PrefaceI oft en ask my students what they think consumer behaviour and what goes on in their minds when they buy products and brands. It should not be a diffi cult question since they have been consumers from the time they were born. With more than twenty years of consuming experience, they should be able to answer the question well enough.

However, more oft en than not, they struggle for an answer. ‘What do you mean what goes on in our minds when we buy Coke or coff ee? Nothing goes on in there—we just buy it when we feel like it’, they say. However that’s not true; many thoughts come into consumers’ mind as they go about choosing and buying stuff . Very oft en we are unaware of why we begin to desire objects, and we can barely answer the question what makes us visit a shop and select one brand out of the many that are displayed on a retailer’s shelf. Indeed, that is what makes the study of consumer behaviour so diffi cult yet exciting.

Th e study of consumer behaviour involves understanding the thinking of people to determine the thrill of discovering new products or a discount coupon, the joy of going out and shopping with friends, the satisfaction of owning and displaying new things. Th is path takes us to study not only psychology but also a variety of other subjects such as economics, society, family, culture, communication theories, ethics, and even anthropology. Anthropology? Yes, indeed. A case study in the book shows how a study of anthropology helped Intel design a school computer!

With such a vast canvas, consumer behaviour is like a widescreen movie in which many activities or events are going on at the same time. Th is book is a result of observing people buying a variety of products for years and questioning them about them.

ABOUT THE BOOKTh ough there are a number of books available on the subject of consumer behaviour, this book has been written considering the many new developments in this exciting fi eld. Th e era of the connected consumer has brought in tremendous change in human behaviour, and the data analysis provides unimagined tools to companies to analyse this behaviour with remarkable accuracy. In every chapter, these fi nd a mention through numerous examples or exhibits. While Chapter 3, Consumer Decision-making models, for instance, covers the online model consisting of consumer decision journey (CDJ), modern consumer behavior has been described in detail in Chapter 16 on Online Buying Behaviour.

Th is book is a leap forward from the existing books available on the subject in many ways. First, it takes into account the latest research on the subject—topics such as online consumer behaviour and use of data analytics are arguably the future of this subject. Secondly, theory can be taught better if supported with adequate exhibits and case studies. In every chapter, a large number of examples have been used to help build readers’ interest.

Th ird, the book is written from an Indian perspective. A detailed discussion on Indian market segmentation and Indian culture describes Indian traditions providing an insight into the mind of an Indian consumer as opposed to other books that may have American and European cases and examples.

PEDAGOGICAL FEATURESSeveral pedagogical innovations have been used in the book. It would be correct to assume that students like to discuss cases and examples of brands that they know of as opposed to the ones with hypothetical situations. Th erefore, real-life brands have been used and the questions are designed on them to interest and engage students. Th e large number of cases and examples will make the book invaluable for classroom teaching. Th e key features of this book are as follows:

Readable, authoritative, and comprehensive text Th e book has a style that is authoritative and easy to read. Concepts have been explained point-wise and they are supported with numerous examples, which makes it more comprehensible for students to understand.

iv Preface

Indian and global perspective Th ough the book is written in the Indian context, examples and case studies from other countries have also been included in the right measure, which add a global perspective to the book.

Th eory and practical applications Much of consumer behaviour is theory, but care has been taken to add practical orientations through real-life case studies. Readers will therefore be able to relate to the theories with actual happenings in the world.

References from the respected journals Large number of papers and books has been cited while explaining concepts for drawing on references. Th is is for students to get inspired to read more text on consumer behaviour.

Case studies Th e book encompasses 36 opening and closing case studies, discussing real-life examples. Th e applications have been developed for the specifi c purpose of illustrating concepts. Teachers are suggested to use them to enhance the learning process of the students.

Situations from real life ‘CB in Action’ boxes included in all chapters are mini research situations from real life with a ‘What would you do?’ question. Instructors can use these exercises in class and involve students in fun learning activities. Th ese will stimulate students to think of solutions to real-life problems.

Insight boxes Apart from these, chapters also encompass insight boxes, which provide global, research, and ethical issues. Th ese can be used as discussion points in the class while off ering students ideas for undertaking research.

Chapter-end exercises Concept-review questions, critical thinking questions, and a suggestive list of projects and assignments have been included to help in classroom teaching. Th ese exercises would encourage students to discuss and review concepts and, undertake projects that will help them understand various consumer behaviour situations.

