Review of Literature

Consumer Behaviour: Consumer behavior is defined in a variety of ways such as “the dynamic interaction of affect and cognition, behavior and environmental events by which human beings conduct the exchange aspects of their lives.” by the American Marketing Association. (2008). In a simpler form, consumer behavior can be explained as the actions of consumers and the different approaches a person may take to decide what to buy and the decision making process. The decision making process can be effected by an assortment of factors all relevant to a person or persons perspective. Determining that behavior can be complex and marketers need to use research techniques to understand the consumer. Understanding the pre-purchase issues, purchase issues and post purchase issues from a marketing perspective raises many questions and is an in-depth process. “The basic marketing concept hold‟s that firms exist to satisfy consumers‟ needs.” Consumer behavior is when consumers are studied to see what they are buying, where they are buying and how much they are spending on these products. Marketers need to know this information in order to create an effective campaign for a particular product or service. Marketers want to satisfy the consumers‟ needs and in order to do so they must first understand how to do it (Perner, 1999). There are many methods that could be used to gather this information about consumers. There are direct mail surveys, focus groups, direct mail comment cards, individual interviews, and Internet surveys. Some methods are considered more effective than others but all methods are used. Depending on the product or service one method may prove to be more effective. Consumers are looking for the best deal on the things that they want to buy and are expecting companies to market products to show why their product should be bought and where that product can be found. Consumers are the most important part of the campaign because it is centered on the consumer‟s wants and needs. Consumers are the one that are buying products and without them, the product or service will have a short life cycle as well as the company that put it out.


Evan and Berman in their book “Marketing” 1992 said convenience stores are food oriented retailers that appeal to busy customer by reducing the time spent shopping. has said that giving top priority to customer loyalty is extremely important. they save customer time but they also charge very high prices. do we optimize our profitability? Great success comes from a marketing strategy based primarily on understanding customer economic and only secondary on customer loyalty. If a fast food company has an aggressive advertising campaign. 1999). it can result in health problems. The same enthusiasm about serving customer well is shared among owners. Because time utility is the major customer service on which these stores complete. what time to air certain advertisements. “Journal on customer satisfaction and customer behavior” (1992) claimed that customer satisfaction is not only affected by customer services but also by price and 2 . manager and employees at all levels within successful retail organization of all sizes.Marketers study the impact of consumer behavior on society as far as health and the economy (Perner. high traffic areas. Because there stores are easier to get to and get out of than traditional food stores. Cronin & Taylor. Laura Zinn in her book “retailing who will survive?” 1990 shows that retailing has evolved into much a life cycle as it has into a profession. logical stores design that speed product selection and check out also are must. There are so many retail businesses that do not just manage their business they live them. Retailing has started of with no fixed or defined pattern of doing business during the early stages people use to up business and self on the business and sell on the basis of surviving and there were no need for high marking strategies or store layouts and designs. By re – arranging our offer – bundle of economic and ergonomic factors and skimping it in favour of our most loyal customer. Woolf in his book “Customer Specific Marketing” in the year 1992. Granting easy credit can have a negative impact on the economy. Studying consumer behavior helps make decisions on things like. they must be easily accessible. and what price range to keep the product in. Well organized. where to place certain ad. Brian P.

discount stores and hypermarkets.C. variety stores. It has the capability to obtain additional sales from existing customer and to generate new sales from positive word of mouth. They have said that under small store retailing they are convenience store. They further state that merchandise refers to quality and price of the products carried by the store. P. Sinha and S. Customer satisfaction can be achieved by improving service quality. Saboo in their book “Services Marketing” in the year 1994. customer service includes the level of assistance provided by the retailer. customer satisfaction and customer behavior. Inn Chaston in his book “Customer Focused Marketing” in the year 1993 has said that. layout and atmosphere. Similarly. “Journal on improving service quality” (1992). MCGoldrick& Ho. several researches have been done the value for money and the value attached to it by customers. Services provide the area to retain the customer. said that customer service is no longer seen as mere activity but a major marketing tool customer service is now „customer care‟. The function of marketing is to obtain customer however no company can be successful and profitable on the basis of online sales. the trading format consists of elements like location. satisfaction occurs when customers expectation are equal to the perception formed during all the processes associated with the selection purchase and consumption of the desired product. 3 . These studies also point out the difference between price and quality and how they influence perceived value. the speed of service and friendliness of staff.convenience. Samson and little in their book “retail Merchandizing” 1993 said retailing is classified into two broad heading and they are (1) Small – Store Retailing and (2) Large – Scale Retailing. Lastly. Additionally. specialty stores and service business and under the large store retailing the type of retailing outlets classified are departmental stores.K. supermarkets.

