Factors affecting consumer behaviour bba mba.pptx

Factors affecting consumer behaviour
- economical, psychological, personal, social, cultural

1. UNIT - II Compiled by Henna P. 1

2. Unit II : Factors influencing Consumer Behaviour Internal Influences– Psychological and Personal factors External Influences – Economical, Social and Cultural Factors Compiled by Henna P. 2

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4. - Motivation - Perception - Learning and Experiences - Attitudes and Beliefs Compiled by Henna P. 4 (A) PSYCHOLOGICAL FACTORS

5. (A) Psychological Factors Internal factors influencing consumer behavior are the personal and psychological factors that affect how individuals make decisions when buying products or services. These factors are inherent to the consumer and can vary from person to person. MOTIVATION : Motivation to do something often influences the buying behaviour of the person. Individuals have different needs such as social needs, basic needs, security needs, esteem needs, and self-actualization needs. Out of all these, the basic needs and security needs take a position above all other needs, and these motivate a consumer to buy products and services. Compiled by Henna P. 5

6. (A) Psychological Factors Consumers buy personal care and grooming products (e.g., cosmetics, mouthwash, shaving cream), as well as most clothes, in order to satisfy social needs. Park Avenue offers 7 in 1 Grooming Kit for men – A good combo pack of grooming kit at a single place itself, it covers almost everything you need for your grooming needs It is .. Woodland advertisements targets adventure lovers by featuring their durable, comfortable footwear designed for various terrains and weather conditions, emphasizing exploration, outdoor living, and a connection to nature. Compiled by Henna P. 6 ( i ) MOTIVATION :

7. (A) Psychological Factors Examples of how companies in India design and offer products or services based on the motivation factor to target consumers: Fitness Wearables : Companies like Fitbit and Mi offer fitness wearables and smartwatches that track users' physical activity, heart rate, and sleep patterns. These devices cater to consumers motivated to lead healthier lifestyles by providing data and insights to support their fitness goals. Health Insurance Policies : Insurance companies like ICICI Lombard and HDFC Ergo offer specialized health insurance plans that cater to consumers motivated to secure their family's well-being. These policies provide coverage for medical expenses, surgeries, and critical illnesses, aligning with the motivation to prioritize health and financial security. Digital Payment Apps : Companies like Paytm and PhonePe offer digital payment and money transfer services, appealing to consumers motivated by the convenience -to-use platforms for making payments, including utility bills, online shopping, and peer-to-peer transfers. Compiled by Henna P. 7 ( i ) MOTIVATION :

8. (A) Psychological Factors E-Learning Platforms: Edtech platforms such as Vedantu and Toppr offer online tutoring and exam preparation courses. They cater to students and parents motivated by academic success, providing interactive and personalized learning experiences to help students achieve their educational goals. Sustainable Fashion Brands : Companies like FabIndia and B-Label design and market clothing and accessories made from sustainable materials. They cater to consumers motivated by environmental consciousness and ethical consumption, offering eco-friendly fashion options that align with these values. These examples illustrate how Indian companies strategically design and offer products or services that align with consumers' motivation factors, such as health, education, sustainability, and convenience. By addressing these motivational needs, businesses can better connect with their target audiences and meet their specific desires and goals. Compiled by Henna P. 8 ( i ) MOTIVATION :

9. (A) Psychological Factors (ii) PERCEPTION : Our perception is shaped when we gather information regarding a product and examine it to generate a relevant image regarding a certain product. Whenever we see an advertisement, review, feedback, or promotion regarding a product, we form an image of that item. As a result, our perception plays an integral role in shaping our purchasing decisions. Luxury Car Brands : Luxury car manufacturers like Mercedes-Benz and Audi emphasize their vehicles' perception of sophistication, performance, and prestige. These brands cater to consumers who associate luxury cars with social status and affluence. Compiled by Henna P. 9

