8
Volume 4, Number 3, July September’ 2015 ISSN (Print):2279-0977, (Online):2279-0985 PEZZOTTAITE JOURNALS SJ IF (2012): 3.23, SJ IF (2013): 5.057, SJ IF (2014): 5.871 International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1768 | Page A STUDY ON CONSUMER BEHAVIOUR IN THE FOOTWEAR INDUSTRY Geetha Anand 26 U. Alekya 27 ABSTRACT The fashion industry has seen a spurt of growth in the past few years, more so in India. An important part of this fashion boom is the footwear industry. An industry as varied as any other, the footwear industry in India is one of the most competitive and vibrant. This paper seeks to analyses the footwear industry in India, and the buying process that goes into a purchase. With customers becoming increasingly fashion conscious and spendthrift, and the industry becoming more global in its appeal, the consumers‟ purchase pattern has also seen a shift in terms of various parameters. However, in a diverse Indian market, the entire consumer base can be segmented to use the Bottom of the Pyramid approach. This paper seeks to analyze spending patterns and consumer behavior across the pyramid in the Indian market. KEYWORDS Bottom of the Pyramid, Consumer Preference, Footwear etc. INTRODUCTION Footwear is the product to protect human feet from effects of all biological damages. The necessity of using footwear was recognized back in the Ice Ages when people realized that they had to keep their feet warm in order to keep themselves healthy. Footwear has undergone a series of changes passing through a journey of inventions. While initially leather and dried grasses were used to wrap around the feet for protection, it evolved into more comfortable wear with leather strapping for a better hold. Eventually it metamorphosed into an accessory and a fashion statement besides providing protection for the feet. Today, footwear is made out a number of materials like leather, PVC, artificial leather, canvas, wood, plastics and cloth. Called by different names, footwear is classified as boots, slippers, flip-flops, shoes, sandals, ballerinas, stilettos and many more depending on the style, make and purpose. A host of demographics, lifestyle, and fashion trends drives the footwear business. Ideally, the market for this industry is as big as the population itself. It would therefore, not be an exaggeration to say that globally the footwear industry is having an expanding market, rather it is axiomatic. Even today, there is a large part of the population who go about bare feet especially in the under-developed countries for the simple reason that they cannot afford them. As the world population increases; so, the living standards of people rise thus increasing the demand for footwear. India is already riding the wave of a retail boom fuelled by fast evolving lifestyles and behavioural changes towards shopping. Therefore, the footwear industry will be directly benefitted in terms of an exponentially expanding market. RESEARCH PROBLEM The study on consumer behaviour in the footwear industry enables us to analyze one‟s buying decision. Footwear is a necessity and is therefore bought by the consumers of every income group whether at the top of the pyramid or at the bottom of the pyramid. The present project is an attempt to understand the differences in buying patterns of footwear of people belonging to different income groups; the difference in buying patterns of men and women. Category motivators identified are price, looks, purpose, brand name, style, variety and durability. SIGNIFICANCE OF STUDY The present research will help to portray a detailed picture of consumer preferences towards purchasing footwear. The research will help in segmenting consumers based on various parameters like gender preferences, spending patterns, type of footwear purchased, fashion consciousness; understanding the concepts of bottom and top of the pyramid and its reference to the Indian footwear industry; focus on the new path to purchase footwear viz; online shopping. OBJECTIVES OF STUDY To study the present status of the Indian Footwear Industry. To analyze and compare the consumer behaviour at the Bottom of the pyramid and Top of the pyramid in the Footwear Industry. To study the factors influencing the purchase of footwear. 26 Lecturer, St. Francis College for Women, Telangana, India, [email protected] 27 Consultant, DE Shaw India Software Private Limited, Telangana, India, [email protected]

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1768 |P a g e

A STUDY ON CONSUMER BEHAVIOUR IN THE FOOTWEAR INDUSTRY

Geetha Anand26 U. Alekya27

ABSTRACT

The fashion industry has seen a spurt of growth in the past few years, more so in India. An important part of this fashion boom

is the footwear industry. An industry as varied as any other, the footwear industry in India is one of the most competitive and

vibrant. This paper seeks to analyses the footwear industry in India, and the buying process that goes into a purchase. With

customers becoming increasingly fashion conscious and spendthrift, and the industry becoming more global in its appeal, the

consumers‟ purchase pattern has also seen a shift in terms of various parameters. However, in a diverse Indian market, the

entire consumer base can be segmented to use the Bottom of the Pyramid approach. This paper seeks to analyze spending

patterns and consumer behavior across the pyramid in the Indian market.

