Dissertation report on switching behavior of consumer

CONSUMER SWITCHING BEHAVIOR

A

DISSERTATION ON

TO STUDY THE SWITCHING BEHAVIOUR OF CONSUMER SPECIAL REFRENCE TO URBAN

MARKET

SUBMITTED BY

………ENROLLMENT No ……..

in partial fulfillment for the award of the degree

Of

BACHELOR OF COMMERCE

MANGALAYATAN UNIVERSITY, ALIGARH

MAY 2016

1


STUDENT’S DECLARATION

This is to certify that Report entitled “To study the switching behavior of consumer special reference to urban market ”which is submitted by me in partial fulfillment of the requirement for the award of degree B.Com(Hons.) To Mangalayatan University, Aligarh comprises only my original work and due acknowledgement has been made in the text to all other materialused.

Date: Name

Signature of the student

2


SUPERVISOR’S CERTIFICATE

This is to certify that Report entitled “To study the switching behavior of consumer special

reference to urban market” which is submitted by ….. in partial fulfillment of the

requirement for the award of degree B.Com to Mangalayatan University, Aligarh is a record

of the candidate’s own work carried out by him/her under my/our supervision. The matter embodied in

this thesis is original and has not been submitted for the award of any other degree.

Date: Name

Signature of Supervisor

3


ACKNOWLEDGEMENT

"I have taken efforts in this Dissertation. However, it would not have been possible without the

kind support and help of many individuals and organizations. I would like to extend my sincere

thanks to all of them.

I am highly indebted to ……. for their guidance and constant supervision as well as for

providing necessary information regarding dissertation & also for their support in completing the

dissertation.

I would like to express my gratitude towards my parents & Members of Manglayatan University

for their kind co-operation and encouragement which help me in completion of this Dissertation.

4


ABSTRACT

Basically my study focuses on consumer behavior, because now a day’s consumer behavior is

very important, while making decision before purchasing a product or brand. My study will

investigate the relationship between those factors which influence consumer buying behavior

while decision making. In my study I have select four variables in which “price, Quality and

Brand Name” are independent variables and consumer behavior is dependent variable.

In my research I will use positivism paradigm and will collect quantitative data through a survey

questionnaire and will fill that questionnaires from respondents, of different demographic

segment. I will prepare easy and simple questions which can easily understandable by the

respondent, and will talk politely with respondent during filling of questionnaires. After

collecting data I will put data in SPSS and use descriptive, correlation and regression analysis

tests to conclude data.

Complex global developments in all areas, as well as in the field of marketing have forced

marketers to target their activities. In this paper attempted to provide a framework of consumer

behavior. In this study, first definition of consumer behavior, the key concepts of consumer

behavior and buying decision process and then model of consumer behavior is presented.

In Present Marketing Scenario, the Study of Consumer Behavior has become essential.

Consumers are the kings of markets. Without consumers no business organization can run. All

the activities of the business concerns end with consumers and consumer satisfaction. Customer

behavior study is based on consumer buying behavior, with the customer playing the three

distinct roles of user, payer and buyer. Consumer buying behavior has become an integral part of

strategic market planning. In order to develop a framework for the study consumer behavior it is

helpful to begin by considering the evolution of the field of consumer research and the different

paradigms of thought that have influenced the discipline. As described in this article, a set of

dimensions can be identified in the literature, which can be used to characterize and differentiate

the various perspectives on consumer research. It is argued that consumer behavior itself

emerged as a distinct field of study during the 1960s; and is characterized by two broad

paradigms, the positivist and the non-positivist. The positivist paradigm encompasses the

5


economic, behavioral, cognitive, motivational / trait / attitudinal, and situational perspectives;

these perspectives are referred to as the traditional perspectives as they pre-date the development

of the non-positivist paradigm. The positivist paradigm, which is still the dominant paradigm,

emphasizes the supremacy of human reason and that there is a single, objective truth that can be

discovered by science. The opposing, non-positivist paradigm, envelops the interpretive and

postmodern perspectives, which have emerged more recently during the period post-1980 to

date. The rational view and the ideology of a homogenous social culture and thereby deny the

complex social and cultural world in which consumers live. The traditional, positivist perspective

takes a very utilitarian approach to the benefits from consumption. While the non-positivist

perspectives place much greater emphasis on the symbolic dimensions of choice. The objective

of non-positivist research endeavor is to achieve a better understanding of consumer behaviour

with no specific intent to influence consumer processes. This article aims to identify different

streams of thought that could guide future consumer research.

6


CONTENTS

Sl. No. Title Page No.

Chapter-01 INTRODUCTION

1.1 Introduction

1.2 Problem Identification

1.3 Need and significance of consumer behavior

1.4 Review of literature

1.5 Objective

1.6 Hypothesis

1.7 Research Method

Research Design

Selection of units

Sampling Techniques

Sample Size

Data Collection

Statistical technique for data analysis

1.8 Organization of the study

1.9 Limitations

Chapter- 02 Conceptual framework of the switching behavior of

consumer.

Chapter- 03 Data analysis and interpretation of data

Chapter- 04 Findings and Conclusion

4.1 Findings

4.2 Conclusion

Chapter- 05 Recommendation

Appendices

Bibliography

7


LIST OF TABLE


01 Classification of respondents based on their Gender.

02 Classification of respondents based on the group of people.

03 Classification of respondents based on their age.

04 Classification of respondents based on the factor affecting buying

decision.

05 Classification of respondents based on their choice for buying

product.

3.1 Classification of respondents based on their Gender.

3.2 Classification of respondents based on the group of people.

3.3 Classification of respondents based on their age.

3.4 Classification of respondents based on the factor affecting buying

decision.

3.5 Classification of respondents based on their choice for buying

product.

8


LIST OF FIGURES


Fig. 01 Statistical technique for data collection

Fig. 2.1 Consumer preference purchase behavior

Fig. 2.2 Factor affecting consumer behavior

Fig. 2.3 Consumer decision making process

Fig. 3.1 Classification based on their gender

Fig. 3.2 Group of people

Fig. 3.3 Classification based on their age

Fig. 3.4 Factor affecting buying decision

Fig. 3.5 Choice for buying a product

9


CHAPTER- 1

INTRODUCTION

1.1 Introduction

First of all I would like to elaborate that what is consumer behavior “those acts of individuals

directly involved in obtaining and using economic goods and services including decision procure

that and determine these acts”. Consumer behavior is the study of when, why, how, and where

people do or do not buy a product. Every business focus on consumer behavior and they

conducts study to find out the need and wants of consumers and also conduct research that how a

marketer can change the behavior of consumer. There are many factors which influence the

consumer behavior but I will study on only three variables “price, quality, and Brand Name” and

will check the relationship of these three factors with consumer buying behavior. I will specify

my study in cosmetic sector products. Because Cosmetic products are important consumer

products with an essential role in everyone's life: apart from "traditional" cosmetic products, such

as make-up and perfumes, it also includes products for personal hygiene, for example tooth-care

products, shampoos and soaps.

Definition: Consumer behavior include mental activity, emotional and physical that people use

during selection, purchase, use and dispose of products and services that satisfy their needs and

desires (Kotler, 1999)

Today's cosmetic market is driven by innovation including new color pallets, treatments targeted

to specific skin types and unique formulas concentrating on different needs. Most cosmetics

products have a lifespan of less than five years and manufacturers reformulate 25% of their

products every year. They need to improve products constantly in order to stay ahead in a highly

competitive market where more choice and ever greater efficacy are expected by the consumer.

