Consumer Behaviour

Cultural Diversity
• INDIA - States & UT
• Cultures and Sub-cultures
– Food,
– cuisine,
– Languages
– practices,
– traditions,
– Beliefs & myths,
– consumption,
– Religion(within), casts,
– professions,
– regions ……… etc.
 Cultural Diversity

• Hamlets – diversity
• Purchasing Power
– Rural & urban,
– developing and developed.
• Niche Market for different products.
 Cultural Diversity

• Culture Influences consumer preferences :

– Kelloggs : when introduced cereal breakfast ( USP
Crispy), consumers were not in habit of using cold
milk in breakfast. – culture
 Cultural Diversity

• lifestyle and preferences,

• Indian consumers reflect a range of behaviour
from price sensitive based value expectations to
showcasing brand symbolism.
• Changing Lifestyles & Values – TVS Streak &
Honda Pleasure – Young aspiring independent
urban women different to male dominated
society.
 Cultural Diversity

• Functional value – associated with mass market –

brand offering at lowest price – FMCG – Small
Serving 1-2 occasions – Shampoos, tea, chocolate,
coffee, toothpaste, hair oil, detergents, soaps, cream
etc..
• Brand Penetration – India Max Films- max
celebrities Film stars & sports
 Cultural Diversity

• Diversity in Retail : - Kariana Shops.

• Market need to develop sound business models after
considering psychological , cultural, socio-cultural,
socio-economic based consumer segmentation.
 Cultural Diversity

• Unorganized Market – Not branded offering

– Manufactured by small units,
– low priced,
– Geographical units place of production
– illegal duplicates are also part
• Unorganized bigger than organised
– Eg. Watches, footwear, Detergent,
– tea, CD, apparel, cooking utensil,
– optical wear, bakery products etc.
 Cultural Diversity

• Categories like – Rice, wheat, jewelry branded

offering account for – 1-3% only,
– In such categories loyalty to middlemen than
products.
• Indian Youth(15-25 years ) 200 to 215 millions.
• Marketers to ensure the judicious mix of values,
customs, traditions, life styles, practices, theories
etc.
 Customer and Consumer

• Traditionally, customer was used to define the

– people whom the organization dealt with
externally and
– refers to the purchaser of the product or service.
 Customer and Consumer
• However, 1990s witnessed a dramatic shift and
differentiation between customer and consumer,
wherein consumer refer to
– individual who purchases product and services
– for personal consumption and are end user of a product
or service
– addresses both internal and external system, purchases
for personal consumption
– hence includes the process of obtaining, consuming and
disposing.
 Consumer Behaviour

• Consumer behaviour is relatively new field of

study developed in the mid to late 60s by the
marketing theorists having borrowed concepts
from psychology, sociology, anthropology,
economics to form new marketing discipline.
• Consumer behaviour was traditionally been a
study of “why people buy” as it becomes easier to
develop strategies to influence consumers, once
marketer knows the reasons people buy specific
products or brands.
 Consumer Behaviour
• Eventually CB expended its domain to decision
making process involving the acts of consumer
directly involved in obtaining, using and
disposing of economic goods and services
• Wherein CB means all Acts of Buying :
– Why,
– where,
– how,
– what, and
– how often.
 Consumer Behaviour

• According to Loudon & Bita

• “ CB may be defined as the decision process and
physical activity, individuals engage in, when
evaluating, acquiring, using or disposing of
goods and services.
 Consumer Behaviour

• Schiffman and Kanuk “ CB can be defined as the

behaviour the consumer display in searching
for, purchasing, using, evaluating and
disposing of products, services and ideas,
which they expect will satisfy their needs.”
 Consumer Behaviour

• As per Blackwell “activities people undertake

when obtaining, consuming, and disposing of
products and services”
• Three primary activities included in the definition
are :
– Obtaining,
– Consuming and
– Disposing
 Consumer Behaviour
• Obtaining refers to the activities leading up to
and including the purchase or receipt of a
product. These activities include searching for
product features and choices, evaluating
alternative products or brands, and purchasing,
how consumer buy, do they shop at special
stores/shoping malls/internet.
• Other issues include in obtaining are payment
mode, transportation, own consumption or
gift, information search, impact of brand on
 Consumer Behaviour

