Understanding Consumer Behavior Insights
Understanding Consumer Behavior Insights
BEHAVIOUR
CONSUMER BEHAVIOUR
In the same quest the need to know the consumer more is felt as, to do something of
consumer choice, companies had to understand consumer viewpoint, his statements,
his like and dislikes and reasons. Consumer remained the focused point for all the
studies, keeping his various aspects like demand want need, desire, and behaviour,
satisfaction every aspect of marketing is formed and implemented. In a quest to keep
the consumer inclined and associated towards the product and company, many
marketing ways are being explored and experimented. This concept of knowing
consumers viewpoint on any product and services to make consumer more satisfied is
associated with consumer behaviour studies. This is stated way back in decade of 90’s
with total quality management but the concept become so successful that has grown to
a well developed concept, various theories are given on the same, and this became a
big area of study, become a subject and currently, is one of the major part in
marketing.
As the current study is majorly based on knowing the consumer behaviour on two
wheelers, the concept is understood from the very famous marketing consultant Philip
Kotler point of view. Kotler has defined the consumer behaviour as “person’s feeling
of pleasure, excitement or disappointment resulted from comparing product’s perceived
performance or outcome against his/ her expectations from the product” (Kotler and
Keller, 3006, p.144). “Perception is defined as consumer’s belief, about the service
received or experienced” (Rai, 3008).
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studies and implementation leads to resolution of all the consumer queries and
concern he has about the product, this strengthen the consumer trust on the product
and in buying process he does not consider alternative of the product for evaluation.
Consumer behaviour studies reduce the marketing cost for the company and reduce
the chances of product failure and helps Company to make corrective changes in time
to come. This increases the revenue for company along with increase in profitability,
stock price and brand image as a whole.
The concept of consumer behaviour started from a long time and many scientist and
philosophers has given many theories on explaining consumer behaviour. The subject
is so dynamic in nature that a single concern may not work and a flexible eye
marketer need to understand this thing. Keeping the basic human nature in mind, there
are many theories which explain and predict the behaviour of the consumer to a good
extent. Consumer in all the theories and concept remain the centre point of subject
and very important for all marketers.
All theories and hypothesis are formed on some very strong grounds of observation
and analysis. When one tries to get a solution to research problem, after
comprehensively understanding the literature, concept and previous models,
researcher form a hypothesis which is basically a point of view, researcher wanted to
prove. When a hypothesis is proved so many times, it becomes a theory and concept.
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There are assumptions which are associated with the theory, in situation where this
can go wrong. A theory is very helpful in understanding and analyzing a phenomena,
behaviour and outcomes in various situations. They are used to predict the future or
prove the past as well.
As our subject for the study is consumer, the most important and most accepted
theories of consumer behavior always remain backbone and background on which
study can be done.
To understand the human behaviour and psychology, various approaches have been
explained. The approach forms the ground, on the basis of which the consumer takes
the decision of buying a product or not. In a list to explain the consumer behaviour,
the approaches are included in the research study.
The consumer behaviour theories and approaches are majorly derived and advanced
from approaches of psychology, a branch dedicated to understand the human
behaviour. The process of consumer decision making is explained and understood
with the help of various approaches related to human psychology.
The concept of economic man explains the situations that the consumer will always
try to maximize the utility of the product. He always wants to get maximum output
from a product and money which he spends. To behave in a rational way, the forces
applied and required is knowledge. The level of knowledge of the consumer varies
differently. There are times, when consumer does not have proper knowledge of the
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total option available and he can take decision on the basis of the limited knowledge
he has about the subject. Likewise there is much other assumption, which needs to
hold true to consider the consumer as an economic man.
Other important assumption of the economic man theory is, the consumer is aware
about all the advantages and disadvantages of the product and knowing them, he made a
purchase decision. This also seems very less likely to happen in today’s world,
wherein the product are changing and developing in the market. The consumer
behaviour is also influenced by marketing strategies, which is bombarded at every
place in today’s scenario and a highly influenced consumer is very unlikely to behave
in a rational manner, as he is already impressed by the product and have shown
interest in the product. At this level, instead of finding a reason to buy the product, the
consumer find the reason for not to buy.
There are many scientists who work on the behaviourist approaches, Sigmund Freud,
Ivan Pavlov and John B. Watson are leaders in the field. The approach also tries to
cover that the human behaviour is learned and hence this can be re-learned and re
learned as well. This work is about the things which we can see the object which
comes to our day to day life and there are things which we cannot see, like mind,
thinking, sub consciousness, how one feels and experience. Taking an inference from
all these, a behaviourist believe that with a chemistry of the entire variable above, the
human learned to behave in a particular manner.
