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{CHAPTER 1}

INTRODUCTION

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Introduction :This study will help to find the level of Customer Satisfactions of
The Customers. To know the reason for decline of customers at service stations to
know the perception of customers regarding the charges or rates offered by the
service stations and to know any suggestion from customers to improve the service.
The study is scheduled through primary data and other information
there by preparing questionnaire which focuses of various variables and attributes
that are important to know the satisfaction level and the factors affecting the
purchase decision.
Serving the consumer demand with the help of marketing channels, and
then in term expanding the market even in the face of keen competition.
The marketing objectives developed the marketing plan or program
and control the marketing program to assure the accomplishment of the marketing
objectives.
Marketing begins with the customer, not with Production cost, Sales,
Technological and Marks and it ends with CUSTOMERS SATISFACTION
AND SOCIAL WELL-BEING.
Marketing covers all business activities necessary for ascertaining
Market demand, Planning, and product availability, affecting transfer to
ownership of product, providing for their physical distribution and facilitating the
entire marketing process.

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Problem Statement :In todays competitive worlds customers plays an important role in
every business. The main propose of every business is to satisfy its existing
customers and attract a new customers which is also known as acquiring customer.
Based on the above statement I have to decided to take up my academic
project on CONSUMER BEHAVIOUR ON INDIAN OIL .

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NEED FOR THE STUDY :The need of the study is to analyze the customers behaviors and
relationship after sales and services and feel in the gaps if any which in turn can
improve the service to the customers of INDIAN OIL.
The modern marketing management tries to solve the basic problems of
consumers in the area of consumption. To survive in the market, a firm has to be
constantly innovating and understand the latest consumer needs and tastes. It will
be extremely useful in exploiting marketing opportunities and in meeting the
challenges that the Indian market offers. It is important for the marketers to
understand the buyer behavior.

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SCOPE OF THE STUDY :In this competitive world retaining the customers has become very
important, hence it has become part of business.

Business which can adopt to quick changes and get access to


improvised technologies can survive in this tuff marketing conditions. This study
will helps us to understand customers, preference and their needs expected from
the business owners .

To define the scope of a subject it is important to set parameters or a


framework within which it shall be studied. one such framework for studying
consumer behaviour. This framework is made up of three main sections-the
decision process as represented by the inner-most circle, the individual
determinants on the middle Circle and the external environment which is
represented by the outer circle. The study of all these three sections constitutes the
scope of consumer behaviour. Here, we shall dwell on these constituents of the
framework only briefly as they are explained in detail in the following units.

The scope of consumer behaviour has been briefly touched upon in the
previous section wherein it was explained that how consumer behaviour includes
not only the actual buyer and his act of buying but also the various roles played by
different individuals and the influence they exert on the final purchase decision. In
this section we shall define and explain the scope of study of consumer behaviour.

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{CHAPTER 2}

CONSUMER BEHAVIOUR

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CONSUMER BEHAVIOUR:Consumer Behaviour is the study of individual groups or organization and the
processes they used to select secure, use and dispose of products services,
experiences and ideas to satisfy needs and the impacts that these processes have
on the consumer and the society. It blends elements from psychology, sociology,
social anthropology, marketing and economics. It attempts to understand the
decision- making processes of buyers, both individually and in groups such as how
emotions affect buying behaviour.
It studies characteristics of individual consumers such as demographics and
behavioral variables in an attempt to understand peoples wants. It also tries to
assess influences on the consumer form groups such as family, friends, sports,
reference groups and society in general. Consumer behavior study is based on
consumer behavior, with the customer playing the three distinct roles of users,
payer and buyer.
Research has shown that consumer behaviour is different to predict even for
experts on the field. Relationship marketing is an influential assets for customer
behaviour analysis as it has a kneen interest in the re-discovery of the meaning of
making through the re-affirmation of the importance of the customer or buyer. A
greater importance is also placed on consumer relation, customer relationship
management, Personalization, Customization and one-to-one marketing.

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Again also in other word we can say that consumer behaviour refers to the
ultimate consumer. Many factors, specificities and characteristics influence the
individual in what he is and the consumer in his decision making process,
shopping habits, purchasing behaviour, the brands he buys or the retailers he goes.
A purchase decision is the result of each and every one of these factors. An
individual and a consumer is laid by his culture, his structure, his subculture, his
social class, his membership groups, his family, his personality, his psychological
factors, etcand his influenced by cultural trends as well as his social and
societal environment. By identifying and understanding the factors that influence
their customers, brands have the opportunity to develop a strategy, a marketing
message (Unique value proposition) and advertising campaigns more efficient and
more in line with the needs and ways of thinking of their target consumers, a real
asset to better meet the needs of its customers and increase sales.
Consumer behaviour refers to the selection, purchase and services for the
satisfaction of their wants. There are different processes involved in the consumer
behaviour. Initially the consumer tries to find what commodities he would like to
consume, then he selects only those commodities he would like to consume, then he
selects only those commodities that promise greater utility. After selecting the
commodities and takes the prevailing prices of commodities and takes the decision
about the commodities he should consume. Meanwhile, there are various other
factors influencing the purchase of products. Consumer such as social, cultural,
personal, and psychological.
The explanation of these factor is given below:Consumers buying behaviour is influenced by four major factors:1) Cultural
2) Social
3) Personal,
4) Psychological

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These factors cause consumers to develop product and brand preferences.


