Consumer Behaviour

1.0 Introduction

The aim for this study is to carry out a comprehensive literature review on the topic of shoplifting within the area of consumer behaviour. The topic will discuss who engage with shoplifting within the consumer behaviour theories. The area will also discuss how consumer engages with shoplifting and why they shoplift, which will lead to the justification of that particular behaviour. Also within the justifications it will discuss the outcomes of this action, if it is a personal gain or potential profit.

Shoplifting has concluded to be one of the worrying and less understood in the area of consumer behaviour, which can come to surprise that of the literature being rather limited (Cole, 1989). Normally, this area of investigation is concentrated on reflecting the potential budget and benefits that occur within shoplifting, which Johnson, (1991) stated in the three elements of young shoplifting manners that consist of experiential, financial and societal. However, Belson (1975) argues that shoplifting can easily be examined within the area of observed motivation grounded by the area of perceived eagerness. Klemke (1982) agrees stating that motivation is usually what triggers an individual to behave in a certain way. Social influences for motivation within shoplifting were seemed to be unnoticed (Moore, 1983).

2.0 How shoplifters see the world

A significant difference was recognized within the profiles of shoplifter and non-shoplifters by Beck and McIntyre (1997) stating that the evaluation data from Minnesota Multiphasic Personality Inventory (MMPI) was provided information about three types of categorized fields. The three branded categorise areas contains of one time shoplifters, lingering shoplifters or never shoplifted. While the self-report data from MMPI was carefully analysed it discovered that the high rate of shoplifting group was suggestively higher within the psychopathic deviancy scale, which reflects on the psychological level of the individual’s behaviour. It displayed that shoplifters had two levels up for rebelliousness than individuals that do not shoplifters, which is not a high difference (Skinner, 1957).

However, within the lingering shoplifters it has shown a large difference within the scale of psychological aspect. Both males and females was analysed as a male positioning, which discovered that the collective profile for this group was measured to be reflective of psychological behaviour (Kraut, 1976). Females that have been measured to be depressed and sex role interested have reached a high level in the scale of psychological aspect (Ferster and Skinner, 1957). The interpretation that was obtained from this measurement is that even though these females are very comparable with chronic shoplifters concerning masculine positioned and anti-establishment attitude their somatic fears and their current depression categorise them as individual that would turn their emotions within themselves rather than against others. Therefore, they are less likely to use these emotions as hostility towards others (Ray, 1987).

Males that were measured to be paranoiac and sex role concerned have also reached a high level within the scale of psychological aspect (Mills, 2000). Within the male’s area the interpretation that was obtained enclosed that the individuals tend to be immature, hostile individual and interpersonal sensitive and female interested. These males have shown to have strong anti-social approach as well. However this occurs due to their passivity, they are most likely to not recurrence the shoplifting performance due to the fears that occurs (McShane and Noonan, 1993). Moore (1983) reflected within these measurements by observing 80 full-time university students that was convicted for shoplifting and discovered that there was no substantial difference between their characters. However, some within the research disavow to shoplifting. The shoplifter’s illegal act was considered to be recognized as mental and emotional issues.

The observation also showed that the second largest attribute of motivation was of the deviance personality (Rachlin, 1991). These types of individuals have the personality of rebellious and uncharacteristic towards public norms and social perspective which leads to no expression of guilt for committing shoplifting offense and was also of range when they eventually become caught. However, Ray et.al (1983) argues that from his research it was discovered that the individuals contained of large amount of confusion and depression which leads to fear. These types of individuals that shoplift are usually experiencing social stress, economic pressure and depression. They are also expected to place a high worth of material belongings and also have a negative outlook towards the law (Fletcher, 2000). These numerous combinations of motivational factors can produce a complete image of the shoplifting behaviour (Klemke, 1992). The complex factors that occur within motivational and characteristics of shoplifting appear to be progressively treasured within the researchers.

3.0 Why do individuals shoplifting

Individuals can have many different reasons for shoplifting. It all can measure to the situation the individual is in. According to Ajzen (1991) the theory of planned behaviour gives the purpose to why individuals behave in a certain way. The three stages to the theory of planned behaviour is attitude, subjective norm and perceived behavioural. The attitude that an individual has towards certain behaviour such as shoplifting determines the behaviour the individuals decide to take and the outcome that occurs with the action (East, 1997). The subject norm describes to degree that other individuals find that action acceptable or unacceptable. The last stage of the theory is the perceived behavioural control that measured the difficulties of accomplishing the behaviour. These theoretical factors combined conclude the influence behaviour and how they interact with each other (Foxall and Goldsmith, 1994).

The attitude is evaluated by the belief the individual has toward the action, such as if it is a positive or a negative act. In this area shoplifting is seen as a negative act due to being a illegal manner. Herring (2008) stated that shoplifting is a criminal offence due to the individual having the behaviour of obtaining an item that is in a financial range. This behaviour has not been seen as a large offence if the shoplifting only happened once, but if it is a regular occurrence it can be seen as a deeper issue (Fletcher, 2000). However, even though individual’s area aware of this negativity, they still perform this act due to the circumstances they are in or the psychological behaviour the individual has. Though the attitude is seen as a negative behaviour, individual can become influenced to perform by the subject norm (Albarracin, et.al, 2005).

