AN STUDY ON CONSUMER PSYCHOLOGY

In

NILGIRIS Bangalore
Dissertation submitted in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION BANGALORE UNIVERSITY

By

MEHUL KUMAR
Reg.No:091PCMA012 2009 - 2011

Under the guidance of
Dr. C .Girish Professor

CMR CENTER FOR BUSINESS STUDIES #5, Bhuvanagiri, OMBR Layout, Banaswadi, BANGALORE-560 043

STUDENT`S DECLARATION

I hereby declare that this Dissertation titled ―CONSUMER PSYCHOLOGY” Submitted by me to the Department of Management, Bangalore University in partial fulfillment for the award of the Degree of Master of Business Administration, Bangalore University, is a bonafide work carried out by me under the guidance of Dr.C.Girish. This has not been submitted earlier to any other University or Institution for the award of any Degree or Diploma or Certificate or Published any time.

Place: Bangalore

Mehul kumar

Date:

(091PCMA012 )

CERTIFICATE FROM GUIDE

This is to certify that dissertation titled ―Consumer Psychology” submitted in partial fulfillment for the award of the Degree of Master of Business Administration, Bangalore University was carried out by Mehul Kumar (091PCMA012) under my direct supervision and guidance. This has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Place: Bangalore Date:

Guide Name Dr.C.Girish CMR Center for Business studies

ACKNOWLEDGEMENT
I owe deep sense of gratitude to my beloved institution, CMR center for Business Studies, for molding me into a real management student. My project wouldn‘t have been successful without the material assistance of a number of people. I would like to acknowledge the help rendered by each of them. I express profound gratitude and thanks to all the people who have been extremely inspirational and helped me to complete this project.

I would also like to take this opportunity to express my deep gratitude and thanks to my project guide Dr.C.Girish CMR CBS for his most valuable guidance and critical evaluation throughout the course of project work. I would also like to thank all my faculty members for their valuable suggestions. Finally, my heart full thanks to my beloved parents and friends with whose love, blessings, guidance, suggestions and encouragement, I could come up to this stage.

EXECUTIVE SUMMARY
Having an insight into the mind of the consumer is extremely important in developing marketing strategy especially in a country like in India where diversity is the norm. The insights about the consumer behavior come from empathy with the consumer and familiarity with the socio economic and cultural environment. It also needs sound analysis of consumer behavior. This programme focuses on methodology to enable understanding of consumer psychology for marketing decisions. Consumer psychology includes consumer decision making, Individual determinants of behaviour, Perception, Motivation, attitudes, personality, learning and Environmental influences.

Nilgiris is one of the supermarkets in South India with leading chain of retail stores providing consumers a shopping experience that hinges around freshness of produce, superior quality and better value. From humble beginnings in the hills around Ooty and Coonoor at the turn of the twentieth century, Nilgiris has grown from being a Dairy Farm specializing in butter to a supermarket chain of over 90 stores spread across India‘s southern states. With the mission of constantly improving and upgrading capacities to satisfy consumers through a wide range of food products and service offered at the right quality, quantity and price supported by innovative solutions, Nilgiris is all set to embrace emerging technologies and be recognized for its integrity, customer focus and commitment to quality. This report consists of the detailed study of the consumer psychology which revolves around the consumer decision making. it includes understanding the consumers of Nilgiris, both existing and prospective with the help of a sample survey of consumers.

CHAPTER 1 INTRODUCTION

exciting and useful to everyone in the supply chain of production and marketing good and services. Its potential is unlimited. or consumer behavior. Perception. Analyzing the psychology of consumers is just like a blind man testing an elephant. learning and Environmental influences. Having an insight into the mind of the consumer is extremely important in developing marketing strategy especially in a country like in India where diversity is the norm. Its excitement and desire to full fill the just and immediate wants is endless. Introduction to consumer psychology: Consumer decision making Individual determinants of behaviour. The Society for Consumer Psychology is a division of the American Psychological Association (APA). If a person lives in New York. periodically serves as the voice of those engaged in the understanding of why people buy what they buy. development and practice in the field. Journal of Consumer Psychology as well as another publication. Consumer Psychology seeks to explain human. Journal of Consumer Research and Psychology and Marketing. Consumer‘s or customers are the embodiment of the values and virtues of psychology of human mind. Motivation. Its quarterly journal. It is a Pandora‘s Box. that person needs a winter coat to survive the cold outside. in two basic ways: what the consumer wants and what the consumer needs. a study of consumer mind or psychology is interesting. attitudes.Consumers mind is all most comparable with the mind of a fickle minded mistress. But why the person buys a particular style or color hinges on the more complex issues of why a particular choice is made. This programme focuses on methodology to enable understanding of CONSUMER PSYSCHOLOGY for marketing decisions. . The logical explanation for fulfilling the needs is a simple one. It also needs sound analysis of CONSUMER BEHAVOIUR. The group's main focus is conducting scientific research. personality. The insights about the consumer behavior come from empathy with the consumer and familiarity with the socio economic and cultural environment. In the fitness of things.

In fact. and pointed out less-than-honest representations of what a product could do for the buyer. People and their motivations constantly change. strapless. From product spokespersons to the picture on a candy bar wrapper. The Hidden Persuader. where new food products and electronic gadgets emerge daily. a writer named Vance Packard started a minor revolution with his book. the desired shoe may be open-toed. as well as those marketing the products. it is the interest of psychologists. The book was popular. it is important to understand what cultural implications are present beside the food. In 1957. economic. done to ensure a certain brand of a product becomes a best-selling item. consumer psychology utilizes more than simply psychology. to understand the relationship between financial and psychological factors that make people buy what they buy. The millionaire who grew up in dire poverty might still buy the cheapest margarine because the psychological motivation takes time to catch up to the economic status and  Image and Symbolism. What could be the superficial or seemingly rational reason a person might have for making a purchase (the need)? What other factors (wants) influence it? For instance. If you want to know why a particular restaurant is popular.The key to unlocking consumer psychology understands that desires rule over needs when it comes to consumer purchase. Accordingly. He urged consumers to be cautious and not fall prey to hidden meanings or symbols in advertising. Packard uncovered the manipulations of the advertising community. Psychology views certain factors that include:  The Gestalt principle. and come with six-inch heels  The Dynamic principle. even if shoes are purchased as foot protection. In a modern world with hundreds of brands of toothpaste. there are several principles at play when examining this issue. more than the nature or quality of the product itself. the ever-elusive association people make with a product might be a big factor in whether or not they buy it. It must study economics and culture too. or psychological factors. and people started looking for the subtle messages in everything from liquor ads to . whether influenced by social.  The Iceberg principle.

Until then. and counted as luxuries. Complex human behavior can take one invention and create a hierarchy of needs around it. as schools and businesses often came to require their use. and certainly consumer psychologists will be studying buying habits well into the twenty-first century. By 1999. INDUSTRY PROFILE Retail is India's largest industry. Psychologists understand that in the burgeoning economy of the early twenty-first century people's needs and wants are continually growing too. It is expected that retail in India could be worth US$ 175-200 billion by 2016. Indian retail is expected to grow 25 per cent annually. the sales of luxury items go up. Their awareness did not necessarily combat their emotional needs. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. those items had become more than simple luxuries. Online shopping habits might differ drastically from catalogue sales or in-store purchases. They have discovered that often in the most depressed economic times. are buying the product anyway. The organized retail industry in India had not evolved till the early 1990s. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Driven by changing lifestyles. Consumer psychology is a pursuit that is likely to expand now that an estimated $5 billion worth of products were purchased online by the spring of 2000. household items such as computers and video recorders were new. These trends are just beginning to be studied. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets.spaghetti packages. and often. the industry was dominated by the un- . Whereas economists or marketing strategists might look to numbers-wages or interest levelspsychologists know that something more motivates the consumer purchase trends. by virtue of a changing society. What they also did. In the 1970s and early 1980s. strong income growth and favorable demographic patterns.

Trained human resource for retail is another big challenge. With the intrinsic complexities of retailing such as rapid price changes. tax laws and government regulations all discouraged the growth of organized retailing in India during that period.organized sector. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skilled manpower. It is feared that the entry of global business giants into organized retail would make redundant the neighborhood kiryana stores resulting in dislocation in traditional economic structure. increase in disposable income and customer aspiration. Lack of trained manpower. Following Pantaloon's successful venture a host of Indian business giants such as Reliance. A number of factors are driving India's retail market. Birla and others are now entering into retail sector. Also. It was a seller‘s market. India's retail boom is manifested in sprawling shopping centers. increasing working-women population. If all the above challenges are tackled prudently there is a great . hefty pay-packets. unpredictable availability. multiplex. increase in expenditure for luxury items. and low share of organized retailing. nuclear families in urban areas. But there is a flip side to the boom in the retail sector. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. the growth path for organized retail in India is not hurdle free. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. Bharti. with a limited number of brands. entertainment and all food all under one roof. unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices. The taxation system still favors small retail business. constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. and little choice available to customers. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing.malls and huge complexes that offer shopping. These include: increase in the young working population. But retail offers tremendous for the growth of Indian economy. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. The retailer has to fight issues like fragmented sourcing. sorted and cleaned food and fresh stock at all times.

The table below displays the ranking of different countries and the various parameters considered in arriving at these rankings .potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth. According to AT Kearney‘s report – ‗Emerging Market Priorities for Global Retailers‘. or household use. Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal. India‘s retail market has grown by 10% on an average in the past five years. The 2006 Global Retail Development Index TM. Drivers of change in retailing  Changing demographics and industry structure  Expanding Computer technology  Emphasis on lower cost and prices  Emphasis on convenience and service  Focus on productivity  Added experimentation India emerges as most attractive retail market. India ranks as the most attractive emerging market as a retail destination. Retailing comprises of four elements:  Customer Orientation  Coordinated Effort  Value-driven and  Goal Orientation. family. The report attributes the changing retail landscape in the country to the increasing mobility among the middle and upper classes and increasing urbanization.

Value driven approach: The retailer offers good value to the consumer with merchandise having the price and quality appropriate for the target market. Goal orientation: The retailer has clear cut goal and devises strategies to achieve those goals.Essentials of Retailing Customer orientation: The retailer makes a careful study of the needs of the customer and attempts to satisfy those needs. .

the markets in which the retailer may have a presence. These four parameters are interlinked and together frame the strategic disposition of the retail business. The four parameters are the products that can be offered. . the retailing format that may be adopted for operation and the profile of the customers that are identified as the target segment.Coordinated efforts: Every activity of the firm is aligned to the goal and is designed to maximize its efficiency and deliver value to the consumer. It represents the choices available before a retailer in terms of how the business model can be designed. Four Axes of Retail scale up The broad parameters along which the retailing activity can be scaled up.

\Stages in growth of Organized Retail .

CHAPTER 2 RESEARCH DESIGN .

It also needs sound analysis of CONSUMER BEHAVOIUR.Having an insight into the mind of the consumer is extremely important in developing marketing strategy especially in a country like in India where diversity is the norm. This programme focuses on methodology to enable understanding of CONSUMER PSYSCHOLOGY for marketing decisions. TITLE OF THE STUDY A detailed study in the area of ―CONSUMER PSYCHOLOGY‖ for ―NILGIRIS SUPERMARKET‖ STATEMENT OF THE PROBLEM Nilgiris do not adopt the latest trends. designing studies that investigate consumer behavior in a concrete product and market context.  To provide some simple tools that can be used for thinking about consumers. OBJECTIVES OF THE STUDY  To study the buying strategy of customers towards NILGIRIS. and most important of all. . analyzing marketing problems from a consumer-behavior perspective.  To explain why consumer behavior is a central topic in marketing. speculating about their possible behaviors. fads and not in favour of diversifying their products as a result the company is losing its hold in the retail market.  To present a simple model of consumer decision-making. The insights about the consumer behavior come from empathy with the consumer and familiarity with the socio economic and cultural environment.

SCOPE OF THE STUDY  The scope is limited to operations of Nilgiris Superstores limited.  The study confines itself in understanding the customers' view point of the marketing mix strategies of NILGIRIS in BANGALORE. Secondary data is collected from journals. dissertations etc. tabulating and analysing the raw data collected. Secondary Data Secondary data is the information which already exists. The present study questionnaire makes use of both open ended and close ended questions. RESEARCH INSTRUMENT Questionnaire was designed with open-end and close-end questions. magazines. The secondary data for this research was obtained from company profile. corporate broachers. Primary data was collected through an interview with the help of a structured questionnaire. hence much emphasis was given to primary data. books. websites. corporate magazines. RESEARCH DESIGN RESEARCH METHODOLOGY Data Sources: 1. Primary Data Primary data is the information collected for research purpose at hand. 2. Bangalore. industry related questions. RESEARCH APPROACH Survey method was adopted in order to collect the primary data required for the study. The Questionnaire was designed in such a manner so as to cater to all the areas and aspects of the study. Very little research specific data was available. . Various books and other published matter were also referred to for sorting. journals etc. which contained quires that were relevant to the purpose of the study as well as pertinent.

the finding may not be the same for the whole population.SAMPLING PLAN  SAMPLING UNIT: A customer visiting NILGIRI is identified as the sampling unit. ranking.  SAMPLING PROCEDURE: Random Sampling  SMAPLE SIZE: 157 DATA ANALYSIS Simple statistical tools such as averages.  Due to the limited number of respondents. means etc. All the work is done under the assumption that the data collected from the respondents was accurate. Conclusions have been drawn and suggestions have been made to the best of knowledge. . various hindrances are bound to occur. tabulated. LIMITATIONS OF STUDY Some of the limitations of this study are:  Due to geographic constraint the study was limited to BANGALORE City. analysed and interpreted in an organised manner. PLAN OF ANALYSIS The collected data has been classified. Inferences have been drawn carefully and methodically with supportive guidance to avoid discrepancies in the survey. Utmost care has been taken while preparing this report to see that it can be clearly understood by the reader as well as beneficial to the company. are used. errors and mistakes have been made minimal despite the knowledge of the fact. Graphs and charts are also used to have a better pictorial understanding. Throughout the survey and throughout the time the report was prepared.  It is assumed that the information given by the respondents is true as per their knowledge and hence the chances of biased information is remote but definitely cannot be ruled out.

