INTRODUCTION Consumer buying behaviour The study of how and why people purchase Products is termed consumer buying behavior. The term covers the decision-making processes from those that precede the purchase of goods or services to the final experience of using the product or service. Models of consumer buying behavior draw together th e various influences on, and the process of, the buying d ecision. The y attempt to understand the proverbial 'black box' of what happens within the consumer between his or her exposure to marketing stimuli and the actual decision to purchase. The essence of the model is that it suggests consumers will respond in particular ways to different stimuli after they have 'processed' those stimuli in their minds. In more detail, th e model suggests that factors external to the consumer will act as a stimulus for behavior, but that the consumer's personal characteristics and decision-making process will interact with the stimulus before a particular behavioral response is generated. It is called the 'black box' model because we still know so little about how the human mind works. We cannot see what goes on in the mind and we don't really know much about what goes on in there, so it's like a black box. As far as consumer behavior goes, we know enough to be able to identify major internal influences and the major steps in the decision-making process which consumers use, but we don't really know how consumers transform all these data, together with the stimuli, to generate particular responses. Turn now to the following reading to begin looking at your text's introduction to buyer behavior. Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or don‟t do) But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believe will be of in terest to customers.
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decision often (but not always) requires the consumer to engage in an extensive decision-making
process.
* Major Re-Purchase - these purchase decisions are also important to the consumer but the
consumer feels confident in making these decisions since they have previous experience
purchasing the product.
For marketers it is important to understand how consumers treat the purchase decisions they
face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major
New Purchase), their marketing strategy may vary greatly from a company targeting customers
who view the purchase decision as routine. In fact, the same company may face both situations
at the same time; for some the product is new, while other customers see the purchase as routine.
The implication of buying behavior for marketers is that different buying situations require
different marketing efforts.
Why Consumers Buy
Tutorial, customers make purchases in order to satisfy needs. Some of these needs are basic and
must be filled by everyone on the planet (e.g., food, shelter) while others are not required for
basic survival and vary depending on the person. It probably makes more sense to classify needsthat are not a necessity as wants or desires. In fact, in many countries where the standard of
living is very high, a large portion of the populat ion s income is spent on wants and desires
rather than on basic needs.
In this tutorial when we mention the consumer we are referring to the actual buyer, the person
spending the money. But is should also be pointed out that the one who does the buying is not
necessarily the user of what is bought and that others may be involved in the buying decision in
addition to the actual buyer. While the purchasing process in the consumer market is not as
complex as the business market, having multiple people involved in a purchase decision is not
unusual. For example, in planning for a family vacation the mother may make the hotel
reservations but others in the family may have input on the hotel choice. Similarly, a father may
distribute products. The fact that lifestyle is so directly tied to marketing activity will be further
examined as we discuss developing target market strategies (See Targeting Markets Tutorial).
Roles
Roles represent the position we feel we hold or others feel we should hold when dealing in a
group environment. These positions carry certain responsibilities yet it is important to
understand that some of these responsibilities may, in fact, be perceived and not spelled out or
even accepted by others. In support of their roles, consumers will make product choices that
may vary depending on which role they are assuming. As illustration, a person who is
responsible for selecting snack food for an office party his boss will attend may choose higher
quality products than he would choose when selecting snacks for his family.
Marketing Implications:
Advertisers often show how the benefits of their products aid consumers as they perform certain
roles. Typically the underlying message of this promotional approach is to suggest that using theadvertiser s product will help raise one s status in the eyes of others while using a competitor s
product may have a negative effect on status.
Motivation
Motivation relates to our desire to achieve a certain outcome. Many internal factors we have
already discussed can affect a customer s desire to ac hieve a certain outcome but there are
others. For instance, when it comes to making purchase decisions customers motivation could
be affected by such issues as financial position (e.g., Can I afford the purchase?), time
constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my
money s worth?), and perceived risk (e.g., What happens if I make a bad decision?).
marketers use strong research efforts in an attempt to identify differences in how sub-culture
behaves. These efforts help pave the way for spotting trends within a sub-culture, which the
marketer can capitalize on through new marketing tactics (e.g., new products, new sales
channels, added value, etc.).
