Final report on Consumer Buying Behavior and Factors Affecting their Buying Behavior

A STUDY ON

SUBMITTED BY

PRAN KUMAR MAHATO Registration No. CUJ/I/2014/IMBA/014

CENTRAL UNIVERSITY OF JHARKHAND

BRAMBE, RANCHI-835205

CONSUMER BUYING BEHAVIOR AND FACTORS AFFECTING THEIR

BUYING BEHAVIOR

A PROJECT REPORT SUBMITTED

TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF

INTEGRATED MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

MISS SHIKHA SHARMA

HR EXECUTIVE

AT

BIG BAZAAR, BOKARO

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BONAFIDE CERTIFICATE

This is to certify that this Project Report titled “A Study on CONSUMER

BUYING BEHAVIOR AND FACTORS EFFECTING THEIR BUYING

BEHAVIOR at BIG BAZAAR, BOKARO” is the bonafide work of PRAN

KUMAR MAHATO (CUJ/I/2014/IMBA/2014), who carried out the research

under my supervision. Certified further, that to the best of my knowledge the

work reported herein does not form part of any other project report or dissertation

on the basis of which a degree or award was conferred on an earlier occasion on

this or any other candidate.

SIGNATURE OF MENTOR

.

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DECLARATION

I hereby declare that the Project Report entitled “A Study on CONSUMER

BUYING BEHAVIOR AND FACTORS EFFECTING THEIR BUYING

BEHAVIOR AT BIG BAZAAR, BOKARO” submitted to the company in

partial fulfilment of the requirements for the award of Integrated Master of

Business Administration is a record of original project done by me during my

Summer Internship Training under the guidance of MISS SHIKHA SHARMA,

HR EXECUTIVE at BIG BAZAAR, Bokaro. This project is my original work

and the conclusion drawn therein are based on the material collected by myself.

PLACE: BOKARO

DATE: 25TH June, 2016 PRAN KUMAR MAHATO

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ACKNOWLEDGEMENT

I wish to express my sincere gratitude towards BIG BAZAAR for giving me an

opportunity to be a part of their esteemed organization for a period of 30 days for

my Summer Internship Project under their guidance. Completing this task is

never a one-man effort. It is always a result of inseparable contribution of a

number of individuals in direct and indirect manner.

I would like to express my sincere thanks to MISS SHIKHA SHARMA, HR

Executive, Big Bazaar, Bokaro for sparing her valuable time, knowledge and

technical know-how, including keen interest and guiding me at every stage of this

project.

Last but not the least, I thank all the employees at Big Bazaar for helping me

throughout my project.

Thank you.

PRAN KUMAR MAHATO

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TABLE OF CONTENTS

S. NO. TOPIC PAGE

NO.

1 INTRODUCTION

Objectives

Scopes

Importance

05

2 COMPANY PROFILE 09

3 LITERATURE REVIEW 13

4 RESEARCH METHODOLOGY 26

5 ANALYSIS AND EVALUATION 30

6 RECOMMENDATIONS 47

7 CONCLUSION 49

8 LIMITATIONS 51

9 REFERENCES 53

10 ANNEXURE 55

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INTRODUCTION As customer’s tastes and preferences are changing, the market scenario is also

changing from time to time. Today’s market scenario is very different from that

of the market scenario before 1990. There have been many factors responsible for

the changing market scenario. It is the changing tastes and preference of customer

which has bought in a change in the market. Income level of the people has

changed; life styles and social class of people have completely changed now than

that of old days. There has been a shift in the market demand in today’s world.

Technology is one of the major factors which is responsible for this paradigm

shift in the market. New generation people are no more dependent on haat market

and far off departmental stores. Today we can see a new era in market with the

opening up of many departmental stores, hyper market, shopper’s stop, malls,

branded retail outlets and specialty stores. In today’s world shopping is not any

more tiresome work rather it’s a pleasant outing phenomenon now.

My study is based on a survey done on customers of a hypermarket named Big

Bazaar. Big Bazaar is a new type of market which came into existence in India

since 1994. It is a type of market where various kinds of products are available

under one roof. My study is on determining the customer’s buying behavior and

factors influencing their buying decision at Big Bazaar. My study will find out

the areas where Big Bazaar lacks behind the customer’s expectations and

determine what should be done to stands in the current market.

This field survey will help in knowing the present customers tastes and

preferences. It will help me in estimating the customer’s future needs, wants,

demands and serving them better.

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OBJECTIVES OF THE STUDY

1. To find out the buying behavior of the customers coming to Big Bazaar, Bokaro.

2. To find out the customers response towards various attributes of Big Bazaar.

3. To study the satisfaction level of customers in different attributes of Big Bazaar.

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SCOPE OF STUDY The scope of this research is to identify the buying behavior of customers of Big

Bazaar in Bokaro. This research is based on primary data only. Due to time

constraint only limited number of persons contacted. This study only focuses

buying behavior of customers in Bokaro. The study does not say anything about

buying behavior of customer of other places. The scope of research is limited for

Bokaro. It provides help to further the research for organized retail sector in

Bokaro. It aim to understand the skill of the company in the area like

technological advancement and competition in management.

*****

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IMPORTANCE OF STUDY

The study shows customers buying pattern with Big Bazaar in Bokaro. Its provide

guideline for further research in Bokaro for organized retail. Research says about

customer buying behavior towards Big Bazaar in Bokaro. The study rate of

customer satisfaction level with Big Bazaar for Bokaro. The research is also

important to identify Market size, growth and Market Potential of Big Bazaar in

Bokaro. The research shows future Scenario of Big Bazaar in current perspective.