CHAPTER 3 COMPANY PROFILE .

Due to good principles of business and services he developed the business and enjoyed great goodwill and reputation. He installed first cream separator in Southern India in 1896. He started with selling butter and added fresh sales.HISTORY: Nilgiris Dairy Farm was founded in the year 1905 by Mr. For the last 30 years the bakery unit has been organizing the Annual Cake Show and the exhibition cum cake sale in which every year a special item is made to almost a life size model of well known place made out of tons of sugar. Some of the pieces created in the past include Taj Mahal. he opened a Branch in Bangalore on Brigade Road. son of Mr. the present managing director joined the business in 1950 and together started the full fledged mechanized bakery. In the year 1939. The business grew and ventured into a small coffee/milk bar. Mr. dairy products including ice cream. starting with 10 pounds of butter sales per day that is Rupee 10 business in a day. The true to life sugar and chocolate models are displayed for the public to admire. It served British defense and citizens who stayed in India at that time. chocolates biscuits etc. Vidhana . Muthuswamy Mudaliar was placed in charge of Bangalore operation. Mr M Chenniappan. Mr. He was supplying milk and cream to the military dairy farm at Hebbal and the prisoners of war camp also. M S Mani. The two units in Bangalore make about 2000 loaves of bread and few hundred varieties of buns. slowly a small bakery was added and a little later the milk bar started supplying breads. cakes. M S Mani is in charge of administration of the company and appointment of senior executives as well as acquisition and development of company properties. Muthuswamy Mudaliar. M Chenniappann‘s brother Mr.

He is in charge of the dairy operations at Erode and also in charge of the supermarkets at Coimbatore and Erode. The family partnership business was also converted into a private limited company in the year 1971. Cox Town and Golden Enclave. . From Rs. Mr. the first son of Mr. the small operation of Nilgiris Dairy Farm was upgraded into a fully fledged self help supermarket. studied at NDORI. Bugee Jumping. In 1970. Windmill etc. In 1971. the first of its kind in southern India. He went abroad for further training. St. Kargil. C Ramachandran. i. It is a family business. about 20. Giffet Tower.e. 4 at Bangalore .During the last 30 years. Every male member in the family had foreign training in different lines and has developed their departments. 80 crores a year.Brigade road. They have also set up a chocolate factory ay Bommasandra.In 1984. In 1960. a milk processing plant was set up at Erode and a milk selling unit was set up at Madras. a supermarket was set up at Madras with restaurant and lodging. today they do a turnover of over Rs. Airport Road. MR. Coimbatore and Chennai. The company now runs six supermarkets in direct management. another brother. Mary‘s Basilica. Nilgiris have set up a diary division at Bommasandra. Now the fourth generation has also got into the business.Soudha. M Chenniappan is totally in charge of this annual feature as managing director of the Bakery unit. Kammanahalli. 10/business a day in 1939. where they have started manufacturing cheese. Kerala Boat Race. The United Nations Building. on a visit to Europe. Nilgiris have bakeries at Erode. At the bread unit Veerasandra Industrial Unit. Nilgiris have grown into a chain of supermarkets. A branch at Mangalore was opened around this period. Mr. M Chellayan. M Chenniappan saw the self help department stores in operation there and this kindled the idea of opening a similar store at Bangalore.000 loaves of bread is prepared every day. Titanic. 2 at Erode -one at Chennai and one at Coimbatore.

display well cleaned. They also have the Nilgiris Nest. Of course. they have daily turnover of around Rs. 20 crores are from their dairy division alone. They have four star facilities at reasonable rates. Nilgiris have also over the last two years. all popular brand gods are stored . At the supermarkets in Bangalore and Chennai. dairy products. where the sons are also directors.The company is managed by the board of directors. dairy. The dairy division handles around 50.5 lakhs each and they have more than 2000 customers walking in for shopping daily. 600kg fresh cream and about 150kg of cheese. heading the respective divisions on a full time basis. Nilgiris also have the biproducts of a daily production of 600kg of butter. who are all technically qualified in bakery. lodging provided along with their supermarkets at Bangalore. exported some of the Nilgiris products to Singapore. United States. and properly packed items under the Nilgiris brand-bakery products. Switzerland.000 liters of milk daily with the plant at Erode as well as Bangalore. spice powders and the whole list of provisions as also fresh vegetables. Germany and Australia. 400kg of ghee. They also procure another 5000 liters of milk at Bangalore form nearby sources. Apart from supplying milk at Bangalore. Of the 80 crores turnover. Chennai and Coimbatore. Supermarket operation They provide an ambient atmosphere. supermarket operations and the like. Coimbatore and Chennai. instant food items.

the only supermarket chain operating in India. ghee. Mini Counter At the entrance of the supermarket. the Nilgiris chain of supermarkets use the latest in automation technology and software to ensure that visitors have a very pleasant shopping experience. mishti doi. plain milk. It is the most successful business as far as the popularity of the brand name of Nilgiris is concerned. Nilgiris Supermarket The main supermarket at Brigade Road – Bangalore has branches at Airport Road. lacto soy milk i. processed cheese. tax etc. curds. bakery and other products whereas the other half of the turnover comes from branded goods. they have provided barcode and computerized billing system. flavored milk. sandwich bread. pudding (choco. mozzarella cheese etc are available in this mini counter for those customers who need quick . Hyderabad and Pondicherry. mushroom. price. srikand. buttermilk. paneer. Chennai. Kammanahalli. of other National and Multinational companies. cream. It costs them a lot of money to run a store like this and they are today. The customer receives the neatly printed bill with full details of products. Erode. Pure coffee powder. which is only for dairy products like milk. Air conditioned and carefully structured for a comfortable shopping experience. etc. table butter. For the convenience of the customers. and Cox Town. vanilla and chocolate). It is to be noted that 50% of their business comes from their own dairy.e. quantity. Coimbatore and franchisee outlets at Vishakapatnam. quality. fruit and milk bread. yoghurt.in plenty always. there is a mini counter.

One booklet is allotted for one month. all popular brand goods are stored in plenty always and properly packed items under the Nilgiris brand.The credit facility is provided only for corporate officers and those customers who provide bank guarantee. Mysore Sandal. Services In this counter the milk coupons are provided to the interested customers of ½ liter and 1 liter. Rexona etc of 125gms & 75gms in each quantity are sold about 10-20 pieces per day as per the customers requirement. Only required quantity is kept in this counter. The work force of the department is 55. The major sales are Pears. This is a busy counter with the number of customers. They also provide home delivery.  Soaps And Detergents: This counter is mainly for soaps and detergents meant for the convenience of the customer to select easily available for them.service only in dairy products. wherein one booklet consists of 30 coupons. This counter also maintains the complaint register wherein the customer writes down the complaints regarding their dissatisfaction. display well cleaned. Departmental Stores It provides an ambient atmosphere. There . As the company renders good service and satisfies the needs of the customer there is no complaint registered. The launch coupons are also provided which are known as the Bemel Coupons. Lux. There are 55 different types of soaps. A separate register for orders of the customers is written down. the mail supplier is HLL.

Parry‘s. These items are received from Godown. Close Up. Henko. Kwality etc. sultana. walnuts etc are available in this counter.  Dry Fruits: Dry fruits like almond. For Talcum powder the suppliers are Ponds.  Chocolates: The tempting chocolates like Eclairs. Elle 18. and Panteen etc. one is at entrance which displays all the cosmetics and it functions mainly in selling lipsticks. and Axe etc. creams and lotions. lip liner. Tide etc. prunes. Dry fruits are the major running products. Parle. Rin Supreme. Fair and Lovely etc. dates. Kellogg‘s. pista. Parle. The major suppliers are Lakme. and Cadbury are available and apart from these there are also Nilgiris home made chocolates available.  Toothpastes: This counter also includes toothpastes of different types.  Biscuits: There are varieties of biscuits available in this counter like Britania. perfumes. hair oil etc. The dry fruits are purchased in bulk and are repacked for sales. apricot. Nutrine. Tips and Toes.  Cosmetics: This counter is separated into 2 parts. Ponds. We can also find the imported chocolates in this counter. . nail polish. Ariel. shampoos. and Colgate etc. All Clear. For Shampoos the suppliers are Sunsilk.are different types of detergents like Rin. eye liner etc. The major sales among the pastes are Pepsodent. nail polish. figs. cashew nuts. body sprays. Revelon etc. Nutrine. Nivea. 250gms are sold maximum. Surf. talcum powder. For Creams the suppliers are Garnier. The other counter includes lipsticks. This counter is convenient for those customers to choose the product of their own choice as per the taste and preference.

orange. and Mysore pak are available in this cunter. Herbal Health Care Drink. The Dabur Chyawanprash. are available in this counter. garlic roll. pure comb honey from New Zealand. sandwich spread. puris etc. rusk. rich plum cakes. Danish Pasta are available. Nilgiris herbal tea. Mirinda etc. mango.  Beverage and Sweets: Snacks are available in this counter like butter murukku. pav bread. savouries and also haldiram products are available. tapioca chips. Duncans. ladoos. banana and potato chips. barilla. The mouth-watering sweets like jamoons. . Apart from this even fast foods are available like amosas. Broke Bond. mixed fruits. Apart from this beverages are also available like Coke.  Imported Goods: In this counter all the imported products are displayed like frigate strawberry jam. bread crumb. Tata Lipton. burfis. fettuccine. cookies. jackfruit chips. Soya Flour. real grape. Tetley etc. The tea and coffee are available in attractive packages under the brand name like Nescafe. pedas. pizza base. Nutri foods. High Fiber Wheat Flour. Tropicana. farfel are available under the brand name Kraft. Nature Care.  Tea and Coffee: The name of activation of nerves is Tea.  Health Food: This counter mainly attracts the health conscious customers. cotton candy. In this counter mainly ayurvedic products are available. Pepsi. Sunrise.  Juices: Different varieties of juices to quench the thirst available is different flavours sun sweet prune juice. Bakery: In this counter we find Nilgiris bread. Health Mix etc are available. sesame. Norton – apple juice. coconut sandwich.

Cook lite. Horlicks. Godrej. tirmeric stick etc under the brand name Everest. rice. Milo. Nilgiri Ghee. The Nilgiris provisions are fixed at 10 % discount. Sundrop. ajwine. Elite. These are manufactured in Nilgiris itself  Spices: Different varieties of spices like pepper. instant mix chilly powder etc. mustard. Jams and Squash: In this counter mainly salt and fast food stuff is available. Parachute. plain truffles. and Vanaspathi etc.  Provisions: Provisions like cereals. coconut. AMULYA. Badam mix. Corn drop. jeera.  Oil and Ghee: All types of oils are available in this counter like Dhara. Custard powder. white and black til.  Baby Products: This counter is basically meant for baby products which contain baby food such as Cerelac. . pistachio tups etc. and nappies are available. Nestle. Jelly. Instant mixes are also available. khus-khus. Bhadshah and also Nilgiris brand name. Macaroni. Saffola. Lactogen. variety of papads are available. Milk powder.  Pickles. Drinking Chocolate. Home Made Sweets: The Nilgiris home made sweets are available in this counter white truffles. Baby cream. are available in this counter. Baby soaps and oils such as Johnson and Johnson. mustard powder. cream caramel. MDH. orange truffles. methi. milk truffles. BMC. atta. maida. Different types of noodles and smoodles (Maggi and Top Raman). Nature fresh.

