Purchase Behavior Study

Know

the

Customer

Purchase behavior research the study of when, how, where, why consumer buy or not buy a product. Buying behavior depends on the decision process of the customer that what to buy and the factors that influences them to buy. The buying behavior mainly influenced by

Needs of the product Awareness about the product Search for the right place to purchase the product The alternatives / substitutes of the product

The purchase decision of consumer is based on the behavior of the seller, the product quality, and the features of the product, the packaging, the uses, the importance and the advantages of the product. The purchasing process has been changed dramatically during the recent years with the popularity of digital media. The conventional purchase models are insufficient to adequately describe and forecast consumers buying process. We have are designed Real -time Interactive Studies (RIS) to provide a deep understanding of the attributes of buying process from consumers view point. We track consumer behavior over a period of 6-12 month pre-purchase period. The study adds up value to decision making on Pricing, Marketing Strategies, Dealer Management and Customer Retention. The analysis of consumer behavior is rooted in consumer psychology. It enables us to generate data revealing the hidden thoughts that consumers make their selection. The model is driven by rational-emotive cognitive processes, which are the basic factors in human decision making. It demonstrates how consumer purchase decisions directly relate to human psychology and inner thoughts. ________________________________________________________________

indians save around 30% of their income and are very good in saving ratio. Our saving ratio is one of the best across world, but when it comes to investment, most of the people fail and make major mistakes which hit them at later part of life. Investors today are confused and undecided about the investment decisions. Most of the investors invest without knowing the features of the products and also the risk attached to that. Ours is agents driven market, agents recommends clients without knowing their financial goals and future n eeds. They are more interested in closing the sale rather than advising and educating clients. On the other hand, clients are not ready to pay the fees for the advice and have no time to put their efforts to study and compare the products recommended. At the end, most of decisions are taken on the advice given by agent or distributors of product. It is seen that in most cases agents pushes the product, which gives them higher commissions. Where people invest: It is a tradition that almost around 85% people in India invest their surplus funds in so called safe products like Bank Fixed Deposits, Postal Schemes and contractual insurance products. Looking at inflation nos., 85% of investment done in traditional forms is unlikely to beat inflation post tax in the long run. There is lack of investors education and awareness. The quality of advice, which is available in the market, is also poor. We are shifting from miselling to wrong buying as 50% of agents have stopped

canvassing mutual fund business because of low commissions in mutual funds. The data shows that even there is decline in life insurance agents force due to lower commissions in ULIP product. Mutual Fund is best option: Investors always look for good investment opportunity, which gives good returns, but at the time people also want their investment to be safe and secure. Looking at present financial distribution system and quality of advice available in the market, I strongly believe that Mutual Fund Investment can help a lot to investors. Mutual Fund is a mechanism of pooling resources from general public and investing collected funds in debt or equity instruments in accordance with the objectives as disclosed in the offer document. Most of the people think that mutual fund means equity investment. This is not true. Mutual Funds offer both 100% debt to 100% equity and also hybrid products with combination of equity and debt. Mutual Funds also came out with Gold ETFs and Gold Funds, which are much better option compared to physical gold. The past performance of the schemes is also available since inception of the fund. The past performance may not sustain in future but it tells the quality of the funds performance in different cycles of the market, which can help investors before taking any investment decision. Mutual Funds schemes are market related and does not offer any guarantee of returns, which keeps away most of the investors from investing in mutual fund schemes. One has to understand how this schemes works & performs over a period of time and what are risks attached to this. Even debt schemes had given good returns at around 12% p.a. in last one year. Equity schemes always outperform the other asset class in the longer run and beat inflation with a big margin. Advantages of investing in Mutual Fund schemes: 1) Mutual Fund Industry is well regulated and come under purview of SEBI. Mutual Fund Distributor has to compulsory pass the exam for selling the products and is given best training by all the AMCs with whom he is associated. 2) Mutual Fund schemes are easy to compare, as the object of the fund is well defined. One can easily get the details of risk involved in the scheme by reading offer document or KIM (Key Information Memorandum). 3) You get the benefit of diversification when you invest through MF schemes. You get diversification across all sectors and also among different stocks listed in the stock market. Diversification reduces the risk of investment and gives better results in the longer run. 4) You can also diversify across three major asset classes as you can invest in debt, equity and also in gold through mutual fund schemes. 5) You get the advantage of professional management. Experts in the industry called fund managers manage fund and try their best to deliver good returns to investors. 6) The procedure to invest in mutual fund is also very simple and also schemes are highly liquid. 7) The service available today is also one of the best in India and you can excess all your investment details online. 8) You can start with very nominal amount of Rs. 5,000 or SIP with Rs. 500 and get the advantage of long-term equity investment. 9) SIP (systematic investment plan) option available in mutual fund schemes is always better for investing in equity in the long run. You get rupee cost averaging, which lowers the average cost and you get the advantage of power of compounding. 10) Debt products are also attractive if you understand the interest rate cycles. In the falling interest rate scenario the debt fund is likely to give doubledigit return. 11) A hybrid product available in the mutual fund like MIP and Balanced Fund are also good for freshers who do not understand the equity market but can start with lower exposure to equity. 12) Mutual Fund schemes are more transparent. Daily NAV is declared. Portfolio of the schemes is also available every month. There are many agencies that rate the mutual fund schemes depending on risk and reward attached to the schemes. 13) Mutual Fund Schemes are most tax efficient instruments available in India as mutual fund investment in all asset class for a period of more than one year is considered as long term for the tax purpose. Direct Plans: Now direct plans are also available in all categories in mutual fund schemes, which eliminate the distributor and reduce the overall cost of around 0.45% to 0.65% p.a. This will automatically increase your return over a period of time. It is always advisable to invest through mutual fund schemes depending on asset allocation and time horizon. The only thing you must do is select the fund, which is at least three years old and a consistent performer and is in the top quartile in the category. The other thing you must check is that scheme should beat its bench-mark index and performance should not fall below its benchmark index. It is advisable to monitor and review the performance of the scheme at least once in a quarter so that you can take corrective step if fund selected by you starts none performing compared to its bench mark in Read more at: http://www.moneycontrol.com/news/mf-experts/why-should-you-invest-through-mutualfunds_866372.html?utm_source=ref_article