Individual determinants of consumer behaviour

Individual determinants of consumer behavior

1. Individual Determinants
of Consumer Behaviour

2. Introduction
•Consumer Behaviour is influenced by
many factors like, individual, group,
social, economical cultural determinants.
•Among them individual determinants like,
motivation, personality, attitude and self-
concept play a very important role. This
chapter takes you through the details of
the said variables in individual
determinants.

3. Motivation
•Motivation is what makes people move
and act. Motivation refers to the
initiation, direction, intensity and
persistence of behavior.
• Motivation is having the desire and
willingness to do something. It is the
driving force of all human behavior.

4. •Motivation is formally defined as the
state of drive or arousal, which impels
behaviour towards a goal object.
•Thus motivation is comprised of two
components –
–Drive or arousal, and
– Goal Object.

5. Theories of Motivation
•Maslow’s Hierarchy of Needs:
• Maslow's theory contended that as humans meet
'basic needs', they seek to satisfy successively
'higher needs' that occupy a set hierarchy.
•Higher level needs are dormant till the lower levels
are satisfied. In effect, according to this theory,
dissatisfaction and not satisfaction motivates
behaviour.

6. This theory is based on four assumptions:
1.All human beings acquire a similar set of
motives through genetic factors as also
social influences.
2.Some motives among these are more basic
than others.
3.First the more basic motives are to be
satisfied to a minimum level before other
motives are activated.
4.As more and more basic motives are satisfied,
more advanced motives come into effect.

8. McGuire’s Psychological Motives
•McGuire proposed a system of
classification, by which marketers
could isolate motives likely to be
involved in various consumption
situations.

9. •In this system, motivation is first divided into
four categories based on two criteria:
–Cognitive motivation or affective motivation:
Cognitive motives deal with a consumer’s need for
adapting to the environment and achieving a sense
of meaning while satisfying the need. Affective
motive is the one wherein the individual gets a
feeling of satisfaction while attaining personal
goals.
–Preservation of status quo or growth focus: Status-
quo goal emphasizes on maintaining equilibrium
while the growth-oriented motive emphasizes
development.

10. •These four categories are further divided
into 16 categories, based on the source
and objective of the motive as under:
•Whether the behaviour is actively
initiated or whether it is in response to
the environment.
•Whether the behaviour helps the
consumer to achieve a new internal state
or whether it creates new external
relationship to the environment.

11. Cognitive Preservation Motives:
•Need for consistency (active, internal): A consumer always desires to have
consistency in attitudes, behaviours, opinions, self-image, etc. If there is any
inconsistency, the consumer will try to reduce such inconsistency. One of the
examples is that of “Cognitive Dissonance” wherein the consumer tries to
resolve the conflict in his mind of a wrong decision on a purchase by actively
supporting decision in his own mind by selective exposure and search. This will
be dealt with more detail later. It is important for marketers to design their
advertising campaigns so that the consumer beliefs are consistent with the
information provided in the advertisement. If the objective of the marketer is
to change the consumer’s attitude, different strategies have to be used which
will be discussed later.
•.

12. •Need for attribution (active, external): This
motive attributes the reason for a favourable or
unfavourable outcome of a decision to self or to some
outside element. This is based an area of research
called as “ Attribution Theory” When a consumer feels
that the salesman who is describing the product
features is doing so for getting his commission,
•
•he/she will discount the advice by attributing sales
motive to the salesman. A similar advice given by a
friend or relative may be accepted more readily since
the consumer feels that this person is trying to be
helpful. Since the consumers always attribute motives
to the messages received by them from advertisements
or sales people, many of these messages may not have
the intended impact. One approach to overcome this is
to use a credible spokes person in the ads

13. •Need to categorise (passive, internal): Consumers always
organize the information received by them in meaningful and
manageable categories. This will help them to process the vast
amount of information in a proper way. For example, the consumer
may categorise the price parameter of a product while taking a
purchase decision. Hence Bata’s pricing strategy of prices for their
footwear such as Rs. 99.95 instead of Rs. 100 will elicit better
response since the consumer will categorise this product as being
below Rs.100 level.
•Need for objectification (passive, external): Feelings,
impressions and attitudes of consumers are established by
observing and comparing cues and symbols from outside. An
individual always compares own behaviour with that of others and
comes to conclusions as to these impressions. Clothing companies
like Raymonds make use of this need to promote their products by
presenting a subtle meaning of the desired image and lifestyle to
the consumer.

