CB Unit 2
CB Unit 2
Unit-II (10)
Psychographic Factors Affecting Consumer Behavior
What is psychographics?
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Lifestyle
• Lifestyle refers to the way consumers live and spend their time and money.
• It is determined by one`s past experiences, innate characteristics, and life situations.
• The lifestyle of a person is typically influenced by his/her needs, wants, and
motivations and also by external factors such as culture, family, reference group, and
social class.
• The lifestyle of a person involves his consumption pattern, his behavior in the
market place, practices, habits, conventional ways of doing things, allocation of
income, and reasoned actions. It reflects an individual`s attitudes, values, interests,
and views towards society.
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Life style
Life style
• Characteristics of lifestyle
♦ It is a group phenomenon i.e. It influences others in a social group.
♦ It influences all areas of one’s activities and determines the buying
behavior of a person.
♦ It implies a central life interest – A person`s main interest or
profession is influenced by his core interests e.g. Food, Fashion, Music,
etc.
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Life Style
• It is affected by the social changes in the society – A person`s standard
of living and quality of lifestyle increases with the increase in the
standards and quality of the society he/she lives in.
• Lifestyle of a consumer depends upon various factors and any change in
one of these factors leads to a change in the behavior of the consumer.
These factors are as follows:-
♦ Age ♦ Income ♦ Occupation ♦ Culture ♦ Education ♦ Social
Group
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AIO Model
AIO Segments
Activities
• Activities focus on someone's daily routine and hobbies.
• A person who rides their bicycle to work and plays sports on the
weekends likely has different purchasing patterns than an
employee who drives a car to work and watches a lot of movies.
• Club memberships, entertainment choices, vacations, and social
events can give marketers clues about a consumer's activities.
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Interests
• A person's interests reveal concepts and ideals that drive their passions.
• A mother of three may list family, cooking, crafts, and toys as interests on a survey.
• Interests may also include hobbies, affiliations, and pastimes.
• A consumer may have varied interests, such as coin collecting, model shipbuilding,
gardening, and fishing.
• By identifying the interests of a target consumer, companies can better identify
how to appeal to them.
Opinions
• Everyone has opinions, and consumers are no different.
• Marketers would like to know people's opinions about movies, public figures,
politicians, actors, and television shows.
• Marketing agencies also need to know consumers' opinions about brands,
products, and stores.
AIO aims to create a psychographic profile of a consumer, with the goal of targeting
advertising to various types of people.
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Psychographic Profile
• One traditional method of compiling a psychographic profile is through
a survey.
• Companies can also employ web analytics to find AIO characteristics.
The types of websites a person browses can lead to special offers and
bargains on all kinds of products. Someone who surfs on a baby-name
website might find banner advertisements for baby products on a
subsequent web search.
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Consumer Perception
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Perception
More than likely you said, 'A bird in the bush,'! But .... you failed
to see that the word THE is repeated twice! Look again.
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You may not see it at first, but the white spaces read the word optical,
the blue landscape reads the word illusion.
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Elements of Perception
1. Sensation
2. Absolute threshold
3. Differential threshold
4. Subliminal perception
Sensation
1. The immediate and direct response of the sensory organs to
stimuli
2. A stimulus is any unit of input to any of the senses.
3. A Sensory receptors are the human organs that receive sensory
inputs.
4. A perfectly unchanging environment provides little to no
sensation at all!
Expectation is defined as believing that something is going to happen or believing that
something should be in a certain way.
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Sensation
Examples
1. Good Night mosquito coils - Smoking away insects
2. The expectation of consumers on heat generating properties
of pain balms like Iodex or Moov
3. The stinging feel pungent odour of antiseptic lotion – Detol
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Absolute threshold
1. The absolute threshold is the lowest level at which an individual can
experience a sensation.
2. the smallest level of stimulus that can be detected
3. The point where something become noticeable to our senses.
4. The point at which a person can detect a difference between
something and nothing is that person’s absolute threshold for that
stimulus.
5. In neuroscience and psychophysics, an absolute threshold was
originally defined as the lowest level of a stimulus – light, sound,
touch, etc. – that an organism could detect.
Absolute thresholds are the minimum level of stimulus intensity needed for a stimulus to be perceived.
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Absolute Threshold -
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Differential Threshold
1. Minimal difference that can be detected between two
similar stimuli
2. The ability of a sensory system to detect changes or
differences between two stimuli
3. Also known as the just noticeable difference
(J.N.D.)
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Weber’s Law
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Weber’s Law
Discussion Question
• How might a cereal manufacturer such as Kellogg’s use the j.n.d.
for Fruit Loops in terms of:
• Product decisions
• Packaging decisions
• Advertising decisions
• Sales promotion decisions.
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Subliminal Perception
1. Stimuli that are too weak or too brief to be consciously
seen or heard may be strong enough to be perceived by
one or more receptor cells.
2. People can be stimulated below their level of conscious
awareness as well. i.e. they can perceive stimuli without
being consciously aware that they are doing so.
• Message below the threshold level.
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example
1. Baskin-Robbins isn't just famous for its ice cream -- it's famous for
having 31 flavors of it.
2. See how the end of the "B" and the beginning of the "R" in the logo
above form the number "31"?
3. The color contrast, and positioning the brand's initials just right,
expose this subliminal message just the right amount to help you
remember what makes Baskin-Robbins different from other ice
cream parlors.
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Aspects of Perception
Selection
Organization
Interpretation
Aspects of Perception
Selection
Organization
Interpretation
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Perceptual Selection
Perceptual Organization
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Grouping
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Closure
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Perceptual Interpretation
1. Stimuli are often highly ambiguous.
2. Some stimuli are weak because of such factors as poor visibility,
brief exposure, high noise level or constant fluctuations.
