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GLOBAL brand building drastically reduces MARKETING investments. A strong brand NEEDS lower and lower levels of incremental investment to sustain itself over time. A new and unknown player will have to spend two to four times more than the market leader to achieve the same share of MIND. Given the huge difference in business volumes, the pressure of the bottom-line is much higher for an unestablished player.

Global brand building drastically reduces marketing investments. A strong brand needs lower and lower levels of incremental investment to sustain itself over time. A new and unknown player will have to spend two to four times more than the market leader to achieve the same share of mind. Given the huge difference in business volumes, the pressure of the bottom-line is much higher for an unestablished player.

Some of us may argue as markets are becoming more and more similar, standardized marketing STRATEGIES are becoming more and more FEASIBLE. But, some more would argue back that differences between consumers of various nations are far too great to permit a standardized marketing strategy. Whether to use shared needs and VALUES as a segmentation strategy or to use NATIONAL borders as a segmentation strategy? Shared needs and values would mean to appeal to consumers in DIFFERENT countries in terms of their common needs, values, and goals. Using national borders as a segmentation strategy would mean to use relatively different local or specific marketing strategies for members of distinctive cultures or countries.

Some of us may argue as markets are becoming more and more similar, standardized marketing strategies are becoming more and more feasible. But, some more would argue back that differences between consumers of various nations are far too great to permit a standardized marketing strategy. Whether to use shared needs and values as a segmentation strategy or to use national borders as a segmentation strategy? Shared needs and values would mean to appeal to consumers in different countries in terms of their common needs, values, and goals. Using national borders as a segmentation strategy would mean to use relatively different local or specific marketing strategies for members of distinctive cultures or countries.

To determine whether and how to enter a foreign market, we NEED to conduct some form of cross-CULTURAL consumer analysis. Cross-cultural consumer analysis can be defined as the effort to determine to what extent the consumers of two or more nations are similar or different. Such analysis can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to TARGET, so that they can design effective marketing strategies for the specific NATIONAL MARKETS involved.

To determine whether and how to enter a foreign market, we need to conduct some form of cross-cultural consumer analysis. Cross-cultural consumer analysis can be defined as the effort to determine to what extent the consumers of two or more nations are similar or different. Such analysis can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to target, so that they can design effective marketing strategies for the specific national markets involved.

1. Problems related to product selection: The MARKETER GOING for cross cultural marketing has to select the customers/ MARKET not on the basis of the superficial similarities of age or income, but by using the real motivating factors that prompt them to accept or reject products.
2. Problems related to promotion/marketing communication: e.g. Ariel in the middle east and also Pepsi
3. Problems related to pricing: the marketer has to adjust his pricing policies according to the local economic conditions and customs.
4. Problems related to selection of DISTRIBUTION channels: in Japan, P & G used this to sell SOAP

1. High market share in the domestic market
2. ADVANTAGEOUS economies of scale
3. ACCESS to marketing/manufacturing BASES across global borders
4. AVAILABILITY of resources and capability to ABSORB huge losses
5. Product/technology clout
6. Cost and differentiation advantages

Cross-cultural marketing is defined as “the effort to DETERMINE to what EXTENT the consumers of two or more nations are SIMILAR or different. This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they WISH to target, so as to DESIGN effective marketing strategies for each of the specific national markets involved.”

Cross-cultural marketing is defined as “the effort to determine to what extent the consumers of two or more nations are similar or different. This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they wish to target, so as to design effective marketing strategies for each of the specific national markets involved.”

Values are enduring BELIEFS about things that are important. They are learned through the processes of socialization and acculturation. Our values exist in an ORGANIZED value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a GIVEN sphere of ACTIVITY. Western cultures tend to place a relatively high value on material goods, youth, the home, family and children, work and play, health, hedonism, and TECHNOLOGY. Marketers use tools like value segmentation to identify consumer groups with common values.

