Consumer behaviour

Submitted In The Partial Fulfillment Of The Degree Of

Master Of Business Administration
(2015-2017)

Submitted To:- Submitted By:-

Controller Of Examination saurabh

M.D. University 4th Semester

Rohtak College Roll No:-1546

Delhi College Of Technology And Management

(Approved By Aicte And Assiliated To M.D.University,Rohtak)
Gudhrana, Distt — Palwal

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 ACKNOWLEDGMENT

A Project Work Is A Combination Of Views And Ideas And Suggestions And Contribution
Of Many People. Thus, One Of The Pleasant Parts Of The Writing. The Report Is The
Opportunity To Thanks Those Who Contributes Towards Its Fulfillment.

I Am Thankful To Mr. Dharmendra Sharma(Project Cordinator Of Management

Department) And Mr. Sajid Akhtar Khan (Hod Of Management Department) For Their
Vital Input And Valuable Suggestions And Continuous Guidance, Which Have Gone A Long
Way In Providing Necessary Impetus To Our Efforts In Consummating This Report.

I Am Very Thankful To Mr…………… (Controller-Manager Of The Department) For

His Cooperation And Valuable Guidelines In The Process Of Completing The Very Difficult
Part Of Our Training That Help Me To Come Out With A Lot Of Experience From Such A
Difficult Situation.

I Am Also Very Thankful To The Entire Staff Of ………….. And Aqsr Qualified And Nabcb
Certified For Their Cooperation, Without Which Completion Of The Project Would Not
Have Been Possible

Saurabh

Mba 4th Sem

College Roll No. — Mba-1546

University Roll No. —

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 Preface

It Is Well Evident That Work Experience Is An Indispensable Part Of Every

Professional Course. In The Same Manner Practical Training In Any Organization Is
Must For Each And Every Individual Who Is Undergoing Management Course.

Without The Practical Exposure One Cannot Consider Himself Or Herself As A

Qualified Capable Manager. During The Training Period The Student Learn Through
His Own Experience, The Real Situation Of The Corporate World And To Put His
Theoretical Knowledge Into Practical. This Experience Is Very Valuable For The
Student And Plays A Leading And An Important Role In The Career Of The Students

Hence To Fulfil This Requirement, I Had Completed My Two Months Training In

……………… .

Entering In An Organization Is Like A Stepping Into Altogether A New World. At

First Everything Seems To Be Strange And Unheard But At The Same Time When
The Time Passes One Understands The Concepts And Working Of The Organization
And Thereby Developed Professional Relationship.

Initially, It Felt As If Classroom Study Was Irrelevant And It Is Useless In Any

Concerns Working But Gradually It Is Realized That All The Basic Fundamental
Concepts Studies And Linked In One Or The Other Ways To The Organization. But
How And What Can Be Done With Fundamentals Depend Upon The Intellectual And
Applicability Of The Individuals. It Is Just A Matter To Modify The Theory So As To
Apply It To The Given Solution.

Sincerely Believe That There Is No Better Place To Learn This Practical Side Of
Management Than The Industry Itself

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 Name Of Topic Page No.
1
Introduction

2
Objective,Scope, Limitation

3
Research Methodology

4
Data Collection & Analysis

5
Findings Of Study

6
Conclusion & Suggestion

7
Questionnaire

8
Bibliography

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 Introduction

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 Consumer Behaviour

2.1. Consumer Behaviour Defined

The American Marketing Association Has Defined Consumer Behaviour

As, “The Dynamic Interaction Of Affect And Cognition, Behaviour, And The Environment By
Which Human Beings Conduct The Exchange Aspects Of Their Lives.”

Peter D. Bennett, Ed. Dictionary Of Marketing Terms, 2nd Ed. 1995.

“Consumer Behavior Refers To The Actions And Decision Processes Of People Who
Purchase Goods And Services For Personal Consumption.”

James F. Engel, Roger D. Blackwell And Paul W. Minored,

“Consumer Behavior” (1990).

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 Consumer Behavior Refers To “The Mental And Emotional Processes And The
Observable Behavior Of Consumers During Searching For, Purchasing And Post
Consumption Of A Product Or Service.”.

How Consumers Make Decisions To Spend Their Available Resources Such As

Money, Time And Effort On Consumption And Use-Related Items Is The Subject Of
Consumer Behaviour Study. Consumer Behaviour Has Two Aspects: The Final Purchase
Activity Which Is Visible To Us And The Decision Process Which May Involve The
Interplay Of A Number Of Complex Variables Not Visible To Us. In Fact, Purchase
Behaviour Is The End Result Of A Long Process Of Consumer Decision-Making. The Study
Involves What Consumers Buy, Why They Buy It, How They Buy It, When They Buy It,
Where They Buy It, How Frequently They Buy It And How They Dispose Of The Product
After Use. For Example, Consider The Product Computer, A Relatively New But Big
Business In Our Country. A Study Of Consumer Behaviour In This Area Would Investigate
What Kinds Of Consumers Buy It Or Would Buy For Home And Personal Use?

What Features Do They Look For? What Benefits Do They Seek Including Post-Purchase
Service? How Much Are They Willing To Pay? How Many Are Likely To Buy Now? Do
They Wait For Prices To Come Down? Do They Look For Some Freebies? The Answers To
These Can Be Investigated Through Consumer Research And Provide Manufacturers With
Important Data And Insight For Determining Computer Features And Promotional Strategy
Etc.14

2.2. Consumer And Customer

A Consumer Is Anyone Who Typically Engages In Any One Or All Of The

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Activities Mentioned In The Definition. Traditionally, Consumers Have Been Defined Very
Strictly In Terms Of Economic Goods And Services Wherein A Monetary Exchange Is
Involved. This Concept, Over A Period Of Time, Has Been Broadened. Some Scholars Also
Include Goods And Services Where A Monetary Transaction Is Not Involved And Thus The
Users Of The Services Of Voluntary Organisations Are Also Thought Of As Consumers.
This Means That Organisations Such As Unicef, Cry, Or Political Groups Can View Their
Public As “Consumers.”

The Term Consumer Is Used For Both Personal Consumers And Organisational
Consumers And Represents Two Different Kinds Of Consuming Entities. The Personal
Consumer Buys Goods And Services For Her Or His Personal Use (Such As Cigarettes Or
Haircut), Or For Household Consumption

(Such As Sugar, Furniture, Telephone Service Etc.), Or For Just One Member Of The Family
(Such As A Pair Of Shoes For The Son), Or A Birthday Present For A Friend (Such As A
Pen Set). In All These Instances, The Goods Are Bought For Final Use, Referred As “End
Users Or “Ultimate Consumers.”

The Other Category Of Consumer Is The Organisational Consumer, Which Includes

Profit Arid Not-For-Profit Organisations. Government Agencies And Institutions (Such As
Local Or State Government, Schools, Hospitals Etc.) Buy Products, Equipment And Services
Required For Running These Organisations. Manufacturing Firms Buy Raw Materials To
Produce And Sell Their Own Goods. They Buy Advertising Services To Communicate With
Their Customers. Similarly, Advertising Service Companies Buy Equipment To Provide
Services They Sell. Government Agencies Buy Office Products Needed For Everyday
Operations. The Focus Of This Book Is On Studying Behaviours Of Individual Consumers,
Groups And Organisations Who Buy Products, Services, Ideas, Or Experiences Etc. For
Personal, Household, Or Organisational Use To Satisfy Their Needs. Anyone Who Regularly
Makes Purchases From A Store Or A Company Is Termed As “Customer” Of That Store Or
The Company.

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2.3. Development Of Consumer Behaviour Field

For A Variety Of Reasons, The Study Of Consumer Behaviour Has

Developed As An Important And Separate Branch In Marketing Discipline. Scholars Of

Marketing Had Observed That Consumers Did Not Always Behave As Suggested By
Economic Theory. The Size Of The Consumer Market In All The Developed And Rapidly
Developing Economies Of The World Was Extensive. A Huge Population Of Consumers
Was Spending Large Sums Of Money On Goods And Services. Besides This, Consumer
Preferences Were Shifting And Becoming Highly Diversified. Even In Case Of Industrial
Markets, Where The Need For Goods And Services Is Generally More Homogenous, Buyers
Preferences Were Becoming Diversified And They Too Were Exhibiting Less Predictable
Purchase Behaviour.

Marketing Researchers Involved In Studying The Buying Behaviour Of Consumers

Soon Appreciated The Fact That Though There Were Many Similarities, Consumers Were
Not All Alike. There Were Those Who Used Products Currently In Vogue While Many
Consumers Did Not Like Using “Me Too” Types Of Products And Showed A Preference For
Highly Differentiated Products That They Felt Met Their Special Needs And Reflected Their
Personalities And Lifestyles.

These Findings Led To The Development Of Market Segmentation Concept, Which

Required Dividing The Total Heterogeneous But Potential Market Into Relatively Smaller
Homogenous Groups Or Segments For Which They Could Design A Specific Marketing
Mix. They Also Used Positioning Techniques And Developed Promotional Programmes To
Vary The Image Of Their Products, So That They Were Perceived As A Better Means To
Satisfying The Specific Needs Of Certain Segments Of Consumers.

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 Other Important Factors That Contributed To The Development Of Consumer
Behaviour As A Marketing Discipline Include Shorter Product Life Cycles, Increased
Environmental Concerns, Interest In Consumer Protection, Growth Of Services Marketing,
Opening Up Of International Markets And The Development Of Computers And
Sophisticated Techniques Of Statistical Analysis.