Although many of these factors cannot be directly controlled by marketers,
understanding of common behaviours to thrown to their own culture. For a brand,
it is important to understand and take into account the cultural factor inherent to
each market or to each situation in orders to adapt its product and its marketing
strategy. As these will play a role in the perception, habits, behaviour or
expectations of consumers.

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STAGES & TYPE OF


BEHAVIOUR

CONSUMER

STAGES OF CONSUMER BUYING BEHAVIOR :There are six stages of consumer behaviour which is following types discussed
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1. Problem Recognition (awareness of need)- difference between the discard state


and the actual condition. Deficit in assortment of products. HungerFood.
Hunger stimulus you need to eat.
2. Information search:
o Internal search, Memory
o External search if you need more information Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.

TYPES OF CONSUMER BEHAVIOR : The four types of consumer buying behaviour-buying low involvement frequently
purchased almost automatically.
Limited Decision Making -buying product occasionally. When you need to obtain
information about unfamiliar brand in a familiar product category, perhaps,
requires a moderate amount of time for information gathering. Examples include
or knowing about engines working power of tractor for which it shows the brand
of the tractor by which the customer is purchasing the tractor according to
working capacity of the engine of the tractor or brand name of the tractor.
Extensive Decision Making/Complex high involvement, unfamiliar expensive and
infrequently bought products. High degree of economic performance psychological
risk. Includes cars, homes computers, education. Spend a lot of time seeking
information and deciding. Information from the companies MM; friends and
relatives, store personnel etc. Go through all six stages of the consumer buying
process.
Impulse buying, no conclusions planning.

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HISTORY OF CONSUMER RESEARCH

HISTORY OF CONSUMER RESEARCH:The Field of Consumer Behavior is rooted in the marketing concept, a
business orientation that evolved in the marketing concept, a business orientation
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evolved in the 1950s, through several alternative approaches towards doing


business referred to respectively as the production concepts, the product concept,
and selling concept.
The production concept assumes that consumers that mostly interested
product availability at low prices; its implicit marketing objectives are cheep
efficient production and intensive distribution. This orientation makes sense when
consumers are more interested in obtaining than they are in specific features and
will buy whats available rather than wait for what they really want. Today using
this orientation make sense in developing countries or in other word situation in
which the main objective is to expand the market.
The product concept assumes that consumers will buy the product that offers
them the highest quality the best performance, and the most features. A product
orientation leads the company to strive constantly to improve the quality of its
product and to add new features that are technically feasible without finding out
first whether or not consumers really want these features.

A product orientation often leads to marketing myopia that is, a focus on


the product rather than on the consumer needs it presumes to satisfy. Marketing
myopia may cause a company to ignore crucial changes in the market place
because it causes marketers to look in the mirror rather than through the window.
A natural evolution from both the production concept is the selling the product that
it has unilaterally decided to produce. The assumption of the selling concept is that
consumers are unlikely to buy the product unless they are aggressively persuaded
to do so mostly through the hard sell approach. The problem with this approach
is that it fails to consider satisfaction. When consumers are induced to buy
products they do not want or need, they will not buy them again.

The field of consumer behaviour is rooted in a marketing strategy that


evolved in the late 1950s, when some marketers began to realize that they could
sell more goods, more easily, if they produced only those goods they had already
determined that consumers would buy. Instead of trying to persuade customers to
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buy what the firm has already produced, marketing oriented firms found that it was
a lot easier to produce only products they had first confirmed, through research,
that consumers wanted. Consumers needs and wants became the firms primary
focus. This consumers-oriented marketing philosophy came to be known as the
marketing concept. The key assumption underlying the marketing concept is that,
successful, a company must determine the needs and wants of specific target
markets and deliver the desired satisfaction better than the competition.
The marketing concept is based on the premise that a marketer should make
what it can sell, instead of trying to sell what it has made. Whereas the selling
concept focuses on the needs of the buyer and customer satisfaction. The
widespread adoption of the marketing concept by American business provided the
impetus for the study of consumers were highly complex individuals, subject to a
variety of psychological and social needs had priorities of different different
consumer segments differed dramatically, and in order to design new products and
marketing strategies that would fulfill consumers needs, they had to study
consumers and their consumption behaviour in depth.
Thus, the marketing concept underscored the importance of consumer
research and laid the group work for the application of consumer behaviour
principles to marketing strategy.

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NATURE OF CONSUMER BEHAVIOR

NATURE OF CONSUMER BEHAVIOR :i.

