This document provides definitions and explanations of consumer behavior from several perspectives: 1) It defines consumer behavior as how individuals make decisions to spend resources on consumption items like what, why, when, where, and how often they buy products and services. 2) Consumer behavior focuses on the process of acquiring, using and disposing of products and services. It is influenced by psychological, social, cultural and situational factors. 3) Several models of consumer behavior are described that analyze economic, psychological and social influences on consumption decisions. These include the economic model, Veblenian social psychology model, Pavlovian learning theory, and psychoanalytic theory. 4) The implications of understanding consumer behavior for marketing

1. CONSUMER BEHAVIOR
MA IN MARKETING
MANAGEMENT
AAU SCHOOL OF COMMERCE
By: Mulugeta Gebremedhin (PhD)

2. DEFINITION OF CONSUMER BEHAVIOR
 Consumer behavior is defined as the behavior of
consumers displayed in searching for, purchasing, using,
evaluating, and disposing of products and services that
they expect will satisfy their needs. (Schiffman and
Kanuk)

3. DEFINITION OF CONSUMER BEHAVIOR
(CTD…)
 Consumer behavior focuses on how individuals
make decisions to spend their available
resources (time, money, effort) on consumption
related item. That includes:
 What they buy
 Why they buy it
 When they buy it
 Where they buy it
 How often they buy it
 How often they use it
 How they evaluate it after the purchase
 The impact of such evaluation on future purchases and
 How they dispose of it.

4. WHAT IS CONSUMER BEHAVIOR?
(CTD…)
 Individuals or groups acquiring, using, and
disposing of products, services, ideas, or
experiences.
Arnould, Price, and Zinkhan

5. WHAT IS CONSUMER BEHAVIOR?
(CTD…)
Acquiring
includes:
Receiving
Finding
inheriting
Producing
purchasing
Consuming
encompasses:
Collecting
Preparing
Displaying
Storing
Wearing
Sharing
Evaluating
serving
Disposing spans:
Giving
Throwing away
Recycling and
depleting

6. WHAT IS CONSUMER BEHAVIOR?
(CTD…)
 Consumer behavior is the study of the process
involved when individuals or groups select,
purchase, use, or dispose of products, services,
ideas, or experience to satisfy needs and desires.
(Solomon, Michael R.)

7. ELEMENTS OF CONSUMER BEHAVIOR
The totality
of decisions
Whether
What
Why
How
Where
When
How much
How often
About the
consumption
Acquisition
Usage
disposition
Of an
offering
Products
Services
Time
Ideas
By decision
making units
Initiator
Influencer
Information
keeper
Decider
Purchaser
user
Over time
Days
Weeks
Months
years

8. CONCEPTUAL MODEL OF CONSUMER BEHAVIOR
The Psychological Core
•Motivation, Ability, &
Opportunity
Exposure, Attention, &
perception
Categorization &
comprehension
Attitude formation
Memory & retrieval
The Process of Making
Decisions
•Problem recognition
Information search
Judgment & decision
making
Post- decision
processes
The Consumers Culture
•Regional, ethnic & religious
influences
Social class influences
Age, gender, & family
influences
Social influences
Psychographics: values,
personality, and lifestyles.
Consumer Behavior Outcomes
Adoption of, resistance to, and
diffusion of innovations

9. MARKETING IMPLICATIONS OF CONSUMER
BEHAVIOR
1. Developing and Implementing Customer-Oriented
Strategy
 How is the market segmented?
 How profitable is each segment?
 What are the characteristics of consumers in each segment?
 Are customers satisfied with existing offerings?
 Selecting the target market
 Positioning
2. Developing Products and Services
 What Ideas Do Consumers Have for New Products?
 What Attributes Can Be Added to or Changed in an Existing
Offering?
 What Should Our Offering Be Called?
 What Should Our Package and Logo Look Like?

10. MARKETING IMPLICATIONS OF CONSUMER
BEHAVIOR (CONT’D…)
3. Making Promotion and Marketing
Communications Decisions
 What are our advertising objectives?
 What should our advertising look like?
 Where should advertising be placed?
 When should we advertise?
4. Making Pricing Decisions
 What price should be charged?
 How sensitive are consumers to price and price
changes?
5. Making Distribution Decisions
 Where are target consumers likely to shop?

11. CONSMER BEHAVIOR
MODELS

12. THE ORIGIN AND IMPORTANCE OF CONSUMER
BEHAVIOR
 Consumer behavior is regarded as a relatively a
new field of study. The concepts of consumer
behavior are borrowed from
 Psychology (the study of the individual)
 Sociology (the study of groups)
 Social psychology (the study of how individuals operate
in groups)
 Anthropology (the influence of society on the individual)
and
 Economics.
 Consumer behavior became an important field of
study with the development of the ‘marketing
concept’.

13. THE MARKETING CONCEPT
 According to the marketing concept, marketers first
need to define benefits sought by consumers in the
marketplace, followed by the drafting of marketing plans
supporting the needs of consumers.
 Assael summarized the importance of understanding
consumer behavior "Consumers determine the sales
and profits of a firm by their purchasing decisions.
As such, their motives and actions determine the
economic viability of the firm".
 To be a successful marketer, organizations need to
understand consumer needs and behavior and draft
their marketing strategies to incorporate such behavioral
needs of consumers.

14. THE MARKETING CONCEPT
 Kohli and Jaworski (MARKOR)
• Intelligence generation
• Intelligence dissemination
• Intelligence responsiveness
 Narter and Slater and (MKTOR)
 Customer orientation
 Competitor orientation
 Inter-functional coordination

15. MODELS OF CONSUMER BEHAVIOR
 It is an extremely difficult task to uncover the reasons why people buy.
 Models of human behavior provide valuable input to consumer behavior,
since they attempt to provide insights into why human beings, and
therefore consumers, rationalize purchase decisions.
 Human beings generally can be viewed from many perspectives
(economic, social, psychological, etc).
 If human beings are viewed from economic perspective, marketers may
attempt to influence them with economic incentives.
 If human beings are viewed from psychology perspective, marketer may
attempt to influence them with offers that appeal to their psyches.
 If human beings are viewed from a social theory perspective, marketers
may attempt to influence people through appeals to group norms,
references and values.
 The major models that describe human and consumer behavior are:
1. Economic model
2. The Veblenian social psychology model
3. Pavlovian model
4. Freudian psychoanalytic model
5. Bettman's information processing model
6. The Nicosia model
7. The Howard Sheth model and
8. Engel – Blackwell – Milniard model

16. THE MARSHALLIAN ECONOMIC MODEL
 According to the Marshallian economic model, individual
buyers will spend their income on goods that will offer the
greatest satisfaction, depending on their taste and the
relative prices of goods.
 In accordance with a doctrine of economic growth
developed by Smith, man is said to be motivated in all his
actions by self-interest.
 Marshall's methods and assumptions have been refined to
the Modern Utility Theory, where the economic man
maximizes his utility and does this by carefully calculating
the ''felicific'' consequences of any purchase.
 Marshall used money as the common denominator of
psychological needs, where the value of satisfying a
specific need could be equated and compared with other
needs in terms of cost.

17. MARKETING IMPLICATIONS OF ECONOMIC MODEL
 The model provides logical norms for buyers who want to be
"rational", therefore it is a normative rather than a descriptive model
of behavior.
 The consumer is not likely to employ an economic analysis for all
purchases, but is rather selective in using an economic theory
(purchase a new house or car)
 Hypotheses of the Marshallian model
1. The lower the price of a product, the greater the sales will be for
that product.
2. The lower the price of a substitute product is than that of a
specific product, the greater the sales of the substitute product
will be.
3. The sales of a product will be higher, provided it is not an inferior
product, if the real income is higher.
4. The last hypothesis states that greater volumes of sales will
follow as promotional expenditure is increased.
 Economic factors alone cannot explain all variations in the sales
and buying process and also that the fundamentals of how brand
and product preferences are formed are ignored in this theory.
 The model offers a useful frame of reference for analyzing only a
small portion of the consumer's psyche.

18. VEBLENIAN SOCIAL PSYCHOLOGY MODEL
 According to this model, man is perceived to be a "social animal",
where man conforms to norms of its larger culture and to more specific
standards of subcultures.
 This model implies that human behavior and needs are moulded by
present group memberships.
 Veblen hypothesized that, for the so-called leisure class, a great
portion of economic consumption is influenced and motivated by
prestige seeking and not on needs or satisfaction.
 Veblen placed specific emphasis on emulative factors that would
influence people when purchasing conspicuous products, for example
cars and houses or even less expensive items, such as clothes.
 The model is criticized as it is perceived to be overstated. Not all
people consider the leisure class to be a frame of reference and many
people aspire to the social class immediately above their current social
class.
 More affluent people of the society would also under-spend than
overspend on conspicuous items since they would rather "fit in"
than "stand out".

19. THE PAVLOVIAN LEARNING THEORY
 Pavlov discovered that he could induce the dog to
salivate by ringing the bell regardless of whether or not
food was offered to the dog.
 Based on his experiment, Pavlov conclude that learning
occurred due to a process of association and that a
large component of human behavior can be conditioned.
 The result of the experimental psychologists research
led to a stimulus-response model of human behaviour,
based on four central concepts, namely drive, cue,
response and reinforcement.
 According to classical conditioning, for a learning to take
place there has to be a connection between some
stimulus and a true reflex reaction (response).

20. PAVLOVIAN MODEL OF
CLASSICAL CONDITIONING
Unconditioned Stimulus
Meat paste
Conditioned Stimulus
Bell
Conditioned Stimulus
Bell
Unconditioned Response
Salivation
Conditioned Response
Salivation
After Repeated Pairings:

21. MARKETING IMPLICATIONS OF THE PAVLOVIAN
MODEL
 The model does contribute to marketing by providing insights
to the marketer concerning consumer behavior and advertising
strategy.
 An example of the usefulness of the model for the marketer
would be the introduction of a new product into a highly
competitive market through association with the existing and
well established brand name.
 The model emphasizes the repetition in advertising since a
single exposure is very likely to be a weak cue, hardly able to
sufficiently arouse the individual's consciousness to inspire the
drive as discussed in the model.
 Repetition in advertising also has two desirable effects
Repetition (or frequency of association) firstly combats
forgetting and secondly provides reinforcement since the
consumer becomes selectively exposed to advertisements of
the product after purchase.
 The model helps marketers to identify the strongest product-
related drives, for example hunger may be identified for candy
bars and status for motor vehicles.

22. PSYCHOANALYTICAL THEORY
 Sigmund Freud was an Austrian Neurologist
who became fascinated with studying
hysteria. He is known as the father of
psychoanalysis.
 Human behavior is dominated by repressed,
unconscious sexual, biological drives.
 Freud’s psychoanalytic perspective proposed
that childhood sexuality and unconscious
motivations influence personality.
 Human behavior is driven by unconscious
forces (sexual and aggressive forces).

