Consumer Behaviour Schiffman 9th edition

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Not for circulation : for internal use

only 1

Consumer Behaviour

Faculty : Prof . Ashok Kumar

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Core text books : 1 Consumer behavior

Leon G Schiffman & L.L Kanuk 2 Consumer behavior ( A strategic

Approach ) Dr Henry Assael

3 Consumer Behavior & Branding S.Ramesh Kumar ( indian

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A recipe of good marketing strategy lies in sound understanding of its market.

All good market communication strategies( brand , IMC ) are developed from deeper insight in the market.

Sound Product Distribution, Price , Customer services ( CRM ) strategy etc originates from understanding of behavior of a market.

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Consumer Buying process

Impulsive buying : Consumer buy due to

stimuli

Compulsive buying : Consumer feels the

product or service is best suited for her

need

Addictive buying : Consumer feels the

product or service is only option available

to meet her aspiration & life style .

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Not for circulation : for internal use only 5 Break MARKET CLUTTER Overcome Commodity image Create DIFFERENTIATION ( USP) Eliminate PRICE WAR Overcome BLOOD BATH

How does consumer buying behavior study help business .

Create Mind base

Positioning

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Awareness

90

%

Comprehension

₇₀

% Linking 40% Preference 25% Trail _20% Re purchase 5%

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Not for circulation : for internal use only

7 Consumer Behaviour &

Research

Integrated Market Communication & MARKETING Strategies

Build / Create Dominating or self expressive brands.

CONSUMER BEHAVIOR STUDY & MARKETING COMMUNICATION

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Doing business without

Knowing your Consumer is

like winking at a pretty girl in dark.

You only know what you are doing

but not the pretty girl.

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ASSIGNMENT OF CONSUEMR RESERARCH MARKS = 30 IDENTIFY A RESEARCH OBJECTIVE

DEFINE RESEARCH PROBLEM DEFINE RESEARCH DESIGN

DEFINE RESEARCH METHODOLY SAMPLE FRAME

SAMPLE SIZE SAMPLE UNIT

DATA COLLECTION

QUESTIONAIRE DESIGN

DATA COLLECTION APPROACH DATALANSYSIS

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Consumer Power

&

Shifting trend in business

•

Consumer to TRANSUMER, PROSUMER

•

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11 The center of all business a ―Consumer‖ has been

transforming rapidly & have become more opaque .

Consumer consistently demand value from the products & services .

The marketer believes that brand is most important to a consumer .

A consumer is exposed to 600 market communication a day approximately. ( Research results )

A consumer looks beyond the the basic functionality of products & services which he does not articulate.

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Consumer Insights

A consumer insight is a discovery about people that enables us to establish a natural connection between a product and their daily lives. Insights into peoples‟ behavior are not

singular by nature, but are a collection of motives, ideas, memories that come together and form an opinion on a product or service. The skill is to identify the insight and

create a clear single proposition that enables people to buy, try or react to your product.

“It does exactly what I wanted it to do, I couldn’t live without it”. …. Consumer

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Not for circulation : for internal use only 13 Pre sale Situation Consumption Stage After sale Scenario

Consumer behavior study is conducted by an

organization at the following stages.

Understand the Behavior pattern To shape the

Communication

Maximize the sale & involvement with Product /service

Build loyalty &

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Consumer Personality Consumer Life style Internal Factors External Factors Situational Factors

Marketing strategy for 1. Product & service Development 2 STP 3 Communication 4 CLP 1. Pricing strategy 2. Sales strategy 3. Brand building Demographic Factor Socio graphic Factor Socio culture Situational need motivator Attitude & aspiration Perception Self concept Geographic factor

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15 Linear perceived value model.

Consumer = Brand attribute X Consumer Attribute Perceived Value

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Consumer types according to loyalty

Solus

Users/

Loyal buyer

Dual users

Flirts

/

Switcher

Degree of commitment towards product or service brands.

High Medium Low

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Not for circulation : for internal use only 17 Dimensions of Loyalty Customer Loyalist Downward Migrators 1 Emotive loyalist 2 Inertial loyalist 3 Deliberative loyalist 1 Life style Downward migrators 2 Deliberative migrators 3 Dissatisfied

Downward Highly dissatisfied. migrators Prompted to re

valuate alternatives Strongly feels the chosen Brand is best & stick to it.

Infrequently re assesses Purchase decision .

Frequently re assesses purchase decision . Re confirm the brand chosen Meets the desire & function

Re consider the brand with every Change in need.

Believes in selecting new brand every time .

Frequently re assess the new brand in the market.

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CLP, Loyalty cost & Consumer behavior Return/ Revenue Cost Increased profitability

Customer life cycle

LCC

Time MCC

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Consumer Types

Personal consumer Organizational / Industrial

Consumer Buys for individual Consumption.

Buying decisions are influenced by Cognitive, Personal, cultural ,social Influence & Situational

Factors.

Buying for organizational consumption Buying decisions are influenced by

Quality , service , attitude of the suppliers Financial considerations etc . Besides this , Environmental , organizational, interpersonal Factors influence the decisions.

