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ACKNOWLEDGMENT
A Project Work Is A Combination Of Views And Ideas And Suggestions And Contribution
Of Many People. Thus, One Of The Pleasant Parts Of The Writing. The Report Is The
Opportunity To Thanks Those Who Contributes Towards Its Fulfillment.
I Am Also Very Thankful To The Entire Staff Of ………….. And Aqsr Qualified And Nabcb
Certified For Their Cooperation, Without Which Completion Of The Project Would Not
Have Been Possible
Saurabh
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Preface
Sincerely Believe That There Is No Better Place To Learn This Practical Side Of
Management Than The Industry Itself
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Name Of Topic Page No.
1
Introduction
2
Objective,Scope, Limitation
3
Research Methodology
4
Data Collection & Analysis
5
Findings Of Study
6
Conclusion & Suggestion
7
Questionnaire
8
Bibliography
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Introduction
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Consumer Behaviour
As, “The Dynamic Interaction Of Affect And Cognition, Behaviour, And The Environment By
Which Human Beings Conduct The Exchange Aspects Of Their Lives.”
“Consumer Behavior Refers To The Actions And Decision Processes Of People Who
Purchase Goods And Services For Personal Consumption.”
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Consumer Behavior Refers To “The Mental And Emotional Processes And The
Observable Behavior Of Consumers During Searching For, Purchasing And Post
Consumption Of A Product Or Service.”.
What Features Do They Look For? What Benefits Do They Seek Including Post-Purchase
Service? How Much Are They Willing To Pay? How Many Are Likely To Buy Now? Do
They Wait For Prices To Come Down? Do They Look For Some Freebies? The Answers To
These Can Be Investigated Through Consumer Research And Provide Manufacturers With
Important Data And Insight For Determining Computer Features And Promotional Strategy
Etc.14
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Activities Mentioned In The Definition. Traditionally, Consumers Have Been Defined Very
Strictly In Terms Of Economic Goods And Services Wherein A Monetary Exchange Is
Involved. This Concept, Over A Period Of Time, Has Been Broadened. Some Scholars Also
Include Goods And Services Where A Monetary Transaction Is Not Involved And Thus The
Users Of The Services Of Voluntary Organisations Are Also Thought Of As Consumers.
This Means That Organisations Such As Unicef, Cry, Or Political Groups Can View Their
Public As “Consumers.”
The Term Consumer Is Used For Both Personal Consumers And Organisational
Consumers And Represents Two Different Kinds Of Consuming Entities. The Personal
Consumer Buys Goods And Services For Her Or His Personal Use (Such As Cigarettes Or
Haircut), Or For Household Consumption
(Such As Sugar, Furniture, Telephone Service Etc.), Or For Just One Member Of The Family
(Such As A Pair Of Shoes For The Son), Or A Birthday Present For A Friend (Such As A
Pen Set). In All These Instances, The Goods Are Bought For Final Use, Referred As “End
Users Or “Ultimate Consumers.”
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2.3. Development Of Consumer Behaviour Field
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Other Important Factors That Contributed To The Development Of Consumer
Behaviour As A Marketing Discipline Include Shorter Product Life Cycles, Increased
Environmental Concerns, Interest In Consumer Protection, Growth Of Services Marketing,
Opening Up Of International Markets And The Development Of Computers And
Sophisticated Techniques Of Statistical Analysis.
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P's) To Serve Them Effectively. Role Or Importance Of Study Of Consumer Behaviour Can
Be Explained With Reference To The Points Stated As Under.-
1. Modern Philosophy
Achievement Of Goals
The Study Of Consumer Behaviour Is Not Useful For The Company Alone.
Knowledge Of Consumer Behaviour Is Equally Useful For Middlemen And Salesmen
To Perform Their Tasks Effectively In Meeting Consumers Needs And Wants
Successfully. Consumer Behaviour, Thus, Improves Performance Of The I Entire
Distribution System.
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Consumer Behaviour Studies Consumer Response Pattern On A Continuous Basis.
So, Marketer Can Easily Come To Know The Changes Taking Place In The Market.
Based On Current Market Trend, The Marketer Can Make Necessary Changes In
Marketing Programme To Adjust With Market.
6. Consumer Differentiation
8. Competition
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Based On Consumers' Expectations, More Competitive Advantages Can Be Offered.
It Is Useful In Improving Competitive Strengths Of The Company.
New Product Is Developed In Respect Of Needs And Wants Of The Target Market. In
Order To Develop The Best-Fit Product, Marketer Must Know Adequately About The
Market. Thus, The Study Of J Consumer Behaviour Is The Base For Developing A
New Product Successfully.
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Objective
Scope
Limitation
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objective
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scope
1. 1. 1 1 Nature And Scope Of Consumer Behaviour Questions That Reflect The Consumer
Behaviourwhat Products And Services Consumer Buy ?What Makes Them Buy Them ?When
These Are Bought ?From Where ?What Is The Frequency Of Buying ?How Often They Are Used
?
8. 8. 1 3 The Marketing Practices Followed By Reputed Marketer With Respect Toproducts , Prices,
Promotion, And Design With Just One Aim In Mind Profit Maximization
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limitation
2. Availability— Remembering The Most Recent Event…”What Have You Done For Me Lately???”
3. Regression To The Mean (A La Friedmans Permanent Income Hypothesis) Interesting Comments From
Frank On The “Merit Of Criticism” Vs “Praise” In Connection With Regression To The Mean…..P.
269!
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Research
Methodology
2.4. History Of Models And Its Focus Area Growth Of Consumer Behaviour
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Science Disciplines Are Applied To The Understanding Of Human Behavior As Far As
Consumption Is Concerned. By Its Very Nature,
Table-1
University Of Michigan
Perceived Risk.
