consumer behaviour- 002 by ''akshay dagur

8/4/2019 Consumer Behaviour- 002 by ''AKSHAY DAGUR''

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FACTOR INFLUENCING CONSUMER BEHAVIOUR

CULTURAL FACTORS:

CULTURE:

The set of basic values perceptions, wants, and behaviours learned by amember of society from family and other important institutions. Culture isthe most basic cause of a persons wants and behaviour. Every group orsociety has a culture, and cultural influences on buying behaviour may varygreatly from country to country.

Marketing are always trying to spot cultural shifts which might point tonew products that might be wanted by customers or to increased demand.For example, the cultural shift towards greater concern about health andfitness has created opportunities (and now industries) servicing customerswho wish to buy:

y Health club memberships

y Low calorie food

y Exercise equipmenty Activity or health-related holidays etc

Similarly the increased desire for leisure time has resulted in increaseddemand for convenience products and services such as microwave ovens,


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ready meals and direct marketing service businesses such as telephonebanking and insurance

WHEN DOES CULTURE MATTER IN MARKETING?

STANFORD GRADUATE SCHOOL OF BUSINESSYou need a newcomputer. You log on to the Web and spend time thoughtfully perusingvarious vendor sites to determine the best fit for your needs. You thinkyou've made up your mind. But then you're whizzing down the highway andpass a billboard touting a different computer. You have only a few secondsto absorb the advertising message, but you're swayed in ways you hadn'tanticipated. What's going on?

According to new research, it may have to do with your cultural biases. Or,to be more specific, the instances in which culture mattersand the times itdoesn't.

When does culture influence consumer purchasing decisions? This is acomplex and under-examined issue recently explored by Donnel Briley ofthe University of Sydney and Jennifer Aaker, the General Atlantic Professorof Marketing at the Stanford Graduate School of Business.

Four experiments found that culture-based differences show up wheninformation is processed in a cursory and spontaneous manner. So whenyou passed that roadside billboard, you were likely to be influenced byadvertising that appealed to your particular culture. But when you had thetime to deliberate moreby examining information on the Web, forinstanceattempts by advertisers to rely on cultural factors tended not tobe as successful.

For example, in a pilot study, Anglo and Asian American students at a

California university with an ethnically diverse population were asked toview advertisements for Welch's grape juice. Some participants wereinstructed to give their immediate reactions to the advertisements, whileothers were told to think more carefully before evaluating the effectivenessof the ads.Half of the ads were "promotional" in their appeal. That is, they focused onthe benefits that could be gained by drinking the juicee.g., "Welch's


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grape juice can lead to higher energy levels, is great-tasting as well asenergizing, and is fun to drink." The other ads had "preventive" appeals:

They highlighted problems that could be avoided by drinking Welch'se.g.,"Welch's grape juice can reduce the risk of some cancers and heartdisease, helps keep arteries clear so that blood can flow freely, and ishealthy to drink"

CULTURAL INFLUENCED PRODUCTS


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Feedback:

The product vicco turmeric is a unique

concept.it is designed by analyzing the

ritualistic belief of the society. The productfeatures supports healing of skin

damages.and glowing skin.

Amul the name itself denotes quality as it is

one of the most recognisized and reliable

brand in the eye of people. The brand amul

supports all traditional health products such

as milk, paneer.one of which is ghee . shudh

desi ghee with a famous brand name issufficient enough to disect all the competitors.

Bajaj almond drops is one big break through

in the market. One which has lot to do with

culture.its main key ingredient is

badam,{almond }. It is very effective because

the contents in it includes vitamin e,

vegetable oil, mineral oil, perfumeetc. Which

brings in good hair growth.

Neem one of those herbs which is used right

from the time of our ancestors.neem is an

healing agent and is a multi supportive herb.Himalaya has evolved this Himalaya neem

face wash which favours and caters the need

of the consumer .creation of such product

araises out of findings on cultural grounds

and beliefs.


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culture is perhaps the single most important factorplaying a MAJOR role in deciding wether a product sells inaparticular geographical area or not....it is very important tounderstand the local culture of the population of a particular area,

city, country.

eg: if the product does not confirm to the local culture it may notfind any buyers....lets say the local culture does not permit alcoholconsumption then no matter what one cant sell alcoholicbeer there....in which case the company can decide to not venturein that area or change the product to non alcoholic beer.

y Marketers have to know the habits, values, behavior of theirtarget audience in order to better communicate the productbrand. Classical example is McDonald's 'no beef'hamburgers in India.

y Another example, KIA advertising cool&crazy style taps into

young professionals behaviour


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SUB CULTURE

A group of people with shared value systems based on common lifeexperiences and situations.

