PERSONALITY AND CONSUMER BEHAVIOR CHAPTER 5 PERSONALITY AND CONSUMER BEHAVIOR

WHAT IS PERSONALITY? Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. Inner characteristics – specific qualities, attributes, traits, factors and mannerisms that distinguish one individual from others.

The Nature of Personality Personality reflects individual differences Personality is consistent and enduring Personality can change

THEORIES OF PERSONALITY Freudian Theory According to Sigmund Freud’s psychoanalytic theory of personality, unconscious needs or drives are at the heart of human motivation and personality. Based on his analysis, Freud proposed that the human personality consists of three interacting systems.

Warehouse of basic physiological needs Individuals conscious control which functions as an internal monitor ID (System 1) EGO (System 3) SUPEREGO (System 2) Individual’s internal expression of society’s moral & ethical codes of conduct

Neo-Freudian Personality Theory Neo-Freudians believed that social relationships are fundamental to the formation and development of personality. Alfred Adler viewed human beings as seeking to attain various rational goals (style of life). He also placed much emphasis on the individual’s efforts to overcome feelings of inferiority.

Karen Horney proposed that individuals be classified into three personality groups – Complaint individuals - Who move toward others Aggressive individuals – Who move against others Detached individuals – Who move away from others

Trait Theory Trait theory focuses on the measurement of personality in terms of specific psychological characteristics, called trait, by which one individual differs from another. Consumer innovativeness How receptive a person to new experiences Consumer materialism The degree of consumer’s attachment to possessions Consumer ethnocentrism The consumer’s likelihood to accept or reject foreign- made products

PERSONALITY AND UNDERSTANDING CONSUMER DIVERSITY How personality influences consumption behavior – Understanding this knowledge helps marketer to segment and target those consumers who are likely to respond positively to their product/service communications. There are several specific personality traits which provide insights about consumer behavior.

1. Consumer innovativeness and related personality traits Measuring the level of consumer innovativeness provide important insights about the nature and boundaries of a consumer’s willingness to innovate. Dogmatism It measures the degree of rigidity (versus openness) that individuals display toward the unfamiliar, information that is contrary to their own established belief.

Highly dogmatic consumer Approaches the unfamiliar defensively and with considerable discomfort and uncertainty Selects established product alternatives, not innovative Tend to be more receptive to ads for new products/services that contain an appeal from an authoritative figure Low dogmatic consumer Readily considers unfamiliar or opposing beliefs Prefers innovative products, not established alternatives Seem to be more receptive to ads that stress factual differences, product benefits & other product-usage information

Social character Inner-directed consumers (Consumer innovators) – Social character is a personality trait that ranges on a continuum from inner-directedness to other-directedness. Inner-directed consumers (Consumer innovators) – Rely on their own inner values and standards in evaluating new products Prefer ads that stress product features and personal benefits Other-directed consumers – Look to others for direction on what is right or wrong Prefer ads that feature an approving social environment or social acceptance

Need for uniqueness Sensation seeking For people who seek to be unique, conformity to others’ expectations or standards is something to be avoided. Sensation seeking Sensation seeking is a trait characterized by- The need for varied, novel and complex sensations and experiences The willingness to take physical and social risks for the sake of such experiences

Variety-novelty seeking Exploratory purchase behavior - Switching brands to experience new and possibly better alternatives. Vicarious exploration - Securing information about a new or different alternatives and then contemplating or even daydreaming about the option. Use innovativeness - Using an already adopted product in a new way.

2. Cognitive personality factors Need for cognition NC measures a person’s craving for or enjoyment of thinking. Consumers, who are high in NC, are more likely to be responsive to the part of an ad that is rich in product-related information/description. Consumers, who are low in NC, are attracted to the background or peripheral aspects of an ad.

Visualizers versus verbalizers Visualizers - Consumers who prefer visual images or messages as sources of information Verbalizers - Consumers who prefer written or verbal information

3. From consumer materialism to compulsive consumption Materialism distinguishes between individuals who regard possessions as essential to their identities and those for whom possessions are secondary. Characteristics of materialistic people – Value acquiring and showing off possessions Self-centered and selfish Seek lifestyles full of possessions Personal dissatisfaction with their possessions

Fixated consumption behavior Fixated consumers do not keep their objects or purchases of interest a secret; and their involvement is openly shared with others who have a similar interest. Characteristics of fixated consumers – A deep interest in a particular object or product category A willingness to secure additional examples of the object or product category of interest The dedication of a considerable amount of discretionary time and money to searching out the object or product

Compulsive consumption behavior Compulsive consumption is in the realm of abnormal behavior – an example of the dark side of consumption. Consumers who are compulsive have an addiction; sometimes, they are out of control and their actions may have damaging consequences to them and to others.

4. Consumer ethnocentrism: Responses to foreign made products Ethnocentrism vary by country and product. Marketers target ethnocentric consumers in any national market by stressing a nationalistic theme in their promotional appeal. Marketing mix strategy can be used to manage COE.

Marketing mix Positive Negative Product Price Place Promotion Emphasize “made in” Premium price Exclusive locations Country image Nation sponsored Negative Emphasize brand name Low price to attract Establish supply chain partners Brand image Manufacture sponsored

BRAND PERSONALITY Brand personification Recasting consumers’ perception of the attributes of a product/service into a human-like character. Product personality and gender A product personality frequently endows the product or brand with a gender. Product and services are viewed by consumers as having gender.

Product personality and geography Certain products, in the mind of consumers, possess a strong geographical association. By employing geography in the product’s name, the product’s manufacturer creates a geographic personality. Personality and color Consumers tend to associate personality factors with specific colors.