“A study on Consumer buying behavior towards Branded and Non Branded readymade garments in Ludhiana”

Final Research Project Report

Submitted to Punjab Technical University, Jalandhar

in partial fulfillment of the requirement of the degree of

Bachelor of Business Administration

By

Vaani

Student (BBA)

Roll No: 81501320261

Department of Business Management

Punjab College of Technical Education, Ludhiana

2008-2011

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PREFACE

In this Era of Globalization and Liberalization of the Economy, business practices are in the

process of getting modified at greater speed with the change in the policies and procedures of

government. In the context, business education is also witnessing great transformation which

strikes for excellence to meet the global standards so that our new managers are not only able to

feel the pulse of those changes but may also be able to get them absorbed to do the right things at

a right time .therefore Finance plays a very potent force in an organization to achieve its

endeavor.

I have taken my project report “Consumer buying behavior regarding branded and non -branded

readymade garments in Ludhiana”. Hope this report will prove to be an indispensable companion

for all those who are concerned & who are in any way interested in the subject matter of this

report.

2

CERTIFICATE-I

This is to certify that the thesis/dissertion entitled,” Consumer buying behavior towards

Branded and Non branded readymade garments in Ludhiana” submitted for the degree of

bachelor of Business Administration (BBA), in the Major specialization in Marketing from

Punjab Technical University, Jalandhar, is a bonafide research work carried out by Vanisha,

student of BBA, under my supervision and that no part of this thesis has been submitted for

another degree.

The assistance and help received during the course of investigation have been fully

acknowledged.

______________

Mr. Pankaj Maini

(Major Advisor)

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ACKNOWLEDGMENT

I express my sincere gratitude and indebtedness to my Major Advisor Mr. Pankaj Maini, Faculty,

Department of Business Management, Punjab College of Technical Education, Ludhiana for

their ever willing and constant encouragement in exploration of my present investigation and

preparation of the project.

I am also thankful to members of Advisory Committee and other faculty members of the

department for their unending support and guidance.

I would fail in my duty if I do not acknowledge the blessing of almighty God and the efforts of

my friends whose tremendous support and inspiration cannot be explained in words.

I am equally thankful to my respondents and all those who made the completion of study

possible.

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CHAPTER NO.

CHAPTER NAME PAGE NO.

1 Introduction:- 1-17

• Title and Objectives 18

• Need and Scope 18-19

• Limitations 19

2 Review of literature 20-23

3 Research methodology 23-26

4 Analysis and interpretation 27-40

5 Summary and Conclusion 41-43

(i) Results and Findings 41-42

(ii) Suggestions 42

(iii) Conclusion 43

Bibliography 44

Annexure

- Questionnaire 45-47

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TABLE INDEX

Table no.

Table description Page no.

4.1 Number of people like to do shopping 27

4.2 Number of people like to do shopping through various places 28

4.3 Frequency of visits 29

4.4 Number of people who are brand conscious 30

4.5 Number of people buy different brand of cloths 31

4.6 Number of people prefer a particular brand or company 32

4.7 Number of people thinks brand is a status symbol 33

4.8 Number of parameters which effects consumer buying decision

34

4.9 Preference of people regarding type of cloth 35

4.10.1 Consideration on price while buying a cloth 36

4.10.2 Consideration on design while buying a cloth 37

4.10.3 Consideration on discount while buying cloths 38

4.10.4 Consideration on sales promotion while buying an cloth 39

4.11 Satisfaction of customers regarding brand/company available

in the market

40

GRAPH INDEX

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Graph no.

Description Page no.

4.1 Number of people like to do shopping 27

4.2 Number of people like to do shopping through various places 28

4.3 Frequency of visits 29

4.4 Number of people who are brand conscious 30

4.5 Number of people buy different brand of cloths 31

4.6 Number of people prefer a particular brand or company 32

4.7 Number of people thinks brand is a status symbol 33

4.8 Number of parameters which effects consumer buying decision

34

4.9 Preference of people regarding type of cloth 35

4.10.1 Consideration on price while buying a cloth 36

4.10.2 Consideration on design while buying a cloth 37

4.10.3 Consideration on discount while buying cloths 38

4.10.4 Consideration on sales promotion while buying an cloth 39

4.11 Satisfaction of customers regarding brand/company available

in the market

40

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CHAPTER-1

INTRODUCTION

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Consumer Buying Behavior

Definition of Buying Behavior:

Buying Behavior is the decision processes and acts of people involved in buying and using

products.

Need to understand:

• Why consumer makes the purchase that the make?

• What factors influence consumer purchases?

• The changing factor in our society

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs

to analyze buying behavior for:

• Buyer’s reactions to a firms marketing strategy has a great impact on the firms success.

• The marketing concept stresses that a firm should create a Marketing Mix (MM) that

satisfies (gives utility to) customers, therefore need to analyze the what, where, when and

how consumers buy.

• Marketers can better predict how consumers will respond to marketing strategies.

What influences consumers to purchase products or services? The consumer buying process is a

complex matter as many internal and external factors have an impact on the buying decisions of

the consumer.

When purchasing a product there several processes, which consumers go through. These will be

discussed below.

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Problem Recognition

Information Search

Evaluation and Selection of Alternatives

Decision Implementation

Post-purchase Evaluation

1. Problem/Need Recognition

How do you decide you want to buy a particular product or service? It could be that your DVD

player stops working and you now have to look for a new one, all those DVD films you

purchased you can no longer play! So you have a problem or a new need. For high value items

like a DVD player or a car or other low frequency purchased products this is the process we

would take. However, for impulse low frequency purchases e.g. confectionery the process is

different.

2. Information search

So we have a problem, our DVD player no longer works and we need to buy a new one. What’s

the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same brand

as the one that blew up? Or stay clear of that? Consumer often goes on some form of information

search to help them through their purchase decision. Sources of information could be family,

friends, neighbours who may have the product you have in mind, alternatively you may ask the

sales people, or dealers, or read specialist magazines like What DVD? to help with their purchase

decision. You may even actually examine the product before you decide to purchase it.

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3. Evaluation of different purchase options.