14. Cognitive Growth Motives:
•Need for autonomy (active, internal): This is
the need for individuality and independence. This is
characteristic of some cultures like that of USA. All
cultures have this need at different levels,
depending on the social acceptance of this need.
While in America this need is actively encouraged
from childhood, in Japan, this need is discouraged.
Marketers respond to this need by designing their
products with unique features or by offering a wide
variety of products. Many go for customisation of
options as per the individualistic needs. Many
products are advertised as unique, independent
and individualistic to cater to this need.

15. •Need for stimulation (active, external): This
is a variety seeking behaviour of a consumer just
for self-stimulation. This behaviour results in
brand switching and also impulse purchases.
• This need for stimulation keeps changing over
time. Some consumers who in their early years
want rapid changes become more stable over a
period of time desiring stability. Some consumers
who prefer stable environments may start getting
bored & then look for stimulation by desiring
change.

16. •Teleological Need (passive, internal):
Consumers have certain images of desired
outcomes and they try to compare that to
their current status. Behaviours are constantly
changed and the results are continuously
monitored, by moving towards the desired
state. This motive moves people to prefer
certain patterns like good guys winning, hero
and heroine getting together, etc. in mass
media like movies, books, television serials
etc. Marketers make use of these motives by
designing their ad campaigns suitably.

17. •Utilitarian Need (Passive, external): In
this need, consumer is vied as a problem
solver who always approaches situations or
opportunities to acquire useful information
and skills. For example, a consumer may
learn new fashions and clothing styles,
etiquette, lifestyles, etc. while watching a
movie or a TV serial. Consumers may also
approach advertising campaigns and store
displays as a source of learning for future
or current purchase decisions.

18. Other Models:
•Murray’s List of Psychogenic Needs:
Murray identified six psychogenic needs of individuals
resulting in certain marketplace behaviours. These are:
•Autonomy need-results in impulse buying, wearing
unconventional clothes, etc.

–Dominance need- results in aggressively demanding attention in
service organisations
–Nurturance need – results in donating to humanitarian causes
–
–Exhibition need- results in wearing high fashion clothing
–
–Cognizance need- results in visiting museums, learning about
new technology, etc.
–Exposition need- results in playing opinion leaders.

19. 9-19
Customer vs. Consumer Behavior
•Customer behaviorCustomer behavior
•Consumer behaviorConsumer behavior

20. 9-20
Interpersonal Determinants of Consumer
Behavior
•Cultural InfluencesCultural Influences
–Culture
–ethnocentrism

21. 9-21
•Core Values in Core Values in
the U.S. Culturethe U.S. Culture
–While some cultural
values change over
time, basic core
values do not

22. 9-22
•International Perspective on International Perspective on
Cultural InfluencesCultural Influences
–Cultural differences are particularly
important for international marketers

23. 9-23
•Subcultures:Subcultures: subgroup of culture
with its own, distinct modes of
behavior
•Subcultures can differ by:
–Ethnicity
–Nationality
–Age
–Religion
–Geographic
distribution

24. 9-24
0.40%
12.10%
12.50%
1.80%
0.70%
3.10%
Hispanic American
African Americans
Asian American
Native American
Two or More Races
Other
Note: Percentages have been rounded.
SOURCE: Data from Roger Simon and Angie Cannon, “An Amazing Journey,” U.S. News & World Report,
August 6. 2001, p. 12.
Ethnic and Racial MinoritiesEthnic and Racial Minorities

25. 9-25
Interpersonal Determinants of Consumer
Behavior
•Social InfluencesSocial Influences
Group membership influences an
individual’s purchase decisions and
behavior in both overt and subtle
ways.
–Norms
–Status
–Roles

26. 9-26
•Jordache
–Advertisement
Illustrating the
Influence of
Friendship
Groups on
Purchase
Decisions

