Radhika

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Consumer behaviour

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Radhika

  1. 1. FORMULATING MARKETING STRATEGY FOR CROSSWORD , AHMEDABAD USING THE CONCEPTS OF THE BOOK ‘CONSUMER BEHAVIOR AND MARKETING STRATEGY’ BY PETER & OLSON
  2. 2. PRESENTATION ENDEAVOR <ul><li>Crossword in a Nutshell </li></ul><ul><li>The Current Status </li></ul><ul><li>Current A, C, B, E’s </li></ul><ul><li>The Desired Status </li></ul><ul><li>Desired A, C, B, E’s </li></ul><ul><li>Marketing Strategies & their justification </li></ul>
  3. 3. CROSSWORD IN A NUTSHELL <ul><li>The Inception of the chain was on 15th October 1992 . </li></ul><ul><li>A wholly owned subsidiary Company of Shopper's Stop Ltd - India's .The Holding Company inter-alia also acts as a Master Franchisee of the Company. </li></ul><ul><li>Crossword, has forty-eight stores , across Mumbai, Bangalore, Ahmedabad, New Delhi, Ghaziabad, Pune, Nagpur, Vadodara, Kolkata, Chennai, Jaipur, Vishakhapatnam and Hyderabad </li></ul><ul><li>Positioned as a lifestyle bookstore , crossword encourages serious book buyers in addition to book lovers by way large, spacious, well laid out stores with bright light and cheerful interiors to stay and browse. </li></ul>
  4. 4. CROSSWORD IN A NUTSHELL (CONT..) <ul><li>OTHER PLAYERS: </li></ul><ul><li>Landmark </li></ul><ul><li>Om Book Shop </li></ul><ul><li>RESPONDENT DETAILS </li></ul><ul><li>Sample size: 14(students, a housewife and a school kid ) </li></ul><ul><li>9 Males; 4 females; 1 kid(5yrs) </li></ul>
  5. 5. CURRENT STATUS. <ul><li>Crossword enjoys established brand status w.r.t. Landmark.( in Ahmedabad) </li></ul><ul><li>Om Book shop Lures the price sensitive customers . </li></ul><ul><li>Sales of fiction books is highest followed by children specific. </li></ul>Crossword Landmark Om Book shop Week days Week end Week days Week ends Week days Week ends Footfalls 250-300 Upto 500 300-350 Upto 650 100-150 200-300 stores 4 1 1
  6. 6. CURRENT A,C,B,E. Types of affective responses Emotion Joy(7) Love(4) Fear(1) Guilt(2) Anger(1) Specific Feelings Warmth(5) Apprecia-tion (8) Satisfaction(7) Sad(1) Moods Alert(1) Relaxed (10) Calm(5) Bored(2) Evaluation Like(10) Good(9) Favorable (13) Unfavorable(1)
  7. 7. CURRENT A,C,B,E Cognition
  8. 8. TYPES OF PRODUCT KNOWLEDGE . <ul><li>Bundle of Attributes </li></ul><ul><li>Bundle of benefits </li></ul><ul><li>Value satisfaction </li></ul>Crossword Crossword Crossword Large book store Not been cheated Satisfied and relaxed Concentration to read Authenticity of having original copy of the book Find all types of books at one place Branded store Reader centric ambience Wisdom + sense of accomplishment
  9. 9. KNOWLEDGE General knowledge Procedural knowledge Branded Book store Its free to enter Has a large collection of books Its free to browse It also stocks stationery and other items one can gift. Cash and card, both are acceptable It is expensive You ought to maintain silence in the store Visited by people of educated background or having intellectual bent Non- smoking place
  10. 10. SCHEMA: ASSOCIATIVE NETWORK Brand Reliable Easy to get a voucher or book online Attracts good crowd Expensive Organized book store Find the stuff you need Easy to find specific books Quiet Large collection Find books one needs Sense of freedom Self help store Everyone busy reading boring Huge Good ambience Gives concentration to read Colorful/ cheerful Lots of toys Find more kids to play with Can’t go in groups
