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INSTITUTE FORIIGNTITADE OF ANDMANAGEMENT DcpartnrcntMrurngolncnt ics of fitud MBAThirdSemester - 2009-2010 Session: lhnk 0Sc,,rtioq l'npor Codo : MIIA-034 llrpcrT'itlc : Cionsumcr lScltrvior Mar{cting and Cornrrrurricltiorr Instructor : Ms,Madhulika Gupta. decision Q-l ExplainConsunicr making process. Also cxplainthe importance of aonsumer behaviour. the of Q-2 Explain proccss consumer information acquisition. arethe various What sources through which infbnnation bcucquirecl? nlay Q'3 Difl'erentiate between consumcr resetrch markoting and research, Explain the consumer research process. Q-4 Whutis the dilfercnco hstwccn prinrary soconcllry uncl rcsearch? undcrwhat circtlmslanccs might the availability secondary .of data make primaryreseaich unneces$sry? or08om0 whut nujorsourccs nt'sccorrrllry tlirrir/ the Q'5 wh.t are various .ncr pr's c.rrs o|currs.'cr rcsc'rcrr,/




lNfil'l'l'tj'l'lll tioluttcN'l'll^l)lf olr ANl)MANAGRMnN.[
Dcpnrtmcnt Mrn:rgclnent of Sturlics

Papcr Codc PtporTi(lo Inctructor

: MBA,034 : consurner Ilchavior Mad<cti,g urrcr corrrrrrrrrric:ir(i'rr : Ms.Mudlrulikir Guntir,

MBAThirdSemester - 2009 Sr.:ssiorr: -20t0 Workshee.t: l

explores c'mpany's the franchisi,ig nnJ^,,,;;ffi,u initiatives, Thecase discussos measures also tire trtt.,o,npoiry-i..n rlrcct threat t, the of ncw tcchnologies i'e', c'groctinp sMS a'cl grr*ii,rgr, iri.irry, cirsc rhc ,rirrurr.r'iirc pr'blcr,s faced the oompti,ry to a revamp by Ju. of its cli,stribution ffii'opcr.utions. anJ It also explores futuie the plans
of thecompany thelightol'thcabove in developments. A Company Troublc! in In February 20a2' DelhiHighcour"t he clisnrissecl.an application iniunction fur leading grccti,g f.iled Indian by

Introduction: The caseexamines growth the of Archies,leaderin the Indiansocial expression industry' It

-"".., subsidiary online.im i" Archies Lil. hi,r-2000.

onvarious li.onts were other trrat onitsperlbrmanoc' rat.-lgqbs,l-.ur,t, taking to, a In the rr.r*ii.'v.,y'iup,,r,,,,, Arorrics rbrcccr launch ownc_grccrings was irs to *.ili.; ;;1;;;;ffi.:;,i,j,rrrurgrr

.,1", ,r,thc co,ntry. busincss has our bsen'fl'Ected rrt'irituiir*l1r1r pr,*, scvcrcly"' oftho irriurrori'' 'irrr0,r rirrtr 'ppcnr thecompany f{ing a host n was wrre,rr "rpt"'ii.*s irs wholty ow'otl

ctt,tun,igitii,o,npuny, ijr,cctirrgs 'l'hc Archics & ciii; ilj, lrt.crrics;, conLpilry wurttcdstoll a ,t,r.t',t, |cstnrirr lfirrrlrr lirrrtlirrrrcrr(irlist tlrcsliiv sena. vish'"va thc poii.ri,J Hinitrr (vi-tp) rr,.'ii,,;,;;;t)irl- ti.rnr,rrruDs tintrif.ring on,r Valentinc's celcbrations ,u1", in thc Day ancl pru,noti''s i't,,1,,,ru,.,,,,r's i' a'cloutlets., Archies theapplication filed l'earing thegroups va'crarize that wiil their hadin Februarv outlets they as zootJ tn. Coui', a.ririoi rrr*r..d Archieslnanagement, disruptionbusiness valentinr', of for a,y on Doywould transrate huge into revenue forthe company, rosses Director "Eurry;;;';;;*r. vijayanr chhabra ,uid,. whathappened year. ouroutlets targeirirrtar'rrri rasr were i1 o.ttri

