Personality:- Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. Inner characteristics here means those specific qualities, attributes, traits, factors, and mannerisms that distinguish one individual from other individuals. These deeply ingrained characteristics that we call personality are likely to influence the individuals product choices. They affect the way consumers respond to marketers promotional efforts, and when, where, and how they consume particular products or services. Hence, the identification of specific personality characteristics associated with consumer behavior has proven to be highly useful in the development of a firms market segmentation strategies. The Nature of Personality:- In the study of personality, three distinct properties are of central importance:Personality reflects individual differences; Personality is consistent and enduring; Personality can change.

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Personality Reflects Individual Differences:- Because the inner characteristics that constitute an individuals personality are unique combination of factors, no two individuals are exactly alike. Nevertheless, many individuals may be similar in terms of a single personality characteristic but not in terms of others. Ex:- some people can be described as high in consumer ethnocentrism (e.g., willingness to accept a foreign made product), whereas others can be described as low in ethnocentrism (e.g., afraid or reluctant to buy a foreign made product). Personality is a useful concept because it enables us to categorize consumers into different groups on the basis of one or even several traits. If each person were different in terms of all personality traits, it would be impossible to group consumers into segments, and there would be little reason for marketers to develop products and promotional campaign targeted to particular segments.

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Personality is Consistent and Enduring:- An individuals personality tends to be both consistent and enduring. Ex:- The sibling who comments that her sister has always cared a great deal about her clothes from the time she was a toddler is supporting the contention that personality has both consistency and endurance. Both qualities are essential if marketers are to explain or predict consumer behavior in terms of personality. Although marketers cannot change consumers personalities to conform to their products, if they know which personality characteristics influence specific consumer responses, they can attempt to appeal to the relevant traits inherent in their target group of consumers. Even though consumers personalities may be consistent, their consumption behavior often varies considerably because of the various psychological, socio-cultural, environmental, and situational factors that affect behavior. Ex:- Although an individuals personality may be relatively stable, specific needs or motives, attitudes, reactions to group pressures, and even responses to newly available brands may cause a change in the persons behaviour. Personality is only one of a combination of factors that influence how a consumer behaves.

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Personality Can Change:- Under certain circumstances personalities change. Ex:- An individuals personality may be altered by major life events, such as marriage, the birth of a child, the death of a parent, or a change of job and / or profession. An individuals personality changes not only in response to abrupt events but also as part of a gradual maturing process He is more mature, and now he is willing to listen to points of view other than those he agrees with, says an uncle after not seeing his nephew for several years. There is also evidence that personality stereotypes may change over time. More specifically, although it is felt that mens personality has generally remained relatively constant over the past 50 years, womens personality has deemed to become increasingly more masculine and should continue to do so over the next 50 years. This prediction indicates a convergence in the personality characteristics of men and women. The reason for this shift is that women have been moving more and more into occupations that have traditionally been dominated by men and, therefore, have increasingly been associated with masculine personality attributes.

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Theories of Personality:- There are three major theories of personality:Freudian Theory. Neo Freudian Theory. Trait Theory. These theories have been chosen from among many theories of personality because each has played a prominent role in the study of the relationship between consumer behaviour and personality.

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Freudian Theory:- Sigmund Freuds psychoanalytic theory of personality is one of the cornerstones of modern psychology. This theory was built on the premise that unconscious needs or drives, especially sexual and other biological drives, are at the heart of human motivation and personality. Freud constructed his theory on the basis of patients recollections of early childhood experiences, analysis of their dreams, and the specific nature of their mental and physical adjustment problems.

Id, Superego, & Ego:- Based on his analysis, Freud proposed that the human personality consists of three interacting systems: the id, the superego, and the ego. The id was conceptualized as a warehouse of primitive and impulsive drives basic physiological needs such as thirst, hunger, and sex for which the individual seeks immediate satisfaction without concern for the specific means of satisfaction. In contrast to the id, the superego is conceptualized as the individuals internal expression of societys moral and ethical codes of conduct. The superegos role is to see that the individual satisfies needs in a socially acceptable fashion. Thus, the superego is a kind of brake that restrains or inhibits the impulsive forces of the id. Finally, the ego is the individuals conscious control. It functions as an internal monitor that attempts to balance the impulsive demands of the id and the socio-cultural constraints of the superego. In addition to specifying a structure for personality, Freud emphasized that an individuals personality is formed as he or she passes through a number of distinct stages of infant and childhood development. These are the oral, anal, phallic, latent, and genital stages. Freud labeled four of these stages of development to conform to the area of the body on which he believed the childs sexual instincts are focused at the time.

