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    CONSUMER BUYING BEHAVIOR

    Introduction:

    The most important thing is to forecast where customers are moving, and to in befront 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 experiencesto 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.

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    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 profit-

    oriented. 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 tostudy 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.

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    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 betweendifferent 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).

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    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.

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    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, anumber 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

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    Social marketing involves getting ideas across to consumers rather than selling

    something. Marty Fishbein, Marketing professor, went on sabbatical to work for Centers forDisease 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 CONSUMERS-

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    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

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    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, yourown 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

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    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.

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    Influence of Psychology

    The next major influence on buyer behavior came from psychology. According to

    psychologists, any human activity is directed toward meeting certain needs. Different

    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 self-

    development 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

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    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 Factors-

    An 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

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    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

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    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 certainpersonality 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-culture-

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    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,

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    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,

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    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

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    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-to-

    day 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

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    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 shoppingarea 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

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    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:

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

    y Buyers level of involvement determines why he/she is motivated to seek information about acertain 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 Personal risky Social risky

    Economic risk

    THE FOUR TYPE OF CONSUMER BUYING BEHAVIOR ARE:

    y Routine Response/Programmed Behavior--buying low involvement frequently purchased lowcost items; need very little search and decision effort; purchased almost automatically.

    Examples include soft drinks, snack foods, milk etc.

    y Limited Decision Making--buying product occasionally. When you need to obtaininformation about unfamiliar brand in a familiar product category, perhaps. Requires amoderate amount of time for information gathering. Examples include Clothes--know

    product class but not the brand.

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

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    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:

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    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 informationfor solving his problem.

    2. AwarenessThe 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. AttitudeIt 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 unfavorable-

    towards the product. The purchase process will continue only if he develops a favorable

    attitude or a liking for the product.

    5. Legitimization

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    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. TrailConviction 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. AdoptionA successful trail leads buyer to buy/adopt the product. Trail and adoption constitute the

    behavioral field in the buying process.

    8. Post-Purchase BehaviorThe 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.

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    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 ordersand 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. As children grow, they develop the

    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.

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    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 theperson 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 self-

    appraisal is the first step to adjustment. Adjustment leads to happiness, confidence, and purpose

    in life.

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    THE TEENAGERS CHARACTERISTIC:

    1. Material gains are highly aspired to, creating their own pressures both on teenager as well astheir 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 isMother.

    4. Teenagers are one who empathizes with his parents. This is why the cabinet for decision-making in the urban family is real coalition, with the children having a major say in purchase

    decisions concerning consumer durables.

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    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

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    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 distinguishingcharacteristics. 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.

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    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.

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    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 Opportunities-Teens 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 Challenges-Teens 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.

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    TEENAGERS AWARENESS AS BUYER:

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

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

    Teens aged 13 or 14 want to fit in. They buy and wear what others do. At 18 or 19, theyreunderstanding 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 asresponsible 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 negativeopinions about products, brands, and companies.

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

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    They entire lives have been spent in a world where everythings immediate: instantdownloads, 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

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    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 parentsperceives as educational or worthwhile.

    Many teenager visits internet website which provides help them to find out thestores 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?

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    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. After

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

    teenagers who prefer internet shopping to buy their favorite products.

    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

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    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)

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    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.

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    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 socializationDefinition:

    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 FactorsThese include the environmental factors such as social and economic status, social class, age,

    sex and religious affiliation of the consumer.

    2. The Socializing AgentsThese 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

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    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. Consumer

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

    which family influence can be transmitted to the individual within the family:

    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

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    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.

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    1. The Investigator (Initiator): This is the person who first suggests the ideas of a product orservices 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 tobuy, 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 forit, 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

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    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 Number of teenagers 160 million.y 22 million of the teenage populations belong to the urban middle class.y Indias young consumers annual spending power is an estimated US$6.5 billion.y 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.

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    HOW INDIAS NEW GENERATION IS DIFFERENT THAN OLDER

    GENERATION

    OLDER GENERATION NEW GENERATION

    Idealizes Gandhi-style poverty,

    socialist theory.

    Wants to get rich, admires

    Capitalism

    Grew up amidst famines. Grew up amidst food surpluses

    Had only one state-run TV channel. Can watch 50 TV channels via

    cable and satellite TV

    Mostly techno phobic. Mostly techno savvy.

    Tended to be avid saver Tend to be guiltless consumers.

    Grew up with stable government let

    by one party; upper caste lower

    domination.

    Grew up with constantly coalition;

    more voice for caste.

    Favored medicine, engineering,

    other or civil services as career.

    Favor computer-driven and high

    paying career choices.

    Average literacy level of30

    % Average literacy level of52

    %.

    Tastes tended toward tradition:

    dinking tea, eating at home.

    Taste tend towards modern: food

    and sodas, eating outside.

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    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.

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    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.

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    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, andsporting goods.

    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.

    Top 10 Advertising categories for teen title

    Cosmetics/Beauty Aids

    Ready-to-wear

    Footwear

    Media/Advertising

    Hair product-

    Personal Hygiene/Health

    Sporting Goods

    Audio/Video Equipment/Supplies

    Government/Organizations

    Medicines/ Proprietary Remedies

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    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 technologicallyadvanced 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.

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    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.

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    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 multi-

    mode, 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.

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    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 gettheir 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 theirchilds 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.

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    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:

    Letteenager know he/she can callortext youatany timeifhe/sheneeds your help.

    Familiarize teenagerwith the speed dial function on the phone. Store the numbers

    she/he can callin caseofanemergency.