The study shows Opportunities and challenges for Big Bazaar respect of internal

& external environment. Research say about main competitors in the field of

organized retail sectors. The study provide guideline to further extension of Big

Bazaar in Bokaro .The study provide help to know the customers satisfaction with

Big Bazaar stores.

*****

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COMPANY PROFILE

About the Company:

Mr. Kishore Biyani, CEO, Future India‘s leading retailer that operates multiple

retail formats in both the value and lifestyle segment of the Indian consumer

market. Headquartered in Mumbai, the company operates over 16.33 million

square feet. Of retail space, has over 1000 stores across 85 cities and 60 rural

locations across the country and employs over 35000 people. The company‘s

leading format include Pantaloons, a chain of fashion outlets, Big Bazaar, a

uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the

look, touch and feel of Indian bazaars with aspects of modern retail like choice,

convenience and quality. Central is a chain of seamless destination malls. Some

of its other formats include Shoe Factory, Brand Factory, Blue Sky, Fashion

Station, Mobile Bazaar and Star Sitara (Beauty clinic). The company also

operates an online portal, Futurebazaar.com. A subsidiary company, Home

Solutions Retail (India) Limited, operates Home Town, a large-format home

solutions store, selling home furniture products and E-Zone focused on catering

to the consumer electronics segment. Future Group understands the soul of Indian

consumers. As one of India‘s retail pioneers with multiple retail formats, we

connect a diverse and passionate community of Indian buyers, sellers and

businesses. The collective impact on business is staggering: Around 220 million

customers walk into our stores each year and choose products and a service

supplied by over 30,000 small, medium and large entrepreneurs and

manufacturers from across India and this number is set to grow.

Group Vision:

Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner.

Group Mission:

We share the vision and belief that our customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading

to economic development.

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We will be the trendsetters in evolving delivery formats, creating retail

realty, making consumption affordable for all customer segments – for

classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever

we do.

We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful

Group Values:

Indianness: Confidence in ourselves.

Leadership: To be a leader, both in thought and business.

Respect & Humility: To respect every individual and be humble in our

conduct.

Introspection: Leading to purposeful thinking.

Openness: To be open and receptive to new ideas, knowledge and

information.

Valuing and Nurturing Relationships: To build long term

relationships.

Simplicity & Positivity: Simplicity and positivity in our thought,

business and action.

Adaptability: To be flexible and adaptable, to meet challenges.

Flow: To respect and understand the universal laws of nature

KEY GROUP COMPANIES:

Retail:

Future Value Retail Limited

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Finance:

Future Generali Life Insurance Company Limited

Future Generali (India) Insurance Company Limited

Future Capital Holdings Limited

Future Ventures (India) Limited

Services:

Future Supply Chains Limited

Future Human Development Limited Future Media (India) Limited

Future Corporate Resources Limited

*****

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Customer: The term “customer” is typically used to refer to one who

regularly purchase from a particular store or company. The “consumer” more

generally refers to anyone engaging in any of the activities (evaluating, acquiring,

using or disposing of goods and services) used in the definition of consumer

behaviour. Therefore, a “customer” is defined in terms of specific firm while

consumer is not. Customers are value maximiser within the bounds of search

costs, limited knowledge, mobility and income. The most commonly thought of

consumer situation is that of an individual making a purchase with little or no

influence of others. A consumer or buyer is one who determines personal wants,

buys products and uses those products. The traditional viewpoint defines

consumers strictly in terms of economic goods and services or one who consumes

goods.

The “customer is king” philosophy has become one of those marketing fads and

fashions that have continued to trail the growth and expansion of the product

economy. The term consumer is often used to describe two different kinds of

consuming entities personal consumer and organisational consumer. Ultimate

consumers are those individuals who purchases for the purpose of individual or

household consumption. Organisational consumers are those who buy products

and services in order to run their business.

A customer is also called client, buyer, shopper or purchaser, usually used to refer

to a current or potential buyer or user of the products of an individual or

organisation called the supplier, seller, or vendor. This is typically through

purchasing or renting goods or services. However, in certain contexts, the term

customer also includes by extension anyone who uses or experiences the services

of another. A customer may also be a viewer of the product or service that is being

sold despite deciding not to buy them. The word customer is derived from

“custom,” meaning “habit”; a customer is someone who frequently buy from a

particular shop, who made it a habit to purchase goods or services rather than

elsewhere and with whom the shopkeeper had to maintain a relationship to keep

his or her “custom,” meaning expected purchases in the future. The slogans “the

customer is king” or “the customer is god” or “the customer is always right”

indicate the importance of customers to businesses - although the last expression

is sometimes used ironically.

The “consumer” more generally refers to anyone engaging in any of the activities

used in our definition of consumer behaviour. Therefore, a customer is defined in

terms of specific firm while consumer is not. The traditional viewpoint has

defined the behaviour as:-

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CONSUMER BEHAVIOUR AND BUYER BEHAVIOUR

Consumer behaviour is seen to involve a complicated mental process as well as

physical activity (purchase decision). Consumer behaviour is a decision process

and physical activity individuals engage in when evaluating, acquiring, using or

disposing of goods and services.

Consumer Behaviour reflects the totality of consumer’s decisions with respect to

the acquisition, consumption and disposition of goods, services, time and ideas

by (human) decision making units.

Buyer is the individual who actually makes the purchase transaction whereas user

is the person most directly involved in the consumption or use of the purchased

product. Buyer Behaviour particularly is the study of decision making units as

they can buy for themselves or others. Thus, buying behaviour particularly

involves collective response of buyers for selecting, evaluating, and deciding and

post purchase behaviour. Buyer behaviour is the study of human response to

services and the marketing of products and services. Buyer behaviour researches

continuously investigate a broad range of human responses including human

affective, cognitive and behavioural responses. The buying behaviour and

purchase decisions are need to be studied thoroughly in order to understand,

predict and analyse critical market variations of a particular product or service.

