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Introduction to Consumer Behavior: All of us are consumers.

We consume things of daily use, We also consume and buy these products according to our needs, preferences and buying power. These can be consumable goods, durable goods, speciality goods or, industrial goods. What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us. While buying, we also consider whether to buy or not to buy and, from which source or seller to buy. In some societies there is a lot of affluence and, these societies can afford to buy in greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest needs. The marketers therefore tries to understand the needs of different consumers and having understood his different behaviours which require an in-depth study of their internal and external environment, they formulate their plans for marketing. Management is the youngest of sciences and oldest of arts and consumer behaviour in management is a very young discipline. Various scholars and academicians concentrated on it at a much later stage. It was during the 1950s, that marketing concept developed, and thus the need to study the behaviour of consumers was recognised. Marketing starts with the needs of the customer and ends with his satisfaction. When everything revolves round the customer, then the study of Consumer Behaviour becomes a necessity. It starts with the buying of goods. Goods can be bought individually, or in groups. Goods can be bought under stress (to satisfy an immediate need), for comfort and luxury in small quantities or in bulk. For all this, exchange is required. This exchange is usually between the seller and the buyer. It can also be between consumers.

Definition: Consumer Behavior can be defined as “The decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services”.

This definition clearly brings out that it is not just the buying of goods/services that receives attention in consumer behaviour but, the process starts much before the goods have been acquired or bought. A process of buying starts in the minds of the consumer, which leads to the finding of alternatives between products that can be acquired with their relative advantages and disadvantages. This leads to internal and external research. Then follows a process of decision-making for purchase and using the goods, and then the post purchase behaviour which is also very important, because it gives a clue to the marketers whether his product has been a success or not.

Meaning
Consumer behaviour is the study of when, why, how, and where people do or do not buy 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 behavioural 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. 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). Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the reaffirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. 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.

Factors influencing consumer behavior Consumer purchases are influenced strongly by or there are four factors. 01. Cultural Factor 02. Social Factor 03. Personal Factor 04. Psychological Factor. 01. Cultural Factor : 

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class ** Culture:o *** The set of basic values perceptions, wants, and behaviours learned by a member of society from family and other important institutions. Culture is the most basic cause of a person's wants and behaviour. Every group or society has a

clubs. M & "X" plays the role of father. family. which are more formal and have less regular interaction. o Roles and Status :o *** A person belongs to many groups. he plays the role of manager.  A person's behavious is influenced by many small groups. professional association and trade unions. Groups that have a direct influence and to which a person belongs are called membership groups. Personal Factors :- . and cultural influences on buying behaviour may vary greatly from country to country. Social Factors :  A consumer's behaviour also is influenced by social factors. Sub Culture :*** A group of people with shared value systems based on common life experiences and situations. 03. interests and behaviour. and influence of the husband. 02.o o o o culture. social classes are society's relatively permanent and ordered divisions whose members share similar values. religions. such as the (i) Groups (ii) Family (iii) Roles and status ** Groups :o *** Two or more people who interact to accomplish individual or mutual goals. neighbours and coworkers. friends. Sub culture includes nationalities. wife and children on the purchase of different products and services. Many sub culture make up important market segments and marketers often design products. These includes organizations like religious groups. organizations. racial group and geographic regions. The family is the most important consumer buying organization society and it has been researched extensively. in his family he plays the role of husband. A Role consists of the activities people are expected to perform according to the persons around them. etc.  Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. in his company. Some are secondary groups.  The person's position in each group can be defined in terms of both role and status.  Some are primary groups includes family. Marketers are interested in the roles.  For example. o Family:o *** Family members can strongly influence buyer behaviour. Social Class:*** Almost every society has some form of social structure.

