A Project on Study on Consumer Buying

Behaviour
SUBMITTED BY

Bhavana Ramesh Gupta

Class Roll No.: 79

T.Y.B.M.S. SEMESTER – VI

PROJECT GUIDE

Manisha Singh

SUBMITTED TO

UNIVERSITY OF MUMBAI

M.V.M. EDUCATIONAL CAMPUS

M.V.M’s Degree College of Commerce & Science

Affiliated to University of Mumbai

Off Veera Desai Road, Andheri (West)

Mumbai – 400058.

A.Y. 2019 – 2020

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 CERTIFICATE

This is to certify that Ms. Bhavana Ramesh Gupta, Class Roll No.: 79
of Third Year B.M.S., Division B, Semester VI has successfully
completed the project on “A Study on Consumer Buying Behavior ”
under the guidance of Prof. Ms. Manisha Singh in the Academic Year
2019-2020.

Date:_____________

Project Guide: Principal:

External Examiner: College Seal:

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 DECLARATION

I, Bhavana Ramesh Gupta, a student of M.V.M’s Degree College of Commerce

& Science, T.Y.B.M.S. SEMESTER – VI hereby declare that I have completed
my project on “A Study on Consumer Buying Behavior” in the Academic Year
2019 – 2020.This information is true and original to the best of my knowledge.

Date:

Signature of Student

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.

I would like to thank my Principal Dr. Gopal Kalkoti for providing the necessary
facilities required for completion of this project.

I would also like to express my sincere gratitude towards my Project Guide Ms.
Manisha Singh, whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially My Parents and Peers who
supported me throughout my project.

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 Index
Sr. No. Topic Page No.

➢ Abstract 06

1. Introduction to the Topic 07

2. Objectives 10

3. Main Text of Report

3.1. Definition of Consumer Behaviour 13

3.2. Stages of Consumer Buying Process 13

3.3. Types of Consumer Buying Behaviour 15

3.4. Factors influencing behavior of buyer 16

3.5. Marketing 27

3.6. Consumer Decision Making Process 29

3.7. Consumer Research Method 32

3.8. Hero Honda Company Ltd Profile 32

3.9. Phoenix Dealer Profile (Phoenix Motors) 38

3.10. Applications of Consumer Behaviour 45

4. Case Study 47

5. Survey 51

6. Discussion 56

7. Recommendation 58

8. Conclusion 61

9. Bibliography 63

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 Abstract

Marketing is so much more than creating a catchy phrase or a jingle people will sing
for days. Understanding consumer behaviour is a vital aspect of marketing. Consumer
behaviour is the study of how people make decisions about what they buy, want, need, or act
in regards to a product, service, or company. It is critical to understand consumer behaviour to
know how potential customers will respond to a new product or service. It also helps companies
identify opportunities that are not currently met. The study of consumer behaviour is very
essential in the field of marketing as it helps firms to construct smarter marketing strategies by
getting an insight about what affects the decision making of consumers. The purpose of this
paper is to analyse the theoretical aspects of consumer buying behaviour and the factors that
influence it. This paper also reviews the relationship between consumer buying behaviour and
the factors that influence the consumer’s purchasing process and purchase decision.

KEYWORDS: internal and external factors, factors affecting purchase decision,

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INTRODUCTION

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 INTRODUCTION

Consumer behaviour is the study of consumers and the processes they use to choose,
use (consume), and dispose of products and services, including consumers’ emotional, mental,
and behavioural responses. Consumer behaviour incorporates ideas from several sciences
including psychology, biology, chemistry, and economics.

There is a growing literature on the importance of consumer behaviour in the field of

marketing. In today’s era of the ever changing business environment, many firms strive hard
for their sustenance and their stake in the market. With the growing advancement of
technology, the growing globalization, increasing socio-economic involvement of businesses
in foreign countries and the rising political interference in corporate world, it is becoming very
challenging for organizations to manage and develop their business. They come up with several
strategies to make optimum utilization of their resources. They also make every effort to
minimize their costs and generate maximum revenue. However, organizations cannot
accomplish their objectives if they have scrawny ‘marketing strategies’. And when it comes to
marketing strategies, the customer is always bound to be the ‘core’. Customers have a very
crucial role in the success of any organization since they are the people who generate revenue
for the organization by buying, using and influencing others to buy their products and services.
Hence, companies always want to know what makes the customer buy or not to buy their
products and services. The perspective of marketing is about creating demand for the
organization’s products and services and also fulfilling their customer needs – present or future.
For this reason, it is imperative that marketing professionals recognize the manner in which the
consumers react when they are exposed to ‘N’ number of available options varying in price,

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payment mode, and purchasing and delivering method. Consumers do not purchase a product
and service only because of its actual utility, but also because of its perceived worth. There are
several reasons for why an individual purchases a particular thing, for example; he/she actually
needs it, or perhaps he/she just wants to try it out, or he/she buys it just to honor someone who
recommended that product.

From a point of view of a buyer, now-a-days it has become quite difficult to make a
purchase decision as a result of so many available options which are so close in comparisons.
It is difficult for consumers to decide on what they should spend their time, efforts, energy and
money. There are several factors in the background playing a significant role to take customers
to the final decision. On the other hand, it is very difficult for organizations to know on what
the customer will spend their time, efforts, energy and money. Therefore, it is very crucial for
their marketing team to understand the factors that impact the customers purchasing process
and buying decision. There is abundant attention paid on the 4 P’s of marketing – Product,
price, place and promotion.

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objectives

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 OBJECTIVES

➢ To underst and what consum er behavi our is and t he di fferent types of

consumers.
➢ To understand the relationship between consumer behaviour and the
marketing concept, the societal marketing concept, as well as
segmentation, targeting and positioning .
➢ To understand the relationship between consumer behaviour and
cust om er value, sat isfacti on, t rust and ret ent ion .
➢ To understand how new technologies are enabling marketers to better
satisfy the needs and wants of the consumers.
➢ To understand how marketers are increasingly able to reach consumers
wherever consumers wish to be reached.
➢ To understand how the world’s economic condition is leading t o
consumption instability

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MAIN TEXT OF
REPORT

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 REVIEW OF LITERATURE

3.1. Definition of Consumer Behaviour

Consumer behaviour refers to the mental and emotional process and the observable behaviour
of consumers during searching, purchasing and post consumption of a product or service.

Consumer behaviour involves study of how people buy, what they buy, when they buy
and why they buy. It blends the elements from psychology, sociology, socio psychology,
anthropology and economics. It also tries to assess the influence on the consumer from groups
such as family, friends, reference groups and society in general.

