Consumer Behaviour

PHI Learning UNDERSTANDING CONSUMER BEHAVIOUR Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 1
PHI Learning CONSUMERBEHAVIOUR
Consumer behaviour entails the totality of consumers decision involvedinacquiring, nd disposing of goods and services, as well as making use of experiences andide Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 2
PHI Learning ConsumerBehaviour isaComplexDynamicProcess ConsumersPerspective MarketersPerspective Prepurchase issues Purchase issues Postpurchase issues Eachstageposesvariedissuesandofferssubsequentchallengesforthemarketer. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 3
PHI Learning PrepurchaseChallengesfortheMarketer Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 4
PHI Learning Howareconsumers attitudestowardsproductsformedand/orchanged? Changingconsumer demographics Accesstomore choiceofbrands/ products Consumer behaviour
PsychologicalFactors Consumerinvolvement Consumermotivation Consumersperception Pe nalFactors Personalityandlifestyle Familylifecycle SocialFactors Referencegroups Culturalinfluences onconsumer behaviour Thecreationand diffusionof consumerculture Consumerage, sex,socialclass Subcultures
Itisessentialforthemarketertounderstandhoweachofthese factorsinfluencesconsumer ecanthenformulatestrategiesinlinewithcustomerneedsand demands. Consumer Behaviour: s from Indian MarketRamanuj Majumdar 5
PHI Learning Howdopsychologicalfactorsaffecttheconsumerspurchasedecision? Changingconsumerperception LearningSuperioraftersaleservice Motivationthesecretof energy BeliefTATAsignifiestrust Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 6
PHI Learning Howdopersonalfactorsaffecttheconsumerspurchasedecision?(Contd.) Lifestyle SelfConceptDefinitelymale GenderTargetingthemale AgeTargetingtheyouth 7 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Howdosocialfactorsaffecttheconsumerspurchasedecision? ReferenceGroupIbankers Phone InfluenceofFamily Status Symbol Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 8
PHI Learning Howdoculturalfactorsaffecttheconsumerspurchasedecision? TargetingonthebasisofCulture Subculture:TargetingtheFullofLife SocialClass Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 9
PHI Learning
Whatcues/inferencesdoconsumersusetochooseandinferwhich brand/productissuperiort
Theextentofinformationsearchdependson: Motivation,abilityandopportunity. Howextensi chisforhighinvolvement,highriskproducts. Consumerdemographyandproducttype. Themar lecttherightsourceforinformationtoreachthe targetconsumer. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 10
VariousSourcesofInformationtheMarketercanTap Radio Transport Events Internet SMS Utilities Gaming Outdoor Sport Podcasts TV Magazines Newspapers WordofMouth Posters Directmailers Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 11
PHI Learning PurchaseTimeChallengesfortheMarketer Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 12
PHI Learning Howdosituationalfactorsaffectconsumerspurchasedecision? Whentopurchase ThreePossibilitiesin ConsumerPurchase Decision Wheretopurchase Howtopurchase
InfluencingFactors: StoreatmosphereDisplay,music,fragrance TimepressurePeakoroffsea asantnessofshoppingexperience Schemes Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 13
PHI Learning PostpurchaseChallengesfortheMarketer Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 14
PHI Learning
Whatdetermineswhetheraconsumerwillbesatisfiedwithabrandchoiceand whetherhewill ngaproduct,theconsumercomparesitwithhis expectationsandiseithersatisfiedordissa ctionordissatisfactionaffects: Consumervalueperceptions Consumercommunications R chasebehaviour MarketersusevariousstrategiestopositivelyinfluenceconsumersPostpurchasebehaviour Postpurchase Service Feedbackfrom Consumer Loyalty Programmes Advertisements Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 15
PHI Learning ThankYou Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 16
PHI Learning ConsumerMotivation Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 17
PHI Learning WhatisMotivation? Motivation refers to an activated state of needs within a person that leads to g oaldirected behaviour. Types of Needs Innate or learned Expressive (emotional) U tilitarian (practical and functional) Hedonistic Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 18
PHI Learning Maslows HierarchyofNeeds Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 19
PHI Learning
CharacteristicsofNeeds Needs: Aredynamic. Havehierarchy. Canbeinternallyandexternallyaroused. Cancon Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 20
PHI Learning MotivationalConflictand NeedPriorities Satisfying a particular need often comes at the expense of another need. These t rade-offs cause motivational conflict. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 21
PHI Learning TypesofMotivationalConflict Approach-approach: deciding between two desirable options Avoidance-avoidance: d eciding between two undesirable options Approach-avoidance: behaviour has both p ositive and negative consequences. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 22
PHI Learning ConsumerMotivation Represents the drive to satisfy both physiological and psychological needs throu gh product purchase and consumption. It gives insights into why people buy certa in products. Stems from consumer needs: industries have been built around basic human needs. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 23
PHI Learning MotivatedPurchase Conspicuous consumption: Purchases motivated to some extent by the desire to sho w other people how successful they are. Companies reinforce the consumer motivat ions notion that products enable users to communicate their social status. In ge neral, marketers try to create an image or personality for their brands. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 24
PHI Learning Motivation ConsumerBehaviour
Motivation signifiestheprocessesthatcauseconsumersto behaveastheydo,involvingneed es. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 25
PHI Learning ModeloftheMotivationProcess Previous learning Unfulfilled need,want anddesire Tension Drive Behaviour Goal/Need fulfillment Cognitive processes Tension reduction Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 26
PHI Learning Needs/Wants Beliefs AModelofConsumerMotivation Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 27
PHI Learning Emerging Trend Skin care is increasingly becoming more important to men Emotional Needs Years for success in his career Feels he deserves better quality products. Tries to upgrade his lifestyle. Key Influencers Celebrity endorsers Sportsmen (cricketers), prominent businessmen WOM, friends Likes Just bought his first new bike (TVS Apache) and a new mobile (Nokia N Series). S hops for clothes, shoes, etc. often in malls and shopping complexes. Often eats out (with friends). Likes to visit pubs and discos. Receptivity Online needs are high Low towards mass media vehicles Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 28
PHI Learning WhatareHisNeeds/Motivations? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 29
PHI Learning Maslows Hierarchy of Needs Offline Online Ability to develop skills and fulfil ones potential SelfActualization Self-Esteem Ability to take on a community role that develops skills and opens up new opport unities Self-respect and ability to earn respect of others & contribute to society Ability to contribute to the community and be recognized for those contributions Ability to give and receive love; feeling of belonging to a group Social Belonging to the community as a whole and to sub-groups within the community Protection from crimes; sense of living in fair and just society Security and Safety Protection from hacking; ability to maintain varying levels of privacy Food, clothing, shelter, health Physiological Access to computer and Internet Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar SOURCE: Amy Jo Kims Community Building on the Web (Peachpit, 2000) 30
PHI Learning Motivational Intensity Depends on: How strongly consumers are motivated to satisfy a particular need. I mportance of Involvement: Degree to which an object or behaviour is personally r elevant. Motivational intensity and involvement determine the amount of effort c onsumers exert in satisfying needs. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 31
PHI Learning TheChallengeofUnderstanding ConsumerMotivation Reasons underlying consumer motivation are not always obvious. Research is neces sary to discover real motivations behind behaviours. Consumers at times do not a lways want to disclose real reasons for their particular choice or actions. Cons umers do not always know why they do what they do: unconscious motivation. Motiv ations change over time. Let us take an example of car buying and its underlying motivations. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 32
PHI Learning WhyAutomobile? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 33
PHI Learning
AutomotiveSector ClassificationoftheAutomotiveIndustry Commercialvehicles(TrucksandBuses) Passenge ltiutilityvehicles Twowheelers Threewheelers Tractors Forexplainingmotivations rateon passengercarsandmultiutilityvehicles. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 34
PHI Learning AutomotiveSectorDemandDrivers Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 35
PHI Learning
MeansendChainsStructure Attributes:Descriptivefeaturesthatcharacterizea product. Benefits:Personalbeliefs gsattachedor derivedfromvariousproductattributes. Values:Stableandenduringperson Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 36
PHI Learning
Issuesatypicalconsumerconsiders whenhechoosesacar Reliability/Durability Interiordesignandcomfort Manufacturersreputation, Brandn ue Exteriorappearanceand aesthetics Petrolvs.Dieselmodel FuelEfficiencyorMileage Recommendationofpeergroup,Word ofMouth(WOM)and cingandoverall performance. Servicingandthedeal offered PassengerandLuggagecarryin Size,length,machinecapacity PriceandResaleValueofoldcarmodel andTermsofPaymen Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 37
PHI Learning AutomobilePurchase:DemographicFactors Family life cycle Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 38
PHI Learning Bachelor Committed/ recentlymarried Impactoffamilylifecycleon consumerneed/preference Marriedwith children Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 39
PHI Learning FamilyLifeCycle Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 40
PHI Learning Thingsdonotchange, wechange . HENRYDAVIDTHOREAU Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 41
PHI Learning Let us unlock some key trends Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 42
PHI Learning
Howtheneedsofthesameconsumerchange ashemovesalongthefamilylifecycle Bachelorh h children Nondependentchildren Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 43
PHI Learning
InformationGathering Talkingtodealers Talkingtofriends/Colleagues/Relatives Inspectingthecar Carads Talking echanics Carbrochures/Articles/Programmes Internet Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 44
PHI Learning
Studythevarioussourcesofinformation, gatherandfindthereliabilityofvarious inform Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 45
PHI Learning MajorMotivators/Triggers Increasingfamilysneed Needtotravellongdistance Problemwitholdcar Status/Prestige Rational Factors Emotional Factors Promotion Peerpressure Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 46
PHI Learning
IntegrativeChoice:Purchasedecisionis influencedbyamixofrationaland emotionalfact Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 47
PHI Learning SocialInfluences CombinedeffectsofOccupation,EducationandIncomelevels Conspicuousandcompensatoryconsumptiontrends
Certainnormsandvaluesarecreatedbysocialinfluences. Soitisessentialtofindoutho (occupation,educationandincomeetc.)affectthe consumermotivationinthepurchaseofan Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 48
PHI Learning Sex
Menandwomenpossessuniquepersonalitytraits, interests,knowledgeandjudgmentcapabilit thowthemotivatingfactorsdifferbasedonthe genderoftheconsumer. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 49
PHI Learning ThankYou. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 50
