Square Essay Example | Topics and Well Written Essays - 1000 words

Square - Essay Example When Apple becomes the first to adopt this platform, it means Square will lose a lot of clients most so the technology oriented who are the majority in the current market place where convenience is the key determinant (Glover, Stephen and Douglas). The second need for Square Inc to adopt an e business platform is to enable it to extend into the non-US markets and this has to happen at the fastest rates. If this does not happen then the competitors like pay pal would snap the idea and use it to the disadvantage of Square. Square has therefore to be able to adopt the e business platform to catch up with the competition by being able to provide its customers with a variety of products, at affordable costs and with the convenience desired by most of the firms (Glover, Stephen and Douglas). Square will be able to integrate such operations through EMV in some countries and NFC in other countries. This would ensure that their operations are widened for diverse solutions in the vast financia l markets. Businesses face a lot of problems most so those that are involved on the online payment systems such problems range from the problems of uncertainty, the ever expanding global market, and the need for innovation. The largest problem is that which emanates from regulatory requirements. Uncertainty affects many business managers in the manner in which it would affects the operations of such businesses in the credit markets, global economy and how regulations would affect the operations of such businesses. Globalization affects the operations of Square due to the unpredictability of how different cultures would perceive their new products hence their penetration of the new markets (Glover, Stephen and Douglas). Before designing new products on the e business platform, such considerations costs the companies a lot of time in the manner they would conduct the same to get more customers while maintaining the ones they already have. This is because innovation and inventions are paramount most so in the volatile technology market. Square Inc faces a turbulent environment due to the existence of the competitors; this does not make the product design environment sleep because this would cost them from their competitors (Laudon, Kenneth and Carol). The business therefore tries to get the problem of innovation solved while still ensuring the control of the organization is in place. Without ensured control the hands of the law through enacted stiff regulations may also impact on the organization negatively. Regulations on energy, environment and financial policies are the most sensitive and require careful handling. As Square designs their new e business products they must ensure they operate under the regulations to avoid charges which are costly to businesses (Laudon, Kenneth and Carol). According to Harvard business review on business and the environment, the idea of business through the internet has changed how the customers interact with their providers and this has lead to the growth of e business. For companies like Square, e business is important because of several reasons. One is that e business leads to increase in the speed over which transactions are done. For example the time over which clients would do ordering is reduced since it can be done much quickly over such platforms since the internet covers a wide area network. For Square inc, e business would therefore mean better procurement and the

An organisations process

An organisations process Introduction Strategic planning is an organisations process of defining its corporate strategy, making decisions on allocating its resources to pursue its strategy, including its capital and human resources. In this modern and competitive era growing business, means taking timely, quick and accurate decisions about the way we want to grow our business. As an organisation grows, it becomes more and more complex for management to control. In this case, strategic planning is the key component for all type of organisations, which help them to keep on track. All organisations depend on strategic plan to keep the long-term focus synced up with day-to-day decision-making. From Board level to front line staff, everyone is aligned with the organisations strategy and vision. Because it is a road map to lead organisation from where it is now to where it would like to be in future. It is very important for management that they make sure, that all those who involved in any activity are clear about what that o rganisation is looking to achieve and how they are planning to do it. The main source of information is included from official websites and reports published by companies. Moreover, references from different books, published journals articles, research reports and internet have been used to support the arguments. Critical Analysis of Strategic Planning of Primark Company profile Primark is an Irish clothing retailer. It opened its first store in Dublin in 1969 under the name of Penneys. The company head office is based In Dublin, and operates 193 stores in Ireland, UK and other European countries. Primark is a subsidiary of Associated British Foods Plc (ABF) and positions itself as marketing (selling) fashionable clothing at cheap prices, targeting women, men, children and supply home decoration goods. Primark aim is to focus on latest fashions and sell to its customers with the variety of design at affordable prices. Primark mission statement is to provide customers with high quality, fashion basis at value for money prices (Primark 2009). Critical Analysis of Primark According to clothing market review 2008, the United Kingdom retail clothing market was worth  £42.45 billions in 2007. It account for almost 6% of total consumer spending which is lowest proportion in the history of UK. The reasons for decline in market were the declining prices and intense competition in the industry. Survey also shows that the cheap clothing market consumers will increase in the future and there is no sign of growth in market value over the next five years (Market Report 2008). Primark face intense competition due to number of competitors (Appendix 1). According to Bowmans Strategic Clock (1996), Primark is position itself in competitive environment at low price in his strategic clock (Appendix 2). This strategy helps Primark to analysis it competitive position in other competitors. Primark is fashion conscious targeting under 35s with the slogan Look good pay less at Primark. It offers good quality fashion clothes at very competitive prices. According to Porter Generic Strategies (1980) Primark is following cost leadership Strategy in retail clothing market. The success of this strategy is based on access to cheap resources and buying in bulk. Michael Porters Five Forces (1979) Model of competitive position helps Primark to analyse its competitive position in the industry. Cost leadership strategy helps Primark to create barrier for new entrant to sell same products