Construct | Items | Source |
---|---|---|
2 | , , (1992) | |
Q1. My investment decisions are influenced by an increase in income | ||
Q2. Change in my income shifted my investment choices from financial assets (shares, bonds, mutual funds, LIC, etc.) to other forms of assets (real estate, gold, etc.) | ||
13 | (2016), , , (2014) | |
Q1. Increase in income has led to more spending (extravagance) | ||
Q2. Rise in income has encouraged me toward more online shopping | ||
Q3. With the increase in my income, I have started buying more green/ eco-friendly products (LED, solar power, wool footwear and coffee cups, etc.) | ||
Q4. Increase in income has made me more brand-conscious | ||
Q5. With an increase in income, I shifted toward premium brands | ||
Q6. As my income increased, I shifted toward higher quality, high priced products in following cases: | ||
(a) With the rising income, I aspire to own a luxury car | ||
(b) With the rising income, I aspire to own a latest model TV in comparison to old versions | ||
(c) With more income in my pocket, I prefer to own fully automatic washing machine | ||
(d) With a better spending power, I prefer to own a dishwasher | ||
Q7. Rising income affects spending in various categories differently: | ||
(a) Expenditure has increased on high-frequency items (such as food and beverages, personal-care products, entertainment, telecom products, etc.) | ||
(b) Expenditure has increased on medium-frequency items (apparel, home furnishings, etc. | ||
(c) Expenditure has increased on low-frequency items (such as consumer durables, car and appliances) | ||
Q8. As my income increases, I like to go on a big spending spree more often | ||
8 | (2017) | |
Q1. As my income increases, I follow the latest trends and fashion | ||
Q2. With an increase in income, I prefer to travel in my own car rather than public transport | ||
Q3. With more money in my pocket, I can hire full time domestic help | ||
Q4. With an increase in income, I prefer to spend more on comfort than on asset creation | ||
Q5. Increased income encouraged me to own a house | ||
Q6. With a rise in income, I aspire for international vacations | ||
Q7. As my income increases, immediate gratification (pleasure, ego satisfaction) is becoming more important than asset creation | ||
Q8. With more purchasing power, I prefer buying imported products rather than products made in India |
Reliability and validity
Cronbach's alpha | CR | AVE | ||
---|---|---|---|---|
IH | 0.688 | 2 | 0.86 | 0.52 |
B/SH | 0.913 | 13 | 0.71 | 0.55 |
LS | 0.819 | 8 | 0.85 | 0.46 |
Demographic statistics
Demographic variables | Frequency | Percentage | Median | SD | |
---|---|---|---|---|---|
21–30 | 216 | 38.7 | 1.93 | 2.00 | 0.94 |
31–40 | 212 | 38.0 | |||
41–50 | 82 | 14.7 | |||
51–60 | 48 | 8.6 | |||
Male | 392 | 70.3 | 1.29 | 1.30 | 0.45 |
Female | 166 | 29.7 | |||
Undergraduate | 106 | 18.5 | 2.20 | 2.00 | 0.72 |
Graduate | 238 | 42.7 | |||
Other | 217 | 38.9 | |||
Category I: | |||||
4,50,000–9,00,000 (US$ 6391 –US$ 12783) | 414 | 74.2 | 1.31 | 1.00 | 0.57 |
Category II: | |||||
9,00,000–15,00,000 (US$ 12783–US$ 21305) | 111 | 19.9 | |||
Category III: | |||||
15,00,000–25,00,000 (US$ 21305–US$ 35508) | 33 | 5.9 | |||
Service | 385 | 69.0 | 1.38 | 1.00 | 0.61 |
Business/Selfemployed | 132 | 23.7 | |||
Homemaker | 41 | 7.3 | |||
Married | 402 | 72.0 | 1.27 | 1.00 | 0.44 |
Unmarried | 156 | 28.0 |
df | -value | Partial Eta squared ( ) | ||
---|---|---|---|---|
IH | 2,555 | 9.18 | 0.000 | 0.032 |
B/SH | 2,555 | 4.03 | 0.018 | 0.014 |
LS | 2,555 | 3.63 | 0.027 | 0.013 |
Post hoc results
IH | B/SH | LS | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Income group ( ) | Income group ( ) | Mean difference | SE | Sig. | MD | SE | Sig. | MD | SE | Sig. |
Category I: 4,50,000–9,00,000 | Category II | 0.15 | 0.09 | 0.28 | 0.20 | 0.09 | 0.06 | 0.22 | 0.08 | 0.02 |
Category III | −0.63 | 0.16 | 0.00 | −0.22 | 0.15 | 0.31 | 0.022 | 0.14 | 0.98 | |
