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INTRODUCTION Consumer buying behaviour The study of how and why people purchase Products is termed consumer buying

behavior. The term covers the decision-making processes from those that precede the purchase of goods or services to the final experience of using the product or service. Models of consumer buying behavior draw together the various influences on, and the process of, the buying decision. They attempt to understand the proverbial 'black box' of what happens within the consumer between his or her exposure to marketing stimuli and the actual decision to purchase. The essence of the model is that it suggests consumers will respond in particular ways to different stimuli after they have 'processed' those stimuli in their minds. In more detail, the model suggests that factors external to the consumer will act as a stimulus for behavior, but that the consumer's personal characteristics and decision-making process will interact with the stimulus before a particular behavioral response is generated. It is called the 'black box' model because we still know so little about how the human mind works. We cannot see what goes on in the mind and we don't really know much about what goes on in there, so it's like a black box. As far as consumer behavior goes, we know enough to be able to identify major internal influences and the major steps in the decision-making process which consumers use, but we don't really know how consumers transform all these data, together with the stimuli, to generate particular responses. Turn now to the following reading to begin looking at your text's introduction to buyer behavior. Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or dont do) But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create

marketing programs that they believe will be of interest to customers.

As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years analyzing customer activity have presented us with useful guidelines in how someone decides whether or not to make a purchase. In fact, pick up any textbook that examines customer behavior and each seems to approach it from a different angle. The perspective we take is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior. We will devote two sections of the Principles of Marketing Tutorials to customer behavior. In this section we will examine the buying behavior of consumers (i.e., when people buy for personal reasons) while in the Business Buying Behavior Tutorial we will examine factors that influence buyers decisions in the business market. Types of Consumer Purchase Decisions Consumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. In general, consumers face four types of purchase decisions: * Minor New Purchase these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). * Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). * Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of

decision often (but not always) requires the consumer to engage in an extensive decision-making process.

* Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts. Why Consumers Buy Tutorial, customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of living is very high, a large portion of the populations income is spent on wants and desires rather than on basic needs. In this tutorial when we mention the consumer we are referring to the actual buyer, the person spending the money. But is should also be pointed out that the one who does the buying is not necessarily the user of what is bought and that others may be involved in the buying decision in addition to the actual buyer. While the purchasing process in the consumer market is not as complex as the business market, having multiple people involved in a purchase decision is not unusual. For example, in planning for a family vacation the mother may make the hotel

reservations but others in the family may have input on the hotel choice. Similarly, a father may

purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases.

What Influences Purchasing As we discussed the decision-making process for consumers is anything but straight forward. There are many factors that can affect this process as a person works through the purchase decision. The number of potential influences on consumer behavior is limitless. However, marketers are well served to understand the KEY influences. By doing so they may be in a position to tailor their marketing efforts to take advantage of these influences in a way that will satisfy the consumer and the marketer (remember this is a key part of the definition of marketing). For the purposes of this tutorial we will break these influences down into three main categories: Internal, External and Marketing. However, those interested in learning more about customer buying activity may want to consult one or more consumer behavior books where they will find additional methods for explaining consumer buying behavior. For the most part the influences are not mutually exclusive. Instead, they are all interconnected and, as we will see, work together to form who we are and how we behave. For each of the influences that are discussed we will provide a basic description and also suggest its implication to marketers. Bear in mind we only provide a few marketing implications for

each influence; clearly there are many more. Knowledge Knowledge is the sum of all information known by a person. It is the facts of the world as he/she knows it and the depth of knowledge is a function of the breadth of worldly experiences and the

strength of an individuals long-term memory. Obviously what exists as knowledge to an individual depends on how an individuals perceptual filter makes sense of the information it is exposed to. Marketing Implications: Marketers may conduct research that will gauge consumers level of knowledge regarding their product. As we will see below, it is likely that other factors influencing consumer behavior are in large part shaped by what is known about a

product. Thus, developing methods (e.g., incentives) to encourage consumers to accept more information (or correct information) may affect other influencing factors. Attitude In simple terms attitude refers to what a person feels or believes about something. Additionally, attitude may be reflected in how an individual acts based on his or her beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative attitude toward a particular issue it will take considerable effort to change what they believe to be true. Marketing Implications: Marketers facing consumers who have a negative attitude toward their product must work to identify the key issues shaping a consumers attitude then adjust marketing decisions (e.g., advertising) in an effort to change the attitude. For companies competing against strong rivals to whom loyal consumers exhibit a positive attitude, an important strategy is to work to see why consumers feel positive toward the competitor and then try to meet or beat the competitor on these issues. Alternatively, a company can try to locate customers who feel negatively toward the competitor and then increase awareness among this group. Personality

