MBA_sem3 _511_Consumer Behaviour

MASTER OF BUSINESS ADMINISTRATION SPECIALISATION (MARKETING MANAGEMENT) SEMESTER-III CONSUMER BEHAVIOUR MBA511

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &TourismManagement) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease EdtechLimited www.teamleaseedtech.com CONTACT NO:01133002345 2 For: CHANDIGACRU HIDOUL NSEILVF ELERARSNIITNGYMATERIAL (SLM) Institute of Distance and Online Learning

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INDEX UNIT - 1 Consumer Behaviour and Consumer Research ....................................................... 4 UNIT - 2 Marketing Segmentation and Positioning ........................................................... 185 UNIT - 3: Consumer Motivation ......................................................................................... 37 UNIT - 4: Consumer Personality ......................................................................................... 62 UNIT - 5 Consumer Perception ......................................................................................... 818 UNIT - 6 Consumer Learning and Consumer Behaviour ................................................... 105 UNIT - 7 Consumer Attitudes ......................................................................................... 1290 UNIT - 8: Consumer Behaviour and Marketing Communications...................................... 228 UNIT – 9 Cultural Influences on Consumer Behaviour ................................................... 1640 UNIT - 10: Social Class and Group Influences on Consumer Behaviour ......................... 3657 UNIT - 11: Diffusion of Innovation..................................................................................... 61 UNIT - 12: Consumer’s Decision and the Decision Models............................................... 773 UNIT - 13: Consumer Decision Making Process I ............................................................. 202 UNIT - 14: Consumer Decision Making Process II............ Error! Bookmark not defined.21 UNIT - 15: Organizational Buying Behaviour ................... Error! Bookmark not defined.29 4 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1 CONSUMER BEHAVIOUR AND CONSUMER RESEARCH Structure 1.0 Learning Objectives 1.1 Introduction 1.2 Consumer Behaviour 1.2.1 Definition 1.3 Consumer and Customers 1.4 Buyers and Users 1.4.1 Organizational as Buyers 1.5 Consumer Behaviour and its Applications in Marketing 1.6. Consumer Research Process 1.7 Summary 1.8 Keywords 1.9 Learning Activity 1.10 Unit End Questions (Descriptive and MCQ) 1.11 References 1.0 LEARNING OBJECTIVES After studying this unit, student will be able to:  Define consumer behaviour.  Distinguish between consumer & customer and buyer & user.  Know the origin and developments in the field of consumer behaviour.  Learnmarketing strategy and consumer behaviour.  Explain different consumer research process and methods. 1.1 INTRODUCTION Consumer behaviour is a highly sought-after study. It indicates that it is not just about buying, rather more than it. The entire process is very complex and having many perspectives 5 CU IDOL SELF LEARNING MATERIAL (SLM)

thereby consider of aspects such as acquisition and consumption including the disposal. We, as consumers, exhibit very major differences in our buying behaviour and play an important role in local, national, or international economic conditions. There is one common aspect among us is we are no doubt consumers at the first sight. Therefore, the business firm comes to fore to fulfil the needs of consumers in one way or another. After all, we are consumers, and it has nothing to do with a consumer belongs to an urban centre or rural area. Similarly, there is no such discrimination in terms of gender, economic status, and literate, among others. We consume regularly for the basic things like food, cloth, and shelter. So is our consumption to meet other needs like education, healthcare, and entertainment. Right from the brooms to toothbrushes to vehicles, and other luxuries, we consume on a regular basis. Organizations better understand the pulse of consumer behaviour. Accordingly, a market strategy is developed to satisfy the consumers along with to earn certain profit. Our consumption related behaviour influences the development of technology and introduction of new and improved products and services. To get success in a dynamic marketing environment, marketers have an urgent need for learning and anticipating whatever they can about consumers. Organizational objectives can be better accomplished with ease if they have better insights on the needs of the consumers. Marketers require every bit of information on consumers related to their needs and their change in buying pattern. It also includes the way consumers spend on entertainment and related aspects. They also need to comprehend personal and group influences which have a significant impact on consumer decision-making process. 1.2 CONSUMER BEHAVIOUR The study on consumer behaviour takes into cognizance of spending on resources like money, time, and effort. There are two aspects involved in the consumer behaviour. One is the purchase activity; we can observe it. Another aspect is the decision process might contain complex variables which we cannot observe or realize. The study involves what consumers’ buy, the reason for buying, the way they buy, time of buying, the place of buying and how often they buy and dispose the product after use. 1.2.1 Definition Consumer behaviour involves a systematic process of making buying decisions of the customers. The buying process consists of the following steps: Nature and Scope of Consumer Behaviour 6 CU IDOL SELF LEARNING MATERIAL (SLM)

 Need identification to buy the product.  Information search relating to the product.  Listening and evaluating the alternative.  Purchase decision.  Post purchase evaluation by the marketer. Scope of Consumer Behaviour  Consumer behaviour and marketing management: Effective business managers realize the importance of marketing to the success of their firm. There is a need of firm understanding on consumer behaviour in order to attain success for a marketing program. It is basic for the Marketing concept, a significant orientation as perceived by marketing managers. The key to the Marketing concept revolves around customer needs and wants including the integrated strategy of a company.  Consumer behaviour and non-profit and social marketing: Non-profit organizations are not far behind when it comes to target the right consumers. For instance, government agencies, universities, religious and charitable institutions are active in marketing their respective services. These organizations appeal to the public in case they need help for some social causes. By doing so, they ensure the problem in the society is sorted out. It clearly interferes that consumer behaviour as well as decision-making process are inevitable to successfully execute any social cause.  Consumer behaviour and government decision making: In recent times, it has been observed that consumer behaviour principles have relevance to decision making by government. As a result, two significant activities have got more prominence: i. Government services: It is moreover as per the government provision meant for public services. Here the beneficiaries are the consumers or users. ii. Consumer protection: There are multiple government agencies are relentlessly working to regulate business practices with the intention of protecting the welfare of consumers.  Consumer behaviour and demarketing: It is ample clear that consumers are going through the scarcity period where there is high level of depletion of natural gas and water. So, the 7 CU IDOL SELF LEARNING MATERIAL (SLM)

effort is to make awareness campaign for conservation of natural sources instead of consumption. In certain circumstances, consumers are appealed to reduce their consumption if they are harmful goods. The classic examples are refraining from drug abuse and gambling. So, these initiatives are taken by government agencies, not for profit organizations, and related private entities.The term \"demarketing\" here refers to all the endeavours on the part of government to reduce consumption of harmful product or services.  Consumer behaviour and consumer education: Consumers stand to get benefit directly if they try to understand their own behaviour. It happens either at individual level or in group involving formal educational programs. For example, consumers come to aware that they spend a huge amount on grocery products. This indicates impulse purchasing behaviour of the consumers and not as per the according to pre-planned shopping. It happens when consumers make plan to save money. Generally, marketers influence the purchasing behaviour of consumers. Therefore, consumers must introspect on their own purchasing behaviour. The Interdisciplinary Nature of Consumer Behaviour There are various factors or disciplines which affects consumer behaviour. These interdisciplinary dimensions can change Consumer Behaviour and their buying decisions. Five interdisciplinary dimensions of consumer behaviour 1. Economic demand, supply, income, purchasing power. 2. Psychology needs, motivation, personality, perception, attitudes, learning. 3. Sociology society, social class, power, esteem, status. 4. Socio psychology group behaviour, group influences, conformity to group norms, role leader. 5. Cultural anthropology beliefs, values, attitude towards wealth, joint family system, caste system. 1.3 CONSUMER AND CUSTOMERS Consumer The definition of a consumer could get subjective as well as tricky sometimes. For any business, the consumer is the one who utilizes the service or consumes the goods. However, points to be noted that a customer can be considered as a consumer in some circumstances. It can be simplified further that anybody having no option to sell the product or service again, 8 CU IDOL SELF LEARNING MATERIAL (SLM)

then he or she is said to be a consumer. So, the end-user of the product or service is a consumer in real sense. Customer There is hardly any difference between the definition of a customer and a consumer. He or she who makes purchase for a product or service through a monetary transaction. Keep in mind that a customer does not remain a customer always. This aspect can be properly explained with an example. Consider a mother purchased a few toys for her children. Here the mother is said to be a customer, whereas the children as the consumers. 1.4 BUYERS AND USERS The person buying a product might not be the immediate user. Similarly, a person purchasing the product might not be a decision-maker. For instance, the father purchases a bicycle for his son who requires it to go to school. Here the son is the actual user. Likewise, a father buys toothpaste, which is used by the whole family. Here the family is the user. In the same vein if the mother buys a dress for her 3 years old daughter, then she is the decision maker, and the daughter is the user. On the other hand, when a couple buys a car, the decision makers are wife and husband because it is a shared decision. Hence, it could be inferred that the buyers of the product are not users always. Further, they may not be the actual decision-makers. 1.4.1 Organizational as Buyers A major chunk of the market involving goods and services is essentially attributed to organizations rather than individual and buyers. Generally, organizational buyers are making buying decisions for their respective companies seems sophisticated as compared to ordinary consumers. Nonetheless, organizational buyers are prone to risk averse, most of the times.There is an element of risk involved to go with a new supplier provided the goods are proven to be quality in nature. Here the risk factor is higher than losing a better deal. Organizational buyers could be categorized into various forms. Resellers could be wholesalers or retailers, where they buy from one organization to resell to another entity. For instance, major grocery chains at times deal with the manufacture directly and resell to end- consumers. Wholesalers too might sell the products to retailers, who later sell to consumers. Producers also follow the same process thereby buy products from the sub-manufacturers for creating a finished product. Consider of computer manufacturers, they are not manufacturing the parts. Instead, buy hard drives, monitors, motherboards, cases, keyboards, and related 9 CU IDOL SELF LEARNING MATERIAL (SLM)

