Consumer Buying Behavior Analysis: Kit-Kat

Consumer Buying Behavior:

It is obviously the need of individuals, groups or an organization that is in focus for any buying that shall take place. However a clear understanding of consumer’s buying behaviors empowers companies to successfully target their offering, servicing and marketing activities. Understanding buying behavior results in finding out the relevance of it in line with human needs and this becomes extremely important in light of fact that marketing is all about satisfying needs.

Any purchase is influenced and directed by the very motivation that the concerned buyer has to make the purchase. As we know the motivations could be varied, the Maslow’s hierarchy of needs if the appropriate model to understand the structure of this motivation. The five levels of such motivations (in bottom-up approach) would be “Psychological needs”, “Security needs”, “Social needs”, “Esteem needs ”, “Self-Actualization needs”. We however here would refrain from discussing the details of each of such motivation as they are self explanatory and hence assumed to be clear.

Once the motivation aspects are identified and studied, the marketing experts as per the need of their make the necessary changes or adaptation to their offering to enable the correct buying behavior. Coming to actual consumer buying behavior it is an interactive process involving the marketing activities of producer, the consumer psychological attributes and consumers purchase decisions.

Initially the need of consumer for given product is identified which is then transformed into marketing mix variable (4ps). Then the consumer psychologically evaluates the offerings in relation to these psychological needs (culture, attitude, previous learning’s and perceptions). This is then followed by decision of where and when to make the purchase in line with needs and choices. 

                                                                                                                                                           

Kit-Kat American Consumer Buying Behavior Analysis:

If we have to analyze the purchasing behavior of consumer of Kit-Kat in general it would be the psychological aspect that needs to be evaluated because all other aspect more of less either remains the same for all products or at least for the category of product that we are discussing. 

In terms of Maslow’s hierarchy that we discussed above, if we have to find a suitable motivator for Kit-Kat purchase it is obviously “Social Needs”. This is because chocolate is not something which can given one security and not something which is core needs of life and neither is it that give you a status symbol as it is not a niche product and hence the social need is what drives it sale (Sharp, 2009). Social need can be attached to it in the sense that the purchase are mostly made on impulse and are more driven by friends circle choice and among friends and relative only. 

We have ample evidence from research conducted and results published that the majority of consumer of product at this point of time are people in the range of 25-40. This is not very positive from company perspective as it is generally perceived that chocolates are something that is youth consumption driven . 

The obvious reason and explanation as is evident from data collected is that Kit-Kat at this point of time have not been able to keep youths attracted or is enable to create good new consumers of it, hence majority of consumers that are coming to it are loyal to brand because of their experience and image during their youth time.

Classical Conditioning Vs Operating Conditioning

CLASSICAL CONDITIONING vs. OPERANT CONDITIONING

There are many differences between Classical Conditioning and Operant Conditioning. Conditioning essentially means TRAINING. What we are doing in both types of conditioning, is training the subject to either change their behavior or show a response to a stimulus of our choice.

Classical Conditioning:

In this case, the goal is to make the subject respond to a stimulus of our choice. It refers to a biological, reflexive response. This response is given to a certain stimulus every time, no matter what, and it is out of the subject’s control.

In the case of Pavlov’s dog, the response is salivation. The dog does not consciously make himself salivate, it just happens every time food is present. The stimulus that elicits this reflexive response (called unconditioned response or UR) is called unconditioned stimulus or US. That means there was no training necessary for the response to occur.

The goal is to make the dog give this same response of salivation to a different stimulus other than the food, in Pavlov’s case, the bell. The bell is what we are training the dog to respond to, the Conditioned Stimulus or CS (needs training). Pairing up the bell (CS) with the food (US) repeatedly, will eventually get the dog to salivate to the sound of the bell in anticipation of the food. This process is not a conscious choice. Remember, the response is a reflex. Once we achieve the response to the bell (CS), this response is now the conditioned response (CR). The response the dog was trained to give.

