POST PURCHASE BEHAVIOUR AND MARKET REGULATION Post purchase behaviour and market regulation- defining est purchase behaviour- consumers post purchase dissonance-satisfaction- dissatisfaction- consumer Protection act, 1986- right of consumers- profile of Indian ‘consumers- behavioural pattern of indian consumers- Droblems faced by Indian consumers Purchasing behaviour 's the behaviour exhibited by the apo of goss nS 204 ae the purchase, use and and services. Purchasing behaviour arises with the emergence of need recognition. It to predict the purchasing behaviour of it depends upon the emotions, attitudes and of each individual Behaviour of consumers prior, during and after purchase will be different. Behaviour of consumer prior and during the purchase depends upon the information gained about The product from various sources. Positive information leads to purchasing decision and negative information leads to decision not to purchase. Behaviour after the purchase will be based on the experience gained from experiencing the product. If consumer derives. positive experience it leads to future purchase and vice versa Post purchase behaviour o_ = a N ‘Consumers purchase goods and services with (he intention of satisfying their needs. Post purchasebehaviour refers to the behaviour of consumers after purchasing the product. After purchasing the product, the consumer may be either satisfied, dissatisfied or delighted, If the consumer is satisfied with the product, then it will lead to further purchase in future~However, if the customer is dissatisfied with the product, then they wilh stop purchasing the product In the near future. Moreover, they will spread negative words about the brand to their friends, family, work and other social groups. Thus, it will badly affect the reputation of the brand. While purchasing the product every consumer will have some expectations about the performance of the product. If the actual performance of the product exceeds expected standard of performance, the consumers will be delighted, When consumers are delighted with their purchase then there {is a possibility that they will become loyal customer to the product in the near future. Moreover, delighted Customers itself becomes a source of promotion to the product as well as brand. Every organisation should make 2 regular practice of analysing the post purchase behaviour of consumers. It will help-the organisation to evaluate the value of ther offerings in terms of likes, dislikes, preferences and reaction of consumers towards the product. Through the analysis of post purchase behaviour organisation will be able to evaluate whether the motive of customer is satisfied, whether they will make repeated purchase, whether they ate satisfied, what factor led to satisfaction with the product, whether they are dissatisfied, what factor contributed to dissatisfaction, whether they will Fecommend the product, whether they are delighted with the product, whether product will contribute to profit, 7 120 whether product will lead to financial loss and so on. Th the results obtained after evaluating the post behaviour will be either positive or negative. Posit results build reputation and goodwill to the product as w ‘as organisation. Whereas, negative reaction can be made positive by analysing the factors that led to dissatisfactior and thereby undertaking appropiate corrective measures. Dissatisfaction may be with respect to product, price, place ‘or promotion. So, post purchase behaviour Is also helpful in improvement of marketing mix elements. Definition of post purchase behaviour Post purchase behaviour i the stage of the Buyer decison process in which consumers take further action after purchase based on ther satisfaction or dissatisfaction with “a purchase ‘Consumers post purchase dissonance aa ntpProdvel p Feeling arising after purchasing the product may be positive or negative. Positive feeling will lead to repeated purchase. Negative feeling leads to discontinuing the purchase of product. Negative feeling arising after purchasing the product) 1S termed” a5 post purchase dissonance. Lean Festinger, a psychologist, was the first person who investigated cognitive dissonance. Post purchase dissonance occurs when the performance of product is below the expectation level of consumers. Post purchase dissonance of each customer will be different based on the expectation set by the customers. Wit the same factor some segment of consumers may be satisfied and some may be dissatisfied. Hence post purchase dissonance cannot be generalised. Post purchase dissonance badly affect the reputation of product as well as organisation. Every organisation aims to Create satisfied and delighted customers. However, in the light of unceraimies a business organisation may sometimes fall to satisfy the customers. Even if one discontentment badly affects the reputation, timely Strategies to rectify the mistakes and bringing back satisfaction recalls the reputation. Today consumers have variety of alternatives to register their complaints without any delay. if a customer is dissatisfied, recent trend that is found among customers is that, they express their dissatisfaction by going live through social media. This response will badly affect the survival of business. Inorder to prevent such practices organisation should positively respond with the ‘issatsfied customers through positive reef measures. Dissatisfied customers are itself a sign that the organisation will not survive for Jong run. So, the organisation should develop strategies from the very beginning to prevent unsatisfied customers Reasons for dissonance Following are the reasons behind dissonance among consumers after purchasing the product 4. Large number of alternatives, Today Business organisations are operating in a market where large number of business organisations are selling homogeneous product. Thus, it becomes difficult and ‘Giaatic among consumers to decide upon which firm they should opt for purchase. Presence of large number of alternatives makes a general tendency of feeling among customers that the product we purchased is inferior to that of non-purchased product. 