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Ashok KumarSlide 2: Not for circulation : for internal use only 2 Core text books : 1 Consumer behavior Leon G Schiffman & L.L Kanuk 2 Consumer behavior ( A strategic Approach ) Dr Henry Assael 3 Consumer Behavior & Branding S.Ramesh Kumar ( indian context )Slide 3: A recipe of good marketing strategy lies in sound understanding of its market. All good market communication strategies( brand , IMC ) are developed from deeper insight in the market. Sound Product Distribution, Price , Customer services ( CRM ) strategy etc originates from understanding of behavior of a market. How does Consumer behavior study help business?Slide 4: Consumer Buying process Impulsive buying : Consumer buy due to stimuli Compulsive buying : Consumer feels the product or service is best suited for her need Addictive buying : Consumer feels the product or service is only option available to meet her aspiration & life style .Slide 5: Not for circulation : for internal use only 5 Break MARKET CLUTTER Overcome Commodity image Create DIFFERENTIATION ( USP) Eliminate PRICE WAR Overcome BLOOD BATH How does consumer buying behavior study help business . Create Mind base PositioningSlide 6: Awareness 90 % Comprehension 70 % Linking 40% Preference 25 % Trail 20% Re purchase 5% Brand Communication EffectSlide 7: Not for circulation : for internal use only 7 Consumer Behaviour & Research Integrated Market Communication & MARKETING Strategies Build / Create Dominating or self expressive brands. CONSUMER BEHAVIOR STUDY & MARKETING COMMUNICATIONSlide 8: Not for circulation : for internal use only 8 Doing business without Knowing your Consumer is like winking at a pretty girl in dark. You only know what you are doing but not the pretty girl. What are the chances that she will respond ?????Slide 9: ASSIGNMENT OF CONSUEMR RESERARCH MARKS = 30 IDENTIFY A RESEARCH OBJECTIVE DEFINE RESEARCH PROBLEM DEFINE RESEARCH DESIGN DEFINE RESEARCH METHODOLY SAMPLE FRAME SAMPLE SIZE SAMPLE UNIT DATA COLLECTION QUESTIONAIRE DESIGN DATA COLLECTION APPROACH DATALANSYSIS DATA INTERPRETATION & CONCLUSIONSlide 10: Not for circulation : for internal use only 10 Consumer Power & Shifting trend in business Consumer to TRANSUMER, PROSUMER Create MASSCLUSIVITY - Create exclusivity from the mass.Slide 11: Not for circulation : for internal use only 11 The center of all business a “Consumer” has been transforming rapidly & have become more opaque . Consumer consistently demand value from the products & services . The marketer believes that brand is most important to a consumer . A consumer is exposed to 600 market communication a day approximately. ( Research results ) A consumer looks beyond the the basic functionality of products & services which he does not articulate.Slide 12: Consumer Insights A consumer insight is a discovery about people that enables us to establish a natural connection between a product and their daily lives. Insights into peoples’ behavior are not singular by nature, but are a collection of motives, ideas, memories that come together and form an opinion on a product or service. The skill is to identify the insight and create a clear single proposition that enables people to buy, try or react to your product. “It does exactly what I wanted it to do, I couldn’t live without it”. …. ConsumerSlide 13: Not for circulation : for internal use only 13 Pre sale Situation Consumption Stage After sale Scenario Consumer behavior study is conducted by an organization at the following stages. Understand the Behavior pattern To shape the Communication Maximize the sale & involvement with Product /service Build loyalty & Brand commitmentSlide 14: Not for circulation : for internal use only 14 Consumer Personality Consumer Life style Internal Factors External Factors Situational Factors Marketing strategy for Product & service Development 2 STP 3 Communication 4 CLP Pricing strategy Sales strategy Brand building Demographic Factor Socio graphic Factor Socio culture Situational need motivator Attitude & aspiration Perception Self concept Geographic factorSlide 15: Not for circulation : for internal use only 15 Linear perceived value model. Consumer = Brand attribute X Consumer Attribute Perceived ValueSlide 16: Not for circulation : for internal use only 16 Consumer types according to loyalty Solus Users/ Loyal buyer Dual users Flirts / Switcher Degree of commitment towards product or service brands. High Medium Low Personal consumer & Business ConsumerSlide 17: Not for circulation : for internal use only 17 Dimensions of Loyalty Customer Loyalist Downward Migrators 1 Emotive loyalist 2 Inertial loyalist 3 Deliberative loyalist 1 Life style Downward migrators 2 Deliberative migrators 3 Dissatisfied Downward Highly dissatisfied. migrators Prompted to re valuate alternatives Strongly feels the chosen Brand is best & stick to it. Infrequently re assesses Purchase decision . Frequently re assesses purchase decision . Re confirm the brand chosen Meets the desire & function Re consider the brand with every Change in need. Believes in selecting new brand every time . Frequently re assess the new brand in the market.Slide 18: Not for circulation : for internal use only 18 CLP, Loyalty cost & Consumer behavior Return/ Revenue Cost Increased profitability Customer life cycle LCC Time MCC Total Revenue = (R new + R existing )Slide 19: Not for circulation : for internal use only 19 Consumer Types Personal consumer Organizational / Industrial Consumer Buys for individual Consumption. Buying decisions are influenced by Cognitive, Personal, cultural ,social Influence & Situational Factors. Buying for organizational consumption Buying decisions are influenced by Quality , service , attitude of the suppliers Financial considerations etc . Besides this , Environmental , organizational, interpersonal Factors influence the decisions. The buying decision involves decision Makers viz 1 End User, 2 Influencer, 3 Financial Decision makers ( management ) 4 commercial buyer. SATISFACTION OF ALL GROUPS ARE ESSENTIAL .Slide 20: Not for circulation : for internal use only 20 Buying decisions in B2B system are influenced by : Quality service Attitude of the suppliers Financial considerations( Ability to absorb credit , differed payment , Lease rental etc ) Environmental factors ( Legal & political ) Capacity to supply & lead time . Technology factors Business process such as use of SCM , ERP e- Business tools. Organizational interpersonal dynamics .Slide 21: An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar Word of mouth Professional Journals Active search Perceptual Distortion Influencing Decision Agents Time Perceived Type of Pressure Risk buying Product organization Specific specific Situational Factors Policy factors Financial Service Technology Conflict Within Buying center Buying DecisionSlide 22: Not for circulation : for internal use only 22Slide 23: Not for circulation : for internal use only 23Slide 24: Not for circulation : for internal use only 24 Precipitation Start of the process has to be the realization of the need , a problem that a purchase can solve. The stimulation could be internal and entirely routine. It could be a planned new buy precipitated, for example, by the implementation of expansion plans or the imminent production of a new product. It could also be something more sudden and dramatic than that, such as the failure of a piece of plant or machinery, or a lack of stock.Slide 25: Not for circulation : for internal use only 25 Industrial Buying Decision Process. Top Management Key decision Maker Financial Team Commercial Team ( Value engg, Relationship) End Users ( R&D , Product design, Operation )Slide 26: Not for circulation : for internal use only 26Slide 27: Not for circulation : for internal use only 27 Consumer Models : Conceptual Consumer models which help in understanding the behavior from information search to decision making while involved in a buying process. Consumer Models are : Economic Model Sociological model Psychoanalytic model Learning model Howarth Sheth model Engel –Blackwell- Kollat ModelSlide 28: Not for circulation : for internal use only 28 Economic model is on the principle that consumer looks for maximum utility at minimal price. Price effect. Deep discounting or minimum price tags increases the consumption & demand . Substitute effect . : More substitute products available, lesser will be the demand of the original product. Income effect . As the disposable income level increases , the consumption level will also go up. Short coming : The model ignores the social & psychological impact on the buying behavior , assumes the price is the only factor which drives the buying behavior .Slide 29: Not for circulation : for internal use only 29 Psycho analytic model : Behavior of a consumer is determined by his strong desire & need. The purchasing process is governed by motivational forces . Motivation stimulates people in to buying action. Self Actualization Esteem (Recognition) Social(Affiliation) Safety (Security) Physiological ( Basic) Sense of achievement & competence Owning Power & Prestige Ego , status , success Similar belief, status class etc Assurance , Protection, stability Needs which are important to consumer Hierarchy of need : Abraham Maslow’s modelSlide 30: Not for circulation : for internal use only 30 Learning Model. Consumer Learning : A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his future behavior . . Components of learning process are : Drive Clue Response Reinforcement Retention. Drive : strong stimuli which impels action. Clue: An object in the stimuli which elicit a specific response. Response : Behavioral response in the from of physical terms , Attitudes, Perception etc. Reinforcement :Environmental events which increases the psychological process of motivation, increasing the likelihood of specific response. Retention : Stability of learned behavior over a period of time.Slide 31: Not for circulation : for internal use only 31 Classical conditioning process of learning : Behavior becomes dependent on certain stimuli or events in the environment. A consumer is said to have learned , when he or she responds in a predictable manner to a known stimulus. [ Also known as Stimulus - Response ( S -R) theory of association )] When a consumer learn to connect between stimuli & response it is Called behavior . This happens due to repetitive association between Stimulus & response . Unconditioned stimulus Unconditioned Response [ Reflex ( piece of meat) ( Spontaneous reaction) Dog Action] Conditioned stimulus Conclusion : Conditioned Conditioned response stimulus ( Pavlov’s experiment of classical conditioning )Slide 32: Not for circulation : for internal use only 32 Eg : Desirable association for Johnson soap Ad Milk & Rose Petals Little toddler Johnson soap Unconditioned stimuli Pure , Natural, Soft & tender Soft & tender Skin care Symbolic of natural & purity Classical conditioning helps to build strong consumer connect with the brand for strong association.Slide 33: Not for circulation : for internal use only 33 Sociological model. Consumer Family members Friend circle Peers & colleague In an organization Close associates Target market is influenced by roll models of the society who influence the buying behavior . Marketer’s analyze aspiration level within the target segment & create the same in the brand to appeal them towards the brand.Slide 34: Not for circulation : for internal use only 34 Howarth Sheth Model : Consumer learning & behavior shaping happens due to perception & attitudes which they form about a brand leading to a favorable decision making. Hence a input stimuli leads to learning constructs , which drives the behavioral output , which in turn is influenced by external variables. Input stimuli 1. Tangible ( significant stimuli) 2. Intangible ( Symbolic stimuli ) 3. Social group ( Social stimuli ) Stimulus Ambiguity Attention Overt Search Perceptual Bias Motives Attitude Intention Purchase Brand comprehension Attention INPUT Perpetual Constructs Learning Constructs OutputSlide 35: Not for circulation : for internal use only 35 E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment influence Need stimuli Exposure Attention Comprehension Retention Evaluation criteria Perception Attitude Income Culture Social class Others Internal & external search Of alternate evaluation Purchasing Process Post purchase evaluationSlide 36: Not for circulation : for internal use only 36 Consumer SegmentationSlide 37: Consumer segmentation on the basis of lifestyle & Aspiration helps to understand the persuasive motive . ( Psychographic segmentation ) Inner consumer core Geographic Demographics Situational