consumer behavior with respect 2 cold drink
TRANSCRIPT
PROJECT TITLE
CONSUMER BEHAVIOR ON SOFT DRINKS
AT
HINDUSTANCOCA COLA BEVARAGES PVT LTD
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CONTENTS
Page no
CHAPTER-I 03
INTRODUCTION
Need for the study
Objectives of the study
Research methodology
Scope of the study
Limitations of the study
CHAPTER-II 11
COMPANY PROFILE
CHAPTER-III 22
THEORETICAL BACKGROUND ABOUT THE TOPIC
CHAPTER-IV 42
DATA ANALYSIS
CHAPTER-V 53
FINDINGS
CONCLUSIONS
SUGGESTIONS
QUESTIONNARE
BIBLIOGRAPHY
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CHAPTER-I
INTRODUCTION
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INTRODUCTION
Need for the study
With the economic liberalization in India a number of global companies
have been coming forward to invest in India and tapping perhaps and world's
biggest growing market. As the floodgates have been opened up for Multinational
Companies, the global giant Coca-cola also decided to make an entry into the
Indian market. In India, the per capita consumption of soft drinks is at rock bottom
level even less than our neighboring countries Pakistan and Bangladesh, where it
is four times as much.
The last summer was particularly sweltering one, with temperatures hitting the
high 40's in some places yet; bottles were disappearing from shelves faster than
they could be replaced. In the peak season, they found themselves short of
capacity and having to turn around their trucks faster and faster to slake the
greater Indian thirst.
With growth rates zooming into the double digits, bottlers have been propelled
into expanding capacities. With their big-time plans, the multinationals have
changed the face of this business, long dominated by small-time businessmen. If
demand continues to increase annually at an average of 20 percent, then volumes
could reach one billion cases within ten years.
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These arc ambitious targets and to reach them the cola makers will have to build
capacity, infrastructure, make their bottlers more available and more affordable.
There are 5. 00,000 retailers stocking soft drinks in India. Also, soft drinks which
retail at any where between Rs.9.00 and Rs.12.00 are expensive when measured
against purchasing power.
As they concoct their strategies, keeping an eye on each other all the time,
ultimately there's only one guy they have to watch out for, who will determine
their fortunes: the consumer. The real race to quench his thirst has just begun
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Objectives of the study
• To study about the consumer preference with regard to soft drink
• To study about the consumer perception with regard Coca — Cola
• To understand the Promotional Strategies
• To find out the medium which is most effective in reaching the
consumers?
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Research methodology
Data will be collected from a sample size 1000 and distributed over
different areas by using simple Random Sampling. Random Sampling
consists of
1. Demographic Segmentation
2. Sociocultural Segmentation
3. Use-Related Segmentation
4. Use-Situation Segmentation
Analysis
1. Data Analysis is done both qualitatively and quantitatively.
2. The analysis is presented pictographically using bar graphs
PERIOD OF THE STUDY: The period of the study is past one year
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Scope of the study
The new economic policies of the Govt. of India adopted in the mid eighties were
given further impetus by the early nineties. The Indian market has undergone
considerable changed as a direct consequence of many of these policies and soft
drink industry is no exception to this.
Keeping the above - mentioned perspective in the background, the researcher has
selected soft drink market, since the marketing task his became more challenging
and intensive competition has opened up new vistas.
Companies are evolving marketing strategies by studying the demands of the
market place increasingly penetrating into appropriate market segments
introducing differentiated products to improve their market share. The soft drink
market has achieved an accelerated growth in the past decade.
Soft drinks include ail types of non - alcohol carbonated flavored or otherwise
sweetened beverages. The entry of Pepsi and the reentry of Coca - Cola in the
India market arc inevitably facing stiff competition but the ultimate winner is
customer/consumer. This has led the researcher to study me perception of
consumers towards different brands of soft drinks and to gauge out the
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promotional strategic being adopted by the marketers to lure promiscuous buyers
and win a larger share in the markets.
The cola wars are intensifying and bringing manifold changes in the soft drink
industry. The researcher has conducted a detailed survey, interpreting the
responses to study the perception of the consumers. Now the people with changing
life styles and increase in income levels have made the soft drink a common man
drink.
Liven through the existing system of marketing of soft drink has not tapped such a
big market in the interiors of the country specially the rural areas, as marketing in
the suburban and rural areas is developing slowly.
Despite the soft drink industry is growing at a very healthy pace and stands at 18%
per annum. The market for cool drinks comprises of adults in the 35 years age
group who are largest consumers of the soft drink in the country followed by
young adults in the age group of 15-25 years and children in the age group of 6-
14 years hence, companies must develop their product and marketing slraleiues to
suit their needs.
Limitations of the study
1. The study is conducted with in the confines of the twin cities
2. The study made use of both the primary and secondary sources of information.
The accuracy and authenticity of statistics depends of the accuracy of the second
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source itself. Therefore, the limitation of the secondary source is also bound to be
present in the analysis too.
3. In spite of all the care taken to translate the feelings and opinions of the
respondents, the errors might creep into the study, may be because of the reason
that consumers may fail to articulate their feelings properly.