The subjective norm is the pressure the individual is given in order to shoplift. The individual can experience different types of pressure, such as social pressure, economical needs etc. Ajzen (2002) stated that individual’s strongest influence tends to be from group influences. However, Pelphrey and Carter (2008) argue that financial issues can be the main barrier of the influences. But it all comes down to the specific situation the individual is in. Every individual have their own motivation for pursuing the behaviour of shoplifting, it can be measured in different way, which will be expanded further (Wicker, 1969). However, once the influence have been effective and the action is about to be performed, it can be measured on how difficult the action could be, which is the perceived behavioural control.

The difficulties that can occur within perceived behavioural control can be studies in two factors which are moral norm, estimating the effect of individual morality on shoplifting behaviour (Parmelee and Perkins, 2010). The moral norm of shoplifting is that it is a negative behaviour each means that the difficulties that might occur is security (Albarracin, et.al, 2005). Every illegal manner has their way of uncovering which in this case it is used securities such as cameras and security guards. Estimating the effectiveness of individual morality in shoplifting behaviour depend on what level the person is in. For instance, if it is one time occurrence more fear might prevent the person from shoplifting. However, if it is a regular occurrence the individual might be more persuasive unless they were discovered by others (Tonglet, 2002).

4.0 Classification of shoplifting

Shoplifting can be divided in two general categories, which are amateur that includes the satisfaction of stealing and psychological need. Amateur contains of teenagers, kleptomaniacs, housewives, alcoholic, vagrants and drug addicts (Lewison and DeLozier, 1982). The second category which is the emotional need is usually specialised shoplifters who shoplift has a career. However, once given the opportunity or reason, individuals from most customer group will shoplift (Outcalt, 1990). Guffey et.al (1979) stated that in every social class and demographical groups shoplifting can always occur.

A research by National institute of justice (1991) stated that 80 per cent of the individuals that shoplift are usually not caught, which concludes that any individual can be a shoplifter and out of all the incidences of shoplifting one in five shoplifters are professionals (Griffin, 1989). However, even though a large amount of individuals do not get arrested, one-half of those that do become arrested are usually teenagers (Thornton, 1992). It also has shown that some shoplifters tend to shoplift in group, such as teenagers and professional, which tend to use the tactic of shoplifting in groups to cover items (Verrill, 1984).

A study that was considered by Cameron (1964) was the two elements of profitable shoplifters, which are professionals and kleptomaniacs. Professionals are the individuals that would steal to sell and have a distinct contact with subcultures. These types of individual carry tools and instruments on them to assist with the theft. This group would possibly struggle arrest if they would get confronted and will attempt to flee the store. If caught and detained, they will remain cool and calm, showing no remorse or emotion (Outcalt, 1990).

Kleptomaniacs are rather different from professionals. They are chronic shoplifter but also respectable inhabitants, which means they would not sell the stolen item. Griffin (1989) argues that there is a different group of shoplifters, which is rational and non-rational. Rational is the individual that shoplift with a purpose and non-rational are individuals with no motivation by need or desire (Solomon. M et.al, 2010). Individuals that classifies as kleptomaniacs are individuals that are impulsive and often careless. They would take items that they don’t need and cannot use, for instance stealing shoes that don’t fit. If these individuals would get caught, numerous of them would probably admit they are kleptomaniacs and do not feel much remorse or shame (Verrill, 1984).

4.1 Demographical Perspective

In the area of shoplifting, the demographics that occur are the gender, age and race of the individuals. The different age groups that shoplift can vary due to having different needs. Callen and Ownbey (2003) stated that individuals under the age of 20 tend to be the largest rate that shoplift due to the excitement that they feel when shoplifting. However, Wilkes (1978) argues that the individuals that are absent minded are a quite large rate of shoplifter as well. The absent minded are individuals that are in a hurry such as elderly individuals.

These type of individuals are sometime on medications or probably would have memory or cognitive issues (Wilkes, 1978). However, East (1997) stated that male and females reasons for shoplifting can be different due to the different ways of thinking. Klemke (1992) argues that females are more influenced to shoplift due to having the psychological influences that motivates to shoplift. For instance, when a female decides to shoplift it is psychological seen to be a very bizarre behaviour. But, when a male shoplift it is seen to be a rebellious act to perform, in this way shoplifting for males and females perceived in different ways.

But not only males and females that can be perceived in different ways, an individual’s ethnicity can make a different to individuals. As Oliphant and Oliphant (2001) stated individuals that are so called “black” ethnic tend to be perceived as the largest amount of shoplifters. However it has shown that it is quite equal. However, it has shown that “white” and “black” ethnicities shoplift for different reason. For instance “black” ethnic tend to shoplift for items that is mostly needed in a daily bases and are quite inexpensive, while “white” ethnic tend to shoplift for group pressure or just for the thrill (Callen and Ownbey, 2003).

4.2 The Social Influences toward Shoplifting

Social influences can occur in every area of an individual’s life. Within shoplifting it tends to occur within teenagers. The young individuals can become easily influenced due to the need of belonging somewhere. The theory used to measure social influences is the social cognitive theory, which is the subgroup to the cognitive theory (Solomon. M, 2010).

This theory mainly concentrates on the way individuals learn to portray the behaviour of other individuals (Rachlin, 1991). It can be seen in area such as peer pressure which is commonly occurred within shoplifting. The theory has four steps which are observing individuals, learning the observation, follow the behaviour and learn how to follow the behaviour Thornton, J. (1992).

