Professional Documents
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ON
Submitted to
(P BALAKRISHNAN MENON)
RAJAGIRI VALLEY
KAKKANAD, KOCHI – 39
DECLARATION
I, (MEGHA ANIL), hereby declare that the report entitled (Factor Influencing
Consumer attitude towards Direct Marketing and Purchase Intention) is a
bona fide record of the project done by me at during the period from ((APRIL
i1ST i2020 iTO iMAY i31ST i2020)) as a part of my MBA programme at
Rajagiri College of Social Sciences (Autonomous), Kochi Kerala.
The study has been prepared in partial fulfilment of the requirement for the
award of the Master’s Degree in Business Administration during the academic
year 2019-21.
I also declare that this report has not been submitted in full or part thereof, to
any university or institutions for the award of any degree or diploma and that the
plagiarism reported in this study is within the acceptable level prescribed by the
Institution
I would like to express my profound gratitude to all those who have been
instrumental in preparation of my term paper. I wish to place my deep
gratitude to my guide ( P BALAKRISHNAN MENON), for the guidance
and encouragement offered to me on the making of this report.
Lastly I would like to thank God, my parents and friends for their constant
support and help.
MEGHA ANIL
ABSTRACT
This istudy iis iconducted ito iidentify ithat ito ishow ihow idifferent iin iconsumers'
iattitudes itowards ithe ithree icomponents iof imarketing iaccounts ifor idisparities iin
iintentions ito iget idirectly imarketed iproducts, ito iidentify ithe idifference ibetween ithose
ithat ifrequently ipurchase idirectly imarketed iproducts iand ipeople iwho idon’t iand ito
iidentify ifactor iinfluencing icustomer ito iget ithrough imarketing. iThe imain iobjective iof
ithis istudy iis ito iknow ithe iacceptance ilevel iof idirect imarketing iin iIndian imarket iand
irelationship ibetween ithe ibuyer iand ithe idirect iseller. iSo ifor ianalyzing ithese ipoints iI
ireferred iseveral iresearch ipaper irelated ito idirect imarketing iand ithe iconsumers
iattitude. iAlso ipaper ibased ion ithe ivariables itaken iin ithis iterm ipaper. iThe iresult ithat
iwe ihave ito iidentify iis ithat iwhether ithe iconsumer iare ihaving ia ibetter iinteraction
ibetween ithe idirect isellers iand iis ithe iconsumer iprefer ito ipurchase ithe igoods ithrough
idirect imarketing. iAnd ifinally ithrough ithis iterm ipaper iI ihad ifound iout ithat imost iof
iconsumer iespecially ithe iwomen’s iprefer ito ipurchase ithrough idirect imarketing iand
ialso iit ibecomes ieffective ionly ithrough ithe ibehavior iof ithe iseller. Thus, the study on
consumer attitudes and customer purchase intention and satisfaction towards direct marketing
makes an attempt to find result for different functioning problems in direct selling
commercial.
1. INTRODUCTION
1.1 TOPIC
1.2 BACKGROUND STUDY
1.3 PURPOSE OF THE STUDY
1.4 ORGANIZATION OF PAPER
2. DESCRIPTION OF TOPIC
2.1 CONSUMER ATTITUDE
2.2 DIRECT MARKETING
2.2.1 DIRECT MARKETING IN INDIA
2.2.2 CHALLENGES OF DIRECT MAREKTING IN INDIA
2.3 BRAND AWARENESS AND CONSUMER PURCHASE DECISION
2.4 CONCEPT OF COMMITMENT AND TRUST
2.5i PRICING iSTRATEGIES
2.6 PRODUCT iCHARACTERISTIC i
2.7 FACTORS INFLUENCING THE CONSUMERS’ BEHAVIOUR
2.8 FACTOR INFLUENCE THE CUSTOMER SATISFACTION
2.9 RELATIONSHIP BETWEEN INDEPENDENT VARIABLE AND
DEPENDET VARIABLE
3. DISCUSSION
3.1 FACTUAL REVIEW
3.2 PERSONAL ASSESSMENT
4. CONCLUSION
5. REFERENCES
Factor Influencing Consumer attitude towards Direct Marketing and Purchase Intention
1. INTRODUCTION
1.1 TOPIC
• To identify the difference between those that frequently purchase directly marketed
products and people who don’t.
• To identify factor influencing customer to get through marketing.
As indicated by Philip Kotler, Direct Selling is the advertising of items and administrations
legitimately to purchasers in an individual to-individual way, by and large in their homes or
the homes of others or different places from perpetual retail stores.