Values are enduring beliefs about things that are important. They are learned through the processes of socialization and acculturation. Our values exist in an organized value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a given sphere of activity. Western cultures tend to place a relatively high value on material goods, youth, the home, family and children, work and play, health, hedonism, and technology. Marketers use tools like value segmentation to identify consumer groups with common values.

Among the four major AGE groups, Teens, who need to establish an identity, are the CONSUMERS of tomorrow and have an INCREASING influence on family decisions. The somewhat disillusioned Generation X consists of smart and cynical consumers who can easily see through obvious marketing attempts. Baby boomers grew up in a very dynamic and fast-changing world, and this has affected their values for individualism and freedom. The 50 and OLDER segment can be divided into TWO groups-the young again and the gray market. Neither group likes to be thought of as old. The affect of gender differences on consumer behavior is examined next. Sex roles are changing. Women are becoming more professional and independent, and men are becoming more sensitive and caring. Also, men and women can differ in terms of traits, information processing, decision styles, and consumption patterns.

Among the four major age groups, Teens, who need to establish an identity, are the consumers of tomorrow and have an increasing influence on family decisions. The somewhat disillusioned Generation X consists of smart and cynical consumers who can easily see through obvious marketing attempts. Baby boomers grew up in a very dynamic and fast-changing world, and this has affected their values for individualism and freedom. The 50 and older segment can be divided into two groups-the young again and the gray market. Neither group likes to be thought of as old. The affect of gender differences on consumer behavior is examined next. Sex roles are changing. Women are becoming more professional and independent, and men are becoming more sensitive and caring. Also, men and women can differ in terms of traits, information processing, decision styles, and consumption patterns.

The three major aspects of culture that have important effects on consumer behavior are regional, ethnic, and religious DIFFERENCES. Firstly, consumption patterns may differ in various regions of India and the world, and marketing strategy can sometimes be tailored specifically to these regions.

Secondly, our country has a number of DIFFERENT ethnic groups, and population trends will dramatically alter the demographic profile of the country in the next 50 years. The very diverse Asian American subculture is DESCRIBED as YOUNG and having higher socioeconomic status, placing strong value on the family and the group, and being strongly brand LOYAL. In spite of its diversity, marketing strategies can be developed for this group.

Finally, religious beliefs and values can influence consumer. Many marketers are now becoming multicultural in their marketing activities by trying to appeal to a variety of cultures at the same time. Although the diversity of the Indian melting pot may be unique, there are many important ethnic groups in other areas of the world.

The three major aspects of culture that have important effects on consumer behavior are regional, ethnic, and religious differences. Firstly, consumption patterns may differ in various regions of India and the world, and marketing strategy can sometimes be tailored specifically to these regions.

Secondly, our country has a number of different ethnic groups, and population trends will dramatically alter the demographic profile of the country in the next 50 years. The very diverse Asian American subculture is described as young and having higher socioeconomic status, placing strong value on the family and the group, and being strongly brand loyal. In spite of its diversity, marketing strategies can be developed for this group.

Finally, religious beliefs and values can influence consumer. Many marketers are now becoming multicultural in their marketing activities by trying to appeal to a variety of cultures at the same time. Although the diversity of the Indian melting pot may be unique, there are many important ethnic groups in other areas of the world.

some Environment ORIENTED CULTURE VALUES are:

• Cleanliness
• Performance/ status 
• TRADITION/ change
• Risk taking/ security
• Problem solving/fatalist
• Nature

some Environment Oriented culture Values are:

CREATION of VALUE in products based on cause/effect logic or association among EVENTS WITHOUT a logical link

Creation of value in products based on cause/effect logic or association among events without a logical link

This factor determines the extent to which SOCIETIES HOLD VALUES traditionally regarded as predominantly masculine or feminine. For instance, assertiveness, respect for achievement, and the acquisition of money and material possessions are identified with masculinity; and NURTURING, concern for the environment and championing the underdog are associated with a culture’s femininity

This factor determines the extent to which societies hold values traditionally regarded as predominantly masculine or feminine. For instance, assertiveness, respect for achievement, and the acquisition of money and material possessions are identified with masculinity; and nurturing, concern for the environment and championing the underdog are associated with a culture’s femininity

Uncertainty avoidance concerns the different WAYS in which SOCIETIES react to the UNCERTAINTIES and AMBIGUITIES inherent in life. Some societies need WELL defined rules or rituals to guide behaviour, whereas others are tolerant of deviant ideas and behaviour.