KEYWORDS

Bottom of the Pyramid, Consumer Preference, Footwear etc.

INTRODUCTION

Footwear is the product to protect human feet from effects of all biological damages. The necessity of using footwear was

recognized back in the Ice Ages when people realized that they had to keep their feet warm in order to keep themselves healthy.

Footwear has undergone a series of changes passing through a journey of inventions. While initially leather and dried grasses were

used to wrap around the feet for protection, it evolved into more comfortable wear with leather strapping for a better hold. Eventually

it metamorphosed into an accessory and a fashion statement besides providing protection for the feet. Today, footwear is made out a

number of materials like leather, PVC, artificial leather, canvas, wood, plastics and cloth. Called by different names, footwear is

classified as boots, slippers, flip-flops, shoes, sandals, ballerinas, stilettos and many more depending on the style, make and

purpose. A host of demographics, lifestyle, and fashion trends drives the footwear business. Ideally, the market for this industry is

as big as the population itself. It would therefore, not be an exaggeration to say that globally the footwear industry is having an

expanding market, rather it is axiomatic. Even today, there is a large part of the population who go about bare feet especially in

the under-developed countries for the simple reason that they cannot afford them. As the world population increases; so, the living

standards of people rise thus increasing the demand for footwear. India is already riding the wave of a retail boom fuelled by fast

evolving lifestyles and behavioural changes towards shopping. Therefore, the footwear industry will be directly benefitted in

terms of an exponentially expanding market.

RESEARCH PROBLEM

The study on consumer behaviour in the footwear industry enables us to analyze one‟s buying decision. Footwear is a necessity

and is therefore bought by the consumers of every income group whether at the top of the pyramid or at the bottom of the

pyramid. The present project is an attempt to understand the differences in buying patterns of footwear of people belonging to

different income groups; the difference in buying patterns of men and women. Category motivators identified are price, looks,

purpose, brand name, style, variety and durability.

SIGNIFICANCE OF STUDY

The present research will help to portray a detailed picture of consumer preferences towards purchasing footwear. The research

will help in segmenting consumers based on various parameters like gender preferences, spending patterns, type of footwear

purchased, fashion consciousness; understanding the concepts of bottom and top of the pyramid and its reference to the Indian

footwear industry; focus on the new path to purchase footwear viz; online shopping.

OBJECTIVES OF STUDY

To study the present status of the Indian Footwear Industry.

To analyze and compare the consumer behaviour at the Bottom of the pyramid and Top of the pyramid in the Footwear

Industry.

To study the factors influencing the purchase of footwear.

26Lecturer, St. Francis College for Women, Telangana, India, [email protected] 27Consultant, DE Shaw India Software Private Limited, Telangana, India, [email protected]

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1769 |P a g e

To analyze the consumer behaviour towards shopping footwear online, as well as the shopping behavior of men and

women.

METHODOLOGY OF RESEARCH

Methodology: Primary and secondary data has been collected for an analytical study to understand the buying behaviour of the

consumers.

Sample Design: The total sample size of 110 respondents was drawn from a variety of consumer groups having diverse

demographic backgrounds and societal lifestyles.

Tools and Techniques of Analysis: Statistical tools like frequency distribution, percentages and statistical techniques like Likert

scale analysis, Chi-square test have been used to test the association between the variables.

SCOPE OF STUDY

The area of study was restricted to the twin cities of Hyderabad and Secunderabad. Sample size is 110; hence, the results of the

study may not be 100% accurate.

