NESCAFÉ COLD COFFEEPresented By: Muhammad Asad Bin Faruq

13E00041 Section B

Presented To: Ms. Maryam Niazi

Consumer Behavior

Consumption Journal

CONSUMER PROFILE

Ten most consumed Items• Marlboro Cigarettes

• Nescafe Cold Coffee

• Nescafe Instant Coffee 3in1

• Petrol

• Mobile Topup

• Jalalsons Sandwiches

• Jalalsons Bread

• Jalalsons Eggs

• Jalalsons Biscuits

• Axe Deodorant

PIE CHART

13

13

5

4

4

2

4

4

2 1

Frequency

Marlboro Cigarettes Nescafe Cold Coffee Nescafe Instant Coffee 3in1Petrol Mobile Topup Jalalsons SandwichesJalalsons Bread Jalalsons Eggs Jalalsons BiscuitsAxe Deodorant

• By looking at the pie chart, it can be deduced that my most consumed item is Nescafe Cold Coffee, which is 25%, along with Marlboro Cigarettes which is alsopurchased13 times during the course of consumption.

• Similarly Petrol, Mobile TopUp, Jalalsons Bread, and Jalalsons Eggs share the same frequency of purchase which is 4 and represent 8 % of the total purchasing individually.

• Jalalsons Sandwiches and Biscuits also share the same frequency of 2 with percentage representation of 4 % and the least consumed with frequency of 1 and percentage of 2 % is Axe Deodorant.

LIST OF VARIABLES

• Demographics

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

• 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—and we’re all consumers. Psychographic variables could be political leanings, attitudes toward global warming, religious affiliations or non-affiliations, enthusiasms etc.

LIST OF VARIABLES

• VALs (Values and Lifestyles

• The main dimensions of the VALS framework are Primary Motivation (the horizontal dimension) and Resources (the vertical dimension). The vertical dimension segments people based on the degree to which they are innovative and have resources such as income, education, self-confidence, intelligence, leadership skills, and energy.

CONSUMER MOTIVATION, NEEDS & GOALS

• 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 unfulfilled needs. Individuals strive both consciously and subconsciously to reduce this tension through selecting goals and subsequent behavior that they anticipate will fulfil their needs and thus relieve them of the tension they feel.

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

•Innate needs

•Acquired needs

•Extrinsic

•Intrinsic.

Goals are sought after results of motivated behavior.

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

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

MASLOW’S HIERARCHY OF NEEDS

TRIO OF NEEDS

• Need for Power

• Need for Affiliation

• Need for Achievement

PERSONALITY & CONSUMER BEHAVIOR

Personality

Personality comprises of the inner psychological characteristics that both determines 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 or new practices is called consumer innovativeness.

Consumer Dogmatism

Dogmatism is personality trait that measures the degree of rigidity (versus openness) that individuals display toward the unfamiliar information.

PERSONALITY & CONSUMER BEHAVIOR

NEED FOR COGNITION

A person’s craving for enjoyment of thinking.

VISUALIZERS VS VERBALIZERS

A person’s preference for information presented visually or verbally. Visualizers require strong visual elements in ads. Verbalizers prefer written information, print ads, and question-answer format

CONSUMER PERCEPTION

PERCEPTION

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

SENSATION

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

THE ABSOLUTE THRESHOLD

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

THE DIFFERENTIAL THRESHOLD

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

CONSUMER LEARNING

Learning Theories

BEHAVIORAL THEORIES

Theories based on the premise that learning takes place as the result of observable 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 produce the 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 purchase behaviors. A favorable experience is instrumental in teaching the individual to repeat a specific behavior.

OBSERVATIONAL LEARNING

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

CONSUMER LEARNING

Cognitive Theories

COGNITIVE LEARNING THEORY

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

CONSUMER INVOLVEMENT

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

a. High- involvement: Important in terms of perceived risk.

b. Low – involvement: Hold little relevance.

ADVERTISEMENT ANALYSIS

Print Ad

AD DEMOGRAPHICS

Demographic Segmentation

Age 20-34, 35-49

Gender Male, Female

Marital Status Doesn’t Matter

Income (PKR) 25,000 and above

Education College or University going students and young professionals

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 have moderate to high level income, and are educated.

• From VALs segments this ad is targeted towards Ideals and Self expressionists with high motivation and resources known as “Thinkers” and “Experiencers” as the ad displays young college or university going individuals.

NEEDS AND GOALS

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

• The Ad by making the consumer aware of its needs is making the consumer work towards a “Product Specific Goal”.

MASLOW’S HEIRARCHY OF NEEDS

• In reference to Maslow’s theory the ad evokes psychological needs, which are social needs (belongingness and love) and self-esteem needs.

TRIO OF NEEDS

• As per trio of needs the ad evokes the need for affiliations and achievement by encouraging social gathering and accomplishing “chilling out” in the summer.

PERSONALITY AND CONSUMER BEHAVIOR

• The ad is targeted towards innovative and less dogmatic consumers. Also, it is meant for visualizers since there is very little written information about the product.

CONSUMER LEARNING

• The Ad is in accordance of the “Behavioral theory” because the ice falling in the mug full of coffee and young individuals laying their relaxing, are the external stimuli to which the consumer will be attracted towards and would want buy the product.

• “Consumer Involvement” is also being used here the targeted marketed of young individuals is clearly shown in the ad.

THE END&

THANK YOU