405 CONSUMER MARKETING 1 Role of consumer behavior in marketing nature & characteristics of Indian consumer 2 customer decision making process factors influencing consumer behavior various models of consumer behavior 3 consumer research process objectives role & significance 4 bases for segmentation of consumer products, consumer needs & motivation personality & consumer behavior consumer perception, learning & consumer involvement process 5 Industrial / organizational behavior consumer & market segmentation for industrial products. 6 public policy & consumer protection act misleading advertising consumer education methods 7 consumer value delivery strategies competitive advantage through customer value information customer value determination process measuring customer satisfaction consumer - Traditionally, the ultimate user or consumer of goods, ideas, and services. However, the term also is used to imply the buyer or decision maker as well as the ultimate consumer. A mother buying cereal for consumption by a small child is often called the consumer although she may not be the ultimate user. consumer behavior - 1. (consumer behavior definition) The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives. 2. The overt actions of consumers. 3. (consumer behavior definition) The behavior of the consumer or decision maker in the market place of products and services. It often is used to describe the interdisciplinary field of scientific study that attempts to understand and describe such behavior. low involvement consumer behavior - Consumer decision making in which very little cognitive activity is involved. It includes those situations in which the consumer simply does not care and is not concerned about brands or choices and makes the decision in the most cognitively miserly manner possible. Most likely, low involvement is situation-based and the degree of importance and involvement may vary with the individual and with the situation. consumer satisfaction - 1. (consumer behavior definition) The degree to which a consumer's expectations are fulfilled or surpassed by a product. 2. (consumer behavior definition) The post-purchase evaluation of a consumer action by the ultimate consumer or the decision maker. The beliefs, attitudes, and future purchase patterns; word-of-mouth communication; and legal and informal complaints have been related to the post-purchase satisfaction/dissatisfaction process.

ROLE OF CON BEHAVIOR IN MKTING : The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Understanding these issues helps us adapt our strategies by taking the consumer into consideration. For example, by understanding that a number of different messages compete for our potential customers attention, we learn that to be effective, advertisements must usually be repeated extensively. We also learn that consumers will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or symbolic appeals. By understanding the consumer, we will be able to make a more informed decision as to which strategy to employ. One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points: 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). 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.

Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. There are four main applications of consumer behavior: The most obvious is for marketing strategyi.e., 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 (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is 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. Social marketing 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 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. As a final benefit, studying consumer behavior should 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

NATURE & CHARACTERISTICS OF INDIAN CONSUMER : 1. Very rich money for value. Willing to pay more for more value. Ready to pay any price for high quality. ( global buyers ) 2. Consuming class : value for money. Demand adequate quality for price. Balance benefits with price paid.

3. Climbers : fix the money afforded first, then look out for products. Buy popular products. 4. Aspriants : Just started buying, buy in bits and pieces, small packages 5. Destitute : hardly consume any manufactured goods. 1,2,3 r the major buyers of branded goods. their size is growing 5 times the growth of population 4 & 5 r declining at 14% in urban and 7% in rural india. By 2007 1,2,3 will become nearly 80% & 4/5 will reduce to 15% The rate of upward conversions is high. Pre libralisation, spending was limited upto food, shelter etc. today, middle clas is expanding and leisure spendings have increased. Club memberships, eveninh hang outs increased.

CONSUMER DECISION MAKING PROCESS : Stages of the Consumer Buying Process 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 6 stages, determined by the degree of complexity The 6 stages are: 1. 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. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.

The actual decision depends upon High & Low Involvement of the consumer in the byuing process.

Categories of cbb :

Extended problem solving : Cust fully involved & critically examine the competing brands Problem recognasition --- Info search ---- Alternative evaluation ---- post purchase eval ---- feed back I

Routine problem solving : Problem recognation ----memory search ---- intention to buy ---- purchase ---- feedback ---I

Disonance reducing : Problem recognition ---- purchase behavior ---- evaluation of brands ---- brand belief formed by active learning from ads

Limited problem solving : Problem recognition ---- brand belief formed by passive learning from memory ---- brand may or may not be evaluated later. The problem can be recognised if there is a variation between the desired consumer lifestyle & current situation. ( 436 ) Why do customers buy, what r th motives : Satisfaction optimisation : to have a +ve experience, satisfaction flying 1st class, eating at mc donalds / shopping at shoppers stop. Satisfaction mantainance : maintain the level of satisfaction : instead of repairing the fridge frequently, buy other one. Prevention of posible further problems : select brands so that the prod wony give any trouble later on. Eg bajaj scootr / kinetic Honda Problem avoidance : to avoid the occurrence of problems eg soft drinks / medicins r kept at home Conflict resolution : if 2 dif interests are to be satisfied by 1 prod, the cons goes for the one that resolves the conflict. Eg diet coke taste and low cal.

Types of problems :

routine problems : The variation between desired and current situation needs an immediate solution. Eg convenient goods grocery purchases. Emergency problems : occur sudenly ( unxpected ) and ned to be adressed immediately. Eg Withdrawals by credit cards, drinking water on a travel drive Planning problems : the problem is recognised but finding the solution is not immediate eg : new flat, micro wave etc Evolving problem : problem may arise unannounced but solution is not needed on a immediate basis. Eg : credit cards, fashion etc.

Situations leading to problem recognation : Inadequate stock of goods : convinence foods. Atta, rice etc. or to make a cake if there r no eggs, problem arouses. Discontentment with existing stock : tv, furniture etc. Changing financial circumstances : car etc

Marketing effort : the marketers induce the need of the minds of custs. 2. Information search-o o Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set. Types of information sought by potential buyers : Evaluation criteria : HE first justifies the need to purchase ( washing machine bonus of 25,000/- ) do I need a washing machine. If yes fully or semi automatic etc. then he he first goes through his own data bank. + he will engage in external sources. Appropriate altrnatives : evaluate dif brands. First study known brands ( known to him ) then go for less known or unknown brands. Alternative characters : different alternatives with dif features : Price, power consumption, looks, facilities & various othr options available. Information collecting and processing. ( 453 ) Awerness, evoked, inept, inert.

