CONSUMER BEHAVIOUR & ADVERTISING MANAGEMENT

UNIT 1

Consumer Behaviour

Meaning of Consumer Behaviour:

Consumer behaviour may be defined as follows:

Consumer behaviour is a study of a complex of those factors which result in

particular buying decisions of consumers-based on rationality, emotions or
compulsions.

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Ostrow and Smith (The Dictionary of Marketing) have defined consumer

behaviour as follows:

“Consumer behaviour is actions of consumers in the market place and the

underlying motives for those actions.”

Salient features of the concept of consumer behavior:

Some salient features of the concept of consumer behaviour are

described below:

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(i) Consumer behaviour is a subset (or part) of the human behaviour and cannot
be separated from it.

(ii) Consumer behaviour may be based on either of the three forces, resulting in
a buying decision-rationality or emotions or some compulsions i.e. while buying
a particular item of consumption, a person may act rationally (according to
reason or logic); or may act emotionally; or may go in for buying something due
to certain pressure caused by family or social circumstances.

(iii) Consumer behaviour is an outcome of many factors; which are quite

complex and interrelated.

(iv) Consumer behaviour is not what people buy and why. It is rather, a study of
the tendency of people to buy or not to buy certain things, over a period of time.

Nature of Consumer Behaviour:

1. Influenced by various factors:

The various factors that influence the consumer behaviour are as

follows:

a. Marketing factors such as product design, price, promotion, packaging,

positioning and distribution.

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b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and

attitudes towards the product.

d. Situational factors such as physical surroundings at the time of purchase,

social surroundings and time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time
depending on the nature of products. For example, kids prefer colourful and
fancy footwear, but as they grow up as teenagers and young adults, they prefer
trendy footwear, and as middle-aged and senior citizens they prefer more sober
footwear. The change in buying behaviour may take place due to several other
factors such as increase in income level, education level and marketing factors.

3. Varies from consumer to consumer:

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All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behaviour are due to individual factors
such as the nature of the consumers, lifestyle and culture. For example, some
consumers are technoholics. They go on a shopping and spend beyond their
means.

They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are
other consumers who, despite having surplus money, do not go even for the
regular purchases and avoid use and purchase of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For
example, the behaviour of the urban consumers is different from that of the
rural consumers. A good number of rural consumers are conservative in their
buying behaviours.

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The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to buy
luxury items such as cars and household appliances. The consumer behaviour
may also varies across the states, regions and countries. It may differ depending
on the upbringing, lifestyles and level of development.

5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They

need to study the various factors that influence the consumer behaviour of their
target customers.

The knowledge of consumer behaviour enables them to take appropriate

marketing decisions in respect of the following factors:

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a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

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6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may

take the decision of buying a product on the basis of different buying motives.
The purchase decision leads to higher demand, and the sales of the marketers
increase. Therefore, marketers need to influence consumer behaviour to
increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some

consumers who may buy more quantity of certain items and very low or no
quantity of other items. For example, teenagers may spend heavily on products
such as cell phones and branded wears for snob appeal, but may not spend on
general and academic reading. A middle- aged person may spend less on
clothing, but may invest money in savings, insurance schemes, pension
schemes, and so on.

8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living.
The more a person buys the goods and services, the higher is the standard of
living. But if a person spends less on goods and services, despite having a good
income, they deprives themselves of higher standard of living.

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9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but
it also reflects it. The consumers who own luxury cars, watches and other items
are considered belonging to a higher status. The luxury items also give a sense
of pride to the owners.

Significance of Studying Consumer Behaviour:

A study of consumer behaviour is significant (or rather imperative) for

the following reasons:
(i) Realistic Implementation of the Marketing Concept:

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The modern marketing concept is consumer-oriented. To give a realistic

implementation to this concept, a study of consumer behaviour is imperative.
More specifically, a study of consumer behaviour is a must for developing an
ideal marketing-mix; which is the cornerstone of the concept of marketing.

It is, in fact, very true to state that unless the marketer knows what consumers
buy and why; it is not possible to design and implement a successful scheme of
marketing-mix to, beat the completive elements.

(ii) Planning Product Differentiation and Market Segmentation:

For planning product differentiation strategies (i.e. making the product so

differentiated and unique that consumer may be tempted to buy only that
product due to its unique features); a study of consumer behaviour is very
significant or necessary.

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Again, for designing schemes of market segmentation (a process of dividing a

potential market into distinct sub-markets of consumers with common needs
and characteristics), a study of consumer behaviour is very necessary.

As a matter of fact, the success of marketing management depends on

designing schemes of product differentiation and market segmentation, the
background data for which is furnished by a study of consumer behaviour.

(iii) Selection of Distribution Channels:

A study of consumer behaviour not only includes what consumers buy; but also
the source from where they buy’. For example, men of status in society may
never buy things from ordinary shops and ordinary markets. They may prefer to
buy from prestigious stores and markets; even though they may have to pay a
higher price and so on for various categories of consumers.

Thus a study of consumer behaviour guides the marketer to select suitable

channels of distribution, to provide maximum convenience and satisfaction to
different groups of consumers.

(iv) Designing Promotional Techniques:

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Promotional techniques include advertising message and media, personal

selling approaches and special sales promotional devices. Designing
promotional techniques is much facilitated by a study of consumer behaviour;
which may throw light on the psychology of people as to the factors which affect
their buying decisions.

Those factors which affect consumers’ buying behaviour may be suitably

incorporated into the promotional techniques of the organisation.

(v) Trade-Off between Price and Quality:

A study of consumer behaviour is likely to reveal whether target consumers of

the enterprise emphasize more on the price of the product or its quality. On this
basis, the marketer can device suitable pricing strategies and programmes
aimed at upgrading the quality of organisation’s products to suit the needs,
habits and behaviour of consumers.

Determinants of Consumer Behaviour:

Some important determinants of consumer behaviour might be analyzed

into the following categories:

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(1) Cultural-religious-social factors

(2) Personal factors

(3) Psychological factors

Following is a brief account of various factors comprised in the above-

mentioned categories:

(1) Cultural-Religious-Social Factors:

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Some important determinants of consumer behaviour in this category

are:

(i) Culture:

Culture is a complex of values, beliefs, attitudes and understandings which are

shared in common by aggregates of people, living in organized societies; and
which shape human behaviour to a particular style. Since consumer behaviour
is a part of human behaviour; culture has a profound effect on consumer
behaviour.

For example, the consumer behaviour of the Indians is much different from the
consumer behaviour of people in other countries.

Again, even in India, the consumer behaviour of the North Indians is much
different from the consumer behaviour of the South Indians; and so on for
various other parts of the country.

(ii) Religion:

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Religion has a profound effect on consumer behaviour. For example, the

consumer behaviours of the Hindus, the Muslims, and the Christians etc. are
very radically different. In fact, some very traditional Hindus may not prefer
leather goods; thinking it to be a sin to consume items made of the skin of
animals.

(iii) Family Consumption Patterns:

Family consumption patterns and trends, too, have an effect on consumer

behaviour. For example, the consumption habits and patterns of the head of the
family may be transmitted in to or partially to his sons, daughters, wife, and
brothers and so on.

(iv) Reference Groups:

Reference groups are social groups of friends, colleagues, relatives, neighbors,

etc. with whom a person comes into interaction, quite frequently. These groups
exercise a great impact on the consumer behaviour.

(v) Changing Social Values:

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Values, beliefs, attitudes etc. of people are changing in society, summarized in

the phrase ‘changing social values’. These changing social values emerge due to
factors like, technological advancements, demonstration effect, generation gaps
etc.; and these shape consumer behaviour to a considerable extent.

(2) Personal Factors:

Some important determinants of consumer behaviour in this category

are:

(i) Economic Conditions of Individuals:

Economic conditions of people have a significant effect on consumer behaviour.

There is no doubt that consumption habits, buying systems and other aspects of
consumer behaviour of the upper class, the middle class and the poor class are
considerably different.

(ii) Educational Background:

It is generally observed that educated persons let logic and intellect dominate
their buying decisions and exhibit totally different consumer behaviour than
uneducated or less educated people. The latter category of people follow buying
behaviour of others whom they can in contact with and ordinarily use little logic
in their behaviour as consumers, especially on items of luxurious consumption.

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(iii) Occupation and Status:

Occupation and status of people are big determinants of consumer behaviour.

Many persons buy things of the type which others in their occupation/profession
are also consuming. Again men of status e.g. doctors, professors, judges etc.
may not like to buy cheap items of consumption used by ordinary men, out of
their prestige and status in society.

(iv) Age:

Age of an individual has a great effect on consumer behaviour. Buying habits

and consumption behaviours of kids, adults and elderly persons are observed to
be very different from one another’s.

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(v) Sex:

Males and females of society, belonging to different age groups, have very
different buying habits and consumption patterns. Ladies of all strata of society
are observed to be having a preference for saree, costly garments, jewellery
etc.; while gents may prefer liquors, cigarette, books, items of comforts in their
household etc.

(vi) Marital Status:

Married and unmarried people demonstrate different consumer behaviours. In

the married class of people also, consumer behaviour of newly-weds may be
much different from those who have experienced substantial periods of married
life.

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(vii) Preference for Life Style:

Some people have a preference for a modern Westernized style of life; while
some may like to lead a simple Indian life style. Consumer behaviours of both
these categories of people are substantially different.

(3) Psychological Factors:

Some determinants of consumer behaviour in this category are:

(i) Motivation:

Keeping in view Maslow’s need hierarchy as a theory of motivation, needs

follow a hierarchical order towards their fulfillment. Accordingly, people have a
tendency to satisfy first those needs which are unfulfilled at a particular level,
before thinking of needs at higher levels.

As such, this psychological concept of motivation shapes consumer behaviour

and men at different stages of need-hierarchy have different consumption
patterns and habits.

(ii) Perception:
Perception is one’s own way of looking at things. One object may be perceived
to be good by one; while some other may perceive that to be quite bad and
undesirable. Accordingly, perception has a remarkable impact on consumer
behaviour. People have a tendency to buy things which they perceive to be
desirable. Since perception differs from persons to person; consumer behaviour
also differs from person to person.

(iii) Attitudes:

An attitude is a psychological attribute which makes one feel or think about

something- positively or negatively; and shapes one’s behaviour towards the
‘attitudes object’, accordingly. In fact, people have a preference for those items
of consumptions towards which they have a positive attitude. Hence, attitudes
of people are a big determinant of consumer behaviour.

(iv) Learning:

Learning here means a lesson learnt by an individual from his/her past actions.
Consumer behaviour is much shaped by the learning process of people in that
people prefer to buy things in respect of which their experience was good or
encouraging; and avoid things in which of which their experience had been
disheartening.
Types of Buying Decision Behaviour
There are four types of buying decision behaviour; viz., Complex Buying
Behaviour, Dissonance-Reducing Buying Behavior, Habitual Buying Behavior,
and Variety-Seeking Buying Behavior.

1. Complex Buying Behavior:

Complex buying behaviour occurs when consumers face a high level of
involvement in the purchase decision and encounter significant differences
among available options. This type of behaviour is commonly observed when
consumers are purchasing expensive, risky, infrequently purchased, and highly
self-expressive products, such as a house, a car, or a computer. The decision-
making process is extensive and involves thorough research, evaluation of
alternatives, and consideration of multiple factors, such as price, quality,
features, and brand reputation. Consumers engage in information gathering,
consult expert opinions, and rely on personal experiences to make informed
decisions.

For example, suppose a consumer wants to buy a new laptop. He would likely
spend time researching different brands, comparing specifications/features,
reading customer reviews, and seeking recommendations from friends or
technology experts before finalising their purchase.

Simply put, in complex buying behaviour, the consumer will go through different
learning phases. Firstly, he will learn and develop a belief regarding the product
that he wants to purchase. The belief of the consumer creates his attitude based
on which he will make the final purchase decision. Therefore, the marketers of
the high involvement products must ensure that they understand the
information-gathering and evaluation behaviour of these customers and help
them learn about the attributes of the product along with their relative
importance. They can also take the help of advertisements so the customers can
get answers to basic questions.
2. Dissonance-Reducing Buying Behavior:
Dissonance-Reducing Buying Behavior occurs when consumers face a high level
of involvement in the purchase decision but encounter little difference among
brands. This type of behaviour is commonly observed when consumers are
purchasing expensive, infrequent, or risky products; such as furniture, curtain
material, or sofa covers/upholstery. These products face high involvement of the
consumer as they are expensive and self-expressive. Also, as the perceived
brand difference is not large in this case, the consumers would purchase easily
and readily available products.

For example, suppose a consumer wants to buy a portable tent for camping.
For this, he will have to make a quick decision from the limited options available
to him. He will make the purchase decision without doing enough research and
inquiring about information from different sources about it.

Once the purchase is made, the consumers might experience postpurchase

dissonance or after-sale discomfort. It happens when the consumer notices
some disadvantages of the purchased brand or hears some good things about
the other brand. For such dissonance, it is essential for the marketer to provide
the consumers with after-sale communications and help them feel good about
their brand choices.

3. Habitual Buying Behavior:

Habitual Buying Behavior occurs when consumers face a low level of
involvement in the purchase decision along with little significant brand
differences. This type of behaviour is commonly observed when consumers are
purchasing products like salt, etc. Low involvement of consumers means that
they simply reach the store and go for a brand to buy a product. If the consumer
is buying a product from the same brand, it does not mean that they are loyal to
the brand. It just means that the consumer is buying the product out of habit.

For example, buying a specific brand of toothpaste, snack items, or toiletries

from a particular store without much thought or consideration falls under
habitual buying behaviour. Consumers may choose these products based on
familiarity, past positive experiences, or simply because it is part of their
routine.
The consumer behaviour, in this case, does not pass through the usual belief
attitude behaviour sequence. Before purchasing a product, these consumers do
not extensively search for information regarding the brand, evaluate the
characteristics of the brand, and make weighty decisions on which brand to
purchase. Instead, they just passively receive the information while watching
television or reading newspapers or magazines. Also, Ad repetitions instead of
creating brand conviction, create brand familiarity in the minds of consumers.
Because of this, consumers do not form strong attitudes towards a brand; they
just select the brand because they are familiar with it. Therefore, the marketers
take help of repetitive marketing campaigns, so that consumers can remember
their brand.

4. Variety-Seeking Buying Behavior:

Variety-Seeking Buying Behavior occurs when consumers exhibit a desire for
new experiences, change, and novelty in their purchases. It means that when
consumers face a low level of involvement but significant perceived brand
differences, they undertake variety-seeking buying behaviour. In such cases, the
consumers switch brands more often.

For example, a consumer chooses a namkeen brand without doing much

evaluation, and then after consuming the product, evaluates it. But the
consumer might pick another brand when making a purchase the next time. The
reason behind this can be his urge to try something new or just out of boredom.

Consumers engaging in variety-seeking behaviour may not have strong brand

loyalty and actively seek alternatives, even if they are satisfied with their
current choices. They enjoy exploring different options, experimenting with new
products, and deviating from their routine purchases. This behaviour is more
prevalent in product categories where there are numerous options and
alternatives available. Besides, the marketing strategy of the products, in this
case, may differ for the minor brands and the market leader. Market leaders try
to encourage the habitual buying behaviour of consumers by dominating shelf
space, keeping the shelves fully stocked with goods, and running
advertisements frequently as a reminder. However, the challenger firms
encourage the variety-seeking behaviour of consumers by offering them
coupons, free samples, and goods at lower prices and encouraging them
through advertisements to buy something new.

Major Factors Influencing Consumer Behaviour

Here is a list of five major factors that shape the way consumers choose and use
products:

Table of Content

● Cultural Factors

● Social Factors

● Personal Factors

● Psychological Factors

● Economic Factors

1. Cultural Factors
The biggest and deepest influence on consumer behaviour comes from cultural
factors. It impacts consumer behavior by setting expectations and norms that
dictate buying habits. This group of factors mostly consists of broad culture,
subculture, and social class culture.

a) Broad Culture

Culture is a highly complex conception of human activity as it includes human

society, the roles that society performs, how society behaves, and its values,
traditions, and conventions. Culture must be examined since it has a substantial
influence on consumer behaviour.

b) Subculture
A subculture is a group that shares the same beliefs, customs, and values. They
are the nation, religion, racial groupings, and individuals who live in the same
geographical area.

c) Social Class Culture

Every culture has a social class, according to society. It is essential to

understand what social class is being targeted because, in general, a social
class’s purchasing habits are relatively similar. A group of customers‘ social
class is determined by their income and other factors.