The buying decision involves decision Makers viz

1 End User, 2 Influencer,

3 Financial Decision makers ( management ) 4 commercial buyer.

SATISFACTION OF ALL GROUPS ARE ESSENTIAL .

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Buying decisions in B2B system are influenced by :

Quality

 service

Attitude of the suppliers

Financial considerations( Ability to absorb credit ,

differed payment , Lease rental etc )

Environmental factors ( Legal & political )

Capacity to supply & lead time .

Technology factors

Business process such as use of SCM , ERP e-

Business tools.

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An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar Word of mouth Professional Journals Active search Perceptual Distortion Influencing Decision Agents

Time Perceived Type of Pressure Risk buying

Product organization Specific specific Situational Factors Policy factors Financial Service Technology Conflict Within Buying center Buying Decision

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Precipitation

Start of the process has to be the realization

of the

need

, a problem that a purchase can

solve. The stimulation could be internal and

entirely routine.

It could be a planned new buy precipitated, for

example, by the implementation of expansion

plans or the imminent production of a new

product.

It could also be something more sudden and

dramatic than that, such as the failure of a

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Industrial Buying Decision Process.

Top Management Key decision Maker

Financial Team

Commercial Team ( Value engg, Relationship)

End Users ( R&D , Product design,

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Consumer Models : Conceptual Consumer models

which help in understanding the behavior from

information search to decision making while involved in

a buying process.

Consumer Models are : Economic Model

Sociological model

Psychoanalytic model

Learning model

Howarth Sheth model

Engel –Blackwell- Kollat

Model

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Economic model is on the principle that consumer

looks for maximum utility at minimal price.

Price effect. Deep discounting or minimum price tags

increases the consumption & demand .

Substitute effect. : More substitute products available,

lesser will be the demand of the original product.

Income effect. As the disposable income level increases

, the consumption level will also go up.

Short coming :

The model ignores the social & psychological impact

on the buying behavior , assumes the price is the only

factor which drives the buying behavior .

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Psycho analytic model :

Behavior of a consumer is determined by his strong desire & need.

The purchasing process is governed by motivational forces . Motivation stimulates people in to buying action.

Self Actualization Esteem (Recognition) Social(Affiliation) Safety (Security) Physiological ( Basic)

Sense of achievement & competence

Owning Power & Prestige Ego , status , success

Similar belief, status class etc

Assurance , Protection, stability Needs which are

important to consumer

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Learning Model.

Consumer Learning : A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his future behavior . .

Components of learning process are :

Drive Clue Response Reinforcement Retention. Drive : strong stimuli which impels action.

Clue: An object in the stimuli which elicit a specific response. Response : Behavioral response in the from of physical terms , Attitudes, Perception etc.

Reinforcement :Environmental events which increases the

psychological process of motivation, increasing the likelihood of specific response.

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Classical conditioning process of learning :

Behavior becomes dependent on certain stimuli or events in the environment. A consumer is said to have learned , when he or she responds in a predictable manner to a known stimulus. [ Also known as Stimulus - Response ( S -R) theory of association )]

When a consumer learn to connect between stimuli & response it is Called behavior .This happens due to repetitive association between Stimulus & response .

Unconditioned stimulus Unconditioned Response [ Reflex

( piece of meat) ( Spontaneous reaction) Dog Action]

Conditioned stimulus

Conclusion : Conditioned Conditioned response stimulus

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Eg : Desirable association for Johnson soap Ad

Milk & Rose

Petals Little toddler Johnson _soap

Unconditioned stimuli

Pure , Natural, Soft & tender

Soft & tender Skin care

Symbolic of

natural & purity

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Not for circulation : for internal use only 33 Sociological model. Consumer Family members Friend circle

Peers & colleague In an organization Close associates

Target market is influenced by roll models of the society who influence the buying behavior . Marketer’s analyze aspiration level within the target segment & create the same in the brand to appeal them towards the brand.

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Howarth Sheth Model : Consumer learning & behavior shaping happens due to perception & attitudes which they form about a brand leading to a favorable decision making.

Hence a input stimuli leads to learning constructs , which drives the behavioral output , which in turn is influenced by external variables. Input stimuli 1. Tangible ( significant stimuli) 2. Intangible ( Symbolic stimuli ) 3. Social group ( Social stimuli ) Stimulus Ambiguity Attention Overt Search Perceptual

Bias Motives Attitude

Intention Purchase Brand comprehension Attention INPUT _Perpetual Constructs Learning Constructs Output

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35 E-B-K Model

It comprises of 4 components :

Information process , Control unit ,Decision process Environment influence Need stimuli Exposure Attention Comprehension Retention Evaluation criteria Perception Attitude Income Culture Social class Others Internal & external search Of alternate evaluation Purchasing Process Post purchase evaluation

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Consumer segmentation on the basis of lifestyle &

Aspiration helps to understand the persuasive motive . ( Psychographic segmentation )

Aspiration Soico culture Value

Inner consumer core

Life stage Geographic Demographics

Situational Outer core

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Bajaj Scooter captured complex reality of existence of middleclass India .

