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Consumer Behavior

With reference to a brand how consumer decision process is

influenced by many factors

Customer Inserts His/Her Name

Customer Inserts Grade Course

Customer Inserts Tutor’s Name

30-November-2010
Consumer Behavior

Consumer is the person who buys a product for its own use. If a person purchases a good or
service and it is consumed by either that person or his family such an individual is called a
consumer in its entirety. Similarly, consumer behavior is the action taken by purchasing and
consuming the product.

CONSUMER BEHAVIOR

Consumer behavior is an enigma for marketers all over the world. Countless number of
strategies and approaches has been designed by marketers to understand the reasons behind
why buyers choose a certain product over another similar product. However, a concrete model
or method describing consumer behavior which guarantees a positive response from the buyer
in the form of purchases or repeated purchases is yet to be formed.

Even consumers themselves do not know what factors influence them towards making a certain
buying decision. Broadly it can be said that consumer purchases are influenced strongly by
cultural, social, personal and psychological characteristics.

Let’s illustrate the workings behind consumer behavior with the help of a consumer brand,
namely Sunsilk. Sunsilk is a hair care brand with its main focus on catering to women
consumers. It ranks as one of the leading hair care brands selling its shampoos, conditioners
and other hair care products in more than 60 countries worldwide.

BUYER DECISION PROCESS

Making an actual purchase is a small part of the whole buyer decision process which is divided
into five stages:

Need recognition

This is the first stage of the buyer decision process in which the consumer recognizes a problem
or need. The need for something is triggered by either internal stimuli such as the feelings of
hunger, thirst or warmth, while external stimuli may set off a need through an advertisement or
discussion.

A marketer looking to promote Sunsilk should find out what consumers’ need is regarding hair
care and how it can be taken care of. By conducting a research the marketer discovers that
there is a potential number of women who want a shampoo which would be effective against
Consumer Behavior

dandruff. Hence, a need has been noted and now the marketer has to devise a method to lead
the consumer to this particular product.

Information search

At this stage the consumer becomes conscious of its need and searches for information
regarding a product that would satisfy the need or problem. This information can be obtained
from personal, commercial or public sources. At this level, the person starts paying more
attention to its surrounding depending on the urgency of the problem.

With more information the consumer’s awareness and knowledge of the available brands
increases, so the marketer of Sunsilk must design the marketing mix that makes the prospective
consumers aware about the existence of such a shampoo and knowledgeable familiar with its
features of reducing and preventing dandruff. For this it should use the sources effectively by
putting up advertisements in women’s magazines or setting up demonstrations and free trials in
malls where the prospective buyers can view and use the shampoo on their hair.

Evaluation of alternatives

This is the third stage of the buyer decision process in which the consumer considers the
alternatives available to him in the form of different choices between similar products. Each
consumer would have its own unique evaluation criteria according to which a particular brand
would be chosen among the ones to available to him.

A consumer might notice that it is not only Sunsilk which is providing an antidandruff shampoo
there are many other brands offering the same type of shampoo. For this purpose marketers
should analyze the factors upon which the consumers evaluate the differences between the
brands.

Purchase decision

After the consumer has ranked the different available alternatives in order of preference he will
choose the preferred brand and make the purchase. Two factors play an important role in this
purchase: attitudes of others and the unexpected situational factors. If the price of the
competitor’s brand has gone down so it is likely that the consumer would choose that shampoo
or, if a friend expresses his dislike over the use of Sunsilk then the consumer may change his
choice.

Postpurchase behavior

This is the final stage of the buyer decision process in which the consumer expresses his
satisfaction or dissatisfaction with the use of the product. If the marketer of Sunsilk has
successfully sold its product another bigger test awaits him. After using the shampoo if the
Consumer Behavior

consumer experiences any type of skin allergy, then the producer has been unsuccessful in
meeting the consumer’s expectations. Hence the consumer will not make a repeated purchase
and may even prevent his friends from purchasing the product, in this case, the shampoo.

