INTERNAL RESEARCH ASSIGNMENT

Name of the candidate: KHUSHBOO MALHOTRA

Enrollment No. : 07380303914
Course: MBA II (EVE SHIFT) SECTION -B
Batch: 2014-2016
Subject: CONSUMER BEHAVIOUR
Subject code: MS-209
Topic of assignment: Q1
Subject Teachers name: MS.SURBHI MALHOTRA

Research Assignment
Question 1:
Discuss the emerging trends in Indian market with special
reference to changing consumer behavior by stating the
importance of Omnichannel. Explain the application of
understanding consumer behavior in marketing decision?

Answer 1:
THE EMERGING TRENDS IN INDIAN MARKET WITH
RESPECT OF OMNICHANNEL
1) More brands feel they are lagging behind in omni-channel
If your omni-channel strategy isnt among the elite, dont fret because you are not
alone. In a recent study by SPS Commerce over 37% of businesses feel as though
they are still exploring their omni-channel options and have not developed a long
term strategy. This percentage is up from onlymer behavconsu29% last year and
these numbers likely indicate omni-channel commerce is moving at a pace that is
becoming difficult for some brands to keep up with.

2) Omni-channel partnerships are becoming more viable and frequent

The speed at which omni-channel commerce continues to grow is being led by
consumers and continues to move faster than some brands can handle.
Partnerships are often pursued to meet consumer demands and can result in the
need for specific internal personnel to manage the integration and relationship of
partner programs for their omni-channel solution ecosystem. Some companies are
even looking at their competitors to understand their next steps in omni-channel
commerce and how to prioritize their growth in this area of their business.

3) Cross-department collaboration is becoming more critical

Omni-channel commerce has become much more complex and thus more
employees from different departments are involved (sometimes reluctantly).
Brands are looking for more employees with backgrounds in multiple functional
areas (i.e. an employee with IT and digital marketing experience) to lead their
initiatives. These employees position the company to effectively communicate
across the organization and with their partners to support the entire technology
ecosystem. This can help to break down silos in an organization and improve
communication internally an important tool as software, technology, and
systems continue to evolve in the coming years.

4) Consumers are starting to prefer NO interaction with sales associates

A recent study by Deloitte stated consumers would not only rather find
information themselves on their smart phones to assist their shopping experience
(i.e. looking up prices, item availability, product information, in-store item
location) but would also prefer to use unmanned in-store devices such as kiosks
and digital displays. Data from comScore also agreed with this conclusion as
showrooming continues to rise (up 4% from the previous year) and is nearing
50% of all smartphone users. Another telling insight for the avoidance of sales
associates relates to a recent study by the e-tailing group where the most
important omni-channel feature for consumers is to check the availability of
products before visiting the store. This is likely due to consumers not wanting to
waste a trip to the store if a product is unavailable but also likely factors in the
need to find and ask a sales associate for product information.

5) Online-only brands seek physical stores

With consumers preferring not to deal with traditional sales associates and the
closing of large traditional brick and mortar retail chains, some large online-only
brands are currently pursuing store locations to create an omni-channel presence.
With less staffing requirements needed than in the past, this tactic is a reversal
from the more traditional omni-channel path of linking traditional physical
locations (often founded before online sites) with an online presence. The interest

in these locations also shows that these stores still hold long-term value in the
retail industry. The brands pursuing stores likely understand that within the retail
industry fewer sales are coming from store-only visits where a consumer walks
into a store, finds a random product, and purchases it on the spot. Instead, there is
an increase in online interactions (the expertise of these brands) playing at least
some role in the purchasing process. According to Forrester Research, storyonly sales accounted for $1.6 trillion in sales in the U.S. in 2012 but are project
to account for just $1.4 trillion in sales by 2017.

6) Dynamic pricing through omni-channel data

This is an opportunity for brands, especially with an existing large online
presence, to make more money and increase customer satisfaction. Dynamic
pricing is a newer retail trend where prices fluctuate based on consumer demand,
similar to hotel and airline rates. By monitoring both product supply and demand
in real-time through automated technology, dynamic pricing can boost online
prices (and also in-store, although this is less common) when demand is high and
inventory is low or can decrease online prices if inventory is high to move product
for optimizing warehouse and store shelf space. Some large brands already
change prices several times per day based on the demand of their own products.

