Showing posts with label last minute study material. Show all posts
Showing posts with label last minute study material. Show all posts

Saturday, 18 January 2020

Factors Influencing Buyer Behavior

Whenever we buy anything our final decision, as a consumer will definitely be affected by certain factors. Some of these major factors are as given below:
1. Cultural
2. Social
3. Personal
4. Psychological
The first stage of understanding buyer behaviour is to focus on the factors that determine he “buyer characteristics” in the “blackbox”. These can be summarised as follows:

Factors affecting Buyer behaviour

Each of these factors is discussed in more detail in our other revision notes on buyer behaviour.

The marketer must be aware of these factors in order to develop an appropriate marketing mix for its target market.
Now lets take a brief look at the various factors that we have mentioned above.

1 Cultural Factors
Culture is the most fundamental determinant of a person’s want and behaviour. The growing child acquires a set of values; perceptions, preferences and behaviour through a process of socialization involving the family and other key institutions.
Cultural factors have a significant impact on customer behaviour. Marketing are always trying to spot “cultural shifts” which might point to new products that might be wanted by customers or to increased demand.

For example, today there seems to be a cultural shift towards greater concern about health and fitness and that has created opportunities, now even industries, servicing customers who wish to buy products like:
· Health foods
· Fitness club memberships
· Exercise equipment
· Activity or health-related holidays etc.

Similarly our increased desire for “leisure time” has resulted in increased demand for convenience products and services such as microwave ovens, washing machines, ready-to-eat meals and direct marketing service businesses such as telephone banking and insurance.

Each culture contains “sub-cultures” – groups of people, which share values. Sub-cultures can include nationalities, religions, racial groups, or groups of people sharing the same geographical location. Sometimes a sub-culture will create a substantial and distinctive market segment of its own.
For example, the “youth culture” or “club culture” has quite distinct values and buying characteristics from the much older “grey generation” Similarly, differences in social class can create customer groups. In fact, the social classes are widely used to profile and predict different customer behaviour. Social class is not just determined by income. It is measured as a combination of occupation, income, education, wealth and other variables. Social Classes are relatively homogeneous and enduring divisions in a society which are hierarchically ordered and whose members have similar values, interests and behaviour.



2. Social Factors
A customer’s buying behaviour is also influenced by social factors, such as the groups to which the customer belongs and social status. In a group, several individuals may interact to influence the purchase decision. The typical roles in such a group decision can be summarised as follows:

Initiator
The person who first suggests or thinks of the idea of buying a particular product or service

Influencer
A person whose view or advice influences the buying decision

Decider
The individual with the power and/or financial authority to make the ultimate choice regarding which product to buy

Buyer
The person who concludes the transaction

User
The one who actually uses the product or service.

The family unit is usually considered to be the most important “buying” organisation in society. It has been researched extensively. Marketers are particularly interested in the roles and relative influence of the husband, wife and children on the purchase of a large variety of products and services.

There is evidence that the traditional husband-wife buying roles are changing. Almost everywhere in the world, the wife is traditionally the main buyer for the family, especially in the areas of food, household products and clothing. However, with increasing numbers of women in full-time work and many men
becoming “home workers” (or “telecommuting”) the traditional roles are reversing.
The challenge for a marketer is to understand how this might affect demand for products and services and how the promotional mix needs to be changed to attract male rather than female buyers.
Consumer wants, learning, motives etc. are influenced by opinion leaders, person’s family, reference groups, social class and culture.

3. Personal
Personal factors are those factors, which are unique to a particular person including demographic factors, Sex, Race, and Age etc. Personal factors also include who in the family is responsible for
the decision-making.

4. Psychological Factors

Psychological factors include:

· Motives—A motive is an internal energizing force that orients a person’s activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.

MASLOW hierarchy of needs is the theory, which explains concept of motivation through unfulfilled needs which could be any of the following:
· Physiological
· Safety
· Love and Belonging
· Esteem
· Self Actualization
· Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.

· Perception
What do you see??
Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. This means we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch.

Selective Exposure- This means we tend to select inputs to be exposed to our awareness. This is more likely if it is linked to an event, and/or satisfies current needs.
Selective Distortion- This happens when we change or twist current received information, which is inconsistent with our beliefs.
Selective Retention- In this case we remember only those inputs that support our beliefs, and forget those that don’t.
For instance, an average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned and is also exposed to 1,500 advertisement per day. Hence they cannot be expected to be aware of all these inputs, and certainly will not retain many.
Interpreting information is based on what is already familiar, on knowledge that is stored in the memory.

· Ability and Knowledge
Learning can be said to be changes in a person’s behavior caused by information and experience. Therefore to change consumers’ behavior about your product, you need to give them new information regarding the product like free sample etc.
When making buying decisions, buyers must process information. Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality.Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior.

