Review of Literature

Consumer Behaviour: Consumer behavior is defined in a variety of ways such as the dynamic interaction of affect and cognition, behavior and environmental events by which human beings conduct the exchange aspects of their lives. by the American Marketing Association. (2008). In a simpler form, consumer behavior can be explained as the actions of consumers and the different approaches a person may take to decide what to buy and the decision making process. The decision making process can be effected by an assortment of factors all relevant to a person or persons perspective. Determining that behavior can be complex and marketers need to use research techniques to understand the consumer. Understanding the pre-purchase issues, purchase issues and post purchase issues from a marketing perspective raises many questions and is an in-depth process. The basic marketing concept holds that firms exist to satisfy consumers needs. Consumer behavior is when consumers are studied to see what they are buying, where they are buying and how much they are spending on these products. Marketers need to know this information in order to create an effective campaign for a particular product or service. Marketers want to satisfy the consumers needs and in order to do so they must first understand how to do it (Perner, 1999). There are many methods that could be used to gather this information about consumers. There are direct mail surveys, focus groups, direct mail comment cards, individual interviews, and Internet surveys. Some methods are considered more effective than others but all methods are used. Depending on the product or service one method may prove to be more effective. Consumers are looking for the best deal on the things that they want to buy and are expecting companies to market products to show why their product should be bought and where that product can be found. Consumers are the most important part of the campaign because it is centered on the consumers wants and needs. Consumers are the one that are buying products and without them, the product or service will have a short life cycle as well as the company that put it out.

Marketers study the impact of consumer behavior on society as far as health and the economy (Perner, 1999). If a fast food company has an aggressive advertising campaign, it can result in health problems. Granting easy credit can have a negative impact on the economy. Studying consumer behavior helps make decisions on things like; what time to air certain advertisements, where to place certain ad, and what price range to keep the product in. Laura Zinn in her book retailing who will survive? 1990 shows that retailing has evolved into much a life cycle as it has into a profession. There are so many retail businesses that do not just manage their business they live them. The same enthusiasm about serving customer well is shared among owners, manager and employees at all levels within successful retail organization of all sizes. Retailing has started of with no fixed or defined pattern of doing business during the early stages people use to up business and self on the business and sell on the basis of surviving and there were no need for high marking strategies or store layouts and designs.

Brian P. Woolf in his book Customer Specific Marketing in the year 1992, has said that giving top priority to customer loyalty is extremely important. By re arranging our offer bundle of economic and ergonomic factors and skimping it in favour of our most loyal customer, do we optimize our profitability? Great success comes from a marketing strategy based primarily on understanding customer economic and only secondary on customer loyalty.

Evan and Berman in their book Marketing 1992 said convenience stores are food oriented retailers that appeal to busy customer by reducing the time spent shopping. Because time utility is the major customer service on which these stores complete, they must be easily accessible, high traffic areas. Well organized, logical stores design that speed product selection and check out also are must. Because there stores are easier to get to and get out of than traditional food stores, they save customer time but they also charge very high prices.

Cronin & Taylor, Journal on customer satisfaction and customer behavior (1992) claimed that customer satisfaction is not only affected by customer services but also by price and
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convenience. Additionally, several researches have been done the value for money and the value attached to it by customers. These studies also point out the difference between price and quality and how they influence perceived value, customer satisfaction and customer behavior.

MCGoldrick& Ho, Journal on improving service quality (1992). They further state that merchandise refers to quality and price of the products carried by the store. Similarly, the trading format consists of elements like location, layout and atmosphere. Lastly, customer service includes the level of assistance provided by the retailer, the speed of service and friendliness of staff. Customer satisfaction can be achieved by improving service quality.

Samson and little in their book retail Merchandizing 1993 said retailing is classified into two broad heading and they are (1) Small Store Retailing and (2) Large Scale Retailing. They have said that under small store retailing they are convenience store, specialty stores and service business and under the large store retailing the type of retailing outlets classified are departmental stores, variety stores, supermarkets, discount stores and hypermarkets.