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The cognitive learning drive thought external environment whereas the behavioural
drive through internal environment.
Humanistic approach places oneself on the uppermost side and he become the center
point of attraction. The humanistic approach is different from behaviourist, cognitive
and psychodynamic approach. The humanistic approach believes that any one
assumption cannot be implied to diverse and dynamic concept like human behaviour.
There are many numbers of permutations and combination of situation which drive
the behaviour of individual. Even the same individual may react differently in two
similar situations.
The decision can be drive by emotions attached with some product and situation
wherein the economic factor does not matter much. The behaviour of human is not
completely drive by external environmental factor, by economical factor and by
internal psychological factors.
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As per this model, stimuli in the form of external environment and the elements of the
marketing mix enter the purchaser's ‘black box’ and connects with the purchaser
qualities and choice procedures to deliver a series of outputs in form of buy choices.
The task faced by the marketing planner includes seeing how the black box works, for
which two main segments of the box must be considered; firstly the factors that the
individual brings to the purchasing circumstance and secondly the choice procedures
that are used.
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Product Political
Price Economical
Place Social
Promotion Technological
Buyers Decision
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Culture is the most fundamental reason for a man's needs and behavior. Human
behavior to a great extent learned. As a child grows up he learns the basic values,
perceptions, wants, and behaviors of the family and other important characteristics
that represent his behaviour. A person normally learns or is exposed to the following
values: achievement and success, activity and involvement,, action and contribution,
effectiveness and common sense, advance, material solace, independence, opportunity,
compassion, energy, wellness and wellbeing.
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Every group or society has a culture, and social effects on purchasing behavior may
fluctuate extraordinarily from country to country. Inability to adjust to these distinctions
can result in ineffective marketing.
[Link] Culture
The culture is a sum total of value and beliefs the tradition and way of living in a
society or nation as a whole. Culture plays a very important role in influencing
consumer behaviour. The culture is invariable different across the countries, states
and place to place. Indian being a nation known for its cultural heritage the marketers
has a strong opportunity to target them accordingly. The two wheeler companies are
adopting the same in their marketing strategies. The advertisement shows the value of
care for family, being on time at home, culture of helping people in need and gifting
comfort to parents. All these habits are imbibed in the culture of India and the
marketers strongly position the same subconsciously.
Each culture contains small groups or subculture of people with shared value systems
dependent on basic life experiences and circumstances. Subcultures incorporate
nationalities, religions, racial gatherings, geographic locales. Numerous subcultures
make up imperative market segments, and marketers often structure products and
marketing programs custom fitted to their requirements.
Each culture may have people who are different on some other terms like religions
Hindu, Muslim Sikh, Christians, Parsi. Geographical locations like urban metro, semi
urban, rural.
The marketer, when required, position the product accordingly. Many advertisements
shows people from various states and locations like North East, urban Delhi, Kerala,
Punjab, all the states are different and to cover all, companies shows leaders from
various part in one advertisement.
There are various classes on which the whole society is divided. The base of the
vision is living standards. The classes are upper class, upper middle class, lowed
middle class and lower class. All have different level of income and different
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aspiration to live. Their motive of purchasing the two wheeler is different. They
depict a strong impact of consumer purchasing behaviour.
Social class isn't determined by a particular factor, for example income, but is
determined by as a combination of factors like occupation, income, education, wealth,
and other variables related to it. In some social frameworks, members of different
classes are raised for specific roles and can't change their social positions. Marketers
are interested in social class since individuals inside a given social class tend to
display similar purchasing behavior.
Social classes demonstrate distinct product and brand inclinations in areas, for
example, clothing, home decorations, recreation activity and automobiles.
PERSONALITY
AGE
LIFESTYLE
INCOME
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Age is a very influencing factor in deciding the type of two wheeler a consumer wants
to buy. The age of buyers as well as age of driver both influences the consumer
behaviour equally. Generally parents buy the two wheeler for their children and hence
the age of parents as well children become an influencing factor. There are various
age group of consumer that are considered as sample in the study and the behaviour is
analyzed in different age group. The young age groups are more inclined towards
design and looks. Simultaneously the people of relatively higher age group are more
inclined towards seeing economy, mileage and cost side of the buying.
