EXECUTIVE SUMMARY

Consumer behaviour is the study of how individuals, groups and organizations select, buy, use and
dispose of goods, services, ideas or experiences to satisfy their needs and wants. The emerging
costumer trends play an important role in analysing the marketing opportunities. A consumer buying
behaviour is influenced by cultural, social and personal factors. The consumer passes through five
stages of the buying decision process: Problem Recognition, Information Search, evaluation of
alternatives, purchase decision and post purchase behaviour. This model is important for anyone
making marketing decision and customer pass through all stages in every purchase.
In our study, we have analyzed the buying behaviour of consumers by interviewing 3 consumers
each for a different product variety. The first was a security guard who had bought a soap for Rs. 10.
He was set on buying the same brand of soap and was not very keen on trying other brands. He has
been using the product for a long time and was satisfied with the quality. Next, we interviewed the
receptionist of a hostel who had bought a pair of shoes for approx. Rs. 1000. the primary factor
influencing consumer behaviour in this case is the quality and long lasting performance of the
product. There are other factors like price, awareness, information as well but these factors play a
very marginal role in the ultimate decision making process. Lastly, we interviewed a senior analyst
about a pair of headphones which he had purchased for Rs. 1150. We believe that this buy revealed
a little bit about his personality. The respondent conducted thorough research and judged several
parameters before converging on the product. He does not indulge in impulsive buying and
considers products from several brands. He was not much worried about availability as he brought
the product online.
As marketing students, we realized that understanding consumer buying behaviour offers
consumers greater satisfaction (Utility). We must assure that we adopt the marketing concept and
are consumer oriented.

Category 1: A mundane product of cost less than Rs.10
Product Cost: Rs. 10
Product: Lux
Customer Profession: Security Guard.
Customer Name: Vijay
Vijay purchased a Lux soap for a price of Rs. 10. He has been using Lux since his childhood and it was
the first soap he was exposed to by his family. He has not experienced any ill effects so far. He is
particularly fond of the fragrance the product offers. Besides fragrance he prefers Lux for the glow it
offers and the quality of product. He has faith in the brand and he shall not consider changing the
brand even if there is a price hike. He purchases Lux once in a week from the nearby general stores.
Even though he used soap brands like LifeBouy and Cinthol in his village, where Lux was not easily
available, but he still prefers Lux. Given a chance he would recommend others to use Lux but he
himself is not very highly influenced by others suggestions and recommendations. Advertisements
also played a part in his decision to continue with Lux. He categorized the purchase as a casual
decision since he has been using since his childhood.
The consumer was set on buying the same brand of soap and was not very keen on trying other
brands. He has been using the product for a long time and is satisfied with the quality.
Refer to Table 1.
Category 2: A PERSON WHO HAS INVESTED IN A PRODUCT WORTH RS. 1000
Product Cost: Rs. 1000
Product: Shoes
Customer Profession: Receptionist
Customer Name: Chandan
The respondent has been purchasing Bata shoes for an approximate price of Rs. 1000 over the last
several years. He works as a receptionist in a hostel and is thus required to spend a lot of time,
around 10 hours, at the counter. He thus expects certain qualities from the shoe product which can
make him feel comfortable at work.The first time he used Bata shoes was in the year 2002 on the
recommendation by his friend and since then he has become its permanent customer.
Though he tried different products like Reebok, Nike, Columbus etc. but he still preffered the
qualities of Bata shoes like endurance- he believes Bata is sturdy and tough and lasts longer than
other shoes, lightweight- doesnt make his legs feel heavy, soft- comfortable in wearing, price-
cheaper as compared to other branded products. He is neither influenced by the advertisements and
commercials in the media nor by the suggestions of his peer group. He thus believes in his own
experience with the product. He frequently suggests the product to his colleagues. Even if there is a
hike in price of the product he shall stick with the same. He is not influenced by the availability as he
is willing to wait in case the Bata shoes are noteasily available in his vicinity.
The respondent doesnt trust discounts on other products and doesnt expect the Bata shoes to offer
him the same. If there is bad publicity of Bata he shall still trust the brand as he has been using it for
such a long time. So his faith in the product cant be easily moved. But the respondent is also willing
to recommend some add-ons in the existing product like the sole can be stronger and stitches can be
more stylish. In case he faces any problem with the product he shall not immediately switch over to
a new product but shall first report it to the company and in case of repudiation he wont mind
trying a new product. Other cheaper products in the market dont influence his decision.
Thus it can be concluded that the primary factor influencing consumer behaviour in this case is the
quality and long lasting performance of the product. There are other factors like price, awareness,
information as well but these factors play a very marginal role in the ultimate decision making
process.
Category 3: A thousand rupees product that reveals the kind of person the buyer is
Product Cost: Rs. 1150
Product: Headphones
Customer Profession: Senior Analyst
Customer Name: Rishi Nag
The respondent has recently purchased a pair of headphones for a price of about Rs. 1000. He is a
music enthusiast and believes that headphones are something very close to his personality and
reveals the kind of person he is. On an average, the respondent spends about 1 hour listening to
music and is very conscious of the quality of music. The respondent wanted to listen to music at his
workplace and hence wanted headphones that did not leak sound to the surroundings.