 Plastic and Utensils: The home appliances are displayed like plastic trolley. curds etc. ―The Nilgiris Nest‖ at Bangalore. The Nilgiris Cake Shop The Nilgiris cake shop. boxes. puffs and milk shakes and fruit juices gives a great pep to the tired shopper. cheese. cheese. butter. srikand. . the fresh green peas are also kept here. Chennai and Coimbatore has ergonomically designed rooms for perfect relaxation. The items kept under frozen are pizza. prawns and dairy products like amul malai. There are 5 refrigerators to refrigerate the items. Each counter is given a counter number. The affordable lodging is surely a wise visitor‘s choice. All types of plastic items are available in this counter. mutton samosa. The supermarket is fully computerized with 9 total numbers of computers. hot pots. glasses. ice creams. with its wide range of oven-fresh pastries. perfumed candles. agarbattis. marts etc. Frozen Items: In this counter the items are kept under frozen condition so that it shouldn‘t spoil. paper plates. fish meat. fish steaks. Nest The pioneers in dairy products have not ignored the need for hospitality for the visiting tourists.

at the best quality in the most convenient setting. Team Work & concern for our commitment They will also make use of the best technology to expand their Retail Network across the Country. . thus creating more value for their customers. Customer focus and commitment to Quality They will create a dynamic organization dictated to Business Excellence through Trust. by providing the most attractive returns for their efforts in Quality and Availability.  Bring prosperity to millions of Indian producers. & provide their employees a supportive.  Unleash the initiative. To enhance their 100 Years of Experience. Vision:     Nilgiris will be recognized for its Integrity. suppliers.CAFE The tastefully furnished Nilgiris Café spreads lip-smacking variety of delicacies for the discerning customer. especially their Customers. partners and stake-holders. Mission:   Be a trusted partner who provides the best products & services the world has to offer. The plush interior. Be a capable and dependable partner to them right through their creation process and help them become more successful. coupled with courteous service is a tourist‘s delight. rewarding environment to work and grow. creativity & energy of Indian workforce through creation of new jobs. Create an efficient and transparent global supply chain by the creation and optimal utilization of world-class infrastructure and international partnerships.

He is the purpose of it. they place further order for large quantity subject to the condition that their minimum required margin of profit is assured in the purchase. they take into account the movement pattern of each item supply period as well as the value of the items. They also ensure that as a large supermarket chain. all Nilgiris branches/franchise unit enjoy the benefit of same rates/margin to all of them. thereby keeping their inventory level in control. However. They are not doing a favour to him by serving him. and accordingly place orders frequently for the products which have to reach them from outstation. He is not dependent on Nilgiris. He is not an outsider on their business.000 different items in their store. He is doing them a favour by giving them an opportunity to do so. They have to continuously monitor the profitability on each product. . They stock only much smaller quantities for not more than 10-12 days requirement. Purchase policy They stock and sell around 6. Nilgiris have to keep a close watch on the market trend and accordingly place orders at the most advantageous rate for some of suppliers like groceries. which they buy to ensure that a certain assured minimum profit margin is available on each purchase.Inspiration A customer is the most important visitor on their premises. They are ordering a largely quantity of items which are fast moving and the items which are slow moving. After the product moves fairly well within 15days period. While introducing a new product in their store. Computerized accounting system. He is not an interruption on their work. They are dependent on him. wherein every order is checked and goods inward notes are prepared in detail to show them the margins available to them. they have to discuss with the suppliers and ensure that the product is taken on consignment basis to be put on trial sale in their store. They believe in ordering goods to ensure all the items are available at all times. He is a part of it.

they have been continuously discussing with the brand majors. In spite of the odds.Supplies co-operation. they do continue their service and keep their image but at what cost? Today. Slowly the manufactures are realizing this and with reluctance they are coming forward to meet a part of their demand with the maximum retail price fixed on all products. as a result of their constant discussions. with the major manufactures/ suppliers. In Chennai. sales on credit card is followed everywhere with great hesitation. It is the Nilgiris own products sale which partly offsets the very poor margins on the branded goods. they have been given a special status by some of these companies. Credit cards do bring in lot more business but again. In fact. To meet this. It is a pity that the manufacturers offer very low margins of 4-5% on the sale value. It must be noted here that on every sales.75 to 3% and as on credit sales they have to meet 3-4% by way of card service charges. whereas their company overhead today stands at around 12. they have to pay a turnover tax of around 1. around 16% sales are on credit card. asking them to realize that a modern retail supermarket offering their products in such convenience to the customers in large volume turnover should not be treated on par with the small kirana stores. around 30% and of their business are on credit cards. they have come forward to treat them on par with C&F agents/distributors and agreed to give direct supplies at better rates. this business is at their cost. They had also started accepting credit cards. over the last few years. The credit card business at Bangalore is also fast going up. Taking into account their strategy and stocking items afresh all the time and the large volumes involved in their store and their own number of units whereby suppliers volume of sales has grown considerable. better margin for mutual growth statistics The product of popular brands is no doubt required by all the customers. .5%. they have been accepting these cards for the past couple of years. At Coimbatore. they cannot survive in the business unless brand leaders recognize their service and offer better margins.

Germany. The department continuously trains its existing employees and builds a healthy working environment within the company. decades of efforts to achieve total quality in product and service have taken Nilgiris to summit of total achievement. The corporate office at Brigade Road. . Malaysia and Sri Lanka. Australia. Bangalore is fully automated with every transaction computerized. Nilgiris vans are plying all over to ensure timely distribution of Nilgiris products to various locations.Nilgiris Today Today. Besides India. Nilgiris products are available in countries like Singapore. Competitors:       Amul Britannia Nandini Modern bread Kwality Sweet chariot Human Resource Department of Nilgiris Human Resource Department is one of the most essential departments here though it does not directly contribute to the production or sales.

physical examination. what kind of physical skill is required etc. It is headed by Major R. They provide security services to many leading organization. NESS recruits the securities and sent them to different organization which comes under this agency. location and the job specification describes what is the educational qualification required for the vacant post. i. The remuneration and welfare of these securities are taken care by NESS and Nilgiris. Recruitment and selection: For recruitment and selection Nilgiris uses both internal source as well as external source.e. the employees refer or recommend someone who is known to him and who fits for the vacant job. After the human resource planning is done. That means hen a job is vacant the employees who are already with Nilgiris is given preference if that particular employee suits or fits for the vacant job. The internal sources of Nilgiris include present employees and employee referrals. Security Section: Security arrangement of the company is provided by NESS – National Ex-service man security agency. job description and job specification is carried out. Job description describes the job title. They forecast the future demand and supply of the right type of people in the right number.P Gopinathan. what kind of training should be given. The selection process in Nilgiris includes preliminary interview. selection decision. and job offer and employment control. Human Resource Manager with consultation with HR executives. employment interview. .Human Resource: Human Resource Planning is done by Managing Director. how much experience is needed. The external source of recruitment in Nilgiris includes advertisement and placement cell. Another source of internal recruitment is employee referrals.

Rating scale method is used for performance appraisal by Nilgiris. Their fringe benefits include provident fund. Training and Development in Nilgiris: Training and development does not play a major role in Nilgiris. So the supervisor trains the labour on the usage of machine. good. attitude. wherein the supervisor train the new employee and make him aware of the new work condition. co-operation etc. attendance. punctuality. In rating scale method several numerical scales are involved. gratuity. Training is very necessary for imparting skills to employees. Employees get salary and fringe benefits. Nilgiris also do performance appraisal for its employees. Performance Appraisal in Nilgiris: Assessment of an individual‘s performance is very essential for every organization. Nilgiris also provide good remuneration to its employees according to the relative worth of the job. medical care by ESI hospitals. Nilgiris usually follow an informal orientation program wherein the HR manager or HR executives introduce the new employee to his colleagues and new work conditions.Orientation Program in Nilgiris: Orientation Program in Nilgiris is conducted for all the new employees in Nilgiris. The HR manager of Nilgiris checks the appropriate performance level on each criterion. each representing a job related performance criterion such as job knowledge. They have only on the job training. and fair which is rated as 50%. Rs 10 per day for . and then computes the employees total numerical score. attendance. Each scale ranges from excellent. uniform. accident relief although there has never been a case of accident in the factory premises. 50-75% and above 75%. The performance of each employee is measured against factors such as job knowledge. initiative output. The number of points scored is linked to salary increase. co-operation. punctuality etc. Workers or laborers need skills to operate machines and use other equipments with least damage and scrap. Remuneration in Nilgiris: Remuneration is the compensation an employee receives in return for his or her contribution to the organization.

Labour Union in Nilgiris: There is no labour Union in Nilgiris. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. reason. Employees also get pension facilities after pension from the company Employee Welfare in Nilgiris: Employee welfare helps to motivate and retain employees.g. Employees also get overtime salary. signs. culture. reason.g. supply of drinking water. and retailers). family.g. brands. products. feel. family. CONCEPTUAL BACKGROUND The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how the psychology of how consumers think. how consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. culture. signs. compensation for accidents.. The behavior of consumers while shopping or making other marketing decisions. products. Women get maternity leave.. loan facilities. media). The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how  The psychology of how consumers think.meal. the psychology of how the consumer is influenced by his or her environment (e.. and retailers).g. toilets. . and select between different alternatives (e. provision of safety measures. media).. brands. Employees get bonus during festivals. feel.  The psychology of how the consumer is influenced by his or her environment (e. One admissible fact in Nilgiris is that they never had a labour problem till date neither they formed any Labour Union. Nilgiris provides some intramutual facilities to its employees like medical facilities. etc. and select between different alternatives (e.

 How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. secure. Product use is often of great interest to the marketer.e.g. For example. by understanding that consumers are more receptive to food advertising when they are hungry.. friend‘s influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). groups. Since many environmental problems result from product disposal (e. aggressive marketing of high fat foods.  Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. it brings up some useful points:  Behavior occurs either for the individual. may have serious repercussions for the national health and economy. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. or garbage piling up at landfills) this is also an area of interest. or organizations and the processes they use to select.   Consumer behavior involves services and ideas as well as tangible products.g. we learn to schedule snack advertisements .. services. There are four main applications of consumer behavior:  The most obvious is for marketing strategy—i. and dispose of products..  The behavior of consumers while shopping or making other marketing decisions. experiences. One "official" definition of consumer behavior is "The study of individuals. and  How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. For example. or in the context of a group (e. for making better marketing campaigns. use. or ideas to satisfy needs and the impacts that these processes have on the consumer and society. The impact of consumer behavior on society is also of relevance. because this may influence how a product is best positioned or how we can encourage increased consumption. motor oil being sent into sewage systems to save the recycling fee." Although it is not necessary to memorize this definition. or aggressive marketing of easy credit.

that if you buy a 64 liquid ounce bottle of laundry detergent. a near miracle cure for acne. In the 1980s. Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this. in this case. we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers. studying consumer behavior should make us better consumers.  As a final benefit.late in the afternoon. Common sense suggests. knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. and then only gradually. Dr. since they will in turn influence many subsequent customers‘ brand choices. however. By understanding that new products are usually initially adopted by a few consumers and only spread later. however. you often pay a size premium by buying the larger quantity. was introduced. went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. you should pay less per ounce than if you bought two 32 ounce bottles. . It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. To get consumers‘ attention. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. would be if we could get illegal drug users to stop. using knowledge of consumer attitudes.  Social marketing involves getting ideas across to consumers rather than selling something. In other words.  A second application is public policy. was deemed to be infeasible. Marty Fishbein. obviously. Unfortunately. to the rest of the population. a marketing professor. for example. In practice. Accutane. a number still became pregnant while taking the drug. This. The best solution. As a result. a goal that was believed to be more realistic. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them.

Complex human behavior can take one invention and create a hierarchy of needs around it. although we may have developed a product that offers great appeal for consumers. and counted as luxuries. Finally. Our main thrust in this course is the consumer. as schools and businesses often came to require their use. a recession may cut demand dramatically. for example. and awareness of its brands) against pressures it faces from the market. market knowledge. we need to examine its assets (e.There are several units in the market that can be analyzed. a growing segment. a shrinking market. by virtue of a changing society. Their awareness did not necessarily combat their emotional needs. done to ensure a certain brand of a product becomes a best-selling item. the sales of luxury items go up. A competing firm that targets babies. and often. those items had become more than simple luxuries. is likely to consider repositioning toward our market. we will also need to analyze our own firm‘s strengths and weaknesses and those of competing firms. a writer named Vance Packard started a minor revolution with his book. What they also did. are buying the product anyway. Packard uncovered the manipulations of the advertising community. However. The Hidden Persuader. technology. In 1957. that we make a product aimed at older consumers. In the 1970s and early 1980s.g. . He urged consumers to be cautious and not fall prey to hidden meanings or symbols in advertising. household items such as computers and video recorders were new.. For example. Whereas economists or marketing strategists might look to numbers-wages or interest levelspsychologists know that something more motivates the consumer purchase trends. They have discovered that often in the most depressed economic times. To assess a competing firm‘s potential threat. and people started looking for the subtle messages in everything from liquor ads to spaghetti packages. and pointed out less-than-honest representations of what a product could do for the buyer. By 1999. Psychologists understand that in the burgeoning economy of the early twenty-first century people's needs and wants are continually growing too. we need to assess conditions (the marketing environment). The book was popular. Suppose. patents.