PHI Learning Consumer Perception Consumer Perception 51 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Perception is Reality LOUIS CHESKIN 52 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Perception Process by which sensations are selected, organized, and interpreted Adding meaning to raw sensations 53 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Elements of Perception Sensation Absolute threshold Differential threshold Subliminal threshold 54 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Sensation Immediate response of our sensory receptors eyes, ears, nose, mouth, fingers to basi c stimuli such as light, colour, sound, odour, and texture advertisements, brand na mes, commercials, and packages depends on the sensitivity of the individual 55 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Absolute Threshold The lowest level at which an individual can experience a sensation. The point wh ich differentiates between something and nothing. Example: Absolute threshold of dri ver driving on highway to notice billboard. Adaptation: Getting used to certain se nsation. 56 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Attention The extent to which processing activity is devoted to a particular stimulus Competition for our attention 3,500 ad info pieces per day Multitasking Marketer s need to break through the clutter Microsofts butterfly decals on sidewalks 3D l ogos on cricket grounds 57 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Differential Threshold The minimal detectable difference between two similar stimuli (just ifference). Its not at all the absolute difference. Its an amount intensity of the first stimulus. The stronger the initial stimulus, the additional intensity needed for second stimulus to be perceived iated. 58 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar noticeable d relative to the the greater as different
PHI Learning Marketing Applications of the JND Need to determine the relevant JND for the products so that negative changes are not readily discernible to the public. product improvements are quite visible to consumers. 59 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Gradual Changes in Brand Name 60 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Subliminal Perception Perception of very weak or rapid stimuli received below the level of conscious a wareness 61 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Perceptual Selection Stimulus Selection Factors Webers Law Differences in size, colour, position, and novelty Interpretation: ass igned meaning to stimuli Schema leads to stimulus evaluation 62 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Webers Law A theory concerning the perceived differentiation between similar stimuli of var ying intensities (i.e. the stronger the initial stimulus, the greater the additi onal intensity needed for the second stimulus to be perceived as different). 63 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Perceptual Selection Depends on two major factors Consumers previous experience (expectations) Consumers motives 64 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Some Marketing Variables Influencing Consumer Perception Nature of the product Physical attributes of the product Package design Brand na me Advertisements and commercials Position of an ad 65 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Concepts Concerning Selective Perception Selective exposure Selective attention Perceptual defense Perceptual blocking 66 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Stimulus Organization Stimulus interpretation is associated with other related events, sensations, or images Gestalt: The whole is greater than the sum of its parts. The Closure PrinciplePeople tend to perceive an incomplete picture as complete. T he Principle of SimilarityGroups objects share similar characteristics. The Figur eGround PrincipleOne part of the stimulus will dominate (the figure/background). 67 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Gestalt Laws of Grouping The primary purpose of the visual system is the recognition of objects from basi c visual elements. The objects are seen as more than a sum of the parts, and the critical problem facing the visual system is how to group the elements to form objects. 68 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Demonstration of the Importance of Objects over Elements When elements are arranged in groups that define an object, we tend to see the o bject and not the elements. FFFFFFF FF FFFF FF FFFFFFF vs. EEEEEE EE EEEE EE EEEEEE 69 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Law of Proximity Things that are relatively close to one another tend to be grouped together. 70 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Law of Similarity Items that look similar will be seen as parts of the same form. 71 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Law of Good Continuation The tendency to perceive unseen parts of a pattern as continuing in a predictabl e and simple manner. 72 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Law of Closure Often, an object is partly occluded by other objects in our environment, and the visual system must fill in the missing information. 73 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning A Related Phenomenon Illusory Contours 74 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Law of Common Fate Elements of visual perception that move together are seen as forming a common ob ject. 75 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Common Fate Example - 1 76 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Figuring out what the objects are The Gestalt principles help us to understand how we figure out what the objects are, and how to interpret them. However, they do not explain how we figure out w hat an object is once we realize it is an object. 80 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Figure and Ground 81 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning The Figure-Ground Principle This billboard for Wrangler jeans makes creative use of the figure-ground princi ple. 82 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Perceptual Positioning Brand perceptions =functional attributes + symbolic attributes Perceptual map Companys own strengths and weaknesses in comparison with competitors 83 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Excellent product quality Perceptual Map Low value for money High value for money Low product quality 84 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Thank You 85 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning 86 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
ConsumerPerception Consumerselects,organizesandinterpretsstimuli intoameaningfulandcoherentpictureof eviewtheWorldaroundus! Consumersmakedecisionsbasedonwhatthey perceiveratherthan lityis. Consumersseewhattheywanttosee! 87 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
ElementsofPerception Sensation:StimuliandIntensity Absolutethreshold(e.g.seeinganad) Sensoryadaptation fgettingusedto), e.g.changeadcampaigns,package DifferentialthresholdJND(WebersL vementdecisions Negativechanges(Pricerise,size,qualityreductions, etc.) 88 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
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SelectivePerceptions Natureofthestimulus:Whatyouwanttoseeisbased onwhatyourmotivesareatthattime. ntads Expectationsandpreviousexperience 89 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
PerceivedRisk Anuncertaintyariseswhenconsumerscannot foreseetheconsequencesoftheirpurchasedeci sontheperson,the product,andthepurchase situation. Highriskperceiverscategorizedas gorizers. 90 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
BroadCategories Productcategoryperceivedrisk,e.g.tobuyadigital cameraornot. Productspecificperce chbrandof cameratobuy. 91 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
TypesofPerceivedRisk Functionalrisk:Theriskthattheproductwillnot performasexpected. Willthecellphone warrantyperiod? Physicalrisk:Therisktoselfandothersthatthe productmaypose. Will ealth?Isitsafeto use? 92 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
TypesofPerceivedRisk Financialrisk:Theriskthattheproductwillnot beworthitsprice. Willthepriceofmob t? Socialrisk:Theriskthatapoorproductchoice mayresultinsomeformofsocialembarr ooklikeanoutdatedmodel? 93 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
TypesofPerceivedRisk Psychologicalrisk:TheRiskthatapoorproductchoice willbruisetheconsumersego. Afte ,willmypeergroupmembers laughthatitisawrongchoice? Timerisk:Theriskthatthe tediftheproductdoesnotperformas expected. Ihavespentsomuchtimeinbuyinganewc steoftime? 94 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
HowCustomersHandleRisk Seekinformation, wordofmouth,newspapers Buyknownbrands/becomeloyal, e.g.buyAnnapurna . SelectbyCompany/Brandimage, e.g.buySony TV/Nokia Cellphones. 95 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
HowCustomersHandleRisk(cont.) RelyonStoreimage,e.g.buyingfromknownshops. Buythemostexpensivemodel. Seekreassu uarantees,prepurchasetrial,warranty period). 96 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
ApplicationoftheConcept Findoutthenatureofriskcustomersperceivebefore purchasingnewproducts. Removethen tomers. 97 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 99
PHI Learning Consumer Beliefs Consumer Attitudes Consumer Feelings Consumer Intentions Consum er Behaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 100
PHI Learning Beliefs are the knowledge and inferences that a consumer has about products/bran ds and possible benefits derived from using them. Beliefs result from cognitive learning. Attribute importance springs from: A persons assessment of the signific ance of an attribute. The amount of attention directed to it. A persons self-conc ept, advertising, and the salience of the attribute can influence the attention focussed on it. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 101
PHI Learning Brand distinctiveness: Consumer perception of a brand and companys marketing effo rt leads to developing certain personality of each brand, e.g. Tanishq Jewellery . Inferential beliefs: Information about one product of a company makes consumer s to form belief about another, price-quality beliefs, partially comparative pri cing, e.g. Akai TV, Big Bazaar retail. Consumer confusion: Insufficient/conflict ing information, mistaken identity, irrelevant ad slogan/appeal, change in the b rands key focus and positioning, e.g. Marie biscuits (Britannia, Parle). Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 102
PHI Learning Beliefs Companies or Retailers mark up prices before putting them up on sale. Di scounts offered by reputed companies are genuine reduction in prices. Examples Bargaining behaviour Wait for the discount announcement Celebrities are admired by their followers though Success of soaps and they do n ot use the product they endorse. cosmetics Lower price generally means inferior quality. Higher priced brands are not superior in quality by the same degree of multiplier. Shopping in a big departmental store saves money. Packaged ready-toeat food items marketed in India are generally not fresh. Positioning at a lower quality end, as done by Haier, Lenovo Big Bazaar, Subhiksha Limited success of MTR, ITC foods Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 105
PHI Learning As part of Advertising Experience: Influence on viewers moods, attitudes, recall, a ffinity, Examples: Hamara Bajaj Campaign, Amul ButterUtterly, butterly delicious As part of Shopping Experience: Influence of availability, environment/ambience Exampl es: Maruti service centres, Cafe Coffee Day, Brista coffee As part of Consumption Experience: Influence consumers consumption evaluation Examples: Vanilla Coke, Blu e Pepsi, Asian Paints Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 106
PHI Learning Desirable Attributes create positive attitudes Example: Health drinks Attitudes are: a kind of feeling for or against a stimulus; stored in long-term memory; the cog nitive knowledge about an object; predicted by beliefs in high involvement purch ase situations. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 108
PHI Learning Utilitarian function: Used to obtain rewards and avoid punishments Ego-defensive function: Self-protection Example: mouthwash Knowledge function: Simplifies dec isions Example: Forming of loyalty to certain brands Value-expressive function: Expresses identity to others Example: use of (IIM-C) labelled t-shirts Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 112
PHI Learning Direct formation Corresponds to the decision-making perspective and cognitive le arning. Linked to the experiential perspective. Classical conditioning/Associati ve learning: Positive affect is attached to objectusing a jingle. Mere exposurefre quent exposure to stimulus increases ones desire for it. Environmental forces Exa mple: design of the physical environment, cafes Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 113
PHI Learning Decision-making hierarchies: High involvement: beliefs Low involvement: beliefs Experiential hierarchy: Affect behaviour attitudes behaviour behaviour attitudes beliefs Behavioural influence hierarchy: Behaviour beliefs affect Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 114
PHI Learning Changing beliefs: Comparative advertising Example: Sugar Free, Saffola oil (less cholesterol) Changing attribute importance: Identification of new, improved att ributes Example: Washing powders, soaps Changing ideal points Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 115