Blue collar workers tend to buy more rugged work clothes. i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes · Motivation :o Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the need · Perception :o The process by which people select. furniture. o Economic situation :o *** A person's economic situation will affect product choice o Life Style :o *** Life Style is a person's Pattern of living.   It includes i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and self concept. · Learning:- . and interpret information to form a meaningful picture of the world. Business.e. lawyers. fashion. can even specialize in making products needed by a given occupational group. and doctors. Buying is also shaped by the stage of the family life cycle.  i. clothes. activities (Work. Products) o Personality and Self concept :o *** Each person's distinct personality influence his or her buying behaviour. A Co. Organize. engineers. Thus. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. o Occupation :o *** A person's occupation affects the goods and services bought. family recreation) and opinions (about themselves. shopping. understanding these forces involves measuring consumer's major AIO dimensions. Psychological Factors :  It includes these Factors. and recreation are often age related. computer software companies will design different products for brand managers. accountants. whereas white-collar workers buy more business suits. Tastes in food. hobbies. 04. support etc) interest (Food. ** Age and Life cycle Stage:o *** People changes the goods and services they buy over their lifetimes.

Cultural Factor 02. Social Factor 03. Culture is the most basic cause of a person’s wants and behaviour.o Changes in an individuals behaviour arising from experience. Cultural Factor : Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class o Culture: The set of basic values perceptions. Every group or society has a culture. 01. Psychological Factor. Personal Factor 04. and behaviours learned by a member of society from family and other important institutions. wants. and cultural influences on buying behaviour may vary greatly from country to country. · Beliefs and attitudes :o Belief is a descriptive thought that a person holds about something o Attitude. feelings. . o Sub Culture : A group of people with shared value systems based on common life experiences and situations. 01. a Person's consistently favourable or unfavourable evaluations. and tendencies towards an object or idea Consumer purchases are influenced strongly by or there are four factors.

which are more formal and have less regular interaction. organizations.  Some are primary groups includes family. religions. Social Factors : A consumer’s behaviour also is influenced by social factors. Groups that have a direct influence and to which a person belongs are called membership groups. clubs.o Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations.  A person’s behavious is influenced by many small groups. social classes are society’s relatively permanent and ordered divisions whose members share similar values. Social Class: Almost every society has some form of social structure. The family is the most important consumer buying organization society and it has been researched extensively. such as the (i) Groups (ii) Family (iii) Roles and status o Groups : Two or more people who interact to accomplish individual or mutual goals. interests and behaviour. professional association and trade unions. These includes organizations like religious groups. racial group and geographic regions. Some are secondary groups. neighbours and coworkers. friends. Many sub culture make up important market segments and marketers often design products. and influence of the husband. o Family: Family members can strongly influence buyer behaviour. wife and children on the purchase of different products and services. Marketers are interested in the roles. Sub culture includes nationalities.  The person’s position in each group can be defined in terms of both role and status.  02. . o Roles and Status : A person belongs to many groups. family.

he plays the role of manager. support etc) interest (Food. and doctors. lawyers. Buying is also shaped by the stage of the family life cycle. 03. clothes. A Co. whereas white-collar workers buy more business suits. accountants. M & “X” plays the role of father. computer software companies will design different products for brand managers. activities (Work. in his company. furniture. can even specialize in making products needed by a given occupational group. engineers. fashion. and recreation are often age related. shopping. Tastes in food. hobbies. For example. A Role consists of the activities people are expected to perform according to the persons around them. o Occupation : A person’s occupation affects the goods and services bought. understanding these forces involves measuring consumer’s major AIO dimensions.e. o Age and Life cycle Stage: People changes the goods and services they buy over their lifetimes. .  i. Products) o Personality and Self concept : Each person’s distinct personality influence his or her buying behaviour. Blue collar workers tend to buy more rugged work clothes. etc. o Economic situation : A person’s economic situation will affect product choice o Life Style : Life Style is a person’s Pattern of living. family recreation) and opinions (about themselves. in his family he plays the role of husband. Business. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. Personal Factors :  It includes i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and self concept. Thus.

