6/12/2019

Consumer Behaviour
Submitted By: Khizra Saleem
CMS# (401475)
Submitted To: Sir Javed Aslam
 Introduction
Consumer Behavior:
Consumer behavior is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.
It refers to the actions of the consumers in the marketplace and the underlying motives
for those actions.
Innovation:
Innovation generally refers to changing processes or creating more effective processes,
products and ideas. For businesses, this could mean implementing new ideas, creating
dynamic products or improving your existing services. Innovation can be a catalyst for the
growth and success of your business, and help you to adapt and grow in the marketplace.
Technology:
Technology is a body of knowledge devoted to creating tools, processing actions and the
extracting of materials. Technology is also an application of science used to solve
problems. But it is vital to know that technology and science are different subjects which
work hand-in-hand to accomplish specific tasks or solve problems.
Relationship between Technology Innovation and Consumer Behavior
Relationship of technology and consumer behaviour:
The technological trends have changed the consumer behavior lately. Through the
constant growth of the online data everything seems to be easier, convenient and
reasonably priced. Several brands and firms are implementing strategies to draw an
attention in the highly competitive Internet marketplace. A digital trail helps brands to
customize and shape their ads, services and communications to each individual
consumer, creating a personalized relationship that establishes brand loyalty and builds
trust. It is necessary for firms to understand the consumer behavior by analyzing and
examining how e-marketers can influence the outcome of the virtual interaction and
focus on the marketing efforts on elements shaping the customer’s virtual experience.
Every marketer possibly can identify the Web experience components and understand
their role as inputs in the online customer’s decision-making process. Thus helps in
developing and delivering an attractive online presence and therefore provides a
contribution to the theoretical debate around the factors that are influencing the online
consumer’s behavior. Technological trends are the most influential in shaping the needs
and behavior to get connected to a consumer in many ways. Traditional channels have
remained the most dominated over the years and now online streaming platforms and
videos on demand are ahead of the traditional platform. Online viewership has continued
to grow exponentially which is impacting on all age demographics. Social media channels
such as Twitter and Facebook will also be ensuring that consumers can access product or
service information through these mediums. Technology has advanced and everything
around is growing smarter including our homes. Whilst there are major obstacles for a
smart home, different brands are definitely getting excited in terms of operating systems
including appliances and devices which would operate in sync to provide the home owner
a seamless enhanced living experience. Therefore, there are definitely a lot of
opportunities abound for brand partnerships and collaboration in a product market that
consumers are inevitably expecting. Artificial intelligence possibly will take many shapes
and is the most talked concept in 2017. AI guarantees to offer consumers more control
over what brands can connect with them. AI will be the difference maker compared to
other technology trends. The growth of wearable market has impacted several
businesses. Consumers are allowed to track their health activities and diet through
wearable gadgets. This is the first step for many consumers to adopt a healthier lifestyle.
A prediction according to healthcare professional, more companies will provide
wearables to employees in an effort to reduce insurance premiums. Some companies use
data from wearables to motivate employees and give incentives for attaining health goals.
Relationship of innovation and Consumer behaviour:
For decades, one of the key roles of market research has been to help companies forecast
customer acceptance of innovation and of changes to the market mix. However,
traditional market research is in danger of being left behind by new practices in Sales,
Marketing and R & D. Reflecting an increasingly participative approach to customer
relationships, these disciplines are moving towards customer involvement and co-
creation of value rather than innovation mainly generated by head office and only then
tested among customers. Co-creation involves working participative with customers to
enhance the value customers get when buying and using goods and services. It enables
firms to understand and respond to deeper and more valuable customer needs and
reduces the inherent risks of innovation. Nor is this increasing trend towards co-creation
limited to new product introduction. As companies invest in customer relationship
management (CRM) programs, they need to design new forms of relationships with those
directly affected: their customers. As customers use internet-related technologies to
manage their relationships with suppliers, co-creation will become a more important
component of innovation and growth strategies. In this context, traditional market
research approaches begin to look outdated. The authors illustrate how Action Research
can provide tools and methods by which market researchers can assist and improve the
co-creation process with a case study of a dot.com company. The implications for market
researchers and research practices are identified.
Impact of Innovation on consumer behavior:
Innovation is an unsafe business. Commercial R&D often is not able to achieve innovation.