    Programtheirownnumber intothephoneandsave itunderthename ICE (in caseof

    emergency). If teenagers involved in an accident when their parents are not with

    him/her,emergency servicesorothers can callthe ICE numbertoalertthem. Notethat

    thiswillbe helpfulonly ifthemobilephoneisntprotectedby apinorpassword.

    Skill development

    A mobile phone will give your child the opportunity to develop mobile communication etiquette,

    and media and communication skills.

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    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:

    whenits OK totake callsorreply totexts

    whenthephoneshouldbeonsilentorswitchedoff

    whether teenagersareallowedto havethephonein her/hisroomatnight.

    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:

    Discussingthe costofmobilephoneuseandagreeingonamonthly budget.

    Startingwith aprepaidplan. The callandtextratesaregenerally moreexpensivethan

    post-paidplans,but theirparents can setamonthly limit. Once the creditsusedup,

    teenager canstillreceive callsandtexts,play gamesorlistentomusic,but he/she cant

    make callsorsendtextmessagesuntil his/her creditistoppedup.

    Beingawarethatit canbeeasy torunupalargebillonapost-paidplan. Thisisbecause

    teenagers can continue tomake callsandsend texts (atamoreexpensive rate) after

    he/shesgoneoverthevoice/textmonthly allowance.

    Parentsdiscussingwith their childwhat the consequenceswillbe ifshe/hegoesover

    theplan costwhenusingapost-paidplan.

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    Disabling MMS messages (photosandvideo) MMS messages canbeexpensive,and

    mostservicesgiveparentstheoptionofdisablingthem.

    Parentsalertingtheir childto hidden costs forexample,textingtoamobilenumberto

    receivearingtone (thesearegenerally subscriptionsthatincurongoing costs) orvoting

    onareality TV showvia SMS (thesetexts canbe chargedata higherratethannormal

    textmessages).Discusstheseissueswith their child,andsetgroundrules these could

    include not texting advertised numbers, and not purchasing or downloading content

    withoutparentspermission.

    If their child uses his/her phone responsibly, parentsmight like to reward him/herwith an

    upgraded handsetorplanafter6or 12months.

    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 datalimit.

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    Mobile phones: facts and stats

    y Mobilephonesarevery popularwith teenagers 76%ofkidsaged 12-14 yearsand90%ofkidsaged 15-17 years havemobiles.

    y Girlstendtousetheirmobilesmorethanboys. They spendanaverageof14minutestextingand7minutestalkingaday. Boysspend9minutestextingand4minutestalking.

    y Themajority of sexting is carriedoutby youngmen circulating imagesandvideosofyoungwomen. But youngwomenalsosendimagesofyoungmen.

    y Among kidsaged 12-14 years,20%ownphoneswith advancedfeatures. Thepercentagegoesupwith age 34%ofthoseaged 15-17 years haveadvancedphones.

    y Onaverage,boysaged 11-18 years spend 1 hourand 14minutes consumingmobilemedia. Theaverageforgirlsofthesameageis 1 hourand58minutes.

    y Among kids aged 8-17 years, 22% use theirmobile phones to take photos, 16% usemobiles forplayinggames, 10%usemobiles to listen to the radio,7%usemobiles to

    recordvideofootage,and3%usemobilesto TV showsor clips.

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    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, Z-

    test 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.

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    RESULT

    Currently you own a --

    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.

    Nokia40%

    Sony Ericsson15%

    Samsung20%

    Other25%

    Mobile Name

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    The service provider with connection to their mobile handset-

    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.

    Airtel5%

    Loop17%

    Vodafone19%

    Other59%

    Service Provider

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    Who bought the mobile for you?

    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.

    Father28%

    ElderBrother/sister

    5%

    Self5%

    Other62%

    Who Bought

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    You took a mobile because-

    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.

    Everybody had20%

    You wanted10%

    Somebodyasked10%

    Other reason60%

    Why you took mobile

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    What is the most important reason for purchasing the mobile?

    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

    Gives youconvenience

    30%

    Communicatewith friends

    9%No landline5%

    Other reason56%

    Important reason for having

    mobile

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    What accessories have you bought with your mobile?

    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.

    Only A PlasticCover10%

    Only A

    Chord/String20%

    None So Far70%

    Accessories you bought with it

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    Do you have a hands free kit?

    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

    Yes75%

    No25%

    Do You Have A Handsfree Kit?

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    Is your mobile phone always ON?

    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.

    Yes90%

    No10%

    Is Your Mobile Always 'ON'?

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    Generally, you use your mobile phone for

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

    of the house.

    Calling YourFriends

    50%

    Calling home50%

    Generally you use your mobile for?

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    The most common place where you use your mobile are-

    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.

    At home35%

    In PublicTransport

    5%

    Other Place

    60%

    Where Mostly You Use Your Mobile

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    Can you do without a mobile for a day?

    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.

    Yes70%

    No30%

    Can You Do Without Your

    Mobile For A Day?

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    While talking over the phone do you-

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

    while talking over the phone.

    Stand at oneplace

    40%

    Roam around

    60%

    While Talking Over the Phone

    Do You

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    How private do you consider the information stored in your mobilephone?

    As per the survey done, 20% of the respondent think that the information stored in their mobilephone 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.

    VeryPrivate20%

    SomewhatPrivate70%

    Not Private10%

    The Information Stored In Your

    Mobile Are?

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

    According to the survey done, 40% of the respondent told that they never keep theirmobile 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.

    Never40%

    Rarely

    60%

    How often you keep your phone on

    silent/vibrate?

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    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