at lower price. Primark imports from Asian countries where cost of production is very low and buying in bulks help Primark to improve its Bargaining power. On the other hands, bargaining power of the customers is not very strong because no other retailer is selling trendy and fashionable products at such a low price. So all this help and provide a platform to Primark for expansion both gaining market share and entering into new markets. PEST analysis can be used to examine the factors affecting on Primarks external Environment. All four factors have a considerable impact on Primarks environment. Political factors such as labour law, environmental, trade restrictions, tariffs, tax policy restrict Primark to operate within the limits. Economic factors such as interest rate, inflation rate, exchange rate, economic growth and disposal income affect Primark business operation and day-to-day decision-making. Social and cultural factors help Primark to take into account trends, fashion, growth rate in population, age, gender etc. Finally, technological factors helped Primark to reduce cost, improve quality and lead to innovation. In UK, clothing market is very competitive and credit crunch made it worse. Primark is the only clothing retailer who gets benefit from credit crunch. According to Igor Ansoff (1957), Primark is penetrating the clothing market to targeting competitors customers and retaining existing customers. Sean Poulter (2008) report says, Primark sales rose over 25% in 2008 and gave Primark overall 10% market share of UK clothing industry. It made second biggest seller after MS (12% Market Share). Primark has a very clear market positioning at the cheap end of the market. For Primark internal environmental analysis, SWOT analysis is used to assess Primarks internal capabilities, core competences while threats and opportunities assess external environmental factors. Primark SWOT analysis is shown in appendix 3. Critical Analysis of Strategic Planning of Woolworths Group Plc Company Profile F.W. Woolworths Company founded Woolworths in UK in 1909. In 1982 it was acquired by Paternoster Stores ltd, the subsidiary of Kingfisher Plc. Woolworths Group Plc was formed by the demerger of Kingfisher and began trading as listed company in August 2001. It inherited a mountain of  £200 million debts, and costly lease agreements. Right from the beginning, it sold a variety of goods such as childrens clothes, toys, stationery, electronic goods and confectionery. Pic n mix sweets and Woolworths have always gone together until went into administration. In first four years company really took off but after 2005 it faced constant decline in business and finally it went into administration on 27 January 2009 (Times Online 2008). This company was one of the biggest victims of recession. Mission and Vision Woolworths mission was to be at the heart of the community and the best loved retailer for kids, home and family leisure. Vision was to provide quality products and services to customer all the time through price strategies Elrico (2002). Critical Analysis of Woolworths Group Plc My aim is to analyse strategic planning process of Woolworths to analyse past seven years performance by using various strategic tools. Woolworths performance has been variable over the past few years and in 2005 private equity group Apax made a takeover bid, which was rejected by the board, and four weeks later they received another offer and it made Woolies future uncertain in retail sector. Strategic planning is usually begins with external environmental analysis of the organisation. Competitors are the primary external consideration for strategic planning. For Woolworths Porter Five Forces (1979) can be used to analyse external environment. Woolworths failed to respond the threats of it competitors. They never made any strategy to build barrier for competitors such as ASDA, Tesco, Argos, Discount Stores etc. Its management always depend upon advertisement and customers loyalty. Perfect competition brought more choices for customers and due to intense competition (Rivalry) in the industry, profit squeezed and market demand saturated. Woolworths customers switched to its competitors. Woolworths faced huge problems with suppliers in last couple of year of trading and they forced to pay cash at the time of purchases because of lack of security. According to Michael porters (1980) Generic Strategies to obtain competitive advantages, organisation must have one of the following strategies: Cost Leadership strategy Differentiation strategy Focus strategy Woolworth get stuck in the middle without having any competitive strategy as a result competitors (ASDA, Argos etc) took advantages of that and stole all customers form it. They never released the importance of competitive strategy and had growth strategy to compete with competitors by opening new stores in different parts of the country. According to Igor Ansoff (1957), Woolworths had Market development strategy to target new customers. Woolworths internal environmental analysis, SWOT analysis is the best tool, which can be use measure internal and external factors that affected on its strategic planning. Internal analysis examines Woolworths capabilities and external analysis examines factors that bring opportunities and threats (Appendix 4). Comparison of Strategic Planning of both organisations In the highly competitive environment in which all UK retailers are in war to sustain their position against competitors in this recession, Primark is doing remarkably well. The key of success in based on its well-planned strategies that evaluate internal and external factors that affect on it environment. On the other hands, Woolworths group Plc failed because, they were never thought about any strategy that gave them competitive advantages over any of its competitor. People and media said that Woolworths was the victim of recession but I would say it was the victim of bad management. My aim is to compare and contrast the strategic planning of both organisations. For this purpose, I have discussed few strategic planning models in critical analysis and now I am going to compare them and find out the reasons of success and failure. Pricing (Competitive) Strategy According to Michael Porter (1980) to get competitive advantages organisation must follow one of its generic strategies. Primark slogan is look good pay less, means cost leadership strategy. Cost leadership strategy does not mean low prices but it lead to emphasize on efficiency by reducing cost in all departments. This strategy gave competitive edge to Primark over it competitors. According to Jonathan Prynn (2009), Primark has boomed in the recession with the British biggest discount clothes chain unveiled big increase in revenue and profits. Primark revenues increased from  £1.17bn in 2007 to  £1.6bn in 2008 and it jumped to  £2.31bn in 2009. On the other hand, Woolworths was trading without having any competitive strategy, which help its management to focus on the ways in which it can achieve