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CHAPTER 3

CONSUMER BEHAVIOUR

 

3.1 Consumer Behaviour

3.2 The Consumer Decision – making process

3.3 Family Decision Making – The Role of New (Upwardly-mobile) Urban

Family (NUF)

3.4 Buying Motives

3.5 Reasoning of Buying Process

3.6 Levels of consumer decisions

3.7 Determinants of Consumer Behaviour

3.8 Different Models Of Consumer Behaviour

3.9 Consumer Behavior for Cement

 

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CHAPTER 3

CONSUMER BEHAVIOUR

3.1 CONSUMER BEHAVIOUR - Defination

Consumer behaviour can be defined as the decision-making process

and physical activity involved in acquiring, evaluating, using and disposing of

goods and services. This definition clearly brings out that it is not just the

buying of goods/services that receives attention in consumer behaviour but,

the process starts much before the goods have been acquired or bought. A

process of buying starts in the minds of the consumer, which leads to the

finding of alternatives between products that can be acquired with their

relative advantages and disadvantages. This leads to internal and external

research. Then follows a process of decision-making for purchase and using

the goods, and then the post purchase behaviour which is also very important,

because it gives a clue to the marketers whether his product has been a

success or not.

To understand the likes and dislikes of the consumer, extensive consumer

research studies are being conducted. These researches try to find out:

What the consumer thinks of the company’s products and those of its

competitors?

How can the product be improved in their opinion?

How the customers use the product?

What is the customer’s attitude towards the product and its

advertising?

What is the role of the customer in his family?

Consumer behaviour is a complex, dynamic, multidimensional process,

and all marketing decisions are based on assumptions about consumer

behaviour. Marketing strategy is the game plan which the firms must adhere

to, in order to outdo the competitor or the plans to achieve the desired

objective. In formulating the marketing strategy, to sell the product effectively,

cost-benefit analysis must be undertaken.

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There can be many benefits of a product, for example, for owning a

motor bike one can be looking for ease of transportation, status, pleasure,

comfort and feeling of ownership. The cost is the amount of money paid for

the bike, the cost of maintenance, gasoline, parking, risk of injury in case of

an accident, pollution and frustration such as traffic jams. The difference

between this total benefit and total cost constitutes the customer value. The

idea is to provide superior customer value and this requires the formulation of

a marketing strategy. The entire process consists of market analysis, which

leads to target market selection, and then to the formulation of strategy by

juggling the product, price, promotion and distribution, so that a total product

(a set of entire characteristics) is offered. The total product creates an image

in the mind of the consumer, who undergoes a decision process

3.2 The Consumer Decision – making process

Every purchase made by the consumer is in response to a problem.

Once he recognizes his need, he wants to ascertain how best to satisfy it. The

complexity of the consumer’s decision-making process greatly depends on

the extent of his involvement with the product of service in question – the

greater the degree of involvement; the more complex is the decision-making

process. A consumer’s involvement is highest when the products are related

to an individual’s ego or self-image, or when they involve some risk to the

consumer – financial, social or psychological. In such cases, consumers are

prepared to spend more time and energy over considering various alternative

products carefully before making the final decision. On the other hand, low-

involvement purchases are those to which consumers do not attach much

importance. In such cases, the time and energy spend by the consumer in

arriving at a final decision are minimal.

Now, if consumers have to shift from buying their usual brand of

detergent (for which decision making is easy and problem-solving is a routine

affair) to a new brand in response to some promotional offer and they spend

some time and effort before they make their choice, they engage themselves

in limited problem-solving. The decision-making process becomes

66  

increasingly complex when they have to buy a sophisticated product such as

a car or a house involving a high degree of risk.

It needs to be emphasized that the formulation of an appropriate

marketing plan and strategy necessitates a thorough understanding of the

consumer’s decision-making process. Moreover, one has to also keep in mind

the fact that there are at least five major activities in which the buyer is

actively involved in while making a purchase decision.

These are :

Problem Recognition

Pre Purchase Activity-Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchse Decision

3.2.1 Problem Recognition or Felt Need

A typical consumer has several needs to satisfy, all of which compete

for the limited money at his disposal. Prior to making any purchase, he

experiences a drive or motivation towards buying a certain product resulting

from the desire to satisfy a specific need. It is for the consumer to decide the

order of priorities in which his needs are to be satisfied. The nature of the

need determines the goal, which could be relief from pain, the pleasure of

dining out, or getting a present for a loved one, etc. Marketers need to base

their strategies on identifying consumer needs and accordingly, offer products

or service which can fill those needs. Advertising, promotion, sales campaigns

and other marketing communication tools play a significant role in influencing

consumers at this stage.

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3.2.2 Pre-purchase Activity

Once a goal to satisfy a specific need is chosen, the consumer

engages himself in pre-purchase activity. This includes search for information

about the goal/object and evaluation of various options before the actual

decision is made. The extent to which information is collected depends on the

prior knowledge, attitude, experience motivation and involvement of the

individual consumer in respect of the products in question and also the market

characteristics, viz., the number of options available, price range, etc. Further,

situation variables like time constraints, perceived risk, financial limitations,

etc. also play a role at this stage of the evaluation process.

Figure 2 Purchase Involvement and Types of Decision Making

The amount of time for pre-purchase activity also depends on his/her

level of involvement in the purchase decision. For products which are priced

low and are articles of daily consumption where a number of substitute

products are available, there is low involvement and choice is made relatively

rapidly with less efforts. On the other hand, in case of high-involvement

situations such as purchasing TV sets or expensive consumer durable items

or cars, the time taken to decide will be lengthy and the level of involvement

will be high. In low purchase involvement item companies create awareness

about the products through advertisement and point-of-purchase displays,

whereas in case of high-involvement items, advertising goes further and tries

to influence the consumer with persuasive message against competitor’s

products.

3.2.3 Evaluation of Alternative Solutions

The evaluation process involves a consideration of product utility and

attributes, features, price-quality equation and brand images. The number of

Low Purchase Involvement         High Purchase Involvement 

 

 

Routine Decision Making              Limited Decision Making      Extended Decision Making (eg., soft drinks, bread, milk)      (eg. Clothing, shoes)       (eg. High priced goods, homes, 

Motor bikes, cars, etc ) 

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criteria considered varies with the product, as does the importance of each

criterion. And the process of evaluation ends when the consumer finally

selects the product to buy.