ONLINE RESOURCESTh e following resources are available to support the faculty and students using this text:

For Faculty• Instructor’s manual• PowerPoint slides

For Students• Flash cards

COVERAGE AND STRUCTURETh ough the book has been specifi cally developed from an Indian perspective, it also provides a global outlook of consumer behaviour. Cases from India as well as other countries have been included to support the various concepts in all the chapters. For instance, the chapter-end case study on Grameen Bank of Bangladesh in Chapter 12 on Consumer Infl uence and Diff usion of Innovation provides a remarkable study on the way innovations spread through social movements. Similarly, Celtel’s spread in Zambia; the chapter-end case study of Chapter 17 on Consumer Engagement and Equity provides an idea to the reader about ways to create value in a competitive market through loyalty and engagement.

Th e book has been divided into six parts.

Part I, Overview of Consumer Behaviour provides an outline of the subject including evolution of consumers, consumer decision-making models, and how it is used in consumer analysis, segmentation, and strategy. A discussion on study of the Indian population and market segments is a unique feature of this section.

Th is part explains in detail nature of business-to-business (B2B) buying behaviour and its diff erence with consumer retail buying. Th is is supported with a case study on Rolls Royce highlighting B2B relationships and how sensors in machines provide continuous data to manufacturers to help provide service before a fault is reported and another showing the dark side of B2B selling behavior where pharmaceutical companies infl uence doctors to prescribe their medicines, oft en unnecessary, just to increase their sales.

vPreface

Part II, Consumer as an Individual is devoted to understanding the eff ect of personality, motivation, perception, and attitude on the buying behaviour. It provides explanation on how brands impart personality to appeal to the target audience and use a particular marketing approach to motivate consumers to purchase a certain product. Th is section uses examples on the approach used by the liquor brands such as Absolut, Smirnoff , and Bacardi to give a personality to their brands and match it with their target market to make it easier for students to understand the concepts. It includes perception and neuroscience, which show that the human brain forms impressions even before a person is aware of them. Th is section further explains how people learn to use products, eff orts made by companies to teach people to consume and understand their attitudes towards buying a product.

Part III, Infl uences on Consumer Behaviour off ers insights into the infl uence of families, class, and culture on the consump-tion behavior or purchase decisions of customers. It explains concepts using examples of Indian family, class, and culture.

Part IV, Modifying Consumer Behaviour, discusses innovations and innovative ideas/approaches companies use in manufacturing, co-creation of new ideas and products by consumers and producers. It further discusses strategies for designing marketing communications and messages to persuade consumers to try and purchase products. Th e text supports these strategies with examples such as innovation strategy of P&G and creation of brand Benetton with some of the most compelling images in advertising history.

Part V, Measuring and Analysing Consumer Behaviour elaborates discussion on the consumer research process and approaches used by companies to build long-term loyalties with customers. It includes a case study on how Tommy Hilfi ger was able to improve its sales through market research.

Part VI, Modern Consumer explains online consumer behaviour and consumer engagement in times of exploding social media usage in which the power of brands is shift ing from companies to consumers. It covers in detail online consumer behavior along with the future of shopping and omni-channel marketing. Th ough ethical insights form parts of various chapters, a chapter on ethics and social responsibility looks at these issues in detail.

I hope the book engages readers in the same way that it engaged me while writing it. Like my earlier book, Marketing Channels (OUP, 2012), I have kept the style readable and light. I hope you enjoy reading this book as well.

Any book can be improved through interaction with users. I therefore, eagerly look forward to receiving your comments and suggestions at mmindchd@gmail.com for which I will be extremely grateful.

Dinesh Kumar

AcknowledgementsMany people have helped me in writing this book and I would like to thank all of them.

I would like to thank Dr H. Chaturvedi, Director, Birla Institute of Management Technology (BIMTECH), Greater Noida who encouraged and supported me when I started writing my books. It was at BIMTECH where I worked as Associate Professor in 2009 that I started writing my fi rst book, Marketing Channels (OUP, 2012). My special thanks are due to Prof. N. N. Sharma, Associate Professor, India Centre for Public Policy (ICPP), BIMTECH who encouraged me at every step. Since I had to shift to Chandigarh aft er a stint at BIMTECH, I miss the discussions I had with him and my other colleagues.