REVIEW OF LITERATURE

U.S. President Franklin D. Roosevelt in his April 7, 1932 radio address used the phrase “Bottom of the pyramid”. BOP refers to

the billions of people living on less than $2 per day, as first defined in 1998 by Professors C.K. Prahalad and Stuart L. Hart.

Subsequently, they expanded it in “The Fortune at the Bottom of the Pyramid” by Prahalad in 2004[2] and Capitalism at the

Crossroads by Hart in 2005[3].

The Bottom of the Pyramid (BOP) is a socio-economic concept. This is a group of over four billion poorest citizens across the

world that is usually ignored when strategizing and need to be recognized as an integral part of the society with aspirations and

desires to be included in the main stream. Since this is a cross-section of people comprising a very diverse mix in terms of

literacy, location ( rural-urban), culture, religion and more differences, segmentation becomes very complex. Financial inclusion

for them is a myth. This segment offers a vast opportunity for marketers with their demand as consumers of products worth about

$5 trillion in purchasing power parity terms.

Marketing strategy in BOP market segments needs to look at profits by volume rather than through margin. The consumers are

looking for value for money. Marketing at the Bottom of the Pyramid requires a different mindset and thinking along lines, which

address the differences in the background, aspirations, cultural norms and buying behavior of the BOP consumers. Self-esteem

and social recognition play an important role in the lives of the poorest consumers too. They would buy products that would make

them look and feel good.

Figure-1: Income Pyramid

The Basis for the Survey Conducted

At the next rung, there has been a shift in income levels over the past decade or so,

resulting in an emerging middle class having high ambitions, and a strong desire to

improve their standards of living. Their spending patterns are changing and

priorities have changed to include higher expenditure on education, health, energy,

transportation, and personal care. The present status of Indian footwear industry:

This sub-topic deals with the first objective of the study and hence secondary data

forms a major part of reference. Footwear is an ancient, traditional industry in India

and over the years has undergone a sea change. The industry is segmented into

different classes- casual-wear, dress-wear and sportswear. An emerging market for

medical purposes like diabetic footwear is fast becoming popular. The footwear

industry is gaining ground as the foot-care industry. Brands such as Dr. Scholl are

making a foray into the market offering solutions for various foot problems. It has

been observed that many companies used the demographic segmentation of gender

and age to concentrate on different segments like men‟s, women‟s and children‟s-

wear separately.

Footwear industry has been generating considerable employment in the nation especially among weaker sections and minority

sections of society due to population growth, exports, and increasing domestic markets. Traditionally, India had a huge

unorganized and protected footwear industry. With the change in the economic scenario, which gave way to the opening up of the

economy, a large number of international players have found their way into India. This has created a competitive market and is

giving the customers a lot more choice. It has also made the older players rise from their slumber and become less complacent.

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1770 |P a g e

India is the second largest global producer of footwear after China, accounting for 13% of

global footwear production. India produced 2065 million pairs of footwear in 2012-2013 of

which the production of leather footwear was about 1009 Million pairs (including

production of leather shoe uppers), and production of non-leather footwear was about 1056

Million pairs. Nearly 95% of India‟s production goes to meet its own domestic demand.

Some of the major production centers of footwear in India are Chennai, Ranipet and Ambur

in Tamil Nadu, Pune, Kolhapur and Mumbai in Maharashtra, Kanpur and Agra in U.P.,

Ludhiana and Jalandhar in Punjab, Delhi, Sonepat, Faridabad and Karnal in Haryana,

Kolkata in West Bengal, Ernakulam and Calicut in Kerala.

Indian footwear industry was dominated by the unorganized sector with a share of 70% in

2012. The organized sector comprising of major domestic and international players like

Bata, Liberty, Adidas and Metro etc. accounted for only 30% of the market. The organized

segment is incorporating advanced technologies in footwear production to increase its share

in the market spurring the share of organized sector in to grow at a higher rate in the future

from a current rate of 10-15%. Increased disposable income among urban middle-class and

abundant availability of raw materials in the market is driving fashion consciousness. The

market was estimated at Rs. 22,000 Crore in 2012 and is expected to touch Rs. 38,700 Crore

by 2015, growing at a CAGR of more than 20% as against the prevailing rate of about 15%.

