Introduction

The study of consumers helps firms and organizations improve their

marketing strategies by understanding issues such as how

 The psychology of how consumers think, feel, reason, and select

between different alternatives (e.g., brands, products, and retailers)
 The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media)
 The behavior of consumers while shopping or making other marketing
decisions
 Limitations in consumer knowledge or information processing
abilities influence decisions and marketing outcome
 How consumer motivation and decision strategies differ between
products that differ in their level of importance or interest that they
entail for the consumer
 How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

Consumer Research Methods

Market research is often needed to ensure that we produce what customers
really want and not what we think they want.

Research will often help us reduce risks associated with a new product, but it
cannot take the risk away entirely. It is also important to ascertain whether
the research has been complete.

Primary Methods Several tools are available to the market researcher e.g.,
mail questionnaires, phone surveys, observation, and focus groups.

For example you may need to find out whether consumers would prefer that
your soft drinks be sweater or tarter.

Secondary Methods Involves using information that others have already put
together.
For example if you are thinking about starting a business making clothes for
tall people, you don’t need to question people about how tall they are to find
out how many tall people exist—that information has already been published
by the U.S. Government.

Characteristics Of The Indian Consumer Behavior

Indian consumers have a high degree of family orientation. This

orientation in fact, extends to the extended family and friends as well.
Brands with identities that support family values tend to be popular
and accepted easily in the Indian market.

Indian consumers are also associated with values of nurturing, care

and affection. These values are far more dominant that values of
ambition and achievement. Product which communicate feelings and
emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history and

tradition in shaping the Indian consumer behavior is quite unique.
Perhaps, only in India, one sees traditional products along side
modern products. For example, hair oils and tooth powder existing
with shampoos and toothpaste.

Different Segments Of Indian Consumers

 The Socialites

 Socialites belong to the upper class. They prefer to shop

in specialty stores, go to clubs on weekends, and spend a
good amount on luxury goods. They are always looking
for something different. They are the darlings of
exclusive establishments. They go for high value,
 exclusive products. Socialites are also very brand
conscious and would go only for the best known in the
market.
 The Conservatives

 The Conservatives belong to the middle class. The

conservative segment is the reflection of the true Indian
culture. They are traditional in their outlook, cautious in
their approach towards purchases, spend more time with
family than in partying and focus more on savings than
spending. Slow in decision making, they seek a lot of
information before making any purchase. They look for
durability and functionality but at the same time are also
image conscious.
 The Working Women

 The working woman segment is the one, which has seen

a tremendous growth in the late nineties. This segment
has opened the floodgates for the Indian retailers. The
working woman today has grown out of her long-
standing image of being the homemaker. Today, she is
rubbing shoulders with men, proving herself to be
equally good, if not better. Working women have their
own mind in decision to purchase the products that
appeal to them.

Examples:

 Haldiram's : The No1 Choice of Consumers

The caselet, Haldiram's: The No: 1 Choice of Consumers, explains how
Haldiram's, which markets snack products in India, became the primary
choice among Indian consumers. Haldiram's came out with different
products which suited the tastes of various ethnic and geographical groups.
The caselet deals with how the company used the 4Ps effectively to
influence consumer decision making.

Ways in which a company can influence consumer decision making

» Importance of the pricing strategy in the ready-to-eat snack market in India
» The need to offer products which suit the tastes of a heterogeneous group

Haldiram's, Packaging, Point of purchase (POP), Shelf life, Namkeens,

Product promotion, Niche market, Pricing strategy, Gift packs and
Indiatimes.com.

 BMW Brand in North America

Abstract

Though the sale of the BMW branded vehicles in North America have been growing at a steady
pace, many industry-watchers felt that it was not as big a brand in North America as it is in
Europe. With market research data in 2005 suggesting that a very high proportion of people
buying luxury cars in the US did not even consider buying BMW, the company attempted to
reposition the brand to appeal to the 'creative class' rather than relying on its traditional
customer base consisting of 'yuppies'.

Introduction

For the year 2007, BMW of North America LLC (BMW LLC), the North
American arm of a leading German luxury car manufacturer BMW AG,
reported sales of 293,795 BMW branded vehicles. This represented a growth
of 7.1 percent compared to 2006. Even in 2006 the BMW branded vehicles
had posted a growth of 3 percent compared to 2005...
Conclusion
Top class, middle class and lower class are income related
classifications of the population and each of this class has its own
consumption pattern.

For the Indian market, Malaysian exporters/manufacturers should see

the substantial middle class and base the market demand/projections
on this roughly estimated at 250 million people with substantial
disposable income.