Consumer Behavior

Consumer behavior can be broadly classified as the decisions and actions that
influence the purchasing behavior of a consumer. What drives consumers to choose a
particular product with respect to others is a question which is often analyzed and
studied by marketers. Most of the selection process involved in purchasing is based
on emotions and reasoning.

The study of consumer behavior not only helps to understand the past but even predict
the future. The below underlined factors pertaining to the tendencies, attitude and
priorities of people must be given due importance to have a fairly good understanding
of the purchasing patterns of consumers

Common Factors Influencing Consumer Behavior

1. Purchasing Power
Purchasing power of a consumer plays an important role in influencing the consumer
behavior. The consumers generally analyze their purchasing capacity before making a
decision to buy and products or services. The product may be excellent, but if it fails
to meet the buyers purchasing ability, it will have high impact on it its sales.
Segmenting consumers based on their buying capacity would help in determining
eligible consumers to achieve better results.

2. Group Influence

Group influence is also seen to affect the decisions made by a consumer. The primary
influential group consisting of family members, classmates, immediate relatives and
the secondary influential group consisting of neighbors and acquaintances are seen
have greater influence on the purchasing decisions of a consumer.

3. Personal Preferences

At the personal level, consumer behavior is influenced by various shades of likes,

dislikes, priorities, morals and values. In certain dynamic industries such as fashion,
food and personal care, the personal view and opinion of the consumer pertaining to
style and fun can become the dominant influencing factor. Though advertisement can
help in influencing these factors to some extent, the personal consumer likes and
dislikes exert greater influence on the end purchase made by a consumer.

4. Economic Conditions

Consumer spending decisions are known to be greatly influenced by the economic

situation prevailing in the market. This holds true especially for purchases made of
vehicles, houses and other household appliances. A positive economic environment is
known to make consumers more confident and willing to indulge in purchases
irrespective of their personal financial liabilities.

5. Marketing Campaigns

The Marketing campaigns done on regular basis can influence the consumer
purchasing decision to such an extent that they may opt for one brand over another or
indulge in indulgent or frivolous shopping. Marketing campaigns if undertaken at
regular intervals even help to remind consumers to shop for not so exciting products
such as health products or insurance policies.

AM Equipments

AM Equipment’s one of the exclusively leading and reputed manufacturers &

exporter of food processing machinery, They made for Custom design Machine, such
as chapattis making machine, which are trendy in design, all construction are
Stainless Steel-304 & food grade Materials and versatile.

Food processing machinery, chapattis making machines are hygienic and reasonably
priced caters to the need of industrial canteens, mid-day meal, Hotels kitchen and
banquet, cafes, bakeries, hospitals, schools, institutions, pizza-restaurants, etc. The
factory has a built area of 3000sq feet and has wide experience of Big Catering,
Commercial Kitchen, & Industrial Kitchen to different need of industries.

Today, Company is also specialized exporters chapattis making machine, plain carbon
steel, stainless steel of all grades, nimonium, titanium and Argon Arc Welding in
major industries, manages the company professionally with a capable work force and
quality engineers. Due to high quality products and services, they have a distinct place
in this line of business. Their clientele is satisfied with their products and services in
India as well abroad.
 Company’s Products

Amba Rollomatic
Dough Sheeter (Amba Rollomatic)

AMBA ROLLOMATIC dough Sheeter is the most compact, easy operating machine.
This machine is ideally suitable for Supermarkets, Industrial Canteens, Mid-day meal,
Hotels Kitchen and Banquet, Cafes, Bakeries, Hospitals, Schools, Institutions, Pizza-
Restaurants, Donut Shoppe, etc.

It is a perfect Dough Rolling Machine for, Roti, Chapatti, Puri, Bhel Puri, Paratha,
Samosa Patti, Pizza Base, Tortillas, Nachos, Pasta Sheet, Pita bread, Naan, Pie Crusts,
Khakhra, Yeast raised donuts, , Flour tortillas, Sweet dough's, Calzones and many
more products.

Salient Features of Dough Sheeter

1. Compact Design, ideal for use in limited space

2. Heavy duty, all Stainless steel construction
3. Spring loaded scrapers readily removable for easy cleaning
4. Simple handle adjustments for exact uniform dough thickness
5. Ergonomic design for easy operation
6. Large hopper accepts large pieces of dough
7. Convenient side operation
8. Maintenance free drive mechanism
9. Variable speed mechanism to obtain different food products of various
types of dough

Consumer Decision Making Process

Consumer decision making process involves the consumers to identify their needs,
gather information, evaluate alternatives and then make their buying decision. The
consumer behavior may be determined by economic and psychological factors and are
influenced by environmental factors like social and cultural values.
The consumer decision making behavior is a complex procedure and involves
everything starting from problem recognition to post-purchase activities. Every
consumer has different needs in their daily lives and these are those needs which
make than to make different decisions. Decisions can be complex, comparing,
evaluating, selecting as well as purchasing from a variety of products depending upon
the opinion of a consumer over a particular product. This renders understanding and
realizing the basic problem of the consumer decision making process for marketers to
make their products and services different from others in the marketplace.