3.2.4 Purchase decision

The activity preceding the decision to purchase a product finally leads

the consumer to making the buying decision. However the decision may also

be influenced by people other than the consumer himself, like the initiator or

the influencer, who either suggested the product or implicitly or explicitly

influenced its purchase in some way. Moreover, the user also might be

distinct from the buyer so that the decision-making unit consists of the

initiator, influencer, buyer/decision maker and user.

3.2.5 Post Purchase Decision

This refers to the degree of satisfaction or dissatisfaction experienced

by the consumer after using the product. This category of purchase process

says that some consumers experience post-purchase dissonance or a

psychological discomfort after making the purchase. When the purchase

made is important, difficult or irrevocable, such as buying a car or a house,

when dissonance is likely to occur, manufacturers can help to reduce

consumer’s dissonance by emphasizing the superior qualities of the products

in manuals or packaging or by giving quality assurance.

Knowledge of consumer behaviour is indispensable for making sound

marketing decisions. Study of consumer behaviour involves an understanding

of diverse factors such as demographics, perceptions, attitudes, preferences

and aspirations of consumers. There is no single theory or model which

explains why consumers behave the way they do. The study of consumer

behaviour is complex and multi-dimensional. There are several consumer

behavioural models based on insight drawn from different disciplines including

economics, psychology, sociology and social anthropology. Most important

among them are the Economic Model, Psycho-analytical Model, Learning

Model and Socio-analytical Model. For formulating an appropriate marketing

plan and strategy, one should have clear understanding of consumer

69  

decision-making process. There are at least five major activities in which the

consumer is involved while making a purchase decision. These are problem

recognition, pre-purchase activity, Evaluation of alternatives, purchase

decision and post-purchase decision.

3.3 Family Decision Making – The Role of New (Upwardly-mobile) Urban

Family (NUF)

Marketers in India are increasingly focusing their attention on the NUF

– city bound bundle of wife/mother, husband/ father and son/daughter. With

the breaking up of the joint family system, the new urban family has come into

prominence. Despite the individualism of its members, it is the interactive role

of the members of NUF that matters in taking buying decisions. Family

members play a variety of roles in decision making. ‘The consumption may be

personal, but the choice is not. Every member of the NUF may have his or her

own favorite breakfast cereal, but the choice must be ratified by the rest.’

Whether it is Maggi soup, Asian Paints, Surf Excel detergent, LG or Samsung

TVs, Hamam soaps or Digjam suitings, advertisers increasingly focus on the

family.

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Table-4

The Nuclear Urban Family and Consumer Products

Perso- nal

Produ- cts

Family

Toiletries

House-

hold

Durables

Family Auto-

mobiles Consumables

Financial

Products Vacations

Educational

Products

Father

Passive

User

Passive

User

Decider,

Buyer

Decider,

User Passive Unser

Decider,

Initiator Initiator

Decider

Buyer

Decider/’

Buyer

User /

Initiator /

Gate

keeper

User

Co-Decider /

Initiator /

Influencer

Influencer

Co-Decider

/ Buyer /

Gatekeeper

Influencer Influencer /

Buyer

Mother

Buyer User User Passive User Decider /

Buyer

Passive

User

Decider /

Buyer Influencer

Decider /

Influencer

Influencer/

Decider

Influencer /

Co-Decider Initiator

Influencer /

Co-Decider

Influencer /

Co-Decider

Co-

Decider Co-Decider

Children

Users Influencers Users Users Influencers Influencers Initiators

Influencers/

Co-

Deciders

Buyers Initiators /

Gatekeepers

Co-deciders /

Users

Influencers Co-

Deciders /

Users

Co-

Deciders

Co-Deciders

Source : NUF Gen Marketing, Business Today, February 22, 1999.

3.4 Buying Motives

We purchase goods, due to certain motives. Motives refer to thought,

urge, motion, drive, etc. which make a buyer to react in the form of decision.

Any urge which makes a person to take purchase decision is called as buying

motive. Motive is an inner urge which moves one into action. It is not mere

desire to buy. The term ‘buying motive’ may refer to the feelings, thought,

emotion and instinct which arise in a customer a desire to purchase and

possess something.

The forces that are motivating an individual to buy are broadly

classified into two, namely, external forces and internal forces.

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External Forces. External forces include nationality, religion, education,

occupation, income, social status, area of residence, culture of the society in

which the customer moves.

Internal Forces, Internal forces are those forces which have origin in minds

of the people. These forces may be of physical and psychological nature.

Internal forces which motivate the buying behaviour may be classified into two

groups :

(i) Rational motives, and

(ii) Irrational motives

Rational motives include dependability in quality, durability, happiness,

efficiency in operation and use, economy in use, enhancement of earnings

and productivity of property.

Irrational motives include pride and ambition, security, personal

comfort, security from danger, comfort and obtaining greater leisure,

cleanliness and emotional appetite.

The following are some of the important buying motives :

1. Comfort and Convenience. Comfort and convenience motive is an

important factor in purchasing luxury articles, labour-saving devices

and convenience at work, at home, and in recreation. Human beings

always would like to do things in an easy way and in comfort.

2. Gain and Economy Motive. Some people desire to earn and save

money. Making a profit or saving is a human desire. This desire

induces to purchase goods at lower prices and have monetary gains.

Every consumer desires his money's worth.

3. Compliments. Everybody likes to be complimented. He wants to be

recognised as an important persons' by others. He likes to be in a

higher position where he can command others. To ensure this thing he

may buy certain products.

4. Fashion. Everybody wants to be a fashionable. According to the

change in fashion, the buying motives. also changes. Marketer can

utilise this motive of the consumer very Well and produce goods

accordingly to suit the change in fashion.

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5. Variety. Everybody wants to be admired by others. They like to have an

important place in the society or among friends, etc. So they spend

more money, time and effort on their personal appearances. Hence

variety can be used by the marketer to design their products.

6. Sex and Romance. This motive occurs in both the young and the old.

Sex is a motive in the sale of articles like cosmetics, fancy clothes, etc.

For example, men use cars, etc. to attract women. Hence the sex

motive is a powerful motive which a marketer can make use to achieve

his marketing objective.