the competitive position in the retail industry. Its revenue declined since 2004 and in final year of trading, Woolworths announced pre-tax loss of  £99.7m for the first six months. This is just because of Woolworths was stuck in the middle of competitive strategies for long time and management was not sure what price they charge to customers for particular products. Woolworths products were comparatively expensive than its competitors and customers realised their products are not good quality compare to the prices Woolworths charged. Affects of competition Competitors are the real enemies for all organisations. Successful organisation always makes plans ahead to avoid the consequence of any threat from its competitors. Both organisations operate in highly competitive environment. Competitor analysis is very important for both organisations strategic planning. Sometimes organisations think that they are doing well and it is best to carry on with their plans and other become obsessed with monitoring every action of competitors. Woolworths Group Plc was well aware about competition. In Woolworths financial reports 2008, directors mentioned competition is a big risk for Woolworths but they did not come up with any strategy (carry on their own plans) that help Woolworths to maintain and improve it competitive position in the market. They lost most of there business to competitors. In clothing retail industry, Primark is also facing intense competition. Most of Primarks competitors hold same percentage of market share as Primark have. Nowada ys fashion has become disposable and to avoid competition Primark has led fast fashion revolution at lowest prices taking the fast fashion retail industry into new era. I would say Primark has emerged as the McDonalds of the fast fashion retail industry. Customers Analysis Customers analysis is an operative tool, which helps organisations to understand the specific customers demand, preferences and loyalty to the organisation. To keep competitive in todays environment, organisations need to take an in depth look at customers to explore and identify opportunities and threats. I would say Primark is the market leader to understand customers demand and response quickly to the fast fashion requirements of customers. Primarks time-to-market has been very fast, both in terms of copying designs rapidly after they come out in terms of getting the new stock into their stores while items are still hot' (R. M Grant, Blackwell 2009). New style, quality and low prices keep customers coming in and encourage them to come back again. All these help Primark to increase its market share and revenue. On the other side of the picture, Woolworths failed to focus on what they were good at, to sell to there customers and failed to identify their core products and customers. From customers point of view, Woolworths was a complete mish mash with hundreds different types of products, but low product ranges. As a result, Woolworths did not have enough selection of any product to attract customers (John McMillan 2008). All these factors forced customers to switch to Woolworths competitors. Marketing issues Organisations used marketing tools to create, keep and satisfy customers needs and demands. To get competitive advantages in the target market organisations use segmentation, targeting and positioning tools. These tools help organisations to differentiate there goods and services from their competitors. Market Segmentation and targeting Market segmentation help organisation to split customers or potential customers into different groups. Primark segments it customers on socio-economic (disposable income) and demographic (age, gender, lifestyle) bases. Robert Stockdill (2007) says in his report, Primarks target customer is young, fashion conscious and under 35 years old. So like many other retailers chasing that demographic or the broader value end of the market, Primark is now targeting a four to six week turnaround from design to shelf, sourcing primarily from Asia. Primark also target low-income group who have less disposable income to spend on latest fashion. Woolworths was also segmented its customers on demographic bases but there aim was to target all customer in the market. They never identified their target customer, market and which income group they were targeting. Market Positioning In market positioning, my aim is to create an image in the target market for both organisations, their products, and brands. Primark is known as cost leadership retailer in the market, which has over fifteen own brands (Appendix 5). Customers think that Primarks products are good value for money. Woolworths also had very rich and successful long history with the number of brands such as Chad Valley, Ladybird, Winfield and Worthit etc. Form customers point of view both organisations market-positioning image can be mapped in the following Bowmans Strategic Clock (1996); Business Seasonality Most organisations are affected by the fluctuation in business activity at different part of the year. According to directors 2008 report, Woolworths was highly seasonal business. Most of its revenue, profit, and cash flow have been come from Christmas season. Lower than expected performance in the Christmas period may have adverse impact on overall Woolworths results. It happened continuously after 2004 with Woolworths and it performance was very unstable un-till it went into administration. Woolworths never made any strategy to avoid adverse affects of Christmas sales. Primark business is all four seasons. Although most of its sales come from Christmas season but other three seasons of the year its make good profit. According to (James Hall 2009) report, Primark total revenue reaches it highest level of  £1 billion in first six months of trading, which is 18 % more than last year. Primark is the only largest fashion retailers around the world, who produce solid performance in cre dit crisis due to strong strategic planning. Conclusion Strategic planning is directional map, key instrument for strategic management for deciding where their company is headed and how they are planning to get there. Strategic planning is known as a process of defining strategy and making decisions on allocation of organisation resources to pursue strategy. It is a dynamic tool of continuously looking at organisational current position, examine and plotting future move. All this need in-depth knowledge and understanding about organisation and its internal and external environment in that operates in. the best organisations like Primark always engaged in some form of strategic planning to keep themselves update about internal and external environmental factors. Based on my detailed strategic planning analysis of Primark, i would say that Primark has comprehensive strategy planning, which considers all-important factors that affects on its business environment. From my above research, I conclude that, there are number of reasons behind Primark success. Firstly, they understand customers specific requirements