2. Better features of other brands ‘After the purchase if the consumer finds that the alternative" brands are supplying the same product with, amhancea features at the same price then i wil lead negative feeling in the mind of consumers regarding the purchase 3. Performance of the product _ Basic Teason of dissonance will be related with the performance of the product. While “making purchase ‘customer will expect certain standard for performance of the product. if the actual performance of the product Varies with the expected standard performance, then it will lead to discontentment among the consumers. msInsufficient time to evaluate ing a hectic for personal iif. Thus, for evaluating the those products they price, quality and with improper2._Lowering the level of expectation Expectation is the main factor which contributes to dissonance. So, tis better to try new products and services, without any high expectation. f one purchases product with high expectation and he/she feels dissatisfied after the purchase then it will add on the discomfort regarding the wrong decision. So it is better to purchase by lowering the level of expectation B_ Seek positive information ‘Once the purchase Is done it cannot be revised. The only thing we can do is to make future purchase better based on prior experience. So, consumers should be selective in faking the information after making the purchase Consumers should concentrate _more on positive information about the product after making the purchase. If they are seeking negative information, it will lead to regret regarding the purchase. ‘4. Reverse the purchase decision One of the measures that can be adopted to reduce Gissonance after purchase Is to return the product to the fganisation before use: Once tis Used, customers will not be able to return and get back a new produc § Convincing themselves 4° Consumers affer making ‘their purchase should convince themselves that their decision wasn't wrong. They should Convince themselves that learning happens through ‘experience. So it was that purchase which contributed to ‘experience a new product. Satisfaction i The literal meaning of the term satisfaction (s ‘to have Sood enough.” With respect to consumer, satisfaction occurs when the product that the consumer purchased five. met the expecitlan’ standand set hy estoeai prodict have met the motve behind thle purchase There 1s 4 well-inown saying tat “sated customer Isell_Is_ the good advertiser for the brand” So, on organisation alvays tends to satsly the needs andl wants of customers before the competitor with umost ear, Satsied customers wil spread postve words about the brand which itself form a bass of advertisement for the brand with practical evidence. The words spread out bya satsied or a customer who have avaled the goods or serdce wil be more convincing. than the advertising efor. So, an organisation always takes postive measures forthe satisfaction ofthe customer Satisfaction derived from a product is highly dependent on the expectation level set by the consumers. So, expectation form the basis for evaluating satisfaction. If the product Performs in par with the expectation set by consumers, then the customers will be satisfied. There are Circumstances under which a product performs far better than expected, then the customers will feel delighted. If the Performance of the product is below the expected standard uritis called negative discrepancy or if the performance of the product is above expected standard its called positive discrepancy. In case of negative discrepancy, adequate efforts should be undertaken by the firm to improve the performance ofthe product. Definition of customer satisfaction ‘Recording to Hansemark and AIbinsson, “satisfaction is an overall customer attitude toa service provider, or an emotional reaction tothe difference between what customers anticipate and what they recelve, regarding the fulfilment of someneed, goal or desire.” Level of customer satisfaction Customer expectation can be at any of the following level 4. General level: Customer expectation at general level is related with functional performance expectation ‘of the product. Functional performance attributes Include quality, reliability, durability, usability, security andsoon. = 2 Category level Customer expectation at category pe ‘expectation level of performance of different category of product like convenience goods, shopping goods, speciality goods and unsought goods. Performance expectation of each ene eee cine ascive by tre customers. enirel-aKors high ory 3. Brand level: Consumer expectation at the brand level will completely depend upon the goodwill of the ‘organisation known by the customer. Ifthe customer's well aware of the reputation of the organisation, then the customer will fix higher expectation over the organisations brand and vce versa, Cagis need a4ae tmerilalted |e AMAA y frnce co grr enh % (—3 4_ Transaction level This expectation is made durin the transaction stage between the customer sn organisation. Based on the effectiveness of transacio they will fix expectation as higher or lower. Concept of Dissatsters, Satisiers