Presently a-days this type of selling is progressively well known in the market since
advertiser gets immediate reaction from the shopper and there is no middle person in this
structure. So purchaser gets item and administrations straightforwardly from maker. Direct
deals regularly happen through clarification or showing by salespersons typically alluded to
as Immediate Venders. Prior to presentation of web, the immediate selling organizations
making their introduction to the client with the assistance of sales reps who give the
immediate show of the item to client and make introduction up close and personal. Sengar,
M. S., Srivastava, P. K., & Dubey, R. (2012)
Direct selling, also known as multi level marketing (MLM), network marketing, or referral
marketing, has become an extremely popular sales model across India in the last few decades.
Unlike its retail counterparts, in direct selling, products are sold to consumers through
demonstration, usually at the consumer’s home or office, and not at a retail outlet. Direct
selling can be undertaken by anyone regardless of age, gender, educational qualification, or
experience level and is largely dependent on the communication and interpersonal skill of the
direct seller
(also known as direct selling agent). The success of direct selling lies on the direct seller’s
ability to create a personal connect with the consumer. Moreover, direct selling provides the
option of working flexible hours (besides working regular jobs) enabling housewives,
students, and small time job workers to pursue an additional career without much of a hassle.
It can be said that the direct selling has been encouraging self-employment among people for
years now, something the current Government is pushing to achieve through Stand-Up India
programme. No wonder, the direct selling industry in India has seen such rapid growth in the
last two decades. While global players such as Amway, Oriflame, Tupperware, Q-Net, and
Herbalife have become household names, homegrown companies such as AMC Cookware,
Vestige, and Modicare are not too far behind. The 2016-17 Annual Survey Report of the
Indian Direct Sellers Association (IDSA) states, “…the direct selling industry in India has
grown at a CAGR of 8.42% over the period 2013-14 to 2016-17 when it has grown to INR
1,03,242 million (INR 10,324.2 crores) in 2016-17 from INR 74,722 million (INR 7,472.2
crores in 2013-14). This can be accounted to the growth in the number of Direct Sellers
involved which has risen to around 5.1 million in 2016-17 from 3.9 million in 2015-16
showing a robust growth of 30.1%.”
Regardless of the incremental growth in size and employment figures, the direct selling
industry is not exactly a preferred sector for policymakers in India. In fact, the industry has
often been criticised for exploiting customers’ naiveté and disregarding business ethics.
While all allegations cannot be baseless, a majority of them are believed to be mere hearsay.
The general nescience towards direct selling can be attributed to four basic reasons.( Šerić,
M., Gil
Saura, I., & Mikulić, J. (2016)
First, the direct selling industry lacked any regulatory directives in the past. Add to this the
poor level of understanding of the direct selling model among law enforcement agencies,
judiciary, and the media. Although, there has been a gradual change in the outlook of
policymakers and judiciary towards the industry over the years, the understanding among
junior level officers of law enforcement and the media is inadequate.
Second, there is a common misconception amongst the general public that all direct selling
operations are pyramid schemes and/or Ponzi schemes. This notion is in fact in tandem with
another age-old business in India, which is chit funds. It is to be understood that both direct
selling and chit funds are perfectly legitimate business models which operate under stipulated
guidelines laid down by their concerned regulators. However, in the last few years, the
unfurling of few scams has led to both these businesses blaming the other. Few of these
include the SpeakAsia scam, Pearl Agrotech Corporation scam, Saradha Group scam, and
more recently the Social Trade scam in Noida. Although, further investigations revealed that
these frauds were actually carried out by fly-by-night operators disguising themselves as
direct selling businesses, the direct selling industry bore the brunt of these incidents. The
public mistrust on direct selling further accentuated by various media reports that were
published without probing the veracity of the nature of these scams.
The third reason could be the fact that the direct selling industry doesn’t meet India’s
traditional norms of conducting business. Even though, the concept of street selling and door-
to-door sales has existed in India for a long time, the pay and compensation structure of direct
selling is an entirely new concept for Indian consumers. The direct selling industry doesn’t
really follow the traditional concept of monthly salary and wages, and pays through an
incentive structure depending on volumes of sales by a direct seller added to a percentage
from the sales of direct sellers introduced below him or her. This anomaly in the pay system
is uncommon to the average Indian psyche, and has often turned into a point of contention on
non-receipt of the expected compensation and bonus. Moreover, on joining a direct selling
business, most direct sellers set unrealistic targets for themselves, both in terms of sales and
introducing new participants. On most occasions, these targets prove hard to achieve. This
leads to severe disappointment among direct sellers, prompting them to label the company’s
operation as a sham and register complaints with the local law enforcement agencies. The
lack of understanding of the direct selling business model among law enforcement agencies
often leads to booking direct selling businesses under haphazard laws and arbitrary clauses.
