Study of consumer behavior related

to different brands

Consumer
A consumer is a person or a group who intends to
order, or uses purchased goods, products,
or services primarily for personal, social, family,
household and similar needs, who is not directly related
to entrepreneurial or business activities. The term most
commonly refers to a person who purchases goods and
services for personal use.
Merit of consumer
There are certain advantages of cooperative stores.
They are:
1. Unlike other retailers, cooperative stores supply
quality goods. Consumers are thus saved from
adulteration and other malpractices.
2. As consumers are the owners and managers of such
stores, genuine requirements of the majority of
consumers can be met. In other words, goods required
by a majority of the customers are always dealt by such
stores.
3. Cooperative societies are an important form of
democratic business enterprise because of its diffused
ownership. As a result, no single group can secure
control over the organisation.
4. Such stores are able to sell goods at a comparatively
cheaper price than other retailers. This is possible due
to two reasons. Firstly, these stores purchase
commodities from the manufacturers or the wholesalers
directly. Thus, they avail trade discounts and at the
same time they are able to eliminate middlemen and
their profits.
Secondly, these stores are never established for profit-
making, rather the primary objective is to render service
to society, that is, to make goods available to the
consumers. As a result, members get commodities at a
reasonable price.
5. It makes members feel a sense of belongingness to
the society.
6. It develops managerial ability amongst members.

Disadvantages:
1. It caters to the needs of small and medium-income
groups.
2. There is too much dependence on the honesty,
integrity and loyalty of members and workers.
3. There is lack of proper sales promotion drives by the
sales force of these stores.
4. Management of such stores usually rests in the hands
of amateurs. Professional managers cannot be hired
due to lack of funds.
Cooperative stores have not been much successful in
India. This is due to the negligence of their basic
principles. Some of the inherent difficulties they face are
credit sales, high operating cost, dishonesty of
managing members, etc.
Some other reasons for its failure are lack of business
experience, lack of interest, enmity among members,
lack of efficient management, granting of more credit
leading to the organisation.

Right to safety
Means right to be protected against the marketing of goods
and services, which are hazardous to life and property. The
purchased goods and services availed of should not only meet
their immediate needs, but also fulfil long term interests.
Before purchasing, consumers should insist on the quality of
the products as well as on the guarantee of the products and
services. They should preferably purchase quality marked
products.

Right to information
Means right to be informed about the quality, quantity,
potency, purity, standard and price of goods so as to protect
the consumer against unfair trade practices.
Consumer should insist on getting all the information about
the product or service before making a choice or a decision.
This will enable him to act wisely and responsibly and also
enable him to desist from falling prey to high presre selling
techniques.

Right to Choose
Means right to be assured, wherever possible of access to
variety of goods and services at competitive price. In case of
monopolies, it means right to be assured of satisfactory
quality and service at a fair price. It also includes right to
basic goods and services. This is because unrestricted right of
the minority to choose can mean a denial for the majority of
its fair share. This right can be better exercised in a
competitive market where a variety of goods are available at
competitive prices

Right to be Heard
Means that consumer's interests will receive due consideration
at appropriate forums. It also includes right to be represented
in various forums formed to consider the consumer's welfare.
The Consumers should form non-political and non-
commercial consumer organizations which can be given
representation in various committees formed by the
Government and other bodies in matters relating to
consumers.

Right to Seek redressal

Means right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers. It also includes right
to fair settlement of the genuine grievances of the consumer.
Consumers must make complaint for their genuine grievances.
Many a times their complaint may be of small value but its
impact on the society as a whole may be very large. They can
also take the help of consumer organisations in seeking
redressal of their grievances.