  11. 11. MEANS END CHAIN FOR CROSSWORD Abstract Attributes Concrete Attributes Functional consequence Psychosocial Consequence Instrumental value Terminal value Branded book store Expensive Good to visit often Inspires to read Ambitious(to buy) Wisdom Convenient Well situated Approachable Value for time Logical/ responsible Sense of comfort Huge Loads of books More choices Satisfied Cheerful and independent Sense of accomplishment/ pleasurable Colorful/ cheerful Lots of toys Get to play Enjoyment Cheerful and independent Pleasurable/ happy Huge book store Large section for kids Informative Learning experience for children Responsible/ sincere(honest) Sense of accomplishment/ taking care of family/ happy Book store BOOK STORE!! Intense environment Boring Responsible (not disturb other) True friendship Book store Self help No one disturbs Freedom Independent/ imaginative/ capable Freedom/ pleasurable/ wisdom/ self respect/ happiness Huge book store Place to read without intervention & has a quiet environment Find books of choice to sit and read Can’t go for referring a book in a group Self controlled - Attributes Consequences Values
  12. 12. BASIC MODEL OF CONSUMER PRODUCT INVOLVEMENT <ul><li>Consumer characteristics </li></ul><ul><li>Serious buyers </li></ul><ul><li>Book lovers </li></ul><ul><li>Overall all backgrounds and demographics </li></ul><ul><li>Product characteristics </li></ul><ul><li>Expensive </li></ul><ul><li>Reliable </li></ul><ul><li>Well estb. Brand </li></ul><ul><li>Assures service quality </li></ul><ul><li>( ambience+ staff+ books availability+ service recovery </li></ul><ul><li>Situational context </li></ul><ul><li>To gift </li></ul><ul><li>For mood change </li></ul><ul><li>To buy </li></ul><ul><li>To read </li></ul><ul><li>To hang out </li></ul><ul><li>Accompany some </li></ul><ul><li>Urge to visit while passing by </li></ul><ul><li>Intrinsic self-relevance </li></ul><ul><li>Worth visiting </li></ul><ul><li>Happy </li></ul><ul><li>relaxed </li></ul>Situational self relevance Promotional offers+ Need based <ul><li>Involvement </li></ul><ul><li>High involvement </li></ul><ul><li>Branded book store </li></ul><ul><li>Self help </li></ul><ul><li>Quiet </li></ul><ul><li>Huge </li></ul>Interpretation & Integration processes
  13. 13. CONSUMER’S COGNITIVE PROCESSING MODEL INVOLVED IN INTERPRETATION Exposure to environmental info. Reference, outlets (accidental), print media Interpretation process Preconcious + focal attention Comprehension: Highly automatic, deep, elaborate, and greater recall K,M,B It has a huge collection; Most favorable; Expensive yet reliable Integration process Positive attitude; Decision to make a visit Behavior Make a visit, recommend + revisit Expensive , reliable, worth visiting Cognitive process
  14. 14. FISHBEIN’S MODEL. Crossword Ao=51 Collection of books & stationery Store layout , interiors Pricing e1=+3 e2=+3 e3=0 b1=8 b2=9 b3=8 Landmark Ao=23 Collection of books & stationery Store layout, interiors Pricing e1=+2 e3=+1 e2=0 b1=8 b2=7 b3=8 Score: Crossword: 51 Landmark: 23 Om Book shop: 18
  15. 15. EFFECT OF INVOLVEMENT AND PRODUCT KNOWLEDGE. <ul><li>High involvement </li></ul><ul><li>High knowledge </li></ul><ul><li>BASIC MOTIVATION Influence of reference groups, need based visit; believe that they’ll find </li></ul><ul><li>what they’re looking for </li></ul><ul><li>END GOAL Feeling satisfied , relaxed, happy after visiting the store </li></ul><ul><li>GOAL HEIRARCHY find what they were looking for, found it worth spending time </li></ul><ul><li>CONSIDERATION SET Landmark, Om book shop. </li></ul><ul><li>CHOICE CRITERIA Affect referral, important person, works best! </li></ul><ul><li>DECISION HEURISTICS Source credibility, goal satisfaction. </li></ul><ul><li>DECISION PROCESS Limited problem solving(moderate) </li></ul>
  16. 16. COMMON BEHAVIOR SEQUENCE CONSUMPTION STAGE TYPES OF BEHAVIOR EXAMPLES PRE PURCHASE Information contact Reference groups, Ads(print) Funds access Carry cash or just prefer to walk in with a credit/debit card PURCHASE Store contact Locate crossword Just travel (if known) Enter the store Product contact Search for the item(book, stationery etc). Sit and read Go to the billing counter Transaction Exchange available funds to exchange and exit. Or exit without purchase POST PURCHASE Consumption & Disposition Read book Gift it Inventory it for future reference revisit Communication Recommend it to others.
