Chapter 1 (introduction and literature review) 1. 2. 3. 4. 5. 6. 7. Introduction History Objectives Importance Function Types Roles etc.

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MAJOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULIFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION

MAJOR PROJECT REPORT ON BUYING BEHAVIOUR DECISION OF CUSTOMER TOWARD SHAMPOO PRODUCT BATCH 2009-2012

Submitted By SHIKHA GOYAL O2124001709

PROJECT GUIDE Mrs. DEEPIKA Assistant professor

TRINITY INSTITUTES OF PROFESSIONAL STUDIES AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY,NEW DELHI

INTRODUCTION OF BUYING BEHAVIOUR DECISION OF CUSTOMER

Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. More generally, decision making is the cognitive process of selecting a course of action from among multiple alternatives. Common examples include shopping and deciding what to eat. Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behavior that a decision has been made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action. In general there are three ways of analyzing consumer buying decisions. They are:

Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances. Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences. Consumer behavior models - These are practical models used by marketers. They typically blend both economic and psychological models.

Nobel laureate Herbert Simon sees economic decision making as a vain attempt to be rational. He claims (in 1947 and 1957) that if a complete analysis is to be done, a decision will be immensely complex. He also says that peoples' information processing ability is very limited. The assumption of a perfectly rational economic actor is unrealistic. Often we are influenced by emotional and non-rational considerations. When we try to be rational we are at best only partially successful

Buyer behaviour - The decision-making process

How do customers buy? Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarised in the diagram below:

This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing

stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: Personal sources: family, friends, neighbours etc

Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays Public sources: newspapers, radio, television, consumer organisations; specialist magazines Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels involved in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is highly involving, the customer is likely to carry out extensive evaluation. High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a car or making investments.

Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. Why should a marketer need to understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale. Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision

BUYING BEHAVIOUR OF CUSTOMER TOWARD SHAMPOO PRODUCT The Management of PROCTER & GAMBLE once stated : Our business is based on understanding the consumer and providing the kind of products that the consumer wants. We place enormous emphasis on our product development area and our marketing area, and on our people knowing the consumer. The human mind is the most complex entity in the whole universe as it is very unpredictable how a person would behave in or react in a particular situation.
A persons behavior changes from place to place and situation to situation or, say it is very inconsistent. The person when has a need, is willing and able to satisfy the need is called a buyer. The consumer would go different ways to satisfy its needs depending on his social, cultural, family, economic and educational background. Consumer is the principle a priori of business. The efficiency with which a free market system of enterprise operates, depends upon the extent of consumer understanding possessed by the business community. A business community that is ignorant of consumer preferences cannot possibly fulfill its obligations in a meaningful and responsive manner. So here comes the need to prepare project report onbuyer BEHAVIOUR. Consumer Behavior is broadly defined as the behavior the consumer displays in searching for, purchasing, using and evaluating products, services, and ideas which they expect will satisfy their needs. Consumer Behavior is not only the study of what people consume, but is also the study of who the consumers are, why they consume, how often they consume, and under what conditions they consume. CONSUMER BEHAVIOUR refers to the buying behavior of ultimate consumers, those persons who purchase products for personal or household use, not for business purpose.

There are Psychological Theories that help us to understand and predict the effect of all external and internal factors on a consumer. External factors include Culture, Society, Reference group and family etc. Internal factors comprise in a consumer mind and how consumers learning, memory, attitude, personality, lifestyle and motivation levels effect consumer behavior. What would initiate a buying process and how a buying decision would end is all covered under the study of consumer behavior. This all further helps relate product / service, price and promotion etc. with

consumer behaviour. Thus organisation can place marketing mix so as to propogate their product/services.
The present study on SHAMPOO is also trying to find Consumer Perception about different features of Shampoos and how Price, Environment, Packaging, Quantity, Easy Availability and Variety are affecting the sale of Shampoos.