10. Compiled by Henna P. 10 (A) Psychological Factors (ii) PERCEPTION :

11. The car ad reflects Porsche’s understanding of their customers’ needs. People buy cars because they need personal transportation, but the types of cars they purchase reflect their psychological and sociological characteristics and lifestyles, including financial resources. The tagline in the Porsche Boxster ad states that, “unfulfilled dreams cost a lot more,” and urges buyers to “ fulfill their dreams rather than deny them.” Recognizing that many daydream about buying the top-of-the-line and exceptionally engineered Porsche but might feel conflicted because of its high price, the ad states that, “It is expensive to fulfil one’s dreams, but it is worth the expense.” The ad also reinforces the decisions of consumers who had purchased the car: “Of all the emotions you can expect while driving a Boxster, regret will never be one of them,” and ends with Porsche’s classic tagline: “Porsche. There is no substitute.” While Porsche appeals to fulfilling a dream, an advertising campaign for the Scion’s sporty car – which also appeals to young adults – features such slogans as Stand with Us by Standing Out, Make an Impression by Breaking the Mold, and Be an Icon Not an Imitation. Compiled by Henna P. 11 (A) Psychological Factors (ii) PERCEPTION :

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13. An image shows an update of the package of Heinz Tomato Ketchup. Because today’s consumers want healthier foods, Heinz substituted the little green pickle, which has appeared on the ketchup label for decades, with a tomato on a vine. It also enlarged the word tomato, while leaving the size of the word ketchup unchanged. In addition, Heinz redesigned the small packets of ketchup commonly available at fast-food outlets. The company modernized its packages without diluting its identity and consumers instantly recognized the bottle in spite of the label update. Compiled by Henna P. 13 (A) Psychological Factors (ii) PERCEPTION :

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15. (A) Psychological Factors Herbal and Ayurvedic Cosmetics : Companies like Himalaya Herbals and Patanjali leverage the perception of Ayurveda's natural and herbal properties. They offer skincare and cosmetic products that are perceived as being gentle on the skin and free from harmful chemicals, appealing to consumers who prioritize natural ingredients. Premium Smartphone Brands : Smartphone manufacturers like Apple and Samsung design high-end devices with sleek aesthetics and advanced features. These products are perceived as status symbols and indicators of technological sophistication, targeting consumers who value premium experiences. Fine Dining Restaurants : Luxury restaurants such as Bukhara and Indian Accent in India focus on creating a perception of exclusivity and culinary excellence. They offer gourmet dining experiences with impeccable service, targeting consumers looking for special occasions and memorable meals. Compiled by Henna P. 15 (ii) PERCEPTION :

16. (A) Psychological Factors Online Marketplaces : E-commerce platforms like Myntra and Ajio offer curated collections of fashion and lifestyle products. They create a perception of trendiness - forwardness, appealing to consumers who want to stay up-to-date with the latest styles and trends. These examples demonstrate how companies in India strategically design and market their products and services to align with consumers' perceptions. By shaping the way their offerings are perceived, businesses can influence consumer behaviour and attract customers who value the qualities and characteristics associated with their products or services. Compiled by Henna P. 16 (ii) PERCEPTION :

17. (A) Psychological Factors (iii) LEARNING AND EXPERIENCE : When a person buys a product, the general tendency is to learn something more about the product. Learning also comes over a period through experience. This learning depends on skills and knowledge. For example, after visiting stores, consumers know which stores carry the type of clothing they prefer at prices they can afford to pay. When they find a store that carries clothing that meets their needs, they are likely to patronize it to the exclusion of other stores. Every time they purchase a shirt or a sweater there that they really like, their store loyalty is rewarded (reinforced), and they are likely to become repeat customers. Compiled by Henna P. 17

18. (A) Psychological Factors (iii) LEARNING AND EXPERIENCE : Compiled by Henna P. 18 Avocados from Mexico, a brand made up of the Mexican Hass Avocado Importers Association (MHAIA) and The Association of Growers and Packers of Avocados from Mexico (APEAM), works to show people that avocados are healthy, fresh, nutritious, and have good fats without cholesterol. They use fun and repeated ads, including Super Bowl commercials, to make the brand well-known and trusted. By sharing this message in many ways, they stand out from other brands. When people enjoy the product, they are more likely to buy it again. This helps shoppers remember the health benefits of avocados and choose them regularly, building long-term loyalty.

19. Compiled by Henna P. 19 Barbara’s dentist advised her to use toothpaste for gingivitis. Earlier, she bought any brand on sale, but now she needed a special one. After seeing a Crest Pro-Health ad, she chose it despite its higher price. Her gums improved, and praise from her dentist reinforced her choice. This shows cognitive learning – identifying a problem, finding information, trying a solution, and continuing after positive results. (A) Psychological Factors (iii) LEARNING AND EXPERIENCE :