23. THE ICEBERG ANALOGY OF CONSCIOUSNESS

24. LEVELS OF CONSCIOUSNESS
 1. Conscious mind – like the top of the iceberg,
only a small portion of our mind is accessible to
us.
 2. Preconscious mind – material that is
unconscious, but can be easily brought into
awareness. Moves back & forth easily between
conscious & unconscious.
 3. Unconscious mind – is completely outside of
our awareness (could produce anxiety if made
conscious).
 Unconscious-large below the surface area which contains
thoughts, wishes, feelings and memories, of which we are
unaware.

25. ID, EGO, SUPEREGO

26. STRUCTURE OF THE MIND (PERSONALITY)
 1. Id – “pleasure principle” unconscious impulses that
want to be gratified, without regard to potential
punishment.
 2. Ego “reality principle” – tries to satisfy id impulses
while minimizing punishment & guilt.
 3. Superego – the “moral principle” of our personality
which tells us right from wrong our conscience

27. DEFENSE MECHANISMS
 Defense mechanisms shape how our personality deals with
unpleasant emotions and thoughts.
 1. Repression: “motivated forgetting” the suppression of
unpleasant thoughts. We push unpleasant thoughts into
unconscious so that we can’t access them.
 the basic defense mechanism that banishes anxiety-
arousing thoughts, feelings, and memories from
consciousness (e.g., memories of childhood or past
marriage)
 E.g., a child who is molested, may suppress the traumatic
event so that he/she has no memory for the event.
 2. Rationalization – we justify the actions or events that
have happened.
 You steal and say, “Well, I spend a lot of money at this
store!”

28. 3. REGRESSION
 Dealing with problems by “regressing” or going
backward in terms of maturity.
 Ex: Soldiers crying for “mommy” or party behavior.
4. Displacement- you take out your anger &
frustration on a person or object not the actual target
of your anger in a negative way
 E.g., After being grilled by your boss, you go home &
yell at your partner or the dog/cat.
 Peeing on the teacher’s car.

29. 5. PROJECTION – YOU ATTRIBUTE YOUR NEGATIVE
CHARACTERISTICS TO ANOTHER PERSON.
 When people project their own faults onto others, they
generally do not deny that they themselves possess those
faults.
 E.g., Your partner tells you how selfish you are, when they
are in fact selfish.
6. Reaction Formation – acting the opposite
of how you feel.
 You do the opposite of how you feel to defend your own
doubts.
 E.g., A person who doubts his faith may act like a religious
zealot to defend his religion.

30. THE BETTMAN’S INFORMATION PROCESSING
MODEL
 The Bettman model describes the consumer as possessing a limited
capacity for processing information. The consumer rarely analyzes
the complex alternatives in decision making and apply very simple
strategy.
 When faced with a choice, the consumer rarely undertakes very
complex analyses of available alternatives. Instead, the consumer
typically employs simple decision strategies or heuristics.
 Heuristics simplifying decision rules assist the consumer in arriving
at a choice by providing a means for sidestepping the overly
overburden task of assessing all the information available about all
the alternatives.
 The model provides an analytical 'framework for understanding
consumer behavior in an environment where choice is made by
selecting between a set of alternatives.
 The model focuses on the information processing perspective by
viewing the type of information used by consumers, how the
information is evaluated and finally, how decisions are made.

32. THE NICOSIA MODEL
 The Nicosia model provides a sophisticated attempt to show the
interrelationship between attributes of the consumer, the
consumer decision-making process, the marketing
communication of an organization and feedback of the response
of the consumer to the organization.
 Schiffman & Kanuk provide a simplistic explanation of the model
by stating that it is interactive in design, where the organization
attempts to influence consumers through marketing actions
and the consumers in return influence the organization
through their purchase actions (or lack of action if products
are not purchased).
 The model consists of four different fields namely:
 Exposure of the organization’s message
 Search and evaluation
 Purchase
 feedback

35. THE HOWARD-SHETH MODEL
 The Howard-Sheth model of buying behavior presents a
sophisticated integration of the psychological and various
social and marketing influences on consumer choice, into a
coherent sequence of information processing.
 The model attempts to explain rational brand choice behavior
within the constraints of incomplete information and limited
individual capacities, and also that it provides an empirically
testable description of behavior in terms of cognitive
functioning together with its outcomes.
 The Howard-Sheth model distinguishes between three
different stages or levels of decision-making, also referred
to as levels of learning. Namely:
 Extensive problem-solving.
 Limited problem-solving.
 Routinized problem-solving.

36. Stage/level of
decision making
Amount of
information
needed prior to
purchase
Speed of decision
Extensive
problem solving
Great Slow
Limited problem
solving
Moderate Moderate
Routinized
response
behavior
Little Fast

38. THE ENGLE, BLACKWELL, MINIARD (EBM)
MODEL
 The Engel, Blackwell, Miniard model is based on
the same model as that of Engel & Blackwell, and
Engel, Kollat & Blackwell.

41. MOTIVATION
The Psychological Core
Motivation, Ability, & Opportunity (MAO)
Exposure, attention, & perception
Categorization and comprehension
Attitude formation
Memory and retrieval
Motivation
Personal relevance
Consistency with values, goals, and needs
Perceived risk
Moderate inconsistency with prior attitudes
Effects of Motivation
Goal-related behavior: High effort behavior
High effort Information processing and decision
making
Felt involvement

42. CONSUMER MOTIVATION DEFINED
 Motivation is defined as “an inner state of arousal”
directed to achieving a goal.
 A motivated consumer is energized, ready, and
willing to engage in goal-relevant activity.

43. EFFECTS OF CONSUMER MOTIVATION
 Goal – Relevant Behavior
 When motivation is high, consumers are willing to engage in goal
relevant behavior.
 Motivation not only drives behavior consistent with a goal but also
creates a willingness to expend time and energy engaging in goal
relevant behavior.
 High-Effort Information Processing and Decision Making
 When motivation to achieve a goal is high:
 consumers pay careful attention to the goal
 consumers attempt to comprehend the information presented
 Consumers critically evaluate the information and
 Consumers try to remember the information
 Felt Involvement
 Motivation evokes a psychological state in consumers called
involvement.
 Felt involvement is the psychological experience of the motivated
consumer such as interest, excitement, anxiety, passion, & engagement.

44. WHAT AFFECTS MOTIVATION?
1. Personal relevance
2. values, goals, and needs
3. Risk
4. Inconsistency with prior attitudes

45. WHAT AFFECTS MOTIVATION (CONT’D)
 Personal Relevance – A marketing stimuli will be personally
relevant when:
 It solves the consumers problem (Propecia–Hair loss treatment)
 It bears on the consumers self concept (Clothing – professional,
student, sport team)

 Marketing implication: Make an ad personally relevant to the
consumer. (Volvo: This Car Saved My Life)
 Values, Goals, and Needs
 Values are culturally held beliefs about what is good or appropriate.
E.g. education, cigar etc.
 Goals are objectives that we would like to achieve. (ACCA
certification to become a licensed auditor).
 An internal state of tension caused by disequilibrium from an
ideal/desired physical or psychological state.

46. TYPES OF NEEDS:
MASLOW’S NEED HIERARCHY

47. Physiological: Food, water, sleep, and to some extent, sex are physiological motives.
Products Health foods, medicines, sports drinks, low-cholesterol foods, and exercise equipment.
Themes Quaker Oats - “Eating oatmeal is good for your heart.”
Safety: Seeking physical safety and security, stability, familiar surroundings, and so forth are
manifestations of safety needs.
Products Smoke detectors, preventive medicines, insurance, retirement investments, and seat belts.
Themes Sleep Safe - “We’ve designed a travel alarm that just might wake you in the middle of the
night- because a fire is sending smoke into your room. You see, ours is a smoke alarm as well as an
alarm clock.”
Belongingness: These motives are reflected in a desire for love, friendship, affiliation, and group
acceptance.
Products Personal grooming, foods, entertainment, clothing, and many others.
Themes Restaurants - “When You’re Here, You’re Family.”
Esteem: Desires for status, superiority, self-respect, and prestige are examples of esteem needs. These
needs relate to the individual’s feelings of usefulness and accomplishment.
Products Fashionable clothing, furniture, liquors, hobbies, stores, cars, and many others.
Themes BMW – “The Ultimate Driving Machine.”
Self-Actualization: This involves the desire for self-fulfillment, to become all that one is capable of
becoming.
Products Education, hobbies, sports, some vacations, gourmet foods, museums.
Themes School - “Minds in Motion.”

48. AN EVALUATION OF THE NEED HIERARCHY THEORY
 Maslow’s need hierarchy is an easy and useful tool for
understanding what are the needs of the consumer and the
relevant products that can be made and appropriate marketing
strategies that can be adopted.
 Maslow’s need hierarchy has been called an “emotional
trigger” that enables marketers to promote products and
communicate with target group.
 The hierarchy can be used in two ways to create appealing
ads for the products.
 First, it can be used for segmenting the market with specific ad
appeals directed to individuals in one particular “group”.
 Ad for Pepsi which is directed toward the young generation to have a
good time with Pepsi and fast food.
 Second, the need hierarchy can be used for positioning products.
 Volvo’s ad which focuses on premium quality and safety.

49. TYPES OF NEEDS: FUNCTIONAL, SYMBOLIC, AND HEDONIC
Modeling
Support
Status
Affiliation
Belonging
Achievement
Functional
needs
Symbolic
needs
Hedonic
needs
Sensory
stimulation
Cognitive
stimulation
Novelty
Self-control
Interdependence
Safety
Order
Physical well-
being
Reinforcement
Sex
Play

50. CHARACTERISTICS OF NEEDS
 Needs are dynamic
 Needs exist in a hierarchy
 Needs can be internally or externally aroused
 Needs can conflict
 Approach – avoidance conflict
 Approach – approach conflict
 Avoidance – avoidance conflict
 Approach Object – A positive goals toward which
behavior is directed.
 Avoidance Object – A negative goal from which
behavior is directed away.

51. Approach – Avoidance Conflict
 A conflict that occurs when a given behavior or outcome is seen as both desirable
and undesirable
 When a consumer wants the taste and emotional satisfaction associated
with snack food, burger, ‘kitfo’ , ‘kurt’ etc (approach) but does not want to
gain weight (avoidance), this conflict may occur.
 the desire to eat foods that are high calories and fat.
 A consumer who likes the quality of the product but not the price.
Approach – Approach Conflict
 A conflict that occurs when a consumer must choose between tow or more
equally desirable options that fulfill different needs.
 A consumer who has to choose between two equally attractive brands.
 When a consumer has to invest his money to start up a new business or to
cover his tuition fee to pursue his academic career, this conflict may occur.
Avoidance – Avoidance Conflict
 A conflict that occurs when the consumer must choose between tow equally
undesirable options.
 Choosing between two equally undesirable products.
 When a consumer has to either incur substantial cost to maintain his old car or
whether he has to buy a new car, this conflict may occur.