The subject deals with issues related to cognition, affect and


behaviour in consumption behaviours, against the backdrop of
individuals internal self and include psychological components like
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ii.
iii.

iv.

v.
vi.

vii.

personal motivation and involvement, perception, learning and memory,


attitudes, self- concept and personality, and, decision making. The
individual determinants. The individual determinants pertain to external
influences surrounding an individual and include sociological,
anthropological, anthropological and economic components like the
family, social class culture, sub-culture, cross- culture, and national and
regional influences.
The subject can be studied at micro and macro levels depending
upon whether it is analyzed at the individual level or at the group level.
The subject is interdisciplinary. It has borrowed heavily from
psychology (the study of the individual: individual determinants in
buying behaviour), sociology (the study of how an individual operates in
group/groups and its effects on buying behaviour), anthropology (the
influence of society on the individual: cultural and cross-cultural issues
in buying behaviour), and economics (income and purchasing power)
Consumer behaviour is dynamic and interacting in nature. The three
components of cognition,
affect and behaviour of individuals
alone or in groups keeps on changing; so does the environment. There is
a continuous interplay or interaction between the three components
themselves and with the environment. This impacts consumption pattern
and behaviour and behaviour and it keeps on evolving and it is highly
dynamic.
Consumer behaviour involves the process of exchange between the
buyer and the seller, mutually beneficial for both.
As a field of study it is descriptive and analytical/ interpretive. It is
descriptive as it explains consumer decision making and behaviour in the
context of individual determinants and environmental influences. It is
analytical / interpretive, as a backdrop of theories borrowed from
psychology, sociology, social psychology, anthropology and economics,
the study analysis, with the objective is to understand and predict
consumption behaviour.
It is a science as well as an art. It uses both, theories borrowed from
social sciences to understand consumption behaviour, and quantitative
and qualitative tools and techniques to predict consumer behaviour

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SCOPE OF CONSUMER BEHAVIOR

SCOPE OF CONSUMER BEHAVIOR :The study of consumer behaviour deals with understanding consumption
patterns and behaviour. It includes within its ambit the answers to the following:
What the consumers buy: goods and services
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Why they buy it: need and want


When do they buy it : time: day, week, month, year, occasions etc.
Where they buy it: place
How often they buy it: time interval
How often they use it: frequency of use
The scope of consumer behaviour includes not only the actual buyer but also the
various roles played by him/ different individuals.
The term consumer behaviour describes two different kinds of consuming
entities:
1. The Personal consumers
2. The organizational consumer
The personal consumer buys goods and services for his or her own use, for
his or her own use, for the use of the household or as a gift for a friend. In each of
these contexts, the products are bought for final use by individuals who are
referred to as end users or ultimate consumers. The second category of consumerthe organizational consumer- includes profit and institution (e.g. schools,
hospitals, and prisons), all of which must buy products, equipment, and services in
order to run their organizations.

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CONSUMER BEHAVIOR AS A DYNAMIC PROCESS

CONSUMER BEHAVIOR AS A DYNAMIC PROCESS:Consumer behaviour involves the understanding that acquisition, use and
disposition can occur over time in a dynamic sequence. In other words the study of
consumer behaviour is the study of how individuals make decision to spend their
available resources (money, time, efforts) on consumption-related items.
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The American Marketing (AMA) defines consumer behaviour as The


dynamic interaction of cognitions, behaviour and environmental events by which
human begins conduct the exchange aspects of their lives.
Consumer behaviour is The study of individuals, groups or organizations
and the process they use to select, secure, use and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on
the consumer and society, Behavior occurs either for the individual, or in the
context of group (e.g. friends influence what kinds of clothes a person wears) or
an organization (people on the job make decisions as to which services the firm
should use).
Product is often of great interest to the marketer, because this may
influence how a product is the positioned or how we can encourage the
consumption of a product in market. Consumer behaviour involves services and
ideas as well as tangible products. The impact of consumer behaviour on society is
also relevant. For examples, aggressive marketing of high fat foods, or aggressive
marketing of easy credit, may have serious repercussions for the national health
and economy. Services are also marketed in much the manner as goods and
commodities. Still there are wide difference between goods and services based on
their characteristics and attributes.

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{CHAPTER 3}

APPLICATION OF CONSUMER BEHAVIOUR

APPLICATION OF CONSUMER BEHAVIOUR :The study of consumer behaviour deals with basic questions related to
buying such as: what we buy and how we buy. The study of consumer behaviour
makes us aware of the subtle influences that persuade us use the product or
services of consumer behaviour theories and verification of applications of such
theories is necessary. Consumer behaviour is simple a larger field of human
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behaviour and an extended field of marketing affecting researchers and marketers


from past few decades.

FOUR MAIN APPLICATION OF CONSUMER BEHAVIOUR :The most obvious application of consumer behaviour is for deriving
marketing strategy. New products initially adopted by a few consumers and spread
gradually to the rest of the population later. The companies that introduce new
products must be well financed so that they can stay afloat until their products
become a commercials success. It is also important to please initial customers,
since they will in turn influence many subsequent customers brand choices.

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DIMENTIONS OF CONSUMER BEHAVIOR

DIMENTIONS OF CONSUMER BEHAVIOR :-

Consumer behaviour is an interdisciplinary science and relatively emerged as


a new fields of study in the mid to late 1060s. These new disciplines such as
applied psychology, social psychology, cultural anthropology, economics and
econometrics. Therefore, it is crucial to discuss various dimensions of consumer
behaviour in the context of Indian consumer.