Other Group Membership
In addition to cultural influences, consumers belong to many other groups with which they share
certain characteristics and which may influence purchase decisions. Often these groups contain
Opinion Leaders or others who have major influence on what the customer purchases. Some of
the basic groups we may belong to include:
* Social Class – represents the social standing one has within a society based on such factors
as income level, education, occupation
* Family – one s family situation can have a strong effect on how purchase decisions are made
* Reference groups – most consumers simultaneously belong to many other groups with
which they associate or, in some cases, feel the need to disassociate
Marketing Implications:
Identifying and understanding the group s consumers belong to is a key strategy for marketers.Doing so helps identify target markets, develop new products, and create
appealing marketing promotions to which consumers can relate. In particular, marketers seek to
locate group leaders and others to whom members of the group look for advice or direction.
These opinion leaders, if well respected by the group, can be used to gain insight into group
behavior and if these opinion leaders accept promotional opportunities could act as effective
spokespeople for the marketer s products.
Purchase Situation
A purchase decision can be strongly affected by the situation in which people find themselves. In
general, a situation is the circumstances a person faces when making a purchase decision, such as
the nature of their physical environment, their emotional state, or time constraints. Not all
situations are controllable, in which case a consumer may not follow their normal process for
making a purchase decision. For instance, if a person needs a product quickly and a store does
not carry the brand they normally purchase, the customer may choose a competitor s product.
Marketing Implications:
Marketers can take advantage of decisions made in uncontrollable situations in at least two ways.
First, marketers can use promotional methods to reinforce a specific selection of products when
the consumer is confronted with a particular situation. For example, automotive services can be
purchased that promise to service vehicles if the user runs into problems anywhere and at
anytime. Second, marketers can use marketing methods that attempt to convince consumers that
a situation is less likely to occur if the marketer s product is used. This can also be seen withauto products, where marketers explain that using their product will prevent unexpected damage
to their vehicles.
How Consumers Buy
So now that we have discussed the factors influencing a consumer s decision to purchase, let s
examine the process itself. This process is presented in a sequence of 5 steps as shown below.
However, whether a consumer will actually carryout each step depends on the type of purchase
decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to
the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort is
involved in making a purchase decision. In cases of routine, brand loyal purchases consumers
may skip several steps in the purchasing process since they know exactly what they want
allowing the consumer to move quickly through the steps. But for more complex decisions, such
as Major New Purchases, the purchasing process can extend for days, weeks, months or longer.
So in presenting these steps marketers should realize that, depending on the circumstances
surrounding the purchase, the importance of each step may vary.
1. Need/Want/Desire is recognized
In the first step the consumer has determined that for some reason he/she is not satisfied (i.e.,consumer s perceived actual condition) and wants to improve his/her situation (i.e., consumer s
perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the
consumer that food or drink is needed. External factors can also trigger consumer s needs.
Marketers are particularly good at this through advertising; in-store displays and even the
intentional use of scent (e.g., perfume counters). At this stage the decision-making process may
stall if the consumer is not motivated to continue (see Motivation above). However, if the
consumer does have the internal drive to satisfy the need they will continue to the next step.
2. Search for Information
Assuming consumers are motivated to satisfy his or her need, they will next undertake a search
for information on possible s. The sources used to acquire this information may be as simple as
remembering information from past experience (i.e.,
memory) or the consumer may expend considerable effort to locate information from outside
sources (e.g., Internet search, talk with others, etc.). How much effort the consumer directs
toward searching depends on such factors as: the importance of satisfying the need, familiarity
with available s, and the amount of time available to search. To appeal to consumers who are at
the search stage, marketers should make efforts to ensure consumers can locate information
related to their product. For example, for marketers whose customers rely on the Internet for
information gathering, attaining high rankings in search engines has become a critical marketing
objective.
3. Evaluate Options
Consumers search efforts ma y result in a set of options from which a choice can be made. It
should be noted that there may be two levels to this stage. At level one the consumer may create
a set of possible s to their needs (i.e., product types) while at level two the consumer may be
evaluating particular products (i.e., brands) within each . For example, a consumer who needs to
replace a television has multiple s to choose from such as plasma, LCD and CRT televisions.