As it is said , if an Indian middle class man were to be reborn as a product , chances are that it would be a Bajaj scooter.

Squat, belly going to pot , wearing grey safari suit, undistinguished, but resourceful. With his wife

perched uncomfortably at the back , Gudiya squeezed between the two, & Cheeku standing in front.

The product literally & metaphorically at the heart of Indian middleclass.

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Consumer Segmentation Approach

AIO inventory ( Activity , Interest , Opinion )

SEC classification

VALS –II

LSM

Prism

Monitor Mindbase

Global Scan

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Family Life stage is studied at :

•Bachelor hood status •Married couple ( DINK ) •Parent hood ( DISK)

•Post parent hood •Dissolution

•Parent hood is further classified in to Full nest 1 , 2 & 3

stage .

•Post parent hood is classified in to Empty nest 1 & 2

Each stage depicts a distinct buying behavior & is

influenced by other factors which drives the priorities & motivation.

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Consumer segmentation

Changing trends: Children hold strong buying power in

key segment. ( Indian kids rank 3rd worldwide in influencing the buying decision)

Segment Children Decision maker.

Soft drinks 33.6 %

Health drinks 31.4%

Tooth paste 30.5%

restaurants 28.6%

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Sub

Segmentation of Kid consumer : Segment: 1 Infant ( 1 -12 Months) 2. Toddler ( 13 -48Months ) 3. Tooth ager ( 4- 5 Yrs )

4. Toonagers ( 6-8 Yrs ) 5 Tweenager ( 8-12 Yrs ) 6 Teenager, (13- 19 Yrs )

[parameters : Age, intelligence( IQ) level , Family group belonging , societal influence , point of purchase ,

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1. Hyper Parenting : Over scheduling children’s lives with extra curricular activities & push them hard for academic excellence.

2.Helicopter parenting : Habit of the parent to hover over their children obsessed with ensuring their safety . Builds

protective attitude where parents keep tabs on their

children’s every move.

3 Stealth Parenting

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3 Stealth Parenting

4. Authoritarian Parenting

These parenting process influences the child‟s development in terms of how they involve buying with age. Their

knowledge, attitudes to a brand , pricing & decision making power etc .

The decision making differs at every stage: 1. Perceptual stage ( 3-7 Yrs )

2. Analytical age ( 7-11 ) 3 Reflective age 11-16)

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45 A research conducted by Disney India & Group M India revels that new age Indian kids( 4-14 age group) are Tech savvy , worldly wise ,opinionated & success oriented.

They articulate the brand preference , influence in the decision making & also make independent decisions on brands.

Data shows that 51% of the total population

researched ( 34000 children across Mumbai, Delhi,

Kolkata, Banglaore, Ludhiana, Ahmedabad, Hydrabad, Chennai, Lucknow & Chandigarh) accompany their

parents for shopping. 66% handle money independently.

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Socio- Economic Classification. SEC Segmentation . SEC divides the house hold on the basis of the CWE’s occupation & education.

Assumption : The co- relation between education &

occupation was that better education will have organized

employment opportunities, hence high income. However it failed to explain the buying behavior of a consumer who buys Dove soap – a luxury product for Rs 30, but not well

educated .

Accordingly the consumer class will be categorized as : SEC-A1 , A2 , B1, B2 C1 …..D

The same can further be named as : Premium class , Middle

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Other approaches .

Unilever’s proprietary segmentation model. Living

standard measurement index. ( LSM) index as an

alternative to SEC . It is based on 25 parameters

putting consumers in to 18 clusters.

Parameters are :

Income , Occupation, Durable ownership( daily to

luxury ) , Work environment , media choice ,

entertainment preference , cultural sub cultural &

cross cultural factors .

Nup scale ( Nielson Upscale ): It is based on usage

of 12 consumer durable products from different

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According to a research study , women class has progressed

from one Socio economic category to the next on the parameters like traditionalism /self sacrifice to westernization / individualism .

SEC D

Seeking economy sacrificing & social conservatism

SEC C Religious

Anxious & Worried about change.

Seeking equality ,quality conscious disturbed by vulgarity SEC B

Seeking Luxury Out going

Fashion conscious Bold & librated.

SEC A Traditionalism Modern/Westernization S e l f S a c r i f i c e I n d i v i d u a l i s t i c

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Discovering new identity in Urban woman

The quint essentional self sacrificing Gharelu married Indian urban woman consumer is increasingly morphing in to independent minded assertive entrepreneurial class. ( Research study conducted by Lowe Asia – Pacific )

Psycho graphically charted consumer segmentation

Modern ( willing to embrace new values)

Traditional ( Be contended /compromise with old system) Stability seekers Change seekers Ms/Mrs Hasmukh 27%

(Role model Didi )

Mrs Meri Awaz Suno (Attention seekers) 31% Ms/Mrs Gharelu 18% ( Home pride) Mrs Hey Bhagvan Moaner Ms/Mrs Pataka Cool Ms /Mrs India

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Mrs Garelu is just 18% of the total sample size. Who are they ? Home pride . A perfect home maker .

