Individual Determinants of Conusmer Behaviour

Entrepreneurship is the process of identifying an opportunity and using one's initiative, skills, and resources to create, develop, and manage a business venture, often involving innovation and taking calculated risks to achieve profit or other goals.

1. Chapter-2 Individual Determinants of Consumer Behaviour

2. Meaning Consumer buying behavior , often referred to as consumer behavior ,    encompasses the study of the processes and factors that influence individuals or groups of consumers in making choices and decisions when purchasing goods, products, or services.  

3. The Six Basic Needs of Customers Friendliness Understanding and empathy Fairness Control Options and alternatives Information

4. Individual Determinants Biological Factor- individual's personality Psychological Factors- person's beliefs, attitudes, perceptions Socioeconomic Status- income, education level, and occupation Culture and Identity- individual's values, beliefs, and behaviours Education- individual's knowledge, skills, and career prospects Health and well-being- physical and mental health Personal Experiences- traumatic events, successes, failures Environmental factors- neighbourhood safety, access to healthcare Age and Development stage- priorities, goals, and decision-making processes Values and Beliefs- cultural, religious, or philosophical factors Personality Traits- openness, conscientiousness, and agreeableness

5. Consumer motivation Types of Motivation Intrinsic Motivation- Intrinsic motivation occurs when people engage in an activity for its own sake rather than for external rewards or recognition. 2. Extrinsic Motivation- motivation comes from external sources, such as rewards, punishments, or recognition. 3. A motivation- to the lack of motivation or a feeling of indifference toward an activity.

6. Importance of motivation Goal Achievement Increased Productivity Enhanced Learning and Education Positive Health Outcomes Personal Growth and Development Resilience and Perseverance Enhanced Creativity and Innovation Positive Relationships Community and Societal Impact Career Advancement Happiness and Well-Being Overcoming Procrastination

7. Theories of Motivation 1.Maslow's needs hierarchy

8. 2. Herzberg’s Hygiene- Two factor theory

9. 3. McGregor’s ‘X’ and “Y” theory

10. Theory X Theory X represents a traditional, authoritarian management perspective. It assumes that employees inherently dislike work and will avoid it if they can. Theory X managers believe that employees need to be closely supervised, controlled, and coerced to achieve organizational goals. The key assumptions of Theory X include: Employees have little ambition and prefer to be directed. They have a limited capacity for creativity and innovation. They are primarily motivated by monetary rewards and punishments. They must be closely monitored and micromanaged to ensure productivity. Theory X management tends to result in a hierarchical and autocratic leadership style.

11. Theory Y Theory Y represents a more humanistic and participative management perspective. It assumes that work is a natural part of life and that employees can find satisfaction and motivation in their jobs. Theory Y managers believe that employees are capable of self-motivation and self-direction. The key assumptions of Theory Y include: Employees are not inherently lazy; they are capable of exerting effort and taking responsibility. They have the potential for creativity, problem-solving, and innovation. They can be motivated by a variety of factors beyond monetary rewards, such as intrinsic rewards, recognition, and personal growth. They seek autonomy and are willing to accept responsibility.

12. Meaning Personality refers to a person's unique and enduring pattern of thoughts, feelings, and behaviours . It encompasses the consistent and relatively stable traits and characteristics that differentiate one person from another.

13. PERSONALITY INFLUENCES AND CONSUMER BEHAVIOUR Consumer innovative :- Innovation always has an element of risk, because there will be easy acceptance of the new products and services only if both the marketers and consumers are to equally gain from the right innovation. C • Dogmatism:-The person who is high on dogmatism will approach the unfamiliar defensively and decide on the worthiness of the products or services. On the other hand, those who are low on dogmatism will willingly consider unfamiliar or opposing beliefs. • Variety or novelty seeking:- Customers seeking variety or novelty in their consumption behavior. 1. This variety-seeking behavior can be: Exploratory purchase behaviour (exploring newer brands). 2. consumer obtains information about new alternatives 3. Already using a product in a new or novel way • Optimum stimulation level :- consumers who display more willingness to take risks, try new products, be innovative etc.

14. 1. SOCIAL CHARACTER. HEREDITY BLOOD SUGAR DIET DRUGS AND ALCOHOL

15. Factors Determining Personality A. Biochemical Factors Determining Personality 1. Heredity 2. Blood Sugar 3. Diet 4. Drugs and alcohol. B. Socio-culture factors determining personality Influence of home. Order of birth Peer group relation to school Culture and society

16. Theories of Personality 1 .Trait Theory P eople have stable and enduring traits that influence their behaviour , thoughts, and emotions across different situations and over time. Openness to Experience: Reflects a person's openness to new ideas, creativity, curiosity, and willingness to explore new things. Conscientiousness: Describes an individual's level of organization, responsibility, dependability, and goal-directed behaviour . Extraversion: Pertains to the degree of sociability, outgoingness, assertiveness, and enthusiasm displayed by a person. Agreeableness: Measures a person's friendliness, cooperativeness, empathy, and willingness to get along with others. Neuroticism (or Emotional Stability): Reflects the tendency to experience negative emotions, such as anxiety, depression, and emotional instability.

17. 2. Genetics of Personality Theory Twin Studies

18. . 3.Type Theory- Myers-Briggs Type Indicator (MBTI) Extraversion (E) vs. Introversion (I): Extraversion refers to a preference for being outgoing, sociable, and energized by external stimuli and interactions. Introversion refers to a preference for being more reserved, reflective, and energized by inner thoughts and solitude. 2. Sensing (S) vs. Intuition (N): Sensing represents a preference for focusing on concrete details, practicality, and a reliance on past experiences. Intuition represents a preference for focusing on possibilities, patterns, and future possibilities rather than relying solely on past experiences. Thinking (T) vs. Feeling (F): Thinking refers to a preference for making decisions based on logic, objective analysis, and impersonal considerations. Feeling refers to a preference for making decisions based on personal values, emotions, and empathy for others. Judging (J) vs. Perceiving (P): Judging represents a preference for a structured and organized approach to life, a desire for closure, and planning ahead. Perceiving represents a preference for flexibility, spontaneity, and adaptability, with a focus on staying open to new information and experiences.

19. Psychoanalytic Theory

20. Psychoanalytic Theory

21. Behaviourist Theory

22. Social Cognitive theory

23. Social Cognitive theory

24. Golden Rules For Personality Development Self Confidence Organize your mind Be loyal,honest and truthful Try to like other people Feel good about your accomplishment and amnalyze your mistakes Try to look good Maintain a good life style Sense of humor Positive thinking and positive doing

25. PERCEPTION Perception differs from one individual to another individual. It is the way a person sees the world around him. According to Mr. Joseph Ritz perception includes all those process by which an individual receives information about his environment seeing, hearing, feeling, tasting and smelling.

26. ELEMENTS OF PERCEPTION / CUSTOMER PERCEPTION Sensation The absolute threshold The differential threshold Subliminal perception Expectations Selective exposure Selective attention Selective reception and retention