4. Due to lack of time and finances, the sample size is confined to hundred only. The
method adopted for sampling is convenient. Therefore, size and method
implications are bound to be present in the findings. Hence, the findings cannot be
taken for granted for generalization for the whole population.
Study is confined to consumers belonging to age group between 20 --- 25 years
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CHAPTER-II
COMPANY PROFILE
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COMPANY PROFILE
2.1 INDUSTRY PROFILE
Soft drinks are typical and necessary consumer products, which are generally
consumed by the individuals to quench the thirst and for a good flavour, and it is
considered to be the symbol of social status.
The two main reasons, which classify the soft drinks under consumer products, are
their easy availability and their reasonable high degree standardization. Among the
listed consumer goods (i.e., perishable items) soft drinks is considered non-
essential and as a luxury item.
Soft drinks can be classified into two broad categories- carbonated drinks and non-
carbonated drinks. Both have enormous market. In case of carbonated beverages
the effectiveness of carbon-dioxide is the main factor in determining the quality.
Cola, leman and orange are carbonated drinks while mango drinks come under
non-carbonated category.
A prolonged visible and sparking effervescence is sought after to produce soda
taste in such drinks. The basic constituents of soft drinks are water, sweeteners,
acidulates, flavorings, colorings, foaming agents and preservatives. The soft drink
market is dominated by a few brands. Coca Cola and Pepsi products for example.
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Soft drink industry in India has witnessed phenomenal growth in the recent past,
particularly after the exit of Coca-Cola. The exit of Coca-Cola from India during
the late seventies gave a bolter scope to several Indian soft drink companies to
grow. These were a rapid growth in this industry but each one aggressively
competed with one another to capture a major share in the market. The
competition was very high even in terms of advertising.
The perishable items like soft drinks need a lot of advertisement, as they are not
necessary for the consumer. Most of the consumer consume just for fun &
refreshment purpose and not and for nay other special reason.
For that reason the soft drink marketers concentrate more on the advertisement
part and they keep on designing new advertisements, which conquer the heart of
the consumer. They take special care in casting the popular figures. These soft
drink markets also include some offers like tours to someplace
and so on.
These soft drink companies will sponsor for many of the sport events in order to
have good edge over the competitor as per as the publicity is considered.
SOFT DRINK 1NDUSTR Y IN INDIA
The entry of carbonated soil drink into the Indian soil is relatively new. The credit
for introducing branded soil drink goes to pure drinks private Ltd, Delhi. Later this
company became the franchised bottler of Coca - Cola export corporation.
Accordingly, in 1950, Coca - Cola made its first debut in the Indian market. This
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is the story about the origin of soft drinks in India. After Coca — Cola, Pepsi
entered into the market. The exit of Pepsi made coke the undisputed leader in the
soft drinks market. This company too was forced to leave India due to its non
compliance with the rules and regulations of the Government in 1977. The exit of
coke becomes a boom to national manufactures and all the players started
increasing their business. Among the many national players like pure drinks Me
Dowels, Modem foods, Spencer's and parley, Parle emerged as the leader in the
Indian soft drink market. It is believed that by the end of 1989. Parle captured
more than 75% of the national soft drink market.
In 1990. Pepsi rccntcrcd India and started making more noise in the market. All
the same, it grabbed considerable market share from parley. Besides this. Coke
also reentered India after 16 years of exile, fearing that, it cannot cling to its
market leadership. Parle sold itself to Coca Cola for $40 Million November,
1993.
By buying over local competition the two American Cola giant share cleared up
the arena and are packing all their power behind building the Indian franchise of
their global girdling brands. If Pepsi invests Rs. 300 core, Coke will be investing
more than that and vice versa. The total investment is of a size and scale that the
Rs. 3048 cork soft drink businesses have never seen before.
Both players see enormous potential in this country. Where swigging a carbonated
beverage is still considered a treat virtually a luxury. Consequently by world
standards India's per capita consumption of three servings is rock bottom less even
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than over neighbors Pakistan and Bangladesh. Where is four times as much so, the
cola giants feel that per caps can only go up and up. As incomes improve so do life
styles a pattern they have seen in many of the 195 countries they sell their
universal products.
HISTORY OF COCA - COLA
ATLANTA BEGINNINGS (1868 - 1892):
It was 1886 in NEW YORK harbor, workers are constructing the statue of the
liberty. 800 miles away another great symbol was about to be unveiled.
Like many people who change the history, JOHAN PEMBHRTON, a civil war
veteran & Atlanta pharmacist, was inspired by simple curiosity. He loved
tinkering with medicinal formulas, and one afternoon, searching for a quick cure
for head aches, his stipend up a fragrant Carmel colored liquid in a three legged
pot. When it was done, he carried it a few doors down to Jacob's pharmacy.
I Icrc. the mixture was combined with carbonated water and sampled by customers
who all agreed this new drink was something special. So Jacob's pharmacy put it
on sale for five cents a glass. PEMBERTON'S book keeper FRANK ROBINSON
named the mixture COCA - COLA and wrote it out in his distinct script. To this
day, COCA - COLA is written in the, same way.
