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An introduction to consumer behavior

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An introduction to consumer behavior

  1. 1. A<br />Synopsis Report <br />ON<br />AN ASSESSMENT<br />OF CONSUMER PURCHASE DECISION INVOLVEMENT <br /> AND ADVERTISEMENT INVOLVEMENT<br />IN BRANDED APPARELS<br />Submitted to:Submitted By:<br />Ms. Meenal Guglani kuldeep sharma <br />Assistant Professor MBA- Final<br />MBA ProgrammeRoll No. : 721<br /> <br />MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT & TECHNOLOGY <br /> Jagadhri – 135 003<br />An Introduction to Consumer BehaviorConsumer Behavior is the study of who acquires, consumes and disposes of products (goods, services, ideas, images, brands) and where, when, how, and why they do so.  Marketers must understand their consumers' behaviors before they develop marketing strategy (e.g., segmentation, targeting, positioning, and the marketing mix). Definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).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 result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, 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 high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.Consumer behavior is interdisciplinary; that is, it is based on concepts and theories about people that have been developed by scientists, philosophers & researchers in such diverse disciplines as psychology, sociology, social psychology, cultural anthropology, and economics. The main objective of the study of consumer behavior is to provide marketers with the knowledge and skills, that are necessary to carry out detailed consumer analyses which could be used for understanding markets and developing marketing strategies. Thus, consumer behavior researchers with their skills for the naturalistic settings of the market are trying to make a major contribution to our understanding of human thinking in general. The study of consumer behavior helps management understand consumers’ needs so as to recognize the potential for the trend of development of change in consumer requirements and new technology. And also to articulate the new thing in terms of the consumers’ needs so that it will be accepted in the market well. The following are a few examples of the benefits of the study of consumer behavior derived by the different categories of people :A marketing manager would like to know how consumer behavior will help him to design better marketing plans to get those plans accepted within the company. In a non-profit service organization, such as a hospital, an individual in the marketing department would like to know the patients’ needs and how best to serve those needs. Universities & Colleges now recognize that they need to know about consumer behavior to aid in recruiting students. “Marketing Admissions” has become an accepted term to mean marketing to potential students.  <br />Literature review<br />Gijsenberg (2003) introduced a systematic investigation on the evolution in the effectiveness of two important marketing mix instruments, advertising and price, over the business cycle. Analyses are based on 163 branded products in 37 mature CPG categories in the UK, and this for a period of 15 years. The data are a combination of (i) monthly national sales data, (ii) monthly advertising data, (iii) data on the general economic conditions, and (iv) consumer survey data. Consumers are shown to be more price sensitive during contractions. In addition, spending patterns will be less consistent, implying smaller brand loyalty. Advertising elasticity, however, do not seem to be affected by economic downturns. Product involvement was shown to be an influential moderator of the final effect of advertising, price and carry-over effects on sales. Finally, although short run effectiveness of price differs between expansions and contractions, the long run effectiveness of both advertising and price is not altered by differences in the general economic conditions.<br /> <br /> Ibbotson (2005) said that Purchase-decision involvement is distinguished from product-class involvement. Literature on consumer involvement is shown to be lacking a measure of purchase involvement. Therefore, a scale of purchase-decision involvement is developed. Two empirical studies are described and are shown to furnish tests of convergent and discriminate validities. The individual items of the proposed scale are explicitly embedded in the purchase-decision context, and the scale is simple and parsimonious, making it especially useful to practitioners.<br /> Jensen (2009) justified that how the degree of personal involvement in a purchase decision affects the information needed to reduce cognitive dissonance associated with that purchase. The authors argue that, highly involved individuals, because of their high involvement in purchase decisions, are rigid in their preconceived cognitions that led to the purchase. Consequently, they tend to downplay the new cognition and actively look out for purchase supportive information, rather than changing the old cognition that led to the purchase decision. Also, it is proposed that, to overcome the cognitive dissonance associated with a high involvement purchase, more supportive information is needed to overcome the cognitive dissonance associated with a low involvement purchase. Yet another finding of the study is that the willingness of a dissonant individual to accept the new cognition increases with the elapse of time from the time of occurrence of the cognitive dissonance. The study also unveils that, for a typical purchase, the degree of cognitive dissonance felt by more involved purchasers is less than that felt by less involved purchasers. Thus, interestingly, even though the degree of cognitive dissonance felt by highly involved purchasers is lower, the difficulty for them to grapple with it is higher. An associated finding is that more planned and less spontaneous buying behavior is associated with a higher degree of cognitive dissonance.