An individual goes through these stages in order to feel needed. For instance, there are individuals that seemed to become pressured into shoplifting due to wanting to join a certain popular group. Shulman. T.D (2006) stated that these shoplifters would repeatedly steal in groups, which would lead to a criminal offence. However, while the individual is going through these stages, they seem to not be aware of the seriousness of a crime until the crime as already been committed. This occurs due to the person only being concerned about becoming a part of a group (Outcalt, 1990).

4.3 The Social classes of shoplifting

In the shoplifting area there are two levels of social classes, which are low-class and upper-class. According to some researcher somewhat few studies has shown that socioeconomic statues can have an impact in shoplifting behaviour. For research it was discovered that within this field the individuals that do become caught from shoplifting are not characteristic of all shoplifters (Ray and Birar, 1988). The individuals that is most likely to shoplift within this zone of individuals that are unemployed. Within the research of Parmelee and Perkins (2010), males within this area were unwilling to inform details about their employment to the researcher due to having the anxiety of risking their careers. However, it was discovered that the relationship between the shoplifters and social class is a very strong bond.

Within the low class it was shown that the main shoplifters are youths compared to the upper class. Observing a study of the youth within shoplifting discovered that the youngsters that shoplift have change behaviour throughout the years due to become more modern within the association between socioeconomics and shoplifters have developed to a more advanced level (Gold, 1970). However, the relationship between them two has become stronger for the females and weaker for the males due to being able to be controlled by the individual’s lust of the opposite sex (Hindelang et.al, 1981).

The chronic shoplifters of low class are usually the individuals who shoplift due of economic need. They are the type of individual that would shoplift due to being financially restricted (Tonglet, 2002). Normally, they will steal items that the individual is in need of, such as food, diapers, toiletries, or children’s clothing. Frequently, these individuals’ manners of appearance and hygiene may be poor. If caught, they would possibly show remorse, but state their frustration with their lack of money, and may express hostility against the “System” that keeps them impoverished (Shulman. T.D, 2006). The motivation that occurs due to economic improvement is the main reason to why individuals shoplift. Some of the characters go through discomfort and anger from experiencing the poverty and unfairness from society (Foxall and Goldsmith, 1994).

4.5 The Culture effect of shoplifting

Culture classifies areas of behaviour into discontinuous units of value in society. Areas that get measured within the behaviour of shoplifting are norm, mores, conventions and custom (Solomon. M, 2010). Norms measure the acceptable and unacceptable of the individual’s behaviour, which get measured by the mores. Mores is the moral standards of the behaviour (Kandel et.al, 1986). Customs tend to be around the behaviour that last over time. However, in unacceptable behaviours such as shoplifting, it can tend to become within a group. Conventions include the ties that are conducted in the everyday life, which in this area are individuals that shoplift as a living (Huizinga et.al, 1989). The largest are of the subculture within shoplifting is substance abuse.

Substance abuse is an identified subculture that reflects well on the mixture of poor coping abilities with the attitude towards an antisocial behaviour, which is the usual of an individual involvement within the street-level drug scene (Van Kammen and Loeber, 1994). According to Shulman. T.D (2006) this group emotionally has a lot of suppressed anger and also establish signs of other obsessive habits, such as over eating, shopping, drug use, or gambling.

These forms of individuals prefer give to others and do not take care of themselves. Naturally, they would possibly steal items that are inexpensive, and tend to give the stolen item to others as gifts. If caught, they will show guilt, shame, or remorse (Dembo et.al, 1994). Often, they will breakdown and cry when caught and confronted. Numerous of researches have described shoplifting as a career of many obsessive habits in a low income area (Shulman. T.D, 2006).

5.0 Conclusion

In conclusion, what have been gathered from this theoretical framework is that individuals that shoplift depend on the person level in the psychological scale, such as the motivation that is occurred within the situation that the individual is in. This would give an idea on how an individual personality is, depending on what level in the scale they are in. The motivation that is developed creates the behaviour act for the individual. A planned for behaviour for shoplifting goes through the process of thinking if the act is a negative fact, what will happen if this act get fulfilled and lastly how it is perceived.

Motivation factors become influenced by different classification within shoplifting such as the demographical influences, which entail the different gender, ethnicity and age. These three elements can make a difference on how an individual is perceived in the society. Social influences can make an influence on individuals by peer pressure which is commonly used around teenagers.

However, social class can motivate an individual as well, but this can differ depending on the low and upper classes. Low class tend to shoplift item an individual is in need of in a daily bases. The individuals that become effective of culture environment can occur within substance abuse.

6.0 References

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1.0 Introduction and Discussion – 20%

Consumer buying is important to society because it is a key component of the economic system of many countries, it can influences by political, religious, spiritual, environmental, social and cultural aspects of society (Jim Blythe, 1997). Nowadays, consumers are more toward to ethical purchasers because they are more aware that their consumption pattern is part of global political and economic system (Solomon, M., G. Bamossy, S. Askegaard and M. Hogg, 2009).

Generally, consumers reflect their values and beliefs by what they do or do not buy (Dickinson and Hollander, 1991). For example, consumer perceptions will signify the strengths and weaknesses of countries by favouring or dislike goods produced in a particular country. Sometimes consumer negative experience generate boycott of a company’s products, or even protests against everything from a politically undesirable country by discourage consumption of products from certain companies or countries, like boycotting Israel products.