In this first year the company sold about 9 glasses of coca cola a day. A century
later the coca-cola company has produced over ten billion gallons of syrup.
Unfortunately for Pemberton, he was more of an inventor than a businessman and
had no idea that the had invented one of the greatest products of the world. Over
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the course of 3 years 1881 - 1891. Pemberton sold the company to Atlanta
businessman Asa Griggs Candlcr for the total of about $ 2300. Candlcr would
become the company's first president and the first to bring real vision to the
business and the brand.
BEYOND A TLANTA (1893 - 1904) :
As a Candler, a natural born salesman transformed Coca Cola from invention to
a business. Lie knew there were thirsty people out there and Candler found
brilliant and innovative ways to introduce them to this exciting new refreshment.
He gave away coupons for complimentary first tastes of Coca — Cola brand.
People saw ('oca - Cola every where and the aggressive promotion worked. By
1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways.
In 1894. a Mississippi businessman named Joseph Bernhard became the first to
put the drink in bottles. He sent of them to Candler, who responded without
enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize
then that the heart of Coca- Cola would be with portable, bottled beverage
customers could take anywhere. He still didn't realize it five years later when in
1899, two Chattanooga lawyers, Benjamin. Thomas and Joseph b. Whitehead
secured exclusive rights from him to bottle and sell the beverage lor the sum of
one dollar.
SAFEGAURD1NG THEBKANOfl905-1918) :
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Imitation may be the sincerest of flattery, but the Coca - Cola Company
was none too pleased about the proliferation of copycat beverages taking the
advantage of its success. This was great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca - Cola, urging can summers to
"demand the genuine'' and "accept no substitute". The company also created a
distinct bottle shape to assure people they were actually getting a real Coca -Cola.
In 1916, the Root glass company of Treat, Indiana began manufacturing the
famous contour bottle. The counter bottle for its attractive appearance, original
design and the fact that, even in the drink, you could identify the genuine article.
As the country roared into the new century, the Coca Cola Company grew
rapidly moving into Cuba. Puerto Rico, France and other countries. In 1900 there
were two bottles of Coca Cola, by 1920, there would be about 1000.
THE WOODRUFF LEGACY:
Perhaps no person has more impact on the Coca - Cola company the Robert
Woodruff In 1923, five years after his father Ernest purchased the company from
Asa Candler, Woodruff become the company president. While Candler had
introduced the U.S. Coca - Cola, he would nearly spend 60 years as company
leader introducing the beverage to the world beyond.
Woodruff was marketing genius who saw opportunities for expansion every where
the captivated foreign markets with his innovative campaigns. Coca Cola traveled
with the U.S. team to the 1928 Amsterdam Olympics to the logo was emblazed on
racing dog sleds in Canada & the walls of bull fighting arenas in Spain. He pushed
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development & distribution of the six-pack, the open top cooler and all
innovations that made it easier for people to drink Coca Cola. When it became
clear to the company that housewives would be more inclined top buy six-packs
they could open easily at home, women were sent door to door, installing branded
Coca Cola openers, this is exactly the kind of "out side the box'" thinking that
thrived under Woodruffs leadership and it made Coca Cola not just a huge
success, but a big party of people's lives.
THE WAR & ITS LEGACY:
In 1941 America entered into World War II thousands of men & women were sent
overseas. The country & Coca - Cola rallied behind them. Woodruff ordered that
every man in uniform gets a bottle of Coca - Cola for 5 cents, wherever he is,
whatever it cost the company 1943, General Dwight D.Eisenhower sent urgent
cablegram to Coca - Cola requesting shipment of materials for 10 bottling plant.
During the war many Europeans enjoyed their first taste of beverage and when
peace finally came, Coca - Cola be placed within ''arm's reach desire'", was
coming true from the rnidf-40's until 1960, the number of countries with bottling
operations nearly doubled.
Post war America alive with optimism & prosperity. Coca - Cola was a part of
fun, carefree America lifestyle & the imagery of its advantage happy couples at
the drive in, carefree moms driving are yellow convertibles is a wonderful
reflection of the spirit of the limes.
A WORLD Or CUSTOMERS (1960- 1981):
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After 75 years of amazing success with brand Coca - Cola, the company
decided to expand with new flavors sprite in 1961, TAB in 1963 and Fresco in
1966. The company's presence worldwide was growing rapidly year after year,
Coca Cola found a home in more & more places. Cambodia, Montserrat, Puce,
Turkey &. more advertising for Coca - Cola always an important & exciting part
of its business really came into its own in the 70's and reflects a brand totally in
tune with fun, playfulness and freedom. The international appeal of Coca- Cola
was embodied buy 1971 commercial, where a group of young people from all over
the world gathered on a hill top in Italy to sing "I'd like to buy the world a coke".
In 1978, the ('oca Cola Company was selected as the only company allowed
selling packaged cold drinks in the peoples Republic of China.
