Personal Consumption Journal Report

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Personal Consumption Journal

Consumer Behavior 0 | P a g e

Submitted To: Ms. Maryam Niazi

Consumer Behavior

Dated: 25 th May, 2014

Personal ConsumptionJournal

Muhammad Asad Bin Faruq

1300041


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Personal Consumption Journal Report

Consumer Behavior

TABLE OF CONTENTS

Consumption Journals ...................................................................................................................................... 1

Consumer Profile ............................................................................................................................................... 5

PIE CHART ............................................................................................................................................................ 6

List of Variables .................................................................................................................................................. 7

Demographics............................................................................................................................................... 7

Psychographics ............................................................................................................................................. 7

Social Class ................................................................................................................................................ 7

VALS (Values, Attitudes And Lifestyles) ................................................................................................ 7

VALS Framework and Segment ............................................................................................................. 9

Consumer Motivation ................................................................................................................................ 10

Needs ............................................................................................................................................................ 10

Goals ............................................................................................................................................................. 11

Selection of goals ................................................................................................................................... 11

Maslows Hierarchy of Needs ................................................................................................................... 12

A Trio of needs ............................................................................................................................................. 13

Need for Power ...................................................................................................................................... 13

Need for Affiliation ................................................................................................................................. 14

Need for Achievement ......................................................................................................................... 14

Personality & Consumer Behavior ................................................................................................................ 14

Personality ................................................................................................................................................ 14

Consumer Innovativeness .................................................................................................................... 14

Consumer Dogmatism .......................................................................................................................... 14

Need for cognition ................................................................................................................................. 15


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Consumer Behavior

Visualizers Vs Verbalizers ....................................................................................................................... 15

Consumer Perception ................................................................................................................................ 15

Perception ............................................................................................................................................... 15

Sensation .................................................................................................................................................. 15

The absolute threshold .......................................................................................................................... 15

The differential threshold ...................................................................................................................... 15

Consumer Learning......................................................................................................................................... 15

Learning theories ........................................................................................................................................ 15

Cognitive Theories ...................................................................................................................................... 16

Information Processing and Involvement Theory ................................................................................. 17

Central and Peripheral Routes to Persuasion ................................................................................... 17

Advertisement Analysis .................................................................................................................................. 17

Overview of Pakistani Beverage Industry ............................................................................................... 17

Print Ad.......................................................................................................................................................... 18

Ad Demographics ...................................................................................................................................... 20

AD Psychographics .................................................................................................................................... 20

Social Class and VALS ........................................................................................................................... 20

Needs And Goals........................................................................................................................................ 20

In reference to Maslows Heirarchy of Needs ....................................................................................... 21

In Reference with Trio of Needs ............................................................................................................... 21

In Reference with Personality and Consumer Behavior ...................................................................... 21

In Reference with Consumer Learning ................................................................................................... 21


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CONSUMPTION JOURNALS

Consumption Journal 20 th-26 th April 2014

ate Place ofpurchase

Item purchased Brand name Price Reason forpurchase

Feelings associate with thepurchase

-4-14 Local Store CigarettesCold Coffee MarlboroNescafe 11530 AddictionEnjoyment Happy

-4-14 LSE Instant Coffee 3 in1Biryani

NescafeLSE

2580

AddictionHunger

Happy

-04-14 JalalsonsGulberg

BreadEggs

JalalsonsGulberg

60120

Ok

-4-14 Jalalsons Biscuits Jalasons 150 Tea/Snack Happy

-4-14 Local Store CigarettesCold Coffee

MarlboroNescafe

11530

AddictionEnjoyment

Happy

-4-14 Office Big Mac Meal McDonalds 650 Lunch Happy


MarlboroNescafe

11530

AddictionEnjoyment

Happy

-4-14 Shell JoharTown

Petrol Shell 1500 Refueling Car Ok

-4-14 Al-Fatah Deodorant Axe 210 Hygiene Happy

-4-14 Al-Fatah Candy Al-Fatah 150 Enjoyment Happy


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Consumption Journal 27 th April 3 rd May 2014

Date Place ofpurchase



27-4-14 Local Store CigarettesCold Coffee

MarlboroNescafe

11530

AddictionEnjoyment

Happy

27-4-14 Internet Mobile TopUp Telenor 250 Mobile Topup Ok

28-4-14 Jalalsons Instant Coffee 3in 1

Nescafe 25 Addiction Happy

28-4-14 Jalalsons BreadEggs

JalalsonsGulberg

60120

Breakfast Ok

29-4-14 Office Pizza Broadway 1500 Lunch Happy

29-4-14 Gulberg Soda Sprite 35 Lunch Happy


MarlboroNescafe

11530

AddictionEnjoyment

Happy

1-5-14 Jalasons Instant Coffee 3in 1

Nescafe 25 Addiction Happy

1-5-14 Gulberg Jalebi Garato 150 Snack Happy


MarlboroNescafe

11530

AddictionEnjoyment

Happy

3-5-14 Shell JoharTown



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Consumption Journal 4 th-10 th May 2014

