Beruflich Dokumente
Kultur Dokumente
All of us are consumers. We consume things of daily use, We also consume and
buy these products according to our needs, preferences and buying power.
These can be consumable goods, durable goods, speciality goods or, industrial
goods. What we buy, how we buy, where and when we buy, in how much
quantity we buy depends on our perception, self concept, social and cultural
background and our age and family cycle, our attitudes, beliefs values,
motivation, personality, social class and many other factors that are both
internal and external to us. While buying, we also consider whether to buy or
not to buy and, from which source or seller to buy. In some societies there is a
lot of affluence and, these societies can afford to buy in greater quantities and
at shorter intervals. In poor societies, the consumer can barely meet his barest
needs. The marketers therefore tries to understand the needs of different
consumers and having understood his different behaviours which require an in-
depth study of their internal and external environment, they formulate their
plans for marketing.
Definition:
This definition clearly brings out that it is not just the buying of
goods/services that receives attention in consumer behaviour but, the process
starts much before the goods have been acquired or bought. A process of
buying starts in the minds of the consumer, which leads to the finding of
alternatives between products that can be acquired with their relative
advantages and disadvantages. This leads to internal and external research.
Then follows a process of decision-making for purchase and using the goods,
and then the post purchase behaviour which is also very important, because it
gives a clue to the marketers whether his product has been a success or not.
MEANING
Consumer behaviour is the study of when, why, how, and where people do or
do not buy product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision
making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general.
Behavior occurs either for the individual, or in the context of a group (e.g.,
friends influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should use).
Customer behaviour study is based on consumer buying behaviour, with the
customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behaviour analysis as it has a
keen interest in the re-discovery of the true meaning of marketing through the
re-affirmation of the importance of the customer or buyer. A greater importance
is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or how
we can encourage increased consumption. Since many environmental problems
result from product disposal (e.g., motor oil being sent into sewage systems to
save the recycling fee, or garbage piling up at landfills) this is also an area of
interest.
Factors influencing consumer behavior:-
Consumer purchases are influenced strongly by or there are four factors. They
are:-
• Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii)
Social Class
○ Culture:-
The set of basic values perceptions, wants, and behaviours
learned by a member of society from family and other
important institutions. Culture is the most basic cause of a
person’s wants and behaviour. Every group or society has a
culture, and cultural influences on buying behaviour may vary
greatly from country to country.
○ Sub Culture :-
A group of people with shared value systems based on
common life experiences and situations.
Each culture contains smaller sub cultures a group of people
with shared value system based on common life experiences
and situations. Sub culture includes nationalities, religions,
racial group and geographic regions. Many sub culture make
up important market segments and marketers often design
products.
○ Social Class:-
Almost every society has some form of social structure, social
classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests and
behaviour.
02. Social Factors :-
• It includes
• i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life
Style (v) Personality and self concept.
○ Age and Life cycle Stage:-
People changes the goods and services they buy over their
lifetimes. Tastes in food, clothes, furniture, and recreation are
often age related. Buying is also shaped by the stage of the
family life cycle.
○ Occupation :-
A person’s occupation affects the goods and services bought.
Blue collar workers tend to buy more rugged work clothes,
whereas white-collar workers buy more business suits. A Co.
can even specialize in making products needed by a given
occupational group. Thus, computer software companies will
design different products for brand managers, accountants,
engineers, lawyers, and doctors.
○ Economic situation :-
A person’s economic situation will affect product choice
○ Life Style :-
Life Style is a person’s Pattern of living, understanding these
forces involves measuring consumer’s major AIO dimensions.
i.e. activities (Work, hobbies, shopping, support etc) interest
(Food, fashion, family recreation) and opinions (about
themselves, Business, Products)
○ Personality and Self concept :-
Each person’s distinct personality influence his or her buying
behaviour. Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting
responses to one’s own environment.
04. Psychological Factors :-
• Perception :-
○ The process by which people select, Organize, and interpret
information to form a meaningful picture of the world.
• Learning:-
○ Changes in an individuals behaviour arising from experience.
• Beliefs and attitudes :-
○ Belief is a descriptive thought that a person holds about something
○ Attitude, a Person’s consistently favourable or unfavourable
evaluations, feelings, and tendencies towards an object or idea
Sometimes consumer is involved with the product category but may not be
necessarily involved with the particular brand or vice versa. For example, house
wives know more about kitchen ware but may not know the details of various
brands. According to the consumer involvement in either product or particular
brand, consumer types can be divided into four categories as described below.
Brand Loyals: These consumers are highly involved with both the product
category and with particular brand. For example, cigarette smokers and paper
readers fall in this category.
Information Seekers: These buyers are involved more with product category
but may not have preferred brand. They are likely to see information to decide
a particular brand. For examples, air-conditioners and washing machine buyers
fall under this category.
Routine Brand Buyers: These consumers are not highly involved with the
product category but may be involved with the particular brand with in that
category. They have low emotional attachment with the product category and
tied mainly with their brand. For example users of particular brand of soap for
years, regular visitors to particular restaurant fall in this category.
.