Boycotting is a form of ethical purchase behaviour. The term “boycott” arose in the year 1880 after Captain Charles Cunningham Boycott, an English land agent in Ireland whose ruthlessness in evicting tenants led his employees to refuse all cooperation with him and his family (Hazem Jamjourm, 2008).

According to an Environics, the trend to boycott and warn against those irresponsible companies are strongest in North America and Oceania, and Northern Europe, while in Eastern Europe, Central Asia and Latin America taken boycott is very unlikely (Rob Harrison, Terry Newholm, Deirdre Shaw, 2005). Boycotts have become a pervasive and effective instrument of consumer dissatisfaction in today’s marketplace. Economist (1990, p. 69) writes: ‘Consumer boycotts are becoming an epidemic for one simple reason: they work to initiate organizational and social change’; a recently conducted survey reports that 50% of Americans claim to have taken part in a product boycott (Dolliver, 2000). Between 1988 and 1995, over 200 firms and over a thousand products were actually subject to organised boycotts in the US. On the other hand, according to the Co-operative Bank’s latest research the value of boycotts in 2007 was up by 15% in the food and drink sector and 20% in the clothing sector. Money talks, they say. So listen to these figures – food and drink boycotts in 2007 in the UK were valued at ?1,144m, travel boycotts ?817m, and clothing boycotts ?338m (Ethical Consumer, 2008).

2.0 Critical Analysis (Theory) – 50%

2.1 Definition of Consumer Boycott

Boycotts are a widely used movement tactic to gain influence over corporations to adopt some change in practice or policy. It can be anti-corporate, labour, and other social change movements (Manheim, 2001). In this few years, a number of theorists have studies and outline the theory of boycott. Smith (1990b:258) explain boycott was essentially a moral act; an expression by the consumer of disapproval of the firms activities and disassociation from them.

Friedman (1999, p.4) defines consumer boycotts as “an attempt by one or more parties to achieve certain objectives by urging individual consumers to refrain from making selected purchases in the marketplace.”

Laidler (1968) defines boycotting as “an organized effort to withdraw and induce others to withdraw from social or business relations with another.”

From different view of the theorists, consumer boycotts can be explain in more specifically that consumer boycotts is a collective act from the consumers to refusing buying a company’s services or products, consumers express their dissatisfaction with intention and make political claims about corporate practices.

2.2 Advantages of Boycotting

Although boycott would seriously hurt the business, in fact, boycott has advantages. The main advantage of boycott is a way that consumers can use their power for positive social change. Another advantage is the exposure of irresponsible company with less people buying their products and buying substitute goods. As result, demand and supply for substitute goods will increase to enhance competition in the market and firms will reduce their process as a result to compete and also to gain the extra consumers this will benefit the smaller firms to gain more of the market share (Baumeister, Roy F., 1998).

2.3 Disadvantages of Boycotting

Boycotts are an unwelcome act to marketers because firms targeted by a well-supported consumer boycott have apparently failed to sustain a sufficient customer focus. In the recent world, most of the companies are sensitive to boycotts because they can have serious financial implications (Pittman, Thane S., 1998).

Observably, there are lots of disadvantages to boycotts though. One of drawback is boycotting could be a large reduction in jobs. After boycotting a company, there can cause an unfavourable impact on individuals and communities which become innocent victims of the economic damage.

Secondly, the company reputation will be harmed as a result on the impact of consumer boycott. Hence, this is not good for company as it would need to lower its prices to get back the consumer purchasing demand.

Somehow, consumers boycotting not purchase particular countries produce cause a loss of worldwide specialisation and technology in third world country because most of the company may not do business with them. Also this action may limit consumer choice from the market.

Another disadvantage to the company is that the company budgets will get ruined and will need to be analysed and changed. Furthermore the gross domestic product of the host country could fall. Besides that, there can also result irregularly violence and antipathy from the boycotts.

As conclude, although consumer boycotting brings lot of drawback to companies as well as it also bring advantages. Marketer should make a balance view of boycott and learn from other companies’ mistake to enhance the operation and create positive value to consumers.

2.4 Example of Successful Boycott

In fact, empirical examinations of corporate recognition to boycotters demands found that only a quarter of all publicized boycotts were successful (Friedman, 1985). Boycotts can be successful because when result in increased public scrutiny of the company. This in turn will cause concerns inside the company about lost profits from the loss in consumer interest and companies are always concerned about their financial position.

Countless successful boycott examples could be given of the boycott in use by many different groups of people in past centuries. One well-known successful boycotting example is boycotting Barclays Bank in year 1986. Boycotter choosing to boycott Barclays Bank because they have strongly believed Barclays’ company as the largest bank in South Africa supported apartheid is a wrong consequence. Besides that, consumers participate in the boycott may have been motivated by the belief that supporting boycott could helping people from South Africa by forcing Barclays’ withdrawal and speeding the downfall of the apartheid regime, secondly is the consumers desire not be associated with a company that directly or indirectly benefits from apartheid, a “clean hands” motivation; and lastly it show that a reluctance to be seen patronizing the “apartheid bank,” an avoidance of unseemly conspicuous consumption. As result, Barclays was forced to pull out of the country after protests against its involvement during the apartheid regime. Also at that time, Barclays led to a drop in its share of the UK market from 27 percent to 15 percent.