52. PERCEIVED RISK
 Perceived risk is the extent to which the consumer is
uncertain about the consequences of an action of buying,
using, or disposing of an offering.
 Perceived risk will be higher when:
 Little information is available about the offering.
 The offering is new
 The offering is technologically complex.
 Substantial quality differences exist between brands.
 The consumer has little experience or confidence about the
offering

53. TYPES OF PERCEIVED RISK
1. Performance Risk- Uncertainty about whether the offering
will perform as expected.
2. Financial Risk- Risk associated with monetary investment
in an offering.
3. Physical Risk- The potential harm that an offering might
pose to ones’ safety.
4. Social Risk- The potential harm to ones social standing that
may arise from buying, using, or disposing of an offering.
5. Psychological Risk-Risk associated with the extent to
which the offering fits with the way consumers perceive
themselves.
6. Time Risk- Uncertainties over the length of time consumers
must invest in buying, using, or disposing of the offering.

54. PERSONALITY
 Personality can be defined as those inner
psychological characteristics that both determine
and reflect how a person responds to his or her
environment.
 Inner characteristics are traits, qualities, attributes,
and mannerisms that distinguish one individual
from other individuals.
 Personality influences the consumers:
 Product choice
 Response to marketers promotional efforts
 When, where, and how they use products

55. THE NATURE OF PERSONALITY
1. Personality reflect individual differences
 The inner characteristics that constitute an individuals personality are a
unique combination of factors, so that no two individuals are exactly
alike.
 Many individuals may be similar in terms of a single personality
characteristic but not in terms of others.
 If each person were different in terms of all personality traits, it would
be impossible to group consumers into segments.
 Personality helps to categorize consumers into different groups on the
basis of one or several traits.
2. Personality is consistent and enduring
 As personality tends to be consistent and enduring, it helps marketers
to explain or predict consumer behavior.
 Although consumers personality may be consistent, their consumption
behavior varies because of the various psychological, socio-cultural,
environmental, and situational factors that affect behavior.
3. Personality can change
 Personality may change by major life events (birth of a child, the death
a loved one, a divorce, or significant career change).

56. HIPPOCRATES’ (460 – 371 B.B) FOUR
PERSONALITY TYPES
 Sanguine individuals with abundance of blood:
they tended to be cheerful, optimistic, and active.
 Phlegmatic people who are sluggish, and tired
because they had too much phlegm.
 Melancholic: Sad, brooding individuals with
temperaments resulted from too much black bile.
 Choleric (easy to anger) personalities resulted
from an excess of yellow bile.

57. PERSONALITY THEORIES

58. FREUDIAN THEORY (PSYCHOANALYTIC THEORY)
Super Ego
System 2
Ego
System 3
ID
System 1
Gratification
 The psychoanalytic theory stresses the unconscious nature
of personality as a result of childhood conflicts.
 Childhood conflicts are derived from three components of
personality: the id (libido), ego, and superego.

59. MBTI (CARL JUNG, MEYER AND BRIGGS)
Extroversion (E)
An extravert’s source and
direction of energy
expression is mainly in the
external world.
How a person is energized Introversion (I)
An introvert has a source of
energy mainly in their own
internal world.
Sensing (S)
A person mainly believes
information he or she
receives directly from the
external world
How a person perceives
information & makes
decisions
Intuition (N)
A person believes mainly
information he or she receives
from the internal or
imaginative world
Thinking (T)
A person makes a decision
mainly through logic
How a person process
information
Feeling (F)
A person makes a decision
based on emotion, i.e. based on
what they feel they should do.
Judging (J)
A person organizes all of his
life events and, as a rule,
sticks to his plans.
how a person implements
the information he or she
has processed
Perceiving (P)
A person is inclined to
improvise and explore
alternative options.

60. 16 PERSONALITY TYPES
ESTJ ISTJ ENTJ INTJ
ESTP ISTP ENTP INTP
ESFJ ISFJ ENFJ INFJ
ESFP ISFP ENFP INFP

61. FREUDIAN THEORY AND “PRODUCT
PERSONALITY
 Psychoanalytical theory appeals to the buyer’s
dreams, hopes and fears.
 Consumer purchases and consumption are a
reflection and an extension of the consumer
personality.
 Consumer’s appearance and possessions –
grooming, clothing, jewelry, etc are a reflections of
the individual’s personality.

62. NEO-FREUDIAN PERSONALITY THEORY
(SOCIAL AND CULTURAL THEORY)
 Neo-Freudians believe that Social relationships are
fundamental to the formation and development of personality.
 Alfred Adler viewed human beings as seeking to attain
various rational goals called style of life and an individual’s
effort to overcome feelings of inferiority.
Karen Horney – CAD Theory
 Individuals can be classified in to three groups
1. Compliant individuals – Those who move toward others -
desire to be loved, wanted, and appreciated.
2. Aggressive individuals – Those who move against others –
desire to excel and win admiration.
3. Detached individuals – Those who move away from others –
desire for independence, self-reliance, self-sufficiency, and
freedom from obligation.

63. TRAIT THEORY
 A trait is defined as any distinguishing, relatively enduring
way in which one individual differs from another.
 Trait theorists believe that character traits account for
consistency of behavior in different situations.

64. BIG 5 PERSONALITY TYPE (OCEAN)
Talkative, energetic, and
assertive, sociable, fun-loving,
and affectionate
Extraversion Retiring, and reserved.
imaginative, independent, and
interested in variety
Openness to
Experience
practical, conforming,
and interested in
routine
organized, thorough, and full of
planning, careful, and
disciplined
Conscientiousness Disorganized, careless,
and impulsive.
sympathetic, kind, and
affectionate, soft-hearted,
trusting, and helpful
Agreeableness Ruthless, suspicious,
and uncooperative
calm, secure, and self-satisfied Neuroticism Anxious, insecure, self-
pitying, tense, and
moody.

65. P5 PERSONALITY TYPES
Extroversion Flow of energy Introversion
Detailed/Analytical
thinking
Thinking style Big picture thinking
Rational approach Decision
making
Value/people
approach
Structured working style Working style Emergent/Flexible
working style
Calm Emotional
responsiveness
Excitable

66. PERSONALITY AND UNDERSTANDING
CONSUMER DIVERSITY
 Trait personality tests measures such traits as:
 Consumer innovativeness – How receptive a
person is to new experiences.
 Consumer materialism – The degree of
consumer’s attachment to “worldly
possessions”
 Consumer ethnocentrism – consumer’s
likelihood to accept or reject foreign-made
products.

67. CONSUMER INNOVATIVENESS &
RELATED PERSONALITY TRAITS
 Consumer innovators – Those who are likely to be the first to try
new products.
 The market response of innovators is a critical indication of the
eventual success or failure of a new product.
 Personality traits that have been useful in differentiating
between consumer innovators and non innovators:
 Dogmatism
 Social character
 Need for uniqueness
 Optimum stimulation level
 Sensation seeking
 Variety novelty seeking

68. DOGMATISM
 Dogmatism is a personality trait that measures the degree
of rigidity vs openness that individuals display toward the
unfamiliar and toward information that is contrary to their
own established beliefs.
 A person who is high dogmatic (rigid or close minded)
approaches the unfamiliar defensively and with
considerable discomfort and uncertainty.
 A person who is low dogmatic (open minded) will readily
consider unfamiliar or opposite beliefs.
 Highly dogmatic consumers tend to be receptive to ads that
are endorsed by an authoritative figure involving celebrities,
experts, etc to accept the innovation.
 Low dogmatic consumers are more receptive to ads that
stress on factual differentiation, product benefits, etc.

69. SOCIAL CHARACTER
 Social character is a personality trait that ranges on a
continuum from inner directedness to other
directedness.
 Inner directedness – tend to rely on their own inner
values or standards in evaluating new products and are
likely to be consumer innovators.
 Other directed consumers tend to look to others for
direction on what is right or wrong; thus they are less likely
to be consumer innovators.
 Inner directed consumers are attracted to ads that stress
product features, and personal benefits.
 Other directed consumers prefers ads that feature social
acceptance.

70. NEED FOR UNIQUENESS (NFU)
 Conformity to others expectations or standard
is avoided.
 High NFU individuals do make unconventional
(unique) choices.
Optimum Stimulation Level (OSL)
 High OSL are linked with greater willingness to
take risks, to try new products, to be innovative,
to seek purchase related information, and to
accept new retail facilities than low OSLs.

71. SENSATION SEEKING (SS)
 SS is a trait characterized by the need for
varied, novel, and complex sensations and
experience, and the willingness to take physical
and social risks for the sake of such
experience.
 Male teenagers with high SS tend to music
metal music and engage in reckless behavior.
Variety or Novelty Seeking
 Switching brands to experience new and
possibly better alternatives.

72. COGNITIVE PERSONALITY FACTORS
Two cognitive personality traits
1. Need for cognition (NC)
2. Visualizers vs verbalizers
Need for Cognition (NC)
 Consumers high in NC are responsive to an ad
that is rich in product related information or
description.
 Consumers low in NC are attracted to the
background or peripheral aspects of the an ad,
such as an attractive model or a public celebrity.

73. VISUALIZERS VS VERBALIZERS
 Visualizers – are consumers who prefer visual
information and products that stress visual, such as
membership in a video tape club.
 Verbalizers – are consumers who prefer written or
verbal information and products, such as
membership in book clubs or audio tape clubs.

74. CONSUMER MATERIALISM AND
COMPULSIVE CONSUMPTION
 Consumption and possession traits may take three forms:
 Consumer materialism
 Fixated consumption behavior
 Consumer compulsive behavior
Consumer Materialism
 Materialism is a personality trait which distinguishes between
individuals who regard possessions as essential to their
identities and their lives and those for whom possessions are
secondary.
 Characteristics of materialistic consumers:
a) They value acquiring and showing off possessions.
b) They are self-centered and selfish
c) They seek life styles full of possessions
d) Their many possessions do not give them greater satisfaction.