Date Place ofpurchase




MarlboroNescafe

11530

AddictionEnjoyment

Happy

4-5-14 Hafeez Centre HDMI Cables Local 750 Practical Ok

5-5-14 Internet Mobile TopUp Telenor 250 Mobile Topup Ok

5-5-14 Office Instant Coffee 3 in1

Nestle 25 Contract Ok


MarlboroNescafe

11530

AddictionEnjoyment

Happy

7-5-14 Office Soda Sprite 35 Thirst Ok

7-5-14 Shell JoharTown



MarlboroNescafe

11530

AddictionEnjoyment

Happy

9-5-14 Johar Town Burger Howdy 540 Hunger happy

9-5-14 Jalalsons Brownies Jalasons 150 Snacks Very Happy


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Consumption Journal 11 th-17 th May 2014

ate Place ofpurchase




MarlboroNescafe

11530

AddictionEnjoyment

Happy

-5-14 Local Store Yogurt Nestle 80 Hunger Happy

-5-14 Internet Mobile TopUp Telenor 250 Bill Payment Ok

-5-14 Office Sandwiches Jalasons 250 Hunger Happy


MarlboroNescafe

11530

AddictionEnjoyment

Happy

-5-14 Office Pizza Broadway 1500 Hunger Very Happy

-5-14 Local Store Cigarettes

Cold Coffee

Marlboro

Nescafe

115

30

Addiction

Enjoyment

Happy

-5-14 Johar Town Instant Coffee 3 in1

Nescafe 25 Hunger happy


MarlboroNescafe

11530

AddictionEnjoyment

Happy

-5-14 Shell JoharTown



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PIE CHART

By looking at the pie chart, it can be deduced that my most consumed item isNescafe Cold Coffee, which is 25%, along with Marlboro Cigarettes which isalsopurchased13 times during the course of consumption. Following these itemsis Nescafe Instant Coffee which was bought 10% of times i.e. 5 times. These threeproducts are the most consumed products in the consumption journal.

Similarly Petrol, Mobile TopUp, Jalalsons Bread, and Jalalsons Eggs share thesame frequency of purchase which is 4 and represent 8 % of the totalpurchasing individually.

Jalalsons Sandwiches and Biscuits also share the same frequency of 2 with

percentage representation of 4 % and the least consumed with frequency of 1and percentage of 2 % is Axe Deodorant.

13

13

5

4

4

2

4

42 1

Frequency

Marlboro Cigarettes Nescafe Cold Coffee Nescafe Instant Coffee 3in1

Petrol Mobile Topup Jalalsons Sandwiches

Jalalsons Bread Jalalsons Eggs Jalalsons Biscuits

Axe Deodorant


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LIST OF VARIABLES

DEMOGRAPHICS

Demographics are the measureable statistics of a certain target segment, suchas Age, Gender, Marital Status, Education, Income, Occupation etc.

Demographic segmentation of this certain product, as per the analysis of it adsand marketing campaigns is as follows:

PSYCHOGRAPHICS

Psychographics can be defined as activities, interests and opinions (AIOS). It is

also consists of attitudes and preferences. Often these are buried within us andwere all consumers. Psychographic variables could be political leanings,attitudes toward global warming, religious affiliations or non-affiliations,enthusiasms etc.

The interests and opinions parts are cognitive concepts and can be measuredthrough surveys. A psychographic study includes a series of questions that areoften responded via a Likert scale, through which we can assess the consumerslevel of agreement. The factors included under examination in a psychographicstudy are personality traits, buying motives, interests, attitudes, beliefs andvalues. Versatility of all these psychographic factors allows it to be a part of awide range of mixed segmentation frameworks.

SOCIAL CLASS

A division of society based on social and economic status.

Three main categories under the social class are

1- Upper 2- Middle 3- Lower

VALS (VALUES, ATTITUDES AND LIFESTYLES)

VALS is a proprietary research methodology used for psychographic marketsegmentation. This market segmentation is designed to guide companies in
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1. Consumers driven by knowledge and principles are motivated primarily byIdeals . These consumers include groups called Thinkers and Believers.