3.5 Reasoning of Buying Process

The most basic and important requirement for the marketer is to

understand how consumers make choices. Human choice behaviour theory of

reasoned action which states that- "Generally speaking human beings are

usually quite rational and make systematic use of information available to

them. People consider the implications of their actions before they decide to

engage or not to engage in a given behaviour.

Thus, decision-making is a rational and conscious process in which the

consumer evaluates each of the available alternatives to select the best

amongst them. Each decision you make involves an- elaborate mental

thought process, a degree of active reasoning, though on the surface it may

not always seem to be so. This may be because over a period of time you

have taken certain decisions so many times that they now seem to be made

almost automatically but that is not true at all. Even your daily decision of

buying a loaf of bread involves the element of active reasoning as buying a

new sofa set for your drawing room. However, in the former case, the extent

and intensity of active reasoning may be much less as compared to the later.

In the case of bread, the only decision variables may be which brand,

quantity and retail outlet but in case of buying a sofa set the decision variables

are far more in number. These may be:

ready-made or made to order

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from a furniture shop or to be built at home

type of material for frame : Wood, Steel, Aluminium

type of material for cushion : Cloth, Rexine, Leather

Design: with or without arm-rests, height, depth of seat, seating

capacity, loose or fixed cushion.

Thus, depending on the type of decision being made, the degree and

strength of active reasoning will vary.

There are three factors which influence the degree of active reasoning that

is undertaken by the consumer in his process of decision-making. These are:

i. Involvement,

ii. Affirmative differentiation, and

iii. Time pressure

(i) Involvement: When a product is perceived to be of great personal

importance to the customer, such as personal clothing, or its purchase

involves a great deal of money or risk such as jewellery, car, house, company

shares, the level of involvement in making the decision is likely to be very

high. The consumer is likely to spend a great deal of time before arriving at

the final decision. In contrast, when buying items which do not reflect much on

the consumer’s personality or their purchase involves small amount of money

or the risk associated with them is not high, the degree of involvement of the

consumer is likely to be low. Products such as shoes, polish, toilet soap,

toothpaste, biscuits, etc. would fill in this category.

(ii) Differentiation: When the consumer perceives that the various

alternatives which are available are very different from one another in terms of

their features and benefits offered, he is likely to spend more time in gathering

information about and evaluating these different features. On the other hand,

in case of products which are not very different from one another either in

terms of their features or benefits offered, the consumer is bound to perceive

them as being almost the same and buy the first available product/brand

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which satisfies his minimum expectation. He would not like to spend much

time in evaluating the various alternatives. The various brands of washing

powder available in the market today are an excellent example of low level of

differentiation with the consumer perceiving the different brands to be offering

almost identical benefits. All the brands, such as Nirma, Surf, Ariel, etc. look

similar with identical packing and carry almost the same price tag. Till a few

years -ago, the two-wheel scooter market in India was highly undifferentiated

with Vespa and Lambretta offering almost identical scooter to the consumers

in terms of basic features. But today the same market is highly differentiated.

The consumer has a wide range of brands to choose from such Honda

Activa,Honda aviator,Suzuki Access, Mahindra Duro, etc each offering a

variety of shapes, horse power and many other innovative features to choose

from. A potential consumer of scooter would have to spend considerable time

in evaluating each brand before he is in a position to make his decision.

(iii) Time pressure: When you are under pressure to make a decision

quickly, you cannot afford to spend a long time finding out about the various

products or brands. You would probably buy whatever is readily available.

While travelling in your car to a hill station your car tyre bursts and you need

to buy a new one at that time you would buy the brand that is available at

whatever price without giving it too much thought. But under a different

situation, when you need to buy new tyres, you would certainly like to find the

features of nylon and radial tyres and evaluate various brands, e.g., Modi,

MRF, Dunlop and Apollo, etc. on their individual advantages and

disadvantages.

There is a lot of difference between the purchase of a new car and

toothpaste. Therefore, based on the degree of buyers’ involvement and the

degree of difference among brands, buying behaviour can be classified into

four types:

1. Complex buying behaviour

2. Dissonance reducing buying behaviour,

3. Habitual buying behaviour, and

4. Variety-seeking buying behaviour.

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3.6 Levels of consumer decisions

As a buyer or consumer you are all the time making decisions such as

what product to buy (a book or a shirt as a birthday present for your friend),

which brand (Lux, Fiama Di wills, Cinthol, Pears, Dove, etc toilet soap) from

where (Super Bazar, nearby corner shop, chemist), etc. Table presents

summary of the different levels of purchase-rated decisions most commonly

encountered by consumers. The table highlights the broad range of choices

the consumers have to select from when making a decision, starting from the

generic product category level to the brand level and retail outlet level.

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Table 5

Levels of Purchase-related Consumer Decisions for Personal Transport

Level of Decision

Generic Product

Category Level

Alternative

Two-Wheel or Four-Wheel vehicle

Power Driven

(i) Scooter (i) Car

(ii) Motorcycle (ii) Jeep

(iii) Moped

Brand Level Scooter Car

(i) Activa (i) Maruti SX4

(ii) Duro (ii)Honda City

(iii) Acess (iii) Hundai i10

(iv) Swift

(v) Scorpio

Motorcycle

(i) TVS

(ii) Yamaha

(iii) Suzuki

(iv) Hero

Honda

Two Wheeler

Jeep

(i) Activa (i) Maruti Gypsy

(ii) Access (ii) Mahindra

(iii) Battery Behicle

Retail Level Types of retail Outlet

(i) Company Showroom

(ii) Exclusive brand dealer outlet

(iii) Multi-brand dealer outlet

(iv) Dealer outlet with own servicing facility

(v) Dealer outlet closest to home

(vi) Dealer outlet recommended by friend

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3.7 Determinants of Consumer Behaviour:

Figure 3

3.7.1 PSYCHOLOGICAL BEHAVIOUR

3.7.1.1 Perception

Perception is the process by which people select, organize and interpret

stimuli through the five senses of sight, sound, smell, touch and taste. More

specifically, it is the meaning we attribute to incoming stimuli received through

our senses. No two people perceive a stimulus in exactly the same way as

they do not have the same view of the world. The principles of perception as

revealed by various studies are:

It is selective: Selective perception implies than an identical

advertisement package or product may be perceived differently by two

consumers. Consumers accept messages that are in agreement with

their previously-held beliefs while they reject those which do not

conform to them. Further selective perception also means the

PSYCHOLOGICAL BEHAVIOUR Motivation Perception  Attitude  Learning  Self Image Personality 

 ECONOMICS 

Utility  Value  

Supply Demand  

 SOCIAL  Culture  

Sub Culture  Social Class 

Reference Groups Family  

 Demographic 

Age  Sex  

Region  

Consumer Behaviour 

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consumers are able to attend to only a small portion of stimuli to which

they are exposed. An average person may be exposed to thousands of

messages every day all of which he cannot possibly attend to and most

stimuli will be screened out. This offers challenges to advertisers -

since consumers are being exposed to so many advertising stimuli –

advertisers need to be highly creative to attract consumers’ attention

towards their products and services.

