Sunday, 3 August 2014

Consumer Buying Decision process

Consumer Decision process elements
The below figure gives a good understanding about the consumer buying process and then can further relate it to Nirma.


    Problem Recognition/Requirement:  During the times when Surf was the only detergent available in the market and it targeted only the premium segment of the society, Nirma was a brand which was available at almost one third of Surf’s price. Nirma washing powder is basically bought by the people who want to use a detergent to wash their clothes but cannot afford premium brands like Surf. They also expect a quality product for the monetary cost.
Information Search: Nirma distributed its product initially from home to home which made it popular through word of mouth. ­­­Nirma first launched a Radio advertisement with the tagline ‘Sabki pasand Nirma’. Television advertisements also brought in the information about the product which the buyer was looking for. Then there were repeated users who bought the product or the first time user who wanted to try a new product.
Evaluation of alternatives: It was an innovative product which was of good quality at a very reasonable price.
Purchase Decision: Nirma was an instant success because of its quality and affordable price. The detergent industry was dominated by Surf which was not affordable to all classes of the society. The introduction of Nirma allowed the middle and lower middle class society to buy a detergent powder. While the price of one kilogram of Surf was at the price of Rs.13/- , Nirma charged Rs.3/- with the cash back guarantee if not satisfied. This led to people choosing Nirma over the other brands.
Post purchase behaviour: The consumers who used Nirma were satisfied with the quality it offered. It was a brand that was not only cost efficient but also a product which did not compromise with its quality. This made the consumers to buy the product again.

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