Analyzing Consumer Markets
Consumer Behavior is the
study how individuals, groups and organizations select, buy, use and dispose
off goods, services, ideas or experiences to satisfy their needs and wants.
Factors affecting
consumer behavior are :
Cultural factors :
5 star available in various
quantities and is easily affordable irrespective of the social status. since
Indians love to eat sweet after their meals , they generally prefer chocolates
. Thus, 5 Star is consumed in various parts of India in the form of an after
food dessert.
Social factors :
The behavior of people can be affected by
family, friends, co-workers, religious groups, professional groups,
inspirational groups etc. another direct influence is the family of procreation
i.e. the person’s spouse and children.
Reference groups such as family and
friends consume 5 star and hence other people looking at them also feel like
trying it. Hence in this way socially the use of a product is effected.
Personal factors :
A person’s age,
occupation, personality and perception of oneself, lifestyle, values etc also
affects the choices we make.
5 Star is consumed by
any one and every one in the society. No special status or personality or
lifestyle is required to do the same.
Theories which govern
the consumer behavior are :
Freud'sTheory
It is a sales theory
which supposes that consumers choose whether or not to purchase a product due
to unconscious desires and motivators, and that the qualities of the product,
such as touch, taste or smell, remind them of past events. Recognizing how the elements
of a product trigger an emotional response from the consumer can help a
marketer or salesperson understand how to lead a consumer toward making a
purchase.
When we link this theory
to 5 star we find that most of the time it is consumed without
any actual stated reason. It is consumed just for a mood change, or when
there is a craving to eat something sweet.
Maslow's Hierarchy of Needs
Maslow's Hierarchy of
Needs is a "content theory" of motivation"
The classes of needs
were summarized by Maslow as follows:
5 Star is consumed in India as a dessert either after meal or anytime anywhere. Hence, according to this theory, 5 Star falls under the basic need i.e. the psychological needs.
Herzberg's Two Factor
Theory
Herzberg's theory is
related to certain characteristics of job related to job satisfaction,
while certain other factors are related with job dissatisfaction. These factors
are:
Here 5 star's seller has
a role to play. He need to identify the motivators or the person who is
satisfied by its characteristics and taste.
Analyzing Business Markets
A business market consists of all
organizations that acquire goods and services used in the production of other
products and services that are sold, rented or supplied to others.
Characteristics of
business markets
- Fewer, larger buyers
- Close supplier-customer
relationship
- Geographically concentrated
buyers
- Derived demand
- Inelastic demand
- Fluctuating demand
- Professional purchasing
- Many buying influences
- Multiple sales calls
- Direct purchasing
- Reciprocity
- Leasing
In a business scenario there are
three types of buying situations
- Straight rebuy
- Modified rebuy
- New task
Factors Influencing Business Buying Behaviour
are depicted in figure below
For any confectionery to be manufactured ,
the supply chain include raw material suppliers to the manufacturer. Extensive
search is done about the supplier. Quotations etc are called and one with the
best price and service is fixed. Cadbury does regular checks to maintain the
quality of 5 star. It also make sure that time to time new variants are
launched.