For Example,
In India, McDonald’s offers a range of vegetarian and non-beef products to
respect the dietary habits and religious beliefs prevalent in the country. Items
like the McAloo Tikki burger, a spiced potato-based burger, are specifically
designed to appeal to Indian consumers.

2. Social Factors
Consumer Behaviour is also influenced by social factors. A number of social
factors, including family, reference groups, and roles and statuses, have a
significant impact on how consumers respond to products, brands, and
businesses. To effectively meet their requirements, marketers must examine
these social factors of their target market:

a) Family

One of the most significant social elements influencing purchasing behaviour is

the family. Where there is a joint family structure, where children live with
family for a longer period of time, this is more important. Values, customs,
and tastes are innately passed on from parents to their children.

The most significant primary reference group is made up of family members.

Family is where a person learns their values, including those related to religion,
politics, ambition, self-worth, love, and respect. One’s behaviour is
influenced by needs, choices, buying habits, consumption rate, and many
other factors that are determined by the family.
b) Reference Groups

A reference group is a group of individuals with whom a person identifies.

The reference group’s members typically have similar purchasing habits and
influence one another.

c) Income Level

Consumer demands and wants are influenced by income. The preferences

of wealthy and poor customers are very different. Between wealthy and less
wealthy consumers, there is a significant gap in terms of quality, brand image,
novelty, and pricing. It is essential for a marketer to understand the
expectations of customers with different income levels and then target
them accordingly.

d) Roles and Status

The position a person holds in society has an impact on them. If a person

holds a high position, his decision will have a big impact on the purchasing
decision. A corporation’s Chief Executive Officer will make purchases consistent
with his position; however, a staff member or employee of the same organisation
will make purchases differently.

For Example,
When a well-known fashion influencer wears a particular brand of sneakers and
shares it on their social media platforms, their followers may be more inclined
to buy that brand, believing it to be trendy or of high quality based on the
influencer’s endorsement.

3. Personal Factors
The consumers’ own personal factors have an impact on their purchasing
decisions. These personal factors differ from person to person, resulting in
different opinions and consumer behaviours.

a) Age
Individuals’ purchasing decisions are influenced by the age group to
which they belong. When compared to youngsters, elderly people’s
purchasing behaviour would be completely different.

b) Income

The shopping habits of a person are influenced by their income. The

purchasing power of customers increases with wealth. When a customer has
more money on hand, they have the potential to spend more on expensive
products. Whereas, consumers who fall into the low or middle-income bracket
spend the majority of their income on necessities like food and clothing.

c) Occupation

A consumer’s occupation affects his or her purchasing behaviours. A

person prefers buying items that are related to his or her work. A senior
corporate executive, for example, might purchase formal apparel, but a
creative designer would choose casual clothing.

d) Lifestyle

A person’s attitude and manner of life define who they are in society. A
consumer’s lifestyle has a significant impact on their buying behaviours. A
person who lives a healthy lifestyle will spend more money on healthier food
choices.

For Example,
Imagine a college student living away from home with a tight budget. Their
personal factors—age, life stage, and financial situation—strongly influence
their buying behavior. They might look for deals on groceries, prefer affordable
fast food over expensive restaurants, and choose second-hand textbooks or
digital versions to save money.

4. Psychological Factors
Understanding consumer behaviour relies heavily on human psychology.
Psychological factors are difficult to measure, yet they are powerful enough to
affect a purchasing choice.

Some of the most important psychological factors are:

a) Motivation

Motivation to do something frequently impacts a person’s purchasing

behaviour. Individuals have several kinds of needs, including social, basic, and
security requirements, as well as esteem and self-actualization needs. The
fundamental requirements and security needs take priority over all other wants
and these encourage a customer to purchase things and services.

b) Perception

Our perception is formed when we receive information about a product

and analyse it in order to generate an appropriate image of that
product. We build an image of a product whenever we see an advertisement,
review, comment, or promotion. As a result, our perception influences our
purchase decisions significantly.

c) Attitudes and Beliefs

Consumer attitudes and opinions also have an impact on purchasing

decisions. The consumer acts in a specific way towards a product based on
their mindset. Mindset is very important in developing a product’s brand image.
Therefore, a marketer works hard to understand customer attitudes in order to
build marketing initiatives.

For Example,
If someone is preparing for a marathon and believes that having the right
equipment is crucial for success and injury prevention, they might be motivated
to invest in a pair of running shoes from a brand that is endorsed by top
athletes and marketed as being at the forefront of technology and design.
5. Economic Factors
The buying behavior of consumers greatly depend on the economic condition of
the a country and a market. Counsumers of a prosperous nation with strong
economy are more likely to have high purchasing power, as there is greater
money supply in its market. However, the market of a weak economy struggles
and affects employment and purchasing power of the people.

Some of the economic factors influencing consumer buying behaviour include:

a) Personal Income

This refers to the amount of money an individual earns. The two types of
personal income that a consumer has are Disposable Income and Discretionary
Income.

Disposable Income is the income that remains in the hands of an individual

after paying all the necessary payments (including taxes). If the disposable
income is more, then the consumer will spend more on purchase, and vice-
versa.

Discretionary Income is the income that remains in the hands of an individual

after paying for all the basic necessities of life. This income is used for
purchasing durables, luxury products, shopping goods, etc. If this income
increases, then the consumer will spend more on purchase, and vice-versa.

b) Family Income

It is the total income of all members of a family. When more members of a

family are earning, then there is more money/income available to purchase
basic need goods and luxury items. Therefore,

c) Income Expectations

An individual’s expectations with his expectations for future income level,

greatly impacts his buying behavior. If the individual expects his income to
increase in future, he will spend more of his money to purchase luxury goods,
shopping goods, and durables, and vice-versa.

d) Consumer Credit

The credit facility given to the consumers affects their buying behavior. If they
are given good credit terms and better EMI options, then the probability of
them buying luxury goods, shopping goods, and durables is more.

e) Liquid Assets

These are the assets that individuals can quickly turn into cash. People
with more illiquid assets are likely to spend more on durables, luxury goods,
and shopping goods, and vice-versa. Some of the examples of liquid assets
include cash in hand, securities, and bank savings.

f) Savings

It is the amount saved by an individual from his income. If an individual saves

more from his income, then his expenditure on other items will reduce, and
vice-versa.

For Example,
During tough economic times, like recession, people often have less money to
spend. They might stop buying things they don’t really need or look for cheaper
options. A family planning to buy a new car might wait until their financial
situation improves. Instead, they will focus on essentials like food and bills.

Application of Consumer Behaviour in Marketing

Application of consumer behaviour in marketing are:

1. Analyzing market opportunity

 2. Selecting target market
3. Marketing mix decisions
4. Use in Social and Non-profits Marketing

Analyzing market opportunity

Consumer behaviour study helps in identifying the unfulfilled needs and wants
of consumers. This requires examining the trends and conditions operating in
the marketplace, consumers’ lifestyles and income levels. This may reveal some
of the unsatisfied needs and wants of the consumers.

The trend towards increasing number of dual income household 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.

Selecting target market

A review of market opportunities often helps in identifying distinct consumer

segments with distinct and unique wants and needs. Identifying these groups,
learning how they behave and how theymake purchase decision enables the
marketer to design and market products or services particularly suited to their
wants and needs.

For example, consumer studies have revealed that many existing and potential
shampoo users did not want to buy bigger shampoo packs 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
good seller.

Marketing mix decisions

Once unsatisfied needs and wants are identified, themarketer 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.
The answers to these questions are obtained by consumer behaviour research.
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 programmesmore
effective such as family planning, pulse polio, safe driving etc.

Consumer Behavior and Marketing

Following changes can be observed in the approach of marketers towards

consumers. Marketing oriented firms are focusing on customer satisfaction and
retention.

● Shifting from supply to demand: This shows the change in focus

from the supply products to creatind demand for the product. Producer
determine what consumer will purchase before making changes and/or
adding a product from its offerings.

● From manufacturing to selling: It shows the change in focus from

“how to manufacture goods” to “how to sell” goods. It becomes
practical in nature when production increased more quickly than
products were purchased.

● From selling to marketing: It shows the change in focus from

“selling products” to the “marketing of products”. It discusses the
change from a position of scarcity following World War II to a change
by the 1950s causing the marketing era when selling to consumers
became vital to the company. The point is made that Wal-Mart is in the
business of “buying what people need to consume”, not in selling
things.
Model of Consumer Buying Decision Process

The live-stage model of consumer buying process is stated as follows:

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1. Problem/need identification

2. Information search

3. Listing alternative brands

4. Evaluation of alternatives

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5. Purchase decision

6. Post-purchase behaviour

1. Problem Identification:

The consumer buying decision process begins with the identification of needs.
These needs can be triggered by internal and external stimuli. For example, a
person may have the desire to wear fashionable clothes from internal stimuli or
by getting suggestions from friends, which act as a form of external source. The
marketer tries to stimulate the needs and help people in identifying these needs
by intelligent use of the marketing mix variables.

2. Information Search:

When consumers identify a need, they may look for information about how to
satisfy it.

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A consumer may look for information from five general sources:

1. Internal sources:

By recalling from memory, if they have satisfied a similar need in the past.

2. Group sources:

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By consulting other people such as family members, friends and others.

3. Marketing sources:

Through sales people, advertisement and packaging.

4. Public sources:

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Through media publicity, reports of research firms.

5. Experiential sources:

By experiencing products, that is, by handling them or by consuming or using

them. For example, a consumer may taste a particular item of fast food, and if
they likes it may make a purchase decision.

3. Listing Alternative Brands:

In this stage, the consumer analyses the information available with them to
select the right product or brand. A consumer may list out a few alternative
brands that are available in the market. The brands may be listed after
collecting necessary information from various sources.
The information of alternative brands may include the following factors:

1. Features

2. Price

3. Model

4. After-sale service

5. Warranty

4. Evaluation of Alternatives:

On the basis of the available information, consumers identify and evaluate ways
to satisfy their needs. A consumer may identify the products or brands that
effectively satisfy their needs or solve their problems, and then evaluate each
brand/product against certain criteria such as features, price, reputation of the
company, and so on.

5. Purchase Decision:

Once the consumer has narrowed down the possible alternatives to just a few,
there may make a decision to purchase. The consumer will decide whether to
buy, and if so, then what, where and when to buy. Consumers may also postpone
or forgo purchase decision, if none of the shortlisted alternatives meet their
needs.

6. Post-purchase Behaviour:

A marketer’s job is not complete with the purchase decision by the buyer. After
purchasing and consumption, the customer will experience some level of
satisfaction. If the product meets the expectations of the consumer, then the
consumer will be satisfied. If the performance of the product exceeds
customers’ expectations, then they will be delighted, and if it falls below the
expectations, then they will be dissatisfied.

A satisfied consumer may involve in repeat purchases. A delightful customer

propagates a positive image of the brand, whereas a dissatisfied consumer may
spread a bad image of the product or the brand. Thus, a study on the post-
purchase behaviour gives a learning of the way the product is used and dis-
posed, and helps the marketer to design their marketing mix.

Consumer Perception
Meaning of Perception:

Perception is “how consumers see the world around them”. It is defined as the
“process by which an individual selects, organizes, and interprets stimuli into a
meaningful and wherent picture of the world”. The different persons think
differently about a particular situation, product, service or event. For example,
when there is violence, killing of innocent people in Kashmir it is called
terrorism by India out those who do so call it struggle for freedom.

The Importance of Consumer Perception:

Consumer perception plays a vital role in shaping a business's success. Here's

why it's so important:

1. Brand Positioning: Consumer perception is crucial for establishing and

maintaining a brand's position in the market. Positive perceptions can
help a brand distinguish itself from competitors, leading to a stronger
market presence and a more favorable reputation.
2. Influence on Buying Decisions: The way consumers perceive a product
significantly affects their purchasing decisions. If consumers have a
positive perception of a product, they are more likely to buy it. This
makes managing consumer perception a key component of effective
marketing strategies.
3. Impact on Customer Loyalty: Positive consumer perceptions are
fundamental in building and sustaining customer loyalty. When customers
perceive a brand or product positively, they are more likely to make
 repeat purchases and recommend it to others, thereby increasing
customer retention and word-of-mouth referrals.
4. Determination of Product Value: Consumer perception directly
influences how much value they assign to a product. This perceived value
affects their price sensitivity and overall buying behavior. If a product is
perceived as high quality or offering great benefits, consumers may be
willing to pay a premium price for it.
5. Marketing Strategy Development: Understanding consumer
perception helps businesses develop more effective marketing strategies.
By knowing how consumers perceive their brand and products,
companies can tailor their messaging and advertising to better resonate
with their target audience, ultimately enhancing the impact of their
marketing campaigns.

Improving Customer Perception of Your Brand:

To positively influence customer perceptions, companies can implement several

effective strategies:

1. Enhance Product Quality: Consistently delivering high-quality products

or services is fundamental to building a positive perception. When
consumers perceive that your offerings meet or exceed their
expectations, they are more likely to view your brand favorably. Investing
in quality assurance and continuous improvement can significantly boost
consumer confidence and satisfaction.
2. Strengthen Customer Service: Exceptional customer service is a
powerful tool for enhancing brand perception. By providing prompt,
friendly, and effective support, companies can create positive experiences
that resonate with consumers. This can lead to increased customer
satisfaction, repeat business, and positive word-of-mouth.
3. Leverage Social Media: Engaging with consumers through social media
platforms allows brands to build stronger relationships and shape
positive perceptions. By using social media for personalized
communication, sharing valuable content, and responding to customer
inquiries or feedback, companies can create a more approachable and
humanized brand image.
 4. Focus on Brand Messaging: Clear, consistent, and authentic brand
messaging is crucial for establishing trust and aligning consumer
perceptions with your brand's values. Ensure that your messaging
reflects the true essence of your brand and resonates with your target
audience, reinforcing a positive perception over time.
5. Gather and Act on Feedback: Regularly collecting customer feedback
and making visible efforts to address concerns or implement suggestions
shows that you value consumer input and are committed to meeting their
needs. This proactive approach not only improves customer satisfaction
but also strengthens the perception that your brand is responsive and
customer-focused.

By adopting these strategies, companies can significantly improve how their

brand is perceived in the marketplace, leading to stronger customer
relationships, increased loyalty, and a competitive edge.

Examples of Perception in Consumer Behavior:

1. Tesla: Tesla has successfully shaped consumer perception by

emphasizing innovation and sustainability. By positioning itself as a
pioneer in electric vehicles and clean energy, Tesla has cultivated a
perception of being at the forefront of automotive technology and
environmentally responsible practices. This perception attracts
consumers who value cutting-edge technology and sustainability,
reinforcing Tesla's brand identity.
2. Amazon: Amazon is widely perceived as a customer-centric company due
to its focus on convenience, fast delivery, and hassle-free return policies.
This strong commitment to customer service has led to a positive
consumer perception of Amazon as a reliable and efficient online
marketplace. The company’s dedication to customer satisfaction fosters
trust and loyalty, encouraging repeat purchases and strengthening its
market position.
3. Coca-Cola: Coca-Cola has maintained a positive consumer perception
through consistent branding and effective marketing strategies. By
positioning itself as a classic and enjoyable beverage suitable for all
occasions, Coca-Cola taps into emotional connections with consumers. Its
long-standing presence and iconic advertising campaigns have reinforced
 its perception as a timeless, refreshing drink, fostering a sense of
nostalgia and brand loyalty among consumers.

These examples demonstrate how companies can strategically influence

consumer perceptions by focusing on key aspects such as innovation, customer
service, and consistent messaging, ultimately shaping behavior and enhancing
brand loyalty.

Factors Influencing Consumer Perception

Quality of Products/Services: The quality and reliability of a brand’s offerings

are crucial. Customers often gauge the value they’ll receive from a product or
service based on its quality, making it a pivotal factor in shaping perception.