Consumer boycotts upon environmental arguments are a strategy commonly used by many environmental NGOs. Procter and Gamble has been focus of a long running boycott from the Uncaged Campaign due to the use of animal testing. P&G declare that animals are used in their ‘product safety research’, as well as cats and dogs in pet food experiments, Uncaged’s investigations continue to expose disturbing examples of P&G’s ongoing involvement in a painful and dangerous animal tests. P&G test on animals because of their desire to get new chemical ingredients on the market and to make as much money as possible. Garrett’s (1987) review of the boycott literature hypothesized six factors in boycott participation: the awareness of consumers; the values of potential consumer participants; the consistency of boycott goals with participant attitudes; the cost of participation; social pressure; and the credibility of the boycott leadership. However, according to the report on boycott P&G Day 2010 actions, the fourteenth global boycott P&G Day on 8 May 2010 has ratcheted up the pressure on P&G to stop their cruel and unreasonable animal testing.

Moreover, another famous boycott case is the Nestle. A number of groups, many of which are coordinated by the International Baby Milk Action Network (IBMAN), have called for the boycott of Nestle products due to Nestle’s marketing practices in promoting infant formula in poor countries. IBMAN points to the dangers of formula feeding in developing countries (most notably, lack of clean water to use in mixing formula powder). Further, it maintains that Nestle is exploiting susceptible customers and contributes to increased infant mortality.

To examined the boycotters’ intentions to participate, motivations for participating, and actual product choice, as result their participation is based on product judgments and their perceived badly of Nestle’s actions, boycott participation and brand image. According to observers of boycotts, boycotters have this feeling because they are referring to the ‘moral outrage’ (Smith 1990). The latest Update of Baby Milk Action’s Boycott News, the international boycott is having an important impact on Nestle, not only in direct economic terms but also in manipulate damage to its corporate image, management morale and management time the company must spend struggle it.

2.5 Solution for Companies to handle boycott

It is not possible to study consumer boycott effectiveness without studying the target’s reaction to the protest. A satisfactory response, complying with a campaign’s demands, can stop a boycott before it has even got under way, whereas a reaction that is deemed insufficient or abusive could potentially recruit new members to the campaign. Smith identified four key types of management response: ignore, fight, fudge/explain or comply (1990b: 254).

One increasingly popular solution used by marketers is to set up a joint task force with the boycotting organization to try to iron out the problem. For instance, in the US, McDonald’s used this approach with the Environmental Defence Fund, which was concerned about its use of polystyrene containers and bleached paper. The company agreed to test a composting programme and to switch to plain brown bags and to eliminate the use of antibiotics in such products as poultry.

3.0 Conclusion – 20%

In conclusion, consumer boycott is an effort to punish those irresponsible companies. Yet consumer boycotts often have a large number of participants, and sometimes be successful in changing the behaviour of firms. Generally, participation may be driven by individual motivations such as guilt, the maintenance of self-esteem, and the avoidance of dissonance; individuals may seek a “thrill of victory”; or behaviour may be influenced by a false consensus bias.

Despite the problems of causation, many writers agree that there is persuasive and widespread evidence of boycott actions delivering on social or environmental goals. Examples include P&G anti animal testing in production; keep away from Barclays Bank apartheid in South Africa and persuade Nestle to take responsible the problem in third world. Obviously consumer boycotts cannot effectively address the full range of social and environmental issues, because it requires choice and competitive markets to function. Finally, consumer boycotts have the potential to harm many innocent parties, including guiltless workers and the various economic entities that depend on the boycotted firms.

2) B) Discuss the various ways in which marketers can attempt to influence consumer perception and attitudes, using examples to illustrate your argument. (60%)

1.0 Introduction and Discussion – 20%

According to International Monetary Fund (2010), analyse that in year 2010 the world spending is at GDP 62,909274. United States have the highest GDP, which are 14,657,800.

Consumer is the most important person to marketer because marketer takes into account consumer likes and dislikes on the production of goods and services. Marketing and consumer behaviour are basically connected. By clearly understanding of consumer behaviour to support all marketing activity, it is a necessity to organizations for being marketing orientated and thus profitable.

However, to understanding what consumers buy or not to buy is the most challenging concept to marketers. As consumer buying behaviour is difficult to be understanding clearly because factors affecting how consumers make decision are extremely complex. Buying behaviour is deeply rooted in psychology with dashes of sociology. The reason is, since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made.

In general, there are three main factors that influence consumers buying decision which are personal, psychological and social. Besides that, involvement also can be a major factor in consumer’s decision making. Because consumers often form emotional attachments to products, for example most people would be familiar with the feeling of having fallen in love with a product.

But, studying consumers can help marketers improve strategies. Through obtaining a view into how consumers think, feel, reason and choose. Marketers can use this information to design products and services that will be in demand. By understanding customers better it can improved trading relationships. Next is can reduced cost and greater efficiency, for example, through better targeting of marketing efforts, which reduced the cost per sale. Third is improved competitiveness, by understanding consumer, marketer can through consumer feeling adapt in marketing practice to result more effective. Lastly, it will gain more sales.

2.0 Critical Analysis (Theory) – 50%

2.1 Perception

Before making purchase, consumers go through series of steps. These steps include problem recognition, information search, alternative evaluation, purchase decision and post purchase evaluation (Appendix 1). In the information search process, psychological element that influences consumer is perception which influences the way consumers receive information.

Jim Blythe (2001) explains perception is the way people build up a view of the world.