An individuals personality relates to perceived personal characteristics that are consistently exhibited, especially when one acts in the presence of others. In most, but not all, cases the behaviors one projects in a situation is similar to the behaviors a person exhibits in another situation. In this way personality is the sum of sensory experiences others get from experiencing a person (i.e., how one talks, reacts). While ones personality is often interpreted by those we interact with, the person has their own vision of their personality, called Self Concept, which may or may not be the same has how others view us. Marketing Implications: For marketers it is important to know that consumers make purchase decisions to support their self concept. Using research techniques to identify how customers view themselves may give marketers insight into products and promotion options that are

not readily apparent. For example, when examining consumers a marketer may initially build marketing strategy around more obvious clues to consumption behavior, such as consumers demographic indicators (e.g., age, occupation, income). However, in-depth research may yield information that shows consumers are purchasing products to fulfill self-concept objectives that have little to do with the demographic category they fall into (e.g., senior citizen may be making purchases that make them feel younger). Appealing to the consumers self concept needs could expand the market to which the product is targeted. Lifestyle This influencing factor relates to the way we live through the activities we engage in and interests we express. In simple terms it is what we value out of life. Lifestyle is often

determined by how we spend our time and money. Marketing Implications: Products and services are purchased to support consumers lifestyles. Marketers have worked hard researching how consumers in their target markets live their lives since this information is key to developing products, suggesting promotional strategies and even determining how best to

distribute products. The fact that lifestyle is so directly tied to marketing activity will be further examined as we discuss developing target market strategies (See Targeting Markets Tutorial). Roles Roles represent the position we feel we hold or others feel we should hold when dealing in a group environment. These positions carry certain responsibilities yet it is important to

understand that some of these responsibilities may, in fact, be perceived and not spelled out or even accepted by others. In support of their roles, consumers will make product choices that may vary depending on which role they are assuming. As illustration, a person who is

responsible for selecting snack food for an office party his boss will attend may choose higher quality products than he would choose when selecting snacks for his family.

Marketing Implications: Advertisers often show how the benefits of their products aid consumers as they perform certain roles. Typically the underlying message of this promotional approach is to suggest that using the advertisers product will help raise ones status in the eyes of others while using a competitors product may have a negative effect on status. Motivation Motivation relates to our desire to achieve a certain outcome. Many internal factors we have already discussed can affect a customers desire to achieve a certain outcome but there are others. For instance, when it comes to making purchase decisions customers motivation could be affected by such issues as financial position (e.g., Can I afford the purchase?), time constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my moneys worth?), and perceived risk (e.g., What happens if I make a bad decision?). Marketing Implications:

Motivation is also closely tied to the concept of Involvement, which relates to how much effort the consumer will exert in making a decision. Highly motivated consumers will want to get mentally and physically involved in the purchase process. Not all products have a high

percentage of highly involved customers (e.g., milk) but marketers who market products and services that may lead to high level of consumer involvement should prepare options that will be attractive to this group. For instance, marketers should make it easy for consumers to learn about their product (e.g., information on website, free video preview) and, for some products, allow customers to experience the product (e.g., free trial) before committing to the purchase. EXTERNAL INFLUENCES Consumer purchasing decisions are often affected by factors that are outside of their control but have direct or indirect impact on how we live and what we consume. Culture Culture represents the behavior, beliefs and, in many cases, the way we act learned by interacting or observing other members of society. In this way much of what we do is shared behavior, passed along from one member of society to another. Yet culture is

a broad concept that, while of interest to marketers, is not nearly as important as understanding what occurs within smaller groups or Sub-Cultures to which we may also belong. Sub-cultures also have shared values but this occurs within smaller groups. For instance, sub-cultures exist where groups share similar values in terms of ethnicity, religious beliefs, geographic location, special interests and many others. Marketing Implications: As part of their efforts to convince customers to purchase their products, marketers often use cultural representations, especially in promotional appeals. The objective is to connect to

consumers using cultural references that are easily understood and often embraced by the consumer. By doing so the marketer hopes the consumer feels more comfortable with or can relate better to the product since it corresponds with their cultural values. Additionally, smart

marketers use strong research efforts in an attempt to identify differences in how sub-culture behaves. These efforts help pave the way for spotting trends within a sub-culture, which the marketer can capitalize on through new marketing tactics (e.g., new products, new sales channels, added value, etc.). Other Group Membership In addition to cultural influences, consumers belong to many other groups with which they share certain characteristics and which may influence purchase decisions. Often these groups contain Opinion Leaders or others who have major influence on what the customer purchases. Some of the basic groups we may belong to include: * Social Class represents the social standing one has within a society based on such factors as income level, education, occupation * Family ones family situation can have a strong effect on how purchase decisions are made * Reference groups most consumers simultaneously belong to many other groups with which they associate or, in some cases, feel the need to disassociate Marketing Implications: Identifying and understanding the groups consumers belong to is a key strategy for marketers. Doing so helps identify target markets, develop new products, and create

appealing marketing promotions to which consumers can relate. In particular, marketers seek to locate group leaders and others to whom members of the group look for advice or direction. These opinion leaders, if well respected by the group, can be used to gain insight into group behavior and if these opinion leaders accept promotional opportunities could act as effective spokespeople for the marketers products. Purchase Situation A purchase decision can be strongly affected by the situation in which people find themselves. In general, a situation is the circumstances a person faces when making a purchase decision, such as

the nature of their physical environment, their emotional state, or time constraints. Not all situations are controllable, in which case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitors product. Marketing Implications: Marketers can take advantage of decisions made in uncontrollable situations in at least two ways. First, marketers can use promotional methods to reinforce a specific selection of products when the consumer is confronted with a particular situation. For example, automotive services can be purchased that promise to service vehicles if the user runs into problems anywhere and at anytime. Second, marketers can use marketing methods that attempt to convince consumers that a situation is less likely to occur if the marketers product is used. This can also be seen with auto products, where marketers explain that using their product will prevent unexpected damage to their vehicles. How Consumers Buy So now that we have discussed the factors influencing a consumers decision to purchase, lets examine the process itself. This process is presented in a sequence of 5 steps as shown below.