Within each type will be multiple brands from which to choose. Marketers need to understand
how consumers evaluate product options and why some products are included while others arenot. Most importantly, marketers must determine which criteria consumers are using in their
selection of possible options and how each criterion is evaluated. Returning to the television
example, marketing tactics will be most effective when the marketer can tailor their efforts by
knowing what benefits are most important to consumers when selecting options (e.g., picture
quality, brand name, screen size, etc.) and then determine the order of importance of each
benefit.
4. Purchase
In many cases the chosen by the consumer is the same as the product whose evaluation is the
highest. However, this may change when it is actually time to make the purchase. The
“intended” purchase may be altered at the time of purchase for many reasons such as: the product
is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson
mentions a competitor s offer), the customer lacks the necessary funds (e.g., credit card not
working), or members of the consumer s reference group take a negative view of the purchase
(e.g., friend is critical of purchase). Marketers whose product is most desirable to the consumer
must make sure that the transaction goes smoothly. For example, Internet retailers have worked
hard to prevent consumers from abandoning online purchase (i.e., online shopping carts) by
streamlining the checkout process. For marketers whose product is not the consumer s selected
performance monitoring, Tuning Network Operating System and advise action plan.
The traditional outsourcing method has had its celebrated failures. Regular reports are publishedabout cost overruns, contract disputes, and poor customer satisfaction. Many of these failures
have been due to inflexibility of the sourcing contract, which may not easily change to respond
to market pressures and business requirements. It is commonly known in the service industry and
outsourcing is cyclic, with companies moving from in to out source and back again. This is
extremely and distracts the IT organization from core business.
Organizations need to be able to change the financial model, adjust the IT service portfolio and
alter the technology landscape. The blame for this is not entirely in the hands of the service
provider. While traditional outsourcing places responsibility on the provider, in reality, a
sourcing method has demands on both the organization and the provider.
: Often existing internal IT departments and business are not integrated. A gap in knowledge
exists between IT capability and the business's requirements. Sourcing providers are brought in
to solve this problem but are only able to understand the organization at a snapshot in time.
Failure to properly prepare the IT organization: Sourcing is undertaken to resolve a
problem with the current IT service delivery. The provider has the task of reforming the delivery
method in an environment that the organization had been unable to do for many years.
Adversarial provider selection and contract negotiation process: The use of outsourcing
for cost reduction as the principle method for evaluating a sourcing solution makes a conflicting
relationship between organization and provider.
Theoretically derived service levels: A lack of historical knowledge of current services
levels and capabilities puts the onus on the provider the commit to services levels that have no
baseline reality
Poorly planned transition and implementation: Often the Eclat Innovationsolution designand transition phases are performed by completely separate teams (e.g. organization senior
management and provider sales vs. organization technical staff and provider delivery staff).
Transition is often less that 20% of the solution design effort, but can make or break the success
of the sourcing solution.
Smart Sourcing is an evolution of the outsourcing that mitigates the limitations of the traditional
sourcing methodology to provide a win-win relationship for the business and the provider over
the long term. There are six core principles that serve to guide the implementation and strategy
for the sourcing relationship.
The three principles of implementation are:
Preparation of the enterprise for outsourcing by designing the existing IT service
Systems Liaison : While the core of systems consulting includes people with expertise in
programming and other technical fields, there also are jobs for people to serve as liaisons
between the "business side" and the "technical side." These liaison people are able to understand
the business requirements for a given systems project, and to communicate them cogently and
logically to the technical staff. Likewise, the liaison people must know enough about
programming, systems design and systems implementation to advise the business side on their
options and to manage their expectations realistically.
This liaison role is also very important within companies that have their own technical staffs, but
rarely gets assigned as a full time job. Instead, it frequently ends up being an unofficial side job
for people who acquire an aptitude for it. In Financial Services, the systems liaison role regularlyfalls to people in the financial organization, especially departmental controllers.
REVIEW OF LITERATURE
Definition of Cellular/Mobile phone
(commonly "mobile phone" or "cell phone" or "handphone") is a long-range, portable
electronic device used for mobile communication. In addition to the standard voice function of a
telephone, current mobile phones can support many additional services such as SMS for text
messaging, email, packet switching for access to the Internet, and MMS for sending and
receiving photos and video. Most current mobile phones connect to a cellular network of base
stations (cell sites), which is in turn interconnected to the public switched telephone network
(PSTN) (the exception is satellite phones.Cellular telephone is also define as a type of short-
wave analog or digital telecommunication in which a subscriber has a wireless connection from a
mobile telephone to a relatively nearby transmitter. The transmitter's span of coverage is called a
cell. Generally, cellular telephone service is available in urban areas and along major highways.