3. Even the stimuli that are strong tend to fluctuate dramatically
because of such factors as different angles of viewing, varying
distances, and changing levels if illumination
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Consumer imagery
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Product Positioning :
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Perceived Quality
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Price/Quality Relationship
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Perceived Risk
• The degree of uncertainty perceived by the consumer as to the
consequences (outcome) of a specific purchase decision
• Functional Risk: Is the risk that product will not perform as expected.
• Physical Risk: Is the risk to self and others that the product may pose.
• Financial Risk: Is the risk that the product will not be worth its cost.
• Psychological Risk: Is the risk that a product choice will bruise the
consumer’s ego
• Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
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Learning
• The process by which individuals acquire the purchase and
consumption knowledge and experience that they apply to future
related behavior
• It is a process, that it changes over time as new knowledge and
experiences are gained by the consumer.
• Learning involves a change in behavior
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 62
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Cues
• Stimuli that direct
motives
• Consumer reaction to a
Response drive or cue
• Increases the likelihood that a
Reinforcement response will occur in the future
as a result of a cue 63
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide
Behavioral Learning
• Classical Conditioning
• Instrumental (Operant) Conditioning
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Classical Conditioning
• A behavioral learning theory according
to which a stimulus is paired with
another stimulus that elicits a known
response that serves to produce the
same response when used alone.
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide
Figure 7-2b
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Strategic Applications of
Classical Conditioning
Basic Concepts
• Repetition • Increases the association
• Stimulus generalization between the conditioned and
unconditioned stimulus
• Stimulus discrimination
• Slows the pace of forgetting
• Advertising wear out is a
problem
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide
Strategic Applications of
Classical Conditioning
Basic Concepts
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide
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Strategic Applications of
Classical Conditioning
Basic Concepts
• Selection of a specific
• Repetition stimulus from similar stimuli
• Stimulus generalization • Opposite of stimulus
• Stimulus discrimination generalization
• This discrimination is the
basis of positioning which
looks for unique ways to fill
needs
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Instrumental Conditioning
The consumer who tries
several brands and styles
of jeans before finding a
style that fits her figure
(i.e., reinforcement) has
engaged in instrumental
learning.
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Discussion Questions
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Cognitive Learning
• The human mind processes the information it receives. Consumers process product
information by attributes, brands, comparisons between brands, or a combination of
these factors.
• Consumers with higher cognitive abilities acquire more product information and
consider more product attributes and alternatives than consumers with lesser ability.
• Information processing occurs in stages and in three sequential “storehouses” where
information is kept: the sensory, short-term, and long-term stores.
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Information Processing
•Storing information The sensory store is the mental “space” in the
human mind where sensory input lasts for just a
➢ Sensory store
second or two. If it is not processed immediately,
➢ Short-term storage it is lost.
➢ Long-term storage
The short-term store is where information is
•Rehearsal processed and held for just a brief period. If
➢ Encoding information in the short-term store undergoes the
➢ Information Retrieval process known as rehearsal, which is the silent,
mental repetition of information, it is then
•Retention transferred to the long-term store. The transfer
➢ Chunking process takes from 2 to 10 seconds. If information
➢ Retrieval is not rehearsed and transferred, it is lost in about 30
seconds or less.
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Encoding
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Hemispheric Lateralization
Hemispheric lateralization (split-brain theory)
stems from medical research done in the 1960s; its
premise is that the human brain is divided into two
distinct cerebral hemispheres that operate together,
but “specialize” in processing different types of
cognitions.
The left hemisphere is the center of human language; it is the linear side of the brain
and is primarily responsible for reading, speaking, and reasoning.
The right hemisphere of the brain is the home of spatial perception and nonverbal
concepts; it is nonlinear and the source of imagination and pleasure.
Consumer attitude
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A learned
predisposition to
behave in a
consistently
Attitude
favorable or
unfavorable manner
with respect to a
given object.
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Cognition
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide
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For example, suppose there is a graduate student who wishes to write the
GMAT exam to get admitted into a good university for his MBA. Theory-of-
Reasoned-Action Multi Attribute Model that covers each block from the above
diagram for this situation would be as follows:
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Meaning
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• “The first 1,000 people at the baseball game will receive a team cap.”
• “Sorry, the car you ordered didn’t come in from Japan on the ship that
docked yesterday.”
• “I am sorry. We cannot serve you. We are closing the restaurant because
of an electrical problem.”
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VALS Model
VALS
▪ The acronym VALS, (for "Values, Attitudes, and Lifestyles")
is psychographic segmentation.
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VALS Model
The main dimensions of the segmentation framework are primary
motivation (the horizontal dimension) and resources (the vertical
dimension).
The VALS approach is derived from a theoretical base in Maslow's
work (1954). It has since been reworked to enhance its ability to
predict consumer behavior.
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Thinkers(high-resource group)
•Plan, research, and consider before they act
•Enjoy a historical perspective
•Are financially established
•Are not influenced by what's hot
•Use technology in functional ways
•Prefer traditional intellectual pursuits
•Buy proven products.
•Rational decision-makers
Believers(low-resource group)
•Want friendly communities
•Want to know where things stand; have no tolerance for
ambiguity
•Are not looking to change society
•Find advertising a legitimate source of information
•Value constancy and stability (can appear to be loyal)
•Their lives are centered on family, church, community, and
the nation. They have modest incomes.
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They are successful work-oriented people who get their satisfaction from
their jobs and families.
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Experiencers(high-resource group)
•Want everything
•Are first in and first out of trend adoption
•Are up on the latest fashions
•See themselves as very sociable
•They are the youngest of all the segments, with a median age of 25. They
have a lot of energy, which they pour to physical exercise and social
activities. They are avid consumers, spending heavily on clothing, fast-foods,
music,
Makers(low-resource group)
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