Psychological Factors :   It includes these Factors. feelings. Organize. and tendencies towards an object or idea    . a Person’s consistently favourable or unfavourable evaluations. i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes Motivation :o Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the need Perception :o The process by which people select. Beliefs and attitudes :o Belief is a descriptive thought that a person holds about something o Attitude. Learning:o Changes in an individuals behaviour arising from experience. and interpret information to form a meaningful picture of the world.04.

new prospectors and home buyers start shopping. For example. Brand Loyals: These consumers are highly involved with both the product category and with particular brand. They typically respond to price. According to the consumer involvement in either product or particular brand. consumer types can be divided into four categories as described below. fashion products come under this category. cigarette smokers and paper readers fall in this category. For examples. Everyday new properties get listed. For example stationery items. For example users of particular brand of soap for years. air-conditioners and washing machine buyers fall under this category. it’s important to understand the motivation behind buyers and sellers. regular visitors to particular restaurant fall in this category. Brand Switching: Consumers in this category have no emotional attachment either with product category or any brand within it. though not all for the same reasons.Types of Buyers: Sometimes consumer is involved with the product category but may not be necessarily involved with the particular brand or vice versa. and should be considered if you’re in the market to buy or sell a piece of property. though their intentions will differ as well. Will-Sell Sellers . Information Seekers: These buyers are involved more with product category but may not have preferred brand. At the same time. For example. They have low emotional attachment with the product category and tied mainly with their brand. Routine Brand Buyers: These consumers are not highly involved with the product category but may be involved with the particular brand with in that category. house wives know more about kitchen ware but may not know the details of various brands. These variables affect the asking and selling prices for homes. Types of Seller When looking to gauge the real estate market. They are likely to see information to decide a particular brand.

The constant use of the product leads to the satisfaction or dissatisfaction of the consumer. the decision is made to solve a problem of any kind.g. the marketer must lay emphasis on the product/brand image in the consumer’s mind. Must-Sell Sellers A must-sell seller on the other hand is quite the opposite. is important for repeat . There is also a greater likelihood that these types of sellers will accept an offer below the listing price. to find how the cool atmosphere can be provided. e. and will often list their property at or below market prices. This may be the problem of creating a cool atmosphere in your home. so negotiation will be difficult.This group of sellers will list their property for sale quite frequently. after the sales have been effected. This leads to the evaluation of alternatives and a cost benefit-analysis is made to decide which product and brand image will be suitable. These “unmotivated sellers have no sense of urgency as they have no need to sell the property. by an air-conditioner or. The brand which matches the desired image of a target market sells well. The marketing strategy is successful if consumers can see a need which a company’s product can solve and. Consumer Decision Making Process: The decision-making process consists of a series of steps which the consumer undergoes. or to the rejection of the product. offers the best solution to the problem. Position the product according to the customer’s likes and dislikes. Satisfaction of the consumer. For a successful strategy. Sales are important and sales are likely to occur if the initial consumer analysis was correct and matches the consumer decision process. Thereafter the purchase is made and the product is used by the consumer. which leads to repeat purchases. information search is carried out. often keeping it on the market for an extended period of time at an above-market price in the hopes of landing a nice profit. First of all. For this. by a water-cooler. These “motivated sellers” have a strong sense of urgency. and can take care of the problem suitably and adequately.

The need may be activated by internal or external factors.purchase. Marketers also provide relevant information through advertisements.. Need Recognition When a person has an unsatisfied need. Information Search Identified needs can be satisfied only when desired product is known and also easily available. 1. And the person has to search out for relevant information of the product. 2. rather than looking for new ones.g. packaging and sales promotion. neighbors. dealers. Evaluation of Alternatives This is a critical stage in the process of buying. Marketers are expected to provide latest. and window displaying. The given below gives an idea of the above discussion. radio. brand or location. friends and family. but consumer must know which product or brand gives him maximum satisfaction. the buying process begins to satisfy the needs. It is more profitable to retain existing customers. On the basis of need and its urgency. and television provide information. Mass media like news papers. The intensity of the want will indicate the speed with which a person will move to fulfill the want. Different products are available in the market. Consumers can use many sources e. . 3. retailers. Now-a-days internet has become an important and reliable source of information. reliable and adequate information. forms the order of priority. Marketers should provide required information of selling points. Following are important elements in the process of alternatives evaluation .

