Вы находитесь на странице: 1из 77

CONSUMER BUYING BEHAVIOR

Introduction: The most important thing is to forecast where customers are moving, and to in be front of them. Philip Kotler. As marketing becomes increasingly important in todays business environment, interest in the study of consumer behavior has also increased. Marketers continue to realize the importance of understanding their consumers in order to develop effective marketing strategies, and consumers are demanding a higher standard of quality goods and service. The aim of marketing is to meet and satisfy target customers need and want. The field of consumer buying behavior covers a lot of ground: It is the study of process involved when individuals or group select, purchase, use, or dispose of products, service, ideas, or experiences to satisfy needs & desires. Needs and desire to be satisfied range from hunger and thirst to love, status or even spiritual fulfillment. Customers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. Consumer behavior plays a decisive role in different marketing activities. Consumers take many forms, ranging from an eight-year-old child demanding her mother for Pokemon cards to an executive in large corporation deciding on multimillion-dollar computer system. The items that are consumed can include anything from canned peas, a massage, democracy, and hip-hop music. Marketing theory traditionally splits analysis of buyer or customer behavior into two broad groups for analysis  Consumer Buyers Industrial Buyer

Consumer buyers are those who purchase items for their personal consumption. Industrial buyers are those who purchase items on behalf of their business or organization.

Businesses now spend considerable sums trying to learn about what makes customers think. The questions they try to understand are:      Who buys? How do they buy? When do they buy? Where do they buy? Why do they buy?

Businessmen have to study the behavior of consumers minutely and adjust their business\marketing policies and strategies accordingly. Marketer has to study buying behavior to formulate the strategies of market segmentation and marketing mix, tailor made for each target market. For a marketing manager, the challenge is to understand how customers might respond to the different elements of the marketing mix that are presented to them. Consumer psychology needs special attention in the present highly competitive and consumer-oriented marketing system. Consumer is the cause and purpose of all production and marketing activities. He is the center of all marketing activities as marketing is with consumer and also for satisfaction of his needs. Modern marketing is consumer-oriented and non profitoriented. Naturally, a consumer behavior, his motives behind purchasing goods and services (buying motives) and his psychology should be given due attention by the marketers. This is necessary for the expansion of marketing activities. Consumer behavior is normally flexible and uncertain as it is based on various economic, social and cultural consideration. Before developing their marketing plans, marketer needs to study consumer behavior. Consumer behavior introduces the theories of individuals, social groups, and organizations in todays competitive environment. It concerns practices of marketing that will influence in the decisions to make purchases and consumptions. The concepts that are covered fall into two broad categories; the exogenous or external influences and the endogenous or internal influences. The former includes culture, social class, households and social groups and the latter includes motivation, personality, perceptions and learning.

The study of consumers helps the firms and organization improve the marketing strategies by understanding issues such as: The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands products); The psychology of how the consumer is influence by his or her environment (e.g., culture, family, signs, media), The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decision How consumers motivation and decision strategies differ between products that differ in their level of importance or interest they entail for the consumers; How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumers. Official definition of consumer behavior: The study of individual, groups, or organization and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas, to satisfy needs and the impact that these processes have on the consumer and society. Although it is not necessary to memorize this definition, it brings some important point. Behavior occurs either for the individual, or in the context of groups (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decision as to products the firm should use).

Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems results from product disposal (e.g., motor oil being sent into sewage system to save the recycling fees, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products.

The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of fast foods, or aggressive marketing of credit, many have serious repercussions for the nations health and economy.

APPLICATION OF CONSUMER BEHAVIOR


There are four main applications of consumer behavior: The most obvious is for marketing strategies- i.e., for making better marketing campaign. For examples, by understanding that consumers are most receptive to food

advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new product are usually initially adopted by few

consumers and only spread later, and they only gradually, to the rest of the population, we learn that (1) comprise that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customer, since they will in turn influence many subsequent customers brand choices.

A social application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers

Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, Marketing professor, went on sabbatical to work for Centers for Disease Control trying to reduce the incidence of transmission of disease through illegal drug use. The best solution, obviously, would be if we could get illegal drug user to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce that if you buy 32 ounce bottles. In practice, however, you often pay size premium by buying larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

CUSTOMERS AND CONSUMERS6

The term customer is typically used to refer to someone who regularly purchases from, particular store or company. The term consumer more generally refer to anyone engaging in any of the activities used in the definition of consumer behavior. Therefore, a customer is defined in terms of specific firm while a consumer is not. The traditional viewpoint has been to define consumer strictly in terms of economic goods and services. This position holds that consumers are potential purchasers of products and services offered for sale. The most commonly thought of consumer situation is that of an individual making a purchase with little or no influence from others. However, in some cases number of people can be jointly involved in a purchased decision. For example, planning a vacation or deciding on a new car can involve entire family. In other cases the purchaser may just be acquiring a product for someone else who has asked for certain item. These situation suggest that customers or consumers can take on different roles in the definition of consumer behavior.

WHAT IS CONSUMER BEHAVIOR? UNDERSTANDING CONSUMER BEHAVIOR


7

The study of consumer behavior is the study of how individual make decision to spend their available resources (time, money, effort) on consumption related items. It includes the study of what they buy, why they buy, when they buy, where they buy it, how often they buy it, and how they use it.

Consumer behavior is function of individual involving the product category and the current situation. You undoubtedly prefer different TV shows, food and clothes than do your parents & even some of your closest friends. You also spend more or less time evaluating a product before purchasing it. Each person is unique as a customer. Marketers attempt to group consumers who are similar into market segments. While you differ from other consumers, your own purchasing behavior will also differ from one product to another.

Your purchasing and consumption behavior for the same product will often change depending upon the situation you are. Since consumer behavior is influenced by individual characteristics, product characteristics, situational characteristics our understanding of consumer behavior must incorporate all three of these influences.

If marketer can identify consumer-buying behavior, he or she will be in a better position to target products and services at consumers. Buyer behavior is focused upon the needs of individuals, groups.

INFLUENCE OF SOCIAL SCIENCE ON BUYING BEHAVIOR

All major social science like economics, psychology, sociology and anthropology have influenced buyer behavior study. It is essential to have an ideas of the nature of this influence.

Influence of Economics
Economists described man as a rational buyer and view the market as a collection of homogeneous buyers. Under a given set of conditions, all buyers behave a similar fashion and every buying decision is logical process with the ultimate intension of obtaining optimum value for the money spent. Prices is regarded as the strongest motivation for the economic man. The economic mans behavior, in short, is rational. Though the model of economic man may help us understand certain aspects of buyer behavior, it certainly cannot answer all the puzzles of buyer behavior. The main problem with the concept of economic man is the assumption that buyers are absolutely rational in their purchases and that markets are homogeneous. Markets are actually a collection of heterogeneous buyers, differing from each other in several characteristics. The marketing process is intended to match these heterogeneous segments of demand with heterogeneous segments of supply.

Influence of Psychology
The next major influence on buyer behavior came from psychology. According to Different

psychologists, any human activity is directed toward meeting certain needs. psychologists have categorized these needs in different ways.

Psychological needs are the basic needs: they include the need to satisfy hunger, thirst, sleep, etc. For people who are well off, physiological needs are met as the matter of routine, whereas for the poor, a major part of their life is spent in striving to meet these needs. Safety needs include needs relating to physical safety and economic and social security. Social needs come next in ladder. They include the need for love and the need to belong. Esteem needs come next in the hierarchy. They include the need for self-esteem, the need for recognition by society and the need to be held in esteem by other. Self-actualization needs include the need for selfdevelopment and the need to attain complete fruition of ones capabilities and endowments. The actions of individuals are guided by their need structure and need level.

FACTORS INFLUENCING BUYER BEHAVIOR


10

A number of factors influence buyer behavior. They can be grouped under broad categories.  Factors that are part if the buyer as an individual.  Buyers social environment (group influence).