Howard 1993
Kassarjan 1994
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Cox 1997 Perceived Risk
Green 1999
Stafford 2003
Zaltman
And
2005 Diffusion
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Sturdivant 2009
Model
2013 Model
Behavioral Economist.
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And Perception. As Many Concepts Of Consumer Behavior Are Contributed By
Diverse Disciplines, Sometimes The Research Findings Lack Consistency And Are
Disjointed, Attracting The Label Of Too Academic For The Entire Subject. Consumer
Research Should Be Related To The Problems That Are
Relevant For The Managers And The Findings Must Be Communicated Adequately.
Business Executives Should Also Learn To Value The Research Findings, And Use
Them In Their Decision Making Process. Researchers Should Not Lose Sight Of The
Marketing Realities While Un-Dertaking Their Research. One Should Have Some Trained
Individuals As Links Between The Marketing Practitioners And Research Workers. These
Individuals Can Be Called Social Science Technicians Or Social Engineers.
Consumer Behaviour Was A Relatively New Field Of Study During The Second Half
Of The 1960s Without A History Or Research Of Its Own. It Is In Fact A Subset Of Human
Behaviour And It Is Often Difficult To Draw A Distinct Line Between Consumer-Related
Behaviour And Other Aspects Of Human Behaviour.
The Discipline Of Consumer Behaviour Has Borrowed Heavily From Concepts Developed In
Other Disciplines Of Study Such As Psychology, Sociology, Social Psychology, Cultural
Anthropology And Economics.
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Needs Of Individuals, Their Actions And Responses To Different Promotional Messages
And Products And The Way Their Experiences And Personality Characteristics Influence
Product Choices.
Sociology Is The Study Of Groups. When Individuals Form Groups, Their Actions
Are Sometimes Quite Different From The Actions Of Those Very Individuals When They
Are Operating Alone. The Influences Of Group Memberships, Family And Social Class Oh
Consumer Behavior Are Important” For The Study Of Consumer Behavior.
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Learnt That Consumers Were Highly Complex As Individuals And Had Very
Different Psychological And Social Needs, Quite Apart From Their Survival Needs. They
Also Discovered That Needs And Priorities Of Different Consumer Segments Differed
Significantly. They Realized That To Design Products And Develop Suitable Marketing
Strategies That Would Satisfy Consumer Needs, They Had To First Study Consumers And
The Consumption Related Behavior In Depth. In This Manner, Market Segmentation And
Marketing Concept Paved The Way For The Application Of Consumer Behavior Principles
To Marketing Strategy.
Needs And Wants. The Trend Towards Increasing Number Of Dual Income Households And
Greater Emphasis On Convenience And Leisure Have Led To Emerging Needs For
Household Gadgets Such As Washing Machine, Mixer Grinder, Vacuum Cleaner And
Childcare Centres Etc. Mosquito Repellents Have Been Marketed In Response To A Genuine
And Unfulfilled Consumer Need.
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Suited To Their Wants And Needs. For Example, Consumer Studies Revealed That Many
Existing And Potential Shampoo Users Did Not Want To Buy Shampoo Packs Priced At Rs.
60 Or More And Would Rather Prefer A Low-Priced Sachet Containing Enough Quantity For
One Or Two Washes. This Finding Led Companies To Introduce The Shampoo Sachet,
Which Became A Good Seller.
In Case Of Consumer Durables Market In India Marketers Are Targeting The Higher
Income Class With Special Features In The Equipments As Well As Longer Warranty Period
And Of Course World Class Quality. In Case Of Semi Urban And Rural Areas Consumers
Who Prefer The Basic Offerings Or Slightly Modern Version Of The Product Are Targeted.
Once Unsatisfied Needs And Wants Are Identified, The Marketer Has To Determine
The Right Mix Of Product, Price, Distribution And Promotion. Here Too, Consumer
Behaviour Study Is Very Helpful In Finding Answers To Many Perplexing Questions.
Product: The Marketer Designs The Product Or Service That Would Satisfy
Unfulfilled Needs Or Wants. Further Decisions Regarding The Product Concern The Size,
Shape And Features. The Marketer Also Has To Decide About Packaging, Important Aspects
Of Service, Warranties And Accessories Etc.
Subsequently, Keeping In View The Consumer Preferences In Some Regions, The Company
Introduced Garlic, Sam Bar, Mixed Vegetables, Dale Atta Noodles, Etc.
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Marketers Must Decide What Price To Charge For The Product Or Service. These Decisions
Will Influence The Flow Of Revenue To The Company. Should The Marketer Charge The
Same, Higher, Or Lower Price In Comparison To Competition? Is The Consumer Price
Sensitive And Would A Lower Price Stimulate Sales? Should There Be Any Price With
Discounts? Do Consumers Perceive Lower Price Indicative Of Poor Quality?
To Answer Such Questions, The Marketer Must Understand The Way The Companys
Product Is Perceived By Consumers, The Importance Of Price As A Purchase Decision
Variable And How Different Price Levels Would Affect Sales. It Is Only Through Consumer
Behaviour Study In Actual Buying Situations That The Marketer Can Hope To Find Answers
To These Important Issues.
Be Combined With Sales Promotion? The Company Has To Know The Target
Consumers, Their Location, What Media Do They Have Access To And What Are Their
Media Preferences, Etc.
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Users Of Product To Users Of The Product In The Rural Areas As Well As In Semi Urban
Area For Absolute New Product. One Cant Use Same Sales Promotion Tool For Every Type
Of Product. Depending Upon The Product And Type Of Consumers Marketers Have To
Develop Different Promotional Strategies. Specifically In Case Of Consumer Durables Like
Television
Uttar Pradesh.