20. (A) Psychological Factors (iv) ATTITUDES & BELIEFS : Consumers’ attitudes and beliefs also influence the buying decision. Based on this attitude, the consumer behaves in a particular way towards a product. This attitude plays a significant role in defining the brand image of a product. Hence, marketers try hard to understand the attitude of a consumer to design their marketing campaigns. Examples of how companies in India design and offer products or services based on the attitudes of consumers to target their audience: Compiled by Henna P. 20

21. (iv) ATTITUDES & BELIEFS : Levi’s offerings will be made from waterless techniques : Levi’s is a well-known jeans brand in India. Indian marketers need to change not only with regard to consumer lifestyle changes but also due to other demands made by societal concerns. Levi’s loyalists are taking the “Wash Less” pledge in an effort to preserve water resources. The stigma associated with the garment is that it uses 3,800 litres of water during its life cycle in its value chain – right from procurement of raw materials to the usage by consumers after they had bought the garment. Their designers challenged themselves to get the same looks we all love, but using less water in the finishing stage. That’s why Levi’s® developed more than 20 innovative techniques that do just that: use less of our world’s precious natural resource. They pledged that by 2020, 80 percent of Levi’s offerings will be made from waterless techniques. However, by 2019, 69% of Levi's® bottoms were made Water<Less. Eco-Friendly Home Cleaning Products : Companies like "Clean India Ventures" offer eco-friendly and sustainable cleaning products. They cater to consumers with a positive attitude towards environmental sustainability, providing products that align with their values. Compiled by Henna P. 21 (A) Psychological Factors

22. Oreo is a world class cookie that was launched in India in 2011 by the makers of Cadbury chocolates (Mondelez International). Oreo is a cream cookie with vanilla flavoured cream in between slightly bitter-tasting cookies. Oreo had a mass premium positioning and was introduced in sachets too. The brand had its associations with Café Coffee Day and McDonald’s in their indulgent offerings (i.e., the concept of perception). The brand’s advertising catch phrase – “Twist, lick, and dunk” – indicated a ritualistic aspect that appealed to the consumers (i.e., the concept of rituals). The cue of indulgence (cues are associated with learning theories) was so effective that a paan shop in Hyderabad created its Oreo based paan. College students had Oreo in the form of cakes, shakes, and pastries that signaled indulgence with respect to taste gratification. Thus, Oreo had created a strong attitude among consumers here; and India was, and still remains, one of its important markets. Compiled by Henna P. 22 (A) Psychological Factors (iv) ATTITUDES & BELIEFS :

23. Compiled by Henna P. 23 (A) Psychological Factors (iv) ATTITUDES & BELIEFS :

24. Compiled by Henna P. 24 (A) Psychological Factors (iv) ATTITUDES & BELIEFS :

25. Compiled by Henna P. 25 (A) Psychological Factors (iv) ATTITUDES & BELIEFS :

26. Compiled by Henna P. 26 (A) Psychological Factors (iv) ATTITUDES & BELIEFS : Campaign Message: “Don’t Call, Just Install.” In 2015, Foodpanda , present in 200 Indian cities with 12,000 restaurants, ran a campaign to promote app-based food ordering over phone orders. The aim was to highlight offline ordering problems and show how apps offer a smoother experience. With smartphones making up 20% of phones but 100 million monthly downloads, Foodpanda sought to build consumer habits and improve brand experience through convenient, reliable mobile ordering. Foodpanda launched a clever TV campaign in 2015 —#DontCallJustInstall— highlighting frustrations of phone orders like misheard messages and delayed deliveries, encouraging users to embrace the smoother, all-app experience. The campaign, conceptualized by Percept India and produced by Housefull Movies, featured fun TV commercials illustrating typical hassles of phone ordering—such as miscommunications and limited choices—and contrasted them with the quick, user-friendly app experience. It ran for six weeks and extended across various channels like radio, mall activations, and corporate programs to reinforce the message. As smartphones boosted online orders—with app orders becoming larger and more frequent—the brand built trust, heightened awareness, and improved its customer experience across India.