Behaviour :

Uses parachute oil for kids & self , Fair & lovely being a part of her make up kit. She is proud of her washing machine & water filter. She is likely to buy a microwave owen or expensive home appliances. But she prefer to use branded sanitary napkins. Her husband relies heavily on her.

Social : She hate wasting money on outing , eating entertainment. Entertainment is all around Jassi & K series .

Belief : Strong believer of good education to her kids. Choosing any unknown New career by the family member is not acceptable.

Attitude : Family is more important & believes that star determine her fate. Value : Respect can never be compromised. High level of tolerence .

Never address the husband by name .( “Munne ke papa, Suno ji” type ) . Do not question the roots of tradition, rituals. They are always for good. Just adapt it.

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Fast moving trend is seen from Mrs Gharelu to Mrs Has mukh Who is Mrs Hasmukh ?

Attitude: A lively cheerful & positive personality. She treats her life like a must win contest . A friendly nature . Talking to a stranger of opposite sex & accepting him as a friend is normal . A perfect wife, mother , daughter in law , friend , independent

minded , divides her time between husband , kids , family herself, & her friends. Not

self sacrificing

Belief : While she is religious , she does go to beauty parlour with equal vigour. Usage : She likes to buy things which make her household chore more convenient . Microwave Owen, Dishwasher, Vacuum cleaner , Oriflame conditioner, foot cream, Nourishing night cream products .

Social gathering , party with friends , family etc.

She encourages her kid to be more independent, explore & peruse their career where you can deliver your best result, like she herself would like to do. She likes to be seen as trendy .

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Mrs Pataka:

Characterised by the style quotient , acts cool & talks about doing what other women don‟t. Take pride in sending their kids to the best school in town. Style matters in terms of regular visit to palour, PTA , Social meet , week end party & dining , need varieties of perfume for different occasion. She expects her husband to consult her in all decisions & upholds her individualism.

Attention seekers: Stifled by the various restrictions & norms imposed on her craves for attention, likes when others empathise with her .Her husband does not necessarily take her opinion in all home related issues. Saving is not her forte. Will use fairness cream , oil her hair on daily basis. She hopes high expectation on her son& daughter. She does not mind using unbranded or lesser known brands still feel good about herself.

She feels miserable about her inability to send her kids to expensive schools, lavih spending .She believes that fate is determined by her stars.

She wants to come out of middle class dudgery. More of self sacrificing type & wants to move away from joint family class.

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The HEDONIC TREADMILL ( Daniel Kahneman- Nobel Prize winner Economist & Psychologist)

Studies show that happiness rises with income up to a certain point at which the basic needs are met, after which it stagnates as

aspirations also rise with income.

Income Consumer

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Rural , Urban , Global , Semi rural , Semi Urban leading to life style, climate , population etc.

Institutional segmentation : Large corporate segment ( Global & Domestic) , SME , SOHO , FTU Govt, PSU etc

Summary of Profiles

West North

Religious yet outward centric Impressionable Worried about change Conservative Materialistic value

South East

Quality conscious Anxious about future Guilt if spending on self. Bold , more librated, Accept society as it is , Optimistic Discontented

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Role of culture in

consumer behavior

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Culture

Culture is part of the external influences that impact the consumer. Culture represents influences that are

imposed on the consumer by other individuals.

Culture is a complex study which includes knowledge, belief, art, morals, custom, and any other capabilities

and habits acquired by a person as a member of

society Culture, as a "complex whole," is a system of interdependent components.

Knowledge and beliefs are important parts.

•In U.K exposed hands or legs among women in formal , social gathering is reflected immoral.

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In Japan, on the other hand, groups of men and

women may take steam baths together without

perceived as improper.

What at least some countries view as moral is in fact

be highly immoral by the standards of another

country.

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Culture has several important characteristics:

(1) Culture is comprehensive. This means that all parts must fit together in some logical fashion.

(2) Culture is learned rather than being something we are born with.

(3) Culture is manifested within boundaries of acceptable behavior.

(4) Culture is gratifying & persistent .

(5) Culture is integrated & organized.

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Culture can be viewed from independent levels as: 1. Ideological systems. : Mental system consisting of ideas,

belief, values & ways of reasoning.

Cognitive ( beliefs, customs)

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2. Organizational system ( Family & Social class ) .It coordinated behavior .

3. Technological system : ( Skills & techniques used to behave in a particular way)

Variation in culture happens when the values ,norms belief , moral, ritual, custom , Tradition etc influencing ideological , organizational & technological system are questioned by the consumer for its existence & sanctity to be followed.

When these factors are vulnerable to change , variation in culture is natural process.

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61 Nonverbal factors influencing cultural variation

SYMBOLS COLORS

NUMBERS

What is Semantic & symbiotic culture ?

Deer is a Symbol of homosexuality in Brazil . Owl Symbol of wisdom in US

Number 4 is in auspicious in Japan & 10 & 13 th in south India etc.

