A PURCHASE DECISION AND BUYING BEHAVIOUR OF COLLEGE …apps.aima.in/ejournal_new/articlesPDF/4 Dr M Krishnakumar.pdf · the apparel industry which occupies the top place in the organised

AIMA Journal of Management & Research, October 2015, Volume 9 Issue 3/4, ISSN 0974 – 497 Copy

right© 2015 AJMR-AIMA Page 1

Article No.4

APPAREL PURCHASE DECISION AND BUYING

BEHAVIOUR OF COLLEGE STUDENTS

Dr. M. Krishnakumar Associate Professor, Department of Fashion Management Studies, National

Institute of Fashion Technology, Kannur

Abstract: India being the second largest populated country in the world has huge youth population. It

is estimated that India would have the highest number of youth population in the coming years comparing

to any other country in the world. The organised retail industry in India is growing at a rapid pace and

subsequently the apparel industry which occupies the top place in the organised retailing also growing

rapidly. Many retail organisations both foreign and domestic are entering in this filed. The purchase power

of these youth plays an important role in the Indian economy. The purchase behaviour towards apparel

among Indian youths is getting changed considerably. The paper studies purchase behaviour towards

apparel of college students, which includes apparel purchase decision, apparel purchase and opinion

towards the marketing mix factors (i.e. Product, Price, Place and Promotion).

Key words: apparel, consumer behaviour, youth, college students, purchase decision, purchase, marketing

mix

Introduction

India being the second largest populated country in the world has huge youth population.

It is estimated that India would have the highest number of youth population in the

coming years comparing to any other country in the world. Indian Textile and apparel

Industry is one of the leading industries in India. The opening up of economy gave the

much-needed thrust to the Indian textile and apparel industry, which has now

successfully become one of the largest in the world. India's textile and apparel industry

(domestic and exports) is expected to grow from Rs 3.27 lakh crores to Rs 10.32 lakh

crore by 2020, says a new research report by Technopak Advisors, a leading management

consultancy. Though it was predominantly unorganized industry even a few years back,

but the scenario started changing after the economic liberalization of Indian economy in

1991. The organised retail industry in India is growing at a rapid pace and subsequently

the apparel industry which occupies the top place in the organised retailing also growing

rapidly. Many retail organisations both foreign and domestic are entering in this filed.

The purchase power of these youth plays an important role in the Indian economy.

Consumer behaviour in the purchase of apparel products may have great influence on the

outcomes obtained by the consumer The purchase behaviour towards apparel among

Indian youths is getting changed considerably. The paper studies purchase behaviour

towards apparel of college students, which includes apparel purchase decision, apparel

purchase and opinion towards the marketing mix factors (i.e. Product, Price, Place and

Promotion).



Objectives

The objectives of this study are

1. To study apparel purchase decision process of college students.

2. To study apparel buying behaviour of college students.

3. To study the importance of marketing mix factors of apparel among college

students.

Literature Review

Indian Apparel Industry

India‟s retail industry accounts for 10 percentage of its GDP and 8 percentage of the

employment to reach $17 billion by 2010. The Indian retail market is estimated at US$

350 billion. But organised retail is estimated at only US$ 8 billion. However, the

opportunity is huge-by 2010, organised retail is expected to grow at 6 percentage by 2010

and touch a retail business of $ 17 billion as against its current growth level of 3 per cent

which at present is estimated to be $ 6 billion, according to the Study undertaken by The

Associated Chambers of Commerce and Industry of India (ASSOCHAM). India is

currently the ninth largest retail market in the world. Organised retail in India has the

potential to add over Rs.2,000 billion (US$45 billion) business by the Year 2010

generating employment for some 2.5 million people in various retail operations and over

10 million additional workforces in retail support activities including contract production

& processing, supply chain & logistics, retail real estate development & management etc.

It is estimated that it will cross the $650-billion mark by 2011, with an already estimated

investment of around $421 billion slated for the next four years (Mulky and Nargundkar,

2003).