Moreover, since personal incompetency is not a befitting ground for claiming compensation,
most complaints are linked to organisational pay policy and is further coupled with the
infamous Prize Chit Money Laundering (Banning) Act of 1978, (commonly known as
PCMCS) to fortify the case.
The final and most challenging aspect for direct selling operations is the industry itself.
Regulatory and policy reforms aside, it would be unfair to say that this industry has always
been clean in its operation. The direct selling industry has its own set of operational flaws,
many of which still persist. A series of problems ranging from a feeble customer grievance
redressal mechanism, inconsistent compensation, and refund policy, and mis-selling continue
to hound the sector. Since direct selling is largely dependent on word-of-mouth, chances of
even an odd instance being escalated is enough to give the entire industry a bad name.
( Jobber. D and Lancaster. G, (2019),)
The regulatory challenges to direct selling have been resolved to some extent, with the
Department of Consumer Affairs, GoI releasing the direct selling guidelines in September
2016. In the last few months, many states have adopted these guidelines and issues their own
guidelines while others are in the process of doing the same. However, merely adopting
guidelines will have a very limited impact on this sector which needs some serious policy
reform.
To start with, the Union Government should consider including direct selling as a channel of
sales under retail rather than terming it as a business. It is to be understood that with evolving
times retail doesn’t encompass just “market and fair”, as defined in the State List of Seventh
Schedule of the Indian Constitution. Instead, it should include various formats including
direct selling. Since a consumer doesn’t differentiate between channels of sale, it is only
common sense for the Government to follow the same principle. The Government of
Telangana, which is currently drafting a uniform ‘Retail Policy’ for the State, is considering
bringing all channels of sales under one umbrella and create a level playing field for all
segments. Perhaps the Union Government should consider replicating this model to create a
Central Retail Policy.( Ibujés Villacís, J., & Patiño Galárraga, M. (2017).
Second, to control the problems of fly-by-night operators, the Government should ensure
registration of all direct selling companies with a single authority. A closer to home example
would be of the chit fund industry, where fraudulent operations were drastically reduced once
all legitimate chit fund businesses started registering with the chit fund registrar of the
operating State.
Third, the PCMCS Act must be amended to clearly define the nature of cases that can be filed
under its ambit. These cannot include regular customer grievances. In fact, a separate
customised grievance redressal cell should be created at a central level for customer
complaints with a stipulated turnaround time.
Fourth, the industry and the Government should jointly discuss the proposal to create a self
regulatory organisation (SRO), something along the lines of Association of Mutual Fund
Companies (AMFI) for mutual funds or M-Fin for microfinance. With the creation of an
SRO, the industry can be better managed by creating standard regulations and best practices.
Fifth, it is high time that industry comes together and starts addressing its internal problem.
The industry must understand that due to past instances it inherently runs a reputation risk
and needs immediate corrective actions to avoid further damage. The industry must
collectively work to turn around the general psyche around direct selling by spreading
awareness about its business model among public, media, and law enforcement. The industry
needs to take further corrective measures to put an end to fraud in the business. To begin
with, there could be a common database to track fraudulent direct sellers. Further, the
industry should also look to address the issues of customer grievance by putting in place
better grievance redressal mechanism.
The direct selling sector had been at the receiving end for many years, but has gradually
evolved over the years. It has the potential to be a major driver in pushing growth and
generating employment in the economy. In fact, not just employment but direct selling can
also address the issue of improving the female labour participation, which is currently a little
above 30 per cent as per World Bank’s report on female labour force participation in India.
What remains to be seen is, if the policymakers are willing to give the industry a chance.