  17. 17. APPROACHES TO INFLUENCING OVERT CONSUMER BEHAVIOR consumers want to relax, satisfy their need, come to read, and buy influences their repeat visits, Spread of WOM, Purchase influence by way of warmth in the atmosphere which leads to joy of customer & creates rich KMB’s stimuli placed, comfortable seating, quiet atmosphere with light background music, clear signage Can be taken a note of by way of sales and ethnographic systems such as surveillance systems Avg time spent : 1-3hours visiting frequency: once in every two weeks/ once a month
  18. 18. ENVIRONMENT
  19. 19. SOCIAL ENVIRONMENT Macro & micro social environmental factors MACRO SOCIAL FACTORS PARTICUALRS MICRO SOCIAL FACTORS Culture Indian Family Sub culture Gujrati, ahmdavadi, IIM-A ( intellectual crowd), other student crowd influencing and encouraging reading habits. Overall culture adaptable yet rigid with values. Stingy, look for value for money and seek high utility in purchase. Friends Social class High and middle class, young professionals. Teachers
  20. 20. PHYSICAL ENVIRONMENT
  21. 21. MODEL OF CULTURAL PROCESSES Cultural meaning in social & physical environment Cultural meaning in CW is enhanced Rituals Acquisition (CW adopted) Possession (purchase) Grooming: influence others Nurture: influence from others Cultural meanings in consumers Mkting strategies: stores like CW , Landmark Fashion system Other institutions: Educational etc do influence the culture adapt to the new culture Be a part of the society, to gain acceptance
  22. 22. DESIRED STATUS. <ul><li>To increase purchase along with footfalls. </li></ul><ul><li>Increase revenues from current level by at least 25% </li></ul><ul><li>Increasing purchase of books other than fiction and books for children. </li></ul>
  23. 23. DESIRED A,C,B,E’S TYPES OF AFFECTIVE RESPONSES EXAMPLES Emotions Love and joy Specific feelings Appreciation and satisfaction Moods Relaxed Evaluations More favorable and liking
  24. 24. DESIRED K, M, B’S
  25. 25. VALS™ FRAMEWORK & SEGMENTS Score details: Innovators : 3/6 Strivers 2/6 Experiencer: 4/6 Achiever: 2/6 Makers: 1/6
  26. 26. Person situation segmentation Person Segmentation Situation segmentation Person/ situation segmentation Large book store, Users are 18-40yrs of age Someone to relax and read misses to enjoy a coffee as CCD is quite expensive. Students cant afford to discuss in groups Coffee from vending machine is preferable; place for group discussion is preferable. Benefit segmentation to relax and read without compromising comfort Product Perception Segmentation Brand will enjoy high usage, and a perception of a more favorable liking. Behavior segmentation : The brand will gain more favorable attributes due to addition of new KMB’s
  27. 27. BRAND LOYALTY AND USAGE RATE Brand Loyalty Light usage Variety seeking Heavy Usage
  28. 28. BEHAVIOR & ENVIRONMENT <ul><li>Behavior: Buy, repurchase and recommend Crossword, participate. </li></ul><ul><li>Environment: </li></ul><ul><li>New seating arrangement </li></ul><ul><li>More in-store advertising </li></ul><ul><li>Newspapers advertisements. </li></ul><ul><li>Coffee Vending machine </li></ul><ul><li>Juke Box for inventory and book search for interactive marketing in-store along with feedback initiative. </li></ul>