I am grateful to all my colleagues who always had a word of encouragement for me. Special thanks are due to the Dr Babita Dosajh, Associate Professor, Amity Global Business School, Chandigarh, a trusted friend and colleague, who has always encouraged me in my work.

I would also like to thank to Mr Anmol Dar, Managing Director, Superbrands, for allowing us to reproduce ads and visuals in our book.

I am extremely grateful to my family, Punam and Karan, who have been pillars of support in all my endeavours.

Dinesh Kumar

Brief ContentsPreface iiiDetailed Contents ixList of Exhibits and Case Studies xvFeatures of the Book xviii

PART I: OVERVIEW OF CONSUMER BEHAVIOUR 1

1. Introduction to Consumer Behaviour 3 2. Consumer Analysis, Segmentation, and Strategy 27 3. Consumer Decision-making Models 63 4. Business-to-business Buying Behaviour 95

PART II: CONSUMER AS AN INDIVIDUAL 133

5. Personality and the Consumer 135 6. Consumer Motivation 178 7. Consumer Perception 211 8. Consumer Learning 261 9. Consumer Attitudes and Change 300

PART III: INFLUENCES ON CONSUMER BEHAVIOUR 339

10. Family and Social Class 34111. Culture and Consumer Behaviour 375

PART IV: MODIFYING CONSUMER BEHAVIOUR 419

12. Consumer Infl uence and Diff usion of Innovation 42113. Communications and Consumer Behaviour 465

PART V: MEASURING AND ANALYSING CONSUMER BEHAVIOUR 513

14. Consumer Research Process 51515. Consumption and Post-purchase Behaviour 560

PART VI: MODERN CONSUMER 599

16. Online Buying Behaviour 60117. Consumer Engagement and Equity 64318. Ethics and Social Responsibility 674

Index 703About the author 707

Detailed ContentsPreface iiiBrief Contents viiList of Exhibits and Case Studies xvFeatures of the Book xviii

PART I: OVERVIEW OF CONSUMER BEHAVIOUR 1

1. Introduction to Consumer Behaviour 3Introduction 5

Ubiquitous Consumer Culture 5Consumer Behaviour 6Emergence of Marketing Concept 8

Consumers and Society 10McDonaldization of Society 10Aesthetic Attitude 11Individualization and Self-expression 12Enjoyable and Pleasurable 14Customer Value and Satisfaction 15Consumption as a Basis of Existence 16Study of Irrational Behaviour 16Limitations of Consumer Psychology 17Consumer Behaviour in Economic Uncertainty 18

Consumer Behaviour in the Future 21

2. Consumer Analysis, Segmentation, and Strategy 27Introduction 29De-massifying Markets 30Market Segmentation 30

Need for Segmentation 33Bases of Segmentation 34

Geographic Segmentation 35Demographic Segmentation 36Sociocultural Segmentation 37Psychographic or Lifestyle Segmentation 38Benefi t Segmentation 40Psychological Segmentation 41Use-related Segmentation 42Hybrid Segmentation 42Clustering Techniques 44Indian Market Segmentation 48Criticism of Segmentation 51Counter-segmentation 52

Using Segmentation Eff ectively 53

Microtargeting 55Mass Customization 55

Towards a New Era 56

3. Consumer Decision-making Models 63Introduction 65

Levels of Consumer Decision-making 65Human Mind—A Black Box 66

Economic Man 68Consumer Decision-making Process 68Critique of the Economic Man 72

Analytical Models of Consumer Behaviour 72Nicosia Model 73Howard–Sheth Model 76Engel–Blackwell–Miniard Model 79Evaluation of Models 82

Consumer Decision Journey 84Prescriptive Cognitive Models 85

Th eory of Reasoned Action 85Th eory of Planned Behaviour 86

Humanistic Models 87Th eory of Trying 88Goal-directed Behaviour 89

4. Business-to-business Buying Behaviour 95Introduction 97Players in Business Market 98

Supply Chain Market 98Business User Markets 98

Characteristics of B2B Markets 99Diff erences Between B2B and B2C 101Understanding B2B Transactions 103

B2B Buying Drivers 103Types of B2B Products 105B2B Services 107

B2B Purchase Process 107B2B Segments 108

Demographics 109

x Detailed Contents

Operating Variables 109Purchasing Approaches 110Situational Factors 110Buyers’ Personal Characteristics 111