Operant Conditioning:

This type of conditioning essentially means learning through the consequences of our actions. If the consequences are good, or we are rewarded for our behavior, then we tend to want to repeat it. If the consequences are bad, or we are punished for our behavior, then we tend to want to stop that behavior.

There are two types of rewards and two types of punishment in Operant Conditioning. But before I explain them, let’s think of Math for a moment. In Math, when we see this sign: + it means positive, or you are adding something (two numbers). In the same way, this sign: - means negative, or you are taking something away, subtracting (one number from another).

Keep these concepts in mind when going over the explanation that follows.

In Operant Conditioning, every time we see the word positive, it simply means we are adding something. Whenever we see the word negative, it simply means we are taking something away. Just like in Math.

So, whenever we want a behavior to continue, we will use Reinforcers (rewards). The two types of Reinforces we can use to make sure the behavior continues are:

Positive Reinforcement: We add something good after the behavior so it will continue. For example, if a child gets all A’s in school, I will add $ 5.00 as a reward.

Negative Reinforcement: We take away something unpleasant as a reward for the behavior so it will continue. For example, if the child finishes her homework, I will take away broccoli at dinner (assuming the child does not like broccoli).

Whenever we want a behavior to stop, we will use Punishers. The two types of Punishers we can use to make a behavior stop are:

Positive Punishment: We add an unpleasant consequence to a behavior so it will stop. For example, if you speed in the highway the police officer will add a ticket as a punishment so you will stop speeding.

Negative Punishment: We take away something the person likes as a way to make the behavior stop. For example, if the child does not finish her homework I will take away her video games (which she likes) as a punishment. That way I hope the behavior of not finishing homework will stop.

Main differences between Classical and Operant:

Classical conditioning is passive, there is no behavior involved, just reflexes. The best way to figure out classical conditioning elements is to start backwards:

First, identify the reflexive response UR (ex: salivation); then identify what elicits that response every time, no matter what US (ex: food). Add any stimulus you would like to pair with the CS (ex: bell). Note that the response (ex: salivation) NEVER CHANGES. What changes is what the subject responds to.

Operant conditioning is about behaviors. These are conscious choices we make based on the consequences of our actions. It is active learning, where we are making decisions and performing behaviors that are NOT reflexive, but intentional.

Mobile VAS Market Scenario & Potential

Introduction:

India is all set to become the second largest Telecommunication market in world with lowest ARPU in world. Since 2000’s onwards it’s growing at a CAGR of 30+% with penetration at 47+%, having a subscriber base of 560+ million with wireless segment contributing 92% having an urban penetration of 80+% and rural penetration close to 20%. The industry is concerned about falling ARPU which in 2006 was Rs. 345 and has fallen to as low as Rs. 160 thanks to constantly declining tariffs. The potential for growth lies in rural under tapped market which again is low ARPU base and increases concern. All are eying VAS as the rescuer and trying their tricks & cards to increase revenue share of this segment to as high as 40% from 14% at present, in couple of years.

VAS Market Scenario:

Initially voice revenues occupied 95% of the revenue pie with VAS contributing not more than 5% of revenue and of which SMS contributed more than 90%. Because of the potential and reasons mentioned above more than 150+ companies have mushroomed since 2K’s to offer their services across the value chain. Among them, some, such as “On Mobile” have met with tremendous success on the basis of constant innovation. During early days their EBIDA margin was more than 80% and has come down to as low as 15%.Margin will improve significantly once 3G is available since it will enable high margin content to be made available rather than the present largely SMS driven VAS. VAS revenues have been growing in India with a CAGR of 60%. Analyst expects it to grow at a CAGR of 20% in coming 5 years. Revenues in 2009 were Rs. 1,00,000 M and are expected to double in the next two years with a CAGR of 70% and contributing around 20% of total revenues. VAS has a penetration of 25% (without P2P SMS) which is expected to grow to 45% till 2013 with3G availability as 3G enabled handsets are expected to be of 60% of total handsets used.

VAS Offerings:

Operator as the only major Sales module is hampering its growth. Delivery channels such as SMS, WAP; GPRS have their share of benefits and problems and one delivery channel has to pick up for better opportunity tapping. For a successful VAS offering three attributes are essential:

a) accessibility of service (Technology Platform)

b) Bundling of Services (Packaging and Offering)

c) Content Quality.