5 Stages of Consumer Decision Making Process

The buying behavior model is one method used by marketers for identifying and
tracing the decision making process of a customer from the start to the end. The
process is categorized into 5 different stages which are explained as follows:

Consumer buying decisions model - Howard-Sheth Model

The most frequently quoted of all consumer behavior models is the Howard-Sheth
model of buyer behavior, which was developed in 1969.The model is important
because it highlights the importance of inputs to the consumer buying process and
suggests ways in which the consumer orders these inputs before making a final
decision. The Howard-Sheth model is not perfect as it does not explain all buyer
behavior; it is however, a comprehensive theory of buyer behavior that has been
developed as a result of empirical research (Horton, 1984).

This model suggests three levels of decision making:

1. The first level describes the extensive problem solving. At this level the consumer
does not have any basic information or knowledge about the brand and he does not
have any preferences for any product. In this situation, the consumer will seek
information about all the different brands in the market before purchasing.

2. The second level is limited problem solving. This situation exists for consumers
who have little knowledge about the market, or partial knowledge about what they
want to purchase. In order to arrive at a brand preference some comparative brand
information is sought.

3. The third level is a habitual response behavior. In this level the consumer knows
very well about the different brands and he can differentiate between the different
characteristics of each product, and he already decides to purchase a particular
product. According to the Howard-Sheth model there are four major sets of variables;
namely:

a) The Input Variables

The input variables consist of informational cues about the attributes of a product or
brand (i.e. quality, price, distinctiveness, service and availability). This informational
cues may be significative if they influence the consumer directly through the brand's
attributes or symbolic if they derive from the same factors as they are portrayed in the
mass media and by salespeople, influencing the consumer in a indirect way. These
two sources are commercial, in that they represent the efforts of the firm to build and
project these values in the product. A third set of informational cues may come from
the buyer's social environment, including the family, reference groups and social class
- which are influences that are internalized by the consumer before they can affect the
decision process.

Example of AM Equipments

Advertising Stretegy for AM Equipments

 AM equipments is used many tools for advertising their products, which are
given below:
1) Print Media: -
a) Food Magazine
b) Pamphlet
2) Online marketing: -
a) Own Websites (www.amequipments.com)
b) India Mart (https://www.indiamart.com/amequipments/)
c) Trade India
d) Infoline (http://infoline.com/)
e) Justdial (https://t.justdial.com/Gandhinagar-Gujarat/AM-Equipments-
Opposite-Swagat-City-MallNear-Ioc-Petrol-Pump-Adalaj/9999PXX79-
XX79-161213160107-U4G7_BZDET)
f) Youtube (https://www.youtube.com/watch?v=btiH3FHWOD8)
g) Facebook (https://www.facebook.com/amequipments)
 Different Exhibition Programs: -
a) Khadyakhurak Exhibition
b) India International Hospitality Expo

In these exhibition programs, company also given demo or presentation about their
equipments to customers and explain about equipments.

Perceptual and Learning Constructs

The central part of the model deals with the psychological variables involved when
the consumer is contemplating a decision. Some of the variables are perceptual in
nature and are concerned with how the consumer receives and understands the
information from the input stimuli and other parts of the model. For example,
stimulus ambiguity happened when the consumer does not understand the message
from the environment. Perceptual bias occurs if the consumer distorts the information
received so that it fits his or her established needs or experience. Learning constructs
category, consumers’ goals, information about brands, criteria for evaluation
alternatives, preferences and buying intentions are all included. The proposed
interaction in between the different variables in the perceptual and learning constructs
and other sets give the model its distinctive advantage.

Example of AM Equipments

In AM Equipment’s Customers are involved perceptual and learning constructs.

Consumers are analysis of equipments like Price, Quality, Customer service
experiences, Delivery time, response time and equipments Design etc. All these
factors are analysis, need and use os equipments after then taken decision by
consumers.

Outputs
The outputs are the results of the perceptual and learning variables and how the
consumers will respond to these variables (attention, brand comprehension, attitudes,
and intention).

Example of AM Equipments

After analysis all these five variables, consumer also take decision purchase of
equipments in AM Equipments. Consumer also go through in websites, direct mail or
call, visit Indiamart, and use other websites (Infoline and Trade India) etc.

Exogenous (External) variables

Exogenous variables are not directly part of the decision- making process. However,
some relevant exogenous variables include the importance of the purchase, consumer
personality traits, religion, and time pressure. The decision-making process, which
Howard-Sheth model tries to explain, takes place at three Inputs stages: Significance,
Symbolic and Social stimuli. In both significative and symbolic stimuli, the model
emphasizes on material aspects such as price and quality. These stimuli are not
applicable in every society.

