PERSONALITY

Personality is the supreme realization of the innate individuality of a particular living being. Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. Inner characteristicsSpecific qualities, attributes, traits, factors and mannerisms that distinguish one individual from other individuals. The deeply ingrained characteristics which we call as personality are likely to influence the individuals product choices and may be even brand choices. They also affect the way consumers respond to promotional efforts and when, where, and how they consume particular products. Therefore, the identification of specific personality characteristics, associated with consumer behaviour may be highly useful in the development of a firms market segmentation strategy.

The Nature of Personality

There are three distinct properties of personality. Personality reflects individual differences Personality is consisitent and enduring Personality can change

THEORIES OF PERSONALITY
Freudian Theory: His theory is also called the psychoanalytic theory
of personality. This theory was built on the premise that unconscious needs or drives, especially, sexual and other biological drives, are at the heart of human motivation and personality. He constructed this theory on the basis of patients recollections of early childhood experiences, analysis of their dreams, and the specific nature of their mental and physical adjustment problems.

Id, Superego, and Ego: Based on his analysis, Freud proposed that
the human personality consists of three interacting systems: the Id, the Superego, and the Ego. The Id was conceptualised as the warehouse of primitve 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. In contrast to the Id, the Superego is conceptualised as the 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. Thus, the Superego is a kind of brake that restrains or inhibits the impulsive forces of the Id. Finally, the Ego is the 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.

Stages of Personality Development: Freud emphasized that an individuals personality s formed as he/she passes through a number of distinct stages of infant and childhood development. The stages are: Oral Stage: The infant first experinces social experience with the outside world through the mouth (eg. Eating, drinking, sucking). A crisis develops at the end of this stage when the child is weaned from the mothers breast or from the bottle. Anal Stage: During this stage, the childs primary source of pleasure is the process of elimination. A second crisis develops at the end of this stage when parents try to toilet train the child. Phallic Stage: The child experiences self-oriented sexual pleasure during this phase with the discovery of the sex organs. A third crisis develops when the child experiences sexual desire for the parent of the opposite sex. How the child resolves this crisis affects later relationships with persons of the opposite sex. Latency Stage: The sexual insticnts of the child lie dormant from about age 5 until the beginning of adolescence and no important personality changes occur during this time. Genital Stage: At adolescence, the individual develops a sexual interest in persons of the opposite sex, beyond self-oriented love and love for parents. According to Freud, an adults personality is determined by how well he/she deals with the crisis that is experienced while passing through each of these stages.

Example: If a childs oral needs are not adequately satisfied at the first stage of development, the person may become fixated at this stage and as an adult display a personality that includes such traits as dependence and excessive oral activity (like gumchewing and smoking). When an adult is fixated at the Anal stage, the adult personality may display other traits, such as an excessive need for neatness.

Freudian Thoeory and Product Personality

Consumer purchases are a reflection and extension of their own personality. Inother words, what one wears, what one eats, what one rides etc. are reflections of an individuals personality.

Brand Personality: Consumers tend to ascribe various descriptive

personality-like traits or characteristics-the ingredients of brand personality-to different brands in a wide variety of product categories. Companies try to give brand personification to different brands in the market. Example: Mr. Coffee was seen as being dependable, friendly, efficient, and intelligent/smart. The word Mister did wonders for that coffee brand. Discussion of case of Mr. Coffee.

Jungian Personality Types

Carl Jung was a contemporary and colleague of Freud.

 Carl Jungs personality types capture two pairs of dimensions i.e, Sensing-Intuiting and Thinking-Feeling. The Sensing (S) and Intuiting (N) dimensions capture how consumers find out about things (obtaining and processing information), and the Thinking (T) and Feeling (F) dimensions are opposite ways of making decisions (decision styles).

Summary Characteristics of Selected Jungian Personality Types

Sensing-Thinking (ST)
Rational in decision-making. Logical and empirical in viewpoint. Makes decisions following an objective orientation. Heavily weighs economic considerations-most price sensitive. Will extend considerable effort to search for decision-making information. Risk avoider. Materialism reflects personal or private motives (i.e., identifies with material objects or things). Short-time horizon in making decisions.

Sensing-Feeling (SF)
Empirical viewpoint. Propelled by personal values rather than logic. Makes decisions following a subjective orientation. Likely to consider others while making a decision.

 Shares risk with others. Materialism reflects how objects will impact on others (i.e., status conscious). Short-time horizon in making decisions.

Intuiting-Thinking (NT)
Takes a broad view of personal situation or world. Relies heavily on imagination, yet uses logic in approaching decisions. Imagines a wider range of options in making a decision. Weighs options mentally. Willing to take risks or be speculative in decisions. Long-time horizon in making decisions.