components from other and get those assembled to create a finished product. Governments also make a great deal for many things. For instance, the military requires huge supply to feed its troops as well as to equip them with arms and ammunitions. This gives an indication that large institutions require huge quantities thereby buy in bulk. UCR in this respect sets a clear stand of buying thousands of paper reams every month. 1.5 CONSUMER BEHAVIOUR AND ITS APPLICATIONS IN MARKETING As per the marketing concept, the marketer must have the competency to assess needs of the target segment and ensure to provide requisite product and service effectively as well as efficiently than competitors. This is a philosophy that revolves around customers, in which the aim is to understand the needs and wants of customers, provide accordingly the product and service to derive customer satisfaction; “make what you can sell” not “sell what you make.” A study on consumer behaviour assists in formulating right marketing strategies for a firm while keeping into cognizance of the consumer and his or her environment. There are so many applications. Some of the prominent ones are: Analyse the Environment The knowledge on consumer behaviour could be utilized in finding out opportunities and counter threats. A study conducted in this regard reflects the opportunities as newer customers, unfulfilled needs and wants including newer markets. The threats can be handled through developing and implementing right marketing strategies that goes well with the environment. The need is to have a dynamic marketing strategy that keeps on evolving even in the case of the uncertainty in the environment. As far as environmental uncertainty is concerned, its nature is complex and dynamic. It is complex because of the many factors involved in the environment like number, strength, and interrelatedness. Dynamic is about adapting to the changes in the environment at the earliest. Segmentation, Targeting and Positioning The study on consumer behaviour can be applicable in the areas of market segmentation, selecting the target market and positioning the product or service offering. In order to ensure a marketer gets success as well as sustain in the dynamic environment, the requisite is to 10 CU IDOL SELF LEARNING MATERIAL (SLM)

identify the target segment, understand the needs, provide the right offer on product and service, and communicate regarding the offer.  Segment the market: The marketer has to identify potential customer groups having needs and wants and classify them as per the descriptive characteristics and behavioural dimensions.  The descriptive characteristics depend on a lot of aspects like age, gender, occupation, income, education, family size and its life cycle, gender, religion, lifestyle, personality, generation, geography, and nationality including social class. The behavioural dimensions take forms of benefits, uses, use occasion, usage rates, and loyalty status.  Select target market: The marketer needs to select more than one market to enter. The targeted segment(s) must be viable; here the need is to have a right balance between the market attractiveness and the objectives and resources of the company. The marketer needs to assess the viability of a segment on the basis certain criteria such as measurability, accessibility, and differentiability and action ability, among others.  Position the product offering in the mind of the customers: The marketers must have the potential to communicate the distinct or unique characteristics of the product. Designing the Marketing Strategy There is a relationship between the Consumer and the Environment in one hand and the Marketing strategy.  Consumer: The consumer of course has his/her needs and wants including product preferences. This gives an indication that there is a relationship among the aspects like Cognition (knowledge on products and alternatives), Affect (feelings of favourableness and unfavourableness) and Behaviour (action: buy or not to buy).  Environment: This indicates about forces related to the environment, that make the environment very complex and dynamic.  Marketing Strategies: This is about goal setting and achieving those through a right marketing mix. The need for designing the Marketing Strategy is to influence consumers (Cognition, Affect and Behaviour) and get influenced by them. However, it must be flexible and evolving with changes as per the needs and wants of customers; and also changes in the environment where it operates. The knowledge of consumer behaviour could be implemented to develop a “best fit” between needs and wants of consumer, the environment where it remains operational, and the goals and objectives of the firm. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

Designing the Marketing Mix The study of consumer behaviour can be applicable to design the 4 Ps.  Product: The term product contains both tangible products and intangible services. The issues for addressing contain name of the brand, size, features, shape, labelling, accessories, packaging, and supplementary products, sale, and services term, and after sales, among others.  Price: This is about the price of the product on offer. The prominent components are type of payment and its terms and conditions, discounts, price sensitivity, variable prices and reaction of customers, imagery (price increase, price decrease and customer reaction).  Place and Distribution: This is about the marketing channel and decisions related to choose of channel (direct or indirect), accessibility and availability of product on offer, location, wholesale, retail, logistics etc.  Promotion: It contains marketing communication and the significant issues containing decisions on communication or promotion mix, the media strategy and related message (the content, context, and appeal). Application in Governmental and Non-profit Organizations and Social Marketing Even the knowledge on consumer behaviour matters both in Governmental and Non-profit Organizations including Social Marketing. Governmental as well as Non-profit Organizations have their societies that are considered as customers. The objective here is to understand their needs so as to serve much to their satisfaction. Social marketing is dissemination of ideas. Any such attempt with an aim to enhance the social upliftment and moral support could be fruitful, provided there is better understanding on the exact requirement of the consumers who are the public and society. 1.6 CONSUMER RESEARCH PROCESS Each individual has his/her needs and wants. Hence consumers are said to be heterogeneous. Nonetheless, there are customers having identical needs. So, they are counted as homogenous even though they remain in clusters and appear heterogeneous from outside. These group of customers are referred as segments. Marketers need to identify segments and target potential segments to meet the needs of the marketing concept. It is feasible when marketers zero on the needs and wants of customers. Then accordingly product and service need to be offered to meet the satisfaction of customers more efficiently and effectively than the competitors. In 12 CU IDOL SELF LEARNING MATERIAL (SLM)

order to understand and predict consumption patterns and behaviours within segment(s), market research becomes essential. 1.7 SUMMARY  Consumer behaviour involves understanding the set of decisions (what, whether, why, when, how, where, how much, and how often) that an individual or group of consumers makes over time about the acquisition, use, or disposition of products, services, ideas, or activities.  The psychological core exerts considerable influence on consumer behaviour.  A consumer's motivation, ability, and opportunity affect his or her decisions and effect what a consumer is exposed to, what he or she pays attention to, and what he or she perceives. These factors also affect how a consumer categorizes or interprets information, how he or she forms and changes attitudes, and how he or she forms and retrieves memories.  Consumer behaviour is also affected by the consumer's culture and by the typical or expected behaviours, norms, and ideas of a particular group. Consumers belong to a number of groups, share their cultural values and beliefs, and use their symbols to communicate group membership.  Consumer behaviour can be symbolic and express an individual's identity. In addition, consumer behaviour is indicative of how forcefully or quickly an offering can spread throughout a market.  Marketers study consumer behaviour to gain insights that will lead to more effective marketing strategies and tactics. Ethicists and advocacy groups have showed much interested in studying consumer behaviour like the makers of public policy and regulators needing consumer protection from unsafe offerings.  Both consumers and society can be benefitted as marketers get aware of making products user-friendly and environment friendly.  Finally, studying consumer behaviour helps marketers understand how to segment markets and how to decide which to target, how to position an offering, and which marketing-mix tactics will be most effective. 1.8 KEYWORDS Consumer Behaviour: The way consumers make purchasing decisions as per the available resources. 13 CU IDOL SELF LEARNING MATERIAL (SLM)

Consumer: Anyone involved in the process of purchasing. Customer: He or she is a regular purchaser form a certain store/ company. Organizational Consumer: A consumer buys goods and services for profit and non-profit organizations. Marketing:It is the activity, group of institutions, and processes for developing, communicating, and delivering offerings having value for clients, customers, partners including the society. 1.9 LEARNING ACTIVITY Switzerland-based Swatch Group was founded in 1983, popularly priced quartz watches made by Japanese firms had taken considerable market share from traditional Swiss watch brands. Swatch has great ideas for recapturing the market share. The idea was to provide eye- catching watches on offer that were functional and fashionable, yet affordable. Swatch is known for being the world leader in watch market. Its credibility could be attributed to the fact of having more than a dozen brands and 600 stores across the globe. It has also witnessed increase in annual sales to $5 billion, even the global economic conditions are not so conducive. As a matter of fact, luxury watches constitute more than half of the profit earned by Swatch. Now this company is making plans to offer fine-jewellery accessories under the ambit of its iconic brand. Nonetheless, there is a severe l, competition from high-end brands like Patek Philippe, Cartier, Piaget, and Bulgari over the years. So, the obvious question that strikes to mid that will Swatch be able to survive and sustain in the competitive environment? 1. What role does the consumer’s culture seem to be playing in Swatch’s marketing strategy? ………………………………………………………………………………………….. …………………………………………………………………………………………… 2. Explain, in terms of internal consumer processes, why Swatch puts so much emphasis on marketing communications. ………………………………………………………………………………………….. …………………………………………………………………………………………… 3. Under what circumstances would the decision to buy a Swatch watch be a high-effort decision? A low-effort decision? 14 CU IDOL SELF LEARNING MATERIAL (SLM)