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(a) Consumer Needs need Motivation: - Consumer needs are the basis of all modern

marketing. The key to companys survival, profitability and satisfy unfulfilled


consumer needs marketers do not create needs through in some instances they may
make consumer more keenly aware of unfelt need. Motivation can be described as
the deriving force within individuals that impels them to action.
The deriving force is produced by a state of tension exists as the result of
an unfilled need. Motivation is a need-included tension which exerts a push on
the individual to engage in behaviour that he experts will gratify needs and thus
reduce tension. Individual strive both consciously to reduce this tension through
behaviour that they anticipated will fulfill their needs. Consumer motivation in
nature because their wants are frequently changing.
(b) Consumer Psychographics: - Marketing practitioner and consumer researchers
refer Psychographics, as lifestyle analysis or AIO (activity, interest and opinions)
research. Consumer specific psychographics researches are related to consumer
personality, buying motives, interests, attitudes, beliefs and values, Services
specific psychographics researches are related to product attributes such as
consumer responses about products, brands or a specific consumption situation.
Consumer Perception: - Perception is defined as the process by which an individuals
selects, organizes and interprets stimuli in to a meaningful and coherent manner.
Stimuli are sensory inputs include services, packages, brand names,
advertisements and commercials. Sensation receptors are the immediate and direct
response of the sensory organs that receive sensory inputs. Sensory is the
immediate and direct response of the sensory organs to simple stimuli.
Learning and consumer involvement: Consumer learning is the process of acquiring
the knowledge related to purchase and consumption information.
Consumers attitudes: Attitudes are expression of inner feelings that reflects whether

a person is favorably or unfavorably predisposed to some object, person or event.


As an outcome of psychological process attitudes are not directly observable but must be
inferred from what people say or do.
(c) Demographic Factors: Demographics influence buying behaviour both directly

and indirectly by affecting other attributes of individuals such as their personal


values and decision styles. There are contradictory conclusions about the effect of
age, income and gender for a particular service.
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Age, age-groups, education level, income, occupation etc. Serves as various


dimensions, caste, age, family background, regional disparities in states,
linguistics difference, regional perception of class factor in affecting the social
status, all crucial role in determining the social status of an individual.
(d) Economic Factors : Wealth, home ownership, number of earning members in a

family, house hold income, expenditure, rate of interest, inflation, economic


conditions and investment pattern are some of the economic factors have strong
influence on consumer purchase decision.
(e) Socio-cultural factors : Consumer in a group and consumer reference groups:

A group may be defined as two or more people who interact to accomplish


similar goals. Consumer relevant groups are family, friends, formal social groups,
shopping groups, consumer action groups, work groups, references groups etc.
Four basis functions provided by the family are relevant to consumer behaviour
these include; economic well-being, emotional- support, suitable family lifestyles
and family-member socialization. Sociologists and researchers have strongly
favoured the concept of Family Life Cycle (FLC) - a way to classify family units in
to significant groups. FLC is a strategic tool for marketers to segment families in
terms of a series of stages spanning the life course of a family life cycle stages are
bachelorhood, parenthood, post parenthood and dissolution.
(f) Consumer and their social classes: Social class is defined as the division of

members of a society into a hierarchy of distinct status classes so that members of


each class have relatively the same status and members of all other classes have
either more or less status. Social class is more or less status. Social class is
measured in terms of social status of its members and comparison of members of
each social class with other social classes. Some of the variables of the social
class are occupation, income, educational level and property ownership etc.
Culture and Consumer behaviour: Culture is a sum total of learned beliefs, values and
customs that serves to direct the consumer behaviour of a particular society. Subculture can be
thought as a distinct cultural group that exits as an identifiable segment within a larger and more
complex society.
(g) Consumer and Consumerism: The word consumerism has many expressions depending on
who is using the term government, business, consumer groups, academicians and researchers.
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Consumerism is defined as a social movement of citizens and government to enhance the rights
and powers of buyers in relation to seller.

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METHODS OF CUSTOMER RESEARCH


IN MARKETING.

METHODS OF CUSTOMER RESEARCH IN MARKETING:There are a lot of different consumer behaviour research methods, for
examples: surveys, focus groups, interviews, storytelling, photography, pictures,
diaries, experiments, fields experiments, conjoint analysis, observations, purchase
panels, database marketing etc. Most popular types of consumer researches are inhouse marketing research departments, external marketing research firms,
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advertising agencies, syndicated data services, retailers, research foundation/trade


groups, government, consumer organizations etc. Currently academics and
academic research centers are very interested in consumer researches because
there are a lot of changes and challenges, there are changes in theories,
theoretical approaches, methods and methodologies.
There are two main approaches to consumer research use in marketing:
1. Secondary research involves using information that others have already
put together.
2. Primary research in contrast, is research that you design and conduct
yourself, Primary methods include surveys, focus groups, personal
interviews, projective techniques, observation, online research methods,
and psychological methods. Each methods has own advantages and
disadvantages:
3. Surveys are useful for getting a great deal of specific information;
4. Focus groups are useful when the marketer wants to launch a new product
or modify an existing one;
5. Personal interviews involve in depth questioning of an individual about his
or her interest in or experiences with a product;
6. Projective techniques are used when a consumer may may feel
embarrassed to admit to certain opinions, feelings, or preferences;
7. Observation of consumers and their behaviour what often is powerful tool;
8. Online research methods. Currently scanner data is most popular method
where the information from the shops are analyzed and compared.
9.

