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CHAPTER 3
CONSUMER BEHAVIOUR
3.1 Consumer Behaviour
3.2 The Consumer Decision – making process
3.3 Family Decision Making – The Role of New (Upwardly-mobile) Urban
Family (NUF)
3.4 Buying Motives
3.5 Reasoning of Buying Process
3.6 Levels of consumer decisions
3.7 Determinants of Consumer Behaviour
3.8 Different Models Of Consumer Behaviour
3.9 Consumer Behavior for Cement
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CHAPTER 3
CONSUMER BEHAVIOUR
3.1 CONSUMER BEHAVIOUR - Defination
Consumer behaviour can be defined as the decision-making process
and physical activity involved in acquiring, evaluating, using and disposing of
goods and services. This definition clearly brings out that it is not just the
buying of goods/services that receives attention in consumer behaviour but,
the process starts much before the goods have been acquired or bought. A
process of buying starts in the minds of the consumer, which leads to the
finding of alternatives between products that can be acquired with their
relative advantages and disadvantages. This leads to internal and external
research. Then follows a process of decision-making for purchase and using
the goods, and then the post purchase behaviour which is also very important,
because it gives a clue to the marketers whether his product has been a
success or not.
To understand the likes and dislikes of the consumer, extensive consumer
research studies are being conducted. These researches try to find out:
What the consumer thinks of the company’s products and those of its
competitors?
How can the product be improved in their opinion?
How the customers use the product?
What is the customer’s attitude towards the product and its
advertising?
What is the role of the customer in his family?
Consumer behaviour is a complex, dynamic, multidimensional process,
and all marketing decisions are based on assumptions about consumer
behaviour. Marketing strategy is the game plan which the firms must adhere
to, in order to outdo the competitor or the plans to achieve the desired
objective. In formulating the marketing strategy, to sell the product effectively,
cost-benefit analysis must be undertaken.
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There can be many benefits of a product, for example, for owning a
motor bike one can be looking for ease of transportation, status, pleasure,
comfort and feeling of ownership. The cost is the amount of money paid for
the bike, the cost of maintenance, gasoline, parking, risk of injury in case of
an accident, pollution and frustration such as traffic jams. The difference
between this total benefit and total cost constitutes the customer value. The
idea is to provide superior customer value and this requires the formulation of
a marketing strategy. The entire process consists of market analysis, which
leads to target market selection, and then to the formulation of strategy by
juggling the product, price, promotion and distribution, so that a total product
(a set of entire characteristics) is offered. The total product creates an image
in the mind of the consumer, who undergoes a decision process
3.2 The Consumer Decision – making process
Every purchase made by the consumer is in response to a problem.
Once he recognizes his need, he wants to ascertain how best to satisfy it. The
complexity of the consumer’s decision-making process greatly depends on
the extent of his involvement with the product of service in question – the
greater the degree of involvement; the more complex is the decision-making
process. A consumer’s involvement is highest when the products are related
to an individual’s ego or self-image, or when they involve some risk to the
consumer – financial, social or psychological. In such cases, consumers are
prepared to spend more time and energy over considering various alternative
products carefully before making the final decision. On the other hand, low-
involvement purchases are those to which consumers do not attach much
importance. In such cases, the time and energy spend by the consumer in
arriving at a final decision are minimal.
Now, if consumers have to shift from buying their usual brand of
detergent (for which decision making is easy and problem-solving is a routine
affair) to a new brand in response to some promotional offer and they spend
some time and effort before they make their choice, they engage themselves
in limited problem-solving. The decision-making process becomes
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increasingly complex when they have to buy a sophisticated product such as
a car or a house involving a high degree of risk.
It needs to be emphasized that the formulation of an appropriate
marketing plan and strategy necessitates a thorough understanding of the
consumer’s decision-making process. Moreover, one has to also keep in mind
the fact that there are at least five major activities in which the buyer is
actively involved in while making a purchase decision.
These are :
Problem Recognition
Pre Purchase Activity-Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchse Decision
3.2.1 Problem Recognition or Felt Need
A typical consumer has several needs to satisfy, all of which compete
for the limited money at his disposal. Prior to making any purchase, he
experiences a drive or motivation towards buying a certain product resulting
from the desire to satisfy a specific need. It is for the consumer to decide the
order of priorities in which his needs are to be satisfied. The nature of the
need determines the goal, which could be relief from pain, the pleasure of
dining out, or getting a present for a loved one, etc. Marketers need to base
their strategies on identifying consumer needs and accordingly, offer products
or service which can fill those needs. Advertising, promotion, sales campaigns
and other marketing communication tools play a significant role in influencing
consumers at this stage.
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3.2.2 Pre-purchase Activity
Once a goal to satisfy a specific need is chosen, the consumer
engages himself in pre-purchase activity. This includes search for information
about the goal/object and evaluation of various options before the actual
decision is made. The extent to which information is collected depends on the
prior knowledge, attitude, experience motivation and involvement of the
individual consumer in respect of the products in question and also the market
characteristics, viz., the number of options available, price range, etc. Further,
situation variables like time constraints, perceived risk, financial limitations,
etc. also play a role at this stage of the evaluation process.
Figure 2 Purchase Involvement and Types of Decision Making
The amount of time for pre-purchase activity also depends on his/her
level of involvement in the purchase decision. For products which are priced
low and are articles of daily consumption where a number of substitute
products are available, there is low involvement and choice is made relatively
rapidly with less efforts. On the other hand, in case of high-involvement
situations such as purchasing TV sets or expensive consumer durable items
or cars, the time taken to decide will be lengthy and the level of involvement
will be high. In low purchase involvement item companies create awareness
about the products through advertisement and point-of-purchase displays,
whereas in case of high-involvement items, advertising goes further and tries
to influence the consumer with persuasive message against competitor’s
products.
3.2.3 Evaluation of Alternative Solutions
The evaluation process involves a consideration of product utility and
attributes, features, price-quality equation and brand images. The number of
Low Purchase Involvement High Purchase Involvement
Routine Decision Making Limited Decision Making Extended Decision Making (eg., soft drinks, bread, milk) (eg. Clothing, shoes) (eg. High priced goods, homes,
Motor bikes, cars, etc )
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criteria considered varies with the product, as does the importance of each
criterion. And the process of evaluation ends when the consumer finally
selects the product to buy.