In such a situation the marketer must find a way to change the consumers’ perspective by
either modifying the product i.e. review the chemicals that were used in the shampoo and
change the one that was resulting in the allergy. Also, if the consumers are not using the
product in the first place the marketer can launch its advertising campaign in such a way that it
will attract attention from the consumers who will recognize the need to use the product.

Therefore it is the marketer’s job to either satisfy the consumer’s need by recognizing it or
make the consumer realize its own need through advertising or creating awareness that such a
product is available in the market. For a consumer to use a new product it has to go through an
adoption process. It is the process in which in the consumer initially hears or finds out about a
product.

If a consumer finds out about Sunsilk being an alternative brand for hair care products, this
means that the consumer has gained awareness about a new product but it is not necessary
that he will have complete information about it. Depending on the consumer’s interest she will
seek information and evaluate whether the product is worth trying or not.

Initially she will want to try the shampoo in a small amount so rather than buying a bottle she
will prefer to purchase a sachet of it. After using it for the first couple of times, she notices that
the shampoo has fulfilled her expectations of making her hair soft and silky so now she will
adopt the product by consuming the shampoo at a regular rate.

FACTORS AFFECTING CONSUMER BEHAVIOR

Often consumers themselves do not know what influences their purchases but the marketers
have established a number of factors that play a strong role in influencing the consumers while
making purchase decisions. However, it must be noted that the marketer cannot have total
control over these causes.

Cultural Factors

Culture is the set of basic values and perceptions that are shared by a group of people, these
behaviors are learned from one’s family or other established institutions. Every group has its
own unique culture around which the member of that society learns to live and develop. It is
the marketer’s job to study the culture and its shifts in order to discover new products that
Consumer Behavior

might become the need for people over a period of time. As people gained awareness
regarding the importance of health and fitness a huge industry was born catering to this new
need. Similarly as marketers at Sunsilk spotted a growing concern over self grooming, especially
among women, it introduced its various hair care products to fill that demand.

Subculture is a smaller group of people within a bigger culture who are united in their life
experiences and situations. Mostly subcultures are formed on geographic, racial and religious
grounds which constitute of important market segments. With respect to each subculture the
marketer often designs or modifies its products to meet their demand. The marketer, when
marketing the product, considers the qualities or traits that dominate the particular subculture
and uses that to promote its product effectively.

In an area where focus is on straight, silky hair than lots of volume there Sunsilk’s marketing
team should promote those products whose use results in straight hair as there would be a
market for such hair care products. Therefore it is important to know about the group’s
characteristics before launching or promoting a good or service.

Social class is a feature of every society present in a relatively permanent order, members
share similar values, interests and behaviors therefore they are grouped together. It is a
misconception that social class is characterized by income only, whereas this is not true. Apart
from income, occupation and education are also important determinants. Social classes depict
similar choices in clothing, automobiles, leisure activities, etc.

Marketers further subdivide social classes into lowers, working class, middle class and uppers.
As for Sunsilk its focus has been mostly working class and middle class, as they make up for the
most populous segment of the market. Its wide range of products is suitably priced attracting
millions of consumers worldwide.

Social factors

Groups and social networks have direct influence over the choices people make; therefore its
power cannot be undermined by the marketers. People are often influenced by reference
groups to which they do not belong which results in aspirations and hopes. Marketers expose
the individuals to new lifestyles, behaviors and attitudes that in turn affect the consumer’s
choice when making buying decisions.

Mostly marketers employ the use of opinion leaders who because of their charismatic
personality, famous profile or special skills possess more power of influencing people. For this
reason celebrities and other famous people are appointed brand ambassadors as marketers are
aware of their mass appeal. Over the years Sunsilk has also featured many beautiful models and
celebrities such as Madonna, Shakira and Marilyn Monroe to promote their products in
countless advertisements and attract young girls and women.
Consumer Behavior

In today’s world social networks are an effective means to promote products on and build
interactive customers relationships. Instead of using the conventional one way commercial
method of advertisements, marketers are using these networks to forge interaction with their
consumers. Sunsilk India, in keeping up with this trend, has launched a social networking site
called Gang of Girls which provides its users with expert advice regarding hair care needs and
fashion, in addition to other interesting activities such as blogs, games and quizzes.

