How product mrp stops fmcg consumer from buying instantly
How does a consumer make a purchasing decision?
The brain sets a mind war begins with a set of replays and forwards.
What’s the purpose of it? Do I need it? How would it ease my life? How necessary it is?
This step helps in eliminating unnecessary, impulse, fascinating purchases.
How often would I use it?
Spending a few thousand rupees on something which you may use once in two years, and it’s not compulsory, isn’t that great a purchase.
Is it a compromise with my needs or necessary expenses? How much this purchase would affect my routine expenses?
Sometimes we make impulse purchases and at the time of making compulsory payments, like EMI’s, we beg from people.
Imagine yourself owning it for a while.
Would it matter after a few days? Would you still relish it? Or is it just a few days showpiece.
Estimate the cost of keeping the product, how deep a hole in your pocket would it make? How long would it affect your budget?
For example- Buying a show of the car with low mileage may cause years of struggle with expenses.
Based on your purchase experiences,how do consumers,make a purchasing decision?
Do fmcg consumers compare competing brands?
Do Customers evaluate quality, price, location, reviews, feedback, etc.?
That depends on what I am buying. A one dollar item will receive much less consideration than a pair of shoes for work, a suit, a good pair of shoes or boots or a car.
Some things I buy because the brand has always been a good value for the item, others depend on what I can afford – a Ford Fiesta or Ford Ecosport as opposed to a VW Jetta or Golf station wagon – including ongoing costs like fuel economy.
Is it possible to determine consumer purchasing behaviors based on their past selection of products?
Absolutely. You can draw a few conclusions about someone by their purchasing patterns. You can determine a persons location, marital status, age, ethnicity, religion and other characteristics which are important in determining their purchasing behaviors. Most of the time the conclusions are correct but occasionally they can be wrong. Especially, if the individual has been in an environment which is not associated with their ethnicity or identity. That factor right there can be misinterpreted; which will arrive at a very different conclusion
How can the results of consumer research benefit the consumer in making purchase decisions / deciding what to buy?
There’s no accounting for taste, and because “Consumer Reports” does their research and development on widely used & everyday Products, Appliances, Cars, Trucks, and Suv’s it takes the guesswork out of defective ones.
It gives the consumer the extra push towards a product that they had initial reservations about before purchasing. Unfortunately not every decision is foolproof, but it makes for some interesting conversation.
Consumer Reports also has a section about recalls and defective items that every consumer should be kept apprised of in the event of a “crisis”.
The facts are that consumers make their decisions based on previous knowledge or because they read up on it in Consumer Reports to determine if they ought to buy or not.
That’s the ultimate question here…Review Vs versus Non-Review.
How much do emotions influence people’s buying decisions?
Way more than we’re willing to admit. Here’s one trick many have learned:
Many see it. Want it! and got to have it!!! Instead, many browse more, maybe even go to another store, then “check” their hunger. What will happen (really, now) if they don’t buy “it”?
Nine times out of ten, this will enable many to distinguish their emotional needs from the practical ones. It doesn’t mean they won’t still buy it, just that makes them know why.
How much affected are you with greeters at a store or work place and does that change your shopping behavior?
Many shops greet each customer who walks in the door.
Most people, even when directly greeted, don’t notice. Others replied offhandedly.
Others commented on how our store was the first time someone said hello to them.
Once a secret shopper who was on vacation with her family. When she came in , she stopped at the desk to comment on how well we were doing. She said greeting each customer actually increases sales. She said it almost subconsciously said to the customer, this is a nice store.
Does the product price influence purchasing decisions?
Apparently so. That’s why items are prices at £9.99 rather then £10. Although they’re effectively the same price, people think they’re paying less at £9.99.
How does gender affect consumers’ buying behavior?
There are an infinite number of factors that affect consumer buying behaviour.
Some are significant, some are contributory, some are irrelevant, depending on the product category, the situation, the product type, the market conditions, the market segment, the industry, on politics, economics, socio-cultural issues, technological status, change, legality, ecological concerns and circumstances, ethics, attitudes, opinions, beliefs, urgency, and demographics, that include education, income, religion, peer group and gender
Why do consumers buy more at low prices?
That depends on the country. In Europe it’s more likely for people to buy one great quality shirt at a high price and wear it a lot. Rest of the world tends to buy a package of 3 poor quality shirts at a cheap price and think of all the money saved.
What are the Critcal levels of consumer behaviour prior a buying decision?
Four types of consumer buying behavior:
Routine response
Limited decision making
Extensive decision making
Impulsive buying
There are three major categories of consumer decisions – nominal, limited, and extended – all with different levels of purchase involvement, ranging from high involvement to low involvement. The types of consumer decisions exist on a purchase involvement continuum.
There are four type of consumer buying behavior:
Complex buying behavior.
Dissonance-reducing buying behavior.
Habitual buying behavior.
Variety seeking behavior.
Finally, the 5 stages which a consumer often goes through when they are considering a purchase:
Problem or need recognition
Information search
Evaluation of alternatives
Purchase
Post-purchase behavior.
Consumer buying behaviour are also complex at times to understand. The above pictorial representation depicts that.
How does price elasticity of demand impact consumer purchasing decisions?
Price elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to a change in its price. It can impact consumer purchasing decisions in the following ways:
Elastic demand: When the demand for a good or service is elastic, a small price change will result in a large change in the quantity demanded. In this case, consumers are sensitive to price changes and are likely to reduce their purchasing if the price increases.