It is well-organized: Perceptual organization means that consumers

give meaning to perception. They group information from various

sources into a meaningful whole to be able to better comprehend it and

act on it. The picture on the television screen, for example, is made up

of thousands of tiny dots, which we need to group together in order to

see the picture as a whole.

It is dependent on stimulus factors: Stimulus factors are certain

characteristics of a physical object such as size, weight or shape and

also include intensity, contrast, frequency, colour and movement.

It is dependent on personal factors: The individual’s past experiences,

motivations and expectations as also his needs, moods, memory,

values and ability to see or hear the message – all govern his

perception.

3.7.1.2 Perception of Colours

Companies spend a great deal of time and money of deciding which

colours are most effective when marketing their product.

Colours have different meanings; for instance, black denotes power

(men in powerful positions usually wear black suits) or it may also mean

sadness. Red usually means energy; pink evokes feminity and softness or

calm while white means purity and truthfulness. Yellow denotes cheer or

79  

brightness. Orange is symbolic of loudness or flashiness while purple signifies

royalty.

Colours grab the attention of consumers. They have emotional and

psychological effects and play a role in determining loyalties. They influence

the brand logo, image, display and the product itself. Further, they make deep

impressions on the minds of consumers and help them to recall the image of

the product quickly. In view of the above, considerable attention is being paid

in the use of colours for marketing products. Lifebuoy for example, has been

using red as its basic colour to symbolize strength as well as purity. Cadbury

uses purple colour to denote happiness and a rich indulgent experience.

Kodak employs yellow colour to evoke a pleasant and cheerful image. Based

on their perception, consumers develop images of products, brands, retail

stores, prices and advertisement, all of which directly influence their purchase

behaviour.

What the consumer wants and buys is a package of symbols

appropriate to his or her self-image. The image of a product includes not only

the picture the consumer conceives of the intrinsic qualities of the product, but

also all the ideas and thoughts he or she has about it – the sort of people who

use it, the kind of stores that sell it, the character of its advertisements, the

‘personality of the firms’ that make it – in other words, the total of all the

stimuli related to the product received by the buyer. All these product

attributes are referred to as ‘Product Image’.

Furthermore, the principles of perception, as set out above, help

marketers to position their brands to meet the needs of their target consumer

groups. Product advertisements and packages are made more attractive and

meaningful to capture attention. An understanding of the perception of

consumers about products and services they buy helps to build a favourable

corporate or store image in the minds of consumers.

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3.7.1.3 Perceived Risk in the Purchasing Process

In purchasing a product like a washing machine or a camera,

consumers are uncertain about the future outcomes of their decisions. Their

perceived risk in doing so is high, especially when they have had either no

previous experience in using the product or have had a bad experience with it,

or have limited financial resources. Few perceived risks can be:

Financial (the purchase of a high-priced product such as a car entails a

greater risk than that of a low-priced one)

Performance-oriented (the product purchased may not work or may not

be safe)

Social (products such as cosmetics, deodorants or clothing may not

work to enhance the attractiveness of the user or may not be

acceptable to one’s colleagues or family members)

Psychological (products bought may not fit in with one’s self image as

in the case of clothing or automobiles)

Physiological (products such as medicines or certain food items may

have side-effects or potential health hazards).

In order to succeed in their efforts, marketers have to understand the risk

perceptions of consumers and develop appropriate strategies to reduce the

perceived risk which the buyer takes while making the purchase.

Thus marketers assume perceived risk and reassure prospective

consumers about the proven quality and reliability of the product or service in

question and ensure its adequate performance over a long period of time.

Some risk-reduction strategies employed by marketers are:

i. Getting endorsements: In an effort to attract customers towards their

products, marketers often obtain endorsements from well-known

personalities for their promotion campaigns. For example, Hyundai got

the endorsement of Shahrukh Khan, the well-known film star, to assure

the consumers about the excellent quality and high performance level

of its Santro car.

ii. Offer of free samples: Some companies resort to the practice of

offering free samples of its new products to consumers to give them an

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opportunity to try these products before making a purchase

commitment for the same.

iii. Use of ISO certification: With a view to assuring customers about the

high quality and reliability of their products, firms obtain and emboss

the ISO certification mark on them, indicating their confirmity to world

quality standards.

iv. Promotion of major brand image: In order to assure customers

against the possibility of any risk involved in using their products,

companies use well-known brands as a product promotion strategy.

For example, for promoting Indica, the brand name of Tata was used

effectively to infuse greater confidence among consumers in the

product and ensure that they do not perceive any risk in using it.

Besides, in order to attract and retain customers, companies provide

the consumers with complete performance information.

v. Money-back guarantee: Sometimes, firms influence consumers to buy

brands by offering money-back guarantee with the product.

3.7.1.4 Attitide:

An attitude is a ‘predisposition’ to act. It comprises ‘person’s enduring

favourable or unfavorable evaluations, emotional feelings or pro or con

tendencies towards an object or an idea’. Often, purchase decisions are

based on prevailing attitudes about the product, store or salesman.

To ensure success of their sales efforts, marketers have to

obtain/evoke a favourable consumer attitude towards their company and its

products. This necessitates designing products to suit the needs and

preferences of consumers and the adoption of an appropriate product-

promotion strategy, which would require a proper understanding of the

existing attitudes of consumers. Marketers need to reinforce favourable

attitudes and also change unfaovourable ones – both of which are legitimate

marketing objectives.