Each culture contains smaller sub cultures a group of people with sharedvalue system based on common life experiences and situations. Subculture includes nationalities, religions, racial group and geographicregions. Many sub culture make up important market segments andmarketers often design products

EXAMPLE

Nationality groups such as the , indians, Italians, chinese,and americans

are found within larger communities and have distinct ethnic tastes andinterests. Racial groups such as the blacks and Asians have distinct culture

styles and attitudes. Many of these subcultures make up important market

segments, and marketers often design products and marketing programs

tailored to the needs of these segments.

Pop singer rapper rock guitarist

Classical musicians trance


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SOCIAL CLASS

Almost every society has some form of social structure, social classes aresocietys relatively permanent and ordered divisions whose members share

similar values, interests and behavior

Social class is not determined by a single factor such as income but is

measured as a combination of occupation, income, education, wealth, and

other variables. Marketers are interested in social class because people

within a given social class tend to exhibit similar behavior, including buying

behavior.

EXAMPLE;

Social classes show distinct product and brand preferences in such areas

as clothing, home furnishings, leisure activity, and automobiles.


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Social Factors

A consumers behavior is also influenced by social factors, such as the

consumers small groups, family, and social roles and status. Because

these social factors can strongly affect consumer responses, companiesmust take them into account when designing their marketing strategies.

GROUPS - a persons behavior is influenced by many small groups.Groups which have a direct influence and to which a person belongs are

called membership groups. References groups are groups that serve as

direct or indirect points of comparison or reference in the forming of a

persons attitudes or behavior. Marketers try to identify the reference

groups of their target markets.

The importance of group influence varies across products and brands, but

it tends to be strongest for conspicuous purchases.

FEEDBACK

groups have major dominance in a persons reaction to buying

decision making.as one says, environment matters.

friends are the first where u will want to find suggestions

especially in the case of fashion , style .

neighbours are also comes in the list of personal suggestions and

help as they are similar to our relatives whom we share ourproblems.


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FAMILY - family members can strongly influence buyer behavior. We candistinguish between two families in the buyers life. The buyers parents

make up the family of orientation. From parents a person acquires an

orientation toward religion, politics, and economics and a sense of personal

ambition, self-worth, and love.

The family of procreation-the buyers spouse and children-exert a more

direct influence on everyday buying behavior. The family is the most

important consumerbuying organization in society, and it has been

researched extensively. Marketers are interested in the roles and relative

influence of the husband, wife, and children on the purchase of a large

variety of products and services.

FEEDBACK

Family is the main consideration for every individual everytime he

makes a decision he has to discuss it with his family members.

Especially youngsters as they are dependant upon there family

for finance and many other purpose.

It is like if I want to purchase a new mobile phone I have to

discuss it with my family and it is their decision which will be the

outcome.


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ROLES AND STATUS - a person belongs to many groups-family,clubs, organizations. The persons position in each group can be defined in

terms of both role and status. A role consists of the activities people are

expected to perform according to the persons around them. Each role

carries a status reflecting the general esteem given to it by society.

FEEDBACK

one would obviously want them to enjoy and maintain theposition given to him/her by the society.

if a person is considered fashionable by a group of people from

the society then he /she must maitain the dominant image.

for a person whose status speaks more than his words he cant

afford to drop his reputation.i.e. he/she will go for luxury and high

quality products to maintain the status.


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PERSONAL FACTORS:

A buyers decisions are also influenced by personal characteristics such as

the buyers age and life-cycle stage, occupation, economic situation, life

style, and personality and self-concept.

AGE AND LIFE-CYCLE STAGE

people change the goods and

services they buy over their lifetimes. Buying is also shaped by the stage of

the family life cycle-the stages through which families might pass as they

mature over time. Marketers often define their target markets in terms oflife-cycle stage and develop appropriate products and marketing plans.

OCCUPATION

a persons occupation affects the goods and

services bought. Marketers try to identify the occupational groups that have

an above-average interest in their products and services.


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ECONOMIC SITUATION

A persons economic situation will greatly affect product

choice. Marketers of income-sensitive goods closely watch trends in

personal income, savings, and interest rates. If economic indicators point to

a recession, marketers can take steps to redesign, reposition, and reprice

their products.

LIFE STYLE

people coming

from the same subculture, social class, and even occupation may have

quite different life styles. Life style is a persons pattern of living as

expressed in his or her activities, interests, and opinions. Life style captures

something more than the persons social class or personality. The life-style

concept, when used carefully, can help the marketer gain an understanding


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of changing consumer values and how they affect buying behavior.