Gratification

ID System 1

EGO System 3

SUPEREGO System 2

Fig:- A Representation of the Interrelationships Among the Id, Ego, and Superego According to Freudian theory, an adults personality is determined by how well he or she deals with the crises that are experienced while passing through each of these stages (particularly the first three). Ex:- If a childs oral needs are not adequately satisfied at the first stage of development, the person may become fixated at this stage and as an adult display a personality that includes such traits as dependence and excessive oral activity (e.g., gum chewing). When an individual is fixated at the anal stage, the adult personality may display other traits, such as excessive need for neatness.

Freudian Theory and Product Personality:- Researchers who apply Freuds psychoanalytic theory to the study of consumer personality believe that human drives are largely unconscious and that consumers are primarily unaware of their true reasons for buying what they buy. These researchers tend to see consumer purchases and / or consumption situations as a reflection and an extension of the consumers own personality. i.e. they consider the consumers appearance and possessions grooming, clothing, jewelry, and so forth as reflections of the individuals personality. The below table presents the results of a study of 19,000 consumers that examines the link between snack food perceptions and selected personality traits:-

SNACK FOODS Potato Chips Tortilla Chips Pretzels Snack Crackers

PERSONALITY TRAITS Ambitious, successful, high achiever, impatient with less than the best. Perfectionist, high expectations, punctual, conservative, responsible. Lively, easily bored with same old routine, flirtatious, intuitive, may over-commit to projects. Rational, logical, contemplative, shy, prefers time alone.

Cheese CurlsNuts

Conscientious, principled, proper, fair, may appear rigid but has great integrity, plans ahead, loves order.Easygoing, empathetic, understanding, calm, even tempered.

PopcornMeat Snacks

Takes charge, pitches in often, modest, self confident but not a show off.Gregarious, generous, trustworthy, tends to be overly trusting.

Table:- Snack Foods and Personality Traits

Neo Freudian Personality Theory:- Several of Freuds colleagues disagreed with his contention that personality is primarily instinctual and sexual in nature. Instead these neo Freudians believe that social relationships are fundamental to the formation and development of personality. For instance, Alfred Adler viewed human beings as seeking to attain various rational goals, which he called style of life. He also placed much emphasis on the individuals efforts to overcome feelings of inferiority (i.e. by striving for superiority). Harry Stack Sullivan, another neo Freudian, stressed that people continuously attempt to establish significant and rewarding relationships with others. He was particularly concerned with the individuals efforts to reduce tensions, such as anxiety. Like Sullivan, Karen Horney was also interested in anxiety. She focused on the impact of child parent relationships and the individuals desire to conquer feelings of anxiety. Horney proposed that individuals be classified into three personality groups: Compliant, Aggressive, and Detached.

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Complaint individuals are those who move toward others. (They desire to be loved, wanted, and appreciated). Aggressive individuals are those who move against others. (They desire to excel and win admiration). Detached individuals are those who move away from others. (They desire independence, self reliance, self sufficiency, and individualism or freedom from obligations). A personality test based on Horneys theory (the CAD) has been developed and tested within the context of consumer behavior. The initial CAD research uncovered a number of tentative relationships between college students scores and their product and brand usage patterns. Ex:- Highly compliant students were found to prefer name brand products such as Bayer aspirin; students classified as aggressive showed a preference for Old Spice deodorant over other brands (seemingly because of its masculine appeal); and highly detached students proved to be heavy tea drinkers (possibly reflecting their desire not to conform). More recent research has found that children who scored high in selfreliance who preferred to do things independently of others (i.e., detached personalities) were less likely to be brand loyal and were more likely to try different brands.