g. and if so. its value. Whether any brand had preferential display space. Online shopping habits might differ drastically from catalogue sales or in-store purchases. . These trends are just beginning to be studied. It is now possible to assess the relative impact of a number of factors on the consumer‘s choice—e.     Whether the target brand (and/or a competing one) is on sale during the store visit. and Whether a coupon was used for the purchase and. and certainly consumer psychologists will be studying buying habits well into the twenty-first century. C.  What brand in a given product category was bought during the last. or a series of past.  Whether. purchase occasions. (Electronic equipment run by firms such as A.Consumer psychology is a pursuit that is likely to expand now that an estimated $5 billion worth of products were purchased online by the spring of 2000. if so. how many times a consumer has seen an ad for the brand in question or a competing one. Nielsen will actually recognize the face of each family member when he or she sits down to watch). The impact of income and/or family size on purchase patterns.

and toilet paper. A single purchase. . drinks. buy a competing product.A ―split cable‖ technology allows the researchers to randomly select half the panel members in a given community to receive one advertising treatment and the other half another. only available for certain grocery item product categories—e. food items. cleaning items. laundry detergent. In the case of items that are purchased frequently. these products would be purchased quite infrequently. for example. Interestingly. paper towels. advertising. This most likely results from the reality that one must pay greater attention while channel surfing than when watching a commercial in order to determine which program is worth watching. the best result of advertising exposure since there are no other systematic differences between groups. beverages. Scanner data is.. or buy nothing at all depending on the status of the brand of interest and competing brands. there may be promotions associated with several brands going on at the same time.. then. In the case of the purchase of an MP3 player. as opposed to neighborhood. It is not available for most non-grocery product items. Scanner data analysis is most useful for frequently purchased items (e. it has been found that consumers tend to be more influenced by commercials that they ―zap‖ through while channel surfing even if they only see part of the commercial. computers. and MP3 players. at the present time.g. and each may advertise. Thus. pricing of the product and competitors. The selection is truly random since each household. Even if scanner data were available for electronic products such as printers. and availability of a coupon—since we have at most one purchase instance during a long period of time during which several of these factors would apply at the same time. the consumer has the opportunity to buy a product. observed differences should. shelf space. allowing for sampling error.g. food items.. in contrast.g. snacks. It may also be that the purchase was motivated by the breakdown of an existing product or dissatisfaction or a desire to add more capabilities. and toilet paper) since a series of purchases in the same product category yield more information with greater precision than would a record of one purchase at one point in time. is selected to get one treatment or the other. would not be as effective in effectively distinguishing the effects of different factors—e.

a subject may be asked.Physiological measures are occasionally used to examine consumer response. he or she is likely either not to be paying as much attention as desired or to be confused by an overly complex sequence. advertisers may want to measure a consumer‘s level of arousal during various parts of an advertisement. In a variation of direct physiological measures. In situations where the subject‘s eyes do move. and approval by moving a lever or some instrument (much like one would adjust the volume on a radio or MP3 player). it was found that viewers tended to respond negatively when he referred to ―speaking truthfully‖ but favorably when the President referred to the issues in controversy as part of his ―private life. Mind-reading would clearly not be ethical and is. This can be used to assess possible discomfort on the negative side and level of attention on the positive side. we can track whether the respondent is following the sequence intended. A subject may. comfort. be demonstrating good characteristics—such as appropriate level of arousal and eye movement—during some of the ad sequence and not during other parts. Republican strategist used this technique during the impeachment and trial of Bill Clinton in the late 1990s. not possible in any event.‖ The Republican researchers were able to separate . indicating lower levels of attention. liking. These readings will not reveal what the subject actually thinks. By attaching a tiny camera to plain eye glasses worn by the subject while watching an advertisement. for example. By watching approval during various phases of a speech by the former President. gives some guidance as to which parts of the ad are effective and which ones need to be reworked. This. then. at various points during an advertisement. However. If he or she is not. we can assess whether this movement is going in the intended direction. at the present time. but it is possible to distinguish between beta waves—indicating active thought and analysis—and alpha waves. If the focus remains fixed throughout an ad sequence where the interesting and active part area changes. An important feature of physiological measures is that we can often track performance over time. it is possible to measure brain waves by attaching electrodes. it is possible to determine where on screen or other ad display the subject focuses at any one time. For example. to indicate his or her level of interest.

if at one point Democrats reacted positively and Republicans responded negatively with the same intensity. the more flexible and less precise method—such as focus groups and/or individual interviews— should generally be used before the less flexible but more precise methods (e. and Republicans. that somewhere between 5% and 40% of the target market would be interested in the product we have to offer. marketing research can be.g. if more than one type of research is to be used. (For example. the average result of apparent indifference would have been very misleading). Therefore. 17-21%. It is not possible to ask follow-up questions. we may be able to narrow the 95% confidence interval for the percentage of the target market that is seriously interested in our product to. Even if we assume that these are independent. research should only be commissioned when it is worth the cost. they either would like a product to be launched or would prefer that . surveys and scanner data) are used. Managers frequently have their own ―agendas‖ (e. a range that is much more meaningful.000+ responses. Independents.25?) Secondly. Research sequence. in general. Thus. Focus groups and interviews are flexible and allow the researcher to follow up on interesting issues raised by participants who can be probed. we would have a total of forty responses. say.75 or $2.g. If we run five focus groups with eight people each. for example. because the sample sizes are small and because participants in a focus group are influenced by each other. we can use our insights from focus groups and interviews to develop questionnaires that contain specific questions that can be asked to a larger number of people. effectively looking at different segments to make sure that differences between each did not cancel out effects of the different segments. Cautions: Some cautions should be heeded in marketing research..average results from Democrats. This is usually no more precise than what we already reasonably new. in contrast. and often is. In general. First. We might conclude. abused.. but with a sample size of 1. are highly inflexible. for example. Questionnaires. There will still be some sampling error. However. research should normally be useful in making specific decisions (what size should the product be? Should the product be launched? Should we charge $1. a sample size of forty would give very imprecise results. few data points are collected.

targeting and positioning together comprise a three stage process.‖ The Pentagon. it was later found that the conclusion was based on the question ―What single thing can we do to improve programming?‖ If you did not write in something like ―Carry Rush Limbaugh. However. In the auto market. In general. although this finding was reported without question in the media.it not be launched so that the firm will have more resources left over to tackle their favorite products). within a year of the election of Democrat Bill Clinton. it holds true that ―You . for example. One example of misleading research. Targeting. reported that only 4. Segmenting. Segmentation involves finding out what kinds of consumers with different needs exist.2% of soldiers listening to the Armed Forces Network wanted to hear Rush Limbaugh. (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way. then (2) select which ones we are best off trying to serve and. which was reported nationwide in the media. while others are much more concerned about roominess and safety.‖ you were counted as not wanting to hear him. and Positioning Segmentation. some consumers demand speed and performance. Often. finally. a way to get your way is to demonstrate through ―objective‖ research that your opinions make economic sense. involved the case of ―The Pentagon Declares War on Rush Limbaugh. We first (1) determine which kinds of customers exist.

These travelers—usually business travelers—pay high fares but can only fill the planes up partially. Thus. this is the case only for commodities. For example. In contrast. that the variables that are most relevant in separating different kinds of soft drink consumers are (1) preference for taste vs. there are three approaches to marketing. consumers on the average prefer spicier soups—thus. non-cola taste. low calories. West). (2) preference for Cola vs. Several different kinds of variables can be used for segmentation. gender. in practice. has found that Western U. light consumers. and (4) heavy vs. it becomes impossibly cumbersome to work with more than a few at a time. We now put these variables together to arrive at various combinations. you get a different product in the same cans at .can‘t be all things to all people. for example. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over. In the undifferentiated strategy. ethnicity. all consumers are treated as the same. In the concentrated strategy. Usually. for instance. location (rural vs. yet.  Demographic variables essentially refer to personal statistics such as income. and family size. most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. Generically. with firms not making any specific efforts to satisfy particular groups. (3) price sensitivity—willingness to pay for brand names. There may be a large number of variables that can be used to differentiate consumers of a given product category.‖ and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. East vs. education. we need to determine which variables will be most useful in distinguishing different groups of consumers.S. one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. urban. This may work when the product is a standard one where one competitor really can‘t offer much that another one can‘t. Note that segmentation calls for some tough choices. We might thus decide. Campbell‘s soup.

McD‘s would probably be better off targeting families in search of consistent quality food in nice.e. Some consumers.‖  Some consumers want to be seen as similar to others. a manufacturer came out with the Lady Remington. how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. First. Some consumers are ―brand loyal‖— i. a more compact. Secondly. while a different segment wants to stand apart from the crowd. they tend to stick with their preferred brands even when a competing one is on sale. we decide to target one or more segments. Another basis for segmentation is behavior. how large is the segment. Facing flat sales of guns in the traditional male dominated market. for example. Taking this a step farther. While McDonald‘s has a great reputation for fast. For example. Some consumers are ―heavy‖ users while others are ―light‖ users. while another segment is more interested in breathe freshening. Some consumers use toothpaste primarily to promote oral health. do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. In the next step. family friendly food. like scented soap (a segment likely to be attracted to brands such as Irish Spring). Our choice should generally depend on several factors. Thus. research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumers—presumably a rather intoxicated group. rapidly growing segment is that it tends to attract competition). and how can we expect it to grow? (Note that a downside to a large. consistent quality. clean restaurants.the East and West coasts. it would be difficult to convince consumers that McDonald‘s now offers gourmet food. essentially bypassing demographic explanatory variables. Thirdly. handier gun more attractive to women. while others prefer the ―clean‖ feeling of unscented soap (the ―Ivory‖ segment).. it is also possible to segment on lifestyle and values. .   One can also segment on benefits sought.

There is less emphasis on efficiency. Elaborate logistical designs allow goods to be moved at the lowest cost. and less value is put on customizing the offering for the specific customer. The emphasis here is mostly on low cost. Wal-Mart is an example of this discipline.  Customer intimate firms. is aimed a ―techies. . which is sacrificed for providing more precisely what is wanted by the customer. thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. For example. Apple has done a lot through its advertising to promote itself. Reliability is also stressed. through its unintimidating icons.Positioning involves implementing our targeting. which excel in serving the specific needs of the individual customer well. which maintain a strong competitive advantage by maintaining exceptional efficiency. in contrast. as a computer for ―nongeeks. with extensive systems predicting when specific quantities of supplies will be needed.‖ Michael Treacy and Fred Wiersema suggested in their 1993 book The Discipline of Market Leaders that most successful firms fall into one of three categories:  Operationally excellent firms. subject to reliable performance. Thus.‖ The Visual C software programming language. Nordstrom‘s and IBM are examples of this discipline. Apple Computer has chosen to position itself as a maker of user-friendly computers.

g. Instead.. constantly maintaining leadership in innovation. It may then be possible to attempt to ―move‖ one‘s brand in a more desirable direction by selectively promoting certain points. Technologically excellent firms. which produce the most advanced products currently available with the latest technology. Nordstrom‘s and Intel both must meet some standards of cost effectiveness. because they work with costly technology that needs constant refinement.‖ allowing us to plot brands against each other. and in many cases. does maintain some level of customer service. subjects are asked to rate the extent of similarity of different pairs of products (e. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customer‘s perception on each dimension is relatively clear (as opposed to being ―made up‖ on the spot to be able to give the researcher a desired answer). cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Sears.‖ Repositioning in practice is very difficult to accomplish. Treacy and Wiersema suggest that in addition to excelling on one of the three value dimensions. These firms. Here. Wal-Mart. we identify how products are perceived on two or more ―dimensions. market researchers identify dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. beyond meeting the minimum required level in the two other dimensions. is on the dimension of strength. it is important to understand how one‘s brand and those of competitors are perceived. firms must meet acceptable levels on the other two. Intel is an example of this discipline. usually because the existing position that the brand holds has become less attractive. One approach to identifying consumer product perceptions is multidimensional scaling. attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered ―everyday low prices. . A great deal of money is often needed for advertising and other promotional efforts. respondents are not asked about their perceptions of brands on any specific dimensions. for example. There are two main approaches to multi-dimensional scaling. the repositioning fails. for example. To effectively attempt repositioning. In the similarity rating approach. The emphasis. Repositioning involves an attempt to change consumer perceptions of a brand. In the prior approach.

for example. Perhaps. The first one is problem recognition—you realize that something is not as it should be. take your car in for repair. . Finally. and sometimes a post-purchase stage (e.g.. a person may resume alternative identification during while evaluating already known alternatives. on a scale of 1-7. you return a product to the store because you did not find it satisfactory). A skateboard is inexpensive. This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category. ride the bus. The computer does not reveal what each dimension means—that must be left to human interpretation based on what the variations in each dimension appears to reveal. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car. ride a taxi. we have the purchase stage. For example. buy a used car.How similar. In reality. and how similar is Toblerone to Three Musketeers?) Using computer algorithms. but may be ill-suited for long distances and for rainy days. The third step involves evaluation of alternatives. or ride a skateboard to work. your car is getting more difficult to start and is not accelerating well. One model of consumer decision making involves several steps. is Snicker‘s to Kitkat. the computer then identifies positions of each brand on a map of a given number of dimensions. Information Search and Decision Making Problem Recognition. people may go back and forth between the stages.

g. Consumers engage in both internal and external information search. a word processing program or acne medication).. Focusing on the large motor will do less good than portraying a successful person driving the car. which means that the intruder will not be able to harm the consumer‘s family. A handgun may aim bullets with precision. leading to a feeling of power. which achieves the desired endstate of security. leading to a feeling of performance. a car) or are highly significant in the consumer‘s life in some other way (e. we can use the Means-End chain. a consumer may see that a car has a large engine. wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit. In general. which enables the user to kill an intruder. leading to fast acceleration. it is important to portray the desired end-states.Consumer involvement will tend to vary dramatically depending on the type of product. which ultimately improves the consumer‘s self-esteem.. Information search and decision making. consumer involvement will be higher for products that are very expensive (e. In advertising. . To achieve this goal. Thus. It is important to consider the consumer‘s motivation for buying products.g. for example. a home.

g. web sites. few people will search the Yellow Pages for fast food restaurants.. For example. and visit several dealerships. consumers are more likely to use an external search. other good features such as taste and low calories cannot overcome this one ―non-negotiable‖ attribute. For example. a parent may reject all soft drinks that contain artificial sweeteners. or news coverage. Thus. For high involvement products. If the price is sufficiently inexpensive and gas efficient. For example. For certain low involvement products. and how great are differences between brands . Here.Internal search involves the consumer identifying alternatives from his or her memory. read reviews in Consumer Reports. it is very important that marketing programs achieve ―top of mind‖ awareness. Before buying a car. A compensatory decision involves the consumer ―trading off‖ good and bad attributes of a product. a decision will involve a non-compensatory strategy. the consumer may ask friends‘ opinions. thus. the consumer may then select it over a car with better acceleration that costs more and uses more gas. for example. consult several web sites. Occasionally. a car may have a low price and good gas mileage but slow acceleration. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there. firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e. the consumer must be able to retrieve one‘s restaurant from memory before it will be considered. through brochures.

