• Time Factor: Purchase decisions vary based on time of day, day of the week, or season.

• Task: Buying decisions differ depending on product use, such as personal use or gift-giving.
• Momentary Conditions: Customer mood and condition during purchase affect decision-making.

5. Social Factors
• Reference Groups
• Family
• Roles and Status

6. Cultural Factors
• Culture
• Sub-culture: It includes sub-caste, religious sects, geographic regions, language, etc.

Economic Factors and Its Impact on Consumer Behaviour

• Personal Income
• Family income
• Income expectations
• Savings
• Liquid assets of the Consumer
• Consumer credit
• Other economic factors: Business cycles, In ation, etc.

Chapter 3: Consumer Motivation and Personality

• Personality refers to the unique set of enduring traits, characteristics, and patterns of behavior that distinguish
individuals from one another.
• Factors In uencing Personality Development:
• Genetics: Inherited traits and predispositions passed down from biological parents.
• Environment: Family, culture, socialization, and life experiences.
• Life Experiences: Signi cant events, interactions, and challenges
• Stages of Personality Development:
• Childhood: Early experiences and interactions with caregivers lay the foundation.
• Adolescence: Exploration of identity, values, and beliefs during the transition to adulthood.
• Adulthood: Consolidation of personality traits and adaptation to life circumstances.

1. Theories:
• Psychoanalytic theory: Focuses on unconscious motivations.
• Neo-Freudian theory: Emphasizes social relationships in personality development.
• Trait theory: Identi es innate psychological traits in uencing behavior.

2
fl
fi
fi
fl
fl
 • Descriptive Terms: Labels or characteristics attributed to a person or group.
• First Impressions: Initial assessments formed quickly, often based on limited information.
• Halo Effect: Tendency to perceive someone positively overall due to one positive trait or impression.

Consumer Imagery:
1. Perceived Value:
• Consumers assess whether the bene ts received from a product outweigh its cost. Higher perceived value often
leads to greater willingness to pay.
• Factors in uencing perceived value include quality, functionality, and brand reputation.
2. Perceived Price:
• Consumers' subjective evaluation of a product's cost. Perceived price may not always align with the actual price.
• In uenced by factors such as previous purchase experience, brand perception, and reference prices.
3. Reference Prices:
• Price points consumers use as benchmarks for evaluating the fairness of other prices. Reference prices in uence
consumers' perceptions of value and willingness to pay.
• Can be internal (based on personal experience) or external (based on market norms or advertising).
4. Perceived Quality:
• Consumers' judgment of a product's excellence or superiority.
• Determined by factors such as brand reputation, product features, and durability.
• Higher perceived quality often leads to greater customer satisfaction and loyalty.
5. Perceived Quality of Products:
• Consumers' assessment of the excellence of tangible goods. Brand reputation and word-of-mouth also play a
signi cant role.
• Factors in uencing perceived quality include product design, materials used, and perceived reliability.
6. Perceived Quality of Services:
• Consumers' evaluation of the excellence of intangible services. Positive service experiences can enhance brand
perception and loyalty.
• Service quality is assessed based on factors such as responsiveness, reliability, and empathy.
7. Price/Quality Relationship:
• Consumers often perceive a positive correlation between price and quality.
• Higher prices are sometimes interpreted as indicators of better quality.
8. Retail Store Image:
• Consumers' perception of a retail outlet based on factors such as ambiance, service quality, and product
assortment.
• Store image in uences consumers' likelihood to shop at a particular retailer and their overall shopping
experience.
• Retailers invest in enhancing their store image to attract and retain customers.
9. Manufacturers’ Image:
• Consumers' perception of a manufacturer's reputation, reliability, and trustworthiness.
• Manufacturer image in uences consumers' purchase decisions and brand loyalty.
• Positive manufacturer image can lead to increased sales and market share.