3.2.4 Purchase decision
The activity preceding the decision to purchase a product finally leads
the consumer to making the buying decision. However the decision may also
be influenced by people other than the consumer himself, like the initiator or
the influencer, who either suggested the product or implicitly or explicitly
influenced its purchase in some way. Moreover, the user also might be
distinct from the buyer so that the decision-making unit consists of the
initiator, influencer, buyer/decision maker and user.
3.2.5 Post Purchase Decision
This refers to the degree of satisfaction or dissatisfaction experienced
by the consumer after using the product. This category of purchase process
says that some consumers experience post-purchase dissonance or a
psychological discomfort after making the purchase. When the purchase
made is important, difficult or irrevocable, such as buying a car or a house,
when dissonance is likely to occur, manufacturers can help to reduce
consumer’s dissonance by emphasizing the superior qualities of the products
in manuals or packaging or by giving quality assurance.
Knowledge of consumer behaviour is indispensable for making sound
marketing decisions. Study of consumer behaviour involves an understanding
of diverse factors such as demographics, perceptions, attitudes, preferences
and aspirations of consumers. There is no single theory or model which
explains why consumers behave the way they do. The study of consumer
behaviour is complex and multi-dimensional. There are several consumer
behavioural models based on insight drawn from different disciplines including
economics, psychology, sociology and social anthropology. Most important
among them are the Economic Model, Psycho-analytical Model, Learning
Model and Socio-analytical Model. For formulating an appropriate marketing
plan and strategy, one should have clear understanding of consumer
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decision-making process. There are at least five major activities in which the
consumer is involved while making a purchase decision. These are problem
recognition, pre-purchase activity, Evaluation of alternatives, purchase
decision and post-purchase decision.
3.3 Family Decision Making – The Role of New (Upwardly-mobile) Urban
Family (NUF)
Marketers in India are increasingly focusing their attention on the NUF
– city bound bundle of wife/mother, husband/ father and son/daughter. With
the breaking up of the joint family system, the new urban family has come into
prominence. Despite the individualism of its members, it is the interactive role
of the members of NUF that matters in taking buying decisions. Family
members play a variety of roles in decision making. ‘The consumption may be
personal, but the choice is not. Every member of the NUF may have his or her
own favorite breakfast cereal, but the choice must be ratified by the rest.’
Whether it is Maggi soup, Asian Paints, Surf Excel detergent, LG or Samsung
TVs, Hamam soaps or Digjam suitings, advertisers increasingly focus on the
family.
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Table-4
The Nuclear Urban Family and Consumer Products
Perso- nal
Produ- cts
Family
Toiletries
House-
hold
Durables
Family Auto-
mobiles Consumables
Financial
Products Vacations
Educational
Products
Father
Passive
User
Passive
User
Decider,
Buyer
Decider,
User Passive Unser
Decider,
Initiator Initiator
Decider
Buyer
Decider/’
Buyer
User /
Initiator /
Gate
keeper
User
Co-Decider /
Initiator /
Influencer
Influencer
Co-Decider
/ Buyer /
Gatekeeper
Influencer Influencer /
Buyer
Mother
Buyer User User Passive User Decider /
Buyer
Passive
User
Decider /
Buyer Influencer
Decider /
Influencer
Influencer/
Decider
Influencer /
Co-Decider Initiator
Influencer /
Co-Decider
Influencer /
Co-Decider
Co-
Decider Co-Decider
Children
Users Influencers Users Users Influencers Influencers Initiators
Influencers/
Co-
Deciders
Buyers Initiators /
Gatekeepers
Co-deciders /
Users
Influencers Co-
Deciders /
Users
Co-
Deciders
Co-Deciders
Source : NUF Gen Marketing, Business Today, February 22, 1999.
3.4 Buying Motives
We purchase goods, due to certain motives. Motives refer to thought,
urge, motion, drive, etc. which make a buyer to react in the form of decision.
Any urge which makes a person to take purchase decision is called as buying
motive. Motive is an inner urge which moves one into action. It is not mere
desire to buy. The term ‘buying motive’ may refer to the feelings, thought,
emotion and instinct which arise in a customer a desire to purchase and
possess something.
The forces that are motivating an individual to buy are broadly
classified into two, namely, external forces and internal forces.
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External Forces. External forces include nationality, religion, education,
occupation, income, social status, area of residence, culture of the society in
which the customer moves.
Internal Forces, Internal forces are those forces which have origin in minds
of the people. These forces may be of physical and psychological nature.
Internal forces which motivate the buying behaviour may be classified into two
groups :
(i) Rational motives, and
(ii) Irrational motives
Rational motives include dependability in quality, durability, happiness,
efficiency in operation and use, economy in use, enhancement of earnings
and productivity of property.
Irrational motives include pride and ambition, security, personal
comfort, security from danger, comfort and obtaining greater leisure,
cleanliness and emotional appetite.
The following are some of the important buying motives :
1. Comfort and Convenience. Comfort and convenience motive is an
important factor in purchasing luxury articles, labour-saving devices
and convenience at work, at home, and in recreation. Human beings
always would like to do things in an easy way and in comfort.
2. Gain and Economy Motive. Some people desire to earn and save
money. Making a profit or saving is a human desire. This desire
induces to purchase goods at lower prices and have monetary gains.
Every consumer desires his money's worth.
3. Compliments. Everybody likes to be complimented. He wants to be
recognised as an important persons' by others. He likes to be in a
higher position where he can command others. To ensure this thing he
may buy certain products.
4. Fashion. Everybody wants to be a fashionable. According to the
change in fashion, the buying motives. also changes. Marketer can
utilise this motive of the consumer very Well and produce goods
accordingly to suit the change in fashion.
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5. Variety. Everybody wants to be admired by others. They like to have an
important place in the society or among friends, etc. So they spend
more money, time and effort on their personal appearances. Hence
variety can be used by the marketer to design their products.
6. Sex and Romance. This motive occurs in both the young and the old.
Sex is a motive in the sale of articles like cosmetics, fancy clothes, etc.
For example, men use cars, etc. to attract women. Hence the sex
motive is a powerful motive which a marketer can make use to achieve
his marketing objective.