Right to Consumer Education

Means the right to acquire the knowledge and skill to be an
informed consumer throughout life.Ignorance of consumers,
particularly of rural consumers, is mainly responsible for their
exploitation. They should know their rights and must exercise
them. Only then real consumer protection can be achieved
with success.
Consumers’ Responsibilities
In order to protect the interests of consumers,
government and non-government organisations
have made various efforts. But, these efforts can be
helpful and can stop exploitation only when the
consumers themselves will understand their
responsibilities and move forward to safeguard their
interests. Some of the responsibilities of consumers
are as follows:
1. A consumer must exercise his/her right
The Consumer Protection Act grants various rights
to the consumer, such as right to seek redressal,
right to safety, right to be heard, right to choose,
etc. But these rights can prove to be useful only
when the consumer exercises these rights. In other
words, a consumer must choose the product
according to his/her taste and preferences, must file
a complaint if the quality of the product is not
satisfactory, and must be aware of his/her rights
and exercise them when required.
2. A consumer must be cautious

It is the responsibility of the consumer not to blindly

trust the words of the seller. He/she must first attain
full information on the quantity, price, quality,
standard, etc., of the product or service. By being
cautious, the consumer can most of the time avoid
exploitation or unfair practices.
3. A consumer must be quality-conscious
If the consumers stop compromising on the quality
of products, then only the problems of adulterated
products, duplicate products, and substandard
products can be resolved. Therefore, while
purchasing goods or services, a consumer must look
for quality marks, like ISI marks, Agmark, etc.
Different marks indicating quality in different
products are:
This mark is for consumer
durable goods, electronic
items, kitchen appliances,
ISI etc.

This mark is for

agricultural commodities
AGMARK and live stock products.
 BIS Mark This mark is for gold
(Hallmark) jewellery.

This mark signifies 100%

Woolmark pure wool.

This mark is for

environmental friendly
ECO MARK products.

This mark is for food

FPO Mark products.
4. A consumer should file complaints for the
redressal of genuine grievances
Usually, when a consumer receives a defective good
or service, he/she tends to ignore the loss suffered.
However, this attitude of the consumers of not filing
a complaint encourages the businessmen to
practise unfair trade practices to supply bad quality
or defective goods and services. It is the
responsibility of the consumer to file a complaint
even when the loss is small. The awareness towards
filing a complaint for any unfair practice will then
make the seller conscious to supply good quality,
non-defective goods and services. However, the
consumers must complain with a genuine grievance
and should not exaggerate the defect or loss of
goods.
5. A consumer must insist on a cash memo
Consumers usually do not ask for a cash memo after
making a purchase of goods and services, and the
cash memo is compulsory as evidence of purchase
while filing a complaint. A seller is bound to give a
cash memo to the buyer even if he/she does not ask
for it. However, a consumer must ask the seller for a
cash memo to file a complaint and get
compensation.
6. A consumer should not get carried away by
advertisements
Advertisements of products or services tend to
exaggerate their features and quality. While making
a purchase for goods and services, a consumer must
compare the actual use of that good with the use
told or shown in the advertisement. And if there is
any change in the actual use and described use or
discrepancy, then the consumer must bring this to
the notice of the sponsor of the advertisement, so
they can stop the exaggerated qualities.
7. A consumer should use the products safely
Before using a product or service, a consumer has
the responsibility to first read its user manual, learn
about the risks associated with them, and use the
goods safely.
8. A consumer must be honest
While making a deal with the seller, a consumer
should be honest and not engage in any illegal
trade, and should also discourage black marketing,
hoarding, etc.
9. Save Environment
A consumer is also responsible for keeping the
environment safe. He/she can do so by avoiding
contributing to pollution, waste, and littering.
10. Form Consumer Organisation
Consumers should also form consumer
organisations or societies to play an active role in
the education and protection of their interests.

Consumer Protection Act, 1986

The Consumer Protection Act, 1986
1. Short title, extent, commencement and application.—
(1) This Act may be called the Consumer Protection Act,
1986.
(2) It extends to the whole of India except the State of Jammu
and Kashmir.
(3) It shall come into force on such date1 as the Central
Government may, by notification, appoint and different dates
may be appointed for different States and for different
provisions of this Act.
(4) Save as otherwise expressly provided by the Central
Government by notification, this Act shall apply to all goods
and services.
2 Definitions. —
(1) In this Act, unless the context otherwise requires,
1
[(a) “appropriate laboratory” means a laboratory or
organisation—
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such
guidelines as may be prescribed by the Central Government in
this behalf; or
(iii) any such laboratory or organisation established by or
under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a
State Government for carrying out analysis or test of any
goods with a view to determining whether such goods suffer
from any defect;]

Consumer behaviour

is the study of consumers and the processes they use to

choose, use (consume), and dispose of products and
services, including consumers’ emotional, mental, and
behavioural responses.