• Consuming means how, where, when, and

under what circumstances consumer use
products.
– Eg. Usage for at home or office, usage as per
instructions or unique way, experience of using
product is entertaining or purely functional.
– Do they use entire product before disposing of
it or is some of it never consumed.
 Consumer Behaviour
• Disposing refers to how consumers get rid of
products and packaging.
• Consumer Analysts might examine CB from an
ecological standpoint: How do consumer dispose of
product packaging or product remains.
• Are products biodegradable.Can they be recycled.
• Consumers might also choose to extend the life of
some products by handing them down to younger
children, donating them to charity thrift shops or
selling them on eBay.
 Consumer Behaviour
• Historically, the study of CB has focused on buyer
behaviour, or “why people buy”.
• More recently researchers and practitioners have
focused on consumption analysis, which refers to
why and how people use products in addition to why
and how they buy.
• Consumption analysis is a broader conceptual
framework than buyer behaviour because it includes
issues that arise after the purchase process occurs
- issues that often affect how people buy and the
satisfaction they receive from their purchases.
 Consumer Behaviour

• Consumer behavior is thus

– a study of individuals, groups, or
organizations and
– the processes they use to select, secure, use,
and dispose of products, services, experiences,
or ideas to satisfy needs and
– the impacts that these processes have on the
consumer and society.
 Nature of Consumer Behaviour

• External Influences

• Internal Influences
 Implications of definition

• Totality of Decisions (all decisions)

– Whether?
– What?
– Why?
– How?
– When?
– Where?
– How much?
– How often?
 Consumer Behaviour

• Consumer behavior
– may involve several people (decision making units)
– is dynamic (changes over time)
Applications of Consumer Behaviour

• Marketing Strategy
• Regulatory (Public) Policy
• Social Marketing
• Personal / Professional Skills
 Orientations to study Consumer
Behaviour

• Anthropology
• Economics
• History and geography
• Psychology
• Sociology
 Consumer Behaviour is
Interdisciplinary

•
 Psychology

• Study of human thinking and behavior

• Some issues
– Personality
– Personal development
– Cognition (thinking), perception
– Attention and its limitations
– “Learning”—e.g., acquired tastes
 Anthropology

• The study of people within and across

cultures
• Emphasis on cross-cultural differences
• Questioning of assumptions within own
culture
 Economics

• Basic economic issues

– Supply and demand
– Rational decision making
– Perfect information
• Emphasis on predicting behavior
• Complications in real life
• Behavioral economics—e.g., “mental accounting”
 History and Geography

• Origins of behavior, perspectives, and

traditions
• Impact of geography on individuals
– Isolation
– Language development
– Climate
• Geographic determinism
 Sociology

• Cultural and interpersonal influences on

consumption—e.g.,
– Fads, fashions
– Diffusion of innovation
– Popular culture
Marketing and Consumer Behaviour

Consumer Market
“Consists of all the individuals and
households who buy or acquire goods and
services for personal consumption.”
 Two Consumer Entities

Organizational
Personal Consumer
Consumer
• The individual who • A business,
buys goods and government agency,
services for his or her or other institution
own use, for (profit or nonprofit)
household use, for that buys the goods,
the use of a family services, and/or
member, or for a equipment necessary
friend. for the organization
to function.
 Development of the
Marketing Concept

Production Sales Marketing

Orientation Orientation Concept

35
 Production Orientation

• From the 1850s to the late 1920s

• Companies focus on production capabilities
• Consumer demand exceeded supply

Production Sales Marketing

Orientation Orientation Concept

36
 Sales Orientation

• From the 1930s to the mid 1950s

• Focus on selling
• Supply exceeded customer demand

Production Sales Marketing

Orientation Orientation Concept

37
 Marketing Concept

• 1950s to current - Focus on the customer!