Customer Service: Exceptional customer service can significantly enhance a

brand’s image. Responsive, courteous, and helpful interactions, whether pre or
post-sale, form a lasting impression on customers, influencing their perception
and loyalty.

Price: Pricing plays a vital role in perceived value. Customers tend to compare
the cost with the benefits they receive, and against competitors’ pricing. A fair
pricing strategy can foster a positive perception.

Brand Reputation: A brand’s reputation, formed through past actions,

reviews, and public opinion, is a strong influencer of perception. Positive
reputation fosters trust and a favorable perception.

Marketing and Advertising: Through marketing and advertising, brands

communicate their values, features, and benefits. Effective marketing that
resonates with customers can significantly improve their perception of the
brand.

Steps to Improve Customer Perception

Improve Customer Service

Providing exceptional customer service ensures that customers feel valued and
understood, which in turn, builds trust and satisfaction. Zappos, for example, is
known for its outstanding customer service, where representatives often go
above and beyond to assist customers, thereby creating a positive perception of
the brand.

Positive Online Presence

Engaging with customers online, addressing their concerns promptly, and

showcasing positive reviews are crucial steps in building a good online
reputation. For instance, Amazon actively manages its online reviews and
promptly addresses negative feedback, which helps maintain a positive online
presence.

Community Engagement

Brands that engage in local communities or support causes resonate well with
customers. Starbucks, for example, engages in various community service
initiatives which not only benefit the communities but also improve the brand’s
perception.

Consistent Branding

Maintaining consistency in branding across all platforms creates a recognisable

and reliable brand image. Apple’s consistent branding across products and
advertising, for example, establishes a recognisable identity which enhances
customer trust and loyalty.

Innovative Marketing Campaigns

Creative and resonant marketing campaigns help in positively shaping customer

perception by connecting with them on an emotional level. Nike’s “Just Do It”
campaign, for instance, inspires and resonates with a broad audience, thereby
enhancing brand perception and loyalty.
Dynamics of Perception:

As will be clear from above description perceptions are not static; they
are dynamic and can be changed in a number of ways, which are
described below:

Subliminal Perception:

The process of change of weak perception into strong perception is called

subliminal perception through stimulus. For instance, thrust for COKE or PEPSI
is one by method of stimulus. But all consumers do not react equally to different
stimulus whether by advertisement or otherwise for which lot of researches
have been conducted in USA. Based on these researches many new industries
have been built like audio.

In India fast development of certain products like ‘pan masala’ may be

attributed to influencing stimulus Departmental stores in various countries are
giving messages in musical sound tracks to discourage shop lifting played in
factories to improve productivity. But raising stimulus is against ethics specially
in matter of sex. It has been opined by most researchers that you see what you
want to see or in other words what you perceive.

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However, in USA Federal Communication Commission has held the position that
“convert – messages by their very nature are against the public interest”. In
India similar view is expressed and practiced while censoring the pictures or
obscene advertisements. The all individuals are not influenced by stimuli in a
similar fashion or equally. The adults are less influenced by stimuli than children
and therefore different protection is given to them Individuals interpret
stimulus in accordance to their environments, needs, expectations and
experiences.

These three aspects are:

1. Selection

2. Organisation

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3. Interpretation

Selection:

In environment around us there are large of number of stimuli at any point of

time but we are influenced or attracted by only a few of them One may see
thousands of products in the market, thousands of faces; different types of smell
of sweets, fruits, people; different types of sources of buses, cars, two wheelers
and rickshaw and shouting of people no one is attracted towards all of them;
one selects that which suits him based on his need and experience and it is
called selection perception.

The major selective perceptions are:

(a) Selective Exposure:

Consumer often selects those messages from jungle of advertisement which is

according to his liking and fits into his thinking and those messages which do
not suit him For instance, a cigarette smoker ignores the warning that “smoking
is injurious to health” but purchases cigarettes and selects those messages
which according to his wisdom are correct.

They pay attention to messages which satisfy their needs, they are likely to
discard communication which is not consistent with their perception values,
needs, interest and beliefs. The consumers just block the communication which
they do not like and / or feel bored. They switch off their TV or radio when
advertisement is not of their liking.

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(b) Organisation:

Consumers tend to organize sensations into groups and then perceive them as a
whole. This is called perceptual organisation.

There are three basic principles of it namely figure and ground, group-
ing and closure and are described briefly as under:

Figure and Ground:

The figure is what a consumer perceives about a product or object and ground
is the background in which he perceives the figure. The figure is something
which is perceived clearly like colour of the fabric (dark, light, sober, bright
etc.), sound (soothing, loud or soft). The figure is normally clear, in the forefront
and solid and this influences the selection of a particular product but ground
hazy and indefinite. We have the tendency to organize own perceptions into
figure and ground. The proper understanding of these facts help marketer.

Grouping:

When individuals group stimuli to get a unified picture it is called grouping. It

helps a marketer and consumer behaviour researcher to arrive at certain
conclusions. For instance, if in a picture husband and wife have been shown
with good cup of tea and talk. The marketer interprets from it that good food,
attractive settings and good crockery go together. It also suggests that how
home looks make a big difference in perception.

Closure:

People feel need of closures when the task is incomplete and studies have
reported that one remembers incomplete task better than complete tasks. It has
been found out when one knows only part of the story there is querisity to know
the whole. This psychology has been used by marketer to create interest in
consumers which ultimately helps in influencing consumers.

Product Images, Self Images and Consumer Behaviour:

The perceptions are individual phenomena depending upon product images and
self images which ultimately affects consumer behaviour. Product image is what
consumers expect to see and visualize based on their psychology, information
and past experience.

Product images can also be influenced by number of other factors like his
motives, interest at the time one perceives product image. But stimuli are often
highly ambiguous and marketer has to interpret them in most rational way so
that best advantage can be taken of the situation for pushing sales.

As there are constant fluctuations in product images, constant watch is called

for. For instance for a particular tooth paste an individual have a particular
image about its qualities for cleaning tooth, make them strong to fight against
germs and against cavity. This image may change after using other tooth paste
or influence of advertisement of a competitor.

These distortions or changes can take place due to following factors:

1. Physical Appearance:

Consumers are attracted and influenced by attractive and well known models.
Hence advertisers of cosmetics, soaps etc. use them in ads and go on changing
them with the change in their popularity.

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2. Stereotypes:

It is tendency of consumers to have in their minds interpretation and meaning

of various stimuli. It has to be judged by marketer how stimuli are perceived
and or subsequently perceived to help them in suitable advertisement
campaign.

3. Irrelevant Cues:
Sometimes behaviour of consumer is influenced by such factors which are
otherwise considered irrational or relevant. For instance expensive automobiles
may be bought because of its looks rather than its performance. Similarly high
priced TV or refrigerator may be selected on the basis of looks rather than their
technical superiority.

First Impression:

In certain cases consumer judgment is based on first impression without

knowing which stimuli’s are relevant and which are not Many a times first
impression is lasting and therefore before launching a product there must be
proper study of consumers various stimuli and decide which one plays a vital
role to create first impression. If one wants success the quality, colour,
performance, service and other attributes should be of top quality from the very
beginning to impress all and sundry because first impression is a lasting
impression.

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Jumping to Conclusions:

Some consumers have a tendency to jump to conclusions without examining

various facts or without examining relevant factors. Marketers try to influence
such consumers by lop sided communication which may look very impressive
but may not be relevant.

Hallow Effect:

Hallow effect means evaluation of a few or one factor. The advantage of this
attribute of consumer is taken for tempting them by success of one brand in one
product to others. For instance, when T- Series succeeded in audio cassettes it
used same brand for TV and washing powder. Producers also adopted similar
strategy to make other products succeed on the basis of “hallow effect” often
consumers believe that if one product of a brand is good, others are also likely
to be good.

Self Images & Consumer Behaviour:

The positioning of a product or service by the consumer depends to a

considerable extent what image consumer has built about it in his mind. The
success of a product or service depends more on what consumer thinks about it
rather than its actual characteristics or performance.

For instance, if consumer feels that the service of private sector bank is better
than nationalized bank, he will position private bank higher than the public
sector bank which will affect relative success. Now in India private sector has
been permitted to operate in competition to LIC and GIC, their success will
depend how consumers positioning them i.e. if there are more than one player
what relative place is given to them in the consumer perception.

Since success or failure of a product depends in great degree on its positioning

by consumers positioning strategy is the crux of success. Marketers
segmentation strategy, selection of targeted markets and targeted consumers.
They have to be approached differently.

If for instance Hindustan Lever is producing a number of verities of Life Buoy

soap it has to decide which variety will be suitable for which market and which
type of consumer and how they have to be approached by different
advertisements. Because of this fact there are different ads for Life Buoy, Life
Buoy Gold and its other varieties which appear on T.V.

Similarly for some companies there is segmentation by producing different

varieties for different segments and approach different consumer groups
differently. The same is true for cosmetics, photo films, or something else. In
today’s competitive market right positioning of brand and product is key to
success.
The other important aspect is to find out how their products or services are
rated by consumers in comparison to competing brands. The technique of such
measurement is called “perceptual marketing”.

In this exercise it is not enough just to assess market share but the factors
which are responsible for it is not enough to find out relative share but why it is
so. Is it price, cleaning power, gentleness to garments and to hands, or some
other factors Marketer has to find out his weak points and strong points of its
rival not only to improve attributes of a product but for proper marketing and
advertising strategy.

Based on studies for perception marketing, there can be need for repositioning
of strategy even for a product which is on the top in the market, otherwise it
may loose part of its share. For instance, in India when Hindustan Lever started
giving tough competition to Colgate toothpaste, the market leader Colgate has
to reposition its strategies to maintain its leadership in the market in term of
new product, advertisement etc. When competition started in ice-cream,
cheese, chocolate market each player had to reposition its strategies in terms of
price, varieties, segmentation and advertising.

Besides competition consumer preferences is another important factor for

repositioning. In India when polyster staple fibre was introduced most
manufacturers started producing blended fabrics and highlighted their anti-
crease qualities. But recently when it was found out that synthetic is harmful to
skin pure cotton fabrics, and hosiery was reintroduced and their attributes are
being highlighted. The point to be noted is that in repositioning consumer
preferences, technological changes etc. have to be taken into consideration.

Store Image:

In consumer behaviour store image also plays an important part. The image or
impression about a product depends upon the knowledge, information stored in
the mind of a person and he selects, interprets and evaluates a product on the
basis of such store image which may not be correct. He does not make efforts to
get fresh information.
 Consumer attitudes

Consumer attitude may be defined as a feeling of favorableness or

unfavorableness that an individual has towards an object. As we, all know that
an individual with a positive attitude is more likely to buy a product and this
results in the possibility of liking or disliking a product.

Nature of Consumer Attitudes:

The nature of consumer attitude can be understood through the following key
aspects:

1. Tri-Component Model:
○ Cognitive Component: This refers to the beliefs or knowledge a
consumer has about a product or brand. It includes the information
and facts that form the consumer's understanding and perception
of the product.
○ Affective Component: This represents the feelings or emotions a
consumer has toward a product or brand. It reflects the overall
liking or preference that a consumer has, which can be positive,
negative, or neutral.
○ Behavioral Component: This relates to the way a consumer
intends to act or behaves toward a product or brand. It includes
the actions a consumer is likely to take, such as purchasing,
recommending, or avoiding a product.
2. Learned Behavior:
○ Consumer attitudes are not innate; they are learned over time
through experiences, interactions, and influences. This learning
can occur through direct experience with a product, advertising,
word-of-mouth, or other forms of communication.
3. Dynamic and Changeable:
○ Attitudes are not fixed and can change over time due to new
information, experiences, or persuasive communication. Marketers
 often aim to shift consumer attitudes through targeted advertising,
promotional strategies, and product improvements.
4. Influence on Decision-Making:
○ Attitudes significantly influence consumer decision-making
processes. Positive attitudes toward a brand can lead to increased
purchase intentions, while negative attitudes can deter consumers
from buying. Understanding consumer attitudes helps businesses
predict behavior and tailor their marketing strategies accordingly.
5. Consistency Principle:
○ Consumers generally strive for consistency between their attitudes
and behaviors. If there is an inconsistency (cognitive dissonance),
such as liking a product but not purchasing it, they may experience
discomfort. This discomfort often leads them to change either their
attitudes or behaviors to restore balance.
6. Multi-Dimensional:
○ Attitudes are complex and can be influenced by multiple factors,
such as personal experiences, social influences, cultural norms,
and psychological factors. This multidimensionality means that a
single consumer might have different attitudes toward different
aspects of the same product or brand.

Understanding the nature of consumer attitude helps marketers create more

effective strategies to influence purchasing behavior and build stronger brand
loyalty. By addressing the cognitive, affective, and behavioral components of
attitude, businesses can better align their offerings with consumer preferences
and needs.

Components of Attitudes:

Brand beliefs, evaluations and intentions to buy define the three components of
attitudes as shown in fig. 5.1
These are linked to the main three components of attitudes. Brand beliefs are
the cogniting (thinking) component of attitudes, brand evaluations, the affective
component and intention to buy, the conative component. This linkage gives the
high involvement hierarchy of effects, brand beliefs influence evaluation which
influence intention to buy. After this, all these components are linked to
behaviour.

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This means, each component is associated with its own unique set of
measures:

(i) Measures of person’s beliefs about the attitude object. For example, whether
a product is perceived as possessing some attributes, represent cognitive
component.

(ii) Measures of overall evaluation of attitude object.

(iii) Behavioural intention measures attempt to assess the perceived likelihood

that some behaviour involving the attitude object will occur. For example-
Purchasing a product.

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Let us now study, three components in detail;

(1) Cognitive:

A person’s knowledge and beliefs about some attitude object reside within the
cognitive component. Through marketing research, marketers develop a
vocabulary of product at- tributes and benefits. For example – for a beverage
product, the vocabulary of brand beliefs can be-

Forming these types of vocabularies are possible only through depth interviews
with consumers.

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(2) Affective:

The affective component represents a person’s likes or dislikes of the attitude

object. Beliefs about them are multidimensional because they represent the
brand attributes consumers perceive but this component is one dimensional.
Consumer’s over all evaluation of a brand can be measured by rating the brand
from “poor” to “excellent” or from “least preferred” to “most preferred”.

Brand evaluation is central to the study of attitudes because it summarizes

consumer’s predisposition to be favourable or unfavourable to the brand. Brand
beliefs are relevant only to the extent that they influence brand evaluations
which in turn leads to behaviour.

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(3) Conative:

The conative component refers to the person’s action or behavouioral

tendencies toward the attitude object. This is measured in terms of intention to
buy. For developing marketing strategy, this measured buying intent is
important. To avoid failures in the market, marketers frequently test the
elements of the marketing mix like – ads, packages, alternative product
concepts or brand names. All this is done to know what is most likely to
influence purchase behaviour.

There are important predicting and diagnostic differences among three

components and measures when prediction is of prime concern then
behavioural intention measures are most appropriate, since they offer the
greatest predictive power as shown in Fig 5.1. But are limited in their
diagnostic power.

This is basically because of their inability to reveal why consumers intend or

don’t intend to perform a behaviour. For example – consumer doesn’t want to
shop from a particular store for a number of reasons. Intention measures do not
reveal these reasons like convenient shopping hours. Therefore, reasons for
consumers attitudes and intention can be known by measuring beliefs.

Measuring the Attitudinal Components:

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This step is very important if marketers want them as the basis for marketing
strategies. For this, commonly the rating scales are developed so consumers
can identify the degree to which they think a brand has certain attributes
(beliefs), the degree to which they prefer certain brands (brand evaluations),
and their intentions.

(i) Brand Beliefs (b)

For measuring this, attributes and benefits are determined.

For example -(b1)

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a. How likely is it that Pepsi tastes sweet?

Very likely ——- , ——- , ——- , ——- , ——- , ——- , ——- , very unlikely

(b2)

b. How would you rate the sweetness of Pepsi’s taste?

