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CONSUMER BEHAVIOUR

SUBMITTED TO, Mr. ANAJI SHARMA, ASSOCIATE PROFFESOR MASTER OF FASHION MANAGEMENT, NIFT-HYDERABAD

SUBMITTED BY, SADHANA YADAV MFM-2ND SEMESTER, NIFT-HYDERABAD

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TABLE OF CONTENTS

SL. NO

TOPIC

PAGE NO.

1.

Introduction

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2.

Background Study

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3.

Research Methodology

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4.

Nature and Scope

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5.

Results obtained

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6.

Analysis of the Results

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7.

Findings and Recommendations

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Appendix

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8.

References

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An analysis was conducted with a survey was distributed to 50 consumers at random which has helped in gathering information on existing reasons why they would prefer any product based on the Dove brand‘s product line. Dove is the biggest Home and personal care brand by the leading multilocal multinational company. Thus. In the year 2011 in India the brand Dove featured in the list of top 50 brands in India according to the ―Brand Trust Report‖.INTRODUCTION This report focuses on one of the most commonly used and known personal care product line in the world. Dove remained to be on top of the market. Dove by Unilever. Consequently. The accomplishment of Dove has largely been built on Unilever‘s ability to target the right consumers by offering quality and consumer-friendly products.5 billion Euros brand. Dove became a success story shortly after its launch. Dove is now a 2. Having been introduced for the first time as a skin-cleansing product. With the marketing leverage and established brand name of Unilever. Dove has a long range of brands including soaps. body washes and hair care shampoos and conditioners. Today. Unilever (HUL in India). Dove also offers different countries with Dove products that are unique to their climate. Unilever Corporation has evolved into one of the foremost transnational companies. 3 . despite the intense competition provided for by companies such as Procter and Gamble and Colgate-Palmolive. Responding to new competitive conditions in its business environment. culture and skin texture. This research report aims to examine the brand loyalty of Dove.

Whatever the reason. It might taste. or fit better than other brands for that person. One of the most important things a company can do to gain a customer‘s trust is to provide a great initial purchasing experience. Be proactive and go out of your way to make the customer happy. A company that makes a less than impressive impression on a new customer has a much tougher time getting that customer to buy again. Most people will know something of a given brand. The primary thing that a brand name does for a customer is establish a reputation. work. these customers are more inclined to purchase with that brand to which they are loyal than with others. may look down on a store that doesn‘t carry the favored brand. it‘s important to have quality products and offer top notch service after the sale. This will lay the foundation for a customer loyal to your brand. The easiest way to gain a customer‘s distrust is to be disinterested in helping a customer after a problem has arisen. The more positive reinforcement that is available for a brand. Many customers are influenced by price and have an innate distrust for less expensive products. and they were satisfied. loyal customer base. good experiences should far outnumber bad ones. Maybe the first product of a type they ever tried was of that brand.BACKGROUND STUDY Customers have a number of reasons to be loyal to a brand. Assuming your quality control is at an acceptable level. that likelihood declines even further. To build a happy. In the case of a negative experience. from word of mouth. or even by advertisement. 4 . feel. the greater is the influence on customers. Even those customers who favor a single brand but are willing to purchase outside. either from experience.

CONCEPT OF BRAND PERCEPTION LINKED WITH CUSTOMER LOYALTY Brand loyalty is more than simple repurchasing. such customers may be described as being ‗brand loyal‘. 5 . a lack of viable alternatives. buy longer and tell more people about the product or supplier. and can bring new customers to the firm. This type of long-term customer loyalty can only be created by making the customers feel that they are number one priority. Thus customer loyalty is when a brand receives the ultimate reward of its efforts in interacting with its customer. For example. When a loyal customer has repetitive requirement of the same product. Customers may repurchase a brand due to situational constraints (such as vendor lock-in). Every brand wants to create and retain a loyal customer who engages in continued profitable business with it. The loyalty may be product specific or it may be company specific. they may cost less to serve. Such loyal customers tend to spend more money buy more. however. True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices. or out of convenience. if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. Customer Loyalty is the measure of success of the brand in retaining a long term relationship with the customer. Customer loyalty leads the customer to voluntarily choose a particular product against another for his need. loyalty to the brand — in terms of consumer usage — is a key factor. Such loyalty is referred to as "spurious loyalty". Loyalty also means that customer is sticking to the brand on certain grounds though he may be having other options also. From the point of view of many marketers.