knowledgeable employees. accuracy of billing. we concentrate on nine dimensions of customer satisfaction which are Location. hills and woodruff in their book “Marketing Management” in the year 1996 has said that. the nine dimensions also consist of 21 elements which are used in the collection of data and analysis of results. good value and quick service. The product mix in this store is pretty much narrow. “Journal on dimensions of customer satisfaction” (1995) is affected by many factors which include friendly employees. Staff and Personnel service. Furthermore. Service Quality. factory outlets store offer medium to high quality product at deep discounts. Pre and post sales services are very important in customer satisfaction. Keegan. Moriarty and Duncan “Journal on merchandise lines” (1996) have said that because specially stores carry highly defined merchandise lines. with usually deep assortments within product categories. process. Carven. competitive pricing. Value for money. product quality. Pre sales services are very important in customer satisfaction. service quality. Levy and Weitz in their book “Retailing Management” 1995 said like off price retailers. courteous employees. For purposes of this study. Pre sales services include prompt quotations. Additional Services. easy 4 . present them to the clerks at centralized check outs and pick up the merchandize as in share delivery station.Hokanson. they often are referred to as “limited line” or a “single line” retailer. The location reduces the risk of having to compete with traditional retailers that carry the same good at full price. and helpful employees. A majority of these stores are manufacturer owned outlets establish to sell those goods that cannot be sold through traditional retailers. operating cost must be hold minimum. The suburban and rural areas offer large tracts of land which are less expensive to buy and maintain than urban areas. They also hold a minimum level of customer service and usually fill out their own order comes. Reliability. Churchill and Peters in their book “Marketing” 1995 said that complete on price. Facilities.

content. reliable timely. replacement guarantee. product warranties. Customer service level refers to the extent the customer satisfaction is being performed. dependability and convenience. test facilities etc. service is not as mushy and touchy feeling as it has been made out to be. Pramod Batra and Deepak Mahendra in their book “Management Ideas in Action” in the year 1996. It 5 . Lytte in his book “What do your Customer really wants?” in the year 1997 has started that customer service is more than a phone line to answer customer‟s question and complaints. technical advice. but this is not possible because there are several factors affecting customer service namely time. has said that good customer service is more effective than even the most expensive advertising.H. John F. contrary to what most people think. It requires considerable handwork from the management to understand its implication. credit. They also said that customer should be given a Unique Service Advantage. Sudarshan Kapoor. A 100% customer service level means that all customers are fully satisfied with the product availability. retention and profitability. Woodruff & Slater “Journal on customer value” (1997) suggest that there is need for companies to adjust their strategies towards delivering superior customer value as it is a strong driver of customer satisfaction. in his book “Marketing management” in the year 1997. Stamats D. He also says that. so that they will become your repeat customer and bring in more customers. the level of customer service should be measured. delivery. in his book “Total Quality Service: Principles. Practices and Implementation” in the year 1997 has said that customer service and satisfaction can be served if proper data is available. said that. availability.