There is economic men concept, which applies to few consumers in each category.
These people seek the value of the money and are rational buyers. The companies
target the consumer according to age category and customize the marketing
communication as per the target group in different market.
Individuals change the goods and services they purchase over their lifetimes. Tastes in
food, garments, furniture, and recreation are frequently age related. Purchasing is
likewise formed by the phase of the family life cycle-the phases through which
families might pass as they develop over time. Marketers often define their target
markets in terms of stage of life-cycle and create appropriate products and showcasing
plans for each stage. Customary family life-cycle stages incorporate young singles
and wedded couples with kids.
Two wheeler consumers are varied from a vast category. Once the person is 18, he can
drive a two wheeler and become a probable consumer. Consumer may have a income
level of zero to any level. The income of student and housewife may not be significant,
but they also share a big pie in market. Even a superrich purchase two wheeler for
different motives in life. The ranges of two wheelers also varied invariably.
The cost of the vehicle is positively correlated with the income level. Higher the
income level, higher the model and price of bike of consumer which they generally
prefers. The income level support affordability of the consumer and they can buy the
two wheeler of their choice.
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Occupation is a very important personal factor, which influence the consumer buying
decision. The population is divided in various type of profession. They are salaried
personnel, who are working in any organization and gets monthly fix salary. The study
includes government employee and private salaried personnel. The second class is self
employed, who own their own business, from a small coffee shop to big organization.
A housewife takes care of family and plays a very important role in well being of
other members of family. Student from school, college, perusing various professional
and other courses like doctors, lawyers, chartered accountant etc.
The occupation classes may also influence the buying behaviour. A salaried person of
various income group can also shows different behaviour. This kind of behaviour is
very personal in nature and can be different at an individual level. A self employed
may take the two wheeler for carrying business activities and may need more space;
on the contrary side a student may prefer a stylish two wheeler.
People also purchase the two wheeler on the basis of environment lifestyle. In hilly
area people may prefer to have small tyres, power bikes, and the strength of the two
wheels matter more in villages as the roads may not be well, in urban people may
seek style and comfort.
Individuals from the similar subculture, social class, and occupation may have very
unprecedented ways of life. Life style is related to a person's pattern of living as expressed
in his or her psychographics. It incorporates estimating buyers' major AIO dimensions--
activities (work, leisure activities, shopping, sports, get-togethers), interests (food,
fashion, family, amusement), and opinions (about themselves, social issues, business,
products). Lifestyle catches something more than the individual's social class or identity.
It profiles a person's entire pattern of acting and imparting in the world.
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A few research firms have made lifestyle classifications. It separates purchasers into
eight gatherings dependent on two noteworthy measurements: self-orientation and
resources. Self-orientation group incorporate principle-oriented consumers who purchase
items dependent on their perspectives and experiences from the world; status-oriented
purchasers who rely their purchases on the activities and sentiments of others; and
action-oriented purchasers who are driven by their craving for action, assortment, and
risk taking. Consumers inside every orientation are further divided into those with
huge resources and those with few or negligible resources, contingent upon whether
they have a higher or lower dimensions of income, education, prosperity, fearlessness,
vitality and other factors. Consumers with either high or low dimensions of resources
are classified irrespective to their self-orientations (actualizes, stragglers). Actualizes
are individuals with such a large number of resources that they can enjoy any or every
single self-orientations. Conversely, stragglers are individuals with couple of resources
to be incorporated in any consumer orientation.
For Example CCD (café coffee day) says that “a lot can happen over coffee”.
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Consumer lives in the society and the kind of people he lives have a significant impact
on the behaviour he shows in purchasing products. The important social factors which
have a significant impact on the consumer behaviour are the reference groups, family
members and the role of person’s family, society and the status of the consumer.
The reference groups are the people one surrounds with. They are someone from
whom the consumer is inspired or influenced. Consumer takes reference from known
persons. They influenced the consumer to buy or not to buy the product. The reference
group makes the decision making easy. This establishes a connection and feeling in
mind of consumer that if someone is already using this, he might have evaluated the
product on various grounds.
There are primary reference groups, who may be friends and family, relative of the
consumer, someone who is a colleague at job work. The performance and features of
the product can be easily known by the reference group. The reference groups are so
strong that they develop the trust of consumer in buying product almost immediately.
Consumer does not hesitate and easily believe the suggestion from the reference
groups as they are the people whom he can trust.