Understanding B2B Buying Behaviour 112Individual Determinants 112Organizational Determinants 113Institutional Buying 115

Buying Situations and Buying Behaviour 116Buying Situations 116Buying Centre 117

Role of B2B Brands 118Customer Satisfaction in B2B Markets 121

B2B E-Marketplace 122B2B Relationships 122

Managing B2B Relationships 124

PART II: CONSUMER AS AN INDIVIDUAL 133

5. Personality and the Consumer 135Introduction 136

Nature of Personality 137Th eories of Personality 137

Freudian Th eory of Personality 138Neo-Freudian Th eory 140Trait Th eory 143

Personality and Consumer Behaviour 145Consumer Personality and Brand Personality 146Consumer Innovativeness 146Consumer Dogmatism 147Social Character 148

Cognitive Personality Factors 150Materialism 150Fixation, Impulsive, and Compulsive Consumption 151Consumer Ethnocentrism 152Cosmopolitanism 153

Brand Personality 154Brand Personifi cation 154Advertising Elements 157Anthropomorphism 158Product Personality and Gender 159Product Personality and Geography 162Personality and Colour 163Colour Diff erentiation 163

Self and Self-Image 164One or Multiple Selves 166Extended Self 167Altering the Self 167Virtual Personality 169

6. Consumer Motivation 178Introduction 180

Consumer Motivation 181Needs, Goals, and Motives 182

Nature and Function of Goals 184Characteristics of Needs 184Success and Failure Infl uence Goals 185

Maslow’s Hierarchy of Needs 185Marketing Applications of Need Hierarchy 186Product Design and Need Hierarchy 188Self-Determination Th eory 191

Motives 192Arousal of Motives 193Components of Motivation 194

Discovering Motives 196Motivational Dimensions 196Motivation Research 196Analytic Hierarchy Process 198Zaltman Metaphor Elicitation Technique 199Avatar-based Marketing 200Maximum Diff erence Scaling 203

7. Consumer Perception 211Introduction 213Perception 214

Perception and Marketing 215Advertising and Perception 215

Hedonic Consumption 216Imagery in Marketing 217

Sensory Marketing 220Vision 220Smell 221Touch 222Taste 222Sound 223

Stages of Perception 224Exposure 224Methods to Increase Exposure 226Attention 227Perceptual Interpretation 228

xiDetailed Contents

Perceptual Inference 230Semiotics 230Perceptual Distortion 231Perceptual Categorization 232

Retention 234Perception Levels 236

Weber’s Law 236Subliminal Perception 236Brain Scanning 237Measuring Brain Activity 237Mirror Neurons 240

How Customers Th ink 240Perceptual Organization 241Gestalt Psychology 241Experiential Marketing 244Individual Characteristics 244Situational Characteristics 245

Altering Perceptions 245Customer-perceived Value 246Customer Perception and Product Strategy 247

Perceptual Mapping 249Benefi ts of Perceptual Mapping 249Perceptual Mapping Methods 251

Measuring Brand Image 251

8. Consumer Learning 261Introduction 263Consumer Learning 264

Nature of Learning 264Learning Process 265Elements of Consumer Learning 266Getting Consumers Involved 267From Passive to Active Learning 268Central and Peripheral Routes 270

Behavioural Learning 272Classical Conditioning 272Instrumental or Operant Conditioning 274Observational or Vicarious Learning 276

Cognitive Learning—Information Processing 278

Memory Stages 281Sensory Store 281Storage, Retention, and Retrieval 282Cognitive Processes 283

Marketing Implications of Behavioural Learning 285

Shaping 285Habits 285Repetition 286Dangers of Repetition 286Stimulus Generalization 288Stimulus Discrimination 291

Measuring Learning 292Brand Loyalty 293

9. Consumer Attitudes and Change 300Introduction 302Defi ning Attitude 302

Nature of Attitude 304Functions of Attitudes 304Applications in Marketing 305

Models of Consumer Attitudes 305Tri-component Model of Attitudes 307Multi-attribute Attitude Model 308Th eory of Reasoned Action 309Attitude towards the Ad 310Attitude towards the Store 312Th eory of Trying to Consume 314Th eory of Planned Behaviour 314