Buyer behaviour has two aspects: the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.

What influences consumers to purchase products or services? The consumer buying

process is a complex matter as many internal and external factors have an impact on the buying
decisions of the consumer.

3.2. Stages of the Consumer Buying Process

There are six stages to the Consumer Buying Decision Process (for complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all six stages, determined by the degree of
complexity:

Buying Process:

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1) Problem Recognition (awareness of need):
Problem Recognition (awareness of need) difference between the desired state and the actual
condition. Deficit in assortment of products. Hunger—Food. Hunger stimulates your need to
eat and can be stimulated by the retailer through product information- a commercial for a new
pair of shoes stimulates your recognition that you need a new pair of shoes.

2) Information search:
✓ Internal search, memory.
✓ External search if you need more information. Friends and relatives. Marketer
dominated sources; comparison shopping; public sources, etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.

Hungry, want to go out and eat, evoked set is:

✓ Chinese food.
✓ Indian food.
✓ Mexican Food.

3) Evaluation of Alternatives:
Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search. May decide that you want to eat something spicy,
Indian gets highest rank etc.

If not satisfied with your choice, then return to the search phase. Can you think of
another restaurant? Look in the yellow pages etc. Information from different sources may be
treated differently. Marketers try to influence by “framing” alternatives.

4) Purchase decision:
Choose buying alternative, includes product, package, store, method of purchase etc.

5) Purchase:
Through the evaluation process discussed above consumers will reach their final purchase
decision and they reach the final process of going through the purchase action e.g. The process
of going to the shop to buy the product, which for some consumers can be as just as rewarding
as actually purchasing the product. Purchase of the product can either be through the store, the
web, or over the phone.

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6) Post-Purchase Evaluation – outcome:
Ever have doubts about the product after you purchased it? This simply is post purchase
behaviour and research shows that it is a common trait amongst purchasers of products.
Manufacturers of products clearly want recent consumers to feel proud of their purchase, it is
therefore just as important for manufacturers to advertise for the sake of their recent purchaser
so consumers feel comfortable that they own a product from a strong and reputable
organization. This limits post purchase behaviour. i.e. You feel reassured that you own the
latest advertised product. Satisfaction or dissatisfaction. Cognitive Dissonance, have you made
the right decision. This can be reduced by warranties, after sales communication etc.

Ex. After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

3.3. Types of Consumer Buying Behaviour

Consumer buying behaviour is determined by:

✓ Level of involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

✓ Buyers level of involvement determines why he/she is motivated to seek information

about a certain products and brands but virtually ignores others.

High involvement purchases:

High priced goods, products visible to others, and the higher the risk the higher the

involvement.

Types of risk:

✓ Personal risk.

✓ Social risk.

✓ Economic risk.

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The four types of consumer buying behaviours are:

➢ Routine Response/Programmed Behaviour:

Buying low involvement frequently purchased low cost items; need very little

search and decision effort; purchased almost automatically. Examples include soft drinks,

snack foods, milk.

➢ Limited Decision Making:

Buying product occasionally. When you need to obtain information about

unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of

time for information gathering. Examples include clothes-know product class but not the

brand.

➢ Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes, computers,

education. Spend a lot of time seeking information and deciding. Information from the

retailers catalogues; friends and relatives, store personnel, etc. Go through all six stages

of the buying process.

➢ Impulse buying, no conscious planning:

The purchase of the same product does not always elicit the same Buying

Behaviour. Product can shift from one category to the next. For example: Going out for

dinner for one person may be extensive decision making (for someone that does not go

out often at all), but limited decision making for someone else. The reason for the

dinner, whether it is an anniversary celebration, or a meal with a couple of friends will

also determine the extent of the decision making.

3.4. Factors influencing the behaviour of buyers

Consumer behaviour is affected by many uncontrollable factors. Just think, what influences
you before you buy a product or service? Your friends, your upbringing, your culture, the
media, a role model or influences from certain groups? The marketer must be aware of these

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factors in order to develop an appropriate MM for its target market. There are several factors
in the background which make a consumer behave in a certain manner. The factors that come
in picture while finding the answers to the what to buy, where to buy, why to buy, when to buy
how to buy, to buy or not to buy questions are the ones which influence the buyer behaviour.
These factors knowingly or unknowingly influence the consumer; they may be in or beyond
control of the buyer. These factors can be classified into:

➢ External (Cultural and Social) and

➢ Internal (Personal and Psychological) factors.

3.4.1. External Factors

1) Cultural factor:

Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group

of people and transmitted to the next generation. Culture is one factor that influences behaviour.

Simply culture is defined as our attitudes and beliefs. But how are these attitudes and beliefs
developed? As an individual growing up, a child is influenced by their parents, brothers, sister

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and other family member who may teach them what is wrong or right. They learn about their

religion and culture, which helps them develop these opinions, attitudes and beliefs (AIO).

These factors will influence their purchase behaviour. Culture determines what is acceptable

with product advertising. Culture also determines what people wear, eat, reside and travel.

Cultural values in the Europe are good health, education, individualism and freedom.

Culture deeply impacts the buying behaviour of an individual and thus marketing

professionals should focus on segmenting their markets based on the cultural needs and wants

of consumers. “Culture represents the mix of norms, financial and moral values, convictions,

attitudes and habits developed in time by mankind, which the members of the society share and

which highly determine their behaviour, including the purchase and consumption behaviour

(Radulescu, 2012).” “The concept of culture has two primary implications for marketing: it

determines the most basic values that influence consumer behaviour patterns, and it can be

used to distinguish subcultures that represent substantial market segments and opportunities

(Andersone, 2008).”

Furthermore, “an individual's consumption behaviour may be viewed and imitated or

rejected by others. It can then become the group's norm of behaviour and be identified as part

of the culture of a given population (Luna, 2001).” “The process of absorbing a culture is called

socialization. It continues throughout one’s life and produces many specific preferences for

products and services, shopping patterns, and interactions with others. Applied to marketing

and consumer behaviour, it is referred to as consumer socialization (Andersone, 2008).” For

example, “the advertisement which motivates a British or American housewife or teenager to

buy a cosmetic or a pair of jeans (to take a concrete example) may not suit the socio cultural

background of an Indian target for the same product (Rudalescu, 2012).”

Cultural Factors includes:

➢ Buyer Cultural- Buyer Cultural Culture refers to the entire way of life of a group of
people from a particular society, place or time. Culture encompasses every aspect of

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 life including the thoughts, behaviour, practices, technology, rituals, norms, language,

believes, ethics, lifestyle, institution, and art of any given group of individuals.