Inn Chaston in his book Customer Focused Marketing in the year 1993 has said that, satisfaction occurs when customers expectation are equal to the perception formed during all the processes associated with the selection purchase and consumption of the desired product.

P.K. Sinha and S.C. Saboo in their book Services Marketing in the year 1994, said that customer service is no longer seen as mere activity but a major marketing tool customer service is now customer care. The function of marketing is to obtain customer however no company can be successful and profitable on the basis of online sales. Services provide the area to retain the customer. It has the capability to obtain additional sales from existing customer and to generate new sales from positive word of mouth.

Hokanson, Journal on dimensions of customer satisfaction (1995) is affected by many factors which include friendly employees, courteous employees, knowledgeable employees, and helpful employees, accuracy of billing, competitive pricing, service quality, good value and quick service. For purposes of this study, we concentrate on nine dimensions of customer satisfaction which are Location, Additional Services, product quality, Service Quality, Facilities, Reliability, process, Value for money, Staff and Personnel service. Furthermore, the nine dimensions also consist of 21 elements which are used in the collection of data and analysis of results.

Levy and Weitz in their book Retailing Management 1995 said like off price retailers, factory outlets store offer medium to high quality product at deep discounts. A majority of these stores are manufacturer owned outlets establish to sell those goods that cannot be sold through traditional retailers. The suburban and rural areas offer large tracts of land which are less expensive to buy and maintain than urban areas. The location reduces the risk of having to compete with traditional retailers that carry the same good at full price.

Churchill and Peters in their book Marketing 1995 said that complete on price, operating cost must be hold minimum. They also hold a minimum level of customer service and usually fill out their own order comes, present them to the clerks at centralized check outs and pick up the merchandize as in share delivery station. Keegan, Moriarty and Duncan Journal on merchandise lines (1996) have said that because specially stores carry highly defined merchandise lines, they often are referred to as limited line or a single line retailer. The product mix in this store is pretty much narrow, with usually deep assortments within product categories.

Carven, hills and woodruff in their book Marketing Management in the year 1996 has said that, Pre and post sales services are very important in customer satisfaction. Pre sales services are very important in customer satisfaction. Pre sales services include prompt quotations, easy

content, reliable timely, delivery, product warranties, replacement guarantee, technical advice, credit, test facilities etc.

Pramod Batra and Deepak Mahendra in their book Management Ideas in Action in the year 1996, has said that good customer service is more effective than even the most expensive advertising. They also said that customer should be given a Unique Service Advantage, so that they will become your repeat customer and bring in more customers.

Stamats D.H. in his book Total Quality Service: Principles, Practices and Implementation in the year 1997 has said that customer service and satisfaction can be served if proper data is available. He also says that, contrary to what most people think, service is not as mushy and touchy feeling as it has been made out to be. It requires considerable handwork from the management to understand its implication.

Woodruff & Slater Journal on customer value (1997) suggest that there is need for companies to adjust their strategies towards delivering superior customer value as it is a strong driver of customer satisfaction, retention and profitability.

Sudarshan Kapoor, in his book Marketing management in the year 1997, said that, the level of customer service should be measured. Customer service level refers to the extent the customer satisfaction is being performed. A 100% customer service level means that all customers are fully satisfied with the product availability, but this is not possible because there are several factors affecting customer service namely time, availability, dependability and convenience.

John F. Lytte in his book What do your Customer really wants? in the year 1997 has started that customer service is more than a phone line to answer customers question and complaints. It
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is more than solving problem after the purchase is made. Customer service is relationship building with customer.

Winsted, Journal on service provider (1997) Consumer travel and multinational service corporations have increased the opportunity for service failures where consumers from one culture experience service problems in another cultural setting. With eating being equally required of all travelers, restaurants are a logical starting point for researching issues surrounding intercultural service failures. While a service provider can act locally, the influx of non-locals can upset such a strategy. For example, it found that consumers in Japan and America have different expectations of service encounters. This can lead to a clear mismatch between expectations and experiences. The ultimate goal of a service provider is to retain customers, which is less costly than attracting new customers.