• Determine the needs and wants of specific
target markets
• Deliver satisfaction better than competition
Production Sales Marketing
Orientation Orientation Concept

Chapter One Slide

Societal Marketing Concept

• Considers
consumers’ long-run
best interest
• Good corporate
citizenship

39
 The Marketing Concept
Embracing the Marketing
Concept
• Consumer Research • The process and tools
• Segmentation used to study consumer
• Market Targeting behavior
• Positioning

40
 The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research • Process of dividing the
• Segmentation market into subsets of
• Market Targeting consumers with
common needs or
• Positioning characteristics

41
 The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research The selection of one or
• Segmentation more of the segments
• Market Targeting identified to pursue
• Positioning

42
 The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research • Developing a distinct image for
the product in the mind of the
• Segmentation consumer
• Market Targeting • Successful positioning includes:
• Positioning – Communicating the benefits of
the product
– Communicating a unique
selling proposition

Chapter One Slide

 The Marketing Mix

Product Price

Marketing
Mix

Place Promotion

44
 Customer Value, Satisfaction,
Trust, and Retention

Successful Relationships
High level Strong
Customer of sense of Customer
value customer customer retention
satisfaction trust

Chapter One Slide

 Successful Relationships
Value, Satisfaction,
• Defined as the ratio between
Trust, and Retention
the customer’s perceived
• Customer Value benefits and the resources
• Customer used to obtain those benefits
Satisfaction • Perceived value is relative
• Customer Trust and subjective
• Customer • Developing a value
Retention proposition is critical

46
 Successful Relationships
Value, Satisfaction,
Trust, and Retention
• The individual's perception
• Customer of the performance of the
Value product or service in relation
• Customer to his or her expectations.
Satisfaction • Customer groups based on
• Customer loyalty include loyalists,
Trust apostles, defectors,
• Customer terrorists, hostages, and
Retention mercenaries
47
 Successful Relationships
Value, Satisfaction,
Trust, and Retention • Establishing and
• Customer Value maintaining trust is
• Customer essential.
Satisfaction
• Trust is the
• Customer Trust
foundation for
• Customer
Retention maintaining a long-
standing relationship
with customers.
48
 A Simple Model of Consumer Decision Making

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 49
 Successful Relationships
Value, Satisfaction, • The objective of providing
Trust, and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
Satisfaction – They buy more products
• Customer Trust – They are less price
sensitive
• Customer
Retention – Servicing them is
cheaper
– They spread positive
word of mouth
50
Top 10 Ranked U.S. Companies in Terms of
Consumers’ Trust and Respect of Privacy
Table
Top 1.2
10 Companies
• American Express
• eBay
• IBM
• Amazon
• Johnson & Johnson
• Hewlett-Packard
• U.S. Postal Service
• Procter and Gamble
• Apple
• Nationwide
 Customer Profitability-Focused
Marketing
• Tracks costs and
revenues of Platinum
individual consumers
• Categorizes them Gold
into tiers based on
consumption Iron
behavior
• A customer pyramid Lead
groups customers
into four tiers

52
 THE TRADITIONAL MARKETING VALUE- AND RETENTION-
CONCEPT FOCUSED MARKETING
Make only what you can sell instead of trying Use technology that enables customers to
to sell what you make. customize what you make.

Do not focus on the product; focus on the need Focus on the product’s perceived value, as well
that it satisfies. as the need that it satisfies.

Market products and services that match Utilize an understanding of customer needs to
customers’ needs better than competitors’ develop offerings that customers perceive as
offerings. more valuable than competitors’ offerings.

Research consumer needs and characteristics. Research the levels of profit associated with
various consumer needs and characteristics.

Understand the purchase behavior process and Understand consumer behavior in relation to
the influences on consumer behavior. the company’s product.

Realize that each customer transaction is a Make each customer transaction part of an
discrete sale. ongoing relationship with the customer.