Perceived Risk:
1. Components of Perceived Risk:
• Perceived risk encompasses various factors that in uence consumers' perception of uncertainty or potential
negative outcomes associated with a purchase.
• Components include functional, physical, nancial, social, psychological, and time-related risks.
2. Types of Perceived Risk:
• Functional Risk: Risk related to the product's performance or functional capabilities.
• Physical Risk: Risk of harm or injury associated with product usage.
• Financial Risk: Risk related to the cost or nancial investment in a product.
• Social Risk: Risk of social embarrassment or negative perception associated with product use.
• Psychological Risk: Risk related to personal satisfaction, self-esteem, or emotional well-being.
• Time Risk: Risk related to the time invested in product purchase or usage, including opportunity costs.

Positioning:
1. Product Positioning:
• Process of creating a distinct image and identity for a product in the minds of consumers relative to competitors.
• Involves identifying and emphasizing unique selling propositions (USPs) that differentiate the product from others
in the market.

4
fl
fi
fl
fl
fl
fl
fi
fi
fi
fl
fl
 • Attention, Retention, Reproduction, Motivation: The four key processes involved in observational learning
according to Bandura's Social Learning Theory.
• Example: A child learning to ride a bike by watching an older sibling demonstrate the process, or an employee
adopting certain work habits after observing a successful colleague.
4. Information Processing: Cognitive processes involved in encoding, storing, and retrieving information.

Cognitive Learning Theory:

• Information Processing: Cognitive processes such as attention, encoding, storage, and retrieval of information.
• Involvement Theory: The degree of personal relevance or importance attached to a stimulus or situation.
• Central and Peripheral Routes: Different paths to persuasion, involving either systematic processing of
information (central route) or reliance on peripheral cues (peripheral route).
• Hemispheric Lateralization: The specialization of functions between the brain's left and right hemispheres,
in uencing learning and decision-making.
• Example: Learning a new language involves attention to grammar rules and vocabulary (information processing),
motivation to communicate with others in that language (involvement theory), and exposure to native speakers
for imitation (observational learning).

Outcomes and Measures of Consumer Learning:

• Brand Loyalty: Consumer preference for a particular brand, leading to repeat purchases and positive word-of-
mouth.
• Brand Equity: The value and strength of a brand, including brand awareness, perceived quality, and brand
associations.

Chapter 6: Consumer Attitude Formation and Change

Attitude Formation: The process by which attitudes are developed over time through various factors such as direct
experience, socialization, and communication. Attitudes can be formed through cognitive, affective, and behavioral
processes.

1. Tri-Component Attitude Model:

• Affective Component: Involves feelings or emotions associated with the attitude object. Determines the
individual's overall emotional response.
• Cognitive Component: Involves beliefs and thoughts about the attitude object. Re ects the individual's
perceptions, knowledge, and understanding.
• Behavioral Component: Involves the intention to act or actual behavior towards the attitude object. Represents
the individual's actions or intentions in response to the attitude.

2. Multiattribute Model:
• Focuses on how consumers evaluate products by considering multiple attributes simultaneously. Assumes
consumers assign different weights to attributes based on importance and evaluate alternatives based on these
weighted attributes.
• Attitude-toward-Object Model: Posits that attitudes are formed through the evaluation of an object or concept
based on beliefs and feelings. Emphasizes the cognitive and affective components of attitudes towards speci c
objects.
• Example: Assessing attitudes towards a smartphone based on perceptions of its features, quality, and
brand reputation.
• Attitude-toward-Behavior Model: Explores how attitudes in uence behaviors by considering the attitude
towards performing a speci c behavior. Highlights the role of attitudes in predicting and shaping behavioral
intentions and actions.
• Example: Understanding how attitudes towards exercising in uence actual exercise behavior.
• Theory of Reasoned Action: Extends the attitude-toward-behavior model by incorporating subjective norms,
which represent perceived social pressure to perform or not perform a behavior. Predicts behavioral intentions as
a function of attitudes towards the behavior and subjective norms.
• Example: Predicting the likelihood of recycling based on attitudes towards recycling and perceptions of
social norms.
• Theory of Trying to Consume: Focuses on situations where consumers are uncertain about their preferences or
abilities. Emphasizes the importance of effort and intention in predicting consumption behavior.
• Example: Assessing the likelihood of trying a new food product based on attitudes towards trying new
foods and perceived effort required.