Choi & Rajan, Journal on effects of macro segmentation1997 This paper then, will explore global consumer tendencies, discussing the effects of macro segmentation, or the grouping of national markets, which generally involves characteristics associated with the market itself rather than the individual consumers who comprise any given market. Given that the objective of marketing activities is to facilitate exchange, it seems apparent that any chances for success in non-domestic operations will be greatly improved if attention is directed at consumer, rather than country characteristics. I will also discuss the failures of a standardized international marketing strategy in individual countries and the seven postulations put forth by which establish a frame of reference for global and international marketing discussions, beginning with the first and most important: It is no easier to build a given volume of profitable business in a foreign market than it is to do so in the domestic market, In fact, it tends to be a little more difficult and expensive. Disastrous and sometimes amusing international marketing mistakes caused by lack of proper linguistic and cultural knowledge and sensitivity will also be cited. Just as one size doesnt fit all in global marketing, one word doesnt fit for all cultures. In fact, if used erroneously, it can cripple the most promising of deals. Finally, I will explore how the seriousness of intercultural service failures can be reduced if companies embrace recovery strategies, which are well
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documented as playing an important role in consumers final level of satisfaction. I will also discuss the failures of a standardized international marketing strategy in individual countries and the seven postulations put forth by which it establish a frame of reference for global and international marketing discussions, beginning with the first and most important.

Robert Krientner, in his book Management in the year 1997, has said that in a cut throat, cost conscious and globally competitive market, customers are very difficult to be retained. It is therefore necessary that the service provide practice relationship building. He also said that the leader should be relationship motivated and not task motivator.

Ferrell in his book Marketing 1998 has expressed that the largest category of merchandise sold is through direct selling are cosmetic and fragmented, decorative accessories, vacuum cleaners and home appliances along with many more. About three quarter of direct selling are made in the house, 12 percent in the work place and 8 percent over the phone.

Pramod Batra and Vijay Matra in their book Management Thoughts in the year 1998, he said that, a dissatisfied customer is like a spark that spread like wild fire. A dis satisfied customer should not be taken as on unwanted nuisance. Listening to customer complaints in 90% of the job, taking necessary action is another 7% and 3% is following up with him to ensure satisfaction.

Lemmink& Mattson Journal on service quality perceptions (1998) showed that the degree of personal warmth displayed by service employees towards customers was related significantly and positively to service quality perceptions and customer satisfaction.

Dellaert et al Journal on variety in product categories (1998) concedes that variety does not only help retailers attract more consumers but it can also motivate them to purchase more while at the store. If a retailer gives greater variety in product categories, it can improve the convenience of purchase in this way increasing customer satisfaction. Variety product selection can also help reduce the perceived costs like effort and travel time.

Domzal and Unger, Journal on global marketing efforts 1998 This paper will discuss that although the above-mentioned three steps sound great on paper, they do not mention the gigantic and costly tasks that each of these three steps would entail. Cracking an international market is a goal for most growing corporations, yet the misuse of simple words can sabotage even the best global marketing efforts. For example, when Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say, It wont leak in your pocket and embarrass you. However, the company mistakenly thought the Spanish word embarazar meant embarrass. Instead, the ads said, It wont leak in your pocket and make you pregnant. Obviously, the need for meticulous language experts is crucial in any global marketing campaign. This paper will give examples of other amusing but disastrous mistakes in foreign ad campaigns.

Mason, Mayer and Ezell in their book Retailing 1999 said that malls are vast organization that offer consumer both wide variety and deep assortment within their product mix. Their internal management and marketing are unique within the industry. Segmented or departmentalized by merchandize division, they are essence a series of specialty stores operating under a single roof. Each department function like a self contained business, it is not uncommon to see varied price promotion across departments, as well as inconsistent brand and assortment.