if used erroneously. which generally involves characteristics associated with the market itself rather than the individual consumers who comprise any given market. it seems apparent that any chances for success in non-domestic operations will be greatly improved if attention is directed at consumer. discussing the effects of macro segmentation. The ultimate goal of a service provider is to retain customers. In fact. While a service provider can act locally. or the grouping of national markets. rather than country characteristics. I will explore how the seriousness of intercultural service failures can be reduced if companies embrace recovery strategies. it tends to be a little more difficult and expensive. Winsted. it can cripple the most promising of deals. Finally. one word doesn‟t fit for all cultures. In fact. which are well 6 . it found that consumers in Japan and America have different expectations of service encounters. restaurants are a logical starting point for researching issues surrounding intercultural service failures. beginning with the first and most important: “It is no easier to build a given volume of profitable business in a foreign market than it is to do so in the domestic market. “Journal on service provider” (1997) Consumer travel and multinational service corporations have increased the opportunity for service failures where consumers from one culture experience service problems in another cultural more than solving problem after the purchase is made. Just as one size doesn‟t fit all in global marketing. the influx of non-locals can upset such a strategy. This can lead to a clear mismatch between expectations and experiences. “Journal on effects of macro segmentation”1997 This paper then. With eating being equally required of all travelers. will explore global consumer tendencies. Customer service is relationship building with customer. Choi & Rajan. For example. Given that the objective of marketing activities is to facilitate exchange. which is less costly than attracting new customers. I will also discuss the failures of a standardized international marketing strategy in individual countries and the seven postulations put forth by which establish a frame of reference for global and international marketing discussions.” Disastrous and sometimes amusing international marketing mistakes caused by lack of proper linguistic and cultural knowledge and sensitivity will also be cited.

in his book “Management” in the year 1997. taking necessary action is another 7% and 3% is following up with him to ensure satisfaction. 12 percent in the work place and 8 percent over the phone. It is therefore necessary that the service provide practice relationship building. A dis – satisfied customer should not be taken as on unwanted nuisance. cost conscious and globally competitive market. a dissatisfied customer is like a spark that spread like wild fire. Ferrell in his book “Marketing” 1998 has expressed that the largest category of merchandise sold is through direct selling are cosmetic and fragmented. Robert Krientner. Lemmink& Mattson “Journal on service quality perceptions” (1998) showed that the degree of personal warmth displayed by service employees towards customers was related significantly and positively to service quality perceptions and customer satisfaction. 7 . About three quarter of direct selling are made in the house. has said that in a cut throat. Listening to customer complaints in 90% of the job. decorative accessories.documented as playing an important role in consumer‟s final level of satisfaction. vacuum cleaners and home appliances along with many more. He also said that the leader should be relationship motivated and not task motivator. I will also discuss the failures of a standardized international marketing strategy in individual countries and the seven postulations put forth by which it establish a frame of reference for global and international marketing discussions. beginning with the first and most important. Pramod Batra and Vijay Matra in their book “Management Thoughts” in the year 1998. he said that. customers are very difficult to be retained.

as well as inconsistent brand and assortment. they do not mention the gigantic and costly tasks that each of these three steps would entail. If a retailer gives greater variety in product categories. Variety product selection can also help reduce the perceived costs like effort and travel time. it is not uncommon to see varied price promotion across departments. These hypermarkets have been successful in Europe.” However. Segmented or departmentalized by merchandize division. yet the misuse of simple words can sabotage even the best global marketing efforts. This paper will give examples of other amusing but disastrous mistakes in foreign ad campaigns. the need for meticulous language experts is crucial in any global marketing campaign. Domzal and Unger. Cracking an international market is a goal for most growing corporations. They have successful in 8 . Philip Kotler in his book “Marketing Management” 1999 has said that hyper markets are viewed as strip centered under single roof.25. For example.000 sq ft of selling space and they attempt to create a synergic move between food and general merchandising. These huge operation some occupy as much as 2. Their internal management and marketing are unique within the industry. the ads said. Instead. Each department function like a self – contained business. Mason.” Obviously. “It won‟t leak in your pocket and embarrass you.Dellaert et al “Journal on variety in product categories” (1998) concedes that variety does not only help retailers attract more consumers but it can also motivate them to purchase more while at the store. they are essence a series of specialty stores operating under a single roof. Mayer and Ezell in their book “Retailing” 1999 said that malls are vast organization that offer consumer both wide variety and deep assortment within their product mix. “Journal on global marketing efforts” 1998 This paper will discuss that although the above-mentioned three steps sound great on paper. “It won‟t leak in your pocket and make you pregnant. its ads were supposed to say. the company mistakenly thought the Spanish word “embarazar” meant embarrass. when Parker Pen marketed a ballpoint pen in Mexico. it can improve the convenience of purchase in this way increasing customer satisfaction.