Place: The Next Decision Relates To The Distribution Channel, That Is, Where And
How To Offer Products And Services For Sale. Should The Products Be Sold Through All
The Retail Outlets Or Only Through Selected Ones? Should The Marketer Use Only The
Existing Outlets, Which Also Sell Competing Brands, Or Should New Exclusive Outlets
Selling Only The Marketers Brands Be Created? Is The Location Of Retail Outlets Important
From Consumers Point Of View? Should The Company Think Of Direct Marketing?
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Use In Social And Non-Profits Marketing: Consumer Behaviour Studies Are Useful
To Design Marketing Strategies By Social, Governmental And Not-For-Profit Organisations
To Make Their Programmes More Effective Such As Family Planning, Awareness About
Aids, Crime Against Women, Safe Driving, Environmental Concerns And Others. Unicef
(Greeting Cards), Red Cross And
Cry Etc. Make Use Of Consumer Behaviour Understanding To Sell Their Services And
Products And Also Try To Motivate People To Support These Institutions.
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2.8. Different Types Of Consumer Behaviour Models:
Who Will Evaluate All The Alternatives In Terms Of Cost And Value Received And Select
That Product/Service Which Gives Him/Her Maximum Satisfaction (Utility). Consumers Are
Assumed To Follow The Principle Of Maximum Utility Based On The Law Of
Diminishing Marginal Utility. It Is Assumed That With Limited 24
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Purchasing Power, And A Set Of Needs And Tastes, A Consumer Will Allocate His/Her
Expenditure Over Different Products At Given Prices So As To Maximize Utility.
The Law Of Equimarginal Utility Enables Him To Secure Maximum Utility From
Limited Purchasing Power.
1. Price Effect- Lesser The Price Of The Product, More Will Be The Quantity Purchased,
2. Lesser The Price Of The Substitute Product, Lesser Will Be The Quantity Of The Original
Product Bought (Substitution Effect)
(Income Effect).
The Assumption About The Rational Behaviour Of Human Beings Has Been
Challenged By The Behavioural Scientists. They Are Of The Opinion That While The
Predictions Are Useful, The Model Only Explains How A Consumer Ought To Behave. It
Does Not Throw Light On How Does The Consumer Actually Behave.
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A Complex Entity, A Puzzle, A Riddle. Hence, It Is Very Important To Have A Multi-
Disciplinary Approach To Understand Consumer Behaviour. Further, In Todays
Environment, Apart From The Various Psychological, Socio Cultural Determinants Of The
Consumer, It Has Been Observed That The Consumer Also Gets Influenced By Other
Marketing Variables Namely - Products (Ones Which Are Technologically Advanced),
Effective Distribution Network And Marketing Communication (Media And Promotion
Techniques). Thus Man Cannot Be Assumed To Be A
Rational Person And Price Is Not The Only Factor Which Influences His Purchase Decision.
Behavioural Scientists Have Opined That A Broader Perspective Has To Be Taken While
Trying To Analyse Buying Behaviour, Not Only Economics But The Role Played By Needs,
Motives, Personality And Self-Concept And Socio Cultural Factors Should Be Considered To
Understand What Will Be The Buyers Responses To Various Stimulus And In Turn What
Will Be The Effect Of This On Consumers Buying Behaviour.
Francesco Nicosia Was One Of The First To Develop Consumer Behaviour Model In
The Early 1960s And Shift Focus From The Act Of Purchase Itself To The More Complex
Decision Process That Consumers Engage In About Products And Services.
Nicosia Presented His Model In Flow Chart Format, Resembling The Steps In A
Computer Programme. Also, All Variables Are Viewed As Interactive, With None Being
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Inherently Independent Or Dependent Thus, The Model Describes A Circular Flow Of
Influences Where Each Component Provides Input To The Next.
The Model Contains Four Major Fields Or Components: (Field-I) The Firms Attributes And
Outputs Or Communications And The Consumers Psychological Attributes, (Feeld-Ii) The
Consumers Search For And Evaluation And Of The Firms Outputs And Other Available
Alternatives, (Field-Iii) The Consumers Motivated Act Of Purchase, And (Field-Iv) The
Consumers Storage Or Use Of The Product. Nicosia Assumes That The Consumer Is Seeking
To Fulfill Specific Goals And That Initially There Is No History Between The Consumer And
The Firm, So No Positive Or Negative Predispositions Towards The Firm Exist In The
Consumers Mind.
Figure-1
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Field 1 Attitude
Firms Consumers
Field 2
Attributes Msg Attributes
Exposure
Search
Experience Evaluation
Motivation
Field 4 Consumption
Or Storage
Decision
Purchasing
Behaviour
Field 3
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The Consumer Will Probably Become Motivated To Gain Information At This Point, And
Search Activity Is Likely To Occur. Some Search Activity Will Involve Searching Internal
Memory For Relevant Information About The Communication (Product, Service, Company
Etc.). External Search May Also Occur, Where The Consumer Visits Stores Or Reads
Reports Etc. This Is Likely To Lead To Evaluation. If The Consumer Processes Relevant
Information And Begins To Favour The Firms Brand, She/He Will Be Motivated, Leading
To Field-Iii, And If Nothing Intervenes, This Information Is Likely To Precipitate Shopping
Activity And Purchase Of The Brand. At This Point, A Number Of Outcomes Can Occur.
One Outcome Is That The Firm Receives Feedback (Field-Iv) And Another Is That The
Consumers Attitude Towards The Brand May Change Because She/He Gains Experience
With The Product During Storage And Use. This Experience Is Feedback To The Consumers
Predispositions.
