The assignment calls to analyze the decision making process of consumers while they purchase a certain product or a service using the principles of consumer behaviour. I have chosen to analyze the making process of consumers while they purchase a mobile device. The brand under study is Karbonn mobiles. In order to better analyze a consumers buying behaviour I will be working under two assumptions through the assignment. One – the consumer is an under-graduation student with low disposable income from India (cost conscious consumer). Two – he is interested in purchasing a touch phone which has a lot of “fun” features like apps for social networking, games, media centre ...view middle of the document...
5 million mobiles. This might be small in the Indian market for mobile phones which is estimated at 100 million per annum, but not insignificant. Indian consumers want more and more features on their phones at as low price points as possible, Karbonn Mobile seems to know this. The company offers customers the same features and quality that they get in global brands at an affordable price range of Rs 1,700 to Rs 6,999 (a huge bulk of handset sales happen in these price points). The multimedia phones of Karbonn address the urban markets while the dual SIM card and models with high battery life are targeted at the rural markets. Around 60 models are currently being offered by the company, including touch-screen, dual SIM, and multimedia in both GSM and CDMA spaces.
Karbonn Mobiles has earmarked an investment of Rs 2 billion during the financial year 2010-11 for product development, marketing and sales operations in India, Bangladesh, Sri Lanka and Nepal and has expanded its reach to other emerging markets in the Middle East and Africa. As a company, Karbonn has always looked at reaching out to its audience in innovative ways and that has helped the company in firmly establishing itself as a leading Indian mobile phone brand. Karbonn mobiles has associated itself with the sports and the entertainment industry over the past two years and they have roped in star players like Gautham Gambir, Kholi and Shewag as their brand ambassadors, clearing targeting the youth.
The company is investing more than $5 million in their marketing and promotional campaigns for the year 2011. In the $400 billion retail market in India, retailer push plays a very major role in the consumer’s decision and currently mobile handsets are being sold through over a million multi-brand outlets in the country. To make sure that the Karbonn brand does not lag behind others, the company is offering extremely competitive margins to dealers. The company runs various incentive schemes and contests regularly to encourage the dealer community. Karbonn Mobiles intends to have five to ten exclusive Karbonn stores in all the major states of the country by the end of this financial year. The company is currently in the 4th position in terms of units sold in India.
III. Stages of adoption:
Consumer buyer behaviour refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market (Philip Kotler). Based on individual mental orientations, each consumer develops and practices this decision making process in different ways which have been characterized as decision making styles (Sproles & Kendall). It is becoming increasing important for marketers all over the world to know how young consumers decide which particular product, brand or service to purchase as governments across the globe are opening their markets to international players giving a wide variety...