2. Consumers driven by demonstrating success to their peers are motivatedprimarily by Achievement . These consumers include groups referred to as

Achievers and Strivers. 3. Consumers driven by a desire for social or physical activity, variety, and

risk taking are motivated primarily by Self-expression . These consumersinclude the groups known as Experiencers and Makers.

VALS FRAMEWORK AND SEGMENT

Innovators. These consumers are on the leading edge of change, havethe highest incomes, and such high self-esteem and abundant resourcesthat they can indulge in any or all self-orientations. They are locatedabove the rectangle. Image is important to them as an expression oftaste, independence, and character. Their consumer choices aredirected toward the "finer things in life."

Thinkers. These consumers are the high-resource group of those who aremotivated by ideals. They are mature, responsible, well-educatedprofessionals. Their leisure activities center on their homes, but they arewell informed about what goes on in the world and are open to newideas and social change. They have high incomes but are practicalconsumers and rational decision makers.

Believers. These consumers are the low-resource group of those who aremotivated by ideals. They are conservative and predictable consumerswho favor American products and established brands. Their lives arecentered on family, community, and the nation. They have modestincomes.

Achievers. These consumers are the high-resource group of those who aremotivated by achievement. They are successful work-oriented peoplewho get their satisfaction from their jobs and families. They are politicallyconservative and respect authority and the status quo. They favorestablished products and services that show off their success to theirpeers.

Strivers. These consumers are the low-resource group of those who aremotivated by achievements. They have values very similar to achieversbut have fewer economic, social, and psychological resources. Style is
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extremely important to them as they strive to emulate people theyadmire.

Experiencers. These consumers are the high-resource group of those whoare motivated by self-expression. They are the youngest of all the

segments, with a median age of 25. They have a lot of energy, which theypour into physical exercise and social activities. They are avid consumers,spending heavily on clothing, fast-foods, music, and other youthfulfavorites, with particular emphasis on new products and services.

Makers. These consumers are the low-resource group of those who aremotivated by self-expression. They are practical people who value self-sufficiency. They are focused on the familiar-family, work, and physicalrecreation-and have little interest in the broader world. As consumers,they appreciate practical and functional products.

Survivors. These consumers have the lowest incomes. They have too fewresources to be included in any consumer self-orientation and are thuslocated below the rectangle. They are the oldest of all the segments, witha median age of 61. Within their limited means, they tend to be brand-loyal consumers.

CONSUMER MOTIVATION

Motivation is the driving force within individuals that impels them to action. This

driving force is produced by a state of tension, which exists due to unfulfilledneeds. Individuals strive both consciously and subconsciously to reduce thistension through selecting goals and subsequent behavior that they anticipatewill fulfil their needs and thus relieve them of the tension they feel.

NEEDS

Needs are the essence of the marketing concept. Marketers do not createneeds but can make consumers aware of their needs. Every individual hasneeds; some are Innate, others are acquired.

Innate needs are physiological (i.e. biogenic); they include the needs for food,water, air and clothing. They are considered as primary needs.

Acquired needs are generally psychological (or psychogenic ) needs that areconsidered secondary needs or motives. They are also known as secondaryneeds.
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From the viewpoint of application of practical context, needs can also beclassified as Extrinsic and Intrinsic.

Extrinsic needs motivates an individual to achieve the end result e.g. buying a

product that symbolizes status to impress others is associated with extrinsicneeds.

On the other if an individual buys a car for his own personal comfort andenjoyment, such need can be classifies as Intrinsic Needs .

GOALS

Goals are sought after results of motivated behavior.

Generic Goals: the general categories of goals that consumers see as a way tofulfill their needs.

Product-Specific Goals: the specifically branded products or services thatconsumers select as their goals

Goals can be positive or negative. Positive goals are one toward whichbehavior is directed and a negative goal is one from which behavior is directed

away. This concept is useful when USP (Unique Selling Proposition) is beingexplored.

SELECTION OF GOALS

For any given need, there are many different and appropriate goals. The goalsselected by individual depend on their personal experiences, physical capacity,prevailing cultural norms and values, and the goals accessibility in the physicaland social environment.

Like needs, goal can be positive or negative as mentioned earlier. A positivegoal is one toward which behavior is directed; thus it is often referred to as anapproach object .

A negative goal is one from which behavior is directed away and is referred toas an avoidance object. Because both approach and avoidance goals are theresults of motivated behavior, most researchers refer to them simply as goals.


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INTERDEPENDENCE OF GOALS

Needs and goals are interdependent; neither exists without the other. However,people are often not as aware of their needs as they are aware of their goals.