PERSONALITY AND SELF-CONCEPT

Each persons distinct personality willinfluence his or her buying behavior. Personality refers to the unique

psychological characteristics that lead to relatively consistent and lasting

responses to ones own environment. Many marketers use a concept

related to personality-a persons self-concept

FEEDBACK.

AGE AND LIFE CYCLE

Consumption patterns do change when the age of a person

changes i.e. the demand fluctuates.

In case of an adult, the purchases are mostly based on

fashion.


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If clothes are concerned, an adult would mostly purchase

more funky stuff like jeans , t-shirts rather than shirts

And when u observe old aged people, they may prefer those

products which are simple and comfortable. In lifecycle, every individual is exposed to different things

astheir maturity increases , so the one who is spending

money a lot at the time of college will not be the same when

he is working because he has to keep his responsibilities in

mind.

OCCUPATION

People from different occupations have different preference andneeds of products and services.

In the case of a businessman luxury is his main priority so he

would need suits, luxury cars to show his standards.

ECONOMIC SITUATION

Economic situation is a broad concept. Ecomic growth varies

from one another.

It depends upon the work and position that a person is holding.

For a farmer, luxury products are of no use. They would rather

prefer low rate products.

LIFE STYLE

people prefer products as per their lifestyle. Everyone has their

own perspective and needs that they follow

I would always want me to be spending on productive things

which supports my high thinking lifestyle. i.e as an explorer I

would spend money in creative art and books.


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PERSONALITY AND SELF CONCEPT

me as a dominant personality would want my every activity to

be superiorly done so I would go for good reliable items. Like

purchasing a del laptop { brand} for my personal activities.

PSYCHOLOGICAL FACTORS:

MOTIVATION

A person has many needs at any given time. Some needs are biological,

arising from states of tension such as hunger, thirst, or discomfort.

Other needs are psychological, arising from the need for recognition,

esteem, or belonging. Most of these needs will not be strong enough to

motivate the person to act at a given point in time.

A need becomes a motive when it aroused to a sufficient lever of intensity.

A motive is a need that is sufficiently pressing to direct the person to seek

satisfaction. Motivation researchers collect in-depth information from small

samples of consumers to uncover the deeper motives for their product

choices.


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PERCEPTION

a motivated person is ready to act. How the person acts is influenced by

his or her perception of the situation. Two people with the same motivation

and in the same situation may act quite differently because they perceive

the situation differently.

Perception is the process by which people select, organize, and interpret

information to form a meaningful picture of the world. People can form

different perceptions of the same stimulus because of three perceptual

processes: selective exposure, selective distortion, and selective retention.


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LEARNING

Learning describes changes in an individuals behavior arising from

experience.

The practical significance of learning theory of marketers is that they can

build demand for a product by associating it with strong drives, using

motivating cues, and to the same drives as competitors and providing

similar cues because buyers are more likely to transfer loyalty to similar

brands then to dissimilar ones.

Or it may design its brand to appeal to a different set of drives and offer

strong cue inducements to switch (discrimination).


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BBiibblliiooggrraapphhyy

BBOOOOKKSS

11...CONSUMER BEHAVIOR: BUYING, HAVING, AND BEING

22..CONSUMER BEHAVIOUR: APPLICATIONS IN MARKETING

AND

PERSONAL INFORMATION AND SURVEY

OTHER REFERENCE:

GOOGLE- WIKIPEDIA, ENCYCLOPEDIA.


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Case study

When most people hear GILLETTE, one thing comes to mindRazors. Thatsto be expected, since safety razors were invented by King C. Gillette in 1903, andthe product in various forms has been the core of the companys business eversince. Few firms have dominated an industry so completely and for so long. Wet-razor shaving (as distinct from electric razors) is a $900 million market. Gillettesshare is 62 percent, with the remainder divided among SCHICK15 per cent,


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BIC11 percent, WILKINSON sword2 percent, and a number of privatebrands.Gillette would like to achieve a similar position in the mens toiletries with a newline of products called the GILLETTE Series. However, its record that market isspotty at best.

One Gillette success, Right Guard Deodorant, was market leader in the 1960s.