,r,c porrar ,,8_ c'mmerc,was n't happcrrirg r'r,,,," ,ir, u, ,rpLi*,t ,,,rct comnrenrcd, or,," fbrthcorning' wantei'tu 'crs wcrenrsonot we inJr*ur*',,u, ,rurrruc cirargirrg u'cr us.rs thcsorution.,, Asexpcctcd, w*s a Iargc nuntbcr ,,Lii" trlo',rrrrriu,i ,"gir;;;.;';i, sru,;rcd usirrg sc.vicc, rhc "we..have Ariaadmitted' su1l'erecl mas111e in our clr'ps became paid user a site." .aJiti."l"'tir. probrems, registcrcd base since In we t;ril;r, initiatives convert network franchise.e into of to ogtlets tonifuny-owned its outr.t*iii4it, distr.ibutor ca*ying forwartlir$2 and setup a into {catt t-,il;.re prov.i'g Asa result'2000-01,'*,;iil;;,lil"i'; to bc-,i.r.jor. onitsii;ances. burdens in

However, late 20!.r^, company by the madearchiesonrine.c-orx Da*ab (Aria), youhan A'ia chier;ofli*,ffirr1i.;,il'l;;;rn.-i,,,. a paid service.

iill-fi#;illyenr ,isto,y, il,,rrnn,pnny



experienced a n€gative growth. Turnover declined Rs710million lggg-2000 from in to Rs680 million 2000'01, notprofits thcsurnc in while lbr pcriocl clcolincclaround by 32% fromRs 130 millionto Rs9l million.3 Archies' market sliare remained 45% at between 1998 2000'Analysts and remarked th. cornfany's that leadership status theIndian in greeting andgifismarket card seemed bedoing no goodiri increasing market to ii its share sustaining tability. and profi Background Notc Archies thc bruinchild wus ol'Dcllti-busecl Moolclrlrrdarri wSosc Anil (Arril), liurrily business sollirlg wus suris, tlrclltu 1970s, dccirlcd.lrrry scrll Irt (o hc irnrl good-r1u'lity posters through mail-order catalogs, advertised of thepupulo, in one n.,ogo"i'n*those in days' sun'whenthedemand incieased; started he g.uingposters ol'film stars, natural sceneries othersubjects intelest,. and of printcd localprinters. avid music iy An enthusiast, decided sellbooks Anil to containing of hit English lyrics songs addition in t6 the posters' wrote'down lyricsor rJngr lle the ltimscrt' whilepluying themon u gramophone'began sellsongbooks He to contoinlng iiirlyri.r.ir,ri, ilrrf groups such asABBA'Beatles BoncyM. and donrrrrcnting cxpcricrroos, sAid, ,,1 on iiis A'il woulcl spend hourq listening a sound to track, meticukJusly truurri,,ti,,g which lyrics were initially incomprehensible, sowhen finallymanaged selltheentiie we to lot to a n uri, shop in chanakyapuri,were excited we so we-courd barely contain emotio's.,, our As customer awarcness increased, he coming withsongbooks out containing hits of a particular undhe *ur'*rnfart;f year sclling ;;;;: iido oopir.rs yenr, por Anil thon dcsided cntcr greeting hirrinc,rs, to lhe urrds l'feobservcd ilt htdiu, tlrut cut'tls wcrctypic.lly srkl ,rrr ,l'tlrrsryslrrcS,xr.:s 'Ilirthday'and'Anniversary; rrr'rkctl kr:pt tlic,o'nu's in ol'sratiorrcr.y ln 197(),A'il slr.,s. urrcl brother 'is Jagdish Moolchanct*i'rlugllrr'rl g.rlar.r,,iir 6iii; & creetings, regisrered a partnership as concern starting greeting iire uurl,r.rr.The name .for Archies chosen Anil took, fancy a neilhbor'r cards was after a arg ".rr]irchie. During visitto 1i a south Bast Anirwus Asia, imprcssr;d ;iil;

offering good ambience soft and backdiop "rn. "*ti,,g ,ur,tshops music. said, .uri'rtrois He there rik.a Raymo'd *.r. orBata showroom If wehacr hcre' toi.tuit, rrr.r *. tiruuJi,,rruprL Hedcciderr shop.,, tryoutthis t, ctlrtcept in lndiu wcll, us whictir.,r tr,,ru|,,rrr, lirst t, ,r'thc ALchics, in Delhi 1984, in outlct named'Gift Cuflrry-l,""
The StoryBehindthe Success According analyst-s' to Archies'franchisee modelcontributed greatdealto a Bharat its success. shah, chiif


