Consumer Behavior

1. CONSUMER INSIGHTS:
REFRIGERATOR- DOUBLE DOOR

2. • Physiological- storing perishable items
• Esteem- status, superiority,
demonstration/evidence of accomplishment;
buying at a premium price to impress
friends/relatives and come across as stylish to
them
NEED
• Replacement for old, small refrigerator for want
of space
• Old refrigerator stops working
• Old refrigerator breaks down
frequently/consumes lots of energy
• The model/style of the current refrigerator has
become outdated
• Need for a festive purchase
PROBLEM RECOGNITION
• Vegetarians- spacious vegetable basket
• Non-Vegetarians- Deep freezing ability
• Single(Unmarried) professionals- Less capacity
(culture of eating outside home); prefer more
storage shelves on the door (for bottles), hosting
cocktail parties; capacity relatively less
important- number of family members is a more
substantial determinant of the refrigerator’s
capacity, vis-à-vis the family income
• North Indian homes- Extensive storage for water-
bottles/cold-drinks for hot summers; big size as a
back-up for power outages in summers
SEGMENT WISE NEEDS
PROBLEM
RECOGNITION
•Active problem
Consumer is aware of/will become aware of in the normal course of events
•Generic problem
A variety of brands within the product category can solve the problem
INFORMATION
SEARCH
•Internal Past Experiences
•Externalprint, TV, websites, banners, festival promotions, friends & family,
showroom visits
ALTERNATIVE
EVALUATION
•Many attributes
capacity, colour, size, energy efficiency, style, number of
trays/shelves/doors, post-sale service, guarantee/warranty, price,
company, frost free
•Complex decision rules
Value for money, Low price implies low quality, Scope for easing price
constraints for additional features, Should blend in with the home
décor, Should not be too flashy etc
•Many alternatives
w.r.t size, brand, design, style, colour, price
High Involvement Purchase
Extended Decision Making
usually a compensatory
decision rule followed in
the sense that buyers are
open to averaging out
some very good features
with less attractive ones
(although, calculations are
not rigorously done)
Lexicographic
decision rule is
uncommon as
buyers do not base
their choice on a
single (most
important)
attribute
Conjunctive
decision rule may
be used to rule out
certain
alternatives, e.g.
based on their
price.
Evaluative Criteria
Attribute based choice process

3. “ Many friends are using double door refrigerators ”
“ A double door refrigerator will demonstrate how
modern and updated I am ”
• After dinner, to keep left-over food.
• In the morning/evening, to store purchased
vegetables/fruits/bread/milk.
• Before hosting a party, to preserve prepared
dishes.
• On hot days, to retrieve cold water.
USAGE
“ double door refrigerators are useful for multiple
purposes ”
“ a wide variety of colors and styles are available to suit
my taste ”
• Increased storage space
• Faster cooling
• Separate compartments leads to better
performance
• Ice can be formed faster as the freezer door is
not opened as frequently as the fridge door,
contributing to energy conservation.
• Ergonomic convenience- Need not bend
BENEFITS
• High-Involvement product: Comparison making
is a central aspect of the buying behaviour.
Consequently, buyers derive satisfaction by
shopping at malls/showrooms/dealers where
various brands are displayed together
• Utilitarian Need
• Cognitive , Growth, Passive, External
• Consumer- a problem solver; approaches
ads/salespeople as a source of learning
for future as well as current decisions
MOTIVATION
LATENT MOTIVES
MANIFEST MOTIVES
“ It will make me popular among my relatives ”
Initiator: Wife/Mother Information gatherer: Husband
Influencer:
Wife/neighbours/relatives/kids
Decision maker: Joint-decision Purchaser: Husband User: Family
“ It shows my sophisticated, contemporary lifestyle ”
“ My neighbour also owns one ”

4. Magazine Ads Newspaper Ads
Affective Components
“BRING HOME PRIDE” – Positive
affects or emotions
Cognitive Components
Image of the Double door refrigerator
creates a belief that it performs better
since it shows separate compartments
for ice formation
Positive Reinforcement
Buying Samsung is buying “Pride”
for your home
Peripheral route of Persuasion
Central route of Persuasion
Cognitive Components
Promoting its New product
benefits – Energy Saving
Adding Beliefs – focussing on
“50% Less Noise” Samsung is
attempting to add more criteria
to the consumers evaluation
process
Affective Components
Feel Good Factor – The
customer is purchasing the
latest technology refrigerator.
Positive reinforcement
It is reinforcing the fact that you get
the best and the latest technology if
you buy Samsung Refrigerator
Central route
Cognitive
•Positive Beliefs- New
Features
•Shining Silver Colour
Affective
Style - Positive affect
especially among people who
like to live lavish lifestyles
Positive Reinforcement
Peripheral & Central
Cognitive
•Product features like “Twin
cooling system”
•Credibility – Awards
Affective
Sunlight Image
Positive Reinforcement
Reinforces the style
statement and latest
technology

5. http://www.youtube.com/watch?v=T0TXsIShybM
Central route
of Persuasion
Cognitive
Positive belief – Focus on Strong Attributes
Affective
Celebrity
Negative Reinforcement
Reiterating the fact that if you don’t have a
Samsung refrigerator then the cooling won’t be
perfect.
http://www.youtube.com/watch?v=s3yixKtJcgg
Central route
of Persuasion
Cognitive
Electricity saving attribute
Affective
Father Child relationship
Evokes feelings of warmth among families when
they see the child caring for her father.
Positive reinforcement