3.5 Reasoning of Buying Process
The most basic and important requirement for the marketer is to
understand how consumers make choices. Human choice behaviour theory of
reasoned action which states that- "Generally speaking human beings are
usually quite rational and make systematic use of information available to
them. People consider the implications of their actions before they decide to
engage or not to engage in a given behaviour.
Thus, decision-making is a rational and conscious process in which the
consumer evaluates each of the available alternatives to select the best
amongst them. Each decision you make involves an- elaborate mental
thought process, a degree of active reasoning, though on the surface it may
not always seem to be so. This may be because over a period of time you
have taken certain decisions so many times that they now seem to be made
almost automatically but that is not true at all. Even your daily decision of
buying a loaf of bread involves the element of active reasoning as buying a
new sofa set for your drawing room. However, in the former case, the extent
and intensity of active reasoning may be much less as compared to the later.
In the case of bread, the only decision variables may be which brand,
quantity and retail outlet but in case of buying a sofa set the decision variables
are far more in number. These may be:
ready-made or made to order
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from a furniture shop or to be built at home
type of material for frame : Wood, Steel, Aluminium
type of material for cushion : Cloth, Rexine, Leather
Design: with or without arm-rests, height, depth of seat, seating
capacity, loose or fixed cushion.
Thus, depending on the type of decision being made, the degree and
strength of active reasoning will vary.
There are three factors which influence the degree of active reasoning that
is undertaken by the consumer in his process of decision-making. These are:
i. Involvement,
ii. Affirmative differentiation, and
iii. Time pressure
(i) Involvement: When a product is perceived to be of great personal
importance to the customer, such as personal clothing, or its purchase
involves a great deal of money or risk such as jewellery, car, house, company
shares, the level of involvement in making the decision is likely to be very
high. The consumer is likely to spend a great deal of time before arriving at
the final decision. In contrast, when buying items which do not reflect much on
the consumer’s personality or their purchase involves small amount of money
or the risk associated with them is not high, the degree of involvement of the
consumer is likely to be low. Products such as shoes, polish, toilet soap,
toothpaste, biscuits, etc. would fill in this category.
(ii) Differentiation: When the consumer perceives that the various
alternatives which are available are very different from one another in terms of
their features and benefits offered, he is likely to spend more time in gathering
information about and evaluating these different features. On the other hand,
in case of products which are not very different from one another either in
terms of their features or benefits offered, the consumer is bound to perceive
them as being almost the same and buy the first available product/brand
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which satisfies his minimum expectation. He would not like to spend much
time in evaluating the various alternatives. The various brands of washing
powder available in the market today are an excellent example of low level of
differentiation with the consumer perceiving the different brands to be offering
almost identical benefits. All the brands, such as Nirma, Surf, Ariel, etc. look
similar with identical packing and carry almost the same price tag. Till a few
years -ago, the two-wheel scooter market in India was highly undifferentiated
with Vespa and Lambretta offering almost identical scooter to the consumers
in terms of basic features. But today the same market is highly differentiated.
The consumer has a wide range of brands to choose from such Honda
Activa,Honda aviator,Suzuki Access, Mahindra Duro, etc each offering a
variety of shapes, horse power and many other innovative features to choose
from. A potential consumer of scooter would have to spend considerable time
in evaluating each brand before he is in a position to make his decision.
(iii) Time pressure: When you are under pressure to make a decision
quickly, you cannot afford to spend a long time finding out about the various
products or brands. You would probably buy whatever is readily available.
While travelling in your car to a hill station your car tyre bursts and you need
to buy a new one at that time you would buy the brand that is available at
whatever price without giving it too much thought. But under a different
situation, when you need to buy new tyres, you would certainly like to find the
features of nylon and radial tyres and evaluate various brands, e.g., Modi,
MRF, Dunlop and Apollo, etc. on their individual advantages and
disadvantages.
There is a lot of difference between the purchase of a new car and
toothpaste. Therefore, based on the degree of buyers’ involvement and the
degree of difference among brands, buying behaviour can be classified into
four types:
1. Complex buying behaviour
2. Dissonance reducing buying behaviour,
3. Habitual buying behaviour, and
4. Variety-seeking buying behaviour.
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3.6 Levels of consumer decisions
As a buyer or consumer you are all the time making decisions such as
what product to buy (a book or a shirt as a birthday present for your friend),
which brand (Lux, Fiama Di wills, Cinthol, Pears, Dove, etc toilet soap) from
where (Super Bazar, nearby corner shop, chemist), etc. Table presents
summary of the different levels of purchase-rated decisions most commonly
encountered by consumers. The table highlights the broad range of choices
the consumers have to select from when making a decision, starting from the
generic product category level to the brand level and retail outlet level.
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Table 5
Levels of Purchase-related Consumer Decisions for Personal Transport
Level of Decision
Generic Product
Category Level
Alternative
Two-Wheel or Four-Wheel vehicle
Power Driven
(i) Scooter (i) Car
(ii) Motorcycle (ii) Jeep
(iii) Moped
Brand Level Scooter Car
(i) Activa (i) Maruti SX4
(ii) Duro (ii)Honda City
(iii) Acess (iii) Hundai i10
(iv) Swift
(v) Scorpio
Motorcycle
(i) TVS
(ii) Yamaha
(iii) Suzuki
(iv) Hero
Honda
Two Wheeler
Jeep
(i) Activa (i) Maruti Gypsy
(ii) Access (ii) Mahindra
(iii) Battery Behicle
Retail Level Types of retail Outlet
(i) Company Showroom
(ii) Exclusive brand dealer outlet
(iii) Multi-brand dealer outlet
(iv) Dealer outlet with own servicing facility
(v) Dealer outlet closest to home
(vi) Dealer outlet recommended by friend
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3.7 Determinants of Consumer Behaviour:
Figure 3
3.7.1 PSYCHOLOGICAL BEHAVIOUR
3.7.1.1 Perception
Perception is the process by which people select, organize and interpret
stimuli through the five senses of sight, sound, smell, touch and taste. More
specifically, it is the meaning we attribute to incoming stimuli received through
our senses. No two people perceive a stimulus in exactly the same way as
they do not have the same view of the world. The principles of perception as
revealed by various studies are:
It is selective: Selective perception implies than an identical
advertisement package or product may be perceived differently by two
consumers. Consumers accept messages that are in agreement with
their previously-held beliefs while they reject those which do not
conform to them. Further selective perception also means the
PSYCHOLOGICAL BEHAVIOUR Motivation Perception Attitude Learning Self Image Personality
ECONOMICS
Utility Value
Supply Demand
SOCIAL Culture
Sub Culture Social Class
Reference Groups Family
Demographic
Age Sex
Region
Consumer Behaviour
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consumers are able to attend to only a small portion of stimuli to which
they are exposed. An average person may be exposed to thousands of
messages every day all of which he cannot possibly attend to and most
stimuli will be screened out. This offers challenges to advertisers -
since consumers are being exposed to so many advertising stimuli –
advertisers need to be highly creative to attract consumers’ attention
towards their products and services.