  29. 29. CONCEPTUAL MODEL OF COGNITIVE PROCESSING OF PRICE FORMATION Price information: credit data(become a CW member by paying 1000/- Attitude ( positive)or experiential Integration( will compare price of membership and its details and seta trade off for price v/s benefits and advantages comprehension( comprehension of engaging customer as a part of CW) Share information at point of sale through a visual card(small leaflet) Will engage as a CW Member Environment Affect & cognition Behavior
  30. 30. AN EXPECTANCY DISCONFIRMATION APPROACH TO SATISFACTION PREPURCHASE EXPECTATIONS Large store, printed price, large collection, Reader centric ambience POST PURCHASE PERCEPTIONS Large well lit store, with a soothing environment coupled with crowd to inspire reading instict. Positive DISCONFIRMATION(11) Neutral(1) Negative (2) SATISFACTION
  31. 31. COMMUNICATION PROCESS FOR PROMOTION
  32. 32. MECCAS MODEL Driving force Value orientation of ad Leverage point Hook connecting tangible attributes and consequence to intangible value and goal. Consumer benefits Verbal or visual key benefits . Message elements Communication of brand attitude in ad Executional framework All details of finished ad including model, setting, situation, clothing, script, theme. Values Psychosocial consequences Functional consequences Attributes READ WITHOUT COMPROMISE
  33. 33. CENTRAL ROUTE TO PERSUASION exposure to the persuasive communication of CW Membership and introduction of vending machines Persuasion Brand attitude:+ve Purchase intention: will be encouraged comprehension Deeper thoughts due to consequences ( comfort without compromise) Attention Higher involvement with message leading to further involvement with store
  34. 34. JUSTIFICATION <ul><li>Analysis of consumer vulnerability </li></ul><ul><li>Schema </li></ul><ul><li>Other facts </li></ul>
  35. 35. AN ANALYSIS OF CONSUMER VULNERABILITY buy regularly never buy buy occasionally dislike Neutral Like loyal to brand (6) ( 8) occasional buyers but not vulnerable they like our brand but do not buy. due to price sensitivity .
  36. 36. SCHEMA: ASSOCIATIVE NETWORK Brand Reliable Easy to get a voucher or a book, online Attracts good crowd Expensive Organized book store Find the stuff you need Easy to find specific books Quiet Large collection Find books one needs Sense of freedom Self help store Everyone busy reading boring Huge Good ambience Gives concentration to read Colorful/ cheerful Lots of toys Find more kids to play with Can’t go in groups
  37. 37. OTHER FACTS <ul><li>Landmark is a renowned brand backed by TATA group and with its recent establishment in the city it has equivalent no. of footfalls due to in-store presence with Westside. </li></ul><ul><li>Buying books is seen as worth treasuring by only 33.33% of the respondents. </li></ul><ul><li>Crossword enables to read but endeavors to buy are few. </li></ul><ul><li>Book authenticity is not top of the mind criteria, book content is </li></ul>
  38. 38. OTHER FACTS (CONT…) <ul><li>THANK YOU. </li></ul>Reasons to not purchase Reasons to purchase Online availability Purchase intention : gift Free book reading in store Worth treasuring High prices Repetitive reading required Pirated version/counterfeit books in market are available Good quality of paper vis-a-vi street hawkers and other local book stores One time stories are not preferable to be bought To buy for passing time during traveling Library memberships Imposed reading
  39. 39. Thank you!
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