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Culture, Subculture , Cross culture influence in

Buying behavior

Ideological system Organizational system

SUB Cultural influence

Cross cultural influence

Ethnic Religious

Nationality legal barrier

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Understanding the culture of a market can help to formulate more effective

communication strategy to overcome the barriers to acceptance.

Low diffusion rate of a product is primarily due to resistance to accept a concept on

account culture .

All teaser communication campaigns are built to break the cultural barriers .

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Consumer personality &culture Value Rituals Heroes Symbols Practice Family values

Hush Hush Culture Cloth usage Confident ,

Independent & freedom

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• Perception is psychological mediation. It refers to the process of organizing and interpreting sensory

information.

Perception is the process in which the brain selects, organizes, and interprets neural messages into a

psychological experience on the basis of cognitive

ability and soico cultural values governing in the society .We are aware of the meanings that brain generates

from sensory information.

Perception enables us to recognize meaningful objects, pictures, faces, language, etc & interpret the same the way we want.

What is the role of perception in consumer buying ? Mind base positioning of product or service .

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Sensory stimuli

Visual , Audio , Taste, Smell, Touch LBS RBS

Sensation drives perception.

Marketing science behind perception management is to identify right sensory stimuli which would invoke desired

decision within consumer ( logical or abstract ) . This depends on the positioning objective .

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A research presented by scientist Martin Lindstrom reveal the conceptual essence of senses as a source of attitude formation and change.

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69 While Sensation is a physical process of converting stimulus energies, without sensation, there would not be perception.

Perception co-relates , integrates & comprehends the various sensations & information received . It is formed by both physiological & psychological

factors.

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Perceptual constructs

Stimulus Perceptual bias

Perception

ambiguity

Stimulus ambiguity : Interpretation of information provided according to selective preference.

Ambiguity happens due to social values prevailing in the society acting as a constraint for accepting the product/service.

When the community values wins over social values, the product gets accepted in the society .

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Perceptual bias : Attending to the selective information as a result of one‟s own frame of reference.

Perception is a process of selecting, organizing & interpreting or attaining the meaning of what is happening in the environment.

Positioning of emergency contraceptive pill as

“ Protection

when things go wrong at the heat of the moment”.

In the backdrop of social norm which claims the

communication is obnoxious ( promotes premarital sex &

acclaimed moral looseness ) , the success comes as it helps to overcome the mass murder of life and self protection.

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A threshold refers to a dividing point between energy levels that do and do not have a detectable effect. . What happens to one’s threshold as the stimulation increases? As the stimulus intensity increases, the probability of detecting a stimulus also increases.

Absolute thresholds define the boundaries of sensory capabilities. An absolute threshold refers to the intensity level at which the probability of detection is 50 percent. What are some of the lowest absolute thresholds

discovered in psychophysics research?

1 visual absolute threshold is being able to see a candle

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“Weber‟s Law.

Weber‟s law states that the magnitude of differentiation is a constant proportion of the size of the initial stimulus. The constant proportion is called “Weber‟s Fraction.”

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Techniques to form good

Perception within consumer :

• Signal detection

• Just noticeable differences (JND’s) • Subliminal perception

• Sensory adaptation • Selective attention

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Merlyn : Wao ! What a position ? Bob : What a figure .

James : Irresistible, I am excited. Sandra : I wish I am in that position. Tom : I envy you ?

Apply for the position of Creative Designer in life style apparel segment . Annual emolument : 16 Lacs Only lady candidate may apply.

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JND : Just Noticeable Difference . ―JND‖ refers to the smallest difference in the amount of stimulation that a specific sense can detect.

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Selective attention refers to our focusing on a

limited aspect of all that we comprehend, enjoy ,

and experience .

This explains why cell phones are dangerous

when driving. We focus on the phone

conversation and not the other sights and

sounds on the road.

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Subliminal perception

• Subliminal perception refers to “below threshold.”

Subliminal perception is the registration of sensory

input without conscious awareness. subliminal

perception techniques are used by media to grab the

attention using money , sex as strong stimulator.

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Behavioral researchers agree that sought benefits and

consumer perception are the main antecedents of brand

preferences, which is as follows:

BP =∑ PA + CP

Where:

BP - Brand preferences PA - Product attributes

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P

E

R

C

E

P

T

I

O

N

Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation Subliminal perception External Factors Intensity& Size Position Contrast Novelty Repetition Movement

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Both internal & external factors influence the perception

of the buyer

Blind test of Coke & Pepsi

Pepsi preference population 51 % coke 44 % equal /can‟t say 5%

Identity revealed test

Pepsi 23%

coke 65%

equal/can‟t say 12%

Conclusion : Both internal & external factors influence the way in which an individual perceives a product or brand.

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Perception drivers in consumers

Social factors Psychological factors Cultural factors Personal factors What motivates the consumer's Life style What buyer‟s feel

acceptable norm in the society

Core values which drives the consumer

The way consumer

relates & draw meaning of some thing.

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Semantic perception and synthetic perception concepts.

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Consumer Attitude

In consumer behavior context , attitude is a learned pre deposition to behave in a consistently favorable or unfavorable way with

respect to a given stimuli. (Brand )

Learned deposition refers to information source , perception ,

experience , exposure to media etc which helps to build an attitude & gives momentum to the behavior .