Philip Kotler in his book Marketing Management 1999 has said that hyper markets are viewed as strip centered under single roof. These huge operation some occupy as much as 2,25,000 sq ft of selling space and they attempt to create a synergic move between food and general merchandising. These hypermarkets have been successful in Europe. They have successful in
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Europe due to lack of development of supermarkets and discount stores. The success of these types of retail outlet depends on superior merchandise planning, inventory and cost control and customer service. Van Mesdag, 1999. Its essence is that it covers a broad spread of the worlds countries and that it strives consciously to standardize its marketing strategy between those countries. The majority of international marketing approaches today are still based predominantly on culture-sensitive adaptation as each new foreign market is entered. This paper will also explore the notion proposed by Kapferer in 1992 that It is time to realize that the majority of brands operating across Europe are neither global nor local, but glocal. The differences in language; distribution facilities; retail structure; topography; climate; regulations governing marketing, cultural features (color, taboos, history political make-up, religion, education) between countries are so great that pure, comprehensive standardization of marketing mixes is not feasible. Yet, the main characteristic of global marketing is the attempt to standardize all elements of the marketing mix as much as possible. A study on emerging positioning strategies in global marketing says: The first step is to establish the product as a world brand by establishing name, feature and image standardization worldwide. The second is to identify global segments that seek the same product benefits and/or share similar psychological characteristics. The third strategy is to position the world brand toward either the high-tech or high-touch spectrum.

Philip Kotler in his book Marketing Management 1999 has said that retailing involves all the activities involved on selling patient. Retailing involves all the activities involved on selling goods and services directly to final consumer for their personal, non business use. Many institution manufacturers, wholesalers are retailers, doing retailing. But most retailing is one by retailers; business whole sales come through primarily from retailing. Although most retailing is done in retail showroom in recent years non showroom retailing, selling by mail, telephone, door to door contact, vending machines and numerous electronic means have grown tremendously.

Rustom, Shorab and Nusli Davar, in their book Salesmanship and Publicity 1999 said that, the object of every sale is to render satisfaction to the customer and sale is therefore incomplete unless the customer is satisfied. This feeling of satisfaction can be built up due to main factors on which satisfaction depends, such as:- goods themselves. Store or organization, salesmans services.

Susan Camuti in her book The New Retailing Champs 1990 expressed that the development of retailing illustrates the marketing concept in operation. Innovation in Retailing has emerged to satisfy consumer wants and needs. Hypermarkets appeared in the early 1930s in response to consumer desire for low prices. In the 1950s innovative new discount showroom offered consumer convenient location and expanded hours of operation. The development of off price retailers in 1980s reflected consumer demand for fast services, convenient location and expanded hours of operation.

William J. Staten, Michael J. Etzel and Bruce J. Walker in their book Fundamentals of Marketing in the year 1991, has stated that, the marketing concept emphasize customer satisfaction, yet it is only in the last five years that a serious effort has been made to understand how a state of satisfaction is reached. Consumer from expectation based on past experience, information from social sources, sales presentation and advertising. When using the product they compare this expectation with their experience to arrive at a period level of satisfaction.

Warren J. Keegan Sandra Movariety and Thomas R. Duncan, in their book Marketing in the year 1995, has said that satisfied customer are the goal of all marketing companies. In high income countries consumers demand quality service is higher than ever. Customer satisfaction isnt an end itself, its a necessity for repeat business.

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Thomas S. Hateman and Scott A. Snell, in their book Management Building Competitive Advantage in the year 1996, has said that, in the current market where customer is the boss, the managers must engage not only in task oriented behavior, but also relationship oriented behavior, which means demonstrating trust and confidence, acting friendly and considerate showing, appreciation, keeping its people informed and so on. Thomas S. Hateman and Scott A. Snell, in their book Management Building Competitive Advantage in the year 1996, has said that, in the current market where customer is the boss, the managers must engage not only in task oriented behavior, but also relationship oriented behavior, which means demonstrating trust and confidence, acting friendly and considerate showing, appreciation, keeping its people informed and so on.