Many marketers use some of these neo Freudian theories intuitively. For Ex:- Marketers who position their products or services as providing an opportunity to belong or to be appreciated by others in a group or social setting would seem to be guided by Horneys characterization of the compliant individual. To illustrate, imagine an ad for sleepwear that is created to appeal to a compliant individual when it suggests that wearing the sleepwear will lead to counting compliments, since compliant individuals particularly wish to be complimented and appreciated.

Trait Theory:- Trait theory constitutes a major departure from the qualitative measures that typify the Freudian and neo Freudian movements (e.g., personal observation, self reported experience, dream analysis, projective techniques). The orientation of trait theory is primarily quantitative or empirical; it focuses on the measurement of personality in terms of specific psychological characteristics, called traits. A trait is defined as any distinguishing, relatively enduring way in which one individual differs from another. Trait theories are concerned with the construction of personality tests (or inventories) that enable them to pinpoint individual differences in terms of specific traits.

Selected single trait personality tests (which measure just one trait, such as self confidence) are often developed specifically for use in consumer behaviour studies. These tailor made personality tests measure such traits as consumer innovativeness (how receptive a person is to new consumer related experiences), consumer materialism (the degree of the consumers attachment to worldly possessions), and consumer ethnocentrism (the consumers likelihood to accept or reject foreign made products). Trait researchers have found that it is generally more realistic to expect personality to be linked to how consumers make their choices and to the purchase or consumption of a broad product category rather than a specific brand. Ex:- There is more likely to be a relationship between a personality trait and whether or not an individual regularly eats peanut butter and jelly sandwiches than between a personality trait and the brand of peanut butter purchased. A study of over 1,000 U.S. adults found very different traits among soup lovers having preferences for different types of soups.

Chicken Tomato Soup Vegetable / Noodle soup Lovers Minestrone Lovers Soup Lovers Watch a lot of TV. Passionate about reading. Enjoy the outdoors.

Chili Beef Soup Lovers Generally preferred by males.

New England Clam Chowder Lovers Most conservative of all soup lovers.

Are family oriented.Have a great sense of humor.

Love pets.

Usually love to go for trying new things.

Are the most social of all soup lovers.

Pride themselves on being realistic and down-to-earth.Can occasionally be cynical.

Like meeting people for coffee.

Spend more Are the life of money than the party. any other group dining in fancy restaurants. Likely to be physically fit. Gardening is often a favorite hobby. Love telling jokes. Watch sporting events. Watch sitcoms on TV.

Are outgoing and loyal. Like daytime talk shows. Most likely to go to church.

Arent usually the life of the party.

Personality & Understanding Consumer Behaviour:- Marketers are interested in understanding how personality influences consumption behavior because such knowledge enables them to better understand consumers and to segment and target those consumers who are likely to respond positively to their product or service communications. Consumer Innovativeness & Related Personality Traits:Marketing practitioners try to learn all they can about consumer innovators those who are open to ideas and to be among the first to try new products, services, or practices for the market response of such innovators is often a critical indication of the eventual success or failure of a new product or service. Personality traits that have been useful in differentiating between consumer innovators and no-innovators include consumer innovativeness, dogmatism, social character, need for uniqueness, optimum stimulation level, sensation seeking, and variety seeking.

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Consumer Innovativeness:- Consumer researchers have endeavored to develop measurement instruments to gauge the level of consumer innovativeness, as such measures of personality traits provide important insights into the nature and boundaries of a consumers willingness to innovate. While previous studies of consumer innovativeness have treated this construct as a single personality trait, a recent research effort examining high technology products, developed a hierarchical modes consisting of three levels of personality, i.e.:Global Innovativeness:- A personal trait that exists independent of any context; one that represents the very nature of consumers innovativeness. Domain Specific Innovativeness:- A more narrowly defined activity within a specific domain or product category. Innovative behavior:- A pattern of actions or responses that indicate early acceptance of change and adoption of innovations (e.g., being among the first to purchase new and different products or services).

