Assignment on Subject:

Consumer behaviour

Submitted To:

SIR FAISAL ABASS(sb)

Submitted By:

UNSA ARSHAD

Roll No:

BI589024

M.COM:

3rd semester

TTOPIC :

ATTITUDE FORMATION
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ACKNOWLEDGEMENT

First of a ll we a re than kful to Almigh ty

ALLAH for g iving us mu ch coop eration and supporting
parents who has given us this opportunity to study here. I would like
to thank sir faisal abass for giving us the confidence and opportunity
to prove ourselves.

ABSTRACT

Pepsi-Cola is a carbonated beverage that is produced and

manufactured by PepsiCo. It issold in stores, restaurants and from
vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. The brand
was trademarked onJune 16, 1903. There have been many Pepsi
variants produced over the years since 1903,including Diet Pepsi,
Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, PepsiGold,
Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and
Brazil), Pepsi Next(available in Japan and South Korea), Pepsi Raw, Pepsi
Retro in Mexico, Pepsi One, andPepsi Ice Cucumber in Japan.Pepsi cola
is situated is an Industry that is dominator by two Competitors Coca
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Cola .
TABLE OF CONTENT

N
CONTENTS
O.
Acknowledgment
1.
Abstract
2. Introduction

Market Segmentation

Personality and Consumer

Behavior
3.

TOPIC
Attitude Formation
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Communication and
Consumer Behavior
Communication process
 SWOT ANALYSIS
Conclusion
Recommendation
Reference

INTRODUCTION:

Pepsi is a carbonated soft drink that is produced and

manufactured by PepsiCo. It was created and developed in
1893 and introduced as Brad's Drink, it was renamed as Pepsi-
Cola on August 28, 1898, then to Pepsi in 1961. Pepsi was first
introduced as "Brad's Drink" in New Bern, North Carolina,
United States, in 1893 by Caleb Bradham, who made it at his
drugstore where the drink was sold. It was later labeled Pepsi
Cola, named after the digestive protein pepsin and kola nuts
used in the recipe. Bradham sought to create a fountain drink
that was delicious and would aid in digestion and boost energy.
In 1903, Bradham moved the bottling of Pepsi-Cola from his
drugstore to a rented warehouse. In 1909, automobile race
pioneer Barney Oldfield was the first celebrity to endorse
Pepsi-Cola, describing it as "A bully drink...refreshing,
invigorating, a fine bracer before a race." The advertising
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theme "Delicious and Healthful" was then used over the next
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two decades.As a product that provides satisfaction to the

customer, Pepsi has to know the behavior of its consumer.
Consumer behavior is the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of
products that they expect will satisfy their trends. For example,
when a consumer is thirst he or she will search a product that
will quenched the thirst. After make a choice, the consumer will
purchase, using (drink it), evaluating the quality of the product
and lastly dispose the product after done using it. This is the
challenge that Pepsi has to overcome in order to reach the
consumer because there a lot of beverages product existed in
the market like Coke-cola, 100plus, Kickapoo or any other
beverages existed. The objective of this group project
assignment is to analyze the methods or research
methodology that Pepsi uses to deliver their product to the
consumer.

MARKET SEGMENTATION

Market segmentation is the process of subdividing a

market into distinct subsets of customers who behave in the
same way or have similar needs. Market segmentation,
strategic targeting, and product (or service) positioning are the
key elements of marketing most consumer goods. For
example, in the beverages market, there are many types of
drink that is available and many have to offers a lot of versions
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based on flavors and the existence or absence of sugar.

PepsiCo have been using this type of advertising in order to
create a difference in their products. PepsiCo have always
compared their product to Coca-cola product. Below are some
criteria fot tThat have been provided. As a company produce a
product, PepsiCo have always make a segmentation on a
stable factor that relates to consumer lifestyle in order to avoid
any unpredictable results and PepsiCo have been using
advertisement like television commercial and newspaper to
reach the consumer.

PERSONALITY:

Personality is those inner psychological characteristic that both

determine and reflect how a person responds to his or
environments. As see on this Pepsi drinks, the personality that
are reflect on this product are more on spirited, happiness,
down to earth and rhythm .