Example of AM Equipments

Consumers are also affecting external variables in purchase of equipments from AM

Equipments. Business consumers are also affecting Company financial Position,
Products Manufacturing, Customer demand, Brand image and Production capacity,
employees etc,
The model is an integrative model that incorporates many of the aspects of consumer
behavior; it links together the various constructs/variables which may influence the
decision-making process and explains their relationship that leads to a purchase
decision. It highlights the importance of inputs to the consumer buying process. It was
one of the first models to divulge as to what constitutes loyalty towards a specific
product. It helped gain insights in to the processes as to how consumers process
information. The model is user friendly and is one of the few models which has been
used most commonly and tested in depth. However, the limitation lies in the fact that
the various constructs cannot be realistically tested; some of the constructs are
inadequately defined, and thus do not lend to reliable measurements.

Customers

The company provide complete food processing machine solution for Commercial
and Industrial Kitchen, Cooking and Food processing unit also Food factory,
Industrial Canteen, Catering unit’s, Hostel’s, Restaurant’s, Fast Food restaurant’s,
Food Court’s, Pizza store and all type of Bakery Machinery Manufacturer and
Supplier.

AM Equipments Esteemed Customer’s

 Amul
 Vadilal
 Havmor
 Pizza Hut
 Domino’s
 Marco’s pizza
 Pizza Inn
 Chhatrapati Shivaji International Airport
 Bikaji
 Skygourment
 Shanku’s Waterpark
 Shah Jamnadas C.Ghariwala
 Raghuvanshi
 Suraj’s foods
 Gokuldas Gathiyawala
 The Grand Bhagwati (TGB)
  Torrent Pharma
 Bansiram
 Naivedya
 Navneet
 Faasos
 Kandoi Bhogilal Mulchand, Ahmedabad
 Cream Centre – The Veg Edge
 Other Temples

Literature Reviews
(Jha, 3, July, 2014)

The most frequently quoted of all consumer behavior models is the Howard-Sheth
model of buyer behavior. The model is an integrative model that incorporates many of
the aspects of consumer behavior; it links together the various constructs/variables
which may influence the decision making process and explains their relationship that
leads to a purchase decision. It highlights the importance of inputs to the consumer
buying process. It was one of the first models to divulge as to what constitutes loyalty
towards a specific product. It helped gain insights in to the processes as to how
consumer process information. The model is user friendly and is one of the few
models which has been used most commonly and tested in depth. However, the
limitation lies in the fact that the various constructs cannot be realistically tested;
some of the constructs are inadequately defined, and thus do not lend to reliable
measurements.

(Stankevich, 2017)

In the last years, research investigating consumer behaviour and how their decision-
making process has advanced and has become an important topic in the marketing
society and literature. To advance the research further, this paper presents an
extensive literature review of academic publications in the area of buying decision-
making process in marketing and its status. Furthermore, the paper presents latest
trends and themes that emerge there. Based on 24 journal articles, reports and
marketing books, the core models and theories in this area were evaluated and
discussed. Moreover, a framework of "moments that matter" in consumer decision-
making process and factors that influence them was elaborated for a possibility to
influence consumer behaviour in favor of company’s offers. Furthermore,
recommendations for marketers were suggested for deeper understanding the
consumer behaviour and their buying strategies to empower marketing campaigns and
be a success in the market. The paper also suggests several directions for future
research related to buying behavior.

(Mahalakshmi, 2013)

The consumer is the pivot on which all marketing activities and decisions revolve.
The consumer s the central focus of marketing activities has remained complex and
unpredictable. What motivates induces or informs his choice of one product brand
rather than the other has been a subject of investigations and researches. The
formulation and adoption of major classic and contemporary models in consumer and
organizational behaviour for managerial decision-making in marketing practice is
justified on the need to ensure knowledge of consumers for effective and efficient
service delivery. Consequently, this paper broadly reviews major classic contour
behaviour models in relationship to managerial decision-making in marketing
practice.

(Miss. Anjali Bhalerao, AUGUST,2017)

The success of every business depends entirely upon the satisfaction of its consumers.
In order to get this right, businesses have to know the buying behaviour of their
customers. The knowledge of Consumer Behaviour leads to the understanding of
reasons why consumers differ from one another in buying or using products and
availing services. Consumers receive stimuli from the environment, and responds to
the stimuli in terms of either decision on buying or not buying the product. Thus the
study of Consumer Behaviour is one of the most important in business management
education, because the purpose of a business is to acquire and retain customers. This
study attempts to gather understanding on the concept of Consumer Behaviour while
reviewing the literature available on the study of consumer behaviour across the
Industries. This is a descriptive study attempted through the help of secondary data.
The understanding gathered & presented is indicative in nature & not exhaustive. The
elements of Consumer Behaviour are essentially required to be studied in order to
sustain the competitive business environment.

(K, MAY, 2014)

Consumers are the individuals who buy for personal consumption or to meet the
collective needs of the family and households needs. Consumer behavior means how
individuals make decisions to spend their available resources like time, money, effort
on consumption of different products and services. It includes what they buy, why
they buy it, when they buy it, where they buy it, how often they buy it, and how often
they use it. This paper presents a review of theory of consumer behavior models.
Besides this factors influencing consumer behavior and are discussed in this paper.