DIETCOKESA NEWCOKE (1982 - 1989):
The 80's the era of legwarmers, head bands and the fitness craze and a time of
much change and innovation at the Coca - Cola Company. In 1981. Roberto C.
Goizucta became chairman of the board of directors & CEO of the Coca- Cola
Company. He who fled Castro's Cuba in 1961. completely overhauled the
company with a strategy he called "intelligent risk taking" among his bold moves
was organizing the numerous U.S. bottling operations into a new public company,
Coca Cola enterprises, Inc. he also released diet coke, the very first extension of
the Coca Cola trade mark within two years, it had become top low calorie drink
in the world, second in success only to Coca Cola. One of Goi/ueta's other
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incentives in 1985, was the release of new taste for Coca Cola, the first change
in formulation in 99 years. In taste people loved the new formula.
In the real world they had a deep emotional attachment to the original and they had
a deep emotional attachment to the original and they bagged and pleaded to get it
back. Critics called it the biggest marketing blunder ever. But Goizueta, as Warren
Buffet once said, had a knack for turning " lemins into lemonade". The original
formula was return to the market as Coca Cola classic, the product began to
increase its lead over the competition a lead that continues to this day.
COCA - COLA NOW (1990 - NOW) :
In 1886. Coca - Cola brought thrilling refreshment to patrons of a small
Atlanta pharmacy. Now well at 2nt century, the company's goal is to provide that
magic every time, in 200 countries, with each of it's 230+ and ever growing
brands. Coca - Cola has customers from Boston to Bahrain, drinking brands like
Ambassa, Veitabela and freseolita. In the remotest corners of the globe, you can
still find Coca Cola.In February 2000, Doug Daft was named company
chairman. Coca - Cola a huge international company, but Draft's vision is to have
the company operate as a collection of smaller, locally run business. "No one",
Daft points out, "decides to enjoy one of our products globally". T hat's why
Coca-- Cola committed to local markets, to paying attention to what people from
different cultures and backgrounds like to drink and where and how they want to
drink, livery ten seconds. 1.26,00 people choose to reach for one of the Coca
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Cola company brands & it is the company's mission to make the choice exiling &
satisfying every single time.
COCA - COLA IN INDIA MARKET:
Coca - Cola has started its operation in Indian market in October 1993. This
has been its reentry in the India market after withdrawal of its operation in
1970s.The Indian market offers a strong consumer potential as majority of the
population is in middle class category which is a strong consumer base for any
FMCG company like Coca - Cola to float its range of products.
Coca-- Cola has acquired the soft drink brands like Thumps Up, Gold spot, l.imea.
Maa/a, Bisleri soda etc which were floated by parle as these products have
achieved a strong consumer base and formed a brand image in Indian market
during the reentry of Coca Cola in 1993. Thus these products became a part of
range of products of Coca Cola.
MISSION Or COCA - COLA :
Provide "clients" with appropriate "systems solutions" for "effective & profitable"
business use adopting a " quality management approach" maintains a ''competitive
edge" with the help of latest and user friendly information
technology.
VISION OF COCA - COLA :
To be a proactive & service oriented business partner for influencing
change & contributing to increase share owner value through a dedicated &
creative team.
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OBJECTIVE OF COCA ~ COLA :
To develop a business strategy for systems implementation which is "simple,
effective & practiced'" to execute in a timely manner for bottling system.
CHAPTER-III
THEORETICAL BACKGROUND ABOUT THE TOPIC
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THEORETICAL BACKGROUND ABOUT THE TOPIC
Consume r Behaviour, The Marketing Process and Models of Consumer
Decision-making Psychological influences: the consumer as an individual
Perception, motivation, learning, attitudes, attitude change and
persuasive communications
Social and cultural influences: the consumer as a group member.
Group influence and opinion leadership; reference group influence; social class
and economic influences, lifestyles, ethnic, religious, age and regional groups
The consumer as a decision maker
Individual decision-makin
g, demographics and household decision making; personality, self-concept and
sex roles, purchase and post-purchase
"Some issues that arise during stages in the consumption process"
Consumer's perspective
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CONSUMER BEHAVIOUR
"A model in this context is a representation of Consumer Behaviour. The aim
is to provide a simplified portrayal of consumer processes to aid our description,
explanation and control of buying behaviour".
Types of consumer behaviour models: Simple models
• Black Box models
• Personal variable models
• Personal
• Engel, Blackwell and Minored
• Howard-Sheath
• Nicosia
Perhaps the most useful set of categories is that of low, medium or high level
models. In this case the level refers to the level of complexity - so a low level
model would be a relatively simple representation of the phenomenon while a
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high level model of the same event would be much more complex and detailed
and include more variables.
In the marketing context the modeling approach has two key objectives:
1. description, explanation, prediction (and ultimately control of consume
behaviors) and/or
2. Aiding researchers in their task of developing 'better' hypotheses and theories
about the relationships and processes involved in consumer behaviour Models can
be evaluated against their ability to satisfy either or both of these objectives. Study
on Consumer Behaviour
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SIMPLE MODELS OF CONSUMER BEHAVIOUR
Lower level or simple models, in contrast, fall into three broad categories - black
box models, decision process models and personal variable models.