So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate

attribute factors to certain products, almost like a point scoring system which they work out in

their mind over which brand to purchase. This means that consumers know what features from

the rivals will benefit them and they attach different degrees of importance to each attribute. For

example sound maybe better on the Sony product and picture on the Toshiba , but picture clarity

is more important to you then sound. Consumers usually have some sort of brand preference with

companies as they may have had a good history with a particular brand or their friends may have

had a reliable history with one, but if the decision falls between the Sony DVD or Toshiba then

which one shall it be? It could be that the a review the consumer reads on the particular Toshiba

product may have tipped the balance and that they will purchase that brand.

4. Purchase decision

Through the evaluation process discussed above consumers will reach their final purchase

decision and they reach the final process of going through the purchase action e.g. The process of

going to the shop to buy the product, which for some consumers can be as just as rewarding as

actually purchasing the product. Purchase of the product can either be through the store, the web,

or over the phone.

5. Post Purchase Behaviour

Ever have doubts about the product after you purchased it? This simply is post purchase

behaviour and research shows that it is a common trait amongst purchasers of products.

Manufacturers of products clearly want recent consumers to feel proud of their purchase; it is

therefore just as important for manufacturers to advertise for the sake of their recent purchaser so

consumers feel comfortable that they own a product from a strong and reputable organisation.

This limits post purchase behaviour. i.e. you feel reassured that you own the latest advertised

product.

Types of Consumer Buying Behaviour

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Types of consumer buying behavior are determined by:

• Level of Involvement in purchase decision. Importance and intensity of interest in a product in a

particular situation.

• Buyers level of involvement determines why he/she is motivated to seek information about a

certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to others,

and the higher the risk the higher the involvement. Types of risk:

• Personal risk

• Social risk

• Economic risk

The four type of consumer buying behavior are:

• Routine Response/Programmed Behavior--buying low involvement frequently purchased low

cost items; need very little search and decision effort; purchased almost automatically. Examples

include soft drinks, snack foods, milk etc.

• Limited Decision Making--buying product occasionally. When you need to obtain information

about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of

time for information gathering. Examples include Clothes--know product class but not the brand.

• Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological risk.

Examples include cars, homes, computers, education. Spend alot of time seeking information and

deciding.Information from the companies MM; friends and relatives, store personnel etc. Go

through all six stages of the buying process.

• Impulse buying, no conscious planning. The purchase of the same product does not always elicit

the same Buying Behavior. For eg Going out for dinner for one person may be extensive decision

making (for someone that does not go out often at all), but limited decision making for someone

else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple

of friends will also determine the extent of the decision making.

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Factors Effecting Consumer Buying Behaviour

Why do we need to learn about consumer buying behavior? The simple answer is that no long

can we take the customers for granted. Consumer buying behavior determines how our

consumers decide to buy our product and what are the various factors responsible for this

decision?

Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years.

Only 8% of new product concepts offered by 112 leading companies reached the market. Out of

that 83% failed to meet marketing objectives. What we need to understand here is why

consumers make the purchases that they make, what factors influence consumer purchases and

changing factors in our society…

The central focus of marketing is the consumer. To devise good marketing plans, it is necessary

to examine consumer behavioral attributes and needs, lifestyles, and purchase processes and then

make proper marketing-mix decisions. The study of Consumer behavior includes the study of

what they buy, why they buy, how they buy, when they buy, from where they buy, and how often

they buy. An open-minded consumer-oriented approach is imperative in today’s diverse global

marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay

ahead of competitors. Final consumers purchase for personal, family, or household use.

Major Factors affecting consumer buying behavior

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Consumer purchases are influenced strongly by or there are four factors.

01. Cultural Factor

02. Social Factor

03. Personal Factor

04. Psychological Factor.

01. Cultural Factor:-

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class

Culture:-

The set of basic values perceptions, wants, and behaviours learned by a member of society from

family and other important institutions. Culture is the most basic cause of a person’s wants and

behaviour. Every group or society has a culture, and cultural influences on buying behaviour

may vary greatly from country to country.

Sub Culture:-

A group of people with shared value systems based on common life experiences and

situations.Each culture contains smaller sub cultures a group of people with shared value system

based on common life experiences and situations. Sub culture includes nationalities,

religions,racial group and geographic regions. Many sub culture make up important market

segments and marketers often design products.

Social Class:-

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Almost every society has some form of social structure, social classes are society’s relatively

permanent and ordered divisions whose members share similar values, interests and behaviour.

02. Social Factors:-

A consumer’s behaviour also is influenced by social factors, such as the (i) Groups (ii) Family

(iii)Roles and status

Groups:-

Two or more people who interact to accomplish individual or mutual goals. A person’s

behaviour is influenced by many small groups. Groups that have a direct influence and to which

a person belongs are called membership groups. Some are primary groups includes family,

friends, neighbours and coworkers. Some are secondary groups, which are more formal and have

less regular interaction. These include organizations like religious groups, professional

association and trade unions.

Family:-

Family members can strongly influence buyer behaviour. The family is the most important

consumer buying organization society and it has been researched extensively. Marketers are

interested in the roles, and influence of the husband, wife and children on the purchase of

different products and services.

Roles and Status:-

A person belongs to many groups, family, clubs, organizations.The person’s position in each

group can be defined in terms of both role and status.For example. M & “X” plays the role of

father, in his family he plays the role of husband, in his company, he plays the role of manager,

etc. A Role consists of the activities people are expected to perform according to the persons

around them.

03. Personal Factors:-

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It includes

i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality

and self concept.

Age and Life cycle Stage:-

People change the goods and services they buy over their lifetimes. Tastes in food, clothes,

furniture, and recreation are often age related. Buying is also shaped by the stage of the family

life cycle.

Occupation:-

A person’s occupation affects the goods and services bought. Blue collar workers tend to buy

more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can

even specialize in making products needed by a given occupational group. Thus, computer

software companies will design different products for brand managers, accountants, engineers,

lawyers, and doctors.

Economic situation:-

A person’s economic situation will affect product choice

Life Style:-

Life Style is a person’s Pattern of living, understanding these forces involves measuring

consumer’s major AIO dimensions.