The field of consumer behaviour is the broad study of individuals, groups or

organisations and the process they use to select, secure and dispose of products,

services, experiences or ideas to satisfy needs and the impacts that these processes

have on the consumer and society. Consumer behaviour studies are based on the

buying behaviour of final consumers-individuals and households who buy goods

and services for themselves. The collective behaviour of consumers has a

significant influence on quality and level of standard of living. Buyer Behaviour

is broadly defined by various scholars and researchers as:

1. It’s the behaviour displayed by the consumers during the acquisition, use

and disposition of products/services, time and ideas by decision making

units.

2. It is the body of knowledge which studies various aspects of purchase and

consumption of products and services by individuals with various social

and psychological variables at play.

3. The process and activities people engage in when searching for, selecting,

purchasing, using, evaluating and disposing of products and services so as

to satisfy their needs and desires. The activities directly involved in

obtaining, consuming and disposing off products and services, including

the decision processes that precede and follow these actions.

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CONSUMER BEHAVIOUR: AN EMERGING FIELD OF STUDY

In the highly specialised study of “business management”, “business

administration” or just “management” today, “marketing management” function

plays a very critical role in business activities. This is because this functional area

of management:

(1) “Earns” the revenue and

(2) “Works” in the close proximity with the public or persons outside the

organisation.

Controlling these two attributes to have the desired benefits are the most difficult

part of the management, because none of these two are within the direct control

of the marketers. This does not mean that the other functional areas are not useful,

but they are not “directly” involved in the activities mentioned above.

Marketing consists of an interaction between buyer and seller for the purpose of

exchanging something valuable to the mutual benefit of both the parties to the

transaction. One cannot appreciate this marketing process by observing only the

seller, knowledge about consumer is a sound basis for marketing strategies and

decisions. Markets are selected on the basis of consumer wants, location,

characteristics and expenditure patterns. To ignore the customer can lead to

disaster in a modern economy.

Consumer behaviour has become an integral part of strategic market planning. It

is also the basis of the approach to the concept of “Holistic Marketing”. The belief

that ethics and corporate social responsibility should also be integral components

of every marketing decision is embodied in a revised marketing concept – the

societal marketing concept – which calls on marketers to fulfil the needs of their

target markets in ways that improve society as a whole.

Consumer or the “Customer” play a very critical role as these are the people who

finally buy the goods and services of the organisation and the firm is always on

the move to make them buy so as to earn revenue. It’s crucial from both the points

of view as given below:

From the customer’s point of view: Today, in the highly developed and

technologically advanced society, the customers have a great deal of choices and

options (often very close and competing) to decide on or compare;

(1) They have the products of an extreme range of products attributes (the 1st

P - Product).

(2) They have a wide range of cost and payment choices (the 2nd P - Price).

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(3) They can order them to be supplied to their door step or anywhere else (the

3rd P - Place) and

(4) Finally they are bombarded with more communications from more

channels of information than ever before with the invention of information

technology (the 4th P - Promotion).

From the marketer’s point of view: “The purpose of marketing is to sell more

stuff to more people more often for more money in order to make more profit.”

This is the basic principle of requirement for the marketers in earlier days where

aggressive selling was the primary aim. It cannot be achieved by force, aggression

or plain alluring. Customer today are more informed, more knowledgeable, more

demanding, more discerning and above all there is no dearth of marketers to buy

from. The marketers have to earn them or win them over. The global marketplace

is a study of diversity among consumers, producers, marketers, retailers,

advertising media, cultures, and customs and of course the individual or

psychological behaviour. However, despite prevailing diversities, there also are

many similarities. Consumer market is highly sensitive and driven by widely

diversified culture in many countries.

The study of consumer behaviour is also very important to the marketers because

it enables them to understand and predict buying behaviour of consumers in the

marketplace. It is concerned not only with what consumers buy, but also with

why they buy it, when, where, how they buy it, how often they buy it and also

how they enjoy the services. Consumer research is the methodology used to study

consumer behaviour; it takes place at every phase of the buying process: before

the purchase, during the purchase and after the purchase. Researches shows that

two different buyers buying the same product may have done it for different

reasons, paid different prices, used in different ways, have different emotional

attachments towards the things and so on. The market strategies are reframed to

achieve organisational objectives depending upon knowing, serving and

influencing consumers. This suggests that the knowledge and information about

consumers is critical for developing successful marketing strategies. The

relationship between consumers and marketers, consumer behaviour and

marketing strategy is instable to attain organisational objectives.

Consumer behaviour is interdisciplinary approach based on concepts and theories

about people that have been developed by behavioural scientists, philosophers

and researchers in diverse disciplines such as psychology, sociology, social

psychology, cultural anthropology and economics. The study of consumer

behaviour also helps management to understand consumer’s needs so as to

recognise the potential for the trend of development of change in consumer

requirements and new technology and also to articulate the new thing in terms of

the consumer’s needs so that it will be universally accepted in the market well.

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BUYER ROLES

For making strategic decisions the marketers have to identify the buyers who

make the final buying decisions. It is truly a big task before the marketers to

identify the target buyers of the particular service.

(1) Influencer: Several people may be involved in a particular purchase

decision, but all of them are not consumers. A person who has influence,

whose views or advice is given weightage while taking the final decision.

(2) Gatekeepers: Family members who control the flow of information about

a product or service into the family.

(3) Initiator: The person who is the first to suggest or think of the idea of

purchasing a product or service.

(4) Decider: The person who finally takes the decisions of whether to buy,

what to buy, how to buy and from where to buy.

(5) Buyer: The person who actually buy the product/service after making

payments.