and Delighters Dissatisfiers/Basicneeds > Every product will have some basic need behind the supply. It Is essential that this basic need should be present in the product. However, presence. of this basic need will not add. to higher satisfaction. For example, the Basic need of a pen is to write, however writing will not contribute to higher satisfaction Basis needs can also be termed a: the absence of this basic need will lead to dissatisfaction ALisy catisfiers because These needs are the needs which is expected by the consumers. If the expectation meets the actual Performance, then it will lead to satisfaction, So, this expectation is considered as the benchmark for evaluating Satisfaction. Presence of performance needs leads to satisfaction; hence performance needs are otherwise termed as satisfiers. Im this competitive era where homogeneous products are supplied by each firm, it is the ability of the firm in Suppling expected service leads to satisfaction and thereby Successful existence of the business. Delighters/Excitement needs Exctement needs are Those needs which consumers ‘eceive beyond their expectations. Such needs are Otherwise termed as delighters. Presence of excitement Sete anche enperia creed Orsyerd ee i eeption about the product that are outside dividual, group oreperdetitgon) ie cualhy_of service offered _by_the organisation, 7 communiceton- ecwenessof communication prior, Ging and afar sever wl nlence_the_sasfecton [eee consumer’ wil compare the cual performance errs of purchased product with that of what Stganisation promised or communicated before. purchase frothe acual performance confirms 0 what they ommariated then te wil lad to satifaetion and vice versa During the sere, the sales person should communicate effecively with the consumers. Rudeness of the sales persons ducing and after the service will adversely affect the satisfaction level of consumers €. Reputation: Reputation of the company also leads "0 saigfacton. Consume wll perceive that the satisfaction {Fat they wil derive fom the reputed organisation wil aso be high This psychologial feeling ‘self leads © SaiSfacion during the purchase. However, ifthe reputation build by the company is negative then this itself makes @ psychological feling among consumers that the service Supplied by them wil be ineffective, this feeling tell _gmtribates to disatisacton during te purchase. Customer satisfaction process ee ree at __Brocess. In order to ensure satis sumer, every aniston should adopt some series of steps. They 28 as follows: 1. _Understencing customer expectations ‘An organisation before trying to satisfy consumers, should analyse what factors contributes to satisfaction or what ff the levels of expectations that consumer seeks from product, then only the organisation can make an attempt to satisfy them. So, the first and foremost thing which an organisation needs to understand is the expectation of consumers and it can be done through consumer research. Organisation should analyse the expectation standard of each customer segments because expectation will differ accarding to age, education, occupation, status and so on. 2._ Promises to customer After analysing the expectation levels of each segment, next step is to make promise in return to the customers by guaranteeing that their product will meet the expectation Handard_set_by the consumers. In order to meet the expectation level of consumers, organisation should take measures like introduction of new product or modification in existing product, so that their needs are satisfied without breaking their expectations 2. Execution » this stage organisation perform their promises by supplying produets that meet their expectations. If any organisation has undertaken any modification in the ‘Gisting product, then it should be communicated with the existing and prospective customers with appropriat®) Promotional measures. In this stage not only the performance of product matters rather the performance of Sales executive during the purchase is also an important factor which decides satisfaction evel of consumers. 4._Customer satisfaction survey _ Once the sale is completed it Is essential for the ‘organisation to analyse whether their product has met the 5 analysinga sustain ater puchase many direct and Indirect mnths are adopted Sarena ed tive. IF one vest tay beter postive of negative. IF is sere fen rans tht customers are safle wth eesdut and organisational perfomance, And if res Teneatve ten adequate corectve measures should be tadenaken by anasing the factors that contributed to ssctsfacion, Noteover, thelr dssatsfation inthe form tf complaints soul be rece ely eisten attcion metho Ssted antamer a sgn of long-term survival ofthe fim. So, in order to ensure long ter sural organisation peeis to analyse the satisfaction level of consumes 4 y There are various methods for analysing the satisfaction level of consumers. They can be broadly classified as 1, Direct methe Under direct method, satisfaction level of consumers 5 analysed by collecting feedback directly from them, hence the information so collected wal be first hand information. since the feedback is direct, it wll be genuine, Moreover it helps. the organisation in analysing direct, from the consumers regarding what aspect led to satisfaction and what factor contributed to dissatisfaction and thereby take correct modifications accordingly. There are various ways through which direct method can be adopted, they are 4 Complaint latte: Ifa customer is not satisfied with the product or service, ‘hey wil be fling complaint letters, in which they will be pointing out their