Limitations Of Model:
The Nicosia Model Offers No Detail Explanation Of The Internal Factors, Which
May Affect The Personality Of The Consumer, And How The Consumer Develops His
Attitude Toward The Product. For Example, The Consumer May Find
The Firms Message Very Interesting, But Virtually He Cannot Buy The Firms Brand
Because It Contains Something Prohibited According To His Beliefs. Apparently It Is Very
Essential To Include Such Factors In The Model, Which Give More Interpretation About The
Attributes Affecting The Decision Process.
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Systematic Effort To Develop A Comprehensive Theory Of Buyer Decision-Making. This
Model Depicts And Creates A Distinction Among Three Stages Of Decision-Making.
1. Extensive Problem Solving: This Occurs When A Consumer Has Little Or No Prior
Knowledge, And Any Beliefs About The Brand Do Not Exist And She/She Has No Specific
Brand Preference. The Consumer Seeks Information Actively About Several Alternative
Brands In The Category.
0. Limited Problem Solving: In This Situation The Consumer Has Some Limited Knowledge
And Beliefs About The Available Brands. Because Of Limited Knowledge, She/He Is Not In
A Position To Evaluate Brand Differences To Establish A Preference. The Consumer Seeks
Some Comparative Brand Information, Although The Decision Criteria Are Quite Likely To
Be Fairly Established.
1. Routinised Response Behaviour: This Refers To A Situation When The Consumer Has
Well-Established Knowledge And Beliefs About The Brand And Other Alternatives In The
Category And Is Predisposed To Purchase A Specific Brand.
1. Inputs
3. Outputs
4. External Variables
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Inputs.
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The Central Element In The Howard-Sheth Model Includes Psychological Variables
That Are Assumed To Operate When The Consumer Is Involved In Decision-Making
Process. These Psychological Variables Are Treated As Simply Ideas, And Are Not Defined
Operationally Or Evaluated Directly. Some Of These Variables Are Perceptual In Nature
And Focus On How The Consumer Receives And Processes Information Gained From Input
And Other Parts Of The Model. For Instance, Stimulus Ambiguity Occurs When The
Consumer Is Not Sure About The Meaning Of Information Gained From The Environment
Perceptual Bias Occurs In Case The Consumer Distorts The Received Information So That It
Suits The Consumers Established Needs, Wants, Or Experiences.
Outputs
The Model Shows A Series Of Outputs That Are Similar In Name To Some Of The
Perceptual And Learning Construct Variables That Include Attention, Brand Comprehension,
Attitudes, Intentions, And Finally The Act Of Purchase.
External Variables
These Variables Are Not Directly Involved In The Decision-Making Process. The
Relevant External Variables Include Importance Of The Purchase, Consumers Personality
Traits, Time Pressure, And Availability Of Funds.
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Engel, Blackwell, Miniard Model (Formerly Ekb Model). Also Called
Open System
The Five Steps (Activities) Involved In The Decision Process Stage Are Briefly
Explained Hereunder:
(1) Problem Recognition: The Consumer Will Recognise A Difference Between His Or Her
Actual State And What The Ideal State Should Be. This May Occur On Account Of External
Stimuli, For Example A Young Girl Has Seen An Advertisement Of An Exhibition Of
American Diamonds And May Feel The Desire To Possess The Same Or Seeing A Beautiful
Dress Displayed In The Show-Room May Make A Youngster To Feel The Need For A New
Dress.
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(2) Information Search: Initially The Information Available With The Consumer May Be
Consistent To The Beliefs And Attitudes Held By Him Or Her. While Being Involved In An
Information Seeking Or Search Stage, The Consumer Will Try To Gather More Information
From Various Sources. These Sources Could Be Sales Persons, Personal Or Friends Or
Neighbours Or Mass Communication Media. The Information Processing Takes Place In
Various Stages. The Individual Gets Exposure Of The Stimuli Which May
Catch His Or Her Attention, Be Received And Stored Or Retained In Memory. This
Method Of Information Processing Is Selective In Nature And The Consumer Will
Accept The Information Which Is Conclusive To What Is Perceived By Them.
(3) Alternative Evaluation :Now The Individual Will Evaluate The Alternative Brands. The
Methods Used For Evaluating The Various Products Will Be Dependent On The Consumers
Underlying Goals, Motives And Personality. The Consumer Also Has Certain
(Predetermined) Beliefs About The Various Brands In Terms Of The Characteristics
Associated With The Different Brands. Based On These Beliefs The Consumer Will Respond
Either Positively Or Negatively Towards A Particular Brand.
(4) Choice: The Consumers Choice Will Depend On His Or Her Intention And Attitude. The
Choice Will Also Depend Upon Normative Compliance And Anticipated Circumstances.
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One Of The Very Few Aspects Common To All Of Us Is That We Are All
Consumers And The Reason For A Business Firm To Come Into Being Is The Presence Of
Consumers Who Have Unfulfilled, Or Partially Fulfilled Needs And Wants. Buyer Behaviour
Is An Extremely Important And Complex Subject For Any Marketer. At The Same Time, It
Is Important To Appreciate That There Is No Unified, Tested, And Universally Established
Theory On This Subject. Buyer Remains An Enigma And Her/His Mind Is Viewed As A
Black Box. Before Businesses Can Develop Marketing Strategies, They Must Understand
What Factors Influence Buyer Behaviour And How They Make Purchase Decisions To
Satisfy Their Needs And Wants. Understanding Buyer Behaviour And “Knowing Buyers”
Are Not That Simple. It Is Almost Impossible To Predict With One Hundred Per Cent
Accuracy How Buyers Will Behave In A Certain Situation. Buyers Are Moved By A
Complex Set Of Deep And Subtle Emotions. Their Behaviour Results From Deeply Held
Values And Attitudes; Their Perceptions Of The World And Their Place In It, From Common
Sense, Impulse, Or Just Plain Whimsy.
