group 10 updated

8/8/2019 Group 10 Updated

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Presented By: Group 10

Rajan Mishra-10020541118

Aditya Dubey-10020541119

Ishita Giri-10020541120

Ravinder Singh-10020541121

Yugank Arora-10020541122Vivek Gujar-10020541123


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Agenda1. Understanding consumer behavior

2. Key Psychological Processes

3. The Buying Process: The Five stage model4. Other theories of Consumer Decision Making

5. Examples on Consumer Market

6. Understanding Industrial Market

7. Differences between Consumer and Industrial Market8. Summary


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Understanding Consumer Behaviory Cultural Factors

y Social Factors

y Personal Factors


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Cultural Factorsy Culture is the fundamental determinant of a persons

wants and behaviors acquired through socializationprocesses with family and other key institutions.


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Subculturesy Nationalities

y Religions

yRacial groups

y Geographic regions


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Classesy Upper uppers

y Lower uppers

yUpper middles

y Middle

y Working

y Upper lowers

y Lower lowers


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Characteristics ofSocial Classesy Within a class, people tend to behave alike

y Social class conveys perceptions of inferior or superior

positiony Class may be indicated by a cluster of variables

(occupation, income, wealth)

y Class designation is mobile over time


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Social Factorsy Reference groups

y Family

ySocial roles

y Status


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Reference groupsy Membership groups

y Primary groups

ySecondary groups

y Aspirational groups

y Dissociative groups


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Family Distinctions

Affecting Buying Decisionsy Family of Orientation

y Family of Procreation


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Personal FactorsyAge

y Stage of life cycle

y Occupation

yWealth

y Personality

yValuesy Lifestyle

y Self-concept


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Brand Personalityy Sincerity

y Excitement

y Competence

y Sophistication

y Ruggedness


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Lifestyle influencesy Multi-tasking

y Time-starved

y Money-constrained


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Key Psychological Processesy Motivation

y Perception

y Learning

y Memory


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Motivation

Freuds

Theory

Behavioris guided by

subconsciousmotivations

MaslowsHierarchy

of Needs

Behavioris driven by

lowest,unmet need

HerzbergsTwo-Factor

Theory

Behavior isguided by

motivatingand hygiene

factors


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Learningy Key terms involved-

1. Drive

2. Cues3. Discrimination

4. Hedonic Bias


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Memoryy Key terms involved-

1. Associative network memory model

2. Memory Processes3. Memory Retrieval


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Maslows Hierarchy of Needsy Physiological needs

y Safety needs

y Social needsy Esteem needs

y Self-actualization needs


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Perceptiony Selective attention

y Selective retention

y Selective distortiony Subliminal perception


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The buying decision modelProblem

recognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Post purchasebehavior


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Sources of Informationy Personal

y Commercial

y Publicy Experiential


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Other theories of consumer decisionmaking

y Level of Consumer Involvement

y

Decision Heuristics and biasesy Mental Accounting

y Profiling the Customer Buying-Decision Process


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Cultural and Personal Factorsy As of now, VAS contributes 9 to 11% of operator revenues.

y Out of which Music/ringback tones contribute 40% to theoperator's total revenue.

y The revenue from this growth potential is expected toreach above ` 250 billion by end of year 2010 and more than30% of the revenue of the telecom access service providersin the next 5-7 years.

www.trai.gov.in,

http://www.yourstory.in/resources/1035-experttalk/4456-harish-gandhi-demystifies-vas-in-india,

http://www.slideshare.net/paritoshsharma/telecom-industry-consultants-at-the-mobile-vas-summit-2009-by-virtue-insight


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Cultural and Personal Factorsy Cultural Factors

Religion

Keeping pace with the market trends, Airtel introducedvarious interesting plans and value added services like 'LiveAarti

y Personal Factors

LifestyleThe new service 'Airtel Talkies' would offer a pre-editedfifteen minute capsule of a film to the listeners.