The innovation goals also can benefit from a variety of information resources that provide
the opportunity for technical advancement. A higher variety of information resources
may help companies to enhance their possibility of successful innovation. Thus still
growing enhancements could be mainly opposed. The implementing process can set up
merely following this primary level of resistance has been overcome. Promoters can take
up different techniques to overcome or as a minimum level of resistance and thus fast up
the implementing. The higher choice is inspired by you will of these highly impressive
individuals since they are more extreme and have more beneficial behaviour toward
change. The majority of time innovation level of resistance happens passively. Customers
avoid innovation unique of consciously allowing for approval for enhancements. Literary
works differentiates numerous pushes of this inactive level of resistance towards
enhancements. At first, inactive level of resistance could be a result of actions. The single
most highly effective determinant in producing level of resistance. A unique human
tendency is to effort for consistency and status quo, relatively than to agree to new
actions. As far as the electronic industry is concerned, the innovation is favoured for most
of the time.
Impact of Technology on Consumer Behaviour:
Often a company leadership faces unending challenges especially when it comes to the rapid
technological changes.Since the emergence of information technology, company communication
with its customers took a turn to an unknown destination. Technology has placed the power in
the customers’ hands literally with the internet enabled smart phone and tablets. Note, that
these devices are always being improved such that the newest version offers more to the
consumers, making the previous one obsolete in as little as six months’ time. technology make
an impact on consumer behaviour differently in many ways like Customers are connected
Information technology advancements fuel the connectivity that brings together the world as
one big community, from the smart phones to super-fast data. This trend is not about to change
because now kids as young as 5 years know how to operate a smart phone, LinkedIn even lowered
its age limit to 13years to capitalize on the technology adoption rate. Companies need to meet
the consumers where they are and satisfy their sophisticated needs. If your target market spends
more time on Instagram or Twitter, be present and respond to them on the same platform. Due
to the Technology Consumer expectations have changed in the past, as a company you set the
times that you were open for business, and customers had to put up with it or stay without that
particular product. Technology has totally changed that, with the introduction of e-commerce
and mobile phones, customers can access products at any time. They have raised expectations
on what is acceptable customer service and what is not. As a business, you have to keep up with
the changed consumer behavior or be out of business. For example, if a customer wants to
purchase something online at night and has a query, they expect to get instant answers. If they
do not, they choose another supplier from the myriad available online who can meet their
immediate need. Technology make a major impact on new communication channels in the past, a
company provided customer service through emails –that did not get prompt responses and
phone calls. These two communication tools had their own challenges and favored the company
more; it was at their discretion what information to give out. This age however, is very refreshed.
Social media platforms and live chat place you right in front of your customer; you cannot
sacrifice your customer to maintain your brand position. Actually, when you do not respond to a
query, you damage your brand reputation because that information is accessible to millions of
people. The upside of these new tools is that you have a wider data collection pool; you can fast
track your research and development by utilizing the big data.
Consumer Buying Process:
Problem recognition:
This is often identified as the first and most important step in the customer’s decision process. A
purchase cannot take place without the recognition of the need. The need may have been
triggered by internal stimuli such as hunger or thirst or external stimuli such as advertising or
word of mouth.
Information search
Having recognized a problem or need, the next step a customer may take is the information
search stage, in order to find out what they feel is the best solution. This is the buyer’s effort to
search internal and external business environments, in order to identify and evaluate information
sources related to the central buying decision. Your customer may rely on print, visual, online
media or word of mouth for obtaining information.
Evaluation of alternatives
In this step individuals will evaluate different products or brands at this stage on the basis of
alternative product attributes – those which have the ability to deliver the benefits the customer
is seeking. A factor that heavily influences this stage is the customer’s attitude. Involvement is
another factor that influences the evaluation process. For example, if the customer’s attitude is
positive and involvement is high, then they will evaluate a number of companies or brands; but
if it is low, only one company or brand will be evaluated.
Purchase decision
This is the stage is where the purchase takes place. consumers arrive at this stage based on what
they like the most about a product rather than what they don’t like. At this stage the exchange
process takes place between the buyer and the seller. The consumers may not end up buying the
intended product or not buy at all. The decision is based on the need fulfillment and factors
affecting the choice situational factors. A buyer can change the intention of buying a product of
his choice under the influence of many factors. For example, if John's brother purchased the same
car John has finally decided to purchase, however, John's brother has had a number of issues
with his purchase. This may affect John's choice. Or if one week prior to the purchase of his car,
John discovers that his roof is leaking, he will either have to cancel the purchase process
altogether or choose another option.

Post-purchase behaviour
In this step customers will compare products with their previous expectations and will be either
satisfied or dissatisfied. Therefore, these stages are critical in retaining customers. This can
greatly affect the decision process for similar purchases from the same company in the future,
having a knock-on effect at the information search stage and evaluation of alternatives stage. If
your customer is satisfied, this will result in brand loyalty, and the Information search and
Evaluation of alternative stages will often be fast-tracked or skipped altogether. On the basis of
being either satisfied or dissatisfied, it is common for customers to distribute their positive or
negative feedback about the product. This may be through reviews on website, social media
networks or word of mouth. Companies should be very careful to create positive post-purchase
communication, in order to engage customers and make the process as efficient as possible.
