Consumer

Behaviour

INCLUDES ONLINE BUYING TRENDS

Dinesh Kumar Formerly Associate Professor (Marketing) at Birla Institute ofManagement Technology (BIMTECH)

OXFORD UNIVERSITY PRESS * I Detailed Contents

Operating Variables 109 Buying Situations and Buying Bchaviour 116 PurchasingApproaches 110 Buying Situations 116 Situational Factors 110 Buying Centre 117 Buyers'PersonalCharacteristics III Role of B2B Brands 118 Understanding B2B Buying Bchaviour 112 Customer Satisfaction in B2B Markets 121 Individual Determinatus 112 B2B E-Marketplace 122 Organizational Determinants 113 B2B Relationships 122 Institutional Buying 115 ManagingB2B Relationships 124

5. Personality and theConsumer 135 Nature and Function of Goals 184 Introduction 136 Characteristics of Needs 184 Nature of Personality 137 Success and Failure Infiuence Goals 185 Theories of Personality 137 Maslow's Hierarchy of Needs 185 Freudian Theory of Personality 138 Marketing Applications of Neo-Freudian Theory 140 Need Hierarchy 186 Trait Theory 143 Product Design and Need Hierarchy 188 Personality and Consumer Bchaviour 145 Self-Determination Theory 191 Consumer Personality ahd Brand Motives 192 Personality 146 Arousal of Motives 193 Consumer Innovativeness 146 Components of Motivation 194 Consumer Dogmatism 147 Discovering Motives 196 Social Character 148 Motivational Dimensions 196 Cognitivc Personality Factors 150 Motivation Research 196 Materialism 150 Analytic Hierarchy Process 198 Fixation, Impulsive, and Compulsive Zaltman Metaphor Elicitation Technique 199 151 Avatar-hased Marketing 200 Consumer 152 Maximum Dijference Scaling 203 Cosmopolitanism 153 Brand Personality 154 7. Consumer Perception 211 Brand Personification 154 Introduction 213 Advertising Elements 157 Perception 214 Anthropomorphism 158 Perception and Marketing 215 Product Personality and Gender 159 Advertising and Perception 215 Product Personality and Geogmphy 162 Hedonic Consumption 216 Personality and Colour 163 Imagery in Marketing 217 Colour Differentiation 163 Sensory Marketing 220 Seif and Self-Image 164 Vision 220 One or Multiple Selves 166 Smell 221 Extended Seif 167 Touch 222 Altering the Seif 167 Taste 222 Virtual Personality 169 Sound 223 Stages of Perception 224 6. Consamer Motivation 178 Exposure 224 Introduction 180 Methods to Increase Exposure 226 Consumer Motivation 181 Attention 227 Needs, Goals, and Motives 182 Perceptual Interpretation 228 Detailed Contents *i

Perceptual Infcrencc 230 Memory Stages 281 Semiotics 230 Sensory Store 281 Perceptual Distortion 231 Storage, Retention, and Retrieval 282 Perceptual Categorization 232 Cognitive Processes 283 Retention 234 Marketing Implications of Behavioural Perception Levels 236 Learning 285 Webers Law 236 Shaping 285 Subliminal Perception 236 Habits 285 Brain Scanning 237 Repetition 286 MeasuringBrain Activity 237 Dangers of Repetition 286 Mirror Neurons 240 Stimulus Generalization 288 How Customers Think 240 Stimulus Discrimination 291 Perceptual Organization 241 Measuring Learning 292 Gestalt 241 Brand Loyalty 293 Experiential Marketing 244 Individual Characteristics 244 9 Consumer Attitudes and Change 300 Situational Characteristics 245 Introduction 302 Altering Perception: 245 Defining Attitüde 302 Customer-perceived Value 246 Nature of Attitüde 304 Customer Perception and Product Strategy 247 Functions of Attitudes 304 Perceptual Mapping 249 Applications in Marketing 305 Benefits of Perceptual Mapping 249 Models of Consumer Attitudes 305 Perceptual Mapping Methods 251 Tri-component Model of Attitudes 307 Measuring Brand Image 251 Multi-attribute Attitüde Model • 308 Theory ofReasoned Action 309 8. Consumer Learning 261 Attitüde towards the Ad 310 Introduction 263 Attitüde towards the Store 312 Consumer Learning 264 Theory ofTryingto Consume 314 Nature of Learning 264 Theory of Planned Behaviour 314 Learning Process 265 Attitüde Formation 314 Elements of Consumer Learning 266 Role ofExperience 315 GettingConsumersInvolved 267 Role of Personality 315 From Passive to Active Learning 268 Role of Society 315 Central and Peripheral Routes 270 Attitüde and Behaviour 316 Behavioural Learning 272 Changing Attitudes 317 Classical Conditioning 272 Resolving Conflicting Attitudes 326 Instrumental or Operant Conditioning 274 Altering Attitüde Components 327 Observational or Vicarious Learning 276 Changing Consumer Beließ ahout Cognitive Learning—Information Processing 278 Competitors 328