2.11. Advantages Of Studying Consumer Behaviour

Importance Of Study Of Consumer Behaviour

As Stated Earlier, Consumer Behaviour Plays An Important Role In Modern Marketing

Practices. {Most Of Marketing Decisions Are Based On The Study Of Consumer Behaviour.
It Provides Valuable Information To Design And Marketing Mix And To Modify It Over
Time. Marketing Managers Can Actualize Marketing Goals Only By Studying Consumer
Behaviour And Responding It By Designing And Designing Marketing Programme
Objectively. It Is Imperative To Know How Consumers React To Marketing Programme (4

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 P's) To Serve Them Effectively. Role Or Importance Of Study Of Consumer Behaviour Can
Be Explained With Reference To The Points Stated As Under.-

1. Modern Philosophy

It Concerns With Modern Marketing Philosophy - Identify Consumers' Needs And

Satisfy Them J More Effectively Than Competitors.

It Makes Marketing Consumer-Oriented. It Is The Key To Succeed.

Achievement Of Goals

2. Useful For Dealers And Salesmen

The Study Of Consumer Behaviour Is Not Useful For The Company Alone.
Knowledge Of Consumer Behaviour Is Equally Useful For Middlemen And Salesmen
To Perform Their Tasks Effectively In Meeting Consumers Needs And Wants
Successfully. Consumer Behaviour, Thus, Improves Performance Of The I Entire
Distribution System.

3. More Relevant Marketing Programme

Marketing Programme Consisting Of Product, Price, Promotion, And Distribution

Decisions Can ; Be Prepared More Objectively. The Programme Can Be More
Relevant If It Is Based On The Study Of Consumer Behaviour. Meaningful Marketing
Programme Is Instrumental In Realizing Marketing Goals.

4. Adjusting Marketing Programme Over Time

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 Consumer Behaviour Studies Consumer Response Pattern On A Continuous Basis.
So, Marketer Can Easily Come To Know The Changes Taking Place In The Market.
Based On Current Market Trend, The Marketer Can Make Necessary Changes In
Marketing Programme To Adjust With Market.

5. Predicting Market Trend

Consumer Behaviour Can Also Aid In Projecting The Future Trends.

Marketer Finds Enough Time To Prepare For Exploiting The Emerging

Opportunities, And/Or Facing Challenges And Threats

6. Consumer Differentiation

Each Segment Needs Different Products. For Every Segment, A Separate

Marketing Programme Is Needed. Knowledge Of Consumer Differentiation Is A Key
To Fit Marking Offers With Different Groups Of Buyers. Consumer Behaviour Study
Supplies Detail About Consumer Differentiations.

7. Creation And Retention Of Consumers

Marketers Who Base Their Offering On A Recognization Of Consumer Needs Find A

Ready Market For Their Products. Company Finds It Easy To Sell Its Products. In
The Same Way, The Company, Due To Continuous Study Of Consumer Behaviour
And Attempts To Meet Changing Expectations Of The Buyers, Can Retain Its
Consumers For Long Period.

8. Competition

Consumer Behaviour Study Assists In Facing Competition, Too.

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 Based On Consumers' Expectations, More Competitive Advantages Can Be Offered.
It Is Useful In Improving Competitive Strengths Of The Company.

9. Developing New Products

New Product Is Developed In Respect Of Needs And Wants Of The Target Market. In
Order To Develop The Best-Fit Product, Marketer Must Know Adequately About The
Market. Thus, The Study Of J Consumer Behaviour Is The Base For Developing A
New Product Successfully.

10. Dynamic Nature Of Market

Consumer Behaviour Focuses On Dynamic Nature Of The Market. It Helps The

Manager To Be I Dynamic, Alert And, Active In Satisfying Consumers Better And
Sooner Than Competitors. Consumer | Behaviour Is Indispensable To Watch
Movements Of The Markets.

11. Effective Use Of Productive Resources ,

The Study Of Consumer Behaviour Assists The Manager To Make The

Organisational Efforts Consumer-Oriented. It Ensures An Exact Use Of Resources
For Achieving Maximum Efficiency.

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 Objective
Scope
Limitation

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 objective

1. Identify Cultural Influences On Consumer Choices.

2. Understand The Role Of Segmentation And Customer Satisfaction.

3. Appreciate And Understand Consumer Diversity.

4. Influences On Buying Behavior

5. Buyer Decision Making

6. Types Of Buying-Decision Behavior

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 scope

1. 1. 1 1 Nature And Scope Of Consumer Behaviour Questions That Reflect The Consumer
Behaviourwhat Products And Services Consumer Buy ?What Makes Them Buy Them ?When
These Are Bought ?From Where ?What Is The Frequency Of Buying ?How Often They Are Used
?

2. 2. 1 2 There Are Different Types Of Organisational Consumers.1. Business Organisation.2. Govt.

And Instruments Of Govt.3. Institutions.

3. 3. 1 2organisational Consumers Buy Products To Run Their Organisations.

4. 4. 1 2a Purchaser Or Buyer Is Not Necessarily A Userhence : A Marketer Has To Direct His

Promotional Efforts Either To The Buyer The User The Influencer

5. 5. 1 2importance Of Consumer Behaviourunderstanding Of All Nuances Of Consumer Behaviour

Is Interpretivism / Experientialism

6. 6. 1 3 Prime Concern Of Marketing Concept And Formulation Of Marketing Strategies Is

Consumer Buying Behaviourbecause :1. Consumers Are Extremely Complex Individuals.2. Each
Consumer Segment Has Unique Needs.

7. 7. 1 3 Consumer Behaviour Though Quite Useful In Formulation Of Strategies(Which Could Be

Exploited By The Marketers) Butis Open To Critism Since It Exposesvulnerabilities Of The
Consumers

8. 8. 1 3 The Marketing Practices Followed By Reputed Marketer With Respect Toproducts , Prices,
Promotion, And Design With Just One Aim In Mind Profit Maximization

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 limitation

1. Bounded Rationality— Working Without Complete Information….Leads To Satisficing Rather Than

Maximizing

2. Availability— Remembering The Most Recent Event…”What Have You Done For Me Lately???”

3. Regression To The Mean (A La Friedmans Permanent Income Hypothesis) Interesting Comments From
Frank On The “Merit Of Criticism” Vs “Praise” In Connection With Regression To The Mean…..P.
269!

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 Research
Methodology

2.4. History Of Models And Its Focus Area Growth Of Consumer Behaviour

Consumer Behavior Is A Multi-Disciplinary Field Which Draws Its Concepts From

Several Fields Of Study. It Is Useful To The Marketing Organizations, Consumer Groups
And Governmental Authorities. It Is An Applied Field Since The Concepts Of Behavioral

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 Science Disciplines Are Applied To The Understanding Of Human Behavior As Far As
Consumption Is Concerned. By Its Very Nature,

Table-1

History Of Consumer Behaviour: Study

Researcher Year Contribution Area

Katz And Lazarsfeld At 1990 Information Dissemination And

Columbia University Interpersonal Influence

Katona And His Colleagues At 1991 Expectations And Attitudes

University Of Michigan

Bauer At Harvard 1992 Communication And Consumer

Response Conditions Of Uncertainty.

Perceived Risk.

Kuehen 1992 Learning Theory

Howard 1993

Evans 1993 Personality And Social Character

Kassarjan 1994

Engel 1995 Cognitive Dissonance

Kassarjan And Cohen 1996

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 Cox 1997 Perceived Risk

Steffler 1998 Perception Preference Mapping

Green 1999

Levy 2000 Symbolic Interactions

Day 2001 Attitude

Bourne 2002 Reference Groups

Stafford 2003

King 2004 Interpersonal Communication And

Zaltman

And

Researcher Year Contribution Area

2005 Diffusion

Levy 2006 Social Class

Wells 2007 Life Style

Bauer 2008 Sub-Cultures

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 Sturdivant 2009

Kuehen 2010 Model Of Consumer Behaviour

Frank (Limited Aspects)

Niccosia 2011 Comprehensive Consumer Behaviour

Model

Howard And Sheth 2012 Comprehensive Consumer Behaviour

2013 Model

David Laibson 2014 Will Power And Money. Explained

Overspending And Under Saving.

Behavioral Economist.

Sendhil Mullainathan Integrated Behavioral Economics

Into Mainstream Theory.

It Increases Appreciative Content Of Marketing, And Leads To More Effective And

Consumer Oriented Marketing Programmers. Consumer Behavior Is Interwoven With The
Emergence Of The Marketing Discipline And Has Extended The Motivation Research Of
1950s. By 60s Consumer Behavior Acquired A Formidable Body Of Knowledge. The
Following Table Summarizes The Growth Of Consumer Behavior As A Subject Of Study.

Models Which Are Integrative Is A Significant Development To Resolve

Contemporary Problems Of Consumer Research. As There Is No Single Unified Theory Of
Consumer Behavior, Several Theories Function For A Single Model. These Models Draw
Upon Many Theoretical Areas Such As Social Class, Attitudes

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 And Perception. As Many Concepts Of Consumer Behavior Are Contributed By
Diverse Disciplines, Sometimes The Research Findings Lack Consistency And Are
Disjointed, Attracting The Label Of Too Academic For The Entire Subject. Consumer
Research Should Be Related To The Problems That Are

Relevant For The Managers And The Findings Must Be Communicated Adequately.

Business Executives Should Also Learn To Value The Research Findings, And Use
Them In Their Decision Making Process. Researchers Should Not Lose Sight Of The
Marketing Realities While Un-Dertaking Their Research. One Should Have Some Trained
Individuals As Links Between The Marketing Practitioners And Research Workers. These
Individuals Can Be Called Social Science Technicians Or Social Engineers.

2.5. Disciplines Involved In The Study Of Consumer Behaviour

Consumer Behaviour Was A Relatively New Field Of Study During The Second Half
Of The 1960s Without A History Or Research Of Its Own. It Is In Fact A Subset Of Human
Behaviour And It Is Often Difficult To Draw A Distinct Line Between Consumer-Related
Behaviour And Other Aspects Of Human Behaviour.

The Discipline Of Consumer Behaviour Has Borrowed Heavily From Concepts Developed In
Other Disciplines Of Study Such As Psychology, Sociology, Social Psychology, Cultural
Anthropology And Economics.