MARKET SEGMENTATION

The footwear market can also be bifurcated into men, women and kid‟s footwear segments.

Men‟s footwear occupies the maximum share in the Indian footwear market. The share of

men‟s footwear was estimated to be around 55% in 2012, followed by women‟s footwear

with a share of 30%. Further, kid‟s footwear was estimated to capture around 15% share in

the market in 2012. The footwear industry in India is fragmented into casual footwear, mass

footwear, premium and sports footwear. Mass footwear usually refers to low price footwear

and majorly consists of slippers. On the other hand, casual footwear involves those

preferred by people for daily wear in schools, colleges or workplace etc. Casual footwear

dominates the market followed by mass footwear. The share of casual footwear was

estimated to be 61% in 2012. However, casual footwear is expected to continue to dominate

the market the share of sports and premium footwear is expected to increase.

CUSTOMER SEGMENTATION

Retail footwear segment in Indian is very price sensitive. Major part of the demand is met by the unorganized sector and still there

is a shortfall of 300 million pairs. Branded shoe market only account for 20% of the entire market. While international brands

largely dominate the higher end of the spectrum, domestic as well as unorganized players dominate the lower end of the market.

Table-1: Segment Wise Classification of Price Ranges in Men’s Footwear Segments

Sources: Authors Compilation

Table-2: Segment Wise Classification of Women Footwear Segment

Sources: Authors Compilation

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1771 |P a g e

DATA ANALYSIS AND INTERPRETATION

The primary data for the study has been collected from a random sample using a questionnaire. The respondents of various age

groups, income levels, occupations were asked for their opinions.

Table-3: Demographic Profile

Category Respondents Percentage Category Respondents Percentage

Gender

Male

Female

50

60

45%

55%

Age

12-25 years

25-45 years

45-60 years

Above 60 years

30

44

28

8

27%

40%

25%

7%

Annual Income

No Income

Below Rs.2,00,000

Rs.2,00,000– Rs. 5,00,000

Rs.5,00,000–Rs 10,00,000

Above Rs 10,00,000

28

35

21

13

13

25%

32%

19%

12%

12%

Occupation

Student

Homemaker

Entrepreneur

Working Professional

Daily wage earners

Others

17

14

15

36

23

5

15%

13%

14%

33%

21%

5%

Sources: Authors Compilation

Table-4: Cross Tabulation between Gender and the Amount

The Respondents Are Ready To Spend On a Pair of Branded Footwear

Gender Upto Rs.2000 Rs.2000 – Rs. 4000 Rs.4000 - Rs.6000 Above Rs.6000 Total

Male 23 37% 13 65% 2 50% 1 50% 39 44%

Female 39 63% 7 35% 2 50% 1 50% 49 56%

Total 62 100% 20 100% 4 100% 2 100% 88 100%

Sources: Authors Compilation

Table-5: Cross Tabulation between Gender and the Amount the

Respondents Are Ready to Spend on a Pair of Unbranded Footwear

Gender Rs100-250 Rs250-500 Rs. 500-1000 Rs.1000-1500 Total

Male 15 (56%) 14 (36%) 14 (45%) 7 (54%) 50 (45%)

Female 12 (44%) 25 (64%) 17 (55%) 6 (46%) 60 (55%)

Total 27 (100%) 39 (100%) 31 (100%) 13 (100%) 110 (100%)