Very sweet ——-, ——-, ——-, ——-, ——-, ——-, ——-, very bitter

(b3)

In the above e.g., three measures of beliefs (b) are shown. B1 rates brand
attributes on a probability basis using a seven-point scale. b2 is a scaling device
known as the semantic differential. In this bipolar adjectives are used on a
seven-point scale to measure brand beliefs. b3 measures beliefs about the
accuracy of a brand’s description.

Semantic differential scale (b2) is used most commonly as it is easy to construct

and administer and moreover, marketers can quickly determine the image of
their brand by how consumers position it on various bipolar adjectives.

(ii) Attribute Evaluations (e) –

This must be measured to understand brand beliefs. Continuing with the

example of Pepsi, three scales are shown to rate attribute evaluations. For
example –

(a) How much do you like Pepsi?

like very much——- ,—– ,—– ,—– ,—– ,—– ,—– dislike very much

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(b) How favourable is your overall opinion of Pepsi?

very favourable——- ,—– ,—– ,—– ,—– ,—– ,—– very unfavourable

(c) Pepsi is

Good ——- , ——- , ——- , ——- , ——- , ——- , ——- , bad.

Appealing ——-, ——- , ——- , ——- , ——- , ——- , ——- , unappealing

Pleasant ——- , ——- , ——- , ——- , ——- , ——- , ——- , unpleasant

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The first (e1) asks consumers to rate each attribute from like very much to
dislike very much. e2 is from “very favourable” to “very unfavourable.” In the
third, e3 ‘Pepsi’ is to be rated as good or bad etc.

(iii) Overall Brand Evaluations (A) –

This can be measured in various ways.

For example-

(a) How likely is it that you would buy Pepsi?

very likely—— ,—– ,—– ,—– ,—– ,—– ,—– very unlikely.

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(b) Do you intend to buy Pepsi?

definitely intend to buy——– ,—— ,—– ,—– ,—— ,—– ,—– definitely intend not to
buy.
The first scale measures the likability of the brand, the second measures the
degree to which the consumer is intending to buy Pepsi. The third measures the
intention to buy in a more accurate manner. This means buying intentions are
generally measured on a scale from “definitely will buy” to “definitely will not
buy.”

Properties of Attitudes:

Attitudes can vary along a number of dimensions or properties. They

are:

(i) Favourability:

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A person may like Coke or Pepsi and dislike others like Fanta, Mirinda, Canada
Dry etc.

(ii) Intensity:

This means, the strength of liking or disliking. For example, consumer may be
liking two brands at a time but he/she may be more positive towards one.

(iii) Confidence:

This means, attitude is the confidence with which they are held. Intercity and
confidence differ slightly. For example, a person may be equally confident that
he/she really likes Pepsi but may be slightly favourable toward Coke.

It is important for a marketer to study the degree of confidence

associated with an attitude because:
(a) It can affect the strength of the relationship between attitudes and
behaviour.

(b) It can affect an attitudes susceptibility to change. That means, more strongly
held attitude is more resistant to change.

(iv) Stability:

Some attitudes are stable over an extended period of time, others will change.
This dynamic nature of attitudes is largely responsible for the changes in
consumers lifestyles. For example, people attitude towards fashion is changing.
Also they are changing in health attitudes this means, it is a great news for
fitness clubs, sporting equipment and clothing companies.

Attitude can vary in terms of whether it is based on the perceived utilitarian Vs.
hedonic properties of the attitude object. For example, consumers attitude
towards toothpaste will be more in knowing their functional benefits. For other
products/services like amusement parks, movies, ballets, music etc. are valued
for their ability to influence consumers emotions. These properties help in
developing effective advertising appeals.

How Attitude is Developed?

To understand the role of attitudes in consumer behaviour, we must understand

how they develop and what are the functions they perform. The attitudes that
consumers hold are, a result of their prior experiences. Attitudes develop over
time through a learning process and are affected and also formed by family
influences, peer group influences, personality, experience and information (from
environment). Environmental factors have a strong influence on attitudes
formation by shaping the type, amount, and quality of information and
experience available to consumers.

Family Influences:
Family is an important influence on purchase decisions. Bennet and Kassarjian
say, “Attitudes toward personal hygiene, preferences for food items etc. are
acquired from parents.”

Peer Group Influences:

Researches say that peer groups are much more likely than advertising to
influence attitudes and purchasing behaviour.

Personality:

Personality also affects consumer’s attitudes. Traits such as aggression,

extroversion, submissiveness or authoritarianism may influence attitudes
toward brands and products.

Information and experience:

According to learning theory, consumer’s past experiences influence their brand

attitude and condition their future behaviour. It is seen that band loyalty will
quickly end if the brand does not perform well. Therefore, information and
experience also determines attitude.

Role of Direct or Indirect Experience:

Attitudes are formed as a result of direct contact with the object. Products that
fails to perform as expected can easily lead to negative attitudes. Sometimes,
even in absence of actual experience with an object one can form attitude. For
example, many consumers have never driven Mercedes – Benz or vacationed in
Switzerland but then also form positive attitude for this. Similarly, the
consumers can form an attitude by just seeing the ad that means, they can form
the product attitudes.

Attitudes based on direct experience are held with more confidence. This means
consumers form stronger convictions about the product if had an actual direct
experience with it.
These processes that govern attitude formation are very important in order to
develop strategies and activities that will create, reinforce, or modify consumer
attitudes.

Functions of Attitude:

Daniel Katz has proposed four functions of attitudes that explains how they
serve the individuals.

(a) Utilitarian Function:

This helps the consumers in achieving desired benefits. For example, in small
car segments, marketers usually reflects the utilitarian function of attitudes in
the ad. likeby featuring performance characteristics, mileage etc. Similarly, in
the ad. of toothbrushes, they reflect utility of cleaning the teeth and giving them
whiter look etc.

(b) Value – Expressive Function:

Attitudes can express consumers self – images and value systems. This specially
holds true for high involvement products that is, costly products. Advertisers
usually try to appeal to the value – expressive nature of attitudes by implying
that use or purchase of a certain item will lead to self-enhancement. In this way,
they appeal to large segment who value these self expressive traits.

The self – image of an individual purchasing a motorbike, for example, may be

of strong, domineering and hard – driving person who likes to gain the upper
hand. Like for Kinetic Honda & Kawasaki Bajaj two different types of self
images are attached. In the former, the person with strong built up will be best
suited and in the later, the person with not so good physique.

Another example can be Revlon Cologne ad. that suggests user is a confident,
self-award, warm individual.

(c) Ego – Defensive Function:

Attitudes protect the ego from anxieties and threats. Consumers purchase many
products, like mouthwashes to avoid bad breath or dandruff shampoo etc. these
are basically anxiety – producing situations. This means consumers develop
positive attitudes towards brands associated with social acceptance, confidence
etc. For example. Head & Shoulders avoid embarrassment of flaking from dry
scalp.

(d) Knowledge Function:

Consumers are exposed to the environment full of information. Consumers sort

all of the messages, ignoring the less – relevant information. They have
confusion and uncertainty while purchasing any product (Specially high
involvement) but this function reduces all the uncertainties. Advertisements
provide the valuable information about new brands or new characteristics of
existing brands.

From the above functions, we have learnt that they affect the individual’s
overall evaluation of an object. For example, two individuals having equally
favourable attitudes toward mouthwash will vary in the nature of these
attitudes. This will depend on whether they purchase because of utilitarian
function (i.e. for freshness) or an ego – defensive function (i,e., to avoid bad
breath). So both the individuals should be approached in the similar manner.

Models of Attitudes:

Psychologists have constructed these models to understand the relationship

between attitudes and behaviour, and to capture the underlying dimensions of
an attitude. There are three important attitude models: the tricomponent
attitude model, multi – attribute models, the trying – to – consume model, and
attitude – toward – the – ad models. Tricomponent attitude model, we have
already explained in the beginning while explaining the nature of consumer
attitudes.

Multi – Attribute Attitude Model:

Multi – attribute attitude model examines attitudes in terms of selected product

attributes or beliefs. There are many variations of this model but Martin
Fishbein and his associates has done great amount of research on it.
It is important for businesses to know whether consumers have favourable or
unfavourable attitudes toward their products, it is also important to understand
the reason for these attitudes. Traditionally, to understand this, the cognitive
component of attitude is studied.

Now, more emphasis is aid upon the important beliefs a person holds about the
attitude object. This is explained by Fishbein in the various models, we will
study attitude toward – object model, the attitude – toward – behaviour model
and the theory – of – reasoned – action model.

Attitude – toward – Object – Model:

Attitude – toward – object model helps in measuring attitudes toward a product

category or specific brands – Model can be explained as the attitude toward a
given object (product) is based on the summed set of beliefs about the object’s
attributes weighted by the evaluation of these attributes.

Symbolically, we can represent:

where

A0 = attitude toward the object.

bj = the strength of the belief that the object has attribute i.

ei = The evaluation of attribute i,

n = The number of salient attributes.

We can say that consumers hold favourable attitudes towards those brands with
which he/she is more satisfied in terms of the attributes they offer. They form
unfavourable attitudes towards those brands whose attributes do not match
with the expectations of that consumer.
For understanding consumers preferences for different brands, researchers first
try to find out the target market’s salient attributes. This they collect by asking
consumers which one they use in evaluating brands within the product category.
Those attributes receiving the highest ranking are considered to be the most
salient.

In some cases, a third – person response is used like projective questions

because consumers may not disclose their true feelings and may distort the
answers. For example – consumers may consume alcohol say that he
occasionally consumes which may not be the exact picture or they may
underreport their use of price because they do not want to appear cheap.

Next, the appropriate bj and ei measures would be developed. The e,

component is measured on a seven point evaluative scale ranging from “very
good” to “very bad”

For example-

A watch with a destructive look is:

This would be calculated for all the attributes. Then bj component is calculated,
this represents how strongly consumers believe that a particular brand possess
a given attribute. Beliefs are also measured on a 7 – point scale of perceived
likelihood ranging from “very likely” to “very unlikely”.
This means bj and ei scales range from a maximum score of+3 to a minimum of
-3. Accordingly, the most desirable product attribute is evaluated. In this way,
marketers can compare different brands available of same product category and
conclude which brand is viewed favourable by the consumers.

In total, marketers want consumers to perceive their brand as:

(a) Should possess desirable attributes (means if e, is positive bj should be

positive).

(b) Should not possess undesirable attributes (means if e, is negative, bj should

be negative).

This also helps advertisers in creating favourable attitudes towards the product
advertised.

After calculating bj & ei

each belief score must first be multiplied by the corresponding evaluation score and then
j ei
. This total b
j ei score for different brands is calculated. The brand which scores high is
very good. The maximum score is derived by assuming the “ideal” belief score
(i.e., +3 or -3) and combining it with the existing evaluation scores.

Attitude – toward – Behaviour Model:

The focus of Fishbein’s attitude – toward – behaviour model is the individuals

attitude toward behaving or acting with respect to an object rather than the
attitude toward the object itself.

This model reveals the actual behaviour of consumer than does the attitude –
toward – object model. For example, if a person is asked, “How would you rate
Mercedez benz ?”

very good _______ ,______ ,______ ,______ ,______ ,______ ,______ very bad.

above answer will only explain his attitude towards the car (i,e., attitude toward
the object ?). But this answer, will not tell about the act of purchasing Mercedez
– Benz (an expensive car). So, a person may have positive attitude towards an
object but may not have the potential of purchasing that is depicts a negative
attitude towards purchasing such an expensive automobile.

The equation used for calculating behaviour are:

where

A(beh.) = overall measure of affect of or against carrying out a specific action or

behaviour

bj = strength of the belief that an ith specific action will lead to a specific
outcome.

ei = evaluation of the ith outcome.

= n salient outcomes over which the b and e combinations are summated.

Theory of Reasoned – Action Model:

In this model, a comprehensive integration of attitude components are

represented into a structure that is designed, so that, it is explained in a better
manner and prediction of behaviour is also better. Here also three components
are used as in tricomponent model like cognitive component, affective
component and a conative component. But in this model, arrangement of these
components are different.

If we examine critically, the best predictor of behaviour is the intention to act.

Thus, if researchers are interested in predicting behaviour (i.e., the act of
purchasing a particular service, product or brand), they would directly measure
intention. If the researchers further are interested in knowing the underlying
factors that lead a consumer to act in a particular situation, they will find two
factors that is, consumer’s attitudes toward the behaviour and the subjective
norm.

The consumer’s attitude toward the behaviour can be directly measured as

affect. This means consumers overall favourability toward the purchase is
measured. But to understand intention we also need to measure the subjective
norm that can be measured directly by assessing a consumer’s feelings as to
what others would think of the action being contemplated, (i.e., whether they
are favourable or unfavourable).

For example, if a college going girl wants to purchase a dress for herself and
then she thinks what her boyfriend or other friends would think of such
behaviours (i.e., would appreciate or not). Such a reflection is considered as
subjective norm. The factors underlying the subjective norms are the normative
beliefs that the individual attributes to others, as well as the individual’s
motivation to comply with each one who matters to him/her. So, we can say that
the theory of reasoned action is a series of interrelated attitude components.

Now, the question arise why study attitudes, as in this model it is stated clearly
that intention is linked to behaviour more strongly than attitude. Reason being
that intention is unable to provide an adequate explanation of behaviour.
Marketers sometimes are interested in knowing why consumers act as they do,
for this more than a mechanical measure is required as to what consumers
expect to do i.e.,g. their buying intentions).

Attitude-Toward-the-Ad Models:

In today’s scenario, where half of the business is fetched alone through

advertising, the need for understanding the impact of advertising on consumer
attitudes toward particular products or brands has increased. Advertisers have
paid a considerable attention in developing attitude – toward – the – ad models.

The consumers form various judgments and feelings as and when exposed to an
ad. These judgments and feelings in turn affect the consumer’s attitude toward
the ad and beliefs about the brand acquired from exposure to the ad. Finally,
consumer’s attitude toward the ad and beliefs about the brand for his/her
attitude toward the brand.

This model says that to assess consumers attitudes toward an ad it is important

to distinguish between cognitive evaluations of the ad (i.e., whether it is
informative or humorous) and affective responses toward the ad (feelings like
sense of fear, or smile or laughter etc.) and also measures them separately.

According to this model, researcher suggests that the feelings conveyed by an

ad not only influences the attitude toward the ad but also affect the consumers
evaluations of the brand and also the attitude towards the brand.

However, if the gap appears after exposure of an ad (around one weak) the
positive effect of a liked ad on the attitude towards a brand may change. This
usually happens when the purchase action is postponed or delayed by the
consumer after an exposure of ad.

Researchers say that both negative and positive feelings toward ad tend to exist
side by side where both affect attitude uniquely. So, in this wide variety of
feelings (both positive and negative) are to be assessed to study the influence of
ad exposure.

It is also seen and tested through research that the consumer’s attitude toward
the ad for a novel product (new one) will have a stronger impact on brand
attitude and purchase intention than for a familiar product. Researcher also
found that beliefs about a brand that result from ad. exposure play a much
stronger role in determining attitudes towards the brand for a familiar product.
So, in this research nature of attitude – object is used in assessing the potential
impact of advertising exposure.

It is observed that attitude toward a specific type of advertising (eg.

comparative) may have some impact on the attitude toward a specific ad. (eg.
liking or distiking it). But attitudes toward ads in general seem to have little
impact on the attitude toward a specific ad.
Can Attitudes be Changed?

Uptill now we were studying the formation of attitudes, in this topic we will
study how attitudes can be changed. In fact, formation of attitudes also explains
how to change the attitudes but some other important factors are also involved.
The research in this field has taken three main forms in recent years –

(1) Exposure:

Merely, exposing a subject to a stimulus (product/service etc) may be enough

for the person to form positive attitudes towards the stimulus. Therefore, in low
involvement products like detergents, the most heavily advertised brands will
become most familiar to the consumers, so most likely to be picked off the
supermarket shelf.

(2) Effective Communication:

For changing the attitudes of consumers it is essential to treat the process of

change as a form of information processing that is being subjected to
persuasive communications. So, advertisers need to use persuasive
communications in their advertisement.

(3) Cognitive Dissonance:

According to this, all people strive to be consistent, if they hold two

psychologically inconsistent beliefs / ideas / values / attitudes at the same time
or if their behaviour contradicts these cognitions, they will need to find a way of
reducing this tension. At this moment, marketer can come up with the benefits
of their product so, the consumer can reduce tension by buying that product
and dissonance stage ends.