The ready-mades and western outfits are growing at 40-45 per cent annually, as the

market teems up with international brands and new entrants entering this segment

creating an Rs.5 billion market for the premium grooming segment. The past few years

has seen the sector aligning itself with global trends with retailing companies like

Shoppers‟ stop and Crossroads entering the fray to entice the middle class. However, it is

estimated that this segment would grow to Rs. 3 billion in the next three years. The

Indian retail sector is poised for big times is a well-known fact, now a new study has

confirmed this one more time. According to a survey conducted by business consultancy

Technopak Advisors, the country‟s retail market is expected to touch 620 billion euros

(around Rs 37 lakh crores) by 2020 at a compounded annual growth rate (CAGR) of

more than 25 per cent. Strong underlying economic growth, population expansion, the

increasing wealth of individuals and the rapid construction of organized

retail infrastructure are key factors behind the forecast. (The Indian Textile Journal, 2007;

Business World, 2007)

The past few years, numerous top international retailers have marked their presence in the

Indian market. For example, Trent, the retail arm of Tata Group, sells high-end clothing

brands like Zara and Sisley. They also run a 50:50 JV with UK‟s biggest retailer Tesco,

which operates cash-and-carry stores in Mumbai, Delhi and Bangalore, and supplies



merchandise to Trent‟s hypermarket chain Star Bazaar. Wal-Mart operates a cash-and-

carry JV with Bharti Enterprises, while Italian luxury fashion brand Dolce & Gabbana

operates a 51:49 single brand retailing venture with real estate major DLF. Similarly,

Marks and Spencer the UK retail chain ventured into India with a partnership with

Reliance Retail. And looking at the growth forecasted by the latest Technopak study,

many more such partnerships are expected to push the segment further.

(Images Business of Fashion, 2008)

Consumer Behaviour

Consumer behaviour which was earlier termed as „overt behaviour‟ is a continuous

consumption process related to pre-purchase, purchase and post purchase issues. This

refers to the physical action of consumers that can be directly observed and measured by

others. According to Michael Solomon & Nancy, (2004), consumer behaviour is the

study of the processes involved when individuals or groups, select, purchase, use or

dispose of products, services, ideas or experiences to satisfy needs and desires. According

to Frank R.Kardes (2002), consumer behaviour is the study of human or consumer

responses to products, services, and the marketing of products and services.

Consumer Behaviour in the Youth Market

Teenagers must face two major conflicts during this period of life: on one hand, they

have to balance between dependency and independency from their parents; while on the

other hand it is also hard to choose whether to conform to their peer group or develop a

unique personality. In order to be popular among adolescents, brands must represent such

specific characteristics that are easy to identify with in this ambivalent age (open,

friendly, rebellious) and values that are desired by teenagers (power, dynamism,

independency, intelligence). Nevertheless, an arrogant, ostentatious or bossy image

alienates the target group. A brand is welcome by girls, if it strengthens attractive

physical appearance and among boys, if it gives a hand to win in their rivalry with. Oral

advertisement fulfils an important role beside mass communication, thus strategies

providing wide area for teenagers to talk about a brand – either by connecting it to a

famous star, using a conspicuous logo or launching a humorous promotion – are

successful. In this age group „aspiration‟ brands mostly include fashion, cell phones and

entertaining electronics, while „possessed‟ brands usually concern fast food restaurants,

soft drinks or sweets.

(Assael,2005; International Consumer Life styles Database 2005; Deeter-Schmelz et al,

2000)

Characteristics of the Indian Consumer Behaviour

The Indian consumers are noted for the high degree of value orientation. Such orientation

to value has labelled. Indians are one of the most discerning consumers in the world.

Even, luxury brands have to design a unique pricing strategy in order to get a foothold in

the Indian market. Indian consumers have a high degree of family orientation. This

orientation in fact, extends to the extended family and friends as well. Brands with



identities that support family values tend to be popular and accepted easily in the Indian

market. Indian consumers are also associated with values of nurturing, care and affection.

These values are far more dominant that values of ambition and achievement. Product

which communicate feelings and emotions gel with the Indian consumers. Apart from

psychology and economics, the role of history and tradition in shaping the Indian

consumer behaviour is quite unique. Perhaps, only in India, one sees traditional products

alongside modern products. For example, hair oils and tooth powder existing with

shampoos and toothpaste. Over the years, as a result of the increasing literacy in the

country, exposure to the west, satellite television, foreign magazines and newspapers,

there is a significant increase of consumer awareness among the Indians. Today more and

more consumers are selective on the quality of the products/services. This awareness has

made the Indian consumers seek more and more reliable sources for purchases such as

organized retail chains that have a corporate background and where the accountability is

more pronounced. The consumer also seeks to purchase from a place where his/her

feedback is more valued. Indian consumers are now more aware and discerning, and are

knowledgeable about technology, products and the market and are beginning to demand

benefits beyond just availability of a range of products that came from „trusted‟

manufacturers. The Indian consumers are price sensitive and prefer to buy value for

money products (Paromita, 2007; Jayashree & Sakthivel 2006;).