“Consumer Behaviour Refers To The Mental And Emotional Processes And The
Observable Behaviour Of Consumers During Searching, Purchasing, And Post Consumption
Of A Product Or Service.”
Buyer Behaviour Has Two Aspects: The Final Purchase Activity Visible To Any
Observer And The Detailed Or Short Decision Process That May Involve The Interplay Of A
Number Of Complex Variables Not Visible To Anyone. Actual Purchase Is Just One
Activity, But The Process Is Initiated Several Steps Prior To A Purchase And Often
Progresses Beyond Consumption. In Fact, Purchase Behaviour Is The End Result Of A Long
Process Of Consumer Decision-Making, Influenced By Many Variables.
32
Figure-2
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Various Factors Influencing Consumer Behaviour
Actions
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DATA COLLECTION
AND ANALYSIS
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Table 1.3. Compared
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Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Disagree
Neutral
Agree
31
26
69
126
24.6
20.6
54.8
100.0
24.6
20.6
54.8
100.0
24.6
45.2
100.0
Total
Source: Authors Estimation
Table 1.1 Indicate that 99.2% people purchased beverage brad and 0.8% people not
used
beverage brands. It shows that majority of people in Pakistan used beverage brands.
Table 1.2. Choice
To observe the influence of consumer behavior towards beverage brands first I used
frequency
Analysi+s on variables to examine the frequency of people and the majority of people are
brand
conscious or brand unconscious. Second, regression analysis is used to examine the
connection
between dependent and independent variables.
Frequency analysis:
Table 1.1. Purchased
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Source: Authors Estimation
Table 1.2 indicates that 60.3% people in Pakistan prefer Coca cola and 39.7% peoples
choice is
Pepsi cola that shows majority of people in Pakistan like coca cola brand.
Table 1.3 indicate that 24.6% people are not compared different brand before
purchasing,
20.6% neutral and 54.8% people are fully agree to compared the different beverage
brands
before purchasing. Mean majority of people in Pakistan are branding conscious.
Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Undesirable
Neutral
Desirable
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Total
7
12
107
126
5.6
9.5
84.9
100.0
5.6
9.5
84.9
100.0
5.6
15.1
100.0
Source: Authors Estimation
Table 1.5. Quality brand
Frequenc Percent Valid
Cumulative
Percent
y
Percent
Undesirable
Neutral
Desirable
Total
11
11
104
126
8.8
8.7
82.5
100.0
8.8
8.7
82.5
100.0
8.8
17.5
100.0
Source: Authors Estimation
Frequenc Percent Valid
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Cumulative
Percent
y
Percent
Undesirable
Neutral
Desirable
Total
19
39
68
126
15.1
31.0
53.9
100.0
15.1
31.0
53.9
100.0
15.1
46.1
100.0
Source: Authors Estimation
Table 1.4 indicates that 5.6% people are undesirable about the taste when they choosing
a
beverage brand, 9.5% are neutral and 84.9% are desirable about the taste when they
choosing
a beverage brand.
Table 1.5 indicates that 8.8% people are undesirable about the quality of beverage
brands
when they choosing, 8.7% are neutral and 82.5% people are desirable about the quality
of
beverage brands..
Table 1.6. Price
Table 1.6 shows that 15.1% people in Pakistan are undesirable about the price of
beverage
brands of Pakistan, 31% are neutral and 53.9% people are desirable
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Table 1.7. awareness
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Frequenc Percent
y
Valid
Percent
Cumulative
Percent
Undesirable
Neutral
Desirable
Total
9
11
106
126
7.1
8.7
84.1
100.0
7.1
8.7
84.1
100.0
7.1
15.9
100.0
Source: Authors Estimation
Dependent variable: Beverage Brand
Method: Least Squares
Variables
Constant
Coefficient
1.991
Standard Error
0.434
T-Value
4.590
Consumer
Behavior
0.229
0.079
2.889
Source: Authors Estimation
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Table 1.7 indicates that 7.1% people are undesirable about the awareness of beverage
brands
when they choosing, 8.7% are neutral and 84.1% people are desirable. It shows majority
are
desirable about the awareness of beverage brands.
Regression analysis:
Table 1.8
Table 1.8 shows beta values which means individual independent consumer behavior
variable
influence on dependent variable of beverage brands (Coca cola & Pepsi cola) of
Pakistan.
Results indicate that consumer behavior has the strong influence on beverage brands
(Coca
cola and Pepsi cola) of Pakistan with beta value 0.251. If we increase the 1 unit of
consumer
behavior its influence on beverage brands is 1.23%.
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Prob.
0.000
0.005
Beta
0.251
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FINDINGS OF
STUDY
findings
1.
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2. Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation
of Two Critical Brand Equity Drivers
3. A Global Investigation into the Constellation of Consumer Attitudes Toward Global and
Local Products
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Culture And Subculture
Culture Influences Consumers Through The Norms And Values Established By The
Society In Which They Live. It Is The Broadest Environmental Factor That Influences
Consumer Behaviour. The Impact Of Culture Is Automatic And Almost Invisible And Its
Influence On Behaviour Is Usually Taken For Granted. Culture Operates Primarily By
Setting Somewhat Loose Boundaries For An Individual Within A Society And By
Influencing The Functions Of Different Institutions Such As Family And Mass Media.
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Western Cultures It Is Quite Normal. Persons Flouting Cultural Norms Face Sanctions Or
Penalties, Which Can Be In The Form Of Mild Or Severe Social Disapproval. There Are Any
Number Of Organised Group Reprisals In The Rural Areas Of India,.