Intuiting-Feeling (NF)
Takes a broad view of personal situation or world. Imagines a wide range of options in making a decision. Highly people oriented likely to consider others views. Makes decisions following a subjective orientation. Least price sensitive. Risk seeking (venturesome and novelty seeking). Indefinite time horizon in making decisions.

Neo-Freudian Personality Theory:

Several of Freuds colleagues disagreed with his contention that personality is primarily instinctual and sexual in nature. Instead, these neo-Freudians believed that Social Relationships are fundamental to the formation and development of personality.

Karen Horney, one of the neo-Freudians, proposed that individuals can be classified into three personality groups. Compliant Individuals: These are those individuals who move toward others (they desire to be loved, wanted, and appreciated). Ads showing group work or team work will highly appeal to these people. Aggressive Individuals: These are those individuals who move against others (they desire to excel and win admiration). Ads of Army or other challenging works attract these people. Detached Individuals: These are those individuals who move away from others (they desire independence, self-reliance, selfsufficiency, and freedom from obligations). These people are less brand loyal and are likely to try different brands.

Trait Theory
The orientation of trait theory is primarily is quantitative or empirical; 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.

Accordingly, proponents of this theory are concerned with the construction of personality tests that pinpoint individual differences in terms of specific traits. These tests measure such traits as consumer innovativeness, consumer susceptibility to interpersoanl influence, consumer materialism, and consumer ethnocentrism.

PERSONALITY AND UNDERSTANDING CONSUMER DIVERSITY 1. Consumer Innovativeness: How receptive consumers are to new
products is quite important to marketers. The subpoints are:

Dogmatism: It is apersonality trait that measures the degree of rigidity individuals display toward the unfamiliar and toward the information that is contrary to their own established beliefs. A persona who is highly dogmatic approaches the unfamiliar defensively and with somewhat discomfort and uncertainty. At the other end, a person who is low in dofmatism will readily consider unfamiliar or opposing beliefs. Firms use celebrities and experts to provide authoritative appeal to ads which are directed towards dogmatic consumers. Social Character: This is a personality trait that ranges on a continuum from inner-directedness to other-directedness. Inner directed people tend to rely on their own inner values or standards in evaluating products and messages. They prefer ads that stress product features and benefits. Other directed people tend to look to others for direction on what is right or wrong. These seem to prefer ads that feature a social environment or social acceptance. Optimum Stimulation Level: This is the level at which a person gets actually stimulated and excited. Some people like relaxed and calm lives while others like complex and busy life schedules. Example: Holiday package companies stress on this parameter to make promotional appeals for their target market. Variety-Novelty Seeking: Consumers seek variety and try new brands just for experience (try once or ek baar istemal karke dekho appeal ads). The consumer may also try used products in a new or novel way. Such people like mobile phones, calculators, and other electronic gadgets with many functions because they want to use them in a variety of ways.

2. Consumer Susceptibility to Interpersonal Influence:

This tries to study the traits of consumers who are likely to be responsive to the influence of others. The consumer researchers have developed a twelve point scale called SUSCEP designed to measure consumers susceptibility to interpersonal influence. Consumers who scored high on SUSCEP were less self-confident than consumers who scored low on SUSCEP.

Cognitive Personality Factors: Two cognitive personality traits are

of importance. They are as below: Visualizers versus Verbalizers: Visualizers are those consumers who prefer visual information and products that stress the visual. Verbalizers are consumers who prefer written or verbal information and products. Need for Cognition: (NC)This measures a persons craving for or enjoyment of thinking. Research suggests that people who are high in NC are more likely to be responsive to the part of an ad that is rich in product-ralted information or description and unresponsive to the contextual or peripheral aspects of the ad, such as the presence of a celebrity endorser etc. Those who are low in NC would be more attracted to the presence of a beautiful model or a celebrity or other peripheral aspects of the ad.

3. From Consumer Consumption:

Materialism

to

Compulsive

Consumer Materialism: This is a personality trait which distinguishes between individuals who regard possessions as particularly essential to their identities and lives and those for whom possessions are secondary. Fixated Consumption Behaviour: Fixated consumers normally possess the following characteristics:

 A deep interest in a particular object or product category A willingness to go to considerable lengths to secure additional examples of the object or product category of interest. The dedication of a considerable amount of discretionary time and money to searching out the object or product. Examples: Collectors or Hobbyists (like coins, stamps, antique etc.). Research suggests that such people not only enjoy collecting objects but also enjoy the process of buying or acquiring those objects. That is why for some people the shopping experience becomes as important as the product itself. This is one of the main reasons for the growth of Shopping Malls and Arcades.