grievances. Complaint letter received directly from consumer will help the organisation to analyse the reason behind dissatisfaction, moreover it helps to take corrective action to convert their dissatisfaction to satisfaction by making madifiation in the element that contributed to dissatisfaction 2. Appreciation letter pretation letter_forwarded_by the _consumer_after ‘Purchasing the product will alsa help the organisation to analyse satisfaction level. Appreciation letter is a leter forwarded by customers ‘who are delighted with the broduct or services provided by the organisation. This leter helps the organisation to analyse the strength of their product over competitors and thereby analyse the Satisfaction level towards their product. © Survey Survey can be conducted to analyse the satisfaction level ‘of customers. Schedule or questionnaire can be used as a tool for conducting survey. Questionnaire or schedule is @ list of questions that is prepared to analyse the satisfaction level. In case of questionnaire the surveyor distributes thelonnaire to the respondents either offline oF online questi I the questionnaire and sends it nd then respondents fl back to the surveyor. However, in case of schedule, vote the answers from the respondents, So, schedule wimhod is more time consuming than questionnare, but the feedback collected through schedule will be more authentic Face to face mesting Under this method representatives of organisation directy Wists. the consumer and collect the feedback orally Through direct interaction. Here consumers feel free to Communicate, as the tlk is informal. So, they will able to provide as much as information required by the organisation Direct marketing Here organisation sells their product directly to the consumers without the help of middlemen. This benefits the seling organisation to maintain good relationship with the customers and thereby collect authentic feedback from them, Third party agencies Organisation appoint third party agencies to analyse the satisfaction level of consumers. Third party agencies will be pecialized in conducting the satisfaction survey. Hence their survey will be structured and responses will be accurate 9 Surprise market vist ‘Surprise visit by the representatives of the organisation In to the market helps to get insights about purchasing done surveyor himself/herself customers. It also helps to analyse the number of by facts sold to. consumers in relation to competitor's brand. For example, celebrities often make surprise visit to ‘analyse how their film Is perceived by the customers. 2.Indirect methods Under indirect method instead of collecting direct feedback from the customer organisation rely on the information collected from customer complaints and by analysing the number of loyal customers. a. Customer complaints: If the number of customer complaints is rapidly increasing then it itself is a warning that the products supplied by the organisation is not satisfactory. However, if the complaints registered by the customers is showing 2 declining trend then it is a sign of satisfied customers. So, an organisation can analyse the satisfaction level of customers by examining the increase or decrease in complaints registered '. Customer loyaity: Loyal customers will be loyal to ‘our product as well as organisation. Loyalty results in ongoing emotional relationship between. customer and the organisation. A loyal customer revisits the organisation, he will not be shifting to, other brands of competitors’ products. Hence By analysing the footfall of loyal customers to the store helps in analysing the satisfaction level. Loyalty itself shows that they are satisfied with the product ‘or brand. Benefits of satisfaction Satisfying customers is bene! many ways. Following are the ficial for the organisation i benefits offered by satisfving nzcustomers 1. Boosts sales Satisfaction helps in increasing the sales. Satisfied customer spread out positive words about the brand and thelr experience In the brand among various social groups, This in turn motivates other individuals to purchase the product and it results in boosting the sales. 2. Enhance profit Higher levels of satisfaction lead to Increase in sales of our product compared to competitors which In turn leads to higher profit for the organisation. Through higher profit, the ‘organisation will be able to set aside some amount for further introduction of products as well as expand thelr product to new markets 3. Results in repeated purchase Experience gained from previous purchase helps in deciding whether the consumer should go for repeated purchase in future or whether the consumer has to stop Purchasing the product or brand. If a customer is satisfied ‘itresults in repeated purchase In the near future. 4. Change in atitude Evety consumer will have some perception about the Product before purchasing it. The perception may be Positive of negative. Before purchasing the product, the consumer had negative perception about the product but, after purchasing the product consumer finds that his/her perception was wrong. So, satisfaction helps in changing the attitude of the consumers towards the product based ‘on perception, 5. Building Joyal customers Customers are the drivers who bring revenue to the 18 ae organisation. So, an organisation which can deliver qu products at reasonable cost can survive in the market f Jong run through delighting the customers. Thu delighting the customers can create loyal customers towards the product. 