53
 The Consumer Research Process
• Six steps
– defining the objectives of the research
– collecting and evaluating secondary data
– designing a primary research study
– collecting primary data
– analyzing the data
– preparing a report on the findings
Figure 2.1 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research Design Quantitative Research

• Method • Method
• Screener questionnaire • Sample design
• Discussion guide • Data collection instrument

Conduct Research
Collect Primary Data
(Using highly trained
(Usually by field staff)
interviewers) Exploratory
Study
Analyze Data Analyze Data
(Subjective) (Objective)

Prepare Report Prepare report

Factors Influencing Consumer
Behavior
• Personal
• Psychological
• Social
• Cultural
 Personal Factors

• Age
• Life-Cycle Stage
 Stages in Family Life-Cycle
1. Single
2. Newly Married Couples
3. Full Nest
a. Full Nest I
b. Full Nest II
4. Empty Nest
a. Empty Nest I
b. Empty Nest II
5. Solitary Survivor
 Personal Factors

• Age
• Life-Cycle Stage
• Occupation
• Economic Circumstances
• Life Style
 Psychological Factors

• “Wants”
– Based on a want or desire to have
something. Not a necessity.
 Psychological Factors
Motivation:
– Freud- Id, Ego, Superego
– Maslow - Hierarchy
– Murray- 28 Psychogenivc
– McClelland- Trio
– Alderfers - ERG
 Psychological Factors
• Motivation
• Perception
– The process by which an individual selects,
organizes, and interprets inputs/stimuli to create
a meaningful picture of the world.
• Selective Exposure
• Selective Distortion
• Selective Retention
 Psychological Factors
• Motivation
• Perception
• Learning
– Changes in an individual’s behavior
arising form experience
 Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
– Descriptive thoughts that a person holds about
something
 Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
• Attitudes
– Enduring favorable or unfavorable cognitive
evaluations emotional feelings and action
tendencies
 Functional Factors

• “Needs”
– Need over wants. Delivers to a real
“need” to have something.
 Social Class

Relatively homogenous, enduring

divisions in a society, hierarchically
ordered with members sharing similar
values, interests, and behaviors.
 American Social Classes
• Upper Upper 1%
• Lower Upper 2%
• Upper Middle 12%
• Middle 32%
• Working 38%
• Upper Lower 9%
• Lower Lower 7%
 Family Influence on Buying
Behavior

• Husband-Dominant
• Wife-Dominant
• Equal
 Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Decision
6. Confirmation
 Culture & Subcultures
• Cultures
– The accumulation of values, knowledge,
beliefs, customs, objects, and concepts that a
society uses to cope with its environment
• Subcultures
– Groups of individuals who have similar value
and behavior patterns within the group but
differ from those in other groups.
 Examples of Buying Motives:
Psychological or Functional?
• A girl wants to remember her grandmother
on her birthday.
Her primary motive is…?

Psychological
 Examples of Buying Motives:
Psychological or Functional?
• A homemaker needs a new automatic
washing machine and has had bad
experiences with semi-automatic machine
Her primary motive is …?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A teacher wants to buy a practical car to be
used for family transportation.
Her/His primary motive is …?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A career woman always buys Westren
fashionable clothes.
Her primary motive is…?

Psychological
 Examples of Buying Motives:
Psychological or Functional?
• An overweight 40 year old man wants to
loose weight so that he can reduce his blood
pressure.
His primary motive is…?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A homeowner needs to mow their lawn.
Their primary motive is…?

Functional
Consumer Buying Behavior Competency
Functional Motive Psychological
Motive

The price is 40 cents

off the regular price.

It never needs ironing.

Diamonds are forever.

Serving you since

1971.

Ninety-day warranty.
Consumer Buying Behavior Competency
Functional Motive Psychological
Motive
Running shoe with
built-in arch.
It’s all the rage—
colored action wear
and style.
Wheaties—the
breakfast of
champions!
Steel-belted radial tires
warranted for 40,000
miles
A watch—a gift she
will treasure always.
 The process by which
one person (the
opinion leader)
informally influences
Opinion
the consumption
Leadership
actions or attitudes of
others who may be
opinion seekers or
opinion recipients.
What is Opinion Leadership?