It is well-organized: Perceptual organization means that consumers
give meaning to perception. They group information from various
sources into a meaningful whole to be able to better comprehend it and
act on it. The picture on the television screen, for example, is made up
of thousands of tiny dots, which we need to group together in order to
see the picture as a whole.
It is dependent on stimulus factors: Stimulus factors are certain
characteristics of a physical object such as size, weight or shape and
also include intensity, contrast, frequency, colour and movement.
It is dependent on personal factors: The individual’s past experiences,
motivations and expectations as also his needs, moods, memory,
values and ability to see or hear the message – all govern his
perception.
3.7.1.2 Perception of Colours
Companies spend a great deal of time and money of deciding which
colours are most effective when marketing their product.
Colours have different meanings; for instance, black denotes power
(men in powerful positions usually wear black suits) or it may also mean
sadness. Red usually means energy; pink evokes feminity and softness or
calm while white means purity and truthfulness. Yellow denotes cheer or
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brightness. Orange is symbolic of loudness or flashiness while purple signifies
royalty.
Colours grab the attention of consumers. They have emotional and
psychological effects and play a role in determining loyalties. They influence
the brand logo, image, display and the product itself. Further, they make deep
impressions on the minds of consumers and help them to recall the image of
the product quickly. In view of the above, considerable attention is being paid
in the use of colours for marketing products. Lifebuoy for example, has been
using red as its basic colour to symbolize strength as well as purity. Cadbury
uses purple colour to denote happiness and a rich indulgent experience.
Kodak employs yellow colour to evoke a pleasant and cheerful image. Based
on their perception, consumers develop images of products, brands, retail
stores, prices and advertisement, all of which directly influence their purchase
behaviour.
What the consumer wants and buys is a package of symbols
appropriate to his or her self-image. The image of a product includes not only
the picture the consumer conceives of the intrinsic qualities of the product, but
also all the ideas and thoughts he or she has about it – the sort of people who
use it, the kind of stores that sell it, the character of its advertisements, the
‘personality of the firms’ that make it – in other words, the total of all the
stimuli related to the product received by the buyer. All these product
attributes are referred to as ‘Product Image’.
Furthermore, the principles of perception, as set out above, help
marketers to position their brands to meet the needs of their target consumer
groups. Product advertisements and packages are made more attractive and
meaningful to capture attention. An understanding of the perception of
consumers about products and services they buy helps to build a favourable
corporate or store image in the minds of consumers.
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3.7.1.3 Perceived Risk in the Purchasing Process
In purchasing a product like a washing machine or a camera,
consumers are uncertain about the future outcomes of their decisions. Their
perceived risk in doing so is high, especially when they have had either no
previous experience in using the product or have had a bad experience with it,
or have limited financial resources. Few perceived risks can be:
Financial (the purchase of a high-priced product such as a car entails a
greater risk than that of a low-priced one)
Performance-oriented (the product purchased may not work or may not
be safe)
Social (products such as cosmetics, deodorants or clothing may not
work to enhance the attractiveness of the user or may not be
acceptable to one’s colleagues or family members)
Psychological (products bought may not fit in with one’s self image as
in the case of clothing or automobiles)
Physiological (products such as medicines or certain food items may
have side-effects or potential health hazards).
In order to succeed in their efforts, marketers have to understand the risk
perceptions of consumers and develop appropriate strategies to reduce the
perceived risk which the buyer takes while making the purchase.
Thus marketers assume perceived risk and reassure prospective
consumers about the proven quality and reliability of the product or service in
question and ensure its adequate performance over a long period of time.
Some risk-reduction strategies employed by marketers are:
i. Getting endorsements: In an effort to attract customers towards their
products, marketers often obtain endorsements from well-known
personalities for their promotion campaigns. For example, Hyundai got
the endorsement of Shahrukh Khan, the well-known film star, to assure
the consumers about the excellent quality and high performance level
of its Santro car.
ii. Offer of free samples: Some companies resort to the practice of
offering free samples of its new products to consumers to give them an
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opportunity to try these products before making a purchase
commitment for the same.
iii. Use of ISO certification: With a view to assuring customers about the
high quality and reliability of their products, firms obtain and emboss
the ISO certification mark on them, indicating their confirmity to world
quality standards.
iv. Promotion of major brand image: In order to assure customers
against the possibility of any risk involved in using their products,
companies use well-known brands as a product promotion strategy.
For example, for promoting Indica, the brand name of Tata was used
effectively to infuse greater confidence among consumers in the
product and ensure that they do not perceive any risk in using it.
Besides, in order to attract and retain customers, companies provide
the consumers with complete performance information.
v. Money-back guarantee: Sometimes, firms influence consumers to buy
brands by offering money-back guarantee with the product.
3.7.1.4 Attitide:
An attitude is a ‘predisposition’ to act. It comprises ‘person’s enduring
favourable or unfavorable evaluations, emotional feelings or pro or con
tendencies towards an object or an idea’. Often, purchase decisions are
based on prevailing attitudes about the product, store or salesman.
To ensure success of their sales efforts, marketers have to
obtain/evoke a favourable consumer attitude towards their company and its
products. This necessitates designing products to suit the needs and
preferences of consumers and the adoption of an appropriate product-
promotion strategy, which would require a proper understanding of the
existing attitudes of consumers. Marketers need to reinforce favourable
attitudes and also change unfaovourable ones – both of which are legitimate
marketing objectives.