PHI Learning BI A SN act = = A = act + SN i j b ie NB i j MC j Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 118
PHI Learning Changing Consumer Attitudes: Changing Beliefs Firms hope that changing beliefs about products will result in more favourable p roduct attitudes and influence what consumers buy. If beliefs are false, they sh ould be brought into harmony with reality and then stabilized and reinforced. If beliefs are accurate, it may be necessary to change the product. Comparative ad vertising can hurt beliefs about a competitive brand Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 120 120
PHI Learning Changing Consumer Attitudes: Changing Attribute Importance Changing an attributes importance is more difficult than changing a belief. How i s a brand perceived relative to ideal performance? Increasing attribute importan ce is desirable when the competitors brand is farther from the ideal point than y our product. Firms may add a new attribute which necessitated NPD or product rev ision. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 121 121
PHI Learning Changing Consumer Attitudes: Changing Ideal Points Altering consumers preferences for what the Ideal product should look like. It is far more difficult than any other approach in changing consumers, attitude s toward brand and product. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 122
PHI Learning The best way to capture customer is to adjust with his or her desirable situatio n and favourable attitudes. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 123
PHI Learning Post-purchase Action Attitude Learning Perception Attention Exposure Sequential model of purchase and repurchase behaviour in marketing Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 124
PHI Learning Consumer Behaviour Involvement & Emotion 126 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Consumer Involvement Cars Furniture Apparels Perfume Toothpaste Salt 127 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Involvement What is Involvement ? Perceived relevance of the object of consideration based o n inherent needs, values and interests A general level of interest in or concern about an object or activity without reference to a specific position Types of Involvement Situational (Purchase-Decision) Involvement The level of co ncern/care the consumer brings to bear on a particular purchase decision Endurin g Involvement The level of interest the buyer maintains for a class of product/a ctivity, well beyond the specific purchase situation 128 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Involvement (Cont.) Enduring involvement is related to the way one views oneself and is often linked to Family, Group and Lifestyle (Psychographic) variables. Perceived risk is rel ated to purchase involvement. In Low Involvement situations: In High Involvement situations: Behaviour Attitudes Attitudes Behaviour 129 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Purchase Involvement Is Effected by: The Product Class The Individual Involvement The Situation Communication 130 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Consumer Product Involvement Consumer Characteristics Social concepts Personality needs Expertise Intrinsic Self-relevance (Goals and Values) Product Characteristics Time commitment Price Symbolic meanings Potential for ha rm Potential for poor performance INVOLVEMENT Interpretation and Integration process Situational context Purchase situation Intended-use situation Time pressure Soci al environment Physical environment Situational Self-relevance (Consequences and Values) 131 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Means-End Basis for Involvement PRODUCT KNOWLEDGE SELF KNOWLEDGE 132 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Enduring Involvement Characteristics High Many Attributes Evaluated Narrow Latitude of Acceptance Small Evoked Set True Br and Loyalty Low Attributes are less important (very few used) Wide Latitude of Acceptance Large Evoked Set Spurious Brand Loyalty 133 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Enduring Involvement Characteristics High Central Route Arguments Substantive Messages (reduce counter-arguments) Fewer Ad s but packed with Information Price may be Relatively Less Important Info Search is Active. Low Peripheral Route Arguments Reminder Ads and Ads with Little Substance Frequent A dsLittle or no Contentonly a few points Price may be Relatively Less Important Inf o Search is Passive. 134 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Low Involvement Problem Recognition Selective Information Search Internal (Limited) Analysis of Alternatives Purchase Decision No Dissonance Post-Purchase Behaviour 135 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Medium Involvement Generic Problem Recognition Information Search Internal External (Limited) Few Simple Analysis of Alternatives Purchase Decision Post-Purchase Behaviour No Dissonance 136 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning High Involvement Generic Problem Recognition Information Search Internal External Many Complex Analysis of Alternatives Purchase Decision Post-Purchase Behaviour Dissonance 137 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Effect of Product Knowledge and Involvement in Decision Making INVOLVEMENT LOW Adequate product at minimum effort Very few concrete attributes Satisfactory product Very few abstract criteria HIGH Choose the best product. Un clear about criteria. Optimize satisfaction. Use many search and decision tools. 138 Motivation LOW KNOWLEDGE Choice Criteria Motivation HIGH Choice Criteria Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Creative Tactics INVOLVEMENT LOW HIGH MOTIVATION INFORMATIONAL (ve) Provide one or two clear benefits. Provide believable information. Dont overclaim. TRANSFORMATIONAL (+ve) Emotional authenticity of execution and liking the Ad. Consumer must personally identify with feelings created. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 139
PHI Learning High Enduring Involvement Customers Develop product class, brand expertise. Search for information in an ongoing man ner. Take special interest in product care. Augment/upgrade products; purchase ad -ons and complementary products. Become opinion leaders/brand advocates; build cl ose bonds with the company. May participate in new product idea generation. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 140
PHI Learning A Model of Emotion-driven Choice Symbolic meaning of consumption Self Social Pride Status Anxiety Motivation Preference formation Justification Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 141
PHI Learning The Psychology of a BRAND Domain BRAND Symbolic meaning Emotional Realm Personality Authenticity Reassuran ce CONSUMER Social language of the Brand Self-enhancement Self-Image Transformat ion of experience Safe choice Easy choice Functional Realm Keeping promises of p erformance Certainty in an uncertain world Replication of satisfaction 142 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Brand Strategy Alternatives High Involvement Symbolic Brands Cognition Functional Brands Emotions Low Involvement 143 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Brand Trust and Confidence Risk Perception Symbolic Brands Functional Brands 144 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Positioning a Brand Why? For whom? When? Against whom? 145 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Brand Identity Prism Picture of the Sender ue siq Pe rs y Ph on ali t y Relationship Culture Re fle ctio n Se e ag m lf-I Picture of the Recipient 146 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Building a Brand in Consumers Mind-space Trust Pe rce pti on o fQ ua lity Bra nd A wa re 147 ne ss Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Consumer Learning Dissonance and Experience Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 149
PHI Learning
Consumer Learning Itisthecognitiveprocessofacquiringskilland knowledge;learningistheacquisition oriesandbehaviours, includingskills,knowledge,understanding, values,andwisdom. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 150
PHI Learning
Importance of Learning Marketersmustteachconsumers: wheretobuy bywhomandforwhomthepurchaseistobedone howtouse,feelandperceiveth duct howtodisposeofproducts Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 151
PHI Learning Learning Taxonomy Learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 152
PHI Learning
Learning Theories Behavioural Theories Theories based on the premise that learning takes place as a bservable responses to external stimuli. Also known as stimulus responsetheory. Cog eories Atheoryoflearningbased on mental information processing, often in response lving. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 153
PHI Learning
Learning Processes Intentional Incidental Learning acquired as a Learning acquired by result of a care dent or without searchforinformation. mucheffort. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 154
PHI Learning Elements of Learning Theories 1. 2. 3. 4. Motivation Cues Response Reinforcement Stimulus Drive Response Reinf orcement 155 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Reinforcement
Apositiveornegative outcomethat influencesthe likelihood thata specificbehaviour w tedinthe futureinresponseto aparticularcueor stimulus. 156 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Stimulus Generalization Theinability to perceivedifferences betweenslightly dissimilarstimuli. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 157
PHI Learning
Reinforcement Positive Reinforcement Positiveoutcomesthat strengthenthe likelihoodofa cific response Example: Adshowing beautifulhairasa reinforcementtobuy shampoo Negat nforcement Unpleasantornegative outcomesthatserveto encourageaspecific behaviour Ex Adshowing wrinkledskinas reinforcementtobuyskin cream 158 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Other Concepts in Reinforcement Punishment Choosereinforcementratherthanpunishment. Extinction Combatwithconsumersatisfaction. Forgetting Combatwithrepetition. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 159
PHI Learning Observational Learning
A process by which individuals observe the behaviour ofothers,and consequences of our. Also known asmodelling orvicarious learning. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 160
PHI Learning Components Of Observational Learning Attention Retention Production Process Motivation ObservationalLearning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 161
PHI Learning Cognitive Learning Theory
Holds that the kind of learning most characteristicofhuman beings is problem sol bles individuals to gain somecontrolovertheir environment. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 162
PHI Learning Classical Conditioning A behavioural learning theory, according to which a stimulus is paired with anot her stimulus that elicits a known response which serves to produce the same resp onse when used alone. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 163
PHI Learning Models of Classical Conditioning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 164
PHI Learning Instrumental (Operant) Conditioning A behavioural theory of learning based on trial-and-error process, with habits f orced as the result of positive experiences (reinforcement) resulting from certa in responses or behaviours. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 165
PHI Learning
Operant Conditioning (Cont.) is the process in which the frequency of occurrenceofabitofbehaviour ismodified fthebehaviour. If positively reinforced, the likelihood of the behaviour beingrepea ases. If punished, the likelihood of the behaviour beingrepeateddecreases. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 166
PHI Learning Operant (or instrumental) conditioning (Cont.) Stimulus Response Reward Reinforcement Can you explain habit? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 167
PHI Learning Instrumental (Operant) Conditioning (Cont.) Reinforcement Likelihood OfBehaviour Behaviour Negative Reinforcement NOT the samething! Punishment Likelihood OfBehaviour 168 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
Reinforcement: An Example Youeatacake(behaviour) >Delicious(reward) >morelike casions Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 169
PHI Learning Extinction Behaviour whichisnot reinforcedtendsto becomeextinct gradually. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 170
PHI Learning Ehrenberg ATR Model Awareness Trial Reinforcement Advertising Note: Thethicker(darker)linesdenotethe majoreffects. Repeat purchase Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 171
PHI Learning Trial Learning/Experience Repeat purchasing Commitment Involvement Behavioural Loyalty Loyalty Attitudinal Loyalty Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 172
PHI Learning