Black Box models - do not consider internal variables. They focus on inputs and
outputs without concerning themselves with the intervening mental processes,
which might determine the outcomes.
Decision process models - attempt a simple description of the stages
consumers' progress through in reaching purchasing decisions. Most are variations
on the classic problem solving/decision making process of: Define problem -
generate alternative solutions - evaluate alternatives - decide - implement -
monitor. These approaches give a sound basis for marketers seeking to devise
strategies that are appropriate for each stage. Inevitably they are not strong on
explanation or prediction without considerable elaboration, which makes them,
falls into the comprehensive model category.
Personal variable models - the personal variable models omit external variables.
So these models focus on the mental processes of decision-making - internal
elements and processes such as perception, motivation, beliefs and values. One
classic example of the personal variable model is the fisheye model, summarized as
A, = B, o,
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Where A0 = the attitude towards object o8, = the strength of belief about o a, =
the evaluation aspects of 6 n = the number of beliefs Study on Consumer
Behaviour
Individual Determinants of Consumer Behaviors
Psychological Factors Influencing The Buying Decision Process
"Psychological factors operating within individuals partly determine people's
general
Behaviour and thus influence their behaviour as consumers.
The primary psychological influences on consumer behaviour are:
• Perceptions
• Motives
• Ability and knowledge
• Attitudes
• Personality
Even though these psychological factors operate internally, it will become
apparent that consumers are also very much affected by social forces outside the
individual"
CONSUMER BEHAVIOUR: LEARNING AND MEMORY
Learning is a change in behaviour that is caused by experience.
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Learning can occur through simple associations between a stimulus and response,
or via a complex series of cognitive activities
Behavioral learning theories assume that learning occurs responses to
Classical conditioning occurs when a stimulus that naturally elicits a response (an
unconditioned stimulus) is paired with another stimulus that does not initially
elicit this response. Over time, the second stimulus (the conditioned stimulus)
comes to elicit the response as well
Study on Consumer Behavior
This response can also extend to other, similar stimuli in a process known as
stimulus generalization. This process is the basis for such marketing
strategies as licensing and family branding, where a consumer's positive
associations with a product are transferred to other contexts,
Operant or instrumental conditioning
Occurs as the person learns to perform behaviour that produce positive
outcomes and avoid those that result in negative outcomes. While classical
conditioning involves the pairing of two stimuli, instrumental learning
occurs when reinforcement is delivered following a response to a stimulus.
Reinforcement is positive if a reward is delivered following a response. It is
negative if a negative outcome is avoided by not performing a response.
Punishment occurs when a response is followed by unpleasant events.
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Extinction of the behaviour will occur if reinforcement is no longer
received.
Cognitive learning occurs as a result of mental processes. For example,
observational learning takes place when the consumer performs behaviour
as a result of seeing someone else performing and being rewarded for it.
Memory refers to the storage of learning information. The way
information is encoded when it is perceived determines how it will be
stored in memory. The memory systems known as sensory memory,
short-term memory, and long-term memory each play a role in retaining
and processing information from the outside world.
Information is not stored in isolation: it is incorporated into knowledge
structures, where it is associated with other related data. The location of
product information in associative networks and the level of abstraction at
which it is coded, help to determine when and how this information will
be activated at a later time. Some factors that influence the likelihood of
retrieval include the level of familiarity with an item, its salience (or
prominence) in memory, and whether the information was presented in
pictorial or written form.
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Products also play a role as memory markers: they are used by consumers
to retrieve memories about past experiences (autobiographical memories) and are
often valued for their ability to do this. This function also contributes to the use
of nostalgia in marketing strategies.
Memory for product information can be measured through either
recognition or
Recall techniques. Consumers are more likely to recognize an advertisement
if it is presented to them than to recall one without being given any cues." (See
Solomon 1994 137-138) Learning theories. Marketing and Involvement
Theory Examples of low involvement Examples of high involvement
Free sample of hair shampoo delivered Faced with mounting debts, individual
through front door and stored in responds to advertisement offering
bathroom. When usual shampoo runs to solve the problems with a single out,
trial pack is used, found acceptable loan. Learns the cost of borrowing and
purchased (or not).From loan sharks
A positive emotional response is the generation of higher-order
Generated by the use of a particulate conditioning allows the customer to
Classical pop tune. This becomes associated have positive feelings
about a Conditioning with a product, even though the product, which
may be more person does not consciously pay expensive than
alternatives, e.g. attention to the advertising luxury goods.
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A common brand of baked beans id Clothes purchased and worn give
Operant purchased. They taste 'OK1. The rise to numerous complements,
conditioning consumer continues to purchase that Further cloths of the same
label are brand bought.