Compulsive Consumption Behaviour: Unlike materialism and

fixated consumption behaviour, compulsive consumption behaviour is in the realm of abnormal behaviour. Such consumers have an addiction, they are out of control, and their actions may be damaging. Example: Uncontrollable gambling, drug addiction, alcoholism, food and eating disorders etc. To get rid of this type of disorder, therapy or clinical treatment is required.

4. Consumer Ethnocentrism: Responses to Foreign Made Products

This measures the receptiveness of consumers towards products of foreign origin or linkage. A scale has been developed to measure this trait and is called CETSCALE (consumer ethnocentrism scale). Consumers who are highly ethnocentric are likey to feel that it is wrong or inappropriate to purchase foreign - made prodcuts because of the economic impact on the domestic economy. Whereas, nonethnocentric

consumers tend to evaluate foreign-made products more objectively for their extrinsic characteristics. Example: Indians boycotted the purchase of British goods. Japanese boycotted the use of American goods. Domestic marketers can attract ethnocentric consumers by stressing a nationalistic appeal in their promos. Like Made in America, The jeans that built America, Born in Japan, entertaining the world, We know India better, Hum desh ka namak khate hain etc.

Self and Self-Image

Consumers have a number of enduring images of themselves. These self-images or perceptions of self are very closely associated with personality in that individuals tend to buy products, and patronize retailers, with images or personalities that closely correspond to their own self-images.

One or Multiple Selves:

 Historically, individuals have been thought to have a single self and to be interested in products that satisfy that single self. However, research indicates that it is more accurate to think of the consumer in terms of a multiple self or multiple selves. This is because a single consumer will act quite differently with different people and in different situations.

The Makeup of the Self-Image:

Each individual has an image of himself/herself as a certain kind of person, with certain habits, traits, possessions, relationships etc. The individuals self-image is unique which is the outgrowth of that persons background and experience. Individuals develop their self-images through interactions with other people, initially their parents and then other individuals or groups with whom they relate over the years. The notion of a consumer having multiple selves or multiple roles is consistent with the idea of use-situation segmentation. Example: Clothes to be worn at different functions/parties, watches and jewellery to be used at different parties etc. Consumers attempt to preserve or enhance their self-images by selecting products with images or personalities they believe are congruent with their own self-images and avoiding products that are not. There are five specific kinds of self-images:

 Actual Self-Image: How consumers in fact see themselves. Ideal Self-Image: How consumers would like to see themselves. Social Self-Image: How consumers feel others see them. Ideal Social Self-Image: How consumers would like others to see them. Expected Self-Image: How consumers expect to see themselves at some specified future time. The expected selfimage is somewhere between the actual and ideal self-images. This is of more use to marketers as it provides consumers with a realisitic chance to change themselves.

Example: You feel that you are an introvert person. You want to be an extrovert person. You know that others see you as a shy and harmless creature. You want others to see you as a potent and capable person who takes challenges in life. You want to change yourself within five years from now so that you are no more shy and introvert rather an energetic person who likes difficulties

In different contexts, consumers might select a different self-image to guide their attitudes or behaviour. Example: With some everyday household products, consumers might be guided by their actual self-images; whereas, for some socially enhancing or socially conspicuous products, they might be guided by their social self-images. Like, the purchase of a toothpaste or tomatosauce may depend on the actual self-image, but the purchase of a car or perfume may depend upon the social self-image.

The Extended Self:

 Consumers possessions can be seen to confirm or extend their selfimages. For instance, acquiring a desired or sought-after tennis racquet might serve to expand or enrich a persons self-image. The person might now see himself or herself as being more competitive, more fit, and more successful. Thus, possessions are considered extensions of the self. It has been proposed that possessions can extend the self in a numer of ways: 1. Actually, by allowing the person to do things that otherwise would be very difficult or impossible to accomplish (problem solving using a computer). 2. Symbolically, by making the person feel better or bigger (receiving an employee award for excellence). 3. By conferring status or rank (status among peers because of the possession of a rare work of art). 4. By bestowing feelings of immortality, by leaving valued possessions to young family members. 5. By endowing with magical powers ( a chain or necklace inherited from ones aunt might be perceived as a magic figure bestowing good luck when it is worn.

Altering the Self:

Sometimes consumers wish to change themselves to become a different or improved self. Clothing, grooming aids, and all kinds of accessories (e.g., cosmetics, jewelry) offer consumers the opportunity to modify their appearences and thereby to alter themselves.

 Sometimes, consumers use self-altering products to conform to or take on the appearance of a particular type of person (e.g., military person, a physician, a business executive, a film actor etc.) Altering ones self, particularly ones appearance or body parts, can be accomplished by cosmetics, hair restyling or coloring, switching from eye glasses to contact lenses, or undergoing cosmetic surgery. Sometimes people hire image consultants to provide information on such personal attributes as clothing, color, presentation, appearance, posture, speaking,and media skills.