Attitudes develop during one’s lifetime through experiences, group
affiliations, exposure to different media and promotional efforts guide our
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thoughts (cognitive), affect our feelings (affective) and influence our behaviour
(conative).
Figure 4 Three components of Attitude
The above components of attitudes are explained below:
a) The cognitive or informational component of attitude refers to a
person’s knowledge or beliefs about an object. If consumers, for
example, believe that an important characteristic of a refrigerator is its
excellent deforsting system, then there is the likelihood that they
purchase that brand, if and when they decide to buy a refrigerator.
b) The Affective or feeling component is usually associated with products
that appeal to a person’s aesthetic sensibilities, such as perfumes or
clothing. It refers to his overall feelings about an object.
c) The Behavioural component of an attitude relates to any action a
consumer takes on the basis of his or her beliefs and feelings. A
decision to purchase or not to purchase a newly launched shampoo,
use it or recommend it to friends, etc., would reflect the behavioural
component of attitude.
Functions of Attitude
Attitude has different functions; Daniel Katz has proposed four types of
attribute functions (2001), which are discussed below:
The utilitarian function
The value-expressive function
The ego-defensive function
The knowledge function
Behavioural‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Preference or intention to buy or other behavioural responses
Affective‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Emotions or feelings about an object or attribute
Cognitive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐knowledge and beliefs about a specific attribute or object
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(i) The utilitarian function: Attitudes serve a utilitarian function in guiding
consumers towards fulfilling their cherished desires, For example, the
theme, ‘Rin washes whitest’ appeals to consumers who value white
clothes (and thus, have a positive attitude towards the product) and
thereby serves to enhance the utility of the brand ‘Rin’.
(ii) The value-expressive function: Attitudes can reflect a consumer’s
self-image and value system, particularly for a high-involvement
product. Advertisers often appeal to the ‘value expressive’ nature of
attitudes, implying that the use of purchase of a certain item will
enhance the consumer’s sense of achievement or independence.
Examples of brands that appeal to consumers with a self-image are,
‘The man cologne’ by Revlon, which suggests that the user is a
confident, warm and assertive male and Honda motorcycle, which is
targeted at the youth, who are outgoing and prefer a powerful bike.
(iii) The ego-defensive function: Many products are purchased to avoid
situations that cause anxiety and fear. These include mouthwashes,
which are often used to prevent bad breath that can lead to social
ostracism. Advertisers capitalize on these fears by demonstrating how
people can gain social acceptance through the use of certain products
like Lifebuoy Gold soap. The advertising compaign for this product
highlights a teenager’s concern about pimples, to which the mother
responds by stating that she could take care of her pimples by using
Lifebuoy Gold soap’. Here, the attitude of the consumer helps to
protect him from being shunned by society.
(iv) The knowledge function: the knowledge function of attitudes refers to
the consumer’s knowledge about the various attributes of the product
he intends to buy, which helps to remove any uncertainty and
confusion. To cite an example, an Asian Paints ad talks of its many
attributes – it highlights the efficiency of the product, talks of the many
colour combinations in which it is available giving the houses which are
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painted with it an attractive look and above all, the inner joy it evokes
and the confidence it exudes among the users.
Marketers can change consumer attitudes by making appropriate
changes in each of the attitude components. For example, to highlight the
cognitive component, they can modify beliefs about the brand’s attributes (by
emphasizing the value of pizza as a real meal), alter the relative importance of
brand attributes (by claiming that Vanish is a powerful stain remover and is
easy to use, unlike other detergents which only whiten clothes), add new
beliefs by pointing out the beneficial features of the new product (such as a
newly-launched bleaching powder that smells of lemons) or change consumer
beliefs about the ideal attributes of the product (by lying emphasis on health,
as in case of olive oil).
It is possible to change existing beliefs about competitors’ products by
projecting a more favourable image of one’s own products (for instance, by
claiming that State Bank of India has more ATM machines than any other
bank). Any attempt to change the affective component might involve preparing
appealing ads that attract consumers towards the company or the product or
increasing the amount of exposure to the product (based on the idea that
familiarity enhances a person’s liking or attraction).
Companies can also change the behavioural component by inducing
people to buy their products for example, by introducing a fee sample test
drive, or a price-reduction scheme, in the hope that increased use of the
product will enhance consumer satisfaction and would thus, instill positive
beliefs and feelings about it. For example, when instant coffee was introduced
by Nestle, free samples of the product were offered to all visitors to certain
fairs and exhibitions. Similarly, when Bru was launched in south India, the
marketing company distributed the product at a heavy discount in all hotels
and restaurants.
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3.7.1.5 Personality and life style
More than demographics, characteristics of personality and lifestyle of
consumers provide a better understanding of consumer behaviour and they
often influence marketers’ advertising and promotion strategies. Life styles of
consumers indicate how they spend their time (activities), their interests in
terms of what they consider important, how conscious they are of their style
and appearance etc. As lifestyle forms an important part of decision making
marketers consider it an important factor in desining their advertising and
promotion strategy.
3.7.2 Socio- Analytical Model
Apart from individual influences, certain environmental factors also
influence consumer behaviour. These broadly consist of social influences,
reference groups, opinion leaders, social class, family roles and other cultural
forces. These are explained below:
3.7.2.1 Social Influences
Thorstein Veblen, though as an orthodox economist, was basically a
social thinker, who was greately influenced by the science of social
anthropology. He saw man as a ‘social animal’- - conforming to the general
forms and norms of his larger culture and to the more specific standards of
the sub-cultures and face-to-face groupings to which his life is bound. His
wants and behaviour are largely moulded by his present group and
aspirational group membership. His hypothesis is that economic consumption
is motivated by our desire to please others. We take cues on how to behave
by observing the actions of those around us. Thus, face-to-face groups,
reference groups, cultures and sub-cultures, and social class greatly influence
consumers’ attitudes and behaviour.