STAGES OF DECISION MAKING AND INFO SEARCH : Prepurchase search : Cust finds a problem, finds ways to solve Browsing : these r potential buyers. They do not intend to buy but keep surfing the net, window shopping, magzines etc. Acidental search casually come acros attractive display, get interested and start search.

Postpurchase search : After purchase : stay upto date, evaluate if decision was right, become decision influencers.

Types of search : Internal : recalled from memory / knowlwdge / experience. Immediately after problem recognition, internal search occurs. Either immediate response, or slow recovery, but over a period, memory decays.

Extent of search : degree of recall varies from simple recall of a brand name to more complete image.

Kind of information retirved : 04 types : > Brand name / atrributes / evaluation done earlier / experience.

External : If there is something missing / inadequate / or is suspect then ext search is required. Personal sources : friends, experts, sales people ) Impersonal : adv, media reports, window display etc ) 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.

Evaluation criteria : R the various features a customer looks for in response to a particular type of problem. These r product features associated either with benefits desired by the customer or the cost he has to incur. Tangible : price, color, size, shape, performance characters Intangible : brand image, feeling associated with ownership.

Number of eval criteria : The more imp the purchase is for the customer, more will be the evaluation criteria a cust is likely to use to access the product suitablity. Maruti car / shampoo.

Consumer decision rules : Non compensatory decision rule :

Here the weaknesses of a possible alternative are not ofset by its strengthes. Means, if a product does not prove satisfactory on all the eval criteria, the cust will not buy a prod : 4 types : Disjunctive rules : Here a cust divide the attributes into 2 types, 1 which will essentially be neded, one which wont. Eg : computer : price, after sales support, brand name are a must. Looks, consumption etc r not imp.

A minimum score is decided for each attribute, If more than 1 brand satisfies all the criterai, no single brand is a winner & vice versa. Conjunctive rule : a cust considers all eval criteria as determinants and a minimun acceptable value or score is establiehed for each one. Brands which do not reach the minimum acceptable score dont have to be evaluated further. Lexicography rule : here the cust ranks each of the eval criteria in order of imp. If 2 competing brands score same on the highest ranked crit, the consumer uses the second, third and so on, so that only 1 clear winner remains. Elemination by aspect rule : here the cust ranks eval criteria & also set minimum scores that must be met on each of them. The alternatives that dont meet each minimum r eleminated. The remaining r compared on lexi rules.

Compensaatory rules : here, the cust will even acept weekness of a produce to adjust with the strengthes of a few very strong attributes. 4 types : Simple aditive rule : Here cust scores each eval crit from 1 to 10. The brand which has the max points will be choosen. Scooter : price, milage, looks, good after sales service. Total pts wins. Weighted additive rule : On a scale of 1 to 10, first eval crit are rated, then each criteria is rated. Comperatively, columns r multiplied. Highest is choosen. 4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase--May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an indian meal, may think that really you wanted a chinese meal instead. VARIOUS MODELS OF CONSUMER BEHAVIOR :Why : to understand the complex relationship betn variables influencing a cons, to expand our knowledge base & research, future development of theories.

Models : A model is a abstract representation of a process or relationship seeking to faithfully mirror reality and enable us to test and enlarge our knowledge further. Variables involved : ( condition : var should be correctly identified & there should be correct mapping among interrelationships between the vars. _ Stimulii & resopnse : input to con behavior like av, opinion leader, commn etc. Response : action taken : it is a result of the stimulii or arisen from an internal force ( thirst leads to drinking water ) Intervening variables : All that is betn stinlus and reponse. Internal & external variables : Internal result of physiological process ( hunger / thirst etc ) or psycological processes ( attitude / motivation ). External ext factors like economics, social, cultural, others. Exogenous & endogenous vars : thise which have a direct & immediate & clearly defined effects on con beh r endogenous. Exegenous r those which do not have immediate or clearly defined efect.

Classification of models : Simple & comprehensive Simple : consider only main influences on con beh. 4 types : Black box Decision process Personal variables Hybrid decisions. Comprehensive or grand models : Minute details : 3 types : ( just mention / all outdates ) Nicosia model Howard Sheth model Engel, Blackwell & miniard model. Black Box Models : It is the consumers mind. The models are termed as black box since they do not consider internal processes, only observable stimulus vars and responses. Stimulus response model : Simplest possible model of cons decision making.

Stimulus ------ Black box / cons mind ----- Response Consumer centre model : ( 404 ) Considers controllable factors ( 4 ps ) Input output model : ( 406 )

Decision process model : Take into consideration consumers problem solving / decision making behavior. Problem seking ---- Info search ---- Alternative eval ---- Purchase ---- Post pur behav ---- feedback ( 409 ) High & Low involvement :

( 411 ) Personal variable Models : These models focus on modelling specific internal processes like needs, attitudes, perception, personality, emotions etc) _ 4 types : Compensatory or trade off rule : a cust has an ideal prod into his min. he does not ind a prod available in the market. So he starts trading of on some of the attributes, to reach some decision. Thrershold rule : This assumes that a cust may reject the entire prod even if he does not find one single feature. Eg ; car is not purchases if a specific colour is not available. Disjunctive rule : Assumes that a cust may buy a prod only because it possesses one strong favourable feature. Lexicographical :Cust decides certain attributes in a cronological manner & deducts one by one as the features go on deminishing.