1. Need Recognition
When a person has an unsatisfied need, the buying process begins to satisfy the
needs. The need may be activated by internal or external factors. The intensity
of the want will indicate the speed with which a person will move to fulfill the
want. On the basis of need and its urgency, forms the order of priority.
Marketers should provide required information of selling points.
2. Information Search
Identified needs can be satisfied only when desired product is known and also
easily available. Different products are available in the market, but consumer
must know which product or brand gives him maximum satisfaction. And the
person has to search out for relevant information of the product, brand or
location. Consumers can use many sources e.g., neighbors, friends and family.
Marketers also provide relevant information through advertisements, retailers,
dealers, packaging and sales promotion, and window displaying. Mass media
like news papers, radio, and television provide information. Now-a-days internet
has become an important and reliable source of information. Marketers are
expected to provide latest, reliable and adequate information.
3. Evaluation of Alternatives
This is a critical stage in the process of buying. Following are important
elements in the process of alternatives evaluation
a) A product is viewed as a bundle of attributes. These attributes or features are
used for evaluating products or brands. For example, in washing machine
consumer considers price, capacity, technology, quality, model and size.
b) Factors like company, brand image, country, distribution network and after-
sales service also become critical in evaluation.
c) Marketers should understand the importance of these factors to consumers of
this factor to consumers while manufacturing and marketing their products.
4. Purchase Decision
Outcome of the evaluation develops likes and dislikes about alternative
products or brands in consumers. This attitude towards the brand influences a
decision as to buy or not to buy. Thus the prospective buyer heads towards final
selection. In addition to all the above factors, situational factors like finance
options, dealer terms, falling prices etc., are also considered.
There are eight specific roles and tasks assumed by the family members in this
process. The following are the important roles.
ROLES DESCRIPTION
This model was developed by Wells and Gruber in 1960s. Families pass through
a series of stages that change them over time. This process historically has
been called the family life cycle (FLC). The concept may need to be changed
to household life cycle (HLC) or consumer life cycle (CLC) in the future to
reflect changes in society.
This cycle is a way of segmenting the family market at different stages of the
life cycle to determine the products and services that people buy at each stage.
The following discussion examines the five stages in detail and shows how they
lend themselves to market segmentation strategies.
STAGE 1: BACHELORHOOD
The first FLC stage consists of young single men and women who have
established households apart from their parents. Although most members of
this FLC stage are fully employed, many are college or graduate students who
have left their parents’ home. Members of the bachelorhood stage frequently
have sufficient disposable income to indulge themselves. Marketers target
singles for a wide variety of products and services.
For example, GQ, DETAILS and PLAYBOY target young, sophisticated and single
males, whereas COSMOPOLITAN, ALLURE and GLAMOUR are directed to young
single women.
STAGE 2: HONEYMOONERS
The HONEYMOON stage starts immediately after the marriage and lasts till the
arrival of couple’s first child. This is a period of adjustment to married life.
Because many young husbands and wives both work, they are available with
more income that permits them to live a lavish life, more purchasing power and
allows them to save or invest the extra income.
During this stage, the advice and experience of already married couples are
likely to be important to newlyweds. Other important sources are magazines
such as BETTER HOMES and GARDENS and METROPOLITAN HOMES.
STAGE 3: PARENTHOOD
When a couple has its first child, the honeymoon is considered over. The
PARENTHOOD stage, also called FULL-NEST stage, usually extends over more
than a 20 year period. Because of this, the stage can be divided into shorter
phases: the preschool phase, the elementary school phase, the high
school phase and the college phase. Throughout these phases, the
structure of family gradually changes and financial resources of the family also
changes.
Many magazines such as HUMPTY DUMPTY, designed for the young child for
learning how to read; SCHOLASTIC MAGAZINE, for the elementary school pupil;
BOY’S LIFE, for young boys and AMERICAN GIRL, SEVENTEEN, GLAMOUR, for
teen and young adult girls interested in fashion.
STAGE 4: POSTPARENTHOOD
This so-called EMPTY-NEST stage signifies for many parents almost a “re-birth”,
a time for doing all things they could not do while their children were at home
and they had to worry about soaring educational expenses. For both, it is the
time to travel, to entertain, perhaps to refurnish their home or to sell it in favor
of a new home.
It is during this stage that married couples tend to be most comfortable
financially. They have higher disposable incomes because of savings and
investments. They look forward to being involve grandparents.
Many empty nesters retire while they are still in good health. Retirement
provides the opportunity to pursue new interests, to travel, and to fulfill
unsatisfied needs. Hotels, airlines and car-leasing companies have responded to
this market with discounts to consumers over 60.
STAGE 5: DISSOLUTION
DISSOLUTION of the basic family unit occurs with the death of one spouse.
When the surviving is in good health, is working or has adequate savings and
has supportive family and friends, the adjustment is easier. The surviving
spouse (usually, the wife) often tends to follow a more economical lifestyle.
Many surviving spouses seek out for companionship; other enter into second (or
third) marriages.
