Consumer Behavior Assignment

Consumer Behavior Assignment

Demographic and Purchase Details in above 5000 and under 250 category

Demographics Details of the Respondents

Respondent 1 Respondent 2

Name Omkar Chaudhary Harshit AroraAge 42 26Gender Male MaleReligion Hindu HinduAddress Allahabad New DelhiProfession Business Private Service

Purchase Details of the Respondents

Purchase Above Rs.5000Product HP 14” Laptop Core i3 4th

Gen, 1TB HDD, 4GB RAMApple iPhone 4S 8GB

Mode of Purchase Offline (HP Showroom) Online (Flipkart)

Purchase under Rs. 250Product Coffee Mug Fogg DeoMode of Purchase Offline (Local Market) Offline (Sector 12 Dwarka

Market)

1 | P a g eAvinash Agrawal_59/2013


Case 1. Analysis of CDP of Respondent 1(Mr Omkar Chaudhary) for Laptop Purchase (>5000)

Mr Omkar Chaudhary is a renowned businessman in Allahabad. He owns trading business of pharmaceuticals.

Mr Chaudhary Buying Decision Process:-

Need Recognition: - He had desktop computers in his office which were used for billing purpose. He didn’t have any system on his table. So for any work he had to move from his table to the system. There he realized that he should have a system on his table. He realized that laptop is better as he can carry it to different location which is convenient than desktop.He recognized an unfulfilled need which arises because of internal stimuli. He himself realized that he should have a laptop on his table for conveniance.

In present scenario, keeping a laptop on the working table is a usual practice. Socially it creates impact. He purchased laptop also to look good and socially integrated. So this purchase is also a result of social need.

Information Search: - He looked both internally and externally for information search. He was using HP Desktop computers.

Internal Search: - His past experience with HP was very good. He was satisfied with its performance. So buying a laptop of HP was always there in his mind. Though he also recognized Dell and Lenovo laptopsExternal Search: - For this he consulted his colleagues and his son in search of alternatives. He searched for laptops on e-commerce websites like Flipkart and Snapdeal. He also visited Dell, Lenovo and HP Exclusive showrooms in search of alternatives. In this search one more alternative in the form of ASUS appeared on his list.

Evaluation of Alternatives: - To evaluate alternatives the first thing was to finalize the configuration required. He was sure that he didn’t required laptop of very high configuration. He was interested in Core i3 or Core i5. Dual Core was quite outdated so not interested in it. His budget was within Rs.35000.He didn’t have much requirement for HDD space so 500 GB was Ok for him.

On asking him which attribute is most important, respondent replied that for him size and sound were most important. The respondent was very much concern about the portability and handling conveniance. He wanted light weight laptop as he had to carry it daily from home to office. Laptop like 14” screen on the table will not consume much space and will look good. He also tried 11”inch laptop but was uncomfortable on working on it.



Sound because he loved watching movies. He was fed up with the advertisement which came between movies broadcasted on TV channels. So he was very excited to watch movies on laptop. Headphones are something with which he was very uncomfortable, so laptop with good sound was very important attribute.

From above discussion one can say that this purchase is in High Involvement Category.

Purchase Decision:- After evaluating all the alternatives Mr Chaudhary decided to purchase HP Pavillion (Beats Audio Series) 14”inch, 1TB HDD, 4GB DDR3 RAM.He chose HP because of its healthy past experience and best configuration offered according to his needs was from HP. He compared prices on e-commerce website with that of showroom price. Though price offered on e-commerce portals like flipkart and snapdeal was less as compared to showroom price, still he decided to purchase it from showroom. This shows his skeptical nature as he didn’t have faith on e-commerce portals. He was ready to purchase from showroom on higher price. This shows his traditional nature of buying a product from a place physically present in front of you. He was also very happy with the executives who demonstrated the product and helped in buying that product. This highlighted the very important aspect of customer service in marketing and selling function.

