Analyzing Consumer Markets - Consumer Behavior

To understand consumer behavior, the first step is the stimulus response model. These in turn lead to a consumer's decision process. 

Marketing Stimuli

• Product - Pepsi
• Price - Rs. 8 (inclusive of all taxes, 200ml), Rs. 25 (600ml)
• Distribution - wholesalers, retailers, groceries
• Communications - Advertising targeting the youth

Other Stimuli

• Economic - affordable, low cost soft drink

Consumer Psychology

• Motivation - Pepsi is consumed to quench thirst (physiological needs)
• Perception - The brand perception is created by the awareness that is built by the communication strategies, the brand is perceived as a youth brand.
• Memory - Pepsi as a brand has been built over decades. An advertisement of the past which drew a lot of appeal could be a factor that gravitates one towards the brand.

Consumer Characteristics

• Cultural - We want to have a drink while we eat, a drink which is sweet and has a fizz satiates the spice in food, also cheesy products make you more thirsty
• Social - Youth
• Personal - Refreshing, sweet

 Buying Decision Process. which is the next step in the stimulus response model is explained in the earlier posts. 

To summarize, the finale purchase decision depends on the choice of the product as well as the brand which plays a role in making the decision, this is backed by the price and the time taken to purchase the product.