Culture Not Only Influences Consumer Behaviour But Also Reflects It. It Is A Mirror
Of Both The Values And Possessions Of Its Members. Cultures Are Not Static But Evolve
And Change Slowly Over Time. Marketing Strategies Are Unlikely To Change Cultural
Values, But Marketing Does Influence Culture.
Advertising Agencies, Fashion Design Houses, Music Companies, Cinema, Etc., Are All
Producers Of Culture. They Are All Responsible For Creating And Producing Products And
Services Designed To Meet Cultural Goals. Their Products And Services Influence The
Desire To Be Beautiful, Independent And Socially Recognised, Etc.
Culture Influences What People Wear, What And How They Eat, Where They Live, Etc. It
Has A Broad Influence On Their Buying And Usage Behaviour Of Products And Services,
And The Extent Of Their Satisfaction With Them. For Example, Indians Eat Their Food With
Their Fingers And Shun The Fork-Knife-Spoon Combination, While In Many Far Eastern
Countries, Chopsticks Are Used For This Purpose. In Some Cultures Such As That Of India,
Where Washing Clothes Is Done By Hands, Manufacturers Of Laundry Products Offer
Washing Soaps And Detergent Cakes To Satisfy The Needs Of A Majority Of Indians.
Culture Also Influences To Some Extent How Consumers Purchase Products And Use Them,
And This Determines The Development, Pricing, Promotion, And Distribution Of Products.
In Western Countries, With Their Full Service Supermarkets, Some Significant Differences
In Shopping Can Be Observed.
Marketers Are Always Concerned About Cultural Shifts And Keen To Discover New
Products Or Services That Consumers May Want. Women Are Trying To Become More
Independent Financially And Are Joining The Work Force In India. The Number Of Dual
Income Homes Is Increasing In Urban Areas. The Need To Provide Care To Children During
Work Hours Has Resulted In The Emergence Of Childcare Services Such As Crèches, And
Day-Care Play Schools. The Shift To Nuclear Families And Smaller Houses/Flats Has Led
To Demand Not Only For Time Saving Devices But Also Smaller Gadgets For The Kitchen.
Cultural Shift Toward Greater Concern For Health And Fitness Is Leading To Introduction
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Of Health And Fitness Services, Exercise Equipment, Clothing, And A Variety Of Health-
And-Fitness Related Foods And Drinks.
Out Of Several Sub-Cultures In India, Only Some Are Important From The Marketers
Point Of View For Formulating Separate Marketing Programmes. Much Depends On The
Relevance Of A Product Category To A Particular Subculture. For Example, Cosmetics Are
Popular Among Ladies, No Matter To Which Subculture They Belong. Similarly, Jeans And
T-Shirts Are Very Popular Among Urban And Semi-Urban Teenagers Irrespective Of
Whether They Are Hindus, Muslims, Sikhs, Or Christians.
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CONCLUSION AND
SUGGESTIONS
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Conclusions, implications and suggestions for further research Quantifying the relations
between the main dimensions of fair trade attitudes and other A Model for Fair Trade Buying
Behaviour 375 determining factors of fair trade buying behaviour and their sub-dimensions
has identified a number of crucial factors in the fair trade buying process. First, the important
role of the perceived quality of fair trade information is highlighted. Better and more credible
information about the fair trade issue and about fair trade products indirectly stimulates fair
trade buying behaviour. Second, overall attitudes (concern and scepticism) towards the fair
trade issue have a strong influence on buying behaviour directly and indirectly through
consumers attitude towards products. Product-related attitudes seem to play a prominent role:
especially product interest has a large impact on buying behaviour. These results have a
number of implications for fair trade organizations and governments that wish to promote or
help to promote fair trade practices. First, campaigning for and investing in fair trade
knowledge and the building of positive attitudes towards the fair trade issue in general, and
removing scepticism — one of the key activities of the fair trade movement — remain useful
strategies; improving knowledge and overall attitudes directly and indirectly lead to more
buying. Concern should be raised and scepticism should be reduced. This is an ongoing
concern for fair trade organisations who, indeed, launch mass media campaigns and more
targeted communication campaigns (for instance in schools) to raise awareness and improve
attitudes. Second, the focus should shift towards building more positive product interest,
because this has a strong, direct effect on buying behaviour. Transforming general positive
attitudes into product interest is therefore important. There are various ways to achieve this.
Fair trade organizations could focus more on building prominent and highly visible brands
with a good reputation. Instead of mainly focusing on selling their products in specialty
shops, they could invest more in making fair trade products visible in regular supermarkets.
Organizing product-oriented promotion and communication strategies, and increasing the
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trial potential of fair trade products, may also be helpful. Recently, Oxfam Belgium has
decided to promote its brand more visibly on the shop floor and to that end attempts to
cooperate with major supermarkets to get more shelf space and in-store promotion.