telephone. But most retailing is one by retailers. climate. regulations governing marketing. non business use. topography. The success of these types of retail outlet depends on superior merchandise planning. taboos. vending machines and numerous electronic means have grown tremendously. business whole sales come through primarily from retailing. religion. Van Mesdag. wholesalers are retailers. history political make-up.Europe due to lack of development of supermarkets and discount stores. A study on emerging positioning strategies in global marketing says: “The first step is to establish the product as a world brand by establishing name. 1999. selling by mail. feature and image standardization worldwide. doing retailing. comprehensive standardization of marketing mixes is not feasible. Although most retailing is done in retail showroom in recent year‟s non – showroom retailing. Yet. distribution facilities. This paper will also explore the notion proposed by Kapferer in 1992 that “It is time to realize that the majority of brands operating across Europe are neither global nor local. door to door contact. inventory and cost control and customer service. Retailing involves all the activities involved on selling goods and services directly to final consumer for their personal. the main characteristic of global marketing is the attempt to standardize all elements of the marketing mix as much as possible. The majority of international marketing approaches today are still based predominantly on culture-sensitive adaptation as each new foreign market is entered. cultural features (color. 9 .” Philip Kotler in his book “Marketing Management” 1999 has said that retailing involves all the activities involved on selling patient. retail structure. but „glocal.” The differences in language. Many institution manufacturers. The third strategy is to position the world brand toward either the high-tech or high-touch spectrum. education) between countries are so great that pure. Its essence is that it covers a broad spread of the world‟s countries and that it strives consciously to standardize its marketing strategy between those countries. The second is to identify global segments that seek the same product benefits and/or share similar psychological characteristics.

Staten. Susan Camuti in her book “The New Retailing Champs” 1990 expressed that the development of retailing illustrates the marketing concept in operation. has said that satisfied customer are the goal of all marketing companies. Keegan Sandra Movariety and Thomas R. has stated that. Michael J.Rustom. information from social sources. convenient location and expanded hours of operation. such as:. salesman‟s services. When using the product they compare this expectation with their experience to arrive at a period level of satisfaction. 10 . In high income countries consumers demand quality service is higher than ever. Etzel and Bruce J. Store or organization. The development of off price retailers in 1980‟s reflected consumer demand for fast services. the object of every sale is to render satisfaction to the customer and sale is therefore incomplete unless the customer is satisfied. in their book “Marketing” in the year 1995. Shorab and Nusli Davar. yet it is only in the last five years that a serious effort has been made to understand how a state of satisfaction is reached. Consumer from expectation based on past experience. Walker in their book “Fundamentals of Marketing” in the year 1991. In the 1950‟s innovative new discount showroom offered consumer convenient location and expanded hours of operation. the marketing concept emphasize customer satisfaction. This feeling of satisfaction can be built up due to main factors on which satisfaction depends.goods themselves. Hypermarkets appeared in the early 1930‟s in response to consumer desire for low prices. Innovation in Retailing has emerged to satisfy consumer wants and needs. Customer satisfaction isn‟t an end itself. Warren J. William J. it‟s a necessity for repeat business. sales presentation and advertising. in their book “Salesmanship and Publicity” 1999 said that. Duncan.