There are various strategies used by the marketer based on the above factors.

Changes in Consumer Attitude

Companies may focus on changing consumer attitudes for a variety of reasons.
Dropping sales, increased product or service complaints and new, or renewed,
competition in the marketplace can all necessitate a hard look at the reasons
behind trends related to consumer perceptions and attitudes. Deciphering the
cause of negative perceptions requires appropriate planning and the
commitment to make the necessary changes to ensure success. For small
businesses, analyzing consumer behavior becomes an essential part of
developing a targeted marketing and promotional campaign.

1. Identify consumer perceptions

In order to develop an action plan for changing consumer attitudes, you need to
understand current perceptions of products and services. Evaluate captured
feedback, such as customer service contact statistics regarding complaints and
concerns. Service businesses can leave comment cards for customers to
complete and mail back. Utilize surveys, paper and electronic, and focus groups
to receive an accurate representation of problems or concerns that may exist.

2. Compile data for interpretation

Interpretations derived from statistical data can provide immediate feedback

related to possible product or service defects. Evaluate survey responses for
information related to consumer views and perceptions of the business's
products or services. Focus on repeated or habitual problems experienced by
customers. Find the common thread among complaints and negative
perceptions. Determine if a negative consumer attitude is the result of employee
neglect or product deficiencies.

3. Create a plan of action

Once you have identified consumer perceptions, develop a plan to improve

areas where consumer perceptions reflect a negative attitude toward the
company, product or service. This can include improved employee training to
handle concerns and help cultivate customer loyalty. Involve product
development on needed product improvements. Enlist the help of the marketing
department to develop campaigns focused on increasing brand awareness and
resolving common concerns.

4. Share vital information with affected employees

Educate the appropriate personnel on the goals of any new campaigns and
promotions. Ensure customer service representatives understand the impact of
creating a positive customer environment. Changing consumer attitudes is
essential to ensuring future loyalty and creating a secure job environment.

5. Measure success

Use customer service metrics as one way to measure success. This can include
keeping track of incident reports, positive feedback and complaints. Signs of a
shift in consumer attitudes include reduced complaints and increased sales.

Strategies of Consumer change in Attitude

Attitudes are influenced by personal experience and other source of

information, and personality.

Altering consumer attitude is a key strategy for the marketers. Marketers has
to create positive attitude in consumer mind in order to attract them in
comparison with the competitors products. The below are the attitude change
strategies :

1). Changing the consumer’s basic motivational function

2). Associating the product with an admired group or event,

3). Resolving two conflicting attitudes
4). Altering components of the multi attributes model
5). Changing consumer beliefs about competitors brands
1). Changing the consumer’s basic motivational function : the consumer
attitudes towards a product or brand can be changed by making a particular
need important. The approach which is used to change the motivation is
functional approach. According to this approach, attitudes can be classified in
terms of four functions:
· Utilitarian Function
· Ego-defensive function
· Value expressive function
· Knowledge Function

· Utilitarian Function : Consumer value a particular brand because of its

utility function. When a consumer is having an experience of using a product in
past, he will tend to have positive opinion about it. Therefore the marketer can
change the attitude of consumer by focusing on the utilitarian function which
the consumers are not aware of. Eg: Hit which can be used to kill mosquito and
cockroach.
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· The ego-defensive Function: It is natural that most of the consumer

wants to protect their self images and they want to feel secure and safe about
the product which they are going to buy. Many advertisements helps the
consumer to feel secure and confident by which the marketer tries to changes
the attitude by offering reassurance to the consumers self concept. Eg: Bolero
advertisement.

· The value – expressive function : Attitudes are an expression or

reflection of the consumer’s general values, lifestyles, and outlook. If a
consumer segment generally holds a positive attitude toward owning the latest
designer jeans, then their attitudes toward new brands of designer jeans are
likely to reflect that orientation. Thus by knowing target consumers attitudes,
marketers can better anticipate their values, lifestyles or outlook and can reflect
these characteristics in their advertising and direct marketing efforts.

· The Knowledge Function: Customers always have the urge of knowing

more about the products. This “need to know” is considered to be important
while positioning the product. Indeed, many products and brands positioning
are attempt to satisfy the need to know and to improve consumer’s attitude
toward the brand by emphasizing its advantages over competitive brands.

· Combining Several Functions: The customers likes or dislikes are

different for different products and services. If three consumers are having
positive attitudes towards Suave hair care products. However, one may be
responding solely to the fact that the products work well (the utilitarian
function); the second may have th inner confidence to agree with the point
“when you know beautiful hair doesn’t have to cost a fortune”( an ego defensive
function). The third consumer’s favorable attitudes might reflect the realization
that Suave has for many years stressed value(equal or better products for less)
– the knowledge function.

2). Associating the product with an admired group or event: Attitudes are
related, at least in part, to certain groups, social event’s or causes. It is
possible to alter attitudes toward companies and their products, services and
brands by pointing out their relationships to particular social groups, events, or
causes.

Companies regularly include mention in their advertising of the civic and public
acts that they sponsor to let the public know about the good and that they are
trying to do. For example Crest Sponsors a program that promotes good oral
care to children through the Boys and Girls Clubs of America.

Recent research into brand-cause alliances have investigate the relationship

between the “cause and the “sponsor”. For instance, one study found that while
both the brand and the cause benefit from such alliances, a low familiar cause
benefited more from this association with a positive brand than did a highly
familiar cause. This finding seems to indicate that it is likely to be a good idea
for a sponsor to reveal to target consumers the reasoning behind their
sponsorship, so that consumers know the sponsor’s motives rather than from
their own potentially inaccurate or negative motives.

3). Resolving two conflicting attitudes: Attitude change strategies can

sometimes resolve actual or potential conflict between two attitudes.
Specifically, if consumers can be made to see that their negative attitude toward
a product, a specific product, a specific brand or its attributes is really not in
conflict with another attitude, they may be induced to change their evaluation of
the brand.
4). Altering components of the multi attributes model : Multi attitude
models have implications for attitude change strategies; specifically, they
provide us with additional insights as to how to bring about attitude change:

● Changing the relative evaluation of attributes : The overall market

for many products categories is often set out so that different consumer
segments are offered different brands with different features or benefits.
For instance, within a product category such as dishwashing liquids,
there are brands such as Dawn that stress potency and brands such as
Dove that stress gentleness. These two brands of dishwashing liquids
have historically appealed to different segments of the overall
dishwashing liquid market. Similarly when it comes to coffee, or when it
comes to headache remedies, there is the division between aspirin and
acetaminophen.

In general when a product category is naturally divided according to

distinct product features or benefits that appeal to a particular segment of
consumers, marketers usually have an opportunity to persuade consumers to
“cross over”.

● Changing brand beliefs: A second cognitive oriented strategy for

changing attitudes is changing beliefs or perceptions about the brand
itself. Advertising helps us to find out what a particular product has
“more” or is “better” or “best” in terms of some important product
attribute. As a variation on this theme of “more” ads for Palmolive
dishwashing gentleness by suggesting that it be used for hand washing
of fine clothing items.

Within the context of brand beliefs, there are forces working to stop or
show down attitude change. For instance, consumers frequently resist evidence
that challenges a strongly held attitude or belief and tent to interpret any
ambiguous information in ways that reinforce their preexisting attitudes.
 ● Adding an Attitude: This can be accomplished either by adding an
attribute that previously has been ignored or one that represents an
improvement or technological innovation.

The first route, adding a previously ignored attribute, can be illustrated by the
point that yogurt has more potassium than a banana. For consumers interested
in increasing their intake of potassium, the comparison of yogurt and bananas
has the power of enhancing their attitudes toward yogurt.
The second route of adding an attribute that reflects an actual product change
or technological innovation is easier to accomplish than stressing a previously
ignored attribute.
Sometimes eliminating a characteristic or feature has the same enhancing
outcome as adding a characteristics of attribute. For instance, a number of skin
care or deodorant manufacturers offer versions of their products that are
unscented.

● Changing the overall brand rating : Another strategy consists of

attempting to alter consumer’s overall assessment of the brand directly,
without attempting to improve or change their evaluation of any single
brand attribute. Such a strategy frequently relies on some form of global
statement that “this is the largest selling brand” or “ the one all others
try to initiate” or a similar claim that sets the brand apart from all its
competitors.

Consumer motivation

Concept of Motivation:

Motivation is the reason for behavior. A motive is an unobservable inner force

that stimulates and compels a behavioral response and provides special
direction for that response. A motive is the reason why an individual does
something. But as the above example illustrates, the motives underlying the
purchase of a product like water can be quite complex.

Motivation asks the question ‘why’? about human behaviour. For example, why
do they prefer McDonald’s hamburgers than Nirula’s Burgers?, Why are you
reading this book?, Why he buys only from Bigjos? etc.

Very few answers to why? questions are simple and straightforward. No one
observing your behaviour know for sure why you are behaving in a particular
manner.
“A person is said to be motivated when his or her system is energized (aroused),
made active and behaviour is directed towards a desired goal”.

Before we go in deep, let us know the place of motivation in Buying Behaviour.

Following diagram (3.1) shows that a given instance of buying behaviour is the
result of three factors multi plied by each other, the ability to buy something,
the opportunity to buy it and the motivation i.e. the wish, the need or the desire
to do so.

Dynamic Nature of Motivation:

Motivation means the driving force within individuals that impels them to
action. It is considered to be dynamic in nature as is constantly changing in
reaction to life experiences. Needs and goals are constantly changing because
of an individual’s physical condition, social circle, environment and other
experiences.

When one goal is achieved, an individual tries to attain the new ones. If they are
unable to attain, either they keep striving for them or finds out the substitute
goal. Psychologists have given certain reasons to support the statement “Needs
and goals are constantly changing”—

(1) An individual’s existing needs are never completely satisfied, they

continually impel them to attain or maintain satisfaction.

(2) As one need is satisfied, the next higher level need emerges.

(3) An individual who achieves their goals set new and higher goals for
themselves.

Needs are never fully satisfied:

Most of the human needs are never permanently satisfied. For example, most
people need continuous approval from others to satisfy their social needs. There
are various examples in our surroundings that show temporary goal
achievement does not fully satisfy the need for power and every individual
keeps striving to satisfy the need more fully.

Some researchers say that new needs emerge as old needs are satisfied. In
motivational theories, researcher have given facts supporting that new higher-
order needs emerge as individual fulfills his lower needs (Maslow’s hierarchy of
needs).

Marketers must be aware of the changing needs. For example, now-a-days

everybody has become environment conscious, so companies have also adapted
environment friendly attitude like using paper bags for packing or for
promotional strategy.

Similarly, automobiles were considered as prestige symbol before and therefore,

marketer were promoting in the same manner. Now, marketers stress more on
safety because consumers are going for long drives with family because of
shifting of need satisfaction reasons of people.

Success and failure influence goals:

Individuals set their new and higher goals, if they successfully achieve the
previous ones. This means they raise their levels of aspiration. The success in
the previous goals gives them confidence for reaching higher goals. So, we can
say that success and failure of an individual also plays a major role in goal
selection.

Marketers use these effects i.e., success and failure on goal selection for
formulating strategies. Advertisement should not promise more than the
product will deliver. This means advertisers should not create unrealistic
expectations for these products as they cause dissatisfaction among consumers.
When, for one reason or another, an individual cannot attain a specific goal then
he/she will be directed to a substitute goal. Substitute goal may not be as
satisfactory as the actual one but may try to reduce the tension. Sometimes
substitute goal may be used as a defensive tool for frustration. For example, a
women stop drinking buffalo milk as she is dieting may actually begin to prefer
skimmed milk.

Frustration is basically the outcome of inability to achieve a goal. The barriers

can be many like financial limitations or incapability or physical or social
environment. Every individual reacts differently to these situations; some are
adaptive, find out the obstacle or go in for a substitute goal. Others may take
this as personal failure and experience feelings of anxiety.

Defense Mechanisms:

Some people are unable to cope with frustration, so they redefine the
frustrating situation in order to protect their self image and defend their self
esteem. For example, a young man wants to buy Opel car which he cannot
afford’. The coping individual may select a less expensive car like Maruti Zen
etc. An individual who cannot cope may react with anger toward his boss for not
paying him enough money to buy a car. These possibilities can be categorized
under aggression.

Multiplicity of Needs:

A consumer tries to fulfill two or more needs by attaining a single goal. For
example, wearing an Allen Solly shirts and trousers can be for protection or for
enhancing societal image.

Needs and Goals Vary:

This is true that the needs and goals vary from an individual to individual.
People with different needs may try to fulfill by selecting the same goal,
whereas people with same needs may try and fulfill them by different goals. For
example if women who are actively involved in the office work may be behaving
like this because of recognition in the organization, for promotion, or for
security in the job to earn livelihood.

Similarly, these people may be driven by the same need (example, an ego need)
to seek fulfillment in different ways. One of them may want recognition through
a professional career, other may join a health club and the other may actively
involved in the consumer active movement.

The arousal of any particular set of needs may be the outcome of internal or
external stimuli. The internal stimuli may be the outside environment like
product itself, advertisement or other promotional activities.

Physiological:

Bodily needs at any specific moment of time are rooted in an individual’s

physiological conditions at that moment. If the body temperature goes down the
person shivers. If a person experiences stomach contractions then the hunger
need is triggered.

Emotional:

It is believed that people who are frustrated try to visualize themselves in a

desirable situation often by daydreaming and think the need to be satisfied.

Cognitive:

Sometimes random thoughts or personal achievements can lead to a cognitive

awareness of needs. In some ads the reminder is provided by the marketer,
which triggers instant recognition of need, For example, the ads given by
Vandana Luthra’s Curls and Curves, Alps etc.

Environmental:
Most of the needs are activated by specific cues in the environment. For
example, the sight or smell of a cake or a pastry, fast food commercials on the
television (McDonald’s burgers).

Sometimes when you visit your friend’s house and come across a product, which
may activate your need. These types of cues can be given in advertisement.
Because of advertisement or other environmental cues produces a psychological
imbalance in the viewer’s mind. For example, a working women comes across a
food processor ad. on television that simplifies the work. The ad. may make her
so unhappy that she experiences severe tension until she buys herself new food
processor model.

Two philosophies concerned with the arousal of human motives are:

1. Stimulus- response theory:

This was given by behaviorist school; in this behavior is seen as the response to
a stimulus and elements of conscious thoughts are ignored. For example,
impulse buyer who is largely attracted to the stimulus i.e. external environment
in buying situation.

2. Conritive Theory:

This believes that all behaviour is directed at goal achievement. Needs and past
experiences are transformed into attitudes and beliefs that act as
predispositions to behaviour. These in turn, help individual satisfy his/her needs.

Importance of Consumer Motivation:

Consumer motivation is a critical concept in understanding consumer behavior

and plays a significant role in marketing and business strategies. It refers to the
driving forces behind consumers' actions and decisions when they interact with
products, brands, and services. Here are some key reasons why understanding
consumer motivation is important:
1. Influences Buying Decisions:
Motivation drives consumers to make purchase decisions. Understanding
the underlying motives—whether emotional, psychological, or functional
—helps businesses predict what products or services consumers are
likely to buy and why. This knowledge allows companies to tailor their
offerings and marketing strategies to align with consumer needs and
desires.
2. Guides Product Development:
By understanding what motivates consumers, businesses can develop
products that meet their specific needs and desires. For instance, if
consumers are motivated by sustainability, companies can focus on
creating environmentally friendly products. This alignment increases the
likelihood of product acceptance and success in the market.
3. Enhances Marketing Strategies:
Knowing what motivates consumers enables marketers to craft more
effective marketing messages and campaigns. For example, if a consumer
is motivated by status, marketing can highlight the exclusivity or prestige
of a product. This targeted approach helps create more persuasive and
compelling communications that resonate with the target audience.
4. Builds Customer Loyalty:
When a brand understands and consistently meets the motivations of its
customers, it fosters stronger emotional connections and trust. This
alignment between consumer motivation and brand offerings can lead to
increased customer satisfaction, repeat purchases, and long-term loyalty.
Motivated customers are also more likely to become brand advocates,
promoting the brand through word-of-mouth.
5. Improves Customer Experience:
Understanding consumer motivation helps businesses enhance the
overall customer experience. By addressing the specific needs and
desires that motivate consumers, companies can provide more
personalized and satisfying experiences, whether through product
features, customer service, or after-sales support. This, in turn, enhances
customer satisfaction and retention.
 6. Identifies Market Segments:
Different consumers have different motivations. Understanding these
varying motivations allows businesses to segment the market more
effectively and target specific consumer groups with tailored products
and marketing efforts. This segmentation improves the efficiency and
effectiveness of marketing campaigns.
7. Adapts to Changing Consumer Needs:
Consumer motivations can change over time due to social, economic, and
personal factors. By regularly analyzing consumer motivations,
businesses can stay attuned to these shifts and adapt their strategies
accordingly. This agility ensures that companies remain relevant and
competitive in the marketplace.
8. Reduces Marketing Risks:
Investing in understanding consumer motivations reduces the risk
associated with launching new products or entering new markets. By
aligning product features, branding, and promotional strategies with
consumer motivations, businesses can better predict market responses
and minimize the risk of product failure.