6
fl
fi
fl
fl
fl
fi
 Chapter 10: The Family and its Social Standing

1. Family In uence on Consumer Behavior:

• Socialization: Family serves as the primary agent of socialization, shaping values, beliefs, and attitudes towards
consumption.
• Role Modeling: Family members, especially parents, serve as role models for consumption behaviors,
in uencing children's preferences and purchase decisions.
• Norms and Values: Family establishes norms and values regarding consumption patterns, such as frugality or
extravagance, which are internalized by individuals.
• Brand Loyalty: Family preferences and brand choices often lead to the development of brand loyalty among
members, passed down through generations.
• Financial Management: Family in uences nancial habits and budgeting practices, impacting spending patterns
and saving behaviors.
• Rituals and Traditions: Family rituals and traditions, such as holiday celebrations and gift-giving customs, shape
consumption behaviors and preferences.
• Decision-Making Dynamics: Family dynamics in uence decision-making processes, with different members
playing varying roles in purchase decisions based on authority, expertise, and in uence.
• Con ict Resolution: Con ict within the family regarding consumption choices can lead to negotiation and
compromise, affecting nal purchase decisions.
• Resource Allocation: Family allocates resources among competing needs and desires, prioritizing certain
purchases over others based on collective values and goals.
• Social Status: Family in uences consumption choices to maintain or enhance social status, re ecting cultural and
societal norms within the community.
• Education and Information: Family provides education and information about products and brands, in uencing
awareness, perceptions, and attitudes towards consumption.
• Emotional Support: Family provides emotional support during the consumption process, in uencing individual
satisfaction and overall consumer experience.
• Gender Roles: Family socializes gender-speci c consumption behaviors, reinforcing traditional roles and
expectations regarding product preferences and usage.
• Cultural Transmission: Family serves as a conduit for cultural transmission, passing down traditions, customs, and
consumption practices from one generation to the next.
• Adaptation to Change: Family adapts consumption patterns in response to life events, such as marriage,
childbirth, or relocation, re ecting evolving needs and priorities over time.

2. Family Life Cycle Stages:

• Bachelorhood: Individuals live independently or with roommates. Focus on personal development, career
advancement, and socializing.
• Honeymooners: Newly married couples without children. Focus on building a strong marital relationship,
establishing a household, and possibly career advancement.
• Parenthood: Couples raising children. Sub-stages:
• Early Parenthood: Adjusting to the demands of parenting infants and young children.
• Middle Parenthood: Balancing work, family, and children's needs as they grow.
• Late Parenthood: Preparing for children's independence and potential departure from the household.
• Post-parenthood: Couples whose children have grown and left the household. Focus shifts to pursuing personal
interests, travel, and leisure activities.
• Dissolution: Occurs when the family unit breaks down due to divorce, separation, or death. Individuals may
transition to singlehood or form new family structures.

Chapter 11: Cultural Values and Consumer Behaviour

1. Culture’s Role and Dynamics:

• De nition: Culture encompasses shared beliefs, values, norms, customs, and traditions passed down through
generations within a society.
• Role: Culture shapes individuals' perceptions, attitudes, behaviors, and consumption patterns.
• Dynamics: Culture is dynamic, evolving over time due to various factors such as globalization, technological
advancements, and societal changes.

2. Learning Cultural Values:

• Socialization: Individuals learn cultural values and norms through socialization processes within family, peers,
educational institutions, and media.
8
fl
fi
fl
fl
fi
fl
fl
fl
fl
fi
fi
fl
fl
fl
fl
fl
 • Pre-Purchase Information Search: Consumers gather information about available options. Sources include
personal experiences, word-of-mouth, online reviews, and advertising.
• Evaluation of Purchase Alternatives: Consumers compare different options based on attributes like price,
quality, and brand reputation. Involves weighing the perceived bene ts and drawbacks of each alternative.
• Decision Rules: In uence how consumers make choices.Factors include:
• Decision Rules and Marketing Strategy: Companies use various tactics to in uence consumer
decisions.
• Incomplete Information and Non-comparable Alternatives: Consumers may struggle to evaluate
options lacking suf cient information or those with different attributes.
• Sees Value/Willing to Pay and Commits/Plans: Consumers assess perceived value and willingness to
pay before committing to a purchase.