in their book “Management Building Competitive Advantage” in the year 1996. in the current market where customer is the boss. the new consumer behavior is determined by looking for authenticity. acting friendly and considerate showing. New customer assumes the freedom to seek those subtle differences that distinguish an authentic product from one produced in series. Snell. has said that. However. stressing that the main difference between these two types of consumers is that. but also relationship oriented behavior. we refer to the customer‟s satisfaction with the stores which they visit often. acting friendly and considerate showing. the managers must engage not only in task oriented behavior. Hateman and Scott A. has said that. which means demonstrating trust and confidence. Lewis and Bridger “Journal on authenticity of the consumer” (2000) show that mutations in the new consumer behavior derives mainly from its desire to purchase authentic. Since a lot of research has been performed in the field of customer satisfaction. Thomas S. Snell. for the purpose of this paper while defining satisfaction. many definitions have been formulated as to what Customer satisfaction entails. The search for authenticity determined the new consumer to become individualistic. Hoyer & MacInnis “Journal on the field of customer satisfaction” (2001) also say that dissatisfied customers can choose to discontinue purchasing the goods or services and engage in negative word of mouth. It has become a new quality standard. which means demonstrating trust and confidence. keeping its people informed and so on. in order to ensure the authenticity of their products that the new consumer seeks. Hateman and Scott A. appreciation. the managers must engage not only in task oriented behavior. 11 . and manufacturers must strive ever more to achieve it. in the current market where customer is the boss. Authenticity is the new consumer mind equivalent to that level of quality able to produce him fascination.Thomas S. but also relationship oriented behavior. appreciation. keeping its people informed and so on. while the consumption behavior of traditional consumer was largely motivated by a need for comfort. in their book “Management Building Competitive Advantage” in the year 1996.

While dealing with customers. brands need to convince consumers that they carry a different image and value from other competing products. Terblanche & Boshoff. They are meant to act in a particular way and some acts are either positive or negative. Burke. store cleanliness and well shaped product displays. “Journal on improving the customers shopping experience” (2005 asserts that aisle management involves the effective placement of categories in the store aisles to improve customers shopping experience. 12 . “Journal on consumer behavior” (2004) say that the successful implementation of a company‟s marketing concept is to an essential degree dependent on the frontline employees because of their direct customer interaction. Sadhu Ramakrishna. This is being done to improve company share of consumer purchases and wallet. brands have to show their true personality to the potential consumer and celebrities are the best way to do this. retailers are being driven to improve their aisle and display management strategies.Hasemark and Albinsson. Santhosh Reddy. In other words. “Journal on product provider” (2004) satisfaction is an overall attitude towards a product provider or an emotional reaction to the difference between what customers expect and what they actually receive regarding the fulfillment of a need. Employee behavior is vital in a service company since employees act as a link for the organization with its customers. employees are meant to be at their best behavior. Because of increased competition in the market. “Journal on brand image” (2005) To be successful. “Journal on increased competition in the market” (2004) describe supermarket facilities as the sum of elements that contribute to a pleasant shopping atmosphere such as shop layout/ aisles that make it easy to move around. Liao & Chuang.

durability. the right to choose and the right to be heard. manufacturers could no longer simply produce. Underlying the consumption choices is a desire to feel good. because the consumer needs and wants needed to be taken into account.” The consumer became increasingly anxious about choices and sometimes he chooses not to buy something for fear he will make the wrong selection. in the last decades. because the Government took on the responsibility of protecting his rights: the right to safety. Product. Thus.variety of groceries.Ciavolino & Dahlgaard. the consumers are seeking more purposeful pleasures that last longer and offer deeper satisfactions. and loyalty/membership cards. 2010 Consumer behaviour has changed greatly over the last 25 years. But. In any case. Other attributes can be Location. Ciavolino& Dahlgaard. Such attributes include. clean environment. but also emotionally. Value for money is the perceived level of quality relative to the price paid for a product or service. additional services like parking. Facility layout-display of products. discounts awarded to customers. parent & baby facilities. consumers have faced an explosion of product choices and it is causing so called “consumer vertigo. deliverytime. we believe that the origin of these changes in consumer behavior is found through the introduction of the US Consumer Bill of Rights in 1963. Consumers had choice for the first time and were aware of it. Process-queue management. not only physical. and promotions. supermarket operation hours. What makes people feel good emotionally is changing now. waiting time express checkouts. clear labeling. Value of money is based on competitive pricing of products. the right to be informed. Kar. Impulse shopping gives way to a more considered and conscientious form of consumption. merchandise quality and Merchandising. which gave the consumer a higher status. Mutations occurring in the new consumer‟s perception of goods quality should not be understood as a quickly process or easy to locate in time. “Journal on value for money” (2007). “Journal on service quality” (2007) contend that service quality is the measure of service levels based o the attributes of the core product. All these announce a new era: the era of mindful consumption and of new 13 . but it has been evolutionary and theseeds of change have been apparent for generations. From that moment.