10


Many of these chemicals are toxic but the cosmetics industry does not want you to know this.

Just like all the other big industries in the US, the cosmetics industry is all about making big

profits (with 50 billion dollars in sales each year) and very little or absolutely nothing about

providing you the public with a safe product. Even many people, who are very careful about

what they eat, may well not be aware of the often toxic ingredients contained in cosmetics.

In spite of their efforts to hide information, we need to start reading labels. If a product has too

many ingredients with lengthy names, avoid it. Go for organic which are much less likely to have

toxic chemicals

Thousands of people are suffering the adverse affects from using cosmetic problems without

realizing what the cause of their suffering is. This can be in the form of burning sensations,

reddening of the skin, pimples or rashes. Others might not suffer from outward signs and

symptoms but from actual systemic toxins.

Consumer behavior is the study of individuals, groups, or organizations and the processes they

use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs

and the impacts that these processes have on the consumer and society. [1] It blends elements

from psychology, sociology, social anthropology, marketing and economics. It attempts to

understand the decision-making processes of buyers, both individually and in groups such as

how emotions affect buying behavior. It studies characteristics of individual consumers such

as demographics and behavioral variables in an attempt to understand people's wants. It also tries

to assess influences on the consumer from groups such as family, friends, sports, reference

groups, and society in general

Consumer behavior in marketing is a new issue. So that the first books published does not reach

before 1968 in this field. Most universities do not make any effort before 1970, but it has grown

significantly in recent years, So that a special team of investigators was formed in 1970 about

consumer behavior and in 1990 the group had 1500 members from 30 countries

11

https://en.wikipedia.org/wiki/Demographic

https://en.wikipedia.org/wiki/Economics

https://en.wikipedia.org/wiki/Anthropology

https://en.wikipedia.org/wiki/Social_Anthropology

https://en.wikipedia.org/wiki/Sociology

https://en.wikipedia.org/wiki/Psychology

https://en.wikipedia.org/wiki/Consumer_behaviour#cite_note-1


Key concepts of consumer behavior

1) Consumer behavior is motivational: The main question that arises in this context is that

"why consumer behaviors occur?”. Answer to this question is included in the definition of

consumer behavior. Consumer behavior is to meet the needs and demands of him. Behavior is a

tool to achieve objectives and target consumer derives from his needs and desires. (wilke, 2000)

2) Consumer behavior include many activities: All consumers have differences in terms of

thoughts, feelings, and decisions and ... With each other. Marketers must pay attention to the

activities of consumers, some consumers activities are: See this advertisement, purchase

decision, the decision about how to pay (cash, credit) and...

3) Consumer behavior is a process: Consumer behavior, including the selection, purchase and

consumption of goods and services that include elimination of three steps before buying

activities, purchasing activities, activities after purchase.

4) Consumer behavior at different times has different complexity: Buy different product by

different people has different implications. Buy some goods, involves all three- process step of

the consumer Behavior, While buying some goods (goods that are consumed regularly) is very

simple and does not require multiple steps. Customers try to make buying process simple

through trusting others, loyalty to the brand

5) Consumer behavior includes different roles: Consumers in different time can play each of

the three roles affective, buyers and consumer. When we buy something for our self we can play

that 3 role. Sometimes by using others opinion buy something for some one that in this case we

can play an individual role.

6) Consumer behavior is influenced by external factors: Consumer behavior is influenced by

many external factors such as culture, subculture, and social classes ... Located. These effects can

be short, medium or long term.

7) Consumer behavior is different in different people: Because people have different desires

and needs, so their behavior is different And the difference consumer behavior make predict

consumer behavior more difficult, to resolve this problem can categories the market.

12


1.2 PROBLEM IDENTIFICATION

Understanding consumer behavior is important for any organization before launching a product.

If the organization failed to analyze how customer will respond to a particular product, the

company will face losses. Consumer behavior is very complex because each consumer has

different mind and attitude towards purchase, consumption and disposal of product (Solomon,

2009). Understanding the theories and concepts of consumer behavior helps to market the

product or services successfully. Moreover, studying consumer behavior helps in many aspects.

As there is constant change in the living standards, trend, fashion and change in technology;

consumer's attitude towards the purchase of product varies (Kumar, 2004). Understanding these

factors is of utmost importance because the marketing of product are largely dependent on these

factors. Thus, consumer behavior serves as a successful tool for marketers in meeting their sales

objectives.

Consumer Behavior or the Buyer Behavior is referred to the behavior that is displayed by the

individual while they are buying, consuming or disposing any particular product or services.

These behaviors can be affected by multiple factors. Moreover, it also involves search for a

product, evaluation of product where the consumer evaluate different features, purchase and

consumption of product. Later the post purchase behavior of product is studied which shows the

consumer satisfaction or dissatisfaction where it involves disposal of product (Solomon, 2009).

The customers while buying a product goes through many steps. The study of consumer behavior

helps to understand how the buying decision is made and how they look for a product. Moreover,

the understanding consumer behavior also helps marketers to know the what, where, when, how

and why of the consumption of product consumption. These help marketers or organizations to

know the reason behind the purchase of product by consumers and how it satisfies them. Among

other factors, the basic needs like shelter and hunger along with craving for psychological

fulfillment tends consumer to buy a certain product or services.

This dissertation discusses the value to marketers of understanding and applying consumer

behavior concepts and theories.

13


1.3 Need and significance of consumer behavior

Consumer Behavior may be understood as the decision process and physical activity individuals

engage in evaluating, acquiring, using or disposing of products. The organizations cannot

achieve success in their respective businesses if they fail to meet the requirements of the

consumer. People are unique and their consumption habits are unique therefore marketers need

to understand the behavior of the consumers in designing and developing right products to the

right consumers.

The modern marketing management tries to solve the basic problems of consumers in the area of

consumption. To survive in the market, a firm has to be constantly innovating and understand the

latest consumer needs and tastes. It will be extremely useful in exploiting marketing

opportunities and in meeting the challenges that the Indian market offers

Role or importance of study of consumer behavior can be explained with reference to the

points stated as under:

I. Importance of Consumer Behavior to business managers

The main purpose behind marketing a product is to satisfy demands and wants of the Consumers.

Study of consumer behavior helps to achieve this purpose. As consumers are the most important

person for marketer or sales person, therefore it is important for them to consider the likes and

dislikes the consumers so that they can provide them with the goods and services accordingly

(Solomon, 2009). The more careful analysis helps in more exact prediction about the behavior of

consumers of any product or services. The study of consumer behaviors helps business manager,

sales person and marketers in the following way.

To design the best possible product or service that fully satisfies consumer's needs and

demands.

To decide where the service or product would be made available for easy access of

consumers.

To decide the price at which the consumers would be ready to buy that product or

service.

14


To find out the best method of promotion that will prove to be effective to attract

customers to buy a product.

To understand why, when, how, what and other factors that influence buying decision of

the consumers.

II. Importance of Consumer Behavior to Marketers

It is important for marketers to study consumer behavior. It is important for them to know

consumers as individual or groups opt for, purchase, consumer or dispose products and services

and how they share their experience to satisfy their wants or needs (Solomon, 2009). This helps

marketers to investigate and understand the way in which consumers behave so that they can

position their products to specific group of people or targeted individuals.

