Arun Kumar V - Consumer Insights
Arun Kumar V - Consumer Insights
Arun Kumar V - Consumer Insights
ASSIGNMENT – 1
CASE STUDY – 1 :
TOPIC : INCOME , SOCIAL CLASS & CONSUMER BEHAVIOUR – A FOCUS ON
DEVELOPING NATIONS
INTRODUCTION :
LITERATURE REVIEW :
The study of individuals, groups, or organisations, as well as all behaviours
involved with the purchase, use, and disposal of products and services, is known
as consumer behaviour. Consumer behaviour refers to how a person's
emotions, attitudes, and preferences influence their purchasing decisions.
Consumer behaviour is influenced by a consumer's set of beliefs about the
world, according to behavioural science. Beliefs are psychological in nature, and
they are so deeply ingrained that they inhibit consumers from critically
evaluating alternatives, perpetuating existing habits and routines. Companies
that try to persuade customers to change their behaviour by ignoring or
disputing their beliefs are fighting an uphill battle. A person's purchasing
behaviour might be influenced by their income. Consumers with more money
have more purchasing power. When a customer has more money to spend, or
when a consumer has more disposable income, he or she has more
opportunities to spend on high-end items. Consumers in the low- and middle-
income groups, on the other hand, spend the majority of their income on
necessities such as groceries and clothing.
The enormous growth of the burgeoning middle class in China, Indonesia, India,
and other developing nations will continue to cause huge shifts in consumer
behaviour and societal transformation. As a result, the following will occur: (a) a
significant increase in income; (b) financial and economic reforms that boost
employment and income growth; (c) an increase in consumer spending that
boosts marketing organisations' efficiency and productivity, further improving
the income generation cycle; and (d) the birth of Electronic copy available at: The
Impact of Income, Social Class, and Consumer Behavior on Developing Countries
6683 knowledgeable and experienced buyers who are willing to pay a premium
for quality and value over price.
According to researchers, a global consumer base will grow from the bottom of
the upper middle class in developing countries, who will be more global in their
aspirations and buying patterns. This is primarily owing to their interest in and
exposure to modern technology, as well as the fact that it has become more
affordable as their income has increased. The Internet's influence on consumers
will continue to grow. In China, for example, it is available to 68 percent of the
middle class, compared to 57 percent of the overall urban population.
Consumers in this category have been dubbed "knowledge consumers" or
"smart consumers." Because to the rise of the middle class, sophisticated and
experienced shoppers like Mohammad Ekhlaque Ahmed, Nayyer Samad, and
Marium Mateen Khan are willing to pay a premium . The dominant factor will be
a premium for quality and the consideration of discretionary items, not merely
fundamental necessities.
Food, beverages, and tobacco will continue to be the most popular product
categories in the next ten years, but their share of total consumption will drop
from 42 percent to 25 percent, according to researchers. Communication
consumption, which accounts for only 2% of overall consumer spending, is
increasing by 13%. Transportation, education, and health care are three more
key growth product/service categories.
KEY FINDINGS :
Income and Social Class is an important factor that comes under the
Consumer Influences Category – which influences Consumer Buying
Behaviour .
The research has been conducted in Latvia , which is a country in Europe .
The Latvians generally give importance to music , art etc.,
Before buying a product , it has been observed that a person goes
through a stage of mental budgeting and financial management process
to manage their money .
People's consumption behaviours vary as they rise up the economic
ladder.
Some countries like , Taiwan where people spend less on fundamental
items because they are more interested in the discretionary items and
relative luxury items.
Food, beverages, and tobacco will continue to be the most popular
product categories in the next ten years, but their share of total
consumption will drop from 42 percent to 25 percent, according to
researchers .
Consumers with more money have more purchasing power.
Consumers in the low- and middle-income groups, on the other hand,
spend the majority of their income on necessities such as groceries and
clothing.
CASE STUDY – 2 :
TOPIC : PSYCHOLOGICAL FACTORS INFLUENCING CONSUMER BEHAVIOUR
The study of consumer behaviour emphasizes the “why” and “how” questions
involved in decision making and buying behaviour. This exciting field visits a
dynamic blend of themes of consumer marketing strategies, psychology and
behavioural discipline. Consumer behaviour in this day and age is highly
applicable to modern society as it is an integral part of our everyday lives. This
paper examines the many challenges involved with discovering individual
consumers, as they differ greatly from one another. It focuses on the rationale
behind common consumer decision making processes and analyses the ways in
which marketers can better understand how consumers think and behave. This
paper outlines the significant factors that impact consumer behaviour
throughout the theoretical framework with the topics of: Internal Influences,
Motivation, Emotions and Personality and Influencing attitudes and behaviour.
These subject matters brings a comprehensive outlook into the complex mind of
a consumer by examining individual information processing, learning, and
attitude and behaviour change.