Perception
Perception can be described as how we see the world around us.
Perception is based on every individuals needs, values, and expectations.

Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.
A stimulus is any unit of input to any of the senses. Examples: Products, packages, brand names, advertisements etc. Sensory receptors are the human organs (eyes, ears, nose, mouth, and skin) that receive sensory inputs. The study of perception is largely the study of what we add or subtract to the raw sensory inputs to make our own picture of the world. Sensation: Sensation is the immediate and direct response of the sensory organs to simple stimuli ( a package, a brand name etc.). Sensitivity to stimuli varies with individuals. Example: A blind man may have a more highly developed sense of hearing than the average sighted man and may be able to hear sounds that the average person cannot. Example: A person who lives on a busy street in Delhi may not have any sensation from honking of horns after some time. But, a similar sound

would be of great disturbance to a fellow villager who has justy come to Delhi from a nearby village. In situations where there is a great deal of sensory input, the senses do not detect small intensities or differences in input. As sensory input decreases, our ability to detect changes in input or intensity increases, to the point that we attain maximum sensitivity under conditions of minimal stimulation. Example: We pay more attention to an ad that appears alone during a program break. Example: We pay more attention to a black-and-white ad in a full of color ads.

The Absolute Threshold:

The lowest level at which an individual can experience a sensation is called the absolute threshold. The point at which a person can detect a difference between something and nothing is that persons absolute threshold for that stimulus. Example: Some people may notice a minor change in packaging while some may not.

Adaptation: Adaptation refers to getting used to certain sensations.

Example: We become adapted to television commercials after seeing them a number of times. That is the reason TV advertisers try to change their ad campaigns regularly. Sometimes we get adapted to the medium of advetisement so that any ad which appears on radio or TV goes unnoticed by us. For this reason some marketers resort to unusual media for advertising their products.

They advertise on buses, trains, bus stands, etc. They hope to attract our attention by advertising through innovative mediums.

The Differential Threshold: The minimal difference that can be

detected between two similar stimuli is called the differential threshold, or the j.n.d (just noticeable difference).

Webers Law: This states that the stronger the initial stimulus, the
greater the additional intensity needed for the second stimulus to be perceived as different. Example: A Rs. 1,000 increase in the price of a motorcycle may go unnoticed, but a Rs. 10 per litre increase in the price of gasoline might be easily noticed because the increase is a significant percentage of the initial price of gasoline. According to Webers Law, 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.This law holds for all the senses and for almost all intensities.

Marketing Applications of the j.n.d.

Marketers endeavour to determine the relevant j.n.d. for their products for two very different reasons: 1. So that negative changes (e.g., reductions in product sizes, increases in product price, or reduced quality) are not readily discernible to the public 2. So that product improvements (such as improved or updated packaging, larger size, lower price) are very apparent to consumers without being wastefully extravagant.

Example: Rising costs for manufacturers leads to increased prices or reduced quantity offered at the existing price, keeping the increased price or reduced quantity just under the j.n.d to avoid negative consumer reactions. Example: When the price of coffee beans goes up, coffee processors often downgrade quality by adding inferior beans to the mix, up to but not including the j.n.d. --- the point at which the consumer will notice a difference in taste. Example: Marketers often want to update existing packaging without loosing the ready recognition by consumers who have been exposed to years of cumulative advertising impact. In such cases, they usually make a number of small changes, each carefully designed to fall below the j.n.d., so that consumers will not perceive any difference. The packaging of Ivory soap, which was introduced in 1879, was subtly changed over the years to retain a contemporary look. The change in packaging was not noticed by the consumers as it fell below their j.n.d. The latest Ivory package is considerably different from the original, but the changes made were unnoticed by customers. Example: Lexmark International Inc. which bought the office supplies and equipment line from the International Business Machine Corporation in March 1991, agreed to relinquish the IBM name by 1996. Recognizing the need to build a brand image for Lexmark while they moved away from the well-known IBM name, Lexmark officials conducted a four-stage campaign for phasing in the Lexmark name on products. Stage 1: Carry only the IBM name. Stage 2: Feature the IBM name and downplay Lexmark. Stage 3: Feature the Lexmark name and downplay IBM. Stage 4: Feature only the Lexmark name.