Psychology Is The Study Of The Individual, Which Includes Motivation, Perception,

Attitudes, Personality And Learning Theories. All These Factors Are Critical To An
Understanding Of Consumer Behaviour And Help Us To Comprehend Consumption Related

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Needs Of Individuals, Their Actions And Responses To Different Promotional Messages
And Products And The Way Their Experiences And Personality Characteristics Influence
Product Choices.

Sociology Is The Study Of Groups. When Individuals Form Groups, Their Actions
Are Sometimes Quite Different From The Actions Of Those Very Individuals When They
Are Operating Alone. The Influences Of Group Memberships, Family And Social Class Oh
Consumer Behavior Are Important” For The Study Of Consumer Behavior.

Social Psychology Is A Combination Of Sociology And Psychology And Studies

How An Individual Operates In A Group. It Also Studies How Those Whose Opinions They
Respect Such As Peers, Reference Groups, Their Families And Opinion Leaders Influence
Individuals In Their Consumption Behavior.

Cultural Anthropology Is The Study Of Human Beings In Society. It Explores The

Development Of Core Beliefs, Values And Customs That Individuals Inherit From Their
Parents And Grandparents, Which Influence Their Purchase And Consumption Behavior. It
Also Studies Sub-Cultures And Helps Compare Consumers Of Different Nationalities And
Cultures.

Economics: An Important Aspect Of The Study Of Economics Is The Study Of How

Consumers Spend Their Funds, How They Evaluate Alternatives And How They Make
Decisions To Get Maximum Satisfaction From Their Purchases.

Despite The Fact That Consumer Behavior As A Field Of Study Is Relatively Of

Recent Origin, It Has Grown Enormously, Has Become A Full-Blown Discipline Of Its Own
And Is Used In The Study Of Most Programmers Of Marketing Study.

The Marketing Concept Was Accepted And Adopted By A Large Number Of

Companies In The Developed Countries, Particularly The United States And This Provided
An Impetus To Study The Consumer Behavior. Companies Had To Engage In Extensive
Marketing Research To Identify Unsatisfied Consumer Needs. In This Process, Marketers

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 Learnt That Consumers Were Highly Complex As Individuals And Had Very
Different Psychological And Social Needs, Quite Apart From Their Survival Needs. They
Also Discovered That Needs And Priorities Of Different Consumer Segments Differed
Significantly. They Realized That To Design Products And Develop Suitable Marketing
Strategies That Would Satisfy Consumer Needs, They Had To First Study Consumers And
The Consumption Related Behavior In Depth. In This Manner, Market Segmentation And
Marketing Concept Paved The Way For The Application Of Consumer Behavior Principles
To Marketing Strategy.

2.6. Consumer Behaviour Applications In Marketing

Consumer Behavior Principles Are Applied In Many Areas Of Marketing As

Discussed Below:

Analyzing Market Opportunity: Consumer Behavior Study Helps In Identifying The

Unfulfilled Needs And Wants Of Consumers. This Requires Examining The Trends And
Conditions Operating In The Marketplace, Consumers Lifestyles, Income Levels And
Emerging Influences. This May Reveal Unsatisfied

Needs And Wants. The Trend Towards Increasing Number Of Dual Income Households And
Greater Emphasis On Convenience And Leisure Have Led To Emerging Needs For
Household Gadgets Such As Washing Machine, Mixer Grinder, Vacuum Cleaner And
Childcare Centres Etc. Mosquito Repellents Have Been Marketed In Response To A Genuine
And Unfulfilled Consumer Need.

Selecting Target Market: A Review Of Market Opportunities Often Helps In

Identifying Distinct Consumer Segments With Very Distinct And Unique Wants And Needs.
Identifying These Groups, Learning How They Behave And How They Make Purchase
Decisions Enables The Marketer To Design And Market Products Or Services Particularly

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 Suited To Their Wants And Needs. For Example, Consumer Studies Revealed That Many
Existing And Potential Shampoo Users Did Not Want To Buy Shampoo Packs Priced At Rs.
60 Or More And Would Rather Prefer A Low-Priced Sachet Containing Enough Quantity For
One Or Two Washes. This Finding Led Companies To Introduce The Shampoo Sachet,
Which Became A Good Seller.

In Case Of Consumer Durables Market In India Marketers Are Targeting The Higher
Income Class With Special Features In The Equipments As Well As Longer Warranty Period
And Of Course World Class Quality. In Case Of Semi Urban And Rural Areas Consumers
Who Prefer The Basic Offerings Or Slightly Modern Version Of The Product Are Targeted.

2.7. Marketing - Mix Decisions

Once Unsatisfied Needs And Wants Are Identified, The Marketer Has To Determine
The Right Mix Of Product, Price, Distribution And Promotion. Here Too, Consumer
Behaviour Study Is Very Helpful In Finding Answers To Many Perplexing Questions.

Product: The Marketer Designs The Product Or Service That Would Satisfy
Unfulfilled Needs Or Wants. Further Decisions Regarding The Product Concern The Size,
Shape And Features. The Marketer Also Has To Decide About Packaging, Important Aspects
Of Service, Warranties And Accessories Etc.

Nestle First Introduced Maggie Noodles In Masala And Capsicum Flavors.

Subsequently, Keeping In View The Consumer Preferences In Some Regions, The Company
Introduced Garlic, Sam Bar, Mixed Vegetables, Dale Atta Noodles, Etc.

Price: The Second Important Component Of Marketing Mix Is Price.

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Marketers Must Decide What Price To Charge For The Product Or Service. These Decisions
Will Influence The Flow Of Revenue To The Company. Should The Marketer Charge The
Same, Higher, Or Lower Price In Comparison To Competition? Is The Consumer Price
Sensitive And Would A Lower Price Stimulate Sales? Should There Be Any Price With
Discounts? Do Consumers Perceive Lower Price Indicative Of Poor Quality?

To Answer Such Questions, The Marketer Must Understand The Way The Companys
Product Is Perceived By Consumers, The Importance Of Price As A Purchase Decision
Variable And How Different Price Levels Would Affect Sales. It Is Only Through Consumer
Behaviour Study In Actual Buying Situations That The Marketer Can Hope To Find Answers
To These Important Issues.

Promotion: Promotion Is Concerned With Marketing Communications To

Consumers. The More Important Promotion Methods Are Advertising, Personal Selling,
Sales Promotion, Publicity And Direct Marketing. The Marketer Has To Decide Which
Method Would Be Most Suitable To Effectively Reach The Consumers. Should It Be
Advertising Alone Or Should It

Be Combined With Sales Promotion? The Company Has To Know The Target
Consumers, Their Location, What Media Do They Have Access To And What Are Their
Media Preferences, Etc.

In Most Cases Of Industrial Products, There Is Very Little Or No Advertising.

Brochures Containing Technical Specifications Are Often Posted To Clients And The
Salespeople Make Follow-Up Visits. Consumer Products Get The Maximum Share Of
Advertising. The Pharmaceutical Industry Exclusively Uses Personal Selling For Prescription
Drugs. Insurance Companies Use Both Advertising And Personal Selling. Basically Speaking
Promotion Is The Tool Of Marketing Which Has Been Used To Attract Consumers Towards
The Product Or Organization. Some Cases It Has Been Used For Creating Positive Attitude
Towards Organization. Sales Promotion Is The Most Effective Weapon For Converting Non-

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Users Of Product To Users Of The Product In The Rural Areas As Well As In Semi Urban
Area For Absolute New Product. One Cant Use Same Sales Promotion Tool For Every Type
Of Product. Depending Upon The Product And Type Of Consumers Marketers Have To
Develop Different Promotional Strategies. Specifically In Case Of Consumer Durables Like
Television

Promotional Strategies For The Same Tv Model Is Different In Gujarat And In

Uttar Pradesh.

Place: The Next Decision Relates To The Distribution Channel, That Is, Where And
How To Offer Products And Services For Sale. Should The Products Be Sold Through All
The Retail Outlets Or Only Through Selected Ones? Should The Marketer Use Only The
Existing Outlets, Which Also Sell Competing Brands, Or Should New Exclusive Outlets
Selling Only The Marketers Brands Be Created? Is The Location Of Retail Outlets Important
From Consumers Point Of View? Should The Company Think Of Direct Marketing?

The Answers To These Questions Are Furnished By Consumer Behaviour Research.

For Example, When Eureka Forbes Introduced Its Vacuum Cleaners Many Years Ago, Few
Stores Knew Anything About This Product And Most Were Not Willing To Buy It.
Consumer Awareness About The Product Was Also Low And No Retail Shops Carried The
Product. Under These Circumstances, The Company Decided To Sell The Product Only
Through Personal Selling, With Salespeople Calling Directly On The Consumer At Her/His
Home. These Salespeople Had Enough Time To Explain And Demonstrate The Vacuum
Cleaner And Convince Prospects About Its Usefulness. Retail Outlets Would Not Have Been
Suitable For

This Sales Approach. This Strategy Was Based On Understanding Of Consumer

Behaviour And Yielded Good Results.

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 Use In Social And Non-Profits Marketing: Consumer Behaviour Studies Are Useful
To Design Marketing Strategies By Social, Governmental And Not-For-Profit Organisations
To Make Their Programmes More Effective Such As Family Planning, Awareness About
Aids, Crime Against Women, Safe Driving, Environmental Concerns And Others. Unicef
(Greeting Cards), Red Cross And

Cry Etc. Make Use Of Consumer Behaviour Understanding To Sell Their Services And
Products And Also Try To Motivate People To Support These Institutions.

A Model Refers To A Simplified Depiction Of Reality And Includes Only Those

Aspects Of Reality That Interest A Particular Model Developer. Models Assist In
Constructing A Theory That Guides Research On Consumer Behaviour And Facilitates
Learning Of What Is Known About Consumer Behaviour.