Hybrid Models : Takes into consideration the PV percived value & PPS probablity of satisfaction. Formula : Subjective utility = PV X PPS. ( 421 ) BASES FOR SEGMENTATION OF CONSUMER PRODUCTS, CONSUMER NEEDS & MOTIVATION PERSONALITY & CONUMER BEHAVIOUR CONSUMER PERCEPTION, LEARNING & CONSUMER INOLVEMENT PROCESS Segmentation : The process of dividing the market into distinct subsets of consumers with common needs & characteristics & selecting one or more segments to target with a distinct marketing mix. Segment marketing : A identifiable group of the society for whom a diferent product can be offered. The organisations design dif mmx progs for dif segments Nitch Marketing : of the segmented goup, the marketer finds that there is one single group for whom designing a particular mmx would be most profitable. Diferentiated : dif mmx for dif segemnts Individual : design separate product & mmx for individual client. Segemnt bounding : ( 88 ) The process that diferentiates and fomulate dif segments so that each segment can be persuaded proberly. It is the means by which the marketers diferentiate the customers & mkt segments. It is a method of setting conditions whereby cons either qualify or disqualify. Segment viability : Should be of a sufficient size so that ultimately profit can be generated. So it should not be big in number but it should be big in potential profit. Should be measurable. The details should be measurable. People of a segment should be similar to one another and different for other segments.

Is should be reachable both the marketer and the consumer should have access to a suitable place of distribution.

Bases of segmentation : 5 major categories : Demographic segmentation : market is segmnted acording to demographic characters like : Age : Dif agegroups demand dif products eg : cartoon network, astha cjannel Gender : cosmetic for women, shaving lotions for ladies. Change : ariel used by man, etc. Maratial status : Bachelor spends on fashin. Cloths, maried persons spend on descent upbringing of child, ltd resources etc Household type : Type of household determines the consumption pattern. Joint family, husband wife, with / withour children / parents etc. Education : Diff in education changes the patterns of consumption. Occupation : MMx will depend upon the nature of occupation of the target consumer. Computer for architect will difer form that of accountant. Income : directly proportional to comsumption. > Geographic segmentation : Identifies segments based on geog boundaries.India 4 zones,ewsn, dif demands, choices of colors etc. > Psychographic seg : Psychographic characteristics refer to the inner & intrinic qualities of the individual concerned. This type of seg is based on psychological & behavioral characters. Motivation : Motive leads to purchases. Eg : ready to eat food, hard to sell in india, traditionally females cook hand made. There should be a strong motive for and against the purchase. Properties of motivation. Motivation is described through several properties: Motivation is composed of energy and direction. A person may or may not have enough motivation to engage in a given activity. For example, a person may be motivated enough to go and shop for food, but not enough to engage in a comprehensive exercise program. Motives may be overt, hidden, and multiple. Some motivations are publicly expressed (e.g., the desire to buy an energy efficient house), while others (e.g., the desire to look wealthy by buying a fancy car) are not. Individuals may also hold multiple motivations (e.g., buy a car and save money for retirement) which may conflict. Many motivations are driven by the desire for tension reduction (e.g., eliminate thirst or hunger). Motivations can be driven by both internal and external factors. That is, a person may want a painting either because he or she likes it (internal motivation) or because this will give her status among the artistic elite (external). Motivations may have either a positive or negative valence--people may either be motivated to achieve something (e.g., get a promotion at work) or avoid something (e.g., being hospitalized without having adequate insurance). Consumers are motivated to achieve goals. Achieving these goals may require sustained activity over time (e.g., exercising every day for months or years) as opposed to just taking some action once. Consumers maintain a balance between the desires for stability and variety. Most consumers want some variety (e.g., they do not want to eat the same meal every day), but also want a certain stability (they do not want to try an entirely new food every day). Motivation reflects individual differences. Different consumers are motivated to achieve different things, and it may be difficult to infer motivations from looking at actual behavior without understanding these differences in desired outcomes.

Attitude : Definition. Consumer attitudes are a composite of a consumers (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object--within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object. Beliefs. The first component is beliefs. A consumer may hold both positive beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral (coffee is black), and some may be differ in valance depending on the person or the situation (e.g., coffee is hot and stimulates--good on a cold morning, but not good on a hot summer evening when one wants to sleep). Note also that the beliefs that consumers hold need not be accurate (e.g., that pork contains little fat), and some beliefs may, upon closer examination, be contradictory (e.g., that a historical figure was a good person but also owned slaves). Since a consumer holds many beliefs, it may often be difficult to get down to a "bottom line" overall belief about whether an object such as McDonalds is overall good or bad Lifestyles : Lifestyles. Self-concept often translates into a persons lifestyle, or the way that he or she lives his or her life. For example, a person may be very materialistic, preferring to wear flashy clothes and drive expensive cars, or prefer instead a simpler life with fewer visible status symbols. Attempts have been made to classify consumers into various segments based on their lifestyles. The Values and Lifestyle (VALS) Project, developed by the Stanford Research Institute (SRI), attempts to classify people based on a combination of values and resources. Thus, for example, both "Achievers" and "Strivers" want public recognition, but only the Achievers have the resources to bring this about. A global analogue is the Global Scan ( 99 ) Sociocultural segmentation : It is all about dividing the market on the basis of stage in life cycle, social class, cultural values, sub cultural memberships, & cross cultural affiliations : Family life cycle : The Family Life Cycle. Individuals and families tend to go through a "life cycle." The simple life cycle goes from child/teenager ---> young single ---> young couple* ---> full nest ---> empty nest ---> widow(er). Each stage demands different prods and will respond to dif mmx situations. Social class : inclme, ocupation, company a person keps. Dif social class respond differently. Culture : the set of basic values, perceptions, wants, and behaviors learnt by a member of a society from family and other imp institutions. Sub culture : a group of people with shared value systems based on common life experiences and situations.