Sources: Authors Compilation

Table-6: Cross Tabulation between Gender of the Respondents

and the Most Important Factor Considered While Purchasing Footwear

Gender Price Quality Comfort Fashion/Trends Total

Male 11 65% 17 57% 19 40% 3 19% 50 45%

Female 6 35% 13 43% 28 60% 13 81% 60 55%

Total 17 100% 30 100% 47 100% 16 100% 110 100%

Sources: Authors Compilation

Table-7: Cross Tabulation between Age of the Respondents and the Medium through

Which They Gain Awareness about Footwear Stores / Brands

Age Word of

Mouth

Online

Promotions

Advertising

(Newspapers, Billboards)

Television

Ads

Total

12-25 years 9 (21%) 2 (50%) 10 (21%) 7 (47%) 28 (26%)

25-45 years 22 (52%) 0 (0%) 20 (43%) 2 (13%) 44 (41%)

45-60 years 11 (26%) 2 (50%) 11 (23%) 4 (27%) 28 (26%)

Above60 years 0 (0%) 0 (0%) 6 (13%) 2 (13%) 8 (7%)

Total 42 (100%) 4 (100%) 47 (100%) 15 (100%) 108 (100%)

Sources: Authors Compilation

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1772 |P a g e

Table-8: Cross Tabulation between Age of the Respondents and the

One Most Important factor they Consider While Purchasing Footwear

Age Price Quality Comfort Fashion Total

12-25 years 3 4 13 10 30

25-45 years 6 13 20 5 44

45-60 years 6 13 8 1 28

Above 60 years 2 0 6 0 8

Total 17 30 47 16 110

Sources: Authors Compilation

Table-9: Chi Square Test between Age of the Respondents and the one

Most Important Factor They Consider While Purchasing Footwear

Age Price Quality Comfort Fashion Total

12-25 years O.F=3

E.F=4.63

CHI= 0.57

O.F=4

E.F=8.18

CHI= 2.13

O.F=13

E.F=12.81

CHI= 0.00

O.F=10

E.F=4.36

CHI= 7.29

30

25-45 years O.F=6

E.F=6.80

CHI= 0.09

O.F=13

E.F=12

CHI= 0.08

O.F=20

E.F=18.8

CHI= 0.07

O.F=5

E.F=6.4

CHI= 0.3

44

45-60 years O.F=6

E.F=4.32

CHI= 0.65

O.F=13

E.F=7.63

CHI= 3.77

O.F=8

E.F=11.96

CHI= 1.31

O.F=1

E.F=4.07

CHI= 2.31

28

Above 60 years O.F=2

E.F=1.23

CHI= 0.47

O.F=0

E.F=2.18

CHI=2.17

O.F=6

E.F=3.41

CHI= 1.96

O.F=0

E.F=1.16

CHI= 1.15

8

Total 17 30 47 16 110

Sources: Authors Compilation

Interpretation

Null hypothesis: The two variables age of the respondents and the one most important factor they consider while purchasing

footwear are independent of each other.

Alternative Hypothesis: The two variables age of the respondents and the one most important factor they consider while

purchasing footwear are dependent of each other.

Total Chi square value =24.32; Degree‟s of freedom (d.f.) = 9

Pearson‟s table value at p=0.05 is 16.919

Result: The calculated value of chi-square i.e. 24.32 is greater than the Pearson‟s table value i.e. 16.919 at p=0.05. This indicates

that the null hypothesis is rejected and the alternate hypothesis is accepted. Thus, the 2 variables age and the one most important

factor they consider while purchasing footwear are associated with each other.

Decision: From the above interpretation, we can say that as the needs of different age group are varied the retailers must try to

understand and fulfill these different needs to gain new customers and retain the existing ones.

Table-10: Cross Tabulation between the Annual Income of the

Respondents and Number of Pairs of Footwear, They Have

Income Below 5 pairs 5-10 pairs 10-15 pairs Above 15 pairs Total

Below Rs. 2 lakhs 20 7 0 0 27

Rs. 2 lakhs- Rs. 5 lakhs 27 6 0 1 34

Rs.5 lakhs- Rs. 10 lakhs 8 7 4 2 21

Above Rs. 10 lakhs 1 6 3 3 13

Total 51 33 12 12 108

Sources: Authors Compilation

The above cross tabulation states that out of 34 people of the income group Rs. 2 lakhs–Rs. 5 lakhs, 27 of them have footwear

below 5 pairs and 6 people out of 13 respondents belonging to income category Above 10 lakhs have 5-10 pairs of footwear. To

understand better chi-square test is done. The respondents who have more than one pair in the no income category are those who

are dependents and their family income is in the middle or high-income category.