Category II: 9,00,000–15,00,000 | Category I | −0.15 | 0.09 | 0.28 | −0.20 | 0.09 | 0.06 | −0.22 | 0.08 | 0.02 |
Category III | −0.78 | 0.18 | 0.00 | −0.42 | 0.16 | 0.03 | −0.20 | 0.15 | 0.39 | |
Category III: 15,00,000–25,00,000 | Category I | 0.63 | 0.16 | 0.00 | 0.22 | 0.15 | 0.31 | −0.02 | 0.14 | 0.98 |
Category II | 0.78 | 0.18 | 0.00 | 0.42 | 0.16 | 0.03 | 0.20 | 0.15 | 0.39 |
AI | IH | B/SH | LS | |||
---|---|---|---|---|---|---|
SD | SD | SD | ||||
4,50,000–9,00,000 | 3.60 | 0.94 | 3.53 | 0.84 | 3.64 | 0.76 |
9,00,000–15,00,00 | 3.45 | 0.96 | 3.33 | 0.90 | 3.41 | 0.84 |
15,00,000–25,00,000 | 4.24 | 0.61 | 3.75 | 0.69 | 3.61 | 0.61 |
Total | 3.61 | 0.94 | 3.50 | 0.85 | 3.59 | 0.78 |
Regression results
IH | B/SH | LS | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Variable | Δ | Δ | Δ | Δ | Δ | Δ | |||||||||
Step 1 | 0.016 | 0.016 | 4.55 | 0.048 | 0.048 | 13.86 | 0.034 | 0.034 | 9.89 | ||||||
Gender | −0.09 | −0.22 | −0.19 | ||||||||||||
Employment | −0.07 | 0.03 | 0.03 | ||||||||||||
Step 2 | 0.026 | 0.01 | 4.01 | 3.30 | 0.061 | 0.013 | 9.44 | 4.6 | 0.043 | 0.009 | 8.24 | 4.79 | |||
Gender | −0.08 | −0.22 | −0.19 | ||||||||||||
Employment | −0.07 | 0.03 | 0.03 | ||||||||||||
Income | 0.07 | 0.03 | −0.09 |
Note(s) : * p < 0.05, ** p < 0.001
See the full report, The “bird of gold”: The rise of India's consumer market. 2007. Available at https://www.mckinsey.com/featured-insights/asia-pacific/the-bird-of-gold
NCR stands for national capital egion, an urban industrial area, comprising 24 districts surrounded by 3 states of Haryana, Uttar Pradesh and Rajasthan.
Households with annual disposable income from Rs. 200, 000 to Rs. 1,000,000 ($4,380 to $21,890), with size 50 million people.
McKinsey Global Institute (2007) defines the middle class as households with annual disposable income ranging between Rs. 200,000 and Rs. 1,000,000 ($3,280 to $16,390) with size 32 million households.
Birdsall refers the NMC of developing countries as “income-secure” middle class, with daily per capita income of $10 or above (purchasing power parity).
India's middle class refers to “households living in Tier-I cities (urban cities) with annual income between Rs. 500,000 ($7,500) and $35,000.”
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The work was supported by the ICSSR. This paper is a part of major research project entitled: ‘The New Middle Class: Impact on Growing Indian Economy vis-a-vis Consumer Market - A Case Study of Delhi & NCR’, (2017-19), sponsored by Indian Council of Social Science Research (ICSSR), MHRD, New Delhi (F.No. 02/191/2016-17/ RP).
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Home » Management Case Studies » Case Study on Consumer Behavior: Gillette
When most people hear “GILLETTE”, one thing comes to mind–Razors. That’s to be expected, since safety razors were invented by King C. Gillette in 1903, and the product in various forms has been the core of the company’s business ever since. Few firms have dominated an industry so completely and for so long. Wet-razor shaving (as distinct from electric razors) is a $900 million market. Gillette’s share is 62 percent, with the remainder divided among SCHICK–15 percent, BIC–11 percent, WILKINSON sword–2 percent, and a number of private brands.
Gillette would like to achieve a similar position in the men’s toiletries with a new line of products called the GILLETTE Series. However, its record that market is spotty at best.
One Gillette success, Right Guard Deodorant, was market leader in the 1960’s. Right Guard was one of the first Aerosols, and it became a family product which was used both by men and women. However, the product has not changed although the deodorant market has become fragmented with the introduction of antiperspirants, various product forms and applicators, and many different scents. As a result, Gillette slipped to third position in deodorant sales behind P & G and Colgate–Palmolive.