Lewis and Bridger Journal on authenticity of the consumer (2000) show that mutations in the new consumer behavior derives mainly from its desire to purchase authentic, stressing that the main difference between these two types of consumers is that, while the consumption behavior of traditional consumer was largely motivated by a need for comfort, the new consumer behavior is determined by looking for authenticity. Authenticity is the new consumer mind equivalent to that level of quality able to produce him fascination. It has become a new quality standard, and manufacturers must strive ever more to achieve it, in order to ensure the authenticity of their products that the new consumer seeks. The search for authenticity determined the new consumer to become individualistic. New customer assumes the freedom to seek those subtle differences that distinguish an authentic product from one produced in series.

Hoyer & MacInnis Journal on the field of customer satisfaction (2001) also say that dissatisfied customers can choose to discontinue purchasing the goods or services and engage in negative word of mouth. Since a lot of research has been performed in the field of customer satisfaction, many definitions have been formulated as to what Customer satisfaction entails. However, for the purpose of this paper while defining satisfaction, we refer to the customers satisfaction with the stores which they visit often.

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Hasemark and Albinsson, Journal on product provider (2004) satisfaction is an overall attitude towards a product provider or an emotional reaction to the difference between what customers expect and what they actually receive regarding the fulfillment of a need.

Terblanche & Boshoff, Journal on increased competition in the market (2004) describe supermarket facilities as the sum of elements that contribute to a pleasant shopping atmosphere such as shop layout/ aisles that make it easy to move around, store cleanliness and well shaped product displays. Because of increased competition in the market, retailers are being driven to improve their aisle and display management strategies. This is being done to improve company share of consumer purchases and wallet.

Liao & Chuang, Journal on consumer behavior (2004) say that the successful implementation of a companys marketing concept is to an essential degree dependent on the frontline employees because of their direct customer interaction. While dealing with customers, employees are meant to be at their best behavior. They are meant to act in a particular way and some acts are either positive or negative. Employee behavior is vital in a service company since employees act as a link for the organization with its customers.

Burke, Journal on improving the customers shopping experience (2005 asserts that aisle management involves the effective placement of categories in the store aisles to improve customers shopping experience.

Sadhu Ramakrishna, Santhosh Reddy, Journal on brand image (2005) To be successful, brands need to convince consumers that they carry a different image and value from other competing products. In other words, brands have to show their true personality to the potential consumer and celebrities are the best way to do this.

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Ciavolino & Dahlgaard, Journal on service quality (2007) contend that service quality is the measure of service levels based o the attributes of the core product. Such attributes include; Facility layout-display of products, clean environment, clear labeling. Other attributes can be Location, Process-queue management, waiting time express checkouts, supermarket operation hours, deliverytime, additional services like parking, parent & baby facilities, and loyalty/membership cards, Product- variety of groceries, durability, merchandise quality and Merchandising.

Ciavolino& Dahlgaard, Journal on value for money (2007), Value for money is the perceived level of quality relative to the price paid for a product or service. Value of money is based on competitive pricing of products, discounts awarded to customers, and promotions.