Overall, consumer motivation is a cornerstone of effective marketing and

business strategy. It provides insights into why consumers behave the way they
do, enabling companies to better meet consumer needs, create value, and
achieve long-term success.

Components of Motivation are:

It is important for marketers to realize that motivation is only one of the
essential elements that contributes to buying behaviour as given in Fig. 3.1. No
amount of love or money or other incentives could motivate the person who is
not able to walk.

Similarly, if a shopkeeper is offering sale on all the items but he/she opens on
weekdays only upto 6.00 p.m. In this case even if people are motivated but the
shopkeeper is giving very little opportunity to act on their motivation.

Similarly, suppose a company is offering a new product line and spending much
on heavy advertisement, company is not ensuring whether the products are
available in all the outlets.

Needs, Goals and Motives:

Motivation can also be described as the driving force within individuals that
impels them to action. As shown in the figure 3.2, this driving force is the result
of tension, which in turn is because of unfulfilled needs. To reduce tension,
every individual strives for fulfilling their needs. This basically, depends on each
individual how they fulfill their needs i.e. individual thinking and learning
(experiences). Therefore, marketers try to influence the consumer’s cognitive
processes.

Needs:
Every individual has needs, they are innate and acquired. Innate needs are also
called physiological needs or primary needs which include food, water, air,
shelter or sex, etc. Acquired needs are those needs that we learn from our
surroundings / environment or culture. These may include need for power, for
affection, for prestige, etc. These are psychological in nature; therefore they are
also called as secondary needs.

Goals:

Goals are the end result of motivated behaviour. As in the above diagram (3.2)
every individual’s behaviour is goal-oriented.

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From marketer point of view, there are four types of goals:

(a) Generic goals:

General classes of goals that consumers select to fulfill their needs. For
example, need for washing hands.

(b) Product specific goals:

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For washing hands what kind of product is used. For example, use soap, liquids
etc.

(c) Brand specific goals:

For example, which soap – Lux, Pears etc., to be purchased.

(d) Store specific goals:

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From where that product must be purchased.

Goal Selection:

The goals selected by individuals depend on their personal experiences, physi-

cal capacity, goal’s accessibility in the physical and social environment and
above all the individual’s cultural norms and values. For example, if a person
has a strong hunger need, his/her goal will depend on what is available at that
moment, in which country he is i.e., if in India cannot eat steak, as it is against
his values and beliefs. He will have to select a substitute goal which is more
appropriate to the social environment.

An individual’s own perception of his/her also influence the selection of the

goal. The products a person owns, would like to own, or would not like to own
are often perceived in terms of how closely they are congruent with the
person’s self image. It is seen that usually that product is selected by an
individual which has a greater possibility of being selected than one that is not.

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Needs and goals are interdependent, existence of one is impossible without the
other. For example, sometimes people join a club but is not consciously aware of
his social needs, a woman may not be aware of her achievement needs but may
strive to have the most successful boutique in town. One reason for this can be
that individuals are more aware of their physiological needs than they are of
their psychological needs.

Motives:

Consumer researchers have given two types of motives-rational motives and

irrational (emotional) motives. They say, that consumers behave rationally when
they consider all alternatives and choose those that give them the greatest
utility. This is also known as economic man theory.

Marketers meaning of rationality is when consumers select goals based on

totally objective criteria such as size, weight or price, etc. Emotional motives
imply the selection of goals according to personal or subjective criteria. For
example, desire for status, individuality, fear of owning the product (from
society), pride, affection, etc.

It is assumed that consumers always attempt to select alternatives that in their

view, serve to maximize satisfaction. The measurement of satisfaction is a very
personal process, based on the individual’s own needs structure as well as on
past behavioural and social experiences.

It is seen that what may appear irrational to others may be perfectly rational in
consumer’s opinion. For example, if an individual purchases a product to
enhance self-image and considers this to be a rational decision and if behaviour
does not appear rational to the person at the time of purchasing then he would
have not purchased. Therefore, it is very difficult to distinguish between
rational and emotional consumption motives.

Can Needs be Created?

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This is a very ancient question about marketing and motivational research can
help us provide an answer to it. Like the products ‘Hit’ spray for cockroaches
and ‘Hit’ for mosquitoes. The consumers decided for themselves that the
psychological satisfaction obtained from using the cockroach spray was more
important to them than the need for a cleaner and more efficient product.

People say that needs are created for them by the marketer through subliminal
method. To some extent one can influence the consumer through subliminal
perception; the effects are probably not very great or very specific. So, there is
no evidence whatsoever that anyone can create a need in a consumer.
Marketers and advertisers can only try to stimulate an existing need or can
channel consumers need in a certain direction towards one product or brand
rather than another, but the results are unpredictable.

Maslow’s Hierarchy of Needs Theory

Behind every successful organisation, there is a highly motivated and

committed team of employees. Since motivation is complex as it deals with
human behaviour, various researchers have given different theories. Maslow’s
Hierarchy of Needs theory is considered very significant as it highlights
the needs of the people. It is a psychological theory proposed by Abraham
Maslow in 1943. It suggests that human needs are arranged in a hierarchical
order, starting from basic physiological needs to higher-level needs for self-
actualization. The hierarchy is typically depicted as a pyramid with five levels:
Basic Psychological Needs, Safety Needs, Social Needs, Esteem Needs,
and Self-actualization.

Maslow categorised human needs into five types:

1. Basic Physiological Needs

These needs are basic for the survival of humans, and include hunger,
thirst, shelter, sleep, sex, etc. These needs form the base of the hierarchy and
have the highest strength in terms of motivation. Salary and other
monetary incentives are the basic physiological needs in the context of
organisational needs.

2. Safety or Security Needs

After satisfying the basic physiological needs, an individual thinks about
safety from future uncertainties and other threats. Safety and security
needs aim to ensure that the person will be able to meet the physiological
needs not only in present but also in future. It includes motivators like
benefits of life insurance, pension plans, job security, etc.
Safety and security needs are concerned with two kinds of securities:

a) Physical Security: It includes security against death, injury, illness and

other bodily threats.
b) Financial Security: It includes security of job and congenial working
conditions.

3. Social or Affiliation or Belonging Needs

When physiological and safety needs are satisfied, social needs are
important. These include need for love, friendship, affection and social
interaction. The need for belongingness and acceptance plays a very
important role in motivating human behaviour. The formation of informal groups
in the workplace is an example of social or belonging needs.

4. Esteem Needs
After social needs, satisfaction of esteem needs is important as per
Maslow’s theory. These needs relate to the desire for recognition and
respect from others. Esteem needs include autonomy status, attention,
appreciation from others or prestige in society. Generally, employees at a
higher level are motivated by such needs.

5. Self Actualisation Needs

These include needs of becoming what one really wants to become. These
needs inspire and motivate a person to develop himself to his maximum
potential. Therefore, they are placed at the top of the need hierarchy.
These include growth, self-fulfilment and achievement of goals.
Challenging jobs, opportunities for innovation, etc., are motivators, which help
to satisfy the self-actualisation needs of an individual.

Assumptions of Maslow’s Hierarchy of Needs Theory

Maslow’s Theory is based on the following assumptions:

1. People’s behaviour is based on needs. Fulfillments of needs decide

the behaviour. When needs are fulfilled, an individual behaves
positively and behaves negatively when the needs are not fulfilled.

2. People are motivated by unfulfilled needs, and once a particular

need is satisfied, it ceases to be a motivating factor. Therefore,
motivation ends with the satisfaction of needs, after that next
higher need serves as a motivator.

3. An individual’s needs start from basic and go to other higher

level needs. Therefore, we can say that people’s needs are in
hierarchical order.

4. An individual moves to the next higher level of the hierarchy only

when the lower needs are satisfied.

Merits of Maslow’s Hierarchy of Needs Theory

The merits of Maslow’s theory are as follows:

1. Integrated Framework: Maslow’s theory provides a comprehensive

framework that integrates various human needs into a single model, helping to
understand human motivation in a structured way.

2. Wide Applicability: The theory is applicable across different cultures and

contexts, making it a universal tool for understanding human behavior.

3. Easy to Understand: The hierarchy is straightforward and easy to grasp,

making it accessible to a wide audience, including those without a background
in psychology.
4. Human-Centered: The theory places humans and their needs at the center,
highlighting the importance of addressing various aspects of well-being.

5. Employee Motivation: Maslow’s hierarchy has influenced management

practices, emphasizing the importance of fulfilling employees’ needs at different
levels to enhance motivation and productivity.

6. Organizational Development: The theory has contributed to the

development of human resource practices aimed at improving employee
satisfaction and organizational culture.

Limitations of Maslow’s Hierarchy of Needs Theory

The limitations of Maslow’s theory are as follows:

1. Scientific Validation: The theory lacks rigorous empirical support and has
been criticized for not being scientifically validated through extensive research.

2. Methodological Issues: Some critics argue that the theory is based on a

limited sample and anecdotal evidence, raising questions about its
generalizability.

3. Western-Centric: Maslow’s theory is often seen as being rooted in Western

individualistic values, which may not be fully applicable in collectivist cultures
where community and social relationships are prioritized.

4. Linear Progression Assumption: The assumption that individuals move

through the hierarchy in a linear fashion may not reflect the complexities of
human motivation, where needs can be interrelated and simultaneously
influential.

5. Vague Definition: The concept of self-actualization is vaguely defined and

can be difficult to measure or operationalize in practical terms.

6. Lack of Dynamism: Maslow’s model is relatively static and does not

account for changes in individual priorities or the dynamic nature of human
needs over time.

Criticisms of Maslow’s Theory of Motivation:

Despite the appreciation for this theory, it has been criticised by many
on the following grounds:
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1. Researchers have proved that there is lack of hierarchical structure of needs

as suggested by Maslow, though every individual has some ordering for his need
satisfaction.

Some people may be deprived of their lower level needs but may still strive for
self actualisation needs. The example of MAHATMA GANDHI is one of the most
important. There are always some people to whom, the need for self-esteem is
more prominent than social needs.

2. Another problem is that there is a lack of direct cause and effect relationship
between need and behaviour. One particular need may cause different type of
behaviour in different persons. On the other hand, as a particular individual
behaviour may be due to the result of different needs. Thus, need hierarchy is
not as simple as it appears to be.

3. Need and satisfaction of needs is a psychological feeling. Sometimes even the

person may not be aware about his own needs. How can the managers come to
know about these needs?

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4. Some people say that hierarchy of need simply does not exist. At all levels
needs are present at given time. An individual motivated by self actualisation
needs cannot afford to forget his food. But this criticism is solved by Maslow by
saying that needs are interdependent and overlapping.

5. Another problem with Maslow’s theory of motivation is the operationalisation

of some of his concepts which makes it difficult for the researchers to test his
theory. For instance, how does one measure self actualisation?
Despite its drawbacks, Maslow’s theory offers managers a good handle on
understanding the motives or needs of individuals and how to motivate
organisational members.

Mcclelland’s Needs Theory of Motivation

Another well-known need-based theory of motivation, as opposed to hierarchy of

needs of satisfaction-dissatisfaction, is the theory developed by McClelland and
his associates’. McClelland developed his theory based on Henry Murray’s
developed long list of motives and manifest needs used in his early studies of
personality. McClelland’s need-theory is closely associated with learning theory,
because he believed that needs are learned or acquired by the kinds of events
people experienced in their environment and culture.

He found that people who acquire a particular need behave differently from
those who do not have. His theory focuses on Murray’s three needs;
achievement, power and affiliation. In the literature, these three needs are
abbreviated “n Ach”, “n Pow”, and “n Aff” respectively’.

He described three types of motivational needs which affect the motivation level
and effectiveness in job functions:

● Need for Achievement

● Need for Affiliation
● Need for Power

Need for Achievement

The achievement-motivated person seeks some form of achievement for

accomplishing certain challenging goals and advancing in a career. The need for
success is high and people are interested in taking feedback regarding their
work and the progress of their work.
People with a higher need for achievement want to do extremely well and thus
tend to avoid both low-risk and high-risk situations. Such individuals prefer jobs
which require moderate or calculative risks.

Characteristics of Achievement need (n-Achievement) people-

People needing achievement display the following behaviors:

● Strive to find solutions of problems

● Has a strong need to set and accomplish challenging and thought
provoking goals.
● Self motivated and insists on getting rapid feedback on their
performances to asses their progress.
● Takes calculated risks to accomplish their goals
● Wants to take challenging job and takes personal responsibility for
getting things done
● Wants to feel successful at doing something over which they have control.
● Task centered
● Future oriented
● Prefer to work alone
● Performs to internal standard of excellence
● Take responsibility for results of behaviour
● Set moderate achievement goals
● Prefer to set performance standards for themselves
● Prefer non routine tasks to routine assignments

Need for Affiliation

The affiliation-motivated individuals look for friendly relationships and are

motivated towards interacting with other people. They look forward to having
good relationships with other people and need to feel accepted by them.

The move for affiliation motivates people and they want to be appreciated and
held in good regard. Individuals normally work together as a team, obey and
follow the rules of their working team and prefer the work that involves
important personal interaction.
Characteristics of Affiliation need (n-Affiliation) People-

People needing affiliation display the following behaviors:

● Take a special interest in work that provides companionship and social

acceptance
● Strive for friendship
● Prefer cooperative situations rather than competitive ones
● Desire relationships involving a high degree of mutual understanding
● Doesn't like high risk or uncertainty
● Focuses on "establishing, maintaining, and restoring positive affective
relations with others"
● Want close, warm interpersonal relationships
● Seek the approval of others, especially those about whom they care
● Like other people, want other people to like them, and want to be in the
company of others
● Prefer work that provides significant personal interaction; they perform
well in customer service and client interaction situations
● Wants to belong to the group
● Will often go along with whatever the rest of the group wants to do

Need for Power

The power-motivated individuals have a drive that makes them dominant,

effective and creates an impact. They have a strong need to lead and for their
ideas to prevail. There is also a motivation and need towards increasing
personal status and reputation.

A person’s need for power can be of two types, personal and institutional. Those
who desire to have personal power want to direct others and this need is often
perceived as undesirable. Persons who want to have institutional power want to
organise the efforts of others to further the goals of the organisation.

McClelland’s acquired needs theory states that most people acquire and display
a combination of these characteristics. According to McClelland, some
employees show a strong inclination towards certain motivational needs. The
behaviour and working style of employees are affected due to motivational or
integrated needs.

Needs defined by McClelland are present in all workers and managers in

different degrees. The integration of the different needs directs a person’s or
manager’s behaviour for managing the situations in regard to being motivated
and in motivating and managing others.

People with different needs are motivated differently:

● High achievers take calculated risks and should be given challenging

projects with accessible goals.

● For high achievers, completing the task successfully is more satisfying

than even material rewards.

● High achievers expect immediate feedback for their work to know

about the progress that they have made towards their goals.

● High achievers are dedicated workers and once the goals are planned,
they involve themselves completely in their work. Employees with a
high affiliation perform best in a supportive environment.