At the same time development of information technologies provoke development of


new online methods and we are expecting a lot of new methods in the nearest five
years; Customer behaviour is influenced by different factors and it is important to
analyze how these factors are influencing changes in customer behaviour and customer
behaviour in general.

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Therefore the authors would like to apply correlation methods to the list of
consumer behaviors analysis.

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FACTORS INFLUENCING BEHAVIOUR

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FACTORS INFLUENCING BEHAVIOR:-

Many authors have their own classification of factors what influence


consumer behaviour. For examples, David Jobber recommended such
classification-Technical, Economics, Social and Personal. Technical criteria are
related to the performance of the product or services and include reliability,
durability, comfort, and convenience. Economic criteria concern the impact that
the purchase makes on the persons perceived relationships with other people,
and the influence of social norms on the individual psychologically. Self image is
our personal view of us. Some people might view themselves as young, upwardly,
successful executives, and wise to buy a product that reflects that conception.
Influence of Social Environment :-

The most important social influences are cultures, subcultures, social class,
family, and interpersonal or reference group influences. Culture refers to the
values, ideas, attitudes, and symbols that people adopt to the values, ideas,
attitudes, and symbols that people adopt to communicate, interpret, and interact as
members of society. In fact, culture describes a societys way of includes abstract
elements (values, attributes, ideas, religion), and material elements (symbols,
buildings, products, brands). The process of absorbing a culture is called
specialization. It continues throughout ones life and produces many specific
preferences for products and services, shopping patterns, and interactions with
others. Applied to marketing and consumer behaviour, it is referred to as consumer
specialization. At the same time according to the authors point of view the global
trends are connected with mix of cultures and lost of strict national traditions.
Many international events become a part of national celebrations.

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For example, Halloween day is not Latvian national celebration, but it becomes
usual. The concept of culture has two primary implications for marketing: it
determines the most basic values that influence consumer behaviour patterns, and
it can be used to distinguish subscribes that represent substantial market segments
and opportunities.

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{CHAPTER 4}

INDIVIDUAL DIFFERENCES OF CONSUMER


BEHAVIOUR

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Individual Differences :-

A vast number of individual differences can influences consumer behaviour.


Some of the most important include personality, lifestyles and psychographics, and
motivation. Personality reflects a personality, lifestyles and response to his or her
environment. It has been linked to persons consistent response to his or her
environment. It has been linked to differences in susceptibility to persuasion and
social influence and thereby to purchase behaviour. General personality traits
related to consumer behaviour include extroversion, self- eastern, and dogmatism
aggressiveness.
In addition to the environment and individual consumer characteristics,
situational influences also affect consumer behaviour. Situational influences can
involve purchase for anticipated situations, such as special occasions, and
unanticipated occurrences, such as time pressures, unexpected expenses, and
changed plans.
Situational store factors within the retail environment are also important.
These store conditions include physical layout, atmospherics, location, the
presence of others, the assistant of salespeople, and in-store stimuli.
Although marketers try to define groups of potential customers with common
attributes or interest, as a useful until for the formulation the marketing strategies,
it should not be forgotten that such groups or market segments are still made of
individuals who are different from each other. This section, therefore, looks at
aspects that will aspects that will affect an individuals perception, and handling of
the decision processes, such as personality, perceptions, learning, motivation and
the impact of attitudes. The authors support idea that personality is very important
in consumer behaviour.

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Generally person with her/his individual characteristics, psychological


portrait, experience, attitude, perception, motivation etc, is central element in
consumer behaviour theory. Therefore, authors just can add that in last decade we
can observe a lot of new definitions and meanings who describe a person and it
individually, for example, emotional level etc. These are subjects for
interdisciplinary studies (psychology and marketing, sociology and economics
etc). Another set of factors that marketers certainly hope will influence consumer
behaviour is the marketing mix itself.
Much of what we know about how consumers behave is based on theories and
research from the field of psychology, the study of individual behaviour. When
analyzing the process by which consumers make purchase decisions, marketers
should understand such psychological factors as motivation, perception, learning,
personality, and attitudes because they help explain the why of consumer
behaviour.

Psychological factors are sometimes called internal factors, that is, their be
observed, but must be interfered from what people say or do.Situational factors are
all those factors particular to a time and place of observation that do not follow
from a knowledge of a personal (individual) and stimulus (choice alternative)
attributes and that have a demonstrable and systemic effect on current behaviour.
In other words, these factors are influences alternatives being considered. Such
factors may affect communications situation, purchase situation, or usage
situation.