75. COMPULSIVE CONSUMPTION
 Compulsive consumption is an abnormal behavior where consumers
have an addiction, in some cases out of control, and their actions may
have damaging consequences to them and to those around them.
 Examples include uncontrollable shopping, gambling, drug
addiction, alcoholism, and various food and eating disorders.
Fixated Consumption Behavior
 It is a socially acceptable behavior that consumers don’t keep their
objects or purchase secret & frequently display them.
 Characteristics
a) A deep (passionate) interest in a particular object or product
category.
b) A willingness to go to considerable lengths to secure additional
examples of the object
c) The dedication of a considerable amount of discretionary time and
money to searching out the object or product.

76. CONSUMER ETHNOCENTRISM: RESPONSE
TO FOREIGN MADE PRODUCTS
 CETSCALE – A consumer ethnocentrism scale
that measures the likelihood of consumers to
be receptive to foreign-made products and
those that are not.
 Highly ethnocentric consumers feel that it is
inappropriate to purchase foreign-made
products because of the resulting impact on
domestic economy.
 Non ethnocentric consumers evaluate foreign
made products more objectively.

77. BRAND PERSONALITY
 Consumers attribute personality like traits or characteristics
to different brands.
 Personality like images of brands reflect consumers’ vision
of the inner core of many strong brands.
 Volvo – Safety
 BMW - Performance driven
 Nike - The athlete in all of us
 Levis - Real and authentic
 Brand personality can either be functional (provides safety)
or symbolic (the athlete in all of us).
 Any brand personality, as long as it is strong and favorable,
will strengthen a brand.

78. PERSONALITY AND COLOR
Blue Commands respect
Yellow temporary, warmth, caution, novelty
Green Secure, natural, relaxed, easy going
Red Human, exciting, hot, passionate,
strong
Orange Powerful, affordable, informal
Brown relaxed, masculine, and informal
White Goodness, purity, cleanliness, delicacy,
refinement, formality
Black Sophistication, power, authority,
mystery
Gold, platinum,
silver
Regal, wealthy, stately

79. BRAND PERSONALITY AND COLOR (CONT’D)
Brand Color Association Connotation
Coca Cola Red Excitement
Wine Brands Blue Appealing to women
Fast food
Restaurant
Combination of red,
yellow, and blue
Fast service and
inexpensive food
Fine Dinning
Restaurants
Sophisticated colors –
gray, white, soft pale
etc
Feeling of fine, leisurely
service, etc

80. PERSONALITY TYPES: IMPORTANT CLASSIFICATION FOR
SALESPERSONS
1. The Thinker Style - This person places high value on logic, ideas, and
systematic inquiry. A thinker type is a direct, detail-oriented person. A
thinker type is usually neat and conservative. The salesperson should
preplan with adequate facts and supporting data.
2. The Intuitor Style - This person is a knowledgeable, future-oriented person
who likes to abstract principles from a mass of material. The salesperson
should strive to build the buyer's concepts and objectives into the
presentation.
3. The Feeler Style- This person places high value on being people
oriented and sensitive to people's needs. The feeler likes to small talk with
you, so engage in conversation and wait for this person's cue to begin your
presentation. Keep the presentation on a personal note (tea, coffee, lunch,
etc.,)
4. The Sensor Style - This person places high value on action. The key
point with a sensor is to be brief and to the point. With a sensor, verbal
communication is more effective than written communication. In presenting,
start with conclusions and results and have supporting data to use when
needed.

81. CHARACTERISTICS OF CUSTOMERS PERSONALITY: IMPORTANT
CLASSIFICATION FOR CUSTOMER SERVICE
The “Put-it-Off”er
 Characteristics: This is the type of customer who hates to make decisions. They always say, “I want
to think about it,” when it comes time to close a sale. They always seem to want to know what else
might be available to them.
 Action Plan: Point out what this customer could have to lose by not making a decision now.
Curious Prospect
 Characteristics: This is the type of customer who says, “I’m just looking right now” or “I’m not really
in the market, but just wanted to see what was available in case I ever am.”
 Action Plan: You need to find out if this customer is really just curious or a potential buyer.
Perfectionist
 Characteristics: This type of person will want to know everything about the product or service,
particularly any guarantees or warranties that are applicable.
 Action Plan: Give this customer all the information that he or she wants. Be knowledgeable about
what you are selling and able to back up any statements or claims that you make.
Optimist
 Characteristics: This customer is typically warm and friendly. He or she is anxious to hear what you
have to say about your product or service.
 Action Plan: Be enthusiastic and positive in your approach with this type of customer. Emphasize all
of the best features or points about what you are selling.
The Over-Cautious Buyer
 Characteristics: This customer is convinced that he or she should not buy now and is looking for
reasons to support this decision.
 Action Plan: Be positive and reassuring. Give this customer reasons why he or she should buy.

82. SALES PEOPLE OR SERVICE PROVIDERS PERSONALITY
TYPES
Assuring
Personality
 This type of person
can be relied on
and trusted.
 Gets the customer
to believe in him or
her.
 Gives the customer
accurate
information and
facts.
 Knows the product
or service
completely.
 Pays attention to
details that are
important to the
customer.
 Meets all deadlines
and honors all
commitments.
Engaging
Personality
 This is the type of
person that
everybody likes.
 Relates to all
different types of
customers.
 Quickly determines
a common
denominator with
other people.
 Gets the customer
talking about their
requirements.
 Is considerate of the
needs of the
customer.
 Remains loyal to
building strong
relationships with
customers.
Compelling
Personality
 This person can get
customers to act on
their
recommendations.
 Is very determined
and able to set
goals and carry
them through.
 Won’t take the first
“no” from a
customer.
 Is determined to be
successful in
providing the best
customer service
possible.
 Customers feel
confident in these
people’s ability to
meet their needs.
Dynamic
Personality
 This describes the
person who is
considered to be
very competent as
well as enthusiastic.
 Can get the
customer very
excited about doing
business together.
 Brings imagination
and creativity into
the business
relationship.
 Has many ideas to
improve customer
service.
 Likes to work with
many different
customers.
 Tends to look more
at the “big picture”
than on day-to-day
activities.

83. PERCEPTION
Definition
 Perception is the process by which an individual selects,
organizes, and interprets stimuli into a meaningful and coherent
picture of the world.
(Schiffman and Kanuk)
 Perception is the process by which incoming stimuli activate our
sensory receptors (eyes, ears, taste buds, skin, etc)
(Hoyer and MacInnis)
 Perception is a process of giving meaning to sensory stimuli.
People act and react on the basis of their perception.
(Arnould, Price, Zinkhan)

84. PERCEPTION (CONT’D)
 Perception is how we see the world around us.
 Two individuals may be exposed to the same
stimuli under the same apparent conditions, but
how each person recognizes, selects,
organizes, and interprets these stimuli is a
highly individual process based on each
person’s:
 needs
 values and
 expectations.

85. FORM PERCEPTION
Figure and Ground-the
organization of the visual
into objects (the figures)
that stand out from their
surroundings. (the ground
is the background in
which the individual
stands)
- Example of figure &
ground

86. FORM PERCEPTION
Can you see
the old
woman?
Can you see
the young
woman?

87. Do you see a vase? Or two faces?

88. WHICH LINE IS BIGGER
 Muller-Lyer Illusion
Which line is bigger?

90. FACTORS INFLUENCING PERCEPTION
Stimulus Factors
 Color and contrast
 Size
 Intensity
 Position
 Isolation
Individual Response Factors
 Interest, involvement, values, and needs
 Cognitive set (predispositions)

91. DYNAMICS OF PERCEPTION:
THE PERCEPTUAL PROCESS

92. SENSATION
 Sensation is the immediate and direct response of the
sensory organs to a stimuli.
 Stimuli is any unit of input to any of the senses (product,
brand names, ads, etc).
 Sensory receptors are the human organs (eye, ear, mouth,
nose, & skin) that receive sensory inputs.
 Sensory functions are to see, hear, smell, taste, and feel.
 Human sensitivity refers to the experience of sensation.
 Sensitivity to stimuli varies with:
 The quality of the sensory receptors
 The intensity (amount) of the stimuli to which one is
exposed.
 Energy change within the environment (differentiation of
input which is increase or decrease in the intensity of the
stimuli)

93. EXPOSURE
 Exposure is the process by which the consumer
comes in physical contact with a marketing stimuli.
 Marketing stimuli are information about products or
brands (ads, salespeople, brand symbols,
packages, signs, prices, media etc)
 As exposure is critical to consumers’ subsequent
processing of any stimulus, marketers need to
make sure that consumers are exposed to
marketing stimuli.
 Exposure begins with media selection.

94. FACTORS INFLUENCING EXPOSURE
 The position of an ad within a medium.
 Exposure is greater when a commercial is placed at
the beginning or end of a commercial break.
 Exposure to a magazine is greater when the
magazine is placed facedown.
 Product distribution and shelf placement
 The more widespread the product distribution is, the
greater the likelihood that consumers will encounter
it.
 Consumers will be exposed to products which are
featured at the end of aisle display.
 Products placed from waist to eye level get more
exposure.

95. SELECTIVE EXPOSURE
 While marketers work hard to affect consumers’
exposure, ultimately consumers control whether
exposure occurs or not.
 Consumers can actively seek certain stimuli
and avoid others.
 Consumer avoidance mechanisms:
 Zipping – Fast forwarding through the commercials
recorded on a VCR.
 Zapping – Use of a remote control to switch channels
during commercial breaks.

96. ATTENTION
 Attention is the process by which an individual
allocates part of his or her mental activity to a
stimulus.
 A certain amount of attention is necessary for
information to be perceived – for it to activate
our senses.
 After information has been perceived, additional
levels of attention may be paid to the
information. The additional attention allows us
to perform the higher-order processing
activities.

97. FOUR WAYS OF CAPTURING ATTENTION
1. Personally relevant
2. Pleasant
3. Surprising
4. Easy to process
Making Stimuli Personally Relevant
 Messages tend to be personally relevant when they:
1. Appeal to consumers needs, values, and goals.
2. Show sources similar to the target audience
3. Use dramas
4. Use rhetorical questions
“How would you like to win a million dollars?”

98. MAKING STIMULI PLEASANT
1. Using attractive models
2. Using music
3. Using humor
Making Stimuli Surprising
1. Using novelty – Consumers notice any
stimulus that is new or unique as it stands out
relative to other stimuli.
2. Using unexpectedness

99. MAKING STIMULI EASY TO PROCESS
1. Prominent stimuli
 Prominent stimuli stand out relative to the environment because of
their intensity.
 What enhances prominence?
 The size or the length of the stimulus can affect its prominence.
(larger or longer ads, full page ads, etc).
 Things moving tend to be prominent.
 Loud sounds enhance prominence.
2. Concreteness
 Stimuli are easy to process if they are concrete as opposed to
abstract.
 Concreteness is the extent to which we can imagine the brand.
3. Contrasting stimuli
 Color ad in a newspaper is more likely to capture attention because
everything around is black and white.
 Wine makers start using blue bottles as they stand out from the
traditional amber or green color.
4. The amount of competing information
 Stimuli are easy to process when few things surround them to
compete for your attention.