Attitude Formation 314Role of Experience 315Role of Personality 315Role of Society 315

Attitude and Behaviour 316Changing Attitudes 317

Resolving Confl icting Attitudes 326Altering Attitude Components 327Changing Consumer Beliefs about Competitors 328

PART III: INFLUENCES ON CONSUMER BEHAVIOUR 339

10. Family and Social Class 341Introduction 342Role of Family 343

Functions of Family 344Indian Family Structures 344Changing Indian Family 345Family Buying Behaviour in India 346

Decision-makers in the Family 346Consumer Socialization 348Reverse Socialization 349Children as Consumers 350Marketing to Youth 351Marketing to Couples and Adults 352Seniors Market 355

xii Detailed Contents

Family Life Cycle 356Family Decision-making 357

Social Class 360Indian Social Class Segments 361Status Consumption 363Brand Awareness 363Value Orientation 364Measuring Social Class 364Subjective Method 365Reputational Method 365Objective Method 365

Social Class Profi les 366Geodemographic Clustering of Markets 367Benefi ts of Geodemographic Clusters 367

11. Culture and Consumer Behaviour 375Introduction 377Meaning of Culture 377

Characteristics of Culture 378Interaction of Culture and Consumer Behaviour 379

Hofstede’s Cultural Dimensions 380Individualism 381Power Distance 383Masculinity 385Uncertainty Avoidance 385Long-term Orientation 385

Values 386Terminal and Instrumental Values 386Schwartz’s Model of Universal Human Values 387

Indian Core Values 388Indian Cultural and Value Dimensions 389

Individual and Family 390Modernity Th rough Conformity 391Success and Growth 391Age and Youthfulness 392Happiness and Adaptability 393Religion and Spirituality 393Rituals and Customs 394Traditions 394Languages 396Symbols and Signs 397

Measuring Culture 398Contradictions in Indian Culture 399

Demographics 399Modernity vs Traditionalism 399Bling vs Spirituality 400Decency vs Obscenity 400Violence vs Compassion 400

Cross-cultural Consumer Behaviour 402Strategic Decisions 402Products 403Global Infl uences on Indian Consumers 404

Subcultural Infl uences 405Country of Origin Eff ects 406Age Subcultures 407Geographic Subcultures 408Religious Subcultures 408

Multinational Strategies 408Global Strategy 409Local Strategy 411Glocal Strategy 411

PART IV: MODIFYING CONSUMER BEHAVIOUR 419

12. Consumer Infl uence and Diff usion of Innovation 421Introduction 423

Innovation and its Sources 423Need for Innovation 424Importance of New Products 427

Types of Innovation 429Firm-oriented Innovation 429Market-oriented Innovation 429Product-oriented Innovation 430Service Innovation 431Process Innovation 432Disruptive Innovation 432

Innovation Value Chain 433

Diff usion Process 434Spread of Innovations 435Product Characteristics 435Social Characteristics 436Characteristics of People 437Adopter Categories 438Importance of Critical Mass 440

Models of Innovation Diff usion 440Reference Groups 442

Brand Communities 444Social Movements 444Tribes and Tribal Marketing 445Making Brands ‘Cool’ 445Kitty Parties 447

xiiiDetailed Contents

Aspiration Groups 448Negative Reference Groups 448Consumer Activism on the Internet 449

Diff usion through Word of Mouth 449Importance of Buzz 449Social Networking 450Guerrilla Marketing 451Viral Marketing 451Role of Opinion Leaders 451

Hurdles in Diff usion 452Crossing the Chasm 453

Consumer Infl uence 455Four Gears Model 455Consumers as Innovators 456

13. Communications and Consumer Behaviour 465Introduction 467Marketing Communication 468

Semiotic System 468Communication Models 469

Shannon–Weaver Model of Communication 469

Aida Model 471Fogg’s Behaviour Model for Persuasive Design 472

Communications Strategy 473Understanding Customers 475

Customers are People 476Understanding Customer Scenarios 476Integrating Customer Experience 479Consumer Processing and Evaluation 480

Message Strategy 482Elaboration Likelihood Model 483Types of Messages 484Message Appeals 487Message as Art Form 491

Media Strategy 491Types of Media 491Fragmentation of Media 492Above- and Below-the-line Campaigns 495WOM Techniques 498