27. 9-27
•The Asch Phenomenon:The Asch Phenomenon: the
effect of a reference group on
individual decision-making
•Reference groupsReference groups
•The purchased product must
be one that others can see
and identify.
•The purchased item must be
conspicuous

28. 9-28
•Social classes:Social classes: groups whose
rankings are determined by
occupation, income, education,
family background, and residence
location
W. Lloyd Warner
identified
six classes:
1.Upper-upper
2.Lower-upper
3.Upper-middle
4.Lower-middle
5.Working class
6.Lower class

29. 9-29
•Opinion leaders:Opinion leaders: individuals
likely to purchase new products
before others and then share the
resulting experiences and opinions
by word-of-mouth
Alternative Channels for Communications
Flow

30. 9-30
•Family InfluencesFamily Influences
–Autonomic
–Husband-dominant
–Wife-dominant
–Syncratic
Interpersonal Determinants of Consumer
Behavior

31. 9-31
•Children and Children and
teenagers in teenagers in
family purchasesfamily purchases
–Growing numbers
are assuming
responsibility for
family shopping
–They also
influence what
parents buy
–They represent
over 50 million
consumers in their
own right

32. 9-32
Personal Determinants of Consumer
Behavior

33. 9-33
Why do you see so many people wearing
football clothing?
What drives that kind of consumer behavior?

34. 9-34
•Needs and MotivesNeeds and Motives
–Need
–Motives

35. 9-35
•Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Self-Actualization

36. 9-36
•Lindblad Special
Expeditions
–Service Aimed
at Satisfying a
Self-
actualization
Need

37. 9-37
•Perceptual Perceptual
screens:screens: the
filtering
processes
through which
all inputs must
pass
•Sony
–Breaking Through
Perceptual Screens

38. 9-38
•Subliminal Perception:Subliminal Perception:
subconscious receipt of information
–Almost 50 years ago, a New Jersey
movie theater tried to boost concession
sales by flashing the words Eat Popcorn
and Drink Coca-Cola.
–Research has shown that subliminal
messages cannot force receivers to
purchase goods that they would not
consciously want.

39. 9-39
•AttitudesAttitudes
–Attitudes: enduring evaluations,
emotional feelings, or action
tendencies toward some object or
data
–Attitude components:
•cognitive
•affective
•behavioral

40. 9-40
This advertisement deals with feelings or
emotional reactions many of us have felt at one
time or another.

41. 9-41
•Changing Changing
Consumer Consumer
AttitudesAttitudes
–Marketers have
two choices to
lead prospective
buyers to adopt a
favorable attitude
toward their
product:

42. 9-42
•Modifying the Modifying the
Components of Components of
AttitudeAttitude
–Marketers can
work to modify
attitudes by
providing evidence
of product benefits
and by correcting
misconceptions

43. 9-43
•Learning:Learning: an immediate or
expected change in behavior as a
result of experience
–Drive
–Cue
–Response
–Reinforcement

44. 9-44
•Self-Concept:Self-Concept: person’s
multifaceted picture of himself or
herself, composed of the real self,
self-image, looking-glass self, and
ideal self

45. 9-45
The Consumer Decision Process
•Consumers complete a
step-by-step process
when making purchase
decisions
–High-involvement
–Low-involvement
SearchSearch
AlternativAlternativ
e e
EvaluationEvaluation
Purchase Purchase
DecisionDecision
Purchase Purchase
ActAct
Post-Post-
purchase purchase
EvaluationEvaluation
Problem Problem
OpportuniOpportuni
ty ty
RecognitioRecognitio
nn

46. 9-46
This advertisement shows how the customer is
helped through the buying decision making
process…a little unusual but effective none the
less.