However, whether a consumer will actually carryout each step depends on the type of purchase decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort is involved in making a purchase decision. In cases of routine, brand loyal purchases consumers may skip several steps in the purchasing process since they know exactly what they want allowing the consumer to move quickly through the steps. But for more complex decisions, such as Major New Purchases, the purchasing process can extend for days, weeks, months or longer. So in presenting these steps marketers should realize that, depending on the circumstances surrounding the purchase, the importance of each step may vary. 1. Need/Want/Desire is recognized In the first step the consumer has determined that for some reason he/she is not satisfied (i.e., consumers perceived actual condition) and wants to improve his/her situation (i.e., consumers perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumers needs. Marketers are particularly good at this through advertising; in-store displays and even the intentional use of scent (e.g., perfume counters). At this stage the decision-making process may stall if the consumer is not motivated to continue (see Motivation above). However, if the consumer does have the internal drive to satisfy the need they will continue to the next step. 2. Search for Information Assuming consumers are motivated to satisfy his or her need, they will next undertake a search for information on possible s. The sources used to acquire this information may be as simple as remembering information from past experience (i.e.,

memory) or the consumer may expend considerable effort to locate information from outside sources (e.g., Internet search, talk with others, etc.). How much effort the consumer directs toward searching depends on such factors as: the importance of satisfying the need, familiarity with available s, and the amount of time available to search. To appeal to consumers who are at the search stage, marketers should make efforts to ensure consumers can locate information

related to their product. For example, for marketers whose customers rely on the Internet for information gathering, attaining high rankings in search engines has become a critical marketing objective. 3. Evaluate Options Consumers search efforts may result in a set of options from which a choice can be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of possible s to their needs (i.e., product types) while at level two the consumer may be evaluating particular products (i.e., brands) within each . For example, a consumer who needs to replace a television has multiple s to choose from such as plasma, LCD and CRT televisions. Within each type will be multiple brands from which to choose. Marketers need to understand how consumers evaluate product options and why some products are included while others are not. Most importantly, marketers must determine which criteria consumers are using in their selection of possible options and how each criterion is evaluated. Returning to the television example, marketing tactics will be most effective when the marketer can tailor their efforts by knowing what benefits are most important to consumers when selecting options (e.g., picture quality, brand name, screen size, etc.) and then determine the order of importance of each benefit. 4. Purchase In many cases the chosen by the consumer is the same as the product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The intended purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a competitors offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumers reference group take a negative view of the purchase (e.g., friend is critical of purchase). Marketers whose product is most desirable to the consumer must make sure that the transaction goes smoothly. For example, Internet retailers have worked hard to prevent consumers from abandoning online purchase (i.e., online shopping carts) by streamlining the checkout process. For marketers whose product is not the consumers selected

product, last chance marketing efforts may be worth exploring, such as offering incentives to store personnel to talk up their product at the checkout line. 5. After-Purchase Evaluation Once the consumer has made the purchase they are faced with an evaluation of the decision. If the product performs below the consumers expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme may result in the consumer returning the product while in less extreme situations the consumer will retain the purchased item but may take a negative view of the product. Such evaluations are more likely to occur in cases of expensive or highly important purchases. To help ease the concerns consumers have with their purchase evaluation, marketers need to be receptive and even encourage consumer contact. Customer service centers and follow-up market research are useful tools in helping to address purchasers concerns. As weve seen, consumer purchasing is quite complex. In our next tutorial, Business Buying Behavior, we will see that marketers must also have a thorough understanding of how business purchase decisions are made. 1. CONSUMER PROBLEM-SOLVING PROCESSES Routenized used when buying frequently purchased, low cost items used when little search/decision effort is needed e.g., buying a quart of orange juice once per week

Limited problem solving used when products are occasionally purchased

used when information is needed about an unfamiliar product in a familiar product


Extended problem solving used when product is unfamiliar, expensive, or infrequently purchased e.g., buying a new car once every five years

Under what sorts of conditions the assistance of a salesperson would be needed? Not needed? 2. POST-PURCHASE CONSUMER BEHAVIOR Satisfaction After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer believes that s/he received more in the exchange than what was paid, s/he might feel satisfied. If s/he believes that s/he received less in the exchange than what was paid, then s/he might feel dissatisfied. Dissatisfied buyers are not likely to return as customers and are not likely to send friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive when the product requires post-sale servicing, as when an automobile needs warranty maintenance. The above idea can be modeled as Humans' basic exchange equation: Profit = Rewards Costs Unfortunately, even a buyer who "got a good deal" with respect to price and other terms of the sale might feel dissatisfied under the perception that the salesperson made out even better This idea is called equity theory, where we are concerned with: Outcomes of A Inputs of A Vs. Outcomes of B Inputs of B

