Consumer Behaviour

An Introduction

Professor Rajneesh Krishna

Consumers and Customers

Two perspectives
Who is the final user of the product/ services Permanency in the usage of the product/ services or the retail point

Professor Rajneesh Krishna

Consumers and Customers

Two perspectives
Who is the final user of the product/ services Permanency in the usage of the product/ services or the retail point

Professor Rajneesh Krishna

Consumers and Customers

Two perspectives
Who is the final user of the product/ services Permanency in the usage of the product/ services or the retail point

Professor Rajneesh Krishna

Why Study Consumer Behavior

Professor Rajneesh Krishna

Have consumers been always important

Professor Rajneesh Krishna

Emphasis given to the consumers have been different in the different phases of history

Professor Rajneesh Krishna

Modes of customer relations

Feudalistic mode of production customization for elite - individual Mass production production, product and selling concept Development of Marketing Concept management sciences Niche marketing Relationship marketing Loss and gain of consumer orientation
Professor Rajneesh Krishna

Evolution of CB as a discipline
1940s
Beginning of teaching Business management Faculty was dominated by economics and commerce graduates Consumer was supposed to be a rational man as imagined by Adam Smith trade off Domination of production and product concept

Professor Rajneesh Krishna

Evolution of CB as a discipline
Later half of 1950
Emergence of marketing concept Irrational consumers Emergence of psychologists in the area of consumer behavior Hidden meaning of consumer goods and brands

Professor Rajneesh Krishna

Evolution of CB as a discipline
1960s and 70s
Emergence of management professional as a researcher transition from model of irrational consumers to consumers as problem solver Eg Hierarchy of effects model, cognition to attitude to behavior

Professor Rajneesh Krishna

Evolution of CB as a discipline
1980s
proliferation of brands, decrease in leisure time cognitive miser division of decisions into
low involvement and high involvement

endorsement brand image

Professor Rajneesh Krishna

Evolution of CB as a discipline
1990s
Influence of collectivity in decision making Increase in connectivity Increase in brand reach cultural connotation of consumption

Professor Rajneesh Krishna

Evolution of CB as a discipline
And now
Holistic framework

Professor Rajneesh Krishna

Consumer Behavior
Consumer behavior is a discipline which encompasses all the processes involved in acquiring, using and disposing of products, services and ideas. As a discipline it is also concerned with the results of such acquisition, use and disposal.
May occur with or without purchase Not only when money changes hands but also when people leave there old values, practices, attitudes and beliefs for social good.
Professor Rajneesh Krishna

Scope of Consumer behavior

Professor Rajneesh Krishna

Individuals, families and organizations Unit of consumption

Whether, why, when, how, what, from where, how much, with what frequency

To Acquire, use and dispose

Which Product, services and ideas

In the consumption roles of Initiator(s), Information gatherers, Influencers, Decision makers, Purchasers, Users, Disposers

Result of consumption

Result of consumption

Consumption culture, societal culture, Professor Rajneesh Krishna Satisfaction/ dis satisfaction, perception, social structure learning, memories and attitudes

Understanding Consumer
Sociology of consumption Psychology of consumption Motivation Personality Learning Attitude Perceptions

Social groups Family Culture and institutions Class & Lifestyle

Consumer Decision
Professor Rajneesh Krishna

Feedback

Consumer orientation should inform all the 4 Ps of marketing

Professor Rajneesh Krishna

Customer orientation

The case of Asian Paints

Professor Rajneesh Krishna

Consumer Insights in Brand Building and communication

Examples of
Maggi vs Kellog

Professor Rajneesh Krishna

MOOV v/s IODEX

Iodex - An established player in the pain
relieving ointment category
A part of the necessity items normally stocked in every Indian household A legend of sorts In the league of Vicks, Burnol, Dettol

MOOV decides to challenge the leader

Professor Rajneesh Krishna

MOOV v/s IODEX

A qualitative study,
That the colour & odor of Iodex are the only weaknesses of the IODEX

Consumer has a strong perception of Iodex

being a pain reliever; product delivers; heritage Any sort of pain and you can rely on Iodex
Professor Rajneesh Krishna

MOOV v/s IODEX

Also reveals that,
The housewife is the highest user of IODEX And the largest area of application is her back

How does MOOV own the high-ground?

Professor Rajneesh Krishna

Enter MOOV

Offers Color & Odor benefits

But these benefits are not strong enough to

pull a brand loyal consumer

What next? Iodex is = any kind of pain, apply Iodex So lets position MOOV as the
Professor Rajneesh Krishna

MOOV, the backache specialist

Professor Rajneesh Krishna

ONIDA Colour TVs

Refrigerators; pride of place status in Indian homes CTVs started replacing the refrigerators from drawing rooms from Year 1982 onwards Crown & Weston were the market leaders All brands communicating about features, features and features; reason to buy Enter ONIDA; Rational v/s an Professor Rajneesh Krishna emotional attachment

ONIDA Colour TVs

All TVs speak about features at par
One feature greater v/s another approach

Onida
JVC technological back up The first vertical monitor TV Only with remote models To target the top-end customer Onida will not take a rational approach Take the consumer need pride-of-place at home into account & build on it
Professor Rajneesh Krishna

ONIDA Colour TVs

Lets make Onida the Mercedes Benz of all TVs

Exclusive Status / Esteem Basic + looks Basic + Basic Nominal level

Professor Rajneesh Krishna

Fundamental consumer need satisfaction hierarchy

ONIDA Colour TVs

A status symbol that everyone else envies Enter Neighbours Envy. Owners Pride A status symbol

Professor Rajneesh Krishna

Thank You

Professor Rajneesh Krishna