(6) User: The person who actually uses or consumes the product or service.

Personal Factors That Affect People’s Buying Behavior

The Consumer’s Personality

Personality describes a person’s disposition as other people see it. The following

are the “Big Five” personality traits that psychologists discuss frequently:

(1) Openness. How open you are to new experiences.

(2) Conscientiousness. How diligent you are.

(3) Extraversion. How outgoing or shy you are.

(4) Agreeableness. How easy you are to get along with.

(5) Neuroticism. How prone you are to negative mental state.

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The Consumer’s Self Concept

Marketers have had better luck linking people’s self-concept to their buying

behavior. Your self-concept is how you see yourself—be it positive or negative.

Your ideal self is how you would like to see yourself—whether it’s prettier, more

popular or more eco-conscious.

Marketing researchers believe people buy products to enhance how they feel

about themselves—to get themselves closer to their ideal selves, in other words.

The slogan “Be All That You Can Be,” which for years was used by the U.S. Army

to recruit soldiers, is an attempt to appeal to the self-concept. Presumably, by

joining the U.S. Army, you will become a better version of yourself, which will,

in turn, improve your life. Many beauty products and cosmetic procedures are

advertised in a way that’s supposed to appeal to the ideal selves people are

searching for. All of us want products that improve our lives.

The Consumer’s Gender

Everyone knows that men and women buy different products. Physiologically

speaking, they simply need different product—different underwear, shoes,

toiletries, and a host of other products. Men and women also shop differently.

One study by Resource Interactive, a technology research firm, found that when

shopping online, men prefer sites with lots of pictures of products; women prefer

to see products online in lifestyle context—say, a lamp in a living room. Women

are also twice as likely as men to use viewing tools such as the zoom and rotate

buttons and links that allow them to change the colour of products.

In general, men have a different attitude about shopping than women do.

The shopping differences between men and women seem to be changing, though.

Many businesses today are taking greater pains to figure out “what men want.”

Products such as face toners and body washes for men, such as the Axe brand,

are a relatively new phenomenon. So are hair salons such as the Men’s Zone and

Weldon Barber. Some advertising agencies specialize in advertising directed at

men. Keep in mind that there are also many items targeted toward women that

weren’t in the past, including products such as kayaks and mountain bikes.

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The Consumer’s Age and Stage of Life

You have probably noticed that the things you buy have changed as your age.

When you were a child, the last thing you probably wanted as a gift was clothing.

As you became a teen, however, cool clothes probably became a bigger priority.

Companies understand that people buy different things based on their ages and

life stages. Aging baby boomers are a huge market that companies are trying to

tap. Ford and other car companies have created “aging suits” for young

employees to wear when they’re designing automobiles. The suit simulates the

restricted mobility and vision people experience as they get older. Car designers

can then figure out how to configure the automobiles to better meet the needs of

these consumers.

Your chronological age, or actual age in years, is one thing. Your cognitive age,

or how old you perceive yourself to be, is another. In other words, how old do

you really feel? A person’s cognitive age affects the activities one engages in and

sparks interests consistent with the person’s perceived age. Cognitive age is a

significant predictor of consumer behaviours, including people’s dining out,

watching television, going to bars and dance clubs, playing computer games, and

shopping. How old people “feel” they are has important implications for

marketing professionals. For example, companies have found that many “aged”

consumers don’t take kindly to products that feature “old folks.” The consumers

can’t identify with them because they see themselves as being younger.

The Consumer’s Lifestyle

Two consumers (say, you and your best friend) can be similar in age, personality,

gender, and so on but still purchase very different products.

To better understand consumers and connect with them, companies have begun

looking more closely at consumers’ lifestyles. This often includes asking

consumers to fill out extensive questionnaires or conducting in-depth interviews

with them. The questionnaires go beyond asking people about the products they

like, where they live, and what sex they are. Instead, researchers ask people what

they do—that is, how they spend their time and what their priorities, values, and

general outlooks on the world are. Where do they go other than work? Who do

they like to talk to? What do they talk about?

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The Consumer’s Decision-Making Process

Stage 1. Need Recognition

Stage 2. Search for Information

Stage 3. Product Evaluation

Stage 4. Product Choice and Purchase

Stage 5. Post purchase Use and Evaluation

Stage 6. Disposal of the Product

Low-Involvement versus High-Involvement Buying Decisions:

Consumers don’t necessarily go through all the buying stages when they’re

considering purchasing product. You have probably thought about many products

you want or need but never did much more than that. At other times, you’ve

probably looked at dozens of products, compared them, and then decided not to

purchase any one of them. At yet other times, you skip stages 1 through 3 and

buy products on impulse. Purchasing a product with no planning or forethought

is called impulse buying.

Impulse buying brings up a concept called level of involvement—that is, how

personally important or interested you are in consuming a product. Low-

involvement products aren’t necessarily purchased on impulse, although they

can be. Low-involvement products are, however, inexpensive and pose a low risk

to the buyer if he/she makes a mistake by purchasing them.

By contrast, high-involvement products carry a high risk to buyers if they fail,

are complex, or have high price tags. A car, a house, and an insurance policy are

examples. These items are not purchased often. Buyers don’t engage in routine

response behaviour when purchasing high-involvement products. Instead,

consumers engage in what’s called extended problem solving, where they spend

a lot of time comparing the features of the products, prices, warrantees, and so

forth.

High-involvement products can cause buyers a great deal of post-purchase

dissonance if they are unsure about their purchases. Companies that sell high-

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involvement products are aware of that post-purchase dissonance can be a

problem. Frequently, they try to offer consumers a lot of information about their

products, including why they are superior to competing brands and how they

won’t let the consumer down. Salespeople are typically utilized to do a lot of

customer “hand-holding.”