irrespective of the brands with which they are doing business. 6 . Measuring customer loyalty and developing a retention strategy are of great importance to an organization‘s success. Loyal customers are predisposed to stay with one product or brand. Loyalty is demonstrated by the actions of the customer. Customer loyalty should have a direct connection to a company‘s financial results. Customer satisfaction is the basic entry point for a good business to start with. But it doesn‘t mean that the customer satisfaction level can measure his loyalty. Therefore such customer retention programs should include regular communication with customers. resisting competitive offers and also recommend the supplier to others. On the other hand a customer may not express satisfaction but wants to remain loyal to the brand due to some reasons which keeps him benefited from that brand. On the other hand. They simply prefer long-term relationships with him. the customers who are targeted by a retention program demonstrate higher loyalty to a business. and provide them opportunities to remain active and choosing to do business with the supplier. A customer can be very satisfied with the deal and still not be loyal. as the result of the strategies and tactics it employs to increase its customers‘ loyalty. Customer loyalty is not customer satisfaction.Some customers are inherently predictable and loyal. loyalty should not be considered as just an attitude. True. The brand should be able to plan a clear and direct economic benefit of some kind.

7 . Brand loyalty. thereby causing repetitive same brand or same brand-set purchasing. 2. in marketing.loyal to two or three brands. consists of a consumers‘ commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service. Split Loyal . "The degree to which a consumer consistently purchases the same brand within a product class" (consumer behavior definition). 1999 cited in Pohl. or other positive behaviors such as word of mouth advocacy. Philip Kotler.who buy the brand all the time. Shifting Loyal .with no loyalty (possibly 'deal-prone'. despite situational influences and marketing efforts having the potential to cause switching behavior. constantly looking for bargains or 'vanity prone'. 3. Switchers . looking for something different).DEFINING BRAND LOYALTY The American Marketing Association defines brand loyalty as: 1. "The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category" (sales promotion definition).moving from one brand to another. defines four patterns of (brand loyal) behavior: 1. 2. Hard-core Loyal . again. 2006) The definition provided by Oliver lays stress on the situational influences and marketing efforts which cause customers to switch over. A loyal customer is one who is not influenced by these factors and makes repeated purchases from the same seller or brand. ―A deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future. Brand loyalty has been defined by Oliver (1997) as. 4.‖ (Oliver.

referring the brand to others and so on. Gone are the days when customers were simple and attracting them to the firm was child‘s play. It is mainly stated by repeat purchase. A customer who is loyal to a brand has a typical mind set. Reducing customer loss and achieving new customer‘s trust and loyalty can dramatically improve business growth. However it is not the end of the story. so achieving customer loyalty is extremely difficult. A loyal customer is always willing to pay higher price for his/her preferred brand than other brands. It is very difficult to survive in today‘s competitive world. He/she also recommends this brand to others after realizing that the brand offers value for money. Brand Loyalty can be reflected in various positive behavior of the customer such as word of mouth advocacy. The firms face double challenges of attracting the customers as well as retaining them. When a customer is committed to a brand he/she keeps coming back to the brand to buy a product or a service. 8 .IMPORTANCE OF BRAND LOYALTY The increasing competition has forced every seller in the market to reconsider their views on customers. Thus the importance of brand loyalty is immense since it is brand loyalty that determines the sale of a product or a service. Brand Loyalty means a consumer‘s commitment to a brand. Today the customers are to be treated like kings and must be provided with all that they expect the firm to provide. It implies that the customer not only looks for his/her own benefit but is willing to think about the brand‘s interest. The competition in the marketplace offers the consumers with an opportunity to select from wide variety of similar offerings. Every successful business depends on Brand Loyalty as it is the ultimate goal a company aims at. In order to do so it is very crucial not to lose customers.

safe and of good quality. Developing loyalty among new customers and retaining it among existing customers are equally important. There is a wide range of brands of Dove including soap bars. Once brand loyalty is established one does not need to spend much on advertising and marketing. A number of things determine brand loyalty. Customers prefer to buy products that are familiar. Among all those brands by Unilever. deodorants. face washes. Therefore it is necessary that the customers have a good impression about the brand as it is the foundation of their buying habits. 9 . Brand loyalty ultimately leads to cost cutting and high profit margin as a loyal customer is indifferent to competitive promotions. understanding customer‘s need to employing effective marketing strategy. moisturizing creams etc. that are used in 1 in 3 houses all over the world.Moreover when customers are loyal to a brand they are less sensitive to price change and willingly pay higher price to get the unique value that your brand offers. shampoos. A customer develops brand loyalty only when they get quality product or service at the right price. Dove is one of the most famous brands in the consumer industry and they use Dove daily for their skincare and hair care. A number of things can influence brand loyalty starting from designing a new product to writing its catch line. the brands introduced by Unilever are attaining the leading position in the International markets. When the customers buy a product they make a trial purchase. INTRODUCTION TO THE BRAND “DOVE” Unilever was established in 1930 and since that time. It is the responsibility of the marketer to maintain the quality at a reasonable price. If they are satisfied with the product they will get back to buying that product again. conditioners. Brand loyalty occurs as the customer perceives the brand in a positive manner.