Consumer behaviour incorporates ideas from

several sciences including psychology, biology,
chemistry, and economics.

In this guide, we’ll take a look at the different

aspects and facets of consumer behaviour, and
we’ll discuss the most effective types
of customer segmentation.

Why is consumer behaviour

important?
Studying consumer behaviour is important
because it helps marketers understand what
influences consumers’ buying decisions.

By understanding how consumers decide on a

product, they can fill in the gap in the market and
identify the products that are needed and the
products that are obsolete.

Studying consumer behaviour also helps

marketers decide how to present their products
in a way that generates a maximum impact on
consumers. Understanding consumer buying
behaviour is the key secret to reaching and
engaging your clients, and converting them to
purchase from you.

A consumer behaviour analysis should reveal:

 What consumers think and how they feel

about various alternatives (brands, products,
etc.);
 What influences consumers to choose

between various options;

 Consumers’ behaviour while researching and

shopping;
 How consumers’ environment (friends,

family, media, etc.) influences their

behaviour.
Consumer behaviour is often influenced by
different factors. Marketers should study
consumer purchase patterns and figure out buyer
trends.

In most cases, brands influence consumer

behaviour only with the things they can control;
think about how IKEA seems to compel you to
spend more than what you intended to every
time you walk into the store.

So what are the factors that influence consumers

to say yes? There are three categories of factors
that influence consumer behaviour:

1.Personal factors: an individual’s interests and

opinions can be influenced by demographics
(age, gender, culture, etc.).
2.Psychological factors: an individual’s
response to a marketing message will
depend on their perceptions and attitudes.
3.Social factors: family, friends, education
level, social media, income, all influence
consumers’ behaviour.

Types of consumer behaviour

There are four main types of consumer
behaviour:

1. Complex buying behaviour

This type of behaviour is encountered when
consumers are buying an expensive, infrequently
bought product. They are highly involved in the
purchase process and consumers’ research
before committing to a high-value investment.
Imagine buying a house or a car; these are an
example of a complex buying behaviour.

2. Dissonance-reducing buying behaviour

The consumer is highly involved in the purchase
process but has difficulties determining the
differences between brands. ‘Dissonance’ can
occur when the consumer worries that they will
regret their choice.

Imagine you are buying a lawnmower. You will

choose one based on price and convenience, but
after the purchase, you will seek confirmation
that you’ve made the right choice.

3. Habitual buying behaviour

Habitual purchases are characterized by the fact
that the consumer has very little involvement in
the product or brand category. Imagine grocery
shopping: you go to the store and buy your
preferred type of bread. You are exhibiting a
habitual pattern, not strong brand loyalty.

4. Variety seeking behaviour

In this situation, a consumer purchases a
different product not because they weren’t
satisfied with the previous one, but because they
seek variety. Like when you are trying out new
shower gel scents.

Knowing what types of customers your e-store

attracts will give you a better idea about how to
segment customer types.

Brand – definition and meaning

A brand is the image and personality of a product or service
that a business provides. A product’s features, such as logos or
slogans, make it unique and different.
Branding was originally used hundreds of years ago to
differentiate cattle. Cattle ranchers used branding irons to burn
symbols on their livestock. They branded them so that
slaughter houses could identify from which ranch the cattle
came.
Farmers also branded their livestock so that it would be easier
to find them if they were stolen.
However, brands are now more than just a means of
differentiating products. Today, brands also convey a
‘promise.’ The promise is that the product you buy will meet
the standards the manufacturer seeks to deliver.
Brands are intangible reputational assets. In fact, they are the
most valuable asset of many corporations. Intangibles are
assets you cannot touch, they have no physical form, but are
valuable for the company.

Type of brand
.1 Personal Brand
Personal brands are those individual brands people build
around them. However, most experts don’t believe these
should be called brands at all, as more often than not, they’re
not related to a specific business model. Nevertheless, a
personal brand is how we market ourselves via media, social
networks and other means so as to improve our image and
possibly gain more career opportunities.

