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The presentation is based on consumer behaviour & its marketing implications. It covers two topics:- Personality & Psychographics
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CB – UNIT 3
Unit 3THE INDIVIDUAL CONSUMER AND BUYING BEHAVIOUR AND MARKETING IMPLICATIONS
CONSUMER BEHAVIOUR PRESENTATION
PRESENTED BY:
NIKITA SANGHVIBHARAT MAHESHWARINIRMAL GAJJAR
CB – UNIT 3 STEVENS BUSINESS SCHOOL
CONTENT
1. Consumer Perception
2. Learning
3. Attitudes
4. Motivation
5. Personality
6. Psychographics, Values & Lifestyles
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Chapter 5
PERSONALITY
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DEFINITION
1. Those inner psychological characteristics that both determine & reflect how a person responds to his or her environment.
Source: Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th Edition.
2. Patterns of individual behaviour that are consistent & enduring
Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.
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THE NATURE OF PERSONALITY
Personality reflects individual differences
Personality is consistent and enduring
Personality can change
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Personality reflects individual differencesAn individual’s personality is a unique combination
of factors; no two individuals are exactly alike.
Personality is a useful concept because it enables
us to categorise consumers into different groups on
the basis of a single trait or a few traits.
Eg. Ethnocentrism (willingness to accept/reject the
foreign-made object)
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Personality is consistent and enduringMarketers learn which personality characteristics
influence specific consumer responses and attempt
to appeal to relevant traits inherent in their target
group of consumers.
E.g. Sister taking care of brother.
Though personality may be consistent, consumption
behaviour often varies considerably due to
psychological, socio-cultural & envt. factors that
affect behaviour.
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Personality can changeUnder certain circumstances, personalities change.
Personality change as a part of gradually maturing process.
Personality stereotypes may also change over time Personality convergence is occurring between men &
women
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PERSONALITY PERSPECTIVE
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Biological
Psychoanalytic
Dispositional
Learning
Humanistic
Cognitive
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Biological Perspective on PersonalityThere are three general thrusts to the biological perspective:
Many personality characteristics are genetically determined
Behavioural tendencies derive from our evolutionary history
Human behaviour produced is by a complex biological system (e.g. hormones, neurotransmitters)
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Psychoanalytic Perspective on PersonalityDeveloped initially by Sigmund Freud
Much of the explanation for human behavior, which is often bizarre and seemingly contradictory, lies largely hidden in the unconscious, and is the result of how a person negotiates conflicting, deep-rooted desires and instincts.
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Dispositional Perspective on PersonalityA dispositional approach to personality emphasizes:
“qualities that people carry around with them, that are somehow part of them” (Carver & Scheier, 2000, p.54)
“a person’s inherent qualities of mind and character”
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Learning Perspective on Personality Personality is an accumulated set of learned tendencies over a
lifetime (Carver & Sheier, 2000).
Personality is susceptible to molding, grinding, and polishing by �the events that from the person’s unique and individual history �(Carver & Scheier, 2000).
Assumption: All behaviour is learned through experiences and by interaction with the environment.
The learning perspective views a person as entering the world as a tabula rasa (blank slate), although it acknowledges that there are instincts and pre-set responses to stimuli, as well as a preference for pleasure and a desire to avoid pain.
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Humanistic Perspective on Personality
Humanism is a philosophical movement that emphasizes
the personal worth of the individual and the centrality of
human values.
The Humanistic approach rests on the complex
philosophical foundations of existentialism, and
emphasizes the creative, spontaneous and active nature
of human beings.
This approach is very optimistic and focuses on noble
human capacity to overcome hardship and despair.
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Cognitive Perspective on Personality The cognitive perspective is that personality is a person's
mental organization.
People are who they are because of the way they think, including how information is attended to, perceived, analyzed, interpreted, encoded and retrieved.
People tend to have habitual thinking patterns which are characterized as personality.
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REVIEW OF PERSONALITY PERSPECTIVES
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Perspective Strength Weakness
BiologicalTestable theories with increasing validity & efficacy
Doesn�t grapple with �personhood� & sense of personal self
Psychoanalytic Attention to unconscious
Unverifiable?Sexist?