if the used brand does not yield desired satisfaction. 5. Consumer gets brand preference only when that brand lives up to his expectation. But. capacity. Post. in washing machine consumer considers price. This attitude towards the brand influences a decision as to buy or not to buy. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his customers as well as to attract new customers. situational factors like finance options. falling prices etc. c) Marketers should understand the importance of these factors to consumers of this factor to consumers while manufacturing and marketing their products.a) A product is viewed as a bundle of attributes. This brand preference naturally repeats sales of marketer. For example. In addition to all the above factors.. b) Factors like company. are also considered. . dealer terms.Purchase Behavior This behavior of consumer is more important as for as marketer is concerned. This phenomenon is called cognitive dissonance. distribution network and aftersales service also become critical in evaluation. technology. negative feeling will occur and that will lead to the formation of negative attitude towards brand. 4. A satisfied buyer is a silent advertisement. brand image. Thus the prospective buyer heads towards final selection. quality. country. These attributes or features are used for evaluating products or brands. model and size. Purchase Decision Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers.

Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi. it today has five company-owned manufacturing facilities at Thane. After 59 years of existence. Kolkata and Chennai). Mumbai.COMPANY OVERVIEW OF CADBURY INDIA Cadbury began its operations in 1948 by importing chocolates and then repacking them before distribution in the Indian market. Induri (Pune) and Malanpur (Gwalior). The corporate office is in Mumbai .

Chocolate Confectionery. Some of the key brands are Cadbury Dairy Milk. which has been dominated until now by Salted Bagged Snack Brands. Cadbury has maintained its undisputed leadership over the years. In the Chocolate Confectionery business. it has worked with the Kerala Agriculture University . The pure taste of CDM defines the chocolate taste for the Indian consumer In the Milk Food drinks segment their main product is Bournvita . For over two decades.the leading Malted Food Drink (MFD) in the country. Milk Food Drinks and in the Candy category. It delivers the taste of chocolate in the form of a light snack. and thus heralds the entry of Cadbury India in to the growing bagged Snack Market. A good example of this is the development of Bytes. Eclairs and Celebrations. Cadbury enjoys a value market share of over 70% the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. Bytes is positioned as "The new concept of sweet snacking". Bytes was first launched in South India in 2003. 5 Star. Perk. Crispy wafers filled with coca cream in the form of a bagged snack.Currently Cadbury India operates in three sectors viz. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. Similarly in the medicated candy category Halls is the undisputed leader.

mints. Today.to undertake cocoa research and released clones. It is a part of the Cadbury Schweppes Group. For the purpose of present study a related sample of population was selected on the basis of convenience. hybrids that improve the cocoa yield. namely gums. In collecting requisite data and information regarding the topic selected Survey design: The study is a cross sectional study because the data were collected at a single point of time. Cadbury is poised in its leap towards quantum growth and new categories of business. Research Period: . snacking and gifting.1 Confectionery Company RESEARCH METHODOLOGY The data had been used to cover various aspects like consumption. consumer’s preference and customer’s satisfaction regarding Cadbury and Nestle chocolates. The actual consumers were contacted on the basis of random sampling. world's No. Sample Size and Design: A sample of 100 people was taken on the basis of convenience.

References from Library. which is collected for the purpose of study. dichotomous and offered multiple choices Data Collection: The data. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. is divided into 2 bases: Primary Source: The primary data comprises information survey of “Comparative study of consumer behavior towards Nestle and Cadbury chocolates”. Research Instrument: This work is carried out through self-administered questionnaires.Research work is only carried for 2 or 3 weeks. The technique that I have used is bar technique . Secondary Source: The secondary data was collected from internet. The questions included were open ended. The data has been collected directly from respondent with the help of structured questionnaires.