Factors that are Part of the Buyer as an Individual


An individuals religion and cultural background, his personality traits, self-concept, his general endowment, his upbringing-in short, his overall biodata play a crucial role in his conduct as a buyer/consumer. These factors can be grouped three broadly into three categories: Personal factor Cultural factor Psychological factor

Personal FactorsAn individuals age, level of education, his occupation, overall economic position and lifestyle, all influence his role as a buyer. They decide what products he will buy and consume. A persons self-concept and his concern about status also influence his buying decisions. In fact, today people are very concerned about their image and status in society. It is a direct outcome of their material prosperity. Status is announced through various symbols like dress, ornaments, possessions and general lifestyle. The desire for self-expression and self-advancement is closely linked with social status. For several people, status is a major motive force guiding and shaping their life. Their concept of status decides what material possessions they should have. Even if a product that constitutes a status symbol is beyond their immediate reach, their aspiration to possess it will influence their decisionmaking process.

Age and stage in the life cycle


11

Buyers choices are affected by changes in their age family structure over time. People buy different goods and services over a lifetime. They eat baby food in the early years most foods in the growing and mature years and special diets in the later years. Taste in clothes, furniture, and recreation is also age related. Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups as their target market. They pay close attention to changing life circumstances-divorce, widowhood, remarriage-and their effect on consumption behavior.

Occupation A persons occupation carries with it distinct consumptive needs. White-collar workers need different cloths than blue-collar workers. Also, occupations usually carry their own sub cultural norms and values that influence buyer behavior.

Education Those with higher education levels tend to hold positions that influence dress standards and such purchases as computers and reading materials.

Economic Situation Product choice is greatly affected by economic circumstances; spendable income (level, stability, and time pattern), savings and assets (including the percentage that is liquid), debts, borrowing power, and attitude toward spending versus saving. Marketer of income-sensitive goods pay constant attention to trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products so they continue to offer value to target customers.

Personality
12

Personality means distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Personality is usually described in terms of traits such as self-confidence, dominance, autonomy, deference, sociability, defensiveness and adaptability. Personality can be a useful variable in analyzing consumer behavior, provided that personality types can be classified accurately and that strong correlations exists between certain personality types and product or brand choices. Self-concept Self-concept means self images. Marketers try to develop brand images that match the target market; self-image. It is possible that a persons actual self-concept (how she views herself) differs from her ideal self-concept (how she would like to view herself) and from her others self concept (how she thinks other see her).

Cultural Factors-Religion, Language, etc.


Every culture, every religion and every language group dictates its own unique patterns of social conduct. Within each religion, there may be several sects and sub-sects; there may be orthodox groups and cosmopolitan groups. In dress, food habits, or marriage-in almost all matters of individual life-religion and culture exercise an influence on the individual, though the intensity may vary from society to society. The dos and donts listed out by religion and culture impacts the individuals lifestyle and buying behavior. Culture Culture is the most basic influence on a persons values, priorities, and beliefs. It is the most fundamental determinant of a persons wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions.

Sub-culture13

Subculture is distinct groups within the larger culture that have identifiable patterns of behavior. Each culture consists of smaller subcultures that provides more specific identifications and socializations of their members. Subcultures include nationalities, religions, racial groups, and geographical religions. Many subcultures makes up important market segments, and marketers often design products and marketing programs tailored to their needs. Social class Social class is determined by a combination of income, occupation, education, wealth and other variables. Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests and behavior. Social classes differ in dress, speech patterns, recreational preferences, and many other characteristics. Social classes shows distinct product and brand preferences in many areas, including clothing, home furnishings, leisure activities, and automobiles.

Psychological Factors-Beliefs, Attitudes, Motivation, Perception


Just like the economic and social conditions, a mans disposition too has a close bearing on his purchase decisions. Individuals corning under the same economic and social groups can be vastly different when it comes to certain personal believes, faiths and attitudes. One may be timid and plain, while another may be outgoing and aggressive. One may be traditional in the overall view of life, while another may be modern. One may be least innovative, while another may be welcome anything new. In fact, the maximum variations are seen here, and in the matter of analysis and assessment too, this area poses maximum problem to the marketer. In the chapter that follows on market segmentation and market targeting, we shall see how personal believes, faiths and attitudes-otherwise termed psychographics-influence purchases and how buyers can be segmented based on these characteristics.

Motivation Motivation is the drive to satisfy needs and wants, both physiological and psychological, through the purchase and use of products and services. Some motives are simple we need food, water,
14

warmth, and shelter in order to survive. Others are more complex, such as the yearning for love or the desire for status and admiration. Consumer motivation can be viewed as a process through which needs are satisfied. Perception Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers) to basic stimuli such as light, color, sound, odors, and textures. Perception is the process by which these sensations are selected, organized and interpreted. It is the process of organizing stimuli and is influenced by selective exposure, distortion, and retention. Perception is the way in which an individual gathers, processes, and interests information from the environment. Perception depends not only on the physical. Learning Learning is a relatively permanent change in behavior that is caused by experience. The learner need not have the experience directly; we can learn by observing events that affect others. Learning can occur through simple associations between a stimulus and response, or via a complex series of cognition activities. It occurs in response to the presentation of information linked to relevant drives, cues, response, and reinforcement only some of which is under the control of the markers. Learning is an on going process. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivation practices, and providing positive reinforcement.

Beliefs and Attitudes A belief is a descriptive thought a person has about something beliefs may be based on knowledge, opinion, or faith. They may or may not carry an emotional charge. Of course,
15

manufacturers are very interested in the beliefs people carry in their heads about their products and services. These beliefs make up product and brand images, and people act on their images. An attitude is a relatively consistent set of evaluations, feelings and tendencies towards an object or an idea. People have attitudes towards almost everything, religion, clothes, foods, and

politics. Attitude put them into a frame of mind of linking or disliking an object, moving towards or awareness from it.  Buyers Social Environment (Group Influence) The buyer, whom we are studying, is not an ascetic. He is living in a society, is influences by it and is in turn influencing its course of development. He is a member of several organizations and groups, both formal and informal. He belongs to a family, he works for certain firm, he may be a member of a professional forum, he may belong to a particular political group, or a cultural body. There is constant interaction between the individual and the groups to which he belongs. And all these interactions leave some imprint on him, which influences him in his day-to-day life and consequently, his buying behavior. Since there are two broad groups of which an individual is a part, we shall discuss group influence in two parts.  Influence of intimate group  Influence of the broad social class

 Influence of intimate group

16

Examples of intimate group are family, friends, close colleagues and closely knit or these group exercise strong influence on the lifestyles and buying patterns of its members. Among these groups, the most influential and primary groups are the family and peer groups. The peer groups are close-knit groups composed of individuals, who have a common social background and who normally belong to same age group. The peer group has the greatest influence on the individual member as a stabilizer of styles and behavior pattern. In any intimate group, there is likely to be an informal group leader. The group respects him and look up to him. Though the leader may not directly influence every member in his day-today purchases, his judgments on men and matters, and facts and fashions are respected by the group; and his view and lifestyle influences there buying decision. He is normally the innovator in the group, who first tries new product and new ideas, and then, he becomes the propagator of those product and ideas. This opinion leaders or influencers play a key role in marketing. Marketer often tries to reach this leader first through advertisements and other means of communication. And if the leaders are convinced, their groups are likely to follow suit.

 Influence on the Broad Social Class

17

Structurally, the social class is a larger than the intimate groups. The constitution of a social class decided by the income, occupation, place of residence, etc of the individual member. The member of a social class enjoy more or less the same status and prestige in the community. They share a common lifestyle and behavior pattern. And, they normally select a product or a brand that caters to their class norms. Often, they even do their shopping in the same shopping area and patronize selected shops, which benefit their class image. This doesnt mean that all the members of a given social class will buy the same product and the same brand or conform to the same style, amounting to a sort of regimentation. Differential liking may exist among the members. But, in a buying situation in which objective standards are not available to guide them, they may conform to the class norms. Studies have shown that the extent of influence the social class has on its members will depend on the extent of attractiveness the group holds out to them. The greater the attractiveness, the larger is the behavioral conformity, study of group influence on individual buying behavior will help marketers to develop right strategies for different customer segments. It is not feasible for them to appeal to the fancies of every individual buyer. They can find commonalities or patterns among specific groups of buyer and work on them.