When De Beers wanted to sell their diamonds in India, they faced a
major challenge in changing the attitudes of consumers towards purchase of
diamonds. Majority of Indian consumers were fond of gold jewellery and
ornaments. Gold was traditionally seen as a store of value which could be
turned into cash at any time of emergency. However, their study also revealed
that some upper-end customers considered gold as ‘old fashioned’ and
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regarded diamonds as ‘modern’, ‘young’ and ‘eternal’. The company targeted
the premarital segment with an ad campaign which focused on wedding as
the only and the biggest occasion for ‘a gift from parents to daughter’. Soon,
they found that the post-marital opportunity was huge in terms of the number
of women in the target set. Two options were considered: one to look at the
woman as a self-purchaser and another was the romantic format of the
husband surprising the wife with a diamond gift. Most women said that they
would prefer the later. De Beers launched an ad campaign that featured the
husband gifting a diamond to his wife in a hotel room while the anxious
children check on the progress of the process over the phone.
Simultaneously, the company mounted a special education programme for
jewelers to make them diamond-savy. The result was that diamond sales
started growing manifold, inviting more competition.
3.7.2.2 Face to Face Group
As children, we are associated with a group of our immediate family
through which we fully satisfy our physiological and social needs. As we grow
older, we make friends and become affiliated with more and more groups
such as neighbors, classmates and other peer groups, which enable us to
attain a certain status and perform a role in society. The status of an individual
refers to his ‘relative position in a group’ and his role as ‘the rights and duties
expected by other members of the group from that individual holding a certain
position in the group’. This position influences our consumption activities as
well.
3.7.2.3 Reference Groups
This group may consist of members of a higher social or economic
class, celebrities, sportsmen or any other gathering of individuals, whom the
consumer tries to immitate. It is the group that individual members consider as
a point of reference. They look to it for setting standards of behaviour, goals
and value and also for guidance in purchasing decisions. Reference groups
play a key role in defining individual consumer needs and opinions and exert
a powerful influence on purchasing decisions.
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Like reference groups, opinion leaders also exert an influence on
consumer behaviour. They are usually the first to purchase new products and
are quite knowledgeable about them and their attributes, which explains why
they often act as a source of information for others. For example, if you are
interested in buying a camera, you could contact a friend who is a
photography buff-who is your opinion leader-for his advice on what to buy and
from where. Opinion leaders are often difficult to identify for the marketer, who
has to depend on various promotion and communication strategies to reach
them in order to leverage their influence for promoting sales.
3.7.2.4 Cultures and sub-cultures
Cultural influences also affect consumer behaviour. Culture can be
defined as a set of ‘complex values, ideas, attitudes and other meaningful
symbols created by man to shape human behaviour and the artifacts of that
behaviour as they are transmitted from one generation to the next. “Simply
put, culture is a way of life that is learnt and handed down from generation to
generation. Every culture has a set of norms of rules that dictates what is right
and wrong and what is acceptable and unacceptable. A company’s success in
the market place largely depends upon how it adapts its products and
services to fit in with the values and norms of the culture of the region where it
is based.
Sub cultures take shape when a sub-group based on region, religion or
caste shares common beliefs and experience. India is a vast country known
for its diverse culture and people, and marketers need to take into account the
varying consumer preferences and purchasing behaviour of people living in
different parts of the country, who are profoundly affected by the enormous
cultural, social and economic variations.
3.7.2.5 The Seven Pursuits of Consumer India (Social Class)
On the basis of her analysis of the socio-cultural context in India,
Hamsini Shivkumar identifies the following set of seven pursuits that drive
consumption today.
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The Pursuit of Upward Mobility: Image and lifestyle-consciousness is
a key pursuit.
Expanding Social Network: Middle-class consumers of all ages are
engaged in creating virtuous cycle of fame, influence, power and
money with enabling technology.
The Quest for Lifelong Vitality: Desire to look young and beautiful
and live with vitality even in old age.
Pride in BEING INDIAN: Resurgence of pride in being Indian with
greater interest in past heritage.
Pleasure in the Now: Pleasure in eating out, shopping, travelling and
other forms of hedonism.
Spirituality: Modern middle class seeks new forms of spirituality suited
to the times – Art of Living, Buddhism, Reiki, and Gita. Etc.
Individuality: Importance to greater individualism, independence and
self-actualization.
3.7.2.6 Social Class
Like reference groups and opinion leaders, social class also affects consumer
behaviour. The social class of a person is determined by his occupation,
income, education, family background and dwelling, as described in table 6:
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Table-6
Various Social Classes in India
Social Class Membership
Population
percentage
as per
population
Cencus 2001
Upper –
Upper
Locally prominent families, third or fourth-
generation wealth. Merchants, financiers or
higher professionals, Wealth is inherited.
Indulge in a great amount of travelling
0.45
Lower-upper Newly arrived in upper class, ‘nouveau riche’,
not accepted by upper class. Executive elite,
founders of large businesses, doctors,
lawyers and engineers
0.45
Upper-middle Moderately successfully professionals,
owners of medium sized businesses, middle
management, Status conscious. Child- and
home-centered.
7.2
Lower-middle Non-managerial office workers, small-
business owners and blue-collar families.
Described as ‘striving and respectable’.
Conservative
28.4
Upper-lower Ordinary working class Semi-skilled workers,
Income often as high as the two classes
above. Enjoy life, Live from day-to-day.
44
Lower-lower Unskilled, unemployed and unassimilated
ethnic groups. Fatalistic. Apathetic 19.5
Total 100
Source : Population Cencus 2001.
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Table - 7
The differences in class and their effect on consumption can be
seen in Table
Middle Class Lower Class
1. Points to the future 1. Points to the present and past
2. Has viewpoint embracing a
long expanse of time
2. Lives and thinks in a short
expanse of time
3. Has more urban identification 3. Has more rural identification
4. Stresses rationality 4. Is essentially non-rational
5. Has a well-structured sense of
the universe
5. Has vague and unclear
structuring
6. Has vastly-extended or
unlimited horizons
6. Has horizons sharply – defined
and limited
7. Has greater sense of choice
making
7. Has limited sense of choice-
making
8. Is self-confident, and willing to
take risks
8. Is extremely concerned about
security
9. Immaterial and abstract in
thinking (ideal-minded)
9. Concrete and perceptive in
thinking (material-minded)
10. Sees himself tied to national
happenings
10. World revolves abround family
Source: P. Martineau, ‘The Pattern of Social Classes, in Marketing’s Role
in Scientific Management, ed. R.L. Clewett.