PSYCHOGRAPHIC
In psychographic segmentation buyers are divided into different groups on the basis of lifestyle and \ or personality. People within the same demographic group can exhibit very different psychographic profiles. These psychographic bases are often difficult to measure, but they offer potential rewards in terms of providing management with a more relevant basis for differentiating between segments of a market.

LIFESTYLE
People exhibit many more lifestyles than are suggested by the seven social classes. Peoples product interests are influenced by their lifestyles. In fact the goods they consume express their lifestyles. Marketers are increasingly segmenting their markets by consumer lifestyles. Companies making cosmetics, alcoholic beverages, and furniture are always seeking opportunities in lifestyle segmentation.

PERSONALITY
Personality affects the consumption of many goods, particularly those consumed publicly. An aggressive personality for example, may be reflected in the choice of ostentatious clothing, furniture, and automobiles. Preferences are frequently so different that it is impossible to serve all personality types with the same product or brand. A recognition of important personality types can help management position its towards a profitable segment or segments.
Marketers have used personality variables to segment markets. They endow their products with brand personalities that correspond to consumer personalities

ISSUES IN SHAMPOO ADVERTISING

The ideas, associations and images that people have of a shampoo brand determine the demand side of the brand equity equation. There are two ways in which advertising is likely to influence perceived product performance. First, by guiding the expectations about the shampoo experience - process called product enhancement and second, by creating a halo of superiority around the brand via a mechanic termed Interest Status. There are two key advertising related factors. First, the advertisement needs to be remembered. This is important because its main influence is at the point of trial. Second, the message should relate in some way to the experience of using the product - for instance, does it create any expectation of what the shampoo would feel like to your hair i.e., how will it take care of your hair and especially to your specifications. But the advertiser should always bear in mind that the benefits proclaimed are in line with what the product can actually deliver. Brands can have perceived advantages which are unrelated to the physical or sensual aspects of the product delivery and relate more with the emotional appeal of the brand and the sense of belonging which comes from being a buyer of the brand. In many respects this is an extension of the brand presence, except that the presence is converted into a relevant advantage only if it fits with the consumers emotional needs i.e. making a brand worthy of its price tag. Is advertising in Shampoo market ethical ? In a profession where the task of advertisers is to suspend the consumers disbelief, there cannot be a possibly straight answer. Use of Shampoo does not impair or damage hair, Soaps make your dry, lifeless and lusterless, are the statements we hear in shampoo advertisements. Research has proved that the consumer is quite willing to suspend his disbelief and appreciate the hyperbole for what it is worth. The consumer perfectly understands that this is a mere exaggeration to make a point. However, this issue becomes murkier when there is an obvious attempt to mislead the consumer into believing that the product delivers a benefit that is actually not. This, by any sensible definition, is definitely unethical. But exaggeration is an aspect of advertising. When does it become misleading ? Is Sunsilk or Organics which use filmstars or very well known high strata celebrities who probably never touch an Indian Shampoo, ethical ?

To my mind, is there anything unethical about these advertisements. The role of advertising is to extol the real or perceived virtues of a product. And just like there is a poetic license, there is a certain advertising license that the consumer is willing to grant within limits. There is a distinct segment of population who actively seek to avoid advertising. These people view as few as half the commercials seen by non - evaders. They expect ad - breaks to contain boring and irrelevant material and have thus developed strategies of avoidance. Inconveniently for advertisers, evaders are not contained within any one demographic segment but are likely to be the smartest people within their group and crucially, tend to be the people with the lowest price sensitivity, those who should be most susceptible to brand messages. The research offers a worrying glimpse of the future. People are more likely to be evaders if they have satellite or cable. But all is not lost. Evaders do not respond to distinctive, relevant and original advertising that catches them at the right time. Lord Leverhulmes statement that only half the money he spent on advertising was wasted, is beginning to look blithely optimistic.