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 part of the external influences that impact the consumer. That is,Culture : culture represents influences that are imposed on the consumer by other individuals. The definition of culture offered in the text is "That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society." From this definition, we make the following observations: Culture, as a "complex whole," is a system of interdependent components. Knowledge and beliefs are important parts. In the U.S., we know and believe that a person who is skilled and works hard will get ahead. In other countries, it may be believed that differences in outcome result more from luck. "Chunking," the name for

China in Chinese, literally means "The Middle Kingdom." The belief among ancient Chinese that they were in the center of the universe greatly influenced their thinking. Other issues are relevant. Art, for example, may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others. Morality may be exhibited in the view in the United States that one should not be naked in public. In Japan, on the other hand, groups of men and women may take steam baths together without perceived as improper. On the other extreme, women in some Arab countries are not even allowed to reveal their faces. Notice, by the way, that what at least some countries view as moral may in fact be highly immoral by the standards of another country. For example, the law that once banned interracial marriages in South Africa was named the "Immorality Act," even though in most civilized countries this law, and any degree of explicit racial prejudice, would itself be considered highly immoral. Culture has several important characteristics: (1) Culture is comprehensive. This means that all parts must fit together in some logical fashion. For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. (2) Culture is learned rather than being something we are born with. We will consider the mechanics of learning later in the course. (3) Culture is manifested within boundaries of acceptable behavior. For example, in American society, one cannot show up to class naked, but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable. Failure to behave within the prescribed norms may lead to sanctions, ranging from being hauled off by the police for indecent exposure to being laughed at by others for wearing a suit at the beach. (4) Conscious awareness of cultural standards is limited. One American spy was intercepted by the Germans during World War II simply because of the way he held his knife and fork while eating. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. For example, American culture has changed a great deal since the 1950s, while the culture of Saudi Arabia has changed much less. Seg based on purchase behavior :

Usage rate : Indian airlines. Some custs use heavily, moderalely, rarely. Diff mmx for sif category. Loyalty status : Loyal custs given dif disc schemes. User status : Diff mmx is to b used to who is using how much. Process of mkt seg : Analysis of cust prod relationship ---- Investigate seg bases ---- Develop prod positioning ---- Select seg strategy. Prod positioning : creating a place for a prod in the minds of pot cons . Type : Pso by competition ( coke / pepsi / captian cook / tata salt ) , atribute ( Titan positions itself as a fashion watch ) , user ( clinic all clear for anit dnadruf ), Prod class ( Prod positiond relative to other prod class eg dove soap as a moist cleaner, bratania as an alternative for 1 glass milk ).

CONSUMER BEHAVIORThe actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions. The behavioral sciences help answer questions such as : Why people choose one product or brand over another, How they make these choices, and How companies use this knowledge to provide value to consumers

I. CONSUMER PURCHASE DECISION PROCESS Behind the visible act of making a purchase lies a decision process that must be investigated. The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. : Five Stages of Consumer Behavior problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.

A. Problem Recognition: Perceiving a Need Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts. B. Information Search: Seeking Value The information search stage clarifies the options open to the consumer and may involve two steps of information search Internal search Scanning ones memory to recall previous experiences with products or brands. Often sufficient for frequently purchased products. External search When past experience or knowledge is insufficient The risk of making a wrong purchase decision is high The cost of gathering information is low. The primary sources of external information are: Personal sources, such as friends and family. Public sources, including various product-rating organizations such as Consumer Reports. Marketer-dominated sources, such as advertising, company websites, and salespeople External Search C. Alternative Evaluation: Assessing Value The information search clarifies the problem for the consumer by (1) Suggesting criteria to use for the purchase. (2) Yielding brand names that might meet the criteria. (3) Developing consumer value perception. A consumer's evaluative criteria represent both the objective attributes of a brand (such as locate speed on a portable CD player) the subjective factors (such as prestige). These criteria establish a consumer's evoked set the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware

D. Purchase Decision: Buying Value Three possibilities From whom to buy which depends on such considerations Terms of sale Past experience buying from the seller Return policy. When to buy which can be influenced by store atmosphere time pressure a sale pleasantness of the shopping experience. Do not buy E. Postpurchase Behavior: Value in Consumption or Use After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied. Satisfaction or dissatisfaction affects consumer value perceptions consumer communications repeat-purchase behavior. Many firms work to produce positive postpurchase communications among consumers and contribute to relationship building between sellers and buyers. Cognitive Dissonance. The feelings of postpurchase psychological tension or anxiety a consumer often experiences Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right decision. F. Involvement and Problem-Solving Variations Consumers may skip or minimize one or more steps in the purchase decision process depending on the level of involvement the personal, social, and economic significance of the purchase Three characteristics of high-involvement purchase is expensive, can have serious personal consequences, or could reflect on ones social image. Three general problem-solving variations exist in the consumer purchase decision process: Routine Problem Solving Virtually a habit involves little effort seeking external information and evaluating alternatives. Typically used for low-priced, frequently purchased products. Limited Problem Solving Involves the use of moderate information-seeking efforts. Often used when the buyer has little time or effort to spend. Extended Problem Solving Each stage of the consumer purchase decision process is used Considerable time and effort on external information search and in identifying

evaluating alternatives. Used in high-involvement purchase situations. Involvement and Marketing Strategy Low and high consumer involvement has important implications for marketing strategy, which differs for products that are market leaders from their challengers. G. Situational Influences Five situational influences The purchase task The reason for engaging in the decision. Social surroundings Including others present when a purchase decision is made. Physical surroundings Such as decor, music, and crowding in retail stores. Temporal effects Such as time of day or the amount of time available. Antecedent states Which include the consumers mood or amount of cash on hand -------------------------------------------------------------------------------II. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Concepts such as motivation and personality; perception; learning; values, beliefs and attitudes; and lifestyle are useful for interpreting buying processes and directing marketing efforts. A. Motivation and Personality 1. Motivation is the energizing force that causes behavior that satisfies a need. Needs are hierarchical Once basic physiological needs are met, people seek to satisfy learned needs. From lowest to highest, the hierarchy is: Physiological needs basic to survival. Safety needs self-preservation physical well-being. Social needs love friendship. achievement status prestige self-respect. Self-actualization needs personal fulfillment. 2. Personality A person's consistent behavior or responses to recurring situations. Research suggests that key traits affect brand and product-type preferences. Cross-cultural analysis also suggests that residents of different countries have a national character, or a distinct set of personality characteristics common among people of a country or society.