Limited problem solving falls somewhere in the middle. Consumers engage in

limited problem solving when they already have some information about a good

or service but continue to search for a bit more information.

Situational Factors That Affect People’s Buying Behaviour

The Consumer’s Physical Situation

Have you ever been in a department store and couldn’t find your way out? No,

you aren’t necessarily directionally challenged. Marketing professionals take

physical factors such as a store’s design and layout into account when they are

designing their facilities. Presumably, the longer you wander around a facility,

the more you will spend. Grocery stores frequently place bread and milk products

on the opposite ends of the stores because people often need both types of

products. To buy both, they have to walk around an entire store, which of course,

is loaded with other items they might see and purchase.

Physical factors like these—the ones over which firms have control—are called

atmospherics. In addition to store locations, they include the music played at

stores, the lighting, temperature, and even the smells you experience. Perhaps

you’ve visited the office of an apartment complex and noticed how great it looked

and even smelled. It’s no coincidence. The managers of the complex were trying

to get you to stay for a while and have a look at their facilities. Research shows

that “strategic fragrancing” results in customers staying in stores longer, buying

more, and leaving with better impression of the quality of stores’ services and

products. Mirrors near hotel elevators are another example Hotel operators have

found that when people are busy looking at themselves in the mirrors, they don’t

feel like they are waiting as long for their elevators.

The Consumer’s Social Situation

The social situation you’re in can significantly affect what you will buy, how

much of it, and when. Perhaps you have seen Girl Scouts selling cookies outside

grocery stores and other retail establishments and purchased nothing from them.

But what if your neighbour’s daughter is selling the cookies? Are you going to

turn her down, or be a friendly neighbour and buy a box (or two)?

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Companies like Avon and Tupperware that sell their products at parties

understand that the social situation you’re in makes a difference.

The Consumer’s Time Situation

The time of day, the time of year, and how much time consumers feel like they

have to shop also affects what they buy. Researchers have even discovered

whether someone is a “morning person” or “evening person” affects shopping

patterns. Seven-Eleven Japan is a company that’s extremely in tune to physical

factors such as time and how it affects buyers. The company’s point-of-sale

systems at its checkout counters monitor what is selling well and when, and stores

are restocked with those items immediately—sometimes via motorcycle deliveries

that zip in and out of traffic along Japan’s crowded streets. The goal is to get the

products on the shelves when and where consumers want them. Seven-Eleven

Japan also knows that, like Americans, its customers are “time starved.”

Shoppers can pay their utility bills, local taxes, and insurance or pension

premiums at Seven-Eleven Japan stores, and even make photocopies.

The Consumer’s Mood

People’s moods temporarily affect their spending patterns. Some people enjoy

shopping. It’s entertaining for them. At the extreme are compulsive spenders who

get a temporary “high” from spending.

A sour mood can spoil a consumer’s desire to shop.

To get buyers in the shopping mood, companies resorted to different measures.

The upscale retailer Neiman Marcus began introducing more mid-priced brands.

By studying customer’s loyalty cards, the French hypermarket Carrefour hoped

to find ways to get its customers to purchase non-food items that have higher

profit margins.

*****

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BUYING BEHAVIOUR OF CONSUMERS

There are 4 major types of buying behaviors based on the consumer’s

involvement as well as differences in related brands.

1. Complex buying behaviour

2. Variety seeking behaviour

3. Dissonance reducing buying behaviour

4. Habitual buying behaviour

1. Complex buying behaviour: In this type of buying behaviour consumers

are highly involved as well as there is a significant differences between

brands. For example: Car, Flat, Plot etc.

2. Variety seeking behaviour: In this type of buying behaviour there is a low

involvement but there is a significant differences between brands, the

consumer can himself make the purchase decision. For example: Perfumes,

incense sticks etc.

COMPLEX BUYING BEHAVIOR VARIETY SEEKING BEHAVIOR

DISSONANCE REDUCING BUYING BEHAVIOR

HABITUAL BUYING BEHAVIOR

TYPES OF BUYING

BEHAVIOR

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3. Dissonance reducing buying behaviour: In this type of buying behaviour

consumers are highly involved due to very few differences between brands.

The consumer only cannot make the purchase decision alone. For example:

Gold jewelleries, Furniture, durables etc.

4. Habitual buying behaviour: In this type consumers are less involved in

making the purchase decision because the daily use products are

considered. For example: Toothpaste, detergent, Hair oil etc.

*****

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RESEARCH METHODOLOGY

Research is a systematic method of finding solutions to problems. It is essentially

an investigation, a recording and an analysis of evidence for the purpose of

gaining knowledge. According to Clifford woody, “research comprises of

defining and redefining problem, formulating hypothesis or suggested solutions,

collecting, organizing and evaluating data, reaching conclusions, testing

conclusions to determine whether they fit the formulated hypothesis”.

RESEARCH DESIGN:

According to this study investigation was conducted for some definite purpose

with the help of a structural & personal Interview and Questionnaire to gather

primary information as much as possible.

My study deals with Descriptive Research Design. Descriptive research, also

known as statistical research, describes data and characteristics about the

population or phenomenon being studied. Descriptive research answers the

questions who, what, where, when and how.

SAMPLING DESIGN:

Sampling Frame: The respondents are the customers from Big Bazaar, Bokaro

Steel City.

Sampling Method: A sample design is a finite plan for obtaining a sample from

a given population. Convenience sampling is used for this study.

Sample Size: Number of the sampling units selected from the population is called

the size of the sample. Sample of 100 respondents were obtained.

Sampling Procedure: The procedure adopted in the present study is non-

probability convenience sampling.

PAGE 28

METHODS OF DATA COLLECTION:

The data was collected through Primary sources only.