Brand Loyalty vs. Habit Habit:theconsumerpicks productwithoutmuch thought,perhaps ience. Loyalty: theconsumer activelyseekstheproduct. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 173
PHI Learning Brand Loyalty FunctionofThreeGroupsofInfluences 1. Consumerdrivers 2. Branddrivers 3. Socialdrivers Fourtypesofloyalty 1. 2. 3. 4. Noloyalty Covetousloyalty Inertialoyalty Premiumloyalty Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 174
PHI Learning
Developing Brand Loyalty: Tricks and Traps 1. Productquality>satisfaction 2. Salespro ions 3. Stealingloyalconsumersawayfrom others 4. Price value exclusiveness Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 175
PHI Learning Memory Shortterm(comparetoRAM>volatile) mnemonicdevices
Longterm(comparetoharddisk> longer indurationbutimperfectIrememberit well STM REHEARSAL LTM DECAY Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 176
PHI Learning
Retention Informationisstoredin longterm memory Episodically:bytheorder inwhichitisacquired Semantically:accordingto significantc alpackageofassociations iscalledaschema. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 177
PHI Learning Role of Memory in Learning Stages 1. Encode 2. Storage 3. Decodeandretrieval Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 178
PHI Learning Recognition vs. Recall Recognition Rememberingwithstimulus Recall/Retrieve Rememberingwithoutstimulus Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 179
PHI Learning The Cycle of Remembering Learning Short-term Memory Long-term Memory Retrievall Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 180
PHI Learning Theconsumer observesapositive responsebytwo teens. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 181
PHI Learning Information Processing
Relatestocognitiveabilityandthecomplexity oftheinformation. Individualsdifferin ilityto formmentalimages,whichinfluencesrecall. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 182
PHI Learning Information Processing and Memory Stores Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 183
PHI Learning Information Processing Movementfromshorttermtolongterm storage dependson: Rehearsalcognitivepractice ssociationsortheway informationisstored. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 184
PHI Learning Experiential Marketing IdentityRelated Logo/Names (NIKE) Communication/ Advertising (TASTEOFINDIA) ProductPresence Design/Packaging (FRAGRANCES) ExperientialMarketing Website/Electronic Media (ENCYCLOPEDIAS) CoBranding Events/Sponsorships (FEMINAMISSINDIA) SpatialEnvironment Retail/Office (BARISTA) Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 185
PHI Learning ConsumersDissonance Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 186
PHI Learning
CognitiveDissonance Psychologicaldiscomfortcausedby inconsistenciesamongapersonsbeliefs, attitudes,a ariesinintensitybasedonimportanceofissue anddegreeofinconsistency. Inducesadr ce dissonancebychangingbeliefs,attitudes,or behaviours andtherebyrestoreconsistency Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 187
PHI Learning WhytheDissonance? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 188
PHI Learning
CausesofDissonance Performancerisk Physicalrisk(wearout) Highfinancialcommitment Highinvolvementlevel H ialvisibility Informationoverload Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 189
PHI Learning
IstheGrassGreeneron theOtherSide? Dissonancepredominantlypostpurchasebehaviour Lackofconfidence(doubts)abouttheco riorpurchasedecisionandeffortstoreconciledoubts Did I do the right thing? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 190
PHI Learning
ReactionstoDissonance TheConsumereliminatingorreevaluatingoneofthecognitive elements,orhisresponsibi heactordecision. Informationcanbedeniedordistortedorforgottenintheservice of Minimizingtheimportanceoftheissueordecisionthatledtothe dissonantstate. Newc dedtosupportthedecision. PotentialReactions Returntheproduct. Seekconfirmatoryinformation. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 191
PHI Learning Thank You. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 192
PHI Learning Communication and Consumer Behaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 193
PHI Learning Direct Communication Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 194
PHI Learning What is Communication? A tool used by marketers to persuade consumers to act in a desired way. Transmis sion of message from a sender to a receiver via a medium of transmission. Modern technology is inducing tremendous change in mass communication media. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 195
PHI Learning Basic Communication Model: Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 196
PHI Learning The Sender Initiator of a communication Formal sourceorganization Informal sourceA close frie nd, peer group or relative who provides information or advice. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 197
PHI Learning The Receiver A targeted prospect or a customer Every receiver interprets the message in his/h er own perceptions and experiences. Intermediary receiversThose who would specify or prescribe the marketers products (Wholesalers, retailers and distributors). U nintended receiversShareholders, creditors, suppliers, employees, bankers, and th e local community. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 198
PHI Learning The Medium The communications channel Impersonala mass media InterpersonalFormal or Informal Formalbetween a marketers agent (sales person) and a customer Informalbetween two o r more people by mail, etc. Classification of mass media Print (Newspapers, magazines, billboards) Broadcast (Radio, television) Electron ic (Internet ) Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 199
PHI Learning SocialMedia:Definition Social media describes the online technologies and practices share opinions, insights, experiences, and perspectives with media can take many different forms, including text, images, opular social media include blogs, message boards, podcasts, that people use to each other. Social audio, and video. P wikis, and vlogs.
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 200
PHI Learning Simply put: Social Media refer to people having communication online. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 201
PHI Learning The Message Verbal Spoken or written Has more product specific information. Non-verbal A photograph, an illustration or a symbol Stays in the mind of a customer for lo ng. Generally a mix of verbal and non-verbal message is preferred. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 203
PHI Learning Feedback Permits the sender to reinforce, to change or to modify the message so that it i s understood in the intended way. Common forms of feedback Body language Facial gestures Verbal feedback Feedback is essential and difficult to obtain in impersonal communication. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 204
PHI Learning The Communication Process Communication process involves the: Sender Receiver Medium Message Target Audien ce (the receivers) Feedbackthe receivers response Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 205
PHI Learning Comprehensive Communication Model Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 206
PHI Learning The Message Initiator (Source) Issues with Credibility Credibility of Informal Sources Credibility of Formal Sources Credibility of Spo kespersons and Endorsers Message Credibility Sources include word of mouth. Thes e sources are also called opinion leaders. Informal sources may not always be cr edible. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 207
PHI Learning The Message Initiator (Source) Issues with Credibility Credibility of Informal Sources Credibility of Formal Sources Credibility of Spo kespersons and Endorsers Message Credibility Neutral sources have the greatest credibility. Source credibility judged on past performance, reputation, service, quality, spokespersons image, retailers, and s ocial responsibility. Institutional advertising used to promote favourable compa ny image. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 208
PHI Learning The Message Initiator (Source) Issues with Credibility Credibility of Informal Sources Credibility of Formal Sources Credibility of Spo kespersons and Endorsers Message Credibility Effectiveness related to: The message Synergy between the endorser and the type of product Demographic cha racteristics of the endorser Corporate credibility Endorsement wording Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 209
PHI Learning Maria Sharapova for Nike Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 210
PHI Learning The Message Initiator (Source) Issues with Credibility Credibility of Informal Sources Credibility of Formal Sources Credibility of Spo kespersons and Endorsers Message Credibility Credibility of retailers Reputation of the medium that carries the ad Consumers previous experience with product Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 211
PHI Learning The Target Audience (Receivers) Personal characteristics and comprehension Involvement and congruency Mood Barri ers to communication Selective exposure to messages Psychological noise Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 212
PHI Learning FeedbackReceivers Response Feedback should be gathered: Promptly Accurately Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 213
PHI Learning Advertising Effectiveness Research Media and message exposure measures: How many consumers received the message. Which consumers received the message. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 214
PHI Learning Advertising Effectiveness Research (Cont.) Message Attention and Interpretation Physiological measures Theater tests Attitudinal measures Message Recall Measures Day-after recall Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 215
PHI Learning Designing Persuasive Communications Communications strategy Must include objectives. Includes cognitive models. Newer models include percept ion, experience, and memory. Target Audience Segmentation is the key. Media Strategy Consumer profile Audience profiles Message Strategy Involvement theory Central and peripheral routes Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 216
PHI Learning Designing Persuasive Communications Message Structure and Presentation Resonance Message framing Comparative advertising Order effects Repetition Wordp lay Used to create a double meaning when used with a relevant picture Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 217
PHI Learning Word Play An ad with word play used for signifying the need to save water. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 218
PHI Learning Word Play on SUV Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 219
PHI Learning Designing Persuasive Communications Message Structure and Presentation Resonance Message framing Comparative advertising Order effects Repetition Posit ive framing Negative framing One-sided vs. two-sided Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 220
PHI Learning Designing Persuasive Communications (Contd.) Message Structure and Presentation Resonance Message framing Comparative advertising Order effects Repetition Marke ter claims product superiority over another brand. Useful for positioning. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 221
PHI Learning Designing Persuasive Communications Message Structure and Presentation (contd.) Resonance Message framing Comparative advertising Order effects Repetition Primacy Recency Order of benefits Brand name Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 222
PHI Learning Designing Persuasive Communications (contd.) Message Structure and Presentation Resonance Message framing Comparative advertising Order effects Repetition Impor tant for learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 223
PHI Learning Emotional Advertising Appeals Fear Humour Abrasive advertising Sex in advertising Audience participation Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 224
PHI Learning Ads with Humour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 225
PHI Learning Messages with Fear Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 228
PHI Learning THANK YOU. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 231
PHI Learning Consumer Personality Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 232
PHI Learning Personality Selection Psychological Brand Personality Product Target Segment Functional Economic Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 233
PHI Learning Brand Personality Personality created to appeal target customers Association with brand: Character/Personality Emotional Positioning of brand: Social Values Benefits provided: Attributes Quality Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 234
PHI Learning Dimensions Source:DimensionsofBrandPersonalitybyJenniferL.Aaker Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 235