An individual learns that Amstrad Keen cooks learn about various
Iconic rote makes personal computers without makes of kitchen knives by
careful learning ever consciously focusing on PCs or reading of
advertisements with they Amstrads advertisements find enjoyable Study on
Consumer Behaviour
The Guardian' unavailable at Commuter, distressed by daily Insight
newsagents when on holiday, difficulties with parking decides to learning
Customer buys 'the Independent' purchase mountain bike to solve the instead
problem Consumer spots 'low salt, low sugar' Consumers as a family, having won
Latent beans on the supermarket shelf, the pools, decide that they can now
learning Remembers healthy eating afford their 'dream car. Choose advertisements
and purchases tin model they have always wanted A child learns parental roles by
Individual observes reaction to a Vicarious observation but without really friend s
new style sutt before deciding learning thinking about it to purchase Car taken
to garage for service. Commuter finds level of smoke Customer offered a new
higher-Experimental pollution on upper deck of bus too powered model to use for
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the day-learning offensive to tolerate and decides to Impressed by the car, the
consumer travel on lower deck decides to move up the range when the time comes
to change car. Consumer Decision Processes The most common, everyday
problem solving sequence is:
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In the marketing context, Engel, Blackwell and Minored suggest
that this becomes:
S Information search S Evaluate alternatives S Purchase and Outcomes
Stage I: Information Search
The first step in this stage is often internal memory search to establish whether
the individual possesses enough information about the available options to make a
decision without further action.
In low involvement consumer decisions this may often be the case, but external
search is more usual with high involvement purchases.
Opinion leadership and word-of-mouth communication will be significant at this
stage, as well as the more formal marketing and advertising messages. Similarly,
past learning, stored in the memory system, is shown to be a significant source
even in extended problem solving situations.
The information search stage is also affected strongly by individual differences and
environmental factors e.g. the traits and orientation of some individual’s means that
they have the personality characteristic of caution - such people will tend to
conduct extensive and detailed information search. Similarly families and reference
groups are likely to make significant contributions to the amount and style of search
conducted.
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Many of our decisions are often made on less than complete information. The
important point is that the purchaser feels that enough information has been
gathered.
Study on Consumer Behavior
In the light of the differences between high and low involvement purchasing,
the perception of the value of continued search is likely to be significantly higher
in high involvement decisions.
The external search is dominated by marketing messages and the information
so gathered should be fed into the memory system via processes similar to the
research on Perception:
Exposure Attention Comprehension Acceptance Retention
Stage 2: Alternative evaluation
"Humans are apparently so constituted that they cannot refrain from evaluating,
judging, appraising or valuing almost everything that comes within their
purview".
Note the importance of the role of criteria in the process of evaluation - the
obvious criterion for a purchasing decision is 'did it achieve its objective?'
However a number of sub issues are involved here:
What objective? It is likely that we have multiple objectives.
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Internal or external outcomes? These possibly conflicting objectives can be
seen as being internal or external to the decision-making unit - we may satisfy our
family but not impress our friends.
When should we measure outcomes? Here we may be looking at the
difference between first impressions and longer-term satisfaction
Do we look for unexpected outcomes?
The criteria we use stem from our values, beliefs, attitudes and intentions.
However it is not unusual for people to seek a single measure that will pin down
the payoffs required. Satisfaction is affected by a number of factors - motivation,
values, expectancy, and self-image - so a variety of criteria may be necessary
against which to judge the effectiveness of our purchase. The reality appears to
be that people adopt some form of compensation strategy in which a perceived
weakness in one attribute can be offset by strength in others.
"Alternative evaluation represents the decision-making stage in which
consumers evaluate alternatives to make a choice. During this stage consumers
must
36
Determine the evaluative criteria to use for judging alternatives
Decide which alternatives to consider
Assess the performance of considered alternatives
Select and apply a decision rule to make the final choice.
1) Determine the evaluative criteria to use for judging alternatives
Consumers may employ a number of different evaluative criteria, including: price,
brand name and country of origin, in making their decision.
These criteria will usually vary in their relative importance or salience. Price
may be a Dominant dimension in some decisions and yet rather unimportant in
others. The salience of evaluative criteria depends on a host of factors: e.g.
situational, product and individual factors.
2) Decide which alternatives to consider
Consumers must determine the set of alternatives from which a choice will be
made (that is, the consideration set).
(3) Assess the performance of considered alternatives
Consumers may also rely on their existing knowledge for judging how well
alternatives Perform along the salient evaluative criteria. The cutoffs or ranges of
acceptable values That consumers impose for evaluative criteria will strongly
determine whether a given Alternative is viewed as acceptable. Study on Consumer
Bead four
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(4) Select and apply a decision rule to make the final choice
Finally, the strategies and procedures used for making the final choice are
called decision rules. Decision rules vary considerably in their complexity.
Another important distinction is between compensatory and no compensatory
decision rules.
Non-compensatory rules, such as lexicographic, elimination by aspects, and
conjunctive do not permit product strengths to offset product weaknesses. In
contrast compensatory rules do allow product weaknesses to be compensated by
product strengths.
Non-compensatory rules:
Lexicographic under this decision strategy, brands are compared on the
most important attribute. If there is a tie, then the second the most important
attribute is considered; whilst ties continue, then comparisons continue down
the list of attributes in order of importance.