Consumer Imagery and Brand Personality 500Communications and Brand Srategy 500Dealing with Negative Publicity 501

PART V: MEASURING AND ANALYSING CONSUMER BEHAVIOUR 513

14. Consumer Research Process 515Introduction 518

Importance of Consumer Research 518Types of Consumer Research 520

Overview of the Consumer Research Process 523Defi ning the Research Problem and Objectives of Research 523Developing a Research Plan 523Searching for and Evaluating Secondary Data 524Designing a Primary Research Study 525Sampling Methods 525Collecting Primary Data 527Analysing Data 528Presenting Findings 529

Qualitative Research 530Discovering Hidden Needs 531Depth Interviews 535Laddering 535Focus Groups 536Projective Techniques 536Metaphor Analysis 539Mystery Shopping 540

Quantitative Research 540Quantitative Data Collection Methods 540Measurement Scales 541Observation 545Surveys 546Experimentation 547

Modern Research 548Data Mining 548Data Analytics 548Real-time Experience Tracking 549Advertising Analytics 550Social Media Analysis 550Uses of Big Data 552

Limitations of Consumer Research 552

15. Consumption and Post-Purchase Behaviour 560Introduction 562Types of Purchase Decisions 562

Purchase Continuum 563Consumer Satisfaction 565

Th eories of Customer Satisfaction 566

xiv Detailed Contents

PART VI: MODERN CONSUMER 599

Measuring Satisfaction 567Satisfaction in Services—Servqual Model 567Kano Model 568Customer Satisfaction Index Models 569Strategies for Satisfaction 570Unhappy Customers and Decreasing Satisfaction 571

Customer Loyalty 573Integrated Experience across Touchpoints 573

Enhancing Customer Experience 575Benefi ts of Consumer Loyalty 575Types of Loyalty 577Measuring Loyalty 578

Loyalty Strategy 583Reducing Customer Eff ort 584

Loyalty Programmes 586Consumer Loyalty and Profi ts 588E-loyalty 590

16. Online Buying Behaviour 601Introduction 603

Online Shopping in India 604Composition of India’s E-Commerce 606

Understanding the Online Shopper 607Age and Online Buying 607Online Segmentation 607Profi le of the Online Shopper 608Reasons for Buying Online 608Reasons for Not Buying Online 609Expectations of Online Shoppers 610

Media Consumption 611Media Usage—Interactions During the Purchase Process 612Consumer Decision Journey 613

Framework for Online Consumer Behaviour 615Consumer and Environmental Characteristics 615Product or Service Characteristics 616Medium Characteristics 619Online Merchants 620

Digital Value Creation—Infi nite Possibility 621Web Equity 623

Using Social Media 626Social Behaviour of Consumers 626Omnichannel Marketing 629Building Customer Loyalty 629Online Communities 630Data Mining and Analytics 631

Transforming the Business 633Future of Online Consumer Behaviour 633

17. Consumer Engagement and Equity 643Introduction 645

Evolving Consumer Behaviour 647Era of Consumer Engagement 647Rethinking the 4Ps 649Customer Engagement 649Enhancing Customer Experience 652Brands Squeezed Dry 655Becoming Customer-centric 655

Customer Engagement Value 657Brand Engagement 658Customer Equity Management 658Customer Value 660

Customer Lifetime Value 661Customer Referral Value 662

Building Customer Equity 664Dialogue Marketing 665

18. Ethics and Social Responsibility 674Introduction 676Ethics 677

Pursuit of Low Prices and Ethical Considerations 679

Ethical Issues in Marketing 680Intended Consequences 682Unintended Consequences 683

Ethical Consumption 686Factors Impeding Ethical Consumption 687Sins of Greenwashing 689

Globalization and Ethics 691Consumer Protection 692

Corporate Social Responsibility—Th e Basis 693Defi nition and Scope 694Legal Provisions Relating to CSR in India 695

Index 703About the author 707

Chapter 1Case Study: Importance of Observing Consumers 3Case Study: Advertising and Behaviour 25

Chapter 2Case Study: L’Oréal—Serving Many Segments 27Exhibit 2.1: Superbrands—Bata 32Exhibit 2.2: Geographic Segmentation by Dainik