6. Reputation ‘Abundant number of satisfied customers itself improve the reputation of the business. Moreover, it also helps to attract the prospective customers because there is 2 general belief that a reputed organisation can deliver better quality products and services compared to competitors 7. Reduce customer churn Customer churn is the rate at which customers stop purchasing the product from the organisation. Once an organisation loses customer its revenue will be affected So, through satisfying the customers the attrition rate of customers can be reduced. 8. Reduction in grievances Satisfaction helps in reducing grievances. Grievances simply refers to the customers complaints when the product is not up to the standard expected by them. So, by satisfying customers organisation can bring down the number of grievances that the consumer register: Link between customer satisfaction and customer loyalty Customer loyalty and customer satisfaction are regarded as different sides of a single coin. Satisfaction is considered as attitude while loyalty Is considered as behaviour.they stay loyal to the @ are not loyal to services supplied ges the brandrectified so easily without affecting the goodwill of the organisation. Dissatisfaction leads to discomfort in the mind of customers thereby it will affect the mental and physical health of the customer. When a customer feels dissatisfied after purchasing the product, then he will stop purchasing the concerned product or brand in the future, Dissatisfaction is a result of wrong decision which is Undertaken without analysing the pros and cons of purchased product. So, a customer should analyse each alternative through making a cost benefit analysis and take final decision with utmost care. Causes of customer dissatisfaction Dissatisfied consumers will harmfully affect the reputation of the business directly and indirectly, There are number of factors which contribute to dissatisfaction of consumers. They are 1. Poor quality: Customer will never compromise with the quality of products. Customers are purchasing pee esd financial commitment and they the produc utr forthe amount spend on Sof Sanda set me 288 not confirm tothe quay eer ea customers, then it will lead to 2, Pricing: Majority of consumers prefer to purchase Products at reasonable then price. If the products are “they all shit to cont eee ever i pro Perceive thatthe quality be far better than low pri expectation of highy by Moreover, if a ‘over, ifa pr highly priced then consumers Standard of that product will #4 products. So, if the quality iced product is in par or it fall below the low-priced product then it will lead to dissatisfaction. 3. Product specifications: Every product will mention the speciation of the product with the help of description in the package of the product. If the description or specification mentioned in the package does not contain in actual preduct then it wil lead to dissatisfaction. So, every organisation should ensure that authentic specifications are mentioned in the description of the product. 4. Usability: The product should be user friendly. f the customer is not able to use or operate the product by himself/herself, t shows that the product is not user friendly. This will create an impression among the customer that the product does not worth forthe price payed, which leads to dissatisfaction 5. Poor customer service: Satisfaction ofthe customer ‘snot only dependent on the physical attributes of the products but also service given by the salesperson influences satisfaction. Ifa salesperson does not listen to the requirements of customer, or does not clear the queries raised by the customer, or does not treat the Customer well or does not supply product accordina to the need of customers and So on, this wil increase the dissatisfied number of customers. 6, Hidden product information: A product should reveal both positive and negative aspects related with the product to the customers. ifthe product does not reveal any negative information and the consumer comes to know about this information after the purchase, then this will badly affect the reputation of 18the brand. So, the product should reveal all the information without saving hidden information. Effects of customer dissatisfaction Customer dissatisfaction leads to negative effects upon the ‘organisation. They are as follows: |. Bad reviews: Today where information technology is So advanced, there are enormous options for consumers to register thelr feedback. Under online store there is an option for customer to review the product, moreover even traditional store has website under which consumer can upload theit Feview. So, ifthe customers are dissatisfied with the Product, then it will lead to writing of bad review about the product instantly. This bad review will help the other customers in deciding not to Purchase the product anymore. Hence Gissatsfacton leads to. bad review which wil ultimately lead to decline in sales. 