billboards. Brazil. This marketing by Unilever has led Dove brands to attain the leading position in the market by the effective strategies including market research. India. preferences. Ireland. announcements on radio. business in collaboration with any other renowned company. being the consumers‘ best choice. Thailand. hair care. Products include: antiperspirants/deodorants. concentration of a small number of products. distribution channels. However. Turkey and United States. Dove products are manufactured in Argentina. varieties in brands. and free gift offers etc. through contests. Unilever spends 2 billion Euros every year on marketing whereas 1 billion Euros for the research and development purpose. 1992). The goals of Dove brands are to comply with the needs of the consumers all over the world and to work together in effective manner to adopt the advanced ideas while working out on the existing ones. Germany. Dove is a personal care brand owned by Unilever. workshops and supermarkets. lotions/moisturizers. substantial country-to-country differences in consumer tastes. the color of which often varies. as well as market structures. The products are sold in more than 35 countries and are offered for both women and men. knowledgeable website. body washes. Canada. The Dove trademark and brand name is currently owned by Unilever. innovations. Australia.Unilever‘s brand name used for many years on toilet soap became so successful its name was extended to other products. marketing according to demographics. and facial care products. commercials on television. and practices. and local regulations have motivated top management to allow extensive operating independence of Unilever's subsidiaries (Maljers. Dove is enjoying the leading position in the market with the largest market shares in 75 countries and is a 2.5 billion Euros brand. Netherlands. beauty bars. Dove's logo is a silhouette profile of the brand's namesake bird. free help lines. Moreover. 10 .

Hence the success of Dove brands is attributed to just one thing that Unilever goes extra miles to give the loyal consumers high-quality. always reinforced the need for managerial autonomy at the subsidiary level. Vitamin E and nutrients used in Dove brands that also helps for the aged people to keep their skin protected from wrinkles. competitive products and services The products under the brand Dove can be listed under the following heads Shampoos Conditioners Dove hair fall rescue Dove daily shine Dove dryness care Dove dandruff care Hair Treatments Heat defense mist Intensive repair overnight mask Intensive repair regenerating mask Body lotions Essential nourishment Go fresh nourishment Indulgent nourishment Bar and body wash Crème Fresh moisture Gentle exfoliating 11 and Dove intense repair . conditioners. its best quality and curative advantages that keep the skin moist and beautiful and hair healthy and shiny by the advanced formulae of ¼ moisturizing cream. vitamin B5. The major competitors of Dove brands are Palmolive by Colgate-Palmolive and Ivory and Oil of Olay by P&G. until recently. but Dove is still at the top because of the consumers‘ confidence in it.Moreover. rising trade barriers have.

The target population for evaluating the perception towards Dove as a brand would include people possessing all of the following attributes:   Has used any product of Dove at least once Falls in the age group of 16 to 50 yrs. Selection of Sampling Procedure Since no sampling frame exists. identifying the appropriate sampling technique. preparing the survey and administering the survey to the sample population. Administering the Survey The survey is primary survey. Defining the Target Population People who have used Dove‘s products and are most likely to have a perception about them. Determining Sample Size The sample size for conducting this survey has been decided on ad – hoc basis and a large sample size of 40 respondents has been chosen. thus convenience sampling technique would be used to conduct the survey using a structured questionnaire. conducted by administering a structured. selecting a sample. 12 . which could provide information about the probable respondents. non – disguised questionnaire.Antiperspirants Original Silk dry Clear Touch anti white marks RESEARCH METHODOLOGY The primary research methodology involves identifying the population.

The report discusses what drives consumers to be loyal to Dove as a brand or what makes them choose other brands. analyzed and interpreted in a systematic and objective fashion to understand what reasons influence the loyalty of the consumers being studied towards the brand. 13 . NATURE AND SCOPE OF THE RESEARCH This report focuses on the primary research conducted to understand the customers‘ perception of Dove as a brand.Time frame The survey will be conducted in the city of Hyderabad during the month of May 2012. The consumers would be asked to fill a questionnaire that would analyze: How do they feel about products of Dove brand? Why do they purchase Dove products? How do they compare Dove brands with the competitors in the market? What would drive them to discontinue using Dove brand and switch to competitors? The gathered data is then processed.