Other competitors have greater international experience . enabled it to expand into important markets like the US market. Advantage that it is totally focused on chocolate. Weaknesses The company is dependent on the confectionery and beverage market. Nestle have a more diverse product portfolio. unique understanding of consumer in these segments. chewing gum.Cadbury Plc Strengths High financial strength (Sales turnover 1997. possible lack of understanding of the new emerging markets compared to competitors. including Adams 2003. whereas other Competitors e.Cadbury has traditionally been strong in Europe. candy.4%) Strong manufacturing competence. £7971. where profits can be used to invest in other areas of the business and R&D. Recent acquisitions. Successfully grown through its acquisition strategy. . New to the US. established brand name and leader in innovation.4 million and 9.g.

and wise investment in R&D. global sourcing and procurement. India. Cadbury Fuel for Growth and cost efficiency programs seek to bring cost savings by: 1) Moving production to low cost countries.healthier snacks with lower calories need to be developed.Opportunities New markets and Significant opportunities exist to expand into the emerging markets of China. Innovation is key driver. Low-fat.supply chain efficiency. where populations are growing. Russia. . R&D and product launches have led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat. where raw materials and labour is cheaper 2) Reduce internal costs . To respond to changes in consumer tastes and preferences . organic and natural confectionery demand appears strong. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. consumer wealth is increasing and demand for confectionery products is increasing. Opportunities exist to increase share through targeted acquisitions Key to survival within the FMCG market is increasing efficiency and reducing costs.

Nutrition and healthier lifestyles affecting demand for core Cadbury products Questionnaire . particularly for Energy. packaging and sugar.Rising obesity and consumers obsession with calories counting. Global supply chain in low cost locations.possible price wars in developed markets. Aggressive price and promotion activity by competitors .Threats: Worldwide .there is an increasingly demanding cost environment. transport. Competitive pressures from other branded suppliers (national and global). Social changes .

Which age group do you belong to? Below 15 15 to 25 25 to 40 Above 40 2. Which chocolate brand do you normally consume? .Survey for chocolate brands 1.

On what occasions would you gift chocolates? Diwali Raksha Bandhan Birthday Valentine’s Day Anniversary Others .Nestle Cadburys Others Foreign brands 3. If Cadburys. What is your average monthly spending on chocolates? Below 50 50 to 100 100 to 200 Above 200 4. then which is the first brand that comes to your mind? Dairy Milk 5Star Temptation Perk Celebration Any other Cadburys Brand 6. What do u like the most in Cadbury Chocolates? Taste Wide Range Easily Available Any Other Reason 5.

and the features that they look for in a chocolate etc. . The chocolate. 66% people preferred to gift celebrations for many occasions as against 23% who prefer gifting foreign chocolates. Most of the respondents were from the 15-25 and 25-40 age groups. We also observed that Cadburys is facing strong competition from foreign brands. Consumers were asked questions like the chocolate brand that they normally eat. Also the reason why dairy milk was preferred was because of the taste. This could be due to the fact that the respondents of our survey were mostly the well to do population from the IT sector. The chocolate consumers had ranked Cadburys as the best chocolate brand and a few consider Nestle as a good chocolate brand.Suggestion: Results and Analysis of the Survey A survey was carried out by us in order to find out the reach of Cadburys in India. Most of the respondents spent more than 100 rupees on chocolates in a month. Almost 70% people rated Dairy Milk the most consumed chocolate closely followed by 5 star and Perk. We had 47 respondents to our survey. Thus we understood better the chocolate market in India. Cadbury’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands.

your car is getting more difficult to start and is not accelerating well.. for example.??? The second step is information search??hat are some alternative ways of solving the problem?? You might buy a new car.? The third step involves evaluation of alternatives. ride a taxi. you return a product to the store because you did not find it satisfactory). . we have the purchase stage.? In reality. buy a used car. but may be ill-suited for long distances and for rainy days.Cadbury’s Market Reach Information Search and Decision Making Problem Recognition. take your car in for repair.? One model of consumer decision making involves several steps. The first one is problem recognition??ou realize that something is not as it should be. ride the bus.? A skateboard is inexpensive. people may go back and forth between the stages.?? Finally. or ride a skateboard to work.? Perhaps.g. and sometimes a post-purchase stage (e.? For example. a person may resume alternative identification during while evaluating already known alternatives.