In regard to the marketer's view point, they assume that the basic purpose of marketing is to sell

goods and services to more people so that more profit could be made. This principle of making

profits is heavily applied by almost all marketers. Earlier, the marketers were successful in

accomplishing their purpose. However, today, as the consumers are more aware about the use of

product and other information of the product, it is not easy to sell or attract customer to buy the

product (Kumar, 2004). Thus, in order to sell a product or service or to convince consumers to

buy product, the marketers have to undergo through proper research to win them over.

The following are some of the points discussed that explains the value to marketers of

understanding and applying consumer behavior concepts and theories.

To understand Buying Behavior of consumers

To create and retain customers though online stores

To Understand the factors influencing Consumer's buying Behavior

To understand the consumer's decision to dispose a product or services

To increase the knowledge of sales person influence consumer to buy product

To help marketers to sale of product and create focused marketing strategies

III. other importance

15


1. Modern Philosophy:

It concerns with modern marketing philosophy – identify consumers’ needs and satisfy them

more effectively than competitors. It makes marketing consumer-oriented. It is the key to

succeed.

2. Achievement of Goals:

The key to a company’s survival, profitability, and growth in a highly competitive marketing

environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner

than the competitors. Thus, consumer behaviour helps in achieving marketing goals.

3. Useful for Dealers and Salesmen:

The study of consumer behavior is not useful for the company alone. Knowledge of consumer

behavior is equally useful for middlemen and salesmen to perform their tasks effectively in

meeting consumers needs and wants successfully. Consumer behavior, thus, improves

performance of the entire distribution system.

4. More Relevant Marketing Programme:

Marketing programme, consisting of product, price, promotion, and distribution decisions, can be

prepared more objectively. The programme can be more relevant if it is based on the study of

consumer behavior. Meaningful marketing programme is instrumental in realizing marketing

goals.

5. Adjusting Marketing Programme over Time:

Consumer behavior studies the consumer response pattern on a continuous basis. So, a marketer

can easily come to know the changes taking place in the market. Based on the current market

trend, the marketer can make necessary changes in marketing programme to adjust with the

market.

6. Predicting Market Trend:

Consumer behavior can also aid in projecting the future market trends. Marketer finds enough

time to prepare for exploiting the emerging opportunities, and/or facing challenges and threats.

16


7. Consumer Differentiation:

Market exhibits considerable differentiations. Each segment needs and wants different products.

For every segment, a separate marketing programme is needed. Knowledge of consumer

differentiation is a key to fit marking offers with different groups of buyers. Consumer behaviour

study supplies the details about consumer differentiations.

8. Creation and Retention of Consumers:

Marketers who base their offerings on recognition of consumer needs find a ready market for

their products. Company finds it easy to sell its products. In the same way, the company, due to

continuous study of consumer behavior and attempts to meet changing expectations of the

buyers, can retain its consumers for a long period.

9. Competition:

Consumer behavior study assists in facing competition, too. Based on consumers’ expectations,

more competitive advantages can be offered. It is useful in improving competitive strengths of

the company.

10. Developing New Products:

New product is developed in respect of needs and wants of the target market. In order to develop

the best-fit product, a marketer must know adequately about the market. Thus, the study of

consumer behavior is the base for developing a new product successfully.

11. Dynamic Nature of Market:

Consumer behavior focuses on dynamic nature of the market. It helps the manager to be

dynamic, alert, and active in satisfying consumers better and sooner than competitors. Consumer

behavior is indispensable to watch movements of the markets.

12. Effective Use of Productive Resources:

The study of consumer behavior assists the manager to make the organisational efforts

consumer-oriented. It ensures an exact use of resources for achieving maximum efficiency. Each

unit of resources can contribute maximum to objectives.

17


It is to be mentioned that the study of consumer behavior is not only important for the current

sales, but also helps in capturing the future market. Consumer behavior assumes: Take care of

consumer needs, the consumers, in return, will take care of your needs. Most of problems can be

reasonably solved by the study of consumer behavior. Modern marketing practice is almost

impossible without the study of consumer behavior.

18


1.4 REVIEW OF LITERATURE

Abideen Z. Et al (2011) explore the effective advertising and its influence on consumer buying

behavior. The purpose of their study was to explore that how advertisement an audience

(viewers, readers or listeners) to purchase or take some action upon products, information, or

services etc. they studied 3 variables in which consumer buying behavior was dependent and

emotional and environmental response were independent. They investigate the relationship

between independent variables which are environmental response and emotional response with

attitudinal and behavioral aspect of consumer buying behavior. They collect data from 200

respondent living RAWALPINDI, ISLAMABAD and LAHORE. And analyze data through

regression analysis by putting in SPSS (statistical package for social sciences) and find out that it

is true that people purchase those brands with which they are emotionally attached.

Nezakati H et al (2011) examines the factors influencing consumer buying behavior in

automobile industry. The purpose of their research is to identify what factors will influence

consumer buying behavior towards automobile industry in Malaysia. They took (Price

consciousness, value consciousness, price-quality inference risk averseness, beliefs, perception,

attitude, and group influences) as independent variable. And Intention to purchase of imported

car as dependent variable. They collect data from 210 respondent and use multiple regression to

analyze data and find that every consumer check the quality of the product and compare them

with other brands and also his/her income, either it is affordable or not. In this study they find

that consumer want to be a best quality of product instead all other factors. Manufacturing and

marketers should play attention on what the major factors that will influence the consumer

purchase behavior in order to sustain competitive in the market. Therefore, to successfully

complete in the Malaysia market, marketers or manufacturing must emphasize the quality of the

products in order to gain competitive advantages in the market especially local car

manufacturing companies such as PROTON and PERODUA. Marketers and Manufacturing

companies must remember quality is the factors that will influences consumer’s beliefs and also

will influence the intention to purchase. Marketers also should increase the product quality in

order to increase the consumer’s beliefs about the products by maintaining the quality to gain

19


competitive advantage. The recommendations for foreign car manufacturing are must maintain

the quality of the car in order to gain competitive advantages in market.

Haque A (2009) investigates the “Factors Influencing Buying Behavior of Piracy Products” in

Malaysian market. The purpose of this study was to explore the influencing factors of the

Malaysian consumers toward the pirated products. They studied factors social influence,

personality believe, pricing and economy as independent variables to check their relationship on

consumer perception. Their sample size was 550 but they found 500 questionnaires to be

adequate for research purpose. Each of the response received was screened for errors, incomplete

and missing responses. Out of which only 491 responses were considered complete and valid for

data analysis. And they analyze their data through descriptive and regression analysis to make

conclusion. They find that the majority of the Asian people try to get product at the most

reasonable cost, which encouraged some business people to do piracy so that all the products of

the various sorts reach the vast majority of the people.

Hypothesis was developed for each of these variables showing the relationship that the variables

have towards consumers’ perception on piracy. When the regression test was run, social

influence, pricing and the economy showed that the null hypothesis should be rejected

concluding that there is relationship between these variables and the dependent variable, which is

consumers’ perception on piracy. Nevertheless, individuals personality and their believe proved

that there is no significant relationship with consumers perception. Although most sources say

that there is no ending to the word “piracy”.