Economists, With The Objective Of Understanding Economic Systems, Developed

The Earliest Consumer Behaviour Models In The Early 19th Century.

With Consumer Behaviour Becoming A Distinct Discipline Of Study, Newer Approaches

Were Developed To Explain The Processes That Influenced Consumer Behaviour. These
Contemporary Descriptions And Explanations Are Quite Different From All The Earlier
Approaches Because Their Focus Is On The Decision Process That Consumers Go Through
When Deliberating About Buying Products And Services. Thus, Contrary To Die Economic
Models The Emphasis Shifts To Mental Activity That Occurs Before, During, And Post -
Purchase.

Scholars Have Developed A Large Number Of Consumer Behaviour Models. There

Are Significant Variations In These Models In Terms Of Sophistication, Precision, Area Of
Knowledge, And Scope. Three Models Are Presented Here. The Nicosia Model Represents
One Of The Earliest Attempts To Explain Consumer Behaviour, The Howard-Sheth Model
Presents A More Comprehensive Theory Of Buyer Behaviour, And The Ekb Model Is
Viewed As The Most Popular Representation Of Consumer Behaviour. Salient Features Of
These Models Are Presented Here.

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2.8. Different Types Of Consumer Behaviour Models:

Consumer Models Are Nothing But A Framework Based On Particular

Study By Particular Researcher Provides Guidelines For Consumer Buying Behaviour

Understanding. The Consumer Behaviour Models Provide Better Insight To The Marketers
For Taking Important Decisions Regarding Various Marketing Mixed Elements. It Describes
Various Factors Influence On Ultimate Consumer Buying Behaviour, Specifically With
Reference To Indian Consumer. Economic Models And Haward Sheth Models Are
Important. Indian Consumer Behaviour For Consumer Durables Followed More Or Less
Resembled Factors In Such Two Models. Nicosia Model Which Emphasizes Influence Of
Product As Well As Services Offered By The Marketer Rather Than Conventional Factors.

2.8.1. Economic Model

Under Economics, It Is Assumed That Man Is A Rational Human Being,

Who Will Evaluate All The Alternatives In Terms Of Cost And Value Received And Select
That Product/Service Which Gives Him/Her Maximum Satisfaction (Utility). Consumers Are
Assumed To Follow The Principle Of Maximum Utility Based On The Law Of
Diminishing Marginal Utility. It Is Assumed That With Limited 24

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 Purchasing Power, And A Set Of Needs And Tastes, A Consumer Will Allocate His/Her
Expenditure Over Different Products At Given Prices So As To Maximize Utility.

The Law Of Equimarginal Utility Enables Him To Secure Maximum Utility From
Limited Purchasing Power.

Economic Model Of Consumer Behaviour Is Unidimensional. This Means That

Buying Decisions Of A Person Are Governed By The Concept Of Utility. Being A Rational
Man He Will Make His Purchase Decisions With The Intention Of Maximising The
Utility/Benefits

Economic Model Is Based On Certain Predictions Of Buying Behaviour

1. Price Effect- Lesser The Price Of The Product, More Will Be The Quantity Purchased,

2. Lesser The Price Of The Substitute Product, Lesser Will Be The Quantity Of The Original
Product Bought (Substitution Effect)

3. More The Purchasing Power, More Will Be The Quantity Purchased

(Income Effect).

The Assumption About The Rational Behaviour Of Human Beings Has Been
Challenged By The Behavioural Scientists. They Are Of The Opinion That While The
Predictions Are Useful, The Model Only Explains How A Consumer Ought To Behave. It
Does Not Throw Light On How Does The Consumer Actually Behave.

Behavioural Scientists Argue That The Economic Model Is Incomplete. Economics Is

Assuming The Market To Be Homogeneous, And That Buyers Will Think And Act Alike.
And That They Will Only Concentrate On One Aspect Of The Product, I.E., Income. This
Model Ignores All The Other Aspects Such As Perception, Motivation, Learning, Attitude
And Personality And Socio Cultural Factors. It Has Always Been Agreed Upon That Man Is

31 | Page
A Complex Entity, A Puzzle, A Riddle. Hence, It Is Very Important To Have A Multi-
Disciplinary Approach To Understand Consumer Behaviour. Further, In Todays
Environment, Apart From The Various Psychological, Socio Cultural Determinants Of The
Consumer, It Has Been Observed That The Consumer Also Gets Influenced By Other
Marketing Variables Namely - Products (Ones Which Are Technologically Advanced),
Effective Distribution Network And Marketing Communication (Media And Promotion
Techniques). Thus Man Cannot Be Assumed To Be A

Rational Person And Price Is Not The Only Factor Which Influences His Purchase Decision.
Behavioural Scientists Have Opined That A Broader Perspective Has To Be Taken While
Trying To Analyse Buying Behaviour, Not Only Economics But The Role Played By Needs,
Motives, Personality And Self-Concept And Socio Cultural Factors Should Be Considered To
Understand What Will Be The Buyers Responses To Various Stimulus And In Turn What
Will Be The Effect Of This On Consumers Buying Behaviour.

2.8.2. Nicosia Model (Conflict Model)

Francesco Nicosia Was One Of The First To Develop Consumer Behaviour Model In
The Early 1960s And Shift Focus From The Act Of Purchase Itself To The More Complex
Decision Process That Consumers Engage In About Products And Services.

Nicosia Presented His Model In Flow Chart Format, Resembling The Steps In A
Computer Programme. Also, All Variables Are Viewed As Interactive, With None Being

32 | Page
Inherently Independent Or Dependent Thus, The Model Describes A Circular Flow Of
Influences Where Each Component Provides Input To The Next.

The Model Is Viewed As Representing A Situation Where A Firm Is Designing

Communications (Products, Ads Etc.) To Be Delivered To Consumers And In Turn
Consumers Responses Influence Subsequent Actions Of The Firm.

The Model Contains Four Major Fields Or Components: (Field-I) The Firms Attributes And
Outputs Or Communications And The Consumers Psychological Attributes, (Feeld-Ii) The
Consumers Search For And Evaluation And Of The Firms Outputs And Other Available
Alternatives, (Field-Iii) The Consumers Motivated Act Of Purchase, And (Field-Iv) The
Consumers Storage Or Use Of The Product. Nicosia Assumes That The Consumer Is Seeking
To Fulfill Specific Goals And That Initially There Is No History Between The Consumer And
The Firm, So No Positive Or Negative Predispositions Towards The Firm Exist In The
Consumers Mind.

As Shown In The Figure, The Firm Produces Some Type Of Communication

(Product, Service, Ad Etc.) That The Consumer Is Exposed. Attributes Of The Message And
The Consumer Determine The Nature Of Consumers Exposure To It And Its Influence On
The Individual. One Consequence Is That The Message Will Influence The Consumers
Attitude Towards The Brand. This Attitude Is The Input To The Field-Ii.

Figure-1

Nicosia Model (Conflict Model)

33 | Page
 Field 1 Attitude

Firms Consumers
Field 2
Attributes Msg Attributes

Exposure

Search

Experience Evaluation

Motivation

Field 4 Consumption

Or Storage

Decision

Purchasing

Behaviour

Field 3

34 | Page
 The Consumer Will Probably Become Motivated To Gain Information At This Point, And
Search Activity Is Likely To Occur. Some Search Activity Will Involve Searching Internal
Memory For Relevant Information About The Communication (Product, Service, Company
Etc.). External Search May Also Occur, Where The Consumer Visits Stores Or Reads
Reports Etc. This Is Likely To Lead To Evaluation. If The Consumer Processes Relevant
Information And Begins To Favour The Firms Brand, She/He Will Be Motivated, Leading
To Field-Iii, And If Nothing Intervenes, This Information Is Likely To Precipitate Shopping
Activity And Purchase Of The Brand. At This Point, A Number Of Outcomes Can Occur.

One Outcome Is That The Firm Receives Feedback (Field-Iv) And Another Is That The
Consumers Attitude Towards The Brand May Change Because She/He Gains Experience
With The Product During Storage And Use. This Experience Is Feedback To The Consumers
Predispositions.

Limitations Of Model:

The Nicosia Model Offers No Detail Explanation Of The Internal Factors, Which
May Affect The Personality Of The Consumer, And How The Consumer Develops His
Attitude Toward The Product. For Example, The Consumer May Find

The Firms Message Very Interesting, But Virtually He Cannot Buy The Firms Brand
Because It Contains Something Prohibited According To His Beliefs. Apparently It Is Very
Essential To Include Such Factors In The Model, Which Give More Interpretation About The
Attributes Affecting The Decision Process.

2.8.3. Howard-Sheth Model

The Howard-Sheth Model Represents A Major Revision Of An Earlier

35 | Page
 Systematic Effort To Develop A Comprehensive Theory Of Buyer Decision-Making. This
Model Depicts And Creates A Distinction Among Three Stages Of Decision-Making.

1. Extensive Problem Solving: This Occurs When A Consumer Has Little Or No Prior
Knowledge, And Any Beliefs About The Brand Do Not Exist And She/She Has No Specific
Brand Preference. The Consumer Seeks Information Actively About Several Alternative
Brands In The Category.

0. Limited Problem Solving: In This Situation The Consumer Has Some Limited Knowledge
And Beliefs About The Available Brands. Because Of Limited Knowledge, She/He Is Not In
A Position To Evaluate Brand Differences To Establish A Preference. The Consumer Seeks
Some Comparative Brand Information, Although The Decision Criteria Are Quite Likely To
Be Fairly Established.

1. Routinised Response Behaviour: This Refers To A Situation When The Consumer Has
Well-Established Knowledge And Beliefs About The Brand And Other Alternatives In The
Category And Is Predisposed To Purchase A Specific Brand.

The Model Has Four Major Sets Of Variables:

1. Inputs

2. Perceptual And Learning Constructs

3. Outputs

4. External Variables

36 | Page
Inputs.