I.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family recreation)

and opinions (about themselves, Business, Products)

Personality and Self concept:-

Each person’s distinct personality influences his or her buying behaviour. Personality refers to

the unique psychological characteristics that lead to relatively consistent and lasting responses to

one’s own environment.

04. Psychological Factors :-

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It includes these Factors.

i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Motivation :-

Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the

need

Perception :-

The process by which people select, Organize, and interpret information to form a meaningful

picture of the world.

Learning:-

Changes in an individuals behaviour arising from experience.

Beliefs and attitudes :-

Belief is a descriptive thought that a person holds about something

Attitude, a Person’s consistently favourable or unfavorable evaluations, feelings, and tendencies

towards an object or idea.

Marketing

Marketing is the process of performing market research, selling products and/or services to

customers and promoting them via advertising to further enhance sales. It generates the strategy

that underlies sales techniques, business communication, and business developments. It is an

integrated process through which companies build strong customer relationships and creates

value for their customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and to keep the customer.

With the customer as the focus of its activities, it can be concluded that marketing management

is one of the major components of business management. Marketing evolved to meet the stasis in

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developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.

The adoption of marketing strategies requires businesses to shift their focus from production to

the perceived needs and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the

needs and wants of target markets and delivering the desired satisfactions. It proposes that in

order to satisfy its organizational objectives, an organization should anticipate the needs and

wants of consumers and satisfy these more effectively than competitors.

INTRODUCTION TO THE INDUSTRY

The Textile Sector in India ranks next to Agriculture. Textile is one of India’s oldest industries

and has a formidable presence in the national economy in as much as it contributes to about 14

per cent of manufacturing value-addition, accounts for around one-third of our gross export

earnings and provides gainful employment to millions of people. The textile industry occupies a

unique place in our country. One of the earliest to come into existence in India, it accounts for

14% of the total Industrial production, contributes to nearly 30% of the total exports and is the

second largest employement generating after agriculture.

Textile Industry is providing one of the most basic needs of people and the holds importance;

maintaining sustained growth for improving quality of life. It has a unique position as a self-

reliant industry, from the production of raw materials to the delivery of finished products, with

substantial value-addition at each stage of processing; it is a major contribution to the country's

economy. This paper deals with structure, growth and size of the Indian textile industry, role of

textile industry in economy, key advantages of the industry, textile industry export and global

scenario and strength, weakness,opportunities.

The Indian textile industry is one of the largest in the world with a massive raw material and

textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and

trade in addition to other major industries. About 27% of the foreign exchange earnings are on

account of export of textiles and clothing alone. The textiles and clothing sector contributes

about 14% to the industrial production and 3% to the gross domestic product of the country.

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Around 8% of the total excise revenue collection is contributed by the textile industry. So much

so, the textile industry accounts for as large as 21% of the total employment generated in the

economy. Around 35 million people are directly employed in the textile manufacturing activities.

Indirect employment including the manpower engaged in agricultural based raw-material

production like cotton and related trade and handling could be stated to be around another 60

million.

A textile is the largest single industry in India (and amongst the biggest in the world), accounting

for about 20% of the total industrial production. It provides direct employment to around 20

million people. Textile and clothing exports account for one-third of the total value of exports

from the country. There are 1,227 textile mills with a spinning capacity of about 29 million

spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and

handloom sectors as well. The Indian textile industry continues to be predominantly based on

cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton

cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1

million metric tons) ranks next in importance to cotton weaving. Textile is one of India’s oldest

industries and has a formidable presence in the national economy inasmuch as it contributes to

about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross

export earnings and provides gainful employment to millions of people. They include cotton and

jute growers, artisans and weavers who are engaged in the organized as well as decentralized and

household sectors spread across the entire country.

The textile industry is a group of related industries which uses a variety of natural (cotton, wool,

etc.) and/or synthetic fibers to produce fabric. It is a significant contributor to many national

economies, encompassing both small and large-scale operations worldwide..

Subdivision of the textile industry into its various components can be approached from several

angles. According to reference, the classical method of categorizing the industry involves

grouping the manufacturing plants according to the fiber being processed, that is, cotton, wool,

or synthetics. The modern approach to textile industry categorization, however, involves

grouping the manufacturing plants according to their particular operation.

• Wool Scouring;

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• Wool Finishing;

• Dry Processing;

• Woven Fabric Finishing;

• Knit Fabric Finishing;

• Carpet Manufacture;

• Stock and Yarn Dyeing and Finishing.

Traditionally, the textile industry is very energy, water, and chemical-intensive. About 60% of

the energy is used by dyeing and finishing operations. Environmental problems associated with

the textile industry are typically those associated with water pollution. Natural impurities

extracted from the fibre being processed along with the chemicals used for processing are the

two main sources of pollution. Effluents are generally hot, alkaline, strong smelling and colored

by chemicals used in dyeing processes. Some of the chemicals discharged are toxic. Other

environmental issues now considered equally important and relevant to the textile industry

include air emissions, notably Volatile Organic Compounds (VOC).

BRANDING

There are many different definitions of a brand, the most effective description however, is that a

brand is a name or symbol that is commonly known to identify a company or it’s products and

separate them from the competition.

A well-known brand is generally regarded as one that people will recognise, often even if they do

not know about the company or its products/services. These are usually the businesses name or

the name of a product, although it can also include the name of a feature or style of a product.

The overall ‘branding’ of a company or product can also stretch to a logo, symbol, or even

design features (e.g. regularly used colours or layouts, such as red and white for Coca Cola.) that

identify the company or its products/services.

For example:

The Nike brand name is known throughout the world, people can identify the name and logo

even if they have never bought any of their products.

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However, not only is the company name a brand, but the logo (The ‘tick’ symbol) is also a strong

piece of branding in its own right. The majority of people that are aware of the company can also

identify it (or its products) from this symbol alone.

The clothing and running shoe company Adidas is well known for using three stripes on its range

of products. This design feature branding allows people to identify their products, even if the

Adidas brand name and logo is not present.