Dispositional
Good individual assessments techniques; Trait vs. Type approach
May label people on basis of scores; Overly-reliant on self-report instruments
Learning Scientific analysis & practical application
Overlooks IDs present from birth
Humanistic Optimistic, growth-oriented
Ignores scientific method
Cognitive Captures active nature of human thought Ignores unconscious
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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian Personality Theory
Trait Theory
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Freudian TheorySigmund Freud’s Psychoanalytic Theory of
Personality
Base: Unconscious needs or drives
(biological drives) are at the heart of human
motivation & personality
Id, Superego & Ego are the three interlacing system.
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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian
Personality Theory
Trait Theory
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Freudian Theory
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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian
Personality Theory
Trait Theory
EgoId
Superego
Id• Warehouse of primitive & impulsive drives• No concern for the specific means of
satisfactionSuperego• Individual’s internal expression of society’s
moral & ethical codes of conduct• Restrains the impulsive forces of the id
Ego• Individual’s conscious control• Balance between id & superego
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Freud’s View of the Mind: The Mental Iceberg
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ID
SUPEREGO
EGO
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Neo-Freudian Personality TheorySocial relationships are fundamental to the
formation & development of personality
1. Alfred Adler:
Human beings as seek to attain various rational goals
Much emphasis on the individual's efforts to overcome feelings of inferiority
2. Harry Stack Sullivan:
People continuously attempt to establish significant and rewarding relationships with others.
Concerned with the individual's efforts to reduce tensions, such as anxiety.
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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian
Personality Theory
Trait Theory
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3. Horney’s theory : the CAD
Compliant: move towards others
Aggressive: move against others
Detached: move away from others
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Neo-Freudian Personality Theory
THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian
Personality Theory
Trait Theory
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Trait TheoryOrientation: primarily quantitative or
empirical
Measurement of personality in terms of
specific psychological characteristics called
trait
Consumer Innovativeness
Consumer Materialism
Consumer Ethnocentrism
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THEORIES OF PERSONALITY
Freudian Theory
Neo-Freudian
Personality Theory
Trait Theory
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PERSONALITY & CONSUMER DIVERSITYMarketers Implication:
Understand how personality influences consumption
behaviour because such knowledge enables to better
understand consumer & to segment and target consumers
who are likely to respond positively to their product or
service.
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CONSUMER INNOVATIVENESS & RELATED PERSONALITY TRAITS
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Personality Traits
Consumer Innovati-veness
Dogmatism
Social Character
Need for Uniqueness
Optimum Stimulation
level
Variety or Novelty Seeking
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Consumer InnovativenessLinked to the need for stimulation, novelty seeking
& the need for uniqueness
Global Innovativeness: Exist independent of any
context
Domain Specific Innovativeness: More narrowly
defined activity within a specific domain or product
category
Innovative Behaviour: Pattern of actions or
responses that indicate early acceptance of change
& adoption of innovations.
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DogmatismMeasurement of the degree of rigidity that
Individuals display toward the unfamiliar & toward
information that is contrary to their own established
beliefs
Eg. Mc Donald’s ad campaign: Be open to new
Possibilities (appeal to low-dogmatic people)
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Social CharacterTrait that ranges on a continuum from inner-
directedness to other-directedness
Inner- directedness: tend to rely on their own inner values or standards in evaluating new products
Other-directedness: tend to look to others for
guidance
Eg.: Apparels
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Need for Uniqueness
High NFU –
more receptive to make unique choice
not concerned about being criticized by others
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Optimum Stimulation LevelsSome prefer simple, uncluttered, calm envt.
Others prefer novel, complex & unusual experience.
High OSLs –
Engage in exploratory behaviours
Greater willingness to take risks
To try new products
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Variety or Novelty SeekingTypes of consumer variety seeking Exploratory purchase behaviour
Switching brands to experiment
Eg. Soaps, Shampoos Vicarious exploration
Securing information about a new or an alternative
Eg. Kinetic Honda-emphasized on durability Use innovativeness
Using an already adopted product in a new way
Eg. Using washing machine for making lassi
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COGNITIVE PERSONALITY FACTOR
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Consumer behaviour
Need for Cognition
Visualizers versus
Verbalizers
•Measures a person’s craving for or enjoyment of thinking
•High NFC interested in rich-in product related information or description
•Low NFC are likely to be attracted to the background or peripheral aspect of an ad.