· Attitudes
we can say that attitudes are knowledge and positive and negative feelings about an object or activity. It maybe tangible or intangible, and living or non living. Generally it seen that attitudes drive perceptions We learn attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm’s marketing strategy.
For instance, Honda says, “You meet the nicest people on a Honda”, dispelling the unsavory image of a motorbike rider, in the late 1950s. Changing market of the 1990s, baby boomers aging, and Hondas market returning to hard core. To change this they have a new slogan “Come ride with us”. Attitudes and attitude change are influenced by consumer’s personality and lifestyle. Again, we tend to screen information that conflicts with their attitudes and distort information to make it consistent and selectively retain information that reinforces our attitudes. But, bear in mind that there is a difference between attitude and intention to buy i.e., ability to buy.

· Personality
One way of explaining personality is all those internal traits and behaviors that make a person unique, keeping in mind the fact that uniqueness arrives from a person’s heredity and personal experience. Examples include:
· Workaholism
· Compulsiveness
· Self confidence
· Friendliness
· Adaptability
· Ambitiousness
· Dogmatism
· Authoritarianism
· Introversion
· Extroversion
· Aggressiveness
· Competitiveness.
Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers.

· Lifestyles
You may have observed that recently trends in lifestyles are shifting towards personal independence and individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives. For Example you buy healthy foods to maintain a healthy lifestyle.

· Opinion Leaders

Opinion leaders basically play the role of spokesperson etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Say, for example Sachin Tendulkar (Pepsi, Visa , Biscuit, Adidas etc.)

· Roles and Family Influences
Roles are things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:
· that many family decisions are made by the family unit
· consumer behavior starts in the family unit
· family roles and preferences are the model for children’s future family (can reject/alter/etc)
· family buying decisions are a mixture of family interactions and individual decision making
· family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages, each stage creates different consumer demands:
· bachelor stage
· newly married, young, no children...me
· full nest I, youngest child under 6
· full nest II, youngest child 6 or over
· full nest III, older married couples with dependant children
· empty nest I, older married couples with no children living with them, head in labor force
· empty nest II, older married couples, no children living at home, head retired
· solitary survivor, in labor force
· solitary survivor, retired
· Modernized life cycle includes divorced and no children

· Reference Groups
Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a person’s attitude and behavior.

Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!!

Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to) Honda, tries to disassociate from the “biker” group. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.

· Social Class
An open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture.

· Culture and Sub-culture
Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in India are good health, education, individualism and freedom. In today’s culture time scarcity is a growing problem. So as a result there is a change in meals. Different society, different levels of needs, different cultural values.

Culture can be divided into subcultures:
· Geographic regions
· Human characteristics such as age and ethnic background.

Culture effects what people buy, how they buy and when they buy.of a conservative frame of mind, he feels emotionally attached to his original grocery business and continues to operate it with enthusiasm. His business place has even come to be associated with a meeting venue for people of his generation to meet. His children are grown up and the eldest one, Rajesh, has just returned from abroad after completing his management education there. Ambitious by nature, Rajesh would like to expand his business fast. He feels that he needs to be ‘professional’ in his approach. In his option, his father’s way of dealing with people is outdated. Many a times, he feels irritated when his father’s old friends drop in at the shops and spend time talking with him. Rajesh feels that this type of casual come together is a waste of time. He would prefer to be more
‘business’ like. He would to deal with them as customers only, serving them with precision and in a methodical manner. He expects that his customer should appreciate this ‘modern’ way of doing business. He has, however, broached his inner feelings only in an indirect way to his father, and he found that this father believes in maintaining close personal links with his customers. Some of the customers have, anyhow, started noticing the change in the way in which Rajesh deals with them. They feel that the old ‘warmth’ of their relationship with the senior Panjwani is somehow missing and they are now less welcome at the shops.

Tuesday, 17 April 2018

Branch Transfer letter format for any BANK


From

            <your name>

<new address>

<phone Number>

 

 

To

            The Manager,

            <bank name>,

            <new branch, city>

           

 

Subj : Transfer of Savings Account# <account number>, <old branch, City>

 

Sir,

 

I am holding a savings bank account with your branch at <old branch, city>. I recently moved from <old city> to <new city> and for operational convenience, I would like to transfer my savings account to the new <new branch, city>.

 

Kindly transfer my savings account to <new branch, city>.

 

If you have any questions, kindly call me at <phone number>

 

 

<place>                                                Yours truly,

<date>

                       

                                                                                               

                                                            <name & signature of each joint account holder>

Monday, 16 April 2018

Fishbone or Ishikawa Diagram

The fishbone diagram identifies many possible causes for an effect or problem. It can be used to structure a brainstorming session. It immediately sorts ideas into useful categories.

When to Use a Fishbone Diagram

  • When identifying possible causes for a problem.
  • Especially when a team’s thinking tends to fall into ruts.