PHI Learning Consumer Expectations Product Clothes Cars Mobile Phone Insurance Cellular Service Computer House Expectations Sharp appearance, Style, Attractiveness, Comfort, Ruggedness Comfort, Value for money, Social status, Family product, Performance Durability, Style, Social stat us Peace of mind, Secured future Connectivity, Closeness to loved ones Pleasure, Profits from miracle of modern technology Comfort, Contentment, Good investment , Pride of ownership Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 236
PHI Learning Components of Brand Personality Brand Name & Logo Colour & Packaging Advertisement (including Brand Ambassador) Price Performance Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 237
PHI Learning Personality-Colour Association Respect Authority Secure Natural Relaxed Human Exciting, Hot Strong Passionate I nformal Masculine Nature Sophistication Power Authority Caution Novelty Temporary Warmth Powerful Affordable Informal Purity Cleanliness Delicacy Formality Regal Wealthy Stately Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 238
PHI Learning Brand Names Red Bull, Power Horse Energy Drinks Himalayan Mineral Water Le Bon Cheese Twinin gsDarjeeling Tea Puma Footwear Dove Bathing Soap Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 239
PHI Learning Thank You Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 240
PHI Learning Role of Age Consumption Perception Behaviour Learning Choice CONSUMER Knowledge Preference Ideology Intuition Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 242
PHI Learning Increased Spending by Young Unmarried Employees Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 250
PHI Learning Tech savvy Adults Shift from value for money to lavish lifestyle Convenience Stylish looks and features Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 251
PHI Learning Protection from germs: Economical without sacrificing the quality Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 252
PHI Learning Higher Spending by Middleaged People and Senior Citizens Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 253
PHI Learning Feeling and looking good Old Convenience Shift focus from saving for children to enjoying their own life Stylish looks and features Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 254
PHI Learning People Change by Age Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 255
PHI Learning Age-specific Targeting set of products Target kids, adults and older consumers with different Customers classificationne w born (0-1month), infant (25 months), cruiser (6-12 months), toddler (1318 months ), explorer (1923 months), preschoolers (24 + months) Targeted 21 years old with the boxy image, sexy college kids partying, but 42 yr olds felt nostalgic about their youth and bought the car EZ squirt ketchup for teens $3 million marketing to attract 1224 yr olds. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 256
PHI Learning Age and Life Stage Higher expenditure Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 257
PHI Learning Decision-Making Process Type of Families Delayed marriages Dual career families Smaller families Role of spouses Husband-dominant decisions Wife-dominant decisions Autonomous decisions Joint decisions Need to understand decision maker at every stage Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 258
PHI Learning THANK YOU. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 259
Influence of Reference Groups Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 260
Marketer Dominated Source High Non-Marketer Dominated Source Low Mass Media Delivered Personally Delivered Low High 261
PHI Learning Contents 1 2 3 4 Reference Groups Types of Reference Groups Reference Groups in India Reference Group in Choice of EducationPossible Hypotheses Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 262
PHI Learning Reference Group Person Group Point of Ref. Values Formation Attitudes Behaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 263
PHI Learning Types of Reference Groups Reference Groups Reference Groups Contactual Aspirational Disclaimant Avoidance Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 264
PHI Learning Indian Reference Groups Indian Reference Groups Non-Celebrity Education & Career Choices Parents Relatives Well-Wishers Seniors Friends No professional catering Faith Groups Religious Ritual Worship Spiritual Caste based Social marketing quotient Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 265
PHI Learning Education & Career Choices Reference Groups Early School Middle School Career Choice Sphere of Influence Graduation (Entry) PostGraduation Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 266
PHI Learning Hypotheses 1 Early School, unlike Middle School, is still governed more by proximity to home than by reference groups 2 Regional variations arise as supplydemand of occupations & societal opinion gover n graduation & career 3 Reference Group influences changes while at graduation Individual chooses Refere nce group now Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 267
PHI Learning ImpactofCulture onConsumerBehaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 269
PHI Learning WhatisCulture? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 270
PHI Learning CULTURE Culture is a combination of learned beliefs, values and customs that can direct the behaviour of consumers in a specific society. Knowledge & beliefs In India, hard work is attributed with success. Values Customs Turban is worn by male members of the Sikh religion in India. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 271
PHI Learning Characteristics of Culture Characteristics Culture is learned rather than being born with. Culture is manifested within bou ndaries of acceptable behaviour. Transmitted from generation to generation. Ritu als practiced. Dress sense(Sari is the traditional Indian dress while jeans, skir ts, frock, etc. are considered more modern. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 272
PHI Learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 273 273
PHI Learning Cultural rules can be categorized into three types Formal Rules Explicit standards as to how one should behave, and violations often carry sever e sanctions. Informal Rules Technical Rules Involve implicit standards as to what constitutes a good product. In Bollywood, normally a Hindi movie must have at least five good songs to be successful. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 274
PHI Learning Sub-cultures Sub-cultures consist of ethnic groups such as regional, linguistic, rural vs. ur ban, family composition, economic strata etc. Variations seen within a culture. These groups have common traditions, heritage, beliefs, customs and experiences that would differentiate different sub-cultures. For example, there are certain common aspects in the Indian culture but almost each state in the country reflec ts a sub-culture. Dress, eating habits, customs etc. are somewhat unique in diff erent parts of India and also, the life style pattern varies. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 275
PHI Learning Indian Teenagers in contrast to Western Teenagers Western teenagers Grew up in relative economic stability. Confronted by new realities: drugs, AIDs , pollution, teenage pregnancy, divorce, etc. Less sheltered home environment an d unstable family life. From young age itself learn to be independent and make t heir own choices in life. More independent and self-sufficient. Focus early on t hings they believe would provide for a secure and happy life, like earning money , spending culture or material possession and acquisition. A more stressful life as self-esteem is vested in doing well in multi-faceted roles. Indian teenagers Grew up in period of fast economic growth with good prospects. Confronted by new realities through the mass media but with few real-life experiences. Have more sheltered home environment and stable family life. Youth live with family of ori gin until their marriage. Are less independent and self-sufficient. Are idealist ic in their expectations and tend to deal only with issues that touch them perso nally. Lead a less stressful life as achievement in studies is paramount and oth er matters appear secondary. 276 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning FeaturesofIndianCulture Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 277 277
PHI Learning
DimensionsofCulturalDiversityinIndia Language Ruralvs.UrbanIndia Richvs. ersity Liberalvs.Conservative Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 278
PHI Learning
DiversityinLanguage,Religious Customs,Beliefs Thereare28statesand22languages Numerousdialectsspokenbypeople Religiouscustoms,ri fsvary Differentidentities,ideologies,interestsandoutlook
ImplicationforMarketers Communication&packaginginlocallanguage Productsneedtobealignedwithculture Thereisarightwayandwrongwayforeverything,butthatcanchangefrom placetoplace. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 279
PHI Learning
Ruralvs.UrbanIndia 30%ofthepopulationliveinurbanareas. 70%liveinruralareasbutthismeansthemajorit ssthecountry. DifferentincomelevelsinruralandurbanIndia. Ruralcustomersattachmore nctionality whileurbanconsumersgiveimportanceto aesthetics/serviceparameters. ImplicationforMarketers Differentmarketingmixforboththemarkets Modeofdistribution/channelsdiffers 280 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Richvs.Poor:Differentneedstofulfill Source: Bijapurkar 2007 (NCAER) Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 281
PHI Learning
GeographicalDiversity AnAverage UrbanNorth IndianConsumer Beliefs&valuesconservativein thinking,respectful Lifestyleflamboyant,likestohavea lglitter Behaviourwarmandfriendly,herd mentality,inquisitive
AnAverageUrbanEastern IndiaConsumer Beliefs&valuesslowinspeed, relaxed,simple Lifestyletraditional,simplebasic Behavi ed,slow adopters,rigid
AnaverageUrbanWestern IndiaConsumer Beliefs&valuesprogressivebynature, professional,valuestime Lifestylebalanced,but ed Behaviournoninterferingbuthelpful, earlyadopter,trendsetter,calculative AnAverageUrbanSouth IndianConsumer Beliefs&valuesorthodoxanddeep rooted Lifestylesimple Behaviourcurtbutpragmatic, ervative,cautious,not arisktaker 282 282 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
MarketersmustUnderstand IndianCultureinOrdertoSucceed Ford carsspeciallydesignedforIndianroads. Electrolux s madeforIndia ,keepsfoodfresh& withstandslongpowercuts. Samsungmicrowaveovenwithgrill. Nokia l deforIndia Nokia1100. McDonaldsMcAloo Tikki Burger&PizzaMcPuff. CartoonNetwork int thIndianfolktaleTenali Ram. WaltDisney cartoonTVshowsareinHindi. Omega watchespi ersonalitytoreplaceCindy Crawfordinitsadcampaign. CocaCola hasredesigneditscrates rsafedeliveryon poorroads. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 283
PHI Learning OverallMarketersneedto Indianize,Humanize,Harmonize!! Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 284
PHI Learning OR Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 287
PHI Learning OR Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 288
PHI Learning AModelofConsumerBehaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 289
PHI Learning Buyer Characteristics Personal Psychological Buyer Decision Process Problem Recognition Information Search Evaluation Decisio n Post-purchase Behaviour Marketing4Ps Product Price Place Promotion Environmental Economic Technological Political SocioCultural Post-purchase Evaluation Product Choice Brand Choice Dealer Choice Purchase Timi ng Purchase Amount Trial Repeat Purchase 290 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning
Decision-Making Process ProblemRecognition Perceiving a difference between a persons ideal and Perceivinga lsituationbigenoughtotriggeradecision InformationSearch
Clarifiestheoptionsopentoconsumers SeekingValue Prior Experience, WordofMouth,Advtg/ cityMktg efforts. Evaluatetheparametersandoptionsavailableforproduct purchase:Form rion AssessingValue AnalysisofAlternatives PurchaseDecision Decisiononwhen,whereandfromwhomtobuy BuyingValue PostPurchase Behaviour Valuein Evaluationduringconsumption/use consumption/Use 292 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Problem Recognition WhydoIneedit?
InformationSearch Whatexactlyisthisproduct? Analysisof Alternatives PurchaseDecisi urchase Behaviour Whatoptionsareavailable? Howexactlydoespurchasehappen? DidImaketherightchoi Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 293
PHI Learning Problem Recognition IdealState SimpleExpectations Futuregoals/Aspirations Motivations/SelfImage Culture ChangeinPers onal Circumstances ActualState Difference Physicalfactors Need ExternalStimuli ProblemRecognition
Perceiveddifferencebetweenanidealstateandactualstate motivatestheconsumertotakea Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 294
PHI Learning Marketing Implications Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 295
PHI Learning