NATURES OF PERSONALITY :

Personality Reflects Individual Differences On this nature,

personality is a unique combination of factor. On this nature,
some consumer have high in ethnocentrism that is they are
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willing to accept foreign- made product such as accept this

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Pepsi drinks. As we see on this Pepsi drinks, this is are the

foreign made product that are come from New York, United
State of America and when this Pepsi drinks are introduced
and market to others country such as Malaysia, most of these
consumers are totally willing to accept this product in their
country. On this nature, it also enabled the producer to
categorize consumer into different group such as adult, teens,
and celebrity.

PERSONALITY AND UNDERSTANDING CONSUMER

BEHAVIOR.

CONSUMER INNOVATIVENESS AND RELATED

PERSONALITY TRAITS

i. Consumer Dogmatism
Is a personality trait that measured the degree of
rigidity (versus openness) that individual display
towards the unfamiliar and towards information that is
constrains in their own establishing belief. As see,
some have high dogmatism and low dogmatism .For
person who have low dogmatism, they are more open
minded and more likely to prefer innovative product to
establish alternative. It can be seen when the
producers are produced the new Pepsi drinks such as
Pepsi Twist, Pepsi Vanilla or Pepsi Diet, the consumer
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who are low dogmatism are ability to try the new Pepsi
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drinks products. For the consumer who have high

dogmatism are closed minded and they more likely to
 choose the establish rather than innovative
alternatives. To make this Pepsi drinks are been
recognized by high dogmatism consumer, the
producers have used famous people such as celebrity
and experts in their new product advertising to make it
easier for potentially reluctant consumer to accept the
innovation.

ii. Social Characters

On this social character, its origins sociological research which

focuses on the classification of individual into distinct
counterculture types that is from inner directedness to other
unexpectedness. On inner-directionless, a consumer tends to
rely on their own inner values or standards in evaluating new
product and is likely to be consumer innovators. As seen on
this Pepsi drinks advertisement, it is likely to be appealing to
the inner directed person. As seen on this Pepsi drinks
advertisement, it is totally full of spirited, happiness and
excitements of the rhythm and this advertisement is end with
the inner directed through the full of spirited and happiness.
topic
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ATTITUDE FORMATION
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Towards securing their customers Pepsi Company has

relates some of the customer attitudes when buying their
product especially Pepsi beverages products. To convincing
their customer Pepsi has applied a few methods based on
customer attitude natures, sources of influence on attitude
formation and strategies of attitudes changes.

NATURE OF ATTITUDES

There is a few natures that Pepsi have learned about

especially to get the customers predisposition towards a
favorable products from customers. Firstly, the attitude object
itself which it should be interpreted broadly to include specific
consumption or marketing related concepts, such as
product , product category , brand , services, possessions ,
product use causes or issues , people , advertisement, Internet
site, price , medium or retailer. For example, if we were
interested in learning consumer attitudes toward three major
brands of soft drink, our object might include Pepsi, Coca-Cola
and A&W.

Secondly, attitudes are a learning predisposition, here it

means attitudes relevant to purchase behavior are formed as a
result of direct experience with the product. The customer can
be learned or developed by their own pas experiences by their
own self experiences or others experiences when purchasing
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Pepsi product. When they feel favorable towards our product,

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they will make a repeat purchased and tell others using word-
of- mouth. This is how Pepsi get a free learned predisposition,
where it spread among peers, friends, or their neighbors. In the
other hand, Pepsi also developed their customer by exposing
about their products such as using mass media advertising, the
Internet and various form of direct marketing - such as using a
retailers catalog.

Lastly, in the nature of attitudes, the Pepsi also have

study that customer attitudes also have a consistency, based
on product. This can be explain when a customers have a
problem with a certain products, in Pepsi perception that
people who has a problem with a carbonated drinks such as
they do not like to drink a carbonated drinks so they would
never buy any of carbonated drinks. Here it can be said that
the customer attitudes consistently wont buy the products, or
they do not buy the product in a very long term. This group of
customer attitudes can be change this will be explain more on
strategies of attitude changes.