and always come up with the solution of latest fashion at low price. Secondly, Primark has a very clear market position at the cheap end of the market and target customers who have low disposal income and fashion conscious. All this gave Primark competitive advantage over its competitors. Third, Primark has access to cheap resources and has very tight control over costs, which help them to increase profitability. Many people say Woolworths was the victim of credit crises. Other says Woolworths faced financial pressures (received over  £200 million debts in inherent and seasonal business crises) and severe competition from day one, so that is why it failed to survive. From my above discussion and analysis, I conclude that Woolworths was the victim of bad management and poor strategy planning. From my above discussion, I have mentioned several reasons of Woolworths failure. Woolworths completely failed to respond the threats of competitors, new technologies, customers buying patterns and target market. The world change very fast in 21st century and strategy worked in 1990s does not work today. Woolworths was keeping the old fashion strategy and planning to run business successfully in 21st century, where yesterdays strategy could be out date today. World has become global village and customers have many choices to buy products from any were in the world through internet. Ignorance of all thes e external factors have leads Woolies to lose their business to competitors. Finally I would say the key of success is to do few things right like Primark, not 100s things badly like Woolworths, keep ears and eyes open, monitor your internal and external environment, and response best to the threats and convert into opportunities. Financial analysis References ASX Announcement (2009), Primark, 3Q Holdings Limited 2009, [Online], http://www.threeq.com.au/announce/AnnouncementPrimark.pdf Bowmans Strategic Clock (1996), Strategic Business Planning, Strategies for leaders, followers, challenger and nichers, International Financial Publishing 2006, Surrey UK Elrico (2002), Woolworths Group Plc, Advfn III (2002), [online], http://www.advfn.com/stocks/buy-woolworths-as-they-are-a-good-shop-with-many-varieties_2527942.html Igor Ansoff (1957), Strategic Business Planning and Development, Strategy Development, International Financial publishing Ltd 2006. James Hall (2009), Primark Overtakes ASDA as Biggest Low Price Clothing Retailers, Telegraph 20th Jan 2009, [Online], http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/4299950/Primark-overtakes-Asda-as-biggest-low-price-clothing-retailer.html John McMillan (2008), Learn From Woolworths, Academy, [online] http://www.ecademy.com/node.php?id=118215 Jonathan Prynn (2009), London Evening Standard, Primarks recession fashion boom, [online], http://www.thisislondon.co.uk/standard/article-23763781-primarks-recession-fashion-boom.do Primark 2009, Primarks History, Primark Stores limited 2009, [Online], http://www.primark.co.uk/page.aspx?pointerid=eb44df4565934edca627dac6ec12145a Market Report 2008, Clothing Industry Report, Key Note publication Ltd Feb. 2008, Online, http://www.researchandmarkets.com/reports/594454 Michael Porter (1979), Strategic Business Planning and Development, The Competitive Environment, international Financial publishing Ltd 2006. Michael Porter (1980), Generic Strategies, Marketing Teaches Ltd (2000 2009), [Online], [Cited 14th November 2009], R. M Grant, Blackwell (2009), Shedding The Frills; Making A success, open2.net, [online], http://www.open2.net/moneyandmanagement/management_organisation/briefs_20051206_primark.html Robert Stockdill (2007), Primarks fast fashion revolution, Inside Retailing Magazine Oct 2007. [online], http://www.insideretailing.com. au/Latest/tabid/53/ID/1552/Primarks-fast-fashion-revolution.aspx Sean Poulter (2008), Primark now Britains 2nd Biggest Clothing Retailer, Mail Online (2008), http://www.dailymail.co.uk/news/article-561270/Primark-Britains-second-biggest-clothes-store-thanks-rise-disposable-fashion.html Times Online (2008), History of Woolies, By Rosie Lavan, [Online], Witchalls, C (2007) Flexibility and speed key to new revenue streams http://www.computingbusiness.co.uk/computing business/analysis/2183247/case-study-bt

The Statute of the Man in the Modern Catholic Anthropology Essay

The Statute of the Man in the Modern Catholic Anthropology ABSTRACT: In what follows, I examine the renaissance of the idea of freedom as a fundamental measure of humanity in the work of Karol Voitila (Pope John Paul II). I examine as well Karol Voitila's concept of the human person as found in his work "Love and Responsibility" as well as the encyclical Evangelium vitae, which affirms the incomparable value of the human person. I also consider the celestial predestination of the human person as discussed in the documents of the Second Vatican Council. The prevailing motive in the philosophy of the Renaissance and the following centuries is the affirmation of human liberty and dignity on the base of his life on the Earth, the emphasis on the innate human striving for food, happiness and liberty, for universal perfection and entirety of the human nature, for organic unity between the spiritual and the physical. I can not disagree with Erih Fromm, who emphasizes that even in the late Middle Ages the Catholic doctrines, and the philosophy of the Renaissance later, express the tendency to acknowledging the role of the human will and human exertion - the Catholicism is in harmony with the spirit, that dominates in the social groups, which economic status brings them the feeling of strength and independence. The Renaissance idea of freedom as a fundamental measure of human nature "finishes" in philosophy like Sheller and Sartr with apotheosis of the act and the constant choice. Butt the freedom as an act is simultaneously a human ability of selfmaster, self-improvement, restraining the mean passions and motives. Freedom is also the ability to be loyal to ourselves and to our beliefs, to reach the real creation in which th... ...izons. (See Àà ­Ãƒ ²Ãƒ ³Ãƒ  Ãƒ ­ Êà  Ãƒ §Ãƒ  Ãƒ ­Ãƒ ®Ãƒ ¢Ãƒ  . Âà ²Ãƒ ®Ãƒ °Ãƒ ®Ãƒ © Âà  Ãƒ ²Ãƒ ¨Ãƒ ªÃƒ  Ãƒ ­Ãƒ ±Ãƒ ªÃƒ ®Ãƒ © à ±Ãƒ ®Ãƒ ¡Ãƒ ®Ãƒ °. ÃÅ'à ®Ãƒ ±Ãƒ ªÃƒ ¢Ãƒ  , 1973, à ±Ãƒ ²Ãƒ °. 241-242). If we try to make a summary of the proposed in the Pastoral Constitution conception of the man, caused by the challenges off the atheism, the greatest of which is the general absence of any desire of after life, we could say, that this conception, even with the elements of concretness and sociality is a conception of the authentic, "eternal" man. That means that our thoughts must be directed to the outer world, which excels the real history and continues to be the transcendental knowledge source, the storehouse of the moral and social models, which permanently keep their position. (See Op. Cit, p. 244). And their durability is conditioned by our connection with God, which is now made actual due to the "mediation" of Jesus Christ and the present "growth of man in Jesus Christ".....