Elimination by Aspects: Very similar to lexicographic procedure. As before,
brands Are first evaluated on the most important attribute. Now, however
the consumer Imposes 'cutoffs' e.g.' must be under £2'; 'must be at least
nutritious'.
38
If only one brand meets the cutoff on the most important attribute it is
chosen. If several brands meet the cutoff, then the next most important
attribute is selected and the process continues until the tie is broken.
Conjunctive: Cutoffs are also important for the conjunctive decision
procedure. Cutoffs are established for each salient attribute. Each brand is
compared, on at a time Against this set of cutoffs. Processing by brand is required.
If the brand meets the cutoffs For all attributes, then it is chosen. Failure to meet
the cutoff for any attribute leads to In contrast compensatory rules do allow
product weaknesses to be compensated by Product strengths. There are two types
of compensatory rules: simple and weighted additive. Study on Consumer Behaviour
1. Simple additive: here the consumer simply counts or adds the
numberoftimes each alternative is judged favorably in terms of the set of
sailevaluativecriteri. The alternative having the largest number of positive
attributes is chosen.
2. Weighted additive: a more complex form of the compensatory rule. The
consumer engages in more refined judgments about the alternatives' performances
simple whether it is favorable or unfavorable.
The relative salience of relevant evaluative criteria is also incorporated into the
decision rule. In essence, a weighted additive rule is equivalent to the
multiattribute attitude models
39
Phased decision strategies: These involve the sequential use of at least
two different decision rules as a means of coping with a large number of
choice alternatives. Phased strategies typically consist of a two-stage
process.
In the initial stage, one type of rule is used as a screening device to help
narrow down the choice set to a more manageable number. A second
decision rule is then applied to the remaining alternatives to make the final
choice.
Significance of Consumer Behaviour: The study of Consumer
Behaviour is the study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption related items. It
includes the study of
What they buy
Why they buy it
When they buy it
Where they buy it
How often they buy it
How often they use it
Study on Consumer Behavior
40
Consumer Behavior focuses on how and why consumers make decisions to buy
goods and services. Consumer Behaviour research goes far beyond these facets of
consumer behaviour and encompasses all of the behaviour that consumers display
in searching for. Purchasing, Using, Evaluating and Disposing of products and
services that they will satisfy their needs
Definition of Consumer Behaviour:
Consumer behaviour is defined as activities undertake when obtaining, consuming,
and disposing of products and services. Simply stated, consumer behaviour has
traditionally been thought of as the study of "Why people buy". With the premise
that it becomes easier to develop strategies to influence consumers once a
marketer knows why people buy certain products or brands.
Consumer behaviour also can be defined as a field of study, focusing on
consumer activities. As the study of consumer behaviour has evolved, so has its
scope. Historically, the study of consumer behaviour focused on buyer behaviour
or "Why people buy". More recently, researchers and practitioners have focused
on Consumption analysis, why and how people consume in addition to why
and how they buy. Analysis of consumption behaviour represents a broader
conceptual framework than buyer behaviour does because it includes issues that
arise after the purchase process occurs. There are several activities included in the
definition of consumer behaviour - obtaining, consuming, and disposing.
Obtaining: It refers to the activities leading up to and including the
41
Purchase or receipt of a product.
Consuming: It refers to how, where, when and under what circumstances
consumers use products.
Disposing: It includes how consumers get rid of products and packaging.
Slav on Consumer Behaviour
42
CHAPTER-IV
DATA ANALYSIS
43
DATA ANALYSIS
1. A question was asked to the consumers whether they consume soft drinks
or not and the following are the results.
ATTRIBUTES No. OF
RESPONDENTS
% OF
RESPONDENT
S Yes 95 95% No 05 05%
The above table depicts that 95% of the consumers consume soft
drinks.
yes
no
I. A question was asked to the consumers to know how often they consume
ATTRIBUTES No. OF
RESPONDENTS %
OF RESPONDENTS
44
Daily 32 34%
Twice in a week 43 45%
Once in a week 13 14%
Once in a month 07 07%
The above table depicts that 45% of the consumers consume soft drink twice in
a week and the major percentage of consumers consume soft drink daily.
chart 2
Daily
Twice in aweek
Once in a week
Once in amonth
3. A question was asked to the consumers that about their favourite soft drink
and the following are the results.
ATTRIBUTES No. OF RESPONDENTS % OF RESPONDENT
45
S Coca-Cola 14 15%
ThumsUp 34 36%
Sprite-Pepsi 33 03 35% 03%
7 up 02 02%
Dew 03 03%
Others 06 06%
The above table depicts that 36% of the Consumers consume ThumsUp, 35%
of the Consumers consume Sprite, 15% of Consumers consume Coca-Cola.
chart 3
Coca-Cola
ThumsUp
Sprite-Pepsi
7 up
Dew
Others
4. A question was asked to the Consumers whether the product price is
Affordable or not and the following are the results.
46
ATTRIBUTES No. OF RESPONDENTS
% OF RESPONDENTS
Affordable 71 75%
Costly 12 13%
Lesser 06 06%
Can't say 06 06%
The above table depicts that 75% of respondents can afford, 13% of
respondents feel the product is costly, 6% of the respondents feel the product is
less costlier than it should be. 6% of the respondents cannot say about the
product
price.
