1. CONSUMER BEHAVIOR
CONSUMER PERCEPTION ABOUT PRICE, QUALITY AND BRAND
Presentation by:
Srushti Rane
Deboshree Roy
Bhushan Shewale
Veer Kataria
TYBAMMC (E)/ B
2. Introduction to consumer behavior
•DEFINITION:
According to the American Marketing Association, consumer behavior
can be defined as "the dynamic interaction of affect and cognition,
behavior, and environmental events by which human beings conduct the
exchange aspects of their lives."
3. Introduction to consumer behavior
•MEANING:
Consumer behaviour entails "all activities associated with the purchase, use and
disposal of goods and services, including the consumer's emotional, mental and
behavioural responses that precede or follow these activities." The term consumer
can refer to individual consumers as well as organisational consumers, and more
specifically, "an end user, and not necessarily a purchaser, in the distribution chain
of a good or service." Consumer behaviour is concerned with:
• purchase activities: the purchase of goods or services; how consumers acquire
products and services, and all the activities leading up to a purchase decision,
including information search, evaluating goods and services, and payment
methods including the purchase experience
• use or consumption activities: concerns the who, where, when, and how of
consumption and the usage experience, including the symbolic associations and
the way that goods are distributed within families or consumption units
• disposal activities: concerns the way that consumers dispose of products and
packaging; may also include reselling activities such as eBay and second-hand
markets
4. Introduction to consumer behavior
Consumer responses may be:
• emotional (or affective) responses: refer to emotions such as feelings
or moods,
• mental (or cognitive) responses: refer to the consumer's thought
processes, their
• behavioural (or conative) responses: refer to the consumer's
observable responses in relation to the purchase and disposal of goods
or services.
5. Factors that determine consumers’ behaviour
• CONSUMER BEHAVIOR is influenced by many different factors. A marketer should try to
understand the factors that influence consumer behavior. Here are 5 major factors that influence
consumer behavior:
1. PSYCHOLOGICAL FACTORS : Human psychology is a major determinant of consumer
behavior. These factors are difficult to measure but are powerful enough to influence a buying
decision.
• Some of the important psychological factors are:
• Motivation - When a person is motivated enough, it influences the buying behavior of the person.
• Perception - Customer perception is a process where a customer collects information about a
product and interprets the information to make a meaningful image of a particular product.
• Learning - When a person buys a product, he/she gets to learn something more about the product.
Learning comes over a period of time through experience. A consumer’s learning depends on skills
and knowledge.
• Attitudes & Beliefs - Consumers have certain attitudes and beliefs which influence the buying
decisions of a consumer. Based on this attitude, the consumer behaves in a particular way towards
a product.
6. Factors that determine consumers’ nehaviour
2. SOCIAL FACTORS : Humans are social beings and they live around many
people who influence their buying behavior. Humans try to imitate other humans
and also wish to be socially accepted in the society. Hence their buying behavior is
influenced by other people around them. These factors are considered as social
factors. Some of the social factors are:
• Family - Family plays a significant role in shaping the buying behavior of a
person. A person develops preferences from his childhood by watching family buy
products and continues to buy the same products even when they grow up.
• Reference Groups - A reference group is a group of people with whom a person
associates himself. Generally, all the people in the reference group have common
buying behavior and influence each other.
• Roles and Status - A person is influenced by the role that he holds in the society. If
a person is in a high position, his buying behavior will be influenced largely by his
status. A person who is a Chief Executive Officer in a company will buy according
to his status while a staff or an employee of the same company will have different
buying pattern.
7. Factors that determine consumers’ behaviour
Other factors are :
• Cultural Factors which includes Culture, Subculture and Social Class
• Personal Factors which includes Age, Income, Occupation and
Lifestyle
• Economic Factors which includes Personal Income, Family Income,
Consumer Credit, Liquid Assets and Savings
8. Introduction to HUL
With nearly 90 years of heritage in India, Hindustan Unilever Limited (HUL) is
India’s largest fast-moving consumer goods company. On any given day, nine out of
ten Indian households use one or more of our brands, giving us a unique opportunity
to build a brighter future. We are known for our great brands, the positive social
impact we create and our belief in doing business the right way.
HUL works to create a better future every day and helps people feel good, look good
and get more out of life with brands and services that are good for them and good
for others.