MARKET RESEARCH ON CONSUMER BEHAVIOR

Purpose Of Study
18

The purpose of the study is to find the Consumer Buying Behavior of Mobile Handsets.

Scope Of Study

There are more than 28 Brands of Mobile phones available ion the market. Within each brand there are various models, each with different attributes and functions. This research will open the doors of the consumer buying behaviour of a mobile handset.

Research Objectives

To find the Consumer Buying Behavior of Mobile Handsets

Research Design

This is a Descriptive Market Research. This research will explore the consumers behavior towards buying a mobile handset.

TYPES OF CONSUMER BUYING BEHAVIOR


TYPES OF CONSUMER BUYING BEHAVIOR ARE DETERMINED BY:
19

Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others.

High involvement purchases-Honda Motorbike, high priced goods, products visible to others, and the higher the risk, the higher the involvement.

TYPES OF RISK:
y y y

Personal risk Social risk Economic risk

THE FOUR TYPE OF CONSUMER BUYING BEHAVIOR ARE:


y

Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk.
20

Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.
y

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

THE BUYING PROCESS:


21

1. Problem Recognition (Need Recognition) The process of buying normally starts with the recognition of a need by the consumer. He recognizes a problem and develops a perception of the problem. Then he seeks information for solving his problem. 2. Awareness The customer turns to his environment/world of information around him. It makes him aware of the existence of the product that would solve his problem.

3. Comprehension (Evaluation) Comprehension comes out of his ability to reason with the information. The awareness and comprehension stages represent the information processing stage. These two stages

constitutes the cognitive field of the purchase process. Cognition refers to acquisition of knowledge

4. Attitude It is the sum total of the individuals faith and feeling towards a product. As a result of his awareness and comprehension, the consumer develops an attitude-favorable or unfavorabletowards the product. The purchase process will continue only if he develops a favorable attitude or a liking for the product.

5. Legitimization
22

The buyer must be convinced that the purchase of the product is the legitimate course of action. This stage often stands as a barrier between a favorable attitude towards the product and actual purchase. Only if the buyer is convinced about the correctness of the purchase decision, he may seek further information regarding the product, or attempt to assess the information already available. Attitude and legitimization constitute the attitude field of the purchase process.

6. Trail Conviction leads the consumer to try the product on a small scale; he may buy a sample. He tries to evaluate the product from his own experience.

7. Adoption A successful trail leads buyer to buy/adopt the product. Trail and adoption constitute the behavioral field in the buying process.

8. Post-Purchase Behavior The purchase leads a specific post-purchase behavior. Usually, it creates some restlessness in the mind of the individual. Buyer is not sure about the product. He may feel that the other brand would have been better. He may even feel that the salesman has taken him for a ride. As this dissonance is uncomfortable, the individual, by himself, will seek all means to recover his conviction and poise. He will seek reassuring advertisements of the products or he may deliberately avoid positive stories about the competing brand.

23

PRETEEN
Pre-pubescence is the age where children begin to have more responsibilities and begin to want more respect as people. Because of the emergence of greater awareness of social orders and groups, this is a very unstable area of development. Preteens often feel like theyre not one thing or another and feel left out. To a girl approaching her teen years, fashion and hygiene (and sometimes the eating disorders that develop as a result of over-concern about these things) come to be a bigger part of her life, and males start to become attractive. To a preteen boy, sports and tend to matter more in the late childhood. Early adolescence is practically childhood, but the child has grown up slightly into a more mature person.

The Role & influence of children/Preteens in buying


Children put forward own demand as soon as they acquire talking skills. They need all kinds of toys, chocolate & toffees. As they grow they start participating buying decision. They influence the purchase decision of home PC., music system, video game & holiday destination. When parents make a purchase according to the bidding of their children, they have in a sense yielded. Children love to watch television commercial advertisements, they recite advertisement jingles. Preteen develop an ability to distinguish between the TV commercial & TV programme. Girl get favourably disposed to product like lipstick. capacity to understand the symbolism in advertising. Children who remain at home after the school hours while their parents are on the job are specially targeted by the marketers. Preteens are increasingly a specially targeted market segment by business because they tend to maintain the preference they develop at this age. As children grow, they develop the

24

TEENAGER
Introduction A teenager or teen is a person whose age is a number ending in teen in the English language: that is to say, someone from the age of thirteen to the age of nineteen. The word is of recent origin, only having appeared in the mid 20th century. In Western culture, a distinct youth culture has developed. This culture is often considered inferior to the mainstream culture, or in rebellion against it, and is thus often referred to as a subculture or counter culture. Adolescence has been called a variety of things from a disease to a miracle. People look back on the year 12 to 18 as some of the happiest of their life and also the most distressing. Adolescence is the age of revolution, awakening emotions and newly discovered capabilities. It is the age of revolution against adult control and adult direction. But adolescence is the age of anxiety and moodiness. Altogether it is the joy and pain of growing up. Quick changes of mood color the whole adolescence period. Changing attitudes and behavior begin to show as the youngster approaches puberty. They suddenly becomes oversensitive about many things and hypercritical about his family and home. Actually the teenager is three persons wrapped in one. You must unwrap the covering to get at the core of the real person. The real teenager The real teenager often is hidden and never brought to the surface; the real teenager is the person the youth worker is trying to reach. The true man on the inside may not be what the teenager thinks of as himself, and he may not correspond to what others think to be. The many veneers of life must be peeled off to help the teenager understand himself as he really is. Socrates said, Know thyself. A true selfappraisal is the first step to adjustment. Adjustment leads to happiness, confidence, and purpose in life.

25

THE TEENAGERS CHARACTERISTIC:

1. Material gains are highly aspired to, creating their own pressures both on teenager as well as their parents, who have to finance their aspirations. Money is everything in life say the teenagers.

2. Conventionality and playing the system are the hallmark of the urban familys teen children. There is flouting of family code, a strong attempt to secure the approval of parents and an aversion of risk taking. Willing to stay with in the demands of so called family values-since that provides the infrastructure for personal development.

3. Teenager aspires the support of the parents. Most admired person according to him is Mother.

4. Teenagers are one who empathizes with his parents. This is why the cabinet for decisionmaking in the urban family is real coalition, with the children having a major say in purchase decisions concerning consumer durables.

26

WHAT TEENS PURCHASE AND PLAN TO PURCHASE WITH THEIR OWN MONEY
Teens spend in a wide variety of categories, from durable products such as clothing, CDs videogames, and jewelry to nondurables, such as food, soda, snacks, and ice cream. Some specific observations about Teens behavior and purchase intent include: Clothing topped the list of both what Teens planned to buy and what they actually purchased. Entertainment items, such as video games, CDs, ad magazines, figured prominently on Teenagers planned purchases and what they actually bought.

Food, candy, and soda were the most common items recently bought.

Magazines were on Teens top 10 lists for both items they plan to buy and what they recently purchased. Top ten item teen plan to buy With their Own Money Clothes Shoes CDs or Recorded Music Video Games Jewelry Food Soda or Soft Drinks Bike or bikes parts Candy

1. 2. 3. 4. 5. 6. 7. 8. 9.