QUESTIONNAIRE DESIGN:

A well-defined questionnaire that is used effectively can gather information on

both overall performance of the test system as well as information on specific

components of the system. A defeated questionnaire was carefully prepared and

specially numbered. The questions were arranged in proper order, in accordance

with the relevance.

Pros of questionnaire:

It can be used as a method in its own right or as a basis for interviewing or

a telephonic survey.

It can be posted, e-mailed or faxed.

It can cover a large number of people or organizations.

It has wide geographic coverage.

It is relatively cheap.

No prior arrangements are needed.

It avoids embarrassment on the part of the respondent.

Respondent can consider responses.

Possible anonymity of respondent.

No interviewer bias.

Cons of questionnaire:

Design problems.

Questions have to be relatively simple.

Historically low response rate (although inducements may help).

Time delay whilst waiting for responses to be returned.

Require a return deadline.

Assumes no literacy problems.

No control over who completes it.

Problems with incomplete questionnaires.

Replies not spontaneous and independent of each other.

Respondent can read all questions beforehand and then decide whether to

complete or not. For example, perhaps because it is too long, too complex,

uninteresting, or too personal.

PAGE 29

Nature of Questions Asked:

The questionnaire consists of closed ended questions and rating method.

Presentation of Data:

The data are presented through graphs, charts and tables.

DATA ANALYSIS

Data analysis is done through Statistical Tools:

Pie Charts.

Bar Charts.

Horizontal Bar Charts.

Procedure for Analysis:

Administering questionnaire to all the customers visiting Big Bazaar,

Bokaro.

Analyse the rating and responses of the customers using graphs and

evaluating the positivity of responses.

LIMITATIONS OF THE STUDY:

The limitations of the study are the following:

1. The data was collected through questionnaire. The response from the

respondents may not be accurate.

2. The sample taken for the study was only 100 and from only one store so the

results drawn may not be accurate.

3. Another difficulty was very limited time-span of the project.

4. Lack of experience of Researcher.

*****

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DESCRIPTIVE STATISTICS ANALYSIS BASED ON QUESTIONS ASKED.

TABLE 1: What is your age?

S. No. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. TEENAGERS 17 17%

2. YOUTHS 63 63%

3. MID AGED 17 17%

4. OLD AGED 03 03%

INTERPRETATION:

Out of all the customers interviewed, the above graph shows that the footfall at

Big Bazaar, Bokaro constitutes 63% of youths(20 to 35 years), 17% of both

teenagers as well as mid aged(36 to 60 years) and 3% of the customers are of old

ages(above 60 years).

0

10

20

30

40

50

60

70

TEENAGERS YOUTHS MID AGED OLD AGED

17%

3%

63%

17%

AGE GROUP

PAGE 32

TABLE 2: What is your qualification?

INTERPRETATION:

Among all the customers interviewed 49% of them were found to have bachelor

degree, 19% of the customers had completed their master’s degree, 15% of the

customers were matriculate and 16% out of the customers were intermediate.


1. MATRICULATE 15 15%

2. INTERMEDIATE 16 16%

3. GRADUATE 49 49%

4. POST GRADUATE 19 19%

5. DOCTORATE 01 01%

MATRICULATION

15%

INTERMEDIATE

16%

GRADUATION

49%

POST GRADUATE

19%

DOCTORATE

1%

QUALIFICATION

PAGE 33

TABLE 3: What is your profession?


1. EMPLOYEE 41 41%

2. BUSINESSMEN 11 11%

3. HOUSE-WIFE 03 03%

4. STUDENT 42 42%

5. RETIRED 03 03%

INTERPRETATION:

Coming to the occupation of the customers interviewed, most of the customers

visiting Big Bazaar are students (42%) and employees (41%). 11% customers are

businessmen, 3% of the customers are found to be housewives and retired

personnel.

EMPLOYEE

41%

RETIRED

3%

STUDENT

42%

HOUSEWIFE

3%

BUSINESSMEN

11%

OCCUPATION

EMPLOYEE RETIRED STUDENT HOUSEWIFE BUSINESSMEN

PAGE 34

TABLE 4: What is your monthly income?


1. LESS THAN ₹10000 56 56%

2. ₹10000 TO ₹30000 13 13%

3. ₹30000 TO ₹50000 19 19%

4. ABOVE ₹50000 12 12%

INTERPRETATION:

The above chart shows that 56% of the interviewed customers are found to have

a monthly income of less than ₹10,000 (includes students also, their pocket

money is also considered as income as they tend to spend that money while

making transactions at Big Bazaar). 13% of the customers have an income of

₹10K to ₹30K, 19% of the customers have an income between ₹30K to ₹50K and

12% of the customers were found to have an income more than ₹50,000.

56%

13%

19%

12%

0

10

20

30

40

50

60

LESS THAN ₹10K 10K-₹30K ₹30K-₹50K ABOVE ₹50K

INCOME CHART

PAGE 35

TABLE 5: With whom do you like to go shopping?


1. FAMILY 53 53%

2. SPOUSE 08 08%

3. FRIENDS 37 37%

4. ALONE 12 12%

INTERPRETATION:

The above bar chart shows that 53% of the customers like to visit Big Bazaar with

their family and 8% customers like to visit with their spouse. 37% of the

customers have an interest in visiting with their friends whereas 12% of the

customers find it comfortable in visiting alone.

53%

8%

37%

12%

0

10

20

30

40

50

60

FAMILY SPOUSE FRIENDS ALONE

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TABLE 6: How frequently do you visit Big Bazaar?