Therefore, individuals differing in cultural background may have different views about

a particular product of service. They may have preference for goods and services which

suite their culture. For example, wearing western outfit on festivals is not accepted in

Indian culture.

➢ Subculture- Every culture consists of several varied subcultures such as, nationalities,

geographic regions, racial groups, religions etc. Subculture can be referred as the group

of people who have common experiences and situations.

➢ Social Class- Every culture has some forms of division based factors like on income,

profession, and education. These divisions can be referred to as social classes; people

from the same social class generally have common interests and behaviour.

2) Social Factors:

People’s social status will also impact their behaviour. What is their role within society?
Are they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being parents
affects your buying habits depending on the age of the children, the type of job may mean you
need to purchase formal clothes, the income which is earned has an impact. The life
Performance of someone who earns £250000 would clearly be different from someone who
earns £25000. Also characters have an influence on buying decision. Whether the person is
extrovert (outgoing and spends on entertainment) or introvert (keeps to themselves and
purchases via online or mail order) again has an impact on the types of purchases made.

“Social factors also impact the buying behaviour of consumers. The important social
factors are: reference groups, family, role and status (Gajjar, 2013).” “Social criteria concern
the impact that the purchase makes on the persons perceived relationships with other people,
and the influence of social norms on the person (Andersone, 2008).” “The importance attached
to children, to education, to health, to husband's status, the type of house in which one lives
and display off consumer durables and other status symbols are indeed all very relevant to

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buyer behaviour of the housewife (Ramachander, 1988).” Therefore, studying the social factors
will improve the marketing effectiveness of firms.

Consumer’s wants, learning, motives, etc. are influenced by opinion leaders, person’s

family, reference groups, social class and culture.

➢ Opinion leaders:

Opinion leaders are those people that you look up to because your respect their

views and judgments and these views may influence consumer decisions. So it maybe

a friend who works with the IT trade who may influence your decision on what

computer to buy. Spokesperson etc. Marketers try to attract opinion leaders…they

actually use (pay) spokespeople to market their products.

➢ Reference Groups

Reference groups are particular groups of people some people may look up

towards to that have an impact on consumer behaviour. So they can be simply a band

like the Spice Girls or your immediate family members. Individual identifies with the

group to the extent that he takes on many of the values, attitudes or behaviours of the

group members, families, friends, and sororities, civic and professional organizations.

Any group that has a positive or negative influence on a person’s attitude and behaviour.

Individuals are knowingly or unknowingly a part of some groups. For example

– female students studying at a particular university are a part of the female student

group in that university.

Membership groups (belong to) affinity marketing is focused on the desires of

consumers that belong to reference groups. Marketers get the groups to approve the

product and communicate that approval to its members. The degree to which a reference

group will affect a purchase decision depends on an individual’s susceptibility to

reference group influence and the strength of his/her involvement with the group.

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➢ Family Preferences

Opinion of family members have great influence on individual or the family’s

purchases. People have many roles. Husband, father, employer/employee. As

individuals’ role is changing, marketers must continue to update information. Family is

the most basic group a person belongs to.

“The habits in terms of consumption are influenced--to a higher or lower

extent--by the family, in relation to its functions--traditional or modern, with a less

significant role, as a consequence of involving other social groups and institutions.”

Marketers must understand:

✓ That many family decisions are made by the family unit.

✓ Consumer behaviour starts in the family unit.

✓ Family roles and preferences are the model for children’s future family (can

reject/alter, etc.).

✓ Family buying decisions are a mixture of family interactions and individual

decision-making.

✓ Family acts as an interpreter of social and cultural values for the individual.

The family life-cycle families go through stages, each stage creates

different consumer demands:

✓ Bachelor stage…

✓ Newly married, young, no children

✓ Full nest I, youngest child under 6

✓ Full nest II, youngest child 6 or over

✓ Full nest III, older married couples with dependent children

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✓ Empty nest I, older married couples with no children living with them, head in labour

force

✓ Empty nest II, older married couples, no children living at home, head retired

✓ Solitary survivor, in labour force

✓ Solitary survivor, retired

✓ Modernized life-cycle includes divorced and no children.

➢ Role and Status

The role individuals perform and the status they have in the group determine

their position in the group. Thus, they are tending to select and use goods that suite their

position.

➢ Social Class:

An open group of individuals who have similar social rank. Social class

influences many aspects of our lives. Upper middle class Indian prefer luxury cars such

as Mercedes.

✓ Upper Indian-upper-upper class, 3%, inherited wealth, aristocratic names.

✓ Lower-upper class, 1 .2%, newer social elite, from current professionals and corporate

elite.

✓ Upper-middle class, 12.5%, college graduates, managers and professionals.

✓ Middle-middle class, 32%, average pay white collar workers and blue collar friends.

✓ Working class, 38%, average pay blue collar workers.

✓ Lower class, 9%, working, not on welfare.

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 ✓ Lower-lower class, 7%, on welfare.

Social class determines to some extent, the types, quality, and quantity of products that a

person buys or uses. Lower class people tend to stay close to home when shopping and they do

not engage in much pre-purchase information gathering.

3.4.2. Internal Factors

1) Personal:

Buyer’s purchasing process is influences by his/her personal factors, and these personal factors

are unique for every individual. “The decisions of a buyer/consumer are also influenced by

personal characteristics, especially by age and the stage of the life cycle that the consumer

crosses, sex, occupation, financial status, lifestyle, personality and opinion of self (Radulescu,

2012).” “Demographic factors play an important role in the consumer purchase process.

Income, age, occupation, and a myriad of other demographics can influence decision making

at every step in the process (Andersone, 2008).” For example, “in the family, women are those

who influence the consumption decision especially for children and old people (Radulescu,

2012).”

➢ Age

Obviously the individual’s needs depend on his age. Wants and preferences

change as the person’s age change. At every stage in a human’s life the needs and

desires are different. For example - A 70yrs diabetic patient will not regularly buy high

calories and high sugar chocolates, whereas a 10 year old boy would like to buy

chocolates very often.

➢ Education

The educational level or educational field also determines the behaviour of the

consumers. Generally, an educated person tends to make wise decisions as compared

to an uneducated person. It is because they differ in the ability of collecting,

processing and analysing information. Educational field also has an impact on the

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 buying behaviour of the consumers. For example, doctors may incline more towards

healthy food as they are aware about the advantageous of it.

➢ Personality:

Personality is not just the appearance of a person but personality is also that

characteristic of individuals which determine how they behave in situations and interact

with others. A persons personality impacts his/ her buying behaviour, the incline towards

products which suite their personality. However, it is difficult to identify the association

between the individual personality and the pattern of exhibited behaviour. All the internal

traits and behaviours that make a person unique, uniqueness arrives from a person’s

heredity and personal experience.