Consumer Behavour

Models of Consumer Behaviour UNIT 9 Objectives MODELS OF CONSUMER BEHAVIOUR After reading this unit, you should be able to: †¢ †¢ †¢ †¢ identify the different levels of consumer decision-making explain the process of consumer decision-making differentiate between types of buyer decision behaviour describe the buyer behaviour with the help of an input, process, output model Structure 9. 1 Introduction 9. 2 What Is a Decision? 9. 3 Levels of Consumer Decisions 9. 4 Process of Decision- Making 9. 5 Types of Purchase Decision Behaviour 9. 6 Stages in the Buyer Decision Process 9. 7 Models of Buyer Behaviour 9. 8 Summary 9. 9 Key Words 9. 0 Self-assessment Questions 9:11 Further Readings 9. 1 INTRODUCTION In this unit we shall examine how a consumer actually arrives at the decision to purchase a specific product or brand out of the so many available in the market. Or, in other words, we shall study the process of consumer decision-making. In the previous unit we had di scussed a simple model of consumer decision-making, comprising an input, process and an output. A consumer receives stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms of either buying or not buying the product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. 9. 2 WHAT IS A DECISION? A decision is the selection of an alternative out of the several number of alternatives available. It is only when theme are two or more alternatives available that there is the need to make a choice. In the field of consumer behaviour, we are only concerned with situation in which the consumer has to take a purchase decision where there is a choice available. 27 Understanding Consumers 9. 3 LEVELS OF CONSUMER DECISIONS As a buyer or consumer you are all the time making decisions such as what product to buy (a book or a shirt as a birthday present for your friend), Which brand (Lux, Liril, Hamam, Rexona or OK toilet soap) from where (Super Bazar, nearby corner shop, chemist), etc. Table 1 presents a summary of the different levels of purchase related decisions most commonly encountered by consumers. The table highlights the broad range of choices the consumers have to select from when making a decision, starting from the generic product category level to the brand level and retail outlet level. 9. 4 PROCESS OF DECISION-MAKING The most basic and important requirement for the marketer is to understand how consumers make choices. Ajzen and Fishbein have attempted to explain human choice behaviour in their theory of reasoned action which states that: â€Å"Generally speaking-human beings are usually quite rational and make systematic use of information available to them. People consider the implications of their actions before they decide to engage or not to engage in a given behaviour. † Thus, making a decision is a rational and conscious process in which the consumer evaluates each of the available alternatives to select the best amongst them. Each decision you make involves an elaborate mental thought process, a degree of active reasoning, though on the surface it may not always seem to be so. This may be because over a period of time you have taken certain decisions so many times that they now seem to be made almost automatically but that is not true at all. Even your daily decision of buying a loaf of bread involves the element of active reasoning as buying a new sofa set for your drawing room. However, in the former case, the extent and intensity of active reasoning may be much less as compared to the latter case. 28 In the case of bread, the only decision variables may be which brand, quantity and retail outlet. But in case of buying a sofa set the decision variables are far more in number. These may be: †¢ †¢ †¢ †¢ †¢ ready-made or made to order from a furniture shop or to be built at home type of material for frame: Wood, Steel, Aluminium type of material for cushion: cloth, rexine, leather design: with or without arm-rests, height, depth of seat, seating capacity, loose or fixed cushion. Models of Consumer Behaviour Thus, depending on the type of decision being made, the degree and strength of active reasoning will vary. There are three factors which influence the degree of active reasoning that is undertaken by the consumer in his process of decision-making. These are: i) involvement, ii) alternative differentiation, and iii) time pressure i) Involvement: When a product is perceived to be of great personal importance to the customer, such as personal clothing, or its purchase involves a great deal of money or risk such as jewellery, car, house, company shares, the level of involvement in making the decision is likely to be very high. The consumer is likely to spend a great deal of time before arriving at the final decision. In contrast, when buying items which do not reflect much on the consumer's personality or their purchase involves small amounts of money . or the risk associated with them is not high, the degree of involvement of the consumer is likely to be low. Products such as shoes, polish, toilet soap, toothpaste, biscuits etc. would fall in this category. i) Differentiation: When the consumer perceives that the various alternatives which are available are very different from one another in terms of their features and benefits offered, he is likely to spend more time in gathering information about and evaluating these different features. On the other hand, in case of products which are not very different from one another either in terms of their features or benefits offered, the consumer is bound to perceive them as being almost the same and buy the first available product/brand which satisfies his minim um expectation. He will not like to spend much time in evaluating the various alternatives. The various brands of washing powder available in the market today are an excellent example of low level of differentiation with the consumer perceiving the different brands to be offering almost identical benefits. All the brands, such as Nirma, Vimal, Vijay, etc. look similar with identical packing and carry almost the same price tag. Till a few years ago, the two wheel scooter market in ,India was highly undifferentiated with Vespa and Lambretta offering almost identical scooter to the consumers in terms