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Rm Project on Amway

Rm Project on Amway

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Published by Komal Singh

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Published by: Komal Singh on Sep 23, 2013
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Consumer-buying behaviour according to Kotler (2004, p.601) is defined as “The buying behaviour consumers – individuals and households who buy goods and services for personal consumption.” the term ‘consumer’ can be described as a person who acquires goods and services for self satisfaction is often used to describe two different kinds of consuming entities: the personal consumers and the organizational consumers. The personal consumers buy goods and services for his/her own use. In this context the goods are bought for final use by individual, who are organizational consumers, encompasses for profit and not for profit business, government agencies, institutions, all of them must buy products, equipment and services in order to run their organization. Definition of buying behaviour:Buying Behaviour is the decision processes and acts of people involved in buying and using products. Need to understand:
• • •

why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm needs to analyze buying behaviour for:
• •

Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

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

Types of Consumer Buying Behaviour Types of consumer buying behaviour are determined by:

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


Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk:
• • •

Personal risk Social risk Economic risk

The four type of consumer buying behaviour are:

Routine Response/Programmed Behaviour--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes-know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behaviour. Product can For shift from one category to the next. example:

Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

2.1. Mokhrejee states various factors affecting consumer behaviour for buying such as demographic and social influences (family and household), group influence, impact of advertising and internal influences (learning, perception, attitude etc.). The book elucidated the topics such as types of consumer decisions, purchase involvement and product involvement. The book also emphasized on information search process and various ways for providing relevant information to the consumers are recommended in this study. The book also emphasized on individual judgment and proposed that the ability of an individual to distinguish between similar stimuli is called sensory discrimination which could involve many variables related to individual preferences.

2.2. Lazar Leslieand Schiffman stated consumer behaviour as individual differs as from group. The family decision for a purchase decision is entirely different from individual decision making. The authors discussed various variables that affect consumer purchase decision. The book focused on family life cycle and various needs of consumer during different life stages. The family decision making process as a group decision making is elaborated and it is recommended to segment the market according to family need hierarchy.


2.3. Bitta and Della stated that consumer behaviour studies play an important role in deciding marketing segments and marketing strategies. The authors recommended that consumer is often studied because certain discussions are significantly affected by their behaviour or expected actions. For this reason such consumer behaviour is said to be an applied discipline. Such applications can exist at two levels of analysis. Market segmentation, consumer decision making and buying behaviour is considered as core marketing activities in designing effective marketing strategies. The micro perspective involves understanding consumers for the purpose of helping a firm or organisation to accomplish its objectives. On the other hand macro or societal perspective consumers collectively influence economic and social conditions within an entire society. The authors discussed factors affecting consumer behaviour at micro and macro level for making a purchase decision.

2.4. Karunik and Schiffman stated the dynamic business environment is turbulent as never before and the service industry as promising as never before. In this era of intense competition companies understand the customer is the king in the market and success depends a lot on the efficiency of the managers in delivering the promised product or services. The responsibility lies on the organisations to develop a culture, ethics, responsibility, value and quality services should be offered to achieve higher level of customer satisfaction. Dynamic consumer behaviour is required to analyse various factors affecting consumer purchase decision directly or indirectly.


2.5. Batra,S.K And Kazmi had described consumer decision making process, buyers black box and importance of consumer behaviour studies for marketers in order to understand what satisfy the ultimate consumer. The book described vital characteristics of Indian consumer and competitive advantages in Indian context for the marketers. The consumer decision process, buying roles and consumer black box are discussed in detail. The various steps evolving consumer decision making are linked with the life stages. Young buyers, women and children considered as uprising consumers groups as a part of competitive market situations.


Significance of the study
It is to study on the consumer behavior while buying particular product and purchase done with little or no influence from other. Importance of the study is to find the buying behavior and level of satisfaction after buying a product.

Objectives of the study
• • • To study the consumer behaviour towards the Amway products. To study Amway product. To study consumers’ buying behaviour.


H0 • All its products are covered by a 100 per cent Money Back Guarantee. If not completely satisfied with the product, the consumer can return it for a 100% refund. H1 • The prices of Amway products are very high, therefore it is only affordable by the high income group and it cannot afforded by middle and lower income group.


Research Methodology of the study
1. Sources of data: a) Primary data: Primary data for the study is been collected from consumers of Amway product only restricted to the area of Mumbai. b) Secondary data: This research has been based on secondary data sources which were subject related the source used were books, journals, newspapers and website. 2. Universal of the study: Will be conducted in Mumbai sub-urban region. 3. Sample size: Table1 CONSUMERS (age in group) 21-30 31-40 41-50 51 and above Total Female 10 5 3 2 20 Total 10 5 3 2 20

4. Data analysis: The data will be analysed using central tendency and statistics.


Overall, it is argued that the study of consumer behaviour is rapidly evolving as researchers recognize and implement new techniques and trans disciplinary perspectives to understand the nature of purchase and consumption behaviour. This wider view attempts to study consumer behaviour in the light of rapidly evolving lifestyles, values, priorities, and social contexts. The distinctly practical emphasis awaited development of the field of marketing in the business curriculum. In particular the buying process of consumer behaviour is of more importance to marketing practitioners than the consumption process, because the consumers are more demanding in nature. In the competitive market the consumer want the best quality product with best services including after sales services in very reasonable price. So therefore, a manufacturer need to concentrate on consumers likes, dislikes, taste, preferences and fashion.



• www.themarketingreview.com • http://shodhganga.inflibnet.ac.in • www.amwayindia.com



• •


1. Students 2. Employee 3. Business 4. None of them • Which brand comes to mind ,when you think of health along with beauty care product? 1. ADS 2. Amway 3. Amway 4. Himami 5. Lakme 6. Yardley • Have you heard of Amway Products?

1. Yes 2. No • Did you use Amway products?

1. Yes

2. No • Do you find difference using Amway products?

1. Yes 2. No • From where did you purchase our product(s)?

1. Retail outlet 2. Wholesale outlet 3. Through teleshopping 4. Through our website

Do you think by buying this product you have got best value for money?

1. Yes 2. No • What is the level of satisfaction towards the purchase of Amway Products?

1. Good 2. Average 3. Satisfaction • What is the reason for choosing the Amway Products?

1. Quality 2. Price 3. Others

Would you like to suggest other, to buy the Amway Products?

1. Yes 2. No • What are the important factors that influenced you to buy the Amway Products?

1. Personal Choice 2. Friends 3. Advertisement 4. Internet


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