2: Loss of customers: Once a customer is dissatisfied iy ne Product then the perception of customer win eseect to the product, brand as well 35 ‘ganisation will be bad. Dissatisfied customers om anmetines decide to abandon their purchase Customer sane erganisation, Thus, numberof wi be dectnca Nh organisation for purchase istomer ba TH tl ead to reducing the os © ofthe organisation, F_sales: Dissatshe 'd customers, will spread Soclal group. Thus, from his/her socih ge ge te Potential customers I group will decide not to purchase. Moreover, this group will again spread those negative words to their social group and it keeps on continuing. Thus, dissatisfaction Is such that it will spread like a wildfire and thereby leads to decline in sales. Loss of employees: When a customer Is dissatisfied, ie/she will review the product badly which in turn reduces the sales from probable customers. When sales get declined, it will affect the profit and goodwill of the firm, Employees can be retained only if they get atwactive pay from their organisation. Since dissatisfaction badly impact the profitability, the organisation will not be able to provide a sound wage package which will lead to increasing attrition rate of employees. Pour lead_yeneration and conversion: Lead generation means adding new customers in to the sales list made by the organisation. Presence of dissatisfied customers will reduce the number of customers entering the organisation. Hence dissatisfaction leads to poor lead generation and conversion Unhappy customers: A customer becomes happy when his unfulfiled need Is satisfied with the Purchase of product. However, if even after Purchase consumers are not able to satisfy their reed or motive then it will create unhappy customers which will again affect the loyalty of customers. ‘Measures to solve customer dissatisfaction 5tough dsaisfacin can seriously affect the business, imal rciesed wil not badly affect: he. reputation Measures that can be adopted to. solve customer dissatstacion areas follows 1. implement feedback_system: Every organisation ould Implement @ system through which feedback from customers can be collected Continuous. Through feedback system organisation will be able to. identify te dissatisfaction among customers atthe early stage moreover it also helps in identifying the. factor which contributed to dlssatsfaction and there by teking adequate corecive measures, 2 ‘Returns management: If the customers are. not Based then the company may either replace the oduct oct may sue a fesh product. Wether should compete it within a limited period yo tha 5 Pra aaoalied May not stay for long time. Tope sone compan: Dissatlsfacon lead TRE ote nur of complains, Busines na uncertain wor et be happenin elleved would contribute 10 Satisfaction. among ne ae Customers may lead 10 Glssatisfaction among customers. So risk is unavoidable, the succes resohing te eeeSe OF survival depends on so even it a cus Orman eGR essed te complaints without delay. TeePessal_of ‘his/her ite 4. Quick response: Organisation should quickly “Fespond to the inquiries made by the customers. ‘Once the organisation responds quickly to thelr Inquiries, it will result in creation of sense of belongingness among customers. However, if the organisation does not respond to the inquiries made by the customers, then it will lead to negative impact over the organisation and it will reduce the number of loyal customers entering the organisation 5. Follow up: Once the sale is complete, organisation ‘should undertake timely follow-up measures for ensuring the satisfaction of consumers in the near future. Follow up measures should be done in the form of rectification of mistake, modification of existing product and Introduction of new product. © Sucr © 'n today's competitive era where consumers are aware of different alternatives within a single search to satisfy their eed, It is difficult for the organisation to sustain In the Market with a basic product. Thus, every organisation Makes efforts to delight the customer by supplying Products that is far above their expectations. The first andforemost thing every organisation should undertake to delight the customers is to have an in-depth knowledge of ‘customer satisfaction, so that organisation can take efforts todelight them. After analysing the expectation standard of customers, organisation practice and implement quality management techniques to deliver above their expectations. Thus, in order to prevent customers from shifting to competitive brand, organisation should follow positive measures to delight the customer. Consumer protection Act, 1986 Tis Tre Bsn of ee busts esanation Is «8m asin prot Late bsiess of uss busi inthe puri of wien a im, business organisations mm Pan mapractces he black marke products, unethical see qr eect selling substandard ing and so on, which will averse¥ affect the consu SUmerS. That i, to make th hat is, here consumers are forced malpractices, the business firm will exploit the consumers: for achieving maximum profit. So, in order to protect the interest of consumers or to safeguard customers from bad effects of malpractices done by business organisation fact was passed in the parliament known as Consumer ‘protection act,1986. This act was passed on 24% December 1986. <= ‘Consumer protection act defines two types of consumers. They are A. Consumer of goods: consumer who purchases goods for consumption other than resale, for which price may be paid fully or partly, promised fully or party or paid under installment basi. 5. Consumer of services: consumer who avails serices for own purpose rather than commercial purpose, for which price may be paid fully or partly, promised fully or party or paid under installment basis. Objectives of the Act 1. Promotion and protection: Consumer protection acts iaveducedto ensure the promotion ad proton ef consumers. Promotion refers to making consumers aware Sr eight and responsibities Protection meats Snfeguarding the onsumer rom ana ade races In Pee es 2, gedessd) of grievances: Grievances cot produel) Here the buying behaviour of consumers show a complex pattern which it vement because of the significant differences between the brands. Consumers {end to follow a complex buying pattern when the amount of spending is high and those products are used for a long time as they cannot be frequently purchased. Here austomers go through all the available information regarding the products by making a cross sectional analysis of pros and cons of each alternative. Hence, the buying decision will take more time and effort. For example, when we decide to purchase a car, we will analyse all the alternatives available in the market by taking in to consideration our budgetary allocation. We don’t purchase the car all of a sudden, instead we analyse the cost and benefit of each alternative and select that alternative that meet our needs along with budget. 