While William D.Wells and David Prensky (1996) define perception as the process by which an individual uses his or her perceptual processes to selects stimuli, organizes information about those stimuli, and interprets the information to form a coherent, meaningful view of the world (Appendix 2). Stimuli are inputs into any one of the five senses – vision, hearing, smell, taste, and touch. The explanation of the stimuli can be subjective on individual’s environment that becomes the basis for the behavioural processes of learning, attitude formation, and decision making. At the same time, it has cultural, social, economic, and psychological bases since it requires the selection, organization, and interpretation of what the individual senses.

For example, consumers manage to purchase certain products and leave the store without becoming overwhelmed. This is because of their background characteristics, past experiences and motivations to satisfy their needs help to assign meaning to the stimuli and recognize products that will offer certain benefits to them. Therefore, marketers should design their packages so that consumers will be able to distinguish them from other stimuli in this hectic retail environment. For instance, Innocent created a range of smoothies especially targeted to kids. In the packaging of this range of products, the Innocent brand identity is enriched with some funny details on the logo, in order to immediately distinguish this product from the others and appeal the children.

Perception plays important part in marketing programmes, where the use of pictures, images, spoken and written language, colour, noise, music, tastes and smells are used in such abundance. At the information search stage communication campaigns should be informative in nature, so when marketers make an advertisement it should provide information about the product and its attributes to consumers. This helps in creating brand awareness and dispelling doubts regarding the product among consumers.

Individual’s perception is unique and powerful in its inferences for marketers. Usually, consumer purchase will take place when individual perceives that product or service will offer benefits of needs. Hence, marketers must understand how perception works in order to communicate successfully a product’s benefits.

In reality, consumers exposed to advertising and promotion do experience information overload. Hence, the perceptual process includes a component called selective perception, which allows individuals to screen out some stimuli while allowing other stimuli to be perceived. Therefore marketer can use clear communication as strategy. Advertisements should be copy tested to ensure consumers get the message. Things to avoid include incorrect understanding of imagery, inappropriate humour, and double entendre. Also, lengthy communications are less likely to pass through consumer’s mental filters.

Perception is also subjective. People understand things differently. The manner in which consumers organize and interpret information is individualistic and biased. That is, people experience subjective perception; perception deviated from reality due to individual differences in the perceptual process.

2.2 Attitudes

2.2.1 Definition of Attitudes

The next step of consumer buying process is evaluation of alternatives which information is gathered. Another key element that influences the evaluation process is the attitude of the consumer towards the product.

Attitudes are learned, it will be affected by new information and experience. Consumers use perception and learning to gather new information and combine with knowledge about product’s quality and benefits. This serves the basis for evaluating the choice products from which consumer will make purchase decision.

An attitude is how positive or negative, favourable or unfavourable, or pro or con a person feels toward an object. This definition views attitudes as a feeling or an evaluative reaction to objects.

A second definition represents Attitude can be defined as ‘a learned tendency to respond to an object in a consistently favourable or unfavourable way’ (Onkvisit and Shaw, 1994). This definition is slightly more complicated than the first because it incorporates the notion of a readiness to respond toward an object.

A third definition of attitude popularized by cognitively oriented social psychologists is: ‘an enduring organization of motivational, emotional, perceptual, and cognitive process with respect to some aspect of the individual’s world’ (Krech and Crutchfield, 1948). This views attitudes as being made up of three components: (1) the cognitive, or knowledge, component, (2) the affective, or emotional, component, and (3) the cognitive, or behavioural-tendency, component.

As conclude, an attitude is a learned tendency to act in a consistent way toward an object based on feeling and opinions that result from an evaluation of knowledge about the object.

Yet, attitude formation is the process by which individuals form feeling or opinions toward other people, products, ideas, activities, and other objects in their environment (Michael R. Solomon, 2004). Attitude toward object is combine with three factors, first is learned knowledge form previous experience, second is evaluation based on individual’s knowledge, last is tendency to act based on evaluation.

Attitudes are important to marketers because consumer will based on their attitude towards the product to buy or not to buy. But marketer cannot directly observed attitudes as attitudes are the result of motivation, perception, and learning. By understanding consumer attitudes, marketers can use interviews and surveys to measure consumers’ attitudes.

2.2.2 The functions of Attitudes

Daniel Katz (1960) has developed functional theory of attitudes to explain how attitudes facilitate social behaviour. Attitudes provide individuals to apply their knowledge to an evaluation of alternative products and, consequently, to make faster, easier, and less risky purchase decisions to satisfy their needs.

Obviously, attitudes help individuals with four primary functions, which are utilitarian, value-expressive, ego-defensive and knowledge function. To clarify, utilitarian function is gain utilitarian benefit from the product, while value expressive is product express individual’s values and lifestyle, and ego defensive is about a product that support self-concept and finally knowledge function is organize individual’s knowledge about product in his or her environment.

2.2.3 Attitude Models

Consumers’ attitudes to products can be complex. They vary according to valence, extremity, resistance, persistence and confidence (Jim Blythe, 2008). Attitude has three components: affect, which is about the consumer’s emotional attachment to the product; behaviour, involves the person’s intentions to do something with regard to an attitude object and cognition, which is to do with the conscious thought processes. These three components are known as tri-component attitude models or as the ABC model of attitudes (Appendix 3). This model emphasizes the interrelationships between knowing, feeling and doing. Consumers’ attitudes towards a product cannot be determined simply by identifying their beliefs about it.