10. Family and Social Class 341 Decision-makers in the Family 346 Introduction 342 348 Role of Family 343 Reverse Socialization 349 Functions of Family 344 Children as Consumers 350 Indian Family Structures 344 Marketing to Youth 351 Changing Indian Family 345 Marketing to Couplesand Adults 352 Family Buying Behaviour in India 346 Seniors Market 355 XÜ| Detailed Contents

Family Life Cycle 3S6 Indian Core Values 388 Family Deciston-making 357 Indian Cultural and Value Dimensions 389 Social Class 360 Individual and Family 390 Indian Social Class Segments 361 Modernity Ihrougb Conformity 391 Status Consumption 363 Success and Growth 391 Brand Awareness 363 Age andYouthfulness 392 Value Orientation 364 Happiness and Adaptability 393 Measuring Social Class 364 Religion and Spirituality 393 Subjective Method 365 Rituals and Customs 394 ReputationalMethod 365 Traditions 394 Objective Method 365 Languages 396 Social Class Pröfiles 366 Symbols and Signs 397 Geodemographic Clustering of Measuring Culture 398 Markets 367 Contradictions in Indian Culture 399 Benefits of Geodemographic Clusters 367 Demographüs 399 Modernity vs Traditionalism 399 11. Culture and 375 Bling vs Spirituality 400 Introduction 377 Decency vs Obscenity 400 Meaning of Culture 377 Violence vs Compassion 400 Characteristics of Culture 378 Cross- Behaviour 402 Interaction of Culture and Consumer Strategie Decisions 402 Behaviour 379 Products 403 Hofstedes Culcural Dimensions 380 Global Influences on Indian Consumers 404 Individualism 381 Subcultural Influences 405 Power Distance 383 Country ofOrigin Effects 406 Masculinity 385 Age Subcultures 407 Uncertainty Avoidance 385 Geographie Subcultures 408 Long-term Orientation 385 Religious Subcultures 408 Values 386 Multinational Strategies 408 Terminal and Instrumental Values 386 Global Strategy 409 Schwartz's Model of Universal Human Locol Strategy 411 Values 387 Glocal Strategy 411

12. Consumer Influence and Diffusion of Diffusion Process 434 Innovation 421 Spread oflnnovations 435 Introduction 423 Product Characteristics 435 Innovation and its Sources 423 Social Characteristics 436 Needfor Innovation 424 Characteristics ofPeople 437 Importance of New Products 427 Adapter Categories 438 Types of Innovation 429 Importance of Critical Mass 440 Firm-oriented Innovation 429 Models of Innovation Diffusion 440 Market-oriented Innovation 429 Reference Groups 442 Product-oriented Innovation 430 Brand Communities 444 Service Innovation 431 Social Movements 444 Process Innovation 432 Tribes and Tribal Marketing 445 Disruptive Innovation 432 Making Brands'Cool' 445 Innovation Value Chain 433 Kitty Parties 447 Detailed Contents xiii

Aspiration Groups 448 Aida Model 471 Negative Reference Groups 448 Fogg's Behaviour Model for Persuasive Consumer Activism on the Internet 449 Design 472 Diffusion through Word of Moüth 449 Communications Strategy 473 Importance ofBuzz 449 Understanding Customers 475 Social Networking 450 Customers are People 476 Guerrilla Marketing 451 Understanding Customer Scenarios 476 Viral Marketing 451 Integrating Customer Experience 479 Role of Opinion Leaders 451 Consumer Processing and Evaluation 480 Hurdles in Diffusion 452 Message Strategy 482 Crossing the Chasm 453 Elaboration Likelibood Model 483 Consumer Influence 455 Types of Messages 484 Four Gears Model 455 Message Appeals 487 Consumers as Innovators 456 Message as Art Form 491 Media Strategy 491 13. Communications and Consumer Types of Media 491 Behaviour 465 Fragmentation of Media 492 Introduction 467 Above- and Below-the-line Marketing Communication 468 Campaigns 495 Semiotic System 468 WOM Techniques 498 Communication Models 469 Consumer Imagery and Brand Personality 500 Shannon-Weaver Model of Communications and Brand Srategy 500 Communication 469 Dealing with Negative Publicity 501

