SUB-CONSUMER BEHAVIOUR

ASSIGNMENT-3
PADMA MOHAN CHAKMA

Answer the following questions:

Q.1 Explain utility in terms of acquisition and

transaction
ANS- acquisition utility is the benefit that the consumer
perceives from the brand purchased over and above
the price paid.
Acquisition utility= Benefit Received – Price Paid
Benefits are –Features, Convenience, and Longevity
Status
Consumer will pay a higher price if he/she feels
that the value is much greater than the price paid
Transaction utility is the difference between the actual
price paid and the reference price.
If the consumer pays less than the reference price, he is
satisfied with the transaction.
Example- In a session ending sales of clothes and shoe
brands, consumers feel a high transaction utility
because they pay less (discounted price) to the MRP
(reference price).
If the consumer pays more than the reference price, he
will feel cheated and may not buy

Q.2 Analyse the impact of perception on consumer

behaviour.

ANS- The perception consumer have of a brand, its

values and its products and services can have a
dramatic impact on consumer purchase behaviour. If a
business can foster positive perceptions focused on
these aspects, it’s likely to build a sustainable, loyal and
growing customer base.
Customer Perception:-
Look into their attitudes and lifestyles.
Unravel emotional brand connections with brand data.
Fill in the gaps with custom surveys
Monitor social media.
Read online reviews.
Q.3 what is the role of decision-making process in the life of
a consumer?
Ans- Consumer decision making process involves the
consumers to identify their needs, gather information,
evaluate alternatives and then make their buying
decision. The consumer behaviour may be determined
by economic and psychological factors and are
influenced by environmental factors like social and
cultural values.
The consumer decision making process is the process
by which consumers:
Become aware of any identity their needs.
Collect information on how to best solve these needs.
Evaluate alternative available options.
Q.4). what do you understand by the usage of customer
loyalty for growing a brand?

Ans- customer loyalty is a measure of a customer’s

likeliness to do repeat business with a company or
brand.
It is the act of choosing one company’s products and
services consistently over their competitors.
  Celebrate loyal customers- ON SOCIAL MEDIA
Encourage customers to share photos. Showcase
them on your Social handles. USER GENERATED
CONTENT Images, videos etc. shared by users on
social media.
 Incentivise repeat purchase with reward program-
Provide offer discounts/promotions when
customer make repeat purchases.
 Encourage customers to spread feedback with
referral programs
 Solicit customer feedback- Encourage customers to
give their opinion when they use your brand.

Q.5) Differentiate between various domains

responsible for the changing trends in the Indian
consumer landscape?
Ans- The
changing trends in the Indian consumer
landscape revolves around three main domains
They are as follows-
1. Social media and brand endorsement
2. Technology
3. The Indian consumer
1.) social media and brand endorsement
The internet and broadcast media are contributing
immensely to building consumer awareness about
brand and products available not only in India but
also in international markets. This has helped
brands significantly in spreading their marketing
campaigns to consumers in all parts of the country.
Increased awareness, coupled with geographical
expansion and the growing reach of online
retailers, has led to an increase in demand beyond
Tier-1 cities.

2.) TECHNOLOGY
Businesses have used technology in almost every
sphere. However, technology is generally seen as
providing back-end support or at best, as an
enabling platform. As such, most business
managers have not pro-actively devoted time to
building even a basic appreciation of how emerging
technology can solve some of their customer
problems. For mobility, 3D printing, IOT, artificial
intelligence to machine merchandising, technology
is causing major changes in product creation,
delivery and service to the customer.
3.) THE INDIAN CONSUMER
According to the latest census figures, the total
population of India was estimated to be 1,254
million and is continuing to grow at an average rate
of 15-20 per cent.
Today, almost a third of the population is below
the age of 25years and half the population is below
the age of 35years. While this means that
consumer demand will keep growing in the future,
thereby propelling India’s GDP via internal
consumption, it also means that the types of
products, services and experiences will undergo a
big change to keep pace with the outlook of this
young population.