RESULTS OBTAINED 1. Consumer rating of Dove brand in terms of Value for money: 18 32 % 16 28 % Number of responses 14 12 20 % 10 8 12 % 6 8% 4 2 0 Very Good Good Neutral Responses Bad Very Bad 14 . Consumer rating of Dove brand in terms of quality: 25 40 % 20 Number of responses 30 % 15 20 % 10 5 8% 2% 0 Very Good Good Neutral Responses Bad Very Bad 2.

Agreement/Disagreement with following statements: a) Always had a good impression about Dove 16 14 30 % 30 % Number of responses 24 % 12 10 16 % 8 6 4 2 0% 0 Strongly Agree Agree Neutral Disagree Strongly Disagree Responses 15 . Difference Between The Quality Of The Brand And Other Brands: 30 50 % 25 Number of responses 40 % 20 15 10 10 % 5 0 Yes No Responses Can't Say 4.3.

b) Friends and family highly value Dove brand: 30 50 % 25 Number of responses 20 15 20 % 10 10 % 5 0% 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 20 % Responses c) Believe that Dove products are better than its competitors: 30 25 48 % Number of responses 20 15 10 5 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 18 % 12 % 14 % 8% Responses 16 .

d) Dove suits them: Brand Suits Them 45 80 % 40 Number of responses 35 30 25 20 15 10 10 % 5 0% 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 0% 10 % Responses e) Dove as a brand is trustworthy and credible: 40 70 % 35 Number of responses 30 25 20 15 20 % 10 5 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 6% 4% 0% Responses 17 .

f) Spread positive word about dove: 18 32 % 16 30 % 26 % 14 12 10 8 12 % 6 4 2 0% 0 Strongly Agree Agree Neutral Disagree Strongly Disagree Number of responses Responses g) Consider themselves loyal to dove: 16 14 30 % 30 % Number of responses 12 20 % 10 8 6 8% 4 2 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 2% Responses 18 .

Likelihood of repurchase: 20 18 32 % 16 38 % Number of responses 14 12 10 8 6 22 % A= definitely repurchase dove. D= not repurchase dove 8% 4 2 0 A B C D Responses 19 .5. C= neutral towards repurchase decision. B=might repurchase dove. Frequency of purchase during past 6 months period: 14 24 % 12 Number of responses 20 % 10 16 % 8 6 4 2 0 Once Twice Thrice More than 4 times not purchased 14 % 6% Responses 6.

B=might purchase in emergencies.7. Likelihood of purchase of a different brand in stock out situations: 30 25 48 % A=not purchase another brand. Likelihood of repurchase in case of a lower priced similar product by a competitor: 20 . C=look for other similar brand D=purchase different brand Number of responses 20 15 10 12 % 5 0 A B C 28 % 12 % D Responses 8. Likelihood of repurchase in case of price increase: 30 50 % 25 A=only purchase dove. B=purchase dove if price increase is marginal C=evaluate other products also D=not purchase dove Number of responses 20 30 % 15 22 % 10 5 8% 0 A B C D Responses 9.

25 46 % A=not discontinue dove. C=switch to lower priced product 26 % 28 % 20 Number of responses 15 10 5 0 A B Responses C 21 . B=might try lower priced product.

the brand is trustworthy and credible. These results insinuate that the users as well as peers value the brand highly they trust the brand and are readily willing to recommend it to other people. They think that the brand suits them and no other brand available in the market is able to satisfy them then way Dove does. On the other hand people don‘t feel that Dove products are any different from their competitors. However. there is a stock out situation or even if a competitors lowers his price or comes up with similar lower priced products people are loyal enough to stick to the brand. this can mean that people use the products just for the fact that it satisfies their needs and is a good value for money but incase some competitor launches products that is perceived better than Dove products it is possible that the customers might switch to the competitors products. Looking at the results of question number four we can see that more than 50% percent of the people feel that their family members also value the brand. from looking at the responses of question number 6 through 9 we can say that a major chunk of the people surveyed regularly buy Dove products and other things being equal people are most likely to repurchase the brand even if the brand increases price. the brand suits them. This number reinforces the results of question number 1 in which people rate Dove positive in terms of quality and therefore we can say that as far as quality is concerned Dove as a brand has an affirmative image in the minds of its users . they will spread positive word about the brand. Also.ANALYSIS OF THE RESULTS The survey was undertaken on customers of Dove products and 60% of the respondents rated Dove positive in terms of quality which indicates that a majority of the consumer base uses Dove products because of the quality it provides to them. In addition to this a good 48% people think that it is a good value for money brand and the amount that they pay for the products gives them the kind of satisfaction they require out the products they buy. when consumers were asked about 22 . Also 50% of the people surveyed believe that the products are different in terms of quality as compared to other brands providing similar kind of products.