3. Output:
• Outcome of the decision-making process. Can lead to a purchase or non-purchase decision.
• Consumers may experience satisfaction or dissatisfaction based on their decision outcomes.

4. Consumer Gifting Behavior:

• Intergroup: Gifting between individuals belonging to different social or cultural groups. Re ects social norms,
values, and relationships between groups.
• Inter-category: Gifting across different product categories. Re ects versatility in consumer preferences and gift
choices.
• Intragroup: Gifting within the same social or cultural group. Re ects social cohesion, reciprocity, and shared
values within the group.
• Interpersonal: Gifting between individuals. Re ects personal relationships, occasions, and emotional
connections.
• Intrapersonal: Gifting to oneself. Re ects self-grati cation, self-reward, or self-expression.

Various participants of Consumer buying process

• Agitator: The person who raises the idea of buying at the beginning is called Agitator.
• Consumer: The person who uses the product or services is called consumer.
• In uential: It is a person or group of persons advice greatly affect the purchasing decision.
• The owner of the money: The person who owns the money and he has absolute freedom to say "no, We can not
afford this expense.”
• The buyer: The person who buys and pays money to get the product, in the areas of commercial transactions
between companies, these are people who were checking contracts and examining the possibility of dealing with
the long-term supplier.
• Stakeholder: The person or persons who do not have any in uence on the purchase decision. But they want to
purchase to take place.

Levels of Consumer Decision Making:

• Extensive Problem Solving (EPS): Consumers spend time gathering information and forming criteria when buying
new or unfamiliar products.
• Limited Problem Solving (LPS): Consumers seek additional information to differentiate among brands they are
familiar with but have not established preferences for.
• Routine Problem Solving (RPS): Consumers make habitual purchases with minimal or no information gathering,
having already established preferences for a product or brand.

Chapter 13: Consumer and Diffusion of Innovation

1. Types of Innovations:
• Continuous: Incremental improvements to existing products or services. Often involve minor changes or
enhancements.
• Dynamically Continuous: Moderate changes to existing products or services. May require some adjustment in
consumer behavior or usage patterns.
• Discontinuous: Radical innovations that introduce entirely new products or services. Often require signi cant
changes in consumer behavior and may create entirely new markets.

2. Product Features that Affect Adoption:

• Relative Advantage: Perceived superiority of an innovation compared to existing alternatives. Higher relative
advantage increases the likelihood of adoption.

10
fl
fi
fl
fl
fi
fl
fl
fl
fl
fi
fl
fl
fi
 Thus, the tagline serves to reinforce the utilitarian aspect of attitudes by highlighting the bene ts of choosing Toyota for
transportation needs.

Ego Defensive Function: The ego defensive function of attitudes relates to their role in protecting individuals' self-esteem, self-
image, and sense of identity. People often develop attitudes towards objects, ideas, or behaviors that help maintain or enhance their
ego and self-concept. For example, consider the attitude towards a luxury car brand. Individuals may develop a positive attitude
towards luxury cars because owning such a vehicle enhances their status, prestige, and self-esteem. By associating themselves with
symbols of wealth and success, they bolster their self-image and social identity. This ego defensive aspect of attitudes serves as a
means of psychological defense against threats to one's self-esteem or social standing. In marketing, luxury brands leverage this
function by positioning their products as symbols of exclusivity, sophistication, and success, thereby appealing to consumers' ego
defensive needs and aspirations.
Example: L'Oréal's tagline "Because you're worth it"
L'Oréal's tagline "Because you're worth it" appeals to the ego defensive function of attitudes by reinforcing consumers' sense of self-
worth and con dence. The tagline suggests that using L'Oréal products enhances one's beauty and self-esteem, thereby defending
the ego against feelings of inadequacy or insecurity. By associating the brand with feelings of worthiness, L'Oréal creates a positive
emotional connection with consumers, who perceive using their products as a means of self-care and empowerment. Thus, the
tagline serves to bolster individuals' self-esteem and justify their choice of L'Oréal products, aligning with the ego defensive function
of attitudes.
Example: Dove's tagline "Real beauty, real care"
Dove's tagline "Real beauty, real care" appeals to the ego defensive function of attitudes by promoting a positive self-image and
self-care. The tagline suggests that using Dove products enhances individuals' natural beauty and promotes self-con dence. By
associating the brand with authenticity and care, Dove creates a strong emotional connection with consumers who value self-
acceptance and personal well-being. Thus, the tagline serves to bolster individuals' self-esteem and justify their choice of Dove
products, aligning with the ego defensive function of attitudes.