( Arindam Goswami, (October 2018),
According to Indian Direct Selling Affiliation (IDSA), there are in more than 200 direct
selling firms working in India and therefore the majority of them are little and territorial
players. The organizations represent over 60% of all products sold through direct selling
course in India. The immediate selling firms are transcendently disorderly and therefore the
data on the endorsements taken by such firms isn't accessible. The IDSA is an automatic
industry affiliation that commands its individuals to figure inside the severe arrangements of
a code of morals endorsed by the planet League of Direct Selling Affiliation. The code of
morals sets out reasonable and moral rules that actuate an appropriate and sound condition for
the immediate selling industry. Buyers are ensured against illicit or deceptive practices
through the implementation of the code. The present examination was made to understand the
importance of staggered showcasing in Kerala one among the sub organizations of direct
selling (Ibujés Villacís, J., & Patiño Galárraga, M. (2017)
Today, the immediate selling market in India is assessed to be around INR72 billion. Our
connections with industry partners propose that the business has additionally made a positive
effect on a couple of other social and financial parameters:
Direct selling gives extra salary chances to a huge number of people and advances smaller
scale commercial enterprise. As of now, quite 5 million direct dealers are evaluated to be
locked in with the business, and are anticipated to become further with the event of the
business. Notwithstanding giving salary openings, direct selling likewise grants transferable
abilities in deals and therefore the board, which may be utilized outside the immediate selling
industry, also.
a. Ladies Strengthening:
Direct selling offers independent work chances to countless individuals, particularly ladies.
Direct selling gives ladies the adaptability to affect their time and parity their work and
individual lives. The business in Money related Year 2013 is evaluated to possess given
independent work to three .4 million female wholesalers.
Many direct selling organizations depend upon SMEs for assembling their items. during a ton
of cases, the immediate selling organizations grant the assembling know-how, innovation and
procedures to empower the SMEs to make fantastic items. Many direct selling organizations
additionally put resources into giving the right gear and machines to the SMEs for creation.
c. Work Age:
Other than giving extra pay chances to coordinate venders, the industry additionally creates a
huge number of occupations. Larger a part of the immediate selling organizations redistribute
creation, bundling and conveyance of their items, during this manner producing direct beat
the price chain.
The working model for direct selling produces charge commitments to the legislature over its
worth chain. All out assessment commitment by the immediate offering industry to the
legislature in FY13 alone is evaluated to be INR10 billion. This incorporates immediate and
circuitous expense commitments through corporate annual charges, import obligations and
Tank. There are two techniques utilized for direct advertising that are:-
- Single level:
Under this arrangement, the salespersons win a commission on deals made by him especially.
There's an instantaneous association between deals made and income.
- Multi level:
In this framework, salespersons get remuneration both from the deals suffering from them by
and by and deals made by people selected by them by and by or from the deals of the
gathering or "system" enlisted by their own volunteers where the system may go a couple of
levels profound. The framework offers an opportunity to manufacture one's own individual
business by offering products and ventures to purchasers and by creating and preparing a
system of direct dealers to try to to likewise. There are not any necessary degrees of
coaching, experience, budgetary assets or state of being. Individuals all things considered and
from all foundations have prevailing in direct selling. ( Rosenbloom, B. (2013).
2.2.2 Challenges of Direct Marketing in India
Like the customary purchaser businesses, the immediate selling industry faces difficulties in
setting-up assembling offices, managing import obligations, then forth. an awesome test for
the immediate selling industry in India is absence of administrative, clearness. due to this,
regularly immediate selling organizations are confused with deceitful fraudulent business
models. States like; Andhra Pradesh, Kerala, Sikkim and association regions like Chandigarh,
wear a couple of events involved genuine direct selling organizations with fake players
thanks to nonattendance of required administrative explanation.