The momentum can be negative or positive.

Consistency refers to the voluntary decision ( Compulsive buying ) which makes the consumer to purchase the product/ service /

brand till such time there are no intervening factors which force the consumer to change the attitude.

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Two school of thoughts in Attitudinal theory

1 . Insights on product usage :

Attribution theory focuses on how consumer assign causality to events and how they form or alter attitudes as an outcome of

assessing their own behavior, or the behavior of other people or things.

Dove communication is built on the product insight that soap dries skin , but Dove doesn‟t because of its moisturizing content to

nourish the skin.

Cognitive dissonance theory : Anglo Saxon View ( Western theory) and Non Anglo Saxon View ( Eastern cultural rich view )

Theory suggests that the conflicting thoughts, or dissonant

information, that follow a purchase /acceptance decision might

propel consumers to change their attitudes to make them consonant with their actions.

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Anglo-Saxon view : It is one big market world over and consumers across are same with same motivation . Nike‟s approach to market with “Just Do it” is based on the

fundamental that to win is a common motivation across. Non Anglo Saxon View ( Eastern cultural rich view )

Among many others , brands that has successfully shifted the attitude of market are :

Fair & Lovely ( HUL) i -pill ( Cipla ) , Cadbury dairy Milk etc .

Failed to shift the attitude are :

Communication on Amul Macho inner wear & Chocolate flavor Axe effect male deodorant .

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While promoting male contraceptive products are unobjectionable, why emergency contraceptive pill for women invited obnoxious response?

Can marketer‟s create an attitudinal shift towards mild alcohol filled chocolate in Indian market ?

Can marketer‟s create an attitudinal shift towards Toilet roll paper in Indian market ?

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The toilet paper is a large industry in US . Twenty-six billion

rolls of toilet paper, worth about US$2.4 billion, are sold

yearly in America alone. Americans use an average of 23.6 rolls per capita a year.

Moist toilet paper was first introduced by the Kimberly-Clark

in the United Kingdom in the 1990s, and in the United States

in 2001, two countries in which bidets are rare. It is designed

to clean better than dry toilet paper after defecation.

The 16th century French satirical writer François Rabelais in

his series of novels Gargantua and Pantagruel, discussing

the various ways of cleansing oneself at the toilet, wrote that:

"He who uses paper on his filthy bum, will always find his ballocks lined with scum", proposing that the soft

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The disposable paper products market in India is limited to sanitary protection and incontinence

products, which continue to form the bulk of the sales of disposable paper products in India. Mass media

advertising as well as below-the-line consumer outreach activities are the key growth drivers

alongside rising concerns about health and hygiene as well as growing purchasing power .

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Tri component Attitude model: 1 Cognition component 2 Affective 3 Conation Conation Cognition Affect

An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking & induce a stimuli for buying known as tri-component model. .

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1.A positive or negative belief ( myth, Superstition, taboo, strong reference opinion, Right or wrong product/service information from authentic source ) As consumers hold many beliefs about a product or service, it is difficult to decide which belief influence the buyer‟s attitude most.

Hence Multi-attribute ( known as the Fishbein) Model attempts to summarize overall attitudes into one score using the equation:

For each belief, take the weight or importance (Wi) of that belief and multiply it with its evaluation (Xib).

(98)

For example, if a consumer believes that coffee can help to

overcome metal fatigue by partially energizing ,hence gives the importance 4 on a scale of 1 to 7.

He or she believes that coffee can energize better than tea, hence rates 6 on a scale from 1 to 7. Thus, the product here is 4(6)=24. On the other hand, he or she believes that coffee consumption is bad for health, hence rates 2.

Coffee has high caffeine content hence bad for health, thus rates 1 . Now we have 2(1)= 2. Had these two beliefs been the only

beliefs the consumer held, total, or aggregated, attitude would have been 24+(2)= 26. If required the scale can be extended from -7 to +7 .

Since the second belief & evaluation factor is weak, it will negate the buyer‟s decision towards coffee.

(99)

Affect . Consumer‟s feeling & emotions associated with the brand.

Consumers hold certain feelings toward brands . These feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains), but there may also be feelings which are relatively independent of beliefs.

Behavioral Intention. The behavioral intention is what the

consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g., although a consumer does not really like a restaurant, he or she will go there because it is a hangout for his or her friends.

(100)

The Attitude shift is for : 1.Utilitarian Function 2.Ego-defensive Function 3.Value-expressive Function 4.Knowledge Function 1. Utilitarian Function

Favorable attitude towards a brand happens because it has high usage imagery . Marketers may stress the utilitarian feature or may suggest uses of the product that may not be obvious.

2. Ego-defensive Function

Products that we purchase to protect our self-images, to replace our sense of insecurity with personal confidence.

(101)

3. Value-expressive Function

Consumer's express personal values through the brands they

purchase and own .Marketers often attempt to identify their brands with these values.

“Fairness is a symbol of beauty & helps to gain success corporate” .