………………………………………………………………………………………….. …………………………………………………………………………………………… 1.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. How is consumer behaviour defined? 2. What three broad categories of consumer activity do marketers and researchers study in consumer behaviour? 3. What are some of the factors in the psychological core that affect consumer decisions and behaviour? 4. What are some of the external processes that influence consumer decisions and behaviour? Long Questions 1. Explain Consumer behaviour and its applications in marketing 2. Describe the Scope of Consumer Behaviour: 3. Describe the purpose of Segmentation, targeting and positioning. 4. Explain the Interdisciplinary Nature of Consumer Behaviour. 5. Explain the concept of customer and consumer how are they related? B. Multiple Choice Questions: 1. Consumer Behaviour may be defined as: a) The interplay of forces that takes place during a consumption process, within a consumers’ self and his environment. b) Decision process and physical activity during consumption process. c) A study that analyses the stages of evaluating, acquiring, using, and disposing of goods and services d) All of these 2. Consumer behaviour focuses specifically on the: a) Initiator 15 CU IDOL SELF LEARNING MATERIAL (SLM)

b) User c) Buyer d) Decider 3. Consumer behaviour focuses specifically on the: a) Initiator b) User c) Buyer d) Decider 4. Which of the following is true? a) Consuming refers to decisions about buying products. b) Consumer behaviour is about making people buy things. c) Consuming refers to the ways in which people use products. d) All of these 5. Which of the following is NOT true? a) Purchasing behaviour relates strongly to environmental situation. b) Purchasing behaviour occurs independently of segmentation issues. c) Purchasing behaviour is basic to meeting our needs. d) All of these Answers: 1. d) 2. c) 3. c) 4. b) 5. c) 1.9 REFERENCES Reference Books:  Solomon, Michael R., Consumer Behaviour: Buying, Having and Being, PHI Learning Pvt. Ltd., New Delhi.  Assel Henry, Consumer Behaviour, Cengage Learning, New Delhi.  Majumdar, R. Consumer Behaviour: Insights from the Indian Market, PHI Learning Pvt. Ltd., New Delhi. Textbooks: 16 CU IDOL SELF LEARNING MATERIAL (SLM)

 Schiffman L.G. and Kanuk L.L., Consumer Behaviour, Pearson Education, New Delhi.  Hawkins, D. I. & Best R. J. and Coney, K.A. and Mookerjee, A, Consumer Behaviour- Building Marketing Strategy. Tata McGraw Hill, New Delhi. Websites:  https://www.economicsdiscussion.net/consumer-behaviour-2/perception-in-consumer- behaviour/31874  https://www.researchgate.net/publication/304194789_Attitude_Formation_and_Chan ge  https://kpu.pressbooks.pub/introconsumerbehaviour/chapter/sensory-systems/ 17 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2 MARKETING SEGMENTATION AND POSITIONING Structure 2.0 Learning Objectives 2.1 Introduction 2.2 Bases for Segmentation 2.3 Product Positioning 2.3.1 An Introduction 2.3.2 Positioning Strategy 2.3.3 Positioning Approaches 2.3.4 Positioning Errors 2.4 Consumer Motivation 2.5 Summary 2.6 Keywords 2.7 Learning Activity 2.8 Unit End Questions (Descriptive and MCQ) 2.9 References 2.0 LEARNING OBJECTIVE After studying this unit, student will be able to: ● Learn the concepts of market targeting, market segmentation and market positioning. ● Analyse and explain the factors affecting the determination of target market. ● Explain the concept of the marketing mix in business scenarios and business planning. ● To apply marketing strategies to goods. 2.1 INTRODUCTION There is a broad framework in marketing known as segmenting, targeting, and positioning (STP) that summarizes and ensure the market segmentation process gets simplified. Market 18 CU IDOL SELF LEARNING MATERIAL (SLM)

segmentation involves a process, where groups of buyers are categorized and profiled within a market in accordance with a range of variables responsible for determining the characteristics and trend in the market. The processes of segmentation, targeting and positioning are as per the chronological order of market segmentation.  Segmentation requires identification of the market to segment; identification, selection, and application of bases for using in the segmentation; and profile development.  Targeting is about the process of identifying the valuable from the segmentation stage, generally, the most profitable ones are identified for the business.  Positioning is the last process, and it is more about business-orientation stage, where the business needs to evaluate its competitive edge and position itself in the minds of consumers in terms of better option in these categories. Figure 2.1 STP Model There is an ongoing debate over the market segmentation over the years. Here researchers have their study on considering the right variables when it comes to the division of the market. Emphasis has been given to factors like social, economic, and individual like brand loyalty. Along with Philip Kotler proposed variable have been given importance like geographic, demographic, psychographics, and behavioural variables. Hence, it gives an inference that segmenting a market therefore is a process of organizing the market in various so that a business could leverage the competitive advantage. However, they should avoid undue fragmenting the market as the diversity might be an issue to serve the smaller markets 19 CU IDOL SELF LEARNING MATERIAL (SLM)

with an intent to get profits. The characteristics marketers vie for aspects like measurability, sustainability, accessibility, and action ability.  Measurability – It is about studying the size, purchasing characteristics and value needs of a specific segment.  Accessibility – The potential to communicate with the segment effectively.  Sustainability – The segment is highly profitable so that it could differentiate from the rest of segments in the market and at the same time maintains the business value.  Action--ability – It is the potential of an organization to develop a competitive advantage through its offering in the certain segment of the market. Broadly, approaches involving segmenting a market could be categorized as a discovery approach and an analytic approach. Each approach has its value for a business and market.When it comes to an analytic approach, it is research based and data-based from which two sets of information arise, and they are used for segmenting the market. The advantage of having two approaches is that they shape the business to earn profit from a segment, and the behaviour tendencies it portrays. The first approach enables towards future growth of the segment and let us know whether the investment in this regard is justifiable. Hence it is done well in advance.The second approach revolves around the observation related to the buying behaviours of the specific segment and is based on primary research. The discovery approach is very much applicable to a market having a low customer base, whereas the process of discovering segments is as per the interest in the offer or identical offer the business might have. Due to this, a discovery-based approach takes too much time for ascertaining the segments inducing profits. Both approaches have the potential to get benefits from elements of the another. If the two approaches work in tandem to earn profit from a specific segment. Positioning involving the 'STP' process comes at the end stage. Here the emphasis is given on the way a customer has his/her view on product or service as compared to the competitors. Then only their would-be high possibility of getting competitive advantage over others in the competitive market. Hence, it gives a clear indication that the perception of customers matters when it comes to brand positioning. Three key positioning matters a lot to a brand when it comes to get the competitive advantage. Those are functional positioning, experimental positioning, and symbolic positioning. The highlight of the functional Positioning is on those aspects of the products/services that have the potential to meet the needs of consumers.Symbolic Positioning on the other hand is on the basis of the 20 CU IDOL SELF LEARNING MATERIAL (SLM)

characteristics of the brand to meet the self-esteem of the customers. Finally, the experiential positioning revolves around the brand characteristics responsible for stimulating the sensory or getting attached with the customers at the emotional level. All these three aspects combined together paves way for positioning the brand with the due competitive edge over others. Now it can be stated that positioning ensures better value than the competitors and enables communicating this differentiation to the consumer effectively. Briefly market segmentation involves a process, where groups of buyers in a market is categorized and profiled as per the range of variables that determine the characteristics and tendencies in a market. The processes related to segmentation, targeting and positioning are in sequence for market segmentation. 2.2 BASES FOR SEGMENTATION Market segmentation is a process in which a target market is divided into smaller and better- defined categories. Here customers and audiences are subjected to segment in groups having identical characteristics like demographics, needs, interests, and location. Market segmentation let us know customers, identifies the requirement in the market segment, and determines the way one can meet those needs with respect to one’s product or service. This assists in designing and executing firm marketing strategies at the all the levels of hierarchy.Market segmentation has four bases:  Demographic segmentation  Psychographic segmentation  Behavioural segmentation  Geographic segmentation Demographic Segmentation Demographic segmentation has got the recognition and the most sought-after market segmentation. It indicates a statistical data forming a group of people. Have a few examples on Demographic Market Segmentation like Age, Gender, Education, Location, Income, Family Situation, Ethnicity etc. Psychographic Segmentation Psychographic segmentation breaks down audiences and customers through certain factors having relation to their characteristics and personalities. Now have a look at the examples of Psychographic Market Segmentation: Personality traits, Attitudes, Values, Interests, 21 CU IDOL SELF LEARNING MATERIAL (SLM)