Need for Cognition
•Visualizer: prefer visual information & products that stress the visual
•Verbalizer: prefer written or verbal information or product
Visualizers versus
Verbalizers
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CONSUMPTION & POSSESSION TRAITS
CONSUMER MATERIALISM• Distinguishes
between individuals who regard possession as essential to their identities & their lives and those for whom possessions are secondary
FIXATED CONSUMPTION BEHAVIOUR• Realm of normal &
social acceptable behaviour
• Do not keep purchase of interest a secret
COMPULSIVE CONSUMPTION BEHAVIOUR• Realm of abnormal
behaviour• Addictive
consumption
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BRAND PERSONALITY Consumers attribute personality-like characteristics to
different brands Provides emotional identity for brand
Functional: Dependable or rugged Symbolic: The complete man
Brand Personality Strong & Favourable Brand Strength
Eg.: Limca = Freshness
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BRAND PERSONALITY FRAMEWORK
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Sincerity•Down to-earth•Honest•Wholesome•Cheerful
Excitement•Daring•Spirited•Imaginative•Up-to-date
Competence•Reliable•Intelligent•Successful
Sophistication•Upper Class•Charming
Ruggedness•Ourdoorsy•Tough
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BRAND PERSONIFICATIONRecast consumers’ perception of the attributes of a product
or service into a human-like character
Eg. Scotch Brite: a helping hand.
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PRODUCT PERSONALITY ISSUESGENDER
Often used for brand personalities
Some product perceived as masculine (coffee & toothpaste) while others as feminine (bath soap & shampoo)
GEOGRAPHY
Azctual locations like banarasi saree and Arizona iced tea
Fictitious names also used such as Hidden Valley and Bear Creek
COLOR
Color combinations in packaging and products denote personality
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PERSONALITY & COLOURPersonality factors associated with specific colours
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COLOUR PERSONALITY TRAIT
Blue Commands respect, authority
Yellow Caution, novelty, warmth
Green Secure, natural,
Red Exciting, passionate, strong
Orange Powerful, affordable, informal
Brown Masculine, Informal & relaxed
White Goodness, purity, delicacy
Black Sophistication, power, authority
Silver, Gold, Platinum Regal, Wealthy
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SELF & SELF-IMAGESelf-image of perceptions of self related with purchasing
behaviour of an individual
Consumer tend to approach products with images that
could enhance their self-concept
ONE OR MULTIPLE SELVES:
A consumer who acts differently in different situations or with different people
E.g.: A person is likely to behave in different ways at home, at work or with friends.
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The Make-up of the Self-Image
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• How consumers in fact see themselvesActual Self-Image
• How consumers would like to see themselvesIdeal Self-Image
• How consumers feel others see themSocial Self-Image
• How consumers would like others to
see them Ideal Social Self-Image
• How consumers expect to see themselves at some specified future time
Expected Self-Image
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The Extended SelfInterrelationship between consumers’ self-images & their
Possessions
Human emotions can be connected to valued possessions.
Possessions can extend the self in a number of ways:
1. Actually, by allowing the person to do things that otherwise would be very difficult to accomplish
2. Symbollically, by making the person feel better or ‘bigger’
3. By conferring status or rank
4. By bestowing feelings of immortality
5. By endowing with magical powers
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Chapter 6
PSYCHOGRAPHICS, VALUES & LIFESTYLES
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LIFESTYLE DEFINITIONLifestyle (Also known as psychographics):Consumers’ modes of living reflected in their
activities,interests & opinions
Source:- Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent Publishing Co.
Activities: How people spend their time
Interests: What people consider important in their
environment
Opinions: What people think of themselves & the world
around themBATCH 2009-2011
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LIFESTYLE DEFINITIONConstellation of individual characteristics that
reflect certain behaviour – participation in group
activities, hobbies
Source: CB, Pondicherry University
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Activities
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ACTIVITIES
Work
Hobbies
Social events
Shopping
Sports
Entertainment
Vacation
Club Membershi
p
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Interests
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INTERESTS
Job
Family
Community
Fashion
Media
Achievement
Home
Food
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Opinions
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OPINIONS
Personal Relations
Social issues
Business
Economics
Products
Education
Politics
Future
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LIFESTYLE IMPACTS
• What type of buying behaviour is preferred?