Subliminal Perception: People are stimulated below their level of conscious awareness; that is they can perceive stimuli without being consciously aware that they are doing so. Stimuli that are too weak or too brief to be consciously seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception because the stimulus is beneath the threshold, or limen of awareness. Perception of stimuli that are above the level of conscious awareness is called Supraliminal perception. Embeds are defined as disguised stimuli not readily recognized by readers that are planted in print advertisements to persuade consumers to buy their products. Embeds are generally of a sexual nature. In general, there are three types of subliminal perception: 1. Briefly presented visual stimuli. 2. Accelerated speech in low-volume auditory messages. 3. Embedded or hidden imagery or words (often of a sexual nature) in print ads or on product labels. Example: The words Eat Popcorn and Drink Coca-Cola were flashed on the screen during a movie in New Jersey in 1957. The exposure times were so short that viewers were unaware of seeing a message. It was reported that during the 6-week test period, popcorn sales increased 58% and Coca-Cola sales increased 18%.

Example: People were visually exposed to the word beef for 1/200th of a second every seven seconds. At the end of the experiment, the people in the test group reported being hungrier than those in the control group, who did not receive the messages. When asked to choose from a menu however, few chose beef.

Example: Department stores are incorporating subliminal messages in musical soundtracks played on their public address systems to motivate employees and to discourage shoplifting. Subliminal messages, such as I am honest, I wont steal, and Stealing is dishonest have reportedly brought about significant decreases in shoplifting and inventory shrinkage.

DYNAMICS OF PERCEPTION

Perception is the result of two different kinds of inputs that interact to form the personal pictures-the perceptions-that each individual experiences. One type of input is the physical stimuli from the outside environment; the other type of input is provided by individuals themselves in the form of certain predispositions (e.g., expectations, motives, and learning) based on previous experience. The combination of these two very different kinds of inputs produces for each of us a very private, very personal picture of the world.

Perceptual Selection: The selection of stimuli depends on three major factors. Nature of the Stimulus: Attractive stimuli are more noticed than those which are not. This is the reason Contrast is one of the most attention-compelling attributes of a stimulus. Example: Black & White ads, Colourful ads, absence of sound in the commercials opening scene, are very attractive. The ads of TAGHeuer line of

sports are very attractive. The ads make use of breathtaking visuals to attract the consumers attention and dramatically communicate the message. Expectations: People usually see what they expect to see, and what they expect to see is usually based on familiarity, previous experience, or preconditioned set. Example: A man who has been told by his friends that a new film is horrible will probably find the film to be the same. A lady who is advised by another lady that a particular brand of detergents is soft on hands will probably find so.
Sometimes, stimuli that conflict sharlpy with expectations often receive more attention than those that conform to expectations. Example: MAK Ads.

Another ad technique desgined to attract the readers attention is the so called topsy-turvy ad in which the top half is printed right side up, while the bottom half is printed upside down. Motives: People tend to perceive things they need or want; the stronger the need, the greater the tendency to ignore unrelated stimuli in the environment. Example: A woman interested in a portable computer is more likely to notice and to read carefully ads for computer laptops than her neighbour, who does not use a computer. There is a heightened awareness of stimuli that are relavent to ones needs and interests, and a decreased awareness of stimuli that are irrelevant to those needs. Someone who is hungry is more likely to spot a restaurant sign. A sexually repressed person may perceive sexual symbolism where non exists.

Important Selective Perception Concepts:

Selective Exposure: Consumers actively seek out messages that they find pleasant or with which they are sympathetic, and they actively avoid painful or threatening ones. Thus, heavy smokers avoid articles that link cigarette smoking to cancer. Instead, they note the relatively few articles that deny the relationship. Selective Attention: Consumers tend to have a heightened awareness of stimuli that meet their needs or interests and minimal awareness of stimuli irrelevant to their needs. Thus, they are likely to note ads for products that would satisfy their needs and for stores in which they shop, and disregard those in which they have no interest. Clearly, consumers exercise a great deal of selectivity in terms of the attention they give to commercial stimuli. Perceptual Defense: Consumers subconsciously screen out stimuli that they would find psychologically threatening, even though exposure has already taken place. Furthermore, individuals unconsciously may distort information that is not consistent with their needs, values, and beliefs. Example: A cigarette smoker may doubt the authenticity of an article relating smoking to cancer. He may even find the author of that article to be confused and biased and to have been sponsored by some governement agency. Perceptual Blocking: Consumers protect themselves from being bombarded with stimuli by simply tuning out- blocking such stimuli from conscious awareness. This perceptual blocking out is similar to consumers zapping commercials using remote controls. Research showa that enormous amounts of advertising are screened out by

consumers; they mentally tune out because of overstimulating nature of the world in which they live.

the

visually

PERCEPTUAL ORGANIZATION
People do not experience the numerous stimuli they select from the environment as separate and discrete sensations; rather they tend to organize them into groups and perceive them as unified wholes. Three of the most basic principles of perceptual organization are figure and ground, grouping, and closure. The specific principles underlying perceptual organization are often referred to by the name given the school of psychology that first developed it; Gestalt Psychology. Gestalt, in German, means pattern or configuration.