These Variables Include Three Distinct Types Of Information Sources

(Stimuli) Present In The Consumers Environment. Significative Stimuli Represent The

Brands Physical Attributes, The Marketer Provides The Symbolic Stimuli In The Form Of
Brand Information And Could Be Visual Or Verbal, And The Third Kind Of Information Is
Furnished By Consumers Social Environment Such As Family, Reference Groups, And
Social Class. All These Three Types Of Stimuli Furnish Information Inputs To The Potential
Consumer Concerning The Product Category Or The Brand.

Perceptual And Learning Constructs

37 | Page
 The Central Element In The Howard-Sheth Model Includes Psychological Variables
That Are Assumed To Operate When The Consumer Is Involved In Decision-Making
Process. These Psychological Variables Are Treated As Simply Ideas, And Are Not Defined
Operationally Or Evaluated Directly. Some Of These Variables Are Perceptual In Nature
And Focus On How The Consumer Receives And Processes Information Gained From Input
And Other Parts Of The Model. For Instance, Stimulus Ambiguity Occurs When The
Consumer Is Not Sure About The Meaning Of Information Gained From The Environment
Perceptual Bias Occurs In Case The Consumer Distorts The Received Information So That It
Suits The Consumers Established Needs, Wants, Or Experiences.

Learning Constructs Perform The Function Of Consumers Concept Formation And

Include Her/His Goals, Information About The Brands In The Evoked Set, Criteria For
Evaluating Alternatives, And Intentions To Buy. The Proposed Interaction (Shown With
Arrows And Solid And Dotted Lines) Between Various Perceptual And Learning Variables
And The Variables In Other Segments Of The Model Give The Howard-Sheth Model A
Distinct Character.

Outputs

The Model Shows A Series Of Outputs That Are Similar In Name To Some Of The
Perceptual And Learning Construct Variables That Include Attention, Brand Comprehension,
Attitudes, Intentions, And Finally The Act Of Purchase.

External Variables

These Variables Are Not Directly Involved In The Decision-Making Process. The
Relevant External Variables Include Importance Of The Purchase, Consumers Personality
Traits, Time Pressure, And Availability Of Funds.

38 | Page
 Engel, Blackwell, Miniard Model (Formerly Ekb Model). Also Called

Open System

2.8.4. The Engel — Kollat — Blackwell Mode

This Model Talks Of Consumer Behaviour As A Decision Making Process In The

Form Of Five Step (Activities) Which Occur Over A Period Of Time. Apart From These
Basic Core Steps, The Model Also Includes A Number Of Other Related Variables Grouped
Into Five Categories. Information Input Information Processing Product - Brand Evaluation
General Motivating Influences

Internationalised Environmental Influences

The Five Steps (Activities) Involved In The Decision Process Stage Are Briefly
Explained Hereunder:

(1) Problem Recognition: The Consumer Will Recognise A Difference Between His Or Her
Actual State And What The Ideal State Should Be. This May Occur On Account Of External
Stimuli, For Example A Young Girl Has Seen An Advertisement Of An Exhibition Of
American Diamonds And May Feel The Desire To Possess The Same Or Seeing A Beautiful
Dress Displayed In The Show-Room May Make A Youngster To Feel The Need For A New
Dress.

It May Be Noted That The Consumer Must Perceive A Sufficiently Large

Discrepancy Between Actual And Ideal States In Order To Be Activated, Recognise A
Problem And Find A Way To Solve It.

39 | Page
(2) Information Search: Initially The Information Available With The Consumer May Be
Consistent To The Beliefs And Attitudes Held By Him Or Her. While Being Involved In An
Information Seeking Or Search Stage, The Consumer Will Try To Gather More Information
From Various Sources. These Sources Could Be Sales Persons, Personal Or Friends Or
Neighbours Or Mass Communication Media. The Information Processing Takes Place In
Various Stages. The Individual Gets Exposure Of The Stimuli Which May

Catch His Or Her Attention, Be Received And Stored Or Retained In Memory. This
Method Of Information Processing Is Selective In Nature And The Consumer Will
Accept The Information Which Is Conclusive To What Is Perceived By Them.

(3) Alternative Evaluation :Now The Individual Will Evaluate The Alternative Brands. The
Methods Used For Evaluating The Various Products Will Be Dependent On The Consumers
Underlying Goals, Motives And Personality. The Consumer Also Has Certain
(Predetermined) Beliefs About The Various Brands In Terms Of The Characteristics
Associated With The Different Brands. Based On These Beliefs The Consumer Will Respond
Either Positively Or Negatively Towards A Particular Brand.

(4) Choice: The Consumers Choice Will Depend On His Or Her Intention And Attitude. The
Choice Will Also Depend Upon Normative Compliance And Anticipated Circumstances.

Normative Compliance Relates To The Extent To Which The Consumer Is

Influenced By Other People Like Friends, Family Members Etc. Thus Normative Compliance
And Anticipated Circumstances Will Attempt To Influence The Individual. The Persons
Choice Of The Product Can Also Be Dependent On The Sensitivity Of The Individual To
Handle Unanticipated Circumstances Like Losing The Job, Funds Diverted For Another
Urgent Cause Etc.

At This Stage, A Purchase Decision Is Likely To Occur Unless When

Confronted By Un Anticipated Circumstances. In Case Of The Latter Occurring, It May Act
As A Barrier To The Purchase Decision.

2.9 Consumer Buying Behaviour Process

40 | Page
 One Of The Very Few Aspects Common To All Of Us Is That We Are All
Consumers And The Reason For A Business Firm To Come Into Being Is The Presence Of
Consumers Who Have Unfulfilled, Or Partially Fulfilled Needs And Wants. Buyer Behaviour
Is An Extremely Important And Complex Subject For Any Marketer. At The Same Time, It
Is Important To Appreciate That There Is No Unified, Tested, And Universally Established
Theory On This Subject. Buyer Remains An Enigma And Her/His Mind Is Viewed As A
Black Box. Before Businesses Can Develop Marketing Strategies, They Must Understand
What Factors Influence Buyer Behaviour And How They Make Purchase Decisions To
Satisfy Their Needs And Wants. Understanding Buyer Behaviour And “Knowing Buyers”
Are Not That Simple. It Is Almost Impossible To Predict With One Hundred Per Cent
Accuracy How Buyers Will Behave In A Certain Situation. Buyers Are Moved By A
Complex Set Of Deep And Subtle Emotions. Their Behaviour Results From Deeply Held
Values And Attitudes; Their Perceptions Of The World And Their Place In It, From Common
Sense, Impulse, Or Just Plain Whimsy.

“Consumer Behaviour Refers To The Mental And Emotional Processes And The
Observable Behaviour Of Consumers During Searching, Purchasing, And Post Consumption
Of A Product Or Service.”

Satish K. Batra And S. H. H. Kazmi,

Buyer Behaviour Has Two Aspects: The Final Purchase Activity Visible To Any
Observer And The Detailed Or Short Decision Process That May Involve The Interplay Of A
Number Of Complex Variables Not Visible To Anyone. Actual Purchase Is Just One
Activity, But The Process Is Initiated Several Steps Prior To A Purchase And Often
Progresses Beyond Consumption. In Fact, Purchase Behaviour Is The End Result Of A Long
Process Of Consumer Decision-Making, Influenced By Many Variables.

32

Figure-2

41 | Page
 Various Factors Influencing Consumer Behaviour

Social Personal Factors

Factors Psychological Factors

Motivation Perception Demographic Factors

Culture And Subculture Learning Attitudes Lifestyle

Roles And Family Social Personality Situational Factors

Class Reference Groups Involvement Level

Consumer Decision-Making Process

Problem Information Alternatives Purchase Post-

Recognition Search Evaluation Action Purchase

Actions

42 | Page
 DATA COLLECTION
AND ANALYSIS

43 | Page
Table 1.3. Compared

44 | Page
Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Disagree
Neutral
Agree
31
26
69
126
24.6
20.6
54.8
100.0
24.6
20.6
54.8
100.0
24.6
45.2
100.0
Total
Source: Authors Estimation

Table 1.1 Indicate that 99.2% people purchased beverage brad and 0.8% people not
used
beverage brands. It shows that majority of people in Pakistan used beverage brands.
Table 1.2. Choice
To observe the influence of consumer behavior towards beverage brands first I used
frequency
Analysi+s on variables to examine the frequency of people and the majority of people are
brand
conscious or brand unconscious. Second, regression analysis is used to examine the
connection
between dependent and independent variables.
Frequency analysis:
Table 1.1. Purchased

45 | Page
 Source: Authors Estimation
Table 1.2 indicates that 60.3% people in Pakistan prefer Coca cola and 39.7% peoples
choice is
Pepsi cola that shows majority of people in Pakistan like coca cola brand.

Table 1.3 indicate that 24.6% people are not compared different brand before
purchasing,
20.6% neutral and 54.8% people are fully agree to compared the different beverage
brands
before purchasing. Mean majority of people in Pakistan are branding conscious.

Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Undesirable
Neutral
Desirable

46 | Page
Total
7
12
107
126
5.6
9.5
84.9
100.0
5.6
9.5
84.9
100.0
5.6
15.1
100.0
Source: Authors Estimation
Table 1.5. Quality brand
Frequenc Percent Valid
Cumulative
Percent
y
Percent
Undesirable
Neutral
Desirable
Total
11
11
104
126
8.8
8.7
82.5
100.0
8.8
8.7
82.5
100.0
8.8
17.5
100.0
Source: Authors Estimation
Frequenc Percent Valid

47 | Page
Cumulative
Percent
y
Percent
Undesirable
Neutral
Desirable
Total
19
39
68
126
15.1
31.0
53.9
100.0
15.1
31.0
53.9
100.0
15.1
46.1
100.0
Source: Authors Estimation

Table 1.4 indicates that 5.6% people are undesirable about the taste when they choosing
a
beverage brand, 9.5% are neutral and 84.9% are desirable about the taste when they
choosing
a beverage brand.
Table 1.5 indicates that 8.8% people are undesirable about the quality of beverage
brands
when they choosing, 8.7% are neutral and 82.5% people are desirable about the quality
of
beverage brands..
Table 1.6. Price
Table 1.6 shows that 15.1% people in Pakistan are undesirable about the price of
beverage
brands of Pakistan, 31% are neutral and 53.9% people are desirable

48 | Page
Table 1.7. awareness

49 | Page
Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Undesirable
Neutral
Desirable
Total
9
11
106
126
7.1
8.7
84.1
100.0
7.1
8.7
84.1
100.0
7.1
15.9
100.0
Source: Authors Estimation
Dependent variable: Beverage Brand
Method: Least Squares
Variables
Constant
Coefficient
1.991
Standard Error
0.434
T-Value
4.590
Consumer
Behavior
0.229
0.079
2.889
Source: Authors Estimation

50 | Page
Table 1.7 indicates that 7.1% people are undesirable about the awareness of beverage
brands
when they choosing, 8.7% are neutral and 84.1% people are desirable. It shows majority
are
desirable about the awareness of beverage brands.
Regression analysis:
Table 1.8

Table 1.8 shows beta values which means individual independent consumer behavior
variable
influence on dependent variable of beverage brands (Coca cola & Pepsi cola) of
Pakistan.
Results indicate that consumer behavior has the strong influence on beverage brands
(Coca
cola and Pepsi cola) of Pakistan with beta value 0.251. If we increase the 1 unit of
consumer
behavior its influence on beverage brands is 1.23%.

51 | Page
Prob.
0.000
0.005
Beta

0.251

52 | Page
 FINDINGS OF
STUDY

findings

1.

53 | Page
 2. Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation
of Two Critical Brand Equity Drivers

3. A Global Investigation into the Constellation of Consumer Attitudes Toward Global and
Local Products

4. Promoting Brands Across Categories with a Social Cause: Implementing Effective

Embedded Premium Programs

5. Motivating Salespeople to Sell New Products: The Relative Influence of Attitudes,

Subjective Norms, and Self-Efficacy

6. Does Accommodating a Self-Serving Partner in an International Marketing Alliance Pay

Off? )

7. Geographical Information Systems—Based Marketing Decisions: Effects of Alternative

Visualizations on Decision Quality

8. How Complementarity and Substitution Alter the Customer Satisfaction—Repurchase

Link)

9. Resistance to Brand Switching When a Radically New Brand Is Introduced: A Social

Identity Theory Perspective

54 | Page
Culture And Subculture

Culture Influences Consumers Through The Norms And Values Established By The
Society In Which They Live. It Is The Broadest Environmental Factor That Influences
Consumer Behaviour. The Impact Of Culture Is Automatic And Almost Invisible And Its
Influence On Behaviour Is Usually Taken For Granted. Culture Operates Primarily By
Setting Somewhat Loose Boundaries For An Individual Within A Society And By
Influencing The Functions Of Different Institutions Such As Family And Mass Media.

Culture Operates Primarily By Setting Somewhat Loose Boundaries For Individual

Behaviour Within A Society And By Influencing The Functioning Of Different Institutions
Such As Family And Mass Media. Within The Given Framework Of Culture, Individual And
Household Lifestyles Evolve. The Boundaries Set By Culture On Behaviours Are Referred
To As Norms, Derived From Cultural Values And Are The Rules Permitting Or Prohibiting
Certain Types Of Behaviours In Specific Situations. Members Of A Society Obey Cultural
Norms Without Deliberation Because Behaving Otherwise Is Viewed As Unnatural. For
Example, We Are Rarely Aware Of How Close We Stand To Other Individuals In A Formal
Meeting. This Norm Is Adhered To, Though This Well-Defined Distance Varies From
Culture To Culture. In India, Kissing Women In Public Is Not An Accepted Norm, While In

55 | Page
Western Cultures It Is Quite Normal. Persons Flouting Cultural Norms Face Sanctions Or
Penalties, Which Can Be In The Form Of Mild Or Severe Social Disapproval. There Are Any
Number Of Organised Group Reprisals In The Rural Areas Of India,.

Culture Not Only Influences Consumer Behaviour But Also Reflects It. It Is A Mirror
Of Both The Values And Possessions Of Its Members. Cultures Are Not Static But Evolve
And Change Slowly Over Time. Marketing Strategies Are Unlikely To Change Cultural
Values, But Marketing Does Influence Culture.

Advertising Agencies, Fashion Design Houses, Music Companies, Cinema, Etc., Are All
Producers Of Culture. They Are All Responsible For Creating And Producing Products And
Services Designed To Meet Cultural Goals. Their Products And Services Influence The
Desire To Be Beautiful, Independent And Socially Recognised, Etc.

Culture Influences What People Wear, What And How They Eat, Where They Live, Etc. It
Has A Broad Influence On Their Buying And Usage Behaviour Of Products And Services,
And The Extent Of Their Satisfaction With Them. For Example, Indians Eat Their Food With
Their Fingers And Shun The Fork-Knife-Spoon Combination, While In Many Far Eastern
Countries, Chopsticks Are Used For This Purpose. In Some Cultures Such As That Of India,
Where Washing Clothes Is Done By Hands, Manufacturers Of Laundry Products Offer
Washing Soaps And Detergent Cakes To Satisfy The Needs Of A Majority Of Indians.
Culture Also Influences To Some Extent How Consumers Purchase Products And Use Them,
And This Determines The Development, Pricing, Promotion, And Distribution Of Products.
In Western Countries, With Their Full Service Supermarkets, Some Significant Differences
In Shopping Can Be Observed.

Marketers Are Always Concerned About Cultural Shifts And Keen To Discover New
Products Or Services That Consumers May Want. Women Are Trying To Become More
Independent Financially And Are Joining The Work Force In India. The Number Of Dual
Income Homes Is Increasing In Urban Areas. The Need To Provide Care To Children During
Work Hours Has Resulted In The Emergence Of Childcare Services Such As Crèches, And
Day-Care Play Schools. The Shift To Nuclear Families And Smaller Houses/Flats Has Led
To Demand Not Only For Time Saving Devices But Also Smaller Gadgets For The Kitchen.
Cultural Shift Toward Greater Concern For Health And Fitness Is Leading To Introduction

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Of Health And Fitness Services, Exercise Equipment, Clothing, And A Variety Of Health-
And-Fitness Related Foods And Drinks.

Subcultures Exist Within A Given Dominant Culture. Culture Is Viewed As

Consisting Of Basic Patterns Of Behaviour That Exist Within A Society At National Level.
Within This Broad Culture, One Can Easily Distinguish Relatively More Homogeneous And
Fairly Large Groups That Follow The Dominant Cultural Values But Also Have Other Quite
Distinct Beliefs, Values, Customs, And Traditions That Set Them Apart From The Larger
Cultural Mainstream. These Represent The Subcultures That May Be Based On Religion,
Region, Ethnic Groups, Language, Age, Gender, And Many Other Differences. In India, We
Often Differentiate Subcultures When Someone Is Described As A South Indian, Punjabi,
Kashmiri, Gujrati, Bengali, Etc. However, The Diversity Of Subcultures

In India Is Simply Mind-Boggling. These Subcultures Show Significant Preference For A

Particular Type Of Diet, Clothing, Ceremonies, Etc.

Out Of Several Sub-Cultures In India, Only Some Are Important From The Marketers
Point Of View For Formulating Separate Marketing Programmes. Much Depends On The
Relevance Of A Product Category To A Particular Subculture. For Example, Cosmetics Are
Popular Among Ladies, No Matter To Which Subculture They Belong. Similarly, Jeans And
T-Shirts Are Very Popular Among Urban And Semi-Urban Teenagers Irrespective Of
Whether They Are Hindus, Muslims, Sikhs, Or Christians.

Distinct Regional Subcultures Arise Due To Climatic Conditions, The Natural

Environment And Available Resources, Language And Significant Social And Cultural
Events. Such Groups Can Be Identified As Having Distinct And Homogeneous Needs,
Tastes, Lifestyles And Values. Anyone Who Has Travelled Across India Would Have
Probably Noted Many Regional Differences In Consumers Consumption Behaviour,
Particularly With Regard To Dress, Food And Drink. For Example, South Indians Prefer To
Drink Coffee, While Most North Indians Use Tea. Dog Meat Is Considered A Delicacy In
Certain North-Eastern Parts Of India, Which May Shock Consumers In Other Parts Of The
Country. Given Such Clear Differences In Consumption Patterns, Marketers Have Realised
That India Is In No Way A Single Market For At Least Some Product Categories.