Li N and P Zhang (ND) determines the "Consumer online shopping attitudes and behavior," the

purpose of their study is to synthesize the representative literature of consumer online shopping

attitudes and behavior based on an analytical literature review. After considering the 35

empirical studies, they identified a total of ten interrelated factors which empirical evidence

shows significant relationships. These ten factors or variables are "external environment,

demographics, personal characteristics, Vender / service / product characteristics, quality site, as

independent variables and Attitude regarding online shopping, intention to shop online decision

making, online purchasing, customer satisfaction, as the dependent variable. The 35 empirical

studies are analyzed in this study, of these 29 of them used research method. Three dependent

20


variables (consumer attitudes, intentions, and buying behavior) and three independent variables

(personal characteristics, vendor / service / product characteristics, site quality) get the most

attention. This seems to represent the main stream of research in this area. Attitudes toward

online shopping and other factors, measuring intention to thirteen shop online and 14 studies the

relationship between online purchasing and other factors. Fourteen studies considering personal

characteristics, 16 vender / service / product characteristics, site quality and 20. It appears that

personal characteristics, vender / service / product characteristics, and website quality

significantly online shopping attitude, intention and behavior. The direct implication of their

findings is aimed at more convenient consumer groups, improving product / service quality, and

improving the quality of websites can positively influence consumer attitudes and behavior,. The

role of the external environment, demography, online shopping decision-making and consumer

satisfaction are less important. Any number of factors including the vender / service / product

characteristics, site quality, attitude towards online shopping, intention to shop online, making

online shopping and online purchases, can influence consumer satisfaction. Customer

satisfaction directly affects on the attitude towards online shopping or to specific internet shops.

Adhi W. and Safitri L. (ND) determines the CONSUMER’S PERCEIVED VALUE AND

BUYING BEHAVIOR OF STORE BRANDs. And the aim of their study is to provide

understanding on the subject of Consumers Perceived Values and buying behavior towards store

brands products in the perspective of Indonesia’s consumers. They conduct this study in grocery

field and find that Buying processes in grocery shopping involve many factors relating to the

final decision of the consumers and those aspects influence Consumer Perceived Value and their

buying behavior on deciding which type of product they would buy. They study nine different

variables in which “involvement, loyalty, familiar, quality, price, risk.” as independent and

“consumer perceived” values as mediating and “buying behavior and willingness to buy” as

dependent variable. They collect data from 300 respondents and use different types of analysis

after putting into SPSS. They use mean analysis to check out the tendency of respondent and use

cross tab to show the distribution of two variables in cross tabulation. Reliability analysis used to

reflect internal consistency, frequency distribution and multiple linear regression analysis. In

mean analysis they find that the mean with low variable “The purchase of store brand grocery

items is risky because the quality of store brands is inferior”, meaning that most respondents

disagree (answered strongly disagree/disagree) with the statement. And mean with high value

21


Product that “I buy from grocery store matters a lot to me”, meaning that most respondents have

the most agreed opinion with the statement. In crosstab analysis there is no relationship between

willingness of buying store brands compared to national brands and their income level. There is

also a relationship between recommendations of store brand grocery product to friends and their

age group; group age of < 25 years old and > 40 years old have the tendency to recommend store

brands to their friends and relatives. In overall, the findings shows that consumer’s perceived

value contribute positively to their perceptions of store brands and the better knowledge on the

aspects of store brand products due to their past experience in purchasing the items lead to

positive perceptions which eventually will lead to good possibility for them in re-purchasing

store brands products in the future.

Koufaris M. (2002) investigate “Applying the Technology Acceptance Model and Flow

Theory to Online Consumer Behavior” the purpose of their study is to check how emotional and

cognitive responses to visiting a Web-based store for the first time can influence online

consumers’ intention to return and their likelihood to make unplanned purchases. They studied

11 different types of variables in which “product involvement, web skills, value-added search

mechanism, challenges” as independent variables and “perceived control, shopping enjoyment,

concentration, perceived usefulness and perceived ease of use” as mediating and “unplanned

purchase and intention to return” as dependent variables. They conduct an quantitative study to

examine to consumer behavior and collect data from 300 respondents which filled out in one

week and after screening 280 questionnaire were properly found filled. And use mean, cross

tabulation and linear regression analysis to analyze data after putting into SPSS. They found the

results on unplanned purchases were surprising. And there is no relationship between unplanned

purchases and the flow variables of shopping enjoyment, concentration, and perceived control.

They also confirmed some prior research on flow. They found that perceived Web skills and

positive challenges are positively related with shopping enjoyment and concentration of online

consumers. From a substantive point of view, they examined how emotional and cognitive

responses to the shopping experience on the Web can influence online consumer behavior,

specifically, intention to return and unplanned purchases for new customers. Looking at the

online consumer both as a shopper and a computer user, by blending theoretical paradigms from

psychology, marketing, and information systems, we confirmed the dual nature of the online

consumer as a traditional shopper and a computer user.

22


1.5 OBJACTIVES

To find out the impact of different factors on consumer’s switching behavior.

To find out the consumer preference & choices.

To find out the how consumer awareness affect the brand, price, Market Image of product

etc.

1.6 HYPOTHESIS

What are the factors affecting on consumer buying behavior?

H01: there is no significant impact of different factor on consumer behavior.

H02: there is no significant of awareness of consumer that create brand identity.

H03: : there is no significant impact of consumer preference & choice towards modern

marketing

23


1.7RESEARCH METHODOLOGY

Research methodology is the process of solving the problem systematically by research. The

objective of the study is to solve the problem by using available data

i. Research Design

A Research Design provides the framework to be used as a guide in collecting and analyzing

data. Research design is a detailed blue print used to guide the research study towards its

objectives.

There are three traditional categories of research design namely:

Exploratory Research

Descriptive Research

Casual Research

The choice of the most appropriate design depends largely on the objectives of the research and

how much is known about the problem and these objectives.

Exploratory Research

Exploratory research is used principally to gain a deeper understanding of something. The design

is far more flexible and dynamic than that of descriptive research. This genre of research simply

allows the marketer to gain a greater understanding of something that s/he doesn’t know enough

about. For example, just because we know that 3G phones exist, it doesn’t necessarily mean that

we understand how they work. Exploratory research can help in this instance.

In Exploratory Research the objective is to gain background information, to define terms, to

clarify problems and develop hypotheses, to establish research priorities, to develop questions to

be answered. The objective of exploratory research is to gather preliminary information that will

help define problems and suggest hypotheses.

Descriptive Research

24


Descriptive research can be either quantitative or qualitative. It can involve collections of

quantitative information that can be tabulated along a continuum in numerical form, such as

scores on a test or the number of times a person chooses to use a-certain feature of a multimedia

program, or it can describe categories of information such as gender or patterns of interaction

when using technology in a group situation. Descriptive research involves gathering data that

describe events and then organizes, tabulates, depicts, and describes the data collection (Glass &

Hopkins, 1984). It often uses visual aids such as graphs and charts to aid the reader in

understanding the data distribution. Because the human mind cannot extract the full import of a

large mass of raw data, descriptive statistics are very important in reducing the data to

manageable form. When in-depth, narrative descriptions of small numbers of cases are involved,

the research uses description as a tool to organize data into patterns that emerge during analysis.

The term descriptive research refers to the type of research question, design, and data analysis

that will be applied to a given topic. Descriptive research gathers quantifiable information that

can be used for statistical inference on your target audience through data analysis. As a

consequence this type of research takes the form of closed-ended questions, which limits its

ability to provide unique insights. However, used properly it can help an organization better

define and measure the significance of something about a group of respondents and the

population they represent.