Attitudes develop during one’s lifetime through experiences, group

affiliations, exposure to different media and promotional efforts guide our

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thoughts (cognitive), affect our feelings (affective) and influence our behaviour

(conative).

Figure 4 Three components of Attitude

The above components of attitudes are explained below:

a) The cognitive or informational component of attitude refers to a

person’s knowledge or beliefs about an object. If consumers, for

example, believe that an important characteristic of a refrigerator is its

excellent deforsting system, then there is the likelihood that they

purchase that brand, if and when they decide to buy a refrigerator.

b) The Affective or feeling component is usually associated with products

that appeal to a person’s aesthetic sensibilities, such as perfumes or

clothing. It refers to his overall feelings about an object.

c) The Behavioural component of an attitude relates to any action a

consumer takes on the basis of his or her beliefs and feelings. A

decision to purchase or not to purchase a newly launched shampoo,

use it or recommend it to friends, etc., would reflect the behavioural

component of attitude.

Functions of Attitude

Attitude has different functions; Daniel Katz has proposed four types of

attribute functions (2001), which are discussed below:

The utilitarian function

The value-expressive function

The ego-defensive function

The knowledge function

Behavioural‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Preference or intention to buy or other behavioural responses  

Affective‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Emotions or feelings about an object or attribute  

Cognitive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐knowledge and beliefs about a specific attribute or object  

83  

(i) The utilitarian function: Attitudes serve a utilitarian function in guiding

consumers towards fulfilling their cherished desires, For example, the

theme, ‘Rin washes whitest’ appeals to consumers who value white

clothes (and thus, have a positive attitude towards the product) and

thereby serves to enhance the utility of the brand ‘Rin’.

(ii) The value-expressive function: Attitudes can reflect a consumer’s

self-image and value system, particularly for a high-involvement

product. Advertisers often appeal to the ‘value expressive’ nature of

attitudes, implying that the use of purchase of a certain item will

enhance the consumer’s sense of achievement or independence.

Examples of brands that appeal to consumers with a self-image are,

‘The man cologne’ by Revlon, which suggests that the user is a

confident, warm and assertive male and Honda motorcycle, which is

targeted at the youth, who are outgoing and prefer a powerful bike.

(iii) The ego-defensive function: Many products are purchased to avoid

situations that cause anxiety and fear. These include mouthwashes,

which are often used to prevent bad breath that can lead to social

ostracism. Advertisers capitalize on these fears by demonstrating how

people can gain social acceptance through the use of certain products

like Lifebuoy Gold soap. The advertising compaign for this product

highlights a teenager’s concern about pimples, to which the mother

responds by stating that she could take care of her pimples by using

Lifebuoy Gold soap’. Here, the attitude of the consumer helps to

protect him from being shunned by society.

(iv) The knowledge function: the knowledge function of attitudes refers to

the consumer’s knowledge about the various attributes of the product

he intends to buy, which helps to remove any uncertainty and

confusion. To cite an example, an Asian Paints ad talks of its many

attributes – it highlights the efficiency of the product, talks of the many

colour combinations in which it is available giving the houses which are

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painted with it an attractive look and above all, the inner joy it evokes

and the confidence it exudes among the users.

Marketers can change consumer attitudes by making appropriate

changes in each of the attitude components. For example, to highlight the

cognitive component, they can modify beliefs about the brand’s attributes (by

emphasizing the value of pizza as a real meal), alter the relative importance of

brand attributes (by claiming that Vanish is a powerful stain remover and is

easy to use, unlike other detergents which only whiten clothes), add new

beliefs by pointing out the beneficial features of the new product (such as a

newly-launched bleaching powder that smells of lemons) or change consumer

beliefs about the ideal attributes of the product (by lying emphasis on health,

as in case of olive oil).

It is possible to change existing beliefs about competitors’ products by

projecting a more favourable image of one’s own products (for instance, by

claiming that State Bank of India has more ATM machines than any other

bank). Any attempt to change the affective component might involve preparing

appealing ads that attract consumers towards the company or the product or

increasing the amount of exposure to the product (based on the idea that

familiarity enhances a person’s liking or attraction).

Companies can also change the behavioural component by inducing

people to buy their products for example, by introducing a fee sample test

drive, or a price-reduction scheme, in the hope that increased use of the

product will enhance consumer satisfaction and would thus, instill positive

beliefs and feelings about it. For example, when instant coffee was introduced

by Nestle, free samples of the product were offered to all visitors to certain

fairs and exhibitions. Similarly, when Bru was launched in south India, the

marketing company distributed the product at a heavy discount in all hotels

and restaurants.

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3.7.1.5 Personality and life style

More than demographics, characteristics of personality and lifestyle of

consumers provide a better understanding of consumer behaviour and they

often influence marketers’ advertising and promotion strategies. Life styles of

consumers indicate how they spend their time (activities), their interests in

terms of what they consider important, how conscious they are of their style

and appearance etc. As lifestyle forms an important part of decision making

marketers consider it an important factor in desining their advertising and

promotion strategy.

3.7.2 Socio- Analytical Model

Apart from individual influences, certain environmental factors also

influence consumer behaviour. These broadly consist of social influences,

reference groups, opinion leaders, social class, family roles and other cultural

forces. These are explained below:

3.7.2.1 Social Influences

Thorstein Veblen, though as an orthodox economist, was basically a

social thinker, who was greately influenced by the science of social

anthropology. He saw man as a ‘social animal’- - conforming to the general

forms and norms of his larger culture and to the more specific standards of

the sub-cultures and face-to-face groupings to which his life is bound. His

wants and behaviour are largely moulded by his present group and

aspirational group membership. His hypothesis is that economic consumption

is motivated by our desire to please others. We take cues on how to behave

by observing the actions of those around us. Thus, face-to-face groups,

reference groups, cultures and sub-cultures, and social class greatly influence

consumers’ attitudes and behaviour.