27. Compiled by Henna P. 27 (A) Psychological Factors (iv) ATTITUDES & BELIEFS :

28. (A) PSYCHOLOGICAL FACTORS Vegan Food Brands : Brands like " Goodmylk " offer plant-based and vegan food products, targeting consumers who have a positive attitude towards cruelty-free and ethical food choices. Corporate Social Responsibility (CSR) Initiatives : Companies like Tata Group and Infosys emphasize their CSR initiatives, aligning with consumers who have a positive attitude towards socially responsible businesses. These initiatives include community development, education, and healthcare programs. Health and Wellness Resorts : Resorts like "Ananda in the Himalayas" offer wellness retreats and spa services, targeting consumers with a positive attitude towards holistic health and relaxation. Fair Trade Brands : Brands like " Fabindia " and "Tribes India" support fair trade practices and sell products made by artisans and marginalized communities. They target consumers who value social justice and ethical trading. Animal-Friendly Brands: Brands like " Biotique " and "The Body Shop" offer cruelty-free and vegan skincare and cosmetics. They cater to consumers who prioritize animal welfare and ethical beauty practices. Compiled by Henna P. 28 (iv) ATTITUDES & BELIEFS :

29. Age Income Occupation Lifestyle Personality Gender Compiled by Henna P. 29 (B) PERSONAL FACTORS

30. (B) PERSONAL FACTORS AGE AND LIFE STAGE: Age and life stage also have a significant impact. In India, young adults may prioritize gadgets and fashion items, while older individuals may focus more on retirement savings or investments. The buying choices of individuals depend on which age group they belong to. Elderly people will have totally different buying behaviours as compared teenagers. Examples of how companies in India design and offer products or services based on the internal factor of "Age and Life Stage" to target their consumers: Compiled by Henna P. 30

31. AGE AND LIFE STAGE: Age also influences our buying priorities. For example, as a young student, would you say that your opinions regarding what is a “luxury” product are the same as those of your parents or grandparents? The most likely answer is, “No.” Your parents, and especially grandparents, would probably criticize your purchases of upscale sneakers, designer shirts and handbags, jeans from Abercrombie & Fitch, and many other things you buy as far too expensive. Colgate offers My First Fluoride-Free Toothpaste for the littlest children, without any artificial colors , preservatives, or Fluoride. Colgate Troll Mild Bubble Fruit Toothpaste is designed for kids age 2 and older (and also available as gel). Additional offerings for older kids include Colgate 2-in-1 Toothpaste (in Watermelon Burst and Strawberry Smash flavors ), and cavity protection toothpaste. Compiled by Henna P. 31 (B) PERSONAL FACTORS

32. (B) PERSONAL FACTORS Baby Care Brands : Companies like "Johnson & Johnson" and "Himalaya Baby Care" offer a range of baby products, including diapers, baby shampoos, and skincare items. They target parents in the early stages of parenthood, addressing the unique needs of infants and toddlers. Online Learning Platforms : Edtech platforms like "BYJU'S" and " Unacademy " offer K-12 educational content and test preparation courses. They cater to students in various age groups, from young children preparing for exams to college students seeking advanced education. Retirement and Pension Plans : Financial institutions such as "HDFC Life" and "ICICI Prudential" design retirement and pension plans. They target individuals in the later stages of their careers who are planning for a secure financial future after retirement. Smartphone Brands : Smartphone manufacturers like "OnePlus" and "Realme" offer budget-friendly models with advanced features. They target young adults and college students who may have limited budgets but still desire smartphones with impressive specifications. Compiled by Henna P. 32 AGE AND LIFE STAGE:

33. Compiled by Henna P. 33 (B) PERSONAL FACTORS AGE AND LIFE STAGE:

34. (ii) Income : When a person has a higher disposable income, the purchasing power increases simultaneously. Disposable income refers to the money that is left after spending towards the basic needs of a person. When there is an increase in disposable income, it leads to higher expenditure on various items. But when the disposable income reduces, parallelly the spending on multiple items also reduced. Compiled by Henna P. 34 (B) PERSONAL FACTORS

35. (ii) Income : Hospitality chains like "The Oberoi" and "Taj Hotels" offer luxurious accommodations, fine dining, and impeccable service. They cater to guests seeking a lavish and upscale experience, often including business travelers and tourists with higher social status. There are a number of offerings of premium brands in the snack category (Cadbury’s Silk chocolate, Sunfeast Dark Fantasy and Parle’s Milano cookies, and Magnum ice cream to name a few) in India. In terms of affluence, the top five percent of the consumer provides a good segment for offerings that are tasty indulgences. Compiled by Henna P. 35 (B) PERSONAL FACTORS

36. (iii) Occupation : Occupation of a consumer influences the buying behaviour. A person tends to buy things that are appropriate to this/her profession.  For example , a senior corporate professional would tend to buy formal clothing whereas a creative designer would tend to spend on casual wear. Compiled by Henna P. 36 (B) PERSONAL FACTORS