Value Expressive Function: The value expressive function of attitudes involves the expression of individuals' values, beliefs, and
identities through their attitudes towards objects, ideas, or behaviors. People develop attitudes towards products or brands that
re ect their personal values, lifestyle choices, and social identity. For example, consider the attitude towards eco-friendly products.
Individuals may develop a positive attitude towards environmentally sustainable products because they align with their values of
environmental conservation, social responsibility, and ethical consumption. By choosing eco-friendly products, they express their
commitment to sustainability and contribute to positive social change. This value expressive aspect of attitudes serves as a means of
self-expression and identity formation, allowing individuals to signal their values and aspirations to others. In marketing, brands can
appeal to this function by promoting their products as embodying speci c values or ideals that resonate with consumers' identities
and lifestyles.
Example: Nike's tagline "Just do it"
Nike's tagline "Just do it" embodies the value expressive function of attitudes by re ecting the core values of determination and
perseverance. The tagline encourages individuals to embrace a mindset of action and resilience, aligning with Nike's brand identity
as a symbol of athletic excellence and achievement. By associating the brand with the value of "just doing it," Nike creates a strong
emotional connection with consumers who identify with the brand's ethos of pushing boundaries and overcoming obstacles. Thus,
the tagline serves to express individuals' values of determination and ambition, fostering a sense of alignment and connection with
the Nike brand.

Knowledge Function: The knowledge function of attitudes pertains to their role in organizing and structuring individuals'
knowledge and beliefs about objects, ideas, or behaviors. Attitudes serve as cognitive frameworks that help individuals make sense
of their environment and make informed decisions. For example, consider the attitude towards a healthcare product. People may
develop a positive attitude towards a healthcare product because they perceive it as safe, effective, and trustworthy based on their
knowledge and past experiences. By relying on this attitude, they feel con dent in using the product to address their health needs
and concerns. This knowledge function of attitudes provides individuals with a sense of certainty, predictability, and control over
their choices and behaviors. In marketing, emphasizing the scienti c evidence, testimonials, and endorsements can enhance
consumers' perceptions of a product's reliability and ef cacy, reinforcing their positive attitudes towards it.
Example: Apple's tagline "Think different"
Apple's tagline "Think different" re ects the knowledge function of attitudes by encouraging individuals to challenge conventional
thinking and embrace innovation. The tagline suggests that using Apple products is not just about technology but also about
adopting a unique and creative mindset. By associating the brand with the value of thinking differently, Apple positions itself as a
leader in innovation and originality. The tagline serves to shape individuals' attitudes towards Apple products by promoting a
cognitive framework that values creativity and unconventional thinking. Thus, the tagline exempli es the knowledge function by
providing consumers with a way to organize and interpret information about Apple's brand identity and values.
Example: Google's tagline "Organize the world's information and make it universally accessible and useful”
Google's tagline "Organize the world's information and make it universally accessible and useful" re ects the knowledge function of
attitudes by promoting a cognitive framework centered around information organization and accessibility. The tagline suggests that
Google's mission is not just to provide search services but also to facilitate knowledge dissemination and empowerment. By
associating the brand with the value of organizing information, Google positions itself as a trusted source of knowledge and
innovation. The tagline serves to shape individuals' attitudes towards Google by providing a clear understanding of the brand's
purpose and value proposition. Thus, the tagline exempli es the knowledge function by offering consumers a way to organize and
interpret information about Google's role in the digital landscape.

12
fl
fi
fl
fi
fi
fi
fi
fi
fl
fl
fi
fi
fi