An even more embarrassing situation is Gillette’s foamy shaving cream, a natural fit with the razor business. S. C Johnson and Sons Edge Gel have supplanted that brand as the leading seller. These experiences created frustration at Gillette. Despite its preeminence in razors and blades, the company has been unable to sustain a leading position across the full range of toiletries.
Sensor- a high technology cartridge razor- was a gamble for Gillette because it ran counter to consumers’ buying preferences. Disposable razors, which were produced by the French firm BIC in 1974, had gained control in nearly 80 % of the razor market by 1990. Gillette’s analysis showed that disposables provide a worse shave than a cartridge blade, cost more to make than a blade and are sold at a lower profit margin. Despite its disdain for the product, competitive pressure forced Gillette to introduce its own disposable, Good News.
As concern about the squeeze that disposables were putting on profit margins grew, Gillette began looking for a way to displace them. The company spent $ 300 million to develop a technology to significantly improve on the three attributes desired in shaving- closeness, comfort and safety. They came up with the Sensor, a razor with independently moving twin blades. The Sensor produces a superior shave, but it is also more expensive to produce than a disposable. So Gillette’s gamble was that a better shave would be enough to justify a premium price, and in the process, displace the successful but not a very comfortable disposable razor. In addition to the R & D investment, Gillette spent $ 110 in the first year to advertise Sensor. The strategy paid off. Estimated 1992 sales for the brand was $ 390 million, and equally important, the share of the market held by the disposables has gone down to 42%.
The products in the Gillette series were developed over a three year period at a cost of $ 75 million. They were tested on 70000 consumers. An indication of their newness is the fact that Gillette has 20 patents pending with them. Consideration had been given to introducing the line in 1992, but the introduction was cancelled by Gillette’s CEO, Alfred Zeien. He insisted that the line not be launched until consumer tests showed that each of the 14 products was preferred to the best- performing brand in its category.
All the products have a common fragrance that Gillette calls Cool Wave. They come in silver and blue packages like the Sensor, and the black lines on the packages match the grooved sides of the Sensor Razor handle.
During the Gillette Series first year, the company spent $ 60 million on a joint advertising campaign with Sensor. Just like Sensor, the line was to introduce in January with ads on the Super Bowl. The campaign uses the same theme as Sensor. “The Best a man can get”. Initial TV commercials were one minute in length. They started with 15 seconds on shaving gels, and cream, followed by 30 seconds on Sensor and 15 seconds on aftershaves. The deodorants are advertised separately.
The Gillette series faces two major problems:
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Understanding e-commerce markets and online consumer behavior is critical for e-commerce retailers in the United Arab Emirates (UAE) and across the world. This study conducted a comprehensive analysis of unique e-commerce data to reveal patterns in domain names, product categories, and associations with other attributes. Using data analytics techniques, the initial dataset was cleaned and augmented to conduct the analysis. Key findings reveal ‘.com’ and ‘.ae’ as dominant domain extensions, numeric patterns in domain names, and ‘apparel’ as the most prevalent product category. An in-depth association mining analysis identifies and lists frequent categories and category combinations. This study provides actionable insights into the naming and category planning of e-commerce retailers in the UAE. Multidimensional analysis establishes an analysis and planning framework for evidence-based e-commerce research that can guide the two critical strategic decisions of domain name and category selection, which are among the important strategic decisions when an e-commerce business is first established. Most importantly, while providing insights for UAE e-commerce markets specifically, the methodology can be applied to any country or region.
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The authors thank Mr. Sumit Ghugharwal, Founder of the Dubai-based My Lead Fox SaaS platform, for allowing the research team to use the dataset for research and to publish the analysis results of the filtered dataset publicly.
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Traoret, R.I., AlDhaheri, S., AlAmeemi, F., Ertek, G. (2024). Insights into Domain Names and Product Categories of e-Commerce Websites: A Case Study of the UAE. In: Emrouznejad, A., Zervopoulos, P.D., Ozturk, I., Jamali, D., Rice, J. (eds) Business Analytics and Decision Making in Practice. ICBAP 2024. Lecture Notes in Operations Research. Springer, Cham. https://doi.org/10.1007/978-3-031-61589-4_19
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These are Consumer behaviour solved case studies from matin khan`s consumer behaviour – CASE 1 & 4
Explanation of the case study:
Martin Incorporation was involved in the cosmetics and perfume business. The company was following the product concept of marketing and catered only to their existing customers, while paying no attention to the changing needs and demands of the consumers.
A marketing graduate, named Ash, joined the company and advised the company about necessary changes that must be made in the product on the basis of changing taste and preferences of consumers to successfully sell the company`s products.
