Consumer

Behavior

Assignment
 Impact Of Consumer’s Behavior On The Newly
Launched Brands
There are many factors involved while buying a product and once a purchase is made the consumer rates
the product accordingly to its need and the end result that he or she expected, whether the result is
achieved or not if the result is achieved this leads to repeat purchases if the product under perform then
this can lead to one time purchase only.

Once the loyalty factor is involved in buying process then its hard to guide one’s mind
towards another product or a new entrant product because there are many links attached to it that the
consumer hardly know about the new product so he hardly try and get the new product unless and until
the company creates its distinct or an image of their own In the market that separates them from the other
available products.

There can be some of factors that can have negative or positive effect on sales of new product

Brand loyalty
Performance and uncertainties
Switching costs and affective uncertainties
Lets suppose a company identifies a totally un identified market and design a new product for it that no
one is aware of, then the company conducts a marketing strategy to create awareness, When the customer
have enough knowledge to make a buying decision the uncertainty factor jumps in to the ground and
starts a thinking process in the mind of customer that what would be the benefit that he will get and what
will be the cost that he will have to bare while acquiring and using it will it match the expected comfort
level if it doesn’t match the expectation what I am going to do with it, All these stimuli’s guides the
customer towards a late decision and sometime deprives making a buying decision.

Incase company identifies a new market segment that they might think is not yet been
served and worth investing in it due to its high attractiveness but they might fail to understand why this
slot is still empty in this intense competition era, After evaluating the market if the company launches a
product as they found about the needs of customers and all of sudden after launching they come to know
that they respective customer is not in a need of our product and he can fulfill his needs through other
alternative products already available and this market segment was not in need of a exclusive product.

Consumer’s norms and Beliefs

NORMS
Social norms have been recognized as an important influence in long-term relational exchange between
firms. It is here argued that social norms are equally important in short-term discrete exchange that takes
place between firms and consumers. The norms of consumer exchange are, however, of a different kind.
To clarify the difference, a classification system is presented. Based on the classification, the social norms
of discrete consumer exchange are defined and a method of quantifying these norms is proposed. This
method should help in the ongoing effort to understand how the social macro-environment influences
individual behavior in dyadic exchange. Gregory Gundlach, Ravi S. Achrol, and John T. Mentzer note a
recent shift in the marketing research paradigm toward a concern for the social determinants of economic
exchange behavior. As they point out, this shift requires the analysis of often ambiguous concepts. One of
these concepts is that of the social norm. Marketing researchers have recognized that social norms are a
valuable explanatory variable. Their influence has been depicted in marketing models, tested in relational
exchanges, and cited in the marketing orientation literature. The focus here is on the social norms of
economic exchange, a subset of the social norms of a given society. In economic exchange, the
investigation of social norms has considered primarily the norms of long-term, relational transactions
common in inter-firm exchange. Little research has considered the social norms of the more short-term,
discrete transactions common in exchanges between businesses and consumers. However, Patrick J.
Kaufmann and Louis W. Stern suggest that norms exist in all exchange behavior, from very discrete
transactions to highly relational exchange. The identification of the social norms of discrete consumer
exchange is important to the understanding of the social structure of markets. On a practical level, it also
helps marketers minimize consumer hostility

BELI EFS
Basic to an individual's values and attitudes is what is often referred to as a belief system which
"represents the total universe of a person's beliefs about the physical world, the social world, and the
self" (Rokeach, 1968). Certain types of beliefs are viewed as being more central or principal to the
individual and thus more resistant to change than are other beliefs because the former are more
directly related to the individual's self concept and/or social consensus than are the latter. In
addition to being more stable, the more central a belief, the greater the repercussions throughout
the belief system which result from a belief change. The way in which an individual's beliefs are
related to personal conduct, to end-states of existence or to goals is through the expression of
values. Values are abstract beliefs which are not directed toward specific objects or ideas. The
function of values is that of providing standards relating to modes of conduct, evaluations, and
goals. As a result, values lead to a