4. Knowledge Function

Consumers feel the strong need to know and understand how the brand can be put to application or support & justify her decision of buying .

(102)

Attitude change strategies

Change Belief ( Add belief , Change currently held , change importance of belief.) Change Affect Change Behavior Approach 1.Comparative advertising 2 Hyperbole statement .

(103)

103

Attitude & persuasion

Persuasion : A series of psychological processes mediating

perception , comprehension , agreement , retention , retrieval & decision making using vital cue.

Primary route of persuasion .

(104)

Secondary route to persuasion is more acceptable while evaluating and structuring emotionally based attitude to a

brand as it is possible to affect consumer‟s attitude by simply changing his convictions after the impact on his emotions.

Communication, directed towards senses will attract

consumer‟s attention which will change existing convictions, behavior and ultimately attitude. Such conclusions forms an assumption that the formation of consumer attitude to a brand, applying secondary route of persuasion is an appropriate

method when the level of involvement in communication is low as this does not require a lot of effort form a consumer‟s side.

(105)

105 Elaboration Likelyhood model :

( ELM) explains the way the consumer respond to communications or messages.

According to ELM attitude formation or change process

depends on the amount & nature of elaboration or processing of relevant information.

ELM is a function of Motivation

Ability to process the message.

Motivation depends on the involvement , personal relevance, individual needs & arousal levels.

Ability to process depends on knowledge & its relevance & opportunity to use.

(106)

Message Motivated to process Ability to process Persuasion Cue present No No Yes Yes Cognitive processing Cognitive structure Change Attitude change Neutral Temporary

Attitude shift Retain original _Attitude

Yes

No

ELABORATON PROCESS

(107)

(108)

Client: Asian Paints

Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software to choose and select 1,511 shade combinations, designed to reach consumers in a direct `dil se' style.

Advertising Objective: Position Asian Paints Colour World as the „one stop paint shop‟ with all the colours one could want. The advertising should create enough interest in potential

consumers to ensure that they come to the Asian Paints Colour World outlet or at least call the Asian Paints helpline.

(109)

Target Audience:

Demographics

Region: India, urban population

Occupation: Service/working professional/self-employed Gender: Insignificant

Religion: Insignificant

Social class: Upper Middle and upwards SEC: B and upwards

Family life cycle: Middle aged Behavioural

Occasions: When looking to paint the interiors of his house

(usually there is an upsurge with new construction and during festive seasons like Diwali and Holi)

User status: First time user Loyalty status: Not defined

Readiness Stage: Relatively informed

Attitude toward product: Low-involvement

(110)

·

Consumer Research.

Consumer research noticed that during the

phase of getting their house painted, consumer

look for just the right shade and are prone to

collecting samples to visually show their

painter exactly what they had in mind. But

always they are unable to express verbally.

Using this insight , the concept of

mera wala

pink

,

meral wala cream

and

green

was

(111)

(112)

Core thought

• Asian paints is about people who invest

emotional energy in creating their homes

• Asian Paints is about homes which reflect

(113)

Brand Image

Brand image is the collective perceptions of customers

about an organization‟s brand positioning efforts

An organization's positioning efforts create a brand‟s

image by overcoming

information clutter

, in most cases

minimal interest

, and

limited mental capacity

.

The goal is to produce a “road map” of how and where

the brand fits into a person‟s cognitive framework.

(114)

Brand Loyalty :

Brand loyalty is a function of

attitudes

and

behavior

. It is an attitudinal predisposition

favoring a brand and a pattern of purchasing

that brand regularly.

(115)

(116)

(117)

117

McGuire‟s theory of personality & persuasion .

It focuses two aspects : 1. Reception ( Perception & comprehension )

2. Yielding ( agreement )

It states that the personality is related to these two aspects in

opposite way.

The personality trait which increases the reception decreases yielding.

Attitude change ( AC) is a function of a multiplicative relationship between reception ( R) & Yield (Y) .

(118)

Since IQ is one of the important factor for persuasion, higher the IQ in a consumer the R factor is bound to be high. But the yield is low in this case because it requires rigorous evidence to influence. Ac= R X 0 = 0 Similarly when the IQ is low, R factor is low since individual finds it hard to understand the persuasive message . However the yield factor is high because he is gullible & accepts it easily .

(119)

Not for circulation : for internal use only 119 Attitude Change Reception Yielding Likelihood Of response

Not likely at all Very Likely

Low High

(120)

Central Vs Peripheral Route to persuasion.

Central route to persuasion: When an ad is interesting & relevant ie the consumer take time to understand it is said to follow a central route of persuasion. ( strong reason & argument to support & hold a particular attitude &opinion. )

On the other hand , peripheral route to persuasion implies, very little or effort to think, involve , or inclination. In such case the attitude

formation towards the brand is on the basis of peripheral clues .( back ground music , pictures etc. )

Exposure to AD Motivation to Elaborate

Peripheral Route

Ability to elaborate _Central Route High

(121)

121

.