Uncertainty avoidance concerns the different ways in which societies react to the uncertainties and ambiguities inherent in life. Some societies need well defined rules or rituals to guide behaviour, whereas others are tolerant of deviant ideas and behaviour.

POWER distance REFLECTS the degree to which a society accepts INEQUALITY in power at DIFFERENT levels in organisations and institutions. It can affect preferences for centralization of authority, acceptance of DIFFERENTIAL rewards, and the ways people of unequal status work together.

Power distance reflects the degree to which a society accepts inequality in power at different levels in organisations and institutions. It can affect preferences for centralization of authority, acceptance of differential rewards, and the ways people of unequal status work together.

Individualism DESCRIBES the relationship between an individual and fellow INDIVIDUALS, or the collectivity that prevails in society. Table 1.1 below depicts the ATTITUDINAL and BEHAVIOURAL differences associated with individualism and collectivism.

Individualism describes the relationship between an individual and fellow individuals, or the collectivity that prevails in society. Table 1.1 below depicts the attitudinal and behavioural differences associated with individualism and collectivism.

1. Convenience: as more and more women are joining the work force there is an increasing demand for products that help lighten and relieve the daily household chores, and make life more CONVENIENT. This is reflected in the soaring sale of Washing machines, microwaves, Pressure cookers, Mixergrinders, food processors, frozen food etc.
2. Education: People in our society today wish to acquire relevant education and skills that would help improve their career prospects. This is evident from the fact that so many professional, career oriented educational centers are coming up, and still they cannot seem to meet the demand. As a specific instance count the number of INSTITUTIONS offering courses and training in COMPUTERS that has opened in your city.
3. Physical appearance: Today, physical fitness, good health and smart appearance are on premium today. Slimming centers and beauty parlours are mushrooming in all major cities of the country. Cosmetics for both women and men are being sold in increasing numbers. Even exclusive SHOPS are retailing DESIGNER clothes.
4. Materialism: There is a very definite shift in the people’s cultural value from spiritualism towards materialism. We are spending more money than ever before on acquiring products such as air-conditioners, cars CD players etc, which adds to our physical comfort as well as status.

• National culture
  • The culture prevalent in a nation, common to everyone
• Popular culture o The culture of the masses with norms of MASS appeal
• SUBCULTURE
  • The culture of a group within the larger society
  • Group identification based on nationality of origin, RACE, region, age, religion, gender, etc.
• Corporate culture
  • The company’s values, rituals, customs, MYTHS and HEROES

• Culture is LEARNED.
• Culture regulates society –Norms, STANDARDS of behaviour, rewards and PUNISHMENTS.
• Culture makes life more EFFICIENT
• All MEMBERS follow same norms.
• Culture is adaptive. ·Culture is environmental.
• Multiple cultures are nested hierarchically.

Howard and Sheth have defined culture as “A selective, manmade WAY of responding to experience, a set of behavioral pattern”. Thus, culture consists of traditional ideas and in PARTICULAR the values, which are ATTACHED to these ideas. It includes knowledge, belief, art, morale, law, customs and all other habits acquired by man as a member of SOCIETY. An ACCEPTED concept about culture is that includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.

Howard and Sheth have defined culture as “A selective, manmade way of responding to experience, a set of behavioral pattern”. Thus, culture consists of traditional ideas and in particular the values, which are attached to these ideas. It includes knowledge, belief, art, morale, law, customs and all other habits acquired by man as a member of society. An accepted concept about culture is that includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.