As the cellular telephone user moves from one cell or area of coverage to another, the telephone
is effectively passed on to the local cell transmitter. A cellular telephone is not to be confused
with a cordless telephone (which is simply a phone with a very short wireless connection to a
local phone outlet). A newer service similar to cellular is personal communications services
(PCS).
Brand preferences and advertisement
Students leant about cellular phone from many sources, mainly from friends and families,
through advertisement and from their own experience. Whether a promotion and advertising hurt
or help a brand is under-researched (Mela, Gupta & Lehman, 1997). In the long-run,
advertisement help brands by making consumer less price sensitive and more loyal. Exposure of
an ad is crucial to be effective in changing consumer knowledge, attitude and behaviour
(Evans,Moutinho & Van Raaj, 1996). And for the ad to be seen, it must grab the attention of its
target audience. „Ads originality as defined from Pietes, Warlop and Wedel, (2002) were easier
for customer to remember than ordinary ads by increasing attention to it. This thus increasedattention to the brand being advertised.However, regardless of the content, ads for brand leaders
are more successful due to the influence of the brand (Simon, 1970). Ads for less popular brands
may be less successful even though the content may be good.Liking towards the brand itself can
influence liking for the brand
(Hawkins, Best & Coney, 1992). However according to study by Biehal, Stephens and Curlo
(1992) whether consumers like or dislike an ad does not necessarily lead to brand acceptance or
rejection. So, even though consumers may like the ad that they see, it does not necessarily mean
that they will go out and buy the brand advertised.Usually the consumer uses their attitude
towards the ad (Aad) in brand choice equaled that of attitude towards the brands (AB).
Advertisers must remember that advertising messages are interpretend differently
between different genders (Maldonando, Tansuhaj & Muehling, 2003; Hogg & Garrow, 2003;
Putrevu, 2001).Prevoius study have proven that females were more likely to engagae inelaboration than men (Maldonado & Muehling, 2003). Hogg and Garrow (2003) found that
women paid more intention about the details of the characters of an ad when asked to analyze
advertising messages. They said that this may be explained by the fact that females have a
greater tendency than men to consider external information and information related to others.
Women are „comprehensive processors who try to gather all available information about the
found there was a significant association between human values (eg. hedonistic, achievement,
self-direction, conformity, security etc.), product preference and tangible attribute importance
with how consumers perceive the product (i.e tangible attributes) and how they evaluate the
product (i.e symbolic meaning,tangible/intangible attribute importance). Human values influence
the importance of the product s tangible attribute importances that are already important to
consumers.However perception of product performance on the salient attributes are more
important than actual performance (Mason & Bequette, 1998).Mowen and Minor (1998)
suggested that marketing managers should know the attributes that consumers expect in a
product and how positively or negatively they rate these attributes to help develop and promote a
successful product.Retailers need to be knowledgeable of the product attributes perceived as the
most important by each individual consumer group in order to build and maintain market share
(Warrington & Shim, 2000). It is the consumer who determines which attributes matter to them.Different consumer groups place different importance ondifferent attributes (Warrington &
Shim,2000).It was found that consumers categoriez as LP/SB (low product involvement/strong
brand commitment) placed greater importance on product attributes and product orientataions
than LP/WB (weak brand commitment) consumers, which placed the most importance on
price.Markerters should consider using advertisement, which may play a role in making
attributee important to consumers that might not have been considered before (Gwin & Gwin,
2003),Romariuk & Sharp (2003) suggested two objectives of short-term and long-term brand
building. In the short term, managers need to identify a specific attributes to be communicated to
the market,based on which message gave the best execution.The key aim is to develop likeable
advertisement.In the long-run,managers
need to build up a „bank of consumer perception about the brand to make it the one most often
thought of and make it difficult for competitors to have access to the minds of consumers
(Romariuk & Sharp, 2003).The brand name of the product itself is an important attribute. Brands
have both functional (product-related) and symbolic dimensions (del Rio,Vasquez & Iglesiaz,2001), On the product related benefit side, consumer evaluate product performance based on its
capabilities, usage effectiveness, value for money and reliability. The purchase and consumption
of products is increasing regarded by consumers as an indirect way of communication to improve
their self image and deliver certain impressions to other people in their environment (del
Rio,Vasquez & Iglesiaz, 2001), Therefore the brand name benefits perceived by consumers is
highly interrelated to the product-based benefits. Big brand means a better image and a better
product (del Rio,Vasquez & Iglesiaz, 2001), However, as mention earlier, Mason and Bequette
(1998) suggested that Similarly Myers (2003) concluded that brand equity might be influenced
by attribute knowledge more than consumer preference. This may be due to consumer biasness
and prejudice, Consumers product evaluations are influenced by memory. The biasness can be
reduced by having current information, experience and knowledge (Mason and Bequette ,1998).