When De Beers wanted to sell their diamonds in India, they faced a

major challenge in changing the attitudes of consumers towards purchase of

diamonds. Majority of Indian consumers were fond of gold jewellery and

ornaments. Gold was traditionally seen as a store of value which could be

turned into cash at any time of emergency. However, their study also revealed

that some upper-end customers considered gold as ‘old fashioned’ and

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regarded diamonds as ‘modern’, ‘young’ and ‘eternal’. The company targeted

the premarital segment with an ad campaign which focused on wedding as

the only and the biggest occasion for ‘a gift from parents to daughter’. Soon,

they found that the post-marital opportunity was huge in terms of the number

of women in the target set. Two options were considered: one to look at the

woman as a self-purchaser and another was the romantic format of the

husband surprising the wife with a diamond gift. Most women said that they

would prefer the later. De Beers launched an ad campaign that featured the

husband gifting a diamond to his wife in a hotel room while the anxious

children check on the progress of the process over the phone.

Simultaneously, the company mounted a special education programme for

jewelers to make them diamond-savy. The result was that diamond sales

started growing manifold, inviting more competition.

3.7.2.2 Face to Face Group

As children, we are associated with a group of our immediate family

through which we fully satisfy our physiological and social needs. As we grow

older, we make friends and become affiliated with more and more groups

such as neighbors, classmates and other peer groups, which enable us to

attain a certain status and perform a role in society. The status of an individual

refers to his ‘relative position in a group’ and his role as ‘the rights and duties

expected by other members of the group from that individual holding a certain

position in the group’. This position influences our consumption activities as

well.

3.7.2.3 Reference Groups

This group may consist of members of a higher social or economic

class, celebrities, sportsmen or any other gathering of individuals, whom the

consumer tries to immitate. It is the group that individual members consider as

a point of reference. They look to it for setting standards of behaviour, goals

and value and also for guidance in purchasing decisions. Reference groups

play a key role in defining individual consumer needs and opinions and exert

a powerful influence on purchasing decisions.

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Like reference groups, opinion leaders also exert an influence on

consumer behaviour. They are usually the first to purchase new products and

are quite knowledgeable about them and their attributes, which explains why

they often act as a source of information for others. For example, if you are

interested in buying a camera, you could contact a friend who is a

photography buff-who is your opinion leader-for his advice on what to buy and

from where. Opinion leaders are often difficult to identify for the marketer, who

has to depend on various promotion and communication strategies to reach

them in order to leverage their influence for promoting sales.

3.7.2.4 Cultures and sub-cultures

Cultural influences also affect consumer behaviour. Culture can be

defined as a set of ‘complex values, ideas, attitudes and other meaningful

symbols created by man to shape human behaviour and the artifacts of that

behaviour as they are transmitted from one generation to the next. “Simply

put, culture is a way of life that is learnt and handed down from generation to

generation. Every culture has a set of norms of rules that dictates what is right

and wrong and what is acceptable and unacceptable. A company’s success in

the market place largely depends upon how it adapts its products and

services to fit in with the values and norms of the culture of the region where it

is based.

Sub cultures take shape when a sub-group based on region, religion or

caste shares common beliefs and experience. India is a vast country known

for its diverse culture and people, and marketers need to take into account the

varying consumer preferences and purchasing behaviour of people living in

different parts of the country, who are profoundly affected by the enormous

cultural, social and economic variations.

3.7.2.5 The Seven Pursuits of Consumer India (Social Class)

On the basis of her analysis of the socio-cultural context in India,

Hamsini Shivkumar identifies the following set of seven pursuits that drive

consumption today.

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The Pursuit of Upward Mobility: Image and lifestyle-consciousness is

a key pursuit.

Expanding Social Network: Middle-class consumers of all ages are

engaged in creating virtuous cycle of fame, influence, power and

money with enabling technology.

The Quest for Lifelong Vitality: Desire to look young and beautiful

and live with vitality even in old age.

Pride in BEING INDIAN: Resurgence of pride in being Indian with

greater interest in past heritage.

Pleasure in the Now: Pleasure in eating out, shopping, travelling and

other forms of hedonism.

Spirituality: Modern middle class seeks new forms of spirituality suited

to the times – Art of Living, Buddhism, Reiki, and Gita. Etc.

Individuality: Importance to greater individualism, independence and

self-actualization.

3.7.2.6 Social Class

Like reference groups and opinion leaders, social class also affects consumer

behaviour. The social class of a person is determined by his occupation,

income, education, family background and dwelling, as described in table 6:

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Table-6

Various Social Classes in India

Social Class Membership

Population

percentage

as per

population

Cencus 2001

Upper –

Upper

Locally prominent families, third or fourth-

generation wealth. Merchants, financiers or

higher professionals, Wealth is inherited.

Indulge in a great amount of travelling

0.45

Lower-upper Newly arrived in upper class, ‘nouveau riche’,

not accepted by upper class. Executive elite,

founders of large businesses, doctors,

lawyers and engineers

0.45

Upper-middle Moderately successfully professionals,

owners of medium sized businesses, middle

management, Status conscious. Child- and

home-centered.

7.2

Lower-middle Non-managerial office workers, small-

business owners and blue-collar families.

Described as ‘striving and respectable’.

Conservative

28.4

Upper-lower Ordinary working class Semi-skilled workers,

Income often as high as the two classes

above. Enjoy life, Live from day-to-day.

44

Lower-lower Unskilled, unemployed and unassimilated

ethnic groups. Fatalistic. Apathetic 19.5

Total 100

Source : Population Cencus 2001.

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Table - 7

The differences in class and their effect on consumption can be

seen in Table

Middle Class Lower Class

1. Points to the future 1. Points to the present and past

2. Has viewpoint embracing a

long expanse of time

2. Lives and thinks in a short

expanse of time

3. Has more urban identification 3. Has more rural identification

4. Stresses rationality 4. Is essentially non-rational

5. Has a well-structured sense of

the universe

5. Has vague and unclear

structuring

6. Has vastly-extended or

unlimited horizons

6. Has horizons sharply – defined

and limited

7. Has greater sense of choice

making

7. Has limited sense of choice-

making

8. Is self-confident, and willing to

take risks

8. Is extremely concerned about

security

9. Immaterial and abstract in

thinking (ideal-minded)

9. Concrete and perceptive in

thinking (material-minded)

10. Sees himself tied to national

happenings

10. World revolves abround family

Source: P. Martineau, ‘The Pattern of Social Classes, in Marketing’s Role

in Scientific Management, ed. R.L. Clewett.