Consider, for example, that you have purchased a used car for $14,000 after finding that the &quote; blue book" value is listed at $16,000. You are probably delighted with the purchase until you accidentally meet the prior owner who had received a trade-in of $10,000 on the car just a few days before. That the dealer appears to have received substantially greater benefit than you could lead to extreme dissatisfaction, even though you received good value for the money spent. (Note that the selling dealer might actually have paid $12,000 for the car at a statewide dealer's auction, and then might have incurred another $1,000 in expenses associated with transporting the car and preparing it for sale. Management of buyer perceptions is very important!) An issue related to this is attribution theory. According to attribution theory, people tend to assign cause to the behavior of others. Mary's life insurance agent advises her to purchase a whole life policy, while her accountant advises her, "buy term insurance and invest the difference.". The reason, explains the accountant, "is that insurance agents receive substantially higher commission payments on sales of whole life policies." If Mary believes that the insurance agent is recommending a product merely because he receives a higher commission, she will likely be displeased with the relationship and will not take his recommendation. If the agent is able to show Mary that the recommended product is the best for her situation, then she will likely attribute his recommendation to having her best interests in mind and will not be concerned about how it is that he is compensated for his services. Cognitive dissonance Has to do with the doubt that a person has about the wisdom of a recent purchase It is very common for people to experience some anxiety after the purchase of a product that is very expensive or that will require a long term commitment. Jane and Fred, for example, signed a one year lease on an apartment, committing themselves to payments of $1500 per month. A week later, they are wondering if they should have instead leased a smaller $900

apartment in a more rough part of town; they are not sure if they really can afford this much of a monthly obligation.

Dick and Sally, on the other hand, ultimately rented the $900 apartment, and now are wondering if the savings in rent will be offset by noisy and sometimes unsafe conditions in this neighborhood. Perhaps neither couple would be experiencing this anxiety if their landlords had given them just the smallest of assurances that they had made a good decision. After a close on products that are expensive or that require a long term commitment, the salesperson should provide the prospect with some reasons to be happy with the decision. Allow the car buyer to reinforce her own positive feelings by calling her a week after the purchase to ask how things are going. Call the new life insurance policy holder after two months to see if there are any questions; a lack of questions can only help the buyer to convince himself that he did the right thing. MAS-CommonKADS (Iglesias et al. 1998a) is a general purpose multi-agent analysis and design methodology, it extends the CommonKADS (Schreiber et al. 1999) design method by combining techniques from object- oriented methodologies and protocol engineering.

The methodology is centered on seven models that cover the main aspects of the development of multi-agent systems: The agent model specifies agents characteristics such as reasoning capabilities, sensor/effectors, services, agent groups and hierarchies. The task model describes the tasks that the agents can carry out, such as goals, decomposition, problem-solving methods, etc. The expertise model defines the knowledge needed by the agents to achieve their goals. The organization model describes the social organization of the agent society.

The coordination model illustrates the conversation between agents. The communication model details the human- software agent interactions. The design model includes, in addition to the typical action of the design phase (Pressman 2001), the design of relevant aspects of the agent network, selecting the most suitable agent architecture and the agent development platform. The application of the methodology consists in developing the different models. It has been successfully applied to systems for optimization of roll- mill applications (Iglesias et al. 1998b) and automation of travel assistants (Arenas and Barrera-Sanabria 2002) among others.

COMPANY PROFILE ECLAT INNOVATION Eclat Innovation is one of the India's leading IT Companies and among the top 10 Indian Software products companies. They provides complete end-to-end outsourcing solutions for various industries. It has a comprehensive set of solutions for the banking, finance, insurance, manufacturing, retail & distribution and contracting sectorss. Eclat Innovation has worked with over 700 customers worldwide, Insurance Eclat Innovation serves customers in 30 countries and has presence across 4 continents. The company offers the following range of enterprise services and solutions to meet varying customer requirements. Eclat Innovation is SEI CMMI Level 5 compliant for its Software services and ISO 9001:2000 certified for its IT Infrastructure and Transaction services. Services *IT Outsourcing *IT Infrastructure Management *IT Security Consultancy *Product Re-engineering *Packaged Application Implementation *EAI *e-Governance *Business Process Management Eclat Innovation has five delivery centers in India spread over 150,000 square feet in coimbatore, and Chennai. Each delivery center is well networked with built in redundancies and can work as an independent unit as well as backup for other units. Recruitment

*Resume collation and filtering *Initial screening *Preliminary screening and short listing *Flexible staffing administration *Reporting & documentation A Eclat Innovation is a leading global Technology and IT Enterprise with annual revenues of US$ 4.9 billion. The Eclat Innovation Enterprise comprises two companies listed in India, Eclat Innovation Technologies The 3 decade old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The Eclat Innovationteam comprises 55,000 professionals of diverse nationalities, operating across 18 countries including 360 points of presence in India Eclat Innovation has global partnerships with several leading Fortune 1000,including several IT and Technology majors Along with the swiftly growing software technology industry, Apex Technology, which was hitherto known as the pioneer in modern computing made the advent into software development .Eclat Innovation R&D was spun off as Eclat Innovation Technologies in 1997 to mark their advent into the software services arena. Todays Eclat Innovation sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane. And this it does across 18 countries and across 360 service locations in IndiaThe Engineering and R & D services department runs the largest outsourced engineering center outside the US which is a testimony to the 30 year product engineering experience. The company offers a comprehensive range of R&D and Engineering services to component vendors, OEMs, ODMs and ISVs across multiple industry segments and domains. Infrastructure

Eclat InnovationInfrastructure Management Division is focused on addressing the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. IT Infrastructure Management is in the Eclat InnovationDNA, drawing resources from the 30 year pioneering heritage in the area of computing, in line with global giants BPO Business Processing Outsourcing is heading towards a maturity level where a new form of BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing and Multiple Process Outsourcing . The evolving trend is more focused towards compliance , time-to-market, focus on core process, and quality improvement