Information Search InternalSearch Process of recalling stored informationfrommemory Dependent on motivation, ability& ity More recall in high involvement,perceivedrisk Informationretrieved Brand Attribute Evaluation Experience
ExternalSearch Usingoutsidesources Types: Prepurchase Duetoproblemrecognition Ongoing Regular; due t during involvement Retailer;media;experiential; interpersonal;independent InformationSearch Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 298
PHI Learning Evaluation of Alternatives: Alternative Set Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 300
PHI Learning TotalSet AwarenessSet Consideration Set Purchase Decision Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 301
PHI Learning Purchase Decision: Process
Influencerplaysanimportantroleinconsumerdecisionmaking. Rolesplayedbymembersofth hdemographic Influencermaynotbeanexpertbuthe/sheassumesakeyrolein parameters cts consumerdecisionandhis/herfamilydynamics. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 303
PHI Learning Decision-Making Approaches Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 304
PHI Learning
Post-Purchase Behaviour Consumer evaluates the product during consumption to see if it satisfiestheneed/e
Influencedbytypeofprecedingdecisionmakingprocesses. Dependsonthelevelofpurchasei evelofinterest inapurchase. Cognitive dissonance and Experiential marketing play a t roleinshapingupthesebehaviours. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 306
PHI Learning SelectiveSearch forEvidence
Gathersfactsthatsupportsaparticulardecision Disregardsfactsthatsupportotherconclus Conservatism andInertia Unwillingnesstochangethoughtpattern GroupThink Peerpressuretoconformtoviewsheldbyagroup Recency
Moreattentiononrecentinformation Ignores/Forgetsdistantinformation Inabilitytolookbe escopeofpastexperiences Rejectionofunfamiliar Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 307 Experiential Limitations
PHI Learning Consumerdecisionmakingprocess amongtodaysyouth Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 308
PHI Learning
WhatisCelebrityEndorsement? Theuseofcelebritiesinordertoincreasethesalesand/or therecallvalueofabrandis ts. TypesofCelebrityEndorsements Testimonial: Attestationbyacelebritybasedonpersonalusage. Endorsement: Celebritylends hernameandappearson behalfoftheproductorservice. Actor: Characterendorsement. Spok Celebrityrepresentsthebrandorcompanyover anextendedpartoftime. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 311
PHI Learning
Advantages Instantawareness,knowledgeaboutthebrandand easyrecall. Valuesandimageofthebrand ightedandrefreshedbythecelebrity. Thecelebrityaddsnewedgeanddimensiontothe bran rust,association,aspirationand connectivitytobrand. Beliefinefficiencyandnewappear l resultinatleasttrialusage. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 312
PHI Learning
Hypothesis 1 Everyproducthasitsownidentityanditsveryimportantto endorseaproductwithasuita Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 313
PHI Learning
TheRightPersonality Perfectmatchbetweenbrandimageandcelebrity Celebrity sfitwiththebrandimageandthe udiencematch. Celebrityassociatedvaluesandthecelebrityproduct match. Costsofacquiri brityandhisorher popularityalongwithcontroversyrisksassociatedwith thecelebrity. vailabilityandphysicalattractivenessof celebrity. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 314
PHI Learning
Hypothesis2 Indianconsumershavematuredandcelebrity endorsementaloneisnotsufficienttoattractt Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 315
PHI Learning Hypothesis3 Therearechancesthatthecelebritygainshigher popularitythantheproductendorsed. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 316
PHI Learning
Hypothesis4 SinglecelebrityMultipleproducts:Consumers dilemmatoassociatethebrandswiththecele Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 317
PHI Learning Hypothesis5 Consumerbuysaproductbasedonitsfeaturesrather thanthecelebrityendorsement. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 318
PHI Learning ThankYou! Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 319
PHI Learning IMPULSIVE BUYING BEHAVIOUR Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 320
PHI Learning Impulse Buying Sudden, compelling, unplanned, hedonically complex purchase. Generates billions of dollars in sales every year for consumer products. Reacts often mindlessly to s timuli that trigger certain automated responses. Information processing might ha ve taken place earlier; otherwise, behaviour may be totally impulse driven. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 321
PHI Learning Factors Affecting Impulse Buying Behaviour in FMCG Price and discount Advertising and sales promotion Visual merchandising Emotiona l attachment Company Income Festival season Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 322
PHI Learning Stops Needed for Boosting Impulse Sales Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 323
PHI Learning Examples A fan of Arsenal Football Club watching a football match of the team in a mall d eciding to buy an Arsenal T-shirt on display at the same store. A person with no special passion for a brand of high end wristwatches is impress ed with the look and make of a Rado watch and buys it. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 324
PHI Learning Hypothesis 1 Promotion and placement of product in the supermarkets have positive impact on i mpulsive purchase behaviour Promotion Advertisement of product in print and visu al media Various promotional activities regarding product Erecting hoardings and distributing pamphlets of product Display Packaging of product Placing of produ ct in store Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 325
PHI Learning Hypothesis 2 Lifestyle traits of a person characterize his impulsive purchase. Traits conside red: Fashion involvement Price consciousness Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 326
PHI Learning Hypothesis 3 Discount offers on products have a strong positive effect on impulsive buying co nsumer behaviour. Branded products attract more on discount offers as opposed to unbranded ones. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 327
PHI Learning Hypothesis 4 Shopping with others increases impulsive purchasing. Impulsive purchasing at ind ividual level vs. impulsive purchasing with others Shopping with family members, friends and colleagues Factors Susceptibility to influence Normative: conformance to social norms Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 328
PHI Learning Thank you Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 329
PHI Learning Indian Market Diversity Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 330
PHI Learning Demographic Diversity Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 331
PHI Learning Diversity in Men Normally, an Indian Male is: Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 333
PHI Learning Contented Conservative Anxious Rebel Troubled Homebody Tight-Fisted Traditionali st Affluent Sophisticated Contemporary Housewife Gracious Hedonist Diversity in Women Normally, an Indian Woman is: Housewife; happy with her state of her life/societ y Working women; happy with existing state of affairs Housewife; unsure of sitting at home Traditional; believes in saving for future Affluent; comfortable with t he finer things in life Housewife; active & sees herself as equal to husband Wor king women; believes in looking after herself Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 334
PHI Learning Diversity in Youth Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 335
PHI Learning Types of Diversity Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 336
PHI Learning Regional Diversity in India Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 337
Regional Diversity (cont) PHI Learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 338
PHI Learning Socio-Economic Diversity Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 340
PHI Learning Diversity in Cuisine The food available in India is as diverse as its culture, its racial structure, its geography and climate. The essence of good cooking revolves around appropria te use of aromatic spices. The cultures that have influenced Indian food are the traditions of different religions. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 341
PHI Learning Diversity in Clothing Traditional Indian clothings for women are sari, salwar-kameez, ghagra-choli. Fo r men, it is kurta, dhoti, pancha. Influenced by western culture: Blend of India n and Western clothings. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 342
PHI Learning Understanding Indian RuralMarketBehaviour Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 344
PHI Learning
ImportanceofRuralIndia Indiastilllivesinhervillages. Urbanmarketsareovercrowdedandgettingsaturated. The ftherural consumerbehaviour isdiffused andsometimesconfusing. Ruralmarkets need hfrommarketingin urbanlocations. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 345
PHI Learning
DefiningRuralIndia Organization NSSO(Census) Definition Populationdensity <400/sqkm 75%ofthemale wor on isengagedin agriculture. Limitations Ruralnotdefined Planning Commission Placesupto5,000 populationare consideredrural Characteristicsnot defined Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 346
PHI Learning RuralIndiaPopulationTrends Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 347
PHI Learning RuralIncomeDispersal Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 348
PHI Learning
FMCGConsumptionTrends Products ToiletSoap DetergentCake CookingOil HairOil/Cream Tea Toothpaste WashingPo ectricBulb Shampoo Biscuits HealthBeverages Urban(1000HH) 998 980 968 897 876 822 81 663 579 324 Rural(1000HH) 992 950 952 787 758 449 576 394 352 314 67 *HH=Households Source:NationalCouncilforAppliedEconomicResearch,2002 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 349
PHI Learning Myth1: Ruralisone homogeneousmass. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 350
PHI Learning RuralSECclassification Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 351
PHI Learning Upmarket RuralConsumers RuralSECGroups H o w D iffe re n t A re U p -M a rk e t R u ra l C o n s u m e rs ? 45 Percentage Of HH s Owning 40 35 30 25 20 15 10 5 0 R1 R2 R3 R4 C olTV C & S C onn Tw o-W hlrs P hone F ridge A /C ooler F our-W hlr W /M ac h Stereo-typed view of undifferentiated rural consumers no longer valid Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 352
PHI Learning Myth2: Companies/BrandscanThrive byOperatingEntirelyonUrbanMarket Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 353
PHI Learning RuralMarkethasEmerged byitsSheerSize 742millionpeople Estimatedannualsizeoftheruralmarket(Rs.,crore) FMCG Durables Agriinputs(includingtractors) Two/FourWheelers Total 65,000 5,000 45,0 00 8,000 1,23,000 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 354
PHI Learning
MarketingOpportunities Lowpenetrationratesinruralareas(per1000households) Durables MotorCycle CTV Pressure Refrigerator UrbanRural 77 28 304 48 635 178 335 35 Tota
FMCGUrban Shampoo 663 ToothPaste 822 HealthBeve RuralTotal 352 442 449 556 67 140 315 390 185 254 Source: NCAER2002 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 355
PHI Learning Myth3: RuralIndia ABlackhole forcommunication Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 356
PHI Learning MediaExposureLevels U p m a rk e t C o n s u m e rs U s e M o re M e d ia Percentage Exposed At Least Once/ Week 80 70 60 50 40 30 20 10 0 R1 R2 R3 R4 P r e s s TV C & S TV R a d io Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 357
PHI Learning InfrastructureImprovingRapidly 70 60 50 40 30 20 10 0 Satellite TV Radio Press Cinema TV All Media 70% of R1,R2,R3 can be reached through mass media. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 358
PHI Learning Myth4: RuralGDPisAllabout Agriculture Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 359
PHI Learning 100% 80% 60% 40% 33.9 17.7 48.4 20% 0% AGRI IND SER Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 360
PHI Learning Myth5: RuralDisposableIncomeisa FunctionofMonsoonandnotGrowing. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 361
PHI Learning Myth6: Reachandonlyreachisthekey. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 362
PHI Learning DistributionofVillages Source: Census 2001 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 363
PHI Learning Myth7: Urbantrickledown communicationworksinruralIndia. What is a Rural Consumer Like? Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 364
PHI Learning KEEPITSIMPLE I am eager to adopt or buy, but I do so only if you talk in my language and signa ge.
SupportingInsights Itsgreatfun towatchTV,butIcannotunderstandandrelatetoit. Iamwillingtoliste dengage withme. IamsimpleItakethingsliterally,especiallywhenitcomestoads. I dsymbols,colours and images. Talktomeinmylanguageinasimpleway,thatswhatI und Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 365