10. Lunch 11. Magazines

27

THE ROLE OF TEENAGERS IN BUYING DECISION

Teenager (14 to 20 years olds) are one the most hotly targeted consumer groups & it is not surprise that teenager is biggest set of consumer. The role of teens in purchasing decision varies widely among the families from one extreme where teens have almost no say, or the intermediate position where they influence food, clothing & entertainment purchase (which they participate directly in using), to the other extreme where purchase of such major durables goods as automobiles, color television, even home are influenced to at least some degree by the insistent demand of children in highly permissive families. In many cases, the manufacturers have long exploited the influences of youngsters (breakfast cereals, soft drinks, video games & recreational items). In other cases, where a connection between the purchase decision seems remotes, almost no promotional efforts are made to appeal to these small influence. Yet there are purchasing situations where alternative products are so similar in quality, features & use characteristics that the choice among tem is based upon the flimsiest of preference, In such case children may exert a powerful influence. Adolescence have greater influence in a concept-oriented environment where they are encouraged to develop their own ideas and express their views more openly. Children are also primed to assume a more active role in purchase discussions after years of listening to their parents described why certain request can/cannot be honored. Influence attempts by adolescents are likely to be effective when they match them to their parents decision-making style

28

. Families reporting greater influence by children had older fathers, fewer children, and a mother who worked fewer hours outside the house. Children also exert more influence in higher income and larger families, and families with less restrictive, less authoritative and more concept-oriented communication style. Older children gathered more information for favorable product profiles and less information when cost vs. benefit of acquiring information was high Paxton. Younger children clearly affect parental behavior and purchases, adolescents have full cognitive. Teenagers are more interested in sports wear, T-shirts, denim cloths, cars, bike, deospray, perfumes, entertainment (music, cinema), fitness product. They themselves are the buyers of a larger number of product & service. They also influence the parental decisions. Besides, their age is impressionable. The consumptions pattern they learn spills over to their adlut life. College going teens have their own peculiar needs. They are interested in books, personal cloths & fuel for their scooty bikes. They attend discos & music concerts. They like to spend holiday at some exotic place. They develop brand preference & shopping habits more firmly. Mother & daughters tend to share many brand preference & shopping habits. But out looks so differ about broad beliefs regarding the market such as price-value-equation between them. Collegiate are not only current customers, but potential future one. address the needs of this segments. Television channels programme also

29

TEENAGERS LIFESTYLE ATTITUDES


Todays Teens live in a time of sweeping technological advances, relative affluence; consequently, their attitudes and cultural awareness exhibits a number of distinguishing characteristics. For example, they: Are realistic and optimistic with a strong sense of individualism, but not with the fierce. Independence of the previous generation. Like to be in control and are hip to hype, but not to the point of cynicism. Want and expect to have control over their media experience. Have access to evolving and new technologies such as DVDs, instant messaging, and wireless phones.

Many Teens feel that most grown ups are really stressed out, and they dont want to follow this Example Being really good at your job and having control in your life are important components of Teens definition of success. But, they also give value relationships family is very important to them, and a good marriage is a sign of success. Teens today understand that the needs to be able to turn on a time because they live with short-term change and volatility on a day-to-day basis. Unlike previous eras, Teens also live with paradox, realizing that their choices are filled with a mix of good and bad. Even so, they have a strong sense of empowerment and believe that they can conquer any challenges, actively seeking out causes to support. They are self-assured, with three-quarters or more of them agreeing with the statement I trust my own judgment a lot and I have a very clear idea of my objectives and goals in life.

30

TEENS MARKET

Most marketers tend to shy away from teens groups, believing they dont have credit cards or enough financial ability and therefore arent good direct response prospects. But there are a lots changed in todays teen market. Teens now represent a big market segment, which influences many big name marketers towards them.   Teens(13-19) spend $94.7 billions per year, $3,309 per person.

37 percent of teens income comes from parents, the rest from job.

29 % of teens research products online before a retail purchase. Some $20 to $25 billion of offline spending, therefore, is directly influenced by online research. Teens also influence an untold amount of spending by their parents, everything from cars to travel to computers and other consumer electronics. Teens power is fascinating.

31

WHY MARKETER FOCUS ON TEENS?


Beyond the growth in the Teens population, marketers cannot afford to ignore Teens for numerous other reasons. This growing power base of spenders and influencers are important because they: Have significant discretionary income. Spend family money as well as influence their parent spending on both large and small household purchases. Establish and affect fashion, lifestyle, and overall trends, Provide a window into our society- a view of how it is now, and what it is likely to become.  Market OpportunitiesTeens are a growing market. The Teens population will expand from 32.4 million in 2003 to 50.5 million in 2012. Teens have money to spend. As teens age, their yearly discretionary income increases from nearly $1,500 at age 12 to 13 to nearly $4,500 by age 16 to 17. As a group, Teens of all ages spent a projected $312.5 dollars in 2009. Teens influence household spending. Parents consult the computer and market-savvy teens in their households for large and small purchases.

Market ChallengesTeens have more choices than ever. How will advertisers get and keeps teens attention in the fact of so many products owing for their attention? Teens multitask media. Raised in the age of information and uncertainty, Teens can be skeptical.

32

TEENAGERS AWARENESS AS BUYER:

Teens are aware of the economy and the fact money doesnt grow on trees. They part with money reluctantly than many adult do.

They know in six months, fashion will probably change and take into account when buying clothing.

Teens aged 13 or 14 want to fit in. They buy and wear what others do. At 18 or 19, theyre understanding out and spreading the wings of independence.

 

Theyre the most informed and media-aware group in history.

They have extreme knowledge of technological equipments and they are viewed as responsible family member of their household.

 

They have been marketed to their entire lives. As a result, theyre marketing savvy.

Theyve had more choices than other generations, and, they express positive and negative opinions about products, brands, and companies.

Theyre the first generation of true multitaskers, easily balancing e-mail, chat, and other communications simultaneously.

33

They entire lives have been spent in a world where everythings immediate: instant downloads, overnight delivery, microwave meals.

TV and cell phone privileges to them & it are also important entertainment for them. There of the most important tool for teens today is computer & mobile. Computer & mobile are a central communications system for email, instant messaging, IM, blogs, even phone calls. They dont need much else. If you have products to sell to teens, approach them electronically.

TEENS BUYING HABBITS


34

Offer: Teens always first consider that offer which only made for them. They have a fair amount to spend but are very choosy in certain areas. Many shop in discount stores and use coupons. For the most part, look for lower-priced product.

Graphics: Teens respond to bright colors and splashy graphics. It goes with their upbeat, fast moving, multitasking personalities. Theyre anything but muted and pastel.

Shopping choices:

They have asked parents buy any product. This works with products parents perceives as educational or worthwhile.

Many teenager visits internet website which provides help them to find out the stores in their areas that carry your product.

Tell-a-friend: Because they are so good at communications, teens can spread the word about a product or service faster than a speeding bullet. Tell them to tell a friend, give teens a reason to spread the word. An exceptional product, a big discount, and a meaningful freebie are all good reasons.

Interactivity: Teens love to interact. Instead of static, one-way communications, look to activities in e-mail and on landing pages that encourage participation, such as surveys, polls, games, and message boards. Fun contests and sweepstakes go beyond data collection forms.

WHERE TEENS SHOP?


35

Its not surprising that shopping malls top the list of where both female and male Teens shop. Teens also shop in numerous other venues, including discount stores, convenience stores, grocery stores, and more. As the age goes up, so does the percentage of Teens who shop in any/all locations measured. Overall, girls shop more frequently than boys at nearly every shopping venue studied. After shopping malls, apparel and discount stores are girls most frequented venue. teenagers who prefer internet shopping to buy their favorite products. After

shopping malls, boys most often shop at electronics and convenience stores today there are many

Teens Favorite shopping places


Shopping Malls/Centers Discount Stores Convenience Stores Apparel Stores Grocery Stores Electronics Stores Department Stores

THE ROLE & INFLUENCE OF FAMILY (PARENTS) IN THE BUYING DECISION OF TEENAGER
36

Families As a Consuming Unit The term family is a basic concept, it is not easy to define because family composition and structure, as well as the roles played by family members, are almost always in transition. Traditionally, however, family is defined as two or more person related by blood, marriage, or adoption that reside together. For the purpose consumer studies the family is identified as informal small groups. It is sometime, treated in a more fundamental way as an institution.