Bhaskar 36Exhibit 2.3: Targeting Children 38Exhibit 2.4 : Status Bathroom 41Exhibit 2.5: Modifying Products for Diff erent

Segments 56Case Study: Putting Segmentation to Use 60

Chapter 3Case Study: Nudging Consumers Towards

Choices 63Exhibit 3.1: Tanishq and the Consumer Decision-

making Process 69Exhibit 3.2: Creating Need in the Market: Archies

and Acquaguard 70Exhibit 3.3: Building Brand Loyalty 74Exhibit 3.4: Apollo Hospitals 78Case Study: Why Customers Hire Milkshakes 93

Chapter 4Case Study: Rolls-Royce: Th e Long Arm of B2B

Relationships 95Exhibit 4.1: Steel Superbrands 119Exhibit 4.2: Amadeus: Building a B2B Brand 121Case Study: Dark Side of B2B Selling

Behaviour 130

Chapter 5Case Study: Woodland: Creating an Outdoors

Personality 135Exhibit 5.1: Monte Carlo: Projecting a Young

Brand 141Exhibit 5.2: Eurochamp: A Higher Calling 148Exhibit 5.3: Superbrands—Brands and

Personality 155Exhibit 5.4: How Brands Try to Extend Gender

Usage 161Case Study: Getting High 175

List of Exhibits and Case StudiesChapter 6Case Study: Handwashing—Motivating New

Habit Formation 178Exhibit 6.1: Fulfi lling Needs 182Exhibit 6.2: Creating an Image 189Exhibit 6.3: Using Emotions 199Case Study: Repositioning Brands to Match Real

Motives 208

Chapter 7Case Study: Selling a Mean Machine 211Exhibit 7.1: Barbie—Changing Perceptions 214Exhibit 7.2: Taj Hotels: More than a Luxury

Brand 223Exhibit 7.3: Umbrella Brands 233Case Study: Dilemma of Luxury Brands 257

Chapter 8Case Study: Marketing a Stone 261Exhibit 8.1: Educating Customers 267Exhibit 8.2: Good Knight’s Line Extensions 289Case Study: Private Labels—Th e Growing Trend 298

Chapter 9Case Study: Creating Brandtopias 300Exhibit 9.1: Blue Star: Th e Expert 303Exhibit 9.2: Measuring Attitudes towards Film

Stars 309Exhibit 9.3: Companies with a Cause 321Case Study: Wearing Your Attitude 333

Chapter 10Case Study: Tomorrow’s Customers Today 341Exhibit 10.1: LIC for Senior Citizens 355Case Study: Elusive Middle Class 371

Chapter 11Case Study: Creating Madeleine Objects 375Exhibit 11.1: Time out 392Exhibit 11.2: Star Network’s Strategy 403Case Study: Satisfying Needs or Encouraging

Racial Bias? 416

Chapter 12Case Study: P&G—Creativity of Edison and

Speed of Ford 421

xvi List of Exhibits and Case Studies

Case Study: Spread of Social Movements—Grameen Bank and BRAC 462

Chapter 13Case Study: Nokia’s Communication Strategy 465Exhibit 13.1: Communication Strategy of Axe 477Exhibit 13.2: Message Appeals According to

Ogilvy 487Exhibit 13.3: Cadbury’s—Handling Negative

Publicity 502Case Study: Making of Brand Benetton 508

Chapter 14Case Study: Tommy Hilfi ger—Using Market

Research for Higher Margins 515Exhibit14.1: Using Ethnographic Research—

A PC for Students and Teachers 534Case Study: Future of Market Research 557

Chapter 15Case Study: Loyalty Beyond Reason 560Exhibit 15.1: LIC Off ers Integrated Experiences 574Case Study: Loyalty or Profi ts? 595

Chapter 16Case Study: Is Traditional Marketing Dead? 601Exhibit 16.1: Adding Tangibility to Online Trades 618Case Study: How Online Behaviour Changes

Everything 639

Chapter 17Case Study: Future of Shopping 643Case Study: Optimizing Customer Equity at

Celtel 670

Chapter 18Case Study: Hunger Games 674Case Study: Rana Plaza Disaster 700

Features of the Book

Figures/Images

Numerous marketing communications along with their explanations are

interspersed in the text to illustrate approaches used by marketers.