2. Product Brand
In order to sell goods and commodities, businesses have to
work on their product brands. These are brands that consist of
emotions and ideas that can be associated with a product.
Thus, the associations exceed the functional capability of the
product and rely more on the public impression of it. FMCG, or
fast-moving consumer goods brands, are an example of
product brands.

3. Service Brand
Service brands are quite similar to the previously mentioned
product brands. The main difference is that they focus on
service rather than products themselves, which means they are
harder to develop. Services are less tangible than products, so
most of the time, these brands have to associate positive
emotions with themselves in order to succeed.

4. Corporate Brand
We also call these brands organisational brands, as they are
closely related to the organisations that stand behind them.
Fundamentally, these brands define those organisations and
reassure the consumers in the quality and the service of the
companies.
5. Investor Brand
If an investor brand is powerful, it will deliver share price
resilience and show a knowledgeable understanding of value.
These brands are most often publicly listed brands, which are
seen not only as investments but also as performance stocks.
Thus, in order for these brands to succeed, investors have to
blend their strategic and financial knowledge, as well as work
on their purpose and value proposition. Moreover, they should
achieve a wider reputation through CSR.

6. Non-Profit Brands or NGO Brand

Although NGO brands are usually frowned upon in the non-
profit community, these brands are still important because
many are now competing to get a bigger cut of the philanthropic
pound. Thus, these brands are not just looking into fundraising
to gear their social mission forwards. They are also paying
attention to value models.

7. Public Brand
We also refer to these brands as government brands. Basically,
these are brands related to the way the government is acting
towards citizens and entities. Even though we cannot associate
consumer choice with these brands, they do still exists and are
vital for boosting people’s trust in the way government does its
business. However, most are on the fence when it comes to
their existence. Such brands are Google and Facebook, which
we can also call embedded brands.

8. Activist Brand
These brands come with a purpose that’s always related to
some social cause. However, they promote their purpose so
well that, more often than not, their consumers opt for them
because they’ve distinguished themselves in their minds.

9. Place Brand
In order to attract tourists, residents, investors and even
businesses, destinations and cities can build a brand around
themselves. They build it so as to associate the locations with
positive ideas rather than facilities. That way, they can show
people just how many choices they’ll have if they relocate to a
particular city or decide to visit it.

10. Nation Brand

In contrast to place brands, nation brands are related to the
reputations and perceptions of a country. The pioneer of these
sorts of brands is Simon Anholt.

Features of Branding
Targetability

Branding should be planned according to the targeted

audience. No business firm can target the entire
population. Business owners should identify the type of
people who are buying their products and services.
Research should be done on the basis of age, gender,
income, the lifestyle of their customers, etc.

Awareness

The percentage of people who are aware of a brand is

known as brand awareness. Well established companies
have the benefit of a high level of brand awareness.
Brand awareness can be increased with the help of
advertisement on TV, radio, newspaper or social media
marketing and advertising. Logos also help companies
build brand awareness, as people often recognize brands
by these symbols or diagrams.

Loyalty

Brand loyalty is the highest achievement or apex of any

company. A customer who buys the product of a
particular company extensively is known as a brand
loyalist. Many consumers prefer using certain brands of
clothing, deodorants or tubes of toothpaste, for example.
They like how these brands benefit them. Brand loyalty
can be build by staying in touch with the customers,
asking them for their reviews.

Consistency

Consistency is necessary for a brand. A brand must

remain consistent. Small businesses make numerous
promises in commercials and ads about their brands, and
consumers expect companies to continue living up to
these promises. Their products should also be effective

Importance Of
Branding
Brand is the sum total of how someone
perceives a particular organisation.
Branding is shaping that perception. –
Ashley Freidlin, CEO & Founder of Guild
One should not ignore the importance of
branding. It has become a necessity for products,
organisations, and even humans today. There’s
no dearth of offerings with similar properties and
the only thing that separates the particular
offering from the competition in such a case is
the brand.