BRANDED GOODS:

A brand is the identity of a specific product, service, or business. A brand can take many forms,

including a name, sign, symbol, color combination or slogan. The word brand began simply as a

way to tell one person's cattle from another by means of a hot iron stamp. A legally protected

brand name is called a trademark. The word brand has continued to evolve to encompass

identity - it affects the personality of a product, company or service.

A concept brand is a brand that is associated with an abstract concept,rather than a specific

product, service, or business.

UNBRANDED GOODS :

An unbranded good is a good which is not recognized by a name. goods are treated as a

commodity goods or cases where consumer are reluctant to make brand distinctions,for example

toothpicks, cloth pins. In this stage consumer memory network consist primarily of a node

identifying the product category. Such goods are often seen in developing countrie. Informaton

about the product is limited to the users. So consumers are unaware about the brand.

CURRENT SCENARIO OF INDUSTRY:

Under the WTO framework, exports of textile and apparel products will be quota-free and will

only be based on market considerations namely product attributes, pricing, promotion such as

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advertising, brand building and other sales promotion techniques, physical distribution - its cost

and logistics decisions. Since the 90s, the WTO members have embarked on liberalisation and

economic reforms programmes with a view to bring about rapid and substantial economic growth

and move towards globalisation of the economy.

In accordance with WTO policies, there have been substantial changes in policies such as

reduction in import tariffs, binding of import tariffs, phasing out of quantitative restrictions and

pruning of the negative list of imports. The new policies have substantially released restrictions

on foreign investment, industrial licensing, foreign exchange controls, etc. The capital market

has been opened to foreign investment, banking sector controls have been eased and private

investment encouraged. The exporting community of textiles and clothing are continuously

putting their effort in assessing the world trade situation beyond the quota regime, when the

Multi-Fibre Arrangement (MFA) will be fully integrated into the general WTO rules and

regulations. With the present strength and potential of the Indian textile industry, the question

that often arises is whether India has a satisfactory world share in the textile and clothing trade.

India accounts for about 21 per cent of the world’s spindleage (second largest after China), 58

per cent of the world’s loomage and 15 per cent of the world’s cotton production. India stands

11th amongst the exporting nations of apparel and clothing.

However if we look at countries like Sri Lanka and Bangladesh, their export performance of

textile and clothing, especially the apparel and garment exports, is more than satisfactory and

impressive if compared to their industry strength. Such performance in garment exports by Sri

Lanka and Bangladesh is basically due to the quota-free access given to them by the EU, the US

and Canada, whereas India’s export potential is restricted by the imposition of quota from these

developed nations.

At present, international trade in textiles and clothing is governed by the quota regime, wherein

countries like the EU, US, Canada, etc, have given quotas to different countries for different

textiles and clothing products. These quotas are generally based on the historical exports to these

countries and bilateral relationships. Hence despite India having a strong manufacturing base and

high export potential, it does not have enough quota to these countries. On the export side, the

most important development of the quota regime is the planned end of textile quotas, which may

provide a safe niche to the Indian textile industry.

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WTO, with phasing out the quotas, moves towards globalisation, but the developing countries

like India will face new challenges. For instance, doing away with the multi-fibre arrangements

in the textile and apparel sector would only benefit those countries who had export potential, but

quota restrictions stood in their way. Those countries to whom quotas provided a shield against

their low competitive ability would lose out. The message for developing countries is clear. In

the new environment they can only go forward through greater competitivenes. In the post quota

regime, the Asian majors of textiles like South Korea, Taiwan, Indonesia, Thailand, Hong Kong,

etc are expected to reap maximum benefit due to their respective positioning in the textile trade.

Countries like India may enjoy very little benefit due to the overall competitiveness. With its

entry into the WTO, China, too, is all set to give a very tough competition to India’s textile

marketing in the European Union and in USA.

When we talk of competitiveness, we should concentrate more on product quality, service quality

with lower cost elements. Quality and cost competitiveness are both required for making room at

the international trade scenario especially when the quota regime will be over. The qualitative

issues actually have impact on the efficiency in the supply chain and business stability. Thus

these are going to gain more prominence once ATC would be integrated into WTO rules and

regulations.

If we look at the Indian textile industry, leaving the spinning sector, the weaving and the apparel

sectors are lagging behind as far as the updated machinery and technology is concerned. Indian

weaving sector is dominated by traditional grey fabrics produced in handlooms and power

looms. The apparel sector is largely in the small scale sector, as it does not attract big

investments. This has resulted in an “orthodox” way of doing business, which implies that we in

the apparel trade are not as professional as our counterparts and competitors. To be in the

forefront and to be leaders in the textile trade during the quota free regime, the quality and cost

part must be considered more seriously. This is because, more market share would move to those

countries who can provide quality products at very competitive prices when the whole

international market will be “free for all”.

The quality in the textile sector is to be built into the products through quality of designs, quality

of processes, quality of human resources, quality of management, quality of leadership and

above all quality of strategic response to turbulent external environment despite which

businesses are expected to perform the world over. Therefore, to survive in such an environment

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we need to go for modern technology and should emphasise on the quality of finished products.

The government should emphasise and introduce the global quality standards like ISO 9000 and

ISO 14000 in the production of textile products.

In the post quota scenario, it will become important that our industry focus more on the

production of fine quality processed cloth. A major portion of good quality yarn should be

utilised domestically in the organised mills sector for the production of high value-added fabric

of better quality. And then later this fabric should be used in the production of garments. As

garments provide the highest value-added product among the textile items, maximum focus

should be towards the units producing garments. A market-oriented strategy must be introduced

to capture a good share of the international market. Product differentiation must also be done

through the promotion of brand names and advertising. Infrastructure in terms of communication

services, export procedures, appropriately trained manpower, material inputs and transport

facilities, as well as stable enforceable contracts with foreign investors are also needed.

Otherwise, any increase in the share or the maintenance of the current share in the global market

would be difficult.

It is heartening that India currently exports more than 100 garment product categories along with

its customary yarn and fabrics. Many of the world’s leading companies like Banana Republic,

Tommy Hilfiger, Gap, Liz Claiborne, Polo, etc are already sourcing goods from India. With

traditional relationships with the world’s major producers, we hope that our exports would

achieve new heights in the post quota regime.