Family As A Reference Group Because of strong bonds and intimate interaction among family members, the family as a reference group has one of the strongest most immediate and most pervasive efforts on a consumers personality motivation, and attitude. Family members share certain values, norms and standards that shape their personality and behavior. From the marketing point of view, investigating the family as a consumption unit becomes crucial since attitude toward saving and spending and the family often moulds even brands and product. Marketers are mainly interested in the family member influence on each other on purchase decision. The first thing to know is the characteristic of the best potential families for the product. Another thing to know is to whom with in this family, marketing efforts should be directed. There is a curvilinear relationship between family interaction and social class. However studies indicates the growing influence of children on their parents purchase behavior in a wide variety of product ranges, not just in their own purchase but also those made by the family unit.

Influence Of Family in Buying (Nature And Types of Influence)

37

The reciprocal Nature of Family Influence. The family is not just a social group. It is also an earning, consuming, decision-making unit, and it is of important to marketers because of the influence that family members have on purchase and consumption decision. The areas of this research being to identify the influence of teenagers in the family purchase decision describes the environment which the teenagers are exposed in the family, the process and circumstances under which teenagers influence the purchase decision for the products used in the family. The familys influence comes from the fact that the bonds within the family are likely to be much more powerful and intimate than those in other small groups. Because of these bonds, the family has profound social, cultural, psychological and economic influence on consumers. Within the family, operating as the unit of analysis, a reciprocal influence operates on all decisions. There are the father, the mother and other family members. Since a particular family may have several persons in the other family members category, the decision process for a given family can be complex. Every family member brings his or her own motives, evaluations, beliefs and predispositions to the decision process. Every family member becomes part of the environment for the other family member and influences, and is influenced by them. And the cognitions, behavior and environments of him several persons become an important consideration for the marketer, as do the interactions of the members among themselves. Not only do we need to analyses the cognitions of these

individuals. But also the possible interaction pattern between each of the family members. For the marketer, it is therefore necessary to sort out the extent of influence exerted by the various family members.

There are two main buying influences that operate on the individual within the family: 1. Consumer socialization.
38

2.

Intergenerational influences.

These two factors make the teenagers to understand and develop a cognitive mental mapping model as how the teenagers influential process develops over a period of time. 1. Consumer socialization

Definition: Consumer socialization is the process by which young people acquire the skills, knowledge and attitudes relevant to their functioning as consumers in the market place Scot wars (1974). Through the variety of family interaction, the consumer develop tastes, preference and shopping styles, how to budget money, what types of clothes to wear for what occasions, and also what stores to patronizes. Factors Influencing Consumer Socialization : There are several distinct factors that influence the consumer socializing process. These are: 1. The Background / Environment Factors These include the environmental factors such as social and economic status, social class, age, sex and religious affiliation of the consumer. 2. The Socializing Agents These include individual who have direct influence on the consumer such as parents, sisters, brothers, peers, teachers and the media. The family is found to be important in teaching the rational aspects of consumption while TV viewing encourages consumption for emotional reasons.

Consumer socialization occurs through two types of learning

39

1. The first type is the imitation of other by observing the actions of others in the family. What is learnt early in life has a lasting effect on most people. For example brands loyalty of a product is this transmitted from parents to children. 2. The second type of learning is operant conditioning. This means that consumption behavior

that receives praise and is complemented which is likely to be repeated by a child, while actions that are ridiculed have a negative outcome and are less likely to be repeated. which family influence can be transmitted to the individual within the family: Consumer

socialization occurs in subtle ways that are not always obvious. There are four primary ways in

The parents act as models for the child on numerous consumption occasions. The child learns through observation without the parents conscious awareness or intention to teach.

Parent-child discussions about particular products or brands, why some products are good and are not.

Child-child interactions: These become an important socializing influence when more than one child is present.

The child begins to handle money as he or she becomes older. Thus, through gifts and allowances, the family provides opportunities for a child to become more experienced as a consumer.

2. Intergenerational influences

40

Definition: The intergenerational consumer influences refer to what is passed along form grandparents to parents, from the parents to their children and form the children to their children Renben Hill (1970). Many forms of influence are passed on. These include religious and cultural values, general lifestyle, and attitude toward education, sports, leisure and social life. Such intergenerational influences play an important role in forming product and brand differences. In fact, many consumers have, perhaps, never considered purchasing brands other than those their parents purchased for tem as children. For example; consider the choice of toothpaste, ketchup, bath soap, laundry the brand detergent and many other such products. These preference the product or brand preference might be because it was the one mother used or, because father believed in the manufacturer. Such items are often purchased throughout an individuals adult life without serious consideration of other brands. And this is the marketers dream to get consumers who are highly brand loyal for many decades.

Family Role Structure And Buying Behavior In order to function as a cohesive unit, purchase roles or tasks are assigned and carried out by one or more family members. When trying to reach families, therefore, marketers need to realize that a set of purchase roles exist and come into play within the family. These roles can be identified and they determine how families make decisions.

The Important Buying Roles In The Family Individuals in the family play various roles for different decisions.
41

1. The Investigator (Initiator): This is the person who first suggests the ideas of a product or services and initiates the purchase process, to being with. The initiator can even be a stranger. For example, by seeing someone walking down the stress, wearing a new style of sweater or shirt makes to decide to buy a similar one. A new stereo may be seen in friends house and the friend ( the investigator), turns it on to demonstrate the sound quality. The matter is then discussed at home with family members (co-decision makers) and decides whether the brand suits the requirements. 2. The Influencer: This is someone whose opinion is valued in the decision-making process. An influencer may be a friend, brother, sister, spouse, doctor etc. All these persons have a direct or indirect influence on the final purchase decision.

3. The Decider: This is the person who makes the final decision on what brand or make to buy, after all aspect such as price, quality, servicing, having been thought over.

4. The Purchaser ( Buyer): This is the individual who actually purchases the product, pays for it, takes it home or arranges for delivery. Very often, the purchaser and the decider are the same person, particularity for high value items.

5. The Consumer: He is the user of the goods or service.

TEENAGERS AND THEIR FAMILY IN INDIA


42

Researching the teenage group would be a challenge in any county, but particularly so in India. This life stage is characterized by change, and an age when they are most uncertain about identity. This is the age when they are transiting between the innocence of childhood and problems of adulthood, dependence and independence etc. Though they are influenced by group behaviors, their aim is to progress towards individualism. Before we proceed we need to map the teenager family in India and try to fine the answer for the following questions. In the 21st century, liberalization followed by media explosion has brought aspects of global culture right into the drawing rooms of middle-class India and changed their attitudes and worldview in ways that we still need to understand. Unlike the 80s and early 90s, where the child was supposed to grow into an adult without distinct youth phase, today, we cant get away from thee youth generation. Marketing seems to have created a new social segment- The Indian youth-with its own attitudes and lifestyles and aspirations, built around brands that purport to tap into these very attitudes.

Facts About Indian Teenagers


Here are some data about Indian teenager: 47 percent of Indias 1 billion populations are under the age of 20 y y y y Number of teenagers 160 million. 22 million of the teenage populations belong to the urban middle class. Indias young consumers annual spending power is an estimated US$6.5 billion. By 2015 Indians under 20 will make 55 percent of the population.

Todays India some argue, is being transformed by new conquering force: economic liberalization, technological change and global capitalism. Under these new rules, the beneficiaries, a new generation of sophisticated consumers, are emerging. Theyre young; admire capitalism; watch more than 50 TV satellite channels; theyre technology savvy; guiltless consumers and have tastes towards modern western culture and cuisine. And they are beginning to have an impact on Indias development and its positioning in the world.

43

HOW INDIAS NEW GENERATION IS DIFFERENT THAN OLDER GENERATION


OLDER GENERATION
Idealizes Gandhi-style poverty, socialist theory. Grew up amidst famines. Had only one state-run TV channel.