INTRODUCTION :
Every element of our lives revolves around the consumption of products and
services, therefore consumer behaviour can be thought of as everything.
Because it focuses on the full consumption process, including issues that
influence a customer before, after, and during a purchase, the field of consumer
behaviour includes a wide range of topics. Almost all human behaviours are
connected to consumption in some form. Individuals are directly or indirectly
involved in consumer behaviour when they travel, shop, or watch television. It
can be defined as the processes that people go through when they choose, buy,
and utilise things or services to meet their needs and preferences.
Consumer psychology deals with the way individuals or groups are involved with
consumer activities and the effect it has on them personally. It is quite difficult to
comprehend consumer psychology without having an understanding of the
ways individual’s process information and make decisions. Extensive research of
consumer psychology highlighted the underlying aspects of individuals that
make up consumer engagement.
LITERATURE REVIEW :
Internal effects, which include perception, attention, and interpretation, are the
main factors emphasised in the theoretical framework. These themes are crucial
in explaining the aspects of the perceptual process as well as the impact of
marketing stimuli. The second component, Motivation, Personality, and
Emotions, offers a psychological viewpoint on the motivation process, as well as
insight into variances in consumer personality and the impact of emotions.
People see items as unique from other stimuli because they have a distinct form,
according to the ground figure principle. Individuals can use this principle to
understand and process incoming information. One component of the stimulus
(figure) appears to stand out as a solid entity, whereas the rest of the stimulus
appears to be less prominent (ground). When an individual is familiar with an
object, they can tell which item is the figure and which is the ground. When it
comes to customers, marketers will frequently strive to make the image's centre
point the information that they want to stress.
KEY FINDINGS :
The study of consumers helps firms and organizations improve their 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 influenced 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 decisions and marketing
outcome; How consumer motivation and decision strategies differ between
products that differ in their level of importance or interest that they entail for
the consumer; and How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively reach the consumer.
Family is the most influential group for the consumer. The family members can
strongly influence buyer behavior. It can be distinguished between two families
in the buyer’s life. One is the buyer’s parents who make up the family of
orientation. From parents a person acquires an orientation toward religion,
politics, and economics and a sense of personal ambition, self-worth, and love.
The other is the family of procreation-the buyer’s spouse and children-exert a
more direct influence on everyday buying behavior.
INTRODUCTION :
A family is a group of two or more people who live together and are connected
by blood, marriage, or adoption. Marketers are fascinated by the roles and
relative influence of husbands, wives, and children in the purchase of a wide
range of goods and services. Three primary factors have a direct impact on
family consumption. They are the family life cycle, the family structure, and the
family decision-making process. Buying habits are seldom straightforward. It is
influenced by a variety of things. Understanding it, on the other hand, is a crucial
part of marketing management. People with similar subcultures, socioeconomic
classes, and occupations may have very diverse lives. A person's family has a
vital role in influencing his or her purchasing decision.
LITERATURE REVIEW :
Individual family members frequently play various roles in decisions that rely on
common family resources. Some people are information gatherers/holders,
looking for information about relevant products. These people often wield a lot
of power because they can selectively pass on information that supports their
preferred options. It's worth noting that family decisions are frequently fraught
with strife. Few families are wealthy enough to avoid a significant conflict
between competing demands on the family's resources. Families with children
and/or when just one partner works outside the home are more likely to
experience conflicting pressures. It's worth noting that many decisions are
intrinsically value-driven, and that there's often no "objective" approach to settle
disagreements.
Salespeople must grasp how couples work in concert to settle dispute across big
decisions in order to promote important products to families successfully. The
authors create a spousal fairness model and put it to the test in a multi-period
family purchase decision-making study. The findings suggest that a spousal
sense of fairness is a tool for modern couples to resolve dispute in family
decisions over time. Family decision-making must be recognised and
investigated by marketing researchers. Due to shifting home roles, husband-wife
decision-making has shifted in recent years. A study of husband-wife decision-
making is carried out. When it comes to family consumption decisions,
marketers are interested in the relative amount of power that a husband and
wife have.
The family life cycle refers to the emotional and intellectual stages you go
through as a family member from childhood to retirement. You have problems
in your family life at each level, which force you to develop or learn new talents.
Developing these abilities can assist you in navigating the transitions that
practically every family experiences. Not everyone gets through these periods
without a hitch. Severe illness, financial difficulties, or the death of a loved one
can all affect how smoothly you go through the stages. The conventional family
cycle is a series of stages that many families go through, beginning with
bachelorhood, progressing to marriage, family growth, family contraction, and
finally, death and ending with the dissolution of the basic unit.
KEY FINDINGS :
INTRODUCTION :
The buying process entails a mix of mental and physical activity that almost
always results in a physical purchase (Sheth & Mittal 2004). As a result, studying
the relationship between "what we buy" and "why we buy it" is fascinating. In
this context, brands have a tremendous impact on customer decision-making. A
multitude of variables or traits impact consumers' opinions and decisions.