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1773 |P a g e

Table-11: Chi–square Between the Annual Income of the Respondents and Number of Pairs of Footwear They Have

Income Below 5 pairs 5-10 pairs 10-15 pairs Above 15 pairs Total

No income O.F=20

E.F=16

CHI=1

O.F=7

E.F=7.25

CHI=0.00

O.F=0

E.F=2

CHI=20

O.F=0

E.F=1.75

CHI=1.74

27

Below Rs. 2 lakhs O.F=27

E.F=20.14

CHI=2.33

O.F=6

E.F=9.12

CHI=1.06

O.F=0

E.F=2.51

CHI=2.50

O.F=1

E.F=2.20

CHI=0.65

34

Rs. 2 lakhs- Rs. 5 lakhs O.F=8

E.F=12.44

CHI=1.58

O.F=7

E.F=5.63

CHI=0.33

O.F=4

E.F=1.55

CHI=3.87

O.F=2

E.F=1.36

CHI=0.29

21

Rs.5 lakhs- Rs. 10 lakhs O.F=8

E.F=7.70

CHI=0.01

O.F=3

E.F=3.49

CHI=0.06

O.F=1

E.F=0.96

CHI=0

O.F=1

E.F=0.84

CHI=0.02

13

Above Rs. 10 lakhs O.F=1

E.F=7.70

CHI=5.82

O.F=6

E.F=3.49

CHI=1.80

O.F=3

E.F=0.96

CHI=4.33

O.F=3

E.F=0.84

CHI=5.54

13

Total 64 29 8 7 108

Sources: Authors Compilation

Interpretation

Null hypothesis: The two variables income of the respondents and number of pairs of footwear they have are independent of each

other.

Alternative Hypothesis: The two variables income of the respondents and no. of pairs of footwear they have are dependent of each

other.

Total Chi square value =34.93; Degree‟s of freedom (d.f.) = 12

Pearson‟s table value at p=0.05 is 21.026

Result: The calculated value of chi-square i.e. 34.93 is greater than the Pearson‟s table value i.e. 21.026 at p=0.05. This indicates

that the null hypothesis is rejected and the alternate hypothesis is accepted. Thus, the 2 variables income of the respondents and

number of pairs of footwear they have are dependent of each other.

Decision: Thus, we can say that people at the bottom of the pyramid can afford only to have a pair of footwear. The extra income

they earn may not be allotted to purchase footwear.

Table-12: Cross Tabulation between Annual Income of Respondents and the Kind of Footwear They Prefer

Income Branded

Footwear

Unbranded

Footwear

Both Branded

and Unbranded

Total

No Income 5 0 23 28

Below Rs. 2 lakhs 2 23 10 35

Rs. 2 lakhs - Rs. 5 lakhs 5 2 14 21

Rs.5 lakhs - Rs. 10 lakhs 2 0 11 13

Above Rs. 10 lakhs 6 0 7 13

Total 20 25 65 110

Sources: Authors Compilation

The above cross tabulation states that people at the bottom of the pyramid buy only unbranded footwear and people at the middle

and top of the pyramid can afford both branded and unbranded footwear. We observe that 23 people belonging to below Rs. 2

lakhs income segment buy unbranded footwear. To understand better we conducted a chi-square test.

Chi-Square test between annual income of the respondents and the kind of footwear they prefer.

Null hypothesis: The two variables annual income of the respondents and the kind of footwear they prefer are independent of each

other.

Alternative Hypothesis: The two variables annual income of the respondents and the kind of footwear they prefer are dependent of

each other.