The second attitude model is multi-attribute models. This model is unlike tri-component models cause it focus on an object’s multiple attributes and suggest individual’s attitude toward the object is the result of the aggregation of his or her evaluations of each one. There are three components is this models too, which are attributes on which the object is evaluated, beliefs about whether an object possesses the attribute and an evaluation of the importance or relevance of each attribute in determining the individual’s overall attitude toward the object (Martin Fishbein, 1963). This model is emphasizes that beliefs and evaluations both require evaluation of knowledge.

Next is the attitude-toward-the-ad model. This model is an effort to understand how advertising influences consumer attitudes toward a particular product (Terence A. Shimp, 1981). Variables in these models include where, when, and in what context the as is seen as well as the effectiveness of the ad in generating feelings and dispelling negative beliefs. Mean that, an advertisement influences not only consumer’s attitudes about the ad itself but also their view of the product. As conclude, attitude-toward-the-ad model is consumers form feeling and judgments as the result of their exposure to an ad.

2.2.4 Measuring Attitudes

In order for marketers to use that various attitude models, they need to measure all of these beliefs and evaluative components. There are three common methods used to measure attitude components. First is the observation of behaviour, second is qualitative investigations then attitude scales. Each has unique advantages, depending on the circumstances and all are helpful in determining the strength and direction of particular attitudes. The most often use by marketer is the attitude scales like consumer survey questionnaires with quantitative scale taken by consumers. In fact, this method may be hard for participants to recall information or to tell the truth about a controversial question.

2.2.5 Marketer changing consumer attitudes

Marketer can attempt to influence consumer’s belief, affect, and conative intention by providing information about the attributes and benefits consumers use to form attitudes by influencing the social context in which consumers form those attitudes. For example, usually consumers look to members of their reference group for information and advice, marketers use communication tool to influence consumers and the information and advice can change their attitudes.

In actuality, marketer changes consumers’ beliefs or evaluation of the product by promote their product offers benefit and will satisfy their needs better than competitors or previously product. The strategies marketers employ to influence and promote attitude change include adding benefits, changing product or package, changing the criteria for evaluation and linking products to existing favourable attitudes. The most often strategies use to influence attitude change are adding benefits and changing product or package. To enhanced product value, the product must offer multiple benefits to consumers. As consumer’s attitudes will become more positive by product’s perceived value increase. For example, Johnson’s Baby Oil claims to soften a baby’s skin, condition adults’ skin, remove makeup, and promote tanning. Besides that, consumers often form attitudes in response to changes that improve a product’s ability to deliver benefits. Softsoap, for instance, introduced liquid hand soap and in turn favourably influenced consumers’ attitudes about the convenience of the product. An alternative to changing the product itself is changing its packaging. For example, Jif peanut butter available in a plastic container. As result, changing package consumers’ attitudes are formed in part by evaluating packaging features that offer convenience and environmental benefits. The drawback of this changes will increased costs for company to maintain competition within market place and maintain their share hold of market. Also works against the consumer, as newer products make older product obsolete, resulting in more costs to remain current.

3.0 Conclusion – 20%

In conclusion, according to Katona and Strumpel (1978), attitudes and perception are closely related. Both concepts tend to affect one’s perceptions and shape one’s behaviour. To identify consumer perception and attitude concept and function, several theories and models were represented. This is to focuses attention on how some of the factors that can contribute to those concepts and how they are evaluated by the consumers. Besides that, some examples are listed to support and identify various way that marketer attempt to influence consumer perception and attitudes. Lastly, it is useful that marketers have a better understanding on consumer’s attitudes and perception so that strategies can be applied in a proper manner to gain competitive advantages from other competitors and also can capture consumers’ attention for products to leading successful.

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Consumer behavior towards the new packaging of FMCG products. The importance of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged FMCG products. This research utilized a focus group methodology to understand consumer behavior toward such products. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer’s behavior towards the packaging of FMCG products.When consumers search for and process information in-store, the product’s package can contain relevant and useful information for the consumer. Product packaging forms the end of the ‘promotion-chain’ and is close in time to the actual purchase and may therefore play an important role in predicting consumer outcomes.

Packages also deliver brand identification and label information like usage instructions, contents, list of ingredients or raw materials, warnings for use and directives for care of product.Introduction “Packaging is the container for a product – encompassing the physical appearance of the   container and including the design, color, shape, labeling and materials used” Packaging has a huge role to play in the positioning of products. Package design shapes consumer perceptions and can be the determining factor in point-of-purchase decisions which characterize the majority of shopping occasions In recent years the marketing environment has become increasingly complex and competitive.A product’s packaging is something which all buyers experience and which has strong potential to engage the majority of the target market. This makes it an extremely powerful and unique tool in the modern marketing environment. In addition to its benefits in terms of reach, some marketers believe that packaging is actually more influential than advertising in influencing consumers, as it has a more direct impact on how they perceive and experience the product. In most cases, the experience has been that pack designs are more likely to influence the   consumer perception of the brand.

” For products with low advertising support, packaging takes on an even more significant role as the key vehicle for communicating the brand positioning Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large.Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer packaged food products and drinks. Some of the best known examples of Fast Moving Consumer Goods companies include: General Mills, H. J.