Consumers have varying perceptions of brands in today's increasingly
competitive marketplace; they will undoubtedly have different images of any
given brand and will frequently be forced to choose between a variety of
products or brands on the market that differ very little in price or functionality.
In such cases, the image they associate with diverse people influences their final
decision.
LITERATURE REVIEW :
BRAND EQUITY :
BRAND IMAGE :
The authors also claim that the brand image has developed in repute as a result
of the emotions and images associated with the brand, and that a well-known
and recognised brand image is one of the most valuable assets a corporation
can have (Kahle and Kim, 2006). In today's highly competitive market, buyers
must choose from a variety of items or brands that differ just marginally in price
or function, according to Kahle and Kim. The perception of reality is more
important than the actual reality when it comes to branding (Dobni and Zinkhan,
1990). According to Dobni and Zinkhan (1990), brand image is primarily a
subjective and perceptual phenomenon resulting from client interpretation,
whether rational or not.
BRAND ASSOCIATIONS :
Following Keller's lead, Pitta and Katsanis (1995) argued that a distinct,
favourable, and strong brand image allows the brand to be clearly differentiated
and positioned in the minds of consumers, increasing the likelihood of improved
brand equity. Product qualities, intangibles, costumer advantages, relative
pricing, use-application, user-customer, celebrity-person, lifestyle-personality,
product class, competitors, and country-geographic area are all examples of
brand connections, according to Aaker (1991). He thinks that creating a brand
association is crucial to developing a company's image, and that different
businesses have different connections with their potential customers. In his
paper, Aaker explores brand image and claims that associations are the most
important factor to consider while studying brand image literature.
KEY FINDINGS :
CASE STUDY – 5 :
TOPIC : AN ANALYSIS OF IN STORE ENVIRONMENT AMBIENCE FACTOR
INFLUENCE ON CONSUMER BEHAVIOUR
INTRODUCTION :
LITERATURE REVIEW :
The data was collected via a questionnaire, and the data was analysed using the
maximum likelihood estimation technique. The findings revealed that when
customers thought the background music was appropriate, they had pleasant
experiences that encouraged them to favourably browse store merchandise and
spend more money and time there. Customers gave higher music-fit scores to
establishments with planned background music than to retailers with unplanned
music, according to the study. Based on the study's restricted breadth of
background music and speciality retail stores/hypermarkets, it was suggested
that more research be done on foreground music and a wider range of retail
stores be used.
Modern merchants have also realised the value of employing music to set their
stores apart from their competitors and to project a certain image. Music can
also affect the pace at which customers travel through a store, create a store's
image, and attract or direct shoppers' attention, According to Olahut et al ,
Managers should not, however, overdo their music if they want to achieve these
goals. For example, while quicker music can help shoppers move across a
business, it's not a good idea to play music with an excessively fast pace because
it could affect unintended behaviour. The music should be calm, soothing, or
classical in general. This type of music encourages customers to take their time
in the store, relax, and enjoy themselves and hence take a good survey of the
goods on sale.
The researchers also discovered that scented products are valued higher than
non-scented things, with congruent fragrances attracting higher valuations than
incongruent odours. As a result, smell in the retail environment has an impact
on customers' perceptions of the merchandise for sale as well as the store itself.
Ambient fragrance only had a favourable link with shoppers' perceptions of the
retail environment in average retail densities, according to the findings. Scent
had a detrimental impact on shoppers' perceptions of the store environment in
both low and high densities. Furthermore, when the density was medium,
ambient smell had a minor favourable effect on customers' moods. Michon et al.
(2005) recognise that their findings are limited in terms of generalizability
because they only looked at community malls, which may not be representative
of all malls.
IN-STORE LIGHTING :
Another study conducted in a major US metropolis looked into the impact of in-
store lighting on many areas of consumer behaviour. The researchers
performed a two-month experiment to see how bright and soft/less bright light
affected shoppers' behaviour. However, the higher effects of lighting on
merchandise browsing did not translate into increased sales. Managers should
change their in-store lighting to improve a functioning environment and thereby
add to their brand perception, according to the study. The report encouraged
studies on other merchandize retail businesses because it concentrated on wine
retailers.
CUSTOMER VALUE :
KEY FINDINGS :
RESEARCH GAPS :
From the above 5 Case Studies , the factors such as INCOME , SOCIAL CLASS ,
EMOTIONS , FAMILY , BRAND AND IN-STORE FACILITIES (AMBIENCE) are the
factors which fall under the category of both consumer influences and
Organizational influences that influences consumer behviour and consumer
buying decision process . But , what they missed is that , upto what extent these
factors have an impact on Consumer’s buying decision process .
Also , it is obvious that the same practice of strategy cant be applied to all over
the world . Because people from different places have different buying
behaviour . They didn’t predict the universal marketing strategy which is
applicable all over the world and in any place of the country.