The study of culture encompasses all aspects of a SOCIETY such as its religion, knowledge, language, laws, CUSTOMS, TRADITIONS, music, art, technology, work patterns, products, etc. Culture is an extremely critical and all PERVASIVE influence in our life.

The study of culture encompasses all aspects of a society such as its religion, knowledge, language, laws, customs, traditions, music, art, technology, work patterns, products, etc. Culture is an extremely critical and all pervasive influence in our life.

The Howard - Sheth model shows the processes and variables influencing the BUYER behaviour before and during the purchase. It emphasizes three key variables- perception, LEARNING and attitude FORMATION. It explains the way consumers compare available products in ORDER to choose the best which fits their needs and desires.

The Howard - Sheth model shows the processes and variables influencing the buyer behaviour before and during the purchase. It emphasizes three key variables- perception, learning and attitude formation. It explains the way consumers compare available products in order to choose the best which fits their needs and desires.

According to this THEORY the individual decision and behaviour are quite often influenced by the family and the society. He gets influenced by it and in turn also influences it in its path of development. He plays many roles as a part of formal and informal associations or organizations i.e., as a family member, employee of a firm, member of professional forum, and as an active member of an informal cultural organization. Hence he is largely influenced by the group in which he is a member. For example, the decision may be made by ONE, actual buying may be done by another, and the product is used by YET another member of the family. Here, a mother takes a decision to buy a tiny cycle for her child, the cycle is PURCHASED by the father and the user is the child.

According to this theory the individual decision and behaviour are quite often influenced by the family and the society. He gets influenced by it and in turn also influences it in its path of development. He plays many roles as a part of formal and informal associations or organizations i.e., as a family member, employee of a firm, member of professional forum, and as an active member of an informal cultural organization. Hence he is largely influenced by the group in which he is a member. For example, the decision may be made by one, actual buying may be done by another, and the product is used by yet another member of the family. Here, a mother takes a decision to buy a tiny cycle for her child, the cycle is purchased by the father and the user is the child.

Sigmund Freud developed this theory.

According to him HUMAN personality has three parts:

1. The Id, is the source of all mental energy that drives us to action
2. the super ego, the INTERNAL representation of what is social is approved conscience
3. The Ego, the CONSCIOUS director of id impulses for finding him satisfaction in socially acceptable manner.

The buyer behaviour depends upon the relative strength of the three elements in the personal ABILITY. MOTIVATIONAL research has been involved in investigating motives of consumer behaviour so as to develop suitable marketing implications accordingly. This approach has been used to generate idea for developingdesign, features, advertising and other promotional techniques.

Sigmund Freud developed this theory.

According to him human personality has three parts:

The buyer behaviour depends upon the relative strength of the three elements in the personal ability. Motivational research has been involved in investigating motives of consumer behaviour so as to develop suitable marketing implications accordingly. This approach has been used to generate idea for developingdesign, features, advertising and other promotional techniques.

Psychology has contributed LOT to the marketers to understand the buyers. It explains how CONSUMERS learn about a PRODUCT and the way they can recall from the MEMORY, and the development of buying habits. All theories of BUYER’s behaviour have been primarily based on a learning, viz., Stimulation-Response or S-R model, this theory of learning is explained as a process of repetition, motivation, conditioning and relationship. Repetition improves learning.

Psychology has contributed lot to the marketers to understand the buyers. It explains how consumers learn about a product and the way they can recall from the memory, and the development of buying habits. All theories of buyer’s behaviour have been primarily based on a learning, viz., Stimulation-Response or S-R model, this theory of learning is explained as a process of repetition, motivation, conditioning and relationship. Repetition improves learning.