<br />Shahabuddin (1999) said that available evidence from the literature tells that satisfaction depends upon the consistency between expectations and performance. When product performance is below expectations dissatisfaction is resulted, whereas satisfaction arises when performance equals or exceeds the performance expected. We argue that incorporating tourist's purchase involvement with the tourism product as a moderator in the above relationship can enrich the above model. Through an empirical study we establish that increased purchase involvement increases dissatisfaction in the event of disconfirmation and decreases satisfaction in the event of confirmation. Likewise, decreased purchase involvement decreases dissatisfaction in the event of disconfirmation and increases satisfaction in the event of confirmation<br />Black (2006) justified about the contributions of advertising on the success of a company or a product while it is true that the impact of advertising is evident in our socio-economic system. Advertising is an aid to manufacturers, wholesalers and retailers in the process of marketing commodities to a greater number of customers. It touches and influences the live of practically every man, woman and child. Advertising is a powerful communication force and an important marketing tool to help sell goods. <br /> Research Methodology<br /> Objectives of the Study<br /><ul><li>To study the degree of consumer purchase decision involvement and </li></ul> Advertisement involvement in branded apparels<br /><ul><li>To study the impact of consumer purchase decision involvement and
  2. 2. Advertisement involvement on purchase decision for branded apparels
  3. 3. To study the consumer purchase decision involvement and advertisement
  4. 4. Involvement on purchase decision for branded apparels across different socio-demographic profiles.</li></ul>Hypothesis<br />1. There is no significant difference in the degree of consumer purchase decision involvement and advertisement involvement in branded apparels<br />2. There is no significant impact of consumer purchase decision involvement and advertisement involvement on purchase decision for branded apparels<br />3. There is no significant difference in consumer purchase decision involvement and advertisement involvement on purchase decision for branded apparels across different socio-demographic profiles.<br />RESEARCH DESIGN<br />A research design is the arrangement of conditions for collection & analysis the data in a manner that aims to combine relevance to the research purpose with economy in procedure. It is a plan that specifies the source & type of information relevant to the research problem. The research is Descriptive in nature. The research will be focused on assessing the purchase decision involvement and advertisement involvement in branded apparels in Yamunanagar and describe the behavior of consumer that how it reflect in decision making.<br /> Scope of the Study <br />The scope of study is limited to the branded apparels only. It will be confined to the geographical area of Yamuna Nagar. It will be limited to a small sample of 100 respondents only. <br /> Data Collection:<br />There are several ways of collecting the appropriate data, which may differ considerably in context of money costs, time and other resources at the disposed of the researcher. Broadly data collection methods can be divided in two categories:<br />Primary Data Collection.<br />Secondary Data Collection.<br /> <br />Primary Data <br />The primary data will be collect through survey method with the help of Questionnaire. The data will be collected using Mall Intercept Survey. <br />Secondary Data<br /> In this study secondary data is used, that is collected from following sources.<br />Internet<br />Journals<br />Magazines<br />Newspapers<br /> Sampling Design<br />Sampling is the process of selecting some elements from a population to represent that population. Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In simple words, it is the process of obtaining information about the population by examining only a part of it. <br />Sampling Technique: Probability Sampling<br />Sampling Method: Simple random sampling<br />Sampling Unit: Individual Customer <br />Sample Area: Yamunanagar (Haryana).<br />Sample size: 100<br /> Plan of Data analysis<br />Obj 1: To study the degree of consumer purchase decision involvement and Advertisement involvement in branded apparels <br />Obj 2: To study the impact of consumer purchase decision involvement and Advertisement involvement on purchase decision for branded apparels <br />This objective will be justified by Regression method.<br />Obj 3: To study the consumer purchase decision involvement and advertisement Involvement on purchase decision for branded apparels across different socio-demographic profiles.<br />This objective will be justified by ANOVA method<br /><ul><li> Significance of study</li></ul>Consumers are the end users of any product or services and hence, study of consumer behavior is important for the marketers to analyze the various factors which influences consumers mind for buying products or services.<br />Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.<br />Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. <br />

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