Total Chi square value =61.04; Degree‟s of freedom (d.f.) = 8

Pearson‟s table value at p=0.05 is 15.507

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International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1774 |P a g e

Result: The calculated value of chi-square i.e. 61.04 is greater that the Pearson‟s table value i.e. 15.507 at p=0.05. This indicates

that the null hypothesis is rejected and the alternate hypothesis is accepted. Thus, the two variables annual income of the

respondents and the kind of footwear they prefer are dependent of each other.

Table-13

Income Branded

footwear

Unbranded

Footwear

Both Branded

and Unbranded

Total

No Income O.F =5

E.F=5.09

CHI=0

O.F =0

E.F=6.36

CHI=6.35

O.F =23

E.F=16.54

CHI=2.52

28

Below Rs. 2 lakhs O.F =2

E.F=6.36

CHI=2.98

O.F =23

E.F=7.95

CHI=28.49

O.F =10

E.F=20.68

CHI=5.51

35

Rs. 2 lakhs- Rs. 5 lakhs O.F =5

E.F=3.81

CHI=0.37

O.F =2

E.F=4.77

CHI=1.60

O.F =14

E.F=12.40

CHI=0.20

21

Rs.5 lakhs- Rs. 10 lakhs O.F =2

E.F=2.36

CHI=0.05

O.F =0

E.F=2.95

CHI=2.94

O.F =11

E.F=7.68

CHI=1.43

13

Above Rs. 10 lakhs O.F =6

E.F=2.36

CHI=5.61

O.F =0

E.F=2.95

CHI=2.94

O.F =7

E.F=7.68

CHI=0.05

13

Total 20 25 65 110

Sources: Authors Compilation

FINDINGS

Respondents also agree that shoes are a source of impression and helps in judging one‟s appearance.

Majority of the respondents prefer to purchase both branded and unbranded footwear. Respondents consider quality,

luxury, brand loyalty, social status and finally income as the order of importance while purchasing branded footwear.

Price, design, quality, purchase frequency and income are the factors considered while the respondents purchase

unbranded footwear.

Majority of the respondents purchase footwear as per their need. Whether it is branded footwear or unbranded footwear

men are ready to spend more on a pair of footwear when compared to women.

Majority of the respondents prefer purchasing footwear from physical stores due to the difficulties associated with

online shopping of footwear.

Newspapers, Billboards and word of mouth are the most popular media through which one gains awareness about

footwear brands.

People at the bottom of the pyramid can afford to have only a pair of footwear that satisfies their basic need.

Majority of male respondents prefer wearing formal shoes and female respondents prefer wearing slippers / sandals.

However, the choice of the footwear keeps changing according to their need, occasion, attire, season, geographical

location etc.

Majority of respondents prefer shopping from multi branded stores, as they possess a lot of variety and save a lot of

time.

Many of the respondents are unaware about warranty of footwear .The study tells us that celebrity endorsements are

important in footwear advertisement to increase sales of a company.

People consider comfort as the primary important factor. While men consider quality as the second important factor,

women consider fashion/ trends.

Young people prefer to have multiple footwear of different variety. Other age groups prefer to have one pair but which

is comfortable and long lasting.

CONCLUSION

Thus, the study concludes that the footwear industry in India is expanding at an incredible rate. Local brands like Bata, Paragon,

Liberty, Khadims, Relaxo are popular among lower income and middle-income groups, while the top-of-the-pyramid segment

clamors after the international brands like Woodland, Nike, Reebok, Adidas, FILA, Catwalk, Inc5 and Puma. The poorest

consumers also desire self-esteem and social recognition and buy items that not only fulfill their needs but also look nice and

make them feel better. They also satisfy this need by using the hand-me-downs of the top-of-the-pyramid consumers.

Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0977, (Online):2279-0985

PEZZOTTAITE JOURNALS SJIF (2012): 3.23, SJIF (2013): 5.057, SJIF (2014): 5.871

International Journal of Applied Services Marketing Perspectives© Pezzottaite Journals. 1775 |P a g e

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