CARDIFF METROPOLITAN UNIVERSITY

&
UNIVERSAL BUSINESS SCHOOL

Name: Mohit Singh Rathore

Batch: PGDMBM4CM
Roll No: 2031
Cardiff Student ID: st20191825
Subject: MKT7001 Consumer Behaviour: Knowing your consumer
Module Leader: Prof. Chetan Parikh

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Sr No. Content Page No.
1 Model of the Black Box 3

2 Consumer Characteristics in Black Box 3

3 Decision Making Process 4

4 Consumer Satisfaction on Buying Himalaya 6

Product

5 Recommendation and Suggestions 8

6 Social Conditioning 8

7 Impulse Buying 9

8 Conclusion 11

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Model of the Black Box

The Black Box Model (of Consumer Behaviour) is a model for studying customer buying behavior
that believes that what happens in the consumer's mind's 'black box' can be deduced from a study of
observable stimuli and reactions. The interplay of stimuli, customer attributes, decision process, and
consumer reactions is depicted in the black-box model.
The Buyer Characteristics and Decision Process, which influence the buyer's reaction, are both
contained in the buyer's black box. (Claessens, 2015)

Consumer Characteristics in Black Box

Consumer Buying behavior is affected by these 4 factors.

1. Cultural
A collection of ideas and values shared by a particular community or group of individuals are known
as cultural factors. The way a person acts is determined by his or her culture. To put it another way,
culture is just a person's set of values. Everything a person learns from his parents and relatives as a
child forms his culture. Cultural factors have an impact on individual purchase decisions. Based on his
or her familial status and background, each individual develops their own set of behaviours, beliefs,
and values. What they witness as children shapes their culture.
2. Social
Humans are social creatures. We need individuals to talk to and debate different topics to come up
with better answers and ideas. We all live in a society, and individuals must follow the rules and
regulations set out by that community.

The following are some of the social factors that influence consumer purchasing decisions:

• Groups of Reference
• Relatives and immediate family members
• Society's Function

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 • Society's position

3. Personal
Customer Behaviour assists us in comprehending consumer purchasing habits and spending trends.
Not everyone likes to purchase comparable items. Consumer behavior is the study of why people buy
certain items and services and why they don't.
Personal factors have a significant impact on consumer purchasing decisions.

4. Psychological
Psychological variables are those that pertain to an individual's psychology and influence his
behaviors in search of fulfillment. The following are some of the most important psychological
factors:
• Motivation
• Learning
• Attitude
• Perception
(Bhasin, 2020)

Decision Making Process

Identify the Problem.

Identifying the need is the first stage in the customer decision-making process. The most essential
factor that leads to the purchase of a product or service is a necessity. All purchasing decisions are
triggered by a need.

The first step in assessing the Consumer Decision Making Process is to figure out what the consumer
wants. Many marketing decisions are aided by determining the target market's requirements and
desires.

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Information Search
After determining his wants, the potential customer moves on to the second step, which involves
looking for and obtaining information. Humans are suspicious when it comes to deciding between
options, so they need all the information they can get before investing their money.
The customer considers all of the positive and negative elements of the purchase during this step of
the Consumer Decision Making Process. Consumers are considerably more educated and capable of
making better buying selections as a result of altering trends and online shopping sites.

Evaluation of Alternatives
Once a consumer has identified a need and a supplier to meet that need, he begins looking for the
greatest prices or alternatives available. At this point, the consumer weighs alternative possibilities
based on product pricing, quality, quantity, and value-added features, as well as other key variables.

Customer reviews and pricing comparisons for other items are conducted before selecting the product
that best meets the customer's needs. The third step of the Consumer Decision Making Process is a
thorough examination of all available alternatives/substitute items on the market.

Purchase Decision
After going through all of the previous steps, the client selects what to purchase and where to buy it.
After a thorough examination of all the information, the customer makes a rational decision to
purchase a product that meets his requirements and desires.
Advertising and marketing efforts, as well as suggestions from personal relationships, are frequently
used to elicit needs and desires.

Post – Purchase Evaluation

The customer assesses or analyses the acquired product, its usefulness, the satisfaction given by the
product, and the product's value in relation to the consumer's need fulfillment at the last step of the
consumer decision-making process.

If the consumer believes that the goods they purchased provided value and exceeded their
expectations, they will become loyal consumers.

Making Consumer Decisions For marketers to properly promote their products and product lines, the
process is critical. Understanding the target market in depth improves the effectiveness of a marketing
strategy and leads to better Promotional Plan results.

(clootrack, 2020)

The Indian shampoo market has developed at a breakneck pace. Indians, like consumers in developing
economies, tended to place a high value on physical beauty, possibly as a result of Westernization and
media exposure. Herbs were traditionally used by Indians to nourish and improve their hair.
Consumers now had to pick between the “synthetic” products and the “natural benefits” of the
“herbal” brands, despite the reality that even natural components required some processing.