Examples include:

✓ Work holism.

✓ Compulsiveness.

✓ Self-confidence.

✓ Friendliness.

✓ Adaptability.

✓ Ambitiousness.

✓ Dogmatism.

✓ Introversion and Extroversion.

✓ Aggressiveness.

✓ Competitiveness.

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 Traits affect the way people behave. Marketers try to match the store image to the

perceived image of their customers. There is a weak association between personality and

buying behaviour; this may be due to unreliable measures.

➢ Profession

The occupation of an individual impacts his buying decision. Individuals

select items which suite their profession and/or are required for them in their

professional life. For example, a project manager may purchase more issues of the

‘PM Network’ magazine as compared to general public.

➢ Income

Obviously, everyone thinks about their income and expenditure before

spending. Therefore, the economic condition of individuals influence what price range

product they buy. Consumers always hunt for economic deals; however, if the

economic condition of the buyer is very good he/she may buy premium products.

➢ Lifestyles:

Lifestyle is the way one lives and connects with others. “Lifestyle describes a

person’s pattern of living as expressed in activities, interests, and opinions. Lifestyle traits

are more concrete than personality traits and more directly linked to the acquisition, use,

and disposition of goods and services. Recent US trends in lifestyles are a shift towards

personal independence and individualism and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.

2) Personal:

Individual’s perception, motivation, learning, beliefs and attitudes are the main psychological

factors that affect the consumer buying behaviour. The value of a product or service for any

individual depends on how he perceives it, what attitude he/she has toward it, what he believes

about it and what motivates his purchase. “When analysing the process by which consumers
make purchase decisions, marketers should under-stand such psychological factors as

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motivation, perception, learning, personality, and attitudes because they help explain the why

of consumer behaviour (Andersone, 2008).” “Consumers’ skills and knowledge are connected

to learning and pre-destinate changes of behaviour. Therefore to cause changes of consumer

behaviour concerning the concrete product, it is necessary to give the adequate information.

Knowledge and positive or negative feelings influence humans’ perception and consequently

decision making and behaviour.”

➢ Perception:

What do you see? Perception is the process of selecting, organizing and interpreting

information inputs to produce meaning. It is the process by which one finds, analyses, and

concludes the inner and outer information for its exploitation. Two individuals exposed to

exactly same marketing communication may have different perception of the same product.

“At the same time, elders prefer hospitalization rather than ambulatory treatment as a

consequence of the perception that they are better cared after in the hospital, while younger

people prefer ambulatory treatment and investigations.”

➢ Motives:

A motive is an internal energizing force that orients a person’s activities towards

satisfying a need or achieving a goal. Actions are affected by a set of motives, not just one.

If marketers can identify motives than they can better develop a marketing mix. MASLOW

hierarchy of needs!

✓ Physiological.

✓ Safety.

✓ Love and belonging.

✓ Esteem.

✓ Self-actualization.

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 Need to determine what level of the hierarchy the consumers are at to determine

what motivates their purchases.

➢ Learning

Individuals learn from their past experience, current observations and

interaction with others. Then they make use of their learning while making any

buying decisions. They collect information from several sources and utilize it while

making any decision.

➢ Beliefs and Attitudes:

Beliefs are the feelings and thoughts that one strongly believes to be true about

something. Attitudes are the individual positive or negative evaluations regarding

something. Purchasers tend to have certain beliefs and attitudes towards different products.

These beliefs and attitudes form the brand image of the product and thus impact the final

decision of the purchaser. That is why marketers are concerned about the beliefs and

attitudes the customers have about the product, service or idea. Marketers attempt to alter

the beliefs and attitudes of consumers by aggressive marketing campaigns.

Knowledge and positive and negative feelings about an object or activity—may be

tangible or intangible, living or non-living—drive perceptions. Individual learns attitudes

through experience and interaction with other people. Consumer attitudes toward a firm

and its products greatly influence the success or failure of the firm’s marketing strategy.

3.5. MARKETING:

Marketing is the process associated with promoting for sale goods or services. It is considered
a social and managerial process by which individuals and groups obtain what they need and
want through creating and exchanging products and values with others. It is an integrated
process through which companies create value for customers and build strong customer
relationships in marketing is used to create the customer, to keep the customer and to satisfy
the customer. With the customer as the focus of its activities.

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 Marketing management is important in all businesses. It is the highly specialised study
of business management, business administration or just management today, marketing
management function plays a very critical role. This is because this functional area of
management earns the revenue, & works in the close proximity with the public or persons
outside the organisation. Controlling these two attributes to have the desired benefits are the
most difficult part of the management, because none of these two are within the direct control
of the marketers. This doesn’t mean that the other functional areas are not useful, but they are
not directly involved in the activities mentioned above. Similarly, within the study of
Marketing Management, the Consumers or the Customers play a very critical role as these are
the people who finally buy the goods & services of the organisation, and the firm is always on
the move to make them buy so as to earn revenue. It’s crucial from both the points of view as
given below:

1) From the Customers’ Point Of View:

Customers today are in a tough spot. Today, in the highly developed & technologically
advanced society, the customers have a great deal of choices & options (and often very close
& competing) to decide on. They have the products of an extreme range of attributes:

➢ (the 1st P - Product), they have a wide range of cost and payment choices (
➢ the 2nd P - Price), they can order them to be supplied to their door step or anywhere else
➢ (the 3rd P - Place), and
➢ finally they are bombarded with more communications from more channels than
ever before (the 4th P - Promotion).

How can they possibly decide where to spend their time and money, and where they should
give their loyalty?

2) From the Marketers’ Point Of View:

The purpose of marketing is to sell more stuff to more people more often for more money in
order to make more profit. This is the basic principle of requirement for the marketers in earlier
days where aggressive selling was the aim. Now it can’t be achieved by force, aggression or
plain alluring. For the customers are today more informed, more knowledgeable, more
demanding, more discerning. And above all there is no dearth of marketers to buy from. The
marketers have to earn them or win them over. Marketing management, according to the
marketing guru Phillip Kotler, a human need is defined as a state of felt deprivation. A human
want on the other hand is a need shaped by the individual’s culture and society. Understanding

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what consumers need and how these needs can be made into wants is what effective marketing
is all about. For instance a customer need may be thirst, and any drink such as a bottle of water
could satisfy this need.