Outer coreSlide 38: Bajaj Scooter captured complex reality of existence of middleclass India . As it is said , if an Indian middle class man were to be reborn as a product , chances are that it would be a Bajaj scooter. Squat, belly going to pot , wearing grey safari suit, undistinguished, but resourceful. With his wife perched uncomfortably at the back , Gudiya squeezed between the two, & Cheeku standing in front. The product literally & metaphorically at the heart of Indian middleclass. How did it fit in to the life of mass middleclass ?Slide 39: Not for circulation : for internal use only 39 Consumer Segmentation Approach AIO inventory ( Activity , Interest , Opinion ) SEC classification VALS –II LSM Prism Monitor Mindbase Global ScanSlide 40: Not for circulation : for internal use only 40 Family Life stage is studied at : Bachelor hood status Married couple ( DINK ) Parent hood ( DISK) Post parent hood Dissolution Parent hood is further classified in to Full nest 1 , 2 & 3 stage . Post parent hood is classified in to Empty nest 1 & 2 Each stage depicts a distinct buying behavior & is influenced by other factors which drives the priorities & motivation. Family Life StageSlide 41: Not for circulation : for internal use only 41 Consumer segmentation Changing trends: Children hold strong buying power in key segment. ( Indian kids rank 3rd worldwide in influencing the buying decision) Segment Children Decision maker. Soft drinks 33.6 % Health drinks 31.4% Tooth paste 30.5% restaurants 28.6%Slide 42: Not for circulation : for internal use only 42 Sub Segmentation of Kid consumer : Segment: 1 Infant ( 1 -12 Months) 2. Toddler ( 13 -48Months ) 3. Tooth ager ( 4- 5 Yrs ) 4. Toonagers ( 6-8 Yrs ) 5 Tweenager ( 8-12 Yrs ) 6 Teenager, (13- 19 Yrs ) [parameters : Age, intelligence( IQ) level , Family group belonging , societal influence , point of purchase , Personality , Self concept. Media influence . Parenting styleSlide 43: Not for circulation : for internal use only 43 Hyper Parenting : Over scheduling children’s lives with extra curricular activities & push them hard for academic excellence. 2.Helicopter parenting : Habit of the parent to hover over their children obsessed with ensuring their safety . Builds protective attitude where parents keep tabs on their children’s every move. Stealth Parenting 4. Authoritarian ParentingSlide 44: Not for circulation : for internal use only 44 3 Stealth Parenting 4. Authoritarian Parenting These parenting process influences the child’s development in terms of how they involve buying with age. Their knowledge, attitudes to a brand , pricing & decision making power etc . The decision making differs at every stage: 1. Perceptual stage ( 3-7 Yrs ) 2. Analytical age ( 7-11 ) 3 Reflective age 11-16)Slide 45: Not for circulation : for internal use only 45 A research conducted by Disney India & Group M India revels that new age Indian kids( 4-14 age group) are Tech savvy , worldly wise ,opinionated & success oriented. They articulate the brand preference , influence in the decision making & also make independent decisions on brands. Data shows that 51% of the total population researched ( 34000 children across Mumbai, Delhi, Kolkata, Banglaore, Ludhiana, Ahmedabad, Hydrabad, Chennai, Lucknow & Chandigarh) accompany their parents for shopping. 66% handle money independently. 48% have their say in the choice of the brand.Slide 46: Not for circulation : for internal use only 46 Socio- Economic Classification. SEC Segmentation . SEC divides the house hold on the basis of the CWE’s occupation & education. Assumption : The co- relation between education & occupation was that better education will have organized employment opportunities, hence high income. However it failed to explain the buying behavior of a consumer who buys Dove soap – a luxury product for Rs 30, but not well educated . Accordingly the consumer class will be categorized as : SEC-A1 , A2 , B1, B2 C1 …..D The same can further be named as : Premium class , Middle Class , lower middle Class.Slide 47: Not for circulation : for internal use only 47 Other approaches . Unilever’s proprietary segmentation model. Living standard measurement index. ( LSM) index as an alternative to SEC . It is based on 25 parameters putting consumers in to 18 clusters. Parameters are : Income , Occupation, Durable ownership( daily to luxury ) , Work environment , media choice , entertainment preference , cultural sub cultural & cross cultural factors . Nup scale ( Nielson Upscale ): It is based on usage of 12 consumer durable products from different category.Slide 48: Not for circulation : for internal use only 48 According to a research study , women class has progressed from one Socio economic category to the next on the parameters like traditionalism /self sacrifice to westernization / individualism . Variation by SEC group. SEC D Seeking economy sacrificing & social conservatism SEC C Religious Anxious & Worried about change. Seeking equality ,quality conscious disturbed by vulgarity SEC B Seeking Luxury Out going Fashion conscious Bold & librated. SEC A Traditionalism Modern/Westernization S elf S acrifice IndividualisticSlide 49: Not for circulation : for internal use only 49 Discovering new identity in Urban woman The quint essentional self sacrificing Gharelu married Indian urban woman consumer is increasingly morphing in to independent minded assertive entrepreneurial class. ( Research study conducted by Lowe Asia – Pacific ) Psycho graphically charted consumer segmentation Modern ( willing to embrace new values) Traditional ( Be contended /compromise with old system) Stability seekers Change seekers Ms/Mrs Hasmukh 27% (Role model Didi ) Mrs Meri Awaz Suno (Attention seekers) 31% Ms/Mrs Gharelu 18% ( Home pride) Mrs Hey Bhagvan Moaner Ms/Mrs Pataka Cool Ms /Mrs IndiaSlide 50: Not for circulation : for internal use only 50 Mrs Garelu is just 18% of the total sample size. Who are they ? Home pride . A perfect home maker . Behaviour : Uses parachute oil for kids & self , Fair & lovely being a part of her make up kit. She is proud of her washing machine & water filter. She is likely to buy a microwave owen or expensive home appliances . But she prefer to use branded sanitary napkins. Her husband relies heavily on her. Social : She hate wasting money on outing , eating entertainment. Entertainment is all around Jassi & K series . Belief : Strong believer of good education to her kids. Choosing any unknown New career by the family member is not acceptable. Attitude : Family is more important & believes that star determine her fate . Value : Respect can never be compromised. High level of tolerence . Never address the husband by name .( “Munne ke papa, Suno ji” type ) . Do not question the roots of tradition, rituals. They are always for good. Just adapt it. She is Quintessentional sacrificing MaaSlide 51: Not for circulation : for internal use only 51 Fast moving trend is seen from Mrs Gharelu to Mrs Has mukh Who is Mrs Hasmukh ? Attitude: A lively cheerful & positive personality. She treats her life like a must win contest . A friendly nature . Talking to a stranger of opposite sex & accepting him as a friend is normal . A perfect wife, mother , daughter in law , friend , independent minded , divides her time between husband , kids , family herself, & her friends . Not self sacrificing Belief : While she is religious , she does go to beauty parlour with equal vigour. Usage : She likes to buy things which make her household chore more convenient . Microwave Owen, Dishwasher, Vacuum cleaner , Oriflame conditioner, foot cream, Nourishing night cream products . Social gathering , party with friends , family etc. She encourages her kid to be more independent, explore & peruse their career where you can deliver your best result, like she herself would like to do. She likes to be seen as trendy . She is a role model Didi for many womenSlide 52: Not for circulation : for internal use only 52 Mrs Pataka : Characterised by the style quotient , acts cool & talks about doing what other women don’t. Take pride in sending their kids to the best school in town. Style matters in terms of regular visit to palour, PTA , Social meet , week end party & dining , need varieties of perfume for different occasion. She expects her husband to consult her in all decisions & upholds her individualism. Attention seekers: Stifled by the various restrictions & norms imposed on her craves for attention, likes when others empathise with her .Her husband does not necessarily take her opinion in all home related issues. Saving is not her forte. Will use fairness cream , oil her hair on daily basis. She hopes high expectation on her son& daughter. She does not mind using unbranded or lesser known brands still feel good about herself. She feels miserable about her inability to send her kids to expensive schools, lavih spending .She believes that fate is determined by her stars. She wants to come out of middle class dudgery. More of self sacrificing type & wants to move away from joint family class.Slide 53: Not for circulation : for internal use only 53 The HEDONIC TREADMILL ( Daniel Kahneman- Nobel Prize winner Economist & Psychologist) Studies show that happiness rises with income up to a certain point at which the basic needs are met, after which it stagnates as aspirations also rise with income. Income Consumer SatisfactionSlide 54: Not for circulation : for internal use only 54 Rural , Urban , Global , Semi rural , Semi Urban leading to life style, climate , population etc. Institutional segmentation : Large corporate segment ( Global & Domestic) , SME , SOHO , FTU Govt, PSU etc Summary of Profiles West North Religious yet outward centric Impressionable Worried about change Conservative Materialistic value South East Quality conscious Anxious about future Guilt if spending on self. Bold , more librated, Accept society as it is , Optimistic Discontented willingness to experience newSlide 55: Role of culture in consumer behaviorSlide 56: Not for circulation : for internal use only 56 Culture Culture is part of the external influences that impact the consumer. Culture represents influences that are imposed on the consumer by other individuals. Culture is a complex study which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by a person as a member of society Culture, as a "complex whole," is a system of interdependent components. Knowledge and beliefs are important parts. In U.K exposed hands or legs among women in formal , social gathering is reflected immoral.Slide 57: Not for circulation : for internal use only 57 In Japan, on the other hand, groups of men and women may take steam baths together without perceived as improper. What at least some countries view as moral is in fact be highly immoral by the standards of another country.Slide 58: Not for circulation : for internal use only 58 Culture has several important characteristics: (1) Culture is comprehensive . This means that all parts must fit together in some logical fashion. (2) Culture is learned rather than being something we are born with. (3) Culture is manifested within boundaries of acceptable behavior. (4) Culture is gratifying & persistent . (5) Culture is integrated & organized. (6) Culture is acquired.Slide 59: Not for circulation : for internal use only 59 Culture can be viewed from independent levels as: 1. Ideological systems. : Mental system consisting of ideas, belief, values & ways of reasoning . Cognitive ( beliefs, customs) Normative ( conduct & norms )Slide 60: Not for circulation : for internal use only 60 2. Organizational system ( Family & Social class ) .It coordinated behavior . 