The second reference groups are one with whom the consumer do not share a direct
relation but have an impact and association. They may be religious groups, association
he is connected with, someone whom he lookup to.
Numerous small groups impact a person's behavior. Groups that have an immediate
impact and to which a person belongs are called membership groups. Conversely,
reference groups serve as immediate (eye to eye) or backhanded points of comparison
or reference in molding a man's states of mind or conduct.
Reference groups to which they do not belong frequently impact individuals. Marketers
attempt to distinguish the reference groups from their target markets. Reference
groups opens a person to new practices and ways of life, impact the individual's
attitudes and self-concept, and make pressures to affirm that may influence the
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person's product and brand choices. The significance of group impact differs across
products and brands. It tends to be stronger when the product is visible to others
whom the purchaser respects. Makers of items and brands exposed to the strong group
impact must make sense on how to reach opinion leaders within a reference group who,
because of special skills, knowledge, personality, or different qualities, exert impacts
on others. Numerous marketers endeavor to distinguish opinion leaders for their items
and direct marketing endeavors toward them. In different cases, advertisements can
reenact opinion leadership, accordingly diminishing the requirement for consumers to
look for guidance from others. The significance of group impact changes across
products and brands. It tends to be stronger when the item is visible to others whom
the purchaser regards. Buying of products that are bought and used privately are very
little affected by the group influences because neither the item, nor the brand will be
seen by others.
Role in the society is another social factor which influences consumer buying decision.
When your role is as a husband and a father, consumer may purchase the product as
per convenience of the family. When one is a teacher, who is considered to be an ideal
for other people, the role is decency and simplicity.
A housewife may prefer something in which she is convenient to carry her children
from school or may have driving pleasure.
Social status is a combination of income and class in society, as these both factor create
the social status of consumer. One may be upper middle class, lower middle class,
upper class and lower class.
The status of consumer is different and so as the choice for purchasing two wheelers.
[Link]. Family
Family members can unequivocally impact purchaser behavior. The family is the
most imperative Consumer buying organization in society and it has been investigated
widely. Marketers are keen in the roles and impact of the husband, wife, and youngsters
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with the buy of various products and services. Husband wife inclusion varies widely
by product category and by stage in the purchasing procedure. Purchasing roles
change with changing purchaser lifestyles. Such changes propose that marketers
who've normally sold their products to just women or just men are presently pursuing
the contrary sex.
[Link] Motivation
[Link] Perception
Consumer has explicit beliefs and attitudes towards various products. Since such
beliefs and attitudes shape the brand image and influence purchaser buying behavior
so manufacturers are interested in them. Marketers can change beliefs and attitudes of
consumers with extraordinary campaigns in this regard.
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Personal
Commuting
Tour & Taxi
Social Status
Fashion &
Style Emergency
There are several internal and external factors, which influences consumer behaviour
and decide what product consumer and buy and what he will left. Along with the
external and internal factor, above both, the buying behaviour is greatly influenced by
features, technology, product line, technology, innovation, need satisfying ability of
the product.
These features are product specific rather than environment or consumer specific.
They are the features, on ground of which product is conceptualized, manufactured,
developed and innovated continuously. Starting from a simple two wheeler cycle, two
wheeler as a product has evolved them to a significant extent from a simple 65cc
engine to 350cc engine along with better style, looks, and comfort.
The engine strokes in various forms like moped, scooters, sports bikes, racing bikes,
bike as per business need and many more. Two wheeler as a product has evolved
them self to a great extent and thus the portion of study, covers about the factors and
features of the product, which influenced consumer to buy two wheels and make them
establish them self and transform themselves in bug industry worldwide.
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Two wheeler are basically invented for commuting and transportation, which was
faster than the prevailing medium that are either manual or by animals. People
commonly used animals for personal commuting and then bicycles. With evolution in
technologies, these bicycles are powered by mechanical engines, which can decrease
the manual effort of rising the bike and move fast with speed, on wheels. Gradually
they have taken a shape of full flashed moped, bike and two wheeler. The need of
simple commuting has gradually evolved as a friend in emergency, vehicle for
loading and carry material, a symbol of social status, a mark of style and fashion.
Above all, two wheeler remain the friendliest and economic ways of personal
commuting but gradually they have evolved themselves to serve the humanity for
various kind of need, want demand and desire of human being, starting from a
personal computing system.