Coming back to the synthetic textiles industry, it is getting stronger and stronger and India’s

share in the world trade of synthetic textiles has marginally improved to 3.50 per cent over the

previous years. India’s export of synthetic and rayon textiles has been increasing steadily over

the past decade and reached an all-time high of Rs 7630 crore during 2002-03. The export

growth is more than 29 per cent during 2002-03 as compared to 2001-02 and the Synthetic and

Rayon Textiles Export Promotion Council (SRTEPC) is expecting the export growth to continue

even in the post-quota regime. Currently, Indian MMF spun and blended fabrics (grey and

processed) and blended yarn are exported under quota (Cat. 3, Cat. 3a and Cat. 23) to the

European Union. It is worth-mentioning that category 3, 3a and 23 account for only around eight

per cent of the total exports of MMF textiles. So in the quota-free regime, India has to compete

with rest of the world for this eight per cent of it’s total export, which would not be difficult.

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As far as USA is concerned, it is one of the most important markets for Indian textile products.

In the textile category, USA is the major buyer of MMF textile items, as the share of MMF

textile imports in the total textiles accounted for more than 51 per cent during 2002. The share

during January-June 2003 has risen to 52.52 per cent, whereas the share of cotton textiles

declined marginally from 37.77 per cent in January-June 2002 to 37.08 per cent in January-June

2003. The share of wool and silk textiles constitutes 7.86 per cent and 2.88 per cent in 2002 and

in the current year the same trend is maintained.

Quota is one of the major impediments for Indian MMF textiles to make a big impact in the US

market at present. It has been observed that Indian export growth has been impressive for major

MMF textile items, which were removed from the quota regime.

When all the products would be integrated into WTO rules and regulations (49 per cent of the

products to be integrated in Phase-IV on January 2005), then India’s exports to USA would

further increase with a higher market share.

With the phasing out of quotas, the process of tariff and non-tariff negotiations at the WTO is

also getting streamlined by January 2005. Under the tariff negotiations of WTO, all the member

countries should finalise the bound rates of import tariff. Since earlier the domestic markets were

given protection through high tariff rates, the WTO mandate for tariff negotiations now would

not allow the imposition of import tariffs beyond a certain limit. It is therefore expected that the

non-tariff barriers would be more prominent in the post-quota regime. Thus, though, the new

global trading system would reduce the chances of developed countries adopting protection

measures unilaterally, they can still use their economic clout to their advantage by imposing non-

tariff barriers.

Currently Indian exports are affected by a series of non-tariff barriers also from the developed

countries including anti-dumping measures, unilateral rules of origin, disproportionate phasing

out of quotas, banning the use of various dyes, etc. As we have already mentioned that the non-

tariff barriers would be more prominent even in the WTO regime, the Indian textile industry

should be prepared to handle there NTBs properly, so that exports should not be affected much.

With all this anticipation, the government must play a big role. The government should also be

fully prepared to give, whatever facilities are necessary, to exporters so that they can counter the

challenges posed by the WTO regime. In brief, global competitiveness in terms of quality and

cost is the only alternative for survival in the WTO regime i.e. the post MFA era.

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TITLE OF THE STUDY

“Study on consumer buying behaviour towards branded and non branded readymade

garments in Ludhiana”

OBJECTIVES OF THE STUDY

1) To know the factors affecting while buying a branded or non branded garments.

2) To know the satisfaction level of consumer.

NEED OF THE STUDY

There are different national and international products present in India. So to identifyThe

customer and their buying behaviour have been the focus of a number of international And

national product. The result of these studies have bee useful to the provide solution toVarious

marketing problem.

Understanding buying behaviour is not enough without understanding the composition And

Origin of the customers are attracted by imported goods because of their high quality. So that

most of Indian company product losses their credibility and loyalty in Domestic customers.

SCOPE OF THE STUDY

Customer loyalty is an important element in the marketing activities. This customer loyalty

Decides the fate of the product and organisation. There are various factors influence to The

customer loyalty. These factors are Post Purchase behavior, Reputation, Product availability,

Branding and convenient etc.“The scope of the study is restricted to Ludhiana”.

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LIMITATIONS OF THE STUDY

1) The Study is Restricted to Ludhiana.

2) The Response of the Migrant can be Biased and Subjective.

3) Many Respondents were not vocal in sharing their actual views.

4) Due to time Constraints the sample size was kept small and view of majority were not taken.

CHAPTER - 2

REVIEW OF LITERATURE

1) TITLE : STRATAGIES FOR REALISING VISION 2010 OF INDIAN TEXTILE AND

APPAREL INDUSTRY

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AUTHOR: J.N SINGH

Textile commissioner, ministry of textile, GOI

SOURCE: http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf

REVIEW:

Indian textile industry has been growing very well. Increase in the young population and also

increase in use of plastic money the demand is increasing in the domestic market which is met by

the increasing supply supported by the new women working force. Also our stand in the world

market is stronger than ever, with the quantitative restrictions on china we are in a better position

now. Many Indian companies have bought western brands which has made penetration in the EU

and the USA fairly easy further strengthening our exports, but we are facing stiff competition

from Indonesia and Bangladesh so there is lot more to be done. The industry needs more

investments in the sector and also need to modernize to compete with the other countries as our

equipment and machinery are still outdated and even our labor laws are restrictive which pose a

serious threat on the further growth of this industry. So though India has strength it also has

weaknesses which are needed to be taken care of to increase our share in the world textile trade.

2) TITLE: SCOPE OF BIOTECHNOLOGY IN TEXTILES

AUTHOR: G.V.N SHIRISH KUMAR

Department of fibers and textile processing technology, MUICT, Matunga, Mumbai.

SOURCE: http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf

REVIEW:

India has wide range of textile of varies designs and manufactured by different techniques when

compared to different countries of the World. The speciality in the weave of textile in each

region is developed based on location, climate and cultural influences. The rich and beautiful

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products of the indian weavers have been rightly called, “Exquisitepoetry in colorful fabrics”.