Such vulnerability is probably going blocking the event and notoriety of direct selling
organizations in India. By and enormous, due to nonattendance of lucidity, agents of the
immediate selling organizations are bugged by the nearby police and state governments. Such
occurrences will generally frustrate the event of the business and may adverse effect buyer
certainty. (O, J. S., & Ch, A. (2019)
Brand awareness is that the first and essential element of the entire brand information
framework in customers' minds, mirroring their capacity to acknowledge the brand under
various conditions: the probability that a name will come to mind and therefore the simplicity
with which it does so. Brand awareness are often portrayed into brand acknowledgment
(customers' capacity to affirm earlier introduction to the brand when given the brand as
prompt) what's more, image review (purchasers' capacity to recover the brand when given the
item class, the wants satisfied by the category , or some different signs). Brand awareness is
basic in purchasing dynamic all things considered significant that buyers review the brand
with regards to a given explicit item classification, awareness expanding the likelihood that
the brand are going to be a individual from the thought set. Awareness likewise influences
choices about marks within the thought set, even within the nonattendance of any brand
affiliations in buyers' psyches. In low association choice settings, a least degree of brand
name awareness could also be adequate for the choice to be conclusive. Awareness can
likewise impact shopper dynamic by influencing brand affiliations that structure the brand
picture. Brooding about approach of brand name value, the open demeanours he alludes to is
identified with how rapidly a buyer can recover brand components put away in his/her
memory (image mindfulness). (Jarpey, G., & McCoy, R. S. (2017)
The mentality initiation is a few of the time "programmed" (it happens precipitously upon the
insignificant perception of the disposition object) and now and again "controlled" (the
dynamic consideration of the person to recover recently put away assessment is required). it
had been additionally demonstrated that solitary high available perspectives (brands with a
big level of mindfulness) are often pertinent when buying or repurchasing a brand. Different
creators propose three traditional proportions of brand name awareness during a given item
class: unconstrained (independent) mindfulness (shoppers are asked, with no inciting, to call
the brands they know within the item classification – for this example the independent
attention to a brand is that the level of interviewees showing they realize that brand), top of
brain mindfulness (utilizing an identical inquiry, the extent of interviewees who name the
brand initially is assumed of) and, individually, supported mindfulness (brand names are
introduced to interviewees – for this example the helped familiarity with a brand is that the
level of interviewees who demonstrate they realize that brand). The results of any brand
decision must be known afterward, the purchaser being subsequently compelled to manage
vulnerability. Brand decision might be viewed because the focal issue of customer conduct,
while the apparent hazard associated with purchasing choices may be a vital a part of brand
decision. Hazard is usually seen to be excruciating therein it'd deliver uneasiness, during
which case it must be managed in how by the consumer. Among the principle elements of a
brand from the buyers' viewpoint is viewed because the minimization of saw buying hazard,
which thus develops a trust-based relationship. Brand awareness can impact buyers' apparent
hazard appraisal and their trust within the buy choice, due to nature with the brand and its
attributes.
Consumer behaviour with the purchase of products in the market is actually the supporting
factors outlines of their worth. Creating a price structure for customers in the market place
touch such as brand image, category association, brand price, its price and overall perception
of the market relative to others. It states that it is the decisions that consumers make at the
cognitive level, brands are strongly influenced by its perception between the image and the
target market. Research provides better brand image and better awareness levels for brands
consumers often have opportunities to buy. New product can be made increase awareness
among consumers through different strategies through the market even new jobs in the form
of traditional media. Promotion using traditional media-based advertising and ATL this
technology has a wide reach in the market, but it is often expensive to maintain brand fresh
products. The result is something new BTL Launch Technology, businesses are Innovating to
Introduce New Brands in a more personal way of marketing, and consumers in the market at
this time may be more concerned with new brands effective reduction of general costs.
Famous new media strategies that are working businesses use Internet and mobile-based
network marketing strategies. Brand loyalty is essentially fulfilled when customer
performance actually reflects behaviour brand. If customers are fulfilled by the brand, loyalty
comes from customer fulfilment.( Amiri, S., & Maroofi, F. (2016).
Functions then demonstrate loyalty to the brand, which becomes the price factor at heart
asking for items at any cost indicates a strong interest. Positive and negative feelings about
the brand because the brand image the minds of the buyers may recall their memories
accidentally or once. They should see that there are three aspects of the brand name image
that make up the overall image of the brand; Positivity, strength and uniqueness. makes it
clear that brand image is a reflection of the general personality and belief in it other brands do
not make them uniform by remembering their unique features because of others. Brand image
an important factor in the direction of expect to buy. This motivates buyers to have more
respect for the original brand has a good brand image. This helps consumers decide which
brand is a good choice. They have to create shopping expectations for a while.( Šerić, M., Gil
Saura, I., & Mikulić, J. (2016).
The job of trust in purchaser dynamic may be a region that has not been worked widely in
business to business markets, especially B2B administrations. For contemporary
administrations which is popping into a big and practically unavoidable piece of any modern
business movement, the experimental proof is even less. Indeed, even the precursors of trust
are factors that haven't been completely worked. Anyway trust as a build has gotten sensible
consideration from the supervisors with regards to their general observation on significance
principally its relationship to steadfastness and its capacity to assist comprehend business
connections. With regards to B2B administration it have set that the vulnerability related with
administration utilization and therefore the comparing apparent hazard is to an excellent
extent and emphatically attended through the trust component. In their investigation on
purchasers of airplane fix benefits over forty two nations, they need experimentally inspected
the predecessors of trust. Social collaboration, open correspondence, saw worth and by and
enormous assistance characteristics are recognized as precursors of trust. The work of the
social factors in building trust and trust in building dependability has been experimentally
approved. An are increasingly explicit in saying that trust is basic in encouraging B2B trades.