Governments could support this customer contact strategy by means of visibly promoting and
organizing contact with fair trade products. The policy of certain Belgian governmental
departments and schools and universities to only offer fair trade coffee in their restaurants
and vending machines is a good example of actively developing positive product interest and
attitudes. Besides convincing the public that the fair trade price premium is acceptable,
governments could help to close the price gap between none fair trade and fair trade products
by modifying the tax system to favour fair trade products. Finally, disseminating the
appropriate amount of perceived high-quality information about the fair trade issue and fair
trade products is crucial: it improves overall attitudes and product attitudes, and indirectly
affects buying behaviour positively. A greater focus on disseminating credible product
information is required. A well-supported fair trade brand or fair trade label, issued or
endorsed by a highly credible organization, may encourage the crucial perception of highly
credible information that incites consumers to buy the products. Governments (both national
and supra-national, such as the European Union) could support this process by organizing the
integration of label initiatives, as is currently done in the case of social and eco-labels. Fair
trade organisations, such as Oxfam and Max Havelaar, have shifted their strategy towards
building more highly visible brands and labels, and to make these labels more credible and
convincing. Governments are considering to establish and support national or European
social labels in an attempt to reach the public on the basis of the brand effect that these labels
may have: a trusted brand from a credible source may be a powerful attribute to convince
concerned but sceptical consumers. This study focused on a sample of the Belgian
population. Although Belgium appears to be representative of Europe in terms of ethical
buying behaviour, further research could explore the differences between various European
countries and between the European and North American markets, and their effect on the
marketing of fair trade products. Furthermore, to improve the marketing relevance of this
analysis, the model could be applied to subgroups of the population, to allow for differences
in the role of attitudes, information and control beliefs in the buying behaviour of various
consumer groups. For instance, people who frequently buy fair trade products may have
different persuasion routes from those who do not. The sample studied here was 376 Patrick
De Pelsmacker and Wim Janssens too small to enable a more detailed analysis of separate
consumer groups. The scope of the study could be extended to other ethical issues, such as
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environmentally friendly or biological product buying behaviour, or buying from socially
responsible companies. The qualitative focus group study revealed a detailed opinion of the
impact of various quality- and quantity-related aspects of fair trade information. However,
these different aspects were not reflected in the quantitative study in which the respondents
only perceived two broad categories of information aspects: overall quantity and overall
quality. Therefore, the role of information about the fair trade issue and fair trade products
should be explored in more detail: which aspects of the quantity and quality of information
have the strongest impact on attitudes and behaviour, which types of information, arguments
and media are preferred, to what extent do they influence general and product-specific
attitudes and behaviour, and which type of messages have more impact than others? Finally,
self-reported ethical attitudes and buying behaviour are susceptible to social desirability bias.
Further research could focus upon this phenomenon, by explicitly including a social
desirability scale and assessing its impact on the fair trade buying model. Appendix: Means
and standard deviations for model constructs and indirect and total effects for the buying
behaviour model TABLE A1 Means and standard deviations of model constructs Mean Std.
deviation Knowledge 5.83 0.94 Information quality 3.62 1.24 Information quantity 2.21 1.00
Concern 5.37 1.02 Scepticism 3.39 1.23 Convenience 3.42 1.66 Price acceptability 2.73 1.24
Product likeability 3.87 1.26 Product interest 4.54 1.42 All constructs are positively scaled
(except scepticism). TABLE AII Standardized indirect effects and their significance
Construct 2 3 4 5 6 7 8 9 10 1. Knowledge 0.134 (0.001) 0.101 (0.001) )0.196 (0.001) 0.090
(0.014) 0.240 (0.001) 0.175 (0.001) 0.447 (0.001) 0.261 (0.001) 2. Information quality )0.150
(0.001) 0.067 (0.001) 0.174 (0.003) 0.391 (0.001) )0.083 (0.142) 0.362 (0.001) 0.284 (0.001)
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And Are More Brand And Store-Loyal. They Are More Likely To Go Shopping After Office
Hours In The Evening.
After Examining Advertising Response To Financial Services, Lynn J. Jaffe Has Reported
That The Use Of A “Modern” Positioning Strategy, That Is, A Focus On
Career And Family, Proved More Effective With Women Than A More Traditional
Positioning Strategy Of Focusing On “Nurturing And Family.”
Figure-6
Alternatives To Buy)
Figure-7
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Family Decision Process For Childrens Products
Gatekeepers
(Parents)
Communications
Targeting
Children
Influencer
(Children)
Womens Roles Are Changing As Many Women Are Taking Up Different Types Of Jobs.
Increasing Numbers Are Joining Central And State Governments In Administrative
Positions; Others Are Opting For Professional Positions Such As Engineers, Doctors, And
Executives In Business And Industry.
In Case Of Many Products And Services, Husband And Wife Jointly Make Purchase
Decisions, Particularly For Durable Goods. Children Also Now Play- A Bigger Role In Some
Family Purchases. When Two Or More Family Members Are Involved In Making A Certain
Purchase Related Decision, Each May Take Up Different Role(S) Such As Initiator Of The
Idea; Gatherer Of Information Regarding Different Brands; The Decider Selects Specific
Brand And Also Perhaps The Outlet; And Finally, There Is The Actual Buyer. Marketers
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Need To Know The Influence Of All These Roles And Develop A Marketing Mix That
Takes Care Of Needs And Wants Of A Target Market.
Social Class
Many People Like To Think (And Say) That All People Are Created Equal.
However, In All Societies There Are Some People Who Are Ranked Higher Than Others.
Social Class Can Be Viewed As A Range Of Social Positions In A Society. Social Class
Defines The Ranking Of People In A Society Into A Hierarchy Of Distinct Status Classes;
Upper, Middle And Lower, So That The Members Of Each Class Have Relatively The Same
Status Based On Their Power And Prestige.
Social Class Means Societal Rank, Which Is Ones Position Relative To Others On
One Or More Dimensions Valued By Society. Social Class Is Based On Demographic
Variables That Others In Society Aspire For And Hold In High Esteem. These Characteristics
Precipitate Unique Behaviours. Social Classes Range From The Lower To The Upper. Those
With Few Or None Of The Socio-Economic Factors Desired By Society Represent Lower
Class, While Persons Who Possess Many Of The Socio-Economic Characteristics Desired By
The Society Constitute Upper Class. Individuals In Different Social Classes Tend To Have
Different Consumption Patterns.