But with the advent of globalization and modern technology we always ourselves competing

with the countries that not only have better technology but are always looking for new fabrics to

meet consumer varied wants. India also has been spending a lot on the manufacturing of new

and more appealing fabrics. We are spending more and more on research of such fabrics. A very

new way to go about this research is through biotechnology. It offers the potential for new

industrial processes that require less energy and are based on renewable raw material. It helps in

the production of fabric free floppers, bollworms and bud worms in cotton etc providing almost

50% greater strength and better quality. These fibres materials are also called biopolymers.

Biotechnology is one of the revolutionary ways to advance the textile field.

3) TITLE: GROWING IMPORTANCE OF COTTON BLENDS IN APPAREL MARKET.

AUTHOR: DR.SHILPA P .CHARANKAR, Mrs. VEENA VERMA, Ms. MITTU GUPTA

Department of textile and clothing

Dr. Bhanuben Mahendra Nanavati College Of Home Science, Matunga, Mumbai 400019.

SOURCE: Journal of textile association

DATE: Vol 67 , Jan-feb-2007

REVIEW: As the need for innovation is increasing by every passing day due to the global

competition and also today’s consumer is seeking not just clothing but clothing with difference

which not only has good appearance but is also durable and is climate specific. These things can

be achieved by improving the spinning , weaving, and finishing efficiency. Rather than just

producing cotton which is less durable than a fabric.Which is blend of nylon/wool/cotton should

be produced. Blending is a complicated and expensive process, but it makes it possible to built in

combination of properties that is permanent. It makes the fabric better and gives it a competitive

edge. It’s inevitablein a global economy where everyone needs to be prepared for the

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competition ahead and where the competition is not just from the domestic but also from the

international players.

4) Title: WOMEN ENTRPRENEUER DEVELPOMENT IN GARMENT MAKING.

AUTHOR: Dr. N . VASUGI

Reader family science & community development department

Avinashilingam Deemed University.

SOURCE: Journal of textile association

DATE: Vol 67 , Mar-Apr 2007

REVIEW:

Textile industry is the largest foreign exchange earner and also the second largest Employment

provider next to agriculture. Worldwide garment is the 3rd largest employer of the women even in

indian garment industry 80% of the people in it are women. Further also it has lot of job

opportunities for everyone women included with the increased investmentto push the growth

forward and also with more and more does not mean we are free of weaknesswe are able to meet

up the internal challenges of production we will be unstoppable.

CHAPTER - 3

RESEARCH MEHODOLOGY

Research Methodology is Logical and Scientific technique to solve a problem. When we talk of research methodology, we not only talk of research methods adopted to get desired results but we also consider logic behind these methods. All possible efforts were made to gather information in a natural way to achieve objectives of research.

Research is an original contribution to existing stocks of knowledge making for its advancement in research for knowledge through objectives and systematic method of finding a solution to problem,

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is research. Research refers to systematic methods consisting of enunciating the problem, forming a hypothesis, collecting facts or data, analysis of facts and reaching certain conclusion either in the form of a solution towards concerned problem in certain generalization for some theoretical formulation.

In my Research the Research Problem is “To study the consumer buying behaviour towards branded and non branded readymade garments in Ludhiana”.

RESEARCH DESIGN

Research design is a framework or blueprint for conducting the marketing research project. It

specifies the details of the procedures necessary for obtaining the information needed to structure

and solve marketing research problems.

When designing research, one is faced with a continual series of trade-offs. Since there are

typically numerous design alternatives that will work, the goal is to find the design that enhances

the value of the information obtained, while reducing the cost of obtaining it and make it as

accurate as possible.

The conceptual structure, within which this research is conducted, is

descriptive in nature as it brings forward the results concerning the

set objectives fact finding enquires. Moreover it describes the state

of affairs as exists at present In my research the Research Design is

“DISCRIPTIVE RESERCH”design.

Research Objective

1) To know the factors affecting while buying a branded or non branded garments.

2) To know the satisfaction level of consumer.

SOURCES OF DATA

Primary data:

Primary data are those, which are collected afresh and for the first

time, and thus happen to be original in character. It is the backbone

of any study. It is obtained from respondents with the help of widely

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Secondary Research and Literature Review

Selection of Objective/Problem

identification

Data Collection & Tabulation

Analysis of Data

Report Preparation

Final Draft

used and well-known method of survey, through a well-structured questionnaire. So the primary

data has been taken from different customers. “In my research the source of primary data is

well designed Questionnaire”.

Secondary data:

Secondary data are those which have already been collected by someone else and which have

already been passed through the statistical process. In this case one is not confronted with the

problems that are usually associated with the collection of Original data. Secondary data either is

published data or unpublished data.

Secondary data is collected from publications, journals, and magazines, Records, web sites etc. “In

my research the source of secondary data is journals, internet, books” etc.

SAMPLING PLAN

It consists of:-

Universe of the study: The Universe is the specific group of people, Firms, Conditions, activities

etc. which form the pivotal point of research project. In my research study the universe

Is “All the buyers of branded and non branded readymade garments”.

Population:

Population refers to part of universe from which the sample for conducting the research is selected.

Universe and population can be same in some researches. It may be finite or infinite. In finite

universe the number of items is certain, but in case of infinite the number of item is infinite i.e., we

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cannot have an idea about the total number of items. The population for my study is finite i.e., “all

the buyers of branded and non branded readymade garments in Ludhiana”.

Sampling unit: Sampling unit refers to smallest possible individual eligible respondent. In my

study the sampling unit is “single buyer of readymade garments in Ludhiana”.

SAMPLE SIZE

This refers to the total number of respondents selected from the population to constitute a sample.

The size of the sample should neither be excessively large, nor too small. It should be optimum.

An optimum sample is one which fulfills the requirement of efficiency, representativeness,

reliability and flexibility. “The sample size for my research is 50”.

SAMPLING TECHNIQUE

In this research study, “non-probability convenience sampling” is opted for. Convenience

sampling is done purely on the basis of convenience or accessibility. This sampling method has

been mainly chosen because of time, financial constraints and lack of expertise.