Psychological influences, Lifestyle, Subconscious and conscious beliefs, Priorities and Motivations. Behavioural Segmentation The focus of demographic and psychographic segmentation is on a customer, whereas behavioural segmentation makes emphasis on the way the customer acts. Examples of Behavioural Market Segmentation are: Purchasing habits, User status, Spending habits, and Brand interactions, among others. Geographic Segmentation The simplest form of market segmentation is geographic segmentation. It classifies customers on the basis of geographic borders in terms of ZIP code, City and Country. Besides locations and their climates, urban or rural also are included in this classification. 2.3 PRODUCT POSITIONING 2.3.1 Introduction Product positioning is closely related to market segment focus. Product positioning involves creating a unique, consistent, and recognized customer perception about a firm’s offering and image. A lot of aspects are taken into consideration to position a product or service such as attitude/ benefit, use/ application, user, price, class, and level of quality. Product positioning is creating brand image among the consumers related to the nature of the product the benefits accruing from it.Positioning actually compliments the segmentation. Means the segmentation finds out people from those segments who are having identical needs and develops products to fulfil the needs of each segment. On the other hand, positioning conveys information related to the products again back to the segments as per the requirement. The position of a product depends on the way potential buyers have the perception on the product. Positioning is in context to the position of competitors. Al Ries & Jack Trout had coined this term in 1969 in their research paper “Positioning” which is a game played by people in toddy’s me-too marketplace involving the publication of industrial marketing. Positioning is all about perception in the minds of the people about the target market. It considers of the aggregate perception, the market has for a specific company, product, or service with respect to competitors’ perceptions in the identical category. It happens irrespective of the management of the company is proactive, reactive, or passive when it 22 CU IDOL SELF LEARNING MATERIAL (SLM)

comes to the evolvement of a position. Nonetheless, a company can make positive impact on the perceptions of the customers through enlightened stratifications. As per the report published in the Journal of Advertising Research. “Product Positioning indicates about the functional objective attributes of a brand in context to other brands. It reflects the characteristic of the product and subsequent functional features”. As per the definition by Kotler, “Positioning is about creating an image and the intention of getting distinctive place in the mind of the people in a target market.” Take an example of a drink that could be presented and positioned in the market as a health drink beneficial for growing children. Similarly, a drink can be positioned as a geriatric drink for the people in old age group or a breakfast drink as per the requirement. This is how a positioning stance for a product is maintained but it remains for a short period only. Hence positioning need is modified as per the changing needs of the customers. Resultantly the following benefits accrue through product positioning: To Make Entire Organisation Market-Oriented Product positioning in a way forms a part of the marketing philosophy. Its purpose is to identify major aspects of product to match them with consumers effectively than competitions. This philosophy leads to the whole organisation market oriented. To Cope with Market Changes The task of a manager does not end with the positioning of the product. Rather he/she needs to observe the market. As and when new developments take place in the marketplace, the need is to identify contextual innovative competitive advantages to meet the changing market expectations. Thus, the manager must remain active and alert, and also be dynamic. To Meet Expectation of Buyers Usually, the advantages that need to be channelized are decided as per the target buyers’ expectations. This is how product positioning helps in realizing the expectations of consumers. To Promote Consumer Goodwill and Loyalty Systematic product positioning ensures the name of the company its product as well as brand value remain high in the market. It helps in getting recognition for the brand. The company still can generate goodwill in the market to win the loyalty of customer. To Design Promotional Strategy 23 CU IDOL SELF LEARNING MATERIAL (SLM)

In this regard, needy promotional campaign can be developed. However, it should be based on the specific advantages to be communicated and the selection of appropriate means for promoting the product. To Win Attention and Interest of Consumers Product positioning indicates about the advantages relevant for the consumers. Thus, when the advantages are promoted by means of proper advertising, it draws the attention of consumers for sure. To Attract Different Types of Consumers Each consumer has his or her expectations for a product. Some consumers look for the durability aspect in a product. Similarly, some look for unique features. Some need novelty or safety or low price likewise. A company thereby by promoting various competitive advantages can draw the attention of potential buyers. To Face Competition This is basic for product positioning. Company here can respond aggressively to the competitors by virtue of which competitive strength will be enhanced. To Introduce New Product Successfully Product positioning enables a company to launch a new product in the market. Then it can present superior advantages of the product to create a niche in the market. To Communicate New and Varied Feature Added subsequently Whenever a company brings changes to its qualities or features of the existing products, then it shows improvements with respect to positioning the product against the competitors. Product positioning actually helps in enhancing the competitive strength of a company. Because consumers consider the pros about the product before buying. This is where product positioning comes to fore and gives the edge over the competitors. Further, it gives an advantage to the consumers in selecting the right product. 2.3.2 Positioning Strategy Positioning strategy for a product is key for giving boost to promotional technique. There are numerous ways to conceive the strategy and its implementation. It could be derived from factors like competition in the market, attributes, target consumers and characteristics involving the product. Have a look at the types of positioning strategy: 1) Using Product Characteristics or Customer Benefits 24 CU IDOL SELF LEARNING MATERIAL (SLM)

The highly sought-after positioning strategy is associating an object with the characteristics of a product customer benefit. Take example of car manufacture companies like Honda and Toyota. Both companies have given utmost importance to economy and reliability thereby become the leaders in selling in higher numbers. On the other hand, Volvo has given top priority to safety and the aspect of durability. No doubt, it is one of the ways to showcase superiority of the product. However, consumers have the tendency to go by the features in a car and how it would benefit them. 2) Positioning by Price and Quality The characteristics of a product also matters in terms of price and quality and consumers very much look into these. There are many instances related to products, where the brands make effort intentionally to provide more service and features. At the same time, the manufacturers put higher prices for their products to compensate for higher price and send across a message they are selling the top-notch quality products. On the contrary, there are certain manufacturers who present themselves selling products at reasonable price but no such attempt favouring quality products. 3) Positioning by Use or Application One more way for communicating a brand image is to ensure the product with proper use.Products no doubt have numerous positioning strategies, even if the higher number leads have their issues and risks. Most of the times, a positioning-by-use strategy gives defines a second/ third position for the brand which itself speaks more about the expansive nature of the brand in the market. Take for example Campbell’s Soup was positioned to use during lunch time over the years. There was being advertised during noon time radio. However, it is being advertised for multi-purpose usages reflecting on labels with consumption any time. However, the theme is being presented as “Soup is good food”. 4) Positioning by Product User Another approach related to positioning is connecting a product with a user or a group of users. The idea is to communicate the brand message. For instance, certain cosmetics companies hire the service of a renowned model as spokesperson to remain associated with their brand. For example, Michael Jordan used to be the spokesperson for the brands like Nike and McDonald. 5)Positioning by Product Class 25 CU IDOL SELF LEARNING MATERIAL (SLM)

There are certain products requiring critical positioning decisions involving product-class associations. For e.g., Dove not only positioned itself as the soap category but also a cleansing cream product especially for women having dry skin. 6) Positioning by Cultural Symbols There are some marketers who use cultural symbols to present themselves as distinct brand among the competitors. The basic purpose here is identifying something meaningful to people, whereas other brands do not resort to same tactics.Pillsbury’s “doughboy” is the perfect example illustrating positioning strategy. 7) Positioning by Competitors In majority of the cases involving positioning strategies, an explicit/ implicit frame reference is given. In certain cases, the reference competitors might be ruling the roost as far as the positioning strategy is concerned. Therefore, it becomes imperative to give cognizance to positioning in context to a competitor for two valid reasons. One is a competitor might have established itself with great brand image in the market over the years. Second reason is not what the customers perceive for a brand, rather their trust matters as compared to a competitor. 2.3.3 Positioning Approaches Generally, companies give emphasis on specific positioning approach for developing brand value. 1. User Centric Approach One approach involving positioning the brand is focusing on specific group of users or customers. Take the case of Nike, where it uses positioning approach through various advertisements in which targets are on sports like football and basketball. The company tries to communicate the message that its shoes and apparel are very popular in a targeted athletic event. This brand highlights the quality shoes on offer as a trusted brand, Thus, Nike has been maintaining market leadership as a supplier of athletic shoes and apparel. 2. Benefit Approach Benefit positioning is useful when a brand offers multiple benefits as compared to the competitors. Otherwise, it could be a specific benefit being the number one reason for selling in a target group. This approach has root in the product features approach. Still, the highlight is on the additional benefit a consumer would likely to get for the product. For example, “Sensodyne Toothpaste” on offer yields in two benefits for consumers. One is avoiding 26 CU IDOL SELF LEARNING MATERIAL (SLM)

sensitive teeth; another is to get milky and brighter teeth. “Don’t sell the steak sell the sizzle” is what the approach of this mantra. 3. Competitive Approach In the case of severe competitive industries, the concerned companies make attempt to showcase their brand and enumerating benefits better than the competitors. Most of the times, this kind of positioning strategy is used by a brand in an attempt to exhibit a better value in terms of price and benefits to the customers. 4. Price-Driven Approach Companies in general resort to a low-price approach when it comes to positioning. This is how the company promotes itself as the highly affordable company as compared to others in the identical industry. 5. Product Features Approach The product can be positioned as per its features. For example, an advertisement might be a ploy to position the product while referring to specific features. Resultantly, it might pave way for success in terms of product superiority. However, consumers are always having inclination towards feature-rich products. For instance, the primary focus of Maruti is presenting itself as “good mileage” vehicle, whereas the focus of “Hyundai” is on “better comfort” being its main feature. 6. Product Usage Approach This technique is in context to get through positioning. Most of the products are on sale as per the usage requirements of consumers. Companies at times try to expand the association of brand with a specific situation. When LCD TV made its entry in the market, it was quite expensive and for the owners, it was like a status symbol. Then LG came up with own version of LCD TVs at reasonable price whereby it focused on the feature aswall mounted TV and that requirements tiny space which is very much useful to owners having compact houses. By advertising this feature, LG manufactured LCD TVs in various sizes. 2.3.4 Positioning Errors Positioning is actually not so easy as it seems. Thus, if a marketer makes attempt to position a certain product without proper planning, then there would be an issue of sustainability and getting competitive advantage will be a matter of concern as a result. There could be some errors during positioning a product: 27 CU IDOL SELF LEARNING MATERIAL (SLM)