of basic features. But today the same market is highly differentiated. The consumers have a wide range of brands to choose from such as Kinetic-Honda, Lohia, Bajaj etc. each offering a variety of shapes, horse power and many other innovative features to choose from. A potential consumer of scooter would have to spend considerable time in evaluating each brand before he is in a position to make his decision. iii) Time Pressure: When you are under pressure to make a decision quickly, you cannot afford to spend a long time finding out about the various products or brands. You would probably buy whatever is readily available. While traveling in your car to a hill station your car tyre bursts and you need to buy a new one. At that time you would buy the brand that is available at whatever price without giving it too much thought. But under a different situation, when you need to buy new tyres, you would certainly like to find the features of nylon and radial tyres and evaluate various brands e. g. Modi, MRF, Dunlop and Apollo etc. on their individual advantages and disadvantages. 29 Understanding Consumers Activity 1 a) For each of the products/services written below, identify whether the purchase decision involves a high or low degree of involvement under normal circumstances: i) ii) iii) iv) v) vi) vii) viii) ix) x) Scooter Tyre Steel almirah Transistor radio Bicycle Shirting material A pair of shoes Toothpaste A family planning device such as Nirodh Restaurant Voltage stabiliser. b) In respect of the above products, record which differentiated alternatives (brands) are available in the market. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9. 5 TYPES OF PURCHASE DECISION BEHAVIOUR Consumer buying behaviour varies with the type of buying decision. Earlier, we stated that while a decision for buying bread was almost made automatically, the decision for buying a sofa set was more deliberate and time consuming. Similarly, there is a great deal of difference in buying a tube of toothpaste, clothes for yourself and a refrigerator for your home. We shall now distinguish three types of buying behaviour: i) Routinised response behaviour, ii) Limited problem solving, and iii) Extended problem solving. ) Routinised response behaviour (RRB): This occurs when the consumer already has some experience of buying and using the product. He is familiar with the various brands available and the attributes of each and has a well establ ished criteria for selecting his own brand. Consumers do not give much thought or time when buying such products and already have a preferred brand. The degree of involvement in buying such products is low. Frequently purchased and low cost products such as razor blades, coffee powder, toothpaste, soap, soft drinks, etc. fall in this category. Marketers ealing in products involving routinised response behaviour must ensure the satisfaction of existing customers by maintaining consistent quality, service and value. Also, they must attempt to attract new customers by introducing novel features, using point-of-purchase promotional material and special displays. ii) Limited Problem Solving (LPS): In this type of buying behaviour, the consumer is familiar with the product and the various brands available, but has no established brand preference. The consumer would like to gather additional information about the brands to arrive at his brand decision. For instance a housewife buys refined vegetable oil for her cooking. She is familiar with the concept of vegetable oil (as opposed to say vanaspati and ghee) and also knows that Postman, Dalda and Ruby are some of the prominent brands available. But to establish her choice of brand, she would like to check with her friends and regular shopkeeper about the attributes of each. Limited problem solving also takes place when a consumer encounters an unfamiliar (or new) brand in a known product category. The housewife who buys refined 30 vegetable oil, on her next visit to the market, sees a new brand of oil, Saffola. Apart from being a new brand, this brand of oil also claims the unique attribute of being low in cholesterol. To arrive at a decision, whether or not to buy this brand, the housewife needs to gather information about the new brand which will allow her to compare it with the known brands. The marketer's task in a situation where he is introducing a new brand in a well known product category is to design a communication strategy that gives complete information on all the attributes of the brand, thus increasing the consumer's confidence and facilitating his or her purchase decision. ii) Extensive Problem Solving (EPS): Extensive problem solving occurs when the consumer is encountering a new product category. He needs information on both the product category as well as the various brands available in it. This kind of decision is by far the most complex. For instance, you are thinking of buying a Flat colour television to replace your existing black and white TV set. You do not have much idea about how to judge the quality of a, colour TV set. You have heard about the various rands, such as Videocon, BPL, Samsung, LG, Sony, Thomson etc. but you do not know what t heir respective quality ranking is in colour TV. Each brand makes claims of foreign technology, latest features such as flat square tube and channel display. Further, t here is a range of models to choose from within each brand, models with remote control . different cabinet colour finish, vertical monitor styling etc. To arrive at a decision, you have to gather information at three levels and also establish a criteria for evaluating this information. The three levels of information gathering and evaluation are at generic product level, brand level and model level within each brand. The marketing strategy for such buying behaviour must be such that it facilitates the consumer's information gathering and learning process about the product category and his own brand. The marketer must be able to provide his consumer with a very specific and unique set of positive attributes regarding his own brand, so that the purchase decision is made in his favour. The concept of EPS is most applicable to new products. The product may be new at the generic product concept level (such