3. Technological system : ( Skills & techniques used to behave in a particular way) Variation in culture happens when the values ,norms belief , moral, ritual, custom , Tradition etc influencing ideological , organizational & technological system are questioned by the consumer for its existence & sanctity to be followed. When these factors are vulnerable to change , variation in culture is natural process.Slide 61: Not for circulation : for internal use only 61 Nonverbal factors influencing cultural variation SYMBOLS COLORS NUMBERS What is Semantic & symbiotic culture ? Deer is a Symbol of homosexuality in Brazil . Owl Symbol of wisdom in US Number 4 is in auspicious in Japan & 10 & 13 th in south India etc.Slide 62: Not for circulation : for internal use only 62 Culture, Subculture , Cross culture influence in Buying behavior Ideological system Organizational system Technological system SUB Cultural influence Cross cultural influence Ethnic Religious Nationality legal barrier Cast LanguageSlide 63: Understanding the culture of a market can help to formulate more effective communication strategy to overcome the barriers to acceptance. Low diffusion rate of a product is primarily due to resistance to accept a concept on account culture . All teaser communication campaigns are built to break the cultural barriers .Slide 64: Not for circulation : for internal use only 64 Consumer personality &culture Value Rituals Heroes Symbols Practice Family values Hush Hush Culture Cloth usage Confident , Independent & freedom All 30 days sameSlide 65: Not for circulation : for internal use only 65 Perception & Attitude formationSlide 66: • Perception is psychological mediation. It refers to the process of organizing and interpreting sensory information. Perception is the process in which the brain selects, organizes, and interprets neural messages into a psychological experience on the basis of cognitive ability and soico cultural values governing in the society .We are aware of the meanings that brain generates from sensory information. Perception enables us to recognize meaningful objects, pictures, faces, language, etc & interpret the same the way we want. What is the role of perception in consumer buying ? Mind base positioning of product or service .Slide 67: Sensory stimuli Visual , Audio , Taste, Smell, Touch LBS RBS Sensation drives perception. Marketing science behind perception management is to identify right sensory stimuli which would invoke desired decision within consumer ( logical or abstract ) . This depends on the positioning objective . Psychological mediationSlide 68: A research presented by scientist Martin Lindstrom reveal the conceptual essence of senses as a source of attitude formation and change.Slide 69: Not for circulation : for internal use only 69 While Sensation is a physical process of converting stimulus energies, without sensation, there would not be perception. Perception co-relates , integrates & comprehends the various sensations & information received . It is formed by both physiological & psychological factors.Slide 70: Not for circulation : for internal use only 70 Perceptual constructs Stimulus Perceptual bias Perception ambiguity Stimulus ambiguity : Interpretation of information provided according to selective preference. Ambiguity happens due to social values prevailing in the society acting as a constraint for accepting the product/service. When the community values wins over social values, the product gets accepted in the society .Slide 71: Perceptual bias : Attending to the selective information as a result of one’s own frame of reference. Perception is a process of selecting, organizing & interpreting or attaining the meaning of what is happening in the environment. Positioning of emergency contraceptive pill as “ Protection when things go wrong at the heat of the moment”. In the backdrop of social norm which claims the communication is obnoxious ( promotes premarital sex & acclaimed moral looseness ) , the success comes as it helps to overcome the mass murder of life and self protection.Slide 72: A threshold refers to a dividing point between energy levels that do and do not have a detectable effect. . What happens to one’s threshold as the stimulation increases? As the stimulus intensity increases, the probability of detecting a stimulus also increases. Absolute thresholds define the boundaries of sensory capabilities. An absolute threshold refers to the intensity level at which the probability of detection is 50 percent. What are some of the lowest absolute thresholds discovered in psychophysics research? 1 visual absolute threshold is being able to see a candle flame at 30 miles on a dark clear night. Thresholds and Absolute thresholdsSlide 73: “Weber’s Law. Weber’s law states that the magnitude of differentiation is a constant proportion of the size of the initial stimulus. The constant proportion is called “Weber’s Fraction.”Slide 74: Techniques to form good Perception within consumer : Signal detection • Just noticeable differences (JND’s) • Subliminal perception • Sensory adaptation • Selective attentionSlide 75: Merlyn : Wao ! What a position ? Bob : What a figure . James : Irresistible, I am excited. Sandra : I wish I am in that position. Tom : I envy you ? Apply for the position of Creative Designer in life style apparel segment . Annual emolument : 16 Lacs Only lady candidate may apply.Slide 76: JND : Just Noticeable Difference . “JND” refers to the smallest difference in the amount of stimulation that a specific sense can detect.Slide 77: Selective attention refers to our focusing on a limited aspect of all that we comprehend, enjoy , and experience . This explains why cell phones are dangerous when driving. We focus on the phone conversation and not the other sights and sounds on the road.Slide 78: Not for circulation : for internal use only 78Slide 79: Not for circulation : for internal use only 79Slide 80: Subliminal perception • Subliminal perception refers to “below threshold.” Subliminal perception is the registration of sensory input without conscious awareness. subliminal perception techniques are used by media to grab the attention using money , sex as strong stimulator.Slide 81: SILK CAMISOLE SETSlide 82: Short KimonoSlide 83: Behavioral researchers agree that sought benefits and consumer perception are the main antecedents of brand preferences, which is as follows: BP = ∑ PA + CP Where: BP - Brand preferences PA - Product attributes CP - Consumer perceptionSlide 84: Not for circulation : for internal use only 84 PERCEPTION Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation Subliminal perception External Factors Intensity& Size Position Contrast Novelty Repetition MovementSlide 85: Not for circulation : for internal use only 85 Both internal & external factors influence the perception of the buyer Blind test of Coke & Pepsi Pepsi preference population 51 % coke 44 % equal /can’t say 5% Identity revealed test Pepsi 23% coke 65% equal/can’t say 12% Conclusion : Both internal & external factors influence the way in which an individual perceives a product or brand.Slide 87: Not for circulation : for internal use only 87 Perception drivers in consumers Social factors Psychological factors Cultural factors Personal factors What motivates the consumer's Life style What buyer’s feel acceptable norm in the society Core values which drives the consumer The way consumer relates & draw meaning of some thing.Slide 88: Not for circulation : for internal use only 88 Semantic perception and synthetic perception concepts.Slide 89: Consumer Attitude StudySlide 90: Not for circulation : for internal use only 90 Consumer Attitude In consumer behavior context , attitude is a learned pre deposition to behave in a consistently favorable or unfavorable way with respect to a given stimuli. (Brand ) Learned deposition refers to information source , perception , experience , exposure to media etc which helps to build an attitude & gives momentum to the behavior . The momentum can be negative or positive. Consistency refers to the voluntary decision ( Compulsive buying ) which makes the consumer to purchase the product/ service / brand till such time there are no intervening factors which force the consumer to change the attitude .Slide 91: Two school of thoughts in Attitudinal theory 1 . Insights on product usage : A ttribution theory focuses on how consumer assign causality to events and how they form or alter attitudes as an outcome of assessing their own behavior, or the behavior of other people or things. Dove communication is built on the product insight that soap dries skin , but Dove doesn’t because of its moisturizing content to nourish the skin. Cognitive dissonance theory : Anglo Saxon View ( Western theory) and Non Anglo Saxon View ( Eastern cultural rich view ) Theory suggests that the conflicting thoughts, or dissonant information, that follow a purchase /acceptance decision might propel consumers to change their attitudes to make them consonant with their actions. .Slide 92: Anglo-Saxon view : It is one big market world over and consumers across are same with same motivation . Nike’s approach to market with “Just Do it” is based on the fundamental that to win is a common motivation across. Non Anglo Saxon View ( Eastern cultural rich view ) Among many others , brands that has successfully shifted the attitude of market are : Fair & Lovely ( HUL) i -pill ( Cipla ) , Cadbury dairy Milk etc . Failed to shift the attitude are : Communication on Amul Macho inner wear & Chocolate flavor Axe effect male deodorant .Slide 93: While promoting male contraceptive products are unobjectionable, why emergency contraceptive pill for women invited obnoxious response? Can marketer’s create an attitudinal shift towards mild alcohol filled chocolate in Indian market ? Can marketer’s create an attitudinal shift towards Toilet roll paper in Indian market ?Slide 94: The toilet paper is a large industry in US . Twenty-six billion rolls of toilet paper, worth about US$ 2.4 billion, are sold yearly in America alone. Americans use an average of 23.6 rolls per capita a year. Moist toilet paper was first introduced by the Kimberly-Clark in the United Kingdom in the 1990s, and in the United States in 2001, two countries in which bidets are rare. It is designed to clean better than dry toilet paper after defecation. The 16th century French satirical writer François Rabelais in his series of novels Gargantua and Pantagruel , discussing the various ways of cleansing oneself at the toilet, wrote that: "He who uses paper on his filthy bum, will always find his ballocks lined with scum", proposing that the soft feathers on the back of a live goose provide an optimum cleansing medium .Slide 95: The disposable paper products market in India is limited to sanitary protection and incontinence products, which continue to form the bulk of the sales of disposable paper products in India. Mass media advertising as well as below-the-line consumer outreach activities are the key growth drivers alongside rising concerns about health and hygiene as well as growing purchasing power .Slide 96: 96 Tri component Attitude model: 1 Cognition component 2 Affective 3 Conation Conation Cognition Affect An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking & induce a stimuli for buying known as tri-component model. .Slide 97: 1.A positive or negative belief ( myth, Superstition, taboo, strong reference opinion, Right or wrong product/service information from authentic source ) As consumers hold many beliefs about a product or service, it is difficult to decide which belief influence the buyer’s attitude most. Hence Multi-attribute ( known as the Fishbein) Model attempts to summarize overall attitudes into one score using the equation: For each belief, take the weight or importance (Wi) of that belief and multiply it with its evaluation (Xib).Slide 98: For example, if a consumer believes that coffee can help to overcome metal fatigue by partially energizing ,hence gives the importance 4 on a scale of 1 to 7. He or she believes that coffee can energize better than tea, hence rates 6 on a scale from 1 to 7. Thus, the product here is 4(6)=24. On the other hand, he or she believes that coffee consumption is bad for health, hence rates 2. Coffee has high caffeine content hence bad for health, thus rates 1 . Now we have 2(1)= 2. Had these two beliefs been the only beliefs the consumer held, total, or aggregated, attitude would have been 24+(2)= 26. If required the scale can be extended from -7 to +7 . Since the second belief & evaluation factor is weak, it will negate the buyer’s decision towards coffee. In practice, of course, consumers tend to have many more beliefs that must each be added to obtain an accurate measurement.Slide 99: Affect . Consumer’s feeling & emotions associated with the brand. Consumers hold certain feelings toward brands . These feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains), but there may also be feelings which are relatively independent of beliefs. Behavioral Intention . The behavioral intention is what the consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g., although a consumer does not really like a restaurant, he or she will go there because it is a hangout for his or her friends.Slide 100: The Attitude shift is for : 1.Utilitarian Function 2.Ego-defensive Function 3.Value-expressive Function 4.Knowledge Function Utilitarian Function Favorable attitude towards a brand happens because it has high usage imagery . Marketers may stress the utilitarian feature or may suggest uses of the product that may not be obvious. 