Personality characteristics are often revealed in a persons self-concept, which is the way people see themselves and the way they believe others see them. B. Perception The process by which an individual uses information to create a meaningful picture of the world by selecting, organizing interpreting Perception is important because people selectively perceive what they want and it affects how people see risks in a purchase. 1. Selective Perception Selective perception Filtering exposure, comprehension, and retention in the human brains attempt to organize and interpret information. Selective exposure Consumers can pay attention to messages that are consistent with their own attitudes and beliefs Consumers can ignore messages that are inconsistent. Selective comprehension Involves interpreting (distorting?) information so that it is consistent with a person's attitudes and beliefs. Selective retention Consumers do not remember all the information they see, read, or hear. Subliminal perception Consumers see or hear messages without being aware of them. This is a hotly debated issue with more popular appeal than scientific support. Research suggests that such messages have limited effects on behavior 2. Perceived Risk Anxieties felt Consumes cannot anticipate the outcomes of a purchase Believe that there may be negative consequences. Marketers try to reduce a consumer's perceived risk and encourage purchases by strategies such as providing Free trial of a product Securing endorsements from influential people Providing warranties and guarantees. C. Learning Those behaviors that result from Repeated experience Thinking. 1. Behavioral Learning The process of developing automatic responses to a situation built up through repeated exposure to it.

Four variables central to how consumers learn from repeated experience are: drive A need that moves an individual to action cue A stimulus or symbol perceived by consumers response The action taken by a consumer to satisfy the drive. reinforcement The reward. Marketers use two concepts from behavioral learning theory: Stimulus generalization Occurs when a response elicited by one stimulus (cue) is generalized to another. Using the same brand name for different products is an application of this concept Stimulus discrimination Refers to a person's ability to perceive differences in stimuli. The advertising for Bud Light beer is an example of this concept. 2. Cognitive learning Involves making connections between two or more ideas or simply observing the outcomes of others behaviors and adjusting one's accordingly. 3. Brand loyalty Is a favorable attitude and consistent purchase of a single brand over time. Brand loyalty differs across countries D. Values, Beliefs, and Attitudes 1. Attitude Formation Attitude A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Shaped by our values and beliefs, which are learned. Values personally or socially preferable modes of conduct or states of existence that are enduring. Beliefs consumer's subjective perception of how well a product or brand performs on different attributes. 2. Attitude Change Approaches to try to change consumer attitudes Changing beliefs about the extent to which a brand has certain attributes. Changing the perceived importance of attributes. Adding new attributes to the product. E. Lifestyle Lifestyle is a mode of living that is identified by activities How a person spends time and resources interests What a person considers important in the environment opinions what a person thinks of self and the world Psychographics

The analysis of consumer lifestyle helps to segment and target consumers for new and existing products. Values and Lifestyles (VALS) Program Developed by SRI International Identified eight interconnected categories of adult lifestyles based on a persons self-orientation and resources. Self-orientation Resources Three patterns of attitudes and activities that help people reinforce their social selfimage. The three patterns are oriented toward principles, status, action. income education self-confidence health eagerness to buy intelligence energy level.

-------------------------------------------------------------------------------III. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Sociocultural influences evolve from a formal and informal relationships with other people. Influences Include Personal influence Reference groups The family Social class Culture Subculture. A. Personal Influence Aspects of personal influence important to marketing Opinion leaders individuals who exert direct or indirect social influence over others Word of mouth People influencing each other during face-to-face conversations. Power of word of mouth has been magnified by the Internet and e-mail B. Reference Groups Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups have an important influence on the purchase of luxury products but not of necessities. : Three groups have clear marketing implications Membership group one to which a person actually belongs

Aspiration group one with which a person wishes to be identified. Dissociative group one from which a person wants to maintain a distance because of differences in values or behaviors C. Family Influence Family influences on consumer behavior result from three sources: consumer socialization passage through the family life cycle decision making within the family. Consumer Socialization Consumer socialization is the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers Family Life Cycle The distinct phases that a family progresses through from formation to retirement Each phase bringing with it identifiable purchasing behaviors. young singles Young marrieds without children Young marrieds with children The older married older unmarried Family Decision Making Two decision-making styles exist: spouse-dominant (either wife or husband is responsible) joint decision making (most decisions are made by both husband and wife). Increasingly, preteens and teenagers are assuming these roles for the family, given the prevalence of working parents and single-parent households. Five roles of individual family members in the purchase process exist information gatherer influencer decision maker purchaser user D. Social Class The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior are grouped. Determinants of social class include occupation, source of income (not level of income) education. Social class is a basis for identifying and reaching particularly good prospects for products and services. Upper classes are targeted by companies for items such as financial investments, expensive cars, and evening wear. Middle classes represent a target market for home improvement centers and automobile parts stores. Lower classes are targeted for products such as sports and scandal magazines. E. Culture and Subculture