 Aspects of the Product Features – Usually, a product is positioned as per the aspects of its features. Thus, it becomes so predictable that the positioning gets lost. However, the obvious aspects come handy for positioning on most occasions.  Living in the Future – Majority of the companies have their planning to sustain in future instead of positioning their products on the basis of capabilities at present.  Diluting the Positioning Strategy – Marketers always err in terms of diluting the positioning strategy from the viewpoint of making it very attractive. Hence, products must be positioned through great ideas thereby communicated as they are. However, marketers rely on a simple positioning idea thereby assign the task to the creative department. This is how the positioning remains diluted. This entire process is recognized as under positioning.  Over Positioning – Unlike under positioning, there is a scope too for over positioning a brand. In this scenario, buyers might not have a broad view about the brand of the company. Over positioning situation arises where the firm promotes itself as a premium brand. For instance, what strikes to the mind of customers when it comes to the Tanishq jewellery as overpriced brand. On the contrary, Tanishq is known for offering budget jewellery.  Short-term Gains – Companies usually position their products to get short-term sales and profits. In this regard, stocks and share prices are the prominent reasons in this category of positioning. However, the need of the hour is positioning in a manner that would induce long-term gains in the market.  Confused Positioning – Another mistake is in terms of confused positioning. Marketers should refrain from creating confusion among the consumers. They should not meddle in excess with respect to the positioning strategies even if they have established brands.  Doubtful Positioning – There are certain companies that make attempt to create a brand image among customers prior to positioning the brand clearly.This phenomenon is recognized as doubtful positioning which in turn leads to a bad positioning thereby leading to emergence of a negative attitude for the brand.  Positioning on the Wrong Attributes – Companies most of the times fail to recognize the exact needs of customers for a product. Resultantly, they position the product on the basis of based wrong attributes or attributes without inducing any interest to the customers. Kotler states that a firm must refrain from four types of positioning errors prominently like: 28 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Under Positioning – This happens when buyers do not have enough information related to the brand. 2. Over Positioning – It happens provided buyers have narrow view about the firm or its product. For example, buyers have the perception of Ram Maica offering quality decorative laminates. However, in reality, it offers decorative glass as well as flush doors. 3. Confused Positioning – It happens when buyers do not have transparent image for the brand. The reason for this could be change in positioning statement very often. 4. Doubtful Positioning – It happens when buyers have doubt about the authenticity of the claims as positioned by the firm. 2.4 CONSUMER MOTIVATION A consumer is said to be aware of a product if he or she has the right perception for a brand or package. Otherwise, advertisement ensures this aspect. Awareness is a prerequisite for buying. However, it does not ensure sales. Majority of the people know well and the implications of the Guinness advertisements. So, people consume the product without knowing its reality.Thus, it reflects the buying behaviour of consumer gets influenced. It depends on the consumer’s needs and drives, his tastes, and aspirations, plus his attitudes, personality, and social environment. Hence, we cannot disentangle the behind motives from related aspects of consumers’ choice as the exact ways in which an individual reacts and satisfies his/her needs and reflect his/her predispositions, experience, and character. A few ideas, psychologists have advanced as theories of motivation are equally theories of personality, especially those on the basis of Freudian psychology. Problems arise in the analysis of motivation due to the interrelationships between so many conditioning variables. It is very difficult to isolate the effects of any one factor. Motives are usually inferred from past behaviour, but the job of the applied behavioural scientist calls for the prediction of future behaviour from a current set of conditions. Since any single human action might have the potential to stem from many motives, it becomes necessary to decide which factors have the most overall significance. Behaviour that appears in one context motivated purely on the basis of altruism may, provided all the facts are caused by avarice. Since the behavioural scientist is seldom aware of ‘all the facts’, perhaps because questionnaire respondents do not tell the truth, perhaps they do not know it to tell, accounts of consumer motivation are almost certainly always incomplete. Sometimes this difficulty is expressed in terms that suggest consumer behaviour is only weakly motivated compared with other facets of human action. 29 CU IDOL SELF LEARNING MATERIAL (SLM)

There is, however, no reason to trust that buying is in reality less strongly motivated than any other behaviour - only that the means of identifying motives are not yet as sophisticated as one would like. What Is Motivation? Motivated behaviour is activity that is directed towards the attainment of a goal or objective. Two aspects of motivating situations are of particular importance for consumer research. Firstly, there should be a goal or objective which acts as an incentive and which is usually located outside the individual. Secondly, there is a condition within the motivated person which stimulates action, perhaps a social need (like popularity) or a physiological drive (like thirst). A commonplace example which illustrates the linkage between these two elements in motivation is the hungry man who experiences the hunger drive and whose behaviour is subsequently channelled towards attaining the goal or incentive of food. It has been pointed out to that needs and motives are often treated in the marketing literature as interchangeable terms, whereas a person is motivated only when his behaviour is directed towards the satisfaction or elimination of his needs. Not all motives derive from physical desires. Having satisfied their hunger and other physical needs, people may be found buying such items as fashionable clothes or sports cars. Clearly, the intention for this behaviour originates individually from those involving the satisfaction for hunger or thirst. A whole range of socio-psychological needs like the desire needs to be appreciated or to have status stem from man’s social environment. Cognitive Dissonance as Motivator In 1957, Leon Festinger 13 put forward a theory of ‘cognitive dissonance’ which has had a considerable impact on marketing thought. Dissonance is regarding a condition or situation that reflect a tendency favouring mental unease that occurs provided an individual has two attitudes, beliefs, ideas, (or other cognitions) that are not in harmony with one other. In this scenario, Festinger writes, the person tries to minimise dissonance perhaps by dropping a cognition, perhaps by strengthening one. He summarises the theory by suggesting that ‘if a person is aware of many things but lacks consistency psychologically with one another, he/she will try to make them consistent in different ways. Dissonance is therefore a factor in motivation because it leads the individual to change his opinion, attitudes, or behaviour in order to reach a state of ‘consonance’ or harmony. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Although several interesting laboratory experiments have been conducted to demonstrate that cognitive dissonance can be engendered in individuals and to identify its effects on general behaviour, we are here concerned primarily with the applicability of Festinger’s theory to consumer decision making. Perhaps the best-known example involving a test of cognitive dissonance theory with respect to consumer behaviour concerns about the post-decisional doubt as expressed by the buyers of new cars. The existence of dissonance among such customers was deduced from their tendency to seek further information about the model just bought despite having previously considered several alternatives. Engel has questioned some of the conclusions of others in this area; he suggests that dissonance may result only from price factors and explains enhanced readership after purchase in terms of the buyer’s increased perception of the car’s attributes once he has it at home in the garage or has driven it for a while. Cognitive dissonance has also been evoked to explain consumer’s reactions to the prices charged for new products when they are introduced to the market. Doob et al conducted experiments with five products (mouthwash, toothpaste, aluminium foil, light bulbs, and biscuits) to test the notion that consumers who pay a high initial price for an item are more likely to make repeat purchases than those who pay a low introductory price. They explain their results, which generally support this hypothesis, in terms of dissonance theory: 'the more efforta person exerts to attain a goal, the more dissonance is aroused if the goal is less valuable than expected’. Dissonance is reduced as the individual increases his liking for a goal, and therefore it is thought that the higher the price paid by the consumer, the greater is his tendency to like the brand and become loyal to it. These authors demonstrate that, in the long term, sales may be higher following a relatively high introductory price. But, of course, there is always some ceiling or threshold beyond which the price charged becomes unreasonable and these results can also be explained in a way which does not involve dissonance theory. Thus, a consumer who buys at a low introductory cost and subsequently discovers that the price has been substantially increased may show dissatisfaction as a result of confusion, frustration, or a feeling of being cheated. Irrespective of the results of these investigations are explained in behavioural science terms, they are important. The recent car owners might require reassurance as their decisions were really profound and it could be attained through advertising messages primarily targeting them. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