ATTITUDE FORMATION

When Pepsi has studied on their customer attitudes Pepsi

company will using sources which will influence them on
attitudes formation. Attitudes formation is how the Pepsi
customer itself are learned. There is a lot of source on attitudes
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formation, but Pepsi company only apply 3 of it, which:

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personal experiences, influence and mass media.The personal

experiences can be divided into two, which is a direct
experience, where the customers buy, and go through their
own experiences, then they will give their opinion about the
Pepsi product itself whether it is a good product or not, if it is a
positive experience, the customer will tends to make a repeat
purchase. If not the customer will ignore the product and will
not buy it again. The second personal experiences is the
marketing strategies from Pepsi itself, where they used a
promoter to distributes a sample in the supermarket to make
sure the customer aware about their product (for a new
customers and potential customers). Not only that, Pepsi also
do make a promotion such as buy Pepsi drinks product will get
35% discount on World Cup tickets. This promotion usually
used by Pepsi to maintain their current customers. All this is to
build the customer attitude formation towards the Pepsi
drinks.Next is the influence, where it plays the biggest role in
attitudes formation because it may contributes to a very long
chain of product life cycle. The main people who are in the
influence group are family, and friends. Buying attitudes
formation based on family will encourage the other member of
the family will tends or influenced by the family members such
as if a mother always buy a Pepsi cola drinks in every
celebration in their house, it might influence the children for
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example to buy the Pepsi cola drinks product when they have
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any functions or a celebration with their friends. Not only family

but the friends also have the power to influence the others
friends to buy. For example, Didie and Khadijah go to KFC and
ordered a meals then Di die choose Pepsi cola drinks then
Khadijah also have the tendency to order the same things.
Because when they are friends, they have an outstanding
believes towards each other, so Khadijah will follow what her
friend orders or suggestion.Last but not least, is the mass
media. Pepsi used mass media as their medium to makes their
customer knows and aware about the new products
promotions and information. Not only a purpose towards the
product but to influence them in formation of emotions and
feelings. For example in the television advertisement, Pepsi
used to change their advertisement based on current
celebrations such World Cup, which it will attract the customers
attention who mad with football, assuming that Pepsi also do
understand their interest in football. Here Pepsi apply the
feeling and emotions towards theirs customer, where emotional
appeals are the most effective s.

COMMUNICATION AND CONSUMER BEHAVIOR

One of the major strategic applications of classical

conditioning is repetition. Repetition of an advertisement can
have unique, separable impact on people effective response to
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the advertisement as a whole. However, there is a limit to the

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amount of repetition that will aid retention. Although some

repetition beyond what is necessary for learning aids retention,
it also can become full with numerous exposures, and both
attention and retention will decline. The effect will happen is
advertising wear out. Advertising wear out is a less effective to
attract attention. Some marketers avoid wear out by using
cosmetic variations in their advertisement while repeating the
same advertising theme. There are three hit model in this
strategic first, to make consumers aware about the product, a
second to show consumers the relevance of the product, and a
third to remind them of the benefits of product. PepsiCo used
this type of advertisement because them do not want customer
become bored when always watch their ads. It also show in the
advertisement the benefits people will get after drink Pepsi
such as have energy to do a work when they tired.

COMMUNICATION PROCESS:

To make consumer aware of the product or service, induce

purchase or commitment, create a positive attitude toward the
product, or show how it can solve the consumers problem
better than a competitive product. The sender as the initiator of
the communication can be a formal or an informal source. A
formal source represents either a for-profit or a not-for-profit
organization. An informal source was originally defined as a
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person whom the message receiver knows personally. Today,