Family members can strongly influence behavior as they are perceived to be the most
important when it comes to buying decisions. This is the reason why marketers consider the
roles and relationships between family members when marketing their products. Buying roles
change as consumers evolve over time. Where, before parents or siblings have been providing
advices on what to buy and what not to, with time that role tends to be filled by a person’s
spouse. If the buying decision of a particular product is influenced by the wife then the
marketers will try to target the women in their advertisement.

Roles and status are the person’s position in a group. A role consists of the activities that the
person is expected to perform such as at home a person is expected to fulfill the role of a son,
brother or father depending on the people around him. Each role gives the person a status
which reflects the society perception towards that role.

People mostly choose products according to their roles and status. A working woman would
buy the kind of clothing that reflects her role and status. Therefore it is these roles and status
that the marketer should focus on. Hence Sunsilk has invariably featured women from all walks
of life in their advertisements and promotional campaigns to cater to a huge market of beauty
conscious women.

Personal Factors

Age and lifecycle stage play an important part in the changing patterns of consumer behavior
over lifetime. Marketers often classify their target markets in terms of age and lifecycle stage
and develop marketing strategies according to them. As a person grows in terms of age its
lifecycle stage also progresses resulting in demand for different goods and services.

Traditionally life cycle stages progressed from “single” to “married” to “married with children”
or “single parents”. Nowadays there are alternative stages as well such as “unmarried couples”,
“childless couples” or “adoptive couples”. No matter what the lifecycle stage is marketer
develop their products according to the needs and demands of each. However, marketers
should not let this segmentation be interpreted as stereotyping as this might send a negative
message and offend the consumers rather than catch their attention.

Sunsilk with its hair care products caters to almost all the stages of lifecycle as basic need of a
shampoo and conditioner stays to some extent constant throughout the consumer’s life.
Consumer Behavior

Nevertheless keeping up with the trend in hair dying it can introduce similar products which
would cater to higher age groups.

Occupation highly affects what goods or services are bought and what are not. As income is
directly related to occupation so it widely categorizes what products are within the purchasing
power of a consumer. Depending on the person’s occupation marketers market such products
in which the potential consumer may show some or any interest at all.

Sunsilk’s mass appeal has been beautiful and manageable hair just by washing them. For this
reason it is a compelling choice for working women or mothers who have less time to tend to
themselves.

Economic situation affects product choice through the changing trends in economic factors
such as interest rates, savings and personal incomes. If economic indicators predict an
impending recession so, the marketers need to review their pricing strategy by reducing the
prices of their products. Whereas, sales promotions are used by marketers to promote their
products which are already available in the market in order to diminish their potential loss in
case the economy takes a downward turn.

In the times of economic prosperity, marketers can alter their marketing mix by incorporating a
luxurious image for their products and charging high prices for it. It is during this time that most
innovation takes place in the form of new goods and services as it is generally observed that
people are better off and in search of wider variety of products to choose from. By following
the ups and downs in the economic cycle, Sunsilk can add more products to its portfolio of hair
care such as serums and many other revitalizing products.

Lifestyle is a person’s pattern of living expressed by one’s social class, interests, personality and
opinions. People having different lifestyles require different products therefore lifestyle is a key
concept in understanding the consumer’s buying behavior.

Marketers promote their products in such a way that the consumers are led to believe that they
are not just making a purchase but actually investing in a whole lifestyle and its values. Mostly
such approach is taken for high end consumer brands which are targeted at affluent urbanities.

On the other hand, lifestyle is not always characterized by income; other components also take
part in it such as a person’s hobbies, work, activities, and interests in food, fashion, family and
recreation. Sunsilk also caters to a lifestyle of people who are conscious of their image in terms
of personal grooming and style. Therefore marketers should promote this feature in their
promotions and advertisements.