This theory was first advanced by the economists. They gave formal explanation of buyer behaviour. According to this theory the consumers are assumed to be RATIONAL and CONSCIOUS about economic calculations. They follow the law of marginal UTILITY. An INDIVIDUAL buyer seeks to spend his money on such goods which GIVE maximum satisfaction (utility) according to his interests and at relative cost.

This theory was first advanced by the economists. They gave formal explanation of buyer behaviour. According to this theory the consumers are assumed to be rational and conscious about economic calculations. They follow the law of marginal utility. An individual buyer seeks to spend his money on such goods which give maximum satisfaction (utility) according to his interests and at relative cost.

CONSUMER BEHAVIOUR MODELS ARE:

1. ECONOMIC OR MARSHALLIAN MODEL
2. LEARNING OR PAVLOVIAN MODEL
3. PSYCHOANALYTICAL MODEL
4. SOCIALOGICAL MODEL
5. HOWARD - SHETH MODEL
6. NICOSIA MODEL

CONSUMER BEHAVIOUR MODELS ARE:

To major areas where consumer BEHAVIOUR study helps government is in policy making on various SERVICES, and in DESIGNING consumer PROTECTION LEGISLATION. The knowledge of people’s attitudes, beliefs, perceptions and habits provides adequate understanding of consumers.

To major areas where consumer behaviour study helps government is in policy making on various services, and in designing consumer protection legislation. The knowledge of people’s attitudes, beliefs, perceptions and habits provides adequate understanding of consumers.

A sound knowledge of consumer BEHAVIOUR can help the organisations that sell IDEAS and concepts of social relevance. Institutions that promote family planning, AIDS FREE society, governmental agencies, religion orders and UNIVERSITIES also appeal to the public for their support in ORDER to satisfy some want or need in society. The knowledge about potential contributors, what motivate their generosity, how these motives can be effectively appealed is useful for the organizations involved in these activities.

A sound knowledge of consumer behaviour can help the organisations that sell ideas and concepts of social relevance. Institutions that promote family planning, AIDS free society, governmental agencies, religion orders and universities also appeal to the public for their support in order to satisfy some want or need in society. The knowledge about potential contributors, what motivate their generosity, how these motives can be effectively appealed is useful for the organizations involved in these activities.

Studying consumer behaviour enables marketing researchers to PREDICT how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making CRITERIA, they can design marketing STRATEGIES and promotional messages that will influence consumers more effectively. The IMPORTANCE of consumer behaviour made marketers to think of a separate branch in marketing research - Consumer research, to deal exclusively for consumer related issues. The current focus of consumer research is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process.

Studying consumer behaviour enables marketing researchers to predict how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making criteria, they can design marketing strategies and promotional messages that will influence consumers more effectively. The importance of consumer behaviour made marketers to think of a separate branch in marketing research - Consumer research, to deal exclusively for consumer related issues. The current focus of consumer research is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process.

Product positioning is placing the product, SERVICE, company, or shop in the mind of consumer or target group. Through positioning marketers seek the right fit between a product and desired customer benefits. The right positioning means understanding the consumer PERCEPTION process in general and perception of company’s product in particular. For example, Samsung brand is perceived as premium brand by few customers and value-driven brand by others in the MARKET, but marketer must FIND out what MAKES their target market to perceive differently and position it accordingly.

Product positioning is placing the product, service, company, or shop in the mind of consumer or target group. Through positioning marketers seek the right fit between a product and desired customer benefits. The right positioning means understanding the consumer perception process in general and perception of company’s product in particular. For example, Samsung brand is perceived as premium brand by few customers and value-driven brand by others in the market, but marketer must find out what makes their target market to perceive differently and position it accordingly.

The most important marketing decision a FIRM makes is the selection of one or more segments to focus their marketing effort. Marketers do not create segments but they find it in the market place. Market segmentation is the STUDY of market place in order to discover viable group of consumers who are homogeneous in their approach in selecting and using goods or SERVICES. Since market segment has unique needs, a firm that develops a product focusing solely on the needs of that segment will be able to meet the target group desire and provides more customer value than competitor. For EXAMPLE, right segment for ‘Femina’ magazine is EDUCATED urban women. The success of this magazine depends on their understanding of the urban woman.