Individuals are usually more aware of their physiological needs. Most peopleknow when they are hungry, thirsty or cold and they take appropriate steps tosatisfy these needs. The same people may not be consciously be aware of theirneeds for acceptance, self-esteem, or status. They may, howeversubconsciously engage in behavior that satisfies their psychological needs.

MASLOWS HIERARCHY O F NEEDS

Maslow stated that people are motivated to achieve certain needs. When oneneed is fulfilled a person seeks to fulfil the next one, and so on. This five stagemodel can be divided into basic needs (e.g. physiological, safety, love, andesteem) and growth needs (self-actualization).


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The first four levels are considered deficiency or deprivation needs in that theirlack of satisfaction causes a deficiency that motivates people to meet theseneeds.

Physiological needs, the lowest level on the hierarchy, include necessities suchas air, food, and water. These tend to be satisfied for most people, but theybecome predominant when unmet. During emergencies, safety needs such ashealth and security rise to the forefront. Once these two levels are met,belongingness needs, such as obtaining love and intimate relationships or closefriendships, become important. The next level, esteem needs, include the needfor recognition from others, confidence, achievement, and self-esteem.

The highest level is self-actualization, or the self-fulfillment. Behavior in this case isnot driven or motivated by deficiencies but rather ones desire for personalgrowth and the need to become all the things that a person is capable ofbecoming.

A TRIO OF NEEDS

NEED FOR POWER

A person's need for power can be one of two types - personal and institutional.Those who need personal power want to direct others, and this need often isperceived as undesirable. Persons who need institutional power (also known associal power) want to organize the efforts of others to further the goals of the


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organization. Managers with a high need for institutional power tend to be moreeffective than those with a high need for personal power.

NEED FOR AFFILIATION

Those with a high need for affiliation need harmonious relationships with otherpeople and need to feel accepted by other people. They tend to conform tothe norms of their work group. High individuals prefer work that providessignificant personal interaction. They perform well in customer service and clientinteraction situations.

NEED FOR ACHIEVEMENT

People with a high need for achievement seek to excel and thus tend to avoid

both low-risk and high-risk situations. Achievers avoid low-risk situations becausethe easily attained success is not a genuine achievement. In high-risk projects,achievers see the outcome as one of chance rather than one's own effort.Achievers need regular feedback in order to monitor the progress of theirachievements. They prefer either to work alone or with other high achievers.

PERSONALITY & CONSUMER BEHAVIOR

PERSONALITY

Personality comprises of the inner psychological characteristics that bothdetermines and reflects how a person responds to his or her environment.

CONSUMER INNOVATIVENESS

The degree to which consumers are receptive to new products, new services ornew practices is called consumer innovativeness.

CONSUMER DOGMATISM

Dogmatism is personality trait that measures the degree of rigidity (versusopenness) that individuals display toward the unfamiliar information. Highlydogmatic (closed-minded): choose established, rather than innovative productalternatives. Less dogmatic (open-minded) prefer innovative products totraditional alternatives.


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NEED FOR COGNITION

A persons craving for enjoyment of thinking .

VISUALIZERS VS VERBALIZERSA persons preference for information presented visually or verbally. Visualizersrequire strong visual elements in ads. Verbalizers prefer written information, printads, and question-answer format

CONSUMER PERCEPTION

PERCEPTION

The process by which an individual selects, organizes, and interprets stimuli into ameaningful and coherent picture of the world.

SENSATION

The immediate and direct response of the sensory organs to stimuli is known assensation.

THE ABSOLUTE THRESHOLD

The lowest level at which an individual can experience a sensation. The point, atwhich a person can detect a difference between something and nothing, iscalled the absolute threshold.

THE DIFFERENTIAL THRESHOLD

The minimal difference that can be detected between two similar stimuli iscalled the differential threshold or the just noticeable difference (JND).

CONSUMER LEARNING

A process by which individuals acquire the purchase and consumptionknowledge and experience that they apply to future related behavior.

LEARNING THEORIES


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BEHAVIORAL THEORIES

Theories based on the premise that learning takes place as the result ofobservable responses to external stimuli. It is also known as stimulus response

theory .

CLASSICAL CONDITIONING:

Pairing a stimulus with another stimulus that elicits a known response to producethe same response when used alone.

INSTRUMENTAL CONDITIONING

Consumers learn by means of trial and error process in which some purchase

behaviors result in more favorable outcomes (rewards) than other purchasebehaviors. A favorable experience is instrumental in teaching the individual torepeat a specific behavior.

OBSERVATIONAL LEARNING

Individuals learn by observing the behavior of others, and consequences of suchbehavior. It is also known as modeling.