In addition to social class, an individual’s role within the family also
affects consumer behaviour. For instance, the wife is often responsible for
majority of family purchases and makes the final decision with regard to food
and clothing purchases, though the preferences of the husband and children
are given due consideration. The husband is often responsible for purchases
of expensive items like cars and appliances. He usually looks for functional
characteristics, while the wife is more concerned with style and appearance.
The final decision is often a joint one. The children also have a say in making
purchasing decisions – when they are young, they influence the purchase of
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products like toys and chocolates and as they grow older and become mature,
their preferences affect family decisions regarding purchase of items such as
clothes, cars and even homes.
1. To Live Longer: To live longer is a desire of all people. They purchase
products with this motive. For example; certain products like refined oil
which have no cholesterol in it are purchased by people.
2. Curiosity: If any product is newly introduced into the market at the first
instance, people may have curiosity to know about its usage, etc. This
may also be one of the buying motives.
3. Freedom from Fear and Danger. Everybody will do anything to
assure guarantee to his safety. Fear can market almost anything. In
order to get relief from fear and danger; people will buy anything at the
cost of any amount.
4. To Get Love of Others. Consumer is a social animal. So the motive of
affection and attachment for others in greater is case of human beings,
e.g., mother, children, etc. Such attachment forces members to
purchase goods, e.g., mother purchases toys for kids
3.8 DIFFERENT MODELS OF CONSUMER BEHAVIOUR:
3.8.1 Economic Model
The assumption behind the economic model is that man is a rational
buyer and price is the motivating factor, which is determined by forces of
supply and demand. It suggests several useful behavioral hypotheses such
as:
(a) The lower the price of the product, the higher the sales
(b) The higher the promotional expenditure, the higher the sales
(c) The greater the scarcity of the product, the higher its value
(d) The greater the consumption of the product, the higher is its utility and
value
The major limitation of the economic model is that it is based on certain
assumptions namely:
a) Markets are homogeneous, which is not true in the case of many products
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b) Its theory is good; provided all other things remain equal (ceteris paribus)
whereas, in the practical world, other things are not equal as some buyers
may pay a higher price and buy a product because they believe that they get
more value from the same. In this context, it merits mention that in actual
practice, marketers employ several strategies to differentiate their products
from those of their competitors.
Above all, the economic model ignored the basic question of how the
brand preferences of a product are formed.
3.8.2 Psycho analytical Model
Psychology has contributed to the understanding of consumer
behaviour in terms of motives, attitudes, learning, perceptions and lifestyle.
These are explained below:
The conscious level at which the consumer is aware of his needs and
makes these known to others.
The pre-conscious level at which he knows his needs but cannot
explain as to why he acts the way he does
The unconscious level at which he is not aware of his needs or why he
behaves the way he does
Basic motivations are believed to reside in the conscious areas so that
while people can rationalize why they purchase things, they cannot really
know why they do so. For example, a woman may buy a certain dress and
give reasons for buying it such as her liking for its design, colour or attractive
features making it appropriate for party wear (a rational explanation), but the
real reason for her buying it – about which she is not fully aware – was
because her neighbor had bought it (pre-conscious reason)
3.8.2.1 Motivation and Needs
Basically, an individual’s motivation to buy a product or products is
based on the intensity of his need for the same. Thus, even though water is
virtually cost-free, millions of consumers pay a heavy price to purchase
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bottled water. What motivates people to buy water? The possible motives for
buying bottled water could be health concerns or it could also be snob appeal.
A person’s motivation for doing something is the reason for his
behaving in a certain way. Motives are inner states that direct us towards the
goal of satisfying a felt need’. Thus, a person feels the need for or wants
something which he considers to be useful; to be more explicit, a person’s
need for a thing should be sufficiently strong to induce him to act to fulfill it. In
effect, in such cases, the need becomes a motive to take action to satisfy the
need in question. To take a simplistic example, a man who is extremely
hungry (motive) will be motivated to get food and satiate his hunger.
Another way to look at the influence of needs on the behaviour of an
individual as a consumer is with reference to hierarchy of motives developed
by Abraham Maslow, the famous American psychologist. Maslow divides
needs into five categories.
1. Psychological
2. Safety
3. Belongingness\love
4. Esteem
5. Self-actuallization
According to him, any one of these needs must be partially satisfied
before moving to the next stage. For example, a person who feels hungry – a
psychological need – will to satisfy it by consuming food, before taking steps
to fulfil the next in the hierarchy of needs, i.e., safety, which could involve
buying a life insurance policy. This would be followed by appropriate actions
towards fulfilling the needs of (i) belongingness and love, which could entail
joining a social club and (ii) self-esteem and self-actualization, which could be
reflected in taking to pursuits such a painting or sketching or achieving
success in one’s job by working harder and more efficiently. The assumption
under this model is that once a need is satisfied, it is no longer a basis for
motivating anyone to act and fulfil the same.
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Figure 5
Marketers can motivate people to fulfil their diverse needs given in
Maslow’s hierarchy of needs by initiating appropriate promotion strategies.
For example, they can induce people to meet their (i) physiological needs by
issuing advertisements for personal grooming products focusing on sexual
appeal, (ii) safely needs by releasing meassages for promoting insurance
policies, preventive medicine or retirement investments, and (iii) need for a
sense of belonging by showing how group acceptance can result from
wearing certain types of clothes. Further, a person’s need for (iv) esteem and
(v) self-actualization can be met by linking certain products such as credit
cards, clothes, washing machines, cars, etc. to success in business and
explaining how a sense of self-fulfillment can be realized through travel,
education and by taking to cultural pursuits.
According to Maslow, people first try to satisfy their need for
belongingness and esteem before moving to the fifth level and most
advertising appeals are directed at fulfilling the former needs.