The real issue is creativity. What type of advertisements prevent evaders from avoiding. There is a strong correlation between likeability and awareness. More likeable ads are more effective at generating awareness. Ads should be enjoyable, to help brands build bonds with consumers. Individual advertisers and agencies must identify and understand the motivation of ad evaders and tailor their creative and media solutions accordingly.
Planners must attempt to get psychological insights into the consumer that goes beyond number - crunching. There are qualitative differences in how people use and relate to media and these have enormous implications on media strategies. There is a hypothesis that the recall of brands would be higher if they were advertised on programmes that enjoyed higher level of viewers

History of the company

Hindustan Unilever Limited (HUL) Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast-moving consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 16,500 employees [2] and contributes to indirect employment of over 65,000 people.[3] The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).[4] Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products

1.Sunsilk It is a hair care brand, primarily aimed at women, produced by the Unilever group, which is now considered the world's leading company in hair conditioning and the second largest in shampoo. Sunsilk is Unilevers leading hair care brand, and ranks as one of the Anglo-Dutch conglomerate's billion dollar brands". Sunsilk shampoos, conditioners and other hair care products are sold in 69 countries worldwide. Sunsilk is sold under a variety of different names in markets around the world including Elidor , Seda and Sedal. The brand is strongest in Asia, Latin America and the Middle East and is the

number one hair care brand in India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka and Thailand 2.Dove It is a personal care brand owned by Unilever. Dove products are manufactured

in Argentina, Australia, Brazil, Canada, Germany, India, Ireland,Netherlands, Thailand, Turkey a nd United States. The products are sold in more than 35 countries and are offered for both women and men.[1]. The Dove trademark and brand name is currently owned by Unilever. Dove's logo is a silhouette profile of the brand's namesake bird, the color of which often varies. Products include: antiperspirants/deodorants, body washes, beauty bars, lotions/moisturizers, hair care, and facial care products. Dove is primarily made from synthetic surfactants, soaps derived vegetable oils from palm kernel) and salts of animal fats (tallow). In some countries, but not UK, Dove is derived from tallow (like many soaps) and for this reason it is not considered vegan, unlike vegetable oil based soaps.Dove is formulated to be pH neutral, a pH that is usually between 6.5 and 7.5 Procter & Gamble (P&G Procter&Gamble (P&G) isa Fortune500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. In 2011, P&G recorded $82.6 billion dollars in sales. Fortune magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010. Procter & Gamble is the only Fortune 500 company to issue C Share common stock

1.Pantene It is a brand of hair care products owned by Procter & Gamble. The product line was first introduced in Europe in 1947 by Hoffman-LaRoche ofSwitzerland, which branded the name based on panthenol as a shampoo ingredient. It was purchased by Procter & Gamble (P&G) in 1985 in order for P&G to compete in the "beauty product" market rather than only functional products.

The brand's best-known product became the conditioning shampoo Pantene Pro-V (Pantene ProVitamin). The product became most noted due to an advertising campaign in the late 1980s in which fashion models said, "Don't hate me because I'm beautiful." Kelly LeBrock gained notoriety as the first television spokeswoman to speak the line. The line was criticized by feminists and became a pop-culture catchphrase for "annoying" narcissistic behavior Matt Elliott got Procter & Gamble researchers to start making a new anti-dandruff shampoo in 1950. Nearly a decade of research went into making a new formula, which introduced pyrithione zinc into the shampoo. 2.Head & Shoulders It is a brand of anti-dandruff shampoo produced by Procter & Gamble. Head & Shoulders Classic Clean Shampoo is the top-selling shampoo in the United States by dollar sales. Head & Shoulders was first introduced to the U.S. market in November 1961 as a blue-green shampoo formula OBJECTIVES OF THE STUDY 1. 2. 3. To study the current Indian market for Shampoos. To analyze the relationship between a specific brand and its buying behavior. To assess whether advertising is influencing the buying behavior of the consumers. 4. To study the impact of the seals of clinical laboratories on the consumers buying behavior