47. 9-47
•Problem or Opportunity Problem or Opportunity
RecognitionRecognition
–Consumer becomes aware of a
significant discrepancy between the
existing situation and the desired
situation
–Motivates the individual to achieve
the desired state of affairs

48. 9-48
Evoked Set ModelEvoked Set Model
All All
BrandsBrands
All All
BrandsBrands
Unknown Unknown
BrandsBrands
Unknown Unknown
BrandsBrands
Known Known
Brands Brands
Known Known
Brands Brands
OverlookedOverlooked
BrandsBrands
OverlookedOverlooked
BrandsBrands
UnacceptableUnacceptable
BrandsBrands
UnacceptableUnacceptable
BrandsBrands
AcceptableAcceptable
BrandsBrands
AcceptableAcceptable
BrandsBrands
Rejected Rejected
Brands Brands
Rejected Rejected
Brands Brands
PurchasedPurchased
BrandBrand
PurchasedPurchased
BrandBrand
EvokedEvoked
SetSet
InertInert
SetSet

49. 9-49
•Evaluation of AlternativesEvaluation of Alternatives
–Consumer evaluates the evoked set
–Outcome of the evaluation stage is
the choice of a brand or product
–Evaluative criteria: features that a
consumer considers in choosing a
model alternatives

50. 9-50
•Progresso
–An Attempt to
Influence
Evaluative
Criteria

51. 9-51
•Purchase DecisionPurchase Decision
–Consumer narrows the alternatives down
to one
–Next, the purchase location is decided
•Purchase ActPurchase Act
–Consumers tend to choose outlets by
considering such characteristics as
location, price, assortment, personnel,
store image, physical design, and services
–Some choose the convenience of in-home
shopping

52. 9-52
•Post-purchase Post-purchase
EvaluationEvaluation
–After the
purchase,
consumers are
either satisfied or
experience
cognitive
dissonance (CD)
–Michelin relieving
CD

53. 9-53
•Classifying Consumer Problem-Classifying Consumer Problem-
Solving ProcessesSolving Processes
•Routinized Response BehaviorRoutinized Response Behavior
–Purchases made routinely by
choosing a preferred brand or one of
a limited group of acceptable brands

54. 9-54
•Limited Problem SolvingLimited Problem Solving
–Situation where the consumer has
previously set evaluative criteria for a
particular kind of purchase but then
encounters a new, unknown brand or
item

55. 9-55
•Extended Problem SolvingExtended Problem Solving
–Results when brands are difficult to
categorize or evaluate
–High-involvement purchase
decisions usually require extended
problem solving

56. ATTITUDE FORMATION AND CHANGE:
LOW CONSUMER EFFORT

57. How are Attitudes formed through
Affect (Emotion)?
•The mere
exposure effect
•Classical
conditioning
•Attitude toward
the ad
•Mood

58. The Mere Exposure Effect
•Tendency to prefer
known over unknown
objects
•Not dependent on
reasoning or active
consideration
•W

59. Classical Conditioning
•Originally
developed by
physiologist
(Pavlov)
•“Linking” between
two objects
causes association
–e.g., a beautiful
woman and a car

60. Terms
•Unconditioned
response
•Unconditioned
stimulus
•Conditioned
stimulus
•Conditioned
response

61. Making Classical Conditioning Work
•Appropriate
symbols (for the
population in
question) to elicit
emotion
•NOTE: Test
stimuli for desired
effect!
•Repetition is
critical!

62. Classical Conditioning Group Exercise
•In groups of 3-5, describe one
specific example of how classical
conditioning could be used by
marketers.
•Create scenario with UR, US, CS
and CR.
–Can be “real example” or one you
make up.
•Be prepared to share your idea
with the class
•Discuss: Is this effective??

63. Attitude Toward the Ad (A
ad
)
•Transfer of affect
from ad to
product
•Dual Mediation
Hypothesis

64. The Dual Mediation Hypothesis
Attitude
toward
the ad
Credibility of
message
Attitude
toward
the brand

65. Mood
•Biasing effect on
attitudes
•Congruence with
product
•Effect of
colors/lighting
on mood

66. Influencing Affectively Based Low-
Elaboration Attitudes
•Source factors
–attractiveness
–likability
–celebrity status
•Message factors
–Pleasant pictures
–Music
–Humor
–Sex
–Emotional
involvement
•Contextual
factors
–Repetition
–Program/editorial
context

67. How are Attitudes formed through
Cognition?
•Simple inferences
•Heuristics
–frequency heuristic

68. Influencing Cognitively Based Low-
Elaboration Attitudes
•Source factors
–Expert/credibility
•Message factors
–Number of
arguments
–Message simplicity
–Involving
•Repetition