A descriptive study is one in which information is collected without changing the environment

(i.e., nothing is manipulated). Sometimes these are referred to as “ correlational ” or “

observational ” studies. The Office of Human Research Protections (OHRP) defines a descriptive

study as “Any study that is not truly experimental.” In human research, a descriptive study can

provide information about the naturally occurring health status, behavior, attitudes or other

characteristics of a particular group. Descriptive studies are also conducted to relationships

between things in the world around you.

Descriptive studies can involve a one-time interaction with groups of people Descriptive studies,

in which the researcher interacts with the participant, may involve surveys or interviews to

collect the necessary information. Descriptive studies in which the researcher does not interact

with the participant include observational studies of people in an environment and studies

involving data collection using existing records.

25

http://fluidsurveys.com/university/comparing-closed-ended-and-open-ended-questions/

http://fluidsurveys.com/response-analysis/


Casual Research:

Causal Research the objective is to determine causality, test hypotheses, to make "if-then"

statements and to answer questions. Causal Research explores the effect of one thing on another

and more specifically, the effect of one variable on another.

The research is used to measure what impact a specific change will have on existing norms and

allows market researchers to predict hypothetical scenarios upon which a company can base its

business plan.

For example, if a clothing company currently sells blue denim jeans, causal research can measure

the impact of the company changing the product design to the color white.

Following the research, company bosses will be able to decide whether changing the colour of

the jeans to white would be profitable.

To summarize, causal research is a way of seeing how actions now will affect a business in the

future.

The Research Design used for the survey is Descriptive Research and the type of research design is Gross-sectional

A cross-sectional study involves looking at people who differ on one key characteristic (such as

age) at one specific point in time. The data is collected at the same time from people who are

similar on other characteristics but different on a key factor of interest such as age, income levels

and geographic locations. Participants are usually separated into groups known as cohorts. For

example, researchers might create cohorts of participants who are in their 20s, 30s and 40

This type of study uses different groups of people who differ in the variable of interest but who

share other characteristics such as socioeconomic status, educational background and ethnicity.

Cross-sectional studies are often used in developmental psychology, but this method is also

utilized in many other areas including social science and education.

26

http://psychology.about.com/od/developmentstudyguide/p/devintro.htm


For example, researchers studying developmental psychology might select groups of people who

are remarkably similar in most areas, but differ only in age. By doing this, any differences

between groups can presumably be attributed to age differences rather than to other variables.

ii. Selection of units

In this research I have collected data from 100 respondents. Who live in different areas of

Aligarh. I have personally questioned people by interviewing, group discussing and telephoning

and have collected information about the different brand which they have used.

iii. Sampling Technique

Sample is the fraction of the population; sampling is a technique or a method of selection of

samples. The researcher in carrying out this research adopted the most appropriate sampling

technique for research that is the simple random technique.

Sampling methods are classified as either probability or non-probability. In probability samples,

each member of the population has a known non-zero probability of being selected. Probability

methods include random sampling, systematic sampling, and stratified sampling. In non-

probability sampling, members are selected from the population in some nonrandom manner.

These include convenience sampling, judgment sampling, quota sampling, and snowball

sampling. The advantage of probability sampling is that sampling error can be calculated.

Sampling error is the degree to which a sample might differ from the population. When inferring

to the population, results are reported plus or minus the sampling error. In non-probability

sampling, the degree to which the sample differs from the population remains unknown.



technique for research that is the simple random technique,

Simple Random Sampling

Simple random sampling method, it is assumed that each and every unit in the population has

equal chance of occurrence or equal probability of occurrence. In other words the sampling units

are selected randomly. An unbiased random selection of individuals is important so that in the

27


long run, the sample represents the population. However, this does not guarantee that a particular

sample is a perfect representation of the population. Simple random sampling merely allows one

to draw externally valid conclusions about the entire population based on the sample.

Conceptually, simple random sampling is the simplest of the probability sampling techniques. It

requires a complete sampling frame, which may not be available or feasible to construct for large

populations. Even if a complete frame is available, more efficient approaches may be possible if

other useful information is available about the units in the population. The researchers have

taken 100 samples randomly. Primary sources of data collected through questionnaire,

magazines, journals and website are referred as a secondary source.

iv. Sample size

In this research I have collected data from 100 respondents. Who live in different areas of

Aligarh. I have personally questioned people by interviewing, group discussing and telephoning

and have collected information about the different brand which they have used.

The sample consists of 4 types of respondents:

Students 60%

Professionals 20%

Parents 5%

Neighbors 15%

Instrument Questionnaire

Response Rate 100%

28


v. Data Collection

In this research I have used primary and secondary information. Secondary information about the

“factors affecting on consumer behavior” is gathered from the different sources such as articles.

However for the primary information we have conducted questionnaire survey. We have used

quantitative data for our research. Primary data can be collected in a number of ways using both

qualitative and quantitative methods.

Primary data: it can be collected in a number of ways using both qualitative and quantitative

methods.

Quantitative research: it produces numbers and figures of consumers who are aware of

products or services. The main methods of quantitative research methods are discussed

below:

Personal questionnaire: This lists questions on a form with specified answers from which the

respondents must choose. Questions may be multiple choices or use various scaling methods.

This can take place anywhere.

Telephone interview: the use of telephone interviews has increased overtime and is popular as it

is cost-effective. The speed of collection and processing of information is fast, and there is more

situational control and respondents are easily accessible.

Qualitative research: it provides data on why people buy, their motivations and their

impressions of products and services along with an insight into feelings, motives and

values of the sample being studied. In turn this method helps us to understand consumer

behavior through informal analysis methods.

In-depth interviews: requires a trained interviewer who encourages the interviewee to discuss topics freely. Questions tend to be open ended, allowing creativity of thoughts and feelings to be expressed. Findings cannot be numerically recorded.

Group discussions: Similar to depth interviews, yet this involves the gathering of a small number of people for a set amount of time to discuss topics under the leadership and direction of the researcher. This allows great interaction and is the most common method of qualitative data used.

29


Secondary Data

There is a considerable amount of secondary data available for researchers. A source of

secondary data, which has already been collected for some other purpose, has been used for the

project. Secondary information has been collected to form the literature review and background

on customer switching, Information was gathered from the Internet, University Library, Market

reports, journals etc.

The advantage of using secondary data is that it is accurate at the time it was produced,

depending upon the source, and it provides information on how industries have evolved over the

years. It also provides statistical information, which can help to analyze social, demographic and

economic trends, and is time and cost effective. In addition to the above, using secondary data

means the privacy of people is less invaded.

The main disadvantage of using secondary data is that it has originally been collected for a

purpose, which differs, from the current hypotheses being investigated. Furthermore secondary

data can become out of date, as it was probably collected and published a few years ago and

gaining access to it may be difficult and costly, ex. - market research reports.

30


vi. Statistical technique for Data analysis

Research is both an art and a science. While much of the practice of research is based upon well-

researched factors, many decisions about program activities can be made through a research

which is guided by common sense and practicality.

For data analysis steps are following:

Fig-1

31


Step-1: Identification of problem

The customers while buying a product goes through many steps. The study of consumer behavior

helps to understand how the buying decision is made and how they look for a product. Moreover,

the understanding consumer behavior also helps marketers to know the what, where, when, how

and why of the consumption of product consumption. These help marketers or organizations to

know the reason behind the purchase of product by consumers and how it satisfies them. Among

other factors, the basic needs like shelter and hunger along with craving for psychological

fulfillment tends consumer to buy a certain product or services.

This dissertation discusses the value to marketers of understanding and applying consumer

behavior concepts and theories.