Culture refers to the set of values, ideas and attitudes that are accepted by a homogeneous group of people and transmitted to the next generation. Subcultures - groups within the larger, or national, culture with unique values, ideas, and attitudes. three largest racial/ethnic subcultures in the U.S Hispanics, African-Americans Asians . Each of these groups exhibits sophisticated social and cultural behaviors that affect their buying patterns. 1. African-American Buying Patterns African-Americans have the largest spending power of the three subcultures While price conscious, they are motivated by product quality and choice. Respond to products and advertising that appeal to their African-American pride and heritage as well as address their ethnic features and needs. 2. Hispanic Buying Patterns Hispanics represent the largest subculture About 50% are immigrants The majority are under the age of 25. Marketing to Hispanics has proven to be a challenge because The diversity of this subculture The language barrier. Sensitivity to the unique needs of Hispanics by firms has paid huge dividends. 3. Asian Buying Patterns The Asian is the fastest growing subculture. About 70% of Asians are immigrants Most are under the age of 30. Asians represent a diverse subculture, including Chinese, Japanese, Filipinos, Koreans, Asian-Indians, people from Southeast Asia, and Pacific Islanders. Two groups of Asian-Americans have been identified: Assimilated Asians are conversant in English highly educated exhibit buying patterns very much like "typical" American consumers. Nonassimilated Asians recent immigrants who cling to their native languages and customs. Background: Television advertising can be a powerful medium for communicating advertising messages but is unsuited to providing consumers with detailed, permanent information about products and services. The rules in this Section are therefore designed (amongst other things) to ensure that advertising does not misrepresent the nature, benefits and limitations of advertised offers.

5.1 DEFINITION OF MISLEADING ADVERTISING

No advertisement may directly or by implication mislead about any material fact or characteristic of a product or service

Notes: (1) See also 7.1 (Misleading advertising and children) for additional rules about advertising for products and services likely to be of interest to children. (2) Advertising is likely to be considered misleading if, for example, it contains a false statement, description, illustration or claim about a material fact or characteristic. Material characteristics include price, availability and performance. Any ambiguity which might give a misleading impression must be avoided. (3) Even if everything stated is literally true, an advertisement may still mislead if it conceals significant facts or creates a false impression of relevant aspects of the product or service. (4) Scientific terms or jargon, statistics and other technical information should not be used to make claims appear to have a scientific basis that they do not possess. Equally, statistics of limited validity must not be presented in such a way as to mislead, for instance by implying that they are universally true. (5) An advertisement may be misleading even if it does not directly lead to financial loss or a misguided purchasing decision. The ASA and BCAP may also regard an advertisement as misleading if, for example, it causes viewers to waste their time making enquiries, only to find that offers are unavailable or that there are important limitations. This could involve encouraging viewers to visit shops, or to make lengthy telephone calls (including freephone calls). (6) When assessing whether an advertisement is misleading, the ASA and BCAP consider the overall impression likely to be conveyed to a reasonable viewer. They do not consider the intentions of the advertiser, nor simply whether the advertising meets legal or other regulatory requirements. (7) In addition to its delegated powers under the Communications Act 2003, the ASA has a duty to enforce the Control of Misleading Advertisements Regulations 1988 (as amended). These advise that an advertisement is misleading if: (a) it is likely to deceive those who see it and (b) as a result of that deception, consumers are likely to alter their economic behaviour or (c) for the reasons given in (a) and (b), it injures or is likely to injure a competitor of the person whose interests the advertisement promotes.

5.2 CLAIMS

5.2.1 Evidence

Licensees must obtain adequate objective evidence to support all claims

Notes: (1) Where a claim is based on scientific research or testing, that work should have been conducted in accordance with recognised best practice. Where licensees lack the specialised knowledge to assess the adequacy of evidence, they must consult independent experts. (2) Licensees must make their own independent assessment of evidence submitted in support of advertising, and of any advice they have commissioned. (3) Absolute claims eg best on the market, lowest prices guaranteed should be avoided unless they are backed up by clear evidence and are based on a formula on which an advertiser can completely deliver. In particular, licensees should be alert to the fact that such claims may be invalidated by sudden changes in the market or the actions of competitors while the advertising is still on air. For this reason, absolute price claims should be treated with great caution. (4) Under the Control of Misleading Advertisements Regulations 1988, the ASA and BCAP are empowered to regard a factual claim as inaccurate unless adequate evidence of accuracy is provided to it when requested. (5) A claim can be implied or direct, written, spoken or visual. The name of a product or service may in itself be regarded as a claim.

5.2.2 Implications

Descriptions, claims and illustrations must not imply attributes, capabilities or performance beyond those that can be achieved in normal use

5.2.3 Qualifications

All important limitations and qualifications must be made clear

Note: Important limitations and qualifications include those on availability, particularly where failure to mention such conditions is likely to lead viewers to assume that an advertised offer is available on equal terms to all who might see it. Such restrictions might include geographical restrictions, limited numbers of purchases per person, age or sex restrictions etc.

5.2.4 Use of the word free

(a) Advertisements must not describe an offer as free if there are costs to consumers other than actual postage or carriage, non-premium rate telephone charges or reasonable travel required to collect the offer. Advertising must make clear the extent of the consumers liability for any costs

Notes to 5.2.4(a): (1) Trials can be described as free even if the customer has to pay the costs of returning the goods, provided this is made clear in the advertising. (2) Making clear the extent of liability would include, for example, explaining the need to collect tokens, or to travel a considerable distance to redeem an offer.

b) No element of an offer may be described as free if viewers are likely to be misled as to whether it is genuinely additional to the offer

5.2.5 Guarantees

Advertisements must make clear significant limitations to an advertised guarantee

Notes: (1) This rule applies equally to warranty and similar terms.

(2) This does not prevent the colloquial use of the word guarantee where there is no risk of it being construed as part of an offer. For instance guaranteed to make you laugh.

5.2.6 Environmental claims

Advertisements must not make unsubstantiated claims about environmental impact

Note: Best practice on environmental impact claims is contained in ISO 14021 and the Department for the Environment, Food and Rural Affairs Green Claims Code. Licensees must satisfy themselves that any departure from this best practice is justified.