Investmert ori"rr, nirracapi[i'l].,r-,"0,r1r "The fund keyto understanding said, etrrrirrll.o realizetr*tlr'rrt in rhe company, ii businesscartls gilh, inli,firchi,tsunulrugolrrclrl,,, bf trul or
"wc Anil agrccd' lnadcour .wn mddel sui(ablc r'crilur firr concJitio's. crcatecr branded wc franchise' a Now the tttnorlu"trus clra'ged ruJiua,crevcrybocry i,r franchising' we werethefirst tarks But about to aolnatkinj oi;i;fi;, ilrenwentin for tie-ups as to get a greater so rafs! to support thesc storcs bccausc thcscwcreoxclusivc commentins oe-cisioo storcs,,, 0nthe i6rpiror

.r" nr*rtiriril;;i; ftonr very rhc beginning,


Anil said,"You don'thavemallsin Indiaso we haveto manage limitedarea." in By franchising, Archieswas not only able to suvc ou ruul r.:stute costs,but slurc thg Archies advertising promotion nnd expenditures franchisees, with franchisees their made own invcstrncnt thc busincss prrid in untl gorrcrutcd rnyulty Atclrics tlrotrrrnover lirr to products... fiomthesale o1'Archies Tackling B-Greetings the Thrcat Archiesonline,comthree had major sections' greet gili. Under'meet,'Archies mcet, ancl offered services suchas freee-mail,chat,reminder services, a greertings and scheduler. T'he'greet' section wasa consunrer intcruotiorr whcrcrcgistcrccl arca custonrers corrlcl send receive variety animated and a of e-cards/greetings fbr free. online Over700programmed e-sards availablc, whiolr wcroclritcclill'crent thcusual li.onr cards available the Internet these on cards an average had cightscoond longstoryli'ewith animation sound and effbcts incorporated them, the'gili' secticll, into In cilsuptersoould purchase andgetthemdelivered theirdoorstep gifts at Whileresidents Delhigot freedelivcry theirpurchases, of of customers other in parts ol. thecountry to payRs 25 asdelivery had chargcs, minirnurn i'he value each of pirrchase waslls 250, Archics up withcorrricr - lilbcc11dlJluc ticd ootttpurrics Dlrt to cl'livgr t10 'l'hc gilisnndOflrdli purOhrtsctl by crtstotngl$, cornplny rrpwirhlilsy NctCor' lirrtlro tictl payment gatcway,.. Ilationalization Wrong,l Gonc THE DISTIUI}U'I'ION ITIVAMP During financial the year 1999-00, Archics cJccided rcvanrp distribution to its network a n d r c p l a c c xi sti n g i stri b u to l ,y a C&lr ugcr r r r ctwor ,li, d rs t Accr lr ,4irt,- tlr c ' cw g distribution systcm, placc in ol'6tJ iistritrutors i,i2l ,t,,t..,r, Arohics appointccl c&l; l0 agents l0 states catercd clistributors in tuln in whcl to who rcuclrcd tn thcrctailcrs. out Manish Jain,company Secretary, Archies, said,"'l'hebiggcst aclvantage thisrnodel of is that the company ownsthc invlntory,so the ,onrun',.r"f,!.nsured of seeing entire the products rangethat is availablc," in.ths *,,rtirt'rciirp, Archies haclto"accept the distributors' decision whenthey picked. only those'ioducts, up whichthey believed would do

couldnotmalch pacc the with rvhiclwo i'troclucccl pr.rducts wit6t6cir and limited rosourccs dill'icult. it was Nowwiththcc&lr ug.,rt, cxclusivc ,,,,,1 outlets 0a' wc at least continue revamp product to our portfblio...,, TheRetailRevamp

well'Asu result, Archics rrot oould pusn .:.'iii* iis range proclucts the of into retail Rfliesh syal,Mlrkcting Mariagcr (wcstcr. .chimnel, ltcgion), Archios, "Distribution saicl, .