? Focusing on the large motor will do less good than portraying a successful person driving the car. wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit. which ultimately improves the consumer?? self-esteem. a consumer may see that a car has a large engine. we can use the Means-End chain. which means that the intruder will not be able to harm the consumer?? family.? .g. leading to a feeling of performance.? Thus.? Consumers engage in both internal and external information search. which enables the user to kill an intruder.? In general. leading to fast acceleration..? In advertising.? A handgun may aim bullets with precision.Consumer involvement will tend to vary dramatically depending on the type of product. a home.? To achieve this goal. a car) or are highly significant in the consumer?? life in some other way (e.g. It is important to consider the consumer?? motivation for buying products. it is important to portray the desired end-states. for example.. which achieves the desired end-state of security. consumer involvement will be higher for products that are very expensive (e. Information search and decision making. a word processing program or acne medication). leading to a feeling of power.

it is very important that marketing programs achieve ??op of mind?? awareness. a car may have a low price and good gas mileage but slow acceleration. product characteristics (how .? If the price is sufficiently inexpensive and gas efficient. thus.. A compensatory decision involves the consumer ??rading off?? good and bad attributes of a product.? Occasionally. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there.Internal search involves the consumer identifying alternatives from his or her memory. read reviews in Consumer Reports. consult several web sites. the consumer must be able to retrieve one?? restaurant from memory before it will be considered. a decision will involve a noncompensatory strategy. the consumer may ask friends?? opinions. and visit several dealerships.? For example. other good features such as taste and low calories cannot overcome this one ??on-negotiable?? attribute.? For example.g. firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need??.? For high involvement products. consumers are more likely to use an external search.? Before buying a car. for example. and how great are differences between brands expected to be?). web sites.? For certain low involvement products. through brochures.? Thus. few people will search the Yellow Pages for fast food restaurants.? For example. the consumer may then select it over a car with better acceleration that costs more and uses more gas. a parent may reject all soft drinks that contain artificial sweeteners.?? Here. or news coverage.

generally. while others are more convenience oriented. a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn.important is this product?? How complex is the product?? How obvious are indications of quality?). they will avoid restaurants they have found to be crowded and will settle on . a person may buy an item which is currently on sale..? In some cases. or one that he or she remembers that is needed only once inside the store. consumer characteristics (how interested is a consumer. the consumer may pay more attention to car ads than when this is not in the horizon. many marketers offer a money back guarantee. in analyzing product characteristics and making the best possible deal?).? For example.? For example.g.? For example. when looking for a new car.? Perception influences decisions. A number of factors involve consumer choices.? Thus.? Selective perception occurs when a person is paying attention only to information of interest.? Some consumers are put off by perceived risk. can taste the difference between generic and name brand foods while many cannot.? Personality impacts decisions. and some are more receptive to stimulation and excitement in trying new stores. Two interesting issues in decisions are:   Variety seeking (where consumers seek to try new brands not because these brands are expected to be ??etter?? in any way.? Consumers will tend to change their behavior through learning??.? Alternatively.? Some consumers are also more motivated to comparison shop for the best prices. and situational characteristics (as previously discussed).? Some like variety more than others.?? and ??mpulse?? purchases??nplanned buys. This represents a somewhat ??uzzy?? group. but rather because the consumer wants a ??hange of pace. consumers will be more motivated. for example.? Some people. one may be more careful choosing a gift for an inlaw than when buying the same thing for one self.

Then we have one of the scenarios: . many couples undergo divorce. Families and Family Decision Making The Family Life Cycle. Individuals and families tend to go through a "life cycle:" The simple life cycle goes from For purposes of this discussion. For example.. of course.brands that best meet their tastes. In real life. this situation is. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce.? We will consider the issue of lifestyle under segmentation.? Consumers differ in the values they hold (e. a bit more complicated. some people are more committed to recycling than others who will not want to go through the hassle). a "couple" may either be married or merely involve living together.g.

the non-custodial parent (usually the father) will not pay the required child support. or become involved in other non-marital relationships. we may see Another variation involves Here. the single parent who assumes responsibility for one or more children may not form a relationship with the other parent of the child. Divorce usually entails a significant change in the relative wealth of spouses. some non-custodial parents will be called on to pay a large part of their income in child support. On the other hand. divorce often results in a large demand for:   Low cost furniture and household items Time-saving goods and services Divorced parents frequently remarry. This is particularly a problem when the noncustodial parent remarries and has additional children in the second (or subsequent marriages). thus.Single parenthood can result either from divorce or from the death of one parent. and even if he or she does. Integrating all the possibilities discussed. we get the following depiction of the Family Life Cycle: . in some cases. In some cases. that still may not leave the custodial parent and children as well off as they were during the marriage. In any event.