2.Dissonance reducing buying behaviour Dissonance simply means the negative feeling arising after Purchasing the product. Here the differences betwee! brands will be low, however in order to reduce dissonance Consumers will be highly involved in purchase.__ Ta very consume ais to pick a perfect product, they don, eam to feel negative after purchasing the product ‘reducing behaviour showcases that consumer asta cuffcient time to analyse each and every product to reduce the happening of dissonance. Here the price of the product may be high to low This buying behaviour i exhibited for those products, where the variances between the atternatives is low and for reducing dissatisfaction consumes prefer to follow this buying pattern. For example, in purchasing a diamond ring consumers follow dissonance reducing buying behaviour, once they purchase product, they will feel that the other alternative was beter 3, Habitual buying behaviour (Regulo’ pseloasiog ) Eonsumer who adopts Fabitual buying behaviour will be purchasing products as a part of their habit. Hence, they wl purchase te product even if he price changes oc. at is the change in price wll do not affect the demand for such roduc. Here the inolement for purchase oF the time that will be taken the time tat wl be taken for purchase wil be low and products are almost similar or variances between the Pacem sige ewerees Dissonance mere cre: ree Consumers who always seeks for variety in tee ta aha a eRe ‘They will not be loyal to the ai iieaiateae those brands which offer variety in ‘Switching cost is NGS ee ae * Switching cost is the cost involved for in switching between the brands. Here customers highly involved but the differences fustomers will not be “ween brands are high. ple, food lovers will always prefer to switch over ty of food, they will not stick on toa single food. bel For exat new varie Factors influencing behavioural patterns 7, Booming economy ‘conomy indicates growing economy. That is, tage of business cyde. Booming «: here the economy is in the peak s venefits of booming economy can be analysed in two nthe benefit will be in the form ny it will The be aspects, for an organisatior of increase in sales and profit and for the econo jhich leads to increase in employment ‘consumers are likely to spend hase through which an 1e behavioural pattern be increase in GDP wi and income. As a result, more during boom period. So the ph economy undergoes will influence the of consumers. 2. Changing demographics There has been a drastic change in the purchasing power of middle-class segments due to thelr aspiration {0 consume more. 3. Smaller households Today most of the families are becoming nuclear. Hence the’ number of people In a household has declined drastically, ‘This helped the women to play 2 role in Husband purchases influencing buying decision. household items after seeking the opinion of wife which was lacking under Joint family system 4, Increasing awareness re aePees Today consumers are exposed to vast Information withthe help of information technology regarding the product, modification in product, price, quality, review, negative feedback and so on. This Information makes consumers aware of what to purchase and what not to. Hence the effectiveness of information influences the buying behaviour. Ifthe information in advertisement is presented in a viable manner which attracts as well as create anareness regarding the benefit of opting the product, then the consumer behaviour will tend to purchase it and 5. Westerization Globalisation has led to drastic change in. consumption pattern of many customers with respect to food, dressn style, drink nee , drinking habits, saving habits and so on. People are now adopting the western culture to our culture this led to the usage of products and services from western countries by non-western countries. 50, westerist isation simply means adopting of western care eter by force orinnces & Organised retail stores Organised etal st Grams real tres provide a. completeshovie Scene ries vate of gods and seis one single roof. Today all consumers are_ gon ata A He who ey dr ve sh ine ef esr so all cnsumers pee to mae influence customers na stor: Avallabilty of such stores 10 purchase products from that single "00h, instead of ain ase te meee. SPaEDE ren ndan cnnier behaviour Earlier consumers behaviou where consumers _purchasin behaviour was directly dependent on the price products. When the price of products was higher, they shift their purchase to competitor brand and vice vers: Now consumers are value sensitive customers. ‘consumer do not get value from what they purchas they will shift to new brand which provides more value That is consumers have shifted from being cost sensitive to value sensitive 2. Emergence of virtual media: Emergence of internet made a drastic change in the buying behaviour of consumers. Consumers used to make their purchases by visiting traditional store. With the advent of internet land various shopping sites consumer have shifted their purchase towards online stores. Through online store consumers get option to purchase, return, file complaints, receive feedback from experienced customers, price comparison, brand comparison and so on. These benefits made the online shopping experience more fruitful 13. Importance to features: Consumers are now variety Seekers, they want fo purchase something new, so they fare concerned about the additional feature that the produet ean offer instead of relying on the same brand with same features. So, consumers are in search for new features in product rather than being loyal. 