Consumer Behaviour Text and Cases About the Authors Prof. Ramneek Kapoor is Director, Kothari Group of Institutions, Indore. Earlier, he was the Principal, Omegan School of Business, Indore. He has been associated with Indian Institute of Management (IIM), Indore as a visiting faculty and has also been actively involved with many other management institutes as visiting and adjunct faculty. He is a Ph. D. examiner with the Department of Business Administration at a prominent Indian university. He is a well-known management trainer and author in the areas of sales, marketing, and soft-skills. Among others, he has authored/co-authored Fundamentals of Sales Management, International Marketing (2nd edition), Services Marketing, Communication for Retail Professionals, andManagerial Skills. He has presented several papers in these areas in various national and international seminars. He has organised leadership training sessions for senior executives in several companies and organizations such as BSNL, LIC, Caparo Group, Nicholas Piramal, Indore Management Association, and Rotary Club. He also has more than 28 years of professional experience with many national and multinational companies in the area of sales and marketing management. Prof. Kapoor’s profi le has been published in the Who’s Who in the World: 2012 (29th Edition). He has been named amongst the 100 Educators of the World 2012 by International Biographical Centre, Cambridge, England. Prof. Kapoor can be reached at [email protected] Dr. Nnamdi O. Madichie is Associate Professor of Marketing & Entrepreneurship at the College of Business Administration, University of Sharjah (UAE). He is also Fellow of the Higher Education Academy (UK), Fellow of the Academy of Marketing Science, USA (FAMS) and Editor-in-Chief of the African Journal of Business & Economic Research (AJBER). Prior to his current position in the Gulf region, he was Senior Lecturer and Programme Leader for both the BA (Hons) in Marketing and BA (Hons) in Business Studies at the Business School, University of East London (UK). Dr. Madichie’s research spans complementary areas of marketing (entrepreneurial, sustainable and sports marketing). He maintains an active research agenda in areas of marketing and entrepreneurship and has been recipient of the “Emerald Highly Commended Paper Award 2009” as well as the prestigious “2010 Emerald Award for Best Practical Implications Paper.” Dr. Madichie can be reached at [email protected] Consumer Behaviour Text and Cases Ramneek Kapoor Director Kothari Group of Institutions Indore Nnamdi O. Madichie Associate Professor of Marketing & Entrepreneurship College of Business Administration University of Sharjah (UAE) Tata McGraw Hill Education Private Limited NEW DELHI McGraw-Hill Offi ces New Delhi New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto Tata McGraw-Hill Published by the Tata McGraw Hill Education Private Limited, 7 West Patel Nagar, New Delhi 110 008. Consumer Behaviour: Text and Cases Copyright © 2012 by Tata McGraw Hill Education Private Limited. No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication. This edition can be exported from India only by the publishers, Tata McGraw Hill Education Private Limited. ISBN (13 digit): 978-0-07-107810-8 ISBN (10 digit): 0-07-107810-X Vice President and Managing Director: Ajay Shukla Head—Higher Education Publishing and Marketing: Vibha Mahajan Publishing Manager—B&E/HSSL: Tapas K Maji Associate Sponsoring Editor: Hemant K Jha Associate Development Editor: Amrita Marik Editorial Researcher: Silvi Dua Executive (Editorial Services): Yogesh Kumar Senior Production Manager: Manohar Lal Senior Production Executive: Atul Gupta Marketing Manager—Higher Education: Vijay Sarathi Assistant Product Manager: Daisy Sachdeva Graphic Designer (Cover Design): Meenu Raghav General Manager—Production: Rajender P Ghansela Manager—Production:Reji Kumar Information contained in this work has been obtained by Tata McGraw-Hill, from sources believed to be reliable. However, neither Tata McGraw-Hill nor its authors guarantee the accuracy or completeness of any information published herein, and neither Tata McGraw-Hill nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that Tata McGraw-Hill and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. Typeset at The Composers, 260, C.A. Apt., Paschim Vihar, New Delhi 110 063 and printed at Cover Printer: Preface Today’s global business has brought into focus the true importance of adopting a customer centric outlook by the marketing fi rms, because it is a well-known fact that all kinds of marketing begins and ends with the consumer. In fact, the genesis of marketing can be found in the act of determining consumer needs, designing the products, services and strategies to meet those needs, and fi nally ensuring customer satisfaction by the marketers. A marketer in today’s conditions has to think more like a psychologist. It has to undertake a research into the consumer behaviour in order to understand as to how its consumers can accept, perceive, and respond to its product offerings and other related market activities. The psychological insights so gained into consumer behaviour are then utilised to determine its marketing plan, brand and product positioning, and consumer communication strategy. This book is an attempt to discuss consumer behaviour in an easy to understand manner. It has been divided into 15 chapters for comprehensive discussion of various aspects of the subject. Each chapter deals with an important concept of consumer behaviour and amply explains to the reader that particular concept by taking examples and references from the real world scenario. Rich chapter-end pedagogy including references, additional readings, chapter summary, objective type questions (with answers) and review questions add value to the text for the students of the subject. Each chapter concludes with a case on the theme of the chapter, making the concepts more comprehensible. All the chapters have been so devised, so as to enable the readers to relate the theory of consumer behaviour to the real world practices. With its approach and design, we sincerely hope and believe that this book will fi nd wider acceptance with both—the students as well as the teachers of the subject. We shall be grateful for feedback and suggestions for further improvement in the book. Ramneek Kapoor Nnamdi O. Madichie Acknowledgements The publisher and the authors thank the following reviewers, among others, who reviewed the manuscript of the book and contributed in its development as the present text-book, by giving their valuable feedback and suggestions. ▲ Dr. Yaseer Mahfooz–Department of Business Administration, Aligarh Muslim University, Aligarh ▲ Prof. Seema Hariharno–School of Management, Sastra University, Tanjore ▲ Dr. M.S. Khan–Babasaheb Bhimrao Ambedkar University, Lucknow ▲ Prof. Shekhar Srivastva–IILM Academy of Higher Learning, Lucknow ▲ Prof. Girish M.–St. Aloysius Institute of Management and Information Technology, Manipal ▲ Prof. Subhokit Chakraborty–DSMS, Durgapur, West Bengal ▲ Prof. Manigrib Bag–Institute of Business Management and Research, Kolkata Brief Contents About the Authors ii Preface v Acknowledgements vii 1 Consumer Behaviour: An Introduction 1 2 Models of Consumer Behaviour and Decision-Making 39 3 Consumer Personality 61 4 Consumer Attitude 87 5 Consumer Motivation 112 6 Consumer Learning and Memory 133 7 Consumer Perception 154 8 Influence of Social Classes on Consumer Behaviour 176 9 Group Influences 215 10 Process of Consumer Decision-Making 235 11 Consumer Communication Process 272 12 Relationship Marketing and Consumer Behaviour 311 13 Market Segmentation 341 14 Consumerism and Consumer Movements: A Historical Perspective 374 15 Organizational Customer and Buying Behaviour 402 Index 423