Effective Corporate Governance Has to be Practiced at all Levels of the Organization
Some Recent Scandals Involving Corporate Governance The recent months have seen a spate of scandals involving corporates pertaining to corporate governance. From the Indian IT (Information Technology) bellwether, Infosys, to the hottest startup and Unicorn (startups that are valued at more than a Billion Dollars) and the TATA group to name a few, the corporate […]
B2B Marketing Vs. B2C Marketing in the E-Commerce Industry
E-commerce has taken many companies across the world by storm. Giants like Alibaba.com and Amazon have been created in the past few years thanks to the sudden boom in the e-commerce industry. Alibaba and Amazon are both similar in the sense that they are websites where people buy and sell products, i.e. e-commerce portals. However, […]
What is Customer Satisfaction ?
Business always starts and closes with customers and hence the customers must be treated as the King of the market. All the business enhancements, profit, status, image etc of the organization depends on customers. Hence it is important for all the organizations to meet all the customers’ expectations and identify that they are satisfied customer. […]
Business to Business (B2B) Marketing – An Overview
What is “Business to Business Marketing” ? Let us first understand the meaning of Business. Any organization or firm actively involved in the transaction of goods and services to the consumers/end users is known as business. As the name suggests “Business to Business Marketing” (B2B Marketing) refers to the exchange of either goods or services […]
Tips for Successful Sales Professionals
Sales professionals play an essential role in the success or failure of an organization. Their key responsibility areas include promoting a product and making a brand popular amongst the end-users. Sales representatives earn profits and generate revenues for the organization. Let us go through some tips for successful sales professional: Understand your product well. Customers […]
Consumer Behaviour deals with the study of buying behaviour of consumers.
Let us understand the effect of psychological factors on consumer behaviour:
Nancy went to a nearby restaurant and ordered pizza for herself.
Why did Nancy buy pizza ?
Answer - She was feeling hungry and wanted to eat something.
In the above example, Hunger was the motivating factor for Nancy to purchase pizza. There are several other factors which motivate individuals to purchase products and services.
An individual who is thirsty would definitely not mind spending on soft drinks, packaged water, juice and so on. Recognition and self esteem also influence the buying decision of individuals.
Why do people wear branded clothes ?
Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive. An individual who wears a Tag Heuer watch would never purchase a local watch as this would be against his image.
What is Perception ?
What an individual thinks about a particular product or service is his/her perception towards the same. For someone a Dell Laptop might be the best laptop while for others it could be just one of the best brands available.
Individuals with the same needs might not purchase similar products due to difference in perception.
Catherine and Roselyn had a hectic day at work and thus wanted to have something while returning from work. Catherine ordered a large chicken pizza with French fries and coke while Roselyn preferred a baked vegetable sandwich. Though both Catherine and Roselyn had the same motivation (hunger), but the products they purchased were entirely different as Roselyn perceived pizza to be a calorie laden food. Individuals think differently and their perceptions do not match.
Individuals perceive similar situation differently due to difference in the way they interpret information.
There are three different processes which lead to difference in perception:
Learning comes only through experience. An individual comes to know about a product and service only after he/she uses the same. An individual who is satisfied with a particular product/service will show a strong inclination towards buying the same product again.
Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image.
Consumers purchase products/services based on their opinions which they form towards a particular product or service. A product might be really good but if the consumer feels it is useless, he would never buy it.
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