Characteristics of Power need (n-Power)-

People People needing power often demonstrate the following behaviors:

● Wants to control and influence others

● Likes to win arguments
● Enjoys competition and winning
● Enjoys status and recognition
● Enjoy being in charge
● Influence others
● Enjoy winning
 ● Tend to be more concerned with prestige and gaining influence over
others than with effective performance
● Like to win arguments
● Focuses on controlling the means of influencing the behavior of another
person
● Have strong effects on other people
● Actively searches for means of influence
● Means of influence includes anything available to the person to control
the behavior of others
● Risk taking
● Present oriented
● Assesses situations for change
● Use superior-subordinate relationship or external rewards to control the
behavior of another

Theories of Motivation

There are several principles on which the motivation theory is based. Some of
them are A)Instinct Theory of Motivation

Early work on motivation ascribed behaviour to instinct-the innate patterns of

behaviour that are universal in species. This view is now largely discredited. For
one thing, the existence of an instinct is difficult to prove or disprove. It is like
saying that a consumer buys status symbols because he or she is motivated to
attain status, which is hardly a satisfying explanation.

B)Drive Theory

Drive theory focusses on biological needs that produce unpleasant states of

arousal (e.g., your stomach grumbles during a morning class). We are motivated
to reduce the tension caused by this arousal. Tension reduction has been
proposed as a basic mechanism governing human behaviour. In marketing,
tension refers to the.unpleasant state that exists if a person's consumption
needs are not fulfilled. A person maybe grumpy if he hasn't eaten, or he may be
dejected or angry if he cannot afford that new car he wants. This state activates
goal-oriented behavior, which attempts to reduce or eliminate this unpleasant
state and return to a balanced one, is termed homeostasis. Drive theory,
however, runs into difficulties when it tries to explain some facets of human
behaviour that run counter to its predictions. People often do things that
increase a drive state rather than decrease it. For example, people may delay
gratification. If you know you are going out for a lavish dinner, you might decide
to forego a snack earlier in the day even though you are hungry at that time. In
other cases, people deliberately watch erotic movies, even though these stimuli
often increase sexual arousal rather than diminish it.

C)Expectancy Theory

Most current explanations of motivation focus on cognitive factors rather than

biological ones to understand what drives behaviour. Expectancy theory
suggests that behaviour is largely pulled by expectations of achieving desirable
outcomes - positive incentives, rather than pushed from within. We choose one
product over another because we expect this choice to have more positive
consequences for us. Thus the term drive is used here more loosely to refer to
both physical and cognitive processes.

D)Maslow’s Hierarchy of Needs Theory-Maslow’s Hierarchy of Needs

Theory is regarded as one of the most popular theories on motivation. It is a
theory of psychology that explains that humans are highly motivated in order to
fulfill their needs, which is based on hierarchical order.It was first introduced by
Abraham Maslow in 1943 for his paper titled Theory of Motivation and is based
on a hierarchy of needs, which starts with the most basic needs and
subsequently moves on to higher levels.The main goal of this need hierarchy
theory is to attain the highest position or the last of the needs, i.e need for self
actualization.
Maslow categorized the five needs into higher and lower orders.

Lower-order: Physiological and safety.

Higher-order needs Social, esteem, and self-actualization.

1. Physiological Needs
2. Security Needs
3. Social Needs
4. Esteem Needs
5. Self-Actualization

E)McClelland's Human Motivation- This theory states that every person has
one of three main driving motivators: the needs for achievement, affiliation, or
power. These motivators are not inherent; we develop them through our culture
and life experiences. Achievers like to solve problems and achieve goals. The
needs the model considers are: Achievement (getting things done), Power
(having influence over others), and Affiliation (having good relationships).
MOTIVATIONAL CONFLICT'S
A purchase decision may involve more than one source of motivation.
Consumers often find themselves in situations where different motives, both
positive and negative, conflict with one another, since marketers are attempting
to satisfy consumers' needs, they can also be helpful by providing possible
solutions to these dilemmas. As shown in Figure 5.3, three general types of
conflicts can occur: approach-approach, approach avoidance, and avoidance-
avoidance. Consumer Motivation and Involvement
5.6.1 Approach-Approach Conflict
Here, a person must choose between two desirable alternative. A student might
be torn between going home for the holidays or going on with friends for a
sightseeing trip.Or, he or she might have to choose between two equally desired
music albums but only one can be bought with the limited funds that they have.
5.6.2 Approach-Avoidance Conflict
Many of the product and services we desire have negative consequences
attached to them as well. We may feel guilty or ostentatious when buying ice
creams or expensive perfume. Some solutions to these conflicts include the
proliferation of fake furs, which eliminate guilt about harming animals to make
a fashion statement, and the success of diet foods, such as Weight Watchers,
that promise good food without the calories. Many marketers try to overcome
guilt by convincing consumers that they are deserving of luxuries.
The conflict of this kind gives rise to another consumer behaviour concept,
called cognitive dissonance. The theory of cognitive dissonance is based on the
premise that people have a need for order and consistency in their lives and
that a state of tension is created when beliefs or behaviours conflict with one
another. A state of dissonance occurs when there is a logical inconsistency
between two or more beliefs or behaviours. It often occurs when a consumer
must make a choice between two products, where both alternatives usually
possess both good and bad qualities. By choosing one product and not the other,
the person gets the bad qualities of the chosen product and loses out on the
good qualities of the unchosen one. This loss creates an unpleasant, dissonant
state that the person is motivated to reduce. The conflict that arises when
choosing between two alternatives may be resolved through a process of
cognitive dissonance reduction, in which people are motivated to reduce this
inconsistency (or dissonance) and thus, eliminate unpleasant tension. People
tend to convince themselves after the fact that the choice they made was the
smart one by finding additional reasons to support the alternative they chose, or
perhaps by "discovering" flaws with the option they did not choose. A marketer
can resolve an approach-avoidance conflict by bundling several benefits
together. For example, Miller Lite's claim that it is "less filling" and "tastes
great" allows the drinker to "have his beer and drink it too"

5.6.3 Avoidance--Avoidance Conflict

Sometimes consumers find themselves caught "between a rock and hard place."
They may face a choice with two undesirable alternatives. A person may be
faced with the option of either throwing more money into an old car or buying a
new car. Marketers frequently address this conflict by message that stress the
unforeseen benefits of choosing one option (e.g., by emphasizing lease finance
or easy payment plans to ease the pain of new-car payments). Similarly, the
problem of remaining unemployed or taking up a job which is either life
threatening or socially low. Medicine buying is another example of this type of
conflict.

Motivational Research:

It refers to the qualitative research designed to uncover the consumer’s

subconscious or hidden motivations. After working on this, researchers found
that consumers are not always aware of the reasons for their actions. Through
this, they have tried to uncover underlying feelings, attitudes and emotions
related to products, service or brand to be used etc.

How Motivational Research Developed:

Sigmeud Freud’s psychoanalytical theory provided the basis for the

development of motivational research. We will study this in detail in
‘Personality’. This theory states that unconscious needs or drives (biological and
sexual drives) are at the heart of human motivation and personality.

Later, other researchers adopted Freud’s psychoanalytical techniques to study

consumer buying habits. Now, the research was focused on what consumers did
than why they did it. This was done through qualitative and descriptive studies.
For example, cigarettes are bought just because of their sexual symbolism.

Some drawbacks related to motivational research are that because of its

qualitative nature, samples taken were small and therefore generalized findings
about the market were taken. Moreover, projective tests and in-depth interviews
are highly subjective. If the same data is analyzed by three researchers the
outcome is three different results.

Critics for Freud’s theory and other theories are:

1. This theory was specifically designed for use with disturbed people, while
behaviorists were interested in explaining the behaviour of typical consumers.

2. Freudian theory was developed in different social context (19th century

Vienna), while motivational research was introduced in 1960’s post-war
America.

In today’s scenario, despite the criticisms or shortcomings, motivational

research is still regarded as an important tool by marketers who want to gain
deeper insight into the why’s consumer behaviour. Research shows that
unconscious mind may understand and respond to nonverbal symbols, can form
emotional responses and also their actions can be independent of conscious
state of mind. Semiotics is the new science field that is concerned with the
conscious and subconscious meanings of nonverbal symbols to consumers. This
is possible through motivational research.

Marketers use motivational research in developing new ideas for promotional

campaigns. That is through this, they are able to penetrate the consumer’s
conscious state of mind. Marketers are now able to explore consumer reactions
to ideas and advertising copy at an early stage, to avoid the financial setback
later.

Now profit organizations also use motivational research so that more and more
number of people participate in their organization.

In the end, we can say that motivational research analyzes and usually suggests
new ways for Marketers to present their products to the public.

Marketing Research: Meaning, Scope and Uses

What is Marketing Research?

Marketing Research is defined as a study that consists of multiple techniques

used by companies in order to gain more information about their target
audience and the current market. Market research helps to gain information
regarding current trends, profits, losses, economic and social factors affecting
the market, and market strategies used. By utilising the gained information the
companies and producers improve the overall quality of their products, their
advertisements, and other marketing strategies.

Marketing Research helps companies to know the requirements of their

customers and develop strategies that will help them reach out to their
customers easily. As the market grows for a particular product, there increases
the involvement of parties other than producers and consumers. This decreases
the direct gap between both. Therefore the use of marketing research becomes
necessary as it helps to get the required information.

Scope of Marketing Research

1. Research on Market: Research on Market studies about current market

trends and products. It does a comparison between both the current market and
the potential market. It analyses areas such as:

● Size of market
● Analysis of Market Shares
● Selecting the Target Market
● Analysing the need or demand for new products
 ● Setting sales territories and quotes
● Assessing current market trends and projecting future market trends

2. Research on Advertising: Advertisements are considered one of the major

parts of marketing. Higher budgets are used to make effective advertisements.
The research on advertising studies areas such as:

● Selection of media that will be used for advertising, such as videos,

images, articles, blogs, podcasts, etc.

● Selection of advertising channels

● Studying promotion elements
● Positive and negative effects of advertisement in society and market
● Advertising role at different stages of product life cycle
● Government restrictions on advertising
● Studying competitors’ advertising strategies and practices

3. Research on Pricing: The price of the product is the major aspect

considered by consumers while purchasing the product. Therefore proper
research is made regarding the pricing. Having relevant pricing is important to
attract more customers. The research on Pricing makes an analysis on below
points:

● Studying pricing policies

● Studying offers and discounts
● Comparing the quality and price
● Use of various strategies for setting prices
● Pricing strategies on different stages of the product life cycle
● New product and pricing policies

4. Research on Distribution: In today’s Marketing world, distribution plays a

vital role in the success of the product. The selection of a proper distribution
channel is important. Many distribution channels are being used between
producers and consumers. Research on distribution includes the below analysis:

● Studying various distribution channels

● Selecting from direct and indirect distribution channels
● Studying online marketing
● Studying factors and strategies used for distribution
● Study on physical distribution and ancillary services
● Legal issues related to distributions

5. Research on Product: Research on Products involves detailing with the

products and services. The research covers all the issues and details that are
related to the product. Understanding the use and quality of the product is
essential before it is launched in the market. Therefore, research on products is
important. It covers the study of below points:

● Characteristics of product
● Uses of product
● Studying other competitors available in market
● Studying about problems of consumers.
● Studying the lifecycle of products, packaging, sale, etc.
● Determining the uses of existing products
● Finding out the need for new product development
● Product life cycle
● Consumer Adoption Study

6. Research on Sales Methods and Policies: Research on Sales Methods and

Policies consists of a study that is related to sales of the product. For sales, the
distribution of products is important. The strategies used for sales improve the
overall business and its profit. This study covers below points:

● Studying sales methods that are currently being used

● Analysis of sales records
 ● Management of sales force with parameters such as size, control, etc.
● Studying the sales department
● Study of advertisements, incoming customer traffic, etc.
● Study on activity and effectiveness of salesmen

7. Research on Business Environment and Corporate Responsibility:

Research on the Business Environment and Corporate Responsibility consists of
a study that is related to marketing problems. This study is conducted for big
businesses and analyses the data. It helps the business to work on its business
strategies and work accordingly. This research involves analysis on:

● Availability of product-related resources

● Long-term and short-term goals of the business
● Social, financial, and cultural factors that affect the business
● Income, economic growth, and Policies for business
● Impacts of Acts and Legal Provisions
● Technological Aspects

Uses of Marketing Research

Marketing research is used by many businesses and applications. Below are

some uses of Marketing Research:

1. Analysing the current market and its situation: Marketing research

helps a company to analyse the current market scenario. This analysis consists
of identifying the current market trends, economic condition, profit and loss,
pricing, distribution, etc. This analysis helps to confirm the strategies and
methods that are used.

2. Studying the company’s strengths and weaknesses and utilising these

strengths to gain advantages in the business: Through marketing research,
a business can verify its strengths and weaknesses with the help of a SWOT
(Strengths, Weaknesses, Opportunities, and Threats) Analysis. This helps
businesses to work more on their strengths, reduce their weakness and improve
accordingly.
3. Continuously diagnosing the threats that can occur in business:
Continuously identifying the threats that can occur is an important task for the
growth of a business. By analysing the threats that can occur, a business can
take all the preventive measures that are needed and prevent them from loss.

4. Identifying the strengths and strategies used by competitors:

Marketing research enables companies to gain insights into their competitors’
strengths, weaknesses, and strategies. Understanding the competitive
landscape helps businesses position themselves effectively and devise strategies
that can exploit competitors’ weaknesses or differentiate from their strengths.

5. Studying market opportunities and utilising them at the right time:

Marketing research helps to analyse the available opportunities in the market.
It helps to analyse trends, the needs of customers, and their segments.

6. Studying the marketing patterns of customers: It is important to study

the purchasing patterns of customers; their habits, choices, motivations, and
preferences they use. This analysis helps the company to enhance its products
according to the need of customers and change its marketing strategies and
techniques.

7. Analysis of other competitors present in the market: Marketing

research helps to study other competitors that are present in the market. This
analysis helps to improve strategies used by the company in order to play a
leading role in the market, change their approaches, use statistics, and then
perform accordingly.

8. Studying the overall progress done by the company: Studying the

overall progress helps to analyse the profitable strategies and their techniques.
By measuring some parameters such as brand awareness, satisfaction of
customers, profits, and marketing a business can improve by working according
to the study.

Methods of Conducting Marketing Research

1. Surveys

Surveys are a commonly used method in marketing research, involving the

collection of data from a sample of respondents through structured
questionnaires or interviews. Surveys can be conducted using various modes,
including online surveys, telephonic interviews, face-to-face interviews, and
mailed questionnaires. They are a valuable tool for gathering quantitative data
and insights into consumer preferences, opinions, attitudes, and behaviours.
Advantages of Surveys:

● Efficiency: Surveys can efficiently collect data from a large number of

respondents, making them suitable for obtaining a broad perspective
on a target market.

● Structured and Standardised: Surveys use standardised questions

and response formats, making data collection and analysis more
systematic and objective.

● Versatility: Surveys can be administered in various formats, such as

online, telephone, or in person, allowing flexibility in data collection.

Disadvantages of Surveys:

● Non-Response Bias: Low response rates can introduce non-response

bias, as those who do not respond may have different characteristics
or opinions from those who do.

● Survey Design Challenges: Poorly designed surveys can lead to

ambiguous or biased responses. Crafting clear, unbiased questions is
crucial.

● Cost and Time: Designing, administering, and analysing surveys can

be time-consuming and costly, especially for large-scale research.

● Limited Depth: Surveys are generally better at collecting breadth of

information rather than in-depth insights. They may not provide a
nuanced understanding of complex issues.

2. Focus Groups

Focus groups are a qualitative research method used in marketing research to

gain insights into consumer opinions, perceptions, attitudes, and feelings about
products, services, or marketing concepts. In a focus group, a small group of
carefully selected participants, typically ranging from 6 to 12 individuals, is
brought together to engage in open and guided discussions led by a skilled
moderator. These discussions are conducted in a comfortable and controlled
environment, encouraging participants to express their thoughts and reactions
to specific topics or stimuli. The main objectives of focus groups are to explore,
understand, and uncover deeper insights that can inform marketing strategies,
product development, and communication campaigns.
Advantages of Focus Groups:

● Rich Qualitative Data: Focus groups provide rich and detailed

qualitative data that can offer deeper insights into consumer
behaviour, emotions, and motivations, which quantitative methods
may not capture.