37. (iii) Occupation : Athletes and Sports Professionals: Brands like Nike, Adidas, and Under Armour are synonymous with sports and fitness, often sponsoring athletes and teams to build brand recognition within this demographic. Beauty and Cosmetics Professionals: L'Oréal, Sephora, and MAC Cosmetics are prominent in the beauty industry, offering products and training opportunities for makeup artists, hairstylists, and estheticians . Finance Professionals: Companies like Goldman Sachs, JPMorgan Chase, and other financial institutions target individuals working in finance, banking, and investment management. Creative Professionals: Brands like Adobe, Wacom, and various design agencies cater to graphic designers, illustrators, and other creative professionals. Hospitality and Tourism Professionals: Marriott, Hilton, and other hotel chains target individuals working in the hospitality industry, including hotel managers, event planners, and travel agents. Construction and Engineering Professionals: Brands like Caterpillar, John Deere, and various construction companies target professionals in the construction and engineering fields. Compiled by Henna P. 37 (B) PERSONAL FACTORS

38. (iii) Occupation : Compiled by Henna P. 38 (B) PERSONAL FACTORS

39. (iii) Occupation : Campbell's Chunky soups can be a convenient and relatively quick meal option for busy working women, offering a variety of flavors and hearty ingredients. Campbell’s Chunky soup emphasizes saving time and tells consumers that they can prepare the soup quickly and also receive value for their appeals to consumers’ desire to save time. The ad for the company’s Healthy Request focuses on health and fitness another priority in many peoples’ lives. Compiled by Henna P. 39 (B) PERSONAL FACTORS

40. (iv) Lifestyle : Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behaviour is highly influenced by the lifestyle of a consumer. Someone who leads a healthy lifestyle would spend more or healthy food alternatives, or at the other end there could be someone with a mediocre income but invests in appearances, fashion and luxury items. Compiled by Henna P. 40 (B) PERSONAL FACTORS

41. (iv) Lifestyle : Compiled by Henna P. 41 (B) PERSONAL FACTORS

42. (v) Personality : Personality represents inner psychological characteristics that both determine and reflect how we think and act, which together form an individual’s distinctive character. Consumers often purchase products and brands that marketers have differentiated from others by giving them “personalities”. Adventure Sports and Equipment: Companies like "Decathlon" and "Wildcraft" offer adventure sports gear and equipment, targeting consumers with adventurous personalities who enjoy activities like trekking, camping, and water sports. Travel agencies like " Thrillophilia " specialize in adventure and experiential travel. They cater to consumers with adventurous personalities who seek thrill-seeking experiences like bungee jumping, paragliding, and trekking. Compiled by Henna P. 42 (B) PERSONAL FACTORS

43. (v) Personality : Brand personification is assigning a brand human attributes and creating sentiments for it among consumers. of Brand Personification, a form of anthropomorphism, means attributing human characteristics to something that is not human. For example, Mr. Clean—one of America’s most beloved and instantly recognized “persons.” The brand and mascot are owned by Procter & Gamble and used for positioning and marketing cleaning items. The mascot, introduced in the 1950s, quickly became a best seller, and “his” product line now includes bathroom cleaners, a magic eraser, cleaning liquids and sprays, and items for heavy and outdoor cleaning. Procter & Gamble continues to add items to the brand and consumers buy them because they personify Mr. Clean: he is strong, tenacious, competent, dependable, and friendly. In his recent incarnation shown during a Super Bowl, he appeared strong and somewhat sexier than when he was first introduced. Compiled by Henna P. 43 (B) PERSONAL FACTORS

44. (vi) GENDER : Gender significantly influences consumer behavior , impacting everything from product preferences and shopping habits to the way consumers evaluate information and make purchasing decisions. Understanding these differences is crucial for marketers to develop effective strategies tailored to both men and women. Frito-Lay overhauled all of its calorie-conscious snacks, making them more appealing to women, and introduced 100-calorie packages of snacks. Compiled by Henna P. 44 (B) PERSONAL FACTORS

45. (vi) Gender : More and more men have been using men have been buying exfoliators, toners, aftershave creams, and moisturizers. Recognizing that many men feel embarrassed to be seen looking for cosmetics, many department stores have redesigned the areas where men’s grooming products are sold. Dove, a well-established brand of face and body care products, introduced a product line named Dove Men+Care and their ads try to convince men that their faces should be pampered. The ads urge men to “end the face torture,” and depict men’s faces can be exposed to harsh elements such as sun, wind, and snow. Compiled by Henna P. 45 (B) PERSONAL FACTORS