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COMPANY PROFILE

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COMPANY PROFILE
Indian Oil Corporation (IndianOil) is India's largest commercial enterprise, with a sales turnover
of Rs. 4,50,756 crore (US$ 73.7 billion) and profits of Rs. 5,273 crore for the year 2014-15. It is
also the leading Indian corporate in Fortune's prestigious 'Global 500' listing of the world's largest
corporates, ranked at the 96th position for the year 2014. As India's flagship national oil company,
with a 33,000-strong work-force currently, Indian Oil has been meeting Indias energy demands
for over half a century. With a corporate vision to be 'The Energy of India' and to become 'A
globally admired company,'
Indian Oil's business interests straddle the entire hydrocarbon valuechain - from refining, pipeline transportation and marketing of petroleum products to exploration &
production of crude oil & gas, marketing of natural gas and petrochemicals, besides forays into
alternative energy and globalisation of downstream operations.
Having set up subsidiaries in Sri Lanka, Mauritius and the UAE, the
Corporation is simultaneously scouting for new business opportunities in the energy markets of Asia
and Africa. It has also formed about 20 joint ventures with reputed business partners from India and
abroad to pursue diverse business interests

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Downstream Majors
IndianOil accounts for nearly half of India's petroleum products market share, 31% national refining
capacity (together with its subsidiary Chennai Petroleum Corporation Ltd., or CPCL), and 71%
downstream sector pipelines through capacity.
The IndianOil Group owns and operates 10 of India's 22 refineries with a combined refining capacity
of 65.7 MMTPA (million metric tonnes per annum), i.e., approx. 1.31 million barrels per day. The 15MMTPA refinery under commissioning at Paradip on the east coast will raise the capacity to over 80
MMTPA.
The Corporation's cross-country pipelines network, for transportation of crude oil to refineries and
finished products to high-demand centres, spans over 11,220 km. With a throughput capacity of
80.49 MMTPA for crude oil and petroleum products and 9.5 MMSCMD for gas, this network meets
the vital energy needs of the consumers in an efficient, economical and environment-friendly
manner.
The Corporation has a portfolio of leading energy brands that includes Indane LPG cooking gas,
SERVO lubricants, XTRAPREMIUM petrol, XTRAMILE diesel, PROPEL petrochemicals, etc.
Besides IndianOil, both SERVO and Indane have earned the coveted Superbrand status.

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Countrywide Reach
IndianOil's network of over 43,000 customer touch-points reaches petroleum products to every nook
and corner of the country. These include over 24,400 petrol & diesel stations, including 6,200 Kisan
Seva Kendra outlets (KSKs) in the rural markets. The Corporation has a 65% share of the bulk
consumer business, and almost 6,400 dedicated pumps are in operation for the convenience of
large-volume consumers like the defence services, railways and state transport undertakings,
ensuring products and inventory at their doorstep. They are backed for supplies by 136 bulk storage
terminals and depots, 98 aviation fuel stations and 91 LPG bottling plants.
Indane LPG cooking gas reaches the doorsteps of 8.8 crore households in about 3,264 markets
through a network of 7,934 distributors. IndianOil's Aviation Service commands a 63.6% market
share in aviation fuel business, serving national and international flag carriers, private airlines and
the Indian defence services. During the XII Plan period (2012-17), the Corporation is investing Rs.
56,200 crore in a host of projects that include augmentation of refining capacity, expansion of
petrochemicals infrastructure, and building the E&P portfolio. [4]

Page 40 of 55

Cutting-Edge R&D
IndianOil's sprawling R&D Centre at Faridabad near Delhi is one of Asia's finest, and plays a key
role in supporting the Corporation's business interests by developing economical, environmentfriendly technology solutions. It has won recognition for four decades of pioneering work in lubricants
formulation, refinery processes, pipeline transportation and alternative fuels, and holds 384 active
patents, of which 233 are international patents.
The vibrant research undertaken by the Centre in tribology is showcased by IndianOil's SERVO
productline, with over 4,000 lubricant & grease formulations to suit all conceivable applications. The
Centre has also developed several in-house refinery process technologies and catalysts to suit
Indian conditions. Its alternative energy programmes include bio-energy, solar energy, Hydrogen
energy, H-CNG blends, synthetic fuels and shale oil. The Centre is also focussed on cutting-edge
research in the areas of nanotechnology, petrochemicals & polymers, coal gasification/ liquefaction,
and gas-to-liquid technologies.

