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Brand Equity
The buyer may even pay a higher price for the company's goods or services because of his commitment, or passive agreement, to buy the brand. In return for the buyer's brand loyalty, the company essentially assures the buyer that the product will confer the benefits associated with, and expected from, the brand.

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Brand Equity
Building a brand requires the company to gain name recognition for its product, get the consumer to actually try its brand, and then convince the buyer that the brand is acceptable. Only then can the company hope to secure some degree of preference for its brand.

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Brand Equity
Name awareness is a critical factor in achieving brand success. Companies may spend vast sums of money and effort just to attain recognition of a new brand. But getting consumers to recognize a brand name is only half the battle in building brand equity. It is also important for the company to establish strong, positive associations with the brand and its use in the minds of consumers.
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Brand Equity
The first step in building brand equity is for the company to define itself and what it hopes to represent for consumers. The next step is to make sure that all aspects of the company's operations support this image, from its product and service offerings to its marketing programs to its customer service policies. When all of these elements support a distinctive image of the company and its products in the minds of consumers, the company has established brand equity.

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Brand Equity
Measuring brand equity can be difficult, but it can provide managers with a good indication of their company's future profitability. Measuring brand equity is not as simple as counting the number of people who recognize a brand name or symbol. It is also dangerous to assume that simply because its brand is well-known, a company enjoys strong or growing brand equity.

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Brand Equity
The most powerful brands can easily be diluted by company missteps or inconsistent marketing messages. The best way to measure brand equity depends on the particular company and its industry. In some cases assessing consumer perceptions of product quality may provide the best indication of brand equity.
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Brand Equity
In other cases, more traditional business measures such as customer satisfaction or market share may be more closely correlated with brand equity. Finding an appropriate measure of brand equity is vital in order for companies to ensure that they protect this valuable asset.

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Brand Equity
If a brand loses its distinctive image in the minds of consumers, then the branded product becomes more like a commodity and must compete on the basis of price rather than value. Customer loyalty decreases, which has a corresponding negative effect on market share and profit margins.
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Brand Equity
In order to prevent this decline, companies must consider the impact of major decisions on consumer perceptions and brand equity. Every action taken by management including the introduction of new products or advertising strategies, or the decision to lay off employees or relocate a factoryshould be assessed for its effect on brand equity.

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Brand Equity
Negative brand equity occurs when a companys brand actually has a negative impact on its business - meaning that the company would be better off with no name at all. The cause of negative brand image is poor quality, customer bad experience with the product, bad word of mouth and most important poor performance of the previous product and services. Customers are not willing to buy products with negative brand equity
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ATTITUDE OF THE CONSUMER

Beliefs and attitudes greatly influence consumer buying behavior. Beliefs are the way people think about a particular subject or product. An attitude is the individual's consistently favorable or unfavorable evaluation, tendency or feeling about a particular subject. These beliefs and attitudes shape the consumer's perception of the product.
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ATTITUDE OF THE CONSUMER

These factors may be difficult to change because they stem from the individual's personality and lifestyle. Consumers often block information that conflicts with their beliefs and attitudes. They tend to selectively retain information or even distort the information to make it consistent with their previous perception of the product.

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ATTITUDE OF THE CONSUMER

Consumer attitudes are both an obstacle and an advantage to a marketer. Ignoring consumers attitudes of a particular product or servicewhile developing a marketing strategy guarantees limited success of a campaign. Perceptive marketers leverage their understanding of attitudes to predict the behavior of consumers. These savvy marketers know exactly how to distinguish the differences between beliefs, attitudes, and behaviors while leveraging all three in the development of marketing strategies.
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ATTITUDE OF THE CONSUMER

An attitude in marketing terms is defined as a general evaluation of a product or service formed over time. An attitude satisfies a personal motiveand at the same time, affects the shopping and buying habits of consumers. A consumer can hold negative or positive beliefs or feelings toward a product or service. A behavioral intention is defined by the consumers belief or feeling with respect to the product or service.
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ATTITUDE OF THE CONSUMER

Attitudes can be influenced by many factors outside the product attributes. Social and cultural environment as well as demographic, psychographic, and geographic conditions can sometimes shape consumer behavior. Consumer attitude, if positive, is an advantage to a marketer.
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