Inelastic demand: When the demand for a good or service is inelastic, a small price change will result in a small change in the quantity demanded. In this case, consumers are less sensitive to price changes and are likely to continue purchasing the good or service even if the price increases.
Unit Elastic demand: When the demand for a good or service is unit elastic, a small price change will result in an equal change in the quantity demanded. In this case, consumers are moderately sensitive to price changes and their purchasing behavior may change depending on the size of the price change.
When demand is elastic, firms are likely to be more cautious about raising prices, as it could lead to a significant drop in revenue. On the other hand, when demand is inelastic, firms have more flexibility to raise prices without losing too many customers.
In general, consumer purchasing decisions are affected by the price elasticity of demand, as it determines how sensitive they are to changes in price. Consumers may reduce their purchasing or switch to substitutes if the price of a good or service increases, particularly if the demand for that good or service is elastic.
Consumer behavior is shifting dramatically. What does this mean for the future of shopping?
There is always changes happening with shopping. One thing that doesn’t change is that people will need to buy products.
With the current economic factors, people will be going to more affordable stores and second head shops rather the more expensive stores.
Online shopping is always going to be one way people shop, but isn’t the best way to get what you need and delivery can be more than the cost to get to the high street.
What is the difference between customers and consumers, and what is their importance?
How does consumer psychology impact the way products are priced?
Consumer psychology plays a significant role in the way products are priced. Marketers and pricing strategists use a variety of psychological principles to influence consumer behavior and maximize profits.
For example, consumers are often willing to pay more for a product that they perceive as being high quality or exclusive. Marketers may use this principle by positioning their product as a luxury item, and setting a high price point to reflect this.
Pricing strategies such as anchoring and framing can also influence consumer perception of value. Anchoring occurs when a consumer uses the first price they see as a reference point, and all other prices are compared to it. Framing involves presenting a price in a certain way (e.g., as a discount or as a premium) to influence the consumer’s perception of value.
Additionally, consumer psychology research has shown that consumers are more likely to make a purchase when the price ends in a “9” or a “5,” as these prices are perceived as being more attractive. Marketers may take advantage of this by setting prices that end in these digits.
What is important in understanding consumer behavior from a marketing perspective?
Overall, consumer psychology plays a significant role in the way products are priced, and marketers use a variety of psychological principles to influence consumer behavior and maximize profits.
How do branded products affect consumer buying decisions?
Branding is immensely important for any business. Among aspects such as instant recognition, it can truly tilt the consumer decision firmly in favor of a product. This is a complex topic that combines elements of consumer psychology with the tenets of marketing. In trying to invest in the branding for your Startup and small business, let us help you answer, how does branding impact consumer purchase decisions.
Brands have an aspirational element about them. Prestigious and established brands also tend to have this reflected in their price. Superlative branding makes products an object of desire in unique ways. Our desire to own an expensive iPhone stays put, even though one could argue that plenty of phone perhaps could help us at much lower costs. Consumers attach a social token to products and services. A Porsche makes people view you in a different light. It also lets the brand charge you a higher premium.
Brand Alter Buyer Intentions
A strong brand can sway consumer behavior favorably. For instance, there are two products with similar features and performance. One is a own brand and the other is not. Which one would you choose? Brands come with back stories associated with them. Brands have follower-ship and build trust over a time. You know about them, their founders, their history and often someone in your friend circle has used the products too. When you see their logo you instantly recognize the brand and remember other products of that brand that you used before (it’s the Halo-effect!). Just like in the previous example we know all about Steve Jobs and instantly recognize the half eaten Apple in the logo which adds to the aura of the brand. There is an element of trust between you and the brand. The non-branded product on the other-hand does not enjoy this luxury.
Brands Fit in the Buyer’s Self-concept
Branding also plays an important part by aligning itself with the buyers’ self-concept. Every individual has a certain image about himself or herself in their mind. When they purchase something, they would like those items to conform to their self-concept. For instance a teenager has a certain sense of style developed through personal preferences and external influences. Now the teenager would seek to buy a brand that he thinks has the same personality as him. Brands need to first understand their target segment and then try to develop a personality that is similar to the self-concept shared by their target consumers.
Brands Earn Loyalty
In the long run, people develop a strong relationship with some brands. For instance if somebody is eating a certain brand of cereal since childhood, they will have an emotional connection with that brand. This sense of nostalgia will keep them with the brand even if better options are available. It is a complex combination of trust and emotional aspects. This is exactly what we know as brand loyalty and you need to have a strong brand in the first place to develop such a loyalty. Any new business should aspire to and work towards building such loyalty.
How does the buyer make purchasing decisions?
Based on their needs, jobs to be done/user experience, and sensibilities.
A person buying a luxury car wants the right spec, features, performance, luxuriousness for the money. If a person wants entry level prestigious car that they bring to clubs, fancy events they want a mercedes or audi. If the person wants a more quality product and less of a prestigious brand they go for a lexus. If they want aggressive performance they go for Acura or Bmw.
Each customer profile is different, and has different needs, jobs to be done/user experience, and sensibilities. If they want reliable luxury, decent mileage, reasonable performance they want Lexus. If it is an aggressive driver it is likely the Acura or BMW.
What are rules on maximum retail price (MRP) of any product?
MRP is arrived after adding exfactory price + manufacturer’s profit other costs + add freight charges + GST +distributor margin +dealer margin . In a competitive market the MRP of various brands is generally comparable .
This may not be the case with cars or trucks where they don’t have a MRP.
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