Heinz, Reckitt Benckiser, Sara Lee, Nestle, Unilever, Procter ; Gamble, Coca-Cola, Carlsberg, Kleenex, Kraft, Pepsi, Wilkinson and Mars. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental – as opposed to luxurious – needs. Rationale of the Study Package design shapes consumer perceptions and can be the determining factor in pointof-purchase decisions that’s why termed as a Silent Salesman. hile study the consumers behavior regarding packaging there are various attributes like Convenience, Brand name , Aesthetic components , Information it conveys (how to handle, use etc…) Packaging influence consumer to buy a particular FMCG brand in our study we have taken skin care , oral care , deodorants, hair care, cosmetics that is all home ; personal care product we are taken the consumers perception towards the packaging in preserved product and whether the packaging influence customer to switch from one brand to other brand Research Methodology Research design specifies the methods and procedures for collection of requisite information and its measurements and analysis to arrive at certain meaningful conclusion at the end of the proposed study.

We conducted this research with the help of questionnaire and from the initial stages, to the final designing of questionnaire; we conducted our research through exploratory research as well as descriptive research Objectives of the Study.

• To find out the Consumer Attitude towards the new Packaging of Preserved Products.
• Is Packaging Influence Consumer to switch from one to another Brand?
• Research Design Universe of the study: Whole population of Ghaziabad city who visit mom-pop stores retail outlets like Big Bazaar, Subhiksha, more…
• Sample Size : Sample size of 50 Customers.
• Sampling Technique : As no sampling frame of the population was available, samples for the study were chosen by using random sampling due to its time and cost feasibility. Interacted with the customers at random on one to one interaction to gain the information.
• Data Collection : A structured questionnaire with rating scale is used to collect primary data.
• Statistical Tools Used : Z – test is used as a test to verify the different objectives Tabulation and Data Analysis Testing of Hypothesis Objective1: There does not exist significant difference between different attributes of packaging with regard to Consumer Behavior Level of significance 0. 05 i.

e. -1. 96 to +1. 96 Using Z-Test as Sample Size is Large Z-Test for Proportions: p1 – p2 z= p1q1 + p2q2 n1 Rating – High 1-2 Low 3-4

Attributes

Convenience Brand Name Aesthetic Information LOW 34 13 28 23 HIGH 16 37 22 27 %LOW 68% 26% 56% 46% %HIGH 32% 74% 44% 54% n2H01: There does not exist significant difference between convenient packaging of product with regard to consumer behavior H02 : There does not exist significant difference between brand name on packaging of product with regard to consumer behavior H03: There does not exist significant difference between aesthetic components of packaging of products with regard to consumer behavior H04 : There does not exist significant difference between information it conveys on packaging of products with regard to consumer behavior . 68 –. 32 z= 68*. 32+.

32*. 68 34 16 = 4Similarly, like this in each case we reject or not reject hypothesis Reject the null hypothesis as Zcal ;gt; Ztab. Not Reject the null hypothesis as Zcal ;lt; Ztab. Attributes Convenience Brand name Aesthetic components Information it conveys Interpretation : Z – test value 4 5. 47 1. 212 -0. 80 Significant value (0.05) 1. 96 1. 96 1. 96 – 1. 96 Null hypothesis(H0) Rejected Rejected Not Rejected Not Rejected Since the calculated Z ;gt; tabulated Z in case of convenience and brand name this shows these attributes affects consumer behavior while other two cases aesthetic and information does not affect as significantly as the above two.

Consumer priority towards packaging

Packaging influence consumer to buy a particular brand 67% consumers are influenced by packaging while 33% are not influence by packaging while making the purchase decision. No 33% 16 yes no yes 67% 34 Packaging in preserved products in preserved products packaging plays a vital role.

In preserved products long lasting packaging is most important. In aesthetic components:

• a) Material use is most preferred.
• b) Shape, size ;color are less preferred.
• c) Text ; graphics are least preferred. Only 26% of consumers are influenced by packaging while switching from one brand to another brand. Recommendations preserved food packs is like that can be cooked in or kept at home as a re-sealable container.

Conclusion

The research work has been successfully completed and it has helped us to understand the mindset of the consumers regarding the packaging of product and the ways in which packaging should follow to always retain and acquired the customers Bibliography Packaging:- Pluspack report, Nielsen research www. bbc research. om, Nielsen’s global packaging survey (2007) Packaging :- the point of purchase, Dickson, Rossiter and Percy Packaging:- visual presentation is superior to verbal presentation.

Childers and Houston, Taylor and Thompson (1982) report Packaging :- reflected regional and lifestyle factors ,Lennart Bengtsson, President Nielsen Eastern Europe, Middle East and Africa (EEMEA).

Questionnaire:

• Did packaging influence you to buy a particular product?

a) Yes

b) No

•  What is your priority towards packaging while purchasing a product?

a) Protective packaging

b) Eco-friendly packaging

c) Convenience packaging

d) All the above

• Rate the parameter of packaging on scale 1-4 from most preferring to less preferring due to which you prefer to buy the product.

Attributes Convenience Brand name Aesthetic(color, Information it Products shape , size, conveys. graphics) Skin care Hair care Oral care Deodorants Cosmetics 4. Rate the aesthetic components on scale 1-4 from most preferring to less preferring due to which you attracts towards the purchase of product? Aesthetic Color components Shape; Size Material use Text;

• While purchasing preserved products what type of packaging do you prefer?

a) Keep product clean ; untouched

b) Keep product in good condition.