Figure and Ground: Stimuli that contrast with their environment are
more likely to be noticed. The simplest visual illustration consists of a figure on a ground (i.e., background). The figure is usually perceived clearly because, in contrast to its ground, it appears to be well defined, solid, and in the forefront. The ground is perceived as indefinite, hazy, and continuous. Figure is perceived more clearly because it appears to be dominant; in contrast, ground appears to be subordinate and, therefore, less important. Advertisers have to plan their advertisements carefully to make sure that the stimulus they want noted is seen as figure and not as ground. The musical background must not overwhelm the jingle; the background of an ad must not detract from the product. Print advertisers often silhouette their products against a white background to make sure that the features they want noted are clearly perceived.

Grouping: Individuals tend to group stimuli that they form a unified

picture or impression. The perception of stimuli as groups or chunks of information, rather than as discrete bits of information, facilitates their memory and recall. Grouping can be used advantageously by marketers to imply certain desired meanings in connection with their products. For example, an advertisement for tea may show a young man and woman sipping tea in a beautifully appointed room before a blazing hearth. The overall mood implied by the grouping of stimuli leads the consumer to associate the drinking of tea with romance, fine living, and winter warmth. Most of us can remember and repeat our Mobile numbers because we automatically group them into three chunks rather than remember ten different digits seperately.

Closure: Individuals have a need for closure. They express this need
by organizing their perceptions so that they form a complete picture. If the pattern of stimuli to which they are exposed is incomplete, they tend to perceive it as complete, that is, they subconsciously or consciously fill in the missing pieces. Thus, a circle with a section of its periphery missing is invariably perceived as a circle, not as an arc. The need for closure in individuals is also seen in the tension one experiences when a task is incomplete, and the satisfaction and relief that come with its completion. The tension created by an incomplete message leads to improvement in memory for that part of the message that has already been heard.. Example: Digen Vermas ad campaign for Frooty. Example: Pepsi and Coke ads in series. Example: Television serials break just before exciting plots and climax. Moreover, one episode ends on an exciting note so that

viewers are motivated to see the next episode the day after.

Perceptual Interpretation: The interpretation of stimuli is also

uniquely individual. Through the interpretation of ambiguous stimuli (projective tests etc.), respondents reveal a great deal about themselves. How close a persons interpretations are to reality depends on the clarity of the stimulus, the past experiences of the perceiver, and his/her motives and interests at the time of perception. Distorting Influences: Individuals are subject to a number of influences that tend to distort their perceptions; some of them are discussed below. Physical Appearances: Customers perceive products to be good if the package is good. Attractive men are perceived as more successful than ordinary looking men. First Impressions: First impressions tend to be lasting. A shampoo commercial successfully used the line You will never have a second chance to make a first impression. Since first impressions are long lasting, introducing a new product before it has been perfected may prove fatal to its ultimate success, because subsequent information about its advantages, even if true, will often be negated by memory of its early failure. Jumping to Conclusions: Many people jump to conclusions before examining all the relevant evidence. Example: The consumer may hear just the beginning of a commercial message and draw conclusions regarding the product being advertised on the basis of such limited information. For this reason, some copywriters are careful not to save their most persuasive arguments for last.

 Halo Effect: The Halo Effect has been used to describe situations in which the evaluation of a single object or person on a multitude of dimensions is based on the evaluation of just one or few dimensions. Example: A man is trustworthy, fine, and noble because he looks you in the eye when he speaks. Consumer behaviourists broaden the notion of the Halo Effect to include the evaluation of multiple objects (e.g., a product line) on the basis of evaluation of just one dimension ( a brand name or a spokesperson). Using this broader definition, marketers take advantage of the halo effect when they extend a brand name associated with one line of products to another. The mushrooming field of Licensing is also based on the Halo Effect. Manufacturers and retailers hope to acquire instant recognition and status for their products by association with a well-known celebrity or designer name. Example: BIC successfully introduced a line of disposable razors under the BIC name.Earlier BIC had a reputation for manufacturing inexpensive, reliable, disposable pens.

Consumer Imagery
Products and brands have symbolic value for consumers, who evaluate them on the basis of their consistency with their personal pictures of themselves. Retail stores select mannequins that they feel reflect the stores image as well as the targeted consumers self-image. Today, mannequins have more athletic look in response to the health and fitness concerns of the 1990s and are shown running, diving, and

jumping, in addition to more traditional poses. It is generally believed that if the customer identifies with the mannequins, he/she is more likely to purchase the product. Earlier, in the 1970s, some female mannequins were made in bold, upright stances with tightly clenched fists to reflect womens fight for equality; today they have a confident, outgoing but softer appearance.