Indeed, without such follow-up they may select different brands in future. Doob etal. use dissonance theory to cast some doubt on the advisability of certain marketing promotions, but the fact that alternative explanations are easily found means that cognitive dissonance is far from being established as a marketing tool. Psychologists have not universally accepted Festinger’s theories as valid in their own discipline or have stressed that the notion of cognitive dissonance is very complex. Cognitive dissonance can, after all, be expected to arise only when the individual’s self-image is consistent with disharmony (a deliberate liar feels no guilt and cannot be assumed to experience any mental unease as he tells untruths). Intriguing as cognitive dissonance phenomena are for the marketing man; therefore, we are far from knowing the extent to which they operate in determining consumer choices or how to exploit dissonance and self-image fully in the marketplace. 2.5 SUMMARY ● Market segmentation and targeting help firms determine and acquire key customers. ● Consumers can be put into segments based on location, lifestyle, and demographics. Another way to segment consumers is by asking the who, what, and why questions. ● Segmentation and targeting influence a company's strategy for pricing, communication, and customer management. ● STP reflects segmentation, targeting, and positioning. ● Segmentation is the initial step in the process. It ensures forming groups for the customers having identical needs followed by ascertaining the customers’ characteristics. For example, an automotive company can split customers into two categories: price-sensitive and price-insensitive. The price-sensitive category may be characterized as one with less disposable income. ● The second step is targeting, in which the company selects the segment of customers they will focus on. Companies will determine this base on the attractiveness of the segment. Attractiveness relies on the size, profitability, intensity of competition, and ability of the firm to serve the customers in the segment. ● The final step is positioning or designing a value proposition in favour of the company to appeal to the targeted customer segment. After creating value, companies communicate the value to consumers through the design, distribution, and advertisement of the product. For example, the automotive company can create value for price-sensitive customers by marketing their cars as fuel-efficient and reliable. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

2.6 KEYWORDS Market Segmentation:Is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. STP: Segmenting, targeting, and positioning (STP) is a broad framework that summarizes and simplifies the process of market segmentation. Product Positioning: Is closely related to market segment focus. Product positioning involves creating a unique, consistent, and recognized customer perception about a firm’s offering and image. Market Positioning: Refers to the ability to influence consumer perception. Benefit Approach:This approach is closely related to the product features approach. Here also the focus is on the extra benefit the consumer would receive on the product. 2.7 LEARNING ACTIVITY 1. Select a product and brand that you use frequently and list the benefits you receive from using it. Without disclosing your list, ask a fellow student who uses a different brand in this product category (preferably a friend of the opposite gender) to make a similar list for his or her brand. Compare the two lists and discuss the differences and similarities among the benefits that you and your friend seek from the same product category. ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2. Visit two websites with which you are familiar and write down every click that you make and the navigation patterns and times of your surfing. Then, describe how a marketer of a product of your choice who had tracked your Web visits to the sites could use the observation of your surfing in designing a customized advertising message directed at you. ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- ------------------------ 2.8 UNIT END QUESTIONS A. Descriptive Questions 33 CU IDOL SELF LEARNING MATERIAL (SLM)

Short Questions 1. What are the 4 types of market segmentation? 2. What are the 5 elements of market segmentation? 3. What are the 5 benefits of market segmentation? 4. What are the steps in market segmentation targeting and positioning? 5. What is STP? Explain. Long Questions 1. What do you mean by positioning strategy? Explain. 2. What are positioning error? Explain. 3. Explain positioning approaches? 4. What are the bases of segmentation? Elucidate. 5. Write a note on Product Positioning. B.Multiple Choice Questions 1. Dividing the consumer market into domestic users and foreign users is an example of ______________. a. undifferentiated marketing b. market segmentation c. custom marketing d. benefit segmentation 2. ________________ is the process of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviours who might require separate products or marketing mixes. a. Mass marketing b. Market segmentation c. Target marketing d. Market positioning 3. In effective target market, marketers should focus on_____________. a. Market segmentation b. Market Targeting 34 CU IDOL SELF LEARNING MATERIAL (SLM)

c. Market positioning d. All of the these 4. A flexible market offering consists of: a. A naked solution b. Discretionary options c. Both a and b d. None of the these 5. Guerrillas against Gorillas\" highlight which form of marketing? a. Mass marketing b. Niche marketing c. Local marketing d. None of the these Answers: 1-c; 2- b; 3-d; 4-c; 5-b 2.9 REFERENCES Reference Books:  Solomon, Michael R., Consumer Behaviour: Buying, Having and Being, PHI Learning Pvt. Ltd., New Delhi.  James H. Myers, (1996), Segmentation and Positioning for Strategic Marketing Decisions, McGraw-Hill Inc., US.  Al Ries and Jack Trout,(2001) Positioning: The Battle for Your Mind, McGraw-Hill Education. Textbooks:  Schiffman L.G. and Kanuk L.L., Consumer Behaviour, Pearson Education, New Delhi.  Hawkins, D. I. & Best R. J. and Coney, K.A. and Mookerjee, A, Consumer Behaviour- Building Marketing Strategy. Tata McGraw Hill, New Delhi.  Web sites: 35 CU IDOL SELF LEARNING MATERIAL (SLM)

 https://www.economicsdiscussion.net/marketing-2/product-positioning/product- positioning/32446  https://www.motista.com/blog/understanding-emotions-drive-consumer-behavior  https://consumerbehaviourr.blogspot.com/2017/03/consumer-behaviours-nature.html  https://www.dlmmarketing.com.au/motivation/ 36 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 3: CONSUMER MOTIVATION Structure 3.0 Learning Objectives 3.1 Introduction 3.2 Needs and Goals 3.3 Motivational Conflict 3.4 Defence Mechanisms 3.5 Motive Arousal 3.6 Motivational Theories 3.7 Maslow’s Hierarchy of Needs 3.8 Motivation Research 3.9 Summary 3.10 Keywords 3.11 Learning Activity 3.12 Unit End Questions (Descriptive and MCQ) 3.13 References 3.0 LEARNING OBJECTIVE After studying this Unit, student will be able to: ● Learn what consumer behaviour is and the different types of consumers. ● Distinguish between consumer behaviour and the marketing concept, the societal marketing concept, as well as segmentation, targeting and positioning. ● Differentiate between consumer behaviour and customer value, satisfaction, trust, and retention. ● Demonstrate how new technologies are enabling marketers to better satisfy the needs and wants of the consumers. ● Actualize how marketers are increasingly able to reach consumers wherever consumers wish to be reached. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

● Examine how the world’s economic condition is leading to consumption instability. 3.1 INTRODUCTION Motivation is an inner drive that reflects goal-directed arousal. In a consumer behaviour context, the results in a desire for a product, service, or experience. It is the drive to satisfy needs and wants, both physiological and psychological, through the purchase and use of products and services. Motivation could be defined as the driving force among individuals that impels them to action. As depicted in the below figure, this driving force is the outcome of tension, which is due to unfulfilled needs. To minimize tension, all the individuals look for ways to get their needs fulfilled. Primarily, it depends on each and every individual and the way they meet their needs i.e., individual thinking and learning from past experience. Hence marketers focus on influencing the cognitive processes of consumers. Every individual has his/her needs which are innate and attained over a period of time. Innate needs specify about physiological needs or primary needs such as food, shelter, water, air, etc. Whereas, acquired needs belong to those needs which we experience from our immediate environment and culture. These could be hungry for power, need for affection, extract prestige, etc. All these needs come under the purview of psychology thereby these are considered as secondary needs. Goals yields from motivated behaviour. Motivation is a part of an internal process. We could define anything for the need, but motivation remains as a condition inside which in turn paves way for a change, either in the individual or the environment. If this energy is tapped well, motivation equips the person with a drive and for which right direction is required to remain engaged with the environment in terms of adaptive, problem-solving, and open-ended ways. The key to motivation gets energized and remain persistent towards goal-directed behaviour. Our movement takes place if we are motivated. Motivation to be influenced depends on the satisfaction of needs, that might be necessary to sustain life or essential for our wellbeing as well as growth. We require many physiological needs that we get from for food, water, and of course sex to keep the momentum of life and get satisfied. Our behaviour is as per the psychological needs like autonomy and mastery over some subject or thing. We also have the needs for achievement and power, including self- esteem. Out of these needs, some could be motives as we engage with the intrinsic activities.In this regard, our social and environmental context plays a key role as extrinsic motivation. We are subjected to motivation in terms of achieving goals, attaining values, and related desires to experience from specific emotions. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

The motives indicate our internal experiences like needs, emotions, and cognitions that are proximal causes arising out of motivated action. Our social contexts and events external to us remain as antecedents to our motives which in turn triggers motivational states. Our motives get reflected in terms of how we behave and engage. These are a part of psychophysiology and brain activations. Figure 3.1 The Motivation Process 3.2 NEEDS AND GOALS All behaviour is goal orientated. Goals are the sought-after results of motivated behaviour. The form of direction that behaviour takes - the goal that is selected - is a result of thinking process and previous learning. There are two types of goals: generic and product specific. A generic goal comes under the purview of general category that might meet certain needs; a product-specific goal on the other hand belongs to a branded or labelled product to which an individual wishes to get the needs fulfilled.  Innate Needs – We require primarily physiological needs to sustain life such as food, clothing, water, shelter, sex, etc.  Acquired Needs – These needs basically about our psychological needs like esteem, love, fear, and acceptance. Whatever may be the need, but there are various appropriate goals. When it comes to the specific goals, it depends on the experiences and physical activities carried out by individual, cultural norms and values including the accessibility needs of the goal in both physical and social environment. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