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informal sources also include people who influence ones

consumption via online social networks and other Web forums.
Consumers often rely on informal communications sources are
perceived as having nothing to gain from the receivers
subsequent actions. Therefore, Pepsi must always encourage
even initiate positive word-of-mouth (WOM) communications
about their products and services. The first type of advertising
appeals that related with Pepsi is comparative advertising is a
widely used marketing strategy in which a marketer claims
product superiority for its brand over one or more explicitly
named or implicitly identified competitors, either on an overall
basis or on selected product attributes. PepsiCo has been
using this type of advertising in order to promote their product
in the market. PepsiCo always compare their product with their
close competitor that is Coke Cola, in terms of taste, product
design and packaging. PepsiCo always use indirect approach
in order to compare their product with Coca Cola product. For
example Pepsi Straws Advertisement, from the perception of
consumer, Pepsi has implement that consumer should drink
Pepsi than Coca Cola.The second type of advertising appeals
that Pepsi use is using celebrities. Consumers sometimes
regard the spokesperson delivering the product message as
the source of the message. Whether male or female who
appears in person or in a commercial or advertisement has a
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major influence on message credibility. For example Pepsi

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have been using FaizalTahir and Suki One in the Millionaire in

their advertisement. In this advertisement, Pepsi has divided
this advertisement into two sections that is music and
adventurer.

SWOT ANALYSIS

Strengths
The Pepsi image is displayed on T-shirt, Cap and Bat this extremely
recognizable branding isone of the greatest strengths. Pepsi bottling
system is one of their greatest strengths.

Weaknesses
Pepsi has recently reported some declines in unit case volume in
Indonesia and Thailand dueto reduce the consumer Purchasing power.
Pepsi has effects on the teeth which is an issue for health care.22
Opportunities
Packing Changes is effected sales and industry positioning but
in general, the public hastended not to be affected by new product.
Pepsi's bottling system also allows the company totake advantage of
infinite growth opportunities around the world.

Threats
Consumer buying power is represents a key threats in the industry.
The competition between
Pepsi and Cok e h as p rod uce a v ery slo w mo v ing indu stry
in wh ich man ag emen t mu st con tinuou sly respond to the
changing attitudes and demand for their of face losing market
share to competition, furthermore consumer can easily switch to other
beverage with a littlecost.
Ingredients

Carbonated water.
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Sugar

High fructose corn syrup.

Color (Caramel)

Phosphoric acid.

Caffeine.

Emulsifier

Natural flavors.Reference: Malik Muhammad Imtiaz Production

Manager .

CONCLUSION:

PepsiCo use three major criteria in dividing their customer

that criteria are; Demographic, psychographic and use rate
segmentation. Where in demographic, Pepsi targeted
consumer was determine by who actually the customer are. In
psychological, it is determine through how the customer think
and in used rate, the customer are divided in term of how much
they consume.Pepsi also consider their consumer personality
in marketing their product. Customer are analyzed by their
personal psychological characteristically that reflect the
differences between every customer. It help Pepsi to
understand their consumer originality and personality traits.
Pepsi also personalize their own brand to maximize their
product attractiveness in the customer point of
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view.Perception is defined as the process by which an

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individual selects, organizes, and interprets stimuli into a

meaningful and coherent picture of the world. It can be
described as how we see the world around us, this term need
to be understood by Pepsi so they can predict what their
customer select and organize their perception when Pepsi
doing their marketing strategies.

Pepsi need to ensure their cues can be interprets by their

consumer. Good consumer attitude can benefits Pepsi in term
of positive word of mouth. If the correct approach was
implementing by Pepsi, they literally can change a negative
perception toward their product to the positive one.

RECOMMENDATION:

1. Coca Cola always overshadow Pepsi. As a proof, every

single strategies that implemented by either company will
be follow. Pepsi need to distinguish their self and create a
new cola wave to persuade younger customer to change
from the old school cola; which is Coke and choose them
as an alternative.
More on viral marketing because of Pepsi target market
was range between 13-30 years old. Most of them was
born in the X and Y generation where they are more
expose to technology, and Pepsi can use this as a
medium of viral marketing.
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REFRENCES
1. www.pepsico.com/brands/Pepsi_Cola-Brands.html
2. http://www.youtube.com/user/pepsi
3. http://globalwebindex.net/thinking/drink-to-that-pepsi-
customers-and-their-motivation-to-follow-pepsi-online/

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