Kar, 2010 Consumer behaviour has changed greatly over the last 25 years, but it has been evolutionary and theseeds of change have been apparent for generations. Mutations occurring in the new consumers perception of goods quality should not be understood as a quickly process or easy to locate in time. In any case, we believe that the origin of these changes in consumer behavior is found through the introduction of the US Consumer Bill of Rights in 1963, which gave the consumer a higher status, because the Government took on the responsibility of protecting his rights: the right to safety, the right to be informed, the right to choose and the right to be heard. From that moment, manufacturers could no longer simply produce, because the consumer needs and wants needed to be taken into account. Consumers had choice for the first time and were aware of it. Underlying the consumption choices is a desire to feel good, not only physical, but also emotionally. But, in the last decades, consumers have faced an explosion of product choices and it is causing so called consumer vertigo. The consumer became increasingly anxious about choices and sometimes he chooses not to buy something for fear he will make the wrong selection. What makes people feel good emotionally is changing now. Thus, the consumers are seeking more purposeful pleasures that last longer and offer deeper satisfactions. Impulse shopping gives way to a more considered and conscientious form of consumption. All these announce a new era: the era of mindful consumption and of new
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consumer. In this paper is realized first a literature review in order to identify the determining factors of the emergence of new consumer and to highlight the main features of this one. Further, through a research from secondary sources, it was analyzed the main changes occurred in the new consumer buying behavior during economic crisis.

Martinz-Ruiz et al, Journal on additional serives (2010) assert that customers always look for convenience benefit in the modern environment. Additional services are essentially important in the retail business and play a role in determining customer satisfaction through creation of convenience. For example, concur that additional service like the availability of parking can create convenience for customers with vehicles thus leading to a positive effect on customer satisfaction. Other additional services like the membership card/loyalty card also provide access to discounts and promotional goods.

Supriyo Patra and Saroj K. Datta, Journal on brand endorsement (2010) from their study concluded that selection of right and appropriate celebrity for brand endorsement is a challenging proposition. The advertisers and the agencies should consider various dimensions while celebrity selection.

Jayant Sonwalkar, Manohar Kapse and Anuradha Pathak, journal on brand recall (2011) concluded that celebrities act as major opinion leaders and plays a vital role in brand recall. They are helpful in initiating a desired state of need among people but do not bring credibility to any advertising message.

Prof. Gurleen Arora, Journal on Celebrity Endorsements (2011) in her study stated that a celebrity can enhance the image of a product in many ways. It is the role of marketer to ensure the appropriate fit between the product and the celebrity. She further stated that Celebrity

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Endorsements, on one hand give support to the brand but in no way guarantees that the disadvantages associated with the same could be avoided.

Sheetal Soni, December 2012, Consumer behavior refers to the act of individuals who are directly involved in obtaining and using goods and services which leads to the act of purchase. Consumer behavior is not only the study of what people consume but also where, how often and under what conditions. Consumer behavior has no history or body of research of its own. It is a new discipline that borrows heavily form concepts developed in other fields such as psychology (study of individual), sociology (study of groups), social psychology (study of how an individual operates in groups), and anthropology (the influence of society on the individual).

Paula, OBPR Research Paper, Influencing Consumer Behaviour, 18 December 2012. The effectiveness of a regulatory intervention may depend on how successful that intervention is in changing consumer behaviour. This paper explores two broad frameworks for considering consumer behaviour: rational choice theory and behavioural economics. The former assumes that choice is the process of maximising utility subject to budget constraints. The latter assumes that choice can be affected by a number of cognitive, social and emotional factors. The application of behavioural economics to policy design has not been widespread. However, recently a mechanism for translating these findings to public policy has been developed through nudge. Nudge uses insights of behavioural economics to change choice architecture with a view to influencing behaviour. Research has found that, in some circumstances, small alterations to choice architecture can give effect to disproportionately large behavioural changes.

Imran Hameed, Journal of Marketing Research, Consumer Buying Behaviour a Factor of Compulsive Buying, 2012. This empirical research investigates the impact of windowsill placement on the compulsive buying behavior of consumers on three different types of products i.e., convenience products, shopping products, and specialty products. We hypothesized the positive effect of windowsill placement on all three types of product categories. The categorical
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regression (Optimal scaling) was used to test the hypotheses. The data was collected via self administered questionnaire from Pakistan through systematic random sampling, and the sample consisted of 500 respondents. The results of data analysis supported only the 1st hypothesis which highlighted that placement of products in shopping centers has an impact of unplanned buying of consumers for convenience products.

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