With 50+ brands spanning categories such as fabric solutions, home and hygiene,
life essentials, skin cleansing, skincare, hair care, colour cosmetics, oral care,
deodorants, tea, coffee, ice cream & frozen desserts, foods and health food drinks,
the Company is a part of the everyday life of millions of consumers across India.
HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food,
Home Care, Personal Care and Refreshment products with sales in over 190
countries.
9. Introduction to HUL
Brand
• Lakmé entered the list of Company’s Rs 1,000+ crore brands last year. Skin
Cleansing growth was led by the premium part of the portfolio- Dove, Pears, and
Hamam. The freshness variants include Lifebuoy, Lux, and Liril.
• Haircare Segment has TRESemmé, Dove and Indulekha. Dove became India’s
No.1 haircare brand. Dove shampoo and conditioner range was relaunched with an
increased level of Keratin Actives for damage repair.
• Indulekha entered the shampoo category and led the charge in the naturals
segment in Haircare. Brylcreem launched an exclusive range of men’s grooming
products for hair and beard – a first for the Company.
• Oral Care Company relaunched CloseUp and Pepsodent with a refreshed
proposition and communication. With the launch of LEVER Ayush and natural
variants in CloseUp.
10. Introduction to HUL
Product Line:
• Fabric Wash,
• Household Care,
• Purifiers,
• Personal Wash,
• Skin Care,
• Hair Care,
• Colour Cosmetics,
• Oral Care,
• Deodorants,
• Beverages,
• Ice Cream & Frozen Desserts and Foods
11. Brand
• The Performance the benefits that our vision and strategy deliver,
translate into growth-oriented performance for shareholders and the
society at large.
homecare Beauty and personal care foods and refreshment others
12. • NON-FINANCIAL PERFORMANCE* 2020: 54% 2019: 58% Reduction in
water consumption in the manufacturing operations compared to
2008 baseline.
• 2020: 59% 2019: 63% Reduction in total waste generated from
factories compared to 2008 baseline
• SUSTAINABLE SOURCING 2020: 67% 2019: 78% Tea sourced from
sustainable sources for Unilever brands HEALTH AND WELLBEING
2020: >154 million 2019: >152 million People reached cumulatively
through our Water, Sanitation and Hygiene (WASH) initiatives
13. Quality
MARKETING STRATEGY:
• Unilever is globally notable. This is on the grounds that Unilever
keeps up a severe principle and utilization of its logo and different
images, designs and so on.
• All the brands of Unilever have separate marking systems, however,
each has a Unilever logo, plan, philosophy and message.
14. Customer reviews about Quality:
• Hindustan unilever is one of the most old and reputed FMCG of our country. This company is very
well known in every house hold of India across rural and urban region. This company seen many
up and down during this large period of time but always comes out as bigger and better. One can
find their products at every general departmental store. Everyone or majority of us during his daily
use surely consumes one or more of their products.
• Hindustan unilever makes product right from soap, biscuits, hair oils, powder etc. All of their
products follows Indian quality norms and standards. What amazes me is that they have developed
well researched R& D for each of these products exclusively. This is huge achievement and must
needed thing for any FMCG which is operating at such vast scale. It helps in quality control,
quality assurance along side with developing new products to target the future need of consumers.
• This approach makes them special. If we look in depth there are not rapid change at top
management and executive levels. Which spread sense of confidence shown by stakeholders and
owners of the company. Coming back to their products, the pricing is very attractive and they
understand the mindset of consumers very well. They keep on bringing offers and festive bonanza
time to time.
• They have almost all top leading public faces and Bollywood celebrities on their board for
advertising.
15. Price
• Since HUL is a company selling mostly FMCGs, they cannot set the
price too high
• Prices of products are set in such a way that it can be affordable by an
average Indian middle class household for repeat purchases.
• The top selling brands from each product category are as follows:
1. Food : Knorr
2. Homecare: Surf excel
3. Personal care: Clinic plus
16. Company’s financial portfolio
• As of 2019, Hindustan Unilever's portfolio had 44 product
brands in 14 categories. The company has 18,000 employees
and clocked sales of ₹34,619 crores in FY2017–18.
• Total revenue: ₹52,704 crore
• Total assets: ₹70,517 crore
• Total equity: ₹49,061 crore