57 | Page
58 | Page
CONCLUSION AND
SUGGESTIONS

59 | Page
Conclusions, implications and suggestions for further research Quantifying the relations
between the main dimensions of fair trade attitudes and other A Model for Fair Trade Buying
Behaviour 375 determining factors of fair trade buying behaviour and their sub-dimensions
has identified a number of crucial factors in the fair trade buying process. First, the important
role of the perceived quality of fair trade information is highlighted. Better and more credible
information about the fair trade issue and about fair trade products indirectly stimulates fair
trade buying behaviour. Second, overall attitudes (concern and scepticism) towards the fair
trade issue have a strong influence on buying behaviour directly and indirectly through
consumers attitude towards products. Product-related attitudes seem to play a prominent role:
especially product interest has a large impact on buying behaviour. These results have a
number of implications for fair trade organizations and governments that wish to promote or
help to promote fair trade practices. First, campaigning for and investing in fair trade
knowledge and the building of positive attitudes towards the fair trade issue in general, and
removing scepticism — one of the key activities of the fair trade movement — remain useful
strategies; improving knowledge and overall attitudes directly and indirectly lead to more
buying. Concern should be raised and scepticism should be reduced. This is an ongoing
concern for fair trade organisations who, indeed, launch mass media campaigns and more
targeted communication campaigns (for instance in schools) to raise awareness and improve
attitudes. Second, the focus should shift towards building more positive product interest,
because this has a strong, direct effect on buying behaviour. Transforming general positive
attitudes into product interest is therefore important. There are various ways to achieve this.
Fair trade organizations could focus more on building prominent and highly visible brands
with a good reputation. Instead of mainly focusing on selling their products in specialty
shops, they could invest more in making fair trade products visible in regular supermarkets.
Organizing product-oriented promotion and communication strategies, and increasing the

60 | Page
trial potential of fair trade products, may also be helpful. Recently, Oxfam Belgium has
decided to promote its brand more visibly on the shop floor and to that end attempts to
cooperate with major supermarkets to get more shelf space and in-store promotion.
Governments could support this customer contact strategy by means of visibly promoting and
organizing contact with fair trade products. The policy of certain Belgian governmental
departments and schools and universities to only offer fair trade coffee in their restaurants
and vending machines is a good example of actively developing positive product interest and
attitudes. Besides convincing the public that the fair trade price premium is acceptable,
governments could help to close the price gap between none fair trade and fair trade products
by modifying the tax system to favour fair trade products. Finally, disseminating the
appropriate amount of perceived high-quality information about the fair trade issue and fair
trade products is crucial: it improves overall attitudes and product attitudes, and indirectly
affects buying behaviour positively. A greater focus on disseminating credible product
information is required. A well-supported fair trade brand or fair trade label, issued or
endorsed by a highly credible organization, may encourage the crucial perception of highly
credible information that incites consumers to buy the products. Governments (both national
and supra-national, such as the European Union) could support this process by organizing the
integration of label initiatives, as is currently done in the case of social and eco-labels. Fair
trade organisations, such as Oxfam and Max Havelaar, have shifted their strategy towards
building more highly visible brands and labels, and to make these labels more credible and
convincing. Governments are considering to establish and support national or European
social labels in an attempt to reach the public on the basis of the brand effect that these labels
may have: a trusted brand from a credible source may be a powerful attribute to convince
concerned but sceptical consumers. This study focused on a sample of the Belgian
population. Although Belgium appears to be representative of Europe in terms of ethical
buying behaviour, further research could explore the differences between various European
countries and between the European and North American markets, and their effect on the
marketing of fair trade products. Furthermore, to improve the marketing relevance of this
analysis, the model could be applied to subgroups of the population, to allow for differences
in the role of attitudes, information and control beliefs in the buying behaviour of various
consumer groups. For instance, people who frequently buy fair trade products may have
different persuasion routes from those who do not. The sample studied here was 376 Patrick
De Pelsmacker and Wim Janssens too small to enable a more detailed analysis of separate
consumer groups. The scope of the study could be extended to other ethical issues, such as

61 | Page
environmentally friendly or biological product buying behaviour, or buying from socially
responsible companies. The qualitative focus group study revealed a detailed opinion of the
impact of various quality- and quantity-related aspects of fair trade information. However,
these different aspects were not reflected in the quantitative study in which the respondents
only perceived two broad categories of information aspects: overall quantity and overall
quality. Therefore, the role of information about the fair trade issue and fair trade products
should be explored in more detail: which aspects of the quantity and quality of information
have the strongest impact on attitudes and behaviour, which types of information, arguments
and media are preferred, to what extent do they influence general and product-specific
attitudes and behaviour, and which type of messages have more impact than others? Finally,
self-reported ethical attitudes and buying behaviour are susceptible to social desirability bias.
Further research could focus upon this phenomenon, by explicitly including a social
desirability scale and assessing its impact on the fair trade buying model. Appendix: Means
and standard deviations for model constructs and indirect and total effects for the buying
behaviour model TABLE A1 Means and standard deviations of model constructs Mean Std.
deviation Knowledge 5.83 0.94 Information quality 3.62 1.24 Information quantity 2.21 1.00
Concern 5.37 1.02 Scepticism 3.39 1.23 Convenience 3.42 1.66 Price acceptability 2.73 1.24
Product likeability 3.87 1.26 Product interest 4.54 1.42 All constructs are positively scaled
(except scepticism). TABLE AII Standardized indirect effects and their significance
Construct 2 3 4 5 6 7 8 9 10 1. Knowledge 0.134 (0.001) 0.101 (0.001) )0.196 (0.001) 0.090
(0.014) 0.240 (0.001) 0.175 (0.001) 0.447 (0.001) 0.261 (0.001) 2. Information quality )0.150
(0.001) 0.067 (0.001) 0.174 (0.003) 0.391 (0.001) )0.083 (0.142) 0.362 (0.001) 0.284 (0.001)

It Is More Relevant For Marketers To Study And Understand Sub-Cultures On A

Regional Basis, Particularly Language, Food Habits, Festivals, Gift Giving, Customs, Etc.
Some Major Indian Sub-Cultural Groups Include Punjabi,

Gujarati, Marwari, Marathi, Tamil, Oriya And Bengali.

In Developed And Most Developing Countries, Marketers Are Increasingly Interested

In Targeting Working Women Because They Constitute A Sufficiently Large And Growing
Market. They Have A Different Set Of Needs Compared To Women Who Do Not Work
Outside Their Homes. Working Women Shop Less Frequently, Spend Less Time Shopping

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And Are More Brand And Store-Loyal. They Are More Likely To Go Shopping After Office
Hours In The Evening.

After Examining Advertising Response To Financial Services, Lynn J. Jaffe Has Reported
That The Use Of A “Modern” Positioning Strategy, That Is, A Focus On

Career And Family, Proved More Effective With Women Than A More Traditional
Positioning Strategy Of Focusing On “Nurturing And Family.”

Roles And Family

All Of Us Occupy Some Positions Within Family, Groups, Organisations Etc. A

Role Refers To A Set Of Functions And Activities That An Individual In A Particular
Position Is Supposed To Perform, Based On Ones Own And Others Expectations. An
Individual May Have Several Roles And Sets Of Expectations Placed On Her/His
Behaviour. He Can Be A Son, Husband, Father, Employee, Friend, Teacher, And Club
Member. These Different Roles Influence A Persons General As Well As Buying
Behaviour. For Example, The Father Is A Teacher And Wants To Buy A Laptop
Computer, But The Son Who Has Just Entered College Wants A Motorcycle And Insists
That Father Should Postpone His Computer Purchase. Such A Situation May Have A
Bearing On An Individuals Buying Behaviour.

Figure-6

Joint Decision Making Process

Initiator Gatekeeper Influencer Decision- User

(Evaluation Maker Buyer

(Need → (Information → → → → (Consumption

Recognition) Search) Of (Decision (Purchase & Evaluation)

Alternatives To Buy)

Figure-7

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 Family Decision Process For Childrens Products

Gatekeepers

(Parents)

Communications Initiators Decision Buyers Users

Targeting (Parents, → Makers → →

(Parents) (Children)
Parents Children) (Parents)

Communications

Targeting

Children

Influencer

(Children)

A Persons Changing Roles In Family Lifecycle-Very Significantly Influence Types

Of Purchases And Buying Behaviour. Gradually, At Least In Urban Areas

Womens Roles Are Changing As Many Women Are Taking Up Different Types Of Jobs.
Increasing Numbers Are Joining Central And State Governments In Administrative
Positions; Others Are Opting For Professional Positions Such As Engineers, Doctors, And
Executives In Business And Industry.

In Case Of Many Products And Services, Husband And Wife Jointly Make Purchase
Decisions, Particularly For Durable Goods. Children Also Now Play- A Bigger Role In Some
Family Purchases. When Two Or More Family Members Are Involved In Making A Certain
Purchase Related Decision, Each May Take Up Different Role(S) Such As Initiator Of The
Idea; Gatherer Of Information Regarding Different Brands; The Decider Selects Specific
Brand And Also Perhaps The Outlet; And Finally, There Is The Actual Buyer. Marketers

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Need To Know The Influence Of All These Roles And Develop A Marketing Mix That
Takes Care Of Needs And Wants Of A Target Market.

In Case Of Consumer Durables Product The Decision Of Brand May Be Taken By

Chief Wage Earner But The Decision About The Type Of Product Or Model Having Better
Or Basic Facility Decision Is To Be Taken By The Female Members Of The Family

Social Class

Many People Like To Think (And Say) That All People Are Created Equal.

However, In All Societies There Are Some People Who Are Ranked Higher Than Others.
Social Class Can Be Viewed As A Range Of Social Positions In A Society. Social Class
Defines The Ranking Of People In A Society Into A Hierarchy Of Distinct Status Classes;
Upper, Middle And Lower, So That The Members Of Each Class Have Relatively The Same
Status Based On Their Power And Prestige.

Social Class Means Societal Rank, Which Is Ones Position Relative To Others On
One Or More Dimensions Valued By Society. Social Class Is Based On Demographic
Variables That Others In Society Aspire For And Hold In High Esteem. These Characteristics
Precipitate Unique Behaviours. Social Classes Range From The Lower To The Upper. Those
With Few Or None Of The Socio-Economic Factors Desired By Society Represent Lower
Class, While Persons Who Possess Many Of The Socio-Economic Characteristics Desired By
The Society Constitute Upper Class. Individuals In Different Social Classes Tend To Have
Different Consumption Patterns.

39

Figure-8

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 Social Class Results From Socio-Economic Factors

Socio- Unique

Economic Social Class

Behaviours
Factors

Education Upper Class

Occupation Middle Class Preferences

Income Level Lower-Middle Purchases

Ownership Class Lower Consumption

Heritage Class

Social Class Is Often Measured In Terms Of Social Status. Subjective Values Set
By A Society Determine The Ideal Types Of People In That Society.

Important Factors That Determine The Status In Most Societies Include: Authority Over
Others; Political, Economic, Military, Or Religious Power; Ownership Of Property,
Income, Occupation, Lifestyle And Consumption Patterns, Education; Public Service,
Ancestry And Connections.