PHI Learning
FAMILIARITYBREEDSCOMFORT Only if its familiar, will I trust. SupportingInsights IhavefaithintheBrandsIhaveused. IfIamsatisfiedwithmyfamilia ld Ichange? Iamaversetotakingrisks,particularlyifitisnewand unfamiliar. Familia . IfIfindmyvillagefolksareusingaparticularbrand,thenI feelreassured. Propensity for trial is relatively poor. Choice dictated by Group Influence Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 366
PHI Learning
LUXURIES@Rs.5 Jo Chahoon Woh Paoon, Lekin Panch Rupai Mein (Will get what I want, but only at Rs . 5) SupportingInsights Ibuylowcostproductsbecausetheyfitintomybudget, astheygi ng. AtanytimeIhavelimitedamounttospend,butIneed to buy a number of things, rtant. Rs.5mylakshman rekhaIdonothavemorethanthat tospend. Rs. 5 and Rs. 10 are m e points in rural India. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 367
PHI Learning
SHOWVALUEThenRuralBuyers WILLBUY I will pay more only if you show me that I get more tangible benefits that I want out of the product. SupportingInsights IfIseeandfeelthedifference onlythenwillIbelieveandact. Show ualityorquantity;only thenwillIbuy. IfIcansensethedifference,Idontmindpaying edifference,Ishallselectthecheaperone. Priceisimportant;yetitshouldmeetmyexpec Packaging and brand experience are the key. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 368
PHI Learning HAATMERIDUNIYAN Haats (village markets) are my window to the worldwhere I experience new things.
SupportingInsights Haat ismyouting.Iamlookingtoexplore. Haat givesmeanopportunitytobuyproductsth estiveoutingandlotsoffunwhereIgetto seenewthings. Ihavesomeplaces(Haats)whic pentochange. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 369
PHI Learning
DiscoveriesaboutRuralMarket Discovery1 Discovery2 : Theruralmarketisahugepotentialmarket. : Theruralconsumerc ha combinationofmassandunconventionalmedia. Discovery3 : Theruralmarketisadiffer . Discovery4 : RuralGDPisnotaboutagriculturealone. Discovery5 : Ruraldisposableinco wingand growingfast. Discovery6 : Qualityofreachandnotmerereachisgoingto bethe heruralmarket. Discovery7 : Needforaruralmarketingmix. Ruralrelevantadvertising Con ivation Useofnonconventionalmedialikehaats,fairs,etc. PricepointSKUs. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 370
PHI Learning The future lies with those companies who see the poor as their customers. CK Prahalad, Jan 2000 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 371
PHI Learning
4Ps&4As ProductPricePlacePromotion AcceptabilityAffordabilityAvailabilityAwareness MarketingTools Product Price Place Promotion MarketingChallenges Acceptability Afforda ility Availability Awareness Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 372
PHI Learning Product Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 373
PHI Learning
AppropriateProductStrategies Smallunitpackaging Productfeaturesservicequalitypriceand performancerelationship S sthekey Newproductdesigns Sturdyproducts Utilityorientedproducts Brandingstrategy Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 374
PHI Learning Packaging Associatedwithaffordability convenience consumer recognition,andproductprotection aterial,size,convenienceandaesthetics Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 375
PHI Learning Fakes:SomeExamples Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 376
PHI Learning Pricing Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 377
PHI Learning
IssuesinPricingAffordability Lowcost/cheapproducts Avoidsophisticatedpacking Refillpacks/reusablepackaging Highligh ingvalue Priceadaptations Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 378
PHI Learning
ExamplesofRuralPricingStrategies Godrej:Cinthol,FairGlowand Godrej in50gpacks,pricedat Rs.45,meantspecifically harand UttarPradesh. HLL:LifebuoyatRs.2for50g. CocaCola:Thereturnable 200mlgl Colgate Cibaca Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 379
PHI Learning
PlaceRuralDistributionChallenges Largenumberofsmallmarkets Dispersedpopulationandtrade Poorconnectivity Lowavailab ledealers Inadequatebanking/creditfacilities Poorproductdisplayandvisibility Poor onofoffersandschemes Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 380
PHI Learning
LevelsofDistribution Level Partner CompanyDepot/C&FA Distributor/VanOperator/ SuperStockist /Rural Distri SubDistributor/Retail Stockist/SubStockist/Star Seller Wholesaler Retailer Location National/Statelevel Districtlevel 1 2 3 Tehsil HQ,townsand largevillages 4 5 Feedertowns,largevillages, haats Villages,haats Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 381
PHI Learning
DistributionAdaptations HubandSpokeModelExample:CocaCola UseofaffinitygroupsExample:ProjectShakti Haat e:Colgate SyndicateddistributionExample:Cavin Care&Amrutanjan Useofmarketingcoopera mple:Warna Bazaar in RuralAreas MobiletradersExample:FMCGcompanies Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 382
PHI Learning
PromotionIssues Mostoftheproductsaresoldinthelocalruralhaats.Result: Theymaynotfetchaverygoodprice. Theyhavelimiteddemandresultinginlowturnoverand roductimprovementislimited.
Somestategovernmentbodiesextendpreferentialtreatmentto theseproductsatthetimeof mitedawareness. Attemptsaremadetopublicizeandpromotethesaleofthese productsthrou itionsandmelas. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 383
PHI Learning
PromotionAdaptations Conventional Television Radio Non Conventional Haat andMela FolkMedia(puppetandmagic ) VideoVan Mandi (Market) Personalised Directmailer POS(demonstration,leaflet) Press Cinema Wordofmouth Interpersonalcommunication Outdoor:WallPainting, Hoarding Animator Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 384
PHI Learning
Melas &Haats Melas 1. 25,000melas 2. Companiescanconcentrateonthe top100melas 3. Pushkar Mela inR han 4. OrganizedbythestateVeterinary Department 5. Productsales,promotion, demonstr atabase generation 6. Culturalactivitiesandruralsports Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 385
Haats 1. Periodicmarketslocatedinlargervillages (>40,000)populations. 2. 1050villag iced. 3. Sundaymarketsaremostpopular. 4. Averagenumberofoutletsis315and averageda utRs.2lakhs. 5. Tradersparticipateinatleast4haats. 6. 81%ofthevisitorsarerepe
PHI Learning
TypesofPromotions Advertising Salespromotionscoupons,contests,demonstrationsandsampling, Example:Tata i Haat Hungama Directmarketing,Example:Videocon Publicity,Example:ProjectShakti andAP ine Usingadirectsellingthroughasalesforce,Example:Swasthya Chetna forLifebuoy Push lesforce andtradepromotion Pullstrategyadvertisingandconsumerpromotion Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 386
PHI Learning
FutureProspects RuralpercapitaconsumptionofFMCGs toequalcurrent urbanlevelsby2017. Industryanalys Gsectorinruralareasto grow40%against25%inurbanareas. Telecomexpectedtogrowfro todayto300millionby2012 Semiurban&rurallifeinsurancemarketexpectedtorise from Governmentspendingwillcontinuetogrow. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 387
PHI Learning Changing Indian Consumer Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 389
PHI Learning Is India Different? India has shown tremendous growth in the last two decades. Brand India is riding high. Happy times for Indian consumer as disposable income has increased consid erably over the years. India s growing consumer goods market provides the opport unity for multinationals. But with this opportunity lies the hurdle to understan d the ever changing Indian consumer. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 390
PHI Learning Factors Responsible for Change Rising disposable income and increasing western influence. Average Indian consum er today is richer, ambitious, more knowledgeable and profile-conscious. More an d more women focusing on career instead of homemaking. A more dynamic lifestyle leading to reliance on easy-to-use products like ready-to-eat food, home deliver y, etc. 391 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar
PHI Learning Who are the New Indian Consumers? India s consumers are young: 70% of the country s citizens are below the age of 35 years, and half of those a re under 18 years of age. People are deeply rooted in Indian culture and traditions yet connected to and c urious about the outside world. People in the middle-income segment still spend about half their budgets on the basics, that amount is falling every year, leavi ng more money for other areas of consumption. Beyond basic needs, households mak e their children s future a clear priority. Education is seen as a passport to a better tomorrow. To gain a winning edge, parents spend much money and effort ch oosing the right schools and tutoring for their children and invest in nutrition , computer games, and books. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 392
PHI Learning Has the Indian Consumer Changed? Yes! But the change is gradual and noticeable only over a sufficient period of t ime. It is not visible unless we look back. An individuals values/beliefs may dif fer from the prevalent culture unorthodox. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 393
PHI Learning SOME CHANGES AS NOTICED IN INDIA Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 394
PHI Learning Eating Out In urban India, families that do not eat out are considered oldfashioned and con servative. Most popular-multi-cuisine restaurants offering Indian fare, along wi th a form of Chinese and Western fast food. Pizza and cheese, with Indian flavou rs and spice. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 395
PHI Learning Health & Fitness Indians are paying more attention to their health and striving for better fitnes s levels. For example, joining gyms or clubs. Rapid rise in sale of fruit juices , cool drinks, etc. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 396
PHI Learning Metro-sexual Male Male grooming a growing business in India Annually growing at 15% Currently, usa ge is restricted to the young, urban upper income male. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 397
PHI Learning Women Empowerment More women entering the workforce Increased use of cosmetics Increasing time pre ssures Convenience gains value Easy to cook food, home delivery, wide choices in shops, etc. Demand for ancillary services/products, e.g. cook, domestic help, m icrowave oven Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 398
PHI Learning Teens With increased awareness through television and advertising, teens are an import ant influence on family decision-making in urban India. Have mastered the art of bullying their parents into making purchases. Gadgets or products that they wan t newly launched chocolate bar, instant noodles and breakfast cereals. mobile phon es, the TV remote, DVD player and computer programs Marketing mangers also exploiting this surge in the number of ads for children Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 399
PHI Learning Marriage Earlier, arranged marriages used to happen with elders consent. Many people nowad ays rely on individual choice and judgement. Examples: matrimonial sites prolife rate shaadi.com, bharatmatrimony.com Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 400
PHI Learning Luxury India is experiencing a rise in incomes and higher consumption patterns. Demand for luxury products is also on the rise. Vertu mobiles, Tag Heuer, Louis Vuitton , Hugo Boss, Porsche, Ferrari, Parker Pen. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 401
PHI Learning Digitalization Young people in urban areas are increasingly using the Internet. Online banking for service payments and even for buying company shares. Success of social netwo rking websites. Avail Online booking of tickets for movies, trains and airlines. Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 402
PHI Learning Credit Earlier, people avoided buying things (nonessential) on credit/loan. Controlling desires Instant gratification Easy availability of credit Rise in number of hom e and vehicle (Two, four wheelers) loans Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 403
PHI Learning Snacking Eating 2 or 3 times a day Eating when hungry. Snacks and chocolates of wide vari ety available Lays, Kurkure, Perk, Cadbury Dairy Milk chocolates, Britannia bisc uits, etc Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 404
PHI Learning Movies and Serials Earlier, Movies made in Bollywood (Emotions, Action, Drama) were a craze. In Ind ia, women are mostly housewivesidle time at home. Hence, the debut of serials tar geting this segment was launched by Balaji Telefilms (Ekta Kapoor). Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 405
PHI Learning Western Influences Opening of Indian economy, mass and social media exposure and increase in overse as travelling Acceptance of western clothing, especially in urban India Gifting Cards Pub culture Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 406
PHI Learning THANK YOU Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 407