NEW GENERATION
Wants to get rich, admires Capitalism Grew up amidst food surpluses Can watch 50 TV channels via cable and satellite TV

Mostly techno phobic. Tended to be avid saver Grew up with stable government let by one party; upper caste lower domination. Favored medicine, engineering, other or civil services as career. Average literacy level of 30 %

Mostly techno savvy. Tend to be guiltless consumers. Grew up with constantly coalition; more voice for caste. Favor computer-driven and high paying career choices. Average literacy level of 52%.

Tastes tended toward tradition: dinking tea, eating at home.

Taste tend towards modern: food and sodas, eating outside.

44

RURAL TEENAGERS BUYING BEHAVIOR


In the recent years buying behavior of rural families has been changed. The role of male rural youth in the purchase decisions of the family has been becoming more and more significant. Moreover, the marketers always found it easier to target youth for a whole range of product. The most important age group of male rural youth that has a major influence in family buying decision and are also concerned about latest brands and products is the age group of 15 to 20years. The best media to communicate the message are television and cinema. The favorite slots can be crickets matches (especially when India is playing and excellent when India is playing with Pakistan) and movies preferably action movies being featured on television or a latest action movie running in cinema halls. DD1 and DD2 have the highest reach due to lack of cable television facility and Sony where cable television has reached. Radio and newspaper are not popular amongst rural youth except to access cricket news. The advertisement recall is high of action sequence or a very unique idea like Mirinda clothes. Their endorsement of a product by their favorite cricket and media stars may not be enough to influence them to buy a product but it definitely increases the registration and recall of the advertisement. Tendulkar very high recall in rural areas as well. So, he can be used effectively for both. The role model of male rural youth are elder members of the family who have been successful in big towns, cities or mentors. So this theme can be used to influence youth. The western attire becomes a part and parcel of male rural youths dress code. But branded clothes and shoes have not been able to make any mark here. To male rural youth prefers sober wear and there is a huge potential as has been proved by major rural sales of Arvind Mills brand Ruf & Tuff. Females are mostly attracted towards the film stars or celebrity products such as LUX soap.

45

Rural youths are the major consumer of cold drink in these areas. Thus, if the chocolate, confectionery, wafers, noodles, companies have to enter these market youth are their only gateway. Parle-G or tiger biscuit\ts have become family consumption product but its will take a long time for premium products like Marie Gold or Milk Bikies to enter these markets and even that can be only possible through youth or teenager. For FMCG products especially the personal care products like toothpaste, soap, tooth brush, shampoo, shaving product etc. male rural youth are the prophets of change. Motorcycle is the favorite two-wheeler amongst rural youth. It is important to realize that the rural guys looks for the same attributes as any other youth and is the most important category to be targeted in rural areas. Here they should encash on the macho image associated with a bike for these guys. For family durable like television, audio system and refrigerator youth can be an important influencer though not the ultimate decision-maker. At the same tome the big brands will have to fight the local and spurious brands on various fronts price, reach, relationship marketing and after sale service. One of the most convenient categories for rural market research is the male rural youth in the age group of 15 to 25years. The important locations to spot male rural youth for interviews and group discussion are cricket playgrounds and retailers shop/STD booth. A brainstorming session was conducted to zero down on the issues to be focused on and select representative items for each product category. In order to form an overview of various issues an impressionist 2000 in U.P. and Haryana. A series of group discussions were at various convenient locations in the villages and information scrutinized to form an impression over each of the issue.

46

TEEN BRAND LOYALTY


Advertiser and Teens Marketer advertise for the most part in the categories where Teens spend money, such as clothing, cosmetics, and entertainment. Many of the categories of advertisement advertised to Teens reflect their influence on household purchases, such as hair products, cosmetics, and sporting goods. Top 10 Advertising categories for teen title Cosmetics/Beauty Aids Ready-to-wear Footwear Media/Advertising Hair productPersonal Hygiene/Health Sporting Goods Audio/Video Equipment/Supplies Government/Organizations Medicines/ Proprietary Remedies When compared to all Teens, Teens who are heavy magazine readers are also more likely to be brand loyal across a variety of product categories. For example, they are: 21% more likely to be loyal to their brand of sneakers/athletic shoes. 25% more likely to be loyal to their brand of shampoo. 21% more likely to be loyal to their brand of disposable razors.

Of heavy magazine readers, older Teens are more likely to be brand loyal than younger teens to variety of products, including jeans, eyeliner, eye shadow, mascara, facial cleaner, body soap, disposable razors, toothpaste, and tampons. Younger Teens are more brand loyal to salty snack and cookies.

47

MOBILE INDUSTRY IN INDIA


With rapid consumerism sweeping the country, India has emerged as the second largest mobile handset market, poised for explosive growth by 2007. The major drivers for growth have been the demand and also the existence of companies providing the most technologically advanced handsets at justifiable prices. The technological developments have been the driving factor for the increasing demand graph. The mobile handset market in India is estimated to be worth Rs.9.05billion (US $2billion) as of 2005 and will surge by 62% with approximately 200-million subscribers nationwide by 2012. It is also learnt that the Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services. There has been a growth in the mobile handset market in India and the demand is increasing with the increasing tele-density. The market is overloaded with the number of mobile handset providers due to which the customer is able to bargain for a reasonable price for the mobile. The various players are Nokia, Samsung, Motorola, Sony Ericsson, Alcatel, Panasonic, Siemens, BenQ, Mitsubishi, Philips, NEC, Sagem, LG, Sharp, Sendo, Innostream, Pantech, VK Mobile, Palm, O2, i-mate, Qtek, BlackBerry, Haier, Bird, Eten, HP and XCute. Dominated largely by Nokia with a total market share of 60%, followed by Samsung (14%) and Motorola (7%) respectively, Indian mobile handset market is currently catering to 45 million subscribers (June 2005). Recent records show that Indian GSM cellular user base has grown from 43 million, as estimated in May, to 45 million in June 2008, representing a growth of 3.50% in the month under review, witnessing large and propitious foreign investors flooding the market eyeing for large chunks. In addition, recent changes imbibed in the government policies that price mobile handsets at a lower end with flexible custom-duty for new entrants are startling the market with multiple models largely aimed to higher and middle-income groups. Industry sources, though, view the market to be at its nascent stage, many large EMS (Electronic Manufacturing Services) companies are seriously considering setting up their handset facilities in India.

48

MAJOR PLAYERS
Nokia

A world leader in mobile communications, Nokia has established itself as the leading preferred brand in many markets. Backed by its experience, innovation, user-friendliness and secure solutions, Nokia is the world's leading supplier of mobile phones, fixed, mobile and IP networks. Nokia offers a line of versatile business phones incorporating mobile voice, mobile messaging, email solutions and business-critical applications and all the latest applications to meet the needs of different user groups.

Samsung

Samsung manufactures leading models in all segments of the mobile handset market. The company's aim is to launch a slew of mobile phones with unique features that satisfy different customer and market segments. Samsung's key insight is that apart from technology and functionality, a critical factor for generating customer preference would be 'glamour' and 'innovation'. Innovation is just one of the things that have kept Samsung at the top of the mobile market. The conglomerate has made great strides in customer satisfaction through a strong local presence via a dual partner distribution strategy. It has an all-pervasive supply chain that delivers greater value to over 5,000 sales points and retailers.

49

Motorola

Motorola offers market-changing icons of personal technology - transforming the device formerly known as the cell phone into a universal remote control for life. A leader in multimode, multi-band communications products and technologies, Mobile Devices designs, manufactures, sells and services wireless subscriber and server equipment for cellular systems, portable energy storage products and systems, servers and software solutions and related software and accessory products.

Sony Ericsson

Their mission is to establish Sony Ericsson as the most attractive and innovative global brand in the mobile handset industry. Their latest technological applications make them stand at the forefront of innovation.