MEASUREMENT

Measurement is accessed via a 5-point-Likert-type scale ranging from “strongly agree” to“strongly

disagree”. Analysis is done with the Calculation of Mean Score which is calculated with the help

of following Formula.

Mean Score = Total Score

---------------------------

Total Number of Respondents (n=50)

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Chapter no-4

ANALYSIS AND INTERPRETATION

1) Number of people who are like to do shopping.

Table - 4.1

Particulars No. of respondents Percentage (%)

Yes 50 100%

No 0 0

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Graph - 4.1

Interpretation: - As the Graph 4.1 shows, out of sample size of 50 all the consumers are like to

do Shopping. As the graph shows 100% people are like to do shopping.

2) Number of people likes to do shopping through various places.

Particulars No. of respondents Percentage (%)

E Shop 5 10 Trade Shop 20 40 Mall 15 30 Super Market 10 20

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Interpretation:- In the above Graph maximum consumers likes to do shopping from trade shops

and which is 40%. There are least consumers likes to do shopping from E Shop.

3) Frequency of visits.

Category No. of respondents Percentage (%)

Weekly 10 20% Monthly 20 40% 15-20 days 20 40% Rarely ----- ------

Table- 4.3

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Graph- 4.3

Interpretation: - As the Graph 4.3 shows 20% people are likely to do shopping weekly. 40%

Peoples are likely to do shopping on monthly basis. 40% of people like to do shopping on 15-

20Days basis. And out of sample of 50 no one is there who likes to do shopping rarely. It means

most of the people like to do the shopping at monthly and 15-20 days basis.

4) Number of people who are brand conscious.

Particulars No. of respondents Percentage (%)

Yes 20 40%

No 30 60%

Table - 4.4

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0%

10%

20%

30%

40%

50%

60%

70%

yes No

Graph-4.4

Interpretation: - From the above graph it is proved that out of the sample size of 50, 40%

people are brand conscious and 60% people are not brand coscious. It means most of the peoples

are not depend on branded product.

5) Number of people buy different brand of cloths.

Category No. of respondents Percentage (%)

Levi’s 10 50% Pepe 5 25%

Lee 3 15%

Puma 2 10%

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Any other --------- Table-4.5

Table-4.5

Interpretation: - Out of sample size of 20.The above Graph shows that the 50% peoples prefer

Levi’s brand. 25% people prefer Pepe brand, 15% people prefer Lee brand and 10% people

prefer brand of Puma. It means maximum people prefer brand of Levi’s

6) Number of people preffer a particular brand or company.

Category No. of respondents Percentage (%)

Brand name 15 75% Product feature -------- ------- Promotion activities -------- ------- Distribution system 5 25%

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Table-4.6

Graph-4.6

Interpretation:- Out of the sample size of 20.The above graph shows 75% people buy the branded

garments because of brand name and 25% of respondents preffer branded garments because of the

distribution system. As a result we can say that people preffer branded cloths because of brand

name.

7) Number of people thinks brand is a status symbol.

Category No of respondents Percentage (%)

Highly disagree ------ -------

Disagree ------ ------

Neutral ------ ------

Agree 12 60%

Highly agree 8 40%

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Table-4.7

Graph-4.7

LEVEL OF AGREEMENT

[(60*4) + (40*5) = 440/50 = 8.8]

Interpretation: - Out of the sample size of 20.As a result, 60% respondents respond that brand is a

status symbol. And 40% respondent responds to highly agree. So we can conclude that maximum

peoples are agreeing that brand is a status symbol.

8) Number of parameters which effects consumer buying decision.

Category Numbers Mean rank

Quality 64 3.2

Price 41 2.05

Easy Availability 48 2.4

Discount 47 2.35

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Table-4.8

Graph-4.8

Interpretation :- From the rank given to some factors by respondents we come to know that

most important factor took into consideration while buying a branded cloth is price. After that

Easy availability and discount. And least common factor which effect the purchase decision is

Quality.

9) Preference of people regarding type of cloth.

Category No of respondents Percentage (%)

Branded ------ -----

Non branded 12 60%

Both 8 40%

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Table-4.9

Graph-4.9

Interpretation :- Out of the sample size of 20. 60% people preffer non branded Readymade

garments. And 40% people preffer both branded and non branded garments.As a result we can

say that non branded garments are preffer more than branded garments.

10) Rating of the factors which consumer consider while buying the cloth.

PRICE

Particular Numbers Percentage

Most important +2 20 60.66%

Important +1 5 16.66% Neutral 0 3 10%

` Less important -1 2 6.66%

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Least important -2 -------- --------- Table- 4.10.1

Graph -4.10.1

Interpretation: - Out of the sample size of 30. the above graph shows that 61 % of people

Consider that Price is a most important factor while buying cloths and 17% people

consideredPrice is a important factor. 10% is for neutral and 7% is for least important. It means

from the results we can conclude that maximum people thinks that price is a most important

factor which they takes into consideration while buying.

DESIGN

Particular Numbers Percentage

Most important +2 10 33.33% Important + 1 15 50% Neutral 0 5 16.66%` Less important -1 0 Least important -2 0

Table-4.10.2

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Graph-4.10.2

Interpretation :- out of the sample size of 30. 50% of people consider, Design is important

factor which takes into consideration while buying cloths. 34% people respond that design is

most important factor. So as a result we can say that, design is a important factor for buying

cloths.

DISCOUNT

Particular Numbers Percentage

Most important +2 7 23.33% Important +1 10 33.33% Neutral 0 5 16.66%` Less important -1 5 16.66% Least important -2 3 10%

Table-4.10.3

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Graph-4.10.3

Interpretation :- 24% people consider that discount ia most important factor,34% people

consider discount is an important factor and 17% is for neutral and less important respectively.

10% people respond that discount is a least important factor. as a result, maximum people said

that discount is a important factor.