Jayant Sonwalkar. Other additional services like the membership card/loyalty card also provide access to discounts and promotional goods. Prof. “journal on brand recall” (2011) concluded that celebrities act as major opinion leaders and plays a vital role in brand recall. Further. For example. “Journal on additional serives” (2010) assert that customers always look for convenience benefit in the modern environment. Gurleen Arora. “Journal on brand endorsement” (2010) from their study concluded that selection of right and appropriate celebrity for brand endorsement is a challenging proposition. Datta. Additional services are essentially important in the retail business and play a role in determining customer satisfaction through creation of convenience. “Journal on Celebrity Endorsements” (2011) in her study stated that a celebrity can enhance the image of a product in many ways. concur that additional service like the availability of parking can create convenience for customers with vehicles thus leading to a positive effect on customer satisfaction. The advertisers and the agencies should consider various dimensions while celebrity selection. it was analyzed the main changes occurred in the new consumer buying behavior during economic crisis. She further stated that Celebrity 14 . It is the role of marketer to ensure the appropriate fit between the product and the celebrity. through a research from secondary sources. They are helpful in initiating a desired state of need among people but do not bring credibility to any advertising message. Manohar Kapse and Anuradha Pathak. Martinéz-Ruiz et al.consumer. Supriyo Patra and Saroj K. In this paper is realized first a literature review in order to identify the determining factors of the emergence of new consumer and to highlight the main features of this one.

December 2012. shopping products. We hypothesized the positive effect of windowsill placement on all three types of product categories. However. and specialty products. The effectiveness of a regulatory intervention may depend on how successful that intervention is in changing consumer behaviour. small alterations to choice architecture can give effect to disproportionately large behavioural changes. “Influencing Consumer Behaviour”. The latter assumes that choice can be affected by a number of cognitive. and anthropology (the influence of society on the individual). Paula.Endorsements. OBPR Research Paper. Research has found that. The categorical 15 . It is a new discipline that borrows heavily form concepts developed in other fields such as psychology (study of individual). This empirical research investigates the impact of windowsill placement on the compulsive buying behavior of consumers on three different types of products i. “Consumer Buying Behaviour a Factor of Compulsive Buying”. social psychology (study of how an individual operates in groups). 2012.e.. The former assumes that choice is the process of maximising utility subject to budget constraints. Imran Hameed. This paper explores two broad frameworks for considering consumer behaviour: rational choice theory and behavioural economics. Journal of Marketing Research. Consumer behavior refers to the act of individuals who are directly involved in obtaining and using goods and services which leads to the act of purchase. Nudge uses insights of behavioural economics to change choice architecture with a view to influencing behaviour. Consumer behavior has no history or body of research of its own. The application of behavioural economics to policy design has not been widespread. 18 December 2012. on one hand give support to the brand but in no way guarantees that the disadvantages associated with the same could be avoided. convenience products. Consumer behavior is not only the study of what people consume but also „where‟. recently a mechanism for translating these findings to public policy has been developed through „nudge‟. social and emotional factors. „how often‟ and „under what conditions‟. sociology (study of groups). Sheetal Soni. in some circumstances.

regression (Optimal scaling) was used to test the hypotheses. 16 . The data was collected via self administered questionnaire from Pakistan through systematic random sampling. and the sample consisted of 500 respondents. The results of data analysis supported only the 1st hypothesis which highlighted that placement of products in shopping centers has an impact of unplanned buying of consumers for convenience products.

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