1. Personality and Consumer Behavior Module 3

2. Some Facts Mercedes Benz regained its market leadership inluxury cars in India in July, powered mainly by the demand for its Dream car models- the two door SLK and CLS and AMG range of models. Audi sold 705 units last month againstMercedes tally of 810 units sold in July. BMW India did not disclose its domestic sales. 3. Hero MotorCorp, which exited all cricketsponsorships including the Indian Premier League earlier this year, is now betting on music to connect with the youth. The top two-wheeler maker will be presenting sponsor for Sunburn, Asias biggest music festival, this year Apart from Hero, other sponsors include Budweiser and Kingfisher- all known as liquor brands- besides energy drink Red Bull and PepsiCos lime drink 7 Up. 4. South Korean handset maker SamsungElectronics dethroned its Finnish counterpart Nokia as Indias largest mobile phone maker in the last fiscal year by cornering 31.5% market share compared with 27.2% for the latter, Voice & Data survey revealed. When music channel network 9XMedia chose to replace video jockeys with animated characters such as Bheegi Billi, Betel Nuts and Bade Chote in some shows, the idea was just to entertain viewers. Today, these cartoon VJs account for more than onefifth of the networks revenues, with many marketers including Hindustan Unilever, Nestle, Coca-Cola and Dabur using them to promote their products. 5. Examples Harley Davidson : Were all created equal. Butafter that, its up to you Audi : Never Follow 6. What Is Personality The inner psychological characteristics that bothdetermine and reflect how a person responds to his or her environment. The emphasis in this definition is on inner characteristics- those specific qualities, attributes, traits, factors, and mannerisms that distinguish one individual from other individuals. 7. The Nature of Personailty Personality reflects individual differences Personality can change 8. Theories of Personality Freudian theory Unconscious needs or drives, are at the heart of humanmotivation and personality Neo-Freudian personality theory Social relationships are fundamental to the formationand development of personality Trait theory The orientation of trait theory is primarily quantitative orempirical; it focuses on the measurement of personality in terms of specific psychological characteristics, called traits. A trait is defined as any distinguishing, relatively enduring way in which one individual differs from another. Trait theorists are concerned with the construction of personality tests (or inventories) that enable them to pinpoint individual differences in terms of specific traits. 9. Freudian Theory Id Warehouse of primitive and impulsive drives- basic physiological needs such as thirst, hunger, and sex- for which the individual seeks immediate satisfaction without concern for the specific means of satisfaction. Superego Individuals internal expression of societys moral and ethical codes of conduct. The superegos role is to see that the individual satisfies needs in a socially acceptable fashion. Ego Individuals conscious control. It functions as an internal monitor that attempts to balance the impulsive demands of the id and the sociocultural constraints of the superego. 10. Freudian Theory and Product Personality Researchers who apply Freuds psychoanalytic theory tothe study of consumer personality believe that human drives are largely unconscious and that consumers are primarily unaware of their true reasons for buying what they buy. Consumer researchers using Freuds personality theory see consumer purchases and /or consumption situations as a reflection and extension of the consumers own personality. In other words, they consider the consumers appearance and possessions- grooming, clothing, jewelry, and so forth- as reflections of the individuals personality. 11. Snack Foods and Personality Traits Potato Chips: Ambitious, successful, high achiever, impatient Nuts: Easygoing, empathetic, understanding, calm, even tempered Popcorn: Takes charge, modest, self-confident but not a show-off 12. Neo-Freudian Personality Theory Neo-Freudians believed that social relationships arefundamental to the formation and development of Personality. We seek goals to overcome feelings of inferiority We continually attempt to establish relationships with others to reduce tensions Karen Horney was interested in child-parent relationships and the individuals desires to conquer feelings of anxiety. Proposed three personality groups Compliant move toward others, they desire to be loved, wanted, and appreciated Aggressive refers to individuals being an extrovert and getting noticed in all what he does Detached move away from others. They desire independence, self-reliance, self-sufficiency, and individualism or freedom from obligations) 13. Trait Theory Personality theory with a focus on psychologicalcharacteristics Trait - any distinguishing, relatively enduring way in which one individual differs from another Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brand. For example, there is more likely to be a relationship between a personality trait and whether or not an individual owns an SUV than between a personality trait and the brand of SUV purchased. 