Personality is the person’s unique characteristics which are formed through one’s interaction
with the environment; it also includes a person’s experiences and attitude towards life and
others in general. A person’s personality is seen as relatively consistent over a prolonged period
Consumer Behavior

of time. As people have personalities marketers also strive to create personalities for their
brands so that consumers will choose brands with personalities matching theirs.

Sunsilk gave its brand the tagline of “Life Can’t Wait” as part of its advertisement campaign in
2008. The philosophy behind this message is for the girls to make affirmative choices in order to
acquire power over their lives. This strategy of marketers of incorporating self image in their
brands helps in achieving their goal of consumer social responsibility as well.

Psychological Factors

Motivation is a need or drive that compels the person to pursue his goal and thereby attain
satisfaction. Many buying decisions undertaken by the consumers have a hidden motive behind
their purchases. For instance a middle aged woman buying Sunsilk shampoo says that she is
using the shampoo so that she can have silky, manageable hair. Whereas, at a deeper level, she
may be trying to impress others by flaunting her beautiful hair.

Many companies for that reason employ teams of psychologists to try to unravel the workings
of a consumer’s mind. In this way, motivation researchers use techniques to reveal hidden
emotions and attitudes towards different brands and buying situations. The purpose of doing so
is to develop better marketing strategies.

Perception is the process through which people interpret and organize information to create
sense out of it. Though perceptions are of three types: selective attention, selective distortion
and selective retention.

Selective attention is when consumers pay attention to the information that is most presented
to them, so the marketers have to work very hard to grab the attention of the consumers as
there is such a heavy influx of advertisements around them. On the other hand, selective
distortion is the tendency of people to interpret new information according to their
preconceived notions. For instance if they have a bad image associated with a product any new
advertisements will reinforce that bad image.

At the last we have selective retention according to which consumers tend to remember the
good points of one brand only and disregard all others. This usually happens for products which
enjoy strong brand loyalty from its regular consumers.

Learning is the process through which an individual’s behavior changes with experience.
Factors such as drive, stimuli, responses, reinforcement and cues play an important role in
learning. A person will have the drive to have dandruff free hair so this will result in the person
taking notice of the stimuli around him in the form of different alternatives available. Then by
following the subtle cues the person will respond in making the purchase i.e. buying Sunsilk’s
antidandruff shampoo.
Consumer Behavior

If the shampoo fulfills its promise of reducing dandruff then the person’s response will be
reinforced and so the next time he has to purchase a hair care product he will consider Sunsilk’s
products definitely.
Consumer Behavior

References

1. Kotler, Philip, Armstrong and Gary 2010, Principles of marketing, 13 th edition, Dorling
Kindersley, India

2. Principles of marketing slides, viewed on November 28, 2010,


http://www89.homepage.villanova.edu/edward.schmitt/ppt/ppt.html

3. Psychographic factors affecting consumer behavior, viewed on November 28, 2010,


http://www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-
behavior/external-influences-psychological/

4. Factors affecting consumer behavior, viewed on November, 28, 2010,


http://ezinearticles.com/?Factors-Affecting-Consumer-Behavior&id=4602848

5. Sunsilk, viewed on November 28, 2010, http://en.wikipedia.org/wiki/Sunsilk

6. Cultural factors affecting consumer behavior, viewed on November 28, 2010,


http://www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-
behavior/external-influences-culture/

7. Consumer behavior, viewed on November, 29, 2010,


http://en.wikipedia.org/wiki/Consumer_behaviour

8. Consumer behavior, viewed on November 29, 2010,


http://www.consumerpsychologist.com/

9. Consumer behavior, viewed on November 29, 2010,


http://www.referenceforbusiness.com/management/Comp-De/Consumer-
Behavior.html

10. Factors affecting consumer behavior, viewed on November 29, 2010,


http://www.referenceforbusiness.com/management/Comp-De/Consumer-
Behavior.html

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