A perfect combination of above three results in a killer VAS application. Besides the three factors, the differentiating factor is the way we promote and brand our services and the way we manage the VAS lifecycle – e.g. CRBT innovations like Press * to copy, Ganna bolo Hello Tune pao have kept CRBT segment growing and healthy.

A-Z offerings of VAS can be summarized as

A (Astrology, AdRBT, AppStores)

B (Bollywood, Browsing, Blogging)

C( Cricket, Content, Community)

D (Devotion, Dating)

E (Education, Enterprise)

F(Fun)

G(Gaming, Gambling)

H(Health, handset)

I(Infotainment)

J(Jokes)

K(Knowledge)

L(Location Based Services,LIMI (low income marginal income))

M(Music, mCommerce)

N(Networking, News)

O(ovi-like stores)

P(profile, Packaging, pricing)

Q(Quiz)

R(ringtones, Religion, Radio, Rural)

S(Search, Sachet)

T(TV on mobile, Ticketing)

U(Utilities, UGC)

V(vernacular, Voice)

W(Wallpaper, Widgets)

X(x-gen applications)

Y(youth based applications)

Z(ZooZoo(promotion & packaging)).

Do Post your feedback and Comments.

Thanks

City of Joy ..... I Feel Sad! : Part- II

Sahitya Sangeet aur kala?:
a legacy..a heritage..a tradition which has kept we Indians proud of our intellectual and creative capital and thanks to this part of India which has also been delivering to make te world go crazy about it but now when one looks for the traces of this legacy one could obviously find it but in ruins and deteriorating state and those who intend to carry ti forward has moved away from cities grooming their talent elsewhere.

when i was destined to come to city and being an literacy enthusiast i was excited to witness the city which was ironical in the so called art culture or say non-orthodox approaches to lives and loves. but when i look out for places where i could satisfy my this thirst i was troubled to find the state to which this segment has been pushed to..even comprising more than 50% of our batchmates are localities but i rarely find one which pursuing hobbies related to these and even few those have the talent have not been encouraging themselves due to poor encouragement form peer group. If one happens to visit any of the places where shows,event or festivals of such kind are being organised you will fins audiences but mostly comprising of those you have been visiting this place for this or the old generation who have not forgotten their love ...rarely you will find youth population except few backed by their parents.. The old generation which has carried forward the legacy to this date shave been neglected and seeing their present day condition i feel no amazement as to why will one carry it forward even if he or she desire when he cant buy his family a decent daily by way of it.

i have meet a few such old persons of whose if u happen to visit the picture gallery can see the types of starts which which they have performed side by side but their present condition speaks the other ways..a very old power glasses,sometimes one side broken..the album itself dating some 20 years back..even at 80 has to take public transport and a face filled with marks and expression signifying their struggle to live an respectable life and you cant blame everything to communist govt..what can they do if the residents them selves have separated themselves. I wish the old charm be restored someday and people get out of their hysteria of so called urbanisation!!


We have ample time..Relax!! - As me you just have visited a host of other metros and upcoming metro say for mumbai,delhi.B'lore, chandigarh etc....where have you find people relaxing even if they have been waiting at traffic for 20 minutes. Yes welcome to be a part of kolkata..when i first visited the place i was astonished to find that people had no issues even even if they kept waiting at traffic happily tuned ti their FM headset and listening to every set of Crap they transmit.