14. Selected single-trait personality tests (whichmeasure just one trait, such as self-confidence) are often developed specifically for use in consumer behaviour studies. These tailor-made personality tests measure such traits as consumer innovativeness (how receptive a person is to new experiences), consumer materialism ( the degree of the consumers attachment to worldly possessions), and consumer ethnocentrism (the consumers likelihood to accept or reject foreign-made products) 15. Consumer innovativeness and related personality traits Consumer Innovators And Noninnovators Consumer Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation level Variety-novelty seeking The degree to whichconsumers are receptive to new products, new services, or new practices 16. A General Consumer Innovativeness Scale I would rather stick to a brand I usually buy than try something I am not very sure of When I go to a restaurant, I feel it is safer to order dishes I am familiar with. If I like a brand, I rarely switch from it just to try something different I enjoy taking chances in buying unfamiliar brands just to get some variety in my purchase. When I see a new brand on the shelf, Im not afraid of giving it a try. 17. Consumer Innovators And Noninnovators Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulationlevel Variety-novelty seeking A personality trait thatreflects the degree of rigidity (versus openness) a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs 18. Consumer Innovators And Noninnovators Innovativeness Ranges on a continuum Dogmatismfrom inner-directedness to other-directedness Inner-directedness Social character Need for uniqueness Optimum stimulation level Variety-novelty seeking rely on own inner values whenevaluating products Innovators Other-directedness look to others for guidance as to what is appropriate or inappropriate 19. Consumer Innovators And Noninnovators Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulationlevel Variety-novelty seeking Consumers who avoidappearing to conform to expectations or standards of others 20. Sample Items from a Consumers Need for Uniqueness Scale 1. I collect unusual products as a way of telling people 2. 3.4.5.Im different When products or brands I like become extremely popular, I lose interest in them As far as Im concerned, when it comes to the products I buy and the situations in which I use them, custom and rules are made to be broken I have sometimes purchased unusual products or brands as a way to create a more distinctive personal image I avoid products or brands that have already been accepted and purchased by the average consumer 21. Consumer Innovators And Noninnovators Innovativeness A personality trait that Dogmatismmeasures the level or amount of novelty or complexity that individuals seek in their personal experiences High OSL consumers are linked with greater willingness to take risks, to try new products, to be innovative, to seek Social character Need for uniqueness Optimum stimulation level Variety-novelty seeking 22. Consumer Innovators And Noninnovators Innovativeness Measures a consumers Dogmatismdegree of variety seeking Examples include: Social character Need for uniqueness Optimum stimulationlevel Variety-novelty seeking Exploratory PurchaseBehavior Use Innovativeness Vicarious Exploration 23. Exploratory Purchase behaviour: Switching brands to experience new, different, and possibly better alternatives. Vicarious Exploration: Securing information about a new or different alternative and then contemplating or even daydreaming about the option. Use Innovativeness: Using an already adopted product in a new or novel way. 24. Cognitive Personality Factors Need for cognition (NC) A persons craving for or enjoyment of thinking Individual with high NC more likely to be responsiveto the part of an ad that is rich in product-related information or description, consumers who are relatively low in NC are more likely to be attracted to the background or peripheral aspects of an ad, such as an attractive model or well-known celebrity. Visualizers versus verbalizers A persons preference for information presentedvisually or verbally. Visualizers are consumers who prefer visual information. Verbalizers prefer written or verbal information over graphics and images. 25. Norwegian Cruise+ 26. 28 27. 29 28. From Consumer Materialism to Compulsive Consumption Consumer materialism Materialism, as a personality-like trait, distinguishesbetween individuals who regard possessions as essential to their identities and their lives and those for whom possessions are secondary. Fixated consumption behavior Somewhere between materialism and compulsion,with respect to buying or possessing objects, is the notion of being fixated with regard to consuming or possessing. Fixated consumers do not keep their objects or purchases of interest a secret; rather, they frequently display them, and their involvement is openly shared with others who have a similar interest. 29. Sample Items from a Materialism Scale Success I admire people who own expensive homes, cars,and clothes I like to own things that impress people Centrality I like a lot of luxury in my life Happiness My life would be better if I owned certain things Idont have It sometimes bothers me quite a bit that I cant afford to buy all the things Id like 30. Compulsive consumption behavior Addicted or out-of-control consumers Consumers who are compulsive have an addiction;in some respects they are out of control, and their actions may have damaging consequences to them and to those around them. Examples of compulsive consumption problems are uncontrollable shopping, gambling, drug addiction, alcoholism, and various food and eating disorders. To control or possibly eliminate such compulsive problems generally requires some type of therapy or clinical treatment. 31. Sample Items from Scales to measure Compulsive Buying 1. When I have money, I cannot help but spend part or the whole of it. 2. I am often impulsive in my buying behavior. 3. As soon as I enter a shopping center, I have an irresistible urge to go into a shop to buy something. 