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Cultural FactorsGeographic factors

y Telecom Industry has been contributing quite

phenomenally towards various social responsibilityinitiatives.

y Aircel has added one more campaign towards a socialcause. Save Tiger is the latest campaign from Aircel.

y Mahendra Singh Dhoni, footballer Baichung Bhutia andactor Surya are part of this campaign


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Personal Factorsy As in July 2010, India already has 149 million mobile data

users, approximately 60 million 3G handsets and abroadband penetration of only one percent. According toInformate Mobile Intelligence, three out of four currentGPRS users in the country would like to use 3G services inthe future and close to 63 percent of mobile users in the 25-30 age group are very likely to use it in near future.

y Airtel has 3G licenses in 5 countries in Africa.

http://voicendata.ciol.com/content/ContributoryArticles/110072603.asp,

http://convergence.in/blog/2010/08/11/airtel-pan-india-3g-services-by-end-of-2010-no-problem-in-sourcing-telecom-gear/


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Personal Factorsy Personal Factors

Lifestyle

y

Worlds first commercial 3G smartphone based onQualcomms Brew Mobile Platform (Brew MP) launchedby Airtel.


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Personal Factors


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Personal Factors

Lifestyle Factors Time Starved


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Personal Factorsy Brand Personality


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Social factorsy The WiMax Forum and industry body, Assocham, are

optimistic and expect the Indian market to support about19 mn WiMax connections by 2012, representing about 20%

of the global WiMax user base in 2.5/2.3 GHz bands

y Reference groups

Aspirational Group

Operators like Bharti Airtel has already started to offer

their WiMax services on 3.3 GHz.

y http://voicendata.ciol.com/content/NetworkingPlus/109080302.asp,

y http://voicendata.ciol.com/content/NetworkingPlus/109080302.asp


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Social factorsy India's mobile penetration is huge with about 127 mn users

who carry Internet-ready devices. However, only about 12mn users have used Internet on their mobile phones atleast once in the last one year and about 2 mn users areaccessing the Internet through their mobile phones on anactive basis

y Currently, data services constitute 7% of Aircel's revenueand the company is targeting to take that to 11% by 2012.

y http://voicendata.ciol.com/content/enterprise_zone/110040208.aspy http://voicendata.ciol.com/content/vnd100_2010vol-II/110070533.asp


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Social factorsStatus

y Aircel launched unlimited Internet plans

y

Aircel IN

Q Mini 3G-has features such as Facebook, Twitter,Skype and Windows Live Widgets and easy Internet access-was one of the operator's moves to strengthen its dataservices

y The operator pulled the youth's attention with its

unlimited Internet data plans, something that a new userwould prefer


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Industrial Markety The industrial market consists of all the organisations that

acquire goods and services used in production of otherproducts and services that are sold , rented or supplied to

others .

y Major industries making up the business markets areagriculture , forestry, mining , manufacturing ,

communication , banking , finance and service industries.


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Industrial market customersy Commercial enterprises - profit making organisations that

produce and/or resell goods and services for a profit. Canbe subdivided into users, original equipment

manufacturers (OEMs), resellers.

y Government bodies.

y Institutions - largely non-profit making organisations, e.g.universities, churches, etc.


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Characteristics of industrial markety Nature of demand - derived, joint, inelastic.

y Structure of demand - industrial and geographicconcentration.

y Buying process complexity.

y Buyer-seller relationships


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Buying Situationsy Straight Re-buy

y Modified Re-buy

y New Task

y Systems Buying and Selling


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The Buying Centrey Initiators

y Users

y

Influencersy Deciders

y Approvers

y Buyers

yGatekeepers


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Buying processProblem Recognition

Need Description

Product Specification

Supplier search

Proposal Solicitation

Supplier selection

Order routine specification

Performance review


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InstitutionalMarket

y Consists of schools, college and university hostels, hospital

and nursing homes, etc.y Provide goods and services to people in their care.

y Characterized by low budget and captive clienteles.

y Not for profit, cost minimization not the sole objective.


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How is Industrial Market different from

Consumer Market?y Fewer, larger buyers

y Close supplier-customer relationship

y Professional purchasing

y Multiple buying influences

y Multiple sales calls

y Derived demand

y Inelastic demand

y Fluctuating demandy Geographically concentrated buyers

y Direct purchasing


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Thank you

group 10 updated

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