The investigation of the creators completed with regards to B2B administration presents
various predecessors of trust and explicitly focuses to support quality being a big forerunner
of trust. In their examination on retail garments and non-business aircraft, the creators have
targeting the weather of trust building and trust consumption and pinpoint contrasts between
the 2 help areas got for the examination( Mosley, M., & Divita, L. (2019). Scholars continue
to express concern regarding their collective lack of consensus about trust’s meaning.
Conceptual confusion on trust makes comparing one trust study to another problematic. To
facilitate cumulative trust research, the authors propose two kinds of trust typologies: (a) a
classification system for types of trust, and (b) definitions of six related trust types that form a
model. Some of the model’s implications for management are also outlined
Customer trust isn't solely important in Associate in nursing setting wherever client
expectations are increasing daily and competition is fierce, it's a whole mortal that would
build or break a business, and you simply need to look into the recent scandals around
Facebook or the Australian Banks to examine this happening. Brand trust as Associate in
nursing ‘insurance policy’ against future problems isn't a replacement conception. Most
organisations recognize trust given by the buyer cannot solely build or break a business, it
also can make sure you survive a haul within the future. However few reach whole trust
adequately, preferring to pay dissembling instead of take away into what it very means:
genuinely caring regarding customers and their wants.( Guo, G., Tu, H., & Cheng, B. (2018).
2.5 PRICING STRATEGIES OF DIRECT MARKETING
Price is the value that is put to a product or service and is the result of a complex set of
calculations, research and understanding and risk taking ability. A pricing strategy takes into
account segments, ability to pay, market conditions, competitor actions, trade margins and
input costs, amongst others. It is targeted at the defined customers and against competitors.
Spann, Martin; Fischer, Marc; Tellis, Gerard J. (2015)
Premium pricing: high price is used as a defining criterion. Such pricing strategies work in
segments and industries where a strong competitive advantage exists for the company.
Penetration pricing: price is set artificially low to gain market share quickly. This is done
when a new product is being launched. It is understood that prices will be raised once the
promotion period is over and market share objectives are achieved
Economy pricing: no-frills price. Margins are wafer thin; overheads like marketing and
advertising costs are very low. Targets the mass market and high market share.
Skimming strategy: high price is charged for a product till such time as competitors allow
after which prices can be dropped. The idea is to recover maximum money before the product
or segment attracts more competitors who will lower profits for all concerned.
Contribution margin-based pricing maximizes the profit derived from an individual product,
based on the difference between the product's price and variable costs (the product's
contribution margin per unit), and on one's assumptions regarding the relationship between
the product's price and the number of units that can be sold at that price. In most skimming,
goods are higher priced so that fewer sales are needed to break even. Selling a product at a
high price, sacrificing high sales to gain a high profit is therefore "skimming" the market.
Skimming is usually employed to reimburse the cost of investment of the original research
into the product: commonly used in electronic markets when a new range, such as DVD
players, are firstly sold at a high price. This strategy is often used to target "early adopters" of
a product or service. Early adopters generally have a relatively lower price-sensitivity—this
can be attributed to: their need for the product outweighing their need to economise; a greater
understanding of the product's value; or simply having a higher disposable income.
This strategy is employed only for a limited duration to recover most of the investment made
to build the product. To gain further market share, a seller must use other pricing tactics such
as economy or penetration. This method can have some setbacks as it could leave the product
at a high price against the competition.
Companies or firms that tend to get involved with the strategy of predatory pricing often have
the goal to place restrictions or a barrier for other new businesses from entering the applicable
market. It is an unethical act which contradicts anti–trust law, attempting to establish within
the market a monopoly by the imposing company. [11] Predatory pricing mainly occurs during
price competitions in the market as it is an easy way to obfuscate the unethical and illegal act.
Using this strategy, in the short term consumers will benefit and be satisfied with lower cost
products. In the long run, firms often will not benefit as this strategy will continue to be used
by other businesses to undercut competitors margins, causing an increase in competition
within the field and facilitating major losses.[12] This strategy is dangerous as it could be
destructive to a firm in terms of losses and even lead to complete business failure.
Next we are discussing the weather which are significant consistent with impacts on
purchaser conduct. We discover the investigation of Consumer Behaviour is extremely
amazing, on account of the many factors included and their propensity to interface with and
impact one another . These factors are separated into three significant segments that are
recognized because the most vital general effects on Consumer conduct. Envision three
concentric circles, one at the external generally, one within the centre and one at the interior
most, and that they speak to the accompanying. (Attreya, B. (2018).