100. THE ABSOLUTE THRESHOLD
 It is the lowest level at which
an individual can experience a
sensation.
 It is the lowest level of input to
be detected by the various
sensory receptors.
 It is the point at which a
person can detect the
difference between some thing
and nothing
Sense
Modality
Detection Threshold
Light A candle flame seen at 30
miles on a dark clear night.
Sound The tick of a watch under
quiet conditions at 20 feet.
Taste One teaspoon of sugar in two
gallons of water.
Smell One drop of perfume diffused
into the entire volume of
three-room apartment.
Touch The wing of a bee falling on
your back from a distance of
one centimeter.

101. SENSORY ADAPTATION
 Getting used to certain sensations and becoming
accommodated to certain level of stimulation (constant
stimulation).
 As exposure to the stimulus increases, people notice less.
The problem of sensory adaptation
 Ads no longer provide sensory inputs to be noted.
 Solution
 Change ad campaigns regularly (Pepsi & Coke ads)
 increase sensory input (Full page ad, buy all ad space)
 Decrease sensory input (Print ads include lot of empty space to
accentuate the brand name & TV ads use silence to generate
attention)
 Seek unusual or novel inputs (Fragrance sample in magazine
ads )

102. DIFFERENTIAL THRESHOLD/J.N.D/
WEBER’S LAW
 The minimal difference that can be detected between two
similar stimuli.
 The j.n.d. (just noticeable difference) between two stimuli
was not an absolute amount, but an amount relative to the
intensity of the first stimulus.
 Weber’s law states that the stronger the initial stimulus, the
greater the additional intensity needed for the second
stimulus to be perceived as different.
 An additional level of stimulus equivalent to the j.n.d. must
be added for the majority of people to perceive a difference
between the resulting stimulus and the initial stimulus.

103. J.N.D (CONT’D)
Pricing Decisions
 If the price of 1 gram of gold goes up by Birr 1,
consumers may not notice the increase as the
increment would fall below the j.n.d.
 A 1 Birr increase on the price of gasoline per liter
would be easily noticed as it falls above the j.n.d.

104. J.N.D (CONT’D)
 Product quality reduction that fall below the j.n.d.
wouldn’t be perceived by consumers which makes
it a waste from marketers point of view.
 Making product improvement just equal to j.n.d. is
the most efficient marketing decision.

105. MARKETING APPLICATION
OF THE J.N.D.
1. Negative Changes
 Reduction in product size, quantity, and quality.
 Price increase.
 Negative Changes shall not be noticeable to the
public. They shall remain below the j.n.d.
2. Positive Changes
 Product improvement (increase in product size,
quality)
 Updated packaging
 Price reduction.
 Positive changes shall be noticeable to consumers
without being wastefully extravagant. It shall be at or
just above the j.n.d.

106. SUBLIMINAL PERCEPTION
 It is perception of stimuli without conscious
awareness.
 It is the process of perceiving stimuli that are too
weak or too brief to be consciously seen or heard.
 Perception of stimuli that are above the level of
conscious awareness are called supraliminal
perception.
 Extensive research has shown no evidence that
subliminal advertising can cause behavior changes
 Some evidence that subliminal stimuli may
influence affective reactions

107. CONSUMER LEARNING
Definition
 Learning is a change in behavior occurring as a result of past
experience.
(Henry Assael)
 The term learning encompasses the total range of learning,
from simple, reflexive responses to the learning of abstract
concepts and complex problem solving.
(Schiffman and Kanuk)
 As consumers gain experience in purchasing and consuming
products, they learn not only what brands they like and do not
like, but also the features they like most in particular brands.
 Consumers adjust their future behavior based on past
experience.

108. DEFINITION OF LEARNING (CONT’D…)
 Learning is any change in the content or organization of
long term memory and/or behavior.
 Information processing is a key concept in the learning
process.
 Information processing is a series of activities by which
stimuli are perceived, transformed into information, and
stored.
 The four activities in the series are:
1. Exposure
2. Attention
3. Interpretation
4. Memory
 Learning is the term used to describe the process by which
memory and behavior are changed as a result of conscious
and non-conscious information processing.
(Hawkins, Best, and Coney)

109. CONSUMER BEHAVIOR – A LEARNED BEHAVIOR
Culture
Subculture
Social class
Schools
Church
Family
Friends
Personal experience
Advertising
Learning
Values
Attitudes
Tastes, preferences
Feelings
Symbolic meanings
Behaviors
Purchase
And use
Behaviors

110. ELEMENTS OF LEARNING THEORIES
1. Motivation – It is a spurs to learning. A consumer motivated
to buy a family car may seek information concerning the
prices, quality, and other characteristics.
2. Cues – If motives serve to stimulate learning, cues are the
stimuli that give direction to these motives. E.g. an ad for a
car, price, styling, packaging, etc serve as cues.
3. Response – How individuals react or behave to a drive or
cue constitutes response. If the auto manufacturer succeeds
in forming a favourable image of an automobile model in the
consumer’s mind, when the consumer is ready to buy, it is
likely that he or she will consider buying.
4. Reinforcement – The likelihood that a specific response will
increase in the future as a result of repeated satisfaction.

111. TWO SCHOOLS OF THOUGHT
I. The Behaviorist School
 Concerned with observing changes in responses as a
result of exposure to a stimuli.
1. Classical conditioning
 Views behavior as a result of a close association
(contiguity) between a primary stimulus and a secondary
stimulus
2. Instrumental conditioning
 Views behavior as a function of the consumer’s
assessment of the degree to which purchase behavior
leads to satisfaction which in turn leads to repeat
repurchase.
II. The Cognitive School
 Views learning as problem solving and focuses on
changes in the customer’s psychological set (consumer’s
attitudes and desired benefits) as a result of learning.
 It describes learning with a frame work of complex
decision making.

112. LEARNING SCHOOLS OF THOUGHT
Learning Theories
Behaviorist Cognitive
Classical
Conditioning
Instrumental
Conditioning

113. BEHAVIORAL LEARNING THEORIES
 Also known as stimulus-response theories because
they are based on the premise that observable responses
to specific external stimuli signal that learning has taken
place.
 When a person reacts (responds) in a predictable way to
a known stimulus, he is said to have “learned”.
 Behavioral theories are not so much concerned with the
process of learning as they are with the inputs (the
stimuli that consumers select from the environment) and
outcomes (the observable behaviors that result) of
learning.
 Behavioral theories do not focus on thought processes.
They approach the mind as a “black box”.

114. CLASSICAL CONDITIONING
 Regards all organisms (animal and human) as relatively
passive entities that could be taught certain behaviors
through repetition or “conditioning”.
 A secondary stimulus (conditioned stimulus) is paired with
a primary stimulus (unconditioned stimulus) that already
elicits a particular response.
 As a result of the pairing an association will be formed.
Eventually, the secondary stimulus will elicit the same
reaction as the primary stimulus.
 An effective ad may link a product to a stimulus that
evokes a positive feeling.
 E.g. Marlboro cowboy campaign. The cowboy is the
primary (unconditioned) stimulus and the positive feeling
the cowboy elicits is the unconditioned response.

115. CLASSICAL CONDITIONING (CONT’D)
 Consumers associate Marlboro cigarettes (conditioned
stimulus) with the cowboy (unconditioned stimulus) through:
1. Repetitive advertising
2. Contiguity (association) between the unconditioned and
conditioned stimulus (cowboy always linked to Marlboro) and
the secondary or conditioned stimulus will evoke the same
positive feeling as does the cowboy.
 Advertising a product during a holiday or exciting sport
program may result in the product itself generating an
“excitement” response.
 Pleasant cultural music played in stores may elicit a
flamboyant mood.

116. PAVLOVIAN MODEL OF
CLASSICAL CONDITIONING
Unconditioned Stimulus
Meat paste
Conditioned Stimulus
Bell
Conditioned Stimulus
Bell
Unconditioned Response
Salivation
Conditioned Response
Salivation
After Repeated Pairings:

117. ANALOGOUS MODEL OF
CLASSICAL CONDITIONING
Unconditioned Stimulus
Dinner aromas
Conditioned Stimulus
8 o’clock news
Conditioned Stimulus
8 o’clock news
Unconditioned Response
Salivation
Conditioned Response
Salivation
After Repeated Pairings:

118. APPLICATIONS OF CLASSICAL
CONDITIONING
1. Association
 Associate products with positive symbols and images.
2. Repetition
 It increases the strength of the association between a conditioned
stimulus and an unconditioned stimulus and slows the process of
forgetting.
 Three-hit theory – Three exposures to an ad are needed.
Research suggests that there is limit the amount of repetition that
will aid retention.
 Advertising wear out – Due to over-learning an individual can
become satiated with numerous exposures, and both attention
and retention will decline.
 Marketers avoid wear-out by using:
a) Cosmetic variations in the ads – use different backgrounds,
different print types, different ad spokesperson.
b) Substantive variations – change ad content across different
versions of an ad.

119. APPLICATIONS OF CLASSICAL CONDITIONING
(CONT’D….)
3. Stimulus Generalization (rub-off effect) – Making the
same response to a slightly different stimuli
 Learning depends not only on repetition but also on the
ability of individuals to generalize.
 Pavlov found out that a dog could learn to salivate not only to
the sound of a bell but also to the similar sound of jangling
keys.
 The principle of stimulus generalization is applied by
marketers to product line, form, category extensions,
licensing.
 The marketer adds related products to an already
established brand, knowing that the new product is more
likely to be adopted when it is associated with a known &
trusted brand.

120. APPLICATIONS OF CLASSICAL
CONDITIONING (CONT’D….)
4. Stimulus Discrimination
 It is the opposite of stimulus generalization and
results in the selection of a specific stimulus from
among similar stimuli.
 The consumer’s ability to discriminate among
similar stimuli is the basis of positioning strategy
which seeks to establish a unique image for a
brand in the consumer’s mind.
 Position and Product differentiation methods
include product quality, price, distribution, service,
image, etc.

121. REQUIREMENTS FOR UTILIZING
CLASSICAL CONDITIONING
1. There should be no other stimuli that could overshadow the
unconditioned stimulus. (Avoid overshadowing effect) e.g.
Cowboy portrayed on a white horse.
2. Unconditioned stimuli should have no previous associations
to other brands or product categories. (Avoid blocking
effect) e.g. A beer ad using a cowboy.
3. The unconditioned stimulus should not be overly familiar
and should be presented alone. (Avoid preexposure
effect) e.g Serawit and Mulualem’s overexposure as a
source person.
4. Classical conditioning is more effective when the
conditioned stimulus is new.