However at the point of purchase effective marketing determines what the customer
will want to purchase in order to quench their thirst. For example a good advertisement for
coke could steer the customer away from the bottled water section and towards the fizzy drinks.
On the other hand an effective ad for ice lollies, an indirect competitor, could steer the
consumer away from the fizzy drinks. Therefore the more effective the marketing, the
easier it will be to get the cash out of the customers hand. It is then obvious that Marketing
is all about understanding consumer needs and steering the customer toward Your product
by creating certain wants in the minds of the customer. To do this marketers should be
aware of the consumer buying behaviour process.

3.6. The Consumer Decision Making Process

The buying decision comes as a product of the complex interaction of the external
factors and the personal attributes. The inner most circle denotes the consumer decision making
process regarding products & services, whose major steps are : Problem Recognition,
Information Search, Evaluation of Application, Purchase Decision, Post-Purchase behaviour.
Once we are aware about the factors which directly or indirectly influence the shopping
behaviour of any consumer then it is better to know about marketing and its related activities.

29
1) Buyer Recognition: The consumer has to realize there is a problem or need that needs to
be fulfilled. The effective marketer will identify there is a difference between the actual state
of the consumer and the desired state, and try to fulfil this state of deprivation.

2) Information Search: In this stage the buyer considers all the alternatives present.
For instance, according to the example above, the customer would look at all thirst quenchers
such as fizzy drinks, bottled water, juices and ice lollies. The most information a customer
gains about alternatives is through commercial sources, such as advertisements and campaigns.
However information about intangible products in the service industry would mostly come
from personal experience or experience from others.

3) Evaluation Of Alternatives: This is where all the information is gathered and evaluated to

help make the purchasing decision. These three stages are important, for marketers to
understand consumer behaviour and what influences purchasing of a certain product category
and brand.

4) Purchase Decision: This is the stage where purchasing of the most preferred alternative
takes place. However the product category, brand, reseller, timing and quantity all play a role
in the purchase decision.

5) Post Purchase Decision: Good marketers maintain a good relationship with the customer
even after the purchase has been made. This is to reduce any chance of cognitive dissonance
that the customer may experience with the product. To reduce the negative effects of
customer cognitive dissonance, good after sales services could be provided along with
effective advertising. This will attract more customers via word of mouth and generate repeat
purchases. To be cost effective marketers should remember to target the potential
customers of the company's marketing mix. There is no point in wasting time targeting
those who will never purchase your product. Therefore effective market segmentation is
extremely crucial.

Market segmenting involves dividing the market into groups that share similar needs and
wants. This can be done through market segmenting variables such as, geographic,
demographic, psycho-graphic and behavioural groups. For instance the main market segment,

30
based on these main variables, for a fizzy drink such as coke would be those mainly in dry
and hot climate regions, within the age group 12 to 21, those who are relatively social and can
afford a drink such as coke, and those who are aware a drink such as coke exists and are aware
of its image around the world. The buying behaviour of consumers and identifying the
segments to which they belong are two critical elements for effective and efficient marketing.

Marketing management is one of the major components of business management. The

evolution of marketing was caused due to mature markets and overcapacities in the last
decades.

Companies then shifted the focus from order to capture value from customers in return
and to stay profitable. The term marketing concept holds that achieving organisational goals
depends on knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an organization
should anticipate the needs and wants of consumers and satisfy these more effectively than
competitors.

31
3.7. Consumer Research Methods

Market research is often needed to ensure that we produce what customers really want and not
what we think they want. There are two main approaches to marketing.

1) Primary Research: is research that you design and conduct yourself. For example, you
may need to find out whether consumers would prefer that your soft drinks be sweeter or
tarter. Research will often help us reduce risks associated with a new product, but it cannot take
the risk away entirely. It is also important to ascertain whether the research has been complete.
For example, Coca Cola did a great deal of research prior to releasing the New Coke, and
consumers seemed to prefer the taste. However, consumers were not prepared to have this
drink replace traditional Coke.

2) Secondary Research: involves using information that others have already put together.
For example, if you are thinking about starting a business making clothes for tall people, you
don’t need to question people about how tall they are to find out how many tall people exist—
that information has already been published by the U.S.

3.8. Hero Honda Motor Ltd Company Profile

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer
of two - wheelers, based in India. In 2001, the company achieved the coveted position of being
the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-
wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd.
continues to maintain this position till date. Today, every second motorcycle sold in the country
is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling
motorcycle – Splendor.

Vision

The Hero Honda story began with a simple vision – the vision of a mobile and an empowered
India, powered by Hero Honda. This vision was driven by Hero Honda‟s commitment to
customer, quality and excellence, and while doing so, maintaining the highest standards of
ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream
into a reality is by remaining focused on that vision.

32
Strategy

Hero Honda‟s key strategy has been driven by innovation in every sphere of activity – building
a robust product portfolio across categories, exploring new markets, aggressively expanding
the network and continuing to invest in brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latest manufacturing plant is based at 13 Haridwar,
in the hill state of Uttrakhand.

Technology

In the 1980‟s Hero Honda pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer.
It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles,
with the launch of the Glamour FI in June 2006. Products Hero Honda's product range includes
variety of motorcycles that have set the industry standards across all the market segments. The
company also started manufacturing scooter in 2006. Hero Honda offers large no. of products
and caters to wide variety of requirements across all the segments.

Distribution

The company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero Honda's extensive sales and
service network now spans close to 4500 customer touch points. These comprise a mix of
authorized dealerships, Service & Spare Parts outlets, and dealer appointed outlets across the
country.

Brand

The company has been continuously investing in brand building utilizing not only the new
product launch and new campaign launch opportunities but also through innovative marketing
initiatives revolving around cricket, entertainment and ground- level activation. Hero Honda
has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was
the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during
Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010.

33
2010-11 Performance

✓ Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

✓ Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
✓ Net profit after tax at Rs. 1927.90 Crores
✓ Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per
share on face value of each share of Rs. 2 each
✓ EBIDTA margin for the year 13.49 per cent
✓ EPS of Rs. 96.54

2009-10 Performance

✓ Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

✓ Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
✓ Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
✓ Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
✓ EBIDTA margin for the year 17.4 per cent
✓ EPS of Rs. 111.77, growth of 74.1 per cent

HERO HONDA'S MISSION

Hero Honda‟s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities. This mission is what drives Hero Honda to new heights in excellence
and helps the organization forge a unique and mutually beneficial relationship with all its stake
holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Honda Motor Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status.