5.2.7 Animal testing

Claims that a product has not been tested on animals are unlikely to be acceptable

Notes:

(1) Even though a finished product has not been tested on animals, it will normally be very difficult to prove that none of the materials used in its manufacture have ever been tested in that way. (2) Some statements about, for example, an advertisers opposition to animal testing may breach rule 4 (Political and controversial issues). This requires television advertising to be impartial on matters of political controversy and public policy.

5.3 PRICE CLAIMS

5.3.1 Accurate pricing

Indications of actual or comparative prices, or the manner in which a price is to be calculated, must be accurate and must not mislead by omission, undue emphasis or distortion

Note to 5.3.1: The Consumer Protection Act 1987 and supporting regulations lay down the statutory framework for indications of price, price comparisons and reductions. In addition the DTI has issued guidance in the form of a Code of Practice for Traders on Price Indications and licensees are advised to refer to this.

5.3.2 Pricing requirements

(a) Quoted prices must be inclusive of all non-optional taxes, duties and fees which apply to all buyers

Notes to 5.3.2(a): (1) Areas where this is particularly relevant include flight and cruise advertising. (2) If a non-optional charge is variable and therefore impossible to quantify, advertising should make clear that it is excluded from the quoted price. (3) Television advertising is regarded by the ASA and BCAP as generally being a business-to-consumer medium. Advertising quoting only VAT exclusive pricing would be appropriate only in exceptional circumstances.

(b) Where goods are available on an instalment basis and the individual instalment costs are given, the total price of the goods must be equally prominent. If the instalment frequency is other than monthly, this must be made clear

Note to 5.3.2(b): In practice, this is likely to apply only when goods are to be paid for in three or fewer instalments. Advertising for schemes involving more than three instalments is likely to be subject to the Consumer Credit (Advertisements) Regulations 1989.

(c) Where the headline cost of goods and services available by mail order or other distance selling means does not include delivery, the delivery charge must be clearly indicated beside the headline price.

Note to 5.3.2(c): Rule 11.2 deals specifically with distance selling. Licensees should also refer to the Consumer Protection (Distance Selling) Regulations 2000.

5.4 CREATIVE TREATMENTS

5.4.1 Visual techniques and special effects

Advertisements must not use any technique that is likely to give a misleading or unfair impression of the product or service

Note: This does not prevent the use of techniques to overcome technical problems in filming: for example, the use of a visually identical material as a substitute for ice cream which would melt under lights. But it would prevent the use of glass sheeting to exaggerate the effects of floor polish.

5.4.2 Superimposed text

(a) Text in advertisements must be legible and must comply with BCAP Guidance on Text and Subtitling in Television Advertisements

(b) Whilst text may expand or clarify a claim, or add minor qualifications, it must not contradict the claim

Notes to 5.4.2: (1) Advertising can mislead if text intended to qualify a claim or offer is too long, complicated or obscurely expressed to be easily absorbed by viewers in one viewing.

5.4.3 Denigration

Advertisements must not discredit or unfairly attack other products or services, advertisers or advertisements either directly or by implication

5.4.4 Testimonials

Testimonials or endorsements used in advertising must be genuine and be supported by documentary evidence. Fictitious testimonials must not be presented as genuine. Any statement in a testimonial that is likely to be interpreted as a factual claim must be substantiated

Note: In ambiguous cases it may be necessary to indicate, for example, that an advertisement features actors presenting the advertisers opinion, or that those giving testimonials are employees or relatives of employees of the advertiser.

5.4.5 Subliminal advertising

No advertisement may use images of very brief duration, or any other technique which is likely to influence viewers, without their being fully aware of what has been done

5.4.6 Comparative advertising

There must be no realistic likelihood that viewers will be misled as a result of any comparison, whether about the product or service advertised or that with which it is compared

Notes: (1) Comparative advertising is regulated by the Control of Misleading Advertisements (Amendment) Regulations 2000. They state that an advertisement is comparative if it explicitly or by implication identifies a competitor or its goods or services. (2) For the purposes of this Code, however, comparative advertising extends beyond the narrow definition contained in the statutory regulations and covers comparisons of a more general kind where a competitor is not identified. (3) Whilst only the courts can decide the precise meaning of the law, the following points may be helpful: A comparative advertisement is acceptable if: (a) it is not misleading (b) it compares goods or services meeting the same needs or intended for the same purpose (c) it objectively compares material, relevant, verifiable and representative features (which may include price) (d) it does not create confusion between the advertiser and the competitor, or between their respective trade marks, trade names, other distinguishing marks, goods or services (e) it does not discredit or denigrate (f) it does not take unfair advantage of a competitors trade marks, trade names or other distinguishing marks, or of the designation of origin of competitive products (g) it does not present goods or services as imitations or replicas. In addition:

(h) products with designation of origin may only be compared with other products with the same designation (i) comparisons relating to special offers must indicate when the offer ends or, where appropriate, that the offer is subject to availability.

5.4.7 Identification of the advertiser

The identity of the advertiser must be made clear if advertising might otherwise be misleading

