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Abstract:
Tesco was the leading retailer in the United Kingdom. It was also the fourth largest international
supermarket chain. Tesco, which had started with retailing food, had subsequently diversified
into non-food segments like clothes, consumer electronics, consumer financial services, selling
and renting DVDs, CDs, music downloads, Internet service and telecom. Tesco's brand image
was associated with good quality and trustworthy goods. In the late nineties, as the economy
stagnated and competition intensified in the UK retail industry, Tesco realised the need to look
for new avenues of growth. The company decided to enter the hitherto unexplored area of on-line
retailing in 1996. The case discusses Tesco's on-line sales strategy, in which, along with the
other direct sales channels, on-line selling was used as a significant sales channel. The case
discusses the various stages in development and progress of Tesco's on-line channel.
Pedagogical Objectives:
Keywords : Tesco the UK's largest retailer, Tesco food and non-food retailing, Tesco store
formats - Extra, Supermarkets, Metro Express and One Stop stores, UK retail industry,
Competitors - ASDA, Sainsbury's, Intensifying of the competition in UK market, Tesco looking
for new growth avenues, Tesco-pioneering on-line retailing, Tesco.com, Profitable business
model of Tesco.com, Tesco - 66% market share of the UK's on-line shopping market by 2006,
Tesco - achieving 1 billion in on-line revenues
Case Title:
Indian Consumers: Shopaholics by Chance,
Dealaholics by Choice? (B): Impulsive vs
Compulsive Buying Motives
Publication Year : 2010
Authors: Kumar Gambhiraopet and T.Prashanth Vidya Sagar under the guidance of
Dr.Nagendra V Chowdary
Industry: Services
Region:India
Case Code: CSB0031
Teaching Note: Available
Structured Assignment: Not Available
Abstract:
While the prequel, case study (A) sets the impetus to derive the conclusions, case study (B)
provides rigour to it by analysing the impact of deals on the buying behavioural motives of
Indian consumers and their implications on the marketers thereof. It takes the cue from drawing
the fine line between compulsive and impulsive buying behaviour and examines what are the
possible chances of these behaviours to take the shape of disorders.
Set in mid-2010, the case study meanders, evaluating the nuances whether ‘attraction towards
discount prices’ is an induced or deduced behavioural pattern that pops up in the Indian
consumers. The case further probes whether the promotional sale-offers have conditioned the
minds of the consumers or they are brought up as such? Or their rising purchasing power and
affordability makes them shopaholics? Or it is that the Indian consumer craves for ‘value for
money’ in toto? Answering all these dilemmas, the case study provides ample information to
address this dilemma – who creates whom? The marketers create the dealaholics or is it the other
way round?
Qs; Pedagogical Objectives:
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To understand the differences between impulsive buying behaviour and compulsive buying
behaviour and debate on the marketing/selling implications of such behavioural differences
To discuss and debate on the nature of relationship between impulsive buying behaviour and
dealaholics and compulsive buying behaviour and shopaholics
To examine the nature of Indian consumers’ behaviour of being ‘value seekers’ and debate on
whether Indian consumers can broadly be construed as shopaholics or dealaholics or both?
Keywords : Consumer Behavior, Retailing, Shopaholics, Dealaholics, Impulsive Vs Compulsive
Buying Behavior, Indian Consumers' Behavior, Indian Retailing, Discounts, Price Deals,
Freebies, Value, Value Retailing, Price Bundles, Product Bundles, Anchoring Bias, Price
Discounts, Marketing Mix, Buyer Behavior towards Deals
Contents:
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Compulsive Buying Behaviour
The Indian Consumer 'Values' Value
'Value' is in ‘More For Less’
Value Retailing and Price Bundles vs
Product Bundles
Are Indian Consumers Shopaholics or
Dealaholics?- Economic Reforms and
‘Cheap’ Shift
Case Title:
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Indian Consumers: Shopaholics or
Dealaholics?
 Shopaholics
 Dealaholics
 Shopaholics or Dealaholics?
The Price Deals: Induced or Deduced
Consumer Behaviour?
At Discounted Price
Anchoring Bias
Assignment Questions
Indian Consumers: Shopaholics By Chance,
Dealaholics By Choice? (A): An Exercise
Publication Year : 2010
Authors: Kumar Gambhiraopet and T.Prashanth Vidya Sagar under the guidance of
Dr.Nagendra V Chowdary
Industry: Services
Region:India
Case Code: CSB0030
Teaching Note: Available
Structured Assignment: Not Available
Abstract:
Developed for Consumer Behaviour course, the premise of this case study is to understand the
difference between shopaholics and dealaholics through five illustrations featured in the exercise.
Why do deals cast spell on the consumers? What does it take the consumers to become
shopaholics and dealaholics – The buying behaviour or the irresistible deals? Or shall we blame
it on the changing lifestyles?
The illustrations in the case study are devised in order to figure out the typical Indian consumer’s
reactions towards various price deals and price bundles. The exercise also focuses on the buying
behaviour of the Indian consumers in the backdrop of impulsive and compulsive buying motives.
It provides sizeable base to derive conclusions in establishing the circularity of relationship
between price deals, impulsive buying behaviour and compulsive buying behaviour and
challenges the assumption whether these behavioural patterns interchange over a period of time?
Or which behaviour outcasts which one?