These people are very price sensitive and are using dove just because it suits them and is easy on their pocket. Not loyal: This is category which is not loyal at all and is more than ready to switch to other brands in case of a fall in the price of other brands. Overall the brand enjoys a fairly good reputation in the minds of the customers and the customers feel that it‘s a value for money brand that gives them great benefits and enough satisfaction. For these people the brand does not need to bother much because they are price sensitive and will not stick to the brand in any way except lowering the price. In Dove‘s case this percentage is close to 30 percent. In Dove‘s case this percentage is a 26 percent. The percentage of this category for Dove is a whopping 28%.whether Dove products were better than its competitors only a small percentage of 18% agreed to it. The survey concludes that Dove has a strong 23 . But if they find that the second product is not living upto there expectations than they might switch back to the first product again. FINDINGS AND RECOMMENDATIONS Similar to any other brand‘s customers Dove‘s customers also fall in various consumer categories. which are explained below along with the percentage in each category: Hardcore loyal: These are those customers which are satisfied with the brand will not switch to other brands in any situation. This is a segment that Dove really needs to work upon and turn them into hardcore loyal. this means although people are highly satisfied with the quality of products they still don‘t find other brands inferior. Switching loyal: This is that category in which people are not emotionally attached to the product and if they feel that there is a brand which is better in terms of quality they will switch to the other brand in no time.

References http://ivythesis.com/term_paper_topics/2011/06/industry-report-dove-byunilever.loyal customer base but at the same time it also has a segment of customers which are price sensitive and not loyal in the true sense.html 24 .typepad. therefore it should make constant efforts to retain the customers it already has and make efforts to turn the not so loyal switchers into hardcore loyal.

You are kindly requested to fill the following survey form. Have you used Dove products? o Yes o No (if no please exit the survey. Hyderabad.SURVEY Declaration: This survey is being conducted by the students of National Institute of Fashion Technology. as a part of their project survey. thanks for participating) Rate Dove as a brand in terms of quality Very good Good Neutral Bad Very Bad Rate dove as a brand in terms of value for money Very Good Good Neutral Bad Very Bad Do you perceive a difference between the quality of Dove‘s products and products of other brands? o o o Yes No Can‘t say Thinking of Dove brand to what degree do you agree or disagree with the following statements? Statement I have always had a good impression about this brand My friends and family highly value this brand I believe the products of this brand are better than its competitors The brand suits me The brand is trustworthy and credible I say positive things about this brand to others 25 Strongly Agree Agree Neutral Disagree Strongly Disagree . The information given by you will be used solely for academic purposes only and will not be disclosed anyhow.

Graduate ○Student ○ Service Personnel ○ Own business ○ Housewife ○ below Rs.1.1. I purchase only Dove I might consider purchasing a different brand in emergencies I will browse and look for brands offering similar products I will certainly purchase a different brand if I do not find dove o o o o o o o o How likely are you to repurchase the product if price increases? o o o o I I I I will will will will purchase Dove even if the price increases purchase Dove purchase Dove only if the price increase is marginal evaluate other products also if the price increases for Dove not purchase Dove incase the price increases How likely are you to repurchase if a similar competitor has a price slightly lower? o o o I am not likely to discontinue Dove in favor of a lower priced product I might try out the lower priced product instead of Dove I will switch to the lower priced product instead of Dove Demographic Questions: Your Gender Your Age Educational Qualifications Occupation Income of Family (Per Annum) ○Male ○Female ○ 21 to 25 yrs ○ 18 to 20 yrs.I consider myself loyal to this brand How many times have you purchased Dove products in the past 6 months? o o o o o Once Twice Thrice More than four times I have not purchased it How likely are you to repurchase dove products? I will definitely repurchase Dove I might repurchase Dove I am neutral towards the repurchase decision I will not repurchase dove How likely are you to purchase a different brand in case of stock out situations? I will not purchase another brand. ○ Undergraduate ○ Graduate ○ Post.5lakh ○ Rs.5lakh to 3lakh 26 .

5lakh 27 .○ Rs.3.1lakh to 5lakh ○ above Rs.