1. WEEKLY 22 22%

2. MONTHLY 08 08%

3. QUARTERLY 40 40%

4. UNPLANNED BASIS 30 30%

INTERPRETATION:

When the customers were asked about their visiting frequency, it was found that

30% of the customers visit weekly, 40% visit monthly, 8% of them visit quarterly

and 22% are found to visit on an unplanned basis.

30%

40%

8%

22%

0 5 10 15 20 25 30 35 40 45

WEEKLY

MONTHLY

QUARTERLY

UNPLANNED BASIS

FREQUENCY

PAGE 37

TABLE 7: What kind of products you usually purchase at Big Bazaar?


1. FOOD ITEMS 29 29%

2. ELECTRONICS 07 07%

3. FASHION 55 55%

4. OTHERS 23 23%

INTERPRETATION:

Out of the total customers interviewed, 55% of the customers are interested in

buying fashion apparels from Big Bazaar, whereas 29% customers are interested

in buying food items and least were interested in buying electronic items. 23% of

the customers were found to be interested in items other than food, electronics,

and fashion products. They might have interested in buying other products

available in the store such as soap, shampoo, toothpaste, perfumes etc.

0

10

20

30

40

50

60

FOOD ITEMS ELECTRONICS FASHION OTHERS

29%

07%

55%

23%

PURCHASE AREA

PAGE 38

TABLE 8: On which days do you prefer to visit Big Bazaar?


1. WEEKENDS 37 34%

2. WEEK DAYS 34 31%

3. BIG OFFER DAYS 38 35%

INTERPRETATION:

When the customers were asked about their preferred visiting days, it was found

that 38% of the customers visit on BIG OFFER DAYS, 37% visit on weekends,

34% of them visit on week days.

34%

31%

35%

WEEKENDS WEEK DAYS BIG OFFER DAYS

PAGE 39

TABLE 9: On which time do you prefer to visit Big Bazaar?


1. FORENOON 02 02%

2. AFTERNOON 34 34%

3. NOT FIXED 63 63%

INTERPRETATION:

When the customers were asked about their visiting time, it was found that 34%

of the customers visit in the afternoon, 2% visit in morning, 63% of them have

no fixed time of visiting Big Bazaar.

2%

34%

63%

FORENOON AFTERNOON NOT FIXED

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TABLE 10: Do you come with a planned list of items while visiting Big Bazaar?


1. YES 25 25%

2. NO 40 40%

3. DEPENDS ON CATEGORY 35 35%

INTERPRETATION:

The above pie-chart shows that 40% of the customers do not visit with a planned

list of items to purchase at Big Bazaar, 25% of the customers mentioned that they

visit with a planned list and 35% said that their visit is unplanned and their

purchase depends on the products available in different sections.

YES25%

NO40%

DEPENDS ON CATEGORY

35%

PAGE 41

PIE-CHARTS BASED ON ATTRIBUTES RATED BY THE CUSTOMERS.

TABLE 11: PRICE


1. POOR 04 04%

2. AVERAGE 51 51%

3. GOOD 40 40%

4. EXCELLENT 05 05%

INTERPRETATIONS:

Customers were asked to rate the various attributes of Big Bazaar such as Price

of the products available. 51% of the total interviewed customers rated the prices

to be average, 40% customers rated the prices good, 5% customers rated excellent

whereas 4% customers found the prices to be poor.

4%

51%

40%

5%

POOR AVERAGE GOOD EXCELLENT

PAGE 42

TABLE 12: QUALITY


1. POOR 03 03%

2. AVERAGE 25 25%

3. GOOD 55 55%

4. EXCELLENT 17 17%

INTERPRETATIONS:

Customers were asked to rate the quality of products available at Big Bazaar. 55%

of the customers rated the quality of product as good, 17% of them rated quality

of products as excellent, 25% customers rated the quality as average whereas 3%

of the customers rated quality as poor.

3%

25%

55%

17%

POOR AVERAGE GOOD EXCELLENT

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TABLE 13: ARRANGEMENTS


1. POOR 02 02%

2. AVERAGE 17 17%

3. GOOD 53 53%

4. EXCELLENT 28 28%

INTERPRETATIONS:

Customers were asked to rate the arrangement of the products available at Big

Bazaar. 53% of the customers rated the arrangement of products as good, 17% of

them rated the arrangement of products as good, 28% customers rated the

arrangement as excellent whereas 2% of the customers rated arrangements as

poor.

2%

17%

53%

28%

POOR

AVERAGE

GOOD

EXCELLENT

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TABLE 14: DISCOUNT/OFFERS


1. POOR 03 03%

2. AVERAGE 34 34%

3. GOOD 51 51%

4. EXCELLENT 12 12%

INTERPRETATIONS:

Customers were asked to rate the discounts/offers on products available at Big

Bazaar. 51% of the customers rated discounts/offers on products as good, 34% of

them rated discounts/offers on products as average, 12% customers rated the

discounts/offers as excellent whereas 3% of the customers rated discounts/offers

on products as poor. It can be said that customers are satisfied with the

discounts/offers on products available at Big Bazaar.

3%

34%

51%

12%

POOR

AVERAGE

GOOD

EXCELLENT

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TABLE 15: BILLING


1. POOR 15 15%

2. AVERAGE 25 25%

3. GOOD 47 47%

4. EXCELLENT 13 13%

INTERPRETATIONS:

Customers were asked to rate the billing process at Big Bazaar. 47% of the

customers rated billing process as good, 25% of them rated billing process as

average, and 13% customers rated the billing process as excellent whereas 15%

of the customers rated billing process as poor.

15%

25%

47%

13%

POOR

AVERAGE

GOOD

EXCELLENT

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TABLE 16: PRODUCT AVAILABILITY


1. POOR 03 03%

2. AVERAGE 29 29%

3. GOOD 48 48%

4. EXCELLENT 20 20%

INTERPRETATIONS:

Customers were asked to rate the product availability at Big Bazaar. 48% of the

customers rated product availability as good, 29% of them rated product

availability as average, and 20% customers rated the product availability as

excellent whereas 3% of the customers rated product availability as poor.