as Maggi noodles) or it may be an established product concept but new for a particular consumer. In case of a new product concept such as ready to cook instant snack, the entire consumer universe is unfamiliar with the product. The marketer has to spend large amounts of money in educating the consumers about his product. The consumers in turn need a great deal of information before they can take a decision; and the decision process takes a long time. On the other hand, you may have the situation where the product concept is well understood by a majority of the consumers, but it is being bought or used by a particular consumer for the first time. To take a very simple example, a tribal who is exposed to the concept of toothpaste for the first time in his life will seek a lot of information and take a long time to decide. For him, buying a toothpaste is a EPS behaviour, whereas for most of us it simply requires a routinised response behaviour. Models of Consumer Behaviour 9. 6 STAGES IN THE BUYER DECISION PROCESS Even buying decision involves an element of active reasoning. The manner in which this active reasoning manifests itself is illustrated in Figure I. In making a purchase decision the consumer goes through the five stages of: i) ii) iii) iv) v) problem recognition, pre-purchase information search, evaluation of alternatives, purchase decision, and post purchase behaviour. However, in case of routine purchases, the consumer may skip the second and third stages and straight away go to the stage of purchase decision. But in case of purchase 31 Understanding Consumers decision involving extensive problem solving, the consumer is likely to go through all the five stages in the specified sequence. The important point to note is that the buying process starts much before the actual purchase and has implications even after the purchase has been made. This should give ideas to the marketer as to how he has to start designing his marketing strategy in order to achieve his specified marketing objectives. Figure I: Stages in the Buyer Decision Process Let us understand the stages in decision-making process with the help of a Mr. Rao's specific decision to purchase a briefcase. i) Problem Recognition: The buying process starts with the buyer recognising a need or problem. Mr. Rao feels very uncomfortable carrying his papers, files and lunch packet in his hand or in a plastic bag to his work place. Sometimes, the papers and even files from his hand and get spoiled Mr. Rao feels the need for a suitable receptacle to carry papers to and fro from his office and has identified a briefcase as the solution to his problem. i) Pre-Purchase Information Search: In response to the stimuli provided by the need for a briefcase, Mr. Rao starts searching for information on the kinds of briefcases available in the market. Search can be of two types: internal and external. Internal search refers to recalling relevant information stored in the memory. For instance, Mr. Rao may recall having seen the different kinds of briefcases used by his colleague s. Or he may recall having seen some advertisements for briefcases on the television or in some magazines and newspapers. External search refers to the deliberate and voluntary seeking of new information regarding the product/brand under consideration. Mr. Rao can seek information from the following three sources: †¢ †¢ †¢ Personal sources: family, friends, colleagues, neighbours. Commercial sources: advertisements, retailers, salesmen. Public sources: seeing others, consumer information centres. By tapping all these sources of information, Mr. Rao is able to identify the different types of briefcase on the basis of material, branded versus unbranded, high-mediumlow priced. A wide variety of materials are used for making briefcases ranging from the best leather to rexine to plastic. There are branded briefcases available and Mr. Rao can choose from the well known VIP, Safari and Aristocrat and some less known local brands, or he can choose to buy an unbranded briefcase. The price ranges from Rs. 125 to Rs. 1200. Also, there are a number of other features which can influence the choice, such as type of lock, and number of partitions and pockets for keeping different documents. By the end of this stage, Mr. Rao has gathered enough information about different kinds of briefcases available and has narrowed down his alternatives to moulded plastic, branded briefcase. Within this broad range there are various brands and price ranges to make the final choice from. Evaluation of Alternatives: Mr. Rao will make his final decision using certain evaluative criteria. The most commonly used criteria are: (i) product attribute, (ii) the relative importance of each attribute to the consumer, (iii) brand image, (iv) attitudes towards the different brands or alternatives under considerations. For instance, the product attributes of the (Plastic branded briefcase) alternatives identified by Mr. Rao are: , unbreakable, lightweight, spaciousness, reliability of locking system, colour, price. Mr. Rao attaches maximum importance to the product attributes of light weight and spaciousness as compared to other attributes. He already has some kind of attitude towards the various brands developed in the stage of information search which will affect his final decision. 