The most important marketing decision a firm makes is the selection of one or more segments to focus their marketing effort. Marketers do not create segments but they find it in the market place. Market segmentation is the study of market place in order to discover viable group of consumers who are homogeneous in their approach in selecting and using goods or services. Since market segment has unique needs, a firm that develops a product focusing solely on the needs of that segment will be able to meet the target group desire and provides more customer value than competitor. For example, right segment for ‘Femina’ magazine is educated urban women. The success of this magazine depends on their understanding of the urban woman.

Understanding the CONSUMER behaviour is the basic for MARKETING strategy formulation. Consumers reaction to this strategy determines the organization SUCCESS or failure. In this competitive environment Organisations can survive only by offering more customer value - difference between all the benefits derived from a total product and all the costs of acquiring those benefits - than competitors. PROVIDING superior customer value requires the organization to do a better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer to the question: How will company provide superior customer value to its target market? The answer to this question requires formulation of marketing - mix – product, price, place and promotion - strategies. The right combination of these ELEMENTS meets customer expectation and provides customer value. For example, marketer of a bike must know the customers performance expectations, desired service, Price willing to pay, information he seeks and after-sales service to provide superior customer value.

Understanding the consumer behaviour is the basic for marketing strategy formulation. Consumers reaction to this strategy determines the organization success or failure. In this competitive environment Organisations can survive only by offering more customer value - difference between all the benefits derived from a total product and all the costs of acquiring those benefits - than competitors. Providing superior customer value requires the organization to do a better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer to the question: How will company provide superior customer value to its target market? The answer to this question requires formulation of marketing - mix – product, price, place and promotion - strategies. The right combination of these elements meets customer expectation and provides customer value. For example, marketer of a bike must know the customers performance expectations, desired service, Price willing to pay, information he seeks and after-sales service to provide superior customer value.

The basic belief of MARKETING-oriented COMPANY is that the customer is the hub around which the business revolves. Therefore, understanding what makes people in general buy and what makes your customer in particular buy is a vital part of business success. Market itself means – customer, around whom all marketing strategies are formulated and implemented. In order to meet competition at the market place, the marketing managers are using various methods to add value to the final product which will reach the hands of the CONSUMERS. It means in ever changing marketing environment, there is a growing CONCERN or awareness among marketers to go for a careful study of the consumer behaviour around which all marketing ACTIVITIES are made. Following are the key marketing implications of consumer behaviour.

The basic belief of marketing-oriented company is that the customer is the hub around which the business revolves. Therefore, understanding what makes people in general buy and what makes your customer in particular buy is a vital part of business success. Market itself means – customer, around whom all marketing strategies are formulated and implemented. In order to meet competition at the market place, the marketing managers are using various methods to add value to the final product which will reach the hands of the consumers. It means in ever changing marketing environment, there is a growing concern or awareness among marketers to go for a careful study of the consumer behaviour around which all marketing activities are made. Following are the key marketing implications of consumer behaviour.

When consumers have already purchased a PRODUCT or BRAND , they REQUIRE little or no information to choose the product. Consumers involved in HABITUAL and AUTOMATIC purchases.

When consumers have already purchased a product or brand , they require little or no information to choose the product. Consumers involved in habitual and automatic purchases.

Sometimes CONSUMERS are familiar with both product category and VARIOUS brands in that category, but they have not FULLY ESTABLISHED brand preferences. They search for additional information helped them to discriminate among various brands.

Sometimes consumers are familiar with both product category and various brands in that category, but they have not fully established brand preferences. They search for additional information helped them to discriminate among various brands.