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Available consumer research indicates a positive relationship between innovative use of the Internet and buying online. Other research exploring the association between personality traits and innovative Internet behaviour has reported that Internet shoppers tend to see themselves as being able to control their own future, using the Internet to seek out information, enjoying change, and not being afraid of uncertainty. One study has found that while online banking is positively associated with Internet related innovativeness (i.e., domain specific innovativeness), more general consumer innovativeness was negatively related to embracing online banking, thus highlighting the importance of domain specific innovativeness. Innovativeness may be a useful consideration while marketing FMCGs and durables. It enables marketers to identify and target innovators who are receptive to new product categories. Additionally, consumer innovativeness can be an important consideration when firms contemplate brand extensions. Ex:- A toothpaste brand begins marketing a line of toothbrushes under the same brand name.

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Consumer Dogmatism:- Many marketers are keenly interested in managing consumers responses to distinctively unfamiliar products or product features, especially marketers of technologically rich products. Within this context consumer dogmatism is a personality trait that measures the degree of rigidity (versus openness) that individuals display toward the unfamiliar and toward information that is contrary to their own established beliefs. A person who is highly dogmatic approaches the unfamiliar defensively and with considerable discomfort and uncertainty. At the other end of the spectrum, a person who is low dogmatic will readily consider the unfamiliar or opposing beliefs. Ex:- in a recent print ad, McDonalds ask potential consumers to Be open to new possibilities, a concept that should be appealing to low dogmatic consumers. Consumers who are low in dogmatism (open minded) are more likely to prefer innovative products to established or traditional alternatives. In contrast, highly dogmatic (closed minded) consumers are more likely to choose established, rather than innovative, product alternatives.

Exploring dogmatism in a target segment is useful to marketers, especially before they formulated broad communication. Ex:Among the target segment for water purifiers, there may be some who strongly believe that the process of purification is likely to be hazardous to health. This kind of belief has to be carefully dealt with, using a combination of promotional methods like advertisements, personal selling and, perhaps, demonstration with sophisticated methods and research data. Permission marketing, which involves creating an involvement of the consumer (by obtaining his consent toward receiving information about the companys offering), is likely to be effective in providing a foundation for communication and reducing dogmatism. From among the target segment for water filters, it may be useful to gather data on how many are interested in obtaining information on the brand, which also includes information addressing misconceptions. If the brand is able to communicate effectively to the selected cross-section of consumers, there are chances that word of mouth will take over and the positive effects of word of mouth will be associated with the brand. This approach is likely to be more effective than a high visibility campaign that directly attacks the dogmatic beliefs of consumers.

Researching Dogmatic Beliefs

Getting the Involvement of Consumers Demonstration Research Results Credibility Models customizing Communication

Reducing Dogmatism & Changing Beliefs

Triggering Word of Mouth Fig:- Dealing with Dogmatism

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Social Character:- The personality trait known as social character has its origins in sociological research, which focuses on the classification of individuals into distinct socio-cultural types. As used in consumer psychology, social character is a personality trait that ranges on a continuum from inner directedness to other directedness. Inner directedness consumers tend to rely on their own inner values or standards in evaluating new products and are likely to be consumer innovators. Conversely, other directed consumers tend to look to others for guidance as to what is appropriate or inappropriate; thus, they are less likely to be consumer innovators. Inner directed people seem to prefer ads that stress product features and personal benefits (enabling them to use their own values and standards in evaluating products), whereas other directed people prefer ads that feature an approving social environment or social acceptance (this is in keeping with their tendency to look to others or to act as part of a group). Thus, other directed individuals may be more responsive to appeals that are based on social or group affiliations, rather than the informational content of an advertisement.

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Need for Uniqueness:- For these people, conformity to others expectations or standards, either in appearance or in their possessions, is something to be avoided. Moreover, it is easier to express or act uniquely if one does not have to pay a price in the form of others criticism. Supporting this perspective, research indicates that when consumers with a high need for uniqueness are asked to explain their choices, and are not concerned about being criticized by others, they are more receptive to making unique choices. Seeing the importance of need for uniqueness, other consumer researchers have developed an inventory to measure the trait within the context of consumer behaviour. Optimum Stimulation Level:- Some people seem to prefer a simple, uncluttered, and calm existence, whereas others prefer an environment crammed with novel, complex, and unusual experiences. Research has found that high optimum stimulation levels (OSLs) are linked with greater willingness to take risks, to try new products, to be innovative, to seek purchase related information, and to accept new retail facilities than low OSLs.