• Foundation of time use & time preferences
• Patterns of consumption are based on lifestyle
• People sort themselves into groups based on
what they like to do – sports, reading, fishing,
music enthusiasts
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Value & Lifestyle Survey - VALS
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Principle oriented
Statusoriented
Actionoriented
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VALS• Innovators: Successful, sophisticated
• Thinkers: Mature, Satisfied, Comfortable & Reflective
• Believers: Strong Principles, Proven Brand
• Achievers: Career Oriented, Practical, Premium Products
• Strivers: Trendy, Funny Material Wealth
• Experiencers: Impulsive, Young, Active, Seek Risk
• Makers: Constructive, Self-sufficient
• Survivors: Narrow-focussed Life, Concern about Safety & Security
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Ideals Motivated
Achievement Motivated
Self-expression Motivated
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SOCIAL CLASSFactors Showing Social Class Differences
Authority
Income
Occupations & Achievement
Education
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CHARACTERISTICS OF SOCIAL CLASS
• Persons within a given social tend to behave
more alike.
• Social class is hierarchical.
• Social class is not measured by a single variable
but is measured as a weighted function of one’s
occupation, income, wealth, education, status,
prestige, etc.
• Social class is continuous rather than concrete,
with individuals able to move into a higher social
class or drop into a lower class.BATCH 2009-2011
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PROMINENT SOCIAL CLASS
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Upper-UppersLower UppersUpper MiddlesMiddle Class
Working ClassUpper LowersLower Lowers
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CHARACTERISTICS OF SOCIAL CLASSSOCIAL CLASS CHARACTERISTICS
Upper – Uppers •Inherited wealth, have well known families•Seek to buy jewellery, antiques, homes & foreign trips•Eg. Mr. Anil Ambani
Lower-Uppers •Earned high income or wealth through exceptional ability in their profession or business•Usually come from middle-class•Tend to be active in social & civic affair•Seek to buy the symbol of social status, expensive cars, homes & schooling•Eg. Late Shri Dhirubhai Ambani
Upper Middles •Possess neither family status nor unusual wealth•Concerned with career•Attend positions as professional, independent businessmen & corporate managers•Civic minded, quality market for good clothes, homes, furniture & appliance
Middle Class •Average paid white & blue-collar workers•Buy products ‘to keep up with the trends’•Spend money on ‘worth-while experiences’ for their kids
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CHARACTERISTICS OF SOCIAL CLASS
SOCIAL CLASS CHARACTERISTICS
Working Class •Pay blue collar workers, lead working class lifestyle•Depends heavily on relatives for economic & emotional support, advice on purchase, for assistance in times of trouble•Larger families, stereotype, sharp gender-role division
Upper Lowers •Working, living standard just above the poverty line•Perform unskilled work, standard of living: just APL•Perform unskilled work & are poorly paid•Educationally deficient•Maintain some level of cleanliness
Lower Lowers •Visibly poverty-stricken•Usually out of work•Not interested in finding permanent jobs•Dependent in charity for income•Homes & possessions are dirty, ragged & broken down
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IMPACT OF SOCIAL CLASS• Provides a sense of identity
• Imposes a set of normative behaviour
• Classes share values, possessions, customs & activities
• Marketing response to customers of different economic means
• Marketing to the low-income consumer
• Some marketers ambivalent as not perceived as long-term customers
• Constitutes a substantial group
• Target with value-oriented strategies
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REFERENCES1. Loudon & Della Bitta: CONSUMER BEHAVIOUR: CONCEPTS AND
APPLICATIONS, Tata McGraw Hill.
2. Henry Assael: CONSUMER BEHAVIOUR AND MARKETING ACTION, Kent
Publishing Co.
3. Berkman & Gilson: CONSUMER BEHAVIOUR: CONCEPTS AND STRATEGIES,
Kent Publishing Co.
4. Bennet and Kassarjian: CONSUMER BEHAVIOUR, Prentice Hall of India.
5. Schiffman and Kanuck: CONSUMER BEHAVIOUR, Pearson Education Asia, 7th
Edition.
6. Hawkins, Best & Concy: CONSUMER BEHAVIOUR, Tata McGraw Hill.
7. Efraim Turban, Jae Lce, David King & ---- Michael Chung: Electronic Commerce:
Managerial Perspective, Pearson Education Inc. 2000.
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THANK YOU