Some people. Consumers will tend to change their behavior through learning— e. and situational characteristics (as previously discussed). a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. Perception influences decisions. for example. consumers will be more motivated. A number of factors involve consumer choices. and some are more receptive to stimulation and excitement in trying new stores. they will avoid restaurants they have found to be crowded and will settle on brands that best meet their tastes. many marketers offer a money back guarantee. Alternatively. or one that he or she remembers that is needed only once inside the store. one may be more careful choosing a gift for an in-law than when buying the same thing for one self. the consumer may pay more attention to car ads than when this is not in the horizon. a person may buy an item which is currently on sale. Consumers differ in the values they hold (e.g. . consumer characteristics (how interested is a consumer.. For example. but rather because the consumer wants a ―change of pace.. This represents a somewhat ―fuzzy‖ group. when looking for a new car. Some consumers are also more motivated to comparison shop for the best prices. Selective perception occurs when a person is paying attention only to information of interest. some people are more committed to recycling than others who will not want to go through the hassle).‖ and  ―Impulse‖ purchases—unplanned buys. For example. In some cases.g.expected to be?). while others are more convenience oriented. Two interesting issues in decisions are:  Variety seeking (where consumers seek to try new brands not because these brands are expected to be ―better‖ in any way. We will consider the issue of lifestyle under segmentation. in analyzing product characteristics and making the best possible deal?). For example. Some like variety more than others. generally. Some consumers are put off by perceived risk. Thus. Personality impacts decisions. product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?). can taste the difference between generic and name brand foods while many cannot.

this situation is. Divorce usually entails a significant change in the relative wealth of spouses. some non-custodial parents will be called on to pay a large part of their income in child support. In real life. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce. in some cases. Then we have one of the scenarios: Single parenthood can result either from divorce or from the death of one parent. the noncustodial parent (usually the father) will not pay the required child support. of course. . Individuals and families tend to go through a "life cycle:" The simple life cycle goes from For purposes of this discussion. many couples undergo divorce.Families and Family Decision Making The Family Lifecycle. For example. This is particularly a problem when the non-custodial parent remarries and has additional children in the second (or subsequent marriages). On the other hand. In some cases. that still may not leave the custodial parent and children as well off as they were during the marriage. a bit more complicated. a "couple" may either be married or merely involve living together. and even if he or she does.

divorce often results in a large demand for:   Low cost furniture and household items Time-saving goods and services Divorced parents frequently remarry. he or she tends to advance in his or her career and tends to get greater income (exceptions: maternity leave. retirement). divorce. Integrating all the possibilities discussed.In any event. we may see Another variation involves Here. . the single parent who assumes responsibility for one or more children may not form a relationship with the other parent of the child. there are two main themes in the Family Life Cycle. subject to significant exceptions:  As a person gets older. or become involved in other non-marital relationships. we get the following depiction of the Family Life Cycle: Generally. thus.

who seek out information about products of relevance. but not which brand. These individuals often have a great deal of power because they may selectively pass on information that favors their chosen alternatives. Note that although a single person may have a lower income than a married couple. Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. the single may be able to buy more discretionary items. The purchaser may have to make a substitution if the desired brand is not in stock. obligations also tend to increase with time (at least until one‘s mortgage has been paid off). The purchaser may disregard instructions (by error or deliberately). this introduces some problems since the purchaser can be targeted by point-of-purchase (POP) marketing efforts that cannot be aimed at the decision maker. Some individuals are information gatherers/holders. that the role of the decision maker is separate from that of the purchaser. Also note that the distinction between the purchaser and decision maker may be somewhat blurred:    The decision maker may specify what kind of product to buy. however. but they may make their wishes known by asking for specific products or causing embarrassing situations if their demands are not met. . Influencers do not ultimately have the power decide between alternatives. From the point of view of the marketer. The decision maker(s) have the power to determine issues such as:      Whether to buy. Unfortunately. and When to buy. Children and paying for one‘s house are two of the greatest expenses. Family Decision Making. Where to buy it. Note. Which product to buy (pick-up or passenger car) Which brand to buy.

The reality is that few families are wealthy enough to avoid a strong tension between demands on the family‘s resources. a man cries if his wife will not let him buy a new rap album). Some family members may resort to various strategies to get their way. where one tries to make one‘s side look good (e.. Group Influences Humans are inherently social animals.g. and individuals greatly influence each other. a child may promise to walk it every day if he or she can have a hippopotamus. its potential is limited by legitimate differences in values illustrated above. Also note that individuals may simply try to "wear down" the other party by endless talking in the guise of reasoning (this is a case of negative reinforcement as we will see subsequently). Who is right? There is no clear answer here.It should be noted that family decisions are often subject to a great deal of conflict. or the one who makes the most money).g." the mother of the children. One is impression management. Authority involves asserting one‘s "right" to make a decision (as the "man of the house. and that there is frequently no "objective" way to arbitrate differences. the wife says that her husband can take an expensive course in gourmet cooking if she can buy a new pickup truck. Various manipulative strategies may also be used. The situation becomes even more complex when more parties—such as children or other relatives—are involved. One spouse may believe that it is important to save for the children‘s future. One is bargaining— one member will give up something in return for someone else. or argue that all "decent families make a contribution to the church"). Conflicting pressures are especially likely in families with children and/or when only one spouse works outside the home. Another strategy is reasoning—trying to get the other person(s) to accept one‘s view through logical argumentation. Note that many decisions inherently come down to values. Emotion involves making an emotional display to get one‘s way (e. argue that a new TV will help the children see educational TV when it is really mostly wanted to see sports programming. Note that even when this is done with a sincere intent. A useful framework of analysis of group influence on the individual is the so called reference group—the term comes about because an individual uses a relevant group . For example.. Alternatively. the other may value spending now (on private schools and computer equipment) to help prepare the children for the future.

" "proper. and organizations. the process of clothes buying is a two stage process. The difference between the latter two categories involves the individual‘s motivation for compliance." or "cool"). or identification.g. Reference groups come with various degrees of influence. or members of churches. In the later phase. members of a fraternity/sorority. Primary reference groups come with a great deal of influence—e. This stage is typically much briefer.. a former anthropologist turned retail consultant and author of the book Why We Buy has performed research suggesting that among many teenagers. For example. coworkers. In the first stage. many firms use athletes as spokespeople. the dissociative reference group includes people that the individual would not like to be like. the teenagers go on a "reconnaissance" mission with their friends to find out what is available and what is "cool. Paco Underhill. Reference groups come in several different forms. For example.." "responsible.g. neighbors. the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people.g. clubs. and these represent what many people would ideally like to be.as a standard of reference against which oneself is compared. parents—who will need to pay for the purchases—are brought. members of a boating club that one encounter only during week-ends are likely to have their influence limited to consumption during that time period. normative(members influence what is perceived to be "right.. The Quality Paperback Book Club specifically suggests in its advertising that its members are "a breed apart" from conventional readers of popular books. Secondary reference groups tend to have somewhat less influence—e. Another typology divides reference groups into the informational kind (influence is based almost entirely on members‘ knowledge).  Finally.  Associative reference groups include people who more realistically represent the individuals‘ current equals or near-equals—e. the individual tends to comply largely for utilitarian reasons— .  The aspirational reference group refers to those others against whom one would like to compare oneself. In case of the normative reference group." This is often a lengthy process.

we may categorize it as a Coke. In order for stimuli to be consciously processed. when we ―see‖ a friend three hundred feet away at his or her correct height. Perception Background: Our perception is an approximation of reality. . For example. however. Our brain attempts to make sense out of the stimuli to which we are exposed. are based on extensive repetition rather than much conscious attention). attention is needed. however. but low when commercials come on during a television program. In contrast. and signs and banners placed at shopping malls that we pass. Note. if an advertisement for a product in which we are interested comes on. This works well. but there is no real motivation to dress that way outside the job. Interpretation involves making sense out of the stimulus. for example. we are exposed to numerous commercial messages while driving on the freeway: bill boards. Attention is actually a matter of degree—our attention may be quite high when we read directions for getting an income tax refund. if we are shopping for a car. Exposure involves the extent to which we encounter a stimulus. Exposure is not enough to significantly impact the individual—at least not based on a single trial (certain advertisements. it may be instantly escalated—for example. certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume. we may deliberately seek out advertisements and ―tune in‖ when dealer advertisements come on the radio. bumper-stickers on cars. Factors in perception: Several sequential factors influence our perception. However. people comply with identification groups‘ standards for the sake of belonging—for example. For example.dressing according to company standards is likely to help your career. when we see a red can. or commercial exposures such as the ―Swoosh‖ logo. Most of this exposure is random—we don‘t plan to seek it out. our perception is sometimes ―off‖—for example. a member of a religious group may wear a symbol even outside the house of worship because the religion is a part of the person‘s identity. radio advertisements. that even when attention is low.

if you hold an object weighing one pound in your hand. Several factors influence the extent to which stimuli will be noticed. you are likely to notice it when that weight is doubled to two pounds. when they have a choice. movie goers in a theater had been exposed to isolated frames with the words ―Drink Coca Cola‖ and ―Eat Popcorn‖ imbedded into the movie. Subliminal stimuli.3 --> 2. if you are holding twenty pounds. Secondly. One of the most important factors. There is research to show that people will start to giggle with embarrassment when they are briefly exposed to ―dirty‖ words in an experimental machine. . there is a question as to whether this experiment ever took place or whether this information was simply made up. greater size. Consumers often do not give much attention to a stimuli—particularly a low priority one such as an advertisement—at any one time.. That is.g.5 --> 2.0 --> 2. Surprising stimuli are likely to get more attention—survival instinct requires us to give more attention to something unknown that may require action. This led Congress to ban the use of subliminal advertising. many very irritating advertisements are remarkably effective). but if it is seen over and over again.7 --> 2.00). you must accomplish that gradually—e. Coke and popcorn sales were significantly higher than on days they were left off.15 –> 2.Weber‘s Law suggests that consumers‘ ability to detect changes in stimulus intensity appear to be strongly related to the intensity of that stimulus to begin with.g. no one has been able to replicate these findings. very unpleasant stimuli are also likely to get attention—thus. A greater contrast (difference between the stimulus and its surroundings) as well as greater prominence (e. center placement) also tend to increase likelihood of processing. First of all. you are unlikely to detect the addition of one pound—a change that you easily detected when the initial weight was one pound. are also more likely to attend to pleasant stimuli (but when the consumer can‘t escape.. These frames went by so fast that people did not consciously notice them. however. One obvious issue is relevance. 3. it was reported that on selected evenings. the cumulative impact will be greater. is repetition. However. Consumers. You may be able to eliminate one ounce from a ten ounce container. but it was reported that on nights with frames present. Back in the 1960s. but you cannot as easily get away with reducing a three ounce container to two (instead.