Branding the offering should be a priority before

the launch of the product in the market as it
helps to:

 Create an identity for the

offering: Branding is what the product is
known for besides the generic properties.
It is the unique name, colour, design, and
even the psychological experience that
makes the product identifiable in the
market.
 Create consumer preference towards
the offering: The market is full of
offerings with the same properties which
often confuse the consumer to what he
should buy. A way through which
consumers can confront this problem is
through leaning towards such brands
which they know and trust. Popular
brands are known to be safer
 investments as compared to the risky
ones and they provide consumer
satisfaction for the utility it provides
them.
 Create a new asset and build
value: A brand in itself is an asset that
can be sold separately. Wonder why
Apple products cost twice as much as the
competition which sells the product with
the same configuration? It’s the brand
effect.
 Build trust: Branding an offering results
in the professional appearance of the
offering. It includes well-strategised
labels and packaging according to the
legal requirements and the
planned positioning. This increases its
appeal as consumers trust offerings with
a professional outlook.
 Improves pride and
satisfaction: Branding the company or
the offering improves the pride and
satisfaction of both the customers as well
as the employees. It personifies the
company and its offerings and helps
everyone who associates with it to create
a deeper connection with the brand.
 Develop marketing
strategies: Marketing strategies without
a brand will be nothing but futile as there
will be nothing to identify the offering
with. Branding is a core part of marketing
 as all of the marketing strategies have
their roots in branding.

Elements Of Branding
Branding isn’t limited to just name and logo. It is
a combination of characteristics and properties
which have an effect on almost all of our senses
to result in a uniform experience every time we
have contact with it.

Branding is made up of innumerable elements

few of which are –

 Name: The name which we use to

identify the product with.
 Logo: A symbol or other design adopted
by the business to identify its brand.
 Colour: A colour mostly used by the
business in its marketing messages to
describe or complement the brand.
 Vision: The group of goals or objective
behind the brand that help guide its
activities and its future.
 Message: the value proposition of the
brand which it conveys through the brand
personality to set the brand positioning.
 Shape: Either the distinct shape of the
offering or the shape of the packaging.
 Aroma: The distinct smell which the user
experiences before, during, or after he
uses the offering.
  Graphics: The uniform and distinct
aesthetics used in the marketing
messages.
 Sound: The sound used in the marketing
messages to Michael Jordan is a perfect
example of personal branding who,
because of his niche followership, was
not only able to benefit himself by
launching his own apparel line but also
benefited Nike which partnered with him
to launch the same.

Corporate Branding
Branding the organisation is as important as
branding the offering it’s selling. Corporate
branding gives an identity to the offering
provider and opens new opportunities for him to
extend his offerings portfolio easily.

Corporate branding is also of vital importance

when it comes to hiring as employees always
desire to work with a company with a known
brand.

PepsiCo is a good example of corporate branding.

The company has several products lines in
its product mix including Frito-Lay, Pepsi, Diet
Pepsi, Mountain Dew, Lay’s, Gatorade, Tropicana,
etc. all of which are owned and operated by the
parent brand- PepsiCo.

Geographical Branding
Geographical or regional branding is often used
by the tourism industry who create a brand out of
a geographical location by assigning it certain
characteristics and experience to attract more
visitors.

For example, Hawaii is being marketed as the

perfect destination to visit if you want to go to
beautiful islands lined with beaches of warm,
white sand and verdant, lush flora. The state is
also marketed as the only place to experience
Hawaiian cuisine, Hawaiian art, and the Native
Hawaiian religion.

Examples Of Branding
We agree that brands are everywhere. People
are brands as well.

But what makes a great brand? What separates a

good brand from a bad one?

Well, here are three examples to help understand

the concept of branding even more.

Coca-Cola
With an estimated brand value of $73.1 billion,
Coca-Cola is the no. 3 most valuable brand in the
world. The company used branding so well that
the word Coca-Cola is the second most
understood word in the world, after the word OK.
The company started with the product branding
by naming its soda Coca-Cola, giving it a unique
taste, colour, bottle shape, and eventually
turning the product into an experience and
product branding into corporate branding.

McDonald’s
McDonald’s stands out not only with its logo but
also with other characteristics like the mascot
Ronald McDonald, the sonic branding, the same
design of stores all over the world, and the
uniformity of service provided in those stores.

Apple
If prefix ‘i’ to any generic category, chances are
that people will consider it to be an Apple
product. Such is an amazing branding strategy of
Apple. The company has positioned itself as a
premium brand which comes with high
standards and has a minimalistic marketing
approach.