COGNITIVE THEORIES

A theory of learning based on mental information processing, often in responseto problem solving.

COGNITIVE LEARNING THEORY

Learning through consumer thinking and problem solving, this enablesindividuals to gain some control over their environment.

CONSUMER INVOLVEMENT

Focuses on the degree of personal relevance that the product holds for theconsumer

a. High- involvement: Important in terms of perceived risk.b. Low involvement: Hold little relevance.


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INFORMATION PROCESSING AND INVOLVEMENT THEORY

CENTRAL AND PERIPHERAL ROUTES TO PERSUASION

Highly involved consumers are best reached through ads that focus on thespecific attributes of the product (the central route)

Uninvolved consumers can be attracted through peripheral advertising cuessuch as the model or the setting (the peripheral route).

ADVERTISEMENT ANALYSIS

OVERVIEW OF PAKISTANI BEVERAGE INDUSTRY

The beverage industry in Pakistan has emerged as a progressive sector over theyears. As per the latest report by AAJ TV, about 170 units are operating acrossthe country in this particular sector, which is contributing towards growth inupstream and downstream industries. A comprehensive categorization of thebeverage industry would include divisions like; aerated drinks, juices, milk baseddrinks, energy and sports drinks, tea, and coffee and also, bottled and bulkwater as well. In Pakistan different players dominate in different categories,

based upon their specialization and target audience.

In order to gain fresh insight and valuable information, a recent survey wasconducted in October 2013 and the research data was shared by PakistanOnline Research Panel introduced by Dynamic Research Consultants which is afull scale technology oriented market research agency operating in Pakistan.The survey results yielded a comparative analysis between genders and twoprimary age groups; young adults (aged 16-22 years) and mature adults (aged22 years above). The key findings of the survey are discussed below:


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The survey results demonstrated the differences in the consumption pattern thatexists across genders and the two different age groups. Overall, the resultssuggest that females are more likely to consume multiple beverages than males.Tea emerges as the most preferred drink, with comparatively higherconsumption among mature adults. However, energy drinks are ranked as theleast consumed by both the categories but young adults reportedly consumecomparatively more of it than mature adults. Drinks which are generallyconsidered as healthy like juices and milk based liquids are more popularamong mature adults, particularly in females. As far as soft drinks areconcerned, they are more popular among men belonging to both the agecategories.

As far as coffee in concerned, it is considered to be more popular among theurban population and its consumption is attributed with the changingpreferences among the masses, based upon the escalated social valuesplaced upon coffee. The most prominent coffee brand in Pakistan is Nescafe,which is the oldest coffee brand in the country. No major innovations have beenintroduced in this particular market.

PRINT AD


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AD DEMOGRAPHICS

Demographic Segmentation

Age 20-34, 35-49

Gender Male, Female

Marital Status Doesnt Matter

Income (PKR) 25,000 and above

Education College or University going students and youngprofessionals

Occupation Student and Working (Professional)

Family life Cycle Bachelors, Recently Married

AD PSYCHOGRAPHICS

SOCIAL CLASS AND VALS

This print ad targets upper, upper middle and middle class consumers who havemoderate to high level income, and are educated.

From VALs segments this ad is targeted towards Ideals and Self expressionistswith high motivation and reso urces known as Thinkers and Experiencers asthe ad displays young college or university going individuals.

NEEDS AND GOALS

The ad is making the consumer realize their Acquired Needs of spending thesummers with a cold drink. Also the ad may hint towards Extrinsic Needs as addisplays a group of four relaxing in the company of Nescafe Cold Coffee.


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The Ad by making the consumer aware of its needs is making the consumerwork towards a Product Specific Goal.

IN REFERENCE TO MASLOWS HEIRARCHY OF NE EDS

In reference to Maslows theory the ad evokes psychological needs, which aresocial needs (belongingness and love) and self-esteem needs.

IN REFERENCE WITH TRIO OF NEEDS

As per trio of needs the ad evokes the need for affiliations and achievement byencouraging social gathering and accomplishing chilling out in the summer.

IN REFERENCE WITH PERSONALITY AND CONSUMER BEHAVIOR

The ad is targeted towards innovative and less dogmatic consumers. Also, it ismeant for visualizers since there is very little written information about theproduct.

IN REFERENCE WITH CONSUMER LEARNING

The Ad is in accordance of the Behavioral theory because the ice falling inthe mug full of coffee and young individuals laying their relaxing, are the

external stimuli to which the consumer will be attracted towards and wouldwant buy the product.

Consumer Involvement is also being used here the targeted marketed ofyoung individuals is clearly shown in the ad.

End

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