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A recent research investigating college students willingness to select mass customization of fashion items (e.g., a pair or jeans that are especially measured, cut, and sewn so they offer a better fit or appearance), found that OSL predicted two factors students openness to experimentation with appearance (e.g., I try on some of the newest clothes each season to see how I look in the styles) and enhancement of individuality (e.g., I try to buy clothes that are very unusual). OSL scores also seem to reflect a persons desired level of lifestyle stimulation. Ex:- Consumers whose actual lifestyles are equivalent to their OSL scores appear to be quite satisfied, whereas those, whose lifestyles are under-stimulated (i.e., their OSL scores are greater than the lifestyle they are currently living) are likely to be bored. Those whose life styles are over-stimulated (i.e., their OSL scores are lower than current reality) are likely to seek rest or relief. This suggests that the relationship between consumers lifestyles and their OSL scores is likely to influence their choices of products or services and how they manage and spend their time. For instance a person who feels bored is likely to be attracted to a vacation that offers a great deal of activity and excitement. In contrast, a person who feels overwhelmed is likely to seek a quiet, isolated, relaxing, and rejuvenating vacation.

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Sensation Seeking:- Sensation seeking(SS) is closely related to the OSL concept, which has been defined as a trait characterized by the need for varied, novel, and complex sensations and experience, and the willingness to take physical and social risks for the sake of such experience. Research evidence indicates that teenage males with higher SS scores are more likely than other teenagers to prefer listening to heavy metal music and to engage in reckless or even dangerous behaviour. Variety or Novelty Seeking:- Still another personality driven trait quite similar to and related to OSL is variety or novelty seeking. There appear to be many different types of consumer variety seeking: exploratory purchase behavior (e.g., switching brands to experience new, different, and possibly better alternatives), vicarious exploration (e.g., securing information about a new or different alternative and then contemplating or even daydreaming about the option), and use innovativeness (using an already adopted product in a new or novel way). FMCGs like soaps, shampoos, and biscuits have a number of variants, and exploratory purchase is very common in these categories, though there may be loyalists in some of them.

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An example of vicarious exploration may be Kinetic Honda, the gearless scooter launched several years back, which came out with a Himalaya Rally campaign that emphasized the durability of the product under trying conditions. Using washing machines for making lassi and paints / dyes to paint cows during festivals are examples of use innovativeness. Consumers with high variety seeking scores are also more likely to be attracted to brands that claim to have novel features or multiple uses or applications. Still further, there appears to be a relationship between variety seeking and time of day, with greater variety seeking behaviour occurring when the consumer is experiencing arousal lows (as opposed to arousal peaks). And during the time of day when arousal seeking is relatively minimal, leader brands fare better, while follower brands do better during periods of the day when variety seeking is heightened. Interestingly, there is also research evidence to indicate that variety seeking is greater when individuals are making choices for others, rather than for themselves.

Recent research has also found evidence that variety seeking can be domain specific, such as fitness group participants choosing a larger variety of fruit juice drinks or members of a travel group selecting a wider variety of alternative holiday activities. (e.g., beach, sports, nature). And, in general hungry consumers opt for more variety in their food choices hunger and visual food cues increase variety seeking with respect to food items. A knowledge of such personality differences should help marketers select target segments for new products and then to design distinctive promotional strategies for specific segments.

Cognitive Personality Factors:- In particular two cognitive personality traits need for cognition and visualizers versus Verbalizers have been useful in understanding selected aspects of consumer behaviour.