Page 41 of 55

New Businesses
IndianOil is the second largest player in the domestic petrochemicals market, besides exports to
about 60 countries. The Corporation offers a full slate of petrochemical products and intermediates
under the brand name PROPEL.
IndianOil made its big-ticket entry into petrochemicals with the commissioning of the country's
largest LAB (Linear Alkyl Benzene, used in the production of detergents) plant at its Koyali Refinery
in August 2004. An integrated PX/PTA (Paraxylene/Purified Terephthalic Acid) complex came up at
Panipat in Haryana in 2006. The PTA plant is the single largest unit in India, with a world-scale
capacity of 5,53,000 MTPA, and produces polyester intermediates. A world-class Naphtha Cracker
with downstream polymer units, set up at Panipat in 2010, is the largest operating cracker capacity
in India producing polymer (plastics) intermediates. [5]
To further consolidate its presence in the petrochemicals business, IndianOil is setting up a
polypropylene plant and an ethylene glycol plant at its Paradip Refinery.
As part of its Exploration & Production portfolio, IndianOil has participating interest in 10 domestic
and seven overseas blocks. Out of the 10 domestic blocks, the Corporation is the operator (with
100% participating interest) in two onshore exploration blocks in the Cambay Basin, and holds nonoperating participating interest ranging from 20% to 43.5% in the remaining eight. The seven
overseas blocks are located in Libya, Gabon, Nigeria, Yemen, Venezuela, Canada and USA.
IndianOil took up natural gas marketing in 2004. Since then, the Corporation has expanded its
customer base significantly by leveraging its inherent strengths and countrywide reach. Its innovative
'LNG at the doorstep' initiative has benefited bulk users located away from gas pipelines.
IndianOil is co-promoter of PLL (Petronet LNG Ltd.), which has set up LNG (Liquefied Natural Gas)
import terminals at Dahej & Kochi, and has marketing rights for 30% of the LNG procured by PLL. It
is also in the process of sourcing more quantities of LNG directly to meet the increasing domestic
requirements, and is setting up a 5-MMTPA terminal at Ennore near Chennai for LNG imports.
IndianOil currently operates city gas distribution networks in Agra and Lucknow through Green Gas
Ltd., its joint venture with GAIL (India) Ltd. Similar networks are coming up at Allahabad and
Chandigarh, to be followed by Ernakulam, Daman and Panipat. Furthermore, in consortium with
GSPC, HPCL and BPCL, IndianOil has won bids for laying gas pipelines from Mallavaram to
Bhilwara and Vijaypur via Bhopal, from Mehsana to Bhatinda, and from Bhatinda to Jammu and
Srinagar. The Corporation has also formed a consortium with M/s. Adani Gas Ltd. to develop city gas
distribution networks on a pan-India basis.[6]

Page 42 of 55

Green Energy Initiatives


IndianOil has ambitious plans to broaden its energy basket with alternative energy options such as
wind, solar, bio-fuels and nuclear power.
Wind power systems to the tune of 69.3 MW have been installed in the States of Gujarat and Andhra
Pradesh. A 5-MW grid-connected solar power plant at Rawra, Rajasthan, is operational since 2012.
Solar power systems of about 900 kW have also been installed at various IndianOil installations and
offices across the country. Steps are underway to set up an additional 200 MW of wind power and 60
MW of solar power systems.
As a major initiative in reducing carbon emissions, the Corporation has so far converted over 2,600
fuel stations to operate on solar energy.[7] The cumulative capacity of 8.6 MW from these solar photovoltaic power systems, with an annual generation capacity of 103 lakh units, has carbon emission
reduction potential of 8,500 tonnes per year. IndianOil's extensive retail network in rural areas was
leveraged to sell over 1.4 lakh rechargeable solar lanterns to help replace the traditional kerosene
wick lamps in rural households which are not yet connected to grid power.
IndianOil has the largest captive plantation covering 8,000 hectares for bio-fuel production in
India in the States of Chhattisgarh, Madhya Pradesh and Uttar Pradesh. To straddle the complete
bio-fuel value chain, IndianOil has formed two joint ventures, IndianOil CREDA Biofuels Ltd. and
IndianOil Ruchi Biofuels LLP. Currently, ethanol production from lignocellulosic sources such as rice
straw, cotton stalk, bamboo, etc., is also being actively explored.[8]

Page 43 of 55

Partnering Communities
As the flagship public sector enterprise of India, IndianOil has successfully combined its corporate
social responsibility agenda with its business offerings, meeting the energy needs of millions of
people every day, across the country - from Kashmir in the north to Kanya Kumari in the south, from
Kutch in the west to Kohima in the east.
Besides, the Corporation partners communities in which it operates by supporting innumerable
initiatives connected with health, family welfare, education, environment protection, provision of
potable water, sanitation, and empowerment of women and other marginalised groups. IndianOil has
always been in the forefront in times of national emergencies, and IndianOilPeople have time and
again rallied to help victims of natural calamities by maintaining uninterrupted supply of petroleum
products, and contributing to relief and rehabilitation measures in cash and kind.

Page 44 of 55

{CHAPTER 5}

ANALYSIS AND METHODOLOGY

Analysis and Methodology:Page 45 of 55

Initially model analysis was carried out to estimate the natural frequencies of
the system. First 10 models were extracted in this analysis. Acceleration was
measured at different locations. Sensor location on were chosen such that
maximum sensitive was observed. The measured acceleration peak value on the
fender at base locations were in turn used for the Frequency Response analysis in
optistruct.
Marketing Strategy and Customer Behavior
(i) Marketing Analysis
(a) Consumer
(b) Company
(c) Competition
(d) Condition
(ii) Marketing Segmentation
(e) Identification product received results
(f) Group customers with similar need sets
(g) Describe each group
(h) Select target market
(iii) Marketing Strategy
(i) Product
(j) Price
(k) Distribution
(l) Communication
(m) Service
(iv) Consumer Decision Process
(n) Problem Recognition
(o) Information Search-internal, external

(p) Alternatives evolution


Page 46 of 55

(q) Purchase
(r) Use
(s) Evolution
(v) Outcomes
(t) Customer Satisfaction
(u) Sales
(v) Product images

The figure shows the consumer life style in the centre of the circle. The
consumer and his life style is influenced by a number of factors shown all around
the consumer. These are culture, subculture, values, demographic factors, social
status, and reference groups, house hold and also the internal make up consumer,
which are a consumers emotions, personally motives of buying, perception and
learning. Consumer is a lead to the formation of attitudes and needs of the
consumer.
Then follows the process of decision making as shown in the rectangle which
consists of the problem recognition, information search (which is both internal and
external) than the evaluation and selection procedure, and finally the purchase and
use of the product the customer may be satisfied or dissatisfied with the product.
This is known as post purchase behaviour. The existing situation also play an
important role in the decision making process. The dotted line shows the feedback.