Consider this sequence: . the exposure is so brief that the subjects are not aware of the actual words they saw. Pavlov could ring the bell without feeding the dogs and they would still salivate. we may not be able to give a conscious explanation as to the reason for our preference. we may experience the sales people in one store being nicer to us than those in the other. many people will avoid foods that they consumed shortly before becoming ill. For example. By pairing the bell with the unconditioned stimulus." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. We thus may develop a preference for the one store over the other. the bell became a conditioned stimulus (CS) and salivation in response to the bell (with no meat powder) became a conditioned response (CR). In the jargon of classical conditioning. again. when preceded by the meat powder. it is a biologically "hard-wired" response to salivate when you are fed. Pavlov discovered that when dogs were fed meat powder they salivated. Much early work on learning was actually done on rats and other animals (and much of this research was unjustifiably cruel. Learning and Memory Background: Learning involves "a change in the content or organization of long term memory and/or behavior. however. but it is evident that something has been recognized by the embarrassment displayed. the dogs would begin salivating in anticipation of being fed (this was efficient. if pressed. Pavlov then discovered that if a bell were rung before the dogs were fed. an unconditioned response (UR). That is. the meat powder was an unconditioned stimulus (US) and the salivation was.Here. For example. Learning is not all knowledge based. but that is another matter). Pavlov then found that after the meat had been "paired" with the meat powder enough times. Classical conditioning: Pavlov‘s early work on dogs was known as classical conditioning. since they could then begin digesting the meat powder immediately). Many modern day advertisers use classical conditioning in some way.

The general pattern is: There are three major forms of operant learning. conditioning. an individual does something and is rewarded. or operant. For example. In positive reinforcement. and you are thus more likely to eat a similar candy bar in the future (behavioral change). He or she is then more likely to repeat the behavior. it tastes good (consequence).Operant conditioning: Instrumental. and this what we usually think of as learning. . involves a different series of events. you eat a candy bar (behavior).

the behavior may be learned. Another issue is schedules of reinforcement and extinction. You eat what looks like a piece of candy (behavior). the more effective the learning. she will probably stop that behavior. it is not necessary to reward a behavior every time for learning to occur. Several different schedules of reinforcement are possible:  Fixed interval: The consumer is given a free dessert on every Tuesday when he or she eats in a particular restaurant. an individual is rewarded every time a behavior is performed (e. marketers usually have relatively little power to use punishment or negative reinforcement. the closer in time the consequences are to the behavior. An example of negative reinforcement is an obnoxious sales person who calls you up on the phone. In general. For example. and manufacturers may void warranties if the consumers take their product to non-authorized repair facilities. Sometimes. and subsequently you are less likely to eat anything that looks remotely like that thing ever again (changed behavior). if a passenger learns that yelling at check-in personnel no longer gets her upgraded to first class. Even if a behavior is only rewarded some of the time. You eventually agree to buy it (changed behavior). . a consumer gets a soft drink every time coins are put into a vending machine). Several factors influence the effectiveness of operant learning. electric utilities would be more likely to influence consumers to use less electricity at peak hours if the consumers actually had to pay when they used electricity (e. However. pressuring you into buying something you don‘t want to do (aversive stimulus). In general.Punishment is the opposite..g..g. It should be noted that negative reinforcement is very different from punishment. Extinction occurs when behavior stops having consequences and the behavior then eventually stops occurring. parking meters are often used to discourage consumers from taking up valuable parking space. That is. Learning is also more likely to occur when the individual can understand a relationship between behavior and consequences (but learning may occur even if this relationship is not understood consciously). only to discover that it is a piece of soap with a foul taste (consequences). However. and the sales person leaves you alone (the aversive stimulus is terminated as a result of consequences of your behavior). through a coin-slot) rather than at the end of the month.

where a poor man is rejected by women until he treats his dandruff with an effective cure. a free product is provided). (E. For example. every time the consumer enters the store. That is.  Variable ratio: Every time an action is performed. every tenth time a frequent shopper card is presented. Memory ranges in duration on a continuum from extremely short to very long term. but rather to deter the behavior in others.. Thus. which is more permanent. In order for something to enter into long term memory. since these were more similar to beverages already consumed. is a reward). stores may make a big deal out of prosecuting shop lifters not so much because they want to stop that behavior in the caught. is a good example of vicarious learning. we reinforce approximations of the desired behavior. For example. Rather than introducing Coca Cola directly in Indonesia. Vicarious learning. The consumer may get a free hamburger twice in a row. This is known as short term memory. then buy it with a large cents off coupon. viewers may empathize with characters in advertisements that experience (Usually positive) results from using a product. With each ticket. you only keep the phone number in memory until you have dialed it. if good. Similarly. or he or she may go ten times without getting a hamburger even once. there is a certain percentage chance that a reward will be given. For slightly longer duration. Sometimes. and finally buy it at full price. when you see an ad on TV for a mail order product you might like to buy. The Head ‗n‘ Shoulders advertisement. Variable ratio reinforcement is least vulnerable to extinction. Sensory memory includes storage of stimuli that one might not actually notice (e. he or she is given a lottery ticket. it may be impossible to teach the consumer to directly perform the desired behavior. you must usually . fruit flavored soft drinks were first introduced. Fixed ratio: Behavior is rewarded (or punished) on every nth occasion that it is performed. there is a 20% chance of getting a free hamburger. the color of an advertisement some distance away).. shaping may be necessary to teach the consumer the desired behavior. For example. a consumer may first get a good product for free (the product itself.g.g. The consumer does not always need to go through the learning process himself or herself—sometimes it is possible to learn from observing the consequences of others.

Alternatively..g. Several techniques can be used to enhance the memo ability of information..g. when seeing an ad for Dole bananas.g. This could be because the information was given lower priority than something else—e. four repeated 3 times (2 pieces). For example. ―Spreading activation‖ involves the idea of one memory ―triggering‖ another one. we will be able to remember the location of a restaurant we tried last time we were in Paris. ―Rehearsal‖ involves the consumer repeating the information over and over so that it can be remembered. For example. not because you deliberately memorize them. you will probably repeat it to yourself many times. the information is not learned deliberately.―rehearse‖ it several times. Thus. and 1000 (1-2 pieces). the person may think of the color yellow. but it may take some thinking before the information emerges. and to baseball . The Dole brand name may then be activated when any of those stimuli are encountered. consider the phone number (800) 444-1000.. ―Chunking‖ involves rearranging information so that fewer parts need to be remembered. we have done a lot of things since last buying a replacement furnace filter and cannot remember where this was bought last. this is often done so that a phone number can be remembered while the ―memories‖ moves to the phone to dial it. ―Elaboration‖ involves the consumer thinking about the object—e. but is gradually absorbed through repetition. For example. one might think of Coke every time one remembers a favorite (and very wise) professor who frequently brought one to class. you get to learn your driver‘s license or social security numbers with time. going to the zoo seeing a monkey eating a banana. the information can be retrieved but is not readily ―available‖—e. Coke might also be tied a particular supermarket that always stacked a lot of these beverages by the entrance. it is to the advantage to a marketer to have an advertisement repeated extensively—especially the brand name. The eight digits can be more economically remembered as an 800 number (1 piece). ―Recirculation‖ involves repeated exposure to the same information. and her grandmother‘s banana-but bread. For example. Memories are not always easily retrievable. when you move and get a new phone number. but instead because you encounter them numerous times as you look them up. Other times. the product in an advertisement—and thinking about as many related issues as possible.

people will more likely remember Coke or Kleenex than competing brands. the problem is the reverse—learning something new blocks out something old. we may not remember the phone number of a friend to whom we have not spoken for several months and may forget what brand of bullets an aunt prefers if we have not gone ammunition shopping with her lately. Thus. One is decay. charcoal on a porch next to a grill rather than in a garage or kitchen—is more likely to be remembered (unless the incongruence triggers an elaboration—life is complicated!) Redundancies involve showing the stimulus several . Congruence involves the ―fit‖ with a situation. For example.. information that is not accessed frequently essentially ―rusts‖ away. One is more likely to remember favorable—or likable stimuli (all other things being equal). if you once used WordPerfect than then switched to Microsoft Word. will more likely be remembered. For example. For example. There are numerous reasons why retrieval can fail or.where this beverage was consumed after the game. Memorability can be enhanced under certain conditions. a product which is very visible in an ad and handled and given attention by the actors. if your best friend for many years has been Jennifer Smith. You may be unable to remember what a new. you may have trouble remembering how to use WordPerfect at a friend‘s house—more so than if you had merely not used any word processing program for some time. you may have difficulty remembering that your new friend Jennifer‘s last name is Silverman. Proactive interference involves something we have learned interfering with what we will late later. and less important. in less fancy terms. we may have more difficulty later remembering what other brands are available. Thus. Salience—or the extent to which something is highly emphasized or very clearly evident—facilitates memory. if we remember that everyone in our family always used Tide. Therefore. Other times. something featured in an appropriate setting—e.g. Prototypicality involves the extent to which a stimulus is a ―perfect‖ example of a category. Since memory is often reconstructed based on what seems plausible. the problem may rest in interference. In retroactive interference. It is useful for firms to have their product be activated by as many other stimuli as possible. friend‘s last name is if that person shares a first name with an old friend. Here. how we come to forget.

through its unintimidating icons. the Hallmark brand name is more likely to be activated. A great deal of money is often needed for advertising and other promotional efforts.‖ Repositioning involves an attempt to change consumer perceptions of a brand. is aimed a ―techies. if a given product is shown several places in a house—and if the brand name is repeated—it is more likely to be remembered. Sears. attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered ―everyday low prices. when one thinks of anniversaries. Thus. usually because the existing position that the brand holds has become less attractive. (This is a special case of spreading activation discussed earlier). In general. how to send a package).times. Thus. as a computer for ―nongeeks. Thus. for example.. for example.‖ or procedures we remember for doing things..g. Scripts involve a series of steps for doing various things (e. the repositioning fails.g. the stimulus is more likely to be retrieved. usually a brand or retail store. Attitudes Introduction Consumer attitudes are a composite of a consumer‘s (1) beliefs about. For example. and in many cases. to have the consumer reflexively ask the pharmacist for Bayer rather than an unspecified brand of aspirin).‖ Repositioning in practice is very difficult to accomplish. in contrast.‖ The Visual C software programming language. (2) feelings about. A special issue in memory is so called ―scripts. Positioning involves implementing our targeting. . Apple Computer has chosen to position itself as a maker of user-friendly computers. Apple has done a lot through its advertising to promote itself. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object. Priming involves tying a stimulus with something so that if ―that something‖ is encountered. (3) and behavioral intentions toward some object--within the context of marketing. it is useful for firms to have their brand names incorporated into scripts (e.

. On the other .. that a historical figure was a good person but also owned slaves). for each belief. upon closer examination. Note also that the beliefs that consumers hold need not be accurate (e. and some may be differ in valance depending on the person or the situation (e. and some beliefs may.. that pork contains little fat). Since a consumer holds many beliefs. coffee is hot and stimulates--good on a cold morning. coffee is easily spilled and stains papers). In addition. but not well on a hot summer evening when one wants to sleep).g.. coffee tastes good) as well as negative beliefs (e..g. it may often be difficult to get down to a ―bottom line‖ overall belief about whether an object such as McDonald‘s is overall good or bad. or a 6 on a scale from 1 to 7. a consumer believes that the taste of a beverage is moderately important. we take the weight or importance (Wi) of that belief and multiply it with its evaluation (Xib).Beliefs. some beliefs may be neutral (coffee is black). The first component is beliefs. the product here is 4(6) =24. The Multiattribute (also sometimes known as the Fishbein) Model attempts to summarize overall attitudes into one score using the equation: That is.g. or a 4 on a scale from 1 to 7. He or she believes that coffee tastes very good.g. Thus. A consumer may hold both positive beliefs toward an object (e. For example. be contradictory (e.g.

but may have positive affect toward Christmas trees because he or she unconsciously associates these trees with the experience that he or she had at Christmas as a child. consumers tend to have many more beliefs that must each be added to obtain an accurate measurement. and has money for only one of the two. buy or not buy the brand). she may lack a driver‘s license. Thus. this is sometimes a logical consequence of beliefs (or affect).  Social influence. of course.  Measurement problems. Measuring attitudes is difficult.. we now have 7(-4) =-28. although a consumer does not really like a restaurant. Although junior high school student likes pick-up trucks and would like to buy one. He or she may be unable to do so. Consumers also hold certain feelings toward brands or other objects. For example. but may sometimes reflect other circumstances-e.g. she would rather have a computer. and coffee fares moderately badly. attitude would have been 24+ (-28) =-4. on this attribute (since this is a negative belief.g. he or she will go there because it is a hangout for his or her friends. an extreme environmentalist may believe that cutting down trees is morally wrong. consumers do not consciously set out to enumerate how positively or negatively they .. As with affect. we now take negative numbers from -1 to -7. at a score -4. with -7 being worst). Behavioral Intention: The behavioral intention is what the consumer plans to do with respect to the object (e.g.  Competing demands for resources. his or her total. Sometimes these feelings are based on the beliefs (e.hand. but there may also be feelings which are relatively independent of beliefs. Attitude-Behavior Consistency: Consumers often do not behave consistently with their attitudes for several reasons:  Ability. Although the above student would like to buy a pickup truck on her sixteenth birthday. or aggregated. he does not smoke. a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains). In many situations. but since his friends think it‘s disgusting. In practice. A student thinks that smoking is really cool. he or she believes that the potential of a drink to stain is extremely important (7).. Affect. Had these two beliefs been the only beliefs the consumer held.