Therefore, it s not surprising that brands that consumers believe offer superior value are most
preferred brands chosen often (Myers, 2003). Brands with higher equity resulted in greater
preferences and high market shares. Price is another form of attribute used by consumers to
evaluate a product. Price can sometimes be an indicator of quality; with a higher price indicating
higher quality (Mowen & Minor, 1998; Siu & Wong, 2002). Consumers perceive that a higher
price can be attributed to the higher cost of quality control (Siu & Wong, 2002). Someconsumers are highly price sensitive (elastic demand),whereby a high prices may shift
consumers to competitive brands (Mowen & Minor, 1998). Therefore price can have a positive
or negative influence on customers.
OBJECTIVE OF STUDY
PRIMARY
1. The need for an understanding of the organizational buying process has grown in recent years
due to the many competitive challenges presented in business-to-business markets. Since 1980
there have been a number of key changes in this area, including the growth of outsourcing, the
increasing power enjoyed by purchasing departments and the importance given to developing
partnerships with suppliers.
2. The organizational buying behavior process is well documented with many models depicting
the various phases, the members involved, and the decisions made in each phase. The basic five
phase model can be extended to eight; purchase initiation; evaluations criteria formation;
information search; supplier definition for RFQ; evaluation of quotations; negotiations;
supplier s choice; and choice implemen tation (Matbuy, 1986).
3. The buying centre consists of those people in the organizational that are involved directly or
indirectly in the buying process, i.e. the user, buyer influencer, decider and gatekeeper to who the
4. The future. Two activities which will be crucial to the future development of organizational
buying behaviour will be information technology and production technologies.
SCOPE OF THE STUDY
Consumer expectation, attitudes and perception about organic foods have or are currently being
studied. The EU-project OMIaRD project has produced the most comprehensive statistics so far
on the scope and dimensions of the organic market in Europe and will shortly provide more
detailed insights from focus group and laddering interviews with regular and occasional
consumers. Data sets are or will be soon available from survey based studies in several EU
countries. However, it is currently difficult to compare consumer surveys from different EU-
countries because a range of different questionnaires/survey approaches is used.
RESEARCH METHODOLOGY
Research Problem
To make a comprehensive study of Viveks & know the Buying behaviour & of Viveks
customers .
A) TYPE OF RESEARCH
Descriptive type research has used to complete the project. This research is base on factfinding enquires and the variables are totally independent and uncontrollable.
Primary data of research are collected from direct resources (customer of Viveks) through
questionnaire.
Secondary Data
Secondary Data which are used for research to know the history scope of Retail industry are
collected from already available resources like net and other sources
Universe
Universe of this research is Viveks customer of Delhi.
C) SAMPLING DESIGN
Random sampling is used for research project. I have given equal weight ages to my all
respondent and chose them randomly without any biased like gender, age, income culture.
D) SAMPLE SIZE
425 respondents has selected as sample size for research.
DATA REPRESENTATION TECHNIQUE AND TOOLS
Columns chart & Pie chart has used for representation
LIMITATION OF THE STUDY
The project has some limitations because it is totally based on efforts of individuals.
Peoples may be careless and may not give correct answer to the questions, because of so many
reasons.
It is totally based on personal efforts of individuals. Some of the consumers are unable to understand the questionnaire. Language is one of the worst problem, some of the consumers are unable to
understand English. Some consumers are not interested in filling questionnaire.