Opinion Opinion
Leader Receiver

Opinion
Seeker
 Examples of Opinion Leadership

• During a coffee break, a co-worker talks

about the movie he saw last night and
recommends seeing it.
• A person shows a friend photographs of his
recent Australian Outback vacation and the
friend suggests that using a polarizing filter
might produce better pictures.
 Special Issues(Category Specific)
• Opinion leaders are four times more likely to be
asked about political issues, three times more
likely to be asked about computers or investments,
and twice as likely to be asked about restaurants
• Information seekers seek a “strong-tie” source
when they know little about a topic, and “weak-
tie” sources when they have some knowledge
 Reasons for the Effectiveness of
Opinion Leadership
• Credibility
• Positive and Negative Product
Information
• Information and Advice
• Opinion Leadership Is Category-
Specific
• Opinion Leadership Is a Two-way
Street/communication
 Figure 15.1 Factors Leading to
Negative Word-of-Mouth Behavior
+
Individual Factors
+
Attitudinal Factors
+ Likelihood
Product Involvement Negative
of
WOM -
Repurchase

Situational Factors
+
Figure 15.2 Word-of-Mouth in Action

Financial Services
% of
respondents Automotive
that used
a referral Travel
to make one
of these Consumer Electronics
purchases
over the Computer
past year
Restaurants

0% 20% 40% 60% 80%

 Motivations Behind Opinion
Leadership
• The Needs of Opinion Leaders

• The Needs of Opinion Receivers

 The Needs of Opinion Leaders
• Involvement

1. Self involvement
2. Social involvement
3. Product involvement
4. Message involvement
 The Needs of Opinion Receivers
• New-product or new usage information
• Reduction of perceived risk
• Reduction of search time
• Receiving the approval of the opinion
leader
 Table 15.3 A Comparison of Motivations
(Excerpts)
OPINION LEADERS OPINION RECEIVERS
SELF-IMPROVEMENT
MOTIVATIONS • Reduce the risk of making a purchase
• Reduce post-purchase uncertainty or commitment
dissonance • Reduce search time
• Gain attention or status
• Assert superiority and expertise
• Feel like an adventurer

PRODUCT-INVOLVEMENT
MOTIVATIONS • Learn how to use or consume a product
• Express satisfaction or dissatisfaction
with a product or service
• Learn what products are new in the
marketplace
 Measurement of Opinion
Leadership
• Self-Designating
Method
• Sociometric Method
• Key Informant Method
• Objective Method
 Table 15.5 Measuring Opinion Leadership
OPINION LEADERSHIP
SAMPLE
MEASUREMENT DESCRIPTION OF METHOD
QUESTIONS ASKED
METHOD

SELF-DESIGNATING Each respondent is asked a “Do you influence

METHOD series of questions to determine other people in their
the degree to which he or she selection of
perceives himself or herself to products?”
be an opinion leader.

SOCIOMETRIC Members of a social system are “Whom do you

METHOD asked to identify to whom they ask?”“Who asks you
give advice and to whom they for info about that
go for advice. product category?”
 Table 15.5 continued
OPINION
SAMPLE
LEADERSHIP
DESCRIPTION OF METHOD QUESTIONS
MEASUREMENT
ASKED
METHOD

KEY INFORMANT Carefully selected key informants in “Who are the most
METHOD a social system are asked to influential people in
designate opinion leaders. the group?”

OBJECTIVE Artificially places individuals in a “Have you tried the

METHOD position to act as opinion leaders product?
and measures results of their efforts.
Table 15.6 Profile of Opinion Leaders

GENERALIZED
CATEGORY-SPECIFIC
ATTRIBUTES ACROSS
ATTRIBUTES
PRODUCT CATEGORIES
Innovativeness Interest
Willingness to talk Knowledge
Self-confidence Special-interest media exposure
Gregariousness Same age
Cognitive differentiation Same social status
Social exposure outside group
 The Interpersonal Flow of
Communication
• Two-Step Flow
– A communication model that portrays opinion
leaders as direct receivers of information from
mass media sources who, in turn, interpret and
transmit this information.
• Multistep Flow
– A revision of the traditional two-step theory
that shows multiple communication flows
 Figure 15.4 Two-Step Flow of
Communication Theory

Step 1 Step 2
Opinion
Opinion
Mass Media Receivers
Leaders
(the masses)
 Figure 15.5 Multistep Flow of
Communication Theory