that this represents a case of shaping). by the way. For example. the more a product is advertised and seen in stores.g. fuzzy image.. One strategy uses the approach of classical conditioning try to ―pair‖ the product with a liked stimulus. we can try to get people to like the advertisement and hope that this liking will ―spill over‖ into the purchase of a product. particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e. the low price) and may then switch to other brands on deal later. which may or may not involve getting consumers to change their beliefs. Thus. Finally.feel about mopeds. thus. the Pillsbury Doughboy does not really emphasize the conveyance of much information to the consumer. instead. Changing affect. how important these beliefs are. tend to be better liked--that is. and when a market researcher asks them about their beliefs about mopeds. and their evaluation of the performance of mopeds with respect to these beliefs.. Changing behavior: People like to believe that their behavior is rational. even if consumers to do not develop any specific beliefs about the product. Attitude Change Strategies: Changing attitudes is generally very difficult. through the mere exposure effect. we ―pair‖ a car with a beautiful woman. however. products which are better known. consumers often do not give very reliable answers. One approach is to try to change affect. the consumers may act consistently with their true attitudes.e. they may justify the purchase based on that deal (i. Alternatively. One way to get people to switch to our brand is to use temporary price discounts and coupons. which were never uncovered because an erroneous measurement was made. Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. it attempts to create a warm. once they use our products. chances are that they will continue unless someone is able to get them to switch. to get the consumer to buy more or to switch brands). For example. . the main emphasis is on the likeable bunny. A better way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. when consumers buy a product on deal. Although Energizer Bunny ads try to get people to believe that their batteries last longer. (Notice. the more it will generally be liked.

which sounds quite plausible to most people. 2. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion.g. Thus. but the belief can be made stronger. particularly those that are strongly held.. to attempt to change ideals. 4. would you bother bringing them up in the first place? However. the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. then. even if they are inaccurate. Change the importance of beliefs. the petroleum industry advertised for a long time that its profits were lower than were commonly believed. Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression. Change currently held beliefs. Change ideal. Several approaches to belief change exist: 1.Changing beliefs although attempting to change beliefs is the obvious way to attempt attitude change. One-sided vs. why. this is often difficult to achieve because consumers tend to resist. it is usually not feasible to make beliefs less important--consumers are likely to reason. the Volvo is a clumsy car. and very risky. Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth. 3. and provided extensive factual evidence in its advertising to support this reality. For example. two-sided appeals. a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. and only few firms succeed. Add beliefs. particularly when consumers hold unfavorable or inaccurate ones. it may be possible to strengthen beliefs that favor us--e. It is generally very difficult to attempt to change beliefs that people hold. Most consumers already agree with this.g. It usually difficult. Consumers were suspicious and rejected this information. however.. Attitude research has shown that consumers often tend to react more favorably to advertisements which either (1) admit something negative about the sponsoring brand (e. Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. but very safe) or (2) admits something . For example.

‖ or compatible. a basket ball player is likely to be effective in endorsing athletic shoes. a nationally .. and thus Bill Cosby is able to endorse Coke and Jell-O without having any special credentials to do so. However. elaboration will be low. For example. the ―but‖ part must be emphasized. and the endorser is expected to be ―congruent. compliance increased to 80%. but not in endorsing automobiles. ―elaboration‖ was low. in the above examples.g. The ELM suggests that consumers will scrutinize claims more in important situations than in unimportant ones. a pain reliever given to a child that could be harmed by using dangerous substances). Two-sided appeals must. However. with the product. On the other hand. elaboration is likely to be more extensive. The Elaboration Likelihood Model (ELM) and Celebrity Endorsements. when the justification ―because I have to make copies‖ was added. contain overriding arguments why the sponsoring brand is ultimately superior--that is. we found that in the study of people trying to get ahead of others in a line to use photo copiers.g. for products which are either expensive or important for some other reason (e. we conclude that it was not extensively analyzed--in the jargon of the theory. The ELM suggests that for ―unimportant‖ products. the compliance rate was about fifty percent when people just asked to get ahead. For example. a competing supermarket has slightly lower prices..positive about a competing brand (e. Since the reason offered really did not add substantive information. but offers less service and selection).

Comparative advertising. . but may backfire in certain cultures. but enough to scare people into action and (2) a way to avoid the feared stimulus is explicitly indicated--e. a more favorable attitude toward the advertisement may be created by humorous advertising. however. Several approaches to appeal may be used. often increases sales for the sponsoring brand. In addition. but not athletic shoes. but may backfire if consumers believe that people‘s feelings are being exploited. could endorse fast food restaurants effectively. gingivitis and tooth loss can be avoided by using this mouth wash. which may in turn result in increased sales. but does not appear to increase persuasion in practice. All of them. The use of affect to induce empathy with advertising characters may increase attraction to a product. Humor appears to be effective in gaining attention.g..syndicated auto columnist would be successful in endorsing cars. Fear appeals appear to work only if (1) an optimal level of fear is evoked--not so much that people tune it out. Appeal Approaches. which is illegal in many countries.

CHAPTER 4 ANALYSIS & INTERPRETATION .

1 HOW YOU GOT TO KNOW ABOUT NILGIRIS SOURCES Newspaper Word Of Mouth Pamphlet Others Total RESPONDENT 43 56 34 24 157 PERCENTAGE 27 36 22 15 100 Graph.1 Percentage 15 22 36 27 Newspaper Word Of Mouth Pamphlet Others Analysis and Interpretation: Nilgiris have good brand name in market which is helping the company to reach to the consumer by Word of mouth.TABLE. Accordingly it can be observed that most of the respondents (36%) came to know about Nilgiris by Word of mouth followed by 25% of the respondents who go to know by newspaper. The above table analyses the company preferred by the respondents. .

TABLE. 17% of them visit only on special occasions. In simple words what is to be purchased has a great impact on when it is to be purchased. The above table analyses the frequency of visiting Nilgiris. 13% were either first time visitors or fortnightly visitors. Accordingly majority of them regularly visit weekly once (34%). .2 HOW OFTEN DO YOU VISIT NILGIRIS? FREQUENCY OF VISIT Weekly Once Fortnightly Once Monthly Once Quarterly Once On Special Events First Time Total RESPONDENT 53 33 22 13 16 20 157 PERCENTAGE 34 21 14 8 10 13 100 Graph.2 Weekly Once 34% Fortnightly Once Monthly Once 14% 21% Quarterly Once On Special Events First Time 13% 10% 8% Analysis and Interpretation: Frequency of shopping also depends upon aspects like age and gender.

.3 Percentage 50 40 30 20 10 0 Morning Afternoon Evening 47 36 Percentage 17.3 PREFERABLE TIME TO VISIT NILGIRIS TIME Morning Afternoon Evening Total RESPONDENT 57 27 73 157 PERCENTAGE 36 17 47 100 Graph.TABLE. The above table analyzes the preference of shopping time of the respondents. followed by 17% who prefer to shop in the morning and 36% in the afternoon. Analysis and Interpretation: Different people have different shopping time preference. It is inferred that most of the respondents prefer to shop in the evening. Accordingly it can be seen that most of the respondent prefer to shop in the evening (46%).

TABLE.4 DO YOU KNOW ABOUT NILGIRIS EXHIBITION? Alternatives Yes No Total Respondent 61 96 157 Percentage 39 61 100 Graph. .4 70 60 50 40 30 20 10 0 61 39 Percentage Yes No Analysis and Interpretation: There are many exhibitions held in and around Bangalore. Only 61 respondents of the whole sample size of 157 know about the exhibition. which includes Nilgiris Exhibition and it has been held from many years and respondents do not have much clear knowledge about the exhibition held.

A good ambiance should be provided to attract more number of customers. . especially of this generation. Thus Nilgiris is lacking in infrastructure and presentation of its product whereas in Services and Product range the Nilgiris is in a good position.TABLE.5 Percentage 35 30 25 20 15 10 5 0 32 28 24 16 Percentage Analysis and Interpretation: Nilgiris definitely need to work on the infrastructure and presentation which is the most important aspect which lures the customers.5 WHAT ATTRACTS YOU MOST IN NILGIRIS? OPTION Service Product Range Infrastructure Presentation Total RESPONDENT PERCENTAGE 51 44 37 25 157 32 28 24 16 100 Graph.

. mainly bread and cake.6 FOR WHICH PARTICULAR PRODUCT YOU VISIT NILGIRIS? PRODUCT Butter Milk Bread Cake Total RESPONDENT 23 34 61 39 157 PERCENTAGE 14 22 39 25 100 Graph.TABLE.6 Response 39 23 Butter 34 61 Milk Bread Cake Analysis and Interpretation: Most of the customers visit Nilgiris for milk based products. butter and other milk based products. Since there is a lot of scope of Nilgiris bread and cake. Company also has good demand for other milk products such as Milk.

7 Percentage 71 80 60 40 20 0 Yes No 29 Percentage Analyze and Inference: It‘s clear that Nilgiris maintain different variety of products which ranges from Milk products. dal. .7 DO YOU FEEL THAT YOU FIND DIFFERENT VARIETY OF PRODUCT IN NILGIRIS? ALTERNATIVES Yes No Total RESPONDENT 112 45 157 PERCENTAGE 71 29 100 Graph. rice. by this we get to know almost all the household products which has acquired the mind-space of the consumers are available.TABLE.

.TABLE. It‘s clear that 54 percent of the consumer do not find preferred product in Nilgiris.8 Percentage 54 46 Percentage Percentage Yes No 55 50 45 40 Analysis and Interpretation: Nilgiris is not catering the product according to the specific need of the consumer in and around each location.8 DO YOU FIND THE SPECIFIC BRAND THAT YOU LOOK IN THE NILGIRIS? Alternatives Yes No Total Respondent 73 84 157 Percentage 46 54 100 Graph.

9 CUSTOMER PERCEPTION TOWARDS NILGIRIS REASONS Big Store Quality Value for Money Variety Promotional Offers Good Provisions Long Queues Other No Comments Total RESPONDENT 16 33 27 23 11 19 8 7 6 7 157 PERCENTAGE 10 21 17 15 7 12 5 4 4 5 100 .TABLE.

. Promotional offers. Long queues are not emphasized by Nilgiris.Graph. We can observe that 21% of the responses reinforces on quality. Provisions. followed by 17 for ―value for money‖ and 14% for Variety. Other factors such as Big store.9 Percentage 25 20 15 10 5 0 10 7 21 17 15 12 5 4 4 5 Percentage Analysis and Interpretation: Nilgiris have made their trade-mark in quality and thus they are most reputed.

Thus Nilgiris has a competitive advantage in terms of Location and wide range of products that it offers. REASON FOR SHOPPING Location & Conveyance Wide Range of Merchandises Low Price Ambience Discount Total RESPONDENT 65 41 16 35 0 157 PERCENTAGE 42 26 10 22 0 100 Graph.TABLE.40% when compared to its Merchandises. ambiance. .10 CUSTOMERS RESPONSE OVER REASONS FOR SHOPPING IN THE STORE. low price and discount offered by Nilgiris.10 45 40 35 30 25 20 15 10 5 0 42 26 10 0 Percentage 22 Analysis and Interpretation: Nilgiris has its stores at convenient places so that its consumers have access to the stores which is evident here. Consumers have rated Nilgiris at its best with 41.

RATING Excellent Good Fair Poor Total RESPONDENT 58 63 32 4 157 PERCENTAGE 37 40 20 3 100 Graph. .11 Percentage 50 40 30 20 10 0 Excellent Good Fair Poor 3 37 40 20 Percentage Analysis and Interpretation: Nilgiris is known for its Quality and it‘s clear from the above chart. Most of the consumers have rated Nilgiris as Excellent and good for providing good quality of products and many of the consumers are happy with the services offered by Nilgiris.11 RATING GIVEN BY THE RESPONDENT FOR DIFFERENT COMPONENTS OF QUALITY & MERCHANDISE.TABLE.

with 22% not being satisfied. .12 OVERALL OPINION OF RESPONDENTS ON SUPERMARKET RANKING Extremely Satisfied Satisfied Not Satisfied Total RESPONDENT 45 76 36 157 PERCENTAGE 29 48 23 100 Graph.TABLE.12 Response 23% 29% Extremely Satisfied Satisfied 48% Not Satisfied Analysis and Interpretation: Consumer prefer to buy different kind of product under one roof due to time constrains. 29% of the consumers are very happy and are extremely satisfied with the supermarket whereas 48% of the consumers are just satisfied.

So housewives are the major customers of nilgiris compare to other type of professionals. WHO VISITS THE STORE.13 RESPONDENT'S OCCUPATION.TABLE.13 Percentage 35 35 30 25 20 15 10 5 0 27 23 15 Percentage Employees Business men Housewife’s Student Analysis and Interpretation: Women‘s would be well aware of the products required for the household consumption like what and when to purchase. 35% of the housewives visit Nilgiris. followed by Business men (27%) and Employees (22%) and hence Nilgiris gives more importance household products which are mostly purchased by housewives. . OCCUPATION Employees Business men Housewife‘s Student Total RESPONDENT 36 43 55 23 157 PERCENTAGE 23 27 35 15 100 Garph.