The respondent had conducted extensive research to understand the various products available in
the market. He had consulted with several peers to develop a basic understanding of the various
features and attributes of headphones and also took into account their recommendations and
suggestions. During this research, he also took help of the internet and read through several forums
to identify the best brands in the industry. The respondent was able to identify different types of
headphones (such as In-ear buds, earphones, Circumaural headphones, Supra-aural headphones)
and establish their pros and cons (such as Noise Isolation, Noise Cancellation, Ambient Noise
Reduction, impedence and senstivity). All through this process, the respondent did not take into
account his budget constraints and hence, in the next step, he listed products belonging to the
brands identified, which were within his purchasing capacity.

After careful examination of various types of headphones and several brands of the product, the
respondent bought Sennheiser HD202 headphones and is very pleased with the sound quality. He
evaluated several brands such as Sony, Phillips and Sennheiser and compared their prices. He
purchased the product from an online merchandise store and was pleased with the quick delivery,
hence availability of the product was not a problem. The respondent claimed that he was conscious
of the images of the brands and would recommend others to buy Senneheiser. He categorised the
buy as a careful first time decision. He claimed to be very satisfied with the product and deemed the
product value for money.

In conclusion, the respondent conducted thorough research and judged several parameters before
converging on the product. He does not indulge in impulsive buying and considers products from
several brands. He was not much worried about availability as he brought the product online.
Table 1:
Purchase Decision Process
Name Vijay (Security Guard)
Product Lux Sop
Category of Product Hygiene Product, Personal care
Usage Frequency Daily
Requirements Fragrance, glow, cleansing properties
Research No research. Using since childhood
Category of Buy frequent buy
Factors considered (in order of
importance)
brand importance, availability(will use other brands only in case of
emergency), price
Price Rs. 10
Availability Easily Available (general stores)
Importance of Factors determining the Purchase behaviour
Brand Very High
Look Low
Feature High on Fragrance, Low on price, Medium on cleansing properties
Price Low
Influence of peers Low
Availabilty Low
Luxury, Life Style Low
Durability Low
Income Low
Product/Availabilty -
Importance? Product more important
Post Purchase Evaluation
Willing to pay more for the
product? Yes
Satisfied with the product Yes
Will recommend to others? Yes
Will buy again from same brand? Yes
Value for money? Yes

Table 2:
Purchase Decision Process
Name Chandan (ER3 Receptionist)
Product Bata Shoes
Usage Frequency Almost everyday
Where does he use it At work
Requirements Durability, light weight, price, brand
Research
No research done (based only on
experience)
Category of Buy Frequent buy, based on past experience
Factors considered (in order of
importance) Durability, light weight, price, brand
Price Rs 899
Availability Easily Available
Importance of Factors determining the Purchase behaviour
Brand High
Look Medium
Feature Very High
Price Medium
Influence of peers Low
Availabilty Low
Luxury, Life Style Low
Durability High
Income Medium
Product/Availabilty - Importance? Product more important
Post Purchase Evaluation
Willing to pay more for the product? Yes
Satisfied with the product Yes
Will recommend to others? Yes
Will buy again from same brand? Yes
Value for money? Yes

Table 3:
Purchase Decision Process
Name Rishi Nag
Product Sennheiser HD202 Headphones
Usage Frequency Average 1 hour per day
Where At Work Place
Why Music enthusiast
Requirements Noise should not leak and disturb others
Research
Very High Research done - peers and internet, 3 brands
surveyed
Category of Buy First time careful buy
Factors considered (in order of
importance)
Should satisfy requirements, brand, availability and price
(filtering factor)
Price Rs. 1150
Availability Online (easily available)
Importance of Factors determining the Purchase behaviour
Brand High
Look Medium
Feature Very High
Price Medium
Influence of peers Low
Availabilty Medium
Luxury, Life Style Low
Durability Low
Income Low
Product/Availabilty - Importance? Product more important
Post Purchase Evaluation
Willing to pay more for the product? Yes
Satisfied with the product Yes
Will recommend to others? Yes
Will buy again from same brand? Not certain, depends on requirements at that time
Value for money? Yes