Page 47 of 55

CURRENT TRENDS
IN
CONSUMER BEHAVIOR

CURRENT TRENDS IN CONSUMER BEHAVIOR:Page 48 of 55

A historical perspective shows that a consumer orientation developed


out of economic necessity in the 1950s. With the advent of buyers market,
marketing managers or sales manager began to identify consumer needs in a
competitive environment and to gear marketing strategies accordingly. A better
understanding of consumer needs, perception, attitudes, and intentions became
necessary. Current trends suggests that marketers must continue to be sensitive to
change in consumer needs, demographic characteristics and lifestyles in order to
develop effective marketing strategies. Three changes in particular are likely to
have an impact on marketers.
1. A greater value orientation on the part of consumers
2. Greater interest in and access to information on products and
services.
3. The desire for more customized product
Marketing firms need some systematic basis for collecting information. Most
have a marketing information system designed to provide data on what consumers
do and why. Such information system designed to collect both secondary data
(existing data from published sources or company records) and primary data (data
collected by the company to its answer its questions).

Page 49 of 55

PERSONAL INFLUENCE
ON
CONSUMER BEHAVIUOR

Page 50 of 55

PERSONAL INFLUENCE ON CONSUMER BEHAVIUOR :Personal influence is the best described as the effect or change in a persons
attitudes or behaviour as a result of communication with others. It can occur in a
number of ways. The following distinction can be made to indicate the
multidimensional nature of this communicating phenomenon:
1. Communicating leading to influence may be source-initiated (by the
influence) or recipient-initiate (by the influence).
2. Communication may result in one-way or two way influences. That is, the
individual may influence while being influenced.
3. Communication resulting in influence may be verbal or visual (According to
Robertson 1971;1970).
Personal Influence is frequently used synonymously with the term word of
mouth advertising or communication. Since word of mouth is oral
communication, it is actual subset of personal influence. Promotional activities
conducted by the marketer are not the only or necessarily the most important
influences on purchasing behaviour.
There is evidence that favorable word-of-mouth communication can actually
have more influence than the huge sums spent on advertising. Consequently, many
companies advertise little and depend instead, on word-ofmouth promotion.
Whether for durable goods or nondurable, products or services, word-ofmouth
advertising has a big impact.

The marketer frequently tries to create a synthetic or simulated word-ofmouth program by using celebrities in advertising campaigns. These spokes people
Page 51 of 55

enter our home via the media and speak to us as if it were a one-to one
conversation. This simulated personal influence may nevertheless by very effective.
It is clear that personal influence- whether actual or synthetic-can be quite
convincing. The marketer is vitally interested in this process because a products
success appears dependent on it. It is very important, therefore, that mostly
favorable, not unfavorable, communications take place.
Therefore, it is very important to marketers to manage the personal influence
and word-of-mouth communications process effectively. Why is the word-of-mouth
communication so strong? There seem to be three main reasons for its dominant
position in relation to impersonal media:
1. Consumers view word-of-mouth as reliable and trustworthy information which
can help people to make better buying decisions.
2. In contrast to the mass media, personal contacts can provide social support and
give a stamp of approval to a purchase.
3. The information provided is often backed up by social-group pressure to force
compliance with recommendations. (Arndt 1967; 25)

Page 52 of 55

CONCLUSION

CONCLUSION :-

Page 53 of 55

As mentioned in the beginning it is impossible to define


CONSUMER BEHEVIOUR in quantitative parameters, what I have tried is to
developed and understanding the consumers thought process and his reaction
when exposed to different products under different conditions.
As a marketer it imperative to understand what the consumers
expectations are form a product, and how he will react to marketing initiative by
you or your team. To understand consumers reactions one must consider various
factors that influence the consumers mindset both, within our control and the
ones not under our control. An acute understanding of these influences can go a
long way in successfully marketing a product.
We began with the consumer realizing that there is a need, then he
takes action to fulfill the need, that makes a purchase to fulfill his desire.

Page 54 of 55

BIBLIOGRAPHY
Text Books :-

Impact of Consumer Involvement on Consumer Behaviour by


Kavita Sharma.
Baran, Galka, Strunk (2008), Customer Relationship
Management, South-Western Cengaga Learning India Private
Limited, New Delhi.
Bray, J.H., and Maxwell, S. E.(1985),Multivariate Analysis of
Variance.
Consumer Behaviour- Dynamics of building brand equity Written
by Miss. Soma Sen Gupta.
WEBSITES :-

www.google.co.in
www.balancesheet2014mahacement.co.in
www.slideshare.com
www.consumerbehaviour.co.in
www.customerrelaionship.in
www.indian oil.co.in

Page 55 of 55

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