Involvement = f ( Personal , situational , Product attribute )

High Product Involvement Low

Perceived brand differentiation High Low Learning Model Cognitive Affective Conative Dissonance Model Conative Affective Cognitive Low involvement model Cognitive Conative Affective

(122)

A research by Wharton marketing & Stanford

marketing professors Cassie Mogilner & J.Aaker

argues that when companies weigh which theme to be used while communicating the brand to invoke

attitudinal shift in consumer , Time theme over money theme proved more effective.

Further it was studied to what extend it is linked to

consumer’s personal experience, emotion and identity , which is responsible for attitudinal shift .

A lemonade stand experiment .

Conclusion of the experiment : Brands can cultivate consumer relationship by first considering how

consumers identify with the product ( through

experience or possession ) & then highlighting either the time or money spent accordingly.

(123)

123 Relationship of attitude with communication

Brand

communication

Belief about the brand Judgment about Brand Feeling about Brand Benefit analysis

Attitude towards the brand

(124)

(125)

Diffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures.

An individual or an organization/social system bases the type of decision on whether an innovation is

adopted/rejected.

The three types of innovation-decisions are: Optional innovation-decisions, collective innovation-decisions, authority innovation-decisions.

1.Optional Innovation-Decision

This decision is made by an individual who is in some way distinguished from others in a social system.( Role model)

(126)

In mid '80s the woman in the Surf Ad got a name - Lalitaji - and was brought to life on television by Kavita Chaudhary in a TV commercial with the tag line “ SURF ki Kharidari mai hi Samajdari hai ( It makes better sense to buy Surf)”. They were fighting a soapy detergent war against Nirma.

Nirma, in turn, had found an icon of its own in a young little girl swirling around in a skirt – the Nirma girl. The Ad jingle for Nirma was the clincher:

“Washing powder Nirma, washing powder Nirma Dudh si safeedi, Nirma se aaye

Rangeen kapda bhi khil khil jaye Thoda sa powder aur jhag dher sara Rekha, Jaya, Geeta aur Sushma

(127)

2.Collective Innovation-Decision

This decision is made collectively by all individuals of a social system.

3.Authority Innovation-Decision.

This decision is made for the entire social system by few individuals in positions of influence or power.

Five stages of innovation decision are :

knowledge, Persuasion, Decision, Implementation, confirmation.

(128)

What is online banking What motivates Online banking Does it enhance consumer’s present What will make him try? What motivates him to shift ?

(129)

Knowledge

In this stage the individual is first exposed to an innovation but lacks information about the innovation. Hence during this stage the

individual has not been inspired to find more information about the innovation.

Persuasion

In this stage the individual is interested in the innovation and actively seeks information/detail about the innovation.

Decision

In this stage the individual takes the concept of the innovation and weighs the advantages/disadvantages of using the innovation and decides whether to adopt or reject the innovation.

Implementation

In this stage the individual employs the innovation to a varying

degree depending on the situation. During this stage the individual determines the usefulness of the innovation and may search for

further information about it.

(130)

The rate of adoption is defined as the relative speed with which members of a social system adopt an innovation. It is usually measured by the length of time required for a certain percentage of the members of a social system to adopt an innovation

Adoption Curve : Adoption

Time

Due to initial resistance to accept the change in the daily life, social system will oppose the innovation , unless innovation is strongly

Adoption of an innovation follows an S

(131)

Hybrid corn was adopted only slowly among many

farmers. Although hybrid corn provided yields of about

20% more than traditional corn, many farmers had difficulty believing that this smaller seed could provide a superior

harvest. They were usually reluctant to try it because a

failed harvest could have serious economic consequences, including a possible loss of the farm.

Agricultural extension agents then sought out the most progressive farmers to try hybrid corn, also aiming for farmers who were most respected and most likely to be imitated by others. Few farmers switched to hybrid corn outright from year to year. Instead, many started out with a fraction of their land, and gradually switched to 100%

(132)

Forces which would work against innovation are : 1. socio cultural ( ideology of the market )

2. financial constraint 3. Technological culture.

Birth control pill is incompatible with strong religious

influences in countries heavily influenced by Islam or Catholicism .

Electric razor : Indian shaving skill is incompatible with the dry shaving concept mooted by the product.

(133)

The characteristics which determine an innovation's rate of adoption are:

(1) Relative advantage : It is the degree to which an

innovation is perceived as better than the idea it supersedes. The degree of relative advantage may be measured in

economic terms, but social prestige, convenience, and

satisfaction are also important factors. It does not matter so much if an innovation has a great deal of objective advantage. What does matter is whether an individual perceives the

innovation as advantageous. The greater the perceived

relative advantage of an innovation, the more rapid its rate of adoption will be.

(134)

(2) Compatibility is the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters. An idea that is incompatible with the values and norms of a social system will not be adopted as rapidly as an innovation that is compatible. The adoption of an incompatible innovation often requires the prior adoption of a new value system, which is a relatively

slow process.

(3) Complexity is the degree to which an innovation is

perceived as difficult to understand and use. Some

innovations are readily understood by most members of a social system; others are more complicated and will be adopted more slowly. New ideas that are

simpler to understand are adopted more rapidly than

innovations that require the adopter to develop new skills and understandings.