The two wheels is invented to satisfy the need of a personal commuting system in
society. They played the role so well that they provide wheels for social and economic
development in the country. The transportation which was very slow and time
consuming become fast. The two wheelers have emerged as a personal commuting
system as well. Starting from one man in family, they transformed themselves as per
need and want to different members in family. Marketers first manufactured bikes,
which are meant for travelling, which gave rise to many other forms and types of two
wheelers. Scooters are manufactured as per need of Indian family. The transformation
is done keeping in mind the married personal want his wife to sit on back seat. A
space in front part to carry the daily household items like fruits, vegetable, milk which
he buy while returning home. The space is extensively used to make children stand in
front and enjoy the ride.
Mopeds are being manufactured that are relatively less in price and inclined towards
conducting business activities as they are more sleek and light weighted two wheeler.
The moped is extremely successful among business segments. Grocery venders, small
resellers of house items, fruits and vegetable sellers, who use to buy these items in
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bulk from wholesale market. They started using mopeds. Mopeds also become very
popular in mountains and other areas wherein the roads not wide. Mopeds could very
easily pass through all those places and positioned like same from marketers.
Lets go behind and revive your memories, it can be your first two-wheeler
The two wheelers apart from satisfying the need for personal commuting, they have
emerged greatly as a sign of sale and fashion. Starting from bullets bikes, which are
still known for rough, bold and strong persona, many models have a special style
statements. Suzuki samurai, which is liked greatly for its engine sound, Yamaha RX
100 for its quick pickup and looks, Honda CD 100 for economic and comfort to baggy
Pulsar, which was strongly positioned as a definitely make bike with masculine body.
The engine capacity gradually increased to position two wheeler as power. From an
80 cc engine, 100 cc, 135 cc, 150 cc, 300 cc and 330, 350, 350 cc engines are being
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manufactured and still prevailing. Yamaha FZ started the concept of naked bike in
India and rule the segment become very popular and remains top selling in its
segment for few years.
KTM along with Bajaj Launched racing bikes in India. Considering the emergence of
working women and college going students, bikes which have now taken a different
shape in terms type, become very popular among female as well as male buyers.
Currently as per market statistics, every third two wheeler sold is a motorcycle. On
the other side TVS SCOOTY is having a good market share in budget scooter market,
where it captures the college going girls who cannot afford the activa and other
leading brands whereas Hero CD deluxe is targeting the rural and low capacity market
who wants an average bike but below the price of 40 K.
The two wheeler along with the personal commuting also positioned as a symbol to
social status. The families, who owned them, are positioned as doing well in life. The
number of two wheeler per family gradually increased also. In recent time, wherein
the increase in income make people shot to four wheeler, still majority of the family,
who own a four wheeler, also have a two wheeler for day to day local commuting.
The village still uses two wheeler as a social symbol and correlated with wealth and
respect. There are many bike and scooter, which are available at a premium price in
comparison to another.
There is a segment of consumer, who owns the two wheeler for racing and other
adventure in life. There are people who are professional bikers, explorer, and traveler,
racers, who participate in various racing events conducted by corporate or other
organizations. Two wheeler has immersed them to be used for the purpose of racing
and adventure.
The two wheeler are fast and economic are also proved need satisfying for Indian
small trader and seller. Almost everyone needs to carry some material and product
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from one place to another at a shorter distance; the same can be transported from two
wheeler. Understanding the same, evolving from a personal two wheeler, marketers
laughed variants of two wheelers, which are more business friendly and could be used
for carrying more material. Moped tough small in size, used extensively for business
operation of small shopkeepers and sellers in Indian market.
Indian users are economical and they use the vehicle with choices as there is a cost
involved in running the vehicles, many consumers uses them wisely. Few of the
consumers purchase two wheeler so that they can use it in emergency or when they
want to move fast and in situation where-in they are the best options.
As still the majority of the Indian population lives in villages were not connected by
road. In emergency situation, two wheeler are the fastest way to reach and make a
connect to public transportation. Today the income level is raised to a significant level
and so as the perforce of the vehicle. This may not be relevant for majority of the
users, but still there are buyers who purchase the two wheels for emergency purpose.
G. Used as Taxi
With launch of application based taxi services, recently Uber and OLA has launched
two wheeler taxi, which are more economic and a sure shot way to beat traffic in
various cities. With the name of Uber Moto and OLA Bikes, they are extremely
famous and used by majority of the consumer, when they need to travel at a shorter
distance economically. This became possible because of the fuel economy of the two
wheeler and this is a win win model for the stakeholders, Which can be a bike owner,
rider, the application based company and user.
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