Applications Leveraging strong partnerships with platform / product companies, the team of applications professionals deliver unprecedented value to few of the largest players in the field of Financial Services, Retail and Healthcare.Eclat Innovationof products covers the entire spectrum of the information technology needs of its customers. By virtue of the immense diversity of markets and customers that it address, Eclat InnovationInfosystems products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers.Eclat InnovationInfinet covers a range of telecom and imaging products including enterprise networking. Eclat Innovationtied up with Nokia in 1995 with the sale and services of Nokia mobile phones Network Management involves Network Monitoring of Bandwidth Utilization, Network Errors / Collisions, Network Troubleshooting, Day-to-day Network Operations, Network performance monitoring, Tuning Network Operating System and advise action plan. The traditional outsourcing method has had its celebrated failures. Regular reports are published about cost overruns, contract disputes, and poor customer satisfaction. Many of these failures have been due to inflexibility of the sourcing contract, which may not easily change to respond to market pressures and business requirements. It is commonly known in the service industry and outsourcing is cyclic, with companies moving from in to out source and back again. This is extremely and distracts the IT organization from core business.

Organizations need to be able to change the financial model, adjust the IT service portfolio and alter the technology landscape. The blame for this is not entirely in the hands of the service provider. While traditional outsourcing places responsibility on the provider, in reality, a sourcing method has demands on both the organization and the provider. : Often existing internal IT departments and business are not integrated. A gap in knowledge exists between IT capability and the business's requirements. Sourcing providers are brought in to solve this problem but are only able to understand the organization at a snapshot in time. Failure to properly prepare the IT organization: Sourcing is undertaken to resolve a problem with the current IT service delivery. The provider has the task of reforming the delivery method in an environment that the organization had been unable to do for many years. Adversarial provider selection and contract negotiation process: The use of outsourcing for cost reduction as the principle method for evaluating a sourcing solution makes a conflicting relationship between organization and provider. Theoretically derived service levels: A lack of historical knowledge of current services levels and capabilities puts the onus on the provider the commit to services levels that have no baseline reality Poorly planned transition and implementation: Often the Eclat Innovationsolution design and transition phases are performed by completely separate teams (e.g. organization senior management and provider sales vs. organization technical staff and provider delivery staff). Transition is often less that 20% of the solution design effort, but can make or break the success of the sourcing solution. Smart Sourcing is an evolution of the outsourcing that mitigates the limitations of the traditional sourcing methodology to provide a win-win relationship for the business and the provider over the long term. There are six core principles that serve to guide the implementation and strategy for the sourcing relationship. The three principles of implementation are: Preparation of the enterprise for outsourcing by designing the existing IT service

delivery in a flexible, modular way that provides maximum flexibility in sourcing strategy. Enterprises should design a measurement framework into the environment to collect real data about service delivery performance. Proper preparation limits risk for both the enterprise and the provider.

INDUSTRY PROFILE Software remains one of the most innovative and fastest growing sectors of the global economy, generating revenues of more than $150 billion every year. About half of those sales come from software applications, with the remainder split between development tools and infrastructure software (operating systems, network management, middleware, and security software). Microsoft claims a healthy chunk of all three segments -- a continuing point of contention with the US Justice Department. The Internet has vastly altered the dynamics of the software industry over the past decade. Formerly restricted to a cycle of lengthy R&D concentrated in one geographic area -- followed by an arduous process of distribution through a worldwide network of resellers, systems integrators, and other independent vendors -- the software industry has found new efficiencies on the Web. Companies such as Sun Microsystems and Oracle have employed the Web to anchor their products, in much the same ways that Microsoft used the desktop PC and IBM used the mainframe to corner their respective markets. In the past five years, the formerly explosive market for enterprise resource planning (ERP) software -- which helps companies save money by integrating back-office operations such as accounting, distribution, and human resources -- has given way to software that helps companies make money, including customer relationship management (CRM) and supply chain management software. The standardization of Internet technologies such as Java and XML (extensible markup language) -- which in tandem enable end users on the Web to interact with data stored on servers for configuring orders or personalizing services -- is speeding up the industrywide conversion to Web-enabled applications. A Business Software Alliance survey of CEOs from software

companies such as Autodesk, Intuit, and Symantec confirmed that trend, predicting that by 2005, two-thirds of all software will be distributed over the Internet (compared to just 12% in 2001).

Companies including Microsoft, AOL Time Warner, and Sun are all jockeying to push Webbased software to the next level, developing a new class of applications loosely referred to as Web services. Designed from standardized building block components, Web services can theoretically be assembled in a variety of ways, allowing companies to develop business applications that function across a variety of software and hardware platforms. While large on hype (mostly centered around Microsofts .NET initiative), the current real-world applications for Web services have been limited primarily to simple integration tasks, such as managing online travel reservations and tracking shipping. If successful, however, the shift to Web services could be a dramatic one, with packaged software largely disappearing and companies instead purchasing, assembling, and modifying components as needed to create specific business applications. It's the technological revolution that at times brings surprising opportunities for some nations. India, though not among the front runners in terms of economic growth, has successfully utilized such opportunities in the revolution to become an IT hotspot. For the past several years, India has been an increasingly favored destination for customized software development. As a result, a number of software companies in India have come up. Not only the number of players has increased in the Indian IT market, but at the same time, Indian software companies have done considerably well in the global market. Such huge success of software companies in India has given birth to a new speculation whether other developing countries should imitate Indian example and whether the success of India would constitute a competitive challenge to the software industry of the developed world or not.