46. (vi) Gender : Several travel agencies offer specialized tour packages designed for women, focusing on safety, comfort, and empowerment. These tours cater to various preferences, including adventure, cultural exploration, wellness retreats, and city escapes. Several online travel agencies specialize in women-only tours, such as  Wander Womaniya , Jugni Travel, and  LetsGoForACamp.com   Compiled by Henna P. 46 (B) PERSONAL FACTORS

47. (C) SOCIAL FACTORS Compiled by Henna P. 47

48. (C) SOCIAL FACTORS Humans are social beings, and the society or the people they live around influence their buying behaviour. Human beings try to imitate other humans and nurture a desire to be socially accepted. Hence, their buying behaviour is influenced by other people around them. Some of the social factors are as follows : Family : Family plays a significant role in shaping the buying behaviour of a person. A person builds his/her preferences from his childhood by watching their family buy certain products and continues to buy the same products even when they grow up. Compiled by Henna P. 48

49. (C) SOCIAL FACTORS Compiled by Henna P. 49 ( i ) FAMILY : The ad for Mott’s juice depicts a mother as a socialization agent who is teaching her children that juices with less sugar are healthier. Researchers identified distinct socialization styles among mothers, based on mothers’ attitudes toward marketing.

50. (C) SOCIAL FACTORS Compiled by Henna P. 50 ( i ) FAMILY :

51. (C) SOCIAL FACTORS Compiled by Henna P. 51 ( i ) FAMILY :

52. Compiled by Henna P. 52 (C) SOCIAL FACTORS (iii) REFERENCE GROUPS : A reference group is a group of people with whom a person associates himself. Some of these are primary groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbours, and coworkers. People also belong to secondary groups, such as religious, professional, and trade-union groups, which tend to be more formal and require less continuous interaction.

53. Compiled by Henna P. 53 (C) SOCIAL FACTORS (ii) REFERENCE GROUPS : BTS ARMY Includes These Music StarsBTS Army refers to the global fanbase of the South Korean boy band BTS (also known as Bangtan Sonyeondan ). The name "ARMY" is an acronym that stands for "Adorable Representative M.C. for Youth". It's a dedicated and organized fandom known for its strong online and offline presence, characterized by its support for the band, translation efforts, and various charitable initiatives.

54. Compiled by Henna P. 54 (C) SOCIAL FACTORS (ii) REFERENCE GROUPS :

55. Compiled by Henna P. 55 (C) SOCIAL FACTORS (ii) ROLE & STATUS : A person is influenced by the role that he holds in the society. If a person is in a high position, his buying behaviour will be influenced largely by his status. A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an employee of the same company will have different buying pattern.

56. Compiled by Henna P. 56 (C) SOCIAL FACTORS (ii) ROLE & STATUS : Rolex : Associated with prestige, accomplishment, and high social standing. Their watches are often seen as a symbol of success and are frequently targeted towards professionals and individuals who have achieved significant milestones. Mercedes-Benz : Known for its luxury and performance, Mercedes-Benz appeals to those who value comfort, status, and advanced technology. Patagonia : Focuses on sustainability, outdoor adventure, and ethical consumerism, appealing to individuals who prioritize these values. Nike : Inspires athletes and fitness enthusiasts, associating its products with performance, ambition, and a healthy lifestyle. Dove : Promotes body positivity and self-acceptance, targeting women who value natural beauty and authenticity.

57. Compiled by Henna P. 57 (C) SOCIAL FACTORS (ii) ROLE & STATUS :

58. (D) CULTURAL FACTORS Compiled by Henna P. 58

59. (D) CULTURAL FACTORS A group of people is associated with a set of values and ideologies that belong to a particular community. ( i ) Culture : People coming from particular communities have behaviours highly influenced by their culture. Culture is learned rather than being something we are born with. Culture is manifested within boundaries of acceptable behavior . Compiled by Henna P. 59

60. India has a strong religious culture. The Kumbh Mela in India is considered to be the largest religious congregation in the world, where millions of pilgrims converge. As the Maha Kumbh Mela 2025 in Prayagraj draws millions of pilgrims, brands are seizing the opportunity to connect with attendees through targeted initiatives. From healthcare and financial services to lighting solutions and digital engagement, companies are addressing practical needs and enhancing the experience for pilgrims. This list highlights how brands like Sensodyne, PayNearby , and others are leveraging the scale of this event to provide essential services, promote awareness, and offer convenience to participants. Compiled by Henna P. 60 (D) CULTURAL FACTORS