Fishbone Diagram Procedure

Materials needed: flipchart or whiteboard, marking pens.
  1. Agree on a problem statement (effect). Write it at the center right of the flipchart or whiteboard. Draw a box around it and draw a horizontal arrow running to it.
  2. Brainstorm the major categories of causes of the problem. If this is difficult use generic headings:
    • Methods
    • Machines (equipment)
    • People (manpower)
    • Materials
    • Measurement
    • Environment
  3. Write the categories of causes as branches from the main arrow.
  4. Brainstorm all the possible causes of the problem. Ask: “Why does this happen?” As each idea is given, the facilitator writes it as a branch from the appropriate category. Causes can be written in several places if they relate to several categories.
  5. Again ask “why does this happen?” about each cause. Write sub–causes branching off the causes. Continue to ask “Why?” and generate deeper levels of causes. Layers of branches indicate causal relationships.
  6. When the group runs out of ideas, focus attention to places on the chart where ideas are few.

Fishbone Diagram Example

This fishbone diagram was drawn by a manufacturing team to try to understand the source of periodic iron contamination. The team used the six generic headings to prompt ideas. Layers of branches show thorough thinking about the causes of the problem.
Fishbone Diagram Example
Fishbone Diagram Example
For example, under the heading “Machines,” the idea “materials of construction” shows four kinds of equipment and then several specific machine numbers.
Note that some ideas appear in two different places. “Calibration” shows up under “Methods” as a factor in the analytical procedure, and also under “Measurement” as a cause of lab error. “Iron tools” can be considered a “Methods” problem when taking samples or a “Manpower” problem with maintenance personnel.

 

Quality Management System in Service Industries

In every organization, both management and the general workforce tend to resist change, whether it be in systems, culture or environment. That is natural – people are usually happy to continue with what they have always done. The change brought about by the introduction of a quality management system (QMS) – particularly in service industries – is no exception. However, companies that resist this change will find that they become less effective, and thus less competitive, in markets where customers demand trouble-free products and services.
To address the resistance, it helps to look at the questions that stakeholders may have about QMS in their company:
  • “Why do we need to document a process?”
  • “Why do we need an organization chart?”
  • “Why do we need version control and document control?”
  • “Do we need QMS if we only have 100 or less employees?”
  • “Does QMS provide any internal efficiency or is it only to provide a competitive advantage?”
These are the questions that all stakeholders need answered before embarking on the journey of installing a quality management system in their company. In addition, there are other questions mainly for the management of the company. Here are two important ones:
  • Does leadership want a quality management system for some type of certification or does it really want the company’s work to have a systematic process-oriented approach?
  • Does leadership understand how the current “pain” areas can be minimized or eliminated if the company has more efficient processes?

A System for Developing or Improving Processes

Establishing a quality management system is not rocket science. The intent of any QMS is simply to provide a system for developing or improving processes through a structured approach, effective deployment and better control. Answering a couple of the stakeholders’ questions can help explain this and make the need for a quality management system more clear.
“Why do we need to document a process?” Some might argue that everyone knows the process and has been trained in how to do their work, so why document it? The response must be that in service industries, especially in a high-attrition environment like business process outsourcing (BPO), it is all the more imperative to have documented processes.
Documented processes help in the following ways:
  • Processes are optimized when best practices are documented.
  • Processes do not become person-dependent – any new employee knows how to do the work.
  • Key activities run smoothly when responsibilities and accountability is clearly assigned.
  • Defects are easier to capture and eliminate at the earliest stage.
  • Prescribed corrective actions can be taken as soon as defects occur.
  • Written changes in procedures and policies reduce ambiguity and increase change control in the environment.
  • Consistent process measures help gauge if everything is going well.
  • Better understanding of processes ensures compliance in service delivery.
The quality management system not only provides a structure and framework, it also ensures the rigor of an audit mechanism that enforces corrective action. Continuous improvement happens within all processes in a systematic manner.
“Why do we need an organization chart?” An organization chart outlines the support structure for every individual process and also gives the roles and responsibilities required for each of the blocks on the organization chart. The benefits are:
  • An organization chart allows clients to see the support structure for products or services.
  • The roles and responsibilities give a clear understanding of the job for the person who is new to the system.
  • The documentation of roles and responsibilities does not leave anything to interpretation that might vary from person to person.
  • The roles and responsibilities define the skills that are required to do a particular job.
  • Once the skill has been defined, then it can be verified to see if it is resulting in a high-performing individual.
Clearly, something as small as having an organization chart can bring a great deal of value and clarity to the system.

The Basis of Quality Management System

A quality management system works on eight key principles:
  1. Customer focus
  2. Strong leadership
  3. Involvement of people
  4. Process approach
  5. System approach
  6. Continuous improvement
  7. Decision making based on facts
  8. Creating value for the company, its clients and its suppliers
Many times companies embark on a methodology like Six Sigma, Lean Six Sigma or others to solve problems without realizing that these methodologies center on process improvement. For any improvement methodology to be successful, it is important to first have a process management and process measurement system. This helps in identifying defects and then, once a process is improved, a quality management system provides better control for sustaining outstanding performance.