Product and Service Images

The image that a product has in the mind of the consumer-that is, its positioning-is probably more important to its ultimate success than are its actual characteristics. Positioning Strategy: A product can be positioned differently to different market segments, or can be repositioned to the same audience, without actually being physically changed. The marketer must try to win a distinctive place in the consumers mind. When Avis challenged Hertz by saying We are number two. We try harder, it distinguished itself in the consumers mind as the underdog- a clever marketing strategy because many Americans favour underdogs. Positioning of Services: Because services are intangible, image becomes a key factor in differentiating a service from its competitors. Many service providers try to tangibalise the service. Example: Painted delivery vehicles, restaurant matchbooks, packaged hotel soaps and shampoos, etc. Sometimes companies market several versions of their service to different market segments by using a differentiated positioning strategy.

However, they must be careful to avoid perceptual confusion amongst consumers. The American Express Company offers its regular (green) card to consumers as a short-term credit instrument, the True Grace Card for long-term credit, and the prestigious Gold and Platinum cards, each with increased services, to the affluent cardholder. The Service Environment: The design of the service environment is an important aspect of service positioning strategy. The physical environment is particularly important in creating a favourable impression for such services as banks, retail stores, and professional offices. This is because, there are so few objective criteria by which consumers can judge the quality of the services they receive. Repositioning Strategies: Because of extreme competition and changing customer preferences, the marketer has to reposition its services. Example: When Revlon decided to change the image of Revlon cosmetics to attract a younger, more diverse audience, its repositioning strategy involved changing its copy appeals, changing its advertising media (to youth-oriented TV shows), and changing its distribution channels (from higher-priced departmental stores to lower-priced retail outlets such as drugstores and supermarkets). Example: Kentucky Fried Chicken changed its name to KFC in order to omit the dread word fried to attract health conscious consumers.

Perceived Price
Let us consider perception of Price Fairness. There is some evidence that customers do pay attention to the prices paid by other customers (e.g., senior citizens, frequent fliers, club members etc.). The

differentiated pricing strategies used by marketers is perceived to be unfair by customers. Reference price is any price that a consumer uses as a basis for comparison in judging another price. Tensile price claims like save 10 to 40%, save upto 60%, save 20% or more, are used to promote a range of price discounts for a product line etc. Objective price claims provide a single discount level say save 25%.
Perceived Quality

Consumers often judge the quality of a product on the basis of a variety of informational cues that they associate with the product. Some of these cues are intrinsic to the product, others are extrinsic. Perceived Quality of Products: Cues that are intrinsic concern physical characteristics of the product itself, such as size, color, flavor, or aroma. Although consumers say that they buy a paricular brand because of its superior taste, they are often unable to identify that brand in blind taste tests. Consumer reports found that consumers often cannot differentiate among various cola beverages and base their preferences on such extrinsic cues as pricing, packaging, advertising, and even peer pressure. In the absence of intrinsic cues, consumers often evaluate quality on the basis of extrinsic cues-cues that are external to the product itself, such as price, brand image, manufacturers image, retail store image, or even the country of origin. Example: Japanese cars are excellent, German engineering is the best.

Perceived Quality of Services: It is more difficult for consumers to evaluate the quality of services than the quality of goods. This is because services are intangible, perishable, variable, inseparable, etc. Because of the above reasons, marketers try to provide tangible clues to consumers. Example: In evaluating a doctors services, they note the quality of the office and examine room furnishings, the number and source of framed degrees on the wall, the professionalism of the staff, etc. All contribute to the consumers overall evaluation of service quality. Marketers also try to standardize their services in the light of variability. This is done to provide consistence of quality. There is little opportunity to correct a defective service being delivered because of inseparability. Goods can be checked before delivery but services cannot. Thus a poor haircut being delivered cannot be instantly checked. Some people believe that a consumers evaluation of service quality is a function of the magnitude and direction of the gap between the customers expectations of service and the customers assessment (perception) of the service actuallydelivered. Example: A brand new graduate student may have certain expectations about the quality of his professors, the richness of classroom discussions, library etc. he will view the university as a good or bad service provide according to the university meeting/exceeding his expectations or not. The SERVQUAL scale was developed to measure the gap between customers expectations of services and their perceptions of the actual service delivered. It is based upon the following five dimensions: tangibles, reliability, responsiveness, assurance and empathy. Another scale that measures service quality, called SERVPERF, is based on the consumers perception of service performance. Recent research divides the dimensions along which consumers evaluate service quality into two groups: the outcome dimension ( which focuses on the reliable delivery of the core service) and the process dimension ( which focuses on how the core service is delivered).

