Professional Documents
Culture Documents
Semester -3
Environmental Concerns
Green Products , Electric cars etc .
Changing Lifestyles
Sugar free drinks , Diet food etc .
Family
Roles & Status
Buyer
Psychological Factors
Cultural Factors
Motivation
Culture
Sub culture
Perception
Beliefs & Attitudes Learning
Assignment/ Presentation
Surf Internet and write short notes on the following(with examples )
VALs Psychographic analysis (AIO) Hybrid Segmentation Baby Boomers
Pick atleast two print advertisements of any product / brand from a magazine /newspaper and give atleast 5 reasons( in points) why did it appeal to you,as a consumer . Mention the name of the magazine/newspaper and paste the Ad(or photocopy ) in your assignment .
Culture
Culture is the set of basic values , perceptions , wants and behaviors learned by a member of society from family, place of residence and other important institutions . Culture is the most basic cause of persons wants and behavior Every group or society has culture and cultural influences on buying behavior may vary greatly from country to country .
Culture
Enculturation : Learning of ones own culture is known as enculturation Acculturation : The learning of new or foreign culture is known as acculturation
Sub Culture
It provides more specific identification and socialization for members belonging to a particular religion , racial group ,and geographic regions .
General Features
Hard work is good , Keeping busy is healthy and natural
Individualism
Freedom
Freedom of choice
Youthfulness
A state of mind that stresses being young at heart and having youthful apperance
Groups
A group consist of people who have a sense of relatedness as a result of interaction with each other .
Groups
Type Distinction
Formal vs Informal
Formals Groups have clearly specified goal , structure etc . Informal groups are loosely structured
Primary Groups are involved in gace to face interaction ;secondary groups interact less intensely Aspirational Groups are those which an individual wishes to join ;dissociative group is one that an individual wishes to avoid
Primary vs Secondary
Aspirational vs Dissociative
Reference Group
A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values ,attitudes or behavior
Film Star
Aspirational
Association Backing
Expert
Peer Group
Effectiveness of Endorsement
Credibility Attention PR Coverage Higher Recall Associative benefit
Bachelorhood
Employed , graduates , college going Young single Adults spend on rent , automobiles , travel , entertainment , clothing , assesories Niche segment for travel agents , housing developments , health clubs , sports clubs , magazines etc. To be married market bridal industry ( wedding sites , special parlours , special markets , products etc .)
Honeymooners
Young married couples Start up expenses house , major/minor appliances , furniture , utensils ,etc .) Special magazines Goodhousekeeping, Betterhomes etc .
Parenthood
Sometimes called Full nest stage usually extends over 20 years Full nest 1: immediately afetr the first child is born.many wives stop working reduction in family income .new purchases like baby clothes , food , health products etc .choice of vacations , restaurants , automobiles etc . Full nest 2: Financial position improves with career advancement of husband wife may return to workless influenced by advertising with experience Full nest 3 : familys income continues to grow .children also employed .influence by ads almost negligible.replacement of old items , more tasteful furniture , cars , luxury items , vacations etc .
Post Parenthood
Children have left home empty nest stage Comfortable stage for parents to spend on themselves , travel , extended holidays higher disposable income because of savings.. Empty nest 1: satisfactory financial position .spendings on gifts , vacations Empty nest 2: Income is drastically cut , expenses on medical care , products that aid their health , sleep , digestion etc .
Dissolution
Death of one spouse Simple living and economical
Social Factors
This is relatively homogeneous and enduring divisions of the society as all societies exhibit social stratification Social Class is usually determined by a cluster of variables rather than single variable (occupation , income , wealth , education etc .) Marketers must be careful about the kind of advertisements /communication they make as per the target audience ( language prefernces / lifestyle differences etc .)
Personal Factors
Age and Stage in the Life cycle
Tastes and preference in food , clothes , furniture , color and recreation are all age related Early stage of career , Marriage , childbirth , career change , divorce etc .