3. The buyer deciding Process: The purchasing choice comes as a results of the
unpredictable association of the surface variables also, the individual qualities. The interior
most circle indicates the purchaser dynamic procedure on and administrations, whose
significant advances are: Problem Recognition, Information Search, Evaluation of
Application, Purchase Decision, Post-Purchase conduct. Once we are mindful about the
components which legitimately or during a detour impact the shopping conduct of any
customer then it's smarter to believe showcasing and its related exercises.
Consumer conduct alludes to the determination, buy, and utilization of products and ventures
for the satisfaction of their essential and therefore the central needs. There are various stages
engaged with purchaser conduct. At first, the consumer finds the wants and afterward goes
for the selection and spending plans the products and take the selection to expend. Item
quality, value, administration, purchaser feeling, individual variables, situational factors, a
view useful or reasonableness, item includes are some of the weather that impact the buyer
loyalty. The variables that impact client differ from individuals to individuals and by the way
of lifetime of the individuals. (Gengler, C. E., & Leszczyc, P. T. (1997).
Subsequently, for an efficient buyer arranged market specialist co-op should function as a
therapist to secure customers. By remembering that influencing components are often caused
great and objective of customer fulfilment to be often accomplished. The investigation of
buyer purchasing conduct is door to achievement within the market. Generally the result
shows that brand picture, and see esteem, value, and wellbeing concern and quality impacts
consumer loyalty. Estimating consumer loyalty may be a key presentation marker inside
business and is usually a part of the decent scorecard. The elemental point of estimating
consumer loyalty is to choose a quick choice for the ceaseless improvement of the business
exchanges. Drawing in another client as a source to expand on existing relationship,
consumer loyalty estimation is basic to be estimated. Additionally, to carry this client base,
estimating consumer loyalty is similarly significant. Significant data on the foremost
proficient method to form clients progressively fulfilled is, hence, an important result. Except
if the association center on their improvement endeavors within the correct zone the
association can't continue the opposition level of business during a market. To perceive the
necessities of the client is to fulfil the client and to deal with the difficulty of the client, an
estimation of consumer loyalty is that the thing that issues the association. (Yi, Y., &
Nataraajan, R. (2018).
In this study we can say that the independent and dependent variable are having a very close
relationship since because the variables which are independent will not change any of the
factor that impact on the direct marketing but dependent variables will have several changes
as while as the independent variables are having changes.
Demographic variables like income, age, sex etc. will affect the buying behaviour
of the consumers that because,
a. While the people are having the different level of incomes their purchasing
power will also be different from one another.
b. Also, when they are of different age groups the mentality of buying several
things through direct marketing would vary.
Brand awareness would help the consumer to take decision while buying a
product, especially in direct marketing the products mostly sold would in the same
brands so as if the consumer are very familiar about the brand then they would not
have any dissatisfaction on the purchasing of the product.
According to the awareness of the brand the consumer will also have trust to buy
the product so brand awareness and trust are closely relatable.
Interest is depending upon the performance of the seller in the direct marketing as
when he describes his product very well then the consumer will not go behind the
brand and all they may have the mind to purchase the product and would have
satisfaction.
Also, the product characteristics when the direct selling products are having much
more specialities then the consumer would have the temptation to purchase the
same and it is according to the product delivery of the seller.
3. DISCUSSION
Under the discussion part we are going to discuss about what we had found out as the result
from other term paper done by many researchers related to direct marketing and consumer
attitude. So we had found that in various research paper there are several methods used by
them to find the results. Through that results we can conclude our term paper as, mainly the
consumer’s attitude towards the direct marketed products are depending upon the seller’s
behaviour. Also the Independent variables like Brand Awareness, Trust, Pricing strategies
and Product characteristics reason for the purchase intention of the buyers. Most of the
womens choose to have the directly marketed products. The purchse decision and satisfaction
of the consumer is focused on the quality and awareness of the product. So the main factor
that influence the consumer to purchase the various product through direct marketing is
because of the way of communication and presentation by the seller.
The following are the questions that we have to answer in this study,
How strong are the relations between the buyer and direct marketers?
Based on the study conducted by several researchers it says that the relationship between
buyers and the seller are very frequent, that most the consumer prefer in direct marketing
because direct marketing is not only done through seller in the step in front of the buyer but
also by direct mails, telephones, messages, videos, etc. So while when the direct marketing is
getting digitalized it would make the relationship of the consumer towards the seller very
strong. Also while the sellers are marketing a good branded products and the consumer is
having the trust that those products would not be bad then they mostly prefer only to have
direct marketed products.