The modern day consumer does not have to buy sub-quality and
shoddy products. He can dictate his terms, and as somebody has
rightly stated that customer is not only the king but also the queen,
the prince and princess. He has a choice to make from a number of
brands and can return the product if not approved. He can take free
trial, negotiate and bargain. He can reject and accommodate. He
can use credit cards, buy houses, cars, flats on easy installments
and can even get rebate from taxes by taking a loan for a home. He
can access abundant information through the internet. The market
is happy to provide such services free of cost. It is the service that
plays an important role in promoting products and brands.
Marketers all out to differentiate their products in terms of service,
price, packaging, branding, promotion etc. Celebrities are being
used to promote products.
These changes have revolutionized the modern market and thus this
decade is known as the “DECADE OF MODERN MARKETING.”
COMPANY PROFILE
A household name for paste and tooth powder, Colgate Palmolive (India) was
(Bombay). The company became a public limited company on 5th October 1978.
In 1990-91 the company commissioned facilities for fatty acid and toilet soap at
Waluj (Aurangabad). The plants at Sewri and Waluj manufacture oral care
products like dental creams, tooth powder tooth brushes and personal care
products like toilet soaps, shampoo, which are marketed under various brand
names such as Colgate, Palmolive, Halo, Protex and Charmis. The company’s
distribution network covers 1700 stockists and 4,50,000 retailers with ware house
new addition at Faridabad). The company has its own Research and
development facilities and had also been getting the R&D benefits of the parent
company. It has a well established quality Control Department at Sewri & Waluj.
products.
Colgate Palmolive’s five year plan for 1991 to 1995 emphasized new product
launches and entry into new Geographic markets, along with improved
consumer products.
SWOT ANALYSIS
STRENGTHS
mental faculties.
family’.
1. Lacks the universal appeal and accreditation of world wide players like ORAL-
B, AQUA-FRESH etc.
2. Has not been able to penetrate the rural segment in volume terms.
OPPORTUNITIES
1. Any ‘PUSH’ can be easily and quickly affected on account of its widespread
presence.
capable of , given the base and vision that the company commands.
3. Investment into R&D and the sales campaign so as to effect a strong long
term pull can transform the nature of the market completely as not one has
4. With the average semi-urban/urban consumer ready to shell out this extra
this low involvement product which has to so far been centered only around
cleaning of teeth.
THREATS
1. Foreign brands like AQUA-FRESH, ORAL-B, JORDAN, etc are trying to take the
2. The low margins being offered might go against the prospects of Colgate
plus in case some player in the lower segment starts offering high margins.
DATA ANALYSIS
To study the buying behavior and brand preference we have taken the
Overall Toothpaste Market.
So, Lets see buying behavior while making a purchase decision making
over toothpaste.
Q.1 Which Brand you use personally at home
Response No Of Respondents Percentage of
Respondents
Close – Up 15 30
Pepsodent 9 18
Colgate 24 48
Any Other 2 4
By this analysis we can see that the most preferred brand is Colgate, as 48% of
people use it personally and after it Close- up has highest share as 30%
Respondents
Brand Loyalty 11 22
Advertisement 7 14
Quality 22 44
Price 4 8
Availability 6 12
By analysis of this data we can see most of people (44%) are affected by
Quality fact of the toothpaste, and after it they consider loyalty as it is also a
result of the quality and price has very low percentage (8%), which shows that
people don’t think much about price while buying toothpaste.
Q.3 Can you switch to other brands if same quality and quantity
available in low price?
Respondents
Yes 15 30
No 35 70
By interpretation of this data we can come to this conclusion, that people are
not willing to switch over other brands also (70%), as we have already seen the
brand loyalty fact of the generation, and very few people, 30% can consider for
switching the brand if same is available for low price.
(b) I just see the name of company as, Close- Up, Pepsodent.
Respondents
Brand Name 12 24
Company Name 38 76
By interpreting the above data, we can see that 76% of people don’t see any
particular brand of a company, as just see the company name, as Close Up,
Colgate, very few go on variety, as Colgate Salt, or Close up Calcium.
Respondents
Strongly Agree 0 0
Agree 11 22
Moderate 12 24
Disagree 27 54
Strongly Disagree 0 0
In this chart it is clearly depicted that a majority (54%) strongly disagree the
price factor while buying the toothpaste. A few (22%) only consider the price
factor while buying.
Respondents
Strongly Agree 0 0
Agree 23 46
Moderate 7 14
Disagree 18 36
Strongly Disagree 2 4
By interpretation of this data, we can see that a majority (46%) is agreeing that
they use particular toothpaste because other family member uses it. Again
(36%) disagree with the statement that they use it because of other family
member use it. So here we see mix response over here. It can be concluded
that in case of buying toothpaste, Gen X people have their own choices.
FINDINGS
By analysis of this all data, we can see that Toothpaste is a low- involvement
brand.
A majority of people (44%) see quality aspect of toothpaste and 22% are
brand loyal which is also result of quality factor of toothpaste.
Consumer is brand loyal for toothpaste, as 70% people are not ready to
change the brand if same quality and quantity is available in competitive
price.
People don’t see much the special brand name of toothpaste, only 24%
people see the brand name (Colgate Salt, Close Up Calcium) of any
toothpaste, they just see the name, as Close Up, Colgate and buy it.