2. Ego-defensive Function Products that we purchase to protect our self-images, to replace our sense of insecurity with personal confidence. Techno savvy image , flamboyant image etcSlide 101: 3. Value-expressive Function Consumer's express personal values through the brands they purchase and own .Marketers often attempt to identify their brands with these values. “Fairness is a symbol of beauty & helps to gain success corporate” . 4. Knowledge Function Consumers feel the strong need to know and understand how the brand can be put to application or support & justify her decision of buying .Slide 102: Attitude change strategies Change Belief ( Add belief , Change currently held , change importance of belief.) Change Affect Change Behavior Approach 1.Comparative advertising 2 Hyperbole statement . 3. Emphasizing Brand Attributes ( USP) 4 Competition based advertisingSlide 103: Not for circulation : for internal use only 103 Attitude & persuasion Persuasion : A series of psychological processes mediating perception , comprehension , agreement , retention , retrieval & decision making using vital cue. Primary route of persuasion . Secondary route of persuasionSlide 104: Secondary route to persuasion is more acceptable while evaluating and structuring emotionally based attitude to a brand as it is possible to affect consumer’s attitude by simply changing his convictions after the impact on his emotions. Communication, directed towards senses will attract consumer’s attention which will change existing convictions, behavior and ultimately attitude. Such conclusions forms an assumption that the formation of consumer attitude to a brand, applying secondary route of persuasion is an appropriate method when the level of involvement in communication is low as this does not require a lot of effort form a consumer’s side.Slide 105: Not for circulation : for internal use only 105 Elaboration Likelyhood model : ( ELM) explains the way the consumer respond to communications or messages. According to ELM attitude formation or change process depends on the amount & nature of elaboration or processing of relevant information. ELM is a function of Motivation Ability to process the message. Motivation depends on the involvement , personal relevance, individual needs & arousal levels. Ability to process depends on knowledge & its relevance & opportunity to use.Slide 106: Not for circulation : for internal use only 106 Message Motivated to process Ability to process Persuasion Cue present No No Yes Yes Cognitive processing Cognitive structure Change Attitude change change +ive Neutral Temporary Attitude shift Retain original Attitude Yes No ELABORATON PROCESSSlide 108: Client: Asian Paints Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software to choose and select 1,511 shade combinations, designed to reach consumers in a direct `dil se' style. Advertising Objective: Position Asian Paints Colour World as the ‘one stop paint shop’ with all the colours one could want. The advertising should create enough interest in potential consumers to ensure that they come to the Asian Paints Colour World outlet or at least call the Asian Paints helpline.Slide 109: Target Audience: Demographics Region : India, urban population Occupation : Service/working professional/self-employed Gender : Insignificant Religion : Insignificant Social class: Upper Middle and upwards SEC: B and upwards Family life cycle : Middle aged Behavioural Occasions: When looking to paint the interiors of his house (usually there is an upsurge with new construction and during festive seasons like Diwali and Holi) User status: First time user Loyalty status: Not defined Readiness Stage: Relatively informed Attitude toward product: Low-involvement Attitude toward brand: Trusting, has high-recall valueSlide 110: · Consumer Research. Consumer research noticed that during the phase of getting their house painted, consumer look for just the right shade and are prone to collecting samples to visually show their painter exactly what they had in mind. But always they are unable to express verbally. Using this insight , the concept of mera wala pink , meral wala cream and green was conceptualized.Core thought: Core thought Asian paints is about people who invest emotional energy in creating their homes Asian Paints is about homes which reflect the taste and love of their owners/residentsBrand Image: Brand Image Brand image is the collective perceptions of customers about an organization’s brand positioning efforts An organization's positioning efforts create a brand’s image by overcoming information clutter , in most cases minimal interest , and limited mental capacity . The goal is to produce a “road map” of how and where the brand fits into a person’s cognitive framework.Slide 114: Brand Loyalty : Brand loyalty is a function of attitudes and behavior . It is an attitudinal predisposition favoring a brand and a pattern of purchasing that brand regularly.Slide 117: Not for circulation : for internal use only 117 McGuire’s theory of personality & persuasion . It focuses two aspects : 1. Reception ( Perception & comprehension ) 2. Yielding ( agreement ) It states that the personality is related to these two aspects in opposite way. The personality trait which increases the reception decreases yielding. Attitude change ( AC) is a function of a multiplicative relationship between reception ( R) & Yield (Y) . AC= R X Y .Slide 118: Not for circulation : for internal use only 118 Since IQ is one of the important factor for persuasion, higher the IQ in a consumer the R factor is bound to be high. But the yield is low in this case because it requires rigorous evidence to influence. Ac= R X 0 = 0 Similarly when the IQ is low, R factor is low since individual finds it hard to understand the persuasive message . However the yield factor is high because he is gullible & accepts it easily .Slide 119: Not for circulation : for internal use only 119 Attitude Change Reception Yielding Likelihood Of response Not likely at all Very Likely Low High AttitudeSlide 120: Not for circulation : for internal use only 120 Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting & relevant ie the consumer take time to understand it is said to follow a central route of persuasion. ( strong reason & argument to support & hold a particular attitude &opinion. ) On the other hand , peripheral route to persuasion implies, very little or effort to think, involve , or inclination. In such case the attitude formation towards the brand is on the basis of peripheral clues .( back ground music , pictures etc. ) Exposure to AD Motivation to Elaborate Peripheral Route Ability to elaborate Central Route High LowSlide 121: Not for circulation : for internal use only 121 . Involvement = f ( Personal , situational , Product attribute ) High Product Involvement Low Perceived brand differentiation High Low Learning Model Cognitive Affective Conative Dissonance Model Conative Affective Cognitive Low involvement model Cognitive Conative Affective FCB Grid used to change the attitude of a buyerSlide 122: A research by Wharton marketing & Stanford marketing professors Cassie Mogilner & J.Aaker argues that when companies weigh which theme to be used while communicating the brand to invoke attitudinal shift in consumer , Time theme over money theme proved more effective. Further it was studied to what extend it is linked to consumer’s personal experience, emotion and identity , which is responsible for attitudinal shift . A lemonade stand experiment . Conclusion of the experiment : Brands can cultivate consumer relationship by first considering how consumers identify with the product ( through experience or possession ) & then highlighting either the time or money spent accordingly.Slide 123: Not for circulation : for internal use only 123 Relationship of attitude with communication Brand communication Belief about the brand Judgment about Brand Feeling about Brand Benefit analysis Attitude towards the brand Attitude shaping through media communicationSlide 124: Innovation & diffusionSlide 125: Diffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures. An individual or an organization/social system bases the type of decision on whether an innovation is adopted/rejected. The three types of innovation-decisions are: Optional innovation-decisions, collective innovation-decisions, authority innovation-decisions. 1.Optional Innovation-Decision This decision is made by an individual who is in some way distinguished from others in a social system.( Role model)Slide 126: In mid '80s the woman in the Surf Ad got a name - Lalitaji - and was brought to life on television by Kavita Chaudhary in a TV commercial with the tag line “ SURF ki Kharidari mai hi Samajdari hai ( It makes better sense to buy Surf)”. They were fighting a soapy detergent war against Nirma. Nirma, in turn, had found an icon of its own in a young little girl swirling around in a skirt – the Nirma girl. The Ad jingle for Nirma was the clincher: “Washing powder Nirma, washing powder Nirma Dudh si safeedi, Nirma se aaye Rangeen kapda bhi khil khil jaye Thoda sa powder aur jhag dher sara Rekha, Jaya, Geeta aur Sushma Sabki pasand Nirmaaaa. Washing powder Nirma. Nirma.”Slide 127: 2.Collective Innovation-Decision This decision is made collectively by all individuals of a social system. 3.Authority Innovation-Decision . This decision is made for the entire social system by few individuals in positions of influence or power. Five stages of innovation decision are : knowledge, Persuasion, Decision, Implementation, confirmation.Slide 128: What is online banking What motivates Online banking Does it enhance consumer’s present Way of doing things ? Y/N What will make him try? What motivates him to shift ?Slide 129: Knowledge In this stage the individual is first exposed to an innovation but lacks information about the innovation. Hence during this stage the individual has not been inspired to find more information about the innovation. Persuasion In this stage the individual is interested in the innovation and actively seeks information/detail about the innovation. Decision In this stage the individual takes the concept of the innovation and weighs the advantages/disadvantages of using the innovation and decides whether to adopt or reject the innovation. Implementation In this stage the individual employs the innovation to a varying degree depending on the situation. During this stage the individual determines the usefulness of the innovation and may search for further information about it. Confirmation: Individual apply the concept to his daily life.Slide 130: The rate of adoption is defined as the relative speed with which members of a social system adopt an innovation. It is usually measured by the length of time required for a certain percentage of the members of a social system to adopt an innovation Adoption Curve : Adoption Time Due to initial resistance to accept the change in the daily life, social system will oppose the innovation , unless innovation is strongly aspiring ( persuasive motive ) the market to adopt the innovation. A doption of an innovation follows an S curve when plotted over a length of timeSlide 131: Hybrid corn was adopted only slowly among many farmers. Although hybrid corn provided yields of about 20% more than traditional corn, many farmers had difficulty believing that this smaller seed could provide a superior harvest. They were usually reluctant to try it because a failed harvest could have serious economic consequences, including a possible loss of the farm. Agricultural extension agents then sought out the most progressive farmers to try hybrid corn, also aiming for farmers who were most respected and most likely to be imitated by others. Few farmers switched to hybrid corn outright from year to year. Instead, many started out with a fraction of their land, and gradually switched to 100% hybrid corn when this innovation had proven itself useful.Slide 132: Forces which would work against innovation are : socio cultural ( ideology of the market ) financial constraint Technological culture. Birth control pill is incompatible with strong religious influences in countries heavily influenced by Islam or Catholicism . Electric razor : Indian shaving skill is incompatible with the dry shaving concept mooted by the product.Slide 133: The characteristics which determine an innovation's rate of adoption are: (1) Relative advantage : It is the degree to which an innovation is perceived as better than the idea it supersedes. The degree of relative advantage may be measured in economic terms, but social prestige, convenience, and satisfaction are also important factors. It does not matter so much if an innovation has a great deal of objective advantage. What does matter is whether an individual perceives the innovation as advantageous. The