Step- 2: Research Objective

Objectives are the steps we are going to take to answer research questions or a specific list of

tasks needed to accomplish the goals of the project.

To find out the impact of different factors on consumer’s buying behavior.

To find out the consumer preference & choices.

To find out the how consumer awareness affect the brand.

Step-3: Sources of data

Primary Sources:

Primary sources are original materials on which research is based. They are firsthand testimony

or direct evidence concerning a topic under consideration. They present information in its

original form, neither interpreted nor condensed nor evaluated by other writers.

Whether a source if primary can be determined by the way it is being used by the researcher. For

example, a speech about the Declaration of Independence that was delivered by a noted

statesman on its hundredth anniversary would be secondary source for a scholar studying the

document’s philosophical origins. But it would be a primary source for a scholar studying how

the Declaration’s meaning has changed for Americans over time.

32


Examples:

Newspaper articles (reporting events)

Photographs

Interviews (legal proceedings, personal, telephone, e-mail)

Correspondence

Trial transcripts

Fiction, poems, music

Experimental results

Autobiographies, personal narratives, memoirs

Diaries

Manuscripts

Data

Secondary Sources:

Secondary sources offer interpretation or analysis based on primary sources. They may explain

primary sources and often uses them to support a specific thesis or argument or to persuade the

reader to accept a certain point of view. Such works are one or more steps removed from the

event—being written with the benefit of hindsight.

Examples:

Journal articles

Biography

Encyclopedias

Dissertations

Research analysis

Works of criticism and interpretation

Newspaper articles (analyzing news)

33


Step-4: Data collection

In this research I have used primary and secondary information. Secondary information about the

“factors affecting on consumer behavior” is gathered from the different sources such as articles.

However for the primary information we have conducted questionnaire survey. We have used

quantitative data for our research. Primary data can be collected in a number of ways using both

qualitative and quantitative methods.

Quantitative research: it produces numbers and figures of consumers who are aware of

products or services. The main methods of quantitative research methods are discussed

below:

Personal questionnaire: This lists questions on a form with specified answers from which the

respondents must choose. Questions may be multiple choices or use various scaling methods.

This can take place anywhere.

Telephone interview: the use of telephone interviews has increased overtime and is popular as it

is cost-effective. The speed of collection and processing of information is fast, and there is more

situational control and respondents are easily accessible.

Qualitative research: it provides data on why people buy, their motivations and their

impressions of products and services along with an insight into feelings, motives and

values of the sample being studied. In turn this method helps us to understand consumer

behavior through informal analysis methods.

In-depth interviews: requires a trained interviewer who encourages the interviewee to discuss topics freely. Questions tend to be open ended, allowing creativity of thoughts and feelings to be expressed. Findings cannot be numerically recorded.

Group discussions: Similar to depth interviews, yet this involves the gathering of a small number of people for a set amount of time to discuss topics under the leadership and direction of the researcher. This allows great interaction and is the most common method of qualitative data used.

34


Step-5: Sample



technique for research that is the simple random technique.

Simple Random Sampling

Simple random sampling method, it is assumed that each and every unit in the population has

equal chance of occurrence or equal probability of occurrence. In other words the sampling units

are selected randomly. Conceptually, simple random sampling is the simplest of the probability

sampling techniques. It requires a complete sampling frame, which may not be available or

feasible to construct for large populations. Even if a complete frame is available, more efficient

approaches may be possible if other useful information is available about the units in the

population. I have taken 100 samples randomly. Primary sources of data collected through

questionnaire, magazines, journals and website are referred as a secondary source.

Step-6: Sample size

In this research I have collected data from 100 respondents of different age group like as-

students, neighbors, professionals, relatives etc. Who live in different areas of Aligarh. I have

personally questioned people by interviewing, group discussing and telephoning and have

collected information about the different brand which they have used.

Step-7: Data analysis & Data interpretation

CLASSIFICATION OF RESPONDENTS ON THEIR GENDER

Table No. 1

Gender No. of respondents (%)

Male 40%

Female 60%

Total 100

35


Interpretation

From the above table no.1, it can be observed that majority of the respondents were female that is 60 % and male were 40 %.

CLASSIFICATION OF RESPONDENTS BASED ON THE GROUP OF PEOPLE

Table No.2

Attributes No. of respondents Percentage (%)

Students 60 60

Professionals 20 20

Relatives 5 5

Neighbors 15 15

Response Rate 100 100

INTERPRETATION

From the above table no.2, it can be observed that majority of the respondents

Were student that is 60%, Professionals 20%, Neighbors 15% and 5% Relatives.

CLASSIFICATION OF RESPONDENTS BASED ON THEIR AGE

Table No. 3

Age No. of respondents

20-25 45

26-30 12

31-35 18

36-40 10

40-45 15

Total 100

36


INTERPRETATION

From the above table3, it can be observed that majority of the respondents that is 45% are under

the age category 20-25, 18% are in the age category of 31-35, 15% of the respondents falls in the

age group40-45,12% of the respondents are in the age group 26-30 and 10% of the respondents

are in the age category of 36-40.

CLASSIFICATION OF RESPONDENTS BASED ON THE FACTOR AFFECTING

BUYING DECISION

Table No.4

Factors No. of respondents

Brand 35

Prize 15

Availability 22

Ease of use 10

Quality 18

Total 100

INTERPRETATION

From the above table 4, it can be observed that majority of the respondents that is 35% of the

respondents opined that brand influences purchasing decision, 22% of the respondents opined

that they buy product by availability, 18% of the respondents opined that they buy product by

seeing quality, 15% of the respondents opined that they buy product by seeing price and 10% of

the respondents opined that they buy product according to their ease to use.

37


CLASSIFICATION OF RESPONDENTS ON BASED ON THEIR CHOICE FOR

BYUING A PRODUCT

Table No.5

Particulars No. of respondents Percentage (%)

Brand name 25 25

Price 36 36

Packaging 17 17

Features 14 14

Others 8 8

Total 100 100

INTERPRETATION

from the above table it can be observed that majority of the respondents, that is, 36% of the

respondent opined that they buy product by seeing price, 25%of the respondents opined that they

buy product by seeing brand name , 17%of the respondents opined that they buy product by

seeing packaging 14% of the respondents opined that they buy product by seeing features, of the

respondents opined that they buy product by seeing other features.

Step-8: Findings and observation

Majority of the respondents were female that is 60%, male were 40%.

Majority of the respondents were student that is 60%, 20% professionals, 15% neighbors,

5% relatives .

Majority of the respondents 45 % are under the age category of 20-25, 18% of

respondents are in the age category of 31-35 and 15%of respondents are in the age

category of 41-45, 12% of respondents are in the age category of26-30.

Majority of the respondents opined that various factors affect the buying decisions of

products. The majority of the respondents that is 35% opined that 35 influences

purchasing decision, 22% of respondents opined that availability influences purchasing

decision, 18% of respondents opined that quality influences purchasing decision and 15%

38


of respondents opined that prize factors influences the purchasing decision, 10% of

respondents opined that ease of use factors influences the purchasing decision.

Majority of the respondents that is 36% preferred prize of the product , 25% of

respondents opined that brand factors influences their decision for purchasing a particular

product, 17% of respondents opined that packaging influences their decision for

purchasing a particular product, 14% of respondents opined that Features of the product

influences their decision for purchasing a particular product, only 8% of respondents

opined that other factors influences their decision for purchasing a particular product.