122. INSTRUMENTAL (OPERANT) CONDITIONING
 It requires the development of a link between a stimulus
and a response where the individual determines the
response that provides the greatest satisfaction.
 Like classical conditioning, instrumental conditioning
requires a link between a stimulus and a response.
However, in instrumental conditioning, stimulus that
results in the most satisfactory response is the one that is
learned.
 No previous stimulus-response association is required;
response is within the conscious control of the individual.
 In classical conditioning, the unconditioned stimulus is
already linked to a response and response if reflexive.

123. INSTRUMENTAL (OPERANT) CONDITIONING
(CONT’D)
 In B.F. Skinner’s experiment a subject was free to act in a
variety of ways. The consequences of the act (degree of
satisfaction or dissatisfaction) will influence future behavior.
 In consumer behavior terms, instrumental conditioning suggests
that consumers learn by means of a trial-and-error process in
which some purchase behaviors result in more favorable
outcomes (rewards) than other purchase behaviors.
 Behavior results in an evaluation of degree of reward or
punishment obtained from past behavior.
 Reward will increase the probability of repeating the behavior;
punishment will decrease that probability.
 A favorable experience is “instrumental” in teaching the
individual to repeat a specific behavior.

124. REINFORCEMENT- DEPENDENCE OF OUTCOME
ON LEARNERS ACTIONS
Behavior
Reward or
Punishment
Increase or decrease
probability of Response
(Repeat Behavior)
Stimulus
(Rice popcorn)
Increases probability of
response to the stimulus
(future purchase)
Desired response
(Consumption)
Reinforcement
(Pleasant taste)

125. REINFORCEMENT OF BEHAVIOR
 Skinner distinguished two types of reinforcement
(reward) that reinforce the probability that a response will
be repeated which leads to habit formation.
1. Positive Reinforcement (The Presence of Reward)
 consists of events that strengthen the likelihood of a
specific response.
 An ad that shows using a shampoo that leaves your hair
feeling silky and clean is likely to result in a repeat
purchase of the shampoo.
2 Negative Reinforcement (The Absence of Punishment)
 Unpleasant or negative outcome that also serves to
encourage a specific behavior.
 An ad that shows fear appeals - insurance, cigarette
smoking or using anti dandruff shampoo which avoids
social harassment is likely to result in a purchase.

126. EXTINCTION AND FORGETTING
Extinction
 When a learned response is no longer reinforced, it diminishes to the
point of extinction, that is, to the point at which the link between the
stimulus and the expected reward is eliminated.
 If a consumer is no longer satisfied with the product, a process of
extinction – elimination of the link between stimulus and expected
reward – takes place.
 Successful antismoking commercials will create extinction by
eliminating the link between a cigarette and the pleasure of smoking.
 Marketers can combat extinction through the deliberate enhancement
of consumer satisfaction.
Forgetting
 Forgetting occurs when the stimulus is no longer repeated or
perceived.
 If a product is not used or if its advertising is discontinued, consumers
may forget that product.
 Marketers can combat extinction through the deliberate enhancement
of consumer satisfaction.

127. MARKETING APPLICATIONS OF
INSTRUMENTAL CONDITIONING
 Product quality: Have consistent quality products so that the use of
the product to meet a consumer need is reinforced.
 Customer Satisfaction (Reinforcement)
 The objective of all marketing strategy should be to reinforce the
consumer’s purchase through product satisfaction.
 Consumers will repurchase a product when they are satisfied.
 Marketers must be certain to provide the best possible product for the
money and to avoid raising consumer expectations beyond what the
product can deliver.
 Relationship Marketing – developing a close personalized
relationship with customers – is a form of non product reinforcement.
 Use Sales Promotion to create an initial inducement to try the
product. Give ‘extra’ reinforcement (free samples, rebates, discount
coupons) for purchasing a product.

128. COGNITIVE LEARNING
 Learning based on mental activity is called cognitive learning.
 Not all learning takes place as the result of repeated
trials.
 Learning takes place as the result of consumer
thinking and problem solving.
 Sudden learning is also a reality. When confronted
with a problem, we sometimes see the solution
instantly.
 Cognitive psychology views learning as a problem-
solving process rather than as the development of
connections between stimulus and response.
 Cognitive learning theory holds that learning involves
complex mental processing of information.
 Instead of stressing the importance of repetition or the
association of a reward with a specific response,
cognitive theorists emphasize the role of motivation and
the mental process in producing a desired response.

129. PROBLEM SOLVING: UNDERSTANDING
RELATIONSHIPS
Goal Purposive
Behavior
Insight Goal
Achievement
Cognitive learning for consumers is a process of perceiving stimuli,
associating stimuli to needs, evaluating alternative brands, and assessing
whether products meet expectations.
Learning is equated to a process of complex decision making because of
the emphasis on problem solving.
While cognitive theory emphasizes the thought process involved in
consumer learning, classical and instrumental conditioning emphasize the
results based on the stimulus association.

130. VICARIOUS LEARNING, MODELING, OR
OBSERVATIONAL LEARNING
 Learning theorists have noted that a considerable amount of
learning takes place in the absence of direct reinforcement, either
positive or negative, through a process psychologists call
modeling, observational learning, or vicarious learning.
 Consumers often observe how others behave in response to
certain situations (stimuli) and the ensuing results
(reinforcement) that occur, and they imitate (model) the positively
reinforced behavior when faced with similar situations.
 Modeling is the process through which individuals learn behavior
by observing the behavior of others and the consequences of such
behavior.
 The role models are people that consumers admire because of
such traits as appearance, accomplishments, skill, and social
class.
 Advertisers use models or celebrities who match with the profile of
the target market.

131. INFORMATION PROCESSING &
MEMORY STORES
Sensory
Input Rehearsal Encoding Retrieval
Sensory
Store
Short term
Store
(working Memory
Long term
Store
Memory is the total accumulation of prior learning experience.

132. HOW CONSUMERS STORE, RETAIN, & RETRIEVE INFORMATION:
STRUCTURE OF MEMORY
 Central to information processing is memory.
 Memory is the total accumulation of prior learning
experience.
 Because information processing occurs in stages,
it is generally believed that there are sequential
“storehouses” in memory where information is
kept temporarily before further processing.
1. A sensory store
2. A short term store, and
3. A long term store

133. SENSORY STORE
 All data come to us through our senses where the image of a
sensory input lasts for just a second or two in the mind’s
sensory store. i.e., if it is not processed, it is lost immediately.
 As consumers are bombarded with stimuli they block out or
filter information that they don’t need or can’t use.
SHORT TERM STORE
 It is the stage of real memory in which information is processed
and held for just a brief period.
 Looking up a number in a telephone book, only to forget it just
before dialing.
 If information in the short-term store undergoes the process
known as rehearsal (the silent, mental repetition of information),
it is then transferred to the long-term store from 2 to 10 seconds.
 If information is not rehearsed and transferred, it is lost in about
30 seconds or less.
 The amount of information that can be held in short-term storage
is limited to about four or five items.

134. LONG-TERM STORE
 In contrast to the short-term store, where information lasts only a few
seconds, the long-term store retains information for relatively
extended periods of time.
 Information might be kept in long-term stores from few minutes to
days, weeks, or years.
Retention
 As individuals gain more knowledge about a subject, they expand
their network of relationships and search for additional information.
 This process is known as activation, which involves relating new
data to old to make the material more meaningful.
Retrieval
 It is the process by which we recover information from long storage.
 Marketers maintain that consumers tend to remember the product’s
benefits rather than its attributes, suggesting that advertising
messages are most effective when they link the products’ attributes
with the benefits that consumers seek from the product.

135. MODELS OF COGNITIVE LEARNING (CONSUMER RESPONSE PROCESS):
LIMITED AND EXTENSIVE INFORMATION PROCESSING
Sequential
Stages of
Processing
Tri-
component
model
AIDA
model
Decision
Making
Model
Innovation
Adoption
Model
Information
Processing
Model
Cognitive Attention Awareness
Knowledge
Awareness Presentation
Attention
Comprehension
Affective Interest
Desire
Evaluation Interest
Evaluation
Yielding (liking)
Retention
Conative Action Purchase
Post-purchase
valuation
Trial
Adoption
Behavior

136. INVOLVEMENT THEORY
 Purchases of minimal personal importance are called low
involvement purchases.
 Complex search-oriented purchases are considered high-
involvement purchases.
 Involvement theory developed from a stream of research called
hemispheric lateralization or split-brain theory.
 The basic premise of split-brain theory is that the right and left
hemispheres of the brain specialize in the kinds of information they
process.
 The left hemisphere is primarily responsible for cognitive activities
such as reading, speaking, and attributional information processing.
 The right hemisphere of the brain is concerned with nonverbal,
pictorial, and holistic information.
 While the left side of the brain is rational, active, and realistic; the
right side is emotional, metaphoric, impulsive, and intuitive.

137. INVOLVEMENT THEORY & MEDIA
STRATEGY
Low Involvement Medium
 TV is a low involvement medium as individuals
passively process and store right-brain (nonverbal,
pictorial) information with out active involvement.
 Passive learning occurs through repeated exposure
to a TV commercial.
High Involvement Medium
 As cognitive (verbal) information is processed by
the left side of the brain, print media (newspaper,
and magazines) and interactive media (internet)
are high involvement media.

138. CENTRAL AND PERIPHERAL ROUTE TO
PERSUASION
 This theory illustrates the concepts of extensive and limited
problem solving for high and low involvement purchase
situations.
 Consumers are more likely to carefully evaluate the merits
and weaknesses of a product when the purchase is of high
relevance.
 Consumers will engage in very limited information search
and evaluation when the purchase holds little relevance.
 For high involvement purchases, C-R-P is the most
effective marketing strategy. Focus on the quality of the
argument and message elements.
 For low involvement purchases, P-R-P is the most
effective marketing strategy. Focus on non message
elements such as drama, spokes person, or back ground
music.

139. THE ELABORATION LIKELIHOOD MODEL
(ELM)
 According to ELM, the person’s level of involvement
during message processing is a critical factor in
determining which route to persuasion is likely to be
effective.
 When involvement is high, consumers follow the
central route and base their attitudes or choices on
the message arguments.
 When involvement is low, consumers follow the
peripheral route and rely on non message elements
to form attitudes or make product choice.

140. ELM MODEL
 According to the ELM model, the attitude
formation or change process depends on the
nature of information processing that occurs in
response to a persuasive message.
 High elaboration means the receiver engages in
careful consideration, thinking, and evaluation of
the information or arguments contained in the
message.
 Low elaboration occurs when the receiver does not
engage in active information processing or thinking
but rather makes inferences about the position
being advocated in the message on the basis of
simple positive or negative cues.