Affordable
Costly
Lesser
Can't say
5. A question was asked to the Consumers about (he reasons for preferring
The drink and following are the results.
ATTRIBU No. OF % OF
47
TES RESPONDENTS RESPONDENT!
Taste 38 40%
Quenching thirst
09 09%
Strong 1 I 13%
Gas Content
09 09%
Others 28 29%
The above table depicts that 40% of the Consumers consume the product
preferring the Taste, 09% of the consumers consume the product to quench the
thirst and 09% of the consumers consume the product for its gas content.
chart 5
Taste
Quenchingthirst
Strong
Gas Content
Others
6. A question was asked to the consumers about the role of flavour in the
Product promotion and following are the results.
48
ATTRIBUTES No.
OF RKSPONDEINTS
% OF RESPONDENT
Efficient 50 53%
Very Efficient 11 35%
Neither Efficient Nor Inefficient 07 07% Inefficient 05 05%
The above table depicts that 53% of the consumers feel the flavour is efficient,
35% of the consumers feel the flavour is very efficient, 7% of the consumers
feel the flavour is neither efficient nor inefficient, 5% of the consumers feel the
flavour is inefficient.
chat 6
Efficient
Very Efficient
Neither EfficientNor Inefficient
Inefficient
7. A question was asked to the Consumers about their opinion on packaging
of the product and the following are the results.
49
ATTRIBUTES
No. OF RESPONDENTS
% OF RESPONDENTS
Very Good 14 15%
Good 71 74%
Neither Good Nor Bad 10 11% Bad 00 00%
chart 7
V ery Good
Good
Neither GoodNor B ad
B ad
8. A question was asked to the consumers about the impact on Product
Promotion and following are the results.
50
chart 8
Very Efficient
Efficient
Neither EfficientNor Inefficient
Inefficient
ATTRIBUTES No. OF RESPONDENTS
% OF RESPONDENTS
Very Efficient 24 25%
Efficient 51 54%
Neither Efficient Nor Inefficient 13 14% Inefficient 07 07%
51
9. A question was asked to the consumers about the product availability and
the following are the results.
ATTRIBUTES No.
OF RESPONDENTS
% OF RESPONDENTS
With in the reach 72 75%
So far 13 14%
Difficult to get 10 13%
-
chart 9
With in thereach
So far
Difficult to get
52
10. A question was asked to the consumers about the media, which shows
impact on product promotion, and the following are the results.
ATTRIBUTES No. OK RESPONDENTS % OF RESPONDENT*
T.V 60 63%
News Paper 05 05%
Hoarding 14 14%
Internet 16 17%
53
chart 10
T.V
News Paper
Hoarding
Internet
54
CHAPTER-V
FINDINGS CONCLUSIONS & SUGGESTIONS
FINDINGS CONCLUSIONS & SUGGESTIONS
The study undertaken has highlighted certain facts. They are
1. The important factors that influence the purchase decisions for a soft
drink is the taste and flavour.
2. Besides the factors mentioned above the other important factors that
Influence the purchase decisions were found to be advertising and
Price.
3. Sales promotion program taken up by the company is also popular
Among the respondents. The product is very much popular for its easy
55
availability
6,2 SUGGESTIONS
Suggestions have been made based on certain factors as highlighted by the
study.
1. Efficient Promotional activities pertaining to consumers are to
be taken up.
2. Company should improve the quality of packaging.
3. Introduction of a new flavour is suggested to make the product
promotion more efficient.
4. It is suggested that the company should increase the usage of
Internet for further Promotional activities.
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QUESTIONNARE
STUDY ON CONSUMER BEHAVIOUR
1 ) Whether you consume soft drinks or not?
• Yes • No
2) How often will you consume soft drinks?
• Daily
• Once in a week
3) What is your favourite soft drink?
• Coca-Cola • Thums Up
• Twice in a
week
• Once in a
month
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• Pepsi • 7up
• Others
4) Whether the product price is Affordable or not?
• Affordable • Costly
• Laser • Can't say
5) What is the reasons for preferring the drink?
• Taste • Quenching
thirst
• Strong • Gas
Content
• Others
6) What is the role of flavour in the Product promotion?
• Efficient •
Very Efficient
• Neither Efficient Nor Inefficient •
Inefficient
58
7) What is your opinion on packaging of the product?
• Very Good • Good
• Neither Good Nor Bad •
Bad
8) What is the impact on Product Promotion?
• Very Efficient • Efficient
• Neither Efficient Nor Inefficient • Inefficient
9) What is the product product availability?
• With in the reach • So far • Difficult to get
10) What about the media, which shows impact on product promotion?
• T.V • Newspaper
• Hoarding •Internet
BIBLIOGRAPHY
1) CONSUMER BEHAVIOUR - Hawkins Best Coney.
2) CONSUMER BEHAVIOUR - Matin Khan.
WEBSITES WWW.COCA-COLA