34
KEY MILESTONES OF HERO HONDA

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984 Hero Honda Motors Ltd. Incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle
produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle

produced

1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing
plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced Environment Management System

of Dharuhera Plant certified with ISO-14001 by DNV Holland Raman Munjal
Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced Environment Management System of

Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World
No. 1' - largest selling single two-wheeler model "Hero Honda Passport
Programme" - CRM Programme launched

35
2001 New motorcycle model - "Passion" introduced One million production in one
single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle
produced

2002 New motorcycle model - "Dawn" introduced New motorcycle model -

"Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj
Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar
year in a row(2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced New motorcycle model -

"Passion Plus" introduced.

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the
World No. 1 Company for the third consecutive year. Crossed sales of over 2
million units in a single year, a global record. Splendor - World's largest selling
motorcycle crossed the 5 million mark New motorcycle model - "CBZ*"
introduced Joint Technical Agreement renewed Total sales crossed a record of
10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced New motorcycle model -

"Achiever" introduced First Scooter model from Hero Honda - "Pleasure"
introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production
milestone achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row

36
 New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus'
launched

New motorcycle model 'Hunk' launched 20 million production milestone

achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched 25 million production milestone achieved CD

Deluxe lauched with power start feature

New 'Glamour' launched

KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to provide a high quality
service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise
respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the economic
concerns and the environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our
wealth." A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental performance

on a continual basis, as an intrinsic element of our corporate philosophy. To achieve this we
commit ourselves to:

✓ Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals, where
viable and strengthen the greening of supply chain.

37
 ✓ Continue product innovations to improve environmental compatibility. • Comply with
all applicable environmental legislation and also controlling our environmental
discharges through the principles of "alara" (as low as reasonably achievable).
✓ Institutionalise resource conservation, in particular, in the areas of oil, water, electrical
energy, paints and chemicals.
✓ Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy. We are committed at all
levels to achieve high quality in whatever we do, particularly in our products and services
which will meet and exceed customer's growing aspirations through:

✓ Innovation in products, processes and services.

✓ Continuous improvement in our total quality management systems.
✓ Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may be
affected by its operations. We believe that the safe work practices lead to better business
performance, motivated workforce and higher productivity. We shall create a safety culture in
the organization by:

✓ Integrating safety and health matters in all our activities.

✓ Ensuring compliance with all applicable legislative requirements.
✓ Empowering employees to ensure safety in their respective work places.
✓ Promoting safety and health awareness amongst employees, suppliers and contractors.
✓ Continuous improvements in safety performance through precautions besides
participation and training of employees.

3.9. PHOENIX DEALER PROFILE (PHOENIX MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS PVT
LTD. is established on 21st march 2003. The business is running by only one man. The owner
name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

38
 Generally the sale will be either on cash basis or on institutional basis. Bank like ICICI,
HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings and field staff. They are
upgrading sales by introducing the schemes, group bookings, institutional sales and customer
door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are allotted for field staff, 5
members are recruited for sales for persons, 5 persons are placed for evaluating for spare parts,
5 members are allotted for managerial accounts and another 3 persons for cash transaction and
other members are allotted for remaining work.

Customer relationship: They entertain the showroom providing a customer‟s huge having
pool game, internet facility and television with home there system. They provide bile
maintenance programs on every week. According to other dealers PHOENIX motors in first in
sales and best in service. They treat customer, is the very important person at PHOENIX motors
customer satisfaction is their motto, why because, they will satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees also. At
PHOENIX motors the customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS: Average they are selling 25 vehicles per
day. It is a QLAD (qualify leader through quality dealer). At PHOENIX motor they gave the
quality service to the 27 customers why because „the cost is long forgotten but the quality is
remembered for ever”. They treat quality has a...

Q Quest for excellence

U Understanding customer‟s needs

A Action to achieve customer‟s appreciation.

L Leadership determined to be a leader

I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

39
WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly handled by
the respective original manufactures (OEM‟s) except AMCO for batteries and Dunlop and
Falcon tires and Tubes. In case of any defect in proprietary items, other than the above two
mentioned OEM‟S the dealers must approach the Brach office dealer of the respective
manufacture. For AMCO batteries and Dunlop and falcon tires, tubes claims will be accepted
at our authorized dealerships per the mutually agreed terms and conditions between HERO
HONDA and of these two OEM‟s in case the claim is not accepted for invalid reasons. Then
the claim along with the refusal note form the OEM can be sent to the warranty section at
gorgon plan after due to recommendation of the area service engineer. If any other six services
or subsequent paid services is not availed as per the recommended schedule given in the
owner‟s manual. If HERO HONDA recommended engine oil is not used. To normal wear &
tear components like bulbs, electric wiring, filters, spark plug, clutch plates, braded shoes,
fasteners, shim washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic
components, chain$ sprockets and in case of wheel rim misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones
recommended by HERO HONDA. If the motor has been used in any competitive events like
tracking races or rallies. If there is any damage to the painted surface due to industrial pollution
or other extraneous factors. For clams made for any consequential damage due to any previous
malfunction. For normal phenomenon like noise, vibration, oil seepage, which do not affect
the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the phoenix
motors organized a BLOOD DONATION CAMP for the trust on 21st January 2006.they
motivated on the consumers to participated in this camp and also provide certificate for the
customers

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

40
41
42
43
44
CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool game,
Internet facility and television with home theatre system. They provide bike maintenance
programs on every week. According to other dealers PHOENIX motors in first in sales and
best in service. They treat customer, is the very important person at PHOENIX motors
customer satisfaction is their motto, why because, the well satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees also. At
PHONIX motors the customer is the boss.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors organize a
BLOOD DONATION CAMP for the trust in every year. They motivated on the customers to
participated in this camp and also provide Certificate for the customers.

3.10. Applications of Consumer Behaviour

1) Marketing Strategy: It is for making better marketing campaigns. For example, by

understanding that consumers are more receptive to food advertising when they are hungry, we
learn to schedule snack advertisements late in the afternoon. By understanding that new
products are usually initially adopted by a few consumers and only spread later, and then only
gradually, to the rest of the population, we learn that companies that introduce new products
must be well financed so that they can stay afloat until their products become a commercial
success and it is important to please initial customers, since they will in turn influence
many subsequent customers’ brand choices.

2) Public Policy: In the 1980s, Accutane, a near miracle cure for acne, was introduced.
Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although
physicians were instructed to warn their female patients of this, a number still became pregnant
while taking the drug. To get consumers’ attention, the Federal Drug Administration (FDA)
took the step of requiring that very graphic pictures of deformed babies be shown on the
medicine containers.

3) Social Marketing: It involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers
for Disease Control trying to reduce the incidence of transmission of diseases through illegal

45
drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This,
however, was deemed to be infeasible. It was also determined that the practice of sharing
needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of
consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles
in bleach before sharing them, a goal that was believed to be more realistic.