greater the perceived relative advantage of an innovation, the more rapid its rate of adoption will be.Slide 134: (2) Compatibility is the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters. An idea that is incompatible with the values and norms of a social system will not be adopted as rapidly as an innovation that is compatible. The adoption of an incompatible innovation often requires the prior adoption of a new value system, which is a relatively slow process. (3) Complexity is the degree to which an innovation is perceived as difficult to understand and use. Some innovations are readily understood by most members of a social system; others are more complicated and will be adopted more slowly. New ideas that are simpler to understand are adopted more rapidly than innovations that require the adopter to develop new skills and understandings.Slide 135: (4) Trialability is the degree to which an innovation may be experimented. New ideas that can be tried on the phased manner will generally be adopted more quickly than innovations that are not divisible. An innovation that is trialable represents less uncertainty to the individual who is considering it for adoption. Role of tryvertising as an execution strategy building adoption rate ? (5) Observability is the degree to which the results of an innovation are visible to others. The easier it is for individuals to see the results of an innovation, the more likely they are to adopt it. Such visibility stimulates peer discussion of a new idea, as friends and neighbors of an adopter often request innovation-evaluation information about it.Slide 136: Other Cultural dimensions influencing to adopt new products more quickly than others are: Modernity : The extent to which the culture is receptive to new things. In Britain and Saudi Arabia, tradition is highly valued—thus, new products often don’t fare too well. The United States, in contrast, tends to value progress. The concept of modern Japanese toilet based on vacuum driven, deodorized, auto cleaning of base fail to connect UK market . Homophily: The more similar to each other that members of a culture are, the more likely an innovation is to spread—people are more likely to imitate similar than different models. Small car concept picked up well in India as average height of Indian men ranged between 5.5 to 5.8 ft.Slide 137: The strategy used by the brand owners to induce early adoption in the market : identify an highly respected individuals ( Innovators ) within a social network, creating an instinctive desire for a specific innovation. Inject an innovation into this group of individuals who would readily use an innovation, and provide positive reactions and benefits for early adopters of an innovation. The categories of adopters are: Innovators Early adopters Early majority Late majority LaggardsSlide 138: The bell shaped curve illustrates the rate of adoption of a new product. The saturation point is the maximum proportion of consumers likely to adopt a product. (1) Innovators – 2.5% (2) Early adopters – 13.5% (3) Early majority – 34% (4) Late majority – 34% (5) Laggards – 16%Slide 139: Cumulative adoptions are reflected by the S-shaped curve. ATM cards diffused quickly in the market .Retail banking segment enjoyed the benefit of this in lowered cost of servicing the client. ( Move from branch banking to ATM banking ) Since the cards were used in public, others who did not yet hold the cards could see how convenient they were. Although some people were concerned about security, the convenience factors emerged as a decisive factor in the “tug-of-war” for and against adoption.Slide 140: The product life cycle (PLC) is tied to the phenomenon of diffusion of innovation. When a new product comes out, it is likely to first be adopted by consumers who are more innovative than others. It is important for a brand to create innovators since many other later adopters will tend to rely for advice on the innovators who are thought to be more knowledgeable about new products for advice . Time RevenueSlide 141: 1.Assuming all technical issues with Broadband /Internet providing TV (Web-TV, Cyber-TV, Cable-TV and so on) have been solved and there is no regulation elements, will people adopt to ip TV mode ? If yes, Why ? when? If packaged tender coconut water is made available by a leader in FMCG sector to the mass India, will people adopt? Why ? / Why not ? Food for thoughtSlide 142: Self image . Self image is composed of the attitudes a consumer holds towards herself due to internal & external stimuli . Life style of a consumer is an outward expression of one’s self concept. Life style drives & involves the consumer in buying decision of a specific brand of product or service. Therefore Self image is defined as the totality of an individual's thought & feeling having reference to herself or him self .Slide 143: Research shows that Self image can be categorized in two levels. 1. Independent Self concept ( Separateness ) 2. Interdependent Self Concept. (Connectedness) Independent self concept. It is based on the fact that individuals give more importance to their personal values & goal, , egocentric , autonomous, self reliant & self contained.Slide 144: Interdependent Self Concept. It is based on the fact that individuals give more importance to their society ( family values , social pressure & social relationship). Such consumer demonstrate socio centric , holistic , connected & relationship oriented approach in their behavior.Slide 145: Self Congruity : Self-congruity represents the degree of similarity between consumer’s self-image or self-concept and that of brand. The degree of consistency between the self-image and brand image is self-congruity . The four aspects of self-concept compose the global self-image, which influence consumer choices of brands through self-image with brand image congruity.Slide 146: Self Concept and Brand Self-congruity Personality as a predictor of self-congruity has a natural extension of the self-concept/Self-congruity theory because, both constructs are closely related to each other . Self-concept is often viewed as a component of personality. R esearch shows that there is a positive association between self-concept and brand image . The greater the congruity between the human characteristics that consistently and distinctively describe an individual's actual or ideal self and those that describe a brand, the greater the preference for the brand (Aaker).Slide 147: Self-concept is hypothesized to consist of four components, actual self-concept, ideal self-concept, social self-concept and private self-concept . Within this framework, actual self-concept refers to the present way in which individuals perceive themselves (reality), whereas the ideal self-concept represents the manner in which they would like to perceive themselves. Social self-concept represents the way individuals believe others perceive them, while private self-concept represents the way the individual desires to be perceived by others.Slide 148: Actual Self concept & Ideal Self concept : Who I am now & Who I would Like to Be” ( Ideal self concept) . Men’s formal brand presently, wants to be a brand for both men & women . Private Self Concept and Social Self Concept : How I want others to see me & how others see me ( Social Self Concept.) Brand wants to be known as rugged ,rough & tough. ( Private self) Market consider brand as mild & meant for occasional use. ( Social self )Slide 149: Self concept Perception gap Personality gap Identity gap Position gap Why perception gap, Identity gap, personality gap & position gap is well understood by getting the insight of market’s self concept.Slide 151: Measuring Self concept. self concept helps to position the brand firmly & appeal the consumer. Mother is perceived to be caring for her children. 5 4 3 2 1 Fully partially Agree Somewhat Donot Agree agree agree agree A corporate citizen want to portray professional & confident in work. 5 4 3 2 1 Fully partially Agree Somewhat Donot Agree agree agree agree House wives see washing machine as time saving appliance 5 4 3 2 1 Fully partially Agree Somewhat Donot Agree agree agree agreeSlide 152: Self concept is measured using Semantic Differential Scale. The scale helps to describe ideal, actual, private & social concepts of an individuals & thus can be mapped on the image of the brand or useful characteristics in marketing communication. ___ Rugged ___ Delicate ___Complex ___ Simple ___ Contemporary ___ traditional Tick which word describes your washing machine most appropriatelySlide 153: Not for circulation : for internal use only 153 Consumer Personality An eagle’s egg was placed in the nest of a prairie chicken. The egg got hatched & the little eagle grew up in the surrounding of a chicken. It scratched in the dirt for seeds , clucked & cackled. It never flew more than a few feet. One day an environmentalist saw the eagle with the chicken & persuaded the owner to let it free . The eagle is not meant to be on the ground, the sky is it’s world. The owner said, “ It is doing what it has learnt from its friend”. You may try . Let it fly high in the sky, to never return again . The environmentalist tried , took it high on a mountain , held up & said the sky is your world go . The eagle flew a few meters & came back on the ground. In spite of repeated attempts the eagle could not fly. He brought it back & put it back with the chicken. It flapped its wings & got back to the dirt's to find the seeds to feed itself. What is the moral of the story ?Slide 154: Not for circulation : for internal use only 154 Origin of personality Genetic Determinants Parental Determinants Experimental Determinants External Determinants based on social, cultural Race, religion etc. Development of Stable personality Characteristics. Personality development Behavior Individual differences in behaviorSlide 155: Not for circulation : for internal use only 155 Consumer personality Self image Perception Learning Behavior Attitude Motivation Temperament Consumer tries to see her personality through the brand she owns & justify the reasons for owning it. If brands fail to communicate the personality to the target audience, it will find difficult to attain the position in the mind of the consumer.Slide 156: Not for circulation : for internal use only 156 The commonly referred personalities types are : Innovative type : Consumers are attracted to new types of product & service & also whenever the existing product is modified & marketed the innovative type gets attracted to it . Eg Mobile, Multimedia desktop, laptop . Hotel service, tourism service. Etc Dogmatic Type : Consumer prefers to stay with tested product & shrinks away from unfamiliar & new product. Inwardly directed : Buying decision is more based on self thinking. Outwardly thinking : Consumers are excited to buy when he/she is told that many others are doing so.Slide 157: Personality can be defined as the consistency of interaction towards a person’s external and internal stimuli (Fiske). Research background : Thurstone conducted psychological factor analysis of 60 personality terms & came up with 5 common factors. Cattell followed Thurstone’s method & came up with a more complex set of personality variables, known as 16 Cattell Personality Factors (PF). Other researchers, including Fiske and Digman, did a follow up study by analyzing Cattell’s 16 Factors and found out that only 5 factors are proven to be replicable across different context . This research, gave birth of ‘Big Five’ in personality theory. . The Big Five theory has been tested across different cultural contexts and considered as one of the most systematic and reliable personality constructs.Slide 158: The Big Five Model explains individual differences using a trait analysis approach. “ Big Five ” personality test is regarded as Dimensional/Galilean rather than Categorical/Aristotelian approach. The Big Five aims to explain individual differences based on several dimensions rather than putting people into boxes of personality categories, which enables researchers to examine individual differences based on different trait factors. Factors considered in BIG FIVE MODEL: (1) Neuroticism : It assess an individual’s prone to psychological distress, unrealistic ideas, excessive cravings or urges, and maladaptive coping responses. A person who has high score in neuroticism dimension is considered unstable and emotional. (2) Extraversion: It assesses an individual’s quantity and intensity of interpersonal interaction and activity level. A person who scores high in extraversion dimension is likely to be adventurous and energetic .Slide 159: The high scorers tend to be