50

TEENAGERS AND MOBILE PHONES


The Basics There are no hard and fast rules about the right age to give teenager a mobile phone. But as teenager approaches high school, its likely that others in his peer group will start to get their own mobiles, and other teenager might want one too. When your child says he/she wants a mobile phone, you could talk to her/his about why he/she wants one. What does he/she want to do with it? Do many of her/his friends have mobiles? Try to understand why she/he feels its important to have her/his own phone. These conversations will help you decide if youre comfortable with the idea. If the decision to goes ahead with it, parents might like to talk to the parents of their childs friends about the kinds of phones and plans they have. This can help you settle on the right phone and service for your child. When choosing a phone and plan, bear in mind that teenagers often use mobiles differently from adults for example, they text far more than they voice call. Teenagers are also rapidly shifting towards using mobile phones as multimedia devices. This is because mobiles can be used as web browsers, cameras, photo albums, diaries, address books, MP3 players, game consoles and more.

51

Advantages of Mobile Phones Networking A mobile phone will almost certainly become a very important communication and networking tool for teenager. A phone of his own can promote teenagers sense of belonging and connection to both friends and family. It lets him/her stay in touch anytime and anywhere. Safety

Mobile phones are one way for parents & teenager connect each other whenever they need to. It can give them peace of mind and help keep their child safe when he/shes out without adult supervision but dont rely solely on a mobile to keep her/his safe. Here are some tips for using mobiles to promote safety: Let teenager know he/she can call or text you at any time if he/she needs your help. Familiarize teenager with the speed dial function on the phone. Store the numbers she/he can call in case of an emergency. Program their own number into the phone and save it under the name ICE (in case of emergency). If teenager s involved in an accident when their parents are not with him/her, emergency services or others can call the ICE number to alert them. Note that this will be helpful only if the mobile phone isn t protected by a pin or password. Skill development

A mobile phone will give your child the opportunity to develop mobile communication etiquette, and media and communication skills.

52

Disadvantages and what to do about them Some can head off some of the disadvantages that might come with teenage mobile phone use by promoting safe and responsible mobile phone behavior. To start with, its a good idea to establish rules, such as: when it s OK to take calls or reply to texts when the phone should be on silent or switched off whether teenager s are allowed to have the phone in her/his room at night. Their parents might want to talk about and agree on consequences if the rules are broken. Their parents could also find out their childs schools policy on mobile phone use, and make sure your child knows what it is. Talking to teenager about limiting who should have his/her mobile phone number can help keep him/her safe. For example, parents might suggest their child to shares it only with close friends and family, not strangers or people he/she doesnt know well. Big phone bills Teenagers and their parents can avoid big mobile phone bills by: Discussing the cost of mobile phone use and agreeing on a monthly budget. Starting with a prepaid plan. The call and text rates are generally more expensive than post-paid plans, but their parents can set a monthly limit. Once the credit s used up, teenager can still receive calls and texts, play games or listen to music, but he/she can t make calls or send text messages until his/her credit is topped up. Being aware that it can be easy to run up a large bill on a post-paid plan. This is because teenagers can continue to make calls and send texts (at a more expensive rate) after he/she s gone over the voice/text monthly allowance. Parents discussing with their child what the consequences will be if she/he goes over the plan cost when using a post-paid plan.

53

Disabling MMS messages (photos and video)

MMS messages can be expensive, and

most services give parents the option of disabling them. Parents alerting their child to hidden costs for example, texting to a mobile number to receive a ringtone (these are generally subscriptions that incur ongoing costs) or voting on a reality TV show via SMS (these texts can be charged at a higher rate than normal text messages). Discuss these issues with their child, and set ground rules these could

include not texting advertised numbers, and not purchasing or downloading content without parents permission. If their child uses his/her phone responsibly, parents might like to reward him/her with an upgraded handset or plan after 6 or 12 months. Accessing the internet

Many phones are now web-capable. With a data plan, their child could access the internet and download and upload text, images, video, games and other programs or applications. Its very difficult to monitor or supervise their childs internet access on his/her phone. Parents could consider choosing not to get a data plan until their child is older and parents are confident hes a responsible cybercitizen. It might also be a good idea to explain that downloading some kinds of data such as music and video might go over their childs data limit.

54

Mobile addiction

Many teenagers develop a strong sense of ownership and attachment to their mobile phones. They can be very upset if the phones taken away or lost. The following tips might help:
y y

Back up the content of teenager s phone on their home computer every few weeks. Agree on some phone-free time on a weekly or daily basis. This is a good idea if parents are concerned their child is becoming too attached to his/her phone. Take the phone away only when parents have agreed in advance with their child that this will be the consequence for not following agreed phone rules. Teenagers sometimes lose or damage a phone or two before they learn to look after them, so it might be best to give teenagers an inexpensive handset as her/his first phone. When he/she shows that he/she can take care of a phone, parents can reward him/her by giving him/her a more expensive model. Negotiate with their child about how they ll deal with replacing a lost or damaged phone before it happens for example, by deciding who ll pay for a new handset.

Radiation concerns In recent years, there have been claims that electromagnetic radiation from mobile phones can cause brain tumors. But research findings are inconclusive. The World Health Organization (WHO) says that, in the large number of studies conducted over the last two decades, no adverse health effects have been established for mobile phone use. But WHO also provides advice about how to reduce teenager exposure to electromagnetic radiation from mobile phone use. If parents are concerned about radiation from mobile phones, they can advise their child to:
y y

y y y

Not carry the phone on his body (such as in a pocket) Switch the phone to flight mode when it s not in use, such as overnight (other functions, such as the alarm, will still work) Consider using a headset when possible Limit the duration of calls and/or texts whenever possible Use the mobile phone in areas with good coverage this means the phone will transmit at reduced power.

55

Mobile phones: facts and stats


y

Mobile phones are very popular with teenagers 76% of kids aged 12-14 years and 90% of kids aged 15-17 years have mobiles. Girls tend to use their mobiles more than boys. They spend an average of 14 minutes texting and 7 minutes talking a day. Boys spend 9 minutes texting and 4 minutes talking. The majority of sexting is carried out by young men circulating images and videos of young women. But young women also send images of young men. Among kids aged 12-14 years, 20% own phones with advanced features. The percentage goes up with age 34% of those aged 15-17 years have advanced phones. On average, boys aged 11-18 years spend 1 hour and 14 minutes consuming mobile media. The average for girls of the same age is 1 hour and 58 minutes. Among kids aged 8-17 years, 22% use their mobile phones to take photos, 16% use mobiles for playing games, 10% use mobiles to listen to the radio, 7% use mobiles to record video footage, and 3% use mobiles to TV shows or clips.

56

RESEARCH METHODOLOGY

DATA COLLECTION
The secondary data study gave us insights on understanding consumer buying behavior and various concepts on purchase of mobile handsets. Primary data will be collected through Questionnaire.

SAMPLING
We have used the Convenience Sampling Method. The primary sample of 100 in which 50 were working professionals and the rest 50 are students. From our sample size we came to understand that mobile handsets which came up with latest handsets would be preferred by students and the younger segment of the working professionals. However in case of working professionals over the age 35 give more priority to handsets which provide maximum utility and a very sophisticated look.

HYPOTHESES
To further prove our analysis we had taken three hypotheses into consideration which proved vital in understanding the buying behavior of mobile handsets and the preference for the purchase of mobile handsets. To prove the hypothesis, two different statistical tests were used, Ztest and Chi-Square test. A test survey was conducted for the assumptions made in Chi-Square and Z-test. Through the entire process of our study we also came to understand the brand preference and the brand recall of Nokia is higher as compared to the rest in the mobile handset industry in India.

57

RESULT  Currently you own a --

Mobile Name

Other 25% Nokia 40%

Samsung 20% Sony Ericsson 15%

According to the survey done, it was seen that 40% of the respondent had Nokia as their current mobile phone, 15% of the respondent had Sony Ericsson as their current mobile phone, 20% of the respondent had Samsung as their current mobile phone and rest i.e. 25% had other phones like Blackberry, L.G, etc.