Step-9: Conclusion

Consumer behavior changes with brand, quality and market image of the product. Consumer

taste and preference change with product to product. Knowing about consumer taste &

preferences is need of a company for making a unique image in the market and maintain it also

for gain more profit and growth of the organization. Today consumer wants brand with low price

or suitable prize. Consumer goes with those products, which fulfills their need and satisfy them.

In present, consumer is a king of market.

Step-10 Recommendation

The collected data says that, the consumers are more price conscious, but with this, they

are looking for good quality products too. So now company should design their

marketing strategy where they can offer quality product with reasonable price.

For the betterment and making consumer well aware, a separate department at company

level should be created which will take care of the issues and problems of consumers.

Company should think about price differentiate strategy for urban and consumer.

Company should design their marketing strategies in such a way, where a consumer

would like to purchase the product repetitively due to associated benefit and by the time

company get advantage of brand loyalty.

Continuous Research and Development activities should be focused upon to understand

the changing pattern of test and preferences of the products by the customers and

according the products should be developed.

1.8 Organization of the study

39


Introduction;

Consumer behavior is the study of when, why, how, and where people do or do not buy a product. Every business focus on consumer behavior and they conducts study to find out the need and wants of consumers and also conduct research that how a marketer can change the behavior of consumer. There are many factors which influence the consumer behavior but I will study on only three variables “price, quality, and Brand Name”

Importance of consumer behavior:

Role or importance of study of consumer behavior can be explained with reference to the points

stated as under:

1. Modern Philosophy:

It concerns with modern marketing philosophy – identify consumers’ needs and satisfy them

more effectively than competitors. It makes marketing consumer-oriented. It is the key to

succeed.

2. Achievement of Goals:

The key to a company’s survival, profitability, and growth in a highly competitive marketing

environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner

than the competitors. Thus, consumer behavior helps in achieving marketing goals.

3. Useful for Dealers and Salesmen:

The study of consumer behavior is not useful for the company alone. Knowledge of consumer

behavior is equally useful for middlemen and salesmen to perform their tasks effectively in

meeting consumers needs and wants successfully. Consumer behaviour, thus, improves

performance of the entire distribution system.

4. More Relevant Marketing Programme:

Marketing programme, consisting of product, price, promotion, and distribution decisions, can be

prepared more objectively. The programme can be more relevant if it is based on the study of

consumer behavior. Meaningful marketing programme is instrumental in realizing marketing

goals.

40


5. Adjusting Marketing Programme over Time:

Consumer behavior studies the consumer response pattern on a continuous basis. So, a marketer

can easily come to know the changes taking place in the market. Based on the current market

trend, the marketer can make necessary changes in marketing programme to adjust with the

market.

6. Predicting Market Trend:

Consumer behavior can also aid in projecting the future market trends. Marketer finds enough

time to prepare for exploiting the emerging opportunities, and/or facing challenges and threats.

7. Consumer Differentiation:

Market exhibits considerable differentiations. Each segment needs and wants different products.

For every segment, a separate marketing programme is needed. Knowledge of consumer

differentiation is a key to fit marking offers with different groups of buyers. Consumer behaviour

study supplies the details about consumer differentiations.

8. Creation and Retention of Consumers:

Marketers who base their offerings on a recognition of consumer needs find a ready market for

their products. Company finds it easy to sell its products. In the same way, the company, due to

continuous study of consumer behavior and attempts to meet changing expectations of the

buyers, can retain its consumers for a long period.

9. Competition:

Consumer behavior study assists in facing competition, too. Based on consumers’ expectations,

more competitive advantages can be offered. It is useful in improving competitive strengths of

the company.

10. Developing New Products:

New product is developed in respect of needs and wants of the target market. In order to develop

the best-fit product, a marketer must know adequately about the market. Thus, the study of

consumer behavior is the base for developing a new product successfully.

41


11. Dynamic Nature of Market:

Consumer behavior focuses on dynamic nature of the market. It helps the manager to be

dynamic, alert, and active in satisfying consumers better and sooner than competitors. Consumer

behavior is indispensable to watch movements of the markets.

12. Effective Use of Productive Resources:

The study of consumer behavior assists the manager to make the organisational efforts

consumer-oriented. It ensures an exact use of resources for achieving maximum efficiency. Each

unit of resources can contribute maximum to objectives.

It is to be mentioned that the study of consumer behavior is not only important for the current

sales, but also helps in capturing the future market. Consumer behavior assumes: Take care of

consumer needs, the consumers, in return, will take care of your needs. Most of problems can be

reasonably solved by the study of consumer behavior. Modern marketing practice is almost

impossible without the study of consumer behavior.

UNDERSTANDING CONSUMER BEHAVIOR (Philip Kotler summary)

DECISION MAKING BY CONSUMER:

Product Choice.

Brand Choice.

Dealer Choice.

Purchase Timing.

Purchase Amount.

Marketing Structure:

Product.

Price.

Place.

Promotion.

Other Structure:

Economic.

Technological.

42


Political.

Cultural.

Buyer’s Character:

Social.

Cultural.

Personal.

Psychological.

Buyer’s Decision Process:

Problem recognition.

Information search.

Evaluation.

Decision.

Post-Purchase behavior.

FACTORS INFLUENCING BUYING BEHAVIOR:

Product

Brand Price Quality

Cultural:

Culture.

Sub – culture.

Social class.

Social:

Reference groups.

Families.

Roles/ Status.

Personal:

Age/ Life cycle stage.

Occupation.

Economic circumstances.

43


Lifestyles.

Personality/ self concept.

Psychological:

Motivation.

Perception.

Learning.

Beliefs/ Attitudes.

1.9 LIMITATIONSFor my study The sample size for the survey of customers was limited I will collect data from

100 respondents of a general public who uses the different products of city Aligarh, because I am

a student and can’t collect data from whole Aligarh due to lack of resources and also lack of

time.

CHAPTER-2

CONCEPTUAL FRAMEWORK OF THE SWITCHING BEHAVIOUR OF CONSUMER

44


Consumer preference purchase behavior Consumer decision are influenced by

DEPENDENT VARIABLES INDEPENDENT

VARIABLES

Fig- 2.1

45


2.2 Factors affecting consumer behavior:

Fig.2.2

2.3 CONSUMER DECISION MAKING PROCESS

46


Fig.2.3

CHAPTER-3

DATA ANALUSIS AND INTERPRETATION

Gender No. of respondents (%)

Male 40%

Female 60%

Total 100

3.1 CLASSIFICATION OF RESPONDENTS ON THEIR GENDER

Table No.3.1

Fig.3.1

47


Interpretation

From the above table no.1 & chart no. 1, it can be observed that majority of the respondents were

female that is 60 % and male were 40 %.

III.2 CLASSIFICATION OF RESPONDENTS BASED ON THE GROUP OF

PEOPLE

Table No.3.2

Attributes No. of respondents Percentage (%)

Students 60 60

Professionals 20 20

Relatives 5 5

Neighbors 15 15

Response Rate 100 100

48

40%

60%

MaleFemaleTotal

CLASSIFICATION BASED ON THEIR GENDER


Fig. 3.2

INTERPRETATION

From the above table no.2 & chart no. 2, it can be observed that majority of the respondents

Were student that is 60%, Professionals 20%, Neighbors 15% and 5% Relatives.