32 This stage of the buying decision process gives the marketer a chance to modify his product offering in keeping with the relative importance attached to each attribute by various consumer segments, altering beliefs and attitudes about his own brand, and calling attention to neglected product attributes, Purchase Decision: In the evaluation stage, Mr. Rao has ranked the various brands in terms of his first, second and third preference. In short, he has made up his mind about which brand he wants to buy. However, Mr. Rao may finally end up buying a brand which is not his most preferred. This may happen because attitudes of others and †situational factors. For instance, when Mr. Rao goes to the shop to make his purchase, the shopkeeper's negative remarks about his (Mr. Rao's) most preferred brand may make him change his mind. Also, it is possible that Mr. Rao's preferred brand is not available, or there is a very attractive price discount on the brand ranked third by him which eventually makes him change his mind. Post Purchase Behaviour: After purchasing the briefcase, if Mr. Rao finds that its performance or utility matches up to his expectation, Mr. Rao will feel satisfied with his purchase. The satisfaction will reinforce Mr. Rao's perceived favourable image of the brand, which is likely to be extended to the entire range of products manufactured by the Company. Also, Mr. Rao is likely to strongly recommend the brand when his friends ask his advice for buying a new briefcase. A satisfied customer is thus a very powerful source of influence for potential customers. However, if Mr. Rao feels that the briefcase which he has purchased is not upto his expectation, then he is likely to feel dissatisfied. The gap between expected (or perceived) and the actual performances causes discomfort or dissonance to the buyer. As a result of this, Mr. Rao may decide to stop buying other products sold by the same Company and also warn his friends about the poor utility of his briefcase. To reduce his own state of discomfort or dissonance arising from the feeling that he has not made the right choice, Mr. Rao can: (i) re-evaluate the unchosen brands and downgrade their desirability by identifying some negative features, and (ii) search for information to confirm his choice. Models of Consumer Behaviour Activity 2 a) Consider the case of a consumer durable which you may have recently purchased. Try to recall the actual process you might have undergone in buying that. Write down the specific activities you undertook at each stage of the decision-making process. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ b) Do you find any differences in the approach described above and the approach that you may have followed? What could be the reasons for these differences? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 33 Understanding Consumers 9. 7 MODELS OF BUYER BEHAVIOUR Consumer behaviour is a process and purchase is only one stage in that process. There are many underlying influences ranging from internal motivations and attitudes to social and external influences of many kinds. Having explained the consumer decision. making process, now let us turn our attention to the process of consumer or buyer behaviour. We shall explain the process of buyer behaviour with the help of four models. The first two models describe the decision process as applicable to individual consumer. The third model explains the decision-making process of a group, namely the family. The fourth model explains the decision-making process in the context of an organisation. Howard-Sheth Model This model explains the buyer decision process using four major sets of variables as presented in Figure II. The four sets of variables are: (i) inputs, (ii) perceptual and learning constructs, (iii) outputs and (iv) exogenous or external variables. i) Input: The input to the customer decision process is provided by three distinct types of stimuli. Of these two types of stimuli are provided by the marketer in the form of physical, tangible product characteristics known as significative stimuli, and intangible, perceptual product characteristics known as symbolic stimuli. To return to the example of Mr. Rao, while the physical appearance, sturdiness, finish, and spaciousness would constitute the significative stimuli for quality, the overall quality that Mr. Rao perceives in his briefcase connotes the symbolic stimuli. The actual price paid for the briefcase is significative stimulus while the perception that the price is reasonable, or too high or is a good bargain is the symbolic stimulus. The third type of stimuli is provided by the consumer's family, reference groups and social class to which he belongs. 34

Original Writing – Birkan Akin

It was a dark night on a small island off the coast of Maine; I heard a shot, and a gunshot that echoed in my ears it felt like I was wounded. On the night of the gunshot a fisherman disappeared. The body was absent from the day of the gunshot, a young man known as Ryan Adams was accused of the murder. Years later the fisherman was found, found for just a few seconds he was found by a young girl who was playing in the sea when she suddenly felt a hand. I was at the scene firstly it seemed like the girls was drowning, I went for her rescue thinking that she is drowning, but then a yellow raincoat flicked into my eyes. I screamed out â€Å"its him, its him it's the fisherman that went missing at the gunshot scene†. I was in shock I couldn't believe it, then I suddenly saw the fisherman moving he was getting, getting out of the sea. I screamed â€Å"he's alive he's alive† I saw for one moment and the he vanished, disappeared he was gone. I couldn't even say stop, wait, don't go†¦he was gone. The following day everybody in the island was talking about the return of the fisherman, but just for a few seconds. On the same day the young man Ryan Adams that was accused of murdering the fisherman was set free. A further investigation was in process the investigation was named as ‘who fired the gunshot?' Since the day the fisherman reappeared he was never seen again. One night I went out to the seaside to catch some fish for dinner, the sky was pitch black I couldn't see anything. When I was fishing I heard something, something that was thrown into the sea from a distance. I turned around and looked at the shaw it looked like I saw the fisherman it looked he had that same yellow raincoat I was sure it was him because it looked like he was getting closer to me. I packed up my equipment and headed towards my home. I had another look back and I saw the fisherman in distance, he was running, running towards me. When I looked carefully at him it looked like he was carrying something in his hand, it was hard to describe from such distance but as he got closer I started picturing it, it looked like a gun. I was shattered, scared in amazement. He was getting closer and closer and closer and closer, then I heard a gun shot it was echoing in my ears it sounded like the bullet was getting closer†¦then suddenly I flew out my bed and started screaming â€Å"agghhhhhhhhhhhhhhhh†¦its was a dream, a dream, a dream that know one would ever believe.