Needs depend on goals and vice versa and they are subject to change as per the physical condition, living environment including, interaction with people and experiences. Once the desired needs are fulfilled, it leads to emergence of new needs which could be in higher order. Failure to reach a goal usually ends up in frustration. There are two ways to react to frustration for individuals. The first way is coping mechanism for which they identify a way for themselves. Then they look for substitute goal. Another way is defence mechanism enabling to protect their self-esteem. They exhibit it in terms of aggression, withdrawal, regression, rationalisation, projection, identification, and repression. Consumer behaviour does not lead to the inference of motives. People having different needs might seek fulfilment by means of the identical goals. Even though certain psychologists are in favour of individuals having different need priorities, yet others are of the opinion that majority of the people experience the same basic needs, but their priority ranking differs from an individual to another. In this regard, Maslow's hierarchy of needs is worth studying. He has stated five levels of human needs like: physiological needs, safety needs, social needs, ego needs, and self-actualisation needs. Besides, there are other three needs that are mostly sought for by people like power, affiliation, and achievement. To identify and measure human motives, three methods are used in general. Those are observation and inference, projective techniques, and subjective reports. However, not a single method can stand of its own thereby researchers resort to the application of combined method for evaluating the strength of consumer motives. Motivational research comes under the category of qualitative research where it has been designed for delving deep into conscious awareness of consumers. Though it has some liabilities, yet motivational research really adds value to marketers having the responsibility of developing innovative ideas and new appeals. When it comes to a goal, it indicates the cognitive representation of our desired state of mind.This desired state involving a goal could be clearly stated (e.g., landing on the Mars), or it can be an abstract representation of a state that never gets fully completed (e.g., eating healthy). Motivation is the key to all these underlying goals or remains as the psychological driving force leading to action in attaining that goal. Motivation stems from two areas. First, it might emerge from the benefits related to the process in pursuit of a goal (intrinsic motivation). For instance, you might have the desire to having a Mars mission trip. Second, motivation could emanate from the benefits related to achieving a goal also known as extrinsic motivation like the fame one gets by being the first 40 CU IDOL SELF LEARNING MATERIAL (SLM)

to land on Mars. One of the simplest ways to consider intrinsic and extrinsic motivation is how a student perceives to it. Is the student laborious to work on various assignments as the learning is very pleasing (intrinsic motivation)? Or does the student spend more time for getting better grades, which eventually help in getting a good job (extrinsic motivation)? Consumer behaviour could be the outcome of efforts and results having relevance to the need of consumers for solving problems. Consumer problem solving requirement arises if there are some unmet needs. For example, the entire family consumes all of the milk bought on a daily basis or the wear and tear of tires for the cars owned by the family’; or the bowling team is having an end-of-the-season picnic plan: these are a few problems with the consumers that need to be solved. So, problems could be looked into in terms of two needs: physical (like a need for food) or psychological (e.g., the need for getting accepted by others). Though the difference is very subtle in nature, there accrues certain benefit to distinguish between needs and wants. A need reflects about the primary deficiency for an essential item. One requires food, air, water, security, etc. A want places some personal criteria on the way the needs should be fulfilled. Hence, whenever in hungry, the first thing that strikes to mind is food item. As a result, a teenager regrets for his/her frustrated parent in stating nothing to eat in the refrigerator. Majority of the marketing too is just to meet the want-fulfilling business rather than the need- fulfilling business. For example, Apple does not push to buy any watch, instead the requirement is to buy an Apple Watch. Similarly, Ralph Lauren compels to want Polo while shopping for clothes. On the other side, a non-profit entity like the Canadian Cancer Association appeals you to go for a check-up but does not take the responsibility of which doctor one refers to. Finally, marketing is about arousing interest in creating and subsequently satisfying wants. Utilitarian & Hedonic Needs Have a brief on utilitarian (practical as well as useful) and hedonic (luxurious or desirable) needs. Consumers in favour of utilitarian needs are price conscious in general as compared to their need of satisfying hedonic needs. If the wish is to fulfil the hedonic needs, consumers do not mind in buying luxury items. Because they purchase once in a while. Cognitive dissonance/ consumer guilt has the more probability of being related to hedonic purchases as compared to utilitarian ones. 41 CU IDOL SELF LEARNING MATERIAL (SLM)

3.3 MOTIVATIONAL CONFLICT A motivational conflict involves a scenario where is subjected to make decisions on the basis of conflicting goals. Consumers gets motivated either through a positive/ a negative reinforcement, thereby it paves way for motivating an individual to act and ensure right consumer decisions. At times, there could be an urge to do something good but there is an issue of hard work and pain involved in it. Then it leads to conflict between the opposite motives. One is motivational conflict, and another is avoidance conflict. This is the reason, an individual feeling pulled in two separate kind of pleasures thereby get attracted by one conflict and repulsed by another one for one event. This is a classic example of motivational conflicts. Nonetheless, go through the three types of simplest conflicts in the following: 1. Approach/avoidance conflicts. Here the organism gets attracted and repulsed simultaneously by the elements of an identical situation. 2. Approach/approach conflicts. The organism is compelled to select a desirable outcome. 3. Avoidance/avoidance conflicts. Here also the organism is made to select between two opposed undesirable outcomes. Approach/avoidance Conflicts lead to an animal being forced to two opposite forces. Animals found between strong drive states but opposite to one another might vacillate to move one way than the other. Even one can attempt to tempt a semi-tame squirrel with a peanut to observe some kind of vacillation. Here an individual become a potential predator, nonetheless, the desirable food is the peanut. This gives an inference that the squirrel has an approach or avoidance conflict. Approach-approach Conflicts is about making a right choice between two desirable goals which are mutually exclusive. Suppose a person is near to a display of merchandise when he/she can afford to buy one thing. Again, the concerned person finds himself/herself engaged in one of the displacement activities like scratching his/her head. This is how the existence of an approach-approach conflict and it becomes significant as it has the potential to avoid long-term goals. Avoidance-avoidance Conflicts is about selecting a least harmful evil. For instance, an animal find itself between a fire and a river, then the concerned animal has to choose one which is having less harm. Naturally, it leads to animal expressing various signs of distress, i.e., it could be jumping around or pawing the ground, or vocalizing till it decides to plunge into the river. It gives an outcome that even if there might be higher motivational conflicts, but they are accompanied with the signs of autonomic arousal in the nervous system like 42 CU IDOL SELF LEARNING MATERIAL (SLM)

sweating, blushing, nervousness, and defecating. Rat researchers in this regard make count on rat droppings to quantify the level of anxiety among the rats. 3.4 DEFENSE MECHANISMS Defence mechanisms contain aggression, regression, withdrawal, rationalization, projection, identification, daydreaming, and repression. It is not so easy to derive motives from consumer behaviour. Other needs mostly remain integrated into consumer advertising like the needs for power, achievement, and affiliation. The theory by Sigmund Freud on defence mechanisms and the unconscious provided a better insight on one’s emotions and reactions if anything happened in life. It became easier for an individual to recognize a healthy reaction for a problem and the way one could use for the better outcome of the situation, or better at individual level. One becomes very young in an unpredictable world, still one has a lot of growth potential to encounter and go through many setbacks. Still, it gives a little bit of hint of comfort knowing theories like these for guidance. Figure 3.2: Defence Mechanism Sigmund Freud has proposed twelve different defence mechanisms to which we being humans use for compensating our emotions. Some mechanism can be identified very soon, while the rest exercised through our unconscious mind. They are compensation, displacement, denial, identification, projection, introjection, reaction formation, rationalization, repression, regression, ritual, undoing, and sublimation. 1. Compensation 43 CU IDOL SELF LEARNING MATERIAL (SLM)

Compensation is one of the defence mechanisms that happens when we are averse to an aspect of our behaviour thereby it is perceived as negative. Rather, we develop those aspects and behaviours which we do. In fact, we like about ourselves for getting compensated for the disliked concept in the past. For example, a young girl is being reprimanded that she is not actually beautiful to which she perceives it as true. To overcome this negative view of herself, she tries to study hard to be considered by others as intelligent. Thus, her intelligence gets compensated for the negative feeling of not being beautiful. 2. Denial We are very much aware of the denial as a concept. It is the act of avoiding a self-concept that we know is true. However, it becomes unbearable to accept at times. People in their abusive relationship might tell themselves that their other counterpart is acting beyond character if they cause harm to them. Actually, these people are not in a mood to accept that the significant other has changed thereby remain abusive toward them. In the case of a sudden death of a dear one, the family takes a longer time to come to terms with the sad event, which is nothing but a simple case of denial. 3. Displacement In case of displacement, we show our displeasure and frustrations on a substitute target. However, it is not the right target for our emotions. For example, if a college student is loaded with academic assignments, he or she feels anxious and express the frustration side. In this case, the student does not argue with the concerned professor. Rather the student starts shouting at his/her mother for not dinner being ready on time. This indicates mother is the substitute target for his/her frustration. The same thing happens in our daily life when a person having some issue at home if goes to work starts showing tantrums on customers. The examples here specify about how displacement takes place from the real one to substituted target. 4. Identification Identification is required when we make ourselves identified with an image to which others see is actually ideal to our ego. We associate with many groups, movements, and people we come across. If a person hails from Pittsburgh, then his/her entire life, it becomes a huge concept of identity. If one cannot identify his self/herself as a Pittsburgh fan, then he/she is identified as not being a Pittsburgher. This is how the need of identification matters. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