3.3 CLASSIFICATION OF RESPONDENTS BASED ON THEIR AGE

Table No. 3.3

Age No. of respondents

20-25 45

26-30 12

31-35 18

36-40 10

40-45 15

49

Students Professionals Parents Neighbors0

10

20

30

40

50

60

70

60

20

5

15

60

20

5

15

No. of respondents Percentage (%)

GROUP OF PEOPLE


Total 100

45%

12%

18%

10%

15%

CLASSIFICATION OF THE RESPONDENTS BASED ON THEIR AGE

20-2526-3031-3536-4040-45Total

Fig. 3.3

INTERPRETATION

From the above table & chart no. 4, it can be observed that majority of the respondents that is

45% are under the age category 20-25, 18% are in the age category of 31-35, 15% of the

respondents falls in the age group40-45,12% of the respondents are in the age group 26-30 and

10% of the respondents are in the age category of 36-40.

3.4 CLASSIFICATION OF RESPONDENTS BASED ON THE FACTOR

AFFECTING BUYING DECISION

Table No.3.4

Factors No. of respondents

Brand 35

Prize 15

50


Availability 22

Ease of use 10

Quality 18

Total 100

Fig. 3.4

INTERPRETATION

From the above table & chart no. 4, it can be observed that majority of the respondents that is

35% of the respondents opined that brand influences purchasing decision, 22% of the

respondents opined that they buy product by availability, 18% of the respondents opined that

they buy product by seeing quality, 15% of the respondents opined that they buy product by

seeing price and 10% of the respondents opined that they buy product according to their ease to

use.

51

Brand Prize Availability Ease of use Quality0

5

10

15

20

25

30

35

40

FACTORS AFFACTING BUYING DECISION

No. of respondents


3.5 CLASSIFICATION OF RESPONDENTS ON BASED ON THEIR CHOICE FOR

BYUING A PRODUCT

Table No.3.5

Particulars No. of respondents Percentage (%)

Brand name 25 25

Price 36 36

Packaging 17 17

Features 14 14

52


Others 8 8

Total 100 100

Brand name

price packaging Features Others0

5

10

15

20

25

30

35

40

No. of respondentsPercentage (%)

CHOICE FOR BUYING A PRODUCT

Fig. 3.5

INTERPRETATION

from the above table & fig. 5 it can be observed that majority of the respondents, that is, 36% of

the respondent opined that they buy product by seeing price, 25%of the respondents opined that

they buy product by seeing brand name , 17%of the respondents opined that they buy product by

seeing packaging 14% of the respondents opined that they buy product by seeing features, of the

respondents opined that they buy product by seeing other features.

53


CHAPTER-4

FINDINGS AND CONCLUSION

4.1 FINDINGS

Majority of the respondents were female that is 60%, male were 40%.

Majority of the respondents were student that is 60%, 20% professionals, 15% neighbors,

5% relatives .

54


Majority of the respondents 45 % are under the age category of 20-25, 18% of

respondents are in the age category of 31-35 and 15%of respondents are in the age

category of 41-45, 12% of respondents are in the age category of26-30.

Majority of the respondents opined that various factors affect the buying decisions of

products. The majority of the respondents that is 35% opined that 35 influences

purchasing decision, 22% of respondents opined that availability influences purchasing

decision, 18% of respondents opined that quality influences purchasing decision and 15%

of respondents opined that prize factors influences the purchasing decision, 10% of

respondents opined that ease of use factors influences the purchasing decision.

Majority of the respondents that is 36% preferred prize of the product , 25% of

respondents opined that brand factors influences their decision for purchasing a particular

product, 17% of respondents opined that packaging influences their decision for

purchasing a particular product, 14% of respondents opined that Features of the product

influences their decision for purchasing a particular product, only 8% of respondents

opined that other factors influences their decision for purchasing a particular product.

4.2 CONCLUSIN

Thus, consumer behavior changes with brand, quality and market image of the product.

Consumer taste and preference change with product to product. Knowing about consumer taste

& preferences is need of a company for making a unique image in the market and maintain it

also for gain more profit and growth of the organization. Today consumer wants brand with low

price or suitable prize. Consumer goes with those products, which fulfills their need and satisfy

them. In present, consumer is a king of market.

55


Consumer behavior theories and concepts are of most importance to the sales people or the

marketers. As products are made to cater consumer's needs and demands, therefore, the products

should be carefully marketed for the successful achievements of organizational goals. The study

of consumer behavior helps them in analyzing different factors that has influence on the buying

decision of the consumers. If the marketers failed to understand these factors, they would not

meet their targets.

56


CHAPTER-5

RECOMMENDATION

Today’s consumers are very smart, so business should be carried out in an ethical ways.

Even day by day various laws are being enforced for protecting consumer’s rights. Hence

company should be transparent enough to provide details about various products and

special campaigns should be launch to make consumers aware about how to differentiate

spurious products and the company should legally resort to initiate action against those

who are involved in it and strict legal actions should be enforced.

The collected data says that, the consumers are more price conscious, but with this, they

are looking for good quality products too. So now company should design their

marketing strategy where they can offer quality product with reasonable price.

For the betterment and making consumer well aware, a separate department at company

level should be created which will take care of the issues and problems of consumers.

Company should think about price differentiate strategy for urban and consumer.

Company should design their marketing strategies in such a way, where a consumer

would like to purchase the product repetitively due to associated benefit and by the time

company get advantage of brand loyalty.

Continuous Research and Development activities should be focused upon to understand

the changing pattern of test and preferences of the products by the customers and

according the products should be developed.

F.M.C.G. Company may think for local level, state level, regional level, national level

and international level event sponsorship to increase the awareness of the products.

It has been observed that, as far as consumer adoption process is concerned customers

feet in category of late majority. They generally do not try the new products available in

the market on experiment bases. So an attempt should be made by way of formulating

effective strategies that consumer’s turn from late majority stage to the early majority

stage and to increase the acceptance level towards modified or new products by

consumers.

57


APPENDICES

QUESTIONNAIRE

1. Are you a brand loyal customer?

I. Yes II. No

1. Which attributes did attract you to purchase branded products? Rank these attributes in

order of their importance to you.

2. What was the reason for the delay between the purchase decision and the actual

purchase?

I. Financial constraints

II. Waiting for more innovative product

III. Waiting for market response

3. What influenced you to buy the above stated brand(s)?

I. Advertising II. Shop Display

III. Word of mouth IV. Attractive packaging

V. Family/Friend/Relatives VI. Any Other

58

I. Brand Name II. Transparent

III. Price IV. Cleanliness

V. Easy Availability Others


4. Influence of Brand name on purchasing decision

I. Agree II. Disagree

III. Strongly Agree IV. Strongly disagree

5. Influence of Quality on Purchase Decision



6. Influence of Price on Purchase Decision



7. Influence of Product features on Purchase Decision



8. Influence of Family members on Purchase Decision



9. Influence of Peer group on Purchase Decision



59


10. Influence of Advertisement on Purchase Decision



11. Will you like to switch your brand preference if you get some promotional scheme with

another brand?

III. Yes IV. No

12. Do you think branded products are better than unbranded products?

I. Yes II. No

60


BIBLIOGRAPHY

BOOKS

Marketing Management by Philip Kotler (1972), Kevin Lane Keller

Principles of Marketing by Philip Kotler (1980), Gary Armstrong

Consumer Behavior

WEBSITES

www.google.com

www.scholars.com

www.wikipidia.com

61

http://www.wikipidia.com/

http://www.scholars.com/

http://www.google.com/