● Group Dynamics: The interaction among participants can lead to

valuable group dynamics, allowing for spontaneous discussions, idea
generation, and peer influence that can reveal hidden insights.

● In-Depth Exploration: Focus groups allow for in-depth exploration of

complex topics or concepts, helping businesses understand the “why”
behind consumer preferences and behaviors.

Disadvantages of Focus Groups:

● Limited Sample Size: Focus groups involve a small sample size,

making it difficult to generalise findings to a larger population.
Quantitative research is needed to validate insights from focus groups.

● Potential for Groupthink: Group dynamics can sometimes lead to

groupthink, where participants conform to dominant opinions, leading
to biased results.

● Moderator Influence: The skills and neutrality of the moderator play

a crucial role in ensuring unbiased discussions. A moderator’s
influence can impact the findings.

● Subjectivity: Findings from focus groups are subjective and can be

influenced by the personal experiences, attitudes, and biases of
participants.

3. In-Depth Interviews

In-depth interviews are a qualitative research method in marketing that

involves one-on-one conversations between a trained interviewer and a research
participant. These interviews are structured and conducted in a way that allows
for open-ended and in-depth discussions, exploring the participant’s thoughts,
opinions, and experiences. In-depth interviews are particularly valuable for
gaining rich insights, understanding complex issues, and exploring emotions
and motivations.
Advantages of In-Depth Interviews:

● Rich and Detailed Insights: In-depth interviews offer a deep

understanding of participants’ perspectives, experiences, and
motivations. Researchers can explore complex topics and uncover
nuances that might be missed in other research methods.

● Flexibility: Interviews can be adapted on the fly to explore

unexpected topics, follow up on interesting responses, or delve deeper
into particular areas of interest.

● Personal Connection: The one-on-one nature of in-depth interviews

often creates a more comfortable and open environment for
participants to express themselves, leading to honest and candid
responses.

Disadvantages of In-Depth Interviews:

● Time-Consuming: In-depth interviews are resource-intensive, as they

require a significant amount of time for planning, conducting, and
analysing. The process can be slower compared to other research
methods.

● Small Sample Size: Due to the time and effort required, the sample
size for in-depth interviews is usually small. While this allows for
detailed insights, it may limit the generalisability of the findings to a
larger population.

● Interviewer Bias: The skills and biases of the interviewer can

influence the direction of the interview and the interpretation of
responses. This can introduce subjectivity into the research.

4. Observational Research

Observational Research is a method of marketing research that involves

systematically observing and recording behaviour, events, or activities without
directly interacting with or questioning the subjects. This method is often used
to gain insights into consumer behaviour, product usage, and environmental
factors.
Advantages of Observational Research:

● Natural Behaviour: Observational research allows for the study of

natural behaviours and interactions, as subjects are not influenced by
direct questioning or interviews.

● Objective Data: Data collected through observation is often more

objective and less subject to bias compared to self-reported data from
surveys or interviews.

● Real-Time Insights: Observational research provides real-time

insights, enabling researchers to capture behaviors and trends as they
happen.

Disadvantages of Observational Research:

● Limited Insight into Motivations: Observational research may

provide data on what people do but often doesn’t reveal why they do
it. Understanding motivations and emotions may require
complementary methods.

● Observer Bias: Observers’ personal biases and interpretations may

influence the data collected, potentially leading to inaccuracies.

● Ethical Concerns: In some cases, observing individuals without their

knowledge or consent may raise ethical issues related to privacy.

5. Secondary Research

Secondary research, also known as desk research, is a method of marketing

research that involves the collection and analysis of existing data and
information from various sources. Instead of gathering primary data directly
from respondents or conducting new experiments, secondary research relies on
previously published or publicly available data. This can include information
from industry reports, academic studies, government publications, competitor
data, and other readily accessible sources.
Advantages of Secondary Research:
 ● Cost-Effective: Secondary research is often more cost-effective than
primary research methods, as it doesn’t require the time, resources,
and expenses associated with data collection from scratch.

● Time-Efficient: It can provide quick access to a wealth of

information, allowing businesses to gather insights and make
decisions more rapidly.

● Comprehensive Data: Secondary research often provides a broad

overview of a particular topic or industry, helping businesses gain a
deeper understanding of the market landscape.

Disadvantages of Secondary Research:

● Limited Customisation: Secondary research provides data that may

not be specific to the research objectives or the unique needs of the
business. It may lack the depth of insights that primary research can
offer.

● Data Quality: The quality of secondary data can vary, and businesses
need to critically assess the reliability and credibility of the sources.
Inaccurate or outdated data can lead to erroneous conclusions.

● Lack of Control: Since the data has already been collected by others,
businesses have no control over the research methods or questions
used to gather the information.

6. Social Media Monitoring

Social media monitoring, also known as social media listening or social media
analytics, is a marketing research method that involves tracking and analysing
conversations, mentions, and trends on social media platforms. This method
allows businesses to gain valuable insights into customer sentiment, brand
perception, industry trends, and competitor activities.
Advantages of Social Media Monitoring:

● Real-Time Insights: Social media monitoring provides real-time data,

allowing businesses to stay up-to-date with the latest trends and
customer sentiments. This is particularly valuable for timely decision-
making and response to emerging issues.
 ● Customer Feedback: It offers a direct channel for capturing
customer feedback and opinions, helping businesses understand what
customers like or dislike about their products or services. This
feedback can inform product improvements and marketing strategies.

● Competitor Analysis: Social media monitoring allows businesses to

track their competitors and understand their strategies, strengths,
and weaknesses. This information can be used to gain a competitive
edge.

Disadvantages of Social Media Monitoring:

● Data Overload: Social media generates vast amounts of data, and

sifting through this information can be overwhelming. Identifying
valuable insights from the noise can be a challenge.

● Biased Data: Social media data may not always be representative of

the entire customer base, as it’s limited to those who are active on
social platforms. This can introduce bias into the findings.

● Lack of Context: Social media conversations often lack context,

making it difficult to fully understand the reasons behind consumer
opinions or actions. Contextual information may be missing.

7. Online Analytics

Online analytics is a method of marketing research that involves the collection

and analysis of data related to online activities, such as website visits, user
behaviour, and digital marketing campaigns. It plays a crucial role in
understanding how users interact with a website or online content, and it
provides valuable insights for optimising digital marketing strategies.
Advantages of Online Analytics:

● Real-Time Data: Online analytics tools provide real-time data,

allowing businesses to monitor website traffic and user behaviour as it
happens. This immediacy is invaluable for making timely adjustments
to marketing strategies.

● User Behaviour Insights: Online analytics tools offer detailed

insights into how users interact with a website, including page views,
 click-through rates, bounce rates, and conversion funnels. This
information helps in identifying what’s working and what needs
improvement.

● Segmentation: Analytics platforms allow businesses to segment their

website visitors based on various criteria, such as demographics,
geography, referral sources, and more. This segmentation helps in
tailoring marketing efforts to specific audience segments.

Disadvantages of Online Analytics:

● Privacy Concerns: Gathering user data for analytics purposes raises

privacy concerns. Businesses must adhere to data protection
regulations and obtain user consent where required.

● Data Overload: Online analytics can generate a vast amount of data,

which can be overwhelming. Businesses need to filter out the most
relevant metrics to avoid analysis paralysis.

● Technical Expertise: Effective use of online analytics tools often

requires technical knowledge and expertise. Small businesses or
individuals without such expertise may find it challenging to harness
the full potential of these tools.

8. Ethnographic Research

Ethnographic research is a qualitative research method used in marketing to

gain a deep understanding of consumer behaviour, preferences, and culture. It
involves immersing researchers in the natural environment of the target
audience, whether that’s in a physical location, a social context, or an online
community. Ethnographers observe and interact with consumers over an
extended period, often documenting their experiences and behaviours. The goal
is to understand the context in which products or services are used, uncover
unmet needs, and identify opportunities for marketing and product
development.
Advantages of Ethnographic Research:

● In-Depth Understanding: Ethnography allows researchers to delve

deep into the lives of consumers, providing rich and detailed insights
that quantitative methods may not capture.
 ● Contextual Insights: It helps businesses understand how products or
services fit into consumers’ daily lives, the challenges they face, and
the solutions they seek.

● Natural Behaviour: Observing people in their natural environments

reduces the chances of response bias, as individuals are more likely to
behave naturally without the pressure of structured surveys or
interviews.

Disadvantages of Ethnographic Research:

● Time-Consuming: Ethnographic research is often a time-intensive

method, as it involves prolonged engagement with participants, data
collection, and analysis.

● Small Sample Size: It typically involves smaller sample sizes

compared to quantitative research, which may limit the
generalisability of findings.

● Observer Bias: Researchers may inadvertently influence the

behaviour of participants through their presence, potentially
introducing bias into the observations.

9. Experimental Research

Experimental research is a method used in marketing research to investigate

causal relationships by manipulating one or more variables and observing the
effect on another variable. In this approach, researchers design controlled
experiments to understand how changes in specific marketing strategies or
variables impact consumer behaviour, preferences, or attitudes.
Advantages of Experimental Research:

● Causality: One of the primary strengths of experimental research is

its ability to establish causality. It allows researchers to determine
whether changes in marketing strategies directly lead to changes in
consumer behavior or attitudes.

● Control: Researchers have significant control over the experimental

conditions, ensuring that extraneous factors do not confound the
results. This control increases the internal validity of the research.
 ● Replicability: Experimental studies can be replicated, and their
results can be verified independently. This enhances the reliability and
robustness of the findings.

Disadvantages of Experimental Research:

● Limited Realism: The controlled environment of experiments may

not fully replicate real-world conditions, potentially leading to a lack
of external validity. Findings from experiments may not always
generalise to actual consumer behaviour.

● Ethical Concerns: In some cases, manipulating variables or

providing incentives to participants may raise ethical concerns,
especially if it involves potentially harmful marketing strategies.

● Resource-Intensive: Experimental research can be resource-

intensive in terms of time, money, and personnel. It may not always be
feasible for small businesses with limited resources.

10. Mystery Shopping

Mystery Shopping is a method of marketing research in which individuals,

known as mystery shoppers or secret shoppers, are employed to act as typical
customers and assess the quality of products or services provided by a business.
This technique is commonly used in the retail, hospitality, and service industries
to evaluate various aspects of the customer experience. Mystery shoppers visit
or interact with businesses, make observations, and provide feedback on their
experiences.
Advantages of Mystery Shopping:

● Unbiased Evaluation: Mystery shoppers provide an independent and

unbiased perspective as they pose as regular customers. Their
evaluations are not influenced by prior knowledge or expectations.

● Assessing Customer Service: Mystery shopping is particularly

valuable for assessing customer service quality, including the
politeness and professionalism of staff, response time, and problem-
solving capabilities.

● Identifying Areas for Improvement: By highlighting areas where a

business may be falling short, mystery shopping helps identify specific
 training needs and operational improvements that can enhance the
customer experience.

Disadvantages of Mystery Shopping:

● Costs: Employing and compensating mystery shoppers can be costly,

especially when evaluations need to be conducted regularly or at
multiple locations.

● Limited Scope: Mystery shopping may not cover all aspects of a

customer’s experience, such as long-term product durability or post-
purchase support.

● Subjective Nature: Evaluations are based on the perceptions and

interpretations of individual mystery shoppers, which can be
subjective and not always reflective of the broader customer base.

What is Research Process?

Marketing Research Process is a terminology that is used to describe the
development and the actual concept of a product or service, awareness of the
brand, and its overall progress. The important factors that are considered in the
research process are product, price, place, and promotion. To launch a product
or service in the market and gain profit, all these four factors need to work
accordingly. The research process helps to find the change in customer behavior
patterns if any one of the four factors is changed or updated. Marketers need to
know about the expectations of customers, current market trends, and interests
of customers to launch their products in the market and gain the attention of
customers among all the available competitors.
Stages in Research Process
The research process studies the collection of data, analysis, and interpretation
of data that helps to gain current insights and trends in the market. Below are
the stages in the research process.

1. Defining the Problem

Defining the market research problem is the first step in the research process.
Research starts when the market faces some problems. The problem needs to
be studied to know about the causes, results, effects, and solutions to solve it.
Defining the problem in the research process studies “why” and “how”
questions related to the problem. Therefore the problem needs to be defined in
detail. The definition of the problem consists of

● The causes or factors that are responsible for the problem due to
which problems arise.

● The problems encountered due to the occurrence of any error.

● The solutions or methods that can be applied to solve the problem.

● The strategies and techniques that can be used further to avoid them.

2. Planning the Research Design

Research Design is defined as a strategy that is used to conduct market

research and collection of data. The research design consists of techniques,
methods, and procedures that will be used to collect the relevant data. The
three types of marketing research designs are:

● Exploratory: For gaining the facts and opinions regarding the

problem or any specific topic, exploratory research design is used. To
carry out exploratory research journals, books, magazines,
publications, metrics, and interviews are used.

● Descriptive: A descriptive research study is used to make a specific

decision on a problem and then track its performance. Descriptive
research needs to be analysed and measured statistically.

● Casual: Casual research design is used to study causes and their

effect on the available variables. The casual research process makes
use of theories and experiments to study the project.

3. Selecting a Sample
While solving or implementing any marketing research problem it is difficult to
study the whole population or all the customers together at once. Therefore a
smaller unit known as a sample is selected for further analysis. To select a
sample, a few points need to be considered. Such as:

● Which sample to select from available population units?

● Type of method to be used for the selection of samples from all

available units. For this, there are two types of methods; Probability
Sampling and Non-probability Sampling. Probability Sampling is
defined as a method in which the sample is selected randomly from all
the available population units. However, Non-probability Sampling
is defined as a method in which the samples or not selected randomly,
either they are selected according to investigators’ judgment or by
using some other methods.

● Size of Selected Samples: This size of selected samples helps to

determine the cost and accuracy of the decisions.

4. Collecting Data

Data can be collected through various channels. These channels help to

determine the difference between Operational Data and Experience Data.
Operational Data is defined as a type of data that describes the costs, sales,
profits, and account-related information. Experience Data is defined as a type
of data that describes the experience and thoughts of customers, employees,
and users.
With the help of surveys through social media platforms such as Email, Slack,
WhatsApp, and SMS it is possible to reach more customers and gain more data.
Data can also be collected with the help of observing the purchase patterns that
were used in the past, and are used in the present by the customers. The type of
data that is collected also plays a very important role. If data is invalid it is not
useful for further analysis.

5. Analysing Marketing Research Data

Analysing the marketing research data is an important step. It helps to decide

about the solutions and the measures that need to be avoided or to be practiced
in the future. The analysis is made on the gathered data to check for the below
parameters:

● To check whether the data that is collected is meaningful and

relevant.
 ● The relationship between the data that is collected and the prior
available data.

● To check whether the available data describes the solutions.

● Some key points that will help to make changes accordingly.

These above-mentioned points need to be checked once data is collected.

Therefore various tools and strategies can be used for the same.

6. Drawing Conclusions and Preparing a Report

Once the problem is defined in detail, the sample of data points is selected, and
relevant data is collected and analysed to make conclusions. According to the
conclusion and solutions, reports are prepared in such a way that they are easy
to understand. A report should be concise, complete, and represented with the
help of charts and graphs, presentations, visual stories, etc. The two different
types of reports are being prepared. They are:

● Technical Report: Technical reports consist of all the details about

the problem or topic, strategies and techniques used, working flow,
structure, and solutions.

● Summary Report: The summary report consists of the overall

process of research, the findings achieved, and the conclusions.

In this way, different types of reports are made at the end of the research
process.

7. Following Up

Following Up is the last phase in the research process. In prior phases the
problem is defined in detail, the data is collected and interpreted and then the
conclusions are made. Once the conclusions are made the follow-up of the
overall process and the strategies and solutions need to be taken. All the
solutions and decisions made are implemented in this phase. After the
successful implementation of the strategies, they are properly monitored and
evaluated. It checks whether all the techniques applied are effective and make a
positive impact on the marketing process.