14. Consumer Research Process 515 Quantitative Research 540 Introduction 518 Quantitative Data Collection Importance of Consumer Research 518 Methods 540 Types of Consumer Research 520 Measurement Scales 541 Overview of the Consumer Research Process 523 Observation 545 Defining the Research Problem and Objectives of Surveys 546 Research 523 Experimentation 547 Developing a Research Plan 523 Modern Research 548 Searchingfor and Evaluating Secondary Data Mining 548 Data 524 Data Analytics 548 Designinga Primary Research Study 525 Real-time Experience Tracking 549 SamplingMethods 525 Advertising Analytics 550 Collecting Primary Data 527 Social Media Analysis 550 AnalysingData 528 Usesof Big Data 552 PresentingFindings 529 Limitations of Consumer Research 552 Qualitative Research 530 Discovering Hidden Needs 531 15. Consumption and Post-Purchase Depth Interviews 535 Behaviour 560 Laddering 535 Introduction 562 Focus Groups 536 Types ofPurchase Decisions 562 Projective Techniques 536 Purchase Continuum 563 Metaphor Analysis 539 Consumer Satisfaction 565 Mystery Shopping 540 Theories of Customer Satisfaction 566 J8VI Detailed Contents

Measuring Satisfaction 567 Enhancing Customer Experience 575 Satisfaction in Services—Servqual Model 567 Benefits of Consumer Loyalty 575 Kano Model 568 Types of Loyalty 577 Customer Satisfaction Index Models 569 Measuring Loyalty 578 Strategiesfor Satisfaction 570 Loyalty Strategy 583 Unhappy Customers and Decreasing Reducing Customer Effort 584 Satisfaction 571 Loyalty Programm« 586 Customer Loyalty 573 Consumer Loyalty and Profits 588 Integrated Experience across 573 E-loyalty 590

16. Online Buying Behaviour 601 Evohing Consumer Behaviour 647 Introduction 603 Era of Consumer Engagement 647 Online Shopping in India 604 Rethinking the 4Ps 649 Composition ofIndia's E-Commerce 606 Customer Engagement 649 Understanding the Online Shopper 607 Enhancing Customer Experience 652 Age and Online Buying 607 Brands Squeezed Dry 655 Online Segmentation 607 Becoming Customer-centric 655 Profile of the Online Shopper 608 Customer Engagement Value 657 Reasons for Buying Online 608 Brand Engagement 658 Reasons for Not Buying Online 609 Customer Equity Management 658 Expectations ofOnline Shoppers 610 Customer Value 660 Media Consumption 611 Customer Lifetime Value 661 Media Usage—Interactions Düringthe Customer Referral Value 662 Purchase Process 612 Building Customer Equity 664 Consumer DecisionJourney 613 Dialogue Marketing 665 Framework for Online Consumer Behaviour 615 Consumer and Environmental Characteristics 615 18. Ethics and Social Responsibility 674 Product or Service Characteristics 616 Introduction 676 Medium Characteristics 619 Ethics 677 Online Merchants 620 Pursuit ofLow Prices andEthical Digital Value Creation—Infinite Possibility 621 Considerations 679 WebEquity 623 Ethical Issues in Marketing 680 Using Social Media 626 Intended Consequences 682 Social Behaviour of Consumers 626 Unintended Consequences 683 Omnichannel Marketing 629 Ethical Consumption 686 Building Customer Loyalty 629 Factors Impeding Ethical Consumption 687 Online Communities 630 Sins ofGreenwashing 689 Data Mining and Analytics 631 Globalization and Ethics 691 Transforming the Business 633 Consumer Protection 692 Future of Online Consumer Behaviour 633 Corporate Social Responsibility—The Basis 693 Definition and Scope 694 17. Consumer Engagement and Equity 643 Legal Provisions Relating to CSR in Introduction 645 India 695

Index 703 About the author 707