3%

29%

48%

20%

POOR

AVERAGE

GOOD

EXCELLENT

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RECOMMENDATIONS

Customers do come unplanned and their purchase decision depends upon product

category, attractive display and employee’s efforts may gain sales.

Customers are found to have a keen interest in visiting unplanned and mostly during

evening at Big Bazaar, employees should stay active during this time to gain sales.

During the forenoon Big Bazaar should provide some offers to its customers so that

customers would be encouraged to visit Big Bazaar.

Big Bazaar, Bokaro needs to boost the sales in its electronics section through various

means such as visual merchandising, live demo and attractive offers. The study points

towards low interest of customers towards this section.

Price of the products should be more affordable, 51% customers have rated price as

average.

Quality has been rated good but there is always a chance of enhancement in quality.

Arrangements also has been rated good by 53% customers, timely change in

arrangements will break the monotony of the store but it may make it difficult for the

customers to find the product.

15% customers has rated billing process as poor, appropriate steps should be taken to

lessen such experiences of the customers.

There should be different billing counters for different customers. Cash counter and Card

payment counter should be placed differently in order to reduce the rush and save the

customer’s time. This will be a kind of motivator for the customers of Big Bazaar for

making cashless payments.

*****

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CONCLUSION Big bazaar is a major shopping complex for today’s customers. It is a place where customers

find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the

market. It has positioned itself in the market as a discounted store. It holds a huge customer

base. The majority of customers belong to middle class family. The teenagers and youth

generation also likes shopping and moving around big bazaar. Volume sales always take place

in big bazaar. Impulse buying behavior of customers comes in to play most of the times in big

bazaar.

Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,

stationary, food items, electronic items, leather items, watches, crockery, decorative items,

sport items, chocolates and many more. It competes with all the specialty stores of different

products which provide goods at a discounted rate throughout the year. It seemed from the

study that the customers are quite satisfied with Big Bazaar.

Big bazaar is a hypermarket store where varieties of products are being sold on different

product category. It has emerged as a hub of shopping specially for middle class people.

Different types of products starting from a baby food to large home appliances all available

under one roof. At Bokaro it is the middle class people who mostly do shopping from Big

Bazaar. Even most of the people do their monthly shopping from Big Bazaar. People not only

visit Big Bazaar to do shopping but also visit for outing purpose as it provides a very nice

ambience to its customers. As people go to malls they just tend to move around Big Bazaar

whether it is for shopping purpose or for outing purpose. Grocery, apparels and food items are

the products which are demanded most by the customers of Bokaro at Big Bazaar. As it is

surveyed it seems that the biggest competitors of Big Bazaar are the kirana stores, discounted

specialty stores like Vishal mega mart, The Tata Groups (Croma), Reliance Retail, & Sabka

Bazaar but all the above mentioned stores are not present in Bokaro.

Advantage to Big Bazaar is that it has been strategically located at the center point of a

strategically developed sectors of Bokaro Steel City, being in the center makes it affordable for

the SAIL employees living in the different sectors to purchase their monthly ration from Big

Bazaar at higher discounts compared to general stores.

*****

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LIMITATIONS

Customers were reluctant to answer the questionnaire.

Due to less time only 100 customer’s responses were obtained and recorded.

Females were highly reluctant in filling the questionnaire.

The data obtained are based on customers of Big Bazaar, Bokaro only.

Less time in hands of the customers may have led to inappropriate entry.

Student’s monthly income has been considered as less than ₹10,000.

Customers had more than one option to choose form and tick.

Customer’s literacy level may have affected the study.

*****

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REFERENCES

Schiffman Lenon G. & Kanuk Leslie Lazar (2006). Consumer Behaviour.

Prentice Hall of India.

Kotler, Philip. (2002). Marketing Management. Prentice Hall of India.

Loudon, David L. & Bitta Albert J. Della., (2004). Consumer Behaviour.

Second edition. Mc-Grawhill.

Naresh K. Malhotra (2010). Marketing Research, 6th Edition, Pearson

Publications.

*****

PAGE 55

ANNEXURE QUESTIONNAIRE

PART: I

NAME: _____________________________________________________________AGE: _________Years

GENDER: MALE: FEMALE:

QUALIFICATION: 10th: 12th: Graduate: Post Graduate:

OCCUPATION: Employee: Businessmen: Student:

MARITAL STATUS: SINGLE MARRIED

PART: II

1) What is your monthly income?

A) Less than 10000 C) 10000 – 30000

B) 30000 – 50000 D) Above 50000

2) With whom do you like to go shopping?

A) Family B) Friends C) Spouse D) Others

3) How frequently do you visit Big Bazaar?

A) Weekly B) Monthly C) Quarterly D) Unplanned basis

4) What kind of products you usually purchase at Big Bazaar?

A) Foods B) Electronics C) Fashion D) Others

5) On which days do you prefer to visit Big Bazaar?

A) Weekend B) Week Days C) Big Offer Days

6) In which time do you prefer to visit Big Bazaar?

A) Forenoon B) Afternoon C) Not fixed

7) Do you come with a planned list of items while visiting Big Bazaar?

A) YES B) NO C) Depends on

category

8) Rate the following attributes of Big Bazaar.

S.No. ATTRIBUTES POOR AVERAGE GOOD EXCELLENT

1. PRICE

2. QUALITY

3. ARRANGEMENT

4. DISCOUNT/ OFFERS

5. BILLING

6. PRODUCT

AVAILABILITY

THANKS FOR YOUR RESPONSE.