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PHI Learning UNDERSTANDING CONSUMER BEHAVIOUR Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 1

PHI Learning CONSUMERBEHAVIOUR

PHI Learning Howdosituationalfactorsaffectconsumerspurchasedecision? Whentopurchase ThreePossibilitiesin ConsumerPurchase Decision Wheretopurchase Howtopurchase

PHI Learning Motivation ConsumerBehaviour

PHI Learning SocialInfluences CombinedeffectsofOccupation,EducationandIncomelevels Conspicuousandcompensatoryconsumptiontrends

PHI Learning Sex

PHI Learning 86 Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

PHI Learning Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 99

PHI Learning Reinforcement

PHI Learning Observational Learning

PHI Learning Cognitive Learning Theory

PHI Learning Memory Shortterm(comparetoRAM>volatile) mnemonicdevices

PHI Learning Information Processing

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar 200

DiversityinLanguage,Religious Customs,Beliefs Thereare28statesand22languages Numerousdialectsspokenbypeople Religiouscustoms,ri fsvary Differentidentities,ideologies,interestsandoutlook

AnAverageUrbanEastern IndiaConsumer Beliefs&valuesslowinspeed, relaxed,simple Lifestyletraditional,simplebasic Behavi ed,slow adopters,rigid

PHI Learning Problem Recognition WhydoIneedit?

PHI Learning Purchase Decision: Process

PHI Learning SelectiveSearch forEvidence

Gathersfactsthatsupportsaparticulardecision Disregardsfactsthatsupportotherconclus Conservatism andInertia Unwillingnesstochangethoughtpattern GroupThink Peerpressuretoconformtoviewsheldbyagroup Recency

PromotionIssues Mostoftheproductsaresoldinthelocalruralhaats.Result: Theymaynotfetchaverygoodprice. Theyhavelimiteddemandresultinginlowturnoverand roductimprovementislimited.

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