The Software Industry in India With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOMDeloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008.

The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc. Reasons behind Success of Indian software companies There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market. India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business s for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India. Most of the software companies in India are into varied types of business. There can be several types of business in the IT sectors: Infrastructure Software: These include OS, middleware and databases.

Enterprise Software: These automate business process in diverse verticals like finance, sales and marketing, production and logistics. Security Software Industry-specific Software Contract Programming A background in computer science, including facility in writing and interpreting programming code, is almost always the fundamental requirement for this field. As computer technology both becomes more pervasive in Financial Services and changes rapidly, skilled IT professionals are increasingly more valuable. According to an article in the 12/5/09 issue of The Economist ("Silo but deadly"), the financial services industry was on track to spend over $500 billion worldwide on information technology in 2009. This is greater than any other industry, and also exceeds the aggregate spending by all governments on IT. In-House Information Technology Staff: One attraction of pursuing a career in information technology is that IT departments are among the most progressive in allowing staff to work from home (that is, to telecommute), being much further along this curve than most other groups in most companies. More Than Writing Code: To advance in an in-house information technology department, or to keep open the option of a potential switch to the management side of the company, you have to be more than someone who takes directions and writes code. Rather, you should learn all you can about the organizations that act as your internal clients, anticipate their needs and suggest s. This way you become a valued strategic partner rather than a mere mechanic. Managing Expectations: The best information technology people do an excellent job of managing their business partners expectations. Making accurate, realistic estimates of what you can accomplish, and in what time frame, is a key factor in establishing credibility. Just as failing to deliver what you promise is unacceptable, so is grossly overestimating the time and resources that you need to finish the job right.

Systems Liaison: While the core of systems consulting includes people with expertise in programming and other technical fields, there also are jobs for people to serve as liaisons between the "business side" and the "technical side." These liaison people are able to understand the business requirements for a given systems project, and to communicate them cogently and logically to the technical staff. Likewise, the liaison people must know enough about programming, systems design and systems implementation to advise the business side on their options and to manage their expectations realistically.

This liaison role is also very important within companies that have their own technical staffs, but rarely gets assigned as a full time job. Instead, it frequently ends up being an unofficial side job for people who acquire an aptitude for it. In Financial Services, the systems liaison role regularly falls to people in the financial organization, especially departmental controllers.

REVIEW OF LITERATURE Definition of Cellular/Mobile phone (commonly "mobile phone" or "cell phone" or "handphone") is a long-range, portable electronic device used for mobile communication. In addition to the standard voice function of a telephone, current mobile phones can support many additional services such as SMS for text messaging, email, packet switching for access to the Internet, and MMS for sending and receiving photos and video. Most current mobile phones connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception is satellite phones.Cellular telephone is also define as a type of shortwave analog or digital telecommunication in which a subscriber has a wireless connection from a mobile telephone to a relatively nearby transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone service is available in urban areas and along major highways. As the cellular telephone user moves from one cell or area of coverage to another, the telephone is effectively passed on to the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone (which is simply a phone with a very short wireless connection to a

local phone outlet). A newer service similar to cellular is personal communications services (PCS). Brand preferences and advertisement Students leant about cellular phone from many sources, mainly from friends and families, through advertisement and from their own experience. Whether a promotion and advertising hurt or help a brand is under-researched (Mela, Gupta & Lehman, 1997). In the long-run, advertisement help brands by making consumer less price sensitive and more loyal. Exposure of an ad is crucial to be effective in changing consumer knowledge, attitude and behaviour (Evans,Moutinho & Van Raaj, 1996). And for the ad to be seen, it must grab the attention of its target audience. Ads originality as defined from Pietes, Warlop and Wedel, (2002) were easier for customer to remember than ordinary ads by increasing attention to it. This thus increased attention to the brand being advertised.However, regardless of the content, ads for brand leaders are more successful due to the influence of the brand (Simon, 1970). Ads for less popular brands may be less successful even though the content may be good.Liking towards the brand itself can influence liking for the brand

(Hawkins, Best & Coney, 1992). However according to study by Biehal, Stephens and Curlo (1992) whether consumers like or dislike an ad does not necessarily lead to brand acceptance or rejection. So, even though consumers may like the ad that they see, it does not necessarily mean that they will go out and buy the brand advertised.Usually the consumer uses their attitude towards the ad (Aad) in brand choice equaled that of attitude towards the brands (AB). Advertisers must remember that advertising messages are interpretend differently between different genders (Maldonando, Tansuhaj & Muehling, 2003; Hogg & Garrow, 2003; Putrevu, 2001).Prevoius study have proven that females were more likely to engagae in elaboration than men (Maldonado & Muehling, 2003). Hogg and Garrow (2003) found that women paid more intention about the details of the characters of an ad when asked to analyze advertising messages. They said that this may be explained by the fact that females have a greater tendency than men to consider external information and information related to others. Women are comprehensive processors who try to gather all available information about the

product.In building brand preferences, Alreck and Settle (1999) proposed six strategies:1)Need association- the product/brand linked to need through repeated messages.2)Mood associationsbrands should be associated with good feelings through slogans,songs.3)Subconscious motivation-use of symbol to excite consumers subconscious motives.4)Behaviour modificationconsumers are conditioned to buy the brand by controlling cues and rewards.5)Cognitif processing-penetrating perceptual and cognitive barriers to create favourable attitudes towards the brand/product.6)Model emulation- portraying idealized lifestyles for consumers to imitate. However, this study focused only on the symbolic or tangible elements in influencing brand preference. It did not discuss tangible aspects (i.e product characteristics) of influencing brand preference. Advertisement can change consumers perception of a product in terms of attributes content and proportion and also influence consumers taste for attributes ( Gwin & Gwin, 2003)