Only 7% of the respondents disagree that the representatives are courteous. In the retailing industry customers are the back bone for its success and the customers are the king. ALTERNATIVES Strongly Agree Agree Neutral Disagree Total RESPONDENT 69 52 25 11 157 PERCENTAGE 44 33 16 7 100 Graph. . whereas 33% merely agreed and 15% of the respondents neutral.14 Percentage 50 40 30 20 10 0 Strongly Agree Agree Neutral Disagree 16 7 Percentage 44 33 Analysis and Interpretation: For any business to retain in the market for long period.TABLE.14 REPRESENTATIVES ARE COURTEOUS. 43% of respondents have strongly agreed that the representatives are Courteous. The main assets would be to maintain a good relationship with its customers.

16% opting ―Reliance fresh‖ and 14% preferring ―Smart‖ . It can be observed that ―Nilgiris‖ stand second. Almost 33% of the respondents prefer ―Big Bazaar‖ and 15% preferring ―More‖. Value for money is based not only on the minimum purchase price but also on the Maximum efficiency and effectiveness of the purchase.15 WHICH IS YOUR FIRST PREFERENCE TO BY HOUSE HOLD PRODUCT? SUPERMARKET Nilgiris Big Bazaar More Reliance Fresh Smart Total RESPONDENT 32 53 24 26 22 157 PERCENTAGE 20 34 15 17 14 100 Graph.TABLE. with 20% of respondents giving first preference to it for house-hold products.15 Response 14% 17% 15% 34% 20% Nilgiris Big Bazaar More Reliance Fresh Smart Analysis and Interpretation: A utility derived from every purchase or every sum of money spent.

TABLE. Close to 78% of the respondents are well aware of Nilgiris supermarket and the products offered by them whereas 22% of the general public is not aware of Nilgiris supermarket. . Consumers cannot purchase products and services if they do not know they exist. consumer awareness programs create more informed buying decisions.16 Percentage 78 80 60 40 20 0 Yes No 22 Percentage Analysis and Interpretation: Making existing and potential customers knowledgeable about products/services.16 ARE YOU AWARE OF THE NILGIRIS FOOD PRODUCTS? ALTERNATIVES Yes No Total RESPONDENT 123 34 157 PERCENTAGE 78 22 100 Graph.

. 66% of the consumers are willing to recommend Nilgiris to their friends/family/relatives and to promote the product whereas 21% of the consumers are not satisfied with the Nilgiris and are not willing to recommend others to Nilgiris supermarket for household products.17 percentage 12 yes no 66 cant say 22 Analysis and Interpretation: Personal experience of a consumer with the product/service decides the level of satisfaction. if they are satisfied with the function of the product/service then consumer recommends it to their family. Word of mouth is the Economic and most effective tool for the promotional activity. friends. followed by 12% of the consumers who are neutral.17 WOULD YOU RECOMMEND NILGIRIS SUPERMARKET TO YOUR FRIENDS/RELATIVE FOR HOUSEHOLD SHOPPING RECOMMEND FOR HOUSEHOLD SHOPPING Yes No Can‘t Say Total RESPONDENT 104 34 19 157 PERCENTAGE 66 22 12 100 Graph.TABLE.

is not only related to its product or services.18 Percentage 60 50 40 30 20 10 0 Yes No Can’t Say Percentage Analysis and Interpretation: A company‘s ability to attract and retain new customers. 18% of the consumers are not ready to continue their buying business with Nilgiris followed by 26% who are neutral.TABLE. but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace.18 WOULD YOU COME BACK TO NILGIRIS FOR SHOPPING? COME BACK FOR SHOPPING Yes No Can‘t Say Total RESPONDENT 87 29 41 157 PERCENTAGE 56 18 26 100 Graph. 55% of the consumers are willing to make repeat buying with Nilgiris as they are satisfied with the products/services. .

images. attitudes. feelings. beliefs.19 DO YOU FIND THE SPECIFIC BRAND THAT YOU LOOKING IN NILGIRIS? Alternatives Yes No Total Respondent 55 102 157 Percentage 35 65 100 Graph. .TABLE. perceptions. experiences. and so on that become linked to the brand. Nearly 35 percent of the respondents find their preferred brand of household products in Nilgiris and 65 percent of the respondents do not find the brand that they are looking for in Nilgiris supermarket. brand associations like thoughts. of a brand from the experiential aspect.19 Percentage 35 Yes 65 No Analysis and Interpretation: Consumer distinguish the psychological aspect.

gives you an edge. They say that difference from others makes you stand out.20 Response 20% Familiar 18% 62% Not Familiar Can't Say Analysis and Interpretation: The world seems to be emphasizing the importance of being different from others. 20% of them are not sure and only 18% of them are not aware of Nilgiris product which clearly indicates that Nilgiris has wide reach to public. and brings you more chances. FAMILIARITY Familiar Not Familiar Can't Say Total RESPONDENT 97 28 32 157 PERCENTAGE 62 18 20 100 Graph. .TABLE. About 62% of the general public is familiar with Nilgiris product.20 FAMILIARITY OF THE STORE.

21 WHICH OF THE FOLLOWING FACTORS INFLUENCE YOUR CHOICE OF RETAIL OUTLET? Reason Quality Taste Variety Advertisement Others Total Respondent 37 49 38 25 8 157 Percentage 24 31 24 16 5 100 Graph. . Thus Nilgiris has given its most importance to Taste. 31% followed by quality and variety to which 24% preference is given..21 Percentage 16% 24% 5% 24% 31% Quality Taste Variety Advertisement Others Analysis and Interpretation: Consumers are lured by Taste of the product to which they give highest preference i.TABLE.e. Quality and Variety. Only 16% of the consumers give preference for advertisement and 5% for other factors.

.22 Percentage 30 30 25 20 15 10 5 0 0-2 Years 2-4 Years 4-6 Years Above 6 years 23 25 22 Percentage Analysis and Interpretation: About 30% of the consumers are using Nilgiris product for 4-5 years followed by 25% using it for 2-4 years and 22% for about 6 years and 23% for 0-2 years which shows the customer loyalty that Nilgiris has built. This shows that nilgiris is good in the customer services but we can see the customer does not remain with nilgiris for longer time period.TABLE.22 SINCE HOW LONG ARE YOU USING NILGIRIS PRODUCTS? YEARS 0-2 Years 2-4 Years 4-6 Years Above 6 years Total RESPONDENT 36 39 47 35 157 PERCENTAGE 23 25 30 22 100 Graph.

CHAPTER 5 SUMMARY OF FINDINGS. SUGGESTIONS AND CONCLUSIONS .

FINDINGS  It‘s observed that nilgiris does not often advertised about their stores.  Most of the respondents are of the opinion that very much satisfied with shopping at supermarket and 43% of the respondents rated satisfied at their shopping in supermarket. . the consumer prefers to buy products from nilgiris. Due to brand name of the company customer also expect loyalty from the store and brand product also but not most.  In nilgiris.  Most of the respondents have mentioned that location conveyance.  As the service and quality provided by the company is much satisfied by the consumer.  From the survey it‘s been observed that the store is mainly known to the consumers through word of mouth as now day‘s consumers prefer buying goods from super markets. they mainly concentrate on bakery products and groceries not much on with cosmetics and other daily needs products.  More than 75% of respondents have rated strongly agree and agree for the attributes of sales personnel. Few of the respondents have said disagree for the attribute employees are knowledgeable & friendly. store looks modern & well equipped.  The survey indicates that major of the customers purchase regularly from the same store as store staff identifies their daily customers and has good relationship management by store. wide range of merchandise and low prices are the main reasons for shopping in the store. ambience is appealing and store timings are convenient.  Location and ambience is rated as strongly agree and agree by majority of the respondents in terms of attributes such as store location is convenient.

 From the survey consumer prefer shopping in supermarket because they get variety of quality products at the reasonable price in their convenient place. .  48percent of the consumers are satisfied with the service of supermarket. All the store of nilgiris doesn‘t have the same variety of products. by this we get to know almost 50 percent of the consumer find it convenient and it saves their time for shopping.

 Retailers should maintain consistency in the visual imaginary for all products and the other is color coding of displays to aid easy recognition of sections and departments.  For example: mailing a brad sheet to its customers giving them details of the Available products and price comparisons across brands.  Nilgiris should add-on‘s with more cash counters depending upon the area of the store.  International brands and consumer owned products should be made available in nilgiris supermarket.  Education and training of staff needs to be done to enhance customer service.  It should also understand that the retail experience has become a popular leisure activity and they are vulnerable to any new competition for the customer‘s entertainment.retailing which would benefit to deliver better services. assortments.  nilgiris should use advertisement strategies and promotional activities to drive store traffic. price and so on.SUGGESTIONS AND RECOMMENDATION  Retailers should maintain customer data and communication to build a good relationship among customers. products information. .  In an era of hyper competition retailers (supermarket) should adopt E.  They should build their brands with images that seek to entertain and involve their customers.

 They should work on their availability of their own products in every of their retail outlets.  They should give discounts and credit facilities which helps consumers to shop easily at any time . it should create awareness among the consumers. gaming and other amentias which lures the consumers.  Even though nilgiris is conducting exhibitions on certain occasion. It should come up with on telephone booking and delivery.  Nilgiris should expand their infrastructure by adding food courts.

By exploiting these opportunities Nilgiris can reach its pinnacle in all respect of business activities in company growth and maintaining the No 1 position in market share. . Company must give the detailed information about the product offering by them through various advertisement media‘s. The fact is that the competitors are also coming with same kind of facilities provided by the supermarkets. The company should take necessary steps to win the customer trust.CONCLUSION The changing lifestyle and work culture of the society has made the people very busy in all places. Hence any company with a vision to grow and be more competitive will consider customer satisfaction as the main criteria. They are demanding more value for their money. The study on evaluating the customer satisfaction and perception level has disclosed that there are many factors that are influencing the customer satisfaction level that are quite recognizable. by educating the customer about the product by awareness programs. It can be concluded that Nilgiris is enjoying higher customer satisfaction and has ample opportunities in the market to serve its potential customer. They are having wide range of options and will not hesitate to switch over. Customers are satisfied towards product as well as customer service provided by company to them. The people are having more and more expectations day by day.

com/ http://www. Pearson Education India.iloveindia.html .Roxel A.Applied consumer psychology.nilgiris1905. 2009 Dr.org/wiki/Consumer_behaviour http://www.BIBLIOGRAPHY Books: Philip Kotler. Marketing Management 13th Edition.wikipedia.com/economy-of-india/retail-industry.consumerpsychologist.com/ http://en. Apruebo. Websites: http://www.

ANNEXURE

QUESTIONNAIRE

DEAR RESPONDENT,

Respected sir/madam, I am MEHUL KUMAR doing my 4th semester MBA at CMR CENTER FOR BUSINESS STUDIES, BANGALORE. I am carrying out project according to the syllabus of our course titled “A Study on Consumer Psychology in Nilgiris”. I will be grateful to you if you would kindly be co-operative in filling the Questionnaire, I assure you that the data provided by you will be kept confidential and used for academic purpose only.

Thanking You

MEHUL KUMAR (091PCMA012)

1. How you got to know about Nilgiris?

   

Newspaper Pamphlet Word Of Mouth Others

2. How often do you visit Nilgiris?

     

Weekly Once Fortnightly Once Monthly Once Quarterly Once On Special Events First Time

3. Preferable Time to Visit Nilgiris

  

Morning Afternoon Evening

4. Do you know about Nilgiris Exhibition?

 

Yes No

Do you feel that you find different variety of product in Nilgiris?   Yes No 8. Customer perception towards Nilgiris:   Big store Quality . For which particular product you Visit Nilgiris?     Butter Milk Bread Cake 7.5. Do you find the specific brand that you look in the Nilgiris?   Yes No 9. . What attracts you most in Nilgiris?     Service Product Range Infrastructure Presentation 6.

Rating given by the respondent for different Components of Quality & Merchandise.       Value for money Variety Promotional offers Good Long queues Other No comments 10.      Location and conveyance Wide range of merchandises Low price Ambience Discount 11.     Rating Excellent Good Fair . CUSTOMERS RESPONSE OVER REASONS FOR SHOPPING IN THE STORE.

Respondents occupation. Overall Opinion of Respondents on Supermarket. Which is your first preference to by House hold Product   Nilgiris Big bazaar .     Employees Business men Housewife’s Student 14. who visit the store. Representatives are Courteous     Strongly agree Agree Neutral Disagree 15.    Extremely satisfied Satisfied Not satisfied 13. Poor 12.

   More Reliance fresh Smart 16.    Yes No Can’t say 19. Do you find the specific brand that you looking in Nilgiris?   Yes No 20.    Familiar Not familiar Can’t say .    Yes No Can’t say 18. Familiarity of the store. Are you aware of the Nilgiris Food Products?   Yes No 17. Would you Come Back to Nilgiris for Shopping. Would you Recommend Nilgiris supermarket to your Friends/Relative for Household Shopping.

Which of the following factors influence your choice of retail outlet?      Quality Taste Variety Advertisement Others 22. Since how long are you using Nilgiris Products?     0-2 years 2-4 years 4-6 years Above 6 years .21.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.