61. Compiled by Henna P. 61 The case highlights how Titan’s brands, Raga and Tanishq, adapted to India’s evolving cultural values. Raga, initially positioned on femininity with a traditional touch, gradually embraced progressive ideals like independence and gender equality. Tanishq, first targeting urban women with traditional values, later launched ads reflecting progressive themes such as remarriage, inter-caste marriage, and women’s empowerment. Both brands show how linking positioning to cultural shifts and emerging progressive values strengthens consumer attitudes and relevance. (D) CULTURAL FACTORS ( i ) CULTURE :

62. ( i ) CULTURE : Rin detergent uses an ad where a young woman in spotless white impresses her boss, who questions her modest commute. She proudly reveals her father is an auto driver, showing dignity in humble roots. The ad shifts from ego- defense to value-expression, portraying Rin as more than whiteness - symbolizing family pride, emotional strength, and cultural values in India. Compiled by Henna P. 62 (D) CULTURAL FACTORS

63. H&M, the global fashion apparel brand, had entered the Indian market in 2015, and by 2017, it was the fastest growing fashion brand in the country over several other multinational brands that had entered this market earlier. One of the observations that H&M had made about Indian consumers is their penchant ( ponshon ) for colors and prints. The complex colour combinations that Indians come across in everyday life with respect to consumer preferences in apparel is a distinct characteristic of the Indian high cultural context. Almost two decades after its entry into India, Kellogg’s advertised that its cornflakes can be taken with hot milk for one of its variants! This is important because unlike the Americans, Indians don’t have a taste for cold milk along with any food. Hence, Kellogg’s had faced problem in having a rapid reach in India. Compiled by Henna P. 63 (D) CULTURAL FACTORS ( i ) CULTURE :

64. (D) CULTURAL FACTORS (ii) SUBCULTURE : A subculture is a group of people within a society that share a distinct identity and values that are different from the larger society. Subcultures can be characterized by shared interests, aesthetics, political views, or musical preferences. Compiled by Henna P. 64

65. (D) CULTURAL FACTORS Cosmopolitan magazine and other media have started targeting Latin women, a segment that, for a long time, went unnoticed by most media. Cosmopolitan Latina targets American-born, bilingual Latinas. The magazine also has editions for women in Argentina, Mexico, and Colombia. Compiled by Henna P. 65 (ii) SUB-CULTURE:

66. (D) CULTURAL FACTORS (ii) SUB-CULTURE: L’Oreal USA collaborated with Telemundo (an American TV network that broadcasts in Spanish) in building a website for Hispanic consumers. Compiled by Henna P. 66 Telemundo is a U.S.-based Spanish-language television network, owned by NBCUniversal (Comcast). It is one of the largest providers of Spanish-language content in the United States, alongside Univision. “Hispanics” generally refers to people who have origins in Spanish-speaking countries, especially from Latin America and Spain.

67. (D) CULTURAL FACTORS (iii) SOCIAL CLASS : Social class encompasses various aspects, such as income, wealth, occupation, education, and lifestyle. The social class provides a framework for understanding individuals’ positions within society and their associated behaviours and preferences. Compiled by Henna P. 67

68. (D) CULTURAL FACTORS (iii) SOCIAL CLASS : Peter England, a Rs.1000-crore brand, had used the concept of segmentation with life stage as a base to create a new concept in retailing. The brand has a presence in 2,000 outlets that sell multi-branded apparel, and it also has exclusive outlets (750). The new retail outlets have apparel for three segments – the entry level professional after collegiate education, the early professional, and the older professionals (its sub-brand, Elite, is for this segment). The age group covered is between 20 and 40 years. The apparel includes formal, casual, and party wear for each of these segments. Peter England was launched as the “honest shirt” – an affordable international brand – during the 1990s and had appealed to the mid-price market segment. Compiled by Henna P. 68

69. (iii) SOCIAL CLASS : Apple, Chanel, Nike, Longines, and Mercedes that follow minimalist design and communication are western brands. Paper Boat and Titan Edge, to mention a few Indian brands that have adopted minimalist packaging and communication, are higher-end brands in terms of their prices, and, therefore, bound to target consumers who prefer costlier brands for a variety of reasons – minimalistic look being one. Given the influence of western cultures on the Indian context after economic liberalization in 1991, consumers at the higher end of the price spectrum seem inclined towards brands that have a western orientation and hence their acceptability. Compiled by Henna P. 69 (D) CULTURAL FACTORS

