CONSUMER BEHAVIOUR and BUYING DECISION

The Buying Decision Process

Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants.

The factors which influence a consumer's decision are :

 Consumer Buying Decision Process:

There is a 5 stage model which a consumer should follow before buying any product. Here in case of 5 star some points may work some might not.

1. PROBLEM RECOGNITION :The process of buying a product gets triggered due to a reason. this can be triggered due to an external or internal stimuli. In India people generally prefer to eat sweet after every meal. So, a chocolate is the best option due to its long life and taste and since the cost of 5 star is very low even people with considerably low income can afford it in contrast to expensive sweets available in market.
2. INFORMATION SEARCH : Before buying chocolate of a particular type one must gather all the information about it. If one prefer chocolate,caramel and nougat so, other than 5 star available brands are Nestle Barone and Mars bar.
   
3. EVALUATION OF ALTERNATIVES : A consumer looks at 3 basic concept: a) Satisfy a need  b) looking for benefit and c) look for set of attributes. If we consider 5 star a consumer evaluates it in terms of taste,availability, value for money etc.
4. PURCHASE DECISION : In evaluation stage a consumer forms a preference to buy the most preferred brand. In case of 5 star it is a leading brand having better value of money and availability. But sometimes due to unavailability of the preferred brand consumer tend to buy other brand.
5. POST PURCHASE BEHAVIOR : After intensive research and purchasing the preferred brand consumer can either be satisfied or dissatisfied. If he satisfied it is likely that he will buy more of 5 Star and will recommend it to others but if dissatisfied he may discontinue to use the product and will move to alternatives available.
   

INTRODUCTION and CUSTOMER VALUE

MARKETING DIARY

Product - 5 star

Cadbury India Ltd. is a part of the Mondelez International. Cadbury India operates in five categories - chocolate confectionery, beverages, biscuits, gum and candy. In the chocolate confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Halls, Choclairs, Tang and Oreo.

For over 25 years, chocoholics have loved the Cadbury 5 star. It is a flagship product of Cadbury. It is the second most sold chocolate in the country after Cadbury dairy milk. Cadbury 5 star was launched in 1969, which is hard from the outside and has a soft caramel core or nougat on the inside. Over the years, 5 star has undergone several refinements to be able to satisfy the consumers taste.

CUSTOMER VALUE

 In today's competitive world there exists similar products under different brands and due to availability of social media and internet anyone can gather information about the particular product , what is important for a brand is to live up to the customer expectations and deliver the best in order to retain the customer.
Customer Perceived Value is the difference between the prospective customer's evaluation of all benefits and all costs of the offerings and the perceived alternatives.

The two most important parts under Customer perceived value are :

1. TOTAL CUSTOMER BENEFIT : This can be further classified into 4 sub-parts, analyzing it with respect to my product.

• Product Benefit :  5 Star is easily available almost everywhere ranging from local kirana shops to mall. What makes 5 Star so irresistible is the unique combination of chocolate, caramel, and nougat.
• Service Benefit : The cost of 5 Star is as low as Rs5/- which makes it affordable for everyone.
• Personnel Benefits : Consumers are loyal to the brand as it provides value for money.
•  Image Benefit : Cadbury in itself is huge brand since the beginning and hence has huge image benefit.Also 5star had a strong market share in this particular chocolate segment as it has limited competitors.

   2.   TOTAL CUSTOMER COST ; The 4 sub-parts are :

• Monetary Cost : The price of 5 star ranges from Rs5 to Rs 30/-.
• Time Cost : Available at all the stores ranging from small local stores to malls.
• Energy Cost : it refers to the amount of energy required to reach a particular store to buy 5 Star. Since it is easily available the energy cost associated with is low,
• Psychological cost : it is how a particular customer look at the price of the product. In case of 5 Star since the price is bare minimum every customer will look positively towards it.

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