SALES PROMOTION

Particular Numbers Percentage

Most important +2 3 10% Important +1 5 16.66 Neutral 0 5 16.66` Less important -1 10 33.33 Least important -2 7 23.33

Table-4.10.4

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Graph-4.10.4

Interpretation:- in this above graph. It is shown that 34% respondent said that sales promotion

is a less important factor. 10% people said that sales promotion is a most important factor. As a

result we can say that. Sales promotion is a less important factor.

11) SATISFACTION OF CUSTOMER REGARDING BRAND AVAILABLE IN THE MARKET.

Particulars No of responses Percentage

Yes 50 100% No 0 0

Table-4.11

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Graph-4.11

Interpretation:- Out of 50 Sample size. 100% respondent responds that they are satisfied with

the brand and company available in the market.

CHAPTER-5SUMMARY AND CONCLUSION

RESULTS AND FINDINGS:

1. Out of the sample size of 50. All the consumers are like to do Shopping. 100% people are like to do shopping.

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2. Most of the consumers like to do shopping from trade shops. And there are least consumers Who like to do shopping from E Shops.

3. Out of sample of 50 no one is there who likes to do shopping rarely. It means most of the people like to do the shopping at monthly and 15-20 days basis.

4. Out of the sample size of 50, 40% people are brand conscious and 60% people are not brand conscious. It means most of the peoples are not depend on branded product

5. Out of sample size of 20. There are maximum consumers who purchases the brand of Levi’s and there are least consumers of Pepe brand. Rest all are stands in between them.

6. Maximum people preffer a particular brand or company because of brand name. least consumers preffer the brand because of distribution system.

7. There are maximum respondents who agrees that brand is a status symbol and there are some people who highly agrees that brand is a status symbol. No one is disagree upon the statement.

8. Most important factor took into consideration while buying a branded cloth is price.

After that Easy availability and discount. And least common factor which effect the

purchase decision is Quality.

9. Non branded garments are preffer more than branded garments.

10. Maximum people think that price is a most important factor which they take into consideration while buying.

11. Design is a important factor for buying cloths.

12. Maximum people said that discount is a important factor.

13. Sales promotion is a less important factor.

14. 100% respondent responds that they are satisfied with the brand and compan available in the market.

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SUGGESTIONS

Customers like best quality product at any price, so companies should add latest technologies to their products.

After sale services is the area where branded and non branded company can highly satisfy the existing customers, because they can make more customers through their word of mouth. So Indian and international company should provide latest and realible sevices to their customers.

Customers behaviour is always looks for some extra benefit with purchasing. They demand for affordable price for products and gifts with purchasing.

International companies should make strategy to cater every income group customers In city.upper income group are affordable to purchase, but lower group is not. So International companies makes policies for to send their product and every home.

The companies give more emphasis on advertising to create market awareness and make Brand image in the minds of customer.

CONCLUSION

As the research has shown the comparison between customer buying behaviour regarding

Branded and Non branded readymade garments in recent time. Since the consumer buying

behaviour is the important factor to forecast the sale of any product on a particular area. So

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company should keep close eye on the market situation. Yet, customers were price sensitive.But

the changing market trend and customer view and preference showed that customers are quality

sensitive. They want qualitative product, easy availability of the product, and better performance

by the product. These days no of customers buying things from malls are increased. Also the

frequency to visit the malls has been increased. That’s why people are brand conscious. They

feel satisfied with the range of product available here.

From my research point of view we can conclude that there is maximum preference towards

Non branded cloths. Because branded cloths are costly than the non branded cloths.

BIBLIOGRAPHY

reports/indian-textile-industry/indian-textile-industry1.asplex/chapt6.html

http://www.udel.edu/ahttp://www.fibre2fashion.com/industry-article/market-research-industry-

http://en.wikipedia.org/wiki/Marketing

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http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Sample_(statistics)

http://www.scn.org/cmp/modules/rsh-samp.htm

http://en.wikipedia.org/wiki/Data_source

http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf

http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf

Journal: Journal of textile association

Book: C.R Kothari (Research Methodology)

QUESTIONNAIRE

Dear Respondent,

I am conducting a research on the topic“Consumer buying behaviour regardingBranded and Non Branded readymade garments in Ludhiana”. Please spare afew minutes out of your busy schedule to fill this questionnaire. I will be highlythankful to you for your valuable response.

Q1) Do you like shopping?

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(a) Yes (b) No

Q2) Where do you like to go for shopping?

(a) E Shop (b) Trade shop

(c) Mall (d) Super Market Q3) How frequently you go their for shopping?

(a) Weekly (b) Monthly

(c) 15-20 Days (d) Rarely

Q4) Are you brand conscious while doing shopping?

(a) Yes (b) No If yes, then move to Q5. If no, then please skip to Q9.

Q5) Which brands do you prefer most? (a) Levi’s (b) Pepe (c) Lee (d) Puma (e) Any other, specify________

Q6) Why you prefer a particular brand/company? (a) Brand name (b) Product feature

(c) Promotion Activities (d) Distribution System

Q7) Do you think branded cloths are status symbol? ------------|-----------------|----------------|-------------|---------------|-----------

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Highly Disagree Neutral Agree Highly Disagree Agree

Q8) Give rank to the parameters which effects your buying decision? (1 for most important and 4 for least important)

FACTORS RANK Quality PriceEasy Availability Discount

Q9) What type of cloths you prefer while shopping?

(a) Branded (b) Non Branded (c) Both

If Non branded or both are purchased by you, than move to Q10.

Q10) If you prefer Non Branded garments, what attracts towards them?

_________________________________________________ _________________________________________________

Q11) Please rate the following factors which you consider while buying the cloths on following scales? (-2= least important, -1= less important, 0= neutral, +1=important, +2=most important)

Price --------|--------|--------|--------|--------|-------- -2 -1 0 +1 +2

Design --------|--------|--------|--------|--------|--------

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-2 -1 0 +1 +2

Discount --------|--------|--------|--------|--------|-------- -2 -1 0 +1 +2

Sale promotion offers --------|--------|--------|--------|--------|-------- -2 -1 0 +1 +2

Q12) Are you satisfied with the brand/company available in market?

(a) Yes (b) No Personal Information:-

Name______________ Age________________ Gender_____________ Occupation__________ Marital Status________

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