You don't expect an urban busy working classes behaving like that and that too waiting at traffic..had it been some relaxation point i would have appreciated their way of life.. Thanks to above culture city's per capita income and so the rich-poor divide and poors occupancy out of total pie has remained unchanged over the years for a trivia while mumbai delhi boosts almost same no. of residents as that of kolkata but if you look at the no. of millionaires they boosts more than double or triple of what kolkata has and to make things interesting while chandigarh have 15 times less population than that of kolkata its boosts of millionaire no. double of what kolkata boasts of..... arguing that delhi mumbai have become hubs of commercialization and that have resulted in such differences than i must refresh they memory that Kolkata was the centre of say only commercial hub when East India company operated and that if other legacy of East india Era has been carried forward and that too when many of the legendary companies has their first headquerters in kolkata...so it's the Lax culture on part of their residents and that coupled and magnified with the communist rule in the ever deteriorating state and with times ahead i would not be surprised if in future if i happen to see the remaining corporate head quarters moving away. As we joke among our self in kolkata it's difficult to find an pop n mom grocery store any where equivalent to the space that an tea shop boasts off..yes you can easily fins an 15 x 15 teashop with an huge CTV and a coal fired burner boasting more TV enthusiast than tea fans!!.

I had always liked the bold themes and the sensitiveness with which the theatre artist and cinema has been able to depict the state of humanity and it's revolving relationships but i rarely see an hindi art movie getting much popularity in multiplexes here...I liked the themes and cinemas with such touchy subject but i dont like the way the culture of city now is now being perceived by other as an Extra marital affair centre and as with other urbanised culture affair sex and short term achievements.......

I love the heritage of India of kolkata or of any place and right from my childhood days i have been fascinated by the glory of the legendary literary icons and have always thought of visiting the place and look for what drives them but now my visit becoming reality i feel sad no been able to find the reasons i was looking for because i see no young generation achieving the feat that legends have achieved and i feel sad because of the fact that in future i may not be able to say.."see that artist i had seen him since he was struggling and i knew one day he gonna make it".

City of JOY?....I feel SAD

No points for guessing the name of city but of course -10 for being ignorant or wrong answer. Yes i am talking of the same Calcutta or say "Kolkata" as is known now...

On one hand i say it's City of Joy and on the other i say i feel said..you must be thinking what a hypocrisy but i say not at all...and you will ask why? At present being an guest resident of city and witnessing the detoriation and extinction of City of Joy's charm i feel sad.

Hardcore fans of city will strongly agree or disagree and it's depends on the way they take my statement but one thing is certain that they will relate and accept what i mention ahead.

Many might never have been to city but have definitely witnessed the heritage of city by one way or other , let it by way of it being the headquarters of East India Company, be the starting of revolt against British empire (barrakpore in 1957), be it for its prestigious colleges and coffee house chats , be it for being the mass producer of India's most exceptional and talented art, media and literature personalities or at least for "Rosogolla's".

I landed in city a year back to per sue my post graduation and being an good literary and art work enthusiast and having developed an perception through knowledge from various medium i was very enthusiastic and was feeling proud to witness the past glory from my eyes and had planned a lot but now after near one year and having witness the various aspects of life and people i feel sad at the fact that sooner or later the remaining charm is also gonna wipe out if things don't change for better.

The things which might excite one to come down to witness it has now turned out to be the one which might sadden one the most. I will to put forward a few of examples which i have been testimony too and have felt sad and wish things change for better, for all kolkata citizens and for all who feel proud of it's history and culture.


Head Quarters British Empire or Young/Old couple's destination intimacy: Victoria Memorial- The first destination of most tourist has become a destination not to witness the history and its glorious past but as an non expensive destination for couples of all ages who comes to enjoy some moments of intimacy and too in historically rich and open garden ambiance!!.. yeah we do accept and are well aware that this things are very common in parks and places but in Victoria. Don't be surprised to see a couple under tress with umbrella on their faces or under pipes, behind boundaries drawn out of creepers and all when you happen to visit the place to witness the heritage. The happening of such acts is not the problem the problem is the ignorant act of police that has been deployed over there..if you are watchful enough you can easily locate an act of public offence being carried out in bench next to where two of the guards might be having a tea or having a chat... Can;t they ensure a decent environment when they are very much instrumental in ensuring no plastic bags on Victoria's Campus. Are we not entitled to witness heritage without a moment of embarrassment to us or to persons accompanying us. I never saw the same things in Red Fort Campus or for say in Qutub minar..at least not in the magnitude and openness that is here..

In my next post i will be writing more on the topic..keep commenting!!