Unfortunately. subject to significant exceptions:   As a person gets older. Note that although a single person may have a lower income than a married couple.Generally. he or she tends to advance in his or her career and tends to get greater income (exceptions: maternity leave. . These individuals often have a great deal of power because they may selectively pass on information that favors their chosen alternatives. obligations also tend to increase with time (at least until one’s mortgage has been paid off). Some individuals are information gatherers/holders. The decision maker(s) have the power to determine issues such as:  Whether to buy. retirement). Children and paying for one’s house are two of the greatest expenses. Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. there are two main themes in the Family Life Cycle. divorce. the single may be able to buy more discretionary items. Family Decision Making. but they may make their wishes known by asking for specific products or causing embarrassing situations if their demands are not met. Influencers do not ultimately have the power decide between alternatives. who seek out information about products of relevance.

Conflicting pressures are especially likely in families with children and/or when only one spouse works outside the home. The purchaser may have to make a substitution if the desired brand is not in stock. The situation becomes even more complex when more parties—such as children or other relatives—are involved. this introduces some problems since the purchaser can be targeted by point-of-purchase (POP) marketing efforts that cannot be aimed at the decision maker. For example. that the role of the decision maker is separate from that of the purchaser. and that there is frequently no "objective" way to arbitrate differences. Note. the other may value spending now (on private schools and computer equipment) to help prepare the children for the future. One spouse may believe that it is important to save for the children’s future. however. the wife says that her husband can take an expensive course in gourmet cooking if she can buy a new pickup truck. The reality is that few families are wealthy enough to avoid a strong tension between demands on the family’s resources. One is bargaining—one member will give up something in return for someone else. Which brand to buy. Also note that the distinction between the purchaser and decision maker may be somewhat blurred:    The decision maker may specify what kind of product to buy. a child may promise to walk it every day if he or she can have a hippopotamus.    Which product to buy (pick-up or passenger car?). Another strategy is . Alternatively. Where to buy it. Some family members may resort to various strategies to get their way. and When to buy. but not which brand. The purchaser may disregard instructions (by error or deliberately). Note that many decisions inherently come down to values. It should be noted that family decisions are often subject to a great deal of conflict. From the point of view of the marketer. Who is right? There is no clear answer here.

its potential is limited by legitimate differences in values illustrated above. argue that a new TV will help the children see educational TV when it is really mostly wanted to see sports programming." the mother of the children.reasoning—trying to get the other person(s) to accept one’s view through logical argumentation. Various manipulative strategies may also be used. Note that even when this is done with a sincere intent.. a man cries if his wife will not let him buy a new rap album).g.. Emotion involves making an emotional display to get one’s way (e. Authority involves asserting one’s "right" to make a decision (as the "man of the house. or argue that all "decent families make a contribution to the church"). Also note that individuals may simply try to "wear down" the other party by endless talking in the guise of reasoning (this is a case of negative reinforcement as we will see subsequently). One is impression management. or the one who makes the most money). where one tries to make one’s side look good (e.g. .

and strong growth in Europe and Asia providing diverse rev streams.a follower Threats Opportunities         Restructuring initiatives Growing global oral hygiene market Tapping Personal Care in Asian markets like India Hispanic population in the US Competitive landscape from other CPGs Private label growth Increasing commodity prices Increasing number of Competitors .shareholder friendly Free Cash Flow-to-Sales of 15% attracting investors Market share of 45% in US.Strengths     Strong bottom line. dominance in LA. Strong brand image Weaknesses    Product recalls Highly leveraged Low on Innovation.