Consumer Behavior
Section A
Submitted to:
Mr. Farhan Bukhari
Submitted by:
Acknowledgement
Perfection was the watchword we had in our mind when we started working on this
project. However, people generally agree that man can only strive to approach excellence
but never actually achieve it. Exquisite perfection is rather a trait of God, and by his
grace, we have tried very hard to make this report an excellent one.
We would like to thank Mr. Farhan Bukhari for his assistance, guidance & instructions;
he gave to us in the friendliest manner through out this report, which could not have been
successful without his dedicated attention & guidance.
We tried out our best to collect appropriate information for the completion of this report.
We are grateful to our teacher for providing us such a practical oriented chance to explore
new dimensions and enable us to understand the latest world business situations.
Once again, we are thankful to all the people who have been involved in the completion
of this report directly or indirectly. This report is a combined effort of all the members of
our group, namely
Acknowledgement -2-
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Table of Contents
ACKNOWLEDGEMENT .................................................................................................. 2
EXECUTIVE SUMMARY ................................................................................................ 4
INTRODUCTION .............................................................................................................. 5
POSTPURCHASE BEHAVIOUR ................................................................................... 10
POSTPURCHASE EVALUATION ................................................................................. 12
DECISION CONFIRMATION.............................................................................................. 14
EXPERIENCE EVALUATION ............................................................................................. 14
CONSUMER SATISFACTION/DISSATISFACTION ................................................... 15
POSSIBLE OUTCOMES ................................................................................................. 17
CONCLUSION ................................................................................................................. 18
SURVEY ANALYSIS ...................................................................................................... 19
SURVEY ANALYSIS CONCLUSION ........................................................................... 24
QUESTIONNAIRE ON POST PURCHASE EVALUATION OF SHAMPOOS ........... 25
EXECUTIVE SUMMARY
As consumers use products, particularly during a trail purchase, they evaluate its
performance in light of their own expectations. There are three possible outcomes of
these evaluations that are actual performance matches expectations, leading to a neutral
felling. Secondly performance exceeds expectations causing what is known as positive
disconfirmation of expectations which leads towards satisfaction. Third one is
performance is below expectations causing negative disconfirmation of expectations and
satisfaction are closely linked that is consumer tend to judge their experience against their
expectations when performing a post purchase evaluation.
The objective of this study is to determine the extent of post purchase behavior amongst
students. In order to accomplish the objectives of the study, we made a self-administered
questionnaire to cater our objective.
A shampoo, whenever applied, leaves an imprint upon the attitude of the consumer and
freshens him/her to be prepared for what is in store for the being during the day.
Abstract -4-
Muhammad Ali Jinnah University, Karachi Consumer Behavior
INTRODUCTION
Once customers or prospects are motivated to satisfy their needs and wants, the purchase
process begins. Based on certain standards they have established in their own minds, they
evaluate various alternative products or services. If none of the alternatives meets their
evaluation criteria, they may experience cognitive dissonance in the form of post
purchase doubt and concern or anxiety about the wisdom of the purchase. This is known
as post purchase dissonance/cognitive dissonance. It is most likely to occur among
individuals with a tendency to experience anxiety, after an irrevocable purchase, when
the purchase was important to the consumer, and when it involved a difficult choice
between two or more alternatives. An important role of marketers is to help people cope
with dissonance by reinforcing the wisdom of their purchase decision.
Today, customer are more pertinent than ever because customers are far less loyal to
brands and sellers than in the past, because buyers are more inclined to look for the best
deal, especially in the case of poor after-the-sale follow-up. More and more buyers favor
building a relationship with sellers.
Introduction -5-
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Buying Behavior
Consumer decision making would vary with the type of buying decision. You would
agree that decision to buy toothpaste, a tennis racket; personal computer and a car are all
different.
There are 4 types of buying behavior based on the degree of buyer involvement and the
degree of difference between buyers: -
Complex buying behavior: - This type of buying behavior is involved when the
product is expensive, bought infrequently. E.g.: Automobile
The consumer will spend lot of time in discussing and planning about the purchase of
such a product.
Habitual buying behavior: - This type of buying behavior is for the product, which
have low involvement and the absence of significant difference between the brands.
These products are frequently purchased. E.g.: When you want to buy product like
salt you dont even think when you go to store whatever brand is available you would
have pick it up.
Variety seeking buying behavior: - This type of buying behavior is involved when
low involvement is there but there are significant differences between the brand.
E.g.: Think about cookies, you may want to change the cookies that you had last time
not because they were bad but you want to change the taste.
NEED IDENTIFICATION: the buying process starts when the buyer recognizes a
problem or need, this need could be because of internal or external stimulation.