141. MEASURES OF CONSUMER LEARNING:
RECOGNITION AND RECALL MEASURES
 The dual goals of consumer learning are increased market share and
brand loyal consumers.
Recognition and recall tests are conducted to determine whether:
 consumers remember seeing an ad,
 the extent to which consumers have read or see an ad,
 the extent to which consumers can recall the content of an ad,
 Consumers resulting attitudes toward the product and the brand,
and
 Consumers purchase intentions.
 Recognition tests are aided recall where the consumer is shown an ad
and asked whether he remembers seeing it and can remember any of
its salient points.
 Recall tests use unaided recall where the consumer is asked whether
he has read a specific magazine or watched a specific TV show, and if
so, can recall any ads or commercials seen, the product advertised, the
brand, and any salient points about the product.

142. BRAND LOYALTY
 Brand loyalty is the ultimate desired outcome of consumer
learning.
 Brand loyalty consists of both attitudes and behaviors
toward a brand and that both must be measured.
 Attitudinal measures are concerned with consumers
overall feelings (evaluation) about the brand and their
purchase intentions.
 Behavioral measures are based on observable
responses to promotional stimuli – repeat purchase
behavior rather than attitude toward the product or brand.

143. BRAND LOYALTY AS A FUNCTION OF RELATIVE
ATTITUDE AND PATRONAGE BEHAVIOR
High
Relative attitude
Low
Repeat Patronage
High Low
Loyalty Latent
Loyalty
Spurious
Loyalty
(Brand Habit)
No
Loyalty

144. PERSONAL VALUES, LIFESTYLES
AND PSYCHOGRAPHICS
 Values are enduring beliefs that a given behavior or
outcome is good or bad.
 Personal value is defined as “an enduring belief that a
specific mode of conduct or end-state or outcome is
desirable or good.”

145. MEASURING PERSONAL VALUES:
ROKEACH VALUE SURVEY (RVS)
Terminal value Instrumental value
A comfortable life Ambitious
An exciting life Broad-minded
A sense of accomplishment Capable
A world at pea Cheerful
Equality Courageous
Family security Forgiving
Freedom Helpful
Happiness Honest
Inner harmony Imaginative
Matured love Independent
National security Intellectual
Pleasure Logical
Salivation Loving
Self-respect Obedient
Social recognition Polite
True friendship Responsible
Wisdom Self respect

146. LIST OF VALUES (LOV)
1. Self respect
2. Warm relationship with others
3. Sense of accomplishment
4. Self fulfillment
5. Fun and enjoyment in life
6. Excitement
7. Sense of belongingness
8. Being well respected
9. Security

147. MEANS-END CHAIN ANALYSIS (MEC)
 Means-end chain analysis: A technique that helps us
understand how values link to attributes in products and
services.
 Value laddering: One way to do MEC analysis is through
determining the root values related to product attributes that
are important to consumers.

148. MEANS-END CHAIN ANALYSIS (MEC)
Product Attribute Benefit Instrumental value Terminal value
Light beer I Fewer calories I won’t gain
weight
Helps me make
healthy
I feel good about
myself
Light beer II Fewer calories,
light test
Less filling,
relaxing
Good time, fun,
friendship
Belonging

149. LIFESTYLES
 Lifestyles are consumers’ modes of living as reflected in
their activity, interests, and opinions.
 AIO: Lifestyles are defined by how people spend their time
(Activities), what they consider important in their
environment (Interest) and what they think of themselves
and the world around them (Opinions).
Activity Interest Opinion
Work Family Social
Vacation Home Culture
Shopping Food Personal relations'

150. DETERMINANTS OF LIFE STYLE

151. CONSUMER LIFESTYLE AND PRODUCT CONSTELLATIONS
 Lifestyle implies a pattern of behavior that is reflected
in (and reflects) the consumption not merely of single
product but of interrelated product clusters or product
constellations.
 Product constellations are clusters of complementary
products, specific brands, or consumption activities.
 Male professionals are defined by such products as
Rolex watch, Lacoste shirt, Atlantic magazine, French
wine, BMW.
 Product constellations aid in identifying consumer
segments.

152. PSYCHOGRAPHICS: COMBINING
VALUES, PERSONALITY, &
LIFESTYLES
 Psychographics involves the use of psychological, sociological, and
anthropological factors to determine how the market is segmented by
the propensity of groups within the market and their reason to make a
particular decision about a product.
 Psychographics is an operational technique to measure lifestyles.
 Psychographics is more comprehensive than demographic, behavioral
and socioeconomic measures.
 Demographics allow us to describe who buys our products, but
psychographics allow us to understand why they buy.

153. VALS
VALS (Values and Lifestyles Survey)
 A psychographic tool that measures demographic, value, attitude,
and lifestyle variables.
VALS2 American Segments
 Based on the consumption of 170 products, VALS2 classifies
consumers into eight major segments based on tow dimensions:
1. Resources (education, income, intelligence, etc)
2. Self-orientation (principle, status, or action orientation).
Three Types of self orientation
1. Principle-Oriented Consumers-Guided by intellectual
aspects rather than by feelings or other people’s opinion.
2. Status-Oriented Consumers – Base their views on the
actions and opinions of others and strive to win their approval
3. Action-Oriented Consumers- Desire social or physical
action, variety, activity, and risk.

154. VALS FRAMEWORK

155. EIGHT SEGMENTS OF CONSUMERS
Principle Oriented Segments
1. Believers (17%)
 are principle oriented consumers with modest
resources.
 Represent the largest of the VALS2 segments.
 Poorly educated and have deeply held beliefs about
moral codes of conduct and ethics.
 About one third are retired.
2. Fulfilleds (12%)
 Are mature, responsible, well educated, well informed,
and older.
 Happy with their families, have high incomes, and are
value oriented in their consumption practices.

156. STATUS ORIENTED SEGMENTS
3. Strivers (14%)
 Have blue collar backgrounds
 Strive to emulate people they find more successful than themselves.
4. Achievers (10%)
 Have higher resources
 Are focused on their work and families
 Tend to be successful at their jobs.
Action Oriented Segments
5. Makers (12%)
 Are relatively young and value self-sufficiency
 Not interested in material possessions
 Focus on family, work, and physical recreations
6. Experiencers (11%)
 Are young, energetic group who spend a great deal of time on
physical exercise and social activities.
 Spend in the clothing, fast food, and music categories.

157. CTD
7. Actualizers
 Have greater resource base.
 Have a great deal of self-confidence, high
incomes, and education.
 Use possessions to indicate their own
personal style, taste, & characteristics.
 Indulge themselves in any or all of the self-
orientations.
8. Strugglers
 Have the lowest incomes of the VALS2
segments.
 Focus on surviving.
 Not described by any self-orientation.

158. APPLICATIONS OF LIFESTYLE CHARACTERISTICS TO
MARKETING STRATEGIES
 Market segmentation
 Media selection
 Advertising

159. CONSUMER ATTITUDE
FORMATION AND CHANGE
 An attitude is a learned predisposition to behave in a
consistently favourable or unfavourable way with
respect to a given object.
 The Attitude Object – Object includes marketing
related concepts, such as product, brand, service, ads,
people, price, medium, etc.
 Attitudes are learned predispositions – Attitudes
are learned. Attitudes relevant to purchase a product
are formed through direct experience, word of mouth
information, exposure to mass-media.
 Attitudes have consistency – Attitudes are
relatively consistent with the behavior they reflect.
However, attitudes are not necessarily permanent;
they do change.

160. STRUCTURAL MODELS OF ATTITUDE
1. Tricomponent attitude model
2. Multiattribute attitude models
3. Trying-to-consume model
4. Attitude toward the ad model

161. TRICOMPONENT ATTITUDE MODEL

162. TRICOMPONENT ATTITUDE MODEL
1. The Cognitive Component
 The information, knowledge, belief and perception that are
acquired by a combination of direct experience with the attitude
object.
2. The Affective Component
 A consumer’s emotions or feelings about a particular product or
brand.
3. Conative Component
 The likelihood or tendency that an individual will undertake a
specific action or behave in a particular way with regard to the
attitude object.
 The conative component is treated as an expression of the
consumer’s intention to buy.
 The conative component may include the actual behavior itself.

163. MULTIATTRIBUTE ATTITUDE MODELS
(FISHBEINS’ MODEL)
 Attitude models that examine the
compositions of consumer attitudes in
terms of selected product attributes or
beliefs.
 Three types of Multiattribute attitude
models
1. The attitude-toward-object model
2. The attitude-toward-behavior model
3. Theory-of-reasoned-action (TORA) model

164. THE ATTITUDE TOWARD OBJECT MODEL
 Attitude is a function of evaluation of product-specific beliefs
and evaluation.
 The consumer’s attitude toward a product is a function of the
presence or absence and evaluation of certain product-
specific beliefs and/or attributes.
 Consumers have favorable attitudes toward those brands that
they believe have an adequate level of attributes that they
evaluate positive.
 Consumers have unfavorable attitudes toward those brands
that they feel do not have an adequate level of desired
attributes or have too many negative or undesired attributes.
THE ATTITUDE TOWARD BEHAVING MODEL
 Is the attitude toward behaving or acting with respect to an
object, rather than the attitude toward the object itself.
 It is a model that proposes that a consumer’s attitude toward a
specific behavior is a function of how strongly he or she
believes that the action will lead to a specific outcome (either
favourable or unfavorable).

165. THEORY-OF-REASONED-ACTION MODEL (THE
EXTENDED FISHBEIN MODEL)
 A comprehensive, integrative model of attitudes
which shows the interrelationships among attitudes,
intention, and behavior.
 Like the tricomponent model, the TORA model
incorporates a cognitive, affective, and the
conative component with a different pattern of
arrangement.

166. SIMPLIFIED VERSION OF TORA
MODEL
Beliefs that
Behavior leads
To certain
outcomes
Evaluation
of the
outcomes
Beliefs that
Specific
Referents think
I should or
Should not
Perform the
behavior
Motivation
To comply
With the
Specific
referents
Attitude toward
The behavior
Subjective Norm
(Normative beliefs)
Intention
Behavior

167. THEORY OF PLANNED BEHAVIOR (TPB)
 Developed by Fishbein & Ajzen
 An extension of the Theory of Reasoned Action (TRA)

168. TPB VERSUS TRA
 Adds the construct:
 Perceived Behavioral Control
 Belief about personal control in combination with belief about the
one’s ability to do what needs to be done.
 Actual Behavioral Control: have the skills and resources needed to
quit.