Consumer Motivation
Consumer Motivation
Consumer Motivation is one of the driving forces of Consumer Behavior Consumers buy and use products because they are motivated by the need and desire to do so . The Primary objective of Marketing and Marketing Communication is to motivate consumers to prefer and purchase one product and a specific brand over other
Motives
Motive is a construct representing an unobservable inner force that stimulates and compels a behavioral response and provides specific directions to that response
Consumer Motives
Motives Functional Explanation Involves utility of the product/service or the function it performs Involves the appearance or attractiveness of product /service Reflected in the status and esteem value Example : Car Purchase of a car because of its fuel efficiency, space , reliability Purchase of a car because of its color , shape , style etc . Purchase of a car because it shows that the buyer is a cut above
Situational
Curiosity
Arousal of Motives
Physiological arousal
Hunger need
Emotional arousal
Daydreaming , desires etc .
Cognitive arousal
Advertisements call up parents when you see ads of telecom operators etc .
Environmental/Situational arousal
6oclock smell of bakery food arouse need for food
Role of Motives
Role of Motives in Consumer Behavior is to arouse and direct the behavior of Consumers. Defining Basic Striving :Motives influence consumers to develop and identify their basic striving which includes general goals .safety, affiliation ,achievement etc . Example : You cant imagine how fast it will help you grow in life !!! Aptech Certified Internet Professional Aptech Computer Education
Classification Of Motives
Strong vs Weak Positive vs Negative Rational vs Emotional Latent vs Manifest Motives
Rational vs Emotional
Rational : When the consumers buying behavior is a carefully chosen and well considered one Consumers selection is based on objective evaluation : size , weight , price etc . Emotional : If the consumer is emotionally guided in selecting the object .pride , emotion ,status etc . Personal /Subjective criteria : pride , fear , affection , status etc .
Latent vs Manifest
Manifest motives: These motives are known to customers and he openly admits to being influenced by them ..conform to societys prevailing value system Latent motives are unknown to customers customer is reluctant to admit their influence on him in front of others Eg : Why did you buy Lux Soap ?
for healthy skin , fragrance etc .manifest Because I want to have skin as beautiful as Aishwarya Rai ..latent
Example
Manifest Motives
Consumption Behavior
Latent
It is a hi Tech Car Its large size is comfortable It is a fault free engineering marvel
Interest
Purchase
Decision
Need Recognition
Need arousal
Internal stimulus : hunger, thirst etc External stimulus : display of an item
Products
Marketing themes
Products
Cars and car accessories, burglar alarm systems, retirement investments, insurance, medicines,Cement
Marketing themes
Contd..
Belongingness
Beauty aids, entertainment, clothing, cars Old Spice The Mark of a Man Loreal .Because I am worth it Esteem Needs
Clothing, cars, jewelry, hobbies, beauty spa services Toyota : Quality Revolution kitchen appliancesThe sign of a great cook. Diamonds are Forever , Reid n Taylor ,Tag Heur Watches Self-Actualization
Education, cultural events, sports, hobbies, luxury goods, technology, travel Nike Just Do it An evening with Jagjit Singh ,
Needs
Every individual has needs :some are innate , others are acquired Innate : food , water , air clothing , shelter ,sex .needed to sustain biological life .Primary needs or motives Acquired needs : Need for self esteem , prestige, affection , power , learning .psychological .Secondary needs or motives .
Interest
State of mind that exists when a consumer perceives a need and /or is aware of alternative products capable of satisfying that need . If attention is diverted , buying process is broken down
Evaluation of Alternatives
Options available to the marketer :
Modify the Product : Redesign Altering beliefs about the brand Altering beliefs about the competitors brand Calling attention to neglected attributes Shifting the buyers ideals
Purchase Decision
Consider attitudes of others : negative attitude or consumer motivation Anticipated Situational factors : family income Unanticipated situational factors : accidents , illness , travelling etc . 5 purchase decisions :
Brand decision Vendor decision Quantity Decision Timing Decision Payment method decision
Purchase
Trial / adoption .accumulates experience about the product purchased If positive experiencethen satisfaction derivedrepeat purchase
Needs
Every individual has needs :some are innate , others are acquired Innate : food , water , air clothing , shelter ,sex .needed to sustain biological life .Primary needs or motives Acquired needs : Need for self esteem , prestige, affection , power , learning .psychological .Secondary needs or motives .