The Himalaya brand of herbal shampoo had to compete with Unilever India and Procter & Gamble
goods on the one hand, and more popular ethnic brands on the other, as a late entry into the Indian
market. Such a process would need Himalaya to delve further into its brand's principles as well as the
goods of its closest rivals. Given the brand connotations of herbal and non-herbal goods, Himalaya
would also need to develop a positioning strategy to ensure that it could effectively reach out to
consumers who were strongly predisposed to herbal shampoos.

Consumer Satisfaction on Buying Himalaya Product

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Customer happiness is an important component in determining a customer's desire to purchase
something in the future. Although satisfaction is defined as the difference between expectation and
performance, quality and satisfaction are not synonymous.
Ayurveda, or the science of life, was an ancient, holistic method of diagnosis and treatment, possibly
the world's oldest medical system.

They pioneered the application of modern science to find and confirm Ayurveda's secrets at
Himalaya. They develop pharmaceutical-grade Ayurvedic remedies using cutting-edge research.
These products are natural, effective, and safe, and they have helped thousands of people live
healthier, more fulfilling lives. Their focus was on wellness and assisting individuals in becoming and
being healthy.

Study on consumer satisfaction with Himalaya goods with specific reference to Coimbatore city” was
based on a sample size of 150 respondents chosen from Coimbatore city using a questionnaire with 20
questions. The obtained data is categorized and tabulated, and the following statistical measures are
also used to achieve the study's objectives:
• Simple percentage analysis
• Rank correlation analysis using a Likert scale
• Ranking of The Himalaya Product

1. SIMPLE PERCENTAGE ANALYSIS

Interpretation - The Likert scale value is higher than the mid-value (4) so the respondents are highly
satisfied with the quality of the product.

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Natural components are believed to impact the majority of responders (45.3 percent).
1. It was shown that the majority of respondents (53.3%) use Himalaya products at least once a
month.

2.It was shown that the majority of respondents (47.3%) prefer to buy Himalaya goods at general
stores.

3. It has been shown that the majority of respondents (38%) use face wash.

4. It has been shown that the majority of responders (34%) purchase this product for the aim of
moisturizing.

5. It has been shown that the majority of responders (46%) had no problems with any Himalaya
products.

6. It is shown that the majority of responders (86.7%) will suggest this product to others.

Rank Analysis

When it comes to toothpaste, respondents are happier than when it comes to other items.

Recommendation and Suggestions

The Himalaya company should make its products available in as many places as possible.
1. The firm should provide magazines, house journals to the consumers to inform them about new
programs and deals.

2. The Himalaya firm should provide goods that are suitable for all types of skin.

3. The Himalaya firm should concentrate on lowering the product's price. Many customers are
dissatisfied with this product due to its excessive cost.

(kumar, 2019)

Social Conditioning
The process of learning to respond to society in a way that is generally accepted by society is
known as social conditioning. Social conditioning refers to the norms and ideas about education,
job, culture, religion, spirituality, and family life that we acquire from the society around us. We

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require social conditioning primarily because man cannot exist alone. Man is a social animal, and
social conditioning aids in his socialization and gives him a sense of community. Today, our
attitudes about life, our ideas, relationships, and choices are all influenced by societal
conditioning that began in infancy. To a large extent, it leaves us powerless. we cannot put
anybody under blame because we are impulsively ignorant about the consequences of
conditioning.
People are being told, by large corporations, what they need before they even know if they need it
or not. And they’re falling for it. Look at the way shampoos are marketed. Nobody, absolutely
nobody ever told a shampoo maker that they wanted a Himalaya Shampoo that would let them
flaunt their hairs, and do stuff with hairs, and remove old remedies for hair solutions.

Most of the extra stuff on them is driven purely by the greed of the manufacturers for more and
more profit. A high-level executive of a company like Himalaya manufacturer even said so. He
said that if they just sold a basic shampoo, it would retail for about 20 Rs and there wasn’t a big
enough profit in that!
So they introduced shampoo for babies.

There are other approaches to ethics or to judge what is good or bad. There are Consequentialist
approaches such as utilitarianism/humanism, Deontological ethics, and virtue ethics.

Impulse Buying

People who like shopping for pleasure are more likely to make impulse purchases. We are more likely
to acquire such goods to continue to feel pleasure after we begin to feel pleasure as a result of our
sensation of vicarious ownership. Impulsive shopping is the term for making a hasty purchase. It is
built on a foundation of irrational thinking. Marketers try to take advantage of this customer behavior
to boost sales. Customers are more likely to purchase after they reach the hypermarket, even if they
had no intention of doing so before.

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Himalaya Herbal has used various methods to increase impulse buying in their offline Stores.
Increased Visibility of Products - “The first and most essential stage in impulsive buying is getting
buyers to notice your product,” says one expert.
Being in their faces and focusing their attention on what you're offering allows them to make a rapid
decision.
How does Himalaya encourage others to notice their spontaneous buys? The use of signs is one
successful strategy. Use eye-catching signage to draw attention to the product. They kept small pickup
products on the billing counter

Also, they have chosen the color scheme carefully. Colors like red, yellow, green have been shown to
attract attention.