Post Purchase Behavior: - After experiencing the product he was satisfied with the performance of the product. Though he felt that sound could have been little louder. This satisfaction will minimize stages of information search and alternative evaluation for his next purchases in order to buy the same brand which will produce customer loyalty. As in this case, with good past experience with desktop and present experience with laptop Mr. Chaudhary is likely to become loyal customer of HP.But after purchase he suffered from Cognitive Dissonance that whether he made a right choice. So many alternatives with slightly different benefits.

The post-purchase evaluation may have important consequences for a brand. A satisfied customer is very likely to become a loyal and regular customer. Positive or negative, consumers will also be able to share their opinion on the brand whether in their family or by word-of-mouth or on a much broader scale with social networks or on consumer product review websites. The tendency not to be overlooked because with the Internet, an unhappy customer can have a strong power to harm for a brand.

Overall it was an Extensive Decision Making Process.



External and Internal Factors which affect purchase decision are:-

Snapshot of all the factors

Internal Factors: Motives: - If we track him on Maslow’s Motive Hierarchy then his need is at the

level of belongingness for entertainment and self-esteem.

Perception: - It is defined as the process by which an individual selects, organize and interprets stimuli into a meaningful and coherent picture of the world. It can be described as “how we see the world around us”. In general, perception is gathering information through our senses, which are seeing, hearing, touching, tasting, smelling and sensing.Here in this case senses like seeing, touching and hearing have played a key role in forming a perception about the HP products. By his past experience, perception is created in his mind that HP products are good.

Also he has a perception in his mind that buying electronic product from E-commerce portal have some risk.

The situation here can be of Selective Distortion where he tends to perceive information in a way which would be in line to his existing thoughts and beliefs.

Attitude: - Consumer attitudes are a composite of a consumer’s (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some “object”—within the context of marketing, usually a brand, product category, or retail store.

Belief: - Mr Chaudhary hold positive belief towards HP and its products. Also he holds negative belief about e-commerce portals for electronic goods.



Learning: - learning comes only through experience. Here because of his past experience with HP desktop, has a strong inclination towards buying the same product.

Personality: - Quite mature and rational personality. Skeptical in nature who didn’t have faith in E-commerce portals. A rational decision maker, being HP loyal he still considered other brands to review alternatives.

External Factors:-

Cultural: - Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. He still have that traditional consumer inside who beliefs in what is present in-front of him.

Social: - Belonging to upper middle class, he is willing to spend on luxurious items.

Family:- In deciding alternatives and evaluating it, his son played a crucial role. Was very much influenced by his son in deciding the configuration required. His son was more knowledgeable in this field, so he relied on him in deciding the configuration. Here his son acts as an Influencer.

Other factors used by Mr. Choudhary to buy this product:-

Technical: - Reliability, Performance and Convenience. Economic: - Value for money Social: - Status and social belonging

Case 2. Analysis of CDP of Respondent 1(Mr. Omkar Chaudhary) for Coffee Mug



Purchase (<250)

Need Recognition: - He is a regular drinker of tea and coffee. Likes to drink in mugs. He is a kind of person who likes to drink tea in large mugs. While in market he just saw some mugs in a shop. He liked it and went on to purchase. Here is a need which is generated because of external stimuli. He saw some mugs in a shop and went onto buy it.This need can be classified as Need for Change because it is generated just to have a new one for a change.

Information Search: - He looked internally. He is regular user of bone-china

crockery. For this product he didn’t look for any other alternative.Internal Search: - His family uses products of bone-china mostly and he didn’t search for any other alternative. He went for bone-china mug only.

Evaluation of Alternatives: - Among the brands no evaluation was done. Though he had a look on local products but finally he went for bone-china only.

On asking him which attribute is most important, respondent replied that for him size and finish of the product. The respondent was very much concern about finish of the product. The product should look sober. Overall the product should look good. From above discussion one can say that this purchase is in Routinised Response Behavior as not much of alternative and options are evaluated.

Purchase Decision: - After evaluating all the alternatives Mr Chaudhary decided to purchase a bone china mug of white color with a quote on life written on it. He purchased it from the shop in cash.