Unit 2
Individual Determinants of Buying Behavior
Consumer Personality
Personality is an internal system which includes all those aspects of a person that are inherited and all those aspects that are learned . Those inner psychological characteristics that both determine and reflect how a person responds to his or her environment .
Inner characteristics : those specific qualities ,attributes ,traits ,factors ,and mannerisms that distinguish one individual from other individuals
Sources of Influence
Inherited from parents Influenced by the environment in which the person is brought up Own individuality
Dogmatism
Tendency to resist change /new ideas
Susceptibility to influence
Desire to enhance their self image as observed by others .Consumers with lower information procewssing confidence tend to be more influenced by ads ,relative to those with higher self confidence.
Example
Women around the world dont hesitate to do it .Why should I ? Beautiful women around the world over are opting for the Gillette Satin Care Ready shaver .A smart choice since its an international razor designed exclusive for women . Its special features include :.
Self consciousness
Tendency to use products in amnner that coveys what they feel is appropriate self image
Ideal Self Concept How I would like to see myself How I would like others to see me
Social self
Example : Ad by Nike
Got what it takes It takes courage to fight the odds ,stamina to lat forever ,conviction from within and a dream to be victorious The new winter line from NIKE, fights defeat ,absorbs victory . Just do it !!!!! Most of us constantly strive to bridge gap between our private actual self and ideal self .Thus ,those who dont exercise know that excercising is good ,and ideally would like to .This ad is exhorting them to go ahead and take theprepatory step, i.e to buy a track suit
Attitude
Attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object /stimuli.
Characteristics of Attitude
Attitudes have an object
Focal point physical object ,or a service or an action
Group Associations (family , work and peer groups etc.) Influential others (experts , opinion leaders ,relatives ,celebrities etc.)
Components of Attitude
Cognitive Component Affective component Behavioral Component
Cognitive Component
Consumers Belief about an object Eg : Dettol Soap is antibacterial , is effective , not perfumed These beliefs may or may not conform to reality More the number of positive beliefs about the brand , greater the positiveness of each positive belief ,more favorable the overall cognitive component of attitude
Affective Component
A consumers feelings or emotional reactions to the object represent the affective component . May be a result of cognitive evaluation Emotional or effective evaluation of products /brands Amul Cheese vs Britannia Cheese
Behavioral/Conation Component
Ones tendency to respond in a certain manner towards an object or activity Recommendations to friends etc . Actual behavior
Stimuli Products Situations Retail Outlets Sales People Ads Other Objects
Cognitive
Affective
Behavioral
Emotions or feelings about specific attributes or overall objects Behavioral intentions with respect to specific attributes or overall objects
Situational Influences
Time gap between positive attitude formation and actual opportunity to buy Message repetition Social Influence
Modification of Attitude
A Change in attitude is ensured through : Appropriate Source of Communication Appeal Characteristics
Source of Communication
Source Credibility
Credible Sources like BIS( Bureau of Indian Standards ),ISO 9001, Indian Dental Association etc.
Celebrity as source
Shahrukh Mayur Khan , Aamir Khan for Tata Sky , Amitabh Bachchan for Reid n Taylor , Sachin Tendulkar for Boost
Appeal Characteristics
Fear Appeal
Accidents in case of Drunken driving ,social fears like bad breath , body odor, bacterial infections etc
Humor appeal
Bingo , Centre shock etc. Attracts attention, does not generally increase persuasion ,increases liking of the ad .
Emotional appeal
Ads by Insurance Companies Attracts attention , memorable etc .
