Analyzing Consumer Market

Presented By: Group 10

Rajan Mishra-10020541118
Aditya Dubey-10020541119
Ishita Giri-10020541120
Ravinder Singh-10020541121
Yugank Arora-10020541122
Vivek Gujar-10020541123
Agenda
1. Understanding consumer behavior
2. Key Psychological Processes
3. The Buying Process: The Five stage model
4. Other theories of Consumer Decision Making
5. Examples on Consumer Market
6. Understanding Industrial Market
7. Differences between Consumer and Industrial Market
8. Summary
Understanding Consumer Behavior
Cultural Factors
Social Factors
Personal Factors
Cultural Factors
Culture is the fundamental determinant of a person’s
wants and behaviors acquired through socialization
processes with family and other key institutions.
Subcultures
Nationalities
Religions
Racial groups
Geographic regions
Classes
Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers
Characteristics of Social Classes
Within a class, people tend to behave alike
Social class conveys perceptions of inferior or superior
position
Class may be indicated by a cluster of variables
(occupation, income, wealth)
Class designation is mobile over time
Social Factors
Reference groups
Family
Social roles
Status
Reference groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
Family Distinctions
Affecting Buying Decisions
Family of Orientation
Family of Procreation
Personal Factors
Age
Stage of life cycle
Occupation
Wealth
Personality
Values
Lifestyle
Self-concept
Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
Lifestyle influences
Multi-tasking
Time-starved
Money-constrained
Key Psychological Processes
Motivation
Perception
Learning
Memory
Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory

Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious lowest, motivating
motivations unmet need and hygiene
factors
Learning
Key terms involved-
1. Drive
2. Cues
3. Discrimination
4. Hedonic Bias
Memory
Key terms involved-
1. Associative network memory model
2. Memory Processes
3. Memory Retrieval
Maslow’s Hierarchy of Needs
Physiological needs
Safety needs
Social needs
Esteem needs
Self-actualization needs
Perception
Selective attention
Selective retention
Selective distortion
Subliminal perception
The buying decision model
Problem
recognition

Information
search

Evaluation of
alternatives

Purchase
decision

Post purchase
behavior
Sources of Information
Personal
Commercial
Public
Experiential
Other theories of consumer decision
making
Level of Consumer Involvement
Decision Heuristics and biases
Mental Accounting
Profiling the Customer Buying-Decision Process
Cultural and Personal Factors
As of now, VAS contributes 9 to 11% of operator revenues.
Out of which Music/ringback tones contribute 40% to the
operator's total revenue.
The revenue from this growth potential is expected to reach
above ` 250 billion by end of year 2010 and more than 30% of
the revenue of the telecom access service providers in the next
5-7 years.

www.trai.gov.in,
http://www.yourstory.in/resources/1035-experttalk/4456-harish-gandhi-demystifies-vas-
in-india,
http://www.slideshare.net/paritoshsharma/telecom-industry-consultants-at-the-mobile-
vas-summit-2009-by-virtue-insight
Cultural and Personal Factors
Cultural Factors
 Religion
Keeping pace with the market trends, Airtel introduced
various interesting plans and value added services like 'Live
Aarti‘
Personal Factors
 Lifestyle
The new service 'Airtel Talkies' would offer a pre-edited
fifteen minute capsule of a film to the listeners.
Cultural Factors
 Geographic factors
Telecom Industry has been contributing quite
phenomenally towards various social responsibility
initiatives.
Aircel has added one more campaign towards a social
cause. “Save Tiger” is the latest campaign from Aircel.
Mahendra Singh Dhoni, footballer Baichung Bhutia and
actor Surya are part of this campaign
Personal Factors
As in July 2010, India already has 149 million mobile data
users, approximately 60 million 3G handsets and a
broadband penetration of only one percent. According to
Informate Mobile Intelligence, three out of four current
GPRS  users in the country would like to use 3G services in
the future and close to 63 percent of mobile users in the 25-
30 age group are “very likely” to use it in near future.
Airtel has 3G licenses in 5 countries in Africa.

http://voicendata.ciol.com/content/ContributoryArticles/110072603.asp,
http://convergence.in/blog/2010/08/11/airtel-pan-india-3g-services-by-end-of-
2010-no-problem-in-sourcing-telecom-gear/
Personal Factors
Personal Factors
 Lifestyle
World’s first commercial 3G smartphone based on
Qualcomm’s Brew® Mobile Platform (Brew MP™) launched
by Airtel.
Personal Factors
Personal Factors
• Lifestyle Factors
 Time Starved
Personal Factors
Brand Personality
Social factors
The WiMax Forum and industry body, Assocham, are
optimistic and expect the Indian market to support about
19 mn WiMax connections by 2012, representing about 20%
of the global WiMax user base in 2.5/2.3 GHz bands
Reference groups
 Aspirational Group
 Operators like Bharti Airtel has already started to offer
their WiMax services on 3.3 GHz.

 http://voicendata.ciol.com/content/NetworkingPlus/109080302.asp,
 http://voicendata.ciol.com/content/NetworkingPlus/109080302.asp
Social factors
India's mobile penetration is huge with about 127 mn users who
carry Internet-ready devices. However, only about 12 mn users
have used Internet on their mobile phones at least once in the
last one year and about 2 mn users are accessing the Internet
through their mobile phones on an active basis
Currently, data services constitute 7% of Aircel's revenue and the
company is targeting to take that to 11% by 2012.

 http://voicendata.ciol.com/content/enterprise_zone/110040208.asp 
 http://voicendata.ciol.com/content/vnd100_2010vol-II/110070533.asp
Social factors
 Status
Aircel launched unlimited Internet plans
Aircel INQ Mini 3G-has features such as Facebook, Twitter,
Skype and Windows Live Widgets and easy Internet access-
was one of the operator's moves to strengthen its data
services
The operator pulled the youth's attention with its
unlimited Internet data plans, something that a new user
would prefer
Industrial Market
The industrial market consists of all the organisations that
acquire goods and services used in production of other
products and services that are sold , rented or supplied to
others .
Major industries making up the business markets are
agriculture , forestry, mining , manufacturing ,
communication , banking , finance and service industries.
Industrial market customers
Commercial enterprises - profit making organisations that
produce and/or resell goods and services for a profit. Can
be subdivided into users, original equipment
manufacturers (OEMs), resellers.
Government bodies.
Institutions - largely non-profit making organisations, e.g.
universities, churches, etc.
Characteristics of industrial market
Nature of demand - derived, joint, inelastic.
Structure of demand - industrial and geographic
concentration.
Buying process complexity.
Buyer-seller relationships
Buying Situations
Straight Re-buy
Modified Re-buy
New Task
Systems Buying and Selling
The Buying Centre
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
Buying process
Problem Recognition

Need Description

Product Specification

Supplier search

Proposal Solicitation

Supplier selection

Order routine specification

Performance review
Institutional Market
Consists of schools, college and university hostels, hospital
and nursing homes, etc.
Provide goods and services to people in their care.
Characterized by low budget and captive clienteles.
Not for profit, cost minimization not the sole objective.
Government Organizations
Major buyer of goods and services in most countries.
Spending decisions subject to public review.
Requirement of paperwork from vendors and favor open
biding.
Well-laid out procedure for buying followed by
government.
How is Industrial Market different from
Consumer Market?
Fewer, larger buyers
Close supplier-customer relationship
Professional purchasing
Multiple buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated buyers
Direct purchasing
Thank you