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„onsumer Behaviour defines the following questions as to :

Who buys the product?

What does he buy?

When does he buy?

How does he buy?

Why does he buy?

Where does he buy

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Here it is classified into Individual or Industrial buyer.Again on the basis of involvement of

customer products can be classified as:

1.c High Involvement Product

2.c Low Involvement Product

High Involvement Product have the following characteristics such as high Price,complex
features,large difference between alternatives ,high perceived risk and reflecting self
concepts.

Low Involvement Product on the other hand have low cost, not reflecting buyer¶s self
concept and have a small difference between alternatives .

Classification of behavior Depending on Involvement and differentiation of product (buying

situations) is divided as follows:

1.c Routine response

2.c Limited Decision making
3.c Extensive Decision making

Routine responses relates to low involvement & low differentiation .eg toilet soap , tooth
paste and Products with lower price & are frequently purchased.

Limited Decision making relates to high involvement & low differentiation where
comparative investment is more and less frequently purchased and it becomes time
consuming and have moderate risk and leads to trial purchase.

Extensive Decision making relates to high involvement & High differentiation and leads to
purchasing of unfamiliar product which are high price and are purchased once

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a)c Yeeds and motivesCustomer buy product when there is need.Yeeds follows
hierarchy when first is satisfied then second comes.Yeeds is classified into:
Basic need- Customer purchase toilet soap for basic need of cleaning when this is
satisfied then he goes for another
Security need- alarm or godrej lock
Love needs- greeting cards ,gifts, clubs, chocolates
Affiliation needs- parker pen, Mercedes car
 Self actualization needs- social camps or activities, meditation camps etc
b)c PerceptionIt is process of being exposed to Stimuli ( 4p¶s,environment),paying
attention to stimuli,selecting them,organizing , interpreting them and reacting to
them.It has three dimensions:
Selective attention
Selective distortion and
Selective retention

cIn selective attention when stimuli matches to expectation and it is beneficial,

attention is paid.Eg customer want to purchase car then only he will pay attention to
different offers and advertisements of cars

Selective Distortion happens because customer add their values and beliefs to the
message.Eg ITC cigarette add shown young person smoking with older persons.

Selective Retention

c)c LearningIt is the process by which people get knowledge and experience which they
use while buying and purchasing. Eg new product in market (liquid soap)

d)c Attitude:Persons favorable or unfavorable reaction of a stimulus. It is the consistently

positive or negative inclination towards objects, ideas ,products or people.Company
has to influence attitude by taking help of marketing mix.( surf ki kharidari mai hi
samzdari hai)
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a)c Age:It affects purchasing power, taste, needs ,interest and behavior.Stages like birth,
infanthood, growing child, teenager, adolescent adult,middle aged and finally death.
b)c Incomemccupation and income affects consumer behavior.eg Carpenter will
purchase hacksaw .Car satisfies basic need of transportation but choice will different
for different income group.
c)c EducationIt affects consumer behavior as educated people will be well aware of
alternatives.Eg demand for magazine or news paper.
d)c |eographic LocationMetro city, urban or rural area, cold area or desert. eg clothes
e)c PersonalityPerson¶s distinct psychological and physical characteristics. Adventures
sports-high risk takers.
3.c „
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It represents all beliefs, values, traditions , habits shared by a group
and passed on to successive generations. It involves cultural changes ( eg role of
women),core values ( Cigarette advertisement showing young as well as old
person),Sub culture ( based on nationality, religion, region as north Indian ,Social
Class ( lower , middle and upper class).
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a)c Social Status or roles
b)c Reference |roup ( social ,economic or professional group)
c)c Family
 d)c Situational Influence:Proper arrangement, display, advertisement
,recommendation by retailer.

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1.c Complex buyer behaviour e.g. Intel Pentium Processor

2.c Dissonance-reducing behaviour (brand reduces after-sales discomfort)
3.c Habitual buying behaviour e.g. salt - little difference
4.c Variety seeking behaviour - significant brand differences e.g. soap powder

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c recognition of the need e.g. Bike

c choice of involvement level (time and effort justified) e.g. two weeks
c identification of alternatives e.g. Hero Honda ,Bajaj ,TVS,LML
c evaluation of alternatives i.e. price, instalment ,mileage ,comfort ,style
,maintainace ,service,
c decision - choice made e.g. Hero Honda
c action e.g. buy Hero Honda
c post-purchase behaviour I.e. use, breakdowns, etc

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Seeing an opportunity in the great number of Indian families with two-wheeled rather than
four-wheeled vehicles, Tata Motors began development of an affordable car in 2003. The
purchase price of this no frills auto was brought down by dispensing with most nonessential
features, reducing the amount of steel used in its construction, and relying on low-cost Indian
labour.

The Tata YAYm was a small car that was expected to deliver big numbers, it received much
media attention due to its low price ² the new plant at SAYAYD in |
ARAT was built to
produce 2.5 lakh units a year, eventually ramping up to 5 lakh units after the TATA¶S pulled-
out from SIY| R, WEST BEY|AL.

Many have had great expectations for this small car, some perhaps going a bit too far. mne
study, by Indian rating agency CRISIL, thought the YAYm would expand the nation's car
market by 65%, but 15 months after a high-profile launch, it has encountered trouble at every
turn ² three instances of the car going up in flames and a few cases of smoke emanating
from it (the last was in September), confusion about its positioning, a rather unexpected
bunch of affluent initial buyers, poor distribution reach, and financing bottlenecks. YAYm¶S
sales have dipped from 9,000 units in
uly to 3,000 in mctober to just a little over 500 in
Yovember.

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As mentioned earlier many an issues crepped-up and contributed to the pathetic performance
of the most awaited and the most hyped car in IYDIAY automobile industry but the death
nail was put in by the incidents of the car going up in flames a few times in different parts of
the country.

Peoples reaction- mnce the YAYm started going up in flames, every-one started questioning
the quality of the car, the kind of materials and the quality standards followed as the news
started spreading through mass media.

The psychographics of the customer towards the YAYm changed completely with the turn of
events and presently also the scene is the same.

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The TATA¶S have realized the threat that looms over their multi-million dollar project and
have also pin-pointed the reason behind such consumer behaviour.

The TATA¶S have announced a warranty programme and a maintenance plan for its
customers so to reinforce and reassure them of the quality factor and to guarantee superior
after-sales service.

"The Tata Yano will now come with a 4-year/60,000 km (whichever is earlier)
manufacturer's warranty, at no extra cost. Besides being applicable on new deliveries, the
warranty is also being extended to all existing owners of the car," the company said in a
statement.

The company said all new Yano customers will have an option to avail a "comprehensive
maintenance contract" at Rs 99 per month.

They have realized that it wouldn¶t help them to battle the crisis by changing the promotion,
place or price but they have to look into the core problem that was happening i.e. product.

Although it remains to be seen how the strategy adopted by the TATA¶S helps them or not or
how much it helps them in the first place.