4. Constraints of time: Time constraint 's the malor Facior “which contribute hindrance to traditional shopping experience. Non availability of time compelled the consumers to shift their purchase tO 169online store. Through online store customers are able to purchase products from different geographical area ‘as and when required without taking any effort. Many of the customers are now depending on home delivery due tothe constraint of time. S._Use of cards: Today cash transactions have béen replaced by cashless transactions. Instead of carrying money customers now prefer to carry ctedit cards, debit cards, smart cards, e-cheque and soon Customers are now using PhonePe, Google pay and Paytm to complete their financial transactions. &_Emergence of shopping mall: Availability of all Products under single roof made the consumers to ‘make their purchase from shopping mall. More than ‘mere shopping experience it makes space for spending leisure time with family. Hence most of the customers prefer to purchase from shopping mall instead of Purchasing products from different outlets. 7. Importance to health: Today consumers are more health rfented They are not ready to purchase that Product which contributes to health hazards. So before ow the products they will analyse the aus ee are included In the product, bY Te Information and also by seeking Information from experienced customers. pees {faced by indian consumers Fi = rumen _ h internet has replaced 7 the fraud that are happening in the a 005 and services are showing a” 170 increasing trend. Hlterate customers are often deceived by fraudulent players by informing customers to believe that they are actual suppliers. Moreover, if the products received are faulty then some suppliers will not replace fo refund the amount. And even if supplier agrees to refund the money, it takes more than two weeks 10 receive the money, 2, Logistics related problem: Customers in rural areas are “often unable to access e-commerce transactions. Even though consumers prefer to purchase a particular brand, suppliers are unable to supply the preferred product to ‘our location. Moreover, damages during transit will badly affect the performance of product. Sometimes the delivery gets automatically cancelled when the delivery persons are tunable to connect us which will again dissatisfy the customer. 3. Attractive packing: Consumers are often. exploited by ‘Giving superior packinig. outside and inferior product inside. Thus, by giving attractive packaging consumers ‘re forced to purchase those inferior quality products which will adversely affect their financial investment, time and effort. 4. No fair return: Even though products are {guaranteeing many performance standards, they are not doing what they promised in actual practice, This badly affect the mental and physical health of customers because they are not getting fair return for what they Purchased as the product differs from promised Performance standards. ma sg eplotaton: Consumers are_often_ exploited by ing ay and unsafe products. Many of the Pee suppliers have entered Iv TO"the market by rraucna euplate of orginal products and thereby rcening the customer. Supplier are often exploiting the ensumers by adopting adulteration, hoarding, lack makeing, and many ther malpractice 6. Poor aftersales service: Organisations are concerned out the service to customers only during the sale. They ignore them after making the sale, tis attude badly affects the customers in settling damages, refund, return, repairand soon 7. Not heard propery: Ahough there ae various counc to protect the inerest of consumers, the grievances of Consumers are not settled properly. Consumers have (© walt and spend more for getting their grievances redressed, Moreover, unethical practices are often adopted by redresal agencies in protecting the interest of organisation who supplied faulty product. 8 Disorganised customers: Customers are disorganised thats they don't unite together a problem is faced by an individual customer, he/she alone has to face the consequences and have to fight forthe settlement of damages. Hence tis leads to exploitation of disorganised customers by organisation 9% Unethical advertising: Today customers have wide variety of options to choose from, this leads ea ans bias on customers in deciding which rand to choose from. Advertsing is the only medium ich helps the consumers to decide the purchase. However, most of the advertisements are now being m unethical they are guaranteeing quality attributes that products often lack. 40. Hidden cost: E-commerce transactions include many hridden costs like delivery charges after finalising the purchase. This leads to exploitation of consumers in the rname of hidden charges which is not informed to the customer while making the purchase. Unit 3: Questions for Discussion 1 Shortanswer type 1. Define post purchase behaviour? 2. What do you mean by post purchase dissonance? 3, Explain customer delight? Ml. Short essay type What are the effects of customer dissatisfaction? 5. What are the reasons behind dissonance? Briefly explain the different rights of consumers? 1H, Long essay type Explain customer satisfaction method? + Enumerate customer protection act 19867 im