Pedagogical Objectives:
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To understand the differences between shopaholics and dealaholics and analyse the
implications of each of these consumer categories
To analyse how a typical Indian consumer would respond to price deals and debate on the
role of deals (price bundles, product bundles, discounts, etc.) in shaping the consumer
behaviour
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To understand the differences between impulsive and compulsive buying behaviour and
examine if there is any circularity of relationship between price deals, impulsive buying
behaviour and compulsive buying behaviour (shopaholism).
Keywords : Consumer Behavior, Retailing, Shopaholics, Dealaholics, Impulsive Vs Compulsive
Buying Behavior, Indian Consumers' Behavior, Indian Retailing, Discounts, Price Deals,
Freebies, Value, Value Retailing, Price Bundles, Product Bundles, Anchoring Bias, Price
Discounts, Marketing Mix, Buyer Behavior towards Deals
Case Title:
Online Shopping Behaviour: Indian vs
International Consumers
Publication Year : 2010
Authors: T. Sai Vijay and Prashant Vidya Sagar under the direction of Dr.Nagendra V.
Chowdary
Industry: Services
Region:India
Case Code: CSB0029
Teaching Note: Available
Structured Assignment: Available
Abstract:
Set in early 2010, this case study details and contrasts Internet penetration, Internet usage rates
and level of e-commerce activity in the developed countries and other e-commerce active
countries with that of developing and other e-commerce-dormant countries. The case, in the
backdrop of all the accompanying information, enables a lively discussion on what it takes
Indian market to reach $100 billion level by 2020. This involves behavioural and institutional
(hard and soft infrastructure) modifications. The case facts enable a thorough analysis of the
desired modifications. Ideally suited for Consumer Behaviour course, this case study can also be
used for Business Strategy course.
In developed and other e-commerce active countries, there exists a perfect correlation between
the Internet penetration and online shopping figures. Though there has been some progress in
India, a large potential pool of online shopping community has not yet been tapped. What factors
would facilitate a change in Indian consumers’ behaviour towards online shopping? In other
words, what it takes to convert Indian traditional (terrestrial) shoppers into Internet shoppers?
Pedagogical Objectives:
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To understand the contributing factors – the soft infrastructure and hard infrastructure – for ecommerce growth in some of the developed and other e-commerce active countries
To critically analyse and contrast the correlation between Internet usage rates and the ecommerce trends in the developed countries and other e-commerce active countries such as
India
To discuss and debate on creating the enabling environment – the soft and hard infrastructure
– to facilitate e-commerce growth in India.
Keywords : Consumer Behavior, E-Commerce in India,internet penetration and Internet using in
india, Online shopping behaviour,Broadband Connectivity, Online-shopping buying
Motive,Products Shipped on-line, Traditional Shopping Vs Online-Shopping,Usage of Internnet
across Demographic segments,Internet User categories,Key Concerns during Onlineshopping,on-line Frauds,Fishbein Model,E-tailing
Tata Nano: Consumers' Post-Purchase
Behavior
Publication Year : 2010
Authors: Kumar Gambhiraopet, Prashant Vidya Sagar Talluri
Industry: Manufacturing
Region:India
Case Code: CSB0028
Teaching Note: Available
Structured Assignment: Available
Abstract:
Hundred years ago, when Henry Ford unveiled ‘Model T’ in US as the people’s car, many a
company followed suit. Incidentally after a century, history repeated itself when Ratan N. Tata
(Ratan Tata), chairman of Tata Sons, the promoter company of the Tata group, announced his
long-cherished dream to produce the world’s cheapest car, Tata Nano, at an amazing price of
INR 1lakh.
As Tata Nano vroomed to the customers on March 23rd 2009, few questions arose: How are the
consumers receiving it? Has the dream of Ratan Tata come true? Set in early 2010, this case
study focuses on the post-purchase behaviour of Tata Nano buyers. The post-purchase
perceptions, dissonance levels and moments of pride have been analysed with the help of
primary data collected through video interviews conducted among 8 customers of Tata Nano in
Hyderabad, India, in mid-January 2010. The case study runs in the backdrop of the
conceptualisation of theTataNano car and the roadblocks that cropped up during its production.
This case study, primarily positioned to discuss the dissonance levels in new products, offers
valuable insights.
Pedagogical Objectives:
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To understand the conceptualisation of Nano car as the world’s cheapest car by Tata Motors
and analyse the causes and concerns in taking the car from drawing board to board room to
the shop floor
To debate on whether the introduction of Tata Nano would herald the new age of small cars in
general and whether India can become the hub for small cars in particular
To understand the bottlenecks involved in the production ofTataNano and critically examine
the influence of those bottlenecks on the buying behaviour of the customerswhile purchasing
Tata Nano, as well as on the brand Tata and its impact on the brand loyalty thereof
To debate on the success of Tata Nano car in the wake of consumers’ post-purchase
perceptions and assess their levels of dissonance
To raise a general debate on addressing all the possible cognitive dissonance touch points in
the case of new products – launched either by an existing and established company or a new
company.
Keywords : Cognitive Dissonance, Consumer Post Purchase Behavior, Post Purchase
Dissonance, Post Purchase Dissonance in New Product, New Products' Cognitive Dissonance,
Levels of Cognitive Dissonance, Consumer Satisfaction / Dissatisfaction, Tata Nano, Building
Brands, Brand Loyalty, Customer Loyalty Vs Brand Loyalty
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