INTERNAL STIMULATION: say when we are hungry we may want to eat something.
EXTERNAL STIMULATION: say when we are passing through a bakery shop you
smell the freshly baked biscuits based on this you may want to buy, to consume biscuits.
INFORMATION SEARCH: Once the need has been identified the consumer would
look for more information about the product. This information he may get from personal
sources {family friends, neighbors, etc.} or commercial sources {advertising, sales
person, dealers, displays}
POST PURCHASE BEHAVIOUR: Once the consumers have purchased the product,
he would either satisfied or dissatisfied. If the consumer is satisfied, he will tell his
friends about the same and as such a better word of mouth is spread of the product. But
in case the consumer is dissatisfied he will tell to all his friends and associates about the
dissatisfaction that he had after using or consuming the given product.
POSTPURCHASE BEHAVIOUR
After purchasing the product, the buyer will experience some level of satisfaction or
dissatisfaction. Marketers must monitor post purchase satisfaction, post purchase actions
and cognitive dissonance. The buyers satisfaction or dissatisfaction will influence future
behavior. A satisfied buyer will purchase the product again and recommend it to others.
Dissatisfied buyers will respond differently. They may stop using the product, return it, or
take some form of public action.
When people recognize inconsistency between their values or opinions and their
behavior, they tend to feel an inner tension or anxiety called cognitive dissonance (post
purchase doubt). For example, suppose a consumer spends half his monthly salary on a
new high-tech stereo system. If he stops to think how much he has spent, he will probably
feel dissonance. After important decisions, they may feel a little insecure about whether
the sacrifice is worth it. Such feelings are called buyers remorse or post purchase
dissonance.
The importance of the decision to the consumer. The more important the decision, the
more likely dissonance will result.
The intensity of the anxiety will be greater when any of the following conditions exist:
The decision process does not end with the purchase - not for the buyer at least! A
product, once purchased, yields certain levels of satisfaction and dissatisfaction. Purchase
satisfaction comes from receiving benefits expected, or greater than expected, from a
product. If buyers experiences from the use of a product exceed expectations, they are
satisfied, but if experiences are below expectations, customers are dissatisfied.
POSTPURCHASE EVALUATION
When the product has been purchased, consumers formally or informally evaluate the
outcome of the purchase. In particular, they consider whether they are satisfied with the
experience of making the purchase and with the good or service they bought. A consumer
who repeatedly has favorable experiences may develop loyalty to the brand purchased.
Also, consumers may tell their family, friends, and acquaintances about their experiences
with buying and using products. Cognitive dissonance/post purchase dissonance may
result because of the difficulty or even impossibility of fully considering every possible
alternative course of action.
Consumers use a product, particularly during a trial purchase; they evaluate its
performance in light of their own expectations. There are three possible outcomes of
these evaluations i.e. actual performance matches expectations, leading to a neutral
feeling; performance exceeds expectations, causing what is known as positive
disconfirmation of expectations (which leads to satisfaction); and performance is below
expectations, causing negative disconfirmation of expectations and dissatisfaction. For
each of these three outcomes, consumers expectations and satisfaction are closely
linked; that is, consumers tend to judge their experience against their expectations when
performing a post purchase evaluation.
Post-buying assessment involves a customers evaluation of the performance of the
product or service, in relation to the criteria, once it has been bought, i.e. it is the
customers perception of the outcome of the consumption process. The post-buying phase
involves different forms of psychological processes that customers can experience after
buying something. After buying something, the customer discovers something about a
product or service, stores this new knowledge in long-term memory, modifies relevant
attitudes, and is ready for the next decision process with an improved base of knowledge.
Decision Confirmation
Experience Evaluation
Following purchase, the product or service is actually consumed. Marketers need to know
whether customers consume it routinely or while consciously evaluating it. This depends
on the level of enduring involvement in the product or service and the determination of
the preference that caused this purchase.
Consumer Satisfaction/Dissatisfaction
Customer satisfaction is the key outcome of the marketing process. It is an end in itself,
but it is also the source of word-of-mouth recommendations and thus can stimulate
further purchases. There is considerable evidence to suggest that buying service
represents a major risk to the consumer, and this makes word-of-mouth recommendation
very valuable. But how is this satisfaction created? Several approaches have been
suggested, but perhaps the simplest and most powerful is the formation of a consumer
satisfaction/dissatisfaction model.
Consumer Satisfaction/Dissatisfaction - 15 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Whether or not they actively evaluate a product during product use or consumption, users
do experience the usage outcome. This outcome is characterized as satisfaction or
dissatisfaction.