Note: Viewers could be misled if, for example, advertising by a commercial company appeared to be part of a charity or public service campaign. Who is a Consumer? We all are because we are all users. We use goods and services every day. We need food, warmth and shelter. We travel on buses or trains, visit the doctor or dentist, go to the library, have a haircut, go to the cinema or watch television. At home we use energy in the form of gas, electricity, coal or oil. We expect clean, drinkable water from the tap. If we put out the dustbin we expect the local council's refuse collection service to pick it up and empty it. We demand a minimum standard of education and health care and we rely on the police to help safeguard our property. Consumer rights and responsibilities Being a good consumer means knowing what to look out for and what to avoid. It means knowing where and how to get the best value for money, where to go if things go wrong. Your role as a consumer has both rights and responsibilities e.g.: The right to choose Consumer choice is something you might take for granted because you expect to be able to walk into a shop and take your pick from a selection of brands. Suppliers compete with one another to attract attention and tempt you to buy their products and shop in their stores as opposed to those of their rivals. You might use a shop because it's near your home, because the prices are reasonable or because it always has what you want. You may be mad about beef-burgers and choose one brand because you think they taste best and have more meat and less fat than the others. Or you may use a particular shampoo because you believe it makes your hair look shiny and feel soft. Supposing that you weren't given the option because there was only one company making beef-burgers and one making shampoo, and there was only one place that sold them? You'd have to take whatever they offered and pay whatever they asked or go without. You'd have no real choice. Competition between suppliers means that customers get a better deal because it keeps traders on their toes. They have to change and respond to consumer demand or risk going out of business. Consumer choice can be an effective means of influencing production because by refusing to accept shoddy or over-priced goods and services you can force suppliers to change their ideas. You as a consumer can encourage competition and help improve quality - if you use your right to choose.

The right to accurate information Suppliers of goods and services should give out clear and accurate information so that you, the consumer, are able to make meaningful comparisons and can choose what is best suited to your individual needs. Sometimes the law demands that information is provided e.g. the law says that beefburgers have to be labelled with a list of ingredients including additives like artificial colourings or preservatives. You could be allergic to some chemicals and need to know what to look out for and what to avoid. If you buy a shirt or blouse then the law says that the label must tell you what fabric it is made from. This could be important if you have sensitive skin and need to avoid certain fibres. Sometimes suppliers are allowed to choose what information or detail they provide. It's up to you to find out what you think you need to know and to use that information to help you make your choice. If you think that you've been deliberately cheated or conned by misleading information then the law is on your side. It's up to you to make a complaint about it. The right to safety You have the right to be sure that products are not going to put your life or health in danger. The law on safety is very strict and demands that suppliers meet certain basic minimum standards. Often manufacturers will have to carry out rigorous safety tests and checks before they are allowed to put goods into the shops. Motorcycle crash helmets, for instance, have to pass a series of high impact tests and be marked with the British Standards Institution's Kite mark. Other goods must be labelled with warnings or clear instructions for use. It's your responsibility to read and follow the instructions carefully and you can't blame the manufacturer or supplier if you choose to ignore the warnings. If you are unlucky enough to be injured because the product was dangerous or the warning unclear then you ought to report it - if only to save someone else from getting hurt. Trading Standards Department can help. The right to value for money No one enjoys feeling that they've been cheated or conned into paying a high price for poor quality. But it can happen, unless you look carefully at what you're buying. Remember that "value" doesn't always mean "cheapest". Instead it means that the standard or quality ought to be reflected in the price. Whether you think that something is worth its asking price is for you to decide. If you buy a pair of expensive jeans and pay far more than the average price for them, you might expect them to last, to keep their shape and to wear well. If you buy a much cheaper pair you may not worry if they go baggy in places and wear thin at the knees after a much shorter time. You often have to strike a reasonable balance between cost and quality. It can be unreasonable to expect the highest standard at the lowest price. You've probably heard the expression "You only get what you pay for". Of course you may be lucky and pick up a genuine bargain in the sales. You should still make sure that the reduced price isn't simply to make up for a reduction in quality, and that you're buying something you really want. It's no saving at all if you're left with something you can't use. The right to redress This has nothing to do with putting on your clothes again. It means that as a consumer you have the right to complain and to have your complaint settled fairly. No matter how careful you may have been there's still a chance that something may go wrong. If it does then you may ask for some sort of compensation. Most shops or suppliers would be willing to help because they believe that a satisfied customer is one who will come back again and spend more money. The law helps, too, because it lays down the rules for fair and honest trading. It says, that if you buy faulty goods then you can return them immediately and ask for a

refund, or if you book a holiday and the travel agent switches your destination at the last minute, you're entitled to compensation. You've got to do something too. It's up to you to find out about your legal rights. No one else is going to do it for you. If you aren't certain about what you're entitled to and how to go about getting it, then get some advice.

What is consumer education?Consumer education is concerned with the skills, attitudes, knowledge and understanding necessary to become an effective consumer.It equips people with the skills to make discerning choices, to sort out problems effectively and to seek further information and help appropriately. Whilst laws and markets may change, these skills will enable people to move through life as effective consumers. It sets out to change behaviour, strengthen responsibility, motivate to participate and to empower the consumer. Consumer education encompasses the responsibilities of consumers as well as their rights. This entails taking a shared view of society as a whole as well as the individual concerns of the consumer. It focuses on issues such as the environment, the conditions of producers, particularly overseas, globalisation and sustainability.Informed, articulate and demanding consumers are likely to be more effective individuals. Consumer Education empowers consumers. Information raises our awareness and knowledge of our rights and responsibilities. It provides practical life skills enabling us to develop roles, values and behaviour within society as citizens, consumers and workers. Armed with information consumers can make good choices and wise decisions. When faced with problems or particular needs we can use and analyse the information and become responsible consumers. Confident consumers Consumer confidence is built on knowledge, skills and attitudes. All three need to be in place in order that the individual's life chances are maximised, and for the business environment to flourish. The confident consumer knows his or her rights, how the market operates and how to find information about what they are buying. They will be skilled enough to negotiate where necessary, to budget for what they are buying and to be able to sort out problems before they escalate. Assertiveness enables consumers to complain and if they do not do so, this has implications for the business environment as a whole. Consumer confidence can then help shape an effective business and social environment.

Customer lifetime value : This is a long-term marketing principle which looks at the value to the company of a customer over the whole time that they relate with the company. This includes knowing that although a customer may temporarily use another company's products/services, they can return. One important consequence of a company taking the long-term view to heart and into action is that the customer tends to have better service and hence tends to be more loyal.