The process dimension provides the service provider to exceed customer expectations. Example: Federal Express provides the same core service as other couriers (the outcome dimension), it provides a superior process dimension through its highly advanced tracking system which can provide customers with instant information about the status of their packages. Researchers have tried to integrate the concepts of product quality and service quality into an overall transaction satisfaction index, on the basis that all product i.e., tangible purchases contain some element of service. Example: Satisfaction with a retail purchase would include evaluation of the helpfulness and efficiency of the salesperson. Price/Quality Relationship: Consumers do rely on price as an indicator of quality. Products with low prices may be interpreted as goods with inferior quality, though in reality it may not be true. For this reason, it is necessary to include other information associated with perceived quality (e.g., brand name and specific attribute information) to counter any negative perceptions of low quality associated with lower price. Consumers use price as a surrogate indicator of quality if they have little information to go on, or if they have little confidence in their own ability to make the choice on other grounds. Retail Store Image: Retail stores have their own image in the minds of the consumers so as to indicate about the quality of goods carried and where customers should shop. In order to create a distinctive identity, many retailers put their own labels on the clothes of popular designers. Such private-label clothing

has been successful because consumers perceive high quality and value in clothing that beras a well-known retail name. A study of retail store image based on comparative pricing strategies found that consumers tend to perceive stores that offer a small discount on large number of items (i.e., frequency of price advantage) as having lower prices overall than competing stores which offer larger discounts on a smaller number of products (i.e., magnitude of price advantage). Peoples perceptions are influenced by ambient factors i.e., the people within the stores environment, the number, type, and behaviour of other customers and sales personnel. Manufacturers Image: Consumer imagery also extends to producers themselves. Manufacturers who enjoy a favourable image generally find that their new products are accepted more readily than others. Research suggests that people have favourable perceptions of Pioneer Brands (the first in a product category), even after Follower Brands become available. Brand Image: Brand image is defined as the set of associations linked to the brand that consumers hold in memory.Positive brand image is associated with consumer loyalty, consumer beliefs about positive brand value, and a willingness to search for the brand. A positive brand image helps the consumer to be favourably inclined toward future brand promotions and to resist competitors marketing activities. Advertising plays an important role in establishing a favourable brand image. Advertized products are often perceived to be of higher quality than nonadvertized brands.

Frequent short-term price promotions affect the brands long term future image.

Perceived Risk
Perceived risk is defined as the uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions. Types of Perceived Risk: Perceived risk is of the following types. 1. Functional Risk: The product will not perform as expected. Example: Will the new electric car operate a full day without needing to be recharged? 2. Physical Risk: The risk to self and others that the product may pose. Example: Is cellular phone safe or does it emit harmful radiation? 3. Financial Risk: The product will not be worth its cost. Example: Will art school really help me become an artist? 4. Social Risk: The poor product choice may result in social embarrassment. Example: Will the new deodorant really eliminate perspiration odor? 5. Psychological Risk: A poor product choice will bruise the customers ego. Example: Will I really be proud to invite friends to this house? 6. Time Risk: The risk that the time spent in product search may be wasted if the product does not perform as expected. Example: Will I have to go through the shopping effort all over again? Perception of Risk Varies: Consumer perception of risk varies depending upon the person, the product, the situation, and the culture.

 The amount of risk perceived depends upon the specific consumer. Some tend to perceive high degrees of risk in various consumption situations (high risk perceivers); others tend to perceive little risk (low risk perceivers). High risk perceivers are often described as narrow categorizers because they limit their choices to a few safe alternatives. Low risk perceivers have been described as broad categorizers because they tend to make their choices from a much wider range of alternatives. An individuals perception of risk varies with product categories. Example: Consumers are likely to perceive a higher degree of risk in the purchase of a large screen television set than in the purchase of a cordless telephone. The degree of risk perceived by a consumer is also affected by the shopping situation. Example: Traditional retailer, mail order, catalogs order, door-to-door saleperson, etc. Not all people around the world exhibit the same level of risk perception. For this reason, marketers who do business in several countries cannot generalize the results of consumer behaviour studies conducted in one country to other countries without additional research. Example: Americans and Indians portray different levels of risk tolerance.

How Consumers Handle Risk?

Consumers seek information. Consumers are brand loyal. Consumers select by brand image.

 Consumers rely on store image. Consumers buy the most expensive model. Consumers seek reassurance (Money-Back Guarantees, Test Drives, Pre-purchase Trials, Laboratory Test Results, Warranties, etc.)

The concept of perceived risk has major implications for the introduction of new products. Because high risk perceivers are less likely to purchase new or innovative products than low risk perceivers, it is important for marketers to ptovide such consumers with persuasive risk-reduction strategies; such as a well-known brand name, distribution through reputed retail outlets, informative advertising, publicity stories in the media, impartial test results, free samples, and money-back guarantees.