Step 2
Step 1a
Opinion
Opinion Step 3
Mass Media Receivers/
Leaders
Seekers

Step 1b
Information
Receivers
 The process by which the
acceptance of an
innovation is spread by
Diffusion
communication to
Process
members of social
system over a period of
time.
 The stages through
which an individual
consumer passes in
Adoption arriving at a decision to
Process try (or not to try), to
continue using (or
discontinue using) a new
product.
 Elements of the Diffusion Process

• The Innovation
• The Channels of Communication
• The Social System
• Time
 Defining Innovations

• Firm-oriented definitions
• Product-oriented definitions
• Market-oriented definitions
• Consumer-oriented definitions
Product-Oriented Definitions

Continuous
Innovation

Dynamically
Continuous
Innovation

Discontinuous
Innovation
 Figure 15.7 Telephone Innovations

Discontinuous Dynamically Continuous Continuous

Innovations Innovations Innovations
Telephone answering machines Hold button
Call forwarding Line-in-use indicator
Call waiting Redial button
Telephone Caller ID Auto dialing feature
Banking by telephone Touch-tone service
Call-prompting systems 800 Numbers
900 Numbers

Ability to send/receive email Switch from analog to

Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax Machine Home office systems Delayed send
(combined fax, copier, Copy function
computer printer) Paper cutter
 Product Characteristics That
Influence Diffusion
• Relative Advantage
• Compatibility
• Complexity
• Trialability
• Observability
 Table 15.7 Characteristics That
Influence Diffusion
CHARACTERISTICS EXAMPLES
Air travel over train travel, cordless
Relative
phones over corded telephones
Advantage

Gillette MACH3 over disposable

Compatibility razors, digital telephone answering
machines over machines using tape

Electric shavers
Complexity
 Table 15.7 continued
CHARACTERISTICS EXAMPLES

Trial size jars and bottles of new

Trialability products, free trials of software,
free samples, cents-off coupons

Clothing, such as a new Tommy

Hilfiger jacket, a car, wristwatches,
Observability
eyeglasses
 Time and Diffusion
• Time
• Adopter Categories
• Rate of Adoption
 A sequence of
categories that
describes how early (or
Adopter
late) a consumer adopts
Categories
a new product in
relation to other
adopters.
 Figure 15.9 Adopter Categories

Early Laggards
Adopters
13.5% Early Late 16%
Majority Majority
Innovators 34%
34%
2.5%

Percentage of Adopters by Category Sequence

 Innovators: Description

• 2.5% of population
• Venturesome
• Very eager to try new ideas
• Acceptable if risk is daring
• Communicates with other innovators
 Early Adopters: Description

• 13.5% of population
• Respected
• More integrated into the local social system
• The persons to check with before adopting a
new idea
• Category contains greatest number of
opinion leaders
• Are role models
 Early Majority: Description

• 34% of population
• Deliberate
• Adopt new ideas just prior to the average
time
• hold leadership positions
• Deliberate for some time before adopting
 Late Majority: Description
• 34% of population
• Skeptical
• Adopt new ideas just after the average
time
• Adopting may be both an economic
necessity and a reaction to peer pressures
• Innovations approached cautiously
 Laggards: Description

• 16% of population
• Traditional
• The last people to adopt an innovation
• Most “localite” in outlook
• Oriented to the past
• Suspicious of the new
 Table 15.11 Stages in Adoption Process

NAME OF WHAT HAPPENS

EXAMPLE
STAGE DURING THIS STAGE

Consumer is first Janet sees an ad for a new MP3 player in

Awareness exposed to the product the magazine she is reading.
innovation.
Consumer is interested in Janet reads about the MP3 player on the
the product and searches manufacturer’s Web site and then goes to
Interest
for additional an electronics store near her apartment and
information. has a salesperson show her a unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Janet decides that this MP3 player will
that this product or allow her to easily download the MP3 files
Evaluation
service will satisfy the that she has on her computer. She also
need--a kind of “mental feels that the unit’s size is small enough to
trial.” easily fit into her beltpack.
 Table 15.11 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS STAGE EXAMPLE
STAGE
Consumer uses the Since an MP3 player cannot be “tried” like
product on a limited a small tube of toothpaste, Janet buys the
Trial basis MP3 player online from Amazon.com,
which offers a 30-day full refund policy.