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Need for Cognition:- A promising cognitive personality characteristic is need for cognition (NFC). It measures a persons craving for or enjoyment of thinking. Research indicates that consumers who are high in NFC are more likely to be responsive to the part of an ad that is rich in product related information or description; whereas consumers who are relatively low in NFC are more likely to be attracted to the background or peripheral aspects of an ad, such as an attractive model or well known celebrity. Doing research on consumers need for cognition is useful for marketers as the insights gained will help formulate communication strategies. This aspect of the consumers personality is useful in the case of consumer durables. Ex:- In the category of washing machines, a semi automatic machine is likely to attract a target segment that is not interested in the upper end fuzzy logic washing machines. Research information can give insights on the need for cognition across these segments. If the company finds that a particular segment is not interested in certain product related information, a different kind of appeal can be used in advertisements. This can be backed up by customer friendly information provided at retail outlets.

When a brand like Mercedes is positioned for a niche market, the research on the need for cognition can be very useful in deciding promotional methods. If the target segment is not interested in specific features, the company can provide a visual demonstration of the brand and customize information through personal selling or the Internet instead of running a high visibility advertising campaign with information on product features. In this realm, research among adolescents compared the effectiveness of a cartoon message and a written message. For those, who are low in NFC, the cartoon message was more effective in changing attitudes and subjective norms, whereas the written message was more effective for those high in NFC. Another study revealed that, consumers who are high in NFC are likely to spend more time processing print advertisements, which results in superior brand and ad claim recall. Still another study using a Taiwanese sample shows that the inclusion of diagnostic product information in advertising (e.g., information that allows consumers to evaluate product quality and distinguish between brands) increase ad persuasion for high NFC consumers, but not for low NFC consumers.

Need for cognition also seems to play a role in an individuals use of the Internet. NFC has been positively related to using the Internet to seek product information, current events and news, and learning and education all activities that incorporate a cognitive element.

Other studies have found that people high in NFC are able to better filter out distractions in order to concentrate on their online activities and are more motivated to learn online, and that the addition of interactive properties to a companys Web site will increase information processing for low NFC individuals.Such research insights provide advertisers with valuable guidelines for creating online advertising messages that appeal to a particular target audience groupings need for cognition.

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Visualizers Versus Verbalizers:- It is fairly well established that some people seem to be more open to and prefer the written word as a way of securing information, whereas others are more likely to respond to and prefer visual images or messages as sources of information, accordingly cognitive personality research classifies consumers into two groups: Visualizers or Verbalizers. Some marketers stress strong visual dimensions in order to attract visualizers; others feature a detailed description or point by point explanation to attract Verbalizers. Ex:- Dalda launched Dalda Light vanaspati, detailing how the new brand has attributes that do not raise cholesterol levels. After a few years, the sub brand was renamed as Dalda Activ, with advertisements built around visuals rather than attributes. A recent research effort consisting of four separate studies found that there are two distinctly different types of Visualizers: Object Visualizers (encode and process images as a single perceptual unit) and Spatial Visualizers (process images piece by piece). Individuals scoring high on object visualization tend to score low in spatial visualization, and vice versa. Further, while visual artists generally excel in object imagery, scientists and engineers do best with Spatial imagery.

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Interpersonal Influence:- Besides personality and cognitive traits, outside influences are also important in consumers choosing certain products over others. Marketers should take note of three kinds of interpersonal influence:Information Influence is the tendency of a consumer to accept information from others about reality. This aspect may be useful in developing word-of-mouth strategies. Ex:- In the category of durables, demonstration at retail outlets may spread product benefits among the target segment through consumers attending such demonstrations. Value Expressive Influence is the tendency of consumers to enhance their social standing by attempting to be similar to those with whom they compare themselves. Ex:- Reference group appeals in several categories. Utilitarian Influence is the tendency of consumers to conform to the wishes of others in order to obtain rewards (or avoid punishment). This aspect may be indirectly reflected in the behavior of consumers. The peer pressure to buy a brand of car within a price range is an example of such influence.

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Reference Groups:- From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their consumption decisions because they are perceived as credible sources. Reference groups influencing broadly defined values or behaviour, are called Normative Reference Groups. Ex:- A childs normative reference group is the immediate family, which plays an important role in molding the childs general consumer values and behavior (such as which food to select for good nutrition, appropriate ways to dress for specific occasions, how and where to shop, or what constitutes good value). Reference groups serving as benchmarks for specific or narrowly defined attitudes or behavior are called Comparative Reference Groups. Ex:- Upper level executives at ones place of employment whose lifestyle, clothing, and other possessions appear to be admirable and worthy of imitation by a person holding a lower managerial position.