39
Figure-8
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Social Class Results From Socio-Economic Factors
Socio- Unique
Heritage Class
Social Class Is Often Measured In Terms Of Social Status. Subjective Values Set
By A Society Determine The Ideal Types Of People In That Society.
Important Factors That Determine The Status In Most Societies Include: Authority Over
Others; Political, Economic, Military, Or Religious Power; Ownership Of Property,
Income, Occupation, Lifestyle And Consumption Patterns, Education; Public Service,
Ancestry And Connections.
Social Class Influences People And They May Develop And Exhibit Common
Behavioural Patterns. They May Have Similar Desires, Attitudes, Preferences, And
Possessions. Consumers Buy Products Not Only For What They Can Do But Also For
What They Mean, Because Products Or Services Are Seen To Possess Personal And Social
Meanings In Addition To Their Functional Attributes. Our Possessions Such As The
Houses We Live In, The Cars We Own, The Clothing We Wear, Or The Watches That
Appear On Our Wrists, Are Indicators Of Social Class. Possessions Of Products Or Other
Signs Of Wealth Have Always Been Signs Of Achievement Or Status Symbols. The
Things Consumers Buy Become “Symbols” That Tell Others Who They Are And What
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Their Social Class Is. In Societies Where Financial Wealth Signifies Status, Possessions
Become An Indicator Of Income And Wealth, Since Others Are Unlikely To Know How
Much One Earns. Thus, There May Be Members At Each Social-Class Rung Who Aspire
To Achieve A Higher Status By Acquiring Those Symbolic Possessions That Are Marks
Of Distinction Enjoyed By A Higher Rung In The Social Status Ladder.
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QUESTIONNAIRE
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“A STUDY ON CUSTOMER PREFERENCE TOWARDS
SELECTED FMCG WITH SPECIAL REFERENCE TO COIMBATORE
CITY”
QUESTIONNAIRE
1. Personal details
Name :…………………………………………………..
Location :…………………………………………………..
Marital status :
Married Unmarried
Educational qualification :
Employed Business
Up to 2 2 to 4
4 to 6 Above 6
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2. Which of the following format you prefer to make purchase?
3. Which of the following Retail stores do you prefer most for buying FMCG`s?
Rank
5 4 3 2 1
Store
Reliance Fresh
Aditya Birla MORE
Big Bazaar
Nilgris
Kannan
Proximity Ambience
Not at
S.No Merchandise Always Often Sometimes
all
1 Cold drinks
2 Toothpaste
3 Detergent
5 Toilet soaps
6. How often discounts & incentives are provided by the departmental stores?
Always Often
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Sometimes Not at all
7. Are you aware of these brands available in market? (If yes,tick in the box)
Skin Care:
Fair&Lovely Garnier
Ponds Nivea
Hair Care:
Pantene Meera
Detergent Powder:
Surf Ariel
Rin Tide
Wheel
Toilet Soap:
Hamam Pears
Dove Cinthol
Medimix Dettol
Cold Drinks:
Mirenda Fanta
Limca
Tooth Paste:
Colgate Closeup
Pepsodent Promise
Yes No
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9. Rank the preference for the following brands? (5- Most Prefered, 1- Least Prefered)
Rank
5 4 3 2 1
Brands
Skin Care:
Ponds
Garnier
Himalaya
Nivea
Hair Care:
Clinic Plus
Pantene
Meera
Detergent Powder
Surf
Tide
Ariel
Rin
Wheel
Toilet Soap
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Hamam
Pears
Dove
Cinthol
Dettol
Medimix
Tooth Paste
Colgate
Pepsodent
Close up
Promise
Cold Drinks:
Coca Cola
Pepsi
Mirenda
Fanta
Limca
10. How long you have been using above stated brands?
11. Rank the factors that influence you most for the purchase of the following
brand.(Rank from 1to6 where 6 is Most influence and 1 is least influence)
Skin care
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Ponds
Garnier
Nivea
Hair care
Head &
Shoulder
Garnier
Pantene
Clinic plus
Detergent Powder
Surf
Tide
Ariel
Wheel
Rin
Tooth Paste
Pepsodent
Colgate
Close up
Promise
Cold drinks
Pepsi
Coca cola
Fanta
Mirenda
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12. Do you look for various schemes in the FMCG products?
Yes No
13. Will you like to switch your brand preference if you get some promotional scheme
with another brand?
Yes No
15. Had you used any other brands before this current brand?
Yes No
17. Does the advertising play any role towards brand preference?
Yes No
Television
News paper
Pamphlets
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Word of mouth
18. Have you purchased any FMCG brands recently after coming across any
advertisement?
Yes No
Better exposure
…………………………………………………………………………………………
…………………………………………………………………………………………
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BIBLIOGRAPHY
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Reference Groups
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A Reference Group Refers To A Group Of People With Whom An Individual
Identifies Herself/Himself And The Extent To Which That Person Assumes Many Values,
Attitudes, Or Behaviours Of Group Members.
Group Memberships And Identity Are Very Important To Most Of Us. Apparently
Most Of Us Do Not Like To Think That We Are Conformists, But The Truth Is That We
Generally Conform To Group Expectations Most Of The Time.
Marketers Often Advertise Their Products Showing Group Settings Such As Family, Friends,
Neighbours, Etc.
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Of Reference Group. Reference Groups May Influence Both Purchase Decision As Well As
The Brand Choice.
Psychological Factors
Motivation
Figure-9
Motivation Process
Learning
Unfulfilled
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Wants → Felt → Drive → Need
Behaviour
And Tension Fulfillment
Desires
Cognitive Processes
Tension Reduction
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