169. TPB CONT.
 People will perform a behavior if:
 They believe the advantages of success outweigh the
disadvantages of failure.
 They believe that other people with whom they are motivated
to comply, think they should perform the behavior.
 They have sufficient control over the factors that influence
success or ability to perform the behavior.

170. TPB
Attitude
toward the
behavior
Subjective
Norm
Intention Behavior
Perceived
Behavioral
Control

171. ATTITUDE TOWARD THE AD MODEL
 A model that proposes that a consumer forms various feelings
(affects) and judgments (cognition) as the result of exposure
to an ad, which in turn, affect the consumer’s attitude toward
the ad and attitude toward the brand.
 The consumer’s attitude toward the ad and beliefs about the
brand influence his or her attitude toward the brand.

172. ATTITUDE TOWARD THE AD MODEL
(CONT’D…)
Exposure to an Ad
Attitude toward the
Brand
Judgments about
The Ad (Cognition)
Beliefs about the
Brand
Feelings from
The Ad (Affect)
Attitude toward
The Ad

173. ATTITUDE FORMATION
ISSUES ON ATTITUDE FORMATION
1. How attitudes are learned?
2. Sources of influence on attitude formation
3. Personality factors
How attitudes are learned?
 Attitude formation – A shift from no attitude to an attitude is a result of learning.
a. Classical conditioning - Consumers purchase new products that are associated with
a favorably viewed brand name.
 Favorable attitude toward the brand name is the result of repeated satisfaction with
other products produced by the same company.
 In terms of classical conditioning, an established brand name is an unconditioned
stimulus that through past positive reinforcement resulted in a favourable brand
attitude.
 A new product, yet to be linked to the established brand, would be the conditioned
stimulus.
b. Trial – Attitudes follow the purchase and consumption of a product due to non
availability of alternatives, low involvement, or free gifts from sales promotion.
c. When consumers seek to solve a problem or satisfy a need; Information
exposure, knowledge, and beliefs about a product or service will be the basis to form
an attitude, positive or negative.

174. HOW ATTITUDES ARE FORMED AND
LEARNED?
 There are important links between the learning theories and
the attitude formation process.
 Attitudes are formed through one of three related
processes.
1. Compliance- Attitudes are formed to gain reward or avoid
punishment.
 People avoid smoking cigarettes to avoid the problem of
contracting cancer.
2. Identification-Attitude is formed to allow the person to fit in,
or to be similar to others.
3. Internalization-occurs when a person is motivated to have
an objectively correct or “right” position on an issue. When
attitudes are internalized, they become part of a person’s
value system.

175. SOURCES OF INFLUENCE ON ATTITUDE
FORMATION
 Personal experience – To encourage consumers experience the
product, use coupons, samples, free gifts, etc.
 Family and friends influence
 Direct marketing
 Mass media
 Personality
The Impact of Personality on Attitude Formation
 Consumers with a high need for cognition (those who crave
information and enjoy thinking) are likely to form positive attitudes in
response to ads that are rich in product-related information.
 Consumers who are low in need for cognition are likely to form
positive attitudes in response to ads that feature an attractive model
or celebrity.

176. STRATEGIES OF ATTITUDE CHANGE
1. Changing the basic motivation function
2. Associating the product with an admired group or
event.
3. Resolving two conflicting attitudes
4. Altering components of the multiattribute model
5. Changing beliefs about competitors’ brands

177. CHANGING THE BASIC MOTIVATION FUNCTION
 The Functional Approach - An effective strategy for changing consumer
attitudes toward a product is to make particular needs prominent.
 Attitudes serve four key functions for consumers.
1. The utilitarian function
 Consumers hold certain brand attitudes because of a brand’s utility.
 One way of changing attitudes in favor of a product is by showing people
that it can serve a utilitarian purpose that they may not have considered.
2. The ego-defensive function
 Most people want to protect their self images from inner feelings of doubt
(perspiration, dandruff, etc) and want to replace their uncertainty with a
sense of security and personal confidence.
 Ads for cosmetics and personal care products develop a favorable
attitude by serving the ego defensive function. (Anti perspirants, anti
dandruff shampoos, etc)
3. The value-expressive function
 Attitudes are an expression or reflection of the consumer’s general
values, lifestyle, and self concept.
 McDonalds introduction of vegetable burgers for the Indian market.
4. The knowledge function
 Many product and brand positioning are attempts to satisfy the need to
know and to improve the consumer's attitudes toward the brand by
emphasizing its advantages over competitive brands.

178. ASSOCIATING THE PRODUCT WITH A SPECIAL GROUP,
EVENT, OR CAUSE
 It is possible to alter attitudes toward 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 that they are trying to do.
 DKT Ethiopia, MIDROC Ethiopia, Sunshine Construction, etc
Resolving Two Conflicting Attitudes
 Attitude-change strategies can sometimes resolve actual or potential
conflict between two attitudes.
 if consumers can be made to see that their negative attitude toward
a product or its attributes is really not in conflict with another attitude,
they may be induced to change their evaluation of the brand (i.e.,
moving from negative to positive).

179. ALTERING COMPONENTS OF THE
MULTIATTRIBUTE MODEL
 The Multiattribute attitude models have implications for
attitude-change strategies;
1. Changing the relative evaluation of attributes
2. Changing brand Beliefs
3. Adding an attribute and
4. Changing the overall brand rating.
Changing the Relative Evaluation of Attributes
 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," that is, to persuade consumers who prefer one
version of the product (e.g., a standard "soft" contact
lens) to shift their favorable attitudes toward another
version of the product (e.g., a disposable contact lens),
and possibly vice versa.

180. CHANGING BRAND BELIEFS
Adding an Attribute:
 A cognitive strategy consists of adding an attribute.
 This can be accomplished either by adding an attribute that previously has
been ignored or one that represents an improvement or technological
innovation.
Changing the Overall Brand Rating:
 It is a cognitive-oriented strategy attempting to alter consumers’ overall
assessment of the brand directly, without attempting to improve or change
their evaluation of any single brand attitude.
 This strategy frequently relies on some form of general statement that “this
is the largest-selling brand” or “the one all others try to imitate”, etc.
 This is the most common form of advertising appeal. Advertisers constantly
are reminding consumers that their product has "more" or is "better" or
"best" in terms of some important product attribute.
CHANGING AN ATTRIBUTE

181. CHANGING BELIEFS ABOUT COMPETITORS’
BRANDS
 Another approach to attitude-change strategy
involves changing consumer beliefs about the
attributes of competitive brands or product
categories.
 This strategy must be used with caution.
Comparative ad shall convey reliable information, it
works better for newly introduced products, for
market followers than leaders, where consumers in
the market have low degree of brand loyalty.

182. THE ELM MODEL
 A model that illustrates how consumers process
information in high and low involvement situations.
 A theory that suggest that a person’s level of
involvement during message processing is a critical
factor in determining which route to persuasion is likely
to be effective.
 The model presents a continuum from elaborate
(central) processing to non-elaborate (peripheral)
processing.
 The degree of elaboration depends on:
a) Consumers motivation to process information and
b) Consumers ability to process information

183.  The elaboration likelihood model (ELM) proposes the view that
consumer attitudes are changed by two distinctly different “routes to
persuasion”:
1. A central Route to Persuasion
 The central route is particularly relevant to attitude change when a
consumer's motivation or ability to assess the attitude object is high;
 Attitude change occurs because consumer actively seeks out
information relevant to the attitude object itself.
 When consumers are willing to exert the effort to comprehend,
learn, or evaluate the available information about the attitude object,
learning and attitude change occur via the central route.
2. A Peripheral Route to Persuasion
 When a consumer's motivation or assessment skills are low (e.g.,
low involvement), learning and attitude change tend to occur via the
peripheral route without the consumer focusing on information
relevant to the attitude object itself.
 Attitude change often is an outcome of secondary inducements
(e.g., cents-off coupons, free samples, beautiful background
scenery, great packaging, or the encouragement of a celebrity
endorsement).
ELM (CONT’D…)

184. SCHEMATIC PRESENTATION OF CRP VS PRP
Exposure to marketing Stimuli
High involvement with product,
Message, or purchase
Strong attention focused on
central Product related features
Conscious thoughts about
Product attributes and use
Outcomes; elaborative activities
Persuasion alters product
Beliefs which influence brand
attitude & purchase intentions
Low involvement with product,
Message, or purchase
Limited attention focused on
Peripheral, non-product features
Low or non-conscious information
Processing; few or no elaborative
activities
Persuasion operates through Classical
conditioning. Affect change Attitude toward
the ad, non conscious beliefs changes
led to behavioral and attitude changes.

185. BEHAVIOR CAN PRECEDE OR FOLLOW
ATTITUDE FORMATION
 Attitude formation and attitude change has
stressed the traditional "rational" view that
consumers develop their attitudes before taking
action (e.g.,” Know what you are doing before you
do it“ or “thinking or before acting).
 The two logical and rational alternatives to this
"attitude precedes behavior" perspective are:
1. Cognitive dissonance theory and
2. Attribution theory
 each provide a different explanation as to why
behavior might precede attitude formation.

186. WHY MIGHT BEHAVIOR PRECEDE
ATTITUDE FORMATION?
Form
Attitude
Behave
(Purchase)
Form
Attitude

187. COGNITIVE DISSONANCE THEORY
 Discomfort or dissonance occurs when a consumer holds conflicting
thoughts about a belief or an attitude object.
 when consumers have made a commitment, they may begin to 'feel
cognitive dissonance when they think of the unique, positive qualities
of the brands not selected ("left behind").
Post Purchase Dissonance
 Cognitive dissonance that occurs after a purchase commitment.
 Because purchase decisions often require some amount of
compromise, post purchase dissonance is quite normal.
 Thus, in the case of post purchase dissonance, attitude change is
frequently an outcome of an action or behavior.

188. ATTRIBUTION THEORY
 Attribution theory attempts to explain how people assign
causality (e.g., blame or credit) to events and form or alter
their attitudes as an outcome of assessing their own or other
people’s behavior.
 In attribution theory, the underlying question is "Why did I do
this?" "Why did she try to get me to switch brands?"
 This process of making inferences about one's own or
another's behavior is a major component of attitude formation
and change.
 Issues in attribution theory
1. Self-perception theory
 Foot-in-the-door technique
2. Attribution toward others
3. Attribution toward things
4. How we test our attributions

189. SELF PERCEPTION THEORY
 A theory that suggests that consumers develop attitudes by reflecting
on their own behavior.
 it is useful to distinguish between internal and external attributions.
Defensive Attribution
 A theory that suggests consumers are likely to accept credit
personally for success (internal attribution) and to credit failure to
others or to outside events (external attribution).
 It is crucial that marketers offer uniformly high-quality products that
allow consumers to perceive themselves as the reason for the
success. i.e., “I am competent.”