FIG. 3.11 Consumer decision funnel

Then

Awareness

Familiarity

Consideration

Purchase

Loyalty

FIG. 10.1 Children use pester power to

FIG. 3.11

FIG. 13.4 Are customers creatures meant for stucking on magnets?

Boxed Exhibits

Interesting exhibits as well as Marketing Insights, Global Insights, Ethical Insights, and CB in Action have

been included in the chapters to help students understand various marketing

strategies used by companies.

Apple Steve Jobs hired set up the Apple industrinotoriously obsessed withcompany’s products stan

Many companies have built their reputation and rev-enues based on better design and have captured the hearts of consumers. Some of these are described here.

GLOBAL INSIGHTDesign, Aesthetics, and Products

notoriously obsessduc

hearts of consumers Some of these are described

impulses. Consumers aring green products—attemhave been quite meaning

Negative perceptions Cperceptions about green products such as Toyota

Concerns about environment destruction are on the rise all over the world, including India. All types of organizations are conducting green campaigns. School children are taught to be environmentally aware. Consumers are exhorted to turn greener. It is hardly surprising then that people are becoming more aware

RESEARCH INSIGHTLearning to Consume Green Products

a e bee qu te

erceaboch

o ga at o s a e co duct g g ee ca pa g s Sc oo

to the pressures implied images become implicaanorexia and bulimia; aalcohol increases among

Advertising loves women. They are used in ads not only to catch the viewer’s attention but also to personify brands by beautiful women. These ads, called self-identity image ads, portray an image

ETHICAL INSIGHTAdvertisements and the Self-perception of Women

anorexia and balcohol increas

personify brands by beautiful women. These ads, called self-identity image ads, portray an image

Cas e Studies

36 case studies have been provided in the book to consolidate one’s understanding of the concepts discussed in the chapter.

C A S E S T U D Y

would fall because of thtors in the diamond minecontrol production and scarcity of diamonds. In

Marketing companies rely on techniques of consum-er learning to sell a variety of products. Consumers are taught to buy and use new and innovative prod-ucts through conditioning and to change attitudes

Marketing a Stone

pscarcity of diamonds. In

g y pcts through conditioning and to change attitudes

, originally published in 1899, sheds light on how people use wealth and goods to bolster their social position in society. People strive for status and to

C A S E S T U D Y

Rather, status was obtwealth on display. Althoughue, Veblen recognized manybecause they were ‘a mark of

Dilemma of Luxury Brands

Section on Modern Consumer

Online consumer behavior, consumer engagement, and future of shopping in times of exploding social media usage have been covered in detail.

Online Buying Behaviour

C H A P T E R S I X T E E N

Consumer Engagement and Equity

C H A P T E R S E V E N T E E N

C H A P T E R E I G H T E E N

Ethics and Social Responsibility

Key Terms

Key terms are provided at the end of every chapter to serve as a quick review guide of important topics covered in the chapter.

■ ■ ■ ❘16 personality factors model (16PF) Measures

personality on 16 factors and captures individual

description of personalityAnthropomorphism

characteristics to non-human objectsBrand personality

associated with a brand

Consumer ethnocentand a resultant desireproducts and brands

Consumer fixation becomes obsessed or

Consumer innovativened by new products

KEY TERMS

Chapter-end Exercises

Each chapter provides concept-review questions, critical thinking questions, and

project assignments for classroom discussion to enhance learning.

■ ■ ■ ❘ Concept-review Questions

1. What is consumer motivation? Why is it important in the study of consumer behaviour?

2. Distinguish between needs, goals, motives, and desires. Show how these lead to drives that ultimately result in action.

3 E l i M l ’ hi h f d d h i

7. Critically examiwill sell philosop

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ii

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Implementing systems for satisfying needs of B2B buyers is hugely expensive, as in the case of Rolls-Royce discussed in this chapter. Given the high cost of capital, can companies really implement such

needs if they do not wish to take risks?

■ ■ ❘ 2. Companies have to

underhand dealings. D

business in a corruptlimits?

Critical Thinking Questions

of capa ital, can companies really implement such

needs if they do not wish to take risks?business in a climits?needs if they do not wish to take risks? limits?

1. Conduct a survey of your classmates. Ask them to list

personal choices.

■ ■ ■ ❘whether there is a and consumption o

3. Study the awarenessIndia among your cltargeted ads such a

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