Paprlr Rosc ShoppL: a 0n

In 2001, Archios began an.'cxolusivity clrivc,' *uy ol'whioh cxisting all !I 0allcry lrilnchis0ss nskcd kcr;p Arcliie* ,l'p*rclucts, Archics were tt ,rrly r,1,'i* lf tlrqy not dicf want beanexclusive rhcy givc,trre to ourler, wcrc ,pti'I,,r;rJ;;;;il; il,r';,iArcrrics 'non-cxclrr,sivc'

Theideawasto haveonly Archies Paper Gallery Archies and RoseShoppe the as completely frlnchised outlcts, u part thisoxuroisc, sirops rcvuntpcd As of rnlrr.y wcre und somc ovcn to b0shut had down, Archies hclicved hcing diroct thnt in oontact the with 0u!tt0tll0r ltclp will ulJcrli tlcllilurl llrc prodrrct urrtl rctlrrirrrrrrcrrls ol'vlliorrs lirrus, lurvc better inventory managemcnt produot systenrs. ucldition, company and mix hr thc was plalrnirtgittcrcase rtunrhcr also to llrc ol'Visiorr storcs a lnr51e . The orr 2000 scale Vision 2000 stores weremuch bigger thananyother Archies rctailoutlets according and to company sources, brought 40% in more revcnues wcll,'l'hose as stores world-class had interiors stocked thcproducts and all rnarketcdthcconrpany... by 'l'lrc ltulur0.Slrllling ltocut 'l'hc Moolchandnrris that distritrtrtion rctlillevlnrl) bcliovcd (lrc lrrcl cxcrciscs yicltl will positive rcsults alicrthetransitit-rn Archics phasc. dcciclccl lbcus tu nlore t6cgills on

segment, it believed as the segment was under-exploited, company The planned to develop introduce and new linesin the gift segment including higherend'items, which werelackingin the present setup. The ideawasto makean nrchiesgallerya 'onestop gift.shop'for people from all walksof life. The company alread|begun had importing high'end articles gift suchas orystal, toysanct soli FlngShuiitems h.onr-Chi'u, Flong

Kong Kores udditionoutsourcirrglocnl and in lo fionr vr,rxkrr.s,,, Iur cs: u

Idcntilythc stratcgics lrclpccl that Archics er)rcrgc rcnrain leaclcr ancl tlrc in

thc industrv.

Ol'loclivo (luottionr T,vnJr
Fillin t h eb l a n k:s

is the personwho first recognizes needto buy a productor a brand.

(a) influencer (c)decider

(b) initiator

2.|;:ar deodorants, markctcrs using arc
(a) Informational

bc:ncfjt inllrrcnccr. (b)utilitarian

(c)value expressive

3' A prtlduct whiclt a neccssity cirrrrrot sccn othcrs is and bc by slroull lrdvcrtisccl lre on



{ 1/

,/l / F

(u)rationul benefits
(c)emotional betrclils,



arethe lastpeople adoptan irurovation. to

(a)Latents (c)late majority



is a form of temporary involvement

(a) situational involvement

(o)rioky involvemsnt

(b) persistent involvement

6,For houschold produots
sol rnlgcis irrrptirtlrrwhi lc,1rr lli t rr.clrirsilrg (b)social

6,ilhe Ps marketing are 4 of mix (a)Packaging
(c)Physioal disrribution 7. Promotion alsocalled is i -

(d) l'coplc

(all,Iarketing Communications (c)Publicity
8. 1

(b)Sales promotion (d)Itrcc pricc olls.

is thebuying behaviour ol,flnal consumers,

9' which step thebuyer of decision process immediately precedes purchase the decision? l0: Another termI'ora motive(especially it hasbecome after aotivutccl clirccted) _ or is

I l. Basic needs ashunger thirst called such and are

whichstep ol'thebuyer clecision proc.ss irnrnecliatcly plcecclcs llurc6asc thc dccisio',i


u has ctuscd conflict, is ,f 14,If consurncr clisctlmfort bypostpurclrime lheconsumcr exPenenclng / .-*15, With respectconsurner to behaviour, cenl.ral thc question rnarkctersHowdoconsunrers lbr is: regpondvarious to markcting efforts oompany use? the might (True/F1lse) 161 AcoordingMnslow's to llierarolry Ncecls of struclurc, scll'-uoruulizutionure ngcds sntisliod bcforc esdeem ('l'ruc/False) needs, l7''The step thebuyer first in decision processneed is recognition. ('l'rue/fralse) go five in of .18'consumers through stages theprocess adoptingnew a product. firststage The is called initiarion. (True/False) l9''fte fift step thebusiness in buying processgenerally is thought to dgflrnption occurs. (True/False) beone where general need

201 considering types the ol'buying situutionsbusiness in buyirrg, stLuiglt thc rcbuy ollc' involvcs mgre decision participants does than the,moclified (,l.rue/rrarss) rebuy.




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