Post Purchase Behavior: - He was satisfied with the product as he is already a user of bone-china products. No issue of cognitive dissonance occurred in this case.

Overall it was a Limited Decision Making Process.





level of belongingness

Perception: Here in this case senses like seeing and touching and hearing have played a key role in forming a perception about the bone-china products. He is a regular user of bone-china products.The situation here can be of Selective Distortion where he tends to perceive information in a way which would be in line to his existing thoughts and beliefs.

Learning: - learning comes only through experience. Here because of his past experience with bone-china products, has a strong inclination towards buying the same product.

External Factors:-

Cultural: - Traditional culture is imbibed in him. Bone-china products are one which is used by people over the years. He is still very much loyal towards it as he didn’t even want to try some other brands.

Social: - Belonging to upper middle class, he is willing to spend on items just for self-esteem. He focused on finishing of the product which shows that he want to maintain his status in the society.

Family:- His family is very much inclined towards bone –china products. They are regular user of this brand.

Other factors used by Mr. Choudhary to buy this product:-

Technical: - Durability Economic: - Value for money Social: - Status and social belonging Personal: - Emotions

Case 3. Analysis of CDP of Respondent 2(Mr Nitin Tripathi) for Apple iPhone 4S Purchase (>5000)



Mr Harshit Arora is B.Tech and MBA in qualification and work in Deloitte as Business Analyst.

Mr Arora Buying Decision Process:-

Need Recognition: - He previously used Samsung S duos phone. With lots of functioning problem he decided to buy a new phone. He decided to buy a phone from the premium category.Here in this case need recognition can be classified as functional need and social need. Functional need because his previous phone was not working well. Social need because buying a phone in premium category enhances social recognition.

Information Search: - He looked both internally and externally for information search.

Internal Search: - His past experience with Samsung was not good. So he was not considering Samsung among the alternatives.He recognized brands like Apple, HTC and Nokia.

External Search: - For this he consulted his colleagues, friends and some TV shows like Cell Guru in search of alternatives. His budget was around Rs. 25000. He shortlisted Apple iPhone 4S (8GB), HTC Desire 816, Nokia Lumia 925/820.

Evaluation of Alternatives: - To evaluate alternatives the first thing was to finalize the configuration required. He required a good quality camera with good touch screen on functional attribute.On asking him which attribute is most important, respondent replied that for him camera quality is most important. He is fond of clicking pics and need a good quality camera in his phone. Social recognition was always there in his mind while evaluating alternatives. No doubt Apple brings the highest brand value with it, he was inclined to buy iPhone because of the social recognition.

From above discussion one can say that this purchase is in High Involvement Category.

Purchase Decision: - After evaluating all the alternatives Mr Arora decided to purchase Apple iPhone 4S (8GB).He compared prices on e-commerce website with that of market price. He found price offered by E-commerce portals are less as compared to price offered in the market. So he decided to buy it from Flipkart which shows he is an opportunistic.

Post Purchase Behavior: - After experiencing the product he was satisfied with the performance of the product. He was very satisfied with the camera and touch



quality of the phone.

But after purchase he suffered from Cognitive Dissonance that whether he spend too much. He felt that why he spend so much on a phone.

Overall it was an Extensive Decision Making Process.



level of self-esteem. He was quite concern of social recognition as nowadays mobile phones have become a status symbol.

Perception: - Here the perception is created in his mind that mobile represent social status in the society and Apple brings highest brand value with it.

Attitude: - Belief: - Mr Arora hold positive belief towards Apple brand value. He believed owning

an iPhone bring social recognition in the society. People start noticing you.

Personality: - Quite stylish personality. Wanted to get noticed in the society.

External Factors:-

Cultural: - Cultural transformation can be seen here. More focused on extrinsic value of the product. Highly focused on social recognition and presence.

Social: - Belonging to upper middle class, he is willing to spend on luxurious items.

Other factors used by Mr. Arora to buy this product:-

Technical: - Performance Economic: - Value for money Social: - Status and social belonging


Consumer Behavior Assignment

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