Consumer Satisfaction/Dissatisfaction - 16 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Possible Outcomes
The third response is, of course, loyalty. Consumer loyalty means the consumer buys the
same brand repeatedly. It is reasonable to assume that loyal consumers are more likely to
be satisfied. However the converse is not necessarily true, as some researchers have
found that not all satisfied consumers are loyal. Some consumers will still exhibit a
switching behavior despite being satisfied with the current brand.
Post purchase evaluation focuses on whether customers have received good value.
Customers may consider the benefits received by purchasing against the costs of making
the purchase. When the benefits significantly compensate the costs, customers perceive
high value and are satisfied. The more satisfied customers are, the more likely they will
become loyal to the brand and the seller, and the more likely the seller is to establish a
long-term relationship with the customer. In other words, customer value and satisfaction
influence future buying decisions.
A key feature of the post purchase evaluation is cognitive dissonance. During the post
purchase period, the consumer may enjoy the satisfaction of the purchase and thereby
receive reinforcement for the decision. Or the purchase may turn out to be unsatisfactory
for some reason. In either case, feedback from the post purchase evaluation updates the
consumers mental files, affecting perceptions of the brand and similar purchase
decisions in the future.
Conclusion
Marketers should focus on the needs of the consumers and their satisfaction. Today is the
era of global advancement, and technological advancement has paved new ways of doing
things. Hence, it should be kept in mind regarding the trade or business. Consumer
satisfaction is itself an asset. It hold tremendous importance in itself. More the degree of
satisfaction of consumer is, more are the links of further strengthening the business lines.
Marketers should also reinforce the buyers attitudes about the product at all times, even
after the sale has been made. Companies should form and focus on the effective research
patterns to continuously evaluate the consumer behavior and then align their strategies
accordingly.
Conclusion - 18 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Survey Analysis
Question # 1
35
30
25
20
15 Number of people
10
5
0
Male Female
Question # 2
45
40
35
30
25
20 Number of people
15
10
5
0
12 to 17 18 to 25 25 to 35
Survey Analysis - 19 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Question # 3
14
12
10
6 Number of people
4
0
P S D H & HE GF PP O
S
Question # 4
18
16
14
12
10
8 Number of people
6
4
2
0
2/day 1/day 1/ 2day 1/ 3day
Survey Analysis - 20 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
Question # 5
12
10
6
Number of people
4
0
DDH RHF TO VWH D O
Question # 6
18
16
14
12
10
8 Number of people
6
4
2
0
L&S DF L S JC
Question # 7
Survey Analysis - 21 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
25
20
15
Number of people
10
0
E G S A
Question # 8
90
80
70
60
50
40 Number of people
30
20
10
0
HC IM NRC TSB
Question # 9
Survey Analysis - 22 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
45
40
35
30
25
20 Number of people
15
10
5
0
Yes LaL HB
Survey Analysis - 23 -
Muhammad Ali Jinnah University, Karachi Consumer Behavior
This survey helped us in evaluating the true essence behind the importance of a shampoo
in the life of an individual, especially pertaining to our age.
We did a random sample, 31 male and 19 female individuals solved the survey
questionnaire out of which 42 individuals were from the 18 to 25 years age group. The
results that we received were astonishing.
Most of the people who filled up our questionnaire used either Sunsilk, Head n Shoulders
or some international brand. Sunsilk and Head n Shoulders were found to be of more use
as both the brands catered different issues pertaining to hair.
Most of the shampoo users use shampoo once a day or once in three days, pertaining to
the genre of their hair. People with hair that are sensitive to chemicals used in the
shampoo consume once in three days whereas people whose hair lose the essence and
bounce and life use it once a day which is generally at the beginning of the day when a
person feels the need to be fresh and energetic.
The basic problems faced by individuals are dry and damaged hair and regular hair-fall.
Once these individuals actually use their favorite product, they feel relieved from the
problems that they are encountering. In fact, these issues actually lead to the purchase of
the product. Therefore, the motivation behind the purchase of the product is actually the
results they want to feel. Their experience is quite satisfactory and even urges them to re-
purchase the product again, irrespective of the fact that a number of people are not
regular customers of one single brand.
This result is actually driven by the fact that these users use the shampoo till the very last
drop. All users of a shampoo require solution for their problems and nothing else, be it
lack of shine, life or dandruff issue.
5- Are there any problems that you face regarding your hair?
O Dry and damaged hair O Regular hair-fall O Too Oily
O Very weak hair O Dandruff O Others
8- What are the chances that you would purchase the same shampoo again?
O High Chances O I might think to
O I am not a regular customer of one single brand
O I will try something better next time
10- What are your suggestions for the shampoo that you would love to use?
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Questionnaire - 25 -