In addition to social class, an individual’s role within the family also

affects consumer behaviour. For instance, the wife is often responsible for

majority of family purchases and makes the final decision with regard to food

and clothing purchases, though the preferences of the husband and children

are given due consideration. The husband is often responsible for purchases

of expensive items like cars and appliances. He usually looks for functional

characteristics, while the wife is more concerned with style and appearance.

The final decision is often a joint one. The children also have a say in making

purchasing decisions – when they are young, they influence the purchase of

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products like toys and chocolates and as they grow older and become mature,

their preferences affect family decisions regarding purchase of items such as

clothes, cars and even homes.

1. To Live Longer: To live longer is a desire of all people. They purchase

products with this motive. For example; certain products like refined oil

which have no cholesterol in it are purchased by people.

2. Curiosity: If any product is newly introduced into the market at the first

instance, people may have curiosity to know about its usage, etc. This

may also be one of the buying motives.

3. Freedom from Fear and Danger. Everybody will do anything to

assure guarantee to his safety. Fear can market almost anything. In

order to get relief from fear and danger; people will buy anything at the

cost of any amount.

4. To Get Love of Others. Consumer is a social animal. So the motive of

affection and attachment for others in greater is case of human beings,

e.g., mother, children, etc. Such attachment forces members to

purchase goods, e.g., mother purchases toys for kids

3.8 DIFFERENT MODELS OF CONSUMER BEHAVIOUR:

3.8.1 Economic Model

The assumption behind the economic model is that man is a rational

buyer and price is the motivating factor, which is determined by forces of

supply and demand. It suggests several useful behavioral hypotheses such

as:

(a) The lower the price of the product, the higher the sales

(b) The higher the promotional expenditure, the higher the sales

(c) The greater the scarcity of the product, the higher its value

(d) The greater the consumption of the product, the higher is its utility and

value

The major limitation of the economic model is that it is based on certain

assumptions namely:

a) Markets are homogeneous, which is not true in the case of many products

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b) Its theory is good; provided all other things remain equal (ceteris paribus)

whereas, in the practical world, other things are not equal as some buyers

may pay a higher price and buy a product because they believe that they get

more value from the same. In this context, it merits mention that in actual

practice, marketers employ several strategies to differentiate their products

from those of their competitors.

Above all, the economic model ignored the basic question of how the

brand preferences of a product are formed.

3.8.2 Psycho analytical Model

Psychology has contributed to the understanding of consumer

behaviour in terms of motives, attitudes, learning, perceptions and lifestyle.

These are explained below:

The conscious level at which the consumer is aware of his needs and

makes these known to others.

The pre-conscious level at which he knows his needs but cannot

explain as to why he acts the way he does

The unconscious level at which he is not aware of his needs or why he

behaves the way he does

Basic motivations are believed to reside in the conscious areas so that

while people can rationalize why they purchase things, they cannot really

know why they do so. For example, a woman may buy a certain dress and

give reasons for buying it such as her liking for its design, colour or attractive

features making it appropriate for party wear (a rational explanation), but the

real reason for her buying it – about which she is not fully aware – was

because her neighbor had bought it (pre-conscious reason)

3.8.2.1 Motivation and Needs

Basically, an individual’s motivation to buy a product or products is

based on the intensity of his need for the same. Thus, even though water is

virtually cost-free, millions of consumers pay a heavy price to purchase

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bottled water. What motivates people to buy water? The possible motives for

buying bottled water could be health concerns or it could also be snob appeal.

A person’s motivation for doing something is the reason for his

behaving in a certain way. Motives are inner states that direct us towards the

goal of satisfying a felt need’. Thus, a person feels the need for or wants

something which he considers to be useful; to be more explicit, a person’s

need for a thing should be sufficiently strong to induce him to act to fulfill it. In

effect, in such cases, the need becomes a motive to take action to satisfy the

need in question. To take a simplistic example, a man who is extremely

hungry (motive) will be motivated to get food and satiate his hunger.

Another way to look at the influence of needs on the behaviour of an

individual as a consumer is with reference to hierarchy of motives developed

by Abraham Maslow, the famous American psychologist. Maslow divides

needs into five categories.

1. Psychological

2. Safety

3. Belongingness\love

4. Esteem

5. Self-actuallization

According to him, any one of these needs must be partially satisfied

before moving to the next stage. For example, a person who feels hungry – a

psychological need – will to satisfy it by consuming food, before taking steps

to fulfil the next in the hierarchy of needs, i.e., safety, which could involve

buying a life insurance policy. This would be followed by appropriate actions

towards fulfilling the needs of (i) belongingness and love, which could entail

joining a social club and (ii) self-esteem and self-actualization, which could be

reflected in taking to pursuits such a painting or sketching or achieving

success in one’s job by working harder and more efficiently. The assumption

under this model is that once a need is satisfied, it is no longer a basis for

motivating anyone to act and fulfil the same.

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Figure 5

Marketers can motivate people to fulfil their diverse needs given in

Maslow’s hierarchy of needs by initiating appropriate promotion strategies.

For example, they can induce people to meet their (i) physiological needs by

issuing advertisements for personal grooming products focusing on sexual

appeal, (ii) safely needs by releasing meassages for promoting insurance

policies, preventive medicine or retirement investments, and (iii) need for a

sense of belonging by showing how group acceptance can result from

wearing certain types of clothes. Further, a person’s need for (iv) esteem and

(v) self-actualization can be met by linking certain products such as credit

cards, clothes, washing machines, cars, etc. to success in business and

explaining how a sense of self-fulfillment can be realized through travel,

education and by taking to cultural pursuits.

According to Maslow, people first try to satisfy their need for

belongingness and esteem before moving to the fifth level and most

advertising appeals are directed at fulfilling the former needs.

3.8.3 CUE- DRIVE – RESPONSE – REINFORCEMENT

Human behaivour, and in particular consumer behaviour, can be

explained with reference to the stimulus response model. At the outset, it

SELF ACTUALIZATION Settlement 

ESTEEM 

(Status, Superionity, Pride, Self Respect) 

LOVE & BELONGING 

(Love, Friendship, Companionship)

SAFETY 

(Security & Freedom) 

PHYSIOLOGICAL 

(Food, Water, Sleep) 

PRODUCT Writing, Painting, Music, Sports

Luxury Products, Designer Clothing, Furniture, Cars

Gifts Personal Grooming, Entertainment, Club Membership

Insurance, Safety Belts, Helmets, Locks

Basic Foods, Clothing, Clean Water, Medicine

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needs to be understood that the learning process, which affects peoples’

perceptions and attitudes, conditions a large component of human behaviour.