I Identification must be considered seriously in psychology while diagnosing a person having mental illness. Most of the times, patients develop coping mechanism to deal with their illness. One can state “I’m sorry, it’s just my anxiety” with ease without taking responsibility for his/her actions. 5. Introjection Introjection is a process meant for accepting standards being true so as to avoid scrutiny. This aspect is viewed as an extreme form of conformity. Teachers in most of the schools suggest students to study hard and go for higher education because they need to mentor the students. Students in turn listen to those suggestions to be successful in future. 6. Projection Projection is due to the attributes of negative self-concepts. For example, a woman is considered as accused of being so insensitive towards the issues of others. What if the same woman claims that her friends are insensitive not, she. This reflects her projections of self- concept of insensitivity. 7. Reaction Formation Reaction Formation involves a process that helps in masking negative emotions or self- concepts. It happens when we indulge in doing the exact opposite of that concept. Suppose a person approaches a second person. Instead of conveying hate, that person portrays being nice and express compassion. Thus, being nice helps the person to hide the hatred feeling for another person. This is how one reacts to improve his/her self-image with others. 8. Rationalization Rationalization is about why a person should/ should not feel a certain way of taking credit for our behaviours. This is exactly we tell ourselves to feel better about something. For example, a college student needs to attend an exam in the morning. On the other hand, his friends are going to attend a party. So, the student rather studying at home to attend examination instead reached the party that leads to fail in the examination. The issue here is the student gets rationalize with others decision when he is told to enjoy the college life in a way that would remain etched in memory. 9. Regression Regression is when we retreat to infantile defences. We do during childhood because life seems less threatening. Retreating back might appear the situation is not so threatening as it appears.During intense argument, it has been observed that one party might through tantrums 45 CU IDOL SELF LEARNING MATERIAL (SLM)

and screams at others. This kind of scenario generally are seen when a person behaves like a childish. 10. Repression Many people might not aware the defence mechanism of repression. It occurs unconsciously as well as unknowingly. It occurs when our mind perceives something so painful for our own being thereby pushes beyond our conscious awareness. Repression could be a choice at times. However, it takes place unconsciously. In certain situations, things become repressed leading without any awareness. For example, if a person who has already gone traumatic experiences might not remember everything that happened in the past. This indicates purely a state of repression. 11. Ritual & Undoing Ritual & Undoing is the process of trying to undo some type of unacceptable behaviour by masking it with a positive behaviour, or ritual. An absent father may attempt to make up for his absence by buying his children adequate gifts occasionally. Another example is the “Honeymoon” in which abusive relationships come under. The abuser will incite harm on their significant other. Then to gain their favour back, they are as charming and nice as feasible to make up for it. 12. Sublimation Sublimation is one such defence mechanism having positive vibes in every aspect. It is considered the healthiest. Sublimation is the process of taking negative self-concepts and diverting them into more socially acceptable concepts that are beneficial. If a human being has experienced severe trauma might utilize his/her experience to assist others rather than compensating for it. For an illustration, a woman is a victim of domestic abuse. In this case, the concerned woman joins such help groups to help other women. Rather she refrains from what she experienced all through. Likewise, a drug addicted after getting help might come clean. These are a few examples of motivation to build a better life. All the defence Mechanisms discussed above are really important in our lives. They help us in understanding our actions and emotions in a better way. Personally, by using the knowledge of defence mechanisms, one could be able to distinguish between reactions and alter for a productive. There are so many theories related to defence mechanisms, however, 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Sigmund Freud’s twelve foundational defence mechanisms seem to be very appropriate and those resonate in our lives in way or another. 3.5 MOTIVE AROUSAL Initially, a person feels lackness. Then the wish arises which becomes so urgent that the bearer starts venturing to satisfy the needs. This leads to tension thereby the person feels the urge to forget everything follow the path to fulfil the aroused need. This tension again initiates drives and attitudes with regards to specific type of satisfaction. As a result, a person starts searching information. Finally, it leads to assessment of available alternatives to choose the right one.Once the right alternative is selected, then due action is initiated. Since the performance related activities lead to satisfaction, it reduces the tension for an individual. So, any such need that arises at a certain point of time might be due to internal stimuli as identified in the physiological condition of an individual. It is also identified at emotional level or due to cognitive processes or by such any beyond the outside environment.  Physiological arousal  Emotional arousal  Cognitive arousal  Environmental arousal Physiological Arousal- Bodily needs of a person depends on his or her physiological condition. For instance, we feel hungry because there is a drop in blood sugar level or contraction of stomach contractions. Similarly, we feel shivering whenever our body temperature decreases. Nevertheless, we require warmth which is well known as physiological arousal. But this arousal causes discomfort until the affected person gets due satisfaction. Emotional Arousal- People are prone to daydreaming at times leading to the arousal, i.e., autistic thinking or stimulation of latent needs. It happens out of frustration thereby people start daydreaming and put themselves in all favourable situations mere through imagination. The best example is a young woman spending her free time by chatting on the internet herself only. Cognitive Arousal- Sometimes we remain immersed ourselves in random thoughts which lead to a need of cognitive awareness. For instance, there is an advertisement regarding home 47 CU IDOL SELF LEARNING MATERIAL (SLM)

which leads to cognitive arousal thereby the concerned person gets the urge to speak with his/her parents. Environment Arousal- There are certain needs an individual feel at certain time. It happens as per the specific cues in the environment. Unless there are cues, the needs could have remained dormant. There are so many examples we come across on a daily basis like watching news at 8’o clock, the smell of bakery items, fast food commercials on television. Since these things happen in our environment and we react accordingly. That is why it is known as environment arousal. 3.6 MOTIVATIONAL THEORIES Have a brief on important theories of motivation in the following:  Maslow’s Need Hierarchy Theory  Herzberg’s Motivation Hygiene Theory  McClelland’s Need Theory  McGregor’s Participation Theory  Urwick’s Theory Z  Argyris’s Theory  Vroom’s Expectancy Theory  Porter and Lawler’s Expectancy Theory When the human organizations came to existence, many philosophers made attempt to find out the reasons of getting motivated to work. They applied various approaches and it led to emergency of so many theories related to motivation. Go through discussion on motivational theories in the following. 1. Maslow’s Need Hierarchy Theory It is one of the best recognized theories on motivation known as Maslow’s need hierarchy theory. The foundation of this theory revolves around human needs. He has developed theory as per his clinical experience thereby classified all human needs in hierarchy. Means once we get the lower needs fulfilled, then move up to the higher needs. 2. Herzberg’s Motivation Hygiene Theory 48 CU IDOL SELF LEARNING MATERIAL (SLM)

Frederick Herzberg by profession is a psychologist and his theory is just an extension of Maslow’s theory known as Herzberg’s Motivation Hygiene (Two-Factor) Theory. In this regard, Herzberg conducted an extensive motivational study on 200 accountants and engineers working in firms near to Western Pennsylvania. 3. McClelland’s Need Theory Another popular need-based theory on motivation has been developed by McClelland and his associates’. This theory is just opposite of the hierarchy of needs. Rather McClelland developed the theory on the basis of Henry Murray, where his focus was on a long list of motives and manifest needs related to personality. The theory by McClelland has close association with learning theory. The reason here could be accredited to the fact that, needs are learnt or acquired whilst different kinds of events people come across in their relevant environment and culture. He identified that people having fulfilled a specific need behave differently from the have nots. The emphasis of his theory is on three needs as highlighted by Murray like achievement, affiliation, and power. 4. McGregor’s Participation Theory Douglas McGregor developed two prominent views on human being on the basis of participation by workers. The first view is basically negative, known as Theory X, on the contrary, another view is positive that is labelled as Theory Y. 5. Urwick’s Theory Z There is another theory by Urwick known as theory z. It came after the McGregor’s theory. Nonetheless, there are other two theorists having name Rangnekar, and Ouchi. 6. Argyris’s Theory The motivational theory by Argyris has its base on proposition of management practices affecting the behaviour and growth by an individual. As per his view, there are seven changes in an individual’s personality making him/her a mature one. It could be stated that personality of an individual develops. As per the view by Argyris, there is an element immaturity among the individuals for which reasons are organisational setting and management practices like task specialisation, unity of direction, chain of command, and span of management. Therefore, individuals to be matured, he has referred to the pyramidal organisation structure, where one shifts gradually from the lower level to higher one. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

There requires a participative and flexible management, then only one can scale up to the top of job ranking. He further states that such kind of situation satisfies both physiological and safety needs and they feel motivated to make themselves ready to further use of physiological and safety needs. So, by remaining themselves motivated, they will use their potential to accomplish organisational goals. 7. Vroom’s Expectancy Theory The Expectancy Theory by Vroom has got wider acceptance. It is a motivational theory related to cognitive process. The theory has been developed as per the notions that people will remain motivated to and will make effort when they get aware of the fact that there are relationships between the effort and the performance to achieve as a result. 3.7 MASLOW’S HIERARCHY OF NEEDS Maslow’s need hierarchy theory is based on the human needs. As per his theory, he has classified all human needs into five categories and has put those in hierarchical manner right from the lower to the higher order. Basically, he is of the opinion that once a need is satisfied, the concerned person does not feel motivated. Because another higher level of need gets activated which again motivates.Maslow’s five levels of need hierarchy has been shown in the following figure. 50 CU IDOL SELF LEARNING MATERIAL (SLM)