sociable, active, talkative, person-oriented, optimistic, fun-loving, and affectionate. (3) Openness : It assesses an individual’s proactive seeking and appreciation of experience for its own sake, toleration for, and exploration of the unfamiliar. The high scorers tend to be curious, creative, original, imaginative, and untraditional. (4) agreeableness : It assesses an individual’s quality of interpersonal orientation along a continuum from compassion to antagonism in thoughts, feelings, and actions. The high scorers are likely to be soft-hearted, good-natured, trusting, helpful, forgiving, gullible, and straightforward. (5) Conscientious : It assesses one’s degree of organization, persistence, and motivation in goal-directed behavior. The high scorers of this dimension tend to be organized, reliable, and hard working.Slide 161: In Big Five construct , consumers are grouped into 5 dimensions. Scores on NEO PI-R (Neuroticism-Extraversion-Openness Personality Inventory Ratio) determines where each consumer is positioned, a person can be positioned into more than one dimension. In the questionnaires consumers’ are asked to rank themselves in each dimension and calculate the score for each dimension. In the marketing context, researchers are interested to find out significant dimensions of consumer personality. The way ‘significant’ is defined in The Big Five as the dimension in which the participants score the highest. There is no rule of thumb concerning the number of dimensions that can be taken into account in marketing, however, for the purpose of this study, 2 dimensions are considered the maximum number to be included in the model in order to classify respondents into specific personality cluster which best describes their personal characteristics.Slide 162: Not for circulation : for internal use only 162 Life style modelsSlide 163: Not for circulation : for internal use only 163 VALS AIO Model Monitor Mind Base Geo-Demographic Analysis ( PRIZM) Global SCAN Life style study of a consumer involves his attitude , Values , Demographics , life stage etc . Following models explains the concept of life style from different perspectives.Slide 164: Not for circulation : for internal use only 164 Enjoy the Inner thing, Receptive to new product Technologies Actualizer Most resourceful Fulfilled Less interested in image & prestige Principle oriented Attracted to premium products Achievers Expereincer Follow fashion & Fad Believer Striver Maker Struggler Need driven Status oriented Action oriented Slow to change , habits, look for bargains Image conscious , limited income Shop for comfort , willing try change. VAL 2 SegmentsSlide 165: Not for circulation : for internal use only 165 Monitor Mind Base Life style developed based on Value, Life stage & motivation . It combines an individual’s position on a set of core values with life stage & motivation. The values are : Materialism Material pleasure . (one’s own pleasure ) Technology Orientation Family Values Conservatism Cynicism versus Optimism Social interaction Accordingly the segments are : Up & comers (Aspiring Achievers )Slide 166: Not for circulation : for internal use only 166 Realists: Constrained & strive to balance their needs. New Traditionalist : Involved in community & family oriented . Success comes from good marriage & healthy kids . Family Centered : Not interested in social issues & self exploration. Individualist : Driven by technology & success at work . Devoid of family & kids . Renaissance Masters: Family & community oriented people. Maintainers : Use past as a point of reference . Resource constrained, lead traditional content life .Slide 167: Not for circulation : for internal use only 167 Prizm : Life style & consumption is largely driven by demographic factors . People with similar cultural background , means, perspective gravitate toward one another. The model is widely used in U.S for consumer segmentation. GM, BMW , Hertz etc Life style clusters are : 1.Furs & station Wagon : Well educated , mobile professional , big spenders, expensive neighborhood. 2.Blue chip Blues: High school education & blue collar occupation , fewer high end incomes & low home values.Slide 168: Global SCAN : Similar life style in different cultural surrounding leads to multiple consumer segments. 1Adapters 2Strivers 3Achievers 4Pressured 5TraditionalistSlide 169: Traditionalist Pressured Adapters Strivers Achiever Old value people conservative , tied to past. ( Downtrodden people with more of problems, economic & Family ) Older crowd . Content with what they have Materialistic pleasure , success oriented, short of time Affluent, assertive & opinion makersSlide 170: Not for circulation : for internal use only 170 Responsibilities of Marketer & Consumer protection. Fair Media communication : Compliance to Social norms Avoid Unethical marketing activities. Consumerism & Consumer protectionSlide 171: Not for circulation : for internal use only 171 Exploitation of the consumer by the business community through unfair means & practices have led a movement called consumerism. Reduce 10 Kg weight in 20 days Increase you height by 2 inch in 15 days Change your complexion in 3 weeks Remove all marks in 6 weeks. Protect the consumer from unlawful activities or communication which are misleading & exploit them is referred as consumer protection .Slide 172: Not for circulation : for internal use only 172 Consumer protection Act 1986 : A legal umbrella to protect the interest of the consumer & speedy & cheap justice. It provides compensation to consumers , penalties to non compliance of the rules by the marketers . Under the CPA 1986 , the consumer has : Right to information Question the marketer on charging of Unfair prices Statutory & mandatory disclosure Protection against hazardous goods. Right to consumer educationSlide 173: Not for circulation : for internal use only 173 The policy making body under consumer protestation act is central consumer protection council & State consumer protection council. The body is equally responsible for effective implementation of the Policies. Central cabinet Minister -Food & Civil supplies is the chairman of the central council & same is the case at the state level. A consumer complaint can he lodged in : District forum , ( Jurisdiction up to 20 lacs ) State forum (Jurisdiction up to 20-100 lacs ) National forum .( Value more than >100 Lac )Slide 174: Any consumer can approach district consumer redressal forum if he has been cheated by the marketer in terms of product delivery & service . Any claim or the value of product & service up to 20 lacs can be handled by district forum . A consumer must lodge his complaint within 2 years . He may appeal to state redressal forum if not satisfied with the decision.Slide 175: Not an End , but a nimble footed beginning in the corporate ocean , If sharks are unavoidable , Learn to live with it , Craft your own destiny where , You may not be important to everyone , But you may be special to some one. Wish you all the best in your endeavour towardscorporate journey .Slide 177: Not for circulation : for internal use only 177 The Consumer is isn’t stupid , She is your Boss. ……………Ad Guru David Ogilvy It is no surprise that media must try open the minds of these consumers digging deep into their thinking & feeling patterns , so that they can shape communication to achieve the desired behavioral response.Slide 178: Not for circulation : for internal use only 178 A McKinsey report predicts a glittering future for Indian consumers & explosive growth in Indian Consumer spending . According to the econometric model the middle class will balloon leaving less than 18% in the lowest income category . Today 47% of house hold are in middle class segment , which was jus 20% five years ago. ( BIG BUSINESS OPPORTUNITY ) The middle class segment will grow to an impossible to ignore segment ( 583Mn ) in next ten years. It will control 51.5 lac Crore spend , 11 times increase from the present. ( BIG BUSINESS OPPORTUNITY )Slide 179: Not for circulation : for internal use only 179 According to ACNielson global Consumer Confidence & opinions survey 06-07 , Indian consumer leads the rest of the Asia pacific countries , remarkably upbeat about the spending on various segments . Business opportunities in Retail, Real estate, Telecom, Financial services , Tours & travels, Education, Wellness etc are on the verge of exploding. However the brand managers of the organization are unable to see the skyrocketing sales & serpentine queue of consumers in the store . WHY ???????????Slide 180: Not for circulation : for internal use only 180 Tier -III 33 cities 1.Major cities > 100 bn total income 2.Main stream Cities 3.Climbers 4.Small Towns 4 Metros , Bangalore Hydrabad , Pune Ahemdabad Classification of cities & Town Tier –I 8cites Tier -IV 5093 towns Tier –II 26 citiesSlide 181: Not for circulation : for internal use only 181 Consumer behavior study help to probe the deep recesses of the consumer mind where the needs are still not articulated. It helps to get deeper in to the MIND & HEART of THE CONSUMER get more insight & angles which helps the organization to understand how they THINK & FEEL about the brand /product / service rendered. This creates a desire to buy & involve with the brand . It helps to build a life time customer value for the organization, which is an intangible asset .Slide 182: Not for circulation : for internal use only 182 Customer Value & Purchase Involvement Value drives satisfaction Satisfaction is a necessary condition for customer loyalty, but not a sufficient to create loyal customers, customer excellence & delight. Value = Benefits ( Functional Benefit + Emotional Benefit) Cost ( Monetary +Time+ Energy+ Psychic Cost) Customer perceived values in a product or services are : Functional Value Emotional Value Social value Situational / Conditional value Epistemic ValueSlide 183: Not for circulation : for internal use only 183 Customer Value & Purchase Involvement Value drives satisfaction Satisfaction is a necessary condition for customer loyalty, but not a sufficient to create loyal customers, customer excellence & delight. Delivering value to the customers is a key to achieving organizational goals by being more effective than its competitors in creating , delivering & communicating customer value to the identified set of consumers in the market . What is value? Value = Benefits ( Functional Benefit + Emotional Benefit) Cost ( Monetary +Time+ Energy+ Psychic Cost) What is customer delivered value ( CDV) ? It is a difference between Total Customer Value( TCV) & Customer’s Total Cost ( CTC)Slide 184: Not for circulation : for internal use only 184 Determinants of CDV CDV CTC TCV Product value Service Value Emotional Value Image Value Monitory cost Time Cost Energy Cost Psychic cost CDV builds customer delight . It is a difference between the perceived performance ( Out come ) & expectation. If the performance falls short of expectation, it leads to dissatisfaction. On the other hand if it matches the expectation it leads to satisfaction. When it exceeds expectation, it becomes Customer delight .Slide 185: Not for circulation : for internal use only 185 Customer Loyalty Program CEM CTM (Customer touch point Management ) Enhancing customer Touch point during : Purchase touch point Post purchase touch point To increase the mind share of the customer with the brand.Slide 186: Not for circulation : for internal use only 186 Influencing buying decision in a consumer CONSUMER Cognitive factor Personal characteristics Individual factor Environmental factor Decision making Culture Social class Influence group Situational variable Response FeedbackSlide 187: Not for circulation : for internal use only 187 Cognitive Personal cultural social Influence Situational factors factors factor factor groups variables Perception Demographics Values Social Reference point of & class groups purchase Attitudes Life style Belief & Structure Family Market communication Motives Personality Cross Societal Opinion leaders Display & Need traits cultural belonging Innovation Store Influences & trend Patronage Self concept Sub cultural setters Price influences All above factors influence a consumer’s buying decision. Buyer’s characteristics are influenced bySlide 188: Not for circulation : for internal use only 188 Buying Decision process Need recognition Information search Evaluation Of alternatives Purchase Decision Post purchase Behvaiour Input Stimuli Output Behaviour Motivation Attitudes, Personality, PerceptionSlide 189: Not for circulation : for internal use only 189 Consumer’s behavior is studied from the point of view of : 1.Consumer as an individual : Consumer behavior study as in individual involves motivational drive ,its measurement , needs & wants & types of need . Self concept, attitude , perception, consumer imagery 2Consumer in his social & cultural setting : It involves cultural influence, sub culture , cross culture , ( nationality, religion , etc ) psychographic [ life style ] , Social group, reference group , geo demographic clustering etc.Slide 190: Not for circulation : for internal use only 190 Values : Values are formed at much early in age ,at home or school & are the deep rooted . While all values have its own negatives & positives, it can rarely be changed . Ritual & heroes fall between the deepest & superficial manifestation . Heroes are people ,alive or dead or imaginary serving as a role models of the behavior. Rituals are ways of socially greeting, social & religious ceremonies . A traditional marriage ceremony, being followed with out questioning it. Culture strongly influence the decision making behavior of a consumer.Slide 191: Not for circulation : for internal use only 191 Psychographic profile It is a combinations of Social group, sub group, attitude, perception, opinion , interests life style . Value & life style ( VAL Model ) & Activity , Interest & opinion ( AIO) inventory helps to study the psychographic profile of a consumer . VAL model classifies the consumer in the following categories on the basis of Value & life style . 