Brand preference and product attribute Attributes are the characteristic or features that an object may or may not have and includes both intrinsic and extrinsic (Mowen & Minor, 1998) .Benefits is the

positive outcomes that come from the attributes. People seek products that have attributes that will solve their problems and fulfils their needs (Mowen & Minor, 1998). Understanding why a consumer choose a product based upon its attributes helps marketers to understand why some consumers have preferences for certain brands (Gwin & Gwin, 2003). In the study by Gwin and Gwin (2003), the Lancaster model of consumer demand (1966, 1979), also reffered to as the product attributes model,was used to evaluate brand positioning.This model assumes that consumer choice is based on the characteristics (or attributes) of a brand.Each product is abundle of attributes and that choice is based on maximizing utility/satisfaction from the attritubes subject to budget constraints. However there were two limitataions of the model: (1) the model is static and deterministic and (2) the model does not explain how the preferences for attributes

were formed.This article also also didi not mention if experience with the product played a part in influencing attributes preferences. Both tangible nad intangible attributes of a product are equally important in choosing a product or brand (Myers, 2003). There is no evidence that certain attributes are more related to customer loyalty than others (Romariuk & Sharp, 2003). It was, found though, that the more attributes (non-negative) associated with a brand, the more loyal the customer (Romariuk & Sharp,2003).Romariuk and Sharp (2003) suggested that marketers should focus more on how many attributes the brand should be associated with and not what attributes. However, this study did not specify what sort of attributes marketers should associate the brand with; i.e. whether they should be relevant or irrelevant attributes, tangible or intangible etc.This is because it is important that consumer accurately lean about product attribute performances since it would influence their interpretations of product performance by causing memory encode and retrieval bias.Unfounded product attribute relationship beliefs can mislead them into expecting something that is not there.(Mason & Bequette, 1998). Hence if products fall short of customer expectataions,then dissactisfaction would result.Nevertheless, it was found thatthrough irrelevant, some attributes may still be important in influencing consumer choice.Persistent preferences for product attribute soccurs when there is low ambiguity in the initial potential choice for salient attributes coupled with experience,although those attributes maybe irrelevant (i.e. an attributes usually not associated with favourable brand outcomes (Muthukrishnan & Kardes, 2001). Consequently, Mason and Bequette (1998) also said that perceptions on product performance based on salient attributes are more important in influencing the

consumer purchase behaviour than actual product attribute performances. Similarly, Myers (2003) concluded that brand equity may be more influenced by attribute knowledge more than consumer preference.For low-involvement products, consumers have more objective view of the nature of the attrinutes (eg. food, cosmetics) because they are constantly being advertised and promoted.Similarly Rioo, Vasquez and Iglesias (2001) sugggeated that consumer evaluation of a product can be broken down into evaluation related to product (tangible or physical attributes) and brand name (intangible attributes, or images added to the product due to its brand names). In his study on the relationship between human values and consumer purchases, Allen (2001)

found there was a significant association between human values (eg. hedonistic, achievement, self-direction, conformity, security etc.), product preference and tangible attribute importance with how consumers perceive the product (i.e tangible attributes) and how they evaluate the product (i.e symbolic meaning,tangible/intangible attribute importance). Human values influence the importance of the products tangible attribute importances that are already important to consumers.However perception of product performance on the salient attributes are more important than actual performance (Mason & Bequette, 1998).Mowen and Minor (1998) suggested that marketing managers should know the attributes that consumers expect in a product and how positively or negatively they rate these attributes to help develop and promote a successful product.Retailers need to be knowledgeable of the product attributes perceived as the most important by each individual consumer group in order to build and maintain market share (Warrington & Shim, 2000). It is the consumer who determines which attributes matter to them. Different consumer groups place different importance ondifferent attributes (Warrington & Shim,2000).It was found that consumers categoriez as LP/SB (low product involvement/strong brand commitment) placed greater importance on product attributes and product orientataions than LP/WB (weak brand commitment) consumers, which placed the most importance on price.Markerters should consider using advertisement, which may play a role in making attributee important to consumers that might not have been considered before (Gwin & Gwin, 2003),Romariuk & Sharp (2003) suggested two objectives of short-term and long-term brand building. In the short term, managers need to identify a specific attributes to be communicated to the market,based on which message gave the best execution.The key aim is to develop likeable advertisement.In the long-run,managers need to build up a bank of consumer perception about the brand to make it the one most often thought of and make it difficult for competitors to have access to the minds of consumers (Romariuk & Sharp, 2003).The brand name of the product itself is an important attribute. Brands have both functional (product-related) and symbolic dimensions (del Rio,Vasquez & Iglesiaz, 2001), On the product related benefit side, consumer evaluate product performance based on its capabilities, usage effectiveness, value for money and reliability. The purchase and consumption of products is increasing regarded by consumers as an indirect way of communication to improve their self image and deliver certain impressions to other people in their environment (del Rio,Vasquez & Iglesiaz, 2001), Therefore the brand name benefits perceived by consumers is