If trial is favorable, Janet finds that the MP3 player is easy to

consumer decides to use use and that the sound quality is excellent.
the product on a full, She keeps the MP3 player.
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.
 Figure 15.11 An Enhanced Adoption
Process Model
Discontinuation or
Rejection
Rejection

Evaluation

Pre-existing Adoption
problem or Awareness Interest Evaluation Trial or
Need Rejection

Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
Consumer and Motivation
Figure 4.1 Model of the Motivation
Process
Learning

Needs Goal or
wants, need
Tension Drive Behavior
and fulfill-
desires ment

Cognitive
processes

Tension
reduction
 Types of Needs

• Innate Needs
– Physiological (or biogenic) needs that are
considered primary needs or motives

• Acquired needs
– Generally psychological (or psychogenic) needs
that are considered secondary needs or motives
 Goals
• Generic Goals
– the general categories of goals that consumers
see as a way to fulfill their needs
– e.g., “I want to get a graduate degree.”
• Product-Specific Goals
– the specifically branded products or services
that consumers select as their goals
– e.g., “I want to get an MBA in Marketing from
Kellogg School of Management.”
 The Selection of Goals

• The goals selected by an individual depend

on their:
– Personal experiences
– Physical capacity
– Prevailing cultural norms and values
– Goal’s accessibility in the physical and social
environment
 Motivations and Goals

• Positive Motivation • Negative Motivation

– A driving force – A driving force
toward some away from some
object or condition object or condition
• Approach Goal • Avoidance Goal
– A positive goal – A negative goal from
toward which which behavior is
behavior is directed directed away
 Rational Versus Emotional
Motives
• Rationality implies that consumers select
goals based on totally objective criteria such
as size, weight, price, or miles per gallon
• Emotional motives imply the selection of
goals according to personal or subjective
criteria
 The Dynamic Nature of
Motivation
• Needs are never fully satisfied
• New needs emerge as old needs are satisfied
• People who achieve their goals set new and
higher goals for themselves
Figure 4.6 New and Higher Goals
Motivate Behavior
Figure 4.7
Changing
Consumer
Needs
 Failure to achieve a
goal may result in
frustration. Some
Frustration adapt; others adopt
defense mechanisms
to protect their ego.
 Methods by which
people mentally
Defense redefine frustrating
Mechanism situations to protect
their self-images and
their self-esteem.
 Table 4.2 Defense Mechanisms

• Aggression • Projection
• Rationalization • Autism
• Regression • Identification
• Withdrawal • Repression
 Arousal of Motives
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal
Figure 4.8
Cognitive
Need
Arousal
 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
– Need to consider needs, attitudes, beliefs, etc. in
understanding consumer behavior
Figure 4.9 Maslow’s Hierarchy of Needs

Self-Actualization
(Self-fulfillment)
Ego Needs
(Prestige, status, self esteem)

Social Needs
(affection, friendship, belonging)

Safety and Security Needs

(Protection, order, stability)

Physiological Needs
(Food, water, air, shelter, sex)
 Table 4.3 Murray’s List of
Psychogenic Needs
Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention, Construction

Needs Reflecting Ambition, Power,

Accomplishment, and Prestige:
Superiority, Achievement, Recognition, Exhibition, Infavoidance,
Inviolacy, Defedance, Counteraction

Needs Connected with Human Power:

Dominance, Deferrence, Similance, Autonomy, Contrariance
 Table 4.3 Murray’s List of
Psychogenic Needs

Sado-Masochistic Needs :
Aggression, Abasement

Needs Concerned with Affection between People:

Affiliation, Rejection, Nurturance, Succorance, Play

Needs Concerned with Social Intercourse:

Cognizance, Exposition
Figure 4.10 Appeal to Egoistic
Needs
 Figure 4.11
Appeal to
Self-
Actualization
 A Trio of Needs

• Power
– individual’s desire to control environment
• Affiliation
– need for friendship, acceptance, and belonging
• Achievement
– need for personal accomplishment
– closely related to egoistic and self-actualization
needs
 Figure 4.12
Appeal to
Power Needs
Figure 4.13
Appeal to
Affiliation
Needs
Figure 4.14
Appeal to
Achievement
Needs