Mr Ash modernised the products and spent about 30 lakhs on packaging etc. on the basis of relevant income and social factors that affect the consumers.
The product manager and assistant manager were not happy with the efforts made by Mr Ash as even after 6 months of implementation of suggested changes the company was not able to achieve effective growth in sales.
The product manager and Assistant manager were of the opinion that although some progress was made by Mr Ash, yet many important factors affecting consumer behaviour were also neglected by him.
Consumer behaviour Solved Case Study:
Focus: New Product Development to increase sales of cosmetics and perfume products
Yes, I agree with the product manager and assistant manager that efforts were made in the right direction, but many factors affecting consumer behaviour were ignored. The reasons being the following:
The company was using the product concept of marketing which is out dated in today`s era as now producers manufacture products that match consumer`s demand, tastes and preferences. Therefore, Mr Ash should have focused on the Marketing concept to produce and market products accordingly.
The target audience was limited to the existing customers of the company. Various new markets must be explored to increase sales. Effective target marketing is essential to promote and position the product effectively in the market. For example:
The market for cosmetics was not effectively segmented by Mr Ash. Cosmetics market can be segmented effectively by dividing the market into groups which are homogenous within and heterogeneous among themselves on the basis of their age, gender, occupation etc. For e.g. Market can be segmented into:
While attention was paid to income and social factors many personal factors such as Age, Occupation, Lifestyle, personality of a consumer were neglected. For e.g.
Keeping the income factors in mind no changes were made in product quantities i.e. small units of previous products. Keeping in mind the social factors no efforts were made to use opinion leaders like celebrities or doctors which would have been more effective in influencing sales than change in product packaging.
Existing products were modernised while no attention was paid to new product development for new potential markets in cosmetics industries. For e.g. Grooming products for men
No efforts were made to advertise the products to targeted audience or re-position the brand according to the changing customer taste and preferences . No offers, discounts or sales promotion activities were carried out by Mr Ash to boost sales.
Consumer behaviour Solved Case Study
Other Factors that should have been considered are:
Age – Babies, Teenagers, Middle aged people and elderly all have different needs and requirements related to cosmetics and beauty products. Therefore the target audience could have been segmented on the basis of age of consumers.
Occupation – Working ladies v/s Housewife, Clerical staff v/s Top management, Daily consumer v/s consumers from Fashion Industry
While a housewife, a normal clerk and daily consumer may have nominal needs and demand basic products, working ladies, Directors and CEO`s of a company, make-up artists, beauticians, film stars may have specific needs and high demand for beauty products. Products could have been designed and developed for one or few segments on the basis of their occupation.
Standard of Living – Rural v/s Urban People, Low income group v/s High income group
While rural people and low income groups may make use of soaps and traditional products, urban people and the high income group are more inclined towards expensive beauty products. Different products could have been developed for both the segments and different pricing strategies could have been followed.
Perception & Attitude – Chemicals v/s Organic/Herbal products
While some people perceive beauty products negatively due to chemical ingredients in them some people recommend them. Market share for both chemicals and organic products could have been analysed and the more profitable market could have been targeted.
Involvement – Normal consumers v/s Film Industry
Consumer segments like make-up artists, beauticians, film starts will have a high involvement in buying beauty products than normal consumers. Therefore depending upon the target market packaging and labelling strategies should have been made.
Culture – Due to different cultural norms regarding appearances laid down by different religions, men and women of a particular religion dress up and make use of specific cosmetic products. For e.g. Hindu, Jain and Bengali women use ‘sindoor’ and ‘Bindi’ while Muslim women do not, Sikh men don’t use shaving products as they are not allowed to cut hair, Many Jain men and women use white tikka.
Opinion Leaders – Celebrities and Doctors act as effective opinion leaders for cosmetics and beauty products which could have been used and their impact on the sales, brand value and price could have been analysed.
Personality and Self-concept – Alpha Males v/s Passive males, Feminine v/s Tomboyish girls
While alpha males and feminine girls may use and encourage use of beauty products while passive males and tomboyish girls may like to stay raw and refrain from using beauty products.
This Consumer Behaviour solved Case Study has been taken from Consumer Behaviour solved Case Study – Matin Khan – Case I
A company in the food industry wants to formulate an effective marketing strategy to attract health conscious consumers. For this purpose a survey was conducted as more and more consumers are becoming health conscious and prefer to consume foods that are healthy and nutritious. The goal of the survey was to collect information about food habits and attitude of the consumers towards different food items.