When consumers buy a new or UNFAMILIAR product it usually involves the need to obtain substantial information and a LONG time to choose. They must FORM the concept of a new product category and determine the CRITERIA to be used in CHOOSING the product or brand.

When consumers buy a new or unfamiliar product it usually involves the need to obtain substantial information and a long time to choose. They must form the concept of a new product category and determine the criteria to be used in choosing the product or brand.

The CONSUMER decision MAKING PROCESS is complex with varying degree. All purchase decisions do not require extensive effort.

On continuum of effort ranging from very high to very LOW, it can be distinguished into three SPECIFIC levels of consumer decision making:

1. Extensive Problem Solving ( EPS )
2. Limited Problem Solving ( LPS )
3. Routine Problem Solving ( RPS )

The consumer decision making process is complex with varying degree. All purchase decisions do not require extensive effort.

On continuum of effort ranging from very high to very low, it can be distinguished into three specific levels of consumer decision making:

In this rule the CONSUMER initially ranks the attributes in terms of perceived RELEVANCE or importance. Later he compares different ALTERNATIVES in terms of the single attribute that is considered most important. On this top ranked alternative, regardless of the score on any other attribute, if one option scores sufficiently high it is selected and the PROCESS ends.

In this rule the consumer initially ranks the attributes in terms of perceived relevance or importance. Later he compares different alternatives in terms of the single attribute that is considered most important. On this top ranked alternative, regardless of the score on any other attribute, if one option scores sufficiently high it is selected and the process ends.

It is the ‘mirror image’ of conjunctive rule. Here the consumer ESTABLISHES a separate minimally ACCEPTABLE cut off level for each ATTRIBUTE. In this case if an option MEETS or exceeds the cut off establishes for any ONE attribute it is accepted.

It is the ‘mirror image’ of conjunctive rule. Here the consumer establishes a separate minimally acceptable cut off level for each attribute. In this case if an option meets or exceeds the cut off establishes for any one attribute it is accepted.

In conjunctive decision rule the consumer establishes a DIFFERENT, MINIMALLY acceptable level as a cut off point for each attribute. In this the OPTION is ELIMINATED for further consideration if a specific brand or MODEL falls below the cut off point on any attribute.

In conjunctive decision rule the consumer establishes a different, minimally acceptable level as a cut off point for each attribute. In this the option is eliminated for further consideration if a specific brand or model falls below the cut off point on any attribute.

There are THREE types of NONCOMPENSATORY rule:

1. CONJUNCTIVE Decision Rule
2. Disjunctive Rule
3. Lexicographic Decision Rule

There are three types of noncompensatory rule:

In contrast to the above RULE NONCOMPENSATORY RULES do not allow consumers to BALANCE positive evaluation of a brand on one attribute against negative evaluation on some other attribute.

In contrast to the above rule noncompensatory rules do not allow consumers to balance positive evaluation of a brand on one attribute against negative evaluation on some other attribute.

Consumers evaluate brand or model in terms of each attribute and COMPUTES a WEIGHTED score for each brand. The computed score reflects the brand’s relative merit as a potential purchase choice. The assumption is that CONSUMER will SELECT the brand that scores highest among alternative brands. The unique feature of this rule is that it balances the positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute. For example, positive attribute like high fuel efficiency is balanced with the negative evaluation of high maintenance COST.

Consumers evaluate brand or model in terms of each attribute and computes a weighted score for each brand. The computed score reflects the brand’s relative merit as a potential purchase choice. The assumption is that consumer will select the brand that scores highest among alternative brands. The unique feature of this rule is that it balances the positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute. For example, positive attribute like high fuel efficiency is balanced with the negative evaluation of high maintenance cost.

These are GENERALLY referred to as information processing STRATEGIES. These are procedures that help consumers to EVALUATE various options and reduce the RISK of making complex decisions by PROVIDING the guidelines.