Research Methodology

Sampling technique adopted was non-probability, convenience sampling technique.

Tirupur is one of the municipal corporation cities in Tamil Nadu, very well known for its

knitwear apparel export industry. Sample respondents are college from various colleges

in Tirupur. Sample size is 100 and the data was collected through a structured

questionnaire.

Limitations of the Study

The opinions were collected from 100 selected students only. Data was not collected

from the consumer for other region. The technical aspects were ignored for this study.

Only Tirupur college students were selected for the study. Apparel purchase behaviour is

alone considered for this study.

Data Analysis and Interpretation

Demographics

Table 1. Demographic Statistics

Gender Frequency Percentage

Male 41 41.0

Female 59 59.0

Total 100 100.0

Education



Diploma 22 22.0

UG 19 19.0

PG 17 17.0

Others 42 42.0

Total 100 100.0

Type Of College

Polytechnic 22 22.0

Arts & Science 30 30.0

Engineering 4 4.0

Others 44 44.0

Total 100 100.0

It is observed from the above table, in gender, 59% were female and 41% were male. In

education, 42% of the respondents have other qualification, 22% have Diploma, 19%

have UG degree, and 17% have PG degree. In type of college, 44% of the college

students were from other type colleges, 30% were from Arts & Science, 22% from

Polytechnic and 4% of the students from engineering colleges.

Consumer Apparel Purchase Decision Process

From the table 2 it is observed that for reason for buying new apparel, 39% of the

respondents reported that the reason for buying apparel was occasions and 29% reported

more money, 18% reported replacing old one and 14% reported was discount offer. For

influencers of apparel purchase decision, 50% of the respondents reported that friends

were the influencers of apparel purchase decision, 21% were parents, 15% were

brothers/sisters and 14% were sales persons. For accompanying persons during apparel

purchase, 42% of the respondents reported that friends, 34% reported brothers and sisters

and 24% reported parents accompany during apparel purchase. For getting information

about the apparel, 36% of the respondents reported they got information about the apparel

from leaflet and brochure, 21% from bill board, 18% from newspaper, 10% from

magazine and 2% from radio.

Table 2. Consumer Apparel Purchase Decision Process

Statements Particulars Frequency Percentage

Reason for Buying

New Apparel

Occasion 39 39.0

Discount offer 14 14.0

More money 29 29.0

Replacing old one 18 18.0

Total 100 100.0

Influencers of Parents 21 21.0




Reason for Buying

New Apparel

Occasion 39 39.0

Discount offer 14 14.0

More money 29 29.0

Replacing old one 18 18.0

Apparel Purchase

Decision

Friends 50 50.0

Sales person/Sellers 14 14.0

Brothers/Sisters 15 15.0

Total 100 100.0

Accompanying

Persons during

Apparel Purchase

Parents 24 24.0

Friends 42 42.0

Brother/sister 34 34.0

Total 100 100.0

Getting

Information about

the Apparel

Bill board 21 21.0

Leaflet /Broacher 36 36.0

Newspaper 18 18.0

Magazines 10 10.0

Radio 2 2.0

Television 13 13.0

Total 100 100.0

Search Information

before Apparel

Purchase

Yes 51 51.0

No 49 49.0

Total 100 100.0

Seeking

Consultation on

apparel information

Friends 27 27.0

Old users 40 40.0

Sales person 22 22.0

Parents 11 11.0

Total 100 100.0

Comparison of

Quality and Price

with Other Shops

Yes 92 92.0

No 8 8.0

Total 100 100.0

For search information before apparel purchase, 51% of the respondents reported they

searched information before shopping and 49% said always did not search the

information. For seeking consultation on apparel information, 40% of the respondents

reported they consult with old users, 27% consult with friends, 22% consult with sales



person and 11% consult with parents on apparel information. For comparison of quality

and price with other shops, 92% of the respondents compare the quality and price and

only 8% did not compare the price and quality of other shops before purchase.