How do consumers perceive the advantages provided by direct marketing?
According to the studies it is said the consumer are perceive about the good side of the direct
selling only through the experience, that when the products that are sold through direct
marketing seller must confirm that the brands that they are chosen ids familiar among the
consumer in a better way if not they have to make the consumer familiar about the brand in
the correct way. Otherwise they also have to choose a product which is having much more
product characteristics for the direct marketing because if the product are not having any
much product features then they couldn’t elaborate about the product to the consumers.
1.2 PERSONAL ASSESMENT
As when I organized the term paper I came to know more about the terms direct marketing,
consumer attitude, purchase decision etc. So according to me, I analyses that:
• The consumer are more preferring for direct marketed products since they are able to
know more about the features in the product and also the can choose according to
their wish. As we know direct marketing are done through several methods like:
a. Direct Marketer: under which they directly in front of the consumer itself
convey about the features of the product were the consumer may take decision
very quick and only after understanding clearly about the products, they can
also ask if any doubts occurs upon the brand or characteristics.
b. Media Direct Marketer: Under this the product are marketed directly to the
customers by using several media like Television, Facebook, Instagram etc.
here the customer would many check the brand that are marketed and they
may also satisfy if they have any doubts about the products. Here the
consumer must have trust and interest to buy the product. But the purchase
decision will not be very quick they will take time and then make a decision.
c. Response channel: Under this the direct marketing is done by mailing or
messaging directly to customers by the seller or the company. This way of
direct marketing cannot be much effective since because when they are
sending such a message it is not sure that the consumer will have the interest
to buy the product because it is not much attractive towards them.
• As reviewing several research paper my review is that the women’s are the basic
customers in direct marketing and they are regular towards it. But even then there are
some others who mostly prefer to purchase the products by going outside and
choosing it on their wishes. This is a vulnerable situation because the regular
customers will be continuing as the regular customers and others are not much regular
towards direct marketed products. As when the digital direct marketing had occurred
we can have a conclusion the most of the customers are preferring direct marketing,
because through the digital direct marketing the customers are able to make purchase
decision by only understanding about the needs that they want. Under this the major
points are upon the variables that when the brand awareness is perfect the consumer
would have trust and interest to purchase the products in direct marketing, So we can
say that they plays a main role in the purchase decision of the products. Also the
demographic factors will have impact on making the customers regular ore irregular
because when we are having experience in using direct marketed product we choose
to be regular customer and as well as the purchasing power, mentality and attitude of
the consumer they are mostly categorized as regular or irregular.
• According to me the main factor which influence the consumer towards direct
marketing is the direct marketer, the communication skill, presentation way,
Interpersonal skills and very well knowledge about the marketing products. The
consumer would have interest to purchase the product only when it is presented in
front
of them in a attracting way. Also the brand awareness will only be possible if the
direct seller communicate it in the best way. So what can sellers do to make the
unfavorable consumer to purchase the products, they have to do present the product
by only if they know very well about the product. Almost the consumer are not
preferring the direct marketed products because they are not well familiar about the
products that is lack of experience. As when more people are aware of direct
marketing it would have a bright future and more companies would have a sector of
employees for direct marketing.
4. CONCLUSION
While transactions of directly promoted products have been growing at a high amount,
future progress will require destructive direct selling plans built on an considerate of
consumers' performance. This paper shows presents a key code view of how attitudes
headed for the three methods of direct marketing may affect intentions to purchase
directly promoted products. We measured consumers' attitudes using the Brand
awareness, Trust, Interest, Product characteristics and also in Demographic factor towards
the consumer purchase decision and consumer satisfaction. Consumers discovery direct
selling a virtuous process to build relationships between consumer, marketer and the
company. The direct sellers take high authority between consumers, and it converts easy
to create market dealings. They help customers in clarifying products, assistance
customers to make operative purchasing decision, and also resolve after sales difficulties
in relation to goods. Thus, direct marketing is an operational method to adapt prospects
into trustworthy consumers. Currently the direct marketing faces greater competition in
there initiates. Getting profit is conceivable only over consumer’s satisfaction. In recent
times, direct selling had a greater influence on both positive and negative on the economy
of the world. Thus, the study on consumer attitudes and customer purchase intention and
satisfaction towards direct marketing makes an attempt to find result for different
functioning problems in direct selling commercial.
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