4) Studying Consumer Behavior: Make Us Better Consumers: Common sense suggests, for

example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per
ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a
size premium by buying the larger quantity. In other words, in this case, knowing this
fact will sensitize you to the need to check the unit cost labels to determine if you are really
getting a bargain.

46
Case study

47
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CASE STUDY

1. Scrivens (2007), has studied the role of social marketing in influencing consumer
behavior commercial marketers have turned their attention to the social welfare sector
and are considering ways in which marketing techniques can be used to promote service
use, improvements in life-style, and changing public attitudes. This paper examines the
concept of what is termed "social marketing", and looks at the difficulties it faces, and
finally discusses the need for social policy analysts to become more aware of the uses
of and the issues relating to the increased use of social marketing by governments.

2. Gordon , Castro, James, Victoria , Yani-De-Soriano, Sigurdsson, and Valdimar (2006),

examined the consumer behaviour analysis and social marketing: The case of
environmental conservation Consumer behaviour analysis represents one development
within the behaviour-analytic tradition of interpreting complex behaviour, in which a
specific conceptual framework has been proposed (i.e., the Behavioural Perspective
Model). According to this model, consumer behaviour occurs at the intersection of a
consumer-behaviour setting and an individual's learning history of consumption
and is a function of utilitarian (mediated by the product) and informational
(mediated by other persons) consequences. This application pointed to specific
marketing strategies that should be adopted to modify each of these operant classes.

3. Kapoor and Kulshrestha (2004), studied the effect of perception on Indian urban
female consumer buying behaviour introduction products convey different meanings to
different people, consumers form differing attachments to them. The study was
conducted with an objective to address the role of the fashion involvement of affluent
female consumers and their apparel purchase behaviour, retailers and marketers will
be able to accurately target this market segment. Additionally, the research will
broaden our understanding of consumer behaviour. It can thus definitely contribute
to larger studies concerned with the enhancement of the domestic market for exotic
apparel and accessories.

4. Shahina (2004), has studied a cross-cultural comparative study of female consumer

behaviour with regards to the purchase of cosmetics by females in the UK and
Bangladesh. Understanding consumer behaviour in a cross-cultural environment is an

48
 essential part of marketing activities in a world that is becoming more consumer-
centric. This paper attempts to explain how consumer behaviour is influenced by
cultural factors in Bangladesh. It is conceptual in nature and attempts to uncover the
key facets of culture involved in shaping decisions on cosmetics purchase by female
consumers in the Bangladeshi cross-cultural environment.

5. Dennis, Merrilees , Chanaka and Tiuwright (2007), have asserted the e-consumer
behaviour purpose – the primary purpose of this article is to bring together apparently
disparate and yet interconnected strands of research and present an integrated model
of e-consumer behaviour. It has a secondary objective of stimulating more research
in areas identified as still being underexplored.

6. Newman & Chansarkar (2006), examined the consumer behaviour of luxury

Aautomobiles: A comparative study between Thai and UK Customers’ Perceptions :
The luxury car market overall is currently undertaking a social change with luxury
brands seeming less remote, less different, and less exclusive with the quality of life
improving. As a result, increasing competition between makes has intensified the
importance of brand identity. As product standards continue to rise, the perceived image
of a car make plays a key role in the buying decision. The premium marques such as
BMW, Lexus, and Mercedes-Benz must develop attributes and values that reflect
changing social values which influence buyers emotionally.

7. Harris (2009), studied the survey of GB online consumer behaviour: The 3rd annual
survey of online consumer behaviour, highlights the importance of online customer
experience. The survey sheds light on forces driving this accelerated online
customer experience focus, including increased consumer power due to experience-
sharing via social media. It also examines consumer behaviour when transacting
online, call centre behaviour related to online issues and mobile commerce. Verticals
represented in the findings include retail, insurance, travel and financial services.

8. Andersson , Arvidsson and Lindstrom (2006), have examined the Coca-Cola or

Pepsi; that is the question – A study about different factors affecting consumer
preferences: The overall purpose of this paper is to gain a deeper understanding of
different international and local factors affecting consumer preferences on a local

49
 market. International advertising and international sponsorship respectively influence
the local target group in different ways, but they also affect international brand.

9. Ali , Tirmizi and Saif (2006), studied an empirical study of consumer impulse buying
behavior in local markets: The major findings of the study demonstrated an overall
weak association of the set of independent variables with the dependent variable but,
the in-depth analysis found that pre-decision stage of consumer purchase behaviour is
the only variable that resulted into strong impulse buying behaviour.

10. Magid (2008),asserted the study reveals consumer behaviour and preferences in
online video: This research is part of the Magid Media Futures TM Practice,
which surveys consumers annually to identify trends and help clients implement
product and marketing strategies. Video is an emerging entertainment genre – distinct
from online TV – that consistently proves popular with people of widely varying
backgrounds and tastes, as demonstrated “Online TV, or traditional networks
distributing their shows on the Internet, is really just the same long-form programs,
with the same audience, supported by the same advertisements – only the delivery
platform is different.

11. Munich (2008), has studied a new study on German consumer behavior: The study's
findings indicate a long-term shift in consumer behavior rather than a short-term
trend. In some traditionally firmly brand-based sectors – women's cosmetics,
automobiles or soft drinks, for example – consumer preferences show a complete
turnabout. In the past, it was the brand that clinched the deal; nowadays, more often
than not, it's price. But that doesn't mean that brands have had their day and products
will only be sold on the basis of price in future.

50
SURVEY

51
 Survey

A short survey was conducted on consumer buying behaviour (motor bike) whose results are
represented as follows:

1. Do you want to own a bike?

2. What type of bike you want to own?

52
3. Which brand of bike you would chose to buy?

4. From where did you get the information about the BIKE.

53
5. How well satisfied you are with Hero MotoCorp Ltd Bike?

6. Which of the brands according to you has PICKUP as their main motive?

54
7. Which of the brands according to you has MILEAGE as their main motive?

8. Which of the brands according to you has PRICE as their main motive?

55
DISCUSSION

56
 DISCUSSION

Present study concludes as what are the factors related to consumer’s behaviour which
play significant role in marketing management. The various researches which are discussed
above give us result that to all business institution should not take consumer behaviour in a
light way. From a survey conducted, it is shown that in today’s life most of the people wants
to own a bike with 150 CC. it is also shown that HONDA is the competitor with HERO MOTO
CORP LTD on the basis of price, pickup, mileage and other performance. However on all the
basis, Hero is the most chosen bike.