7) B2C omni-channel expectations are starting to move into B2B

With higher demands placed on price and immediacy throughout the shopping
experience, traditional consumers arent the only people looking to make smarter
decisions. More purchasing agents and product procurement professionals across
multiple industries have become more familiar with the omni-channel experience
over the past year and are now expecting a similar offering from their B2B
suppliers. Automation of omni-channel operations, such as ship-to-store and a
well-functioning in-store pick up solution, are becoming more common requests
for some B2B suppliers with or without an omni-channel presence. According to
StellaService, 58% of the time spent in the store during an in-store pick up is
actually spent at the checkout desk. This has led some brands to allow their
customers to schedule a pick up time and create a dedicated in-store line
specifically for these people. This tactic can help decrease time spent on an in-

store pick up (a concern for B2B suppliers) and can make the process easier for
both customers and brands.
In conclusion, omni-channel commerce has taken some unique and unexpected turns
from just twelve months ago. As growth continues to move at a fast pace, some brands
will likely look to partnerships to keep afloat and evaluate their current strategy
(especially in physical stores). Moving forward it will be interesting to see how the large
online-only brands increase or start their brick-and-mortar footprint as well as the
evolution of omni-channel commerce for B2B companies.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in
the afternoon. By understanding that new products are usually initially adopted by a
few consumers and only spread later, and then only gradually, to the rest of the
population, we learn that (1) companies that introduce new products must be well
financed so that they can stay afloat until their products become a commercial success
and (2) it is important to please initial customers, since they will in turn influence
many subsequent customers brand choices.

A second application is public policy. In the 1980s, Accutane, a near miracle cure for
acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken
by pregnant women. Although physicians were instructed to warn their female
patients of this, a number still became pregnant while taking the drug. To get
consumers attention, the Federal Drug Administration (FDA) took the step of
requiring that very graphic pictures of deformed babies be shown on the medicine
containers.

Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce the incidence of transmission of diseases
through illegal drug use. The best solution, obviously, would be if we could get illegal

drug users to stop. This, however, was deemed to be infeasible. It was also
determined that the practice of sharing needles was too ingrained in the drug culture
to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein
created a campaign that encouraged the cleaning of needles in bleach before sharing
them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers.

Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay less per ounce than if you bought two 32 ounce
bottles. In practice, however, you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact will sensitize you to the need
to check the unit cost labels to determine if you are really getting a bargain.

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Master Document Text

AssignmentQuestion:-Discuss the emerging trends in Indian market with special
reference to changing consumer behavior by
stating the importance o Omnichannel. Explain the application of understanding
consumer behavior in marketing decision?Answer:-The emerging trends in
Indian market in context of Omnichannel are:1) More brands feel they are "lagging
behind" in omni-channel - If your omni-channel strategy isn't among
the elite, don't fret because you are not alone. In a recent study by SPS Commerce over
37% of businesses feel as though they are still exploring
their omni-channel options and have not developed a long term strategy. This percentage
is up from onlymer behavconsu29% last year and these numbers
likely indicate omni-channel commerce is moving at a pace that is becoming difficult for
some brands to keep up with.2) Omni-channel partnerships are
becoming more viable and frequent - The speed at which omni-channel commerce
continues to grow is being led by consumers and continues to move faster
than some brands can handle. Partnerships are often pursued to meet consumer demands
and can result in the need for specific internal personnel to
manage the integration and relationship of partner programs for their omni-channel
solution ecosystem. Some companies are even looking at their
competitors to understand their next steps in omni-channel commerce and how to
prioritize their growth in this area of their business.3) Cross
department collaboration is becoming more critical - Omni-channel commerce has
become much more complex and thus more employees from different
departments are involved (sometimes reluctantly). Brands are looking for more
employees with backgrounds in multiple functional areas (i.e. an
employee with IT and digital marketing experience) to lead their initiatives. These