Right Guard was one of the first Aerosols, and it became a family product whichwas used both by men and women. However, the product has not changed althoughthe deodorant market has become fragmented with the introduction ofantiperspirants, various product forms and applicators, and many different scents.As a result, Gillette slipped to third position in deodorant sales behind P & G andColgatePalmolive.An even more embarrassing situation is Gillettes foamy shaving cream, a natural

fit with the razor business. S. C Johnson and Sons Edge Gel have supplanted that brand as the leading seller. These experiences created frustration at Gillette.Despite its preeminence in razors and blades, the company has been unable tosustain a leading position across the full range of toiletries.Gillette is using its most recent success, the sensor razor, as a springboard for itsnew toiletries. The Sensor story provides the background necessary to understand

the marketing of the Gillette Series, and also offers some insight into Gillettesmarketing prowess.Sensor- a high technology cartridge razor- was a gamble for Gillette because it rancounter to consumers buying preferences. Disposable razors, which were

produced by the French firm BIC in 1974, had gained control in nearly 80 % of therazor market by 1990. Gillettes analysis showed that disposables provide a worseshave than a cartridge blade, cost more to make than a blade and are sold at a lower

profit margin. Despite its disdain for the product, competitive pressure forcedGillette to introduce its own disposable, Good NewsAs concern about the squeeze that disposables were putting on profit marginsgrew, Gillette began looking for a way to displace them. The company spent $ 300million to develop a technology to significantly improve on the three attributesdesired in shaving- closeness, comfort and safety. They came up with the Sensor, a

razor with independently moving twin blades. The Sensor produces a superiorshave, but it is also more expensive to produce than a disposable. So Gillettesgamble was that a better shave would be enough to justify a premium price, and inthe process, displace the successful but not a very comfortable disposable razor. Inaddition to the R & D investment, Gillette spent $ 110 in the first year toadvertise Sensor. The strategy paid off. Estimated 1992 sales for the brand was $


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390 million, and equally important, the share of the market held by the disposableshas gone down to 42%.Gillette then moved to capitalize on the success of Sensor. The company had a lineof toiletries in development, and the decision was made to tie them closely tosensor. The line consists of 14 items:

1. two shaving gels for sensitive and regular skin

2. two shaving creams

3. two concentrated shaving gels

4. a clear gel anti- perspirant

5. a clear gel deodorant

6. an anti- perspirant stick

7. a deodorant stick

8. An after- shave gel

9. An after-shave lotion

10.An anti- perspirant aerosol and a deodorant body spray available only in Europe.The products in the Gillette series were developed over a three year period at a costof $ 75 million. They were tested on 70000 consumers. An indication of theirnewness is the fact that Gillette has 20 patents pending with them. Considerationhad been given to introducing the line in 1992, but the introduction was cancelled

by Gillettes CEO, Alfred Zeien. He insisted that the line not be launched untilconsumer tests showed that each of the 14 products was preferred to the best-

performing brand in its category.

All the products have a common fragrance that Gillette calls Cool Wave. Theycome in silver and blue packages like the Sensor, and the black lines on the

packages match the grooved sides of the Sensor Razor handle.The items retail at $ 2.69 each, 10- 20 % higher than the prices of major competingitems. As was the case with Sensor, Gillette hopes that the products innovation

will convince men to switch brands and pay the higher prices.During the Gillette Series first year, the company spent $ 60 million on a jointadvertising campaign with Sensor. Just like Sensor, the line was to introduce inJanuary with ads on the Super Bowl. The campaign uses the same theme as Sensor.

The Best a man can get. Initial TV commercials were one minute in length.They started with 15 seconds on shaving gels, and cream, followed by 30 secondson Sensor and 15 seconds on aftershaves. The deodorants are advertised separately.The Gillette series faces two major problems:

y Convincing consumers that the line is actually better and the higher price justified

will be more difficult than with SENSOR. With the razor, Gillette had name

recognition as the dominant firm in the industry. In addition, the design


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differences the sensor were visible, and a consumer can directly enjoy a closer

shave. With the toiletries, Gillette does not have a strong position in the

consumers minds, nor are the benefits provided by the products obvious.

Furthermore, the mens toiletries market is extremely competitive. Powerful firms

with proven marketing skills have taken a greater interest un this category. P & G

has acquired Old Spice and Noxzema; Colgate owns Mennen, and Unilever

purchased Brut. Its unlikely the rest of the firms in the market will sit back and

ignore Gillettes activity.

y Gillette is tying, the new product line to the Sensor but using a different brand

name. If consumers do not associate the Gillette Series with the innovativeness

and success of Sensor, the new line may just be another brand in an already

cluttered market.

According to a Gillette Vice President, one of the most compelling aspects of theGillette series is its synergy with the companys core businessrazors. If the newline is successful, Gillette anticipates adding other mens grooming products suchas hair sprays and shampoos. The firms CEO, Zeien says, were already theworldwide leader in blades, Will we be the world leader in other (toiletries) or not?Thats our goal.

QUESTIONS:

1. How is the Gillette Series being positioned with respect to (a) competitors, (b) the

target market, (c) the product class, (d) price and quality? What other positioning

possibilities are there?2. Is Gillette making the best use of the brand equity that has been created with

Sensor?

3. What strategies do you propose to Gillette? Address the entire marketing mix.

consumer behaviour- 002 by ''akshay dagur

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