Social Class Influences People And They May Develop And Exhibit Common
Behavioural Patterns. They May Have Similar Desires, Attitudes, Preferences, And
Possessions. Consumers Buy Products Not Only For What They Can Do But Also For
What They Mean, Because Products Or Services Are Seen To Possess Personal And Social
Meanings In Addition To Their Functional Attributes. Our Possessions Such As The
Houses We Live In, The Cars We Own, The Clothing We Wear, Or The Watches That
Appear On Our Wrists, Are Indicators Of Social Class. Possessions Of Products Or Other
Signs Of Wealth Have Always Been Signs Of Achievement Or Status Symbols. The
Things Consumers Buy Become “Symbols” That Tell Others Who They Are And What

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 Their Social Class Is. In Societies Where Financial Wealth Signifies Status, Possessions
Become An Indicator Of Income And Wealth, Since Others Are Unlikely To Know How
Much One Earns. Thus, There May Be Members At Each Social-Class Rung Who Aspire
To Achieve A Higher Status By Acquiring Those Symbolic Possessions That Are Marks
Of Distinction Enjoyed By A Higher Rung In The Social Status Ladder.

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 QUESTIONNAIRE

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69 | Page
 “A STUDY ON CUSTOMER PREFERENCE TOWARDS
SELECTED FMCG WITH SPECIAL REFERENCE TO COIMBATORE
CITY”
QUESTIONNAIRE
1. Personal details

Name :…………………………………………………..

Location :…………………………………………………..

Age : Below 20 years 21-30 years

31-40 years above 40 years

Sex : Male Female

Marital status :

Married Unmarried

Educational qualification :

School level Degree /Diploma

PG Professional
Occupational status :

Student House wife

Employed Business

Monthly income of the family

Up to Rs.5, 000 Rs. 5,000 to10 000

Rs.10,000 to Rs.20,000 Above 20,000

No. of members in the family

Up to 2 2 to 4

4 to 6 Above 6

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 2. Which of the following format you prefer to make purchase?

Departmental Store Super Market

Convenient Stores Kirana Stores

3. Which of the following Retail stores do you prefer most for buying FMCG`s?

(Rank from 1 to 5 5-Most Prefered 1-Least Prefered)

Rank
5 4 3 2 1
Store

Reliance Fresh
Aditya Birla MORE
Big Bazaar
Nilgris
Kannan

4. Select the reason for making purchase in your preferred store?

Discount Variety Service

Proximity Ambience

5. Mention the frequency of purchase for the following products?

Not at
S.No Merchandise Always Often Sometimes
all

1 Cold drinks

2 Toothpaste

3 Detergent

4 Skin & Hair Care

5 Toilet soaps

6. How often discounts & incentives are provided by the departmental stores?

Always Often

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 Sometimes Not at all

7. Are you aware of these brands available in market? (If yes,tick in the box)

Skin Care:

Fair&Lovely Garnier

Ponds Nivea

Hair Care:

Head & Shoulder Clinic Plus

Pantene Meera

Detergent Powder:

Surf Ariel

Rin Tide

Wheel

Toilet Soap:

Hamam Pears

Dove Cinthol

Medimix Dettol

Cold Drinks:

Coca Cola Pepsi

Mirenda Fanta

Limca

Tooth Paste:

Colgate Closeup

Pepsodent Promise

8. Do you think branded products are better than unbranded products?

Yes No

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 9. Rank the preference for the following brands? (5- Most Prefered, 1- Least Prefered)

(example: If Garnier is Most prefered by you,then tick 5)

Rank
5 4 3 2 1
Brands

Skin Care:

Ponds

Garnier

Himalaya

Nivea

Hair Care:

Head & Shoulders

Clinic Plus

Pantene

Meera

Detergent Powder

Surf

Tide

Ariel

Rin

Wheel

Toilet Soap

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 Hamam

Pears

Dove

Cinthol

Dettol

Medimix

Tooth Paste

Colgate

Pepsodent

Close up

Promise

Cold Drinks:

Coca Cola

Pepsi

Mirenda

Fanta

Limca

10. How long you have been using above stated brands?

Last six months 6 months to 1 year

1 - 2 years More than 2 Years.

11. Rank the factors that influence you most for the purchase of the following
brand.(Rank from 1to6 where 6 is Most influence and 1 is least influence)

Factors Availabilit Brand Promotiona Advertisemen Qualit

Price
y Image l Offers t y
Brands

Skin care

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 Ponds

Garnier

Fair & Lovely

Nivea

Hair care

Head &
Shoulder

Garnier

Pantene

Clinic plus

Detergent Powder

Surf

Tide

Ariel

Wheel

Rin

Tooth Paste

Pepsodent

Colgate

Close up

Promise

Cold drinks

Pepsi

Coca cola

Fanta

Mirenda

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 12. Do you look for various schemes in the FMCG products?

Yes No

If yes which schemes?

Coupons Price Off Extra Quantity

Lucky Draws Bundling Offer Scratch Cards

13. Will you like to switch your brand preference if you get some promotional scheme
with another brand?
Yes No

14. Give reason for the same?

Cost Quality Satisfaction

More benefit Seasonal Change

15. Had you used any other brands before this current brand?

Yes No

16. Who influence your preference for brands?

Family Friends Advertisement
Self

17. Does the advertising play any role towards brand preference?

Yes No

If yes, Which media influenced your brand preference?

Television

News paper

Pamphlets

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 Word of mouth

18. Have you purchased any FMCG brands recently after coming across any
advertisement?

Yes No

19. In what way advertisement has influenced you?

Better Recall positive impression Interest

Better exposure

20. State your Suggestions if any ……………………………………………………..

…………………………………………………………………………………………

…………………………………………………………………………………………

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 BIBLIOGRAPHY

78 | Page
Reference Groups

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 A Reference Group Refers To A Group Of People With Whom An Individual
Identifies Herself/Himself And The Extent To Which That Person Assumes Many Values,
Attitudes, Or Behaviours Of Group Members.

Almost All Of Us Have Several Reference Groups Such As Family, School Or

College Related Groups, Work Groups, Club Memberships, Etc. Nearly The Entire Spectrum
Of Consumer Behaviour Takes Place Within A Group Setting. In Addition, Groups Serve As
One Of The Primary Agents Of Consumer Socialisation And Learning And Can Be
Influential Enough To Induce Not Only Socially Acceptable Consumer Behaviours But Also
Socially Unacceptable And Even Personally Destructive Behaviours. For Example, Group
Influences Sometimes Affect Excessive Consumption Of Alcohol, Use Of Harmful And
Addictive Drugs, Shoplifting Etc.

An Individual Can Be A Member Of A Reference Group Such As The Family And

Would Be Said To Be Part Of A Membership Group. This Same Individual May Aspire To
Belong To A Cricket Club And Would Be Said To Be A Part Of An Aspiration Group. A
Disclaimant Group Is One To Which An Individual May Belong To Or Join And Then
Reject The Groups Values. An Individual May Also Regard The Membership In A Specific
Group As Something Undesirable And To Be Avoided. Such A Group Is A Dissociative
Group.

Membership Groups And Aspiration Groups Are Viewed Positively; Disclaimant

And Dissociative Groups Are Viewed Negatively. Marketers Advertise To Appeal To The
Desire To Be Part Of A Group And Very Rarely Appeal To The Desire To Avoid Or
Disclaim A Group. When They Do, They Do It For Shock Effect, To Drive Home The Point
In A Dramatic Manner. Even Ad Appeals Used To Encourage Non-Conformity Are Made
On A Positive Note To Being Different From Everyone Else. Marketers Tend To Focus On
Membership And Aspiration Groups.

Group Memberships And Identity Are Very Important To Most Of Us. Apparently
Most Of Us Do Not Like To Think That We Are Conformists, But The Truth Is That We
Generally Conform To Group Expectations Most Of The Time.

Marketers Often Advertise Their Products Showing Group Settings Such As Family, Friends,
Neighbours, Etc.

The Degree Of Group Influence Depends On An Individuals Sense Of Identity, Value

Systems, Strength Of Involvement With The Group And Tendency Of Accepting Influence

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Of Reference Group. Reference Groups May Influence Both Purchase Decision As Well As
The Brand Choice.

Psychological Factors

Psychological Factors Are Internal To An Individual And Generate Forces Within

That Influence Her/His Purchase Behaviour. The Major Forces Include Motives,
Perception, Learning, Attitude, And Personality.

Motivation

This Refers To Driving Forces Within An Individual Produced By A State Of

Tension Caused By Unfulfilled Needs, Wants, And Desires. Individuals Strive To Reduce
This Tension Through Some Appropriate Behaviour That They Expect Will Satisfy Their
Needs. Much Depends On Individual Thinking And Learning In Selecting The Goals And
The Patterns Of Behaviour That They Believe Will Satisfy Their Needs. Whether An
Individuals Need Is Fulfilled Leading To Reduction Of Tension, Depends On The Course
Of Action The Individual Takes.

Figure-9

Motivation Process

Learning

Unfulfilled

Needs, Appropriate Goal Or

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 Wants → Felt → Drive → Need
Behaviour
And Tension Fulfillment

Desires

Cognitive Processes

Tension Reduction

Consumers, At Any Given Time, Are Generally Influenced By A Set Of Motives

Rather Than Just One Motive. The Strength Of An Individuals Motives May Vary At
Different Times And Occasions. For Example, A Persons Motive For Water And Food
Would Be Much Stronger After Observing A Twelve-Hour Fast Than After Having Had
Water And Food Two Hours Earlier. Many Different Motives Influence Purchase
Behaviour At The Same Time. A Middle-Income Group Person Buying A Car Might Be
Motivated By Several Characteristics, Such As Transportation Convenience, Comfort,
Social Distinction, And Economy. This Will Have Implications For Auto Manufacturing
Companies Offering Cars To Consumers.

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