6. Magazine Ads Newspaper Ads
Affective Components
Use of imagery to evoke
emotions in the mind of
the reader
Cognitive Components
Functional attributes are
used to convince the user
Positive Reinforcement
Central route of
Persuasion
Peripheral route of
Persuasion
Cognitive Components
Power savings
Affective Components
Bright colours, use of
blue and white
Positive reinforcement
Affective
The attractiveness is
talked about
Peripheral &
CentralCognitive
•Unique feature of
leaving no
fingerprints
Negative
Reinforcement
Buying a fridge to
avoid fingerprints
Central route
persuasion
Cognitive- Discusses
product features
and where they
come from
Affective-Associate
with idea of being
‘fresh’
Positive Reinforcement

7. https://www.youtube.com/watch?v=pv0R
QwIp5YM&feature=related
Central &
Peripheral route
of Persuasion
Cognitive
Genius technology in cooling
Affective
Celebrity, family values
Positive Reinforcement
https://www.youtube.com/watch?v=
huzbBdODBVE
Peripheral route
of Persuasion
Affective
Celebrity, association with cricket &
IPL
Positive Reinforcement

8. Identification of Need
• Need (Maslow’s hierarchy of need):
physiological , esteem
• Motives for purchase:
 Manifest motives
– Product useful for family needs
– Friends own similar kind of products
 Latent motives
– Expression of the need for affiliation,
will own a similar product as his
friends
• Need: (Maslow’s hierarchy of need):
physiological only
• Motives for purchase:
 Manifest motives
– Economical, value for money
– Fulfils the needs of the house
 Latent motives
– The good choice will demonstrate
his logical and analytical decision
making abilities
Respondent 1 Respondent 2
Information Search
Advertisements- broadcast media Advertisements- broadcast
print media
Word-of- mouth
Evaluation of Alternatives
Greater perceived quality Self-check
Influence of friends Cost-effectiveness
Reviews from various independent sources Functionality

9. Purchase Process
Factors Respondent 1 Respondent 2
Price Indifferent Strongly affected
Quality Strongly affected Strongly affected
Availability Indifferent Moderately affected
Brand name Strongly affected;
perceive as
innovative,quality product
Moderately affected;
highly utilitarian, value for
money
Friends/Family Strongly affected Unaffected
Previous experience/
experienced Customer
Unaffected Moderately affected
Advertisement/website Strongly affected Moderately affected
Independent sources Moderately affected Unaffected
Sales promotional
activities
Unaffected Unaffected
Sales personnel/POS Unaffected Unaffected
Store Ambience Indifferent Indifferent

10. Post Purchase Evaluation
Respondent 1
• Loyalty towards brand:
indifferent
• The buyer may prefer to buy a
better quality/cost-effective
product from a different
brand.
Respondent 2
• Loyalty towards brand:
strongly present
• Customer said he would
anytime prefer the product
from the same brand in future
and could even consider re-
purchase.

11. DECISION MAKING Vs. BRAND
COMMUNICATIONS
PURCHASER
(Husband)
USERS
(Family)
Communication
s targeted to
children
(Freshness,
style, trendy)
INFLUEN
CER
(Children
,Homem
aker)
Communications
targeted to Home
makers
(Less noise,
freshness (7 days
fresh), dual sensor,
pride)
INITIATO
R
(Parents)
DECISION
MAKERS
(Parents)
Communication
targeted to
parents
(Savings,
freshness, style)
INFORMA
TION
GATHERE
R
(Husband
& Wife)
Communications
targeted to
children
(Freshness,
Cooling effect-
Yuvraj Singh)
INFLUEN
CER
(Children,
Homema
ker)
Communication
s targeted to
Home makers
(Style, 6th sense
technology,
Product variety)
INITIATO
R
(Parent)
Communication
targeted to
parents
(Savings, fast
cooling, style,
price promotions)
INFORMA
TION
GATHERE
R
(Husband
& Wife)
SAMSUNG WHIRLPOOL
COMMUNICATIONS
Vs. CUSTOMER
EXPERIENCE
SAMSUNG
• Product variety &
promotional activities
are less communicated
• Service center
presence in customer
proximity shall be
communicated as they
are already operational
WHRILPOOL
• No dissonance in
quality and
performance attributes
• Customer demands
ease in availability of
certain spare parts

12. INTERNAL & EXTERNAL INFLUENCES
INTERNAL INFLUENCES
• NEED
• Quality Product: Self-esteem
• Utilitarian Product: Psychological needs
• LIFESTYLE
• Traditional/Modern
• Samsung – Priyanka Chopra (Modern Image)
• Whirlpool – Kajol (Traditional Image)
• PRODUCT INVOLVEMENT
• Brand Image
• EMOTIONS
• Samsung – Group Affiliation
• Whirlpool – Utilitarian/Functional
• ATTITUDES
• Balance between Utilitarian & Hedonic
Benefits
EXTERNAL INFLUENCES
• DEMOGRAPHIC DETAILS
• Income, Age
• Family Size – Nuclear/Joint Family (Capacity)
• MEDIA
• Informative to cater differing needs
• CULTURE
• Avoidance of certain Colors
• Festive promotions
• SUB-CULTURE
• Eating habits
• REFERENCE GROUP
• Neighbours, Relatives, Friends
• OPINION LEADER
• Influential families in neighbourhood
• Samsung –Techno Savvy friends