Decision rules have been broadly classified into two categories :

1. Compensatory Decision Rules
2. Noncompensarory Decision Rules

These are generally referred to as information processing strategies. These are procedures that help consumers to evaluate various options and reduce the risk of making complex decisions by providing the guidelines.

Decision rules have been broadly classified into two categories :

This behaviour of consumer is more important as for as MARKETER is concerned. Consumer gets brand preference only when that brand lives up to his expectation. This brand preference naturally repeats sales of marketer. A satisfied buyer is a silent advertisement. But, if the used brand does not yield desired SATISFACTION, NEGATIVE feeling will occur and that will lead to the formation of negative ATTITUDE towards brand. This phenomenon is called cognitive DISSONANCE. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his customers as well as to attract new customers.

This behaviour of consumer is more important as for as marketer is concerned. Consumer gets brand preference only when that brand lives up to his expectation. This brand preference naturally repeats sales of marketer. A satisfied buyer is a silent advertisement. But, if the used brand does not yield desired satisfaction, negative feeling will occur and that will lead to the formation of negative attitude towards brand. This phenomenon is called cognitive dissonance. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his customers as well as to attract new customers.

Outcome of the evaluation DEVELOPS likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to buy or not to buy. THUS the prospective buyer heads towards final SELECTION. In addition to all the above factors, situational factors LIKE finance options, dealer terms, FALLING prices etc., are also considered.

Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to buy or not to buy. Thus the prospective buyer heads towards final selection. In addition to all the above factors, situational factors like finance options, dealer terms, falling prices etc., are also considered.

This is a critical stage in the process of buying. Following are important elements in the process of ALTERNATIVES evaluation

1. A product is viewed as a bundle of ATTRIBUTES. These attributes or features are used for evaluating products or BRANDS. For example, in washing machine consumer considers price, capacity, technology, quality, model and size.
2. Factors like company, brand IMAGE, country, distribution NETWORK and after-sales service also become critical in evaluation.
3. Marketers should understand the importance of these factors to consumers of these factor to consumers while manufacturing and marketing their products.

This is a critical stage in the process of buying. Following are important elements in the process of alternatives evaluation

Identified needs can be satisfied only when desired product is known and also EASILY available. Different products are available in the market, but consumer must know which product or brand GIVES him maximum satisfaction. And the person has to search out for relevant information of the product, brand or location. CONSUMERS can use many sources e.g., neighbors, friends and family. Marketers also provide relevant information through advertisements, retailers, dealers, packaging and sales promotion, and window DISPLAYING. Mass media like news papers, RADIO, and television provide information. Now a days internet has become an important and reliable source of information. Marketers are expected to provide latest, reliable and adequate information.

Identified needs can be satisfied only when desired product is known and also easily available. Different products are available in the market, but consumer must know which product or brand gives him maximum satisfaction. And the person has to search out for relevant information of the product, brand or location. Consumers can use many sources e.g., neighbors, friends and family. Marketers also provide relevant information through advertisements, retailers, dealers, packaging and sales promotion, and window displaying. Mass media like news papers, radio, and television provide information. Now a days internet has become an important and reliable source of information. Marketers are expected to provide latest, reliable and adequate information.

When a person has an unsatisfied need, the BUYING process begins to satisfy the needs. The need MAY be ACTIVATED by internal or external factors. The intensity of the want will INDICATE the SPEED with which a person will move to fulfill the want. On the basis of need and its urgency, forms the order of priority. Marketers should provide required information of selling points.

When a person has an unsatisfied need, the buying process begins to satisfy the needs. The need may be activated by internal or external factors. The intensity of the want will indicate the speed with which a person will move to fulfill the want. On the basis of need and its urgency, forms the order of priority. Marketers should provide required information of selling points.

STEPS IN DECISION MAKING PROCESS

1. Need Recognition
2. Information SEARCH
3. EVALUATION of Alternatives
4. PURCHASE Decision
5. Post-Purchase Behaviour

STEPS IN DECISION MAKING PROCESS