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Case Studies On Customer Behaviour

The document discusses two case studies related to consumer behavior. The first case study examines factors that affected sales for a cosmetics company, highlighting the importance of considering additional social and cultural factors beyond just income when modernizing products. The second case study looks at an automatic vending machine company that successfully expanded its offerings at several locations but faces challenges motivating consumers to purchase cards over cash and adopting additional product lines.

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Shubham Kumar
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195 views2 pages

Case Studies On Customer Behaviour

The document discusses two case studies related to consumer behavior. The first case study examines factors that affected sales for a cosmetics company, highlighting the importance of considering additional social and cultural factors beyond just income when modernizing products. The second case study looks at an automatic vending machine company that successfully expanded its offerings at several locations but faces challenges motivating consumers to purchase cards over cash and adopting additional product lines.

Uploaded by

Shubham Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Studies on Consumer Behaviour

I. Factors affecting consumer behaviour


Martin Incorp. was a company carrying on business in cosmetics and perfumes.
It was not following the marketing concept and was catering to a target market
which was using its products. In other words, it only concentrated on what it
would make, and did not bother about changes in preferences of its target market.
It was later joined by Mr. Ash, a marketing graduate who advised the company
regarding the changing consumer preferences, and the changes that were
necessary to be incorporated in the product. He emphasised upon the income
factors, and social factors only. He modernised the products to a great extent, and
invested about 30 lakhs on new packing, etc. Even after six months of these
changes brought about by him, the company did not seem to have a proportionate
increase in sales. The assistant manager and the product manager were not very
happy with the changes, and thought that although an effort has been made in the
right direction, some important factors concerning consumer behaviour had been
neglected.

Questions:
1. Do you agree with the assistant and product managers, and why?
2. What other factors, if any, could have been considered? Elaborate in detail.
II. Kiosk Machines
Thomson was a limited company manufacturing vending machines. These
machines could be used for automatic vending of cigarette packs, match boxes,
tea, coffee, cold drinks, chocolates and many other products. The vending
machines had to be programmed for vending various items. One machine could
handle a variety of products as well. These were to be installed at shopping
centres, cinema halls, public places, hotels, etc. The manufacturer started with
installing these machines in various parts of the city for selling coffee and tea.
The machines became popular, as they served the customers with both tea/coffee
at a standard price, and the customer had the choice of having strong or light, with
or without sugar, more or less milk depending on his choice. As they became
popular, more and more machines were set up at strategic places like bus stations,
railway platforms, etc. so that the customer had an access to the beverage,
whenever he needed it. In the beginning, an attendant was also required to stand
with the machines, as they were not fully automatic. Later, fully-automatic
machines were developed, which could work without the help of an attendant.
The attendant had to come only once, to replenish the stocks, and take out the
cash from the machines. A difficulty that was faced, was that these machines did
not accept torn notes, or some coins which got stuck in them. To overcome this
difficulty, the company was contemplating to introduce a card system, which
could be purchased with Rs. 100, or its multiples, and on using these cards, the
amount would get debited automatically and the balance would be known by the
consumer. The survey showed the results, but a lot of effort would be required to
motivate the consumers to buy these cards. The company also contemplated
providing the consumers with other products as well. These could be cigarettes,
soaps, oils, cold drinks, chocolates, biscuits, etc.

Questions:
1. Do you think that the company will succeed in selling other products along
with the tea/ coffee they are already selling?
2. How can the company motivate the consumers to buy other products, as well
as, to use the cards instead of cash?

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