Handout Following are some of the areas where consumer behavior is applied apart from other areas of Marketing.

1. Customer Lifetime Value: Most of the study in CRM is about enhancing the CLV for the companys products and services. Though CLV can be calculated using a mathematical formula, it is also important to understand how consumer behavior studies can increase the value of the components included in CLV. 2. The science of CRM is dependent on capturing customer data and hence the field of consumer behavior offers various insights in addition to the usual demographic variables. In this context, effective use of qualitative methods can help generate data about how customers purchase and use products/services. 3. Marketing in the Digital Age The emergence of new media has triggered more challenges for the marketer. It is not always possible to extrapolate data of the consumer who shops at a brick and mortar outlet to an online store. In addition, the marketer also has to deal with the newfound power of the online consumer. Some issues of the Internet marketing are Consumer power in terms of providing feedback on several windows, larger networks, freedom to purchase without the support of the ubiquitous salesman. Flexibility with regard to content both to choose and offer about products and services Selectivity from the viewpoint of consumer Involvement to impulse: complete the last stage of sale Researching web experience Brand equity

So there are a few pointers that can help marketer to manage both sets of challenges. Marketer can attempt to synergize both online and offline marketing strategies by focusing on the following: In depth information, features, benefits, brand comparison Service, emphasis on pricing, non-fashion product, cost of delivery not significant Word of mouse, blogs, social networking, youth market Create almost a near to psychical store experience by having virtual trial rooms, allowing customers to pick various products like clothes and accessories and check the trial on a model/mannequin or the customers own image. Challenges: building trust, privacy, security

Physical store vs. online store: touch & feel, defective pieces, redressal, payment modes, multisensory experience, cultural sensitivity Penetration of supplementary products- internet penetrability, 3G, privacy and security regulations

Internet Shopping Behaviour can also be observed to build better CRM programs and tie the customer to the brand. Tracking methods, credit card transactions, personal information, time spent on the site and the pages, clicks made, etc

What benefits can marketers expect? Cross-selling Up-selling Impulse buying Costs More than 900 m mobile subscribers Customer proximity CRM Customise Service (banking) Customer engagement Snowballing effect Pull effect

4. Consumer rights is another area that can be an offshoot of the consumer behavior studies. Also have a quick look on ethics in the same area (Schiffmann) The consumer movement and consumerism Consumer forums/unions, magazines, boycotts, government legislation and regulation Advertising health claims, advertising to children, right to privacy, right to safety, right to be informed, right to choose ,right to be heard and the right to be a minority consumer without disadvantage

Social marketing Cause-related marketing

5. Consumer research Since the topic of research in marketing is covered in depth and most of the studies in Marketing deals with understanding consumers, we draw insights from these areas. Some topics that one can focus are listed below. [Schiffmann can be referred. Any other book on consumer dealing with consumer research could also be looked at] Scope for qualitative and quantitative data Research process Secondary data Syndicated data CLV

Quantitative: questionnaire, survey, observational methods, attitude scales Qualitative: depth interview, focus group, projective techniques, metaphor analysis, customer satisfaction measurement (surveys, expectations vs. perceptions of product delivered, mystery shoppers, critical incident method, customer complaints analysis, and analysing customer defections