Technology in the context of Pakistan:
Technology in Pakistan is a growing and rising, which has the potential to expand even more in
the future.consideredable progress has been made in the recent past to implement and enhance
fiber optic connectivity in all parts of Pakistan during the past one year fiber optic connectivity
has been increased from114 to 158 cities it is targeted to reach 300 cities by the end of the year
2010.activiation of the alternate fiber optic backbone from Karachi to Peshawar providing 622
Mbps connectivity is targeted for completion by June 2002.this will be in addition to the existing
fiber backbone that is to be up graded with dense wave division multipixeling technology thereby
increasing the capacity from 622 mbps to 10 GBps by January 2003.Athough we started in late
80’s Pakistan has already become to contribute respectable share in the firm of information
technology worldwide especially the last decade has proved very significant in the grooming of
IT industry in our country. The information technology burst has provided Pakistan a dream for
future in which IT can be used to improve the standards of our people. It can help us develop our
lives better by tapping the common benefits of the internet and it can also aid to move further
than the digital divide to digital opportunity. Government of Pakistan has been taking deep
interest in making the IT industry of Pakistan a strong one. In this regard the federal cabinet
passed national IT policy in august 2000 according to which Government will act as enable to
produce an It based future economy. There are number of important features in this policy like
human resource development IT infrastructure development efficiency and transparency in
Government improve services to citizens simulate the domestic economy and increase exports.
They are also employing IT to improve the speed of communication and keep track of its
performance.
Innovation in the Context of Pakistan:
Consumer behaviour in the context of Pakistan:

Risk in Technology and Innovation on consumer behaviour:

Challenges in Technology and Innovation on consumer behaviour:
The most common challenge of technology and innovation is institutional inertia contrasted
against an improperly designed accountability system. Basically, what happens is that an
executive comes in and decides to host an innovation initiative, and maybe that executive even
garners a fair amount of interest. But two, three, or four decades of institutional design create
incentives that run wholly counter to the conditions that actually reward innovation: short-term
growth, risk-and-failure aversion, distance from the customer and customer experience and
other. Innovation can't be an initiative; it has to be a full-stack approach. The main challenge
might be that innovation cannot really be 'shrink-wrapped' and 'delivered', but a true innovation
is decided by the market success, and thus, the customer adoption, which is often hard to predict.
Market-reading innovation strategies just give you what everybody already knows, while needs-
seeking strategies bear a higher risk of misreading customers’ desires. Purely technology-driven
innovation tends to be short-lived and very volatile when it comes to customer expectations in
the rapidly changing technological environment. So, having the right balance, expectations,
mechanisms, and culture to construct a company-appropriate innovation portfolio might be the
biggest challenge for sustainable innovation delivery, especially since it requires to take a long-
term view on corporate innovation. At their core, corporations and startups are very different,
so often, the biggest challenge is figuring out how to engage. Sometimes, corporates work with
startups as customers, partners, or even mentors/advisors. It’s also difficult for corporates to
identify the right startups, and that’s where accelerators like Mass Challenge come in. We act as
a filter and matchmaker for more than 100 corporate partners across all of our programs. Many
challenges still lie ahead and form a complex matrix that goes beyond technology, innovation,
and invention, to include social, economic, political and geographical dynamics. An important
underpinning element is to stay the course for your stated purpose, providing meaningful results
that help the collective organization reach its goal. In the case of Telstra, we are creating a
brilliant connected future for everyone, by executing to our vision to be a world-class technology
company that empowers people to connect. The shelf-life of innovation momentum: It often
starts as an executive call to action but with the rapid changes in every company - and
corresponding executive turnover - it doesn't get sufficient time to get properly developed,
integrated with the overall corporate culture and processes, and given the luxury of
demonstrating success possibly only in the long run. Often innovation efforts don't survive,
therefore, aforementioned 'danger zone’. The speed of technology-driven change: It creates
immense acceleration of customer expectations often fueled by hype rather than true need,
however, making it challenging for businesses focused on meeting customer expectations to
adjust to technological change fast enough while applying appropriate due diligence in the
process. The results are technology-focused, half-baked value propositions that don't integrate
well back with the core business and its core capabilities, nor do they truly address customer
need, consequently leading to even shorter shelf-life of 'innovations'.