Consumer Behaviour On Apparel Buying

Table 3. Consumer Behaviour On Apparel Buying


Pairs of Apparel

Bought Each Time

Two 69 69.0

Three 30 30.0

More than three 1 1.0

Total 100 100.0

Pairs of Apparel

Bought Last Year

Up to 3 16 16.0

4 to 6 52 52.0

7 to 9 32 32.0

Total 100 100.0

Willingness To Pay

for a Pair of

Apparel

Below 1000 0 0.0

1001- 2000 34 34.0

2001 -3000 66 66.0

Above 3000 0 0.0

Total 100 100.0

Where Bought

Apparel Previously

Departmental stores 13 13.0

Retail shop 86 86.0

Online 1 1.0

Total 100 100.0

Frequency of

Apparel Purchase

Every month 19 19.0

Every three month 59 59.0

Every six month 22 22.0

Total 100 100.0

Brand Preference

while Buying

Same old brand

style 20 20.0




Pairs of Apparel

Bought Each Time

Two 69 69.0

Three 30 30.0

More than three 1 1.0

Apparel

New brand same old

style 37 37.0

Same old brand new

style 43 43.0

Total 100 100.0

It is observed from the table 3 that for pairs of apparel bought each time 69% of the

respondents buy two, 30% of the respondents buy three pairs and 1% buys more than

three pairs of apparel each time. For pairs of apparel bought last year, 52% of the

respondents bought 4 to 6 pairs, 32 bought 7 to 9 pairs and 16% bought up to 3 pairs of

new apparel during last year. For willingness to pay for a pair of apparel, 66%

respondents willing to pay Rs. 2001-3000, 34% respondents willing to pay Rs1001-2000

and 0% willing to pay below Rs.1000 & above Rs.3000. For where bought apparel

previously, 86% of the respondents bought apparel from retail shop, 13% respondents

bought apparel from departmental store and 1% respondents buying from online. For

frequency of apparel purchase, 59% of the respondents buy apparel every three month,

22% of the respondents buy apparel every six month and 19% respondents buy apparel

every month. For brand preference while buying apparel, 43% of the respondents

preferred same old brand & new style, 37% of the respondents preferred new brand &

same old style and 20% respondents preferred same old brand and old style.

Importance Of Marketing Mix Factors

From the table 4 it is observed that for Product Factors, 53% of the respondents have

preferred medium importance, 25% have preferred high importance, 12% have preferred

most importance, 9% have preferred low importance and 1% have preferred least

importance to apparel product factors. For price factors 34% of the respondents have

preferred high importance, 24% have preferred medium importance, 22% have preferred

low importance, 12% have preferred least importance and 8% have preferred most

importance, to apparel price factors. For place factors, 36% of the respondents have

preferred medium importance, 35% have preferred high importance, 19% have preferred

low importance, 5% have preferred least importance and 4% have preferred most

importance, to apparel place factors. For promotional factors, 45% of the respondents

have preferred medium importance, 27% have preferred high importance, 14% have

preferred low importance, 9% have preferred most importance, and 5% have preferred

least importance to apparel promotional factors.

Table 4. Importance Of Marketing Mix Factors

IMPORTANCE FREQUENCY PERCENTAGE



Product

Factors

Least 1 1

Low 9 9

Medium 53 53

High 25 25

Most 12 12

Total 100 100.0

Price Factors

Least 12 12

Low 22 22

Medium 24 24

High 34 34

Most 8 8

Total 100 100.0

Place Factors Least 5 5

Low 19 19

Medium 36 36

High 35 35

Most 4 4

Total 100 100.0

Promotional

Factors

Least 5 5

Low 14 14

Medium 45 45

High 27 27

Most 9 9

Total 100 100.0

Chi –Square Test

The chi-square was done to measure the actual divergence of the observed and expected

frequencies of various variables.

Chi-square Test: Gender vs factors

Table 5. Chi-square Test : Gender vs factors

S.No Factors 2 df

Significance (5%

level)

1 Product Factors 10.496 4 Significant

2 Price Factors 8.011 4 Not Significant

3 Place Factors 11.813 4 Significant



4 Promotional Factors 10.394 4 Significant

5 Searching for new apparel 6.135 1 Significant

6 Time for buying new

apparel 6.159 2 Significant

From the table 5, it is observed that there is no significant difference in frequencies

between gender and price factors and there is a significant difference between gender and

product, price, promotional factors, searching for new apparel and time for buying new

apparel.