The learning model has its origin in the experiments of the Russian

psychologist, Pavlov, who rang a bell every time he fed a dog. He was soon

able to induce the dog to salivate by ringing the bell even when the food was

not served. This led Pavlov to conclude that learning was largely an

associative process and that a large component of behaviour was influenced

in this way.

The results of subsequent experiments in this area have been

integrated into a stimulus-response model of human behaviour. The model

has been refined over the years, and is presently based on four central

concepts, viz., ‘cue’, ‘drive’, ‘response’ and ‘reinforcement’.

Cue: Cue refers to stimuli in the environment and or in the individual

which determines when, where and how the subject responds.

Drive: Drives are strong stimuli internal to the individual which impel

action. A distinction can be drawn between primary physiological drives

such as hunger, thirst, cold, pain, etc., and learned drives which are

derived socially such as fear, cooperation and acquisitiveness. A driver

is often the result of a ‘cue’. For instance, an ad showing a bottle of

Coca-Cola immersed in ice can serve as a cue which can stimulate the

thirst drive in an individual.

Response: A response is the organism’s reaction to the configuration

of cues. It is an effort to satisfy a need dependent on cues, (e.g., the

Coca-Cola ad) and past experiences. A configuration of cues, however,

will not necessarily produce the same response in every individual. For

instance, in the case of the Coca-Cola ad mentioned above, the same

cue may result in two different responses from two housewives.

Reinforcement: Reinforcement refers to the response followed by

satisfaction derived from using the product. If the experience is

rewarding, a particular response is reinforced, i.e., the individual will

tend to purchase the same brand each time. Reinforcement

strengthens the drive/cue relationship by developing it into a habit. To

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take another example, if someone has an old car that is dull in

appearance and decides to give it a new look; he buys car polish and

polishes his car with it. The car then looks as good as a brand new

one. Here the drive was to improve the look of the car, the response

was to buy car polish and polish it, and the reinforcement was that it

looked as good as new. The person owning the car now probably has a

positive attitude towards the car polish. Had he had a negative

experience with the polish, he would have developed a negative

attitude towards it.

The marking implications of the model are:

Consumers learn from experience what they like and what they do not

like. They tend to repeat purchases that satisfy them and discontinue

those that do not.

Over time, consumers tend to repeat purchases that give them

satisfaction and this eventually becomes a habit. Marketers of new,

competing products often find it difficult to change such habits.

The stimulus-response (learning) model with reinforcement as an

essential element is often applied in advertising products and services.

The same stimulus is repeated to strengthen the response pattern from

the consumers. The message is constantly repeated to firmly reinforce

the given purchasing response.

Knowledge of the learning model helps the marketers to structure their

advertising and communications strategy in a way that will (i)assist the

consumers in learning relevant facts, and (ii) generate positive feelings

about their products, influence their behaviour and induce them to buy

the same. For example, let us consider a company which plans to

launch a new brand in a highly competitive market with the objective of

wiping out existing brands and forming new buying habits among

consumers in favour of its brand. Experience shows that instead of

merely advertising the new brand, the company may have to

supplement its ad efforts with other promotional initiatives like offering

free samples. This would help the consumer to compare the present

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product with the new brand and learn something about the later’s

superior features, and, if the experience proves to be rewarding, induce

him to switch over to the new brand.

3.8.4 Theory of self – concept

Figure 6

In psychology, behaviour of consumers can also be explained in terms of the

theory of self-concept, according to which an individual is both a physical and

a mental entity and views himself as a multi-faceted personality, combining in

him the attributes of a good worker, an avid sportsman, etc. His actions and

purchase decisions are dependent upon his mental concept of himself. The

self has four images: the ideal self, looking-glass self, self-image and

apparent self.

The image of the ideal self is that of the model person one aspires to

be and choose products that would fulfil the needs of such a person. For

example, a person who would like to consider himself a sportsperson might

join a golf club. A looking-glass self is one’s perception of how others view

him. For example, if a person thinks that others see in him a successful

businessman, he may buy a luxurious car to fit in with that image. Then there

are the images of apparent self and the real self, of which the former is how

other people see us and the latter-which is a composite of all the self-

concepts – of how we are seen objectively by others. But the basic

characteristic of self-concept is that it is essentially a subjective notion, which

is disorted by self-image. Possibly affecting consumption patterns and the

image of looking-glass self which is different from self-image because a

person may choose to project a different image to others. To cite an example,

 

Self  Image 

 

Apparent Self  

 

Looking Glass Self 

 

Ideal  Self 

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a person may see himself or herself as a member of the upper-class even

though he or she really belongs to the middle-class, and accordingly, would

buy clothes to fit the self-image of upper-class.

People with a certain self-image or images of themselves:

Tend to buy products that fit their various self-images and avoid those

that do not do so

Purchase a product when it adds to or reinforces the positive way one

is thinking about oneself.

Buy products not merely for what they can do but also for their

symbolic value and meaning, e.g., a necktie is not simply an article of

clothing; it is also a symbol of affluence or social status. Likewise, Nike

athletic shoes or Good hatchback are not simply products but also

status symbols.

3.9 Consumer Behavior for Cement

Consumers consider slightly different element while selecting brand of

cement. Their behavior towards selection of cement is different as cement is

not considered an everyday consumption commodity. Normally it is

considered as one time purchase commodity throughout life, for Individual

house builders. Therefore these consumers have an element of emotion

attached while purchasing the cement. So, in order to influence buying

decision some cement companies come up with emotional advertisement

which forms a very important part of buying decision among consumers.

Apart from this, basic features which consumers are looking for, while

buying cemenet are strength, setting time, and durability. As the actual

consumers do not possess more knowledge about the quality of product they

rely on opinions from external sources. Thus influencers like contractors,

masons, dealers, retailers etc form a very impotant part of decision making

process for the consumers.