Reference groups are also classified by membership status. A group to which a person either belongs or would qualify for membership in is called a Membership Group. Ex:- the group of men with whom a young executive plays cricket weekly would be considered, for him, a membership group. There are also groups in which an individual is not likely to receive membership, despite acting like a member by adopting the groups values, attitudes, and behaviour. Each such group is considered as a Symbolic Group. Ex:- Professional cricket players may constitute a symbolic group for an amateur cricket player who identifies with certain players by imitating their behaviour whenever possible (e.g., purchasing a specific brand or cricket gears). However, the amateur cricket player does not (and probably never will) qualify for membership as a professional cricket player because he has neither the skills nor the opportunity to compete professionally.

Reference Groups & Branding:- India produces the maximum number of movies in the world, and celebrity advertising is used extensively across segments of consumers and product categories. Celebrity and common man appeals are some of the popular reference group concepts that are used in India. Celebrities from the world of Cricket & Movies have the most appeal: Sachin Tendulkar, Amitabh Bachchan etc. Amitabh Bachchan was associated with Parker pens to add grace to the product; endorsed Herbal Chyawanprash of Dabur, ICICI bank, Navratna Hair Oil, to name a few. Sachin Tendulkar took the testimonial route when he endorsed Boost is the secret of my energy. He endorsed the TVS Victor bike and Colgate Total toothpaste for its 12 hour protection. Cricketer M.S.Dhonis association with Sonata watches and TVS bikes, may have appealed to rural consumers, while Santro used Shah Rukh Khan and Preity Zinta to position itself as a sunshine car after it established its functional attributes. Priyanka Chopra with the Hero Honda Pleasure brand of scooter positioned toward the urban, contemporary, and tradition breaking woman, heralded a self concept with which the consumer segment may have identified themselves.

Decades back, Surf used Lalitaji, a stereotype of a typical bargain oriented housewife who advocated lower use of the quantity of the brand in comparison with a competitive brand. This was a common man appeal that would enable the consumer to connect with someone like her. Celebrity associations, psychographics of the target segment and the objective of the celebrity use are important considerations while building long-term brand associations through reference group concepts.

Opinion Leadership:- Informal sources such as friends, neighbors, relatives, and others consumers, a person meets online in social networks, chat rooms, and other places, have a strong influence on that persons consumption behaviour because they are perceived as having nothing to gain from their purchase recommendations. Such informal groups also serve as comparative and normative frames of reference for a persons overall values and behaviours. Sociologists who studied the informal communication process named it Opinion Leadership and defined it as the process by which one person (the opinion leader) informally influences the actions or attitudes of others, who may be opinion seekers or opinion recipients. The key characteristic of the influence is that it is interpersonal and informal and takes place between two or more people, none of whom represents a commercial selling source that would gain directly from the sale of something. Later on, marketers realized that informal communications are a two way process and named such interaction word of mouth (WOM).

A word-of-mouth encounter may indeed start by one party offering advice or information about a product to another party. However, this opinion leader may become an opinion receiver later on. Ex:- A new father contemplating the purchase of a baby car seat sought information and advice from other people in deciding which brand to select. Once the car seat was purchased, he experienced post-purchase dissonance and was compelled to talk favorably about the purchase to other people, thus confirming the wisdom of his own choice. In the first instance, he was an opinion receiver; in the second, he assumed the role of opinion leader. In word-of-mouth communications, the parties involved perceive each other as highly credible sources of information because they view one another as objective concerning the product or service information or advice they dispense. Opinion receivers view the intentions of opinion leaders as being in their best interests because the opinion leaders receive no material gain for the advice; therefore, their opinion receivers are likely to consider such recommendations more seriously. Moreover, since opinion leaders often base their product comments on firsthand experience, their advice reduces the opinion receivers perceived risk or anxiety inherent in buying new products.

Opinion leadership tends to be category specific; that is, opinion leaders often specialize in certain product categories about which they offer information and advice. When other product categories are discussed, however, they are just as likely to reverse their roles and become opinion receivers.