Chi-square Test: Education vs factors

Table 6. Chi-square Test : Education vs factors

S.No Factors 2 Value df

Significance (5%

level)


2 Price Factors 21.209 12 Significant



5 Comparing Quality 8.700 3 Significant

6 Pairs To Buy 20.792 6 Significant

From the table 6, it is observed that there is a significant difference in frequencies

between education and product, price, place, promotional factors, comparing quality and

pairs to buy.

Chi-square Test: Type of college vs factors

Table 7 Chi-square Test : Type of college vs factors

S.No Factors 2 Value df

Significance

(5% level)


2 Price Factors 23.449 12 Significant



5 Get The Information 25.994 9 Significant

6 Pairs To Buy 23.947 6 Significant

From the table 7, it is observed that there is a significant difference in frequencies

between type of college and product, price, place, promotional factors, get the

information and pairs to buy.

Findings, Suggestion and Conclusion



Findings

The finding for Consumer decision shows that

- 39% of the respondents reported that the reason for buying apparel was

occasions

- 50% of the respondents reported that friends were the influencers of apparel

purchase decision,

- 42% of the respondents reported that friends accompany during apparel

purchase.

- 36% of the respondents reported they got information about the apparel from

leaflet and brochure,

- 51% of the respondents reported they searched information before shopping

- 40% of the respondents reported they consult with old users, on apparel

information.

- 92% of the respondents compare the quality and price of other shops before

purchase.

The finding for consumer apparel buying shows that

- 69% of the respondents buy two of apparel each time.

- 52% of the respondents bought 4 to 6 pairs of new apparel during last year.

- 66% respondents willing to pay Rs.2001-3000 for a pair of apparel.

- 86% of the respondents bought apparel from retail shop

- 59% of the respondents buy apparel every three month

- 43% of the respondents preferred same old brand & new style

The finding for importance of Marketing mix factors of apparel shows that

- 53% of the respondents have preferred medium importance, to apparel product

factors

- 34% of the respondents have preferred high importance, to apparel price factors.

- 36% of the respondents have preferred medium importance, to apparel place

factors.

- 45% of the respondents have preferred medium importance, to apparel

promotional factors.

The finding of chi-square test shows that

- there is no significant difference in frequencies between gender and price

factors

- there is a significant difference between gender and product, price,

promotional factors, searching for new apparel and time for buying new

apparel.

- there is a significant difference in frequencies between education and product,

price, place, promotional factors, comparing quality and pairs to buy.



- there is a significant difference in frequencies between type of college and

product, price, place, promotional factors, get the information and pairs to

buy.

Suggestion

As friends play significant role in apparel purchase behaviour of college students, the

apparel retailers should consider making strategies involving friendship. Promotional

techniques may include themes related to friendship. They may hire college students as

promotional ambassadors for their brand. They may use these students to do promote

through social media marketing websites like Facebook, Twitter, etc. Social media

marketing is nowadays must for apparel stores. College students are information seeking

consumers about the apparel, through leaflets & brochures, old users etc. before purchase,

the retailers should make attractive and informative leaflets and brochures both in hard

copy and soft copy and have it distributed to the college students appropriately.

Considerable amount of college students searched information about apparel before

shopping, they consulted with old users, on apparel information and compared the quality

and price of other shops before purchase. They are interested in buying apparel in number

of pairs, promotional scheme of combo pack offer may be used. Normally they buy 4-6

pairs per year and 3-4 times they do apparel purchase per year, the apparel stores should

come up with very good attractive loyalty programmes to attract the college students to

their stores every time.

As college students have considerable degree of brand loyalty, the branding, brand

positioning and brand repositioning of the apparel is inevitable. Apparel stores may have

tie-ups with the various colleges in various ways like sponsorships, social programmes,

conducting events, etc.

Promotional schemes may be linked to the study performance of the students. As there is

a significant difference in purchase behaviour of apparel between male and female

students the apparel stores should consider targeting these two groups separately.

Conclusion

College student consumer segment in India is one of the significant target market

segment for apparels. This segment provides very good business opportunities for apparel

retailers, particularly branded apparel retailers. The mind set of these target customers

changes very quickly because of various factors like social media, communication

technologies, etc. Catering to these consumers will be a very much challenging job. The

apparel retailers have to come up with good strategies to cater those target customers.

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A PURCHASE DECISION AND BUYING BEHAVIOUR OF COLLEGE …apps.aima.in/ejournal_new/articlesPDF/4 Dr M Krishnakumar.pdf · the apparel industry which occupies the top place in the organised