employees position the company to effectively communicate across

the organization and with their partners to support the entire technology ecosystem. This
can help to break down silos in an organization and improve
communication internally - an important tool as software, technology, and systems
continue to evolve in the coming years.4) Consumers are starting
prefer NO interaction with sales associates - A recent study by Deloitte stated consumers
would not only rather find information themselves on
smart phones to assist their shopping experience (i.e. looking up prices, item availability,
product information, in-store item location) but would
also prefer to use unmanned in-store devices such as kiosks and digital displays. Data
from comScore also agreed with this conclusion as showrooming
continues to rise (up 4% from the previous year) and is nearing 50% of all smartphone
users. Another telling insight for the avoidance
associates relates to a recent study by the e-tailing group where the most important omnichannel feature for consumers is to check the availability
of products before visiting the store. This is likely due to consumers not wanting to
"waste" a trip to the store if a product is unavailable but
also likely factors in the need to find and ask a sales associate for product information.5)
Online-only brands seek physical stores - With consumers
preferring not to deal with traditional sales associates and the closing of large traditional
brick and mortar retail chains, some large online-only
brands are currently pursuing store locations to create an omni-channel presence. With
less staffing requirements needed than in the past, this
tactic is a reversal from the more traditional omni-channel path of linking traditional
physical locations (often founded before online sites) with
an online presence. The interest in these locations also shows that these stores still hold
long-term value in the retail industry. The brands
pursuing stores likely understand that within the retail industry fewer sales are coming
from "store-only" visits where a consumer walks into a store
finds a random product, and purchases it on the spot. Instead, there is an increase in
online interactions (the expertise of these brands) playing at
least some role in the purchasing process. According to Forrester Research, "story-only"
sales accounted for $1.6 trillion in sales in the U.S. in
but are project to account for just $1.4 trillion in sales by 2017.6) Dynamic pricing
through omni-channel data - This is an opportunity
especially with an existing large online presence, to make more money and increase
customer satisfaction. Dynamic pricing is a newer retail trend
where prices fluctuate based on consumer demand, similar to hotel and airline rates. By
monitoring both product supply and demand in real-time
through automated technology, dynamic pricing can boost online prices (and also instore, although this is less common) when demand is high and
inventory is low or can decrease online prices if inventory is high to move product for
optimizing warehouse and store shelf space. Some large brands
already change prices several times per day based on the demand of their own products.7)
B2C omni-channel expectations are starting to move into B2B
With higher demands placed on price and immediacy throughout the shopping
experience, traditional consumers aren't the only people looking to make
smarter decisions. More purchasing agents and product procurement professionals across

multiple industries have become more familiar with the omni

channel experience over the past year and are now expecting a similar offering from their
B2B suppliers. Automation of omni-channel operations, such
as ship-to-store and a well-functioning in-store pick up solution, are becoming more
common requests for some B2B suppliers with or without an omni
channel presence. According to StellaService, 58% of the time spent in the store during
an in-store pick up is actually spent at the checkout desk
This has led some brands to allow their customers to schedule a pick up time and create a
dedicated in-store line specifically for these people. This
tactic can help decrease time spent on an in-store pick up (a concern for B2B suppliers)
and can make the process easier for both customers and
brands.In conclusion, omni-channel commerce has taken some unique and unexpected
turns from just twelve months ago. As growth continues to move at a
fast pace, some brands will likely look to partnerships to keep afloat and evaluate their
current strategy (especially in physical stores). Moving
forward it will be interesting to see how the large online-only brands increase or start
their brick-and-mortar footprint as well as the evolution of
omni-channel commerce for B2B companies.There are four main applications of
consumer behavior:The most obvious is for marketing strategy-i.e., for
making better marketing campaigns. For example, by understanding that consumers are
more receptive to food advertising when they are hungry, we learn
to schedule snack advertisements late in the afternoon. By understanding that new
products are usually initially adopted by a few consumers and only
spread later, and then only gradually, to the rest of the population, we learn that (1)
companies that introduce new products must be well
so that they can stay afloat until their products become a commercial success and (2) it is
important to please initial customers, since they will
turn influence many subsequent customers' brand choices.A second application is public
policy. In the 1980s, Accutane, a near miracle cure for acne
was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by
pregnant women. Although physicians were instructed to warn
their female patients of this, a number still became pregnant while taking the drug. To get
consumers' attention, the Federal Drug Administration
FDA) took the step of requiring that very graphic pictures of deformed babies be shown
on the medicine containers.Social marketing involves getting
ideas across to consumers rather than selling something. Marty Fishbein, a marketing
professor, went on sabbatical to work for the Centers for
Disease Control trying to reduce the incidence of transmission of diseases through illegal
drug use. The best solution, obviously, would be if we
could get illegal drug users to stop. This, however, was deemed to be infeasible. It was
also determined that the practice of sharing needles was too
ingrained in the drug culture to be stopped. As a result, using knowledge of consumer
attitudes, Dr. Fishbein created a campaign that encouraged the
cleaning of needles in bleach before sharing them, a goal that was believed to be more
realistic.As a final benefit, studying consumer behavior
should make us better consumers. Common sense suggests, for example, that if you buy a
64 liquid ounce bottle of laundry detergent, you should
less per ounce than if you bought two 32 ounce bottles. In practice, however, you often

pay a size premium by buying the larger quantity. In

words, in this case, knowing this fact will sensitize you to the need to check the unit cost
labels to determine if you are really getting a bargain