On the basis of the survey the consumers were divided into three categories:-
And the following information was found:
Old Consumers: They were health conscious, Brand loyal and highly involved in buying food items. This is due to their medical considerations, restricted choice of food and fixed eating schedules. They do not prefer to eat outside and are very cautious while buying new products.
Young Consumers: They are less health conscious and less brand loyal than older people and have less involvement in buying food items. They prefer food on-the-go and like convenience/fast food more than cooking for themselves. They are more influenced by product appeals than the brand name or price of the product.
Families and Households: They are moderately health conscious, moderate brand loyal and are very particular about their purchases of food items. They prefer to cook their own food and their purchases are restricted by a fixed budget. They focus more on the brand, quality, quantity and price of a product rather than product appeals. This segment usually consists of big families and married couples with kids who look for value of money products.
Consumer behaviour Solved Case Study: Answer 1
Focus: Effective Marketing Strategy for Healthy food products
The following points can be inferred from the study:
FACTS ABOUT ELDERLY CONSUMERS:
FACTS ABOUT YOUNG CONSUMERS:
FACTS ABOUT MIDDLE-AGED CONSUMERS:
Consumer behaviour Solved Case Study: Answer 2
The above information can be used in the following ways to formulate an effective marketing strategy –
Consumer behaviour Solved Case Study: Answer 3
Information on the following points can be used to make an effective marketing strategy for healthy and nutritious food products:
Market Share and Market Size of each category/segment – Information about the market share and size of each segment namely older consumers, middle aged consumers and young consumers will help the marketer to streamline the target audience and select the most potential market for healthy products.
For e.g. Older and middle aged consumers are more health conscious than younger consumers and are therefore inclined towards buying healthy products. Therefore they are profitable segment and have more potential than young consumers in case of health products.
Perception and Attitude of different consumer segments towards existing and new proposed products of the company – Perception of different consumer segments towards existing and new products of the company will help the marketer to estimate the brand value and loyalty of customers towards company`s products and understand how consumers perceive their products. Consumer`s perceptions can be used to make improvements in the new products to be developed.
For e.g. Retaining existing consumers is easier than making new one. Therefore by understanding the needs of the existing customers and gathering their opinions on company`s products will provide valuable insights regarding what is to be made.
Perception and Attitude towards competitor`s products – Understanding consumer`s perception and attitude towards competitor`s products will help a marketer to determine what is demanded in the market?, what products are successful? How do competitors tackle this demand and where their weaknesses lie? And what is liked and disliked by consumers. This information will help him to formulate effective strategies to tackle the competition and create synergies.
For e . g. Efforts must be made to fill the gap left by major players in the industry and develop unique selling points for the company`s products.
Type of Media each segment is susceptible to/influenced by – By understanding how different consumers respond to different media the marketer will be able to use an effective mix of print, radio, t.v., internet to target potential consumers and influence trials or purchases.
For e.g. If consumers respond positively to opinion leaders such as celebrities and doctors, they must be used to promote the products. Ineffective media channels must be avoided and popular channels such as health blogs, T.V. ads with celebrities and doctors must be used.
Product attributes that health conscious people look for: Freshness, Health effects, calories – By understanding the product attributes that health conscious consumers look for the marketer will be able to develop better products and showcase the demanded product attributes through effective packaging and labelling techniques.
For e.g. Health conscious consumers can be influenced by boasting specific traits of the product such as freshness, health benefits, high calorie, Low fat, zero cholesterol etc.
Who buys, Where do they Buy and How much do they buy: Gym, Parks, Big or Small retail stores – These basic questions will help the marketer to formulate effective marketing strategies. The marketer will know who the actual buyer of the product is. By knowing where and how much do consumers buy, better packaging and distribution strategies can be formulated for the products.
For e.g. If the user is not the actual buyer marketing efforts must be directed towards the actual buyer. (Housewife in case of middle aged people)
Gyms, parks, fitness centres are the best places to attract health conscious consumers.
If product is purchased in huge quantities, sturdy and big containers must be used for packaging but if the product is purchased in small quantities, mini packs and easily disposable packaging options must be explored.
What do health conscious people eat daily/frequently (eating habits of the consumers) – By knowing the eating habits of the consumers, new products suiting their daily needs can be produced. This will help the marketer to determine what is considered healthy by its target audience.
For e.g. While some people consider milk, chicken, fruits as healthy food, some consider healthy biscuits, healthy oil, fresh vegetables as healthy food. Both are different segments and demand differently.
This Consumer Behaviour solved Case Study has been taken from Consumer Behaviour solved Case Study – Matin Khan – Case IV
Can you upload other cases as well?
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