conb session-2 (final)

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8/8/2019 Conb Session-2 (Final) http://slidepdf.com/reader/full/conb-session-2-final 1/24 Consumer Behaviour

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Page 1: Conb Session-2 (Final)

8/8/2019 Conb Session-2 (Final)

http://slidepdf.com/reader/full/conb-session-2-final 1/24

Consumer Behaviour

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What is Consumer Behaviour?

Why and how people use

products in addition to why

and how they buy?

Activities people undertake

when obtaining, consuming,

and disposing of products andservices.

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ObtainingObtaining ConsumingConsuming DisposingDisposing

InternalInternal

InfluencesInfluences

ExternalExternal

InfluencesInfluences

Consumer Behaviour 

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Definition

ConB reflects the totality of consumers' decisions

w.r.t. acquisition, consumption, and disposition

of offerings (goods, services, ideas) by (human)

decision-making units [over time].

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The purpose of a business is to create & keep a

customer........ Ted Levitt

Creating a customer means 'transforming' an

ordinary person into a customer of your company.

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Consumer is the king.

Consumer Behaviour analysis helps firms to know

how to 'please the king'.

The only person who can fire us all is the customer.

Sam Walton (founder of World's first trillion dollar 

corporation)

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Some thoughts...

Ask Wal*Mart executives what they sell in their stores, &

you may get the answer 'Nothing'.

Wal*Mart is not in the business of selling things to

consumers.

Confused..........

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Wal*Mart is in the business of 'buying what people

need to consume'.

Positioning: ' P urchasing agent for consumers'

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Story of Bajaj

How does a company adjust to the shifting trend 

in the consumer  and his buying preferences and

makes itself relevant across segments.

The factors are..

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³Shifting demographic trends´- young population in

India with rising disposable income

³Rapid urbanisation´- of smaller towns and with it the

 problems of traffic and distances to travel

³Rising oil Prices´ and its COBA by indian consumers

with scooter vs motorbike

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Why to study ConB?

Because no longer we can takethe customer / consumer for 

granted.

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ConB & Marketing Management

4 interrelated orientations:

1. Market Opportunity Analysis

2. Target Market Selection

3. Marketing Mix Determination

4. Social Marketing

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1. Market Opportunity Analysis:

Washing machine, vacuum cleaner, diet sugar,

smokeless cigarettes, cretch, mosquito repellent, Sony

walkman, Gillette push clean Vector, Chhaggan Bapa's

Lijjat

2. Target Market Selection:

Shampoo sachets

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3. Marketing mix decisions-

Product- maggi in different flavours (capsicum, masala,

sambar, mixed veg, garlic etc); Chik shampoo, Pre-paidmobile cards

Price- effective pricing strategy (Barista vs CCD); Gemini &

Cold winner outflanked national brands.

Place- Eureka Forbes withdrawal from retail outlets

Promotion- judicious promotion mix selection

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4. Use in Social & Nonprofits marketing - like AIDS

awareness, Family planning programme, Safedriving, Tax returns etc

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Consumer Related Issues

UNICEF sponsored this advertising campaign against child labor. The

field of consumer behavior plays a role in addressing important

consumer issues such as child exploitation.

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Consumer Research Process

1. Specify research objectives

2. Collect & evaluate secondary data

3. Design primary research

4. Qualitative or Motivational Research Design

Data collection methods

Depth interview / Focus gr / Projective

techniques

5. Quantitative Research Design

Data collection methods

Observation / Experiment / Survey

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6. Sample Design (sampling unit, sampling size,

sampling procedure)

7. Collecting Primary Data

8. Analysing Data

9. Report Preparation

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Some Burning Examples...

1. Shopper's stop: conducted a research & separated it's

outlet in 2 groups- above average loyal employee

and below average.

Finding: Customer's loyalty was high in tose outlets

where employee was loyal & motivated.

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2.Sony Entertainment Television: Did an observational

study and found out the reason for success of ³Jassi Jaisie

Koi Nahin´ though the 'saa-bohu' soaps were dominant.

3. Leo Burnette wanted a song for the ad for Kawasaki Bajaj

Caliber. Tested 30 songs associated with rival brands.

Hero Honda (ruk jana nahin) for its never say die attitude;

Zindagi aa raha hoon main by Yamaha owners implying

taking life head-on etc. Then they came out with ³Aye

´

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4. An MR done by SRS Brand Icon on Candies found

out consumer's perception on some brands

- Hajmola (good for appetite); Coffee Bite (good for 

sharing); Polo (meant for young) etc.

5. To develop an ad for Pilsbury atta, many women were

introduced to find out their most important concern ³I 

feel guilty that I am not able to provide my husband 

with soft rotis, which could be torn with three fingers

and remains so soft that it can be torn easily even after 

six hours.´

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6. Rexona Roll on Deo

7. Sintex Overhead tank

8. Panparag zip

9. Gillette vector 

10. Maruti True Value Shop (Preowned Car)

11. Surf excell ³Daag acchhe hain´

12. Pepsodent ³Dhishum Dhishum´

13. Star vs Colors

14. Atithi Devo Bhava by incredible campaign

15. Nokia's 1100 series focused on theme of 

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Thank You