All marketing management team must give importance to consumer behaviour and its
related research for their better marketing strategy and to be successful in theirs management.
There are several units in the market that can be analysed. Our main thrust in this paper is the
consumer. However, we will also need to analyse our own firm’s strengths and weaknesses
and those of competing firms. Suppose, for example, that we make a product aimed at older
consumers, a growing segment. A competing firm that targets babies, a shrinking market, is
likely to consider repositioning toward our market. To assess a competing firm’s potential
threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness
of its brands) against pressures it faces from the market. Finally, we need to assess
conditions (the marketing environment). For example, although we may have developed a
product that offers great appeal for consumers, a recession may cut demand dramatically.
Consumers are faced with purchase decisions nearly every day. But not all decisions
are treated the same. Some decisions are more complex than others and thus require more effort
by the consumer. For marketers it is important to understand how consumers treat the purchase
decisions they face. If a company is targeting customers who feel a purchase decision is
difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company
targeting customers who view the purchase decision as routine. In fact, the same company may
face both situations at the same time; for some the product is new, while other customers see
the purchase as routine. The implication of buying behaviour for marketers is that different
buying situations require different marketing efforts.

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RECOMMENDATION

58
 Recommendation

1. Consumer behaviour refers to all the thought, feelings and actions that an individual
has or takes before or while buying any product, service or idea. Buyer behaviour is the
concept which answers what, why, how, when, and where an individual makes
purchase. This research has sufficient evidence to prove that the consumer’s buyer
behaviour is significantly influenced by the consumer’s internal and external factors.
The main factors that have immense impact on the buying process and final decision of
consumers are cultural, social, personal, and physiological.
2. The Cultural background of the consumer plays a key role in the decision making of
consumers. People from different culture have different opinions about the same
product; as a result, marketers should focus on segmenting their markets based on the
cultural needs and wants of consumers. It is very imperative that organizations
understand the importance of culture in the buyer’s life. They should try to understand
aspects of every culture that they wish to target.
3. Additionally, the social factors also have considerable impact on the buyer behaviour
as every individual is concerned about how other people from his/her society see
him/her. His/her status in the society and people’s views about him/her matter a lot to
him/her. And therefore, the social factors also impact the way the act and behave,
leading to an impact on their purchasing decisions. It is vital that marketing
professionals study the personal factors and figure out suitable marketing plans.
Subsequently it is vital that organizations examine such social factors that influence the
buyer’s behaviour to implement effective marketing strategies.
4. Moreover, the personal factors are unique to every individual; they drive the behaviour
of individuals. The personal characteristics of individuals have significant impact on
what their needs are, what they select, what they like and consider being valuable.
Consequently, these personal factors govern their purchase behaviour. It is very
necessary that marketing professionals study the personal factors and figure out suitable
marketing plans.
5. Furthermore, the psychology of human beings is the partial ruler of their behaviour and
personality. The psychological factors have substantial impact on the buyer behaviour.
The purchase decision is the reflection of an individual’s inner feelings and thoughts.

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 The study of psychological affecting consumer buying behaviour will help marketers
to launch smarter marketing plans.
6. These main external and internal factors have several sub factors which influence the
buyer behaviour. The chief sub factors identified from this research are Buyer Cultural,
Subculture, Social Class, Reference Groups, Family, Role and Status, Age, Education,
Profession, Income, Personality, Lifestyle, Perception, Motivation, Learning, and
Beliefs and Attitudes. Thus, it is recommended that marketers should evaluate the
factors that influence the ‘to buy or not to buy decision’ of the consumers. Consumers
are influenced by the internal and external factors knowingly or unknowingly. For this
reason, even after identifying all the impacting factors, the consumer’s behaviour is
very complex to predict.
7. Furthermore, it is very complicated to know the degree to which a specific factor
influences the decision making of consumers. As a consequence, it ends up being very
difficult to predict the exact behaviour even after taking into consideration all the
factors. Hence, marketers should undergo a detail analysis of all these factors for
specific target customer, for a specific product or service, and in a particular
environment, while implementing marketing strategies. Certainly, deeply
understanding the factors will lend a hand in developing better marketing strategies to
create demand and increase the sales of the organization’s products and services. It will
also aid in forecasting the future demand of the product.
8. The most important recommendation towards the marketing literature is that, the
buying behaviour should not be studied and considered only while selling the products;
rather, it should be taken into consideration in the very initial stage.

My recommendation is that organizations should identify and consider the

factors that affect the buying behaviour while developing new products. There is a lot
of cost, time and efforts involved in developing and rolling out a new product;
unfortunately, a number of new products do not succeed when they are launched in the
market. If organizations include the buyer behaviour study in their new product
development stage, they will be able to develop a product that might have a higher
probability of success.

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CONCLUSION

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 CONCLUSION

The study of consumer behaviour is very important in the marketing field as it forms
the basis of marketing strategies. The study of consumer buying behaviour facilitates to
comprehend the concern such as what the buyers think, what their feelings are, what the reasons
behind their decision are, and how they pick among several options. The external and internal
factors have significant influence on consumer’s behaviour which impacts their purchasing
process and decision. Having an insight into these factors enables marketers to better know and
predict not only the demand of their product or service, but also the purchasing motives and
purchasing frequency of the product or service. More importantly, if these factors are
considered whilst developing new products, it will support in developing products with higher
probability of success. However, consumer behaviour is very difficult to predict; therefore,
further study is suggested to closely understand the degree to which these factors impact the
consumer’s buying behaviour, as getting an insight into this will help organizations to create
more suitable products and marketing professionals to build more effective marketing
strategies.

Studying consumer behaviour is important because this way marketers can understand
what influences consumers’ buying decisions. By understanding how consumers decide on a
product they can fill in the gap in the market and identify the products that are needed and the
products that are obsolete. Studying consumer behaviour also helps marketers decide how to
present their products in a way that generates maximum impact on consumers. Understanding
consumer buying behaviour is the key secret to reaching and engaging your clients, and convert
them to purchase from you.

A consumer behaviour analysis should reveal:

➢ What consumers think and how they feel about various alternatives (brands, products,
etc.);

➢ What influences consumers to choose between various options;

➢ Consumers’ behaviour while researching and shopping;

➢ How consumers’ environment (friends, family, media, etc.) influences their behaviour.

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➢ https://www.coursehero.com/file/6300144/Consumer-Behavior-1/
➢ http://www.yourarticlelibrary.com/consumer-behaviour/consumer-buying-behaviour-
meaning-process-and-types/87244
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➢ WWW.HERO HONDA.COM
➢ WWW.GOOGELFINANCE.COM
➢ WWW.INDUSTRYSINDIA.COM

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