highly interrelated to the product-based benefits. Big brand means a better image and a better product (del Rio,Vasquez & Iglesiaz, 2001), However, as mention earlier, Mason and Bequette (1998) suggested that Similarly Myers (2003) concluded that brand equity might be influenced by attribute knowledge more than consumer preference. This may be due to consumer biasness and prejudice, Consumers product evaluations are influenced by memory. The biasness can be reduced by having current information, experience and knowledge (Mason and Bequette ,1998). Therefore, its not surprising that brands that consumers believe offer superior value are most preferred brands chosen often (Myers, 2003). Brands with higher equity resulted in greater preferences and high market shares. Price is another form of attribute used by consumers to evaluate a product. Price can sometimes be an indicator of quality; with a higher price indicating higher quality (Mowen & Minor, 1998; Siu & Wong, 2002). Consumers perceive that a higher price can be attributed to the higher cost of quality control (Siu & Wong, 2002). Some consumers are highly price sensitive (elastic demand),whereby a high prices may shift consumers to competitive brands (Mowen & Minor, 1998). Therefore price can have a positive or negative influence on customers. OBJECTIVE OF STUDY PRIMARY 1. The need for an understanding of the organizational buying process has grown in recent years due to the many competitive challenges presented in business-to-business markets. Since 1980 there have been a number of key changes in this area, including the growth of outsourcing, the increasing power enjoyed by purchasing departments and the importance given to developing partnerships with suppliers. 2. The organizational buying behavior process is well documented with many models depicting the various phases, the members involved, and the decisions made in each phase. The basic five phase model can be extended to eight; purchase initiation; evaluations criteria formation; information search; supplier definition for RFQ; evaluation of quotations; negotiations; suppliers choice; and choice implementation (Matbuy, 1986). 3. The buying centre consists of those people in the organizational that are involved directly or indirectly in the buying process, i.e. the user, buyer influencer, decider and gatekeeper to who the

role of initiator has also been added. The buyers in the process are subject to a wide variety and complexity of buying motives and rules of selection. The Matbuy model encourages marketers to focus their efforts on who is making what decisions based on which criteria.

SECONDARY 1. Risk and uncertainty - the driving forces of organizational buying behavior is concerned with the role of risk or uncertainty on buying behavior. The level of risk depends upon the characteristics of the buying situation faced. The supplier can influence the degree of perceived uncertainty by the buyer and cause certain desired behavioral reactions by the use of information and the implementation of certain actions. The risks perceived by the customer can result from a combination of the characteristics of various factors: the transaction involved, the relationship with the supplier, and his position vis--vis the supply market. 2. Three key factors are shown to influence organizational buying behavior, these are, types of buying situations and situational factors, geographical and cultural factors and time factors. 3. Purchasing Strategy. The purchasing function is of great importance because its actions will impact directly on the organizations profitability. Purchasing strategy aims to evaluate and classify the various items purchased in order to be able to choose and manage suppliers accordingly. Classification is along two dimensions: importance of items purchased and characteristics of the supply market. Actions can be taken to influence the supply market. Based on the type of items purchased and on its position in the buying matrix, a company will develop different relationships with suppliers depending upon the number of suppliers, the suppliers share, characteristics of selected suppliers, and the nature of customer-supplier relationships. The degree of centralization of buying activities and the missions and status of the buying function can help support purchasing strategy. The company will adapt its procedures to the type of item purchased which in turn will influence relationships with suppliers.

4. The future. Two activities which will be crucial to the future development of organizational buying behaviour will be information technology and production technologies.

SCOPE OF THE STUDY Consumer expectation, attitudes and perception about organic foods have or are currently being studied. The EU-project OMIaRD project has produced the most comprehensive statistics so far on the scope and dimensions of the organic market in Europe and will shortly provide more detailed insights from focus group and laddering interviews with regular and occasional consumers. Data sets are or will be soon available from survey based studies in several EU countries. However, it is currently difficult to compare consumer surveys from different EUcountries because a range of different questionnaires/survey approaches is used. RESEARCH METHODOLOGY Research Problem To make a comprehensive study of Viveks & know the Buying behaviour & of Viveks customers . A) TYPE OF RESEARCH Descriptive type research has used to complete the project. This research is base on fact finding enquires and the variables are totally independent and uncontrollable. B) DATA COLLECTION: Primary Data

Primary data of research are collected from direct resources (customer of Viveks) through questionnaire. Secondary Data Secondary Data which are used for research to know the history scope of Retail industry are collected from already available resources like net and other sources

Universe Universe of this research is Viveks customer of Delhi. C) SAMPLING DESIGN Random sampling is used for research project. I have given equal weight ages to my all respondent and chose them randomly without any biased like gender, age, income culture. D) SAMPLE SIZE 425 respondents has selected as sample size for research. DATA REPRESENTATION TECHNIQUE AND TOOLS Columns chart & Pie chart has used for representation LIMITATION OF THE STUDY The project has some limitations because it is totally based on efforts of individuals. Peoples may be careless and may not give correct answer to the questions, because of so many reasons. It is totally based on personal efforts of individuals. Some of the consumers are unable to understand the questionnaire. Language is one of the worst problem, some of the consumers are unable to understand English. Some consumers are not interested in filling questionnaire.