4. I have often bought a product that I did not need, while knowing I had very little money left. Copyright 2007 by Prentice Hall 32. Consumer Ethnocentrism Ethnocentric consumers feel it is wrong to purchaseforeign-made products because of the resulting economic impact on the domestic economy, whereas nonethnocentric consumers tend to evaluate foreignmade products-ostensibly more objectively- for their extrinsic characteristics (e.g., how good are they?). A portion of the consumers would score low on an ethnocentric scale are actually likely to be quite receptive to products made in foreign countries. Marketers successfully target ethnocentric consumers in any national market by stressing a nationalistic theme in their promotional appeals (e.g., Made in America or Made in France) because this segment is predisposed to buy products made in their native land. 33. Honda, the Japanese automaker, in an indirectappeal to ethnocentric Americans, had advertised that its Accord wagon is Exported from America to other markets 34. The Consumer Ethnocentrism Scale -CETSCALE American people should always buy American made products instead of imports Only those products that are unavailable in the United States should be imported Buy American made products. Keep America working American products, first, last, and foremost Purchasing foreign-made products is unAmerican It is not right to purchase foreign products, because it puts Americans out of jobs A real American should always buy American- 35. Brand Personality Personality-like traits associated with brands Examples Perdue (chickens) and freshness Nike and athlete BMW is performance driven Levis jeans are dependable and rugged 36. Brand personification: It tries to recastconsumers perception of the attributes of a product or service into a human-like character. Example: Mr. Coffee, a popular brand of automatic-drip coffee makers, unexpectedly found in its focus group research that consumers were referring to Mr. Coffee as if the product were a person (e.g., he makes good coffee and hes got a lot of different models and prices). After careful consideration, the marketers decided to explore the possibility of creating a brand personification. Initial consumer research indicated that Mr. Coffee was seen as being dependable, Friendly, efficient, intelligent, and smart. 37. A Brand Personality FrameworkCopyright 2007 by Prentice Hall 38. Product Personality Issues Gender Often used for brand personalities Chinese consumers perceived coffee andtoothpaste to be masculine products, whereas bath soap and shampoo were seen as feminine products. Geography Example includes Philadelphia cream cheeseand Arizona iced tea By employing geography in the products name, the products manufacturer creates a geographic personality for the product 39. Marketers often use a fictitious location to help with personality. 40. Color Color combinations in packaging and productsdenotes personality. For instance, Coca-Cola is associated with red, which connotes excitement. Yellow is associated with novelty, and black frequently connotes sophistication. Blue is associated with respect, authority and Green is associated with secure, natural, relaxed The IBM Thinkpad has consistently used an all-back case with a red button to house its very successful line of laptops. Nike has used black, white, and a touch of red for selected models of its sports shoes. This colour combination seems to imply advancedperformance sports shoes. Many fast food restaurants use combination of bright colours like red, yellow and blue for their roadside signs and interior designs. It denotes fast service and inexpensive food. 41. Financial Services Firms Often Feature Blue and Green on Their Sites 42. Self and Self-Image Consumers have a variety of enduring images ofthemselves These self-images, or perceptions of self, are very closely associated with personality in that individuals tend to buy products and services and patronize retailers whose images or personalities relate in some meaningful way to their own selfimages. 43. Issues Related to Self and Self-Image One or multipleselves Makeup of the selfimage Extended self Altering the selfimage A single consumer will actdifferently in different situations or with different people 44. Issues Related to Self and Self-Image One or multiple Contains traits, skills, habits,selves Makeup of the self image Extended self Altering the selfimagepossessions, relationships and way of behavior Developed through background, experience ,and interaction with others Consumers select products congruent with this image 45. Different Self-Images Actual SelfImageIdeal Social Self-ImageIdeal Self-ImageSocial Self-Image 46. Issues Related to Self and Self-Image One or multipleselves Makeup of the selfimage Extended self Altering the selfimage The interrelationship betweenconsumers self-images and their possessions is an exciting topic. Specifically, consumers posessions can be seen to confirm or extend their selfimages. For instance,acquiring a desired or sought-after pair of vintage Levi jeans might serve to expand a teenagers image of self. The teenager might 47. Sample Items from an Extended Self-Survey My -------- holds a special place in my life My -------- is central to my identity I feel emotionally attached to my My ----------helps me narrow the gap betweenwhat I am and try to be If my -------- was stolen from me, I would feel as if part of me is missing I would be a different person without my ---------- 48. Issues Related to Self and Self-Image One or multipleselves Makeup of the selfimage Extended self Altering the self Sometimes consumers wishto change themselves to become a different or improved self. Clothing, grooming aids or cosmetics, and all kinds of accessories ( such as sunglasses, jewelry, tattoos, or even colored contact lenses) offer consumers the opportunity to modify their appearances (to