58

 The service provider with connection to their mobile handset-

Service Provider
Airtel 5% Loop 17%

Other 59%

Vodafone 19%

As per the survey done, it was seen that 19% of the respondent used Vodafone as their service provider with connection to their mobile phones, 17% of the respondent used Loop as their service provider, 5% of the respondent used Airtel as their service provider and rest i.e. 59% of the respondent used other service provider like Trump, Reliance, etc.

59

 Who bought the mobile for you?

Who Bought

Father 28%

Other 62%

Elder Brother/sister 5% Self 5%

According to the survey done, it was seen that 28% of the respondent got the mobile phone from their Father, 5% of the respondent got their mobile from their Elder Brother/Sister, 5% of the respondent got their mobile themselves and the others i.e. 62% got their mobile hone from other like relatives, as a gift from friends.

60

 You took a mobile because-

Why you took mobile

Everybody had 20% You wanted 10%

Other reason 60%

Somebody asked 10%

As per the survey done, 20% of the respondent took a mobile because everybody around them already had one with them, 10% of the respondent took because they wanted to buy it, 105 of the respondent took because somebody asked them to get one for themselves and the rest took because of the reasons.

61

 What is the most important reason for purchasing the mobile?

Important reason for having mobile

Gives you convenience 30% Other reason 56% Communicate with friends No landline 9% 5%

According to the survey done, 30% of the respondent told the important reason for having a mobile with them is that it gives convenience of calling anytime, 15% of the respondent told they had it because it makes easy to communicate with friends, 5% told they had it because their was no landlines in their house so they preferred a mobile phone and 56% i.e. the rest of the respondent took because of other reasons

62

 What accessories have you bought with your mobile?

Accessories you bought with it


Only A Plastic Cover 10%

Only A Chord/String 20% None So Far 70%

As per the survey done, 10% of the respondent bought Plastic Cover with their mobile, 20% of the respondent bought Chord/String with their mobile and the rest i.e. bought nothing with their mobile.

63

 Do you have a hands free kit?

Do You Have A Handsfree Kit?

No 25%

Yes 75%

According to the survey done, 75% of the respondent had a hands free kit like handset with them which would be used for attending calls, listening music, etc., and the rest i.e. 25% of the respondent did not have a hands free kit with them

64

 Is your mobile phone always ON?

Is Your Mobile Always 'ON'?


No 10%

Yes 90%

As per the survey done, 90% of the respondent told that they always keep their mobile phone ON i.e. in night also and the rest i.e. 10% of the respondent told they dont keep their mobile phone ON always.

65

 Generally, you use your mobile phone for

Generally you use your mobile for?

Calling home 50%

Calling Your Friends 50%

According to the survey done, 50% of the respondent use their mobile for calling friends and the rest i.e. 50% of the respondent use their mobile for calling home whenever they are out of the house.

66

 The most common place where you use your mobile are-

Where Mostly You Use Your Mobile

At home 35% Other Place 60% In Public Transport 5%

According to the survey done, 35% of the respondent mostly use their mobile at their house, 5% of the respondent use their mobile in public transport and the rest i.e. 60% of the respondent use their mobile at other places.

67

 Can you do without a mobile for a day?

Can You Do Without Your Mobile For A Day?


No 30%

Yes 70%

As per the survey done, 70% of the respondent cannot stay without their mobile phone even for a day and the rest i.e. 30% of the respondent can stay without their mobile phone for a day.

68

 While talking over the phone do you-

While Talking Over the Phone Do You

Roam around 60%

Stand at one place 40%

According to the survey done, 40% of the respondent told that they stand at one place and complete the conversation and the rest i.e. 60% of the respondent told that they roam around while talking over the phone.

69

 How private do you consider the information stored in your mobile

phone?

The Information Stored In Your Mobile Are?


Not Private 10% Very Private 20% Somewhat Private 70%

As per the survey done, 20% of the respondent think that the information stored in their mobile phone are Very Private, 70% of the respondent think that the information stored in their mobile phone are Somewhat Private and the rest i.e. think that the information stored in their mobile phones are Not Private.

70

 How often do you place your phone on silent/vibrate?

How often you keep your phone on silent/vibrate?

Never 40% Rarely 60%

According to the survey done, 40% of the respondent told that they never keep their mobile on silent/vibrate mode and 60% i.e. the rest of the respondent told that they seldom/ rarely keep their mobile phone on silent/vibrate mode.

71

DISCUSSION
The above results reveal that the teenager in the age group of 13-19 have mobile with them and most of the teenager have Nokia handset with them. The maximum teenager has Vodafone as their service provider. Maximum teenager gets their mobile phones from their father. Their father, brother or sister buy mobile for them. It is seen that teenager buy mobile phones by getting influenced by someone or the other. Mobile phones are usually purchase because of its convenience of easily getting connected with the people. Majority of the teenager cannot stay without their mobile even for more then a day. This shows that they are so attached with the phone. They keep shifting from one brand of mobile phone to the other as per the additional attractive features that comes along with it. Teenager usually get phone to get in connect with their family members. Teenager feels that the information stored in their phone stays somewhat private. As per teenagers mobile phone reflects their status. Overall, it is observed that teenagers are highly addicted towards mobile phones and it acts as one of the basic needs of teenagers

72

CONCLUSION
Teens are active consumer in terms of money they spend as well as they influence their families. Todays teenagers do their own research to purchase product because they want to make informed decision and they are particular about what they want and whey want. They have their own views. Todays teenager exhibits a strong need for individuality in their self

expression, they also display a deep attachment and respect for their family. Teenagers are also important part of the economy. The significance of teenagers buying behavior has application in daily lives as well as decision making. They have a significant income of their own to spend and they have also important role in household purchasing. It will help marketer to understand and connect with teenagers effectively.

Teenagers buying decision is influence by family as well as different media and so marketers should concentrate on media which influence the teenagers most.

A Survey was conducted to find out which mobile teenager has a current time. A survey was also conducted who bought mobile for them and for what they bought it. Survey was conducted to find out how important their mobile to them is.

It is concluded that it is difficult for marketer to attract teenagers to their product. As per marketer introduced new product in market with changes in product the mind ofteenagers changes day by day. It is challenge before marketers to sell their products to them. Teenager are diverse, vibrant, growing and crucial market in the world today. Their beliefs, Attitudes and behavior will affect the market place for many years to come.

73

APPENDIX
NAME: AGE: SEX: CONTACT NO:  Currently you own a y y y y Nokia Sony Ericsson Samsung Other

 The service provider isy y y y Airtel Loop Vodafone Other

 Who bought the mobile for you? y y y y Father Elder brother/ sister Self Other

 You took a mobile becausey y y y Everybody around you already had one with them You wanted to buy it Somebody asked you to get one for yourself Any other reason

74

 What is the most important reason for purchasing the mobile? y y y y Gives you the convenience of calling anytime It is easy to communicate with friends No landline, so preferred a mobile Other reason

 What accessories have you bought with your mobile? y y y Only a plastic cover Only a chord/string None so far

 Do you have a hands free kit? y y Yes No

 Is your mobile phone always ON (i.e at night also) y y Yes No

 Generally, you use your mobile phone for y y Calling your friend Calling home whenever you are out

 The most common place where you use your mobile arey y y At home In public transport Other place

75

 Can you do without a mobile for a day? y y Yes No

 While talking over the phone do youy y Stand at one place and complete the conversation Roam around

 How private do you consider the information stored in your mobile phone? y y y Very private Somewhat private Not private

 How often do you place your phone on silent/vibrate? y y No, never Seldom/rarely

76

BIBLOGRAPHY Marketing management- Philip Kotler Marketing management- V.S.Ramaswami, S. Namakumari. Consumer behavior-Michael Solomon. Consumer behavior-Del.I.Hawkins Commentary on Consumer Buying Behavior- S.A.Chunawalla.

WEBLIOGRAPHY

 www.google.com  www.nokia.com  www.samsung.com  www.sonyericsson.com

77