70. Compiled by Henna P. 70 (E) ECONOMIC FACTORS

71. Consumer buying habits greatly depend on the economic situation of a country or a market. When a nation’s economy is strong, it leads to a greater money supply in the market and higher purchasing power for consumers. Whereas a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power. Some of the important economic factors are as follows: Personal Income When a person has a higher disposable income, the purchasing power increases simultaneously. Disposable income refers to the money that is left after spending towards the basic needs of a person. When there is an increase in disposable income, it leads to higher expenditure on various items. But when the disposable income reduces, parallelly the spending on multiple items also reduced. Family Income Family income is the total income from all the members of a family. When more people are earning in the family, there is more income available for shopping basic needs and luxuries. Higher family income influences the people in the family to buy more. Compiled by Henna P. 71 (E) ECONOMIC FACTORS

72. Luxury Cars : E.g. Rolls Royce :   Ads often depict the vehicles in affluent settings, highlighting advanced features and a sophisticated lifestyle that resonates with top earners, E.g. Rolls Royce Luxury Cars. Luxury comes at a hefty price and therefore, not everyone can own it. Buying a Rolls-Royce is every car lover's dream, though unfortunately, not everyone can purchase the luxury brand. Compiled by Henna P. 72 Luxury Watches  (e.g., Rolex,  Rado ):   Hrithik Roshan has represented the Swiss watchmaker Rado for over a decade now. His personality truly resonates with the brand's attitude of practicality and effortless charm. (E) ECONOMIC FACTORS

73. Nirma Detergent for Middle Class : Nirma targeted the middle class through a focus on affordability and value, a strategy exemplified by its iconic " Doodh si safedi " jingle and the use of budget-friendly pricing for its detergent powder. Advertisements featured satisfied, budget-conscious women to build trust and appeal to the Indian housewife.  Compiled by Henna P. 73 Amul products for middle class : Amul advertisements target the middle class by offering quality products at affordable prices, creating an emotional connection through relatable campaigns like the "Amul Girl," and using a "moment marketing" strategy to tap into current events and festivals (E) ECONOMIC FACTORS

74. Consumer Credit When a consumer is offered easy credit to purchase goods, it promotes higher spending. Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy instalments, bank loans, hire purchase, and many such other credit options. When there is higher credit available to consumers, the purchase of comfort and luxury items increases. Liquid Assets Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid assets are those assets, which can be converted into cash very easily. Cash in hand, bank savings and securities are some examples of liquid assets. When a consumer has higher liquid assets, it gives him more confidence to buy luxury goods. Savings A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. If a consumer decided to save more, then his expenditure on buying reduces. Whereas if a consumer is interested in saving more, then most of his income will go towards buying products. Compiled by Henna P. 74 (E) ECONOMIC FACTORS

75. Compiled by Henna P. 75 (E) ECONOMIC FACTORS

76. CASE STUDY : WALT DISNEY The Walt Disney Company, founded in 1923 by brothers Walt and Roy Disney, has become a global leader in family entertainment. Starting as a small cartoon studio, Disney gained international recognition with Mickey Mouse and the first full-length animated feature, Snow White and the Seven Dwarfs. Over the decades, the company expanded into animated classics like Pinocchio and Cinderella, live-action films such as Mary Poppins, television shows, consumer products, and theme parks, including Disneyland and Walt Disney World. Following the deaths of Walt and Roy, Disney faced a period of struggle but recovered in the 1980s with ventures like the Disney Channel and Touchstone Pictures, targeting both family and older audiences. Today, Disney operates through five business segments: Studios, Parks and Resorts, Consumer Products, Media Networks, and Interactive Media. The company continues to balance its 90-year heritage with innovation, using technology, cross-platform franchises like Hannah Montana, and global outreach to engage audiences. Disney estimates that consumers spend billions of hours annually interacting with its content, from movies and television to theme parks. With revenues reaching nearly $38 billion in 2008, Disney remains a trusted, influential, and enduring entertainment brand worldwide. General Questions: Who founded The Walt Disney Company, and when? What are the five main business segments of Disney today? Which films and characters made Disney globally famous? How does Disney balance maintaining its heritage while innovating for new audiences? How has Disney leveraged cross-platform franchises to increase consumer engagement and revenue? Compiled by Henna P. 76

77. Thank You Compiled by Henna P. 77