3.8.3 CUE- DRIVE – RESPONSE – REINFORCEMENT
Human behaivour, and in particular consumer behaviour, can be
explained with reference to the stimulus response model. At the outset, it
SELF ACTUALIZATION Settlement
ESTEEM
(Status, Superionity, Pride, Self Respect)
LOVE & BELONGING
(Love, Friendship, Companionship)
SAFETY
(Security & Freedom)
PHYSIOLOGICAL
(Food, Water, Sleep)
PRODUCT Writing, Painting, Music, Sports
Luxury Products, Designer Clothing, Furniture, Cars
Gifts Personal Grooming, Entertainment, Club Membership
Insurance, Safety Belts, Helmets, Locks
Basic Foods, Clothing, Clean Water, Medicine
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needs to be understood that the learning process, which affects peoples’
perceptions and attitudes, conditions a large component of human behaviour.
The learning model has its origin in the experiments of the Russian
psychologist, Pavlov, who rang a bell every time he fed a dog. He was soon
able to induce the dog to salivate by ringing the bell even when the food was
not served. This led Pavlov to conclude that learning was largely an
associative process and that a large component of behaviour was influenced
in this way.
The results of subsequent experiments in this area have been
integrated into a stimulus-response model of human behaviour. The model
has been refined over the years, and is presently based on four central
concepts, viz., ‘cue’, ‘drive’, ‘response’ and ‘reinforcement’.
Cue: Cue refers to stimuli in the environment and or in the individual
which determines when, where and how the subject responds.
Drive: Drives are strong stimuli internal to the individual which impel
action. A distinction can be drawn between primary physiological drives
such as hunger, thirst, cold, pain, etc., and learned drives which are
derived socially such as fear, cooperation and acquisitiveness. A driver
is often the result of a ‘cue’. For instance, an ad showing a bottle of
Coca-Cola immersed in ice can serve as a cue which can stimulate the
thirst drive in an individual.
Response: A response is the organism’s reaction to the configuration
of cues. It is an effort to satisfy a need dependent on cues, (e.g., the
Coca-Cola ad) and past experiences. A configuration of cues, however,
will not necessarily produce the same response in every individual. For
instance, in the case of the Coca-Cola ad mentioned above, the same
cue may result in two different responses from two housewives.
Reinforcement: Reinforcement refers to the response followed by
satisfaction derived from using the product. If the experience is
rewarding, a particular response is reinforced, i.e., the individual will
tend to purchase the same brand each time. Reinforcement
strengthens the drive/cue relationship by developing it into a habit. To
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take another example, if someone has an old car that is dull in
appearance and decides to give it a new look; he buys car polish and
polishes his car with it. The car then looks as good as a brand new
one. Here the drive was to improve the look of the car, the response
was to buy car polish and polish it, and the reinforcement was that it
looked as good as new. The person owning the car now probably has a
positive attitude towards the car polish. Had he had a negative
experience with the polish, he would have developed a negative
attitude towards it.
The marking implications of the model are:
Consumers learn from experience what they like and what they do not
like. They tend to repeat purchases that satisfy them and discontinue
those that do not.
Over time, consumers tend to repeat purchases that give them
satisfaction and this eventually becomes a habit. Marketers of new,
competing products often find it difficult to change such habits.
The stimulus-response (learning) model with reinforcement as an
essential element is often applied in advertising products and services.
The same stimulus is repeated to strengthen the response pattern from
the consumers. The message is constantly repeated to firmly reinforce
the given purchasing response.
Knowledge of the learning model helps the marketers to structure their
advertising and communications strategy in a way that will (i)assist the
consumers in learning relevant facts, and (ii) generate positive feelings
about their products, influence their behaviour and induce them to buy
the same. For example, let us consider a company which plans to
launch a new brand in a highly competitive market with the objective of
wiping out existing brands and forming new buying habits among
consumers in favour of its brand. Experience shows that instead of
merely advertising the new brand, the company may have to
supplement its ad efforts with other promotional initiatives like offering
free samples. This would help the consumer to compare the present
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product with the new brand and learn something about the later’s
superior features, and, if the experience proves to be rewarding, induce
him to switch over to the new brand.
3.8.4 Theory of self – concept
Figure 6
In psychology, behaviour of consumers can also be explained in terms of the
theory of self-concept, according to which an individual is both a physical and
a mental entity and views himself as a multi-faceted personality, combining in
him the attributes of a good worker, an avid sportsman, etc. His actions and
purchase decisions are dependent upon his mental concept of himself. The
self has four images: the ideal self, looking-glass self, self-image and
apparent self.
The image of the ideal self is that of the model person one aspires to
be and choose products that would fulfil the needs of such a person. For
example, a person who would like to consider himself a sportsperson might
join a golf club. A looking-glass self is one’s perception of how others view
him. For example, if a person thinks that others see in him a successful
businessman, he may buy a luxurious car to fit in with that image. Then there
are the images of apparent self and the real self, of which the former is how
other people see us and the latter-which is a composite of all the self-
concepts – of how we are seen objectively by others. But the basic
characteristic of self-concept is that it is essentially a subjective notion, which
is disorted by self-image. Possibly affecting consumption patterns and the
image of looking-glass self which is different from self-image because a
person may choose to project a different image to others. To cite an example,
Self Image
Apparent Self
Looking Glass Self
Ideal Self
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a person may see himself or herself as a member of the upper-class even
though he or she really belongs to the middle-class, and accordingly, would
buy clothes to fit the self-image of upper-class.
People with a certain self-image or images of themselves:
Tend to buy products that fit their various self-images and avoid those
that do not do so
Purchase a product when it adds to or reinforces the positive way one
is thinking about oneself.
Buy products not merely for what they can do but also for their
symbolic value and meaning, e.g., a necktie is not simply an article of
clothing; it is also a symbol of affluence or social status. Likewise, Nike
athletic shoes or Good hatchback are not simply products but also
status symbols.
3.9 Consumer Behavior for Cement
Consumers consider slightly different element while selecting brand of
cement. Their behavior towards selection of cement is different as cement is
not considered an everyday consumption commodity. Normally it is
considered as one time purchase commodity throughout life, for Individual
house builders. Therefore these consumers have an element of emotion
attached while purchasing the cement. So, in order to influence buying
decision some cement companies come up with emotional advertisement
which forms a very important part of buying decision among consumers.
Apart from this, basic features which consumers are looking for, while
buying cemenet are strength, setting time, and durability. As the actual
consumers do not possess more knowledge about the quality of product they
rely on opinions from external sources. Thus influencers like contractors,
masons, dealers, retailers etc form a very impotant part of decision making
process for the consumers.