Strategies .contd
Resolving conflicting attitudes
Navratri special food in Nirulas , special vegfood in Pizza Hut , Sugarfree etc.
Tricomponent Model
Affect
Cognition Beliefs
Nicosia Model
Developed by Fransisco Nicosia There are four basic Fields in the model Assumption : Neither the buyer nor the seller has had any previous experience directly related to the product /brand The model is viewed as representing a situation where a firm is designing communications(ads, products etc)to deliver to consumers , whose response will influence subsequent actions of the firm .
FIELD ONE: From the source of message to the consumers attitude Firms Attribute s
Message exposure
Consumer s attributes
Attitude
Inputs
Products , services , brand Facts , Images , feelings
Perceptual reaction
Perceptual bias Sensitivity to information Filtering of information
Processing
Determinants Purchase motivation Avalilable satisfactions Judgemental criteris
Outputs
Attention Understanding Attitudes Purchase intention /purchase behavior/decision
Consumption
Consumption, in its broadest and simplest form , means possession and/or use of goods and services
Confirmation/Disconfirmation
Confirmation : Product performance is as good as expected Disconfirmation :
Positive : When the product performance is better than expected Negative : Performance at lower level than that expected.
Marketing implications
Consumer Satisfaction is critical as it leads to repeat purchase , brand loyalty and positive Word of mouth (WOM). It is less expensive to service existing customer than to make a new one . A marketer should not raise too high expectations leads to customer dissatisfaction Feel Good factor after purchase is critical .Eg : being greeted nicely and cheerfully by Mc Donalds boys /girls .
Consumer Satisfaction
Is difficult to measure because :
Means different things to different people Level of satisfaction can change over period of time ..with tastes and preference also changing with changing lifestyles ..
Feeling of uncertainty about whether right choice is being made.. Occurs before the consumer is determined about the satisfaction
PPD is a function of :
Importance of Purchase decision Consumers tendency toward anxiety Finality of the purchase decision Clarity of the final purchase choice
Communication
Communication is defined as transmitting , receiving and processing information
Communication Process
Example
Senders : are the companies that manufacture shoes like Reebok , Nike etc .( the firms hire adbertising agencuies to construct messages ) Encoding : Taking the idea and transforming it into an attention getting form , through an ad or some other verbal . The ad creative performs this role Message Channel :The channel may be television carrying an ad , billboard , newspaper etc . Decoding : occurs when the message touches the receivers senses in some way. Some consumers will hear and see a TV ad ..smell perfume reading coupon offer etc .
Example : Contd ..
Quality marketing communication occurs when the recievers decode or understand the message as it was intended by the sender Noise is anything that distorts or disrupts the message . Can occur at any stage Clutter : exists when consumers are exposed to hundreds of marketing messages per day , and most are tuned out . Feedback : takes form of purchases , inquiries , complaints , questions , visits to the store or likes or hits on the websites / Social networking sites
Barriers to Communication
Between individuals ( age , gender, social status , personality etc ) Within companies ( poor downward/ upward/lateral flow etc .) Between Companies ( poor selling techniques , poor media choices , unfocussed advertising , failure to find correct contact persons )
Marketing Communication
The marketing communication mix(also called promotion mix )consists of four major tools:
Advertising Sales Promotion Publicity Personal Selling Public Relations
IMC contd.
According to American Marketing Association . IMC is a planning process designed to assure that all brand contacts received by the customer or prospect for a product ,service , or organization are relevant to that person and consistent over time
Pull strategy :
When there is high brand loyalty High involvement category
Buyer readiness stage Product Life Cycle stage The Companys market rank
PLC
Introduction Stage : Advertising & Publicity have the highest cost effectiveness followed by personal selling / Sales promotion to induce trial Growth Stage : all tools are toned down as WOM gains momentum Maturity Stage : Sales Promotion / advertising / personal selling all grow important Decline : Sales promotion / advertising & Pubilicity are reduced
4Ps vs 4 Cs
Product vs Consumer Price vs Cost Place vs Convenience Promotion vs communication