1. Be strategic with positioning

Placing the product where buyers will notice it is one way to increase visibility (and sales) with
impulse purchases. The two most efficient methods to doing this in retail establishments are to place
impulsive items near your bestsellers and to position them near the checkout area. Placing
merchandise near the checkout area is a frequent and effective strategy. Shoppers who are in the
point-of-sale area are more likely to make further purchases since they are already in the mood to buy.
Himalaya Their products were placed among the store's best-selling items. What areas of their store
are consumers most likely to visit? What are the most popular goods among customers? To improve
exposure, strategically put items near certain places or products.

2. Choose impulse products wisely

The best impulsive purchases are those that are both physically and cognitively simple to understand.
Keep things as basic as possible. Impulse purchases should ideally be modest and affordable. These
are products that customers may easily pick up and add to their baskets or pass over to the cashier.
Himalaya Baby Shampoo, Himalaya Baby Powder Face Moisturizer, and Himalaya Baby Day Cream
are among the Himalaya Baby products.

3. Hit the right psychological triggers

By hitting the appropriate consumer buttons, Himalaya made impulsive purchases more conspicuous
and appealing. Here are some of Himalaya's tricks:

• Limited-time - Promotions can help to create a feeling of urgency among individuals. It used
the phrase "Today Only" in its signs to make impulse purchases more appealing.

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 • Value - Make customers feel like they're receiving a good bargain by providing generous
offers. To entice consumers to spend more, the company runs “buy two, get two” promotions
with its impulsive items.

• Excitement or Novelty - You don't have to include an offer with your impulse purchases all
of the time. People will often notice a product if it appears to be new or fresh. If you have
fresh and unique goods in your business that meet the aforementioned requirements (i.e.,
useful and affordable), Himalaya sold them as impulse buys to observe how people react.

4. Leverage social proof

Social proof has long been used by online businesses to entice impulse buyers. On Amazon's product
pages, for example, the popular "People also bought" section highlights items that other customers
have purchased.

A similar strategy may be used in-store. Creating displays of your most popular items — and labeling
them appropriately — may attract impulsive consumers and inspire them to explore purchases they
would not have considered otherwise.

However, there are techniques to increase impulsive purchasing for Online Shopping that Himalaya
Herbals has embraced. There are several methods to organize your offers and websites in such a
manner that clients would be enticed to purchase on impulse. (Ugino, 2020)

• Conditional free shipping - Free delivery is a compelling offer that has been proven
to have greater relative value for online customers than the real shipping cost. When
creating a conditional free shipping offer for your eCommerce business, you may take
advantage of this.

• Sales and promotions - Impulse purchases can also be aided by incentives and
special prices. A well-marketed discount or promotion may be used to entice
customers in the same way that a free shipping threshold does. Low-cost items are
frequently purchased on impulse in eCommerce businesses, just as they are in
traditional retail. To effectively generate impulse sales, you'll need to appropriately
market it across numerous media, just like any other offer.

Conclusion

This day now customers prefer natural products which we have understood from the project.
Customers have a good preference for baby shampoo and face wash. Not only the quality of
the Himalaya product but also the goodwill and good image of the company is one of the
reasons buyers are purchasing their products. This shows their pre Existing attitude towards
this Genuine company. So the consumer is satisfied with the product which we have seen in
Rank Analysis and Simple Percentage Analysis. Himalaya herbal is using impulse buying
techniques on the customer and the customer is also happy with it. But since it has been
noticed that companies need to advertise their product to increase the awareness of the natural

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and ayurvedic product it will give a boom to the whole sector so they will buy the product
more in future. As we've seen, a variety of things impact the buyer's black box. These
variables cause a stimulus to be transformed into a certain reaction. The interaction of
cultural, societal, personal, and psychological elements is simply too complicated to
comprehend. As a result, marketers should attempt to keep these qualities in mind while
developing goods and marketing programs that are tailored to the customer's black box
criteria.

Bibliography
Bhasin, H. (2020). consumer buying behavior. Retrieved from www.marketing91.com:
https://www.marketing91.com/personal-factors-affecting-consumer-buying-behavior/
Claessens, M. (2015). THE BUYER BLACK BOX – BUYER’S CHARACTERISTICS –
FACTORS INFLUENCING THE CONSUMER BUYING BEHAVIOUR. Retrieved
from https://marketing-insider.eu/: https://marketing-insider.eu/buyer-black-box/
clootrack. (2020). 5 Stages of Consumer Buying Behavior. Retrieved from
https://clootrack.com/: https://clootrack.com/knowledge_base/stages-of-consumer-
buying-behavior/
How can ecommerce stores drive impulse buying? (n.d.). Retrieved from
https://www.bigcommerce.com/: https://www.bigcommerce.com/ecommerce-
answers/how-can-ecommerce-store-owners-drive-impulse-buying/
kumar, M. a. (2019). A STUDY ON CUSTOMERS SATISFACTION TOWARDS.
COIMBATORE: EPRA International Journal of Research and Development (IJRD).
Ugino, M. (2020). 6 Ways to Increase Impulse Buying Online. Retrieved from
www.sellbrite.com: https://www.sellbrite.com/blog/impulse-buying-online/

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