1Actualizer , 2 fulfilled, 3Believer, 4 Achiever , 5Striver, 6Experiencer, 7Maker 8 StrugglerSlide 192: Not for circulation : for internal use only 192 Personality classification done on the basis of Psychographic segmentation of Indian Women & Youth done by a research organization. CLASS Behavior Miss Sophisticate : Tries out new & trendy products .Upward mobile group. Traditionalist : Stick to the brands which gives comfort. Troubled home baby : Unwilling to spend extra for comfort & pleasure . Compromising nature . Evaluate Price performance Ms up to date : Do not compromise on life style . Willing ness to change when required. Ms nonsense : Believes cheapest products gives hive material value. Do not believe in branded products. Conservative : Learn to manage with what is in in deposition. Spending money is a bad habit Gregarious hedonist : Spends for social cause , strong religious belief , custom .Slide 193: Not for circulation : for internal use only 193 Youth classification : Behavior Cultural misfit : Carried by strong belief . Unwilling to change Style Bhai : Believes in experimenting new things. Appearance conscious. Shows high degree of change. Middle class Manju : Typical family oriented & Price conscious, spending on entertainment , life style products is bad habit. Main Bhi NRI : Adapts to new culture fast . Can be easily influenced. Life style conscious. Trend setters Rich Brat : Willing to spend for luxury , comfort ,even if it has short lived usage . Nerdy Nandu : Time constrained youth . Always behind trend & clue less. Wiling to do any thing to climb the ladder of success.Slide 194: Not for circulation : for internal use only 194 VAL( Value & Life style Classification ) System . ( developed by Arnold Mitchell) The system was developed to explain the dynamics of societal change in the buying behaviour of a consumer . Accordingly consumer responses were collected for 35 attitudinal & 4 demographic questions. On the basis of these responses consumers were classified in eight distinctive sub groups. Each group signifies a behaviour response pattern ( life style ) & inner psychological needs ( Value ) It acts as a dynamic frame work of values & life styles which helps to explain why people have a explicit behaviour Eight VAL segments are : Actulizer Experiencer Fulfilled Maker Believer Struggler Achiever StriverSlide 195: Not for circulation : for internal use only 195Slide 196: Not for circulation : for internal use only 196Slide 197: Not for circulation : for internal use only 197 VALS type model used by Unilever . Food benefit frame work created by comparing key benefits in different categories are : Confidence , Time saving , Health , pleasure , Mental management , Caring ( family/world ) Fun, socializingSlide 198: Not for circulation : for internal use only 198Slide 199: Not for circulation : for internal use only 199Slide 200: Not for circulation : for internal use only 200 IndicatorSlide 201: Not for circulation : for internal use only 201 Activities Interests Opinion Demographics Work Family Themselves Age Vacation Entertainment social occupation Sports Achievements Culture Dwelling AIO MODELSlide 202: Not for circulation : for internal use only 202 Family life cycle & buying role. Family plays an important role as a social group influencing consumer’s behaviour. The influence is either as face to face ( primary group or as reference group ( values, norms, living standard etc) Understanding of family Life cycle ( FLC) FLC: A composite variable created by systematically combining commonly used demographic variables like : size of the family, martial status age earning members , disposable income etc. FLC is studied from the view point of : Bachelor hood status Married couple Parent hood Post parent hood Dissolution Parent hood is further classified in to Full nest 1 , 2 & 3 stage . Post parent hood is classified in to Empty nest 1 & 2Slide 203: Not for circulation : for internal use only 203 Attitude, Interest & opinion of a consumer projects his life style. Demographic & psychographic segmentation is important for ultimate market segmentation as psychographics provides insight in to the consumer segment ( life style ) while demographics helps to locate& target the market segment .It helps to look at wide variety of variables & measures the major dimension . Feldman & Theibar explains life style by the following characteristics: 1 Life style is a group phenomenon . It is influenced by his/her participation in social groups & individual personality ( attitude , emotional status driven by beliefs & values )Slide 204: Not for circulation : for internal use only 204 2 Life style implies a central life interest . The central life implies interest factors like family, work , leisure , religion , politics , sexual exploits 3 The rate of social change in a society has a great influence on the life style. Age , gender , religion ethnicity & social class . Eg Dual income class , nuclear family High earning potential in early age & late working hours .Slide 205: Not for circulation : for internal use only 205 Cultural & societal variables establish the outer boundaries of life style specific to culture . The interaction of the group & individual expectations & values create a systematic pattern of behaviour. This life style pattern determines the purchase decision. Life style refers to the way in which people live & spend money . Consumer psychographic profiles are derived by measuring different aspects of the consumer such as : Activities , Interests & opinion referred as AIO inventory Activates : How one spends his time . Interest : One’s priorities & preferences. Opinion : How one feels about the varieties of thing. Activities , interest& opinion (AIO inventory) helps to link wide variety of variables & measures the major dimension on the life style of a consumerSlide 206: Not for circulation : for internal use only 206 Identified three self orientations. Principle Oriented : Guided by the beliefs & principles. Status oriented : The individuals are heavily influenced by actions approvals & others opinion. Action oriented : Desire social & physical activity variety & risk taking . VAL 2 divides the consumer in three distinct groups, which determines the life style, attitude & decision making . All eight segment differ in their resources & orientations. Makers : Action oriented category, possess skills & value self sufficiency. Striver : Status oriented category , but have low income. Strive to build secure place & position in life.Slide 209: Relationship between Self concept & Brand Image Brand Image Consumer Self Concept Relationship Market Communication Satisfaction Acceptance Loyalty Brand image Reinforce Self concept.Slide 211: Not for circulation : for internal use only 211 CONSUMER LEARNINGSlide 212: Not for circulation : for internal use only 212 Consumer behavior models having relevance on decision making process. 1. Classical conditioning 2. Operant conditioning 3. Behavioral LearningSlide 213: Not for circulation : for internal use only 213 Cognitive factors which affect the classical conditioning process are: Consumer characteristics . Impact of visual stimuli depends on the the consumer’s ability to visualize the creative message. Over creative ads loose its impact when not understood by the consumer. Further non visual stimuli ( jingle) has different experience with different consumer . Hence it can result in negative and positive learning experience . Stimulus characteristics . : Known stimuli is avoided as pre exposure of stimulus reduces the impact on the consumer. Eg Sales promotion techniques like discounts , gold coin , lottery etc Blocking association : A brand ambassador (stimuli ) having connection with a particular brand or product when used with another , consumer gets mentally blocked from making an association.Slide 214: Not for circulation : for internal use only 214 Operant or instrumental conditioning .( Skinner theory) A learning in which the consequences of behavior lead to changes in the behavior pattern conventional Partner Criticized Weakening of blade ( punishment) Behavior ( Negative action) Gillete partner Admired ( Reward ) Strengthening Sensor Smooth shave of behavior Positive action Mach -3 No comment ( No reward) Neutral . No Change Behavior shaping : Rewarding the consumer in consequence to the desired behavior.Slide 215: Not for circulation : for internal use only 215 Observational learning : Positive Behavior result only when the optimal use of the product is demonstrated . The Ad makers have to communicate through creative usage of the brand /product for the consumer to imitate the person doing it. Selection of Brand ambassador :Eg Sanjeev Kapoor for masala , Personal care products. House wives for consume durable products. Advantage : High imitation , Observational learning helps to build : High attention positive learning Desired Reward( learning) behaviorSlide 216: Not for circulation : for internal use only 216 Repetition enhances the association of Stimuli to response. Effectively used in creating subliminal approach. Technology posing threats to subliminal approach. Zipping ( FF) Zapping( CC) & Filtering REALITY : More than 60% TVC are zapped. Preventing zipping , zapping & filtering 1. M’c Erikson study: Made AD more entertaining 2. Ad creating which catch attention of people for active search. 3. Leave information of practical value (Domestic appliances ) 4. Make short copySlide 217: Not for circulation : for internal use only 217 FCB grid helps to make advertising planing process based on the consumer - product relationship & develop appropriate promotional strategies. An effective creative options like rational versus emotional appeals are the strategies , creative AD maker can develop using FCB grid. High envelopment & Thinking Consumer is Informative thinker , Search for economic value Strategy used : Specific / to the point information demonstration , dissemination . Build high recall . High involvement & feeling . Consumer is driven by psychological ( feel-learn-do) emotional drives. Eg: Fashion & fad products. Strategy used: Emotional arousal , bring Attitude changeSlide 218: Not for circulation : for internal use only 218 Low envelopment & Thinking Consumer is non responsive to market communication Strategy : Inculcate do-learn-feel habit ,Sales Promotion tactics to induce buying habit. Small space ads, More Point of Sales POS materials are used . Frequent reminder Low involvement & feeling . Consumer has strong emotional bonding addition to a brand , product . Unwillingness to change. Eg : Alcohol ( liquor) Tobacco etc. Strategy : Build do-feel-learn habit . Creative strategies like consumer Mentoring , strategic sales promotion etc.Slide 219: Not for circulation : for internal use only 219 Stimulus Generalization : The stimuli similar to a conditioned stimulus will elicit a similar response without prior learning. Umbrella branding ( Family Branding ) Ariel green, Micro shine Super soaker etc Or Godrej No1 soap , Godrej refrigerator etc Product line extension : Lux beauty soap, Lux beauty liquid soap, face wash etc.Slide 220: Not for circulation : for internal use only 220 Post Purchase behavior study of a consumer Why post purchase behavior is important for the consumer? It gives the marketer the feed back on the performance of the product or service offered. Customer expectation versus actual performance of the offer. Causes of dissatisfaction. Marketing initiatives to build customer delight.Slide 221: Not for circulation : for internal use only 221 Decision phases of customer. 1. Pre purchase Phase : Problem recognition, Information search. Evaluation of alternatives. 2. Purchase Phase Situational influences. Experience upon consumption 3 Post purchase phase After sales support & service. Recurring cost. Protection against product obsolesce ( Loyalty programs )Slide 222: Not for circulation : for internal use only 222 Degree of customer satisfaction. The satisfaction of customer depends on the degree of gap between his expectation & performance. If the difference between the expectation & actual performance is high dissatisfaction level is high If the difference between the expectation & actual performance is nil , then the satisfaction level is high. If the actual performance of the product or service far exceeds the expectation, then it takes the form of customer delight or customer excellence. Expectation by The customer Performance by the product Dissatisfaction Expectation by The customer Performance by the product Satisfaction Product performance > Customer expectation Customer delightSlide 223: Not for circulation : for internal use only 223 What are the consequences of dissatisfaction ? Discontinued purchase ( No repeat buying ) Negative word of Mouth Litigation in the consumer court Brand image of gets tarnished. Cease of Loyalty Premature death of the brandSlide 224: Not for circulation : for internal use only 224 Cognitive personality : There are 2 types of cognitive personalites. Visualizer : Prefer to buy on the basis of visually attractive information . They retain visual memories. Minute details are of less relevance. Verbalizer : Attracted to written or verbal information, they prefer detailed information & keep the factual details & recall while decision making.Slide 225: Not for circulation : for internal use only 225 Type theory Psychological theory shows that differences in consumer result due to different type they belong to . 1. Where they prefer to focus their attention. ( Extraversion, Introversion) 2. The way they prefer to take the information (Sensing or intuition ) 3. The way they prefer to make decisions (Thinking or feeling ) 4. How they orient themselves to the external world .Do they use the judging process or perceiving process. (Judging or perceiving )Slide 226: Not for circulation : for internal use only 226 Characteristics : extraversions. Prefer communicate by talking Breath of interests Tend to speak first , reflect later Take initiative in work & relationship Learn best through doing or discussion . Introversion. Drawn to their inner world. Learn best by reflection , mental practice . Prefer communicate by writing Depth of interest Private & containedSlide 227: Not for circulation : for internal use only 227 Sensing . Focus on what is real & actual Value practical application Observe & remember ,Present oriented Want information step by step Trust & experience Intuition Focus on big picture , possibilities Value imaginative insight Abstract & creative ,See pattern & meaning in facts . Future oriented ,Trust inspirationSlide 228: Not for circulation : for internal use only 228 Thinking . Analytical , logical problem solver Use cause & effect reasoning Tough minded ,Reasonable Fair Feeling Sympathetic ,Assess impact on people Guided by personal values , Tender hearted Strive for harmony & individual validation Compassionate , AcceptingSlide 229: Not for circulation : for internal use only 229 Judging . Scheduled , Organized , Systematic , methodical Plan , Like closure –to have things decided Avoid last minute stress . Perceiving Spontaneous, Open ended , Casual, Flexible, Adapt Like things loose & open to change Feel energized by last minute pressure.Slide 230: Not for circulation : for internal use only 230 Consumer type is decided based on these factors. The types are : ISTJ Introverted sensing with extraverted thinking ISFJ Introverted sensing with extraverted feeling ESTP Extraverted sensing with introverted thinking ESFP extraverted sensing with introverted feeling INTJ Introverted intuition with extraverted thinking INFJ Introverted intuition with extraverted feeling ENTP Extraverted intuition with introverted thinking ENFP Extraverted intuition with introverted feeling ISTP Introverted thinking with extraverted sensing INTP Introverted thinking with extraverted intuition ESTJ Extraverted thinking with introverted sensing ENTJ Extraverted thinking with introverted intuition ISFP Introverted feeling with extraverted sensing INFP Introverted feeling with extraverted intuition. ESFJ Extraverted feeling with introverted sensing ENFJ extraverted feeling with introverted intuitionSlide 231: Not for circulation : for internal use only 231 Type theory Psychological theory shows that differences in consumer result due to different type they belong to . 1. Where they prefer to focus their attention. ( Extraversion, Introversion) 2. The way they prefer to take the information (Sensing or intuition ) 3. The way they prefer to make decisions (Thinking or feeling ) 4. How they orient themselves to the external world .Do they use the judging process or perceiving process. (Judging or perceiving )Slide 232: Not for circulation : for internal use only 232 1. ISTJ : Serious , quiet, practical, orderly , logical , make up their mind , as what they want to do , regardless of the external message . 2. ISFJ Loyal , considerable , concerned with how others feel Emotion oriented. 3. INFJ Highly principle oriented.Driven by their vision . 4. INTJ Driven their by their own ideas. Skeptical , critical & independent 5. ISTP Cool onlooker , detached curiosity , interested in cause & effect , logical principles . Drive to the core of the problem before taking decision. 6. INFP Quite observer. Balance between outer life & inner values. 7. ISFP Retiring , sensitive & emotional, not planing for long term .Slide 233: Not for circulation : for internal use only 233 8. INTP :Logical & analytical Have a very clearly defined preferences Not willing to change easily. 9. ESTP Spot decision makers . Enjoys as it comes in the way. Not long term planers or thinker. 10. ESFP : Practical & situational decision makers 11.ENFP Warm , imaginative , takes decision which interest them. Finds reason for that ever they want. 12. ENTP Quick & alert . Develop logical reasons for what they want to buy 13. ESTJ : Realistic fact driven , rational approach. 14. ESFJ : warm hearted, emotional .driven by life style status. 15. ENFJ Responsive, sympathetic , regard for other’s feeling, Emotional driven decision. 16. ENTJ Frank , Out spoken, rational , straight forward. Application & value oriented.Slide 234: Not for circulation : for internal use only 234 Consumer segment & type is decided using a structured focused questionnaire, The questionnaire is based on : 1 Product related / non related attributes features functions . 2. Functional experiential & symbolic benefits 3. Psycho factors . Where they prefer to focus their attention. The way they prefer to take the information The way they prefer to make decisions How they orient themselves to the external world . The information is collected for a large sample differently on the above three categories & analyzed together.Slide 235: Not for circulation : for internal use only 235 Characteristics : extraversions. Prefer communicate by talking Breath of interests Tend to speak first , reflect later Take initiative in work & relationship Learn best through doing or discussion . Introversion. Drawn to their inner world. Learn best by reflection , mental practice . Prefer communicate by writing Depth of interest Private & containedSlide 236: Not for circulation : for internal use only 236 Sensing . Focus on what is real & actual Value practical application Observe & remember ,Present oriented Want information step by step Trust & experience Intuition Focus on big picture , possibilities Value imaginative insight Abstract & creative ,See pattern & meaning in facts . Future oriented ,Trust inspirationSlide 237: Not for circulation : for internal use only 237 Thinking . Analytical , logical problem solver Use cause & effect reasoning Tough minded ,Reasonable Fair Feeling Sympathetic ,Assess impact on people Guided by personal values , Tender hearted Strive for harmony & individual validation Compassionate , AcceptingSlide 238: Not for circulation : for internal use only 238 Judging . Scheduled , Organized , Systematic , methodical Plan , Like closure –to have things decided Avoid last minute stress . Perceiving Spontaneous, Open ended , Casual, Flexible, Adapt Like things loose & open to change Feel energized by last minute pressure.Slide 239: Not for circulation : for internal use only 239 Consumer type is decided based on these factors. The types are : ISTJ Introverted sensing with extraverted thinking ISFJ Introverted sensing with extraverted feeling ESTP Extraverted sensing with introverted thinking ESFP extraverted sensing with introverted feeling INTJ Introverted intuition with extraverted thinking INFJ Introverted intuition with extraverted feeling ENTP Extraverted intuition with introverted thinking ENFP Extraverted intuition with introverted feeling ISTP Introverted thinking with extraverted sensing INTP Introverted thinking with extraverted intuition ESTJ Extraverted thinking with introverted sensing ENTJ Extraverted thinking with introverted intuition ISFP Introverted feeling with extraverted sensing INFP Introverted feeling with extraverted intuition. ESFJ Extraverted feeling with introverted sensing ENFJ extraverted feeling with introverted intuitionSlide 240: Not for circulation : for internal use only 240 1. ISTJ : Serious , quiet, practical, orderly , logical , make up their mind , as what they want to do , regardless of the external message . 2. ISFJ Loyal , considerable , concerned with how others feel Emotion oriented. 3. INFJ Highly principle oriented.Driven by their vision . 4. INTJ Driven their by their own ideas. Skeptical , critical & independent 5. ISTP Cool onlooker , detached curiosity , interested in cause & effect , logical principles . Drive to the core of the problem before taking decision. 6. INFP Quite observer. Balance between outer life & inner values. 7. ISFP Retiring , sensitive & emotional, not planing for long term .Slide 241: The Power of Reference Groups Sadly, people will often do things in groups that they'd never do alone, think about lynching Types of Power 1 Referent 2 Information 3 Legitimate 4 Expert 5 Reward 6 CoerciveSlide 242: Power of Reference Group WOM Conformity Opinion Leaders Market Maven Surrogate Customer Socio metric Methods Diffusion of InnovationSlide 243: Q1: Discuss the intimate relationship in marketing between brand communication strategy, IMC & Consumer behavior study. Q2.Discuss the implication of Classical conditioning in shaping the behavior of market with an appropriate example. As central , state government bodies and NGO’s started giving importance to public health care system , an entrepreneur saw an opportunity to market high performance AIR PURIFICATION product. A product which would keep public urinals ,wash rooms in hospitals, hotels ,commercial places , Morgues , Cold storage warehouse , Corporation market like fish , poultry , Meat etc odor free & kill germs and bacteria causing harm to health of public. The product had indirect competition from exhaust fans , phenyl , aerosol cans & other air fresher used to overcome the issue.Slide 244: The basic idea of the product originated from the fact that mass community give little attention to maintain hygiene & wellness of their surrounding and lack of in-sufficient use of water in public toilets , poor hygiene practices, poor maintenance of public health care system , poor plumbing methods , offensive odor ,bacterial growth, low cost solution to prevent stench etc. To address the above need , electrically operated air purification lamps was conceptualized .The product helped to kill all volatile organic compounds which causes stench & micro organism such as bacteria, virus, protozoa etc. However the market’s willingness